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Note on Solar Power Generation in India under

Jawaharlal Nehru National Solar Mission Policy

The Jawaharlal Nehru National Solar Mission (JNNSM) Policy was announced on 19th

November 2009. Subsequently, Central Electricity Regulatory Commission (CERC) has,

suo moto, announced the tariff for Solar Power Projects vide its tariff order dt

3/12/2009 wherein solar photovoltaic power tariff has been fixed at Rs 18.44 per kWh

and solar thermal power tariff was fixed at Rs 13.45 per unit for the control period 2009-

10 . Under Phase I of the JNNSM, NTPC Vidyut Vypar Nigam Ltd (NVVN) has been given

the monopoly to purchase the solar power at rates fixed by CERC and bundle the same

with unallocated thermal power units and sell to the State Discoms at Rs 5.50 per kWh.

A target of 1000MW solar power has been set for the Phase I of JNNSM from 2010 to

2013.

Ministry of New and Renewable Energy (MNRE), Ministry of Power and NTPC/ NVVN are

in the process of formulating the guidelines under JNNSM and the same were expected

to be announced on Jan 11th

2010 in Vigyan Bhavan at the Solar Conclave organized by

MNRE and FICCI. The guidelines and procedures were not announced on Jan 11th

and

now expected to be released on Jan 30th

.

The southern states of Andhra Pradesh, Karnataka, Tamil Nadu and states in NW India

like Gujarat, MP and Rajasthan has the best solar radiation in the country and solar

energy will be an important resource to propel the economic development of India. ASolar Power Purchase Obligation is envisaged under the JNNSM and by 2013, 0.25% of

power consumption of various State Discoms must be from solar power. NVVN will be

purchasing all solar power and will be selling it to the State Discoms. Therefore, the

solar power can be produced in location, which has the best solar resource, and any

State can meet its solar obligation by simply purchasing the stipulated 0.25% of solar

power from NVVN. In other words, States like Kerala, West Bengal, Assam or Meghalaya

would be better off buying the solar power produced in Gujarat or Rajasthan, through

NVVN, rather than producing it in their own state where solar resource is inadequate.

Solar Power Generation in an ideal will ensure Best Energy Yield (20 to 23% Capacity Utilization Factor (CUF) compared to the

benchmark of 19% set by CERC for solar photovoltaic power)

Use of non agricultural land for productive purpose without any litigation

problems by the local population

Solar resource in location is used fully for economic development

Solar Power Developers, Investors and Banks will get the best return on their

capital in view of better energy yields in the ideal location.

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Figure : Radiation Map for NW India showing best solar radiation in Jaisalmer, Jodhpur, Barmer and

Bikaner districts (Source: NRELs GIS tool kit)

Shri Shakti Alternative Energy Ltd has been rendering consulting services to Rajasthan Electricity

Regulatory Commission (RERC) from August 2009 and has evaluated several solar power project

proposals of different technologies, developed benchmark project costs and simulated the solar

power generation with various technologies in Rajasthan using the solar resource assessment

studies carried out during 2002-7 by NREL, USA and MNRE and Indian Meteorological

Department.