Jawaharlal Nehru National Solar Mission

Ministry of New and Renewable EnergyGovernment of India

1

Gp Capt PK Khanna,Senior Project Engineer,Center for Solar Energy Technologies (CSET),Indian Institute of Technology Jodhpur (IIT J)(Raj)`

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

2

To establish India as a global leader in solar energy, by creating the policy conditions for its diffusion across the country.

Mission anticipates achieving grid parity by 2022 and parity will coal based thermal power by 2030.

To adopt a 3-phase approach from 2010 to 2022.

Aim of the mission is to focus on setting up an enabling environment for solar technology both at centralized and decentralized level.

Mission ObjectivesJawaharlal Nehru National Solar Mission has been launched under the National action Plan on Climate Change with an objective:

Mission Targets

Application Segment Phase - I Phase-II Phase- III

2010-13 2013-17 2017-22

Utility grid power 1,000-2,000 MW 4000-10,000 MW 20,000 MW

Off- grid Applications 200 MW 1,000 MW 2,000 MW

Solar Thermal Collectors Area

7 million Sqm 15 million Sqm 20 million Sqm

Manufacturing Base -- -- 4,000-5,000 MW

Solar Lighting Systems

-- -- 20 million

Solar RPO 0.25% -- 3%

A 3- phase approach has been formulated

To create necessary environment to attract industry and project developers for investment in power generation, manufacturing.

To work closely with State governments, regulators, power utilities and local self government bodies.

To attract banks and financial institutions to provide necessary finance for setting up solar power projects for grid/ off-grid.

To promote off-grid solar applications to meet light and power requirements of energy–poor by provision of low cost credit through re-finance facility from IREDA

Mission Strategy

Mission Road MapApplication 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 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

6

Indian Power Sector

ThermalNuclearHydroRenewable

2.14%

17.64%

67.69%

Thermal1,51,530

MW

Hydro 39,491

MW

Nuclear 4,780

MW

Renewable 28,068

MW

Total2,23,869

MW

7

12.54%

Power Installed Capacity = 223.869 GW

Renewable Power Capacity

WindSmall HydroBio massSolar

12.94%

Wind19,051

MW

Small Hydro

3,632 MW

Solar1819 MW

Biomass 3,698 MW

Total28,067 MW

8

6.01%

13.18%

67.87%

Technology Choice in PV Power

Technology Choice Solar Thermal

Project Growth

ShortageShortage

AccessAccess

SecuritySecurity

Climate ChangeClimate Change

DemandDemand

India’s Energy ChallengeIn next 12 years India’s electricity requirement

to grow 2.5 times

Climate Change is also an important

issue

India is dependent on oil imports for 80% of

its demand

400 Million people still

without access to electricity

Electricity shortage

estimated at 25-35 GW

12

Solar Power Purchase Obligation

Solar specific RE Certificates

Incentivizing through NTPC Vidyut Vyapar Nigam Ltd. (NVVN) for setting up of large solar power plants.•

• Designated as nodal agency for entering into PPA with Solar Power Developers.

• MoP allocating equivalent amount of MW to NVVN.• Sale of power as per CERC regulations (to provide Generation

Based incentive)

Rooftop solar PV and other small power plants connected to LT/11 KV grid with a remunerative feed-in tariff ( routed through IREDA)

Policy & Regulatory framework

Custom duties and excise duties concession/ exemptions on

• Specific capital equipment• Critical materials components• Project imports

Fiscal Incentives

To establish low cost, high quality manufacturing facility for solar PV with the targets of 4-5 GW by 2020.

To provide incentives to establish SEZ for solar manufacturing parks.

To provide soft loans for technology up gradation and working capital through re-finance facility from IREDA.

Solar-Manufacturing

Fund Sources• To provide budgetary support for the activities• To access International Funds under the UNFCCC

framework

Fund requirement for Phase II• Review of progress achieved at the end of 11th Plan• Analysis of the efficacy of the model adopted

Financing the Mission Activities

To set up a solar research council to guide the overall technology development strategy

To establish a national centre of excellence to implement the plans formulated by the council.

Main tasks will be testing and certification, developing standards and specifications, networking among different research institutions.

Research and Development

Potential for employment for 1 lakh personnel by end of mission period.

Design and development of specialized courses on solar energy at engineering/ management cadre

Training of technicians for effective sales and service network.

To provide training for scientists and engineers and also to establish Government Fellowship Programme.

Human Resource Development

Regulatory measures- RPO/REC

Supporting grid connected projects to bring

volumes and reduce prices

Finacial support for off-grid

Support R&D in India

Encourage manufacturing

HR development

Policy and Regulatory Support19

Targets & Achievements of Phase-I

20

Application Segment Target for Phase I (2010-13)

Achievement for Phase-I

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

1,100 MW

1,684.4355 MW (including those

under state initiative)

Off-grid solar applications allotment

200 MW 252.5 MW

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

7 million sq. meters

7.001 million sq. meters

JNNSM: Phase-I, Batch-IScheme Projects

allotted

Projects

Commissioned

Weighted Avg. bid

tariff

MW MW

Large PV projects

through NVVN

150 130 12.16

Rs. / Unit2 Projects of 5 MW each

Cancelled

Migration

Scheme

SPV 54 48

RPSSGP Scheme (PV) 98.05 88.80 CERC linked tariff

Solar Thermal projects

through NVVN

470 50 MW

commissioned

11.48

Rs. / Unit

Total 772.05 316.8 -

21

JNNSM : Phase-I, Batch-II

Schem

e

Projects

allotted

Projects

Commissione

d

Minimu

m bid

tariff

Maximu

m bid

tariff

Weighte

d

Average

bid tariff

%

Reducti

on in

tariffNo. MW No. MW

Large

PV

project

s

throug

h

NVVN

28 350 25 300 7.49

Rs. /

Unit

9.44

Rs. /

Unit

8.77

Rs. /

Unit

43 %

22

Learning from JNNSM Phase-I 23

Reduction in tariff is possible if capacity to be allotted is high.

Experienced companies are interested in large size projects.

Transmission and Evacuation System is still a major issue.

Assurance of continuous and timely payment is very important from

lenders’ point of view.

Resource Assessment was another major Issue but now with

experience, developers are more confident about it across various

parts of the country.

Equipment import is still very high despite domestic content

requirements i.e. Domestic manufacturing needs more support.

Financial health of State Discoms is hampering the growth and

Increasing risks for Investors.

RPO enforcement and monitoring from SERCs and Nodal agencies are

not very efficient, which is a major hurdle.

Thrust areas for Phase-II

24

Scaling Up of Grid Connected Projects

Grid Connected & Off-Grid Rooftop Projects

Off-Grid projects

Hybrid Systems

Expanding existing Manufacturing Capacity

Focused Research & Development

Solar Resource Monitoring & Assessment

Financing

Human Resource Development

Development of Solar Parks

State/UT MW State/UT MWAndhra Pradesh 33.15 Punjab 9.325Arunachal Pradesh 0.025 Kerala 0.025Chhattisgarh 4.0 Rajasthan 551.15Gujarat 857.9 Tamil Nadu 17.05Haryana 7.8 Uttar Pradesh 17.375Jharkhand 16.0 Uttarakhand 5.05Karnataka 14.0 West Bengal 2.05

Madhya Pradesh 37.315Andaman & Nicobar 5.1

Maharashtra 160.0 Delhi 2.5555Odisha 13.0 Lakshadweep 0.75Puducherry 0.025 Others 0.79

TOTAL

Total Capacity by 31st March, 2013 1684.4355Total Capacity by till date 1819.4355

State-wise Capacity25

List of States which have announced Solar Policy and have encouraged setting up of solar projects.S. No State Solar Specific Programme

1 Gujarat • Announced – 968.5 MW, Commissioned – 857.9 MW

2 Andhra Pradesh

• Tendered - 1000 MW , Bid received for 150 MW for tariff Rs. 6.49/-, Commissioned – 20.15 MW

3 Tamil Nadu • Announced – 3000 MW, Tendered 1000 MW out of which LOI for 701 MW issued, Commissioned – 17.105 MW

4 Odisha • Allocated 50 MW in two phases of 25 MW each

• Awarded – 25 MW, Minimum Tariff – Rs. 7/Unit

5 Rajasthan • Tendered – 200 MW (100 MW PV + 100 MW ST), 75 MW PV allotted

6 Karnataka • Commissioned – 24 MW, Approved Plan for 200 MW

• Project allotted – 70 MW, Min. tariff – Rs. 7.94/Unit 10 MW Commissioned on 05 Jun 13

• LOI Issued-130 MW

14

Upcoming Projects from States26

S. No State Solar Specific Programme

7 Chhattisgarh

• Aims at capacity of 500 to 1000 MW till March 2017

8 Uttar Pradesh

• Aims at capacity of 500 MW till March 2017• 130 MW allotted.• A JVC is proposed between UPNEDA and NHPC

Ltd. initially for 50 MW and total target is 100 MW.

9Madhya Pradesh

• Awarded 200 MW, commissioned -37.315 MW• Minimum Tariff – Rs. 7.90/Unit

10 Maharashtra

• Commissioned– 125 MW under State initiative and 35 MW under REC scheme.

11 Bihar • 50 MW allotted and 100 MW tendered.

12 Punjab • Tendered for 300 MW out of which capacity of 250 MW under allotment

Some States have not taken action to meet Renewable Purchase obligation (RPO)

27

Solar Radiation Resources Assessment StationsAndhra Pradesh 6

Gujarat 11

Haryana 1

Madhya Pradesh 3

Karnataka 5

Rajasthan 12

Chhattisgarh 1

Ladakh 1

Maharashtra 3

Pudducherry 1

Tamil Nadu 6

• C-WET is implementing the project for setting up 51 ground monitoring stations and another 60 Stations under commissioning

• Centralized data collection, analysis and calibration of measuring sensors

28

Grid-connected :Target & Thrust Areas

Cumulative target: 10,000 MW (by March 2017)

-4,000 MW under Central schemes-6,000 MW under States initiatives

Thrust areas: Development of T&D network Developing cluster of Solar Parks to reduce costs Grid-connected Roof-top Achieving grid parity at the earliest

29

Plans for Off-Grid ProjectsJNNSM Phase-II envisages development of cumulative capacity of 1000

MW for Off-Grid Solar power and target of 15 Million Sq.M collector area

Improved Energy Access in remote areas

Heating/Cooling applications that would encourage income generation

opportunities (such as Cooling, Cold Storage, water purification, Space Heating)

Replacement of Diesel and Kerosene : Telecom towers (25000 systems)

Distributed Generation : (e.g. rooftop PV applications – 1000 MW)

Use in industry : (Space Heating, water pumping)

Solar Cities

Solar Cookers & Steam Generating Systems

30

Institutional Arrangements31

• “National Institute of Solar Energy” (NISE) under the Societies Registration Act, 1860 and under MNRE as Centre of Excellence.

• Envisaged Role: Effective R&D program with an objective to improve efficiencies in the existing materials, devices and systems. The R&D program will also address the issues of hybrid – co-generation, convenient and cost effective storage and address the constraints of variability and space intensity.

• Solar Energy Research Advisory Council, Chaired by Dr. Anil Kakodkar was set up to advise on research policy with a view to achieve Mission targets..

• Solar Energy Industry Advisory Council, Chaired by Shri Anand Mahindra was set up.

Separate Targets for other applications

32

Rooftop PV Programme – 1000 MW

Energy Access – 20,000 (Villages/hamlets/basti/padas)

Off-Grid Lighting Systems – 10 lakhs

Solar Cities – 15 (In addition to existing target of 60 cities)

Solar Water pumps – 25,000 Systems

Telecom Towers – 25,000 Systems

Solar Water Heating Systems – 8 Million Sq.m of Collector area

Solar Cooker & Steam Generating Systems – 50,000 Systems

Industrial Process heat application – 400 , 250 Sq.m each on an average

Manufacturing – 4/5 GW Capacity

Solar Monitoring & Assessment – 60 Monitoring Stations

Human Resource Development – 1 Lakh trained & Specialized personnel

Solar Parks (250 MW capacity and Land area of 600 hectare) – 5 Nos.

Hybrid Systems

Risk Factors in Funding Solar Projects

Risk Factors in Funding Solar ProjectsFinancial Risk •In time financial closure by the project developer.

•High cost so funding from single source is a risk.•Raising of equity

Guarantee and Warranty Risk

Long term guarantee and warranty from the technology providers for the new technology.

Suggestions for Risk Mitigation • Advocation for long term / stable/ consistent policies at central / state level-

to honor PPAs and MoUs.

• Frequent / close interaction with all stake holders including regulatory commissions- to stipulate appropriate GBI/PPA based on capital cost.

• Proper Resource assessment studies.

• Provision of partial risk guarantee fund from Govt.

• Importance of timely clearances / approvals for solar projects.

• To create special single window clearance cell at state level.

• Promoters to take advance actions to avoid delay of deliveries- to meet targets under JNNSM.

• To encourage establishment of more manufacturing units/ suppliers in the country- to deliver indigenous cells and modules as per the requirement of JNNSM .

Suggestions for Risk Mitigation• To establish a mechanism to have information exchange between

various FIs and banks-for co-financing or consortium financing.

• Detailed site survey reports to be undertaken through professional bodies- to maximize performance efficiencies.

• To establish more training institutions for producing skilled manpower-capacity building.

• To stipulate suitable conditions for recovery of loan from operations of solar projects in the event of failure of core business (for non IPP projects).

• Concurrent monitoring of projects by Fis by appointment of lenders engineers.

• Periodic inspection / monitoring of projects even after implementation. (TRA and Generation data)

• Innovative financing models by accessing low cost funds from international institutions.

National Solar Thermal Power Testing, Simulation and Research Facility at Solar Energy Centre

1 MW PV Plant at Osamabad

38

5 MWp SPV Plant at Khimsar, Rajasthan39

Sun Edison -5 MW Plant at Bikaner, Kolayat, Rajasthan

40

Greentech Power -5 MW Plant at Jodhpur, Phalodi, Rajasthan

41

Thank You !

42