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Posted in Commercial, Grid Connected, PV, Rooftop, Solar | Tagged , , ,

Revised Draft Guidelines for Implementation of Scheme for setting up of 2000 MW Grid-connected Solar PV Power Projects under JNNSM, Batch-III “State Specific VGF Scheme”

Revised Draft Guidelines for Implementation of Scheme for setting up of 2000 MW Grid-connected Solar PV Power Projects under JNNSM, Batch-III “State Specific VGF Scheme”

Phase-II, Batch-III: State Specific VGF Scheme

The Solar Projects of 2000 MW Capacity under the State Specific VGF Scheme will be set up in the Solar Parks of various states, to be developed through coordinated efforts of Central and State Agencies. As implementation of solar parks have begun recently, it could be possible that Solar Parks in some of the States do not become available  soon.  For such States,  Solar  Projects would be  allowed  to  be  located outside solar parks with land being provided either by the State Government, or arranged by the Solar Power Developers (SPDs).

These Guidelines shall form the basis for Selection of Grid Connected Solar PV Projects under this Scheme. Out of the total capacity of 2000 MW, a capacity of 250 MW will be earmarked for bidding with Domestic Content Requirement (DCR).

MNRE shall specify the total State-wise Capacity of the Projects (both “Open Category” and “DCR Category”) based on commitments from the State for off take of not less than 90% of the Capacity to be invited by SECI before issue of Request for Selection (RfS). SECI shall tie up for the remaining capacity with the other Buying Entities for which the Host State shall facilitate Inter-State transfer of power.

1.7     Mechanism of Viability Gap Funding (VGF) in the Scheme

This scheme envisages providing Viability Gap Funding through SECI to the bidders selected through a transparent bidding process to procure solar power at a pre- determined fixed tariff. The salient feature of the overall mechanism would be as follows:

a) The tariff payable to the Project developer is fixed at Rs.5.43/ kWh for the initial year and then escalated annually by 0.05/ kWh for next 20 years, resulting in the maximum allowable tariff of Rs 6.43 / kWh at the end of 21st year. The tariff would thereafter, remain fixed at Rs. 6.43/kWh. The levelized tariff for the term of the Power Purchase Agreement thus becomes Rs. 5.79/kWh. The bidders will be free to avail fiscal incentives like Accelerated Depreciation, Concessional Customs and Excise Duties, Tax Holidays, etc. as available for such projects. The same will not have any bearing on comparison of bids for selection. As equal opportunity is being provided to all bidders at the time of tendering itself, it is up to the bidders to avail various tax and other benefits. No claim shall arise on SECI for any liability if bidders are not able to avail fiscal incentives and this will not have any bearing on the applicable tariff.

b) The Project developer will be provided a viability gap funding based on his bid. The upper limit for VGF is kept at Rs.1.0 Cr/MW for open category (Rs. 1.31 Cr./MW for projects in DCR category). 

c) The Project developer has to infuse capital in the form of his own Equity for an amount of at least Rs. 1.2 Cr. /MW.  The remaining amount can be raised as loan by the developer.

d) The VGF  when  paid  by  the  SECI  may  be  used  to  return  part  of  the  loan  or developer contribution (in excess of 1.2 Cr. /MW) or a combination thereof as the case may be, in case investments have already been made. SECI will issue a letter confirming sanction/ grant of VGF at the time of signing of Power Purchase Agreement  (PPA),  so that  the  Project  developer  is  able  to  achieve  financial closure for full amount, if required.

e) The VGF will be released in six 50% on successful commissioning of the full capacity of the project (COD) and the balance 50% progressively over next 5 years subject  to  the  project meeting  generation  requirements  (CUF within specified range as per Clause 3.15.1), as under:

§ End of 1st  Year from COD – 10%
§ End of 2nd Year from COD – 10%
§ End of 3rd  Year from COD – 10%
§ End of 4th  Year from COD – 10%
§ End of 5th  Year from COD – 10%

If the project fails to generate any power continuously for any 1 year within 25 years or its major assets (components) are sold or the project is dismantled during this tenure, SECI will have a right to refund of VGF on pro-rata basis and if not paid by the developer then a claim on assets equal to the value of VGF released, on pro-rata basis as specified hereunder:

Year of default(From COD) SECI’s right to refund of VGF/ claim on assets(% of VGF paid)
Up to 5 years 100%
5-6 years 90%
6-7 years 80%
7-8 years 70%
8-9 years 60%
9-10 years 50%
10-11 years 40%
11-12 years 30%
12-13 years 25%
13-14 years 23%
14-15 years 21%
15-16 years 19%
16-17 years 17%
17-18 years 15%
18-19 years 13%
19-20 years 11%
20-21 years 9%
21-22 years 7%
22-23 years 5%
23-24 years 3%
24-25 years 1%

g) If the project is transferred or sold to a third party during its tenure (after initial lock-in period of 1 year), SECI will retain full rights to operationalize the PPA with the third party, which will be under full obligation to honour all the obligations and terms & conditions of the PPA.

h) Solar  Power   Developers (SPDs) and SECI shall enter into suitable VGF Securitization Agreement creating a charge over the Project assets in favour of SECI along with signing of PPA. SECI shall have a second charge over the Project assets in case of Projects being financed by lending institutions. In all other cases, SECI shall have the first charge over the Project assets to the extent of 110% of the VGF amount

i) In case the lending institution exercises its right to step in or take over the project, SECI will also have right to step in along with the lending institution to reclaim VGF in accordance with sub-clause (f) above or handover the project to another party for operation

1.8   Total Capacity and Portfolio of Solar PV Technology Projects

1.8.1    The total aggregated capacity of the grid connected solar power projects to be set up by Solar Power Developers on Build-Own-Operate (BOO) basis under Viability Gap Funding scheme in Phase-II, Batch-III of JNNSM shall be 2000 MW. The projects to be selected under this scheme provide for deployment of Solar PV Technology. However, the selection of projects would be technology agnostic and crystalline silicon or thin film or CPV, with or without trackers can be installed.

1.8.2    Already commissioned projects cannot be considered under this scheme. Projects under construction or projects which are not yet commissioned will, however, be considered, in case these projects are not already accepted under any other Central or State Schemes. Enhancement and augmentation of existing Projects irrespective of their capacities will not be considered as eligible Project under this scheme.

1.9      Implementation Agency

1.9.1    Solar Energy Corporation of India (SECI) will be the nodal agency for implementation of this Scheme. A fund handling charge @1% of the total VGF disbursed shall be payable to SECI out of the sanctioned VGF. SECI will develop a suitable monitoring mechanism, conduct review meetings, conduct studies to analyse the performance of the projects, carry  out  random checks  to verify  compliance of quality standards and additionally the  compliance of DCR for  DCR Category. No separate funding shall  be provided by MNRE to SECI for these  activities.

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Draft-VGF_2000 MW_Guidelines_for-grid-solar-power-projects

Posted in Climate Change, Crystalline, Government, Grid Interactive Distributed Solar Energy Systems, India, MNRE, Renewables, Solar, Solar Policy, Thin Film, Transmission and Distribution, VGF | Tagged , , , , , , , ,

Uttar Pradesh – Request for Proposal (RfP) For Procurement of 215 MW Power From Grid Connect Solar PV Power Projects Through Tariff Based Competitive Bidding Process

Request for Proposal (RfP)
Procurement of 215 MW Power
Grid Connect Solar PV Power Projects
Tariff Based Competitive Bidding Process

RfPNo: 01/UPNEDS/GRID Connect/RfP/2015

Issued By:
Uttar Pradesh New and Renewable Energy Development Agency, (UPNEDA)

UPNEDA will support setting up of Grid connected 215 MW Solar PV Power stations if established in Uttar Pradesh for the direct sale of power to UPPCL. UPNEDA on behalf of UPPCL, will select solar powerproducer for setting up of minimum 5 MW capacity Solar PV Power Plants (total capacity 215 MW) and the maximum capacity of the Project shall be up to 100 MW. The plant capacity shall remain in multiples of 5 MW.

The total capacity of Solar PV Projects to be allocated to a Company including its Parent, Affiliate or Ultimate Parent or any Group Company shall be limited to 100 MW.

UPNEDA on behalf of Uttar Pradesh Power Corporation Ltd. (UPPCL), Lucknow – a Company incorporated in India and registered under the Companies Act, 1956will select the Solar PV Power Project Developers, and UPPCL will sign the Power Purchase Agreement (PPA) with the Successful Bidder.


PPA will be signed between Procurer and Successful Bidder(s).The Procurer shall pay to the Seller(s) the Quoted Tariff which has been arrived from the single tariff quoted by the successful bidder in the price bid, as per the terms and conditions of the PPA enclosed as Enclosure 1 of Format 4.10. The bidder should quote a tariff below the UPNEDA approved ceiling tariff of Rs. 9.33/kWh. The tariff quoted above the ceiling tariff shall not be accepted. The tariff shall be payable by the Procurer in Indian Rupees.

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Posted in DISCOM, Grid Connected, India, PV, Renewables, Solar, Solar Policy, Transmission and Distribution, Uttar Pradesh | Tagged , , , , , , , , , , , , ,

Guidelines for Empanelment of Channel Partners / Agencies and Entrepreneur under ‘Grid Connected Rooftop and Small Solar Power Plants Programme’

Guidelines for Empanelment of Channel Partners/Agencies and New Entrepreneur under ‘Grid Connected Rooftop and Small Solar Power Plants Programme’

The Ministry of New and Renewable Energy (MNRE) is implementing a Grid Connected Rooftop and Small Solar Power Plants Programme’ in the Country.  The Government of India has set a target of 40,000 MWp of Grid-Interactive Rooftop Solar PV Plants during the next five years. However, 10,000 MWp are intended to be done in next two years. These rooftop solar PV plants will be set up in residential, commercial, industrial, institutional sectors in the country ranging from 1 kWp to 500 kWp capacity. Such rooftop plants have become economically viable as they produce clean electricity from the solar energy at about Rs. 7.0 per kWh even without any subsidy. However, MNRE will be providing the 15% subsidy on the capital cost of the system. The interest subsidy through the banks is also being planned.

2. The Channel Partners/Agencies will play an important role in implementation of grid connected rooftop systems in residential, commercial, industrial and institutional sectors across the country. The Channel Partners may be involved by States Nodal Agencies/ Departments/ PSUs, Financial Institutions, Public Sector Banks and other implementing agencie Ref. “Grid Connected Rooftop and Small Solar Power Plants Programme” vide no. 30/11/2012-13/NSM dated 26th  June 2014, for empanelment of Channel Partners the guidelines are as follows :


1. Any of the following entities can apply to become Channel Partner

1.1     Renewable Energy Service Providing Companies (RESPCOs)

1.2     System Integrators

1.3     Manufactures of any component of the Solar Plants

1.4     Project Developers

1.5     VENDORS/Suppliers of solar equipment’s

1.6     Reputed and relevant NGOs of national level

1.7     Govt. PSUs, Departments, Agencies, Technical Institutions

2. The eligibility conditions are:

2.1       The  Registered  company/NGO  must  have  experience  to  carry  out  activities which are envisaged under the programme.

2.2       The Channel Partner have certificate from a rating agency in the country for technical and financial strength.

2.3     The Channel Partner must have audited account for last three years.

2.4       The  company net worth must be positive.  The  assests and liabilities  of  the company must be clearly specified by rating agencies.

2.5    Reputed Govt. PSUs, Departments, Agencies, Technical Institutions could be exempted from the accreditation by rating agency on submission of their application with MNRE based on the criteria defined for this purpose.

3. Application process: Any entity which fulfills the above criteria may approach rating agencies to get the rating. After getting rating the entities may forward the rating report with application to register them as Channel Partner.

3.1     Rating  Agencies:  Reputed  rating  agencies  in  the  country  which  may  be specified by MNRE including those who registered with RBI and SEBI are eligible to rate the agencies. The following is the levels of rating :

1A 1B 1C 1D 1E
2A 2B 2C 2D 2E
3A 3B 3C 3D 3E
4A 4B 4C 4D 4E
5A 5B 5C 5D 5E

1 to 5 depicts the technical strength with 1 being the highest. A to E depicts the financial strength with A being the highest.

3.2     Period to Receive Applications: The Ministry will receive applications from the entities to become Channel Partners during January – February and July – August in every calendar year. However, depending upon necessity the applications may be invited in between also.

3.3       Tenure: The tenure of Channel Partner is initially for two years.

3.4     The Channel Partner will give undertaking for engagement, development and training of at least 25 persons who will work for the development of solar roof-top market through sales, service, marketing etc.

3.5     The Channel Partner must open office/ shops and service centers in the State where they have their registered office.

4.0      Section-2: Service network

Since all systems installed by Channel Partners are with five years AMC the Channel Partners must have representative office in the area/state where the systems are installed. The Channel Partner must be in position to attend the complaint, if any, within 48 hrs.

5.0       Section-3: Website

The Channel Partner must have own website. Details of all systems installed by Channel Partners must be placed on website. Channel Partners have to have complaint redressal mechanism. This must be reflected in the Channel Partner’s Website.

6.0       Section-4: Training


The Channel Partner will have to develop training capacities. MNRE will come with plan to train local persons to ensure service near the user. Channel Partners will have to implement the plan. They must also have a plan of their own. The details of trained manpower must be placed on Channel Partner’s Website.


7.0       Section-5: Manpower


7.1     Channel Partners must have technical manpower on  their payrolls. This will reflect in the rating reports given by the rating agencies.


7.2      Literature  User’s  Manual: The Channel Partner must have literature/user’s manual for installer and user. They must have brochure, pamphlets giving company information, company information, to whom complaint to be placed for service. These must be distributed to all users along with manuals of inverters and other information to the user.


8.0       Section-6: Review


The Ministry will review the Programme periodically.


9.0       Guidelines for Empanelment of New Entrepreneurs


1. It should be a registered company under the Company Act 1956.

2. It should not be blacklisted from ministry of cooperate affair.

3. It must have Solar/power related experience.

4. The company must have Engineering background.

5. Company engaged in the manufacturing of any of solar related product or BOS component can be considered for the empanelment.


Posted in Channel Partner, Grid Interactive Distributed Solar Energy Systems, India, Industrial, MNRE, PV, Regulations and Procedures, Residential, Rooftop, Solar, Subsidy

Seven Reasons Cheap Oil Can’t Stop Renewables Now


Oil prices have fallen by more than half since July. Just five years ago, such a plunge in fossil fuels would have put the renewable-energy industry on bankruptcy watch. Today: Meh.

Here are seven reasons why humanity’s transition to cleaner energy won’t be sidetracked by cheap oil.

1. The Sun Doesn’t Compete With Oil

Oil is for cars; renewables are for electricity. The two don’t really compete. Oil is just too expensive to power the grid, even with prices well below $50 a barrel.

Instead, solar competes with coal, natural gas, hydro, and nuclear power. Solar, the newest to the mix, makes up less than 1 percent of the electricity market today but will be the world’s biggest single source by 2050, according to the International Energy Agency. Demand is so strong that the biggest limit to installations this year may be the availability of panels.

“You couldn’t kill solar now if you wanted to,” says Jenny Chase, the lead solar analyst with Bloomberg New Energy Finance in London.

2. Electricity Prices Are Still Going Up

The real threat to renewables isn’t cheap oil; it’s cheap electricity. In the U.S., abundant natural gas has made power production exceedingly inexpensive. So why are electricity bills still going up?

US Electric Prices
Source: Deutsche Bank. Data: EIA, Thomson Reuters

Fuel isn’t the only component of the electricity bill. Consumers also pay to get the electricity from power plant to home. In recent years, those costs have soared. Annual investments in the grid increased fourfold since 1980, to $27 billion in 2010, according to a report by Deutsche Bank analyst Vishal Shah. That’s driving bills higher and making rooftop solar attractive.

3. Solar Prices Are Still Going Down

You may have seen this chart before. It’s the most important chart. It shows the reason solar will soon dominate: It’s a technology, not a fuel. As time passes, the efficiency of solar power increases and prices fall. Michael Park, an analyst at Sanford C. Bernstein, has a term for the staggering price relationship between solar and fossil fuels: the Terrordome.

Solar price drop

Source: Bernstein Research. Data: EIA, CIA, World Bank, Bernstein analysis

The chart above shows the price of energy from different sources since the late 1940s. The extreme outlier is solar, which only recently entered the marketplace, at a very high price. Prices are falling so fast that solar will soon undercut even the cheapest fossil fuels, coal and natural gas. In the few places oil and solar compete directly, oil doesn’t stand a chance.

Case in point: Oil-rich Dubai just tripled its solar target for the year 2030, to 15 percent of the country’s total power capacity. Dubai’s government-owned utility this week awarded a $330 million contract for a solar plant that will sell some of the cheapest electricity in the world.

4. Sales of Plug-Ins Are Doing Just Fine, Actually

Conventional wisdom says cheap oil is an existential threat to electric vehicles. It’s been true in the past, notably when Congress retreated from funding EV research in the 1980s as oil prices tanked. Things are different now, and global sales of plug-ins rose by about a third last year, according to BNEF.

US Car Sales

Plug-In Car Shares

Source: Tom Randall. Data: Electric Drive Transportation Association, Ward’s Automotive Group, Bloomberg

Here’s why cheap oil won’t stop electric vehicles:
1.Since 2010 there’s been no relationship between gasoline price and electric vehicle sales, according to BNEF analyst Alejandro Zamorano Cadavid. Electric cars are still in the early-adopter phase, and someone paying $100,000 for a Tesla doesn’t care that gasoline costs a buck less per gallon.
2.In Europe, gas taxes are so high that it makes the price of crude less important. If you’re in Norway, and gas drops from $10 a gallon to $9 a gallon, electric cars are still a deal.
3.In China, the government is stepping up support for electric vehicles. Pollution has become a serious problem, and the Chinese are getting serious about fixing it. Plug-in sales are soaring.

Electric vehicles are moving like a Tesla: quietly, but with great acceleration. Let’s bookmark this conversation for two years from now, when Chevy and Tesla plan to release the first affordable mass-market plug-ins with a range of 200+ miles per charge. At that point, the price of fuel might be a real consideration for car buyers, and at that point it’s more likely to tip the scales toward EVs, not away from them.

5. Pump Prices Haven’t Dropped as Much as Oil Prices

They haven’t changed at all in Malaysia, Indonesia, and Thailand

Pump Prices World
Source: Bernstein Research

There are a couple of interesting reasons why savings at the pump haven’t kept pace with falling oil prices. First, a number of countries, including India and Indonesia, have used the price drop as cover to cut gasoline subsidies that were weighing down their budgets. Second, countries that include China have pocketed the savings from cheaper oil by increasing gasoline taxes to make up the difference.

Fossil-fuel subsidies outpace renewable-energy subsidies by a factor of 6 to 1. Reducing the subsidy gap is one of the cheapest ways to increase fuel efficiency and speed up the switch to cleaner energy. Expect similar moves as the rising toll of climate change pushes governments to take action.

6. Oil Prices Won’t Stay This Low Forever

The history of oil prices follows a golden rule: What goes down must come up. Goldman Sachs identified almost $1 trillion in investments in future oil projects that are no longer profitable with oil under $70 a barrel. American drillers are idling rigs faster than they have since 1991. Eventually, supply will shrink and prices will rise again.

Oil may never return to $100 a barrel, according to billionaire Saudi Prince Alwaleed Bin Talal Al Saud. Even so, few experts foresee oil remaining at its current lows for more than a year or two. Unlike oil, the price of renewables is predictable and always going down. Solar power will be as cheap as, or cheaper than, electricity from the grid in as much as 80 percent of global markets by the end of 2017, according to Deutsche Bank’s Shah.

7. Global Investment in Clean Energy Keeps Flowing

The biggest question for renewables and the oil plunge is: How much does perception shape reality? Shares of solar and wind companies have been pulled down with oil prices. Will this artificial drag bleed into direct investments in energy projects?

global solar installations projection

This chart shows a conservative scenario. BNEF’s more optimistic scenario is 8%-10% higher.

Source: Bloomberg New Energy Finance

Not likely. There are too many forces pulling in the opposite direction. Global investment in clean energy increased 16 percent last year, to $310 billion, according to data compiled by BNEF. The U.S. and China, the world’s biggest emitters, reached a historic deal in November to rein in greenhouse gases. Pope Francis is preparing a papal encyclical on climate change, a letter to the world’s bishops that will formalize the church’s moral position on the issue for 1.2 billion Catholics. He may also convene a summit of the world’s top religious leaders in advance of global climate talks in Paris in December.

Those talks represent the world’s last best chance to mitigate the damage from climate change. National policies to reduce carbon pollution would speed up the adoption of clean energy. Even in their absence, the global energy shift away from fossil fuels has begun, and we know how it will end.

Source: Bloomberg

Posted in Climate Change, Coal, Fossil Fuel, Greenhouse Gases, Grid Connected, Grid Interactive Distributed Solar Energy Systems, India, News, Pollution, PV, Renewables, Solar, USA, Wind | Tagged , , , , , , , , , , , , , , , ,

Implementation of Scheme for setting up of 1000 MW of Grid-Connected Solar PV Power Projects by Central Public Sector Undertakings (CPSUs) and Government of India Organizations under various Central / State Schemes / self-use / 3rd party sale / merchant sale with Viability Gap Funding under Batch-V of Phase-II of JNNSM

Implementation of the Scheme

2.1     Applicability: The CPSUs  and Government of India organi zations  would  set-up Grid­ connected solar  PV po wer projects  under  various  Central/  State  Schemes/ self-use/ 3rd  party sale/  merchant  sale with Viability  Gap Funding  under Batch-V of Phase-II of JNNSM

2.2        Power    Purchase/Sale   Arrangements:   The CPSUs  and Government of India organizations   like  NTPC,  NHPC,  CIL,  IREDA ,  Indian Rail ways,  etc.  may participate in various  Central / Slate Government  Tenders, from  time to time,  during the period from  2014-15 to 2016-1 7, for sale  of solar  power  to State  Utilities / Discoms or any  other  organization. The  CPSUs  may  also  sign  Power  Purchase Agreements (PPAs)/  Power  Sale  Agreements (PSAs) with State Utilities/ Discoms at tariff determined by Central  Electricity Regulatory Commission (CERC)  or State Electricity Regulatory Commissions (SERCs)  or may develop projects for their own use or for sale of power to a third party at mutually negotiated rates.

2.3.       Domestic Content Requirement and  impact  on tariff:  The Solar  Projects to be set up by  CPSUs /  Government  of  India   Organizations  must  mandatorily procure cells and modules from domestic manufacturers. V GF will be released as per para 4.

Benefit  under this project will not be available where DCR  clause  is already there as tariff would  then have taken care of the DCR clause.

  1. Role of Solar  Energy Corporation of India  (SECI):

The Solar Energy  Corporation  of India (SECI)  will handle the scheme  on behalf of MNRE, for which they will be given a fee of 1% of the VGF disbursed for handling the funds and  managing  the  Scheme.  The  handling  charge to SECI shall  come  within  the overall provision of Rs. 1000 Cr.  As soon as the projects of CPSUs are approved & PPAs are signed and the  CPSUs  decide  to  use domestically  manufactured  cells  and  modules  as mentioned above,  CPSUs  will have an option to approach  SECI for grant of VGF.  SECI will process their application  and give in-principle approval.

4. Release  of VGF 

VGF would  be provided  through  SECI at a fixed rate of Rs. 1 Cr/MW for  projects where domestically  produced  Cells  and  Modules  are  used, and  Rs.50  lakh/MW would  be provided  in cases where domestically  produced modules  are used as per the details given in the Scheme.

Alternatively,  VGF can also be released directly to Domestic  Manufacturers  through SECI  instead  of releasing  the VGF  to CPSUs/  Govermnent  of  India  Organizations, if so required. This will be released to the manufacturer who will be supplyin g cells and modules to the CPSUs/  Government  of India Organizations  for that particular  power plant  based on order placed  by the CPSUs/  Government  of India Organizations/  their EPC contractor.  The release will be made after the project is commissioned and the CPSUs/  Government of India Organizations  make a request for release of VGF to SECI.

In case of any operational  difficulties and in order to ensure timely implementation of the scheme, MNRE will be authorized to make amendments in the Terms & Conditions of the Scheme with the approval of the Minister, NRE without increasing the financial requirements and VGF limits.

The  funds  for  implementation of the above scheme  would  be met  from  Demand No.69-Ministry of New & Renewable Energy;  Major Head: 2810-New & Renewable Energy; 101-Grid  Interactive & Distributed Renewable Power, 01 -Grid Interactive Renewable Power, 04-Solar Power, 31-Grants-in-aid General during 2014-15 (Plan).

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Posted in Crystalline, Government, Grid Connected, India, MNRE, Phase II, PV, Renewables, SECI, Thin Film, VGF | Tagged , , , , , , , , , , , , , ,

India’s solar dream fuelled by global trends

solar canal top
The country plans to install 100 GW capacity of solar-generated electricity by 2022, a five-time increase from a previous target.

India’s plan to install 100 GW capacity of solar-generated electricity by 2022, a five-time increase from a previous target, only follows a global trend that has seen a sudden and massive jump in the deployment of solar power in the last four years.

The global installed capacity of solar electricity has increased by six times between 2010 and 2013. At the end of 2009, the total installed capacity was 23 GW. In the next four years, an average of about 28 GW was added every year, taking it to 135 GW by the end of 2013.

According to figures published by the International Energy Agency (IEA) a few months ago, more than 36 GW of new solar capacity was added in 2013, or about 100 MW per day (see box).


This explosion has led to projections for the future being revised upwards by significant amounts. In 2010, the IEA had said that by 2020, about 210 GW of solar electricity would be installed. Now, that target is likely to be achieved this year itself. In its latest projection, in 2014, the IEA said the total installed capacity in 2020 would easily exceed 400 GW.

The main reason for this surge in deployment of solar-generated electricity has been a sharp decline in prices of photo-voltaic systems, which has made electricity produced by solar energy comparable in costs to traditional sources like coal or oil. According to IEA figures, the prices have dropped to a third of their 2008 levels. In some countries, prices have reduced by as much as 80 per cent in the last five years.

It is this global context that makes India’s 100 GW target for 2022 look within striking distance, despite the fact that more than three years after it had launched the National Solar Mission, only 3 GW of solar capacity had been installed in the country till November 2014.

solarenergy_targets“100 GW by 2022 is a very ambitious target but not unachievable. A lot needs to be done at the government level, including a push for domestic manufacturing of photo-voltaic units which will drive down prices further. A massive capacity building exercise also needs to be undertaken,” Amit Kumar, Adjunct Professor at TERI University, said.

In fact, looking at the global trend, the IEA had, in another report last year, said India could easily install 50 GW of solar capacity by 2022 instead of the 20 GW it was targeting at that time.

“However, reaching 100 GW by 2022 would represent a considerable acceleration of newly built solar capacity to 20 GW per year in the next couple of years. India is currently installing about 15 GW per year from all technologies. The government’s aim to reach 100 GW of solar capacity is ambitious,” Cedric Philibert of Renewable Energy Division of the IEA told The Indian Express.

“Based on our information, the government expects that among the 100 GW total capacity, about 40 GW would come from residential rooftop units. We believe that adding 5 GW per year from distributed PV (rooftops) is not impossible for such a large country… But this would also imply a concerted government effort,” Philibert said.

“Achieving 100 GW would require a number of accompanying policy initiatives… to address reforms to facilitate trade of power among private parties and consumers,” he said.

Some policy changes are already being put in place. Last month, the government approved amendments to the Electricity Act, 2003 with several provisions to boost the generation and use of renewable energy. The cabinet also cleared a scheme to set up 25 solar parks, with a capacity of 500 MW or above each.

The government is also pushing for Renewable Generation Obligations (RGOs) that will force power producers to generate a part of their electricity through renewable energy.

Simultaneously, efforts are being made to boost domestic production of PV cells and units. One reason for the decline in global prices of PV units has been the shifting of manufacturing from the western countries to China. “Chinese manufactured PV units are now serving about two-thirds of the global market,” said one government official.

Huge demand for solar units has also driven down prices.

India is also in a position to manufacture PV units cheaply, at prices comparable to Chinese products. Last month, the government announced that defence establishments and para-military forces would be eligible for viable gap funding (VGF) to set up solar power plants of 300 MW capacities if they ensure that PV cells and modules are manufactured domestically.

“Solar manufacturing can become a crucial part of the Make in India strategy. The 100-GW target is an aspirational one. Even if we achieve around 80 or 90 GW at 2022, it would be very significant and useful, not just from climate change point of view but also for India’s energy security and overall economy,” said Kumar.

Source: Indian Express

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Programme/ Scheme wise Physical Progress of Renewable Energy in 2014-15 (During the month of December)

Physical Progress (Achievements)
Ministry of New & Renewable Energy
Programme/ Scheme wise Physical Progress in 2014-15 (During the month of December)
Sector FY- 2014-15 Cumulative
Target  Achievement (as on 31.12.2014)
Wind Power 2000.00 1333.20 22465.03
Small Hydro Power 250.00 187.15 3990.83
Biomass Power & Gasification 100.00 0.00 1365.20
Bagasse Cogeneration 300.00 152.00 2800.35
Waste to Power 20.00 1.00 107.58
Solar Power 1100.00 430.67 3062.68
Total 3770.00 2104.02 33791.67
Waste to Energy 10.00 8.54 141.27
Biomass(non-bagasse) Cogeneration 80.00 34.32 561.64
Biomass Gasifiers
0.80 0.00 17.48
8.00 2.20 149.40
Aero-Genrators/Hybrid systems 0.50 0.13 2.38
SPV Systems 60.00 52.77 227.12
Water mills/micro hydel 4.00 0.00 13.21
Bio-gas based energy system 0.00 0.30 4.07
Total 163.30 98.26 1116.57
Family Biogas Plants (numbers in lakh) 1.10 0.12 47.53
Solar Water Heating – Coll. Areas(million m2) 0.50 0.48 8.63
 Solar Energy Helpline No. 1800 2 33 44 77
Posted in Batch II, Biofuels, Biomass, Cogeneration, Commercial, Geothermal, Hydro, India, JNNSM, MNRE, Phase II, PV, Renewables, Residential, Rooftop, Rural Lighting, Solar, Solar Parks, Solar Policy, Solar Pumps, Solar Thermal | Tagged , , , , , , , , , , , , , , , , , ,