IREDA Replaces SECI For CPSU Phase-II Solar Scheme

MNRE Replaces SECI With IREDA To Helm 12 GW Solar Power Capacity CPSU Scheme Phase-II; Maximum Tariff Lowered To INR 2.8/kWh
04:44 AM (Beijing Time) - 17. April 2020
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CPSU Scheme Phase-II is a flagship solar power development scheme of the Indian government under which it is supporting the use of 12 GW of locally made cells and modules. It will now be managed by IREDA. (Photo Credit: TaiyangNews)

Key Takeaways

  • MNRE has introduced some amendments to its CPSU Scheme Phase-II through an official notification
  • One major change is related to the replacement of SECI as the implementing agency with IREDA
  • Government has lowered the maximum tariff under the scheme from INR 3.5 per kWh to INR 2.8 per kWh

The Solar Energy Corporation of India (SECI) has been replaced by the Indian Renewable Energy Development Agency Limited (IREDA) as the implementing agency for the Government of India’s government solar power producer scheme, Central Public Sector Undertaking (CPSU) Scheme Phase-II. In a notification issued, the Ministry of New and Renewable Energy (MNRE) has introduced some amendments to the scheme and this is one of the changes made.

IREDA, also operating under the MNRE, will be in charge of conducting biddings amongst government producers to allocate solar power project capacity under the scheme basis viability gap funding (VGF), something that hitherto SECI was accomplishing. MNRE does not specify any reason for this change in the order issued.

Among other major amendments introduced, projects up to 500 MW capacity will need to be commissioned with 24 months from the date of the letter of award issued and projects with more than 500 MW capacity must bring online up to 500 MW within 24 months and the remaining part in the next 6 months.

MNRE has also lowered the maximum tariff allowed under the scheme from INR 3.5 ($0.046) per kWh to INR 2.8 ($0.037) per kWh.

Last year, India introduced the CPSU Scheme Phase-II with an aim to develop 12 GW of solar power capacity to be procured for government producers using locally manufactured solar cells and modules (see India Details 12 GW CPSU Scheme Phase-II).

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani