Solar project developers free to build additional capacity if supply commitments are met: MNRE

Our Bureau New Delhi | Updated on November 06, 2019

Photovoltaic solar panels

Solar project developers will be free to take a call on setting up of additional power generation facilities if the energy supply commitments are met. A clarification to this effect was issued by the Ministry of New and Renewable Energy on Wednesday.

This decision is expected to give relief to solar power project developers, an MNRE statement said.

“As long as the solar PV power plant is in accordance with the contracted AC (alternating current) capacity and meets the range of energy supply based on capacity utilisation factor requirements, the design and installation of solar capacity on the DC (direct current) side should be left to the generator or developer,” the MNRE statement said.

Any person is entitled to set up any capacity which he desires to set up, and sell power to any entity which may want to buy it, the statement added.

The need to issue a clarification came about after State governments noted that installation additional capacity serves as a medium for additional revenue generation for the developers and that development of such additional DC capacity should not be allowed.

MNRE noted that the power distribution company (discom) is not obliged to buy the additional power generated by the solar plant. But the developer is free to sell the excess power generated to any other entity. The Ministry also reiterated the penal provisions in place for not supplying the committed power supplies under power purchase agreements.

Published on November 06, 2019

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