MNRE Details Role of Discoms in 12 GW Solar CPSU Scheme

MNRE has notified the role of DISCOMs to ensure the smooth implementation of the CPSU program for the development of solar projects worth 12GW.

The Ministry of New and Renewable Energy (MNRE) has issued a notification regarding the modalities and role of distribution companies (DISCOMs) to ensure the smooth implementation of the second phase of the Central Public Sector Undertaking (CPSU) program for the development of solar projects worth 12GW.

The Government of India, through MNRE, approved the implementation of CPSU Scheme Phase-II for setting up of 12,000 MW grid-connected solar PV projects by CPSUs /State PSUs/ Government Organisations, with Viability Gap Funding (VGF) support for self-use or use by Government/ Government entities, either directly or through discoms.

Under the scheme, a total of 12 GW of solar projects is expected to be tendered under the second phase of the scheme. According to the ministry, 4 GW will be tendered in FY 2019-2020, followed by another 4 GW in FY 2020-2021 and then in 2021-2022. All the projects are expected to be developed by the end of FY 2022-2023. Under the CPSU program, the usage charges should not exceed Rs 3.50/kWh and will be exclusive of any other third-party charge such as wheeling, transmission, and the likes.

The Solar Energy Corporation of India (SECI) is the implementing agency for the program. As per the provisions, the maximum viability gap funding (VGF) allowed under this has been set at Rs 0.7 crore/MW. Moreover, all the solar cells and modules utilised in setting up of solar projects under this program must be domestically manufactured.

MNRE has clarified the role of discoms in different scenarios of generation and consumption

Scenario I: The discoms are to facilitate ‘Open Access‘ to Government Producers intending to use solar power generated by themselves through open access.

Scenario II: The discoms are to facilitate ‘Open Access’ to government producers intending to supply power to other identified government entities through open access.

Scenario III: The discoms are to facilitate the supply of power by government producers to other user government entities, by ensuring that the billing reflects “usage charges” not more than Rs 3.50/unit, in addition to other charges.

Scenario IV: PSU Discoms themselves become Government Producers

Case-1: Power produced can be utilised for supply to other government bodies or noncommercial sectors like agriculture, local urban bodies, etc.

Case-2: The discoms can supply power to identified/unidentified government entities by ensuring that the billing reflects “usage charges” not more than Rs 3.50/unit.

For more information click here.