7/5/2010

In launching India’s National Action Plan on Climate

Change on June 30, 2008, the Prime Minister of India,
Jawaharlal Nehru Dr. Manmohan Singh stated:
National Solar Mission “Our vision is to make India’s economic development
energy-efficient. Over a period of time, we must pioneer a
graduated shift from economic activity based on fossil
fuels to one based on non-fossil fuels and from reliance
on non-renewable and depleting sources of energy to
Deepak
D kGGuptat renewable sources of energy. In this strategy, the sun
Secretary occupies centre-stage, as it should, being literally the
original source of all energy. We will pool our scientific,
Ministry of New and Renewable Energy
technical and managerial talents, with sufficient financial
Government of India resources, to develop solar energy as a source of
abundant energy to power our economy and to transform
the lives of our people. Our success in this endeavour
July, 2010 will change the face of India. It would also enable India to
help change the destinies of people around the world.”

Jawaharlal Nehru Why Solar for India?

National Solar Mission
ƒ Most parts of the country
receive good solar radiation
• Under the National Action Plan on Climate Change 8
Missions have been proposed. In the Prime Minister’s ƒ Possible to utilize in grid
words ‘Solar Mission was its centerpiece’. connected as well as off-grid
and distributed manner to meet
growing demands an cover
• National Solar Mission is one of the major global d fi it areas
deficit
initiatives in promotion of solar energy technologies.
ƒ Access and empowerment at
grass root level
• The Mission aims to achieve volume production, rapid
diffusion and deployment of solar technologies across ƒ Modular in nature, less gestation
the country at a scale which leads to cost reduction and period, low maintenance and
aiming to achieve grid parity by 2022. high reliability
ƒ Abundant and clean source
3

Road Map Strategy

Application segment Target for Cumulative Cumulative
Phase I Target for Target for Graduated deployment to nucleate critical mass till costs come
(2010-13) Phase 2 Phase 3 down and thereafter rapid scale up
(2013-17) (2017-22)
Grid solar power 1,000 MW 4,000 MW 20,000 MW
incl. roof top 100 MW – Enabling policy and regulatory frame work

– Supporting Utility scale power generation

Off-grid solar 200 MW 1,000 MW 2,000 MW
applications
– Expanding off-grid applications
(incl. rural solar lights) 2 million 10 million 20 million

Solar collectors 7 million 15 million 20 million sq – Accelerating Research and Development

sq meters sq meters meters
– Enhancing Domestic manufacturing base

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Policy and Regulatory Framework Fiscal Incentives

• Tariff fixed by Central Electricity Regulatory Commission (CERC) for
purchase of solar power by NTPC Vidyut Vyapar Nigam (NVVN)
www.cercind.gov.in
• CERC has announced tariff for 2010-11:
PV Rs. 17.91 per unit (US $ 0.39 per unit)
CSP Rs. 15.31 per unit (US $ 0.34 per unit)
• Annual tariff review by CERC for new projects
• State Electricity Regulatory Commissions to fix tariff for direct
purchase of power by State utilities
• Solar specific RPO starting with 0.25% proposed in 1st phase,
increasing to 3% by 2022 to be fixed after policy change
• Policy for tradable RE Certificate finalized. Available on CERC
website – pilot to start
ƒ 100% Foreign Direct Investment
ƒ Zero Customs & Excise Duties on solar cells, modules
and many raw materials
ƒ 5% Customs and Excise duty on many other raw
materials components and grid power projects
materials,
ƒ Tax - holiday for (i) setting up units in backward and
specified areas; and (ii) grid power projects
ƒ 80% accelerated depreciation in the first year for certain
capital investments
ƒ Grant for carrying out research and development and
technology validation projects

• Policy to encourage setting up of manufacturing units in India

Solar Power Purchase Policy (1) Solar Power Purchase Policy (2)
‰ 100 MW capacity solar power projects connected to LT/11 KV
• In the first phase of the Mission 1,000 MW solar power (connected to 33 grid (100 KW to 2 MW capacity each projects )
KV or more grid) to be purchased by NTPC Vidyut Vyapar Nigam
(NVVN)
- Commercial, institutional, industrial & other rooftops
- 500 MW each for solar thermal and PV
- Ground mounted & tail-end grid connected projects
- Permitted plant capacity for a project: 5 MW for PV and up to 100 MW
for solar thermal
‰ Tail-end plants will help in improving the grid voltage and
- NVVN to purchase solar power from developers, bundle equivalent MW provide additional power specially for irrigation pumps and
capacity of thermal power and sell bundled power to utilities at the
other loads in rural areas
bundled price ( Rs. 5.5 per kWh, US $0.12)
‰ Up to 20 MW capacity projects can be taken up in a State to
- Developers to sign PPA with NVVN for 25 years encourage geographical spread

- Utilities can meet their RPO by purchase of solar power

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Off - grid Solar Applications

Generation Based Incentive
• 200 MW capacity solar applications in the first phase
‰ Tariff fixed by State Electricity Regulatory Commission

‰ Power purchase by State utilities, with 25 years PPA
‰. Generation Based Incentive (GBI) to utilities by
Government of India through Indian Renewable
Energy Development Agency (IREDA) to reduce their
burden
‰ GBI rate : tariff fixed by CERC minus notional tariff of
Rs. 5.5 per kWh (US$0.12), with 3% annual escalation
‰ IREDA will start online registration of applications for
projects on first come first served basis from 15th
July, 2010 11
– Refinance by IREDA and other FIs.
Loans at 5% annual interest rate with conditions
– 30% subsidy for select applications
– 90% subsidy for niche applications in special category
States and in other remote and difficult areas
– Market driven expansion of the programme. Additional
channels for supply and maintenance being involved
(RESCO, Financial Integrators, System Integrators,
Corporates, Government Agencies and Banks etc.) 12

2

Off-Grid Solar Applications
• Detailed guidelines available on the website of the Ministry
• Standards, quality, accreditation and monitoring arrangements
• Can save substantial quantities of kerosene and diesel and
prove access
Focus on
- solar lights, specially in rural areas
- rural power supply
- Solar power to replace diesel
- Solar power for telecom towers
- Solar water heaters
- solar cooking for institutional use
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Funding Requirements
• Government has approved a budget of Rs. 4,337 crores
(US$ 943 million) for the first phase of the Mission till
March, 2013 to meet the requirement of funds for GBI,
capital grants and refinancing of loans.
• 1,000
1 000 MW grid connected projects are supported through
bundling with thermal power, which would otherwise
require about Rs. 75,000 crores (US$ 16.3 billion) to
purchase solar power
• For further expansion of programme, additional funds will
be required.
• Government had decided to set up Clean Energy Fund,
which will partly support additional projects under the
Mission
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7/5/2010
R&D Strategy
ƒ Research at Academic/ Research Institutions on
materials and devices with long-term perspective
ƒ Applied Research on existing processes and
developing new technologies
ƒ Technology Validation aimed at field evaluation of
materials, components and systems
ƒ Development of Centers of Excellence on different
aspects of Solar Energy.
ƒ Support for Incubation and Innovation
ƒ International collaborations – institutional/industrial
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Conclusion
• Jawaharlal Nehru National Solar Mission offers
opportunities to invest in:
- Grid power projects
- Off-grid projects
- Manufacturing
- R&D
• Enabling policy and regulatory frame work in place
• Aggressive R&D and local manufacturing necessary to
reduce the cost to achieve grid parity
• Partnerships necessary with global stakeholders
• New and innovative financing arrangements required