7/5/2010

Jawaharlal Nehru National Solar Mission

In launching India’s National Action Plan on Climate Change on June 30, 2008, the Prime Minister of India, Dr. Manmohan Singh stated: “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 renewable sources of energy. In this strategy, the sun occupies centre-stage, as it should, being literally the original source of all energy. We will pool our scientific, technical and managerial talents, with sufficient financial 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 will change the face of India. It would also enable India to help change the destinies of people around the world.”

Deepak G t D k Gupta Secretary Ministry of New and Renewable Energy Government of India

July, 2010

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

Road Map
Application segment Target for Phase I (2010-13) 1,000 MW 100 MW 200 MW 2 million 7 million sq meters Cumulative Target for Phase 2 (2013-17) 4,000 MW Cumulative Target for Phase 3 (2017-22) 20,000 MW

Strategy
Graduated deployment to nucleate critical mass till costs come down and thereafter rapid scale up

Grid solar power incl. roof top Off-grid solar applications (incl. rural solar lights) Solar collectors

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Enabling policy and regulatory frame work Supporting Utility scale power generation Expanding off-grid applications Accelerating Research and Development Enhancing Domestic manufacturing base

1,000 MW 10 million

2,000 MW 20 million

15 million 20 million sq sq meters meters

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Policy and Regulatory Framework
• 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 • Policy to encourage setting up of manufacturing units in India

Fiscal Incentives
100% Foreign Direct Investment Zero Customs & Excise Duties on solar cells, modules and many raw materials 5% Customs and Excise duty on many other raw materials, materials components and grid power projects Tax - holiday for (i) setting up units in backward and specified areas; and (ii) grid power projects 80% accelerated depreciation in the first year for certain capital investments Grant for carrying out research and development and technology validation projects

Solar Power Purchase Policy (1)
• In the first phase of the Mission 1,000 MW solar power (connected to 33 KV or more grid) to be purchased by NTPC Vidyut Vyapar Nigam (NVVN) 500 MW each for solar thermal and PV

Solar Power Purchase Policy (2)
100 MW capacity solar power projects connected to LT/11 KV grid (100 KW to 2 MW capacity each projects ) Commercial, institutional, industrial & other rooftops Ground mounted & tail-end grid connected projects Tail-end plants will help in improving the grid voltage and provide additional power specially for irrigation pumps and other loads in rural areas Up to 20 MW capacity projects can be taken up in a State to encourage geographical spread

Permitted plant capacity for a project: 5 MW for PV and up to 100 MW for solar thermal NVVN to purchase solar power from developers, bundle equivalent MW capacity of thermal power and sell bundled power to utilities at the bundled price ( Rs. 5.5 per kWh, US $0.12) Developers to sign PPA with NVVN for 25 years Utilities can meet their RPO by purchase of solar power
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Generation Based Incentive
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

Off - grid Solar Applications
• 200 MW capacity solar applications in the first phase – 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.)

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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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R&D Strategy
Research at Academic/ Research Institutions on materials and devices with long-term perspective Applied Research on existing processes and developing new technologies Technology Validation aimed at field evaluation of materials, components and systems Development of Centers of Excellence on different aspects of Solar Energy. Support for Incubation and Innovation International collaborations – institutional/industrial
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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 MW grid connected projects are supported through 1,000 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

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

Thank You http:\\mnre.gov.in http \\mnre go in

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