Solar Power Project Developers Urge MNRE to Defer Auctions

The non-issuance of rules and regulation related to the Inter-State Transmission System (ISTS) and General Network Access has worried developers. It has also caused uncertainty over grid connectivity for the renewable projects in the country.

The lingering issue of transmission has prompted solar project developers to urge Ministry of New and Renewable Energy (MNRE) to defer auctions until the problem is solved. The National Thermal Power Corporation Limited (NTPC) and Solar Energy Corporation of India (SECI) have scheduled auctions for next few weeks.

Although in the past week NTPC held an auction for 750 MW, it has again invited bids for yet another 2000MW. SECI at the same time has issued tenders for 8000 MW, totaling it to 10,000 MW of tenders in weeks’ time ahead.

The non-issuance of rules and regulation related to the Inter-State Transmission System (ISTS) and General Network Access has worried developers. It has also caused uncertainty over grid connectivity for the renewable projects in the country.

In a letter to MNRE, Solar Power Developers Association wrote, “Our feedback from industry members is that the draft procedure for grant of connectivity has many contradictions with respect to allocation of connectivity in multiple stages.”

The ambiguity of the developers lie with the fact that if there is no “complete clarity in terms of obligations of developers, off-takers and interfacing agencies,” they will find it difficult to connect their projects to the national grids even after the accomplishment of their projects.

Developers like Azure Power, Avaada and Sprng Energy among others have separately written to the ministry requesting the clarity on matters that cause worry among developers.

“Rules say applications will be processed on first come-first served basis. Bidders to whom connectivity is not granted will be at a huge loss on account of investment in land required to submit the application,” said Azure Power.