Only half of JNNSM projects under reverse bidding have been able to secure financial closure

PV Magazine has reported that only half of the projects allocated under the Jawaharlal Nehru National Solar Mission (JNNSM) have achieved financial closure and the remaining Power Purchase Agreements stand cancelled. Documented proof of financial closure is required by the end of July 2011.

According to the MNRE, approximately half the projects failed to achieve financial closure by the given deadline. One senior MNRE official said that only 17 photovoltaic projects and two concentrated solar power (CSP) projects provided financial closure details. A total of 30 photovoltaic projects, worth 150 megawatts, and 7 CSP projects, worth 470 megawatts were selected in the Phase 1 of JNNSM.

The developers who were unable to achieve financial closure will be allowed to reapply and the cancelled PPAs will add back to the pool in Phase 1 Part 2. This failure in achieving financial closure will have a ripple effect throughout opportunistic solar developers who were looking to make a quick buck.

Next in line are the Gujarat and IREDA projects which may take a cue on this step from MNRE

Also refer to the post of the article by The Hindu in which the NVVN CEO has mentioned that the 500MW of projects have achieved financial closure

About Ritesh Pothan

Ritesh Pothan, is an accomplished speaker and visionary in the Solar Energy space in India. Ritesh is from an Engineering Background with a Master’s Degree in Technology and had spent more than a decade as the Infrastructure Head for a public limited company with the last 9 years dedicated to Solar and Renewable Energy. He also runs the 2 largest India focused renewable energy groups on LinkedIn - Solar - India and Renewables - India
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One Response to Only half of JNNSM projects under reverse bidding have been able to secure financial closure

  1. Pingback: JNNSM solar projects with confirmed financial closure exceeds 500 MW, Mr Anil Agarwal, Chief Executive Officer, (NVVN) | Natural Group

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