JNNSM phase II guidelines likely to be announced in December 2012, bidding in March 2013

Note: The views are only speculation and based on interaction with the industry and are not based on any announcement.Key highlights of phase two of India’s Jawaharlal Nehru National Solar Mission:

1. Guidelines to be announced in December 2012.

1. Bidding to be based on tariff  (like before) or Viability Gap Funding (still undecided).

1. Last date for RfS likely to be February 2013.

1. Bidding for projects likely to be completed by March 2013.

Key highlights in case viability gap funding in implemented :

1. If viability gap funding is introduced, developers will need to find a customer of power for projects.

1. Cap for project size likely to be increased to 100MW, reducing competitiveness for smaller developers.

1. Power likely to be sold at Rs. 4.5/kWh – Rs. 5.5/kWh. Developers will need to find power consumers themselves.

1. Capital subsidy from Solar Energy Corporation of India (SECI) to be around 2 Crore/MW.

1. Two years might be given for commissioning, considering the time taken for identification of consumers and increased project sizes.

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