The proposal to set up a 7 MW solar project with aggregate battery storage capacity of 21 MWh in both Leh and Kargil has now been approved. The projects will be developed on build, own and operate basis. The land for setting up of these solar projects will be facilitated by Ladakh Renewable Energy Development Agency and Kargil Renewable Energy Development Agency.
The program will be implemented by SECI which will also act as a project management consultant for the entire project. This will include the process of finalisation of detailed project report, selection of solar project developer, project management till project testing, commissioning, and execution of the project.
The SECI will be responsible for the fund management, releasing of Viability Gap Funding (VGF) and will also monitor the performance post commissioning of the projects. SECI will be paid 3 percent of the total VGF disbursed, as service charges. The project will have a fixed tariff of Rs 2 per kWh with VGF. The amount of VGF will be decided through competitive bidding. A maximum VGF support of Rs 1,820 million will be provided to set up the entire capacity.
The upper limit of VGF is Rs 130 million for 1 MW solar project with battery storage of 3 MWh. The SECI will release 50 percent of VGF after the supply of equipment at project site and the remaining 50 percent of VGF will be given after the successful commissioning of the project.