In December 2010 the Phase I bidding process of the Jawaharlal Nehru National Solar Mission (JNNSM) in India was completed with more than sixty companies submitting bids.
It is now widely agreed that Phase I resulted in aggressive bidding on the part of project developers in India, which saw a total of 470MW awarded to local players. The reverse bidding mechanism that was introduced under the JNNSM meant that solar projects were awarded to the lowest bidder, regardless of their previous experience in developing CSP plants.
The Central Electricity Regulatory Commission had previously set the feed-in tariff for CSP at 15.31Rs/kWh, with the winning developers proposing even lower discounts varying from between Rs.10.49 to Rs.12.24. Despite the undeniable interest and support for CSP in India since the first round tender was awarded, the overall progress made by project developers has been questioned. With the project completion deadline looming, important steps are now being taken to successfully complete these plants by May 2013.
Godawari Green Energy Limited announced the development of their 50MW CSP project under the JNNSM in December 2010. The estimated cost stood at Rs 700 crore, with a 25 year power purchase agreement with NTPC Vidyut Vyapar Nigam at a fixed tariff of Rs 12.20 rupees per KW, far less than similar projects currently operating in Europe and the US.
With financial closure achieved, key components now ordered and ground works in place, as well as the experienced EPC group Lauren and Jyoti undertaking the design, procurement and construction, the project is expected to meet its deadline in March 2013.
At CSP Today India 2013, the key lessons of Phase I will be analyzed in detail by some of the key CSP developers present in the process. Godawari Green Energy will be joined by KVK Energy Ventures, Corporate Ispat Alloys and MEIL to discuss the whole process and give an industry perspective on Phase I, and the impact on CSP’s viability in India.
Event organizer Matt Carr said that “the CSP industry in India is poised for massive growth and development in 2013 after Phase II is announced and local policies are implemented. But Phase I provided the perfect learning curve to push CSP development forward in the coming years.”