Thursday, December 12, 2013: In order to subsidise the capacity addition planned for the second phase of the National Solar Mission (NSM), government has proposed to tap the National Clean Energy Fund (NCEF) proceeds.
Reportedly, the government had approved implementation of a “Scheme for Setting up of Grid-connected Solar PV Power Projects of 750 MW aggregate capacity on Build-Own-Operate basis under batch-1 of 2nd phase of the National Solar Mission (NSM) with Viability Gap Funding (VGF) support to the tune of Rs 18,750 million (maximum) from the National Clean Energy Fund (NCEF)” on 3 October 2013, Orissadiary reported.
As per the scheme, there are plans to set up projects on Build-Own-Operate basis, where power will be purchased by Solar Energy Corporation of India (SECI) at a fixed levelised tariff of Rs 5.45 per kWh for 25 years and its onward sale to willing State Utilities/ Discoms at a fixed tariff of Rs 5.50 per unit for 25 years, the report added.
Selection of the projects will be done on the basis of a process of reverse bidding on VGF that is required by the developers. The Ministry had issued detailed guidelines for implementation of the scheme on 25 October and Request for Selection (RfS) document was issued by SECI on 28 October. The last date for receipt of proposals is 28 December this year.
This was shared by Minister of New and Renewable Energy Dr. Farooq Abdullah in the Lok Sabha.