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New Delhi : The Ministry of New and Renewable Energy (MNRE) on November 5, 2019, issued an advisory/clarification  stating that as long as the solar PV power plant is in accordance with the contracted AC capacity and meets the range of energy supply based on Capacity Utilisation Factor (CUF) requirements, the design and installation of solar capacity on the DC side should be left to the generator / developer. The Ministry further clarified that 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.

Speaking on the issue,  R K Singh, Minister of State (I/C) for Power, New & Renewable Energy, and MoS for Skill Development and Entrepreneurship said, “Ensuring ease of doing business for the bonafide producers / developers is of paramount importance to the country. We are committed for providing a hassle free path to the developers of renewable energy which could help India achieve energy security in future along with a cleaner and sustainable environment.”

It may be noted that MNRE has received representations from various Solar Developers/ Solar Developer Associations that recently few States have raised questions and concerns around globally adopted practice of installing additional DC capacity, over and above the nameplate / contracted AC capacity, with the objective of meeting the committed Capacity Utilisation Factor (CUF) in Power Purchase Agreements (PPAs) / Power Supply Agreements (PSAs).

The Ministry has clarified that even if the installed DC capacity (MWp) [expressed as the sum of the nominal DC rating (Wp) of all the individual solar PV modules installed] in a solar PV power plant, is in excess of the value of the contracted AC capacity (MW), it is not violation of PPA or PSA, as long as the AC capacity of the solar PV power plant set up by the developer corresponds with the contracted AC capacity and that, at no point, the power (MW) scheduled from the solar PV power plant is in excess of the contracted AC capacity, unless there is any specific clause in the PPA restricting such DC capacity, according to a PIB release.

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