Jawaharlal Nehru National Solar Mission

The Jawaharlal Nehru National Solar Mission (also known as the National Solar Mission ) is a major initiative of the Government of India and State Governments to promote ecologically sustainable growth while addressing Indias energy security challenges. It will also constitute a major contribution by India to the global effort to meet the challenges of climate change. Named forJawaharlal Nehru, the Mission is [2] one of the several initiatives that are part of National Action Plan on Climate Change. The program was [3] officially inaugurated by Prime Minister of India, Manmohan Singh.
[1]

Goals

Solar Resource Map of India

The objective of the National Solar Mission is to establish India as a global leader in solar energy, by creating the policy conditions for its diffusion across the country as quickly as possible. The immediate aim of the Mission is to focus on setting up an enabling environment for solar technology penetration in the country both at a centralized and decentralized level. The first phase (up to 2013) will focus on capturing of the low hanging options insolar thermal; on promoting off-grid systems to serve populations without access to commercial energy and modest capacity addition in grid-based systems. In the second phase, after taking into account the experience of the initial years, capacity will be aggressively ramped up to create conditions for up scaled and competitive solar energy penetration in the country.

Timeline
The Mission will adopt a 3-phase approach, spanning the remaining period of the 11th Plan and first year of the 12th Plan (up to 2012-13) as Phase 1, the remaining 4 years of the 12th Plan (201317) as Phase 2 and the 13th Plan (201722) as Phase 3. At the end of each plan, and mid-term during the 12th and 13th Plans, there will be an evaluation of progress, review of capacity and targets for subsequent phases, based on emerging cost and technology trends, both domestic and global. The aim would be to protect Government from subsidy exposure in case expected cost reduction does not materialize or is more rapid than expected.

Phase 1
The first phase of this mission aims to commission 1000MW of grid-connected solar power projects by 2013. The implementation of this phase is in hands of a subsidiary of National Thermal Power Corporation, the largest power producer in India. The subsidiary, NTPC Vidyut Vyapar Nigam Ltd [4] (NVVN), laid out guidelines for selection of developers for commissioning grid connected solar power projects in India. While NVVN is the public face of this phase, several other departments and ministries will play a significant role in formulating guidelines. NVVN will sign power purchase agreements with the developers. Since NVVN is not a utility, it will sell purchased power to different state utilities via separate agreements.

Technologies
For Phase 1 projects, NVVN started with a proposal for 50:50 allocation towards solar PV and solar thermal. The latter is quite ambitious given India has no operational solar thermal projects and less than 10MW of solar PV projects. While growing at a rapid pace lately, solar thermal technologies are still evolving globally. The first batch of projects allotted for Phase 1 included 150MW of Solar PV and 500MW of Solar Thermal. NVVN issued Request for Selection document outlining criteria for selection of projects under the Phase 1A growing solar PV industry is India is hoping to take off by supplying equipment to power project developers. Well known equipment manufacturers started increasing their presence in India and may give competition to local Indian manufacturers. Due to generally high temperatures in

India, crystalline silicon-based products are not the most ideal ones. Thin film technologies likeamorphous silicon, CIGS and CdTe could be more suitable for higher temperature situations. Solar thermal technology providers barely have a foothold in India. Few technology providers [5] like Abengoa have some Indian presence in anticipation of demand from this mission.

NVVN Solar PV allotment process for Phase 1

NVVN issued Request for Selection notice for allotment of capacity to Independent Power Producers (IPPs). 150MWs of Solar PV and 470MW of Solar Thermal were up for allotment under the first batch of Phase 1 projects. Project size per IPP was fixed at 5MW for Solar PV and 100MW for Solar Thermal projects. To avoid allocating entire capacity to a select few corporate, guidelines required no two projects to have the same parent company or common shareholders. In case of over subscription, a reverse bidding process was to be used to select the final IPPs based on lowest tariff they offer. Several hundred IPPs responded to this RfS. The approach for reverse bidding and methodology to calculate the discount to be offered was presented by Shri Shakti Alternative Energy Ltd through a webinar on 19 October 2010 on the eve of the reverse bidding by NVVN. The quantum of discount would depend on project site location (i.e solar radiation), technology used, simulated energy generation, capital cost and interest cost. Multivariate analysis was carried out using key variables like capital cost, interest and the capacity utilization factor (i.e CUF which is actual generation of the plant and depends on the location (radiation) and technology used)to calculate the levelized tariff for a target equity IRR based on which the discount to be offered can be determined. [7] The final 30 solar PV projects selected had bids between INR 10.95 to INR 12.75. The Solar Thermal projects selected had bids between INR 10.24 to INR 12.24. PPAs were signed with IPPs in early January.

Domestic content controversy

Guidelines for the solar mission mandated cells and modules for solar PV projects based on crystalline silicon to be manufactured in India. That accounts to over 60% of total system costs. For solar thermal, guidelines mandated 30% project to have domestic content. A rigorous controversy emerged between power project developers and solar PV equipment manufacturers. The former camp prefers to source modules by accessing highly competitive global market to attain flexible pricing, better quality, predictable [8] delivery and use of latest technologies. The latter camp prefers a controlled/planned environment to force developers to purchase modules from a small, albeit growing, group of module manufacturers in [9] India. Manufacturers want to avoid competition with global players and are lobbying the government to incentivise growth of local industry. Market responded to domestic content requirement by choosing to procure thin film modules from well established international players. A significant number of announced project completions are using modules from outside India.

Solar power in India

National Solar Mission in India

India is densely populated and has high solar insolation, an ideal combination for using solar power in India. India is already a leader in wind power generation. In the solar energy sector, some large projects 2 have been proposed, and a 35,000 km area of the Thar Desert has been set aside for solar power projects, sufficient to generate 700 GW to 2,100 GW. [1] In July 2009, India unveiled a US$19 billion plan to produce 20 GW of solar power by 2020. Under the plan, the use of solar-powered equipment and applications would be made compulsory in all government [2] buildings, as well as hospitals and hotels. On 18 November 2009, it was reported that India was ready to launch its National Solar Mission under the National Action Plan on Climate Change, with plans to [3] generate 1,000 MW of power by 2013. According to a 2011 report by GTM Research and Bridge, India is facing a perfect storm of factors that will drive solar photovoltaic (PV) adoption at a "furious pace over the next five years and beyond". The falling prices of PV panels, mostly from China but also from the U.S., has coincided with the growing cost of grid power in India. Government support and ample solar resources have also helped to increase solar adoption, but perhaps the biggest factor has been need. India, "as a growing economy with a surging middle class, is now facing a severe electricity deficit that often runs between 10 and 13 percent of daily [4] need".

Current status

Solar Resource Map of India

With about 300 clear, sunny days in a year, India's theoretical solar power reception, on only its land [5][6] area, is about 5000 Petawatt-hours per year (PWh/yr) (i.e. 5000 trillion kWh/yr or about 600 TW). The 2 daily average solar energy incident over India varies from 4 to 7 kWh/m with about 15002000 sunshine hours per year (depending upon location), which is far more than current total energy consumption. For example, assuming the efficiency of PV modules were as low as 10%, this would still be a thousand times [5][7] greater than the domestic electricity demand projected for 2015.

Installed capacity
The amount of solar energy produced in India in 2007 was less than 1% of the total energy [8] [9] demand. The grid-interactive solar power as of December 2010 was merely 10 MW. Government[8] funded solar energy in India only accounted for approximately 6.4 MW-yr of power as of 2005. However, India is ranked number one in terms of solar energy production per watt installed, with an insolation of [10] 1,700 to 1,900 kilowatt hours per kilowatt peak (kWh/KWp). 25.1 MW was added in 2010 and 468.3

MW in 2011. By May 2012 the installed grid connected photovoltaics had increased to over 979 MW, [12] and India expects to install an additional 10,000 MW by 2017, and a total of 20,000 MW by 2022.

[11]

India's largest photovoltaic (PV) power plants Name of Plant Charanka Solar Park - Charanka village, Patan District, Gujarat[14] Mithapur Solar Power Plant Mithapur, Gujarat (Tata Power)[15] Waa Solar Power Plant - Surendranagar, Gujarat (Madhav Power)[16] Dhirubhai Ambani Solar Park[17] Bitta Solar Power Plant - Bitta, Kutch District, Gujarat (Adani Power)[18] Mahindra & Mahindra Solar Plant, Jodhpur, Rajasthan[19] Rasna Marketing Services LLP, Ahmedabad, under the Gujarat Solar Policy Phase II[20] Sivaganga Photovoltaic Plant[21] Kolar Photovoltaic Plant[22] Itnal Photovoltaic Plant, Belgaum
[23]

DC Peak Power (MW) 214 25 10 40 40 5 1 5 3 3 2 4.1 4 2 1

[30]

GWh /year[13]

Capacity factor

Notes

Commissioned April 2012 Commissioned 25 January 2012 Commissioned December 2011 Commissioned in April 2012 Commissioned January 2012 Completed in January 2012 Completed in December 2011 Completed December 2010 Completed May 2010 Completed April 2010 December 2009 Completed December 2011 Commissioned October 2011 August 2009 2010 April 2010 21 January 2011 Commissioned April 2011 Commissioned June 2011, 63 acres, using 36,000 Suntech Power panels.[34] Commissioned October 2011 India's First plant Commissioned under JNNSM scheme 10 June 2011 Commissioned July 2011

Azure Power - Ahwan Photovoltaic Plant[24][25] Chesdin Power - Biomass and Solar Photovoltaic Plants[26] Citra and Sepset Power Plants - Solar Photovoltaic Plants[27] Jamuria Photovoltaic Plant[28] NDPC Photovoltaic Plant
[29]

Thyagaraj stadium Plant-Delhi Gandhinagar Solar Plant[31]

1 1
[32]

Tata Power - Mulshi, Maharashtra

3 10 30

Azure Power - Sabarkantha, Gujarat (Khadoda village)[33] Moser Baer - Patan, Gujarat[35] (Precious and Solitaire) B&G Solar Pvt Ltd Mayiladuthurai, Tamil Nadu[36] REHPL - Sadeipali, (Bolangir) Orissa[37]

1 1

India's largest photovoltaic (PV) power plants Name of Plant DC Peak Power (MW) 1 1 1 3 0.8 10 2 GWh /year[13] Capacity factor Notes Commissioned August 2011 Commissioned 1 August 2011 Commissioned March 2012 Commissioned 26 September 2011 Commissioned 15 January 2012 Commissioned November 2011 Commissioned January 2012

Tata Power - Patapur, Orissa[38] Tata Power - Osmanabad, Maharastra[39] Amruth Solar Power Plant Kadiri, Andhra Pradesh IIT Bombay - Gwal Pahari, Haryana[40] Chandraleela Power Energy - Narnaul, Haryana (EPC by Aryav Green Energy Solutions Pvt. Ltd.)[41][42] Green Infra Solar Energy Limited Rajkot, Gujarat[25][43] TAL Solar Power Plant Barabanki, UP (Technical Associates Ltd.)[44] State Chhattisgarh Delhi Gujarat Haryana Jharkhand Karnataka Maharashtra Orissa Punjab Rajasthan Tamil Nadu Uttar Pradesh Uttarakhand West Bengal Total MWp 4.0 2.5 654.8 7.8 4.0 9.0 20.0 13.0 9.0 197.5 15.0 12.0 5.0 2.0 979.4
[12]

% 2.2 0.4 0.3 66.9 0.8 0.4 0.9 0.2 2.0 1.3 0.9 20.2 1.5 1.2 0.5 0.2 100

Andhra Pradesh 21.8

Madhya Pradesh 2.0

Solar power in Gujarat

Gujarat has been a leader in solar power generation and contributes 2/3rd of the 900 MW of photovoltaics in the country. The State has commissioned Asias biggest solar park at Charanka village. The park is already generating 214 MW solar power out of its total planned capacity of 500 MW. The park has been functioning on a multi-developers and multi-beneficiaries paradigm and has been awarded for being the most innovative and environment-friendly project by the CII. With a view to make Gandhinagar a solar city, the State government has launched a roof-top solar power generation scheme. Under this scheme, the State plans to generate five megawatt of solar power by

putting solar panels on about 50 state government buildings and on 500 private buildings. The State has also a plan to emulate this project in Rajkot, Surat, Bhavnagar andVadodara in 2012-13. The State plans to generate solar power by putting solar panels on the Narmada canal branches. As a part of this scheme, the State has already commissioned a one megawatt solar plant on a branch of the Narmada Canal near Chandrasan area of Anand taluka. This also helps by stopping 90,000 liter water/year of the Narmada river from evaporating.

Solar power in Rajasthan

Next to Gujarat, Rajasthan is India's sunniest state, and many solar projects have been proposed. The 40 [17] MW photovoltaic Dhirubhai Ambani Solar Park was completed in April 2012. A 250 MW compact linear [45] fresnel reflector (CLFR) plant is under construction, consisting of two 125 MW sections.

Future applications
Rural electrification
Lack of electricity infrastructure is one of the main hurdles in the development of rural India. India's grid system is considerably under-developed, with major sections of its populace still surviving off-grid. As of 2004 there are about 80,000 unelectrified villages in the country. Of these villages, 18,000 could not be electrified through extension of the conventional grid. A target for electrifying 5,000 such villages was set for the Tenth National Five Year Plan (20022007). As of 2004, more than 2,700 villages and hamlets [5] had been electrified, mainly using solar photovoltaic systems. Developments in cheap solar technology are considered as a potential alternative that allows an electricity infrastructure consisting of a network of [8] local-grid clusters with distributed electricity generation. It could allow bypassing (or at least relieving) the need to install expensive, lossy, long-distance, centralised power delivery systems and yet bring cheap electricity to the masses. Projects currently planned include 3000 villages of Orissa, which will be lighted with solar power by [46][47][48][49] 2014.

Agricultural support
Solar PV water pumping systems are used for irrigation and drinking water. The majority of the pumps are fitted with a 2003,000 watt motor that are powered with 1,800 Wp PV array which can deliver about 140,000 liters of water per day from a total head of 10 meters. By 30 September, 2006, a total of 7,068 [50] solar PV water pumping systems had been installed.

Solar water heaters

Bangalore has the largest deployment of rooftop solar water heaters in India. These heaters generate an [51] energy equivalent of 200 MW every day . Bangalore is also the first city in the country to put in place an incentive mechanism by providing a rebate [52] of 50 on monthly electricity bills for residents using roof-top thermal systems. These systems are now mandatory for all new structures. Pune, another city in the western part of India, has also recently made installation of solar water heaters [53] in new buildings mandatory.

Challenges and opportunities

Land is a scarce resource in India and per capita land availability is low. Dedication of land area for exclusive installation of solar arrays might have to compete with other necessities that require land. The 2 amount of land required for utility-scale solar power plantscurrently approximately 1 km for every 20 [8] 60 megawatts (MW) generated could pose a strain on India's available land resource. The architecture more suitable for most of India would be a highly distributed set of individual rooftop power generation [8] systems, all connected via a local grid. However, erecting such an infrastructure, which does not enjoy the economies of scale possible in mass, utility-scale, solar panel deployment, needs the market price of solar technology deployment to substantially decline, so that it attracts the individual and average family size household consumer. That might be possible in the future, because PV is projected to continue its [5] current cost reductions for the next decades and be able to compete with fossil fuel. [5][54][55] Some noted think-tanks recommend that India should adopt a policy of developing solar power as [56] a dominant component of the renewable energy mix, since being a densely populated region in [57][58] the sunny tropical belt, the subcontinent has the ideal combination of both high solar [57] [5][59][60][61][62] insolation and therefore a big potential consumer base density. In one of the analyzed [55] scenarios, India can make renewable resources such as solar the backbone of its economy by 2050, reining in its long-term carbon emissions without compromising its economic growth potential. According to a 2011 report by GTM Research and Bridge, India is facing a perfect storm of factors that will drive solar photovoltaic (PV) adoption at a "furious pace over the next five years and beyond". The falling prices of PV panels, mostly from China but also from the U.S., has coincided with the growing cost of grid power in India. Government support and ample solar resources have also helped to increase solar adoption, but perhaps the biggest factor has been need. India, "as a growing economy with a surging middle class, is now facing a severe electricity deficit that often runs between 10 and 13 percent of daily need".

Government support
51 Solar Radiation Resource Assessment stations have been installed across India by the Ministry of New and Renewable Energy(MNRE) to monitor the availability of solar energy. Data is collected and [63] reported to the Centre for Wind Energy Technology (C-WET), in order to create a Solar Atlas. The government of India is promoting the use of solar energy through various strategies. In the latest budget for 2010/11, the government has announced an allocation of 10 billion (US$181 million) towards the Jawaharlal Nehru National Solar Mission and the establishment of a clean energy fund. It is an increase of 3.8 billion (US$68.8 million) from the previous budget. This new budget has also encouraged private solar companies by reducing customs duty on solar panels by 5% and exempting excise duty on solar photovoltaic panels. This is expected to reduce the cost of a roof-top solar panel installation by 1520%. The budget also proposed a coal tax of US$1 per metric ton on domestic and [64] imported coal used for power generation. Additionally, the government has initiated a Renewable [65] Energy Certificate (REC) scheme, which is designed to drive investment in low-carbon energy projects. The Ministry of New and Renewable Energy provides 70 percent subsidy on the installation cost of a solar photovoltaic power plant in North-East states and 30 percentage subsidy on other regions. The detailed outlay of the National Solar Mission highlights various targets set by the government to increase solar energy in the country's energy portfolio. The Mysore City Corporation has decided to set up a mega Solar power plant in Mysore with 50% concession from the Government of India. The Maharashtra State Power Generation Company (Mahagenco) has made plans for setting up more power plants in the state to take up total generation up to 200 MW

Dhirubhai ambani solar park

charanka

Jawaharlal Nehru National Solar Mission:

Taking t he climat e changi ng f actors i nto c onsi der ati on, Government of India had f ormul at ed a policy frame work f or enhancing the s har e of r enewabl e energy in the tot al energy mi x of t he countr y. The Nati onal Sol ar Mission is a major i niti ative of the Gover nment of I ndia and St ate Governments to promot e ecol ogic ally sustainabl e growth while addres sing India's ener gy sec urity chal l enge. It will also constitut e a major contribution by I ndia t o the global effort t o meet t he c hall enges of climate c hange. Some important featur es of the polic y ar e as f ollows;

Importance and Relevance of Solar Energy for India

1. Cost: Solar is currentl y high on abs olut e costs compar ed t o other sourc es of power such as coal. The objective of t he Sol ar Mission is to create c onditi ons, thr ough rapi d scale - up of capacity and technol ogic al innovati on t o drive down costs towar ds grid parit y. The Missi on anticipates achi evi ng gri d parit y by 2022 and parity with coal - based thermal power by 2030, but r ecogni zes that t his cost trajector y will depend upon the scal e of global deployment and t echnol ogy devel opment and transfer. The cost pr ojecti ons var y - from 22% f or ever y doubli ng of capacit y to a reducti on of onl y 60% with global depl oyment i ncreasing 16 times the curr ent l evel. The Mission r ecogni zes that t her e ar e a number of off-gri d solar applicati ons particul arly f or meeti ng rural ener gy needs, which a re already cost-effective and pr ovi des for their rapi d expansi on. 2. Scal abilit y: India is endowed with vast solar energy potenti al. About 5, 000 tril lion kW h per year energy is inci dent over Indi a's land area wit h most par ts receivi ng 4 -7 kW h per sq. m per day. Henc e bot h tec hnol ogy rout es for conversion of solar r adi ati on int o heat and el ectricity, namel y, sol ar thermal and sol ar photovolt aics, can eff ectively be harnessed providi ng huge scal abilit y f or solar i n Indi a. Solar also provides the abilit y to g enerat e power on a distri but ed basis and enabl es rapid c apacity additi on with short lead times. Off - grid decentrali zed and low -t emper atur e applications wi ll be advant ageous from a r ural electrificati on perspective and meeti ng ot her energy needs for power a nd heating and cooli ng i n bot h rur al and ur ban areas. The constrai nt on scal abilit y will be the availability of space, since in all current applicat ions, sol ar power is spac e intensive. In additi on, without effecti ve stor age, solar power is char acteri zed b y a hi gh degr ee of vari ability. I n India, t his woul d be particul arly true i n the monsoon s eas on. 3. Environment al Impact: Sol ar ener gy is envir onmentall y friendly as it has zer o emissions while generati ng el ectricity or heat. 4. Securit y of Source: Fr om an ener gy securit y perspective, solar is the most secure of all sources, since it is abundantly avail abl e. Theor eticall y, a small fraction of the tot al i ncident solar ener gy (if capt ured eff ectively) can meet t he entire country's power requirements. It is a lso clear that gi ven t he large pr oporti on of poor and energy un -ser ved popul ation i n the countr y, every effort needs to be made to expl oit t he r elati vel y abundant sourc es of energy availabl e to t he country. W hile, today, domestic coal based power generati o n is the cheapest el ectricity sourc e, fut ure scenari os suggest that this coul d well change. Alr eady, faced wit h crippli ng el ectricity shortages, price of el ectricity traded int er nall y, touc hed Rs 7 per unit for base l oads and around Rs 8.50 per unit during peak periods. The sit uati on will also change, as the country moves towar ds imported coal to meet its ener gy demand. The pric e of power will have t o factor i n the avail abilit y of c oal i n i nter nati onal markets and t he c ost of devel opi ng import infrastruct ur e. It is also evi dent t hat as the cost of environmental degr adation is factor ed i nto t he mini ng of coal, as it must, t he price of this raw mat eri al will i ncreas e. In t he situation of ener gy shortages, the c ountry is i ncreasing the us e of di esel - bas ed electricity, which is bot h expensive - costs as hi gh as Rs 15 per unit - and 8.

Objectives and Targets:

The objective of t he Nati onal Solar Mission is to establish Indi a as a gl obal l eader in solar energy, by creating t he polic y conditi ons for its diffusi on ac ross the c ountry as quickly as possible. The Mission will adopt a 3-phase approach, spanni ng t he remaini ng period of the 11th Pl an and first year of the 12t h Plan (up to 2012-13) as Phase 1, the remai ning 4 years of the 12t h Pl an (2013 - 17) as Phas e 2 and t he 13t h Pl an (2017-22) as Phase 3. At the end of each plan, and mi d -term during the 12th and 13th Plans, ther e will be an eval uation of pr ogr ess, revi ew of capacity and t argets for subsequent phases, based on emergi ng c ost and t echnol ogy trends, bot h domes tic and global. The aim would be t o pr otect Gover nment fr om subsidy exposure i n cas e expected cost reduction does not materi alize or is more rapi d than expected. The i mmediat e aim of t he Mission is to f ocus on setti ng up an enabling environment for sol ar t echnol ogy penetrati on i n the c ountry both at a c entr alized and decentrali zed level. The first phase ( up t o 2013) will f ocus on capt uring of the low hangi ng opti ons i n solar t her mal; on promoti ng off -gri d systems to serve popul ati ons wit hout access to c omme rcial energy and modest capacity addition i n gri d-based systems. In the sec ond phase, after t aking int o ac count the experi enc e of the initi al years, capacity will be aggr essivel y ramped up to create c onditions for up scaled and competitive sol ar energy pen etrati on in t he c ountry. To achieve thi s, the missi on tar get s are:

To create an e nabl ing p olicy fram ework for the deploym ent of 20,000 MW of solar power by 2022. To ram p up ca pacity of g rid -connected solar power generation to 1000 MW wit hin t hree years - by 2013; an a dditio nal 300 0 MW by 2017 through the m andatory use of the renewabl e purchase obligati on b y utilities b acked with a preferential tariff. This capacity can be m ore than doubled reachin g 10,0 00 MW installed po wer by 2017 or m ore, based on the e nhanced and enabled intern ationa l finance and te chnology transfer. The am bitious target for 2022 of 20,000 MW or m ore, wi ll b e dep ende nt o n th e ' learning' of the first t wo phases, which if successful, could lead to conditions of grid -com petitive solar powe r. The transition could be appropri ately up scaled, based on avail abilit y of internation al finance and technol ogy. To create fa vo rabl e conditi ons for solar m anufacturing capabilit y, particularl y solar therm al for indige nous p rod uction and m arket leadership . To prom ote pro gram s for off grid applications, reaching 1000 MW by 2017 and 2000 MW by 2022. To achieve 15 m illion sq. m eters solar therm al collector area by 2017 and 20 m illion by 2022. To deplo y 20 m illion solar li ghting system s for rural areas by 2022.