India announces draft strategy for Phase II of Solar Mission

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email

India’s Ministry of New and Renewable Energy (MNRE) has issued a draft solar policy for Phase II of the country’s Jawaharlal Nehru National Solar Mission (JNNSM), outlining its strategy to install 10GW by 2017 through mostly utility-scale projects.

The objective of the MNRE’s Solar Mission is to create conditions, through rapid scale-up of capacity and technological innovation, to drive down costs towards grid parity. The ministry believes solar power could achieve grid parity and become cost competitive with coal in India by 2018 due to the decrease in module prices.

MNRE envisages that of this 10GW target (see Table 1), 4GW would be developed under the JNNSM central scheme and 6GW under various state-specific schemes. During Phase II, MNRE expects that around 20,000 villages will benefit from these schemes for off-grid electricity generation projects, to hit its target of 1,000MW of roof-top solar (see Table 2).

The schemes include 'bundling', which involves combining solar power with traditional sources of energy like coal, which can be sold to utilities at a cheaper rate than offered by solar power alone.

There is also a Generation Based Incentive (GBI) which increases deployment of rooftop PV systems as well as small power plants. The MNRE is required to offer utilities a set price valid for 12 years. However, the government is concerned that with falling module prices, the GBI could become an expensive incentive scheme. Project sizes under Phase II are expected to be in the range of 500kWp to 2.5MWp. 

The majority of project allocations will be completed under the Viability Gap Funding (VGF) offered to private investors in the form of grants from the government. The scheme aims to ensure widespread access to infrastructure provided through a public-private partnership framework by subsidising the capital cost to developers by 20% and thereby reducing the need for government involvement in solar projects.

Phase II will also include aid to solar manufacturers across the value chain, although details were not provided in the draft policy. Financing for manufacturers will be crucial at this time, with the Indian Solar Manufacturers’ Association having approached the World Trade Organisation over complaints against foreign manufacturers undercutting domestic manufacturers.

Speaking to PV-Tech, Pashpathy Goplan, Managing Director of SunEdison South Asia, Africa and Middle East said: “The trade case could affect the effectiveness of the JNNSM. Domestic manufacturers are not cost competitive therefore the cost of modules will increase making projects more expensive to build.”

Goplan added: “I am confident the JNNSM will be able to achieve what it has set out in Phase II because the decision-makers were able to achieve their goals in Phase I.”

However, Tarun Kapoor, spokesman for MNRE assured PV-Tech that the anti-dumping case would not affect the successful implementation of the JNNSM.

Kapoor said: “We are very confident we will achieve our goals. It will not be easy, but we will certainly achieve our goals.”

Furthermore, a ministry division, the Solar Energy Centre, is being renamed as the National Institute of Solar Energy, which will specialise in research and development, resource assessment, training and testing.

Under Phase I, India’s current installed capacity reached 1,050MW by August 2012, just short of 50MW of its 1,100MW target.
 

28 September 2021
Solar Solutions International is the largest trade show for solar energy in Northwest Europe. Now the solar market has grown up, it's time for the next step. Solar Solutions International displays more than 500 innovations and over 100 practical seminars concerning the latest in energy storage, smart products, and an ever evolving array of solar panels. As an exclusively B2B trade show, Solar Solutions International offers both exhibitors and visitors the chance to network at the highest level. Duurzaam Verwarmd, the largest trade show for sustainable HVAC technology in the Benelux, is held simultaneously. This way your one visit gets you up to date with all of the developments in both sustainable energy and heating.
6 October 2021
Intersolar Europe is the world’s leading exhibition for the solar industry. It takes place as part of The smarter E Europe – the continent’s largest platform for the energy industry. Under the motto “Connecting solar business,” manufacturers, suppliers, distributors, service providers and project planners and developers from around the world meet in Munich every year to discuss the latest developments and trends, explore innovations firsthand and meet potential new customers.
6 October 2021
The future is bright for a new era of US solar and storage, and the 8th annual Solar & Storage Finance Summit will provide opportunities to discuss solutions to the industry’s challenges and provide a networking platform designed to bring together the top minds in the industry to do business. With a mix of high-level, informative presentations and panels, a stellar cast of speakers and audience members with deal-making capacity, the 2021 edition of the event will be a sell-out success.
18 October 2021
Intersolar South America, South America’s largest exhibition and conference for the solar industry, takes place at the Expo Center Norte in São Paulo, Brazil on October 18–20, 2021, and has a focus on the areas of photovoltaics, PV production and solar thermal technologies. At the accompanying Intersolar South America Conference, renowned experts shed light on hot topics in the solar industry.
19 October 2021
This year’s EV World Congress will hold a special role, not only as the first live EverythingEV event in over a year – a chance to renew your connections and re-engage with the EV sector face to face – but also as a chance to share insight and inspiration as world starts to look towards move on post COVID towards hitting ambitious decarbonisation goals in 2030 and beyond. As ever, we will be bringing world leading organisations, cities, and technology providers to the UK to inspire EV innovators, and delve into the challenges facing the sector as the UK looks to revolutionise road transport.
20 October 2021
Utility-scale solar is evolving, shaped by higher power modules and demand for increasingly lower levelised cost of electricity (LCOE). Those trends are also changing project requirements elsewhere, with inverters capable of delivering high power density and power capacity in strong demand. In this webinar, FIMER will detail how its innovative high-power, multi-MPPT string inverter and modular conversion solution can both meet those demands and transform the utility-scale solar sector for the better.

Read Next

September 23, 2021
A project that bids to combine up to 20GW of solar PV with the world’s largest energy storage battery and a 4,200km-long subsea power cable has moved a step forward after Indonesian authorities greenlit its proposed transmission cable route.
September 23, 2021
US national residential and C&I solar plant performance assessment company Omnidian has completed a US$33 million Series B raise.
September 23, 2021
US developer Clearway Energy Group has signed a virtual power purchase agreement (VPPA) with Toyota in North America to supply the company with 80MW of power, accounting for 8% of the company’s regional operations
PV Tech Premium
September 23, 2021
Backed by a new heterojunction module factory in Florida and the expansion of its production plant in Minnesota, solar manufacturer Heliene is looking to take advantage of US policy support to meet increasing demand for American-made PV equipment. Jules Scully discusses the company’s growth plans with CEO Martin Pochtaruk.
September 23, 2021
Arizonan utility Salt River Project (SRP) and renewables company Clēnera have signed a 20-year power purchase agreement (PPA) for the CO Bar Solar project that is expected to deliver between 440-480MW of power
September 23, 2021
Russian wholesale electricity market administrator JSC ATS has allocated 775MW of solar PV in the country’s eighth auction round for largescale renewables, which had an average price of ₽5.18/kWh (US$0.071/kWh)

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021
BRISTOL, UK
Solar Media Events
December 1, 2021