The Ministry of New and Renewable Energy (MNRE) has proposed amendments to the guidelines for the implementation of Defense Viability Gap Funding (VGF) Program. The fixed tariff for these projects has been reduced to Rs.4.50 (~$0.06735)/kWh from the previous Rs.5.50 (~$0.8232)/kWh.
The upper limit of VGF has been reduced to Rs.0.011 billion ($164,637)/MW for all project sizes. Earlier, a different VGF rate was provided for different project sizes:
- Category I: Rs.25 million (~$374,176)/MW for projects of up to 5 MW
- Category II: Rs.20 million (~$299,341)/MW for project capacity ranging from a minimum of 5 MW to a maximum of 25 MW
- Category III: Rs.15 million (~$224,506)/MW for project capacity more than 25 MW
Under the Defense VGF Program, 347 MW of solar projects have been approved compared to the set target of 300 MW.
Raj Prabhu is a recognized thought leader in clean energy markets where his work has influenced policies worldwide. He has a deep understanding of regulatory policy and clean energy markets and his market and opinion pieces are regularly published on both MercomIndia.com and other leading publications globally. Raj is also a regular speaker and presenter on clean energy policy and finance topics at conferences worldwide. Raj attended the KLE College of Science in Bangalore, India for physics and chemistry, and holds a Bachelor of Science Degree in Hotel and Institutional Management from Johnson and Wales University, Rhode Island. More articles from Raj Prabhu.