Cabinet nod for 15,000 MW grid-connected solar projects

They will be executed by NTPC Vidyut Vyapar Nigam in three tranches

Update: 2015-02-25 20:59 GMT
The rapidly falling cost of solar power, which is expected to reach parity with conventional energy by 2017, has ignited interest in its potential in India. (Photo: PTI/File)

New Delhi: The government on February 25 approved setting up of 15,000 MW grid-connected solar power projects by state-run NTPC under the National Solar Mission. The Cabinet gave its approval for implementation of the scheme for setting up of 15,000 MW of grid-connected solar photo voltaic power projects under the National Solar Mission, an official statement said.

They will be executed by NTPC Vidyut Vyapar Nigam (NVVN), an arm of NTPC, in three tranches. The completion of this 15,000 MW capacity projects under the National Solar Mission would accelerate the process of achieving grid tariff parity for solar power and also help reduce consumption of kerosene and diesel, which is presently in use to meet the unmet demand. Some of the solar PV plants are based on bundling of solar power with unallocated thermal power.

The bundled power will be allotted to various states that come forward to provide land for setting up the solar power projects and to those, which would purchase a major portion of the bundled solar power for consumption within the state and ensure connectivity to the solar power project.

The capacity allotted to each such state will be set up through developers, to be selected through international competitive bidding by NTPC/NVVN. Both private and government companies would be free to bid for projects. Some of the projects will be set up on land already identified in Andhra Pradesh.

Others will be allotted in other interested states that come forward. Some capacity will be earmarked out of the total procurement under this scheme with provisions of domestically manufactured solar cells as well as modules. The first Phase of the National Solar Mission (2010-2013) had a target of 1,100 MW for grid connected solar power generation capacity, against which 1,685 MW was set up in the country under various schemes.

Further capacity addition of 9,000 MW comprising 3,000 MW under central schemes and 6,000 MW under state initiatives and other mechanisms were envisaged in the second phase of the Mission (April 2013-March 2017).

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