Govt lets developers decide on additional DC capacity of solar PV power plants

In a big relief to solar power developers, the ministry of new and renewable energy (MNRE) issued a clarification on Tuesday 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 stating that any person is entitled to set up any capacity which he desires to set up, and sell power to any entity that may want to buy it.
“Ensuring ease of doing business for the bonafide producers / developers is of the paramount importance to the country. We are committed for providing a hassle free path to the developers of renewable energy which could help India to achieve energy security in future along with a cleaner and sustainable environment,” minister of state for power, new and renewable energy and MoS for skill development and entrepreneurship, RK Singh, said while speaking on the occasion.
It may be noted that MNRE has received representations from various solar power developers and solar power associations recently after some states raised questions and concerns around globally adopted practice of installing additional DC capacity, over and above the 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 D.C. capacity.