Its All About Power Sector

Subsequent to issue of RfS (Request for selection) document by Solar energy Corporation of India (SECI) dated 28th October 2013 for the subject scheme, Bids were opened on 20th January 2014 in presence of Officials from MNRE, NVVN and representatives of various bidders numbering about 120. Based on the preliminary examination of bids, following has been noted:

• Number of total bids received: 68
• Capacity: DCR: 700 MW
• Capacity Open: 1470 MW
• Total Capacity: 2170 MW

The details of the bidders and the capacity quoted by them in each category are appended below. SECI shall carry out the Techno-Commercial bid examination in regard to the bid conditions and may seek clarifications if required from the bidders in line with provisions in the RfS document. After completion of Techno-Commercial bid examination, the list of shortlisted Bidders shall be uploaded in website of SECI.
Source: Solar Energy Corporation of India

Do you agree that a digital photo frame can help in conserving energy as a demand side management program? Yes is what many of them say in the countries where this is the next solution to market energy sale. Countries in the European and American nations have chosen to bring a change in the energy consumption pattern of the residential customers using this technique.
Let’s see how this technique actually works out. With the smart meters already in place and technology blooming for implementation of these meters in distribution sector, a way to keep the attention of the customers on their consumption pattern looks more promising. A smart meter integrated with notifications on a Digital frame placed on wall or table inside the home that is visible frequently will tell you the current usage of electricity for the month. This sounds just like you receive a notification of amount deducted from your balance after you hang up a call from your mobile. Your personal pictures will mix with the notifications from the distribution utility and scroll down in the frame.
That’s not all. Apart from energy consumption it alerts you for energy consumption increase when you turn on your AC or washing machine. It also gives you information on the prevailing tariff for the season and delivers alerts on billing for the current and previous months. It additionally provides energy conservation quotes that most of them are not aware of in regard to usage of electricity in homes. Looks something like the one in the below pictures. By this way the utilities will have a better interaction with their end users which is the actual need of the hour. This will help the utilities to be no way an undermined commodity that lack’s customer service.
Can this really bring a change in the consumption patterns of electricity for residential customers? It was revealed in many research studies of human behavioral patterns that the people subjected to repeated exposure to changes in a message through vision tend to identify the cause for the change. And this will make the customer more aware of how their electricity is being used.
Now for a country like India where the already financially weak utilities exist, will this be a feasible option and are the investments possible? This is a question that is uncertain at this point of time but nevertheless it is not far from making it a reality. All we need is a determined support from the government to help such initiatives happen and put these schemes in place where R-APDRP, BEE and DSM Programs exist.
Your thoughts on the same as of how this can help in conserving energy and promote Demand side management programs are most invited as comments below.

1. To enable scaling up of size of projects thereby leading to economies of scale of projects under JNNSM
2. To facilitate speedier implementation of the solar power projects to be selected to meet the Phase-II target of JNNSM
3. To enhance confidence in the Project Developers
4. To promote manufacturing in the Solar PV sector in India
5. To create good business model and systems for various State Governments and DISCOMs to take forward and
6. To facilitate fulfillment of RPO requirement of the obligated entities.

The mechanism of operation of Viability Gap Funding is enumerated below:

1. The tariff to be paid to the developer is fixed at Rs.5.45 per kWh. This tariff will remain firm for 25 years project period. In case benefit of accelerated depreciation is availed for a project, the tariff will get reduced to Rs.4.75 per kWh.
2. The developer will be provided a viability gap fund based on his bid. The upper limit for VGF is 30% of the project cost or Rs.2.5 Cr/MW, whichever is lower. The developer will be required to indicate his preliminary estimate of project cost as per format in Annexure-A. The project cost will be as per developer’s own estimation & declaration at the time of bidding, which will be finally confirmed by his own declaration at the time of financial closure and will be considered for provision of VGF as per the above specified upper limit.
3. The developer has to put his own equity of at least Rs.1.5 Cr/MW.
4. The remaining amount can be raised as loan from any source by the developer.
5. The VGF when paid by the SECI may be used to return part of the loan or developer contribution (in excess of Rs.1.5 Cr./MW) or a combination thereof as the case may be, in case investments have already been made. SECI will issue a letter confirming sanction/ grant of VGF so that bidder is able to achieve financial closure for full amount if required at the time of signing of Power Purchase Agreement (PPA).
6. The VGF will be released in six tranches as follows:
1. 50% on successful commissioning of the full capacity of the project (COD);
2. Balance 50% progressively over next 5 years subject to the project meeting generation requirements (CUF within specified range as per Clause 2.13.1) as under:
1. End of 1st Year from COD – 10%
2. End of 2nd Year from COD – 10%
3. End of 3rd Year from COD – 10%
4. End of 4th Year from COD – 10%
5. End of 5th Year from COD – 10%
7. If the project fails to generate any power continuously for any 1 year within 25 years or its major assets (components) are sold or the project is dismantled during this tenure, SECI will have a right to refund of VGF on pro-rata basis and if not paid by the developer then a claim on assets equal to the value of VGF released, on pro-rata basis.
8. If the project is transferred or sold to a third party during its tenure (after initial lock-in period of 1 year as per provision under Clause 2.10, SECI will retain full rights to operationalize the PPA with the third party, which will be under full obligation to honour all the obligations and terms & conditions of the PPA.
9. Solar Power Developers (SPDs) and SECI shall enter into suitable VGF Securitization Agreement creating a charge over the Project assets in favour of SECI as specified under sub-clause (7) above along with signing of PPA.
10. In case of projects financed through loan, the charge created on the project assets shall be shared with the Lending Institutions.
11. In case the lending institution exercises its right to step in or take over the project, SECI will also have right to step in along with the lending institution to reclaim or handover the project to another party for operation.

Also Read:

• What is instore for Jawaharlal Nehru National Solar Mission (JNNSM) - Phase II 
• Can JNNSM-Phase I Achievements Fuel Phase-II?