Harnessing Solar energy, Options for India

On 16 November 2010, bids from solar developers were received by the NVVN, with offers of
discount on tariffs. For solar PV, the maximum discount to tariff offered is around `7, bringing down
the tariff to under `11 per kWh. In the case of CSP, the discount has been around `3 to `4 per kWh,
bringing down the tariff to around `10 to `11 for plants of 50 to 100 MW. 3
Some states like Gujarat and Karnataka have instituted independent solar policies and generationbased
tariffs that a developer will receive on signing a PPA with the state electricity authority. The
Gujarat Energy Development Agency (GEDA) has signed MOUs with developers for 365 MW of solar
PV and 351 MW of solar thermal capacities. 4 The Karnataka Power Corporation Limited has taken
the lead and has commissioned 6 MW (two 3 MW plants) solar PV capacity, and is soon
commissioning one more 3 MW plant, bringing the total installed capacity of PV in Karnataka to 9
MW. Other states such as Rajasthan and Haryana are in the process of instituting solar policies. The
Haryana Renewable Energy Development Agency (HAREDA) has been promoting solar in a big way.
3. Renewable Energy Certificates
The rationale, policy framework and principles governing Renewable Energy Certificates (RECs) are
given in Table 5. Figure 6 describes the operational framework governing renewable energy
purchase obligation (RPO) and RECs.
Table 5: RECs and RPOs
Rationale for RECs
Policy framework
Principle of RECs
The State Electricity Regulatory Commissions (SERCs) are mandated to set the
RPOs for each state. However, due to the heterogeneity in the availability of
renewable energy sources across states, the minimum percentage varies
significantly. In the absence of an REC, there is no incentive for utilities to purchase
RE power beyond the stipulated RPO.
The National Tariff Policy 2006 requires SERCs to allocate a minimum
percentage of the power purchased by distribution utilities to be sourced
from renewables.
CERC regulation on RECs, January 2010, provides a framework to
institutionalise RECs.
Renewable Energy power has two components: plain electricity and the ‘green’
nature of the generation. RECs separate the green aspect of it (1 REC is equivalent
to 1 MWh). An Renewable Energy power generator can choose to sell the power to
the local utility at normal tariff and sell the REC separately. RECs can be used by
other state utilities toward their RPOs
For solar
There will be solar-specific RPOs stipulated
India’s Solar-specific Policies CSTEP | Page 42