MNRE Modifies Guidelines for Selection of Solar Park Developers

The new amendments by the MNRE have also dropped the requirements under which the state government was obliged to buy 20% of the power from the distribution companies (DISCOMs). Thus it would no longer be required to get a commitment from the state government to buy at least 20% of the total power produced in the park.

In an official memorandum by the Ministry of New and Renewable Energy (MNRE) the guidelines for the selection of solar power park developers (SPPDs) have been modified in order to bring more transparency in selection of of SPPDs for the development of solar parks.

The earlier procedure for the selection of SPPD would be done under Mode 1, 2, and 3. However, the MNRE has added 4, 5, and 6 to the list of modes.

The new amendments by the MNRE have also dropped the requirements under which the state government was obliged to buy 20% of the power from the distribution companies (DISCOMs). Thus it would no longer be required to get a commitment from the state government to buy at least 20% of the total power produced in the park.

The amendments further state that if the land is made available by the state government or any government agency, the SPPD will be selected on development and operation and maintenance (O&M) charges.

However, if the land is provided by the solar park developer the bidding for selection of the SPPD would be based on his quoted price of the developed land as per Mega Watt (MW) and O&M charges.

The solar park developer has to complete the project within 18 months of the issuance of letters of award. If the solar power approved to private entrepreneurs is not completed within 18 months of in-principal approval, the approval will be cancelled and the grid connectivity allotted may be given to other. The only possibility for the extension is in case of Force Majeure condition, says memo.