MNRE to set up 1 GW of Solar Projects in NE States under its VGF Program

The Ministry of New and Renewable Energy (MNRE) has announced that it has acknowledged the approval by the President of India for the execution of a subset of the existing 5,000 MW viability gap funding (VGF) program that includes developing 1,000 MW of solar projects in the northeastern states under Jawaharlal Nehru National Solar Mission (JNNSM).

This sanction is for the implementation of the VGF program during financial year 2018-19 towards meeting the targets of JNNSM. It will be executed by the Solar Energy Corporation of India (SECI) in agreement with the MNRE guidelines.

Under the program, 1,000 MW of solar projects will be set up on build, own and operate (BOO) basis by the solar power developers (SPDs).

Features of this program-

• Bidding would be conducted by SECI with a ceiling tariff of Rs.3.0 ($0.042)/kWh, with a maximum VGF of Rs.10 million (~$0.14 million)/ MW.
• Minimum size of the project should be 5 MW due to land constraints in the northeastern states
• Commissioning of solar projects will be within 21 months from the date of signing of the power purchase agreements.
• VGF will not be given to any private party for private consumption of power.