Dec 8 2010
A recent invitation from the Ministry of Renewable Energy of India (MNRE) for 650 MW solar projects has received proposals for over 5,000 MW. Encouraged by the reaction of the bidders, the government had called for a price cut in their tariffs comparatively lower to the one marked by the Central Electricity Regulatory Commission (CERC).
Presently CERC offers Rs. 17.9 for solar photovoltaic (SPV) generated power and Rs.15.4 for the produced, utilizing solar thermal power. MNRE has chosen bidders who have offered up to 30% discount in the CERC rates for carrying out the power projects. The government has plans to generate 500 MW through solar thermal plants and the balance of 150 MW utilizing solar photovoltaic technology. NTPC Vidyut Vyapar Nigam (NVVN), a sales division of National Thermal Power Corporation of India, will purchase the produced power from the solar plants at a tariff determined by CERC and link it with the power grids utilizing power substations of the power companies or the power lines of the state.
For encouraging the use of solar power, CERC has decided to provide complete waiver on the transmission rates and transmission losses related to the use of inter-state transmission facilities by the solar power generators. CERC is planning to extend the facility throughout the life time of the solar projects that are developed to generate solar power during the next three years. The government is looking forward to complete the power purchase agreement between NVVN and the project developers by January 2011 to assist timely commissioning of the projects. While the solar photovoltaic projects (SPV) will be commissioned before the completion of a year, the solar thermal projects are set to be completed within 28 months from the date of signing the power purchase agreement.
Source: http://www.nvvn.co.in/