The Indian Renewable Energy Development Agency has issued amendments to the 5 GW grid-connected solar power generation capacity tendered under the third tranche of phase II of the Central Public Sector Undertaking (CPSU) scheme.
State-owned power generators are required to develop this capacity on a build-own-operate basis either for self-consumption or use by other government entities. The solar electricity can be supplied to the beneficiary either directly or via power distribution companies on mutually agreed charges.
IREDA has increased the tariff ceiling to INR 2.45/kWh from INR 2.20 earlier. These charges shall be exclusive of any other third-party charges like wheeling and transmission charges and losses, point of connection charges and losses, cross-subsidy surcharges, etc.
The maximum permissible viability gap funding (VGF) for the projects, earlier fixed at INR 70 lakh per MW, has been reduced to INR 55 lakh per MW; the actual VGF to be given to the producer would be decided through a reverse auction using VGF amount as the bid parameter to select the solar developer.
Further, the commissioning timeline for the project is set as 30 months from the award of the project, irrespective of the capacity awarded to the developer.
Half the VGF support will be paid upon award of each engineering, procurement and construction (EPC) contract. The solar developer must sign the agreement with the EPC contractor within 12 months of the project award by IREDA.
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