National Solar Mission - JNNSM - Power Point

Confidential
by
11/24/2009
Introduction
Importance & Relevance of Solar Energy in India
Objectives & Targets
Mission Strategy (Phase I & II)
Proposed Roadmap
Policy & Regulatory Framework
Research & Development
National Solar Mission India / JNNSM / Solar India / Nov 2009

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11/24/2009
Human Resource Development
Institutional Arrangements for Mission
International Collaboration
Financing Mission Activities

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Major initiative by GOI & State Governments
Aims at promoting ecologically sustainable growth
Also addresses energy security challenge
Will contribute to the global effort to meet the

challenges of climate change

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11/24/2009
Cost
◦ Solar is high on absolute cost as compared with other power
such as coal
◦ Objective of Solar Mission is to drive down the cost by
Rapid scale-up of capacity
Technological innovation
◦ Mission anticipates to achieve
Grid parity by 2022
Parity with coal-based thermal power by 2030

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◦ Cost trajectory depends on

Scale of global deployment
Technological development & transfer
◦ Cost projections vary - from 22% for every doubling of
capacity to a reduction of only 60% with global deployment
increasing 16 times the current level
◦ Mission recognizes a number of off-grid applications for
meeting rural needs which are cost-effective & requires
rapid expansion

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Scalability
◦ About 5000 Trillion Kwh energy potential is incident over India’s
land area with most parts receiving 4-7 Kwh/Sq.mt/Day
◦ Technologies that can be used to harness the resource & provide
huge scalability of solar in India– Solar Photovoltaics & Solar
Thermal
◦ Advantages of Solar technology
Ability to provide power in a distributed basis
Enable rapid capacity addition with short lead times.
Apt solution for rural electrification
Can work in diffused radiating conditions as well
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Environmental Impact
◦ Zero emissions while generating heat and emissions
Security of source
◦ Available abundantly
◦ Small fraction of total incident solar energy can meet the entire
country’s power requirements

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Objective is to establish India as a global leader in solar

energy
Mission adopts 3-phase approach
◦ Phase I (up to 2012/2013) – remaining period of 11th five yr
plan & first yr of 12th yr plan
◦ Phase II (2013-2017) – remaining 4 yrs of 12th five yr plan
◦ Phase III (2017-2022) – 13th five yr plan

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End of each plan there will be

◦ Evaluation of progress
◦ Review of capacity
◦ Targets for subsequent phases
Above evaluations will be based on emerging cost and
technology trends, both domestic and global
Aims to protect government from subsidy exposure &
expects cost reduction does not materialize or is more rapid
than expected

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Mission Targets
◦ Create an enabling policy framework for the deployment of
20,000 MW of solar power by 2022
◦ Ramp up capacity of grid-connected solar power generation
◦ 2013 – 1000 MW
◦ 2017
Additional 3000 MW (mandatory use of renewable purchase
obligation by utilities backed with preferential tariff)
Capacity could increase to 10,000 MW installed power by 2017 or
more, based on enhanced & enabled international finance &
technology transfer

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◦ 2022 – 20,000 MW or more – will be dependent on “learning” of first

two phases
Create favorable conditions for solar manufacturing capability
(solar thermal for indigenous production & market leadership)
Promote programmes for off grid applications (1000 MW –
2017 & 2000 MW – 2022)
Achieve 15 million sq. meters – 2017 & 20 million sq. meters
-2022 of solar thermal collector area
2022 - deploy 20 million solar lighting systems for rural areas

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Will provide broad framework to achieve objectives

Will create necessary environment to attract industry &
project developers to invest in research, domestic
manufacturing & development of solar power generation
Hence will help in creating the critical mass for a domestic
solar industry
Mission to work closely with State Govts., Regulators,
Power utilities & Local self govt. bodies to ensure activities
& policy framework being laid out can be implemented
effectively

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Utility connected applications: constructing the solar grid

◦ Promoting solar power through Renewable Purchase Obligation
(RPO) mandated for power utilities, with specific solar
component
◦ RPO will drive utility scale power generation (solar PV or solar
thermal)
◦ RPO will gradually increase where as the tariff fixed for solar
power purchase will decline over time
The below 80°C challenge – solar collectors
◦ Mission sets an ambitious target for ensuring that applications,
domestic & industrial, below 80°C are solarised

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Key strategy to make necessary policy changes to meet

this objective
◦ Making solar heaters mandatory, through building byelaws and
incorporation in the National Building Code
◦ Ensure the introduction of effective mechanisms for
certification and rating of manufacturers of solar thermal
applications
◦ Facilitate measurement and promotion of these individual
devices through local agencies and power utilities
◦ Support the upgrading of technologies and manufacturing
capacities through soft loans, to achieve higher efficiencies and
further cost reduction
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The off-grid opportunity – lighting homes of the

power- deprived poor
◦ Key problem to find optimum financial strategy to pay for the
high-end initial costs in these applications through appropriate
Government support
◦ Government has promoted the use of decentralized applications
through financial incentives and promotional schemes
◦ Solar Mission has set a target of 1000 MW by 2017, which may
appear small, but its reach will add up to bringing changes in
millions of households
◦ 30 % capital subsidy for promoting innovative applications of
solar energy

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Mission plans to
◦ Provide solar lighting system under the ongoing remote village
electrification programme of MNRE to cover about 10,000
villages & hamlets
◦ Set up stand alone rural solar power plants in special category
States and remote and difficult areas such as Lakshadweep,
Andaman & Nicobar Islands, Ladakh region of J&K. Border
areas would also be included
◦ Promotion of other off grid solar power applications would
also be encouraged (includes hybrid systems to meet power,
heating & cooling energy requirements currently being met by
use of diesel & other fossil fuels)

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Solar energy to power computers to assist learning in

schools & hostels would
Consider up to 30 per cent capital subsidy for promoting such innovative
applications
Also structure a non-distorting framework to support entrepreneurship, up-
scaling and innovation
Manufacturing capabilities: innovate, expand and disseminate
◦ Requires India’s leadership role in low-cost
◦ High cost solar manufacturing, including balance of system components
◦ Proactive implementation of Special Incentive Package policy to
promote PV manufacturing plants
◦ SME sector forms the backbone for manufacture of various components
and systems for solar systems

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R&D for Solar India: creating conditions for research and

application
◦ Focus on
Improvement of efficiencies in existing materials, devices and
applications and
Reducing costs of balance of systems,
Establishing new applications by addressing issues related to
integration and optimization
Developing cost-effective storage technologies which would address
both variability & storage constraints
Targeting space-intensity through the use of better concentrators
Application of nano-technology & use of better & improved materials

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◦ Solar Research Council to be set up to oversee the strategy

◦ Human resource development programme to be established
◦ In phase I – 1000 young scientists & engineers would be
incentivized to get trained on different solar energy
technology as mission’s long-term R&D & HRD plan
◦ Pilot demonstration projects would be closely aligned with
the Mission’s R & D priorities and designed to promote
technology development and cost reduction
◦ In Phase I - mission envisages setting up of the following
demonstration projects which are already initiated by
MNRE & those which may be set up by corporate investors

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◦ 50-100 MW Solar thermal plant with 4-6 hours’ storage (which can meet
both morning and evening peak loads and double plant load factor up to
40%)
◦ A 100-MW capacity parabolic trough technology based solar thermal plant
◦ A 100-150 MW Solar hybrid plant with coal, gas or bio-mass to address
variability and space-constraints
◦ 20-50 MW solar plants with/without storage, based on central receiver
technology with molten salt/steam as the working fluid and other emerging
technologies.
◦ Grid-connected rooftops PV systems on selected government buildings and
installations, with net metering.
◦ Solar-based space-cooling and refrigeration systems to meet daytime and
summer season peak load. These could be installed on selected government
buildings and installations
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◦ Bidding process will be adopted for better price discovery of

determining tariff for solar power
◦ It is expected that the plants will be commissioned in the 12th
plan period

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To ensure large-scale deployment of solar generated power

for grid-connected as well as distributed and decentralized
off-grid provision of commercial energy services
Sl. Application Target for Phase Target for Phase Target for Phase
No. Segment I (2010-2013) II (2013-2017) III (2017-2022)
7 million sq 15 million sq 20 million sq
1 Solar Collectors meters meters meters
Off grid solar
2 applications 200 MW 1000 MW 2000 MW
Utility grid
power, including
3 roof top 1,000-2000 MW 4000-10,000 MW 20000 MW

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Provide a predictable incentive structure that enables rapid

& large-scale capital investment in solar energy
applications
Encourage technical innovation & lower the costs
In long run, mission would seek to establish a sector-
specific legal & regulatory framework for solar power
development
In short run, it embeds the activities of the mission within
the existing framework of Electricity Act of 2003

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National Tariff Policy 2006 mandates the State Electricity

Regulatory Commissions (SERC) to fix a minimum
percentage of energy purchase from renewable sources of
energy (availability of resources & impact on retail tariff)
Solar power purchase for states
Phase I 0.25%
By 2022 Up to 3%

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In order to encourage rapid scale-up a scheme is being

introduced in co-operation with the Ministry of Power, NTPC
& Central Electricity Authority, to simply off-take of solar
power & reduce the financial burden on govt.
Also aims to bring down the gap between average cost of
power and sale price of power
NVVN (wholly owned subsidiary - NTPC) (NTPC Vidyut
Vyapar Nigam Ltd ) is chosen as the nodal agency for entering
into a Power Purchase Agreement (PPA) with solar power
developers

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PPA
◦ Shall be signed with the developers who will be setting up Solar
Projects within next three years and are connected to the grid at 33
KV level and above
◦ Will be valid for a period of 25 years
Mission will encourage rooftop solar PV and other small solar
power plants, connected to LT/11 KV grid, to replace
conventional power and diesel-based generators
Generation Based Incentive payable to the utility to cover the
difference between the solar tariff determined by CERC, less
the base price of Rs. 5.50/kWh with 3% p.a. escalation

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State Governments would encourage to promote and establish

solar generation Parks with dedicated infrastructure for setting up
utility scale plants to ensure ease of capacity creation
Fiscal Incentives
◦ Custom duties and excise duties concessions/ exemptions be made
available on specific capital equipment, critical materials ,
components and project imports
Solar Manufacturing in India
◦ Aims to take India on a global leadership role in Solar
Manufacturing

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Targets 4-5 GW equivalent of installed capacity by 2020

including setting up of dedicated manufacturing capacities
for poly silicon material to annually make about 2 GW
capacity of solar cells
India’s current PV module manufacturing capacity 700 MW
Some plants likely to be set in public & private sector
To achieve installed target capacity, mission recommends
◦ Local Demand Creation

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Financing & Incentives

◦ SEZ like incentives to be provided to the manufacturing parks
which may include
Zero import duty on capital equipment, raw materials and excise duty
exemption
Low interest rate loans, priority sector lending
Incentives under Special Incentive Package (SIPs) policy to set up
integrated manufacturing plants;
from poly silicon material to solar modules; and
thin film based module manufacturing plants
It is also recommended that solar components be covered under the
Bureau of Energy Efficiency’s star rating programmes to ensure high
standards

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Committee may be set up to formulate a policy for

promotion of solar thermal manufacture in the country
◦ Ease of Doing Business
◦ Infrastructure & ecosystem enablers
2-3 large solar manufacturing tech parks
Should have 24x7 power and water supply
need to be located near large urban centers with good linkages to ports
and airports to ensure rapid access to imported raw materials and high
quality engineering talent

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Mission will launch a major R&D programme in Solar

Energy, which will focus on improving efficiency in
existing applications, reducing costs of Balance of Systems
To support the R&D Strategy, the Mission may include the
following
◦ Setting up a high level Research Council comprising eminent scientists,
technical experts and representatives from academic and research
institutions, industry, Government and Civil Society to guide the overall
technology development strategy
◦ National Centre of Excellence (NCE) shall be established to implement
the technology development plan formulated by the Research Council
and serve as its Secretariat

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◦ Research Council, in coordination with the National Centre of Excellence,

inventorize existing institutional capabilities for Solar R&D and encourage the
setting up of a network of Centres of Excellence, each focusing on an R&D area
of its proven competence and capability
◦ These centers to be located in research institutes, academic institutions or even
private sector companies
◦ NCE will provide a national platform for networking among different centers of
excellence and research institutions, including foreign R&D institutions and
high-tech companies
◦ NCE will serve as the funding agency to support performance-linked solar R&D
programmes (funding, or co-funding of pilot demonstration projects) in areas
relevant to Mission objectives

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◦ NCE will coordinate with the IMD, ISRO and other concerned agencies, the
detailed mapping of ground insulation, particularly in high potential solar
regions of the country
◦ To provide support for incubation and start ups, the Mission could tie up with
institutions like Centre for Innovation, Incubation and Entrepreneurship (CIIE)
based in IIM Ahmedabad to incubate solar energy start-ups and SMEs in India
through mentoring, networking and financial support
◦ Fund aims to support at least 50 start ups developing & deploying solar related
technologies across India over next 5 yrs & would be managed by a professional
entity
◦ Initiative shall be structured ideally in a private-public partnership model, to be
able to provide risky capital to the aspiring entrepreneurs
◦ It would also attract contributions from private stakeholders, amounting to, at
least 10% of that of the Government

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Requires a concomitant increase in technically qualified

manpower of international standard
Steps required for HRD
◦ IITs & premier Engineering Colleges will be involved in designing &
developing specialized courses in Solar Energy
◦ Government Fellowship programme to train 100 selected engineers /
technologies and scientists in Solar Energy in world class institutions abroad will
be taken up
◦ Setting up of a National Centre for Photovoltaic Research and Education at IIT,
Mumbai drawing upon its Department of Energy Science and Engineering and
its Centre for Excellence in Nano-Electronics

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Autonomous Solar Energy Authority embedded within the

existing structure of the Ministry of New and Renewable
Energy
To monitor technology developments, review and adjust
incentives, manage funding requirements and execute pilot
projects

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Strategic international collaborations and partnerships

Effective technology transfer mechanisms and strong
IPR protection
Co-operation through bilateral and multilateral
arrangements would be facilitated

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Budgetary support for the activities under the National

Solar Mission established under the MNRE
International Funds under the UNFCCC framework, which
would enable up scaling of Mission targets

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Confidential

National Solar Mission India / JNNSM / Solar India / Nov 2009

Human Resource Development

Institutional Arrangements for Mission

Financing Mission Activities

National Solar Mission India / JNNSM / Solar India / Nov 2009

Major initiative by GOI & State Governments

Aims at promoting ecologically sustainable growth

Also addresses energy security challenge

Will contribute to the global effort to meet the

National Solar Mission India / JNNSM / Solar India / Nov 2009

National Solar Mission India / JNNSM / Solar India / Nov 2009

◦ Cost trajectory depends on

National Solar Mission India / JNNSM / Solar India / Nov 2009

National Solar Mission India / JNNSM / Solar India / Nov 2009

Objective is to establish India as a global leader in solar

National Solar Mission India / JNNSM / Solar India / Nov 2009

End of each plan there will be

National Solar Mission India / JNNSM / Solar India / Nov 2009

National Solar Mission India / JNNSM / Solar India / Nov 2009

◦ 2022 – 20,000 MW or more – will be dependent on “learning” of first

National Solar Mission India / JNNSM / Solar India / Nov 2009

Will provide broad framework to achieve objectives

National Solar Mission India / JNNSM / Solar India / Nov 2009

Utility connected applications: constructing the solar grid

National Solar Mission India / JNNSM / Solar India / Nov 2009

Key strategy to make necessary policy changes to meet

The off-grid opportunity – lighting homes of the

National Solar Mission India / JNNSM / Solar India / Nov 2009

National Solar Mission India / JNNSM / Solar India / Nov 2009

Solar energy to power computers to assist learning in

National Solar Mission India / JNNSM / Solar India / Nov 2009

R&D for Solar India: creating conditions for research and

National Solar Mission India / JNNSM / Solar India / Nov 2009

◦ Solar Research Council to be set up to oversee the strategy

National Solar Mission India / JNNSM / Solar India / Nov 2009

◦ Bidding process will be adopted for better price discovery of

National Solar Mission India / JNNSM / Solar India / Nov 2009

To ensure large-scale deployment of solar generated power

National Solar Mission India / JNNSM / Solar India / Nov 2009

Provide a predictable incentive structure that enables rapid

National Solar Mission India / JNNSM / Solar India / Nov 2009

National Tariff Policy 2006 mandates the State Electricity

National Solar Mission India / JNNSM / Solar India / Nov 2009

In order to encourage rapid scale-up a scheme is being

National Solar Mission India / JNNSM / Solar India / Nov 2009

National Solar Mission India / JNNSM / Solar India / Nov 2009

State Governments would encourage to promote and establish

National Solar Mission India / JNNSM / Solar India / Nov 2009

Targets 4-5 GW equivalent of installed capacity by 2020

National Solar Mission India / JNNSM / Solar India / Nov 2009

Financing & Incentives

National Solar Mission India / JNNSM / Solar India / Nov 2009

Committee may be set up to formulate a policy for

National Solar Mission India / JNNSM / Solar India / Nov 2009

Mission will launch a major R&D programme in Solar

National Solar Mission India / JNNSM / Solar India / Nov 2009

◦ Research Council, in coordination with the National Centre of Excellence,

National Solar Mission India / JNNSM / Solar India / Nov 2009

National Solar Mission India / JNNSM / Solar India / Nov 2009

Requires a concomitant increase in technically qualified

National Solar Mission India / JNNSM / Solar India / Nov 2009

Autonomous Solar Energy Authority embedded within the