Originally published on SolarLove.
The International Solar Alliance has asked companies in member countries to submit proposals to offer solar power project management solutions. The global body issued this invitation after it received a proposal for the same from India’s largest power generation company.
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NTPC Limited submitted a proposal to the International Solar Alliance (ISA) to offer services that would help member countries establish solar power projects, including rooftop solar power projects. The ISA proposes to levy a flat 1% charge of the project cost as its fee for capacity building.
ISA has now asked companies similar to NTPC, i.e. government-owned companies with an operational capacity of at least 250 megawatts of solar, to submit better proposals, if they can.
In its proposal, NTPC stated that it has an installed capacity of more than 55 gigawatts, which includes 900 megawatts of operational wind and solar power projects and claims to the 12th largest power generation company in the world. NTPC further stated its plan to increase its renewable energy portfolio from current 1.8 gigawatts to 30 gigawatts by 2030. Highlighting its international footprint, the company stated that it is working on power plants in Bangladesh and Sri Lanka, both members of the ISA.
NTPC proposes to act as a Project Management Consultant (PMC) to offer services to ‘shape enabling policies and framework, commercial agreements like model power purchase agreements, payment security mechanism, and modern project management practices for successful and sustainable implementation of the solar power programme’.
Upon endorsement, NTPC plans to approach Ambassadors/High Commissioners of the participating countries and offer consultancy services for rooftop solar power projects with at least 100 kilowatts capacity at a single location. NTPC proposes to develop a draft PPA and MoU for the implementation of the projects under a RESCO model.
As PMC, NTPC will provide services like preparation of pre-feasibility reports, pre-tendering, preparation of tender documents, running bidding process and selection of developers, oversee implementation of the project, and final testing at the time of commissioning.
NTPC proposes to charge between 6% and 10% of the project cost based on the project size. The company further proposed between 1% and 1.5% of the project cost as administrative fees to the ISA. However, the ISA clarified that it shall charge only 1% irrespective of the project size.
The proposal by NTPC, India’s largest power generation company and among the largest public sector companies, is another attempt by the Indian government to expand its solar diplomacy. The Solar Energy Corporation of India (SECI) was reported to have been planning to enter Asian and African countries to offer then assistance in development of solar power policies and programs, implement capacity building measures, and introduce best practices.
Reprinted with permission.