Balawant Joshi - National Solar Mission Indian Success Story

7/31/2019 Balawant Joshi - National Solar Mission Indian Success Story

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Asia Clean Energy Forum 2012Session 30: Building Capacity for Effective Policies and Regulations

National Solar Mission: Indian Success Story

Balawant Joshi

Director, ABPS Infrastructure Advisory Private Limited

[email protected], [email protected]
mailto:[email protected]:[email protected]:[email protected]:[email protected]


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Practical Solutions to Real Life ProblemsABPS Infrastructure Advisory Private Limited

NAPCC : Focusing Climate Change and RE Development

National Action Plan for Climate Change (NAPCC)

Honorable Prime Minister of India unveiled National Action Plan on Climate Change (NAPCC) onJune 30, 2008.

NAPCC identifies measures that promote Indias development objectives while also yielding co-

benefits for addressing climate change effectively.

NAPCC comprises of eight core nationalmissions running through 2017 and will help in bringing

better planning, management and developmental strategies and cleaner technologies

National Solar Mission

National Mission for Enhanced Energy Efficiency

National Mission on Sustainable Habitat National Water Mission

National Mission for Sustaining HimalayanEcosystem

National Mission for a Green India

National Mission for Sustainable Agriculture

National Mission on Strategic Knowledge forClimate Change


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NAPCC has set challenging target for RE Development

NAPCC target of 5% for RE Procurement in 2010

Target to increase by 1% each year to reach 15% by 2020

Separate target for Solar Energy

Provides for creation of Renewable Energy Certificate Mechanism

This would mean addition of approx 7000MW capacity each year.

Considering that demand

for electricity wouldincrease to 1700 BU by

2020, it would createmarket for 255 BU units

of renewable energygeneration


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National Solar Mission

Phase-wise approach to Establish India as a Global Solar Energy Leader

Increase in grid connected capacity through mandatory use of RPO andfavorable Generation Based Incentive (GBI)

To provide favorable conditions for Solar manufacturing capability

Promote programmes for off grid applications

S. No.Application

Segment

Target forPhase 1

(2010-13)

Target forPhase 2

(2013-17)

Target forPhase 3

(2017-22)

1. Solar Collectors 7 million sqm 15 million sqm 20 million sqm

2.

Off Grid Solar

Applications 200 MW 1000 MW 2000 MW

3.Utility Grid Power(including roof top)

1000 - 2000 MW 4000 - 10000 MW 20000 MW


5/12Practical Solutions to Real Life ProblemsABPS Infrastructure Advisory Private Limited

Solar Energy: Potential in India

India has tremendous solar power potential with 300 sunny days in a year

and high solar radiation (avg. 5-5.5 KWh/m2)



Implementation Arrangements

Institutional arrangement & capacity building was one of the initial challenge faced.

Under Phase I (2010-13) of NSM, NVVNL was selected as the Nodal Agency forgrid connected projects under reverse bidding auction and migration

Scheme Capacity (MW) Implementing Agency

Grid Connected

Reverse Auction(Bundling)

470 MW Solar Thermal

150 MW SPV

NVVNL

RPSSGP(GBI Scheme)

98 MW SPV IREDA

Migrated Projects* 84 MW NVVNL, SNA

*These were State specific projects later on migrated to NSM

Tariff Policy was also amended to introduce Solar RPO; starting from 0.25% by2013, increasing to 3% by 2022. This will ensure the demand of solar power.



RE Tariff Regulations set benchmark tariffs

Central Electricity Regulatory Commission (CERC) notified RE Tariff Regulations

(Terms and Conditions for Tariff determination from Renewable Energy Sources)on Sept 17, 2009 in which CERC determined preferential tariff for Solar Power.

CERCOrder

Tariff (Rs/kWh)Applicability

Solar PVSolar

Thermal

Sep-09 17.91 15.31

Projects for which PPAsigned before March2011, COD is March2012 (SPV) and March2013 (Solar Thermal)

Nov-10 15.39 15.04

Projects for which PPAsigned before March2012, COD is March

2013 (SPV) and March2014 (Solar Thermal)

March-12 10.39 12.46PPA signed after March2102

1700 1690

1442

1000

0

200

400

600

800

1000

1200

1400

1600

1800

2009-10 2010-11 2011-12 2012-13

SPV Benchmark Capital Cost(Lakh Rs/MW)

SPV Benchmark Capital Cost (Lakh Rs/MW)



National Solar Mission: NVVNL Bundling Scheme

NVVNL

Solar Power DeveloperUnallocated Quota from

NTPC Plants

DISCOM

(State A )

DISCOM

(State B )

DISCOM

(State C)

DISCOM

(State D)

DISCOM

(State E)

PPA (Solar Power)

PSA (Bundled Power)

PV: Rs. 10.95/kWh

Solar Tarif f (Ts)(Discount)

Thermal: Rs. 1.77/kWh

Regulated Tariff (Tt)

Cost of Bundled Power(10.95 * X + 1.77 * 4X) / (X+4X)= Rs 3.61/ Unit

X kWh 4X kWh

JNNSM Phase I batch I received proposals worth 4.5GW for 650MW capacity

GoI decided in favor of reverse bidding for allocation of 650MW projects

Distribution companies were apprehensive due to high cost of solar power

Government developed innovative bundling scheme to allay those fears.

*Figures for illustrative purpose only



National Solar Mission (NSM): Batch I Bid Results(Nov., 2010)

19/06/20129

Solar PV (150MW) Solar Thermal (470MW)

Cents/kWh Cents/kWh

Benchamark Tariff 38.93 Benchmark Tariff 33.28

Minimum Tariff 23.80 Minimum Tariff 22.80

Maximum Tariff 27.74 Maximum Tariff 26.61

Average Tariff 26.44 Average Tariff 24.96

Average Discount onBenchmark Tariff

12.50 Average Discount onBenchmark Tariff

8.32

* 1 $ = Rs 46

Average tariff came down by 32% in SPV Segment. Average Tariff Came down by 25% in Solar Thermal Segment.

NSM, Phase I Batch I bidding process witnessed an overwhelming response from SolarPower Project Developers

There were bids worth over 3400 MW (1505 MW SPV + 2911 MW Thermal) as againstproposed capacity of 620 MW (150 MW SPV + 470 MW Thermal)



National Solar Mission (NSM): Batch II Bid Results(Dec., 2011)

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

20.00

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

Discount (Cents/kWh) Tariff (Cents/kWh)

Cents/kWh

Minimum Tariff 14.40

Maximum Tariff 18.06

Wgt. Average Tariff 16.89

Wgt. Average Discount 12.70

26 Projects with aggregate capacity of 345

MW were selected out of 183 bids withaggregate capacity of 2180 MW

Minimum Tariff was as low as 14.40 cents/kWh


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Evolution of Solar Power Market in India

Solar Power Market has grown from 18 MW in 2010 to 979 MW by May 2012

Policy and Regulatory initiatives were behind this tremendous growth

RE Tariff Regulations,Sept 2009

JNNSM guidelines

Karnataka Solar PolicyRajasthan Solar Policy

JNNSM Batch I:Bidding Guidelines

JNNSM Batch II:Bidding Guidelines

Gujarat Solar PolicyProject Completion

Deadline

JNNSM Batch I

Project CompletionDeadline (Feb-12)


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ABPS Infrastructure AdvisoryPractical Solutions to Real Life Problems

ABPS Infrastructure Advisory

A-309, Kohinoor City

Kirol Road, off LBS Marg

Kurla (West), Mumbai 400 070Ph: +91 22 6124 0400/ 6124 0444

Fax:+91 22 6124 0499

Email: [email protected]
mailto:[email protected]:[email protected]

Balawant Joshi - National Solar Mission Indian Success Story

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