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Web Exclusive | March 2013

Viability Gap Funding (VGF) for solar power projects

For the 2nd phase of Jawaharlal Nehru National Solar Mission (JNNSM), a model of Viability Gap Funding (VGF) for grid connected solar power projects has been envisaged. For wind energy, no new funding model is currently proposed. Under the 1st phase of Jawaharlal Nehru National Solar Mission (JNNSM), the Ministry adopted a model of reverse auction based on discounts offered on CERC tariffs for selection of solar power projects.

A Generation Based Incentive (GBI) for wind energy projects was available up to March 31, 2012. It is envisaged that the incentive would be continued for the 12th Plan. GBI was also provided on a limited scale for small grid-connected solar power projects under the Rooftop PV and Small Solar Power Generation Programme (RPSSGP) of JNNSM Phase-1.

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