NVVN seeks highest discounts on CERC tariff

NVVN will award contracts under Jawaharlal Nehru Solar Mission Phase-I to those who would provide maximum discount on CERC tariff. NTPC Vidyut Vyapar Nigam or NVVN plans to sign power purchase agreement with selected parties by the end of January.

According to the Business Standard, an NVVN official revealed that the Central Electricity Regulatory Commission had fixed Rs 17.44 per unit for PV modules and Rs 15.40 per unit for solar thermal modules. NVVN was asked to tie up 500 Mw from solar thermal project developers and 150 Mw from PV developers.

NVVN received 422 applications to tie up the 150 MW and the 500 MW. The applicants include Tata Power, Tata International, Reliance Industries, Reliance Infrastructure, Shree Cement, OPG Energy, Surya Power, Suryachakra Power.

Unlike 2G spectrum, NVVN, instead of accepting offers on first-come, first-served basis, collected the offers and asked for price discounts on the CERC tariff. Surprisingly, for PV module, the discount was Rs 6.26 per unit, roughly 30 percent over the price of CERC. Similarly, for solar thermal module, it was Rs 4.26 per unit.

D. Radhakrishna, a power analyst, said the conditions of NVVN were quite stringent and they had asked for counter bank guarantee and indigenous equipment.