One of the rules highlighted in the agreements is that the initially VGF funds will only be disbursed once a minimum of 10 MW is commissioned.
Monday, November 18, 2013: The phase 2 of the National Solar Mission has taken a step ahead. Reportedly, the Solar Energy Corporation of India (SECI) has shared a standard power purchase agreement (PPA) and Viability Gap Funding (VGF) securitization agreement.
One of the rules highlighted in the agreements is that the initially VGF funds will only be disbursed once a minimum of 10 MW is commissioned.
Secondly, it is important that the estimated annual capacity utilization factor (CUF) is declared at the time of commissioning, that too with a minimum CUF of 17 per cent. It can be between -15 per cent and +10 per cent of the declared value till about 10 years, during which periodic inspections of the sites will be done by SECI and the nation’s Ministry of New and Renewable Energy.
Also, if the developers fail to commission projects within three months of the declared date, it can affect their performance guarantees, along with a reduction in annual electricity tariffs by INR 0.005 (USD 0.00007) for each day the project is late.
Those interested to know more details can visit the RESolve Energy Consultants blog.
