Harnessing Solar energy, Options for India
A study on harnessing solar energy options for India was conducted recently by Shakti Sustainable Energy Foundation, Climate works Foundation and SSN foundation. Supporting this study it has been concluded that solar energy can play a big role in providing electricity to rural areas and thus has been included in India’s rural electrification policy. See more at: http://shaktifoundation.in/report/harnessing-solar-energy-options-for-india/ A study on harnessing solar energy options for India was conducted recently by Shakti Sustainable Energy Foundation, Climate works Foundation and SSN foundation. Supporting this study it has been concluded that solar energy can play a big role in providing electricity to rural areas and thus has been included in India’s rural electrification policy. See more at: http://shaktifoundation.in/report/harnessing-solar-energy-options-for-india/
Table 2: Timeline of Indian Policy Year Policy Description 1974–79 1988–89 5 February 2004 April 2005 2006 2007 3 August 2009 14 November 2009 3 December 2009 Minimum Needs Programme (MNP) Kutir Jyoti Scheme Definition of electrified village under the Ministry of Power’s Memorandum No.42/1/2001- D(RE) Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) Rural Electrification Policy Semiconductor Policy Draft of National Solar Mission approved by prime minister JNNSM Central Electricity Regulatory Commission (CERC) announces tariff for renewable energy power generation Overall objective was to cover at least 60% of villages in each state and union territory under the rural electrification programme by 1990; a target of 46,464 additional villages were fixed for the Sixth Plan under the MNP. The actual achievement, however, was estimated at 34,489 villages. * Launched for extending single-point light connections to households of rural poor families below the poverty line, including Harijan and Adivasi families. The definition of an electrified village was changed (among other things) to at least 10% of the total number of households in the village being electrified. This was a major initiative towards universal electrification. Under the programme, 90% grant is provided by the central government and 10% as loan by the Rural Electrification Corporation (REC) to the state governments. The REC is the nodal agency for the programme. •Access to electricity for all households by 2009. • Quality and reliable power supply at reasonable rates. • Minimum supply of 1 unit per household per day as a merit good by 2012. To encourage semiconductor and ecosystem manufacturing, of which solar PV is also a component. A capital subsidy of 20% for manufacturing plants in Special Economic Zones (SEZ) and 25% for manufacturing plants outside of SEZs, based on the condition that the net present value (NPV) of the investment is at least US$ 212 million (`10,000 million [`1,000 crore] @ US$ 1 = `47). The plan has an ambitious target of generating 20,000 MW solar power by 2020; the mission strategy consists of three phases. Release of mission document. For solar power, the tariff period has been specified as twenty-five years. The CERC has determined a tariff of `18.44/kWh for solar PV projects and `13.45/kWh for solar thermal projects commissioned in FY 2009–10. India’s Solar-specific Policies CSTEP | Page 36
Year Policy Description 11 January 2010 17 June 2010 25 July 2010 15 September 2010 Launch of JNNSM JNNSM off-grid guidelines JNNSM gridconnected guidelines CERC tariff order*** The mission targets 20,000 MW of solar generating capacity by the end of the Thirteenth Five-Year Plan (2022). Guidelines for off-grid and decentralised solar applications, and rooftop and other small power plants released. Guidelines for selection of new grid-connected projects with CERC determined tariff of `17.91/kWh for solar PV projects and `15.31/kWh for solar thermal projects commissioned in FY 2010–11 and 2011–12. ** The tariff for solar projects where PPAs are signed after 31 March 2011 have been revised to `15.39 for PV and `15.04 for solar thermal projects. Source: Compiled by authors. Notes: *See http://www.planningcommission.gov.in/plans/planrel/fiveyr/7th/vol2/7v2ch19.html, accessed 28 October 2010. ** CERC Tariff Order, 2010, http://www.cercind.gov.in/2010/ORDER/February2010/53-2010_Suo- Motu_RE_Tariff_Order_FY2010-11.pdf, accessed 28 October 2010. *** See http://www.cercind.gov.in/2010/November/Signed_Order_256-2010_RE_Tariff_FY_11-12.pdf, accessed 22 November 2010. India’s Solar-specific Policies CSTEP | Page 37
- Page 3 and 4: Harnessing Solar Energy: Options fo
- Page 5: Foreword Worship the sun god, the L
- Page 8 and 9: 4. ADDITIONAL TARIFF PER UNIT OF EL
- Page 11 and 12: Executive Summary The Jawaharlal Ne
- Page 13 and 14: capital subsidy of `150 per W p pro
- Page 15 and 16: policy choices. A comparison of thi
- Page 17: of PPAs need better clarity. The en
- Page 22 and 23: The Indian power sector is highly d
- Page 24 and 25: 4. Solar Technologies: The Basics T
- Page 26 and 27: Introduction CSTEP | Page 26
- Page 28 and 29: Factors affecting performance: Temp
- Page 30 and 31: PV Capacity (MW) in 2008; however,
- Page 32: Annual Installed Capacity (GW) 5.5.
- Page 38 and 39: India’s Solar-specific Policies C
- Page 40 and 41: Table 4 gives an overview of JNNSM
- Page 42 and 43: On 16 November 2010, bids from sola
- Page 44 and 45: Table 6: Net Present Value of Outla
- Page 46 and 47: 4.1.3. Policies for Grid-connected
- Page 51 and 52: Cumulative Capacity, Grid Parity an
- Page 53 and 54: Electricity Price (`/kWh) The price
- Page 55: consumed by the customers will grad
- Page 60 and 61: In the case of smaller PV plants, p
- Page 62 and 63: decentralised in that banks and oth
- Page 64 and 65: 1.2.1.Solar Lanterns 1.2.1.1. Overv
- Page 66 and 67: Table 11: Models of Dissemination D
- Page 68 and 69: 1.2.3. Solar PV Microgrid 1.2.3.1.
- Page 70 and 71: NPV of Govt. Subsidies (` in Lakhs)
- Page 72 and 73: Table 12: Capital Cost of Solar-bas
- Page 74 and 75: electrification, assuming a solar s
- Page 76 and 77: electrical energy output of the arr
- Page 78 and 79: Table 18: Estimation of Potential f
- Page 80 and 81: The benchmark cost and subsidy for
- Page 82 and 83: 14 12 2.47 0.74 10 0.91 0.47 LCOE (
- Page 84 and 85: 3.2.1.1. Conclusions Although econo
Year Policy Description<br />
11 January<br />
2010<br />
17 June<br />
2010<br />
25 July<br />
2010<br />
15<br />
September<br />
2010<br />
Launch of JNNSM<br />
JNNSM off-grid<br />
guidelines<br />
JNNSM gridconnected<br />
guidelines<br />
CERC tariff<br />
order***<br />
The mission targets 20,000 MW of solar<br />
generating capacity by the end of the Thirteenth<br />
Five-Year Plan (2022).<br />
Guidelines <strong>for</strong> off-grid and decentralised solar<br />
applications, and rooftop and other small power<br />
plants released.<br />
Guidelines <strong>for</strong> selection of new grid-connected<br />
projects with CERC determined tariff of<br />
`17.91/kWh <strong>for</strong> solar PV projects and `15.31/kWh<br />
<strong>for</strong> solar thermal projects commissioned in FY<br />
2010–11 and 2011–12. **<br />
The tariff <strong>for</strong> solar projects where PPAs are signed<br />
after 31 March 2011 have been revised to `15.39<br />
<strong>for</strong> PV and `15.04 <strong>for</strong> solar thermal projects.<br />
Source: Compiled by authors.<br />
Notes: *See http://www.planningcommission.gov.in/plans/planrel/fiveyr/7th/vol2/7v2ch19.html, accessed 28<br />
October 2010.<br />
** CERC Tariff Order, 2010, http://www.cercind.gov.in/2010/ORDER/February2010/53-2010_Suo-<br />
Motu_RE_Tariff_Order_FY2010-11.pdf, accessed 28 October 2010.<br />
*** See http://www.cercind.gov.in/2010/November/Signed_Order_256-2010_RE_Tariff_FY_11-12.pdf,<br />
accessed 22 November 2010.<br />
<strong>India</strong>’s <strong>Solar</strong>-specific Policies CSTEP | Page 37