India Innovation: The discount on CERC Tariff by SPDs in bidding for 5MW SPV projects is really very innovative approach by MNRE, India. This has introduced a component of competitiveness among the bidders and better market price discovery mechanism.

Any comments on the probable net tariff rates resulting out of this.

No doubt, this is quite innovative. The firms that have done the homework correctly can successfully compete in this. However, key lies in getting selected in the first 100, since those SPDs will only be invited for the bidding:)
Once, the list of those lucky 100 is out may indicate the trend tariffs could go.
In my opinion, the <2 MW grid connected scheme is where the cream is:)

I feel the scenario has become very competitive. The choice of technology might play crucial role. Trackers may find prominence. I feel very simple and cheap single n double axis tracker designs are possible especially for MW level projects. I am not sure how many players are considering these options.

The CDM will also need to be taken care of with 3000 Credits/MW @EURO 12 per year, that's roughly INR 20 Lac/per year.

I am really excited about this whole exercise. I do hope good things happen to Indian SPV industry.

After this reverse bidding clause I think the less than MW/rooftop projects have become more attractive. Isn't it?

In my opinion Reverse bidding is not a wise idea. The entire exercise on JNNSM has been wasted and infact JNNSM has lost its SHEEN due to reverse bidding.

I believe that there are more pros than cons here. The only issue i can see here is not all 30 winners (5 X 30 = 150mw PV) will be at the same ppa, which some people (high discounters) may feel bad.

However, MNRE has no other option other than going for riverse bidding due to the large number of investers. Lottery system will not derive the right price and investment levels. I am eager to see the winners and their discounts.

Reverse Bidding as of Now looks very challenging and unattractive for Solar Power Producers . WIth the current Prices of Modules Especially C-si , it will surely hit the their bottom line . Yes there is some room with Thin Film panels , but then the catch is the FIT is changing due to reverse bidding but the duration of the FIT remains constant , so bottom line are hit . If one is not making money in a business then why stake it .

Secondly , the CER earned Per MW = 1500 as per the prescribed Baseline calculations .

The Buzz in the market is that promoters may go upto a maximum of Rs 2/=, which works out to be approximately 11%. I dont know how they are looking at this as a business model. As per my understanding even if Re 1/= is passed on as discount, it barely gives any returns. Pls correct me if my understanding is wrong.