National Action Plan On Climate Change - Shakti Sustainable Energy Foundation

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Jawaharlal Nehru National Solar Mission (JNNSM): Design Assessment Card Goals and Targets The goals are clear and appear feasible. The design did not capture the complexities involved but this is an area with significant uncertainties. Some experts stressed that the mission should have placed equity at the centre and focussed on off-grid solar, which would benefit largely the poor. Instead, the target for off-grid power is only 2 GW against 20 GW for on-grid. Land and water supply required for large solar plants with grid connectivity are a major concern. Co-benefits have not been clearly captured but some of them are implicit in the mission. Consistency with NAPCC Principles The goals are appropriate to some of the stated goals of the NAPCC. Some experts were of the view that there should have been more explicit focus on meeting the needs of the vulnerable and the poor. The mission is likely to lead to a reduction of greenhouse gas (GHG) emissions if implemented, but it will also lead to increased water utilisation using technologies such as diesel-powered pumps, which increase emissions. The use of reverse auctions to allocate projects is an innovative market mechanism which has increased transparency, brought down the price of feed-in tariffs and brought in many new players into the industry. Technology Features The policy environment as it relates to technology is not conducive to promoting innovation. For example, if solar cells and modules are imported, there are no duties imposed, but if manufactured in India, companies have to pay duties. By restricting subsidies to 9 pre-approved models, the mission discourages innovation and restricts the choices of solar products available, particularly to the poorer segments of society. R&D While the R&D features are ambitious, more India-specific research is needed for long-term benefits: e.g., we need to maximise efficiency in terms of kWh/acre due to land constraints in India. Experts believe that India needs to build its research capacity to become a global leader. We need cheaper photovoltaics (PVs) for micro-grids to reduce up-front capital cost. The mission should pay attention to the lighting requirements of different categories of users and uses; for instance, the needs of a farmer would be different from those of a tailor or a street vendor. Questions related to research are important to policy; for instance, research on the appropriateness of crystalline modules or thin films for Indian conditions needs to be resolved. Institutional Arrangements The mission design has been somewhat dynamic and responsive to requirements and changes. Institutional arrangements and policies in the mission document are far from adequate, but several aspects, such as reverse auctions, which were not in the original design, have been set up. Synergies with other missions, such as Sustainable Habitat, have not been identified. Ministries such as Rural Development, Health, Education and Water Resources should integrate aspects of the mission into their agenda by introducing separate energy divisions to function within ministries. For example, the Ministry of Water Resources (MoWR) should combine the use of solar water pumps with water use efficiency techniques like drip irrigation to avoid unregulated water flow. Financial Instruments The mission document suggests that 4 GW will be built with internal funds and the remaining 16 GW through international financing and technology transfer, which seems to be a good approach. The bundling of grid-connected solar power with unallocated thermal power will help to reduce costs during the initial phases. At the same time, if solar home-lighting systems were installed in all homes without electricity and diesel pumps were replaced 28
with solar-powered sets, companies would benefit, and it could reduce the subsidies paid by every state and electricity board. In one year this could result in energy equity, displace carbon and bring in new companies and jobs to dovetail with the mission. Collaborations & Partnerships There are some opportunities for leveraging funds, but whether they will be utilised is not known. Funds could have been leveraged through local guarantee funds and working capital accounts for entrepreneurs and service providers. Knowledge sharing is likely to take place due to the centres of excellence. The mission design will enable it to be responsive to international climate negotiations. Potential Barriers to Implementation The main barriers will be: a lack of leadership in the mission, complications regarding access to subsidies, performance and financial accountability, constraints in flows of funds from the Centre to the States, and potential for conflicts between the Ministry of New and Renewable Energy and the Ministry of Power. Rural banks are not entirely comfortable with the refinancing schemes. Jawaharlal Nehru National Solar Mission (JNNSM): Status Report on Implementation Implementation Solar Renewable Purchase Obligations (RPOs) have been mandated. NTPC Vidyut Vyapar Nigam (NVVN), an organisation working outside the government, is incorporated to oversee the mission. Limited progress has taken place in off-grid solar, but otherwise there has been good, if not robust, progress. Reverse auctioning has been completed for on-grid power for both solar thermal (470 MW) and solar PV (150 MW) in the first round 1 and the remaining 350 MW in the second. 2 In the Rooftop PV and Small Solar Power Generation Programme (RPSSGP), 64.55 MW (against a target of 98.05 MW) has been commissioned; 11 solar PV projects (totalling 48 MW capacity) and one solar thermal project (with 2.5 MW capacity) have come under the Migration Scheme. 3 Furthermore, projects of 40 MW Solar PV capacity for localised off-grid applications were approved (against 32 MW target), 22 companies provide consumers the opportunity to purchase solar products at low costs through loans. Solar thermal collectors with an area of 5 million sq. mt. have been installed. 4 9 projects are under implementation for R&D. 5 Solar Energy Research Advisory Council (SERAC) and Solar Energy Industry Advisory Council (SEIAC) have been set up. 6,7 There is limited progress with co-benefits because they were not prioritised. Prices have dropped and constraints have been handled so far. 1 Annual Report (2010-11), Ministry of New & Renewable Energy, Government of India 2 Indian Solar Sector – Shining or hiding behind the clouds?, India Carbon Outlook, 3rd February 2012, http://india.carbon-outlook.com/content/ indian-solar-sector-%E2%80%93-shining-or-hiding-behind-clouds, accessed on 18th April, 2012 3 Commissioning Status of Solar PV Projects under Batch –I, Phase -I of JNNSM, Ministry of New and Renewable and Energy, Government of India, 17th April, 2012, http://mnre.gov.in/file-manager/UserFiles/commissioning_status_spv_batch1_phase1.pdf, accessed on 19th April, 2012 4 Annual Report (2010-11), Ministry of New & Renewable Energy, Government of India 5 Annual Report (2010-11), Ministry of New & Renewable Energy, Government of India 6 Anand Mahindra To Head Solar Energy Industry Advisory Council, EAI, 14th January, 2012, http://www.eai.in/360/news/pages/2966, accessed on 18th April, 2012 7 Minutes of the Twenty Seventh meeting of Forum of Regulators (For), http://forumofregulators.gov.in/Data/Meetings/Minutes/Final_minute_ of_the_27th_for_meeting_held_on_16_dec.pdf , accessed on 18th April, 2012 29
Page 1 and 2: AN EVALUATION OF INDIA’S NATIONAL
Page 3 and 4: Abstract Acknowledgements This proj
Page 5 and 6: Introduction Project Description an
Page 7 and 8: Methodology A set of criteria for t
Page 9 and 10: and targets have not been specified
Page 11 and 12: Enhanced Energy Efficiency Strength
Page 13 and 14: Water Strength: • A major strengt
Page 15 and 16: Annex 2: Advisory Committee Members
Page 17 and 18: Collaborations & Partnerships The m
Page 19 and 20: Potential Barriers to Implementatio
Page 21 and 22: Financial Instruments It is unclear
Page 23 and 24: Financial Instruments Funds are not
Page 25 and 26: Financial Instruments Funding towar
Page 27: centres of excellence and instituti
Page 31 and 32: Collaborations & Partnerships There

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