The Indian Ministry of New and Renewable Energy (MNRE) has amended a scheme under which over 300 MW of grid connected and off-grid solar PV power projects will be built for the military. With tariffs offered in Indian tenders falling rapidly, the ministry has cut down by 18% the fixed tariff for these projects.
As against the earlier provision of fixed tariff of 5.50 INR ($0.0821) per kWh, the ministry has now decreased the tariff to 4.50 INR ($0.0672) per kWh. This price will be in effect for the next 25 years. Power generated from this capacity will be sold to defence establishments. Any surplus power may be sold directly to electricity distribution companies (discoms) by the developer. Or else, the defence organization may buy all the clean power and then sell surplus to the discoms at its end.
The scheme is part of Phase-II/III of the Jawaharlal Nehru National Solar Mission (JNNSM). It stipulates defence establishments of the Ministry of Defence and Para Military Forces to set up over 300 MW capacity using viability gap funding (VFA).
In keeping with the reduced solar tariff for the scheme, the VGF limit has also been brought down to a standard 11 million INR ($16,000) per MW for all tenders that have not yet been brought out. Earlier this limit was in the range of 15 million INR ($22,000) to 25 million INR ($37,000) per MW for various categories.
Among other revisions, the capacity under 'EPC' mode of the scheme has to use solar cells and modules made in India. On the other hand, so-called 'developer' mode projects will be free to procure solar cells and modules from anywhere.
The scheme was originally approved by the union cabinet in December 2014.
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