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Jawaharlal Nehru National Solar Mission DILEEP V RAJ RET14004 [email protected] 1
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Page 1: Jawaharlal nehru national solar mission

Jawaharlal Nehru National Solar

Mission

DILEEP V RAJ

RET14004

[email protected]

1

Page 2: Jawaharlal nehru national solar mission

Installed Capacity=2.55 GW

Thermal

Hydro

Nuclear

Renewable

69.7%

12.4%1.9 %

16.0%

Thermal

1,77,742 MW

Hydro

40,799MW

Nuclear

4,780 MW

Renewable

31,692 MW

Indian Power Sector (30/11/2014)

2

Page 3: Jawaharlal nehru national solar mission

Small Hydro

Bio

Solar

72.74%

9.91%

4.42%

12.92%

Wind

22465.03 MW

Small Hydro

3990.83 MW

Bio

1365.2 MW

Solar

3062.68 MW

Total

30883.74 MW

Renewable Power Capacity (31/12/2014)

3

Page 4: Jawaharlal nehru national solar mission

Plan-wise Renewable Capacity Addition

4

Page 5: Jawaharlal nehru national solar mission

Renewable Energy Projections for 2027 Cumulative Installed Capacities in GW

5

Page 6: Jawaharlal nehru national solar mission

Potential of Solar Energy in India

• The daily average solar energy incident varies from 4 - 7 kWh

per square meter.

• The potential of power generation is 30 – 50 MW per square

kilometer of land area depending upon the technology and

geographical location.

• It is possible to set up solar power generation capacity of over

1,00,000 MW in India.

• Potential for solar power is dependent on future developments

that might make solar technology cost-competitive for grid-

interactive power generation applications.

6

Page 7: Jawaharlal nehru national solar mission

Advantages of Solar Energy

• Huge potential in India

• Available throughout India

• Decentralized solutions possible

• Installation is quick and modular

• Prices of solar PV panels and associated Balance of Systems

dropping considerably

• No recurring fuel cost

• Reliable and negligible maintenance

• Environment friendly

• Leads to reduced dependency on fossil fuels and consequent

reduction in import bills

• Hybrid possibilities with various types of fuels

7

Page 8: Jawaharlal nehru national solar mission

Importance and relevance of solar energy

for India

1.COST:

• Solar is currently high on absolute costs compared to other

sources of power such as coal.

• The objective of the Solar Mission is to create conditions,

through rapid scale-up of capacity and technological

innovation to drive down costs towards grid parity.

8

Page 9: Jawaharlal nehru national solar mission

2. SCALABILITY

• India is endowed with vast solar energy potential.

• About 5,000 trillion kWh per year energy is incident over

India’s land area with most parts receiving 4-7 kWh per sq. m

per day

• Solar thermal and solar photovoltaics, can effectively be

harnessed providing huge scalability for solar in India.

9

Page 10: Jawaharlal nehru national solar mission

3. Environmental impact

• Solar energy is environmentally friendly as it has zero

emissions while generating electricity or heat.

4. Security of source

• From an energy security perspective, solar is the most secure

of all sources, since it is abundantly available.

• Theoretically, a small fraction of the total incident solar energy

(if captured effectively) can meet the entire country’s power

requirements.

• Solar imperative is both urgent and feasible to enable the

country to meet long-term energy needs.

10

Page 11: Jawaharlal nehru national solar mission

India’s National Action Plan on

Climate Change (NAPCC)

• National Action Plan on Climate Change was released by PrimeMinister Manmohan Singh on 30th June, 2008.

• Eight Missions were Discussed on

– Solar Energy,

– Enhanced Energy Efficiency,

– Sustainable Habitat,

– Water,

– Sustaining the Himalayan Eco-system,

– Green India,

– Sustainable Agriculture and

– Strategic knowledge for Climate Change

11

Page 12: Jawaharlal nehru national solar mission

Jawaharlal Nehru National Solar Mission

(JNNSM)

• One of the eight Missions under National Action Plan on Climate

Change

• Launched by the Government of India in January 2010.

• JNNSM is one of the major global initiatives in promotion of

solar energy technologies.

• Mission aims to achieve grid tariff parity by 2022 through

Large scale utilization, rapid diffusion and deployment at a scale which

leads to cost reduction

R&D, Pilot Projects and Technology Demonstration

Local manufacturing and support infrastructure

12

Page 13: Jawaharlal nehru national solar mission

MISSION OVERVIEW

Application Segment

Target for Phase I

(2010-13)

Cumulative Target for Phase 2

(2013-17)

Cumulative Target for Phase 3

(2017-22)

Grid solar power (large plants, roof top & distribution grid plants)

1,100 MW 4,000 -10,000 MW

20,000 MW

Off-grid solar applications

200 MW 1,000 MW 2,000 MW

Solar Thermal Collectors (SWHs, solar cooking/cooling, Industrial process heat applications etc.)

7 million sq. meters

15 million sq. meters

20 million sq meters

Solar Lighting System

5 million 10 million 20 million

13

Page 14: Jawaharlal nehru national solar mission

7

10

20

5

10

20

0

5

10

15

20

25

Phase 1 Phase 2 Phase 3

Solar thermal collectors (million sq.m.)

Solar lighting (million)

In addition, 100 MW capacity distributed small grid connected power plants during Phase -1

1000

4000

20000

2001000

2000

0

5000

10000

15000

20000

25000

Phase 1 Phase 2 Phase 3

Grid solar power (MW)

Off-grid Applicationa (MW)

14

Page 15: Jawaharlal nehru national solar mission

OBJECTIVES AND TARGETS

• The objective of the National Solar Mission is to establish India as a global leader in

solar energy, by creating the policy conditions for its diffusion across the country as

quickly as possible.

• The Mission will adopt a 3-phase approach.

• Remaining period of the 11th Plan and first year of the 12th Plan (up to 2012-13)

as Phase 1

• Remaining 4 years of the 12th Plan (2013-17) as Phase 2 and 13th Plan (2017-22)

as Phase 3.

15

Page 16: Jawaharlal nehru national solar mission

MISSION TARGETS

• To create an enabling policy framework for the deployment of 20,000 MW of solar

power by 2022.

• To ramp up capacity of grid-connected solar power generation to 1000 MW within

three years – by 2013; an additional 3000 MW by 2017 through the mandatory

use of the renewable purchase obligation by utilities backed with a preferential

tariff.

• This capacity can be increased to 10,000 MW by 2017.

• To create favorable conditions for solar manufacturing capability, particularly solar

thermal for vast production and market leadership.

• To promote programmes for off grid applications, reaching 1000 MW by 2017 and

2000 MW by 2022 .

• To achieve 15 million sq. meters solar thermal collector area by 2017 and 20

million by 2022.

• To achieve 15 million sq. meters solar thermal collector area by 2017 and 20

million by 2022.16

Page 17: Jawaharlal nehru national solar mission

Policy and Regulatory Framework

Amendment of National Tariff Policy for solar specific

RPOs

Solar specific RPO - 0.25% in Phase 1 (2013) to

increase to 3% by 2022;

REC Mechanism

Encourage state specific solar policies

State-wise RPO Orders by Regulators

Exemption from environmental clearance for solar power

projects

17

Page 18: Jawaharlal nehru national solar mission

Utility connected applications: constructing the solar grid

• The key driver for promoting solar power would be through a

Renewable Purchase Obligation (RPO) mandated for power utilities,

with a specific solar component.

• This will drive utility scale power generation, whether solar PV or

solar thermal.

• The Solar Purchase Obligation will be gradually increased while the

tariff fixed for Solar power purchase will decline over time.

18

Page 19: Jawaharlal nehru national solar mission

The below 80°C challenge – solar collectors

• The Mission in its first two phases will promote solar heating systems, which

are already using proven technology and are commercially viable.

• The Mission is setting an ambitious target for ensuring that applications,

domestic and industrial, below 80 °C are solarised.

• The key strategies are,

• Firstly, make solar heaters mandatory, through building byelaws and

incorporation in the National Building Code.

• Secondly, ensure the introduction of effective mechanisms for certification

and rating of manufacturers of solar thermal applications.

• Thirdly, facilitate measurement and promotion of these individual devices

through local agencies and power utilities.

• Fourthly, support the upgrading of technologies and manufacturing

capacities through soft loans, to achieve higher efficiencies and further

cost reduction.

19

Page 20: Jawaharlal nehru national solar mission

The off-grid opportunity - lighting homes of the power-

deprived poor

• A key opportunity for solar power lies in decentralized and off-grid

applications.

• In remote and far-flung areas where grid penetration is neither feasible nor

cost effective, solar energy applications are cost-effective.

• The key problem is to find the optimum financial strategy to pay for the

high-end initial costs in these applications through appropriate

Government support .

• The Government has promoted the use of decentralized applications

through financial incentives and promotional schemes

• Provide solar lighting systems under the ongoing remote village

electrification programme of MNRE to cover about 10,000 villages and

hamlets.

20

Page 21: Jawaharlal nehru national solar mission

21

• Set up stand alone rural solar power plants in special category

States and remote and difficult areas such as Lakshadweep,

Andaman & Nicobar Islands, Ladakh region of J&K. Border

areas would also be included.

• Promotion of other off grid solar applications would also be

encouraged. This would include hybrid systems to meet

power, heating and cooling energy requirements currently being

met by use of diesel and other fossil fuels.

• Solar energy to power computers to assist learning in schools

and hostels, Management Information System (MIS) to assist

better management of forests in MP, powering milk chilling

plants in Gujarat.

• In order to create a sustained interest within the banking

community, it is proposed to provide a soft re-finance facility

through Indian Renewable Energy Development Agency

(IREDA) for which Government will provide budgetary support.

Page 22: Jawaharlal nehru national solar mission

Manufacturing capabilities: innovate, expand and

disseminate

• Currently, the bulk of India’s Solar PV industry is dependent on imports of critical

raw materials and components – including silicon wafers.

• Transforming India into a solar energy hub would include a leadership role in low-

cost, high quality solar manufacturing.

• Manufacturing capacities for advanced solar collectors for low temperature and

concentrating solar collectors and their components for medium and high

temperature applications need to be built.

22

Page 23: Jawaharlal nehru national solar mission

JNNSM (Phase 1) - Key Deliverables

• 1,100 MW Grid Solar Power Projects

• 200 MW Off-grid Solar Applications

• 7 million Sq. m solar thermal collector area

• R&D and HRD; Centers of Excellence

• Domestic Manufacturing

• Institutional arrangements for implementation of activities

under the Mission

23

Page 24: Jawaharlal nehru national solar mission

STATUS & ACHIEVEMENT OF PHASE-I

Before JNNSM, in early 2010, India’s Solar power

capacity was mare 17.8 MW.

Phase 1 of the mission was largely focused on grid-

connected projects.

500 MW of PV and 350 MW of solar thermal

The Central Government conducted two batches of

reverse auction.

These bidding processes offer feed-in tariffs and long-

term PPAs to the selected least-cost developers.

24

Page 25: Jawaharlal nehru national solar mission

JNNSM : Phase-I, Batch-I

Scheme Projects

allotted

Projects

Commissioned

Weighted

Average

bid tariff

%

Reduction

in tariffNo. MW No. MW

Large PV projects

through NVVN

30 150 26 130 12.16

Rs. / Unit

32 %

2 Projects of 5 MW

each Cancelled

Migration

Scheme

SPV 13 54 11 48

ST 3 30 1 2.5

RPSSGP Scheme

(PV)

78 98 68 87.80

Solar Thermal

projects through

NVVN

7 470 7 382.5 11.48

Rs. / Unit

25 %

Total 131 802 113 650.8 - -25

Page 26: Jawaharlal nehru national solar mission

JNNSM : Phase-I, Batch-II

Scheme Projects

allotted

Projects

Commissioned

Minimum

bid tariff

Maximum

bid tariff

Weighted

Average bid

tariff

%

Reduct

ion in

tariff

No. MW No. MW

Large PV

projects

through

NVVN

28 350 25 310 7.49

Rs. / Unit

9.44

Rs. / Unit

8.77

Rs. / Unit

43 %

26

Page 27: Jawaharlal nehru national solar mission

State/UT MW State/UT MW

Andhra Pradesh 21.8 Punjab 9.3

Chhattisgarh 4.0 Rajasthan 201.1

Gujarat 690.0 Tamil Nadu 17.1

Haryana 7.8 Uttar Pradesh 12.4

Jharkhand 16.0Uttarakhand

5.1

Karnataka 14.0 West Bengal 2.1

Madhya Pradesh 7.4 Andaman & Nicobar 0.1

Maharashtra 20.0 Delhi 2.5

Orissa 13.0 Lakshadweep 0.8

TOTAL 1044.5

State-wise Capacity

27

Page 28: Jawaharlal nehru national solar mission

Growth in Solar Power Installations

3 11 36

1030

0

500

1000

2008-09 2009-10 2010-11 2011-12

Cumulative Installed Solar Capacity (MW)

28

Page 29: Jawaharlal nehru national solar mission

PROGRESS & LEARNING FROM PHASE I

Phase I – was divided into two Batches; batch I & batch II

Batch I – 150 MW SPV & 350 MW Thermal

Batch II – 350 MW SPV

Bundling Concept - In order to facilitate grid connected solar power

generation under the first phase, without any direct funding by the

Government, Government approved NTPC Vidyut Vyapar Nigam

(NVVN) as the nodal agency to purchase 1000 MW of solar power

from the project developers, bundle it with the unallocated power

available from the NTPC coal-based stations and sell this “bundled”

power to the Distribution Utilities. Bundling concept was introduced

to keep the cost of bundled power approximately Rs 5/kWh.

29

Page 30: Jawaharlal nehru national solar mission

JNNSM BATCH I BIDDING SUMMARY

Solar PV Solar Thermal

CERC Approved tariff for Solar PV

CERC approved tariff for Solar Thermal

17.91 Rs. / Kwh 15.31 Rs. / Kwh

Max. discountoffered

Min. discount offered

Max. discountoffered

Min. discount offered

6.96 5.15 4.82 3.07

Final Tariff Final Tariff

10.95 12.76 10.49 12.24

30 SPV Projects | 28 Project Developers 140 MW Capacity | Average Tariff: 12.16 Rs./Kwh Solar Thermal Average Tariff was Rs. 11.41 Rs./Kwh Total of 704 MW capacity project selected | 500 MW Thermal | 204 MW SPV

30

Page 31: Jawaharlal nehru national solar mission

Solar Power Installations

Under the national programme, about 290 MW capacity projects connected to the grid

Large projects = 130.0 MW (Out of 140 MW)

Small Plants = 87.80 MW (Out of 98 MW)

Migration = 50.5 MW (Out of 84 MW)

Other Schemes= 21.5 MW

Through the encouragement provided by the JNNSM, thestates have taken initiatives to install over 755 MWcapacity projects.

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Page 32: Jawaharlal nehru national solar mission

State Initiatives

S. No State Solar Specific Programme

1. Gujarat Announced – 968.5 MW

Commissioned – 690 MW

2. Maharashtra Announced – 205 MW

Commissioned – 40 MW (Setup in Rajasthan)

3. Karnataka Commissioned – 8 MW Plans for 600mw

Minimum tariff – Rs. 7.94/unit

4. Rajasthan Announced – 200 MW

5. Odisha Awarded – 25 MW, Minimum tariff – Rs. 7/unit

Announced -50 mw

6. Madhya Pradesh AWARDED– 200 MW

Minimum tariff – Rs. 7.90/unit

7. Tamil Nadu Announced – 3000 MW

Total Announced –5000 MW approx32

Page 33: Jawaharlal nehru national solar mission

Year Target in

MW

Project

Sanctioned

(MW)

Projects

Installed

(MW)

2010-11 32 40.65 10.79

2011-12 68 77.40 20.2

2012-13 100 96 90.8

Off Grid SPV : Physical Targets and Achievements(Target: 200 MW in Phase-I)

Solar Thermal : Achievements

5.73 million square meter of solar thermal collector

area installed so far cumulatively against target of

7.0 million square meter in Phase-I.33

Page 34: Jawaharlal nehru national solar mission

Important Areas for Off-Grid Solar Applications

• Agricultural water pumps

• Powering telecom towers

• Supplementing power generation using

diesel

• Lighting in areas with no grid power or

insufficient grid power

34

Page 35: Jawaharlal nehru national solar mission

Centers of Excellence

• IIT Bombay: Research and education in the area of

photovoltaics (2009-10)

• IIT Rajasthan: Research and education in the area of solar

thermal (2011-12)

• IIM Ahmedabad: Technology incubation and development of

entrepreneurship (2010-11)

• CEPT University, Ahmedabad: Solar passive architecture and

green building technologies (2010-11)

• Amrita Vishwa Vidyapeetham, Cochin: Integrated nano-

material based Photo Voltaic-storage devices (2010-11)

• IISc. Bangalore: Proposal is under consideration for

decentralized solar thermal power applications35

Page 36: Jawaharlal nehru national solar mission

Research Infrastructure Augmentation

(Universities/ R&D institutions)

• Implementing institutions include

– IIT Bombay, IIT Delhi, IIT Kanpur, IIT Rajasthan

– CSIR laboratories, NPL, NCL, Indian Inst of Chemical

Tech

– Universities: Delhi, Pune, BESU, KIIT, Jain University,

Cochin University of S&T,

– IACS, Indian Institute of Petroleum, TERI

– Industries : Moser Baer, Maharishi Solar, Sunborne, ATE

Pune, Clique Dev, Thermax, Megawatt Solutions,

– Others: WRST; DST Lakshadweep.

36

Page 37: Jawaharlal nehru national solar mission

Specific R&D Thrusts

• CPV

– One proposal from IIT Kanpur was established under

consideration aiming at development of Si solar cell

• Development of high temperature photovoltaics

– Ga As is usually used

– Cooling mechanisms are usually applied.

• Heat Cycles for solar thermal with air as heat sink

– Being tried out in solar tower project by Sunborne

– Covered in the scope of work at IIT Rajasthan project37

Page 38: Jawaharlal nehru national solar mission

Materials and Components

• Receiver for Parabolic Trough Technology: Challenges

– Glass to Metal seals

– Vacuum Receiver

– High temperature and low emittance selective coating

• Advanced power converter modules for PV

– Covered under BESU and IIT Bombay Projects

• Self cleaning reflector surfaces

• Receiver Modules for central tower

– Covered under Sunborne Project 38

Page 39: Jawaharlal nehru national solar mission

New Photovoltaic Materials

• Organic solar cells using organic-inorganic semiconductor hybrid absorber

– IIT Delhi

• Dye Sensitized Solar Cell (DSSC) – IICT, Hyderbad

• Novel Doped 3-D Nanoporous Oxides for Dye-Sensitized Solar Cells –

IIPM, Dehradun

• Salmon DNA-Conducting Polymer (P3HT) - Quantum Dot (CdSe) -

Carbon Nanotube (SWNT) – University of Delhi

• Titania nano-structured thin film based for developing DSSC – Amrita

University, Cochin

• Design and Development of Organic Solar Cell Sub-Modules – IIT Kanpur39

Page 40: Jawaharlal nehru national solar mission

Concentrated Solar Power Projects

• Planned with NCEF and ADB support

• Air/ hybrid cooling

• Large thermal storage

• Base load capacity solar stand alone plant

• Advanced technology with operating temperature over 500 deg C

• Proposed to be taken up

• Hybridization with natural gas

• Solar - biomass hybrid plant

• Solar Augmentation of the existing coal thermal power plant

• Solar dish Stirling engine

40

Page 41: Jawaharlal nehru national solar mission

CERC Tariff Vs. Bid Tariff

17.91

15.39 15.31

12.16

8.77

11.48

0

4

8

12

16

20

SPV Batch-I SPV Batch-II ST

Rs.

Per

Un

it

CERC Tariff Avg. Bid Tariff

32 % reduction

43% reduction

25 % reduction

41

Page 42: Jawaharlal nehru national solar mission

Mandatory Solar RPO Mechanism

• State Electricity Regulators to fix a percentage of

energy purchased from Solar Power under RPO.

• The Solar RPO has to begin with 0.25 % of the

energy procured reaching 3% by 2022.

• This requirement likely to go up to 30,000 MW by

2022.

42

Solar Power required to meet Solar RPOs (MW)

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

1465 3018 4659 6387 8204 10109

Page 43: Jawaharlal nehru national solar mission

Current state-wise Solar RPO targets

43

State 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Andhra Pradesh 0.25% 0.25% 0.25%

Arunachal Pradesh

Assam 0.10% 0.15% 0.20% 0.25%

Bihar 0.50% 0.75% 1.00% 1.25%

Chhattisgarh 0.25% 0.50%

Delhi 0.10% 0.15% 0.20% 0.25% 0.30% 0.35%

JERC (Goa & UT) 0.30% 0.40%

Gujarat 0.50% 1.00%

Haryana 0.00% 0.05% 0.10%

Himachal Pradesh 0.01% 0.25% 0.25% 0.25% 0.25% 0.25%

Jammu and Kashmir

0.10% 0.25%

Jharkhand 0.50% 1.00%

Karnataka 0.25%

Kerala 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%Source: RPO regulations of the respective states

Page 44: Jawaharlal nehru national solar mission

Current state-wise Solar RPO targets

44

State 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Madhya Pradesh 0.40% 0.60% 0.80% 1.00%

Maharashtra 0.25% 0.25% 0.50% 0.50% 0.50%

Manipur 0.25% 0.25%

Mizoram 0.25% 0.25%

Meghalaya 0.30% 0.40%

Nagaland 0.25% 0.25%

Orissa 0.10% 0.15% 0.20% 0.25% 0.30%

Punjab 0.03% 0.07% 0.13% 0.19%

Rajasthan 0.50% 0.75% 1.00%

Sikkim

Tamil Nadu 0.05%

Tripura 0.10% 0.10%

Uttarakhand 0.03% 0.05%

Uttar Pradesh 0.50% 1.00%

West Bengal

Source: RPO regulations of the respective states

Page 45: Jawaharlal nehru national solar mission

45

2.5 MW Unit of

a 10 MW

capacity project

at Bikaner by

ACME

Page 46: Jawaharlal nehru national solar mission

1 MW PV Plant at Osamabad,Maharashtra

46

Page 47: Jawaharlal nehru national solar mission

5 MWp SPV Plant at Khimsar, Rajasthan

47

Page 48: Jawaharlal nehru national solar mission

SPV Power Plant at Goshen Drass

Kargil (40 kWp)

48

Page 49: Jawaharlal nehru national solar mission

Solar Thermal System for Steam

Generation at ITC Hotel, New Delhi

49

Page 50: Jawaharlal nehru national solar mission

Projected Growth

50

Page 51: Jawaharlal nehru national solar mission

National Solar Thermal Power Testing, Simulation and

Research Facility

• 1MWe Solar Thermal Power Plant

- Research and Demonstration plant

- Combination of different collector fields

(Direct and Indirect Steam Generation)

Parabolic Trough Field

-8700 sq. m

-3.3 MWth (Design)

Linear Fresnel Field

- 7200 sq. m

- 2.2 MWth (Design)

51

Page 52: Jawaharlal nehru national solar mission

PHASE 2 PLANNING

• ALTERNATIVES FOR GRID POWER IDENTIFIED

• NEW INITIATIVES FOR OFFGRID

• GRID CONNECTED ROOFTOP TO COME UP IN A BIG

WAY

• R&D AND MANUFACTURING

52

Page 53: Jawaharlal nehru national solar mission

GRID CONNECTED ROOFTOP

• REGULATIONS TO FACILITATE

• CAPITAL SUBSIDY

• PILOT OF 10 MW

• TAX BENIFITS

53

Page 54: Jawaharlal nehru national solar mission

OTHER AREAS

• DIESEL REPLACEMENT

• TELECOM TOWERS

• NEW INNOVATIVE PRODUCTS

• COOLING

• COLD STORAGE

• WATER PURIFICATION

• SPACE HEATING

• WATER PUMPING

54

Page 55: Jawaharlal nehru national solar mission

JNNSM PHASE II

Time – 2013-17 Targets – Cumulative 10 GW Utility Scale | 1 GW off-grid solar power

projects Out of 10 GW; 4 GW under central schemes and 6 GW under various state

schemes Unlike Phase-I, Phase-III is not entirely dependent on bundling scheme to

bring the costs down Implementation of Phase-II will have to be reply upon combination of

various schemes like Generation Based Incentive (GBI), Viability Gap Funding (VGF) and Bundling schemes.

55

Page 56: Jawaharlal nehru national solar mission

JNNSM BATCH II BIDDING SUMMARY

Batch II : Solar PV

CERC Approved tariff for Solar PV

15.39 Rs. / Kwh

Max. discount offered Min. discount offered

7.90 Rs./Kwh 5.95 Rs./Kwh

Final tariff after discount for Solar PV

7.49 Rs./Kwh 9.44 Rs. Kwh

Average Tariff : 8.77 Rs. Kwh

56

Page 57: Jawaharlal nehru national solar mission

IMPLEMENTATION STRATEGIES FOR PHASE-II

Phase I of JNNSM had relatively smaller capacity addition

targets and bundling scheme and generation based incentive

mechanism proved sufficient and successful for rapid increase

of solar power in India during initial stage of the Mission.

However, Phase II has aimed for significantly higher scale of

targets and the Ministry is contemplating all the possible options

for implementation of the mission.

57

Page 58: Jawaharlal nehru national solar mission

STRATEGIES FOR GRID CONNECTED PROJECTS

There are several strategies MNRE is proposing for

implementation of solar power projects under Phase II of the

mission.

a) Bundling Scheme

b) Viability Gap Funding

c) Generation Based Incentive

58

Page 59: Jawaharlal nehru national solar mission

BUNDLING SCHEME

Power generated from NTPC coal based stations

Relatively expensive solar

power

Distribution Utility at Weighted

Average Price

59

Page 60: Jawaharlal nehru national solar mission

VIABILITY GAP FUNDING

It is a scheme announced in 2004 to support the infrastructure

projects.

Challenges in Infrastructure generally characterized by

substantial upfront investments, long gestation periods, fixed

returns, etc.

So it was a scheme to support infrastructure financing through

CAPITAL GRANT

The Scheme provides financial support in the form of grants,

one time or deferred, to infrastructure projects undertaken

through public private partnerships with a view to make them

commercially viable.60

Page 61: Jawaharlal nehru national solar mission

VGF UNDER PHASE II OF JNNSM

CAPEX for Solar Projects is still higher as compare to the thermal.

Cost of generation is more than the average cost of grid power.

Bundling and GBI schemes have very limited scope in Phase II of JNNSM

and Viability Gap Funding could be an attractive alternative for supporting

solar projects during Phase II of the mission.

VGF ON PER MW CAPITAL COST

Under this option,

bidders would bid for viability gap funding requirement in Rs/MW

and

the bidder with minimum VGF requirement would be selected.

61

Page 62: Jawaharlal nehru national solar mission

IT IS PROPOSED THAT THE VGF WOULD BE

PROVIDED IN THREE TRANCHES AS FOLLOWS:

25% at the time of delivery of at least 50% of the major

equipment at the site. This would be based on the cost of total

procurement.

50% on successful commissioning of the full capacity of the

plant

Balance 25% after one year of operation meeting

requirements of generation as per guidelines.

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TARGETED CAPACITY AT UTILITY SCALE

2013-14 2014-15 Total

Bundling (fit)

PV 800 MW 0 MW 800 MW

VGF PV 750 MW 770 MW 1520 MW

CSP 0 MW 1080 MW 1080 MW

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CURRENT HAPPENINGS

The draft methodology for the VGF based bidding process

was released in May 2013

The allocation process, signing of PPAs and handing out of

VGF will all be handled by the Solar Energy Corporation of

India (SECI).

Tariff under VGF = Rs. 5.45 / Kwh (No A.D. Benefits)

Tariff under VGF = Rs. 4.95 / Kwh (A.D. Benefits)

Over and above this, VGF will be provided with an upper

limit of 30% of the project cost or Rs. 2.5 Crores /MW.

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65

REFERNCES

• http://mnre.gov.in/

• http://www.nvvn.co.in/

• http://seci.gov.in/

• Mission Document-Jawaharlal Nehru National Solar Mission

• Solar Energy Corporation of India New Delhi

Ref: SECI/JNNSM PHASE-II B-I/RfS

• Commissioning Status of Solar PV Projects under Batch-II, Phase-I of JNNSM as

on 31 July, 2013

• Jawaharlal Nehru National Solar Mission:Phase II – Policy Document-MNRE


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