The Indian Cabinet Committee on Economic Affairs has approved a scheme to develop 750MW solar PV power projects under batch one of phase two of the Jawaharlal Nehru National Solar Mission (JNNSM).
The projects, which will be built with viability gap funding (VGF) support from the government's National Clean Energy Fund (NCEF), will be selected through competitive bidding for the VGF support.
The scheme will require a total of around INR18.75bn ($303.4m) in VGF support, which is likely to leverage a private investment of around INR50bn ($811.4m) to set up the projects.
The VGF scheme will support the development of the projects, which are mainly in the private sector, on a build, own and operate (BOO) basis at various locations and help enhance grid-connected solar power supply in the
Under the scheme, projects will sell their output to the Solar Energy Corporation of India (SECI) at a fixed levelised tariff of INR5.45 per kWh for 25 years and to interested state utilities / discoms at a fixed tariff of INR5.50 per unit for 25 years.
To be implemented through SECI in association with NTPC Vidyut Vyapar Nigam, phase two is one of the three phases of JNNSM, which is aimed at developing 20,000MW of solar power by 2022 and reducing the cost of solar power generation in the country to achieve grid parity by 2022.
Launched by the Ministry of New and Renewable Energy in January 2010, JNNSM is being implemented in three phases, spanning the remaining period of the 11th plan and first year of the 12th plan (up to 2012-13) as phase one, the period 2013-17 as phase two and 2017-22 as phase three.
Image: India to add 750MW solar capacity under JNNSM's batch one of phase two. Photo: courtesy of Ministry of New & Renewable Energy, Government of India.