IREDA extends bidding for 5 GW solar under CPSU Phase II

State-owned power generators now have until June 15 to bid for setting up the capacity under the CPSU Phase II Scheme that allows the use of only India-made cells and modules for the projects. The selection would be made on the basis of the viability gap funding requirement per MW quoted by them to cover the cost difference with imported solar cells and modules.

June 8, 2021 Uma Gupta

Image: NTPC

The Indian Renewable Energy Development Agency Ltd (IREDA), under the Ministry of New & Renewable Energy (MNRE), has extended the bid submission date for the 5 GW grid-connected solar power generation capacity tendered under the third tranche of Central Public Sector Undertaking (CPSU) scheme Phase II.

The bidding deadline, earlier set for May 30, is now revised to June 15.

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—using India-made cells and modules. The solar electricity can be supplied to the beneficiary either directly or via power distribution companies on mutually agreed charges.

Under the Scheme, government producers are provided a viability gap funding (VGF) to cover the cost difference between domestic and imported solar cells and modules.

The selection of the producer would be made using the VGF amount as a bid parameter.

“The power produced by the government producers can be used on payment of mutually agreed usage charges of not more than INR 2.45/kWh (US$0.034/kWh) for self-use or use by the government entities, either directly or through Discoms. The maximum permissible VGF is INR 55 lakh (US$ 75,451) per megawatt. The actual VGF to the government producer will be decided through the bidding process using the VGF amount as a bid parameter to select the project developer,” as per the tender requirements.

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