The government of India has announced plans to adopt a 'viability gap' funding model for the second phase of its Jawaharlal Nehru National Solar Mission (JNNSM).
Under this proposed model, the government will provide financing in the form of grants to grid-connected solar power projects.
In comparison, under the first phase of the JNNSM programme, the government had adopted a reverse auction model whereby it would select solar power projects based on certain tariffs.
Through the JNNSM programme, the Indian government aims to install 20GW of PV capacity in the country by 2022. Phase one is well under way and in December 2012 India’s Ministry of New and Renewable Energy (MNRE) issued a draft solar policy for the second phase, which outlines its strategy to install 10GW by 2017 through mostly utility-scale projects.
In a separate announcement, the Indian government revealed that more than 50,000 jobs have been created in the country in the last three years in the renewable energy sector.
It is estimated that employment for nearly 40 people is generated during the construction and commissioning of a 1-2MW PV project. This number increases by approximately 15 for every additional 1MW capacity.