MNRE Opines Trimming Commissioning Period for Solar Projects

The developers have put up concerns over the suggestion given by MNRE as shortening the period to develop solar projects would pressurize the developers and would pose quality issues.

Making the solar developers unhappy, Ministry of New and Renewable Energy (MNRE) has proposed to cut short the commissioning period for solar projects in order to move parallel with India’s aspiration to achieve target of 1 GW solar energy capacity by 2022.

Eventually, the developers have put up concerns over the suggestion given by MNRE as shortening the period to develop solar plants would pressurize the developers and would pose quality issues.

The commissioning schedule of a solar project is currently 21 months from the date of execution of the power purchase agreement (PPA) for projects being set up within a solar park, and 24 months for projects of over 250 MW elsewhere.

“In case of projects inside solar parks where there are no major challenges to land possession and financial closure, a commissioning period of 15 months from the PPA is proposed, considering nine months for financial closure and another six months for construction activities. In case of projects outside solar parks, on account of additional challenges in land possession and financial closure, a commissioning period of 18 months is proposed, considering 12 months”, says the MNRE’s internal memo.

“The extended timelines were a challenge to the timely achievement of the 100GW solar power target by 2022,” the memo adds.

An MNRE official acknowledged that the proposal had been made. “It has been proposed inside the ministry but the amendment to the guidelines will only be made by the power ministry after the getting the minister’s approval,” he said on condition of anonymity.

Source: ET