• India’s MNRE has issued a formal clarification stating that the decision to install additional solar DC capacity for a solar power project is the prerogative of the developer
  • As long as the developer ensures availability of contracted AC capacity and CUF, it should be able to realize additional capacity on its own which can also be sold to anyone who may want it
  • The procuring agency is not obliged to purchase the extra power generated by the extra DC capacity installed
  • MNRE’s clarification came in response to some states asking developers for additional installed DC capacity in line with the global trend

After solar power developers in India pointed out to the Ministry of New and Renewable Energy (MNRE) that some states have been asking for additional DC capacity installations, the federal ministry answered that the decision about adding this capacity or not should be left to developers.

The ministry stated in a clarification that as long as the PV plant is in accordance with the contracted AC capacity and meets the requirement of a specific amount of energy supply based on capacity utilization factor (CUF), the developer should be able to take a call for design and installation of solar capacity on the DC side, and this it can sell to any entity that wants to buy it. The procuring entity is not obliged to buy the additional power.

Pointing towards the global trend of installing DC capacities over and above the contracted AC capacity, some states have been questioning developers regarding the same, according to the MNRE that explains even if the installed DC capacity does exceed the contracted AC capacity it won’t be considered a violation of the power purchase agreement (PPA) or power supply agreement (PSA).

“Ensuring ease of doing business for the bonafide producers / developers is of the paramount importance to the country,” said MNRE head RK Singh. “We are committed for providing a hassle free path to the developers of renewable energy which could help India to achieve energy security in future along with a cleaner and sustainable environment.”

Additionally, the government has amended the guidelines for a tariff based competitive bidding process for power procurement from grid connected PV projects in which it has reiterated ‘must-run’ status to solar power projects duly commissioned.