The Solar Energy Corporation of India (SECI) has tendered a 100 MW solar project under domestic content requirement (DCR) category at Bhadla Phase-III Solar Park in Rajasthan. The project will be developed under National Solar Mission (NSM) Phase-II, Batch 4, Tranche-X, at Bhadla Phase-III Solar Park on build own operate basis. The bid-submission deadline is February 21, 2017.

The successful developer can utilize viability gap funding (VGF) for the project and SECI will enter into power purchase agreements (PPAs) with them for a 25-year period. The upper limit of VGF is Rs.12.5 million (~$183,172)/MW and the maximum tariff payable to the project developer is fixed at Rs.3.93 (~$0.057)/kWh for 25 years.

The scope of work includes, construction of the 100 MW solar project and development of the transmission network up to the interconnection point. The developer will have to provide for all clearances, approvals, permits and certificates from local and state government bodies.

The developer can use benefits of accelerated depreciation, concessional customs and excise duties, and tax holidays, but the SECI has regulated that no developer will be allowed to claim both VGF and accelerated depreciation.

The Project shall be commissioned within 12 months of the date of signing of power purchase agreement (PPA). Saurya Urja Company of Rajasthan Limited (SUCRL) is Solar Park Implementing Agency (SPIA) for this Solar Park.

Additional requirement for solar park:

If there is delay in land allotment or connectivity by SPIA, SECI can extend the time for financial closure and commissioning date by up to 3 months, without any financial implications to the SPD or SECI. For any extension beyond the period of 3 months, SECI will approach MNRE, who will be authorized to decide on further extension without any financial implication to SPD or SECI, with the approval of MNRE.

If the solar park is delayed due to reasons solely attributable to the SPIA, a penalty of Rs. 100 (~$1.5)/day/MW will be paid by SPIA to SECI. This fund will go to the payment security fund.

For projects located in Solar Parks, the Committee handling the Payment Security Mechanism (PSM), may consider giving 10% of the Performance bank guarantee encashed to the STU/CTU, as the case may be, if the project is delayed beyond the date as provided for in PPA, even though the Transmission/ evacuation system is ready thereby resulting in system lying idle.

SPDs shall enter into an Implementation Support Agreement with SPIA/State Agency for Land & associated infrastructure for development of the Project inside the Solar Park, Connectivity with the STU/CTU System and all clearances related thereto shall be the responsibility of the SPIA/State Agency/SPD.

For projects inside solar park, the projects developers are required to obtain necessary clearances as required for setting up the Solar PV Power Projects.

According to Mercom’s India Solar Project Tracker, under NSM Phase-II, Batch 4 VGF program, tenders for 3,050 MW projects (2,250 MW under Solar Parks) have been issued. Of this, 375 MW is under the DCR category. Auction results for 970 MW have been announced as of September 2016, and 225 MW of PPAs have been signed in Gujarat.

Image Credit: Azure Power

Sampath has been part of the Mercom India research and news team since the company’s inception. He currently oversees all data and research relating to news published on the MercomIndia.com platform. Sampath received his Bachelor’s of Commerce Degree from Kuvempu University and Post Graduate Diploma in Management, from Indira Gandhi National Open University. More articles from Sampath Krishna.