Harnessing Solar energy, Options for India

solar-specific policies, targets set by the JNNSM, financial incentives, budgetary impacts, capacity
addition and grid parity for solar PV technologies. Wherever they make sense and analysis supports
them, policy recommendations are made. This summary provides the highlights of each of the
chapters.
1. JNNSM Targets
Table 1 gives the targets announced by JNNSM for each of its three phases. A more detailed
discussion the JNNSM guidelines, incentives and regulations, along with a timeline of the
evolution of solar-specific and rural electrification policies of the Government of India can be
found in the chapter ‘India’s Solar-specific Policies’.
Table 1: JNNSM Targets
Current status
Phase 1
(2010–13)
Phase 2
(2013–17)
Phase 3
(2017–22)
Gridconnected
10 MW (solar PV) 1,100 MW 10,000 MW 20,000 MW
Off-grid 2.92 MW 200 MW 1,000 MW 2,000 MW
Solar
thermal
collectors
3.53 million m 2 7 million m 2 15 million m 2 20 million m 2
1.1. Commentary on the JNNSM
What should be the metric to evaluate the success of such a grand programme? Should it be the
megawatts of installed capacity, the megawatt hours of energy output, or the wider societal impact?
Given the lack of electrification and access to clean energy sources in India’s villages, coupled with
transmission and distribution (T&D) losses, decentralised distributed systems make very good
sense. Therefore, should the targets set for off-grid power have been bolder? While grid-connected
large-scale PV can help achieve price reduction through economies of scale, there is an urgent need
for off-grid decentralised distribution as well. Furthermore, the economics of several applications
are very viable even at today’s high solar costs.
The target set for Phase 1 of 500 MW of utility-scale solar PV is sliced in different ways as a means of
illustrating the societal and budgetary impact. The net present value of cash outlays for generationbased
incentives for electricity generated from solar PV installations alone in Phase 1 will be around
`110 billion (at a 10% discount rate). It has to be pointed out that these calculations are based on
the announced tariffs. However, due to over-subscription of capacity, the investors were asked to bid
for a discounted tariff and the lowest bidders are to be allocated the solar projects. On 16 November
2010, bids were received and the discounts ranged from `0 to `7. Hence, the power purchase
agreements (PPAs) that will be signed by the developers will be for tariffs that are lower.
A 500 MW capacity can meet the minimum need of 14,290 villages where each village is provided a
microgrid of 35 kW a capacity based on solar energy and another renewable source. Apart from the
a
A 35 kW capacity will be sufficient to meet the minimum demand of a village of 150 households. This is
computed in the section on rural electrification in the chapter ‘Solar Photovoltaic Applications’.
Executive Summary CSTEP | Page 12