JNNSM

JAWAHARLAL NEHRU NATIONAL SOLAR MISSION

Jawaharlal Nehru National Solar Mission is one of the eight National Missions which comprise India's National Action Plan on Climate Change. It has the twin objectives of contributing to India's long-term energy security and its ecologically sustainable growth. It is a major initiative of the Government of India and State Governments to promote ecologically sustainable growth while addressing India’s energy security challenge. It will also constitute a major contribution by India to the global effort to meet the challenges of climate change.

Mission Objective

The objective of the Jawaharlal Nehru National Solar Mission is to establish India as a global leader in solar energy, by creating the policy conditions for its large scale 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 in solar; 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.

Mission Target

  • To create an enabling policy framework for the deployment of 20,000 MW of solar power by 2022.
  • To ramp up capacity of grid-connected solar power generation to 1000 MW within three years – by 2013; an additional 3000 MW by 2017 through the mandatory use of the renewable purchase obligation by utilities backed with a preferential tariff. This capacity can be more than doubled – reaching 10,000MW installed power by 2017 or more, based on the enhanced and enabled international finance and technology transfer. The ambitious target for 2022 of 20,000 MW or more, will be dependent on the ‘learning’ of the first two phases, which if successful, could lead to conditions of grid-competitive solar power. The transition could be appropriately up scaled, based on availability of international finance and technology.
  • To create favourable conditions for solar manufacturing capability, particularly solar thermal for indigenous production and market leadership.
  • To promote programmes for off grid applications, reaching 1000 MW by 2017 and 2000 MW by 2022.
  • To achieve 15 million sq. meters solar thermal collector area by 2017 and 20 million by 2022. To deploy 20 million solar lighting systems for rural areas by 2022.

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 I, the remaining 4 years of the 12th Plan (2013–17) as Phase II and the 13th Plan (2017–22) as Phase III. 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.

The deployment across the application segments is envisaged as follows:

APPLICATION SEGMENT

PHASE I

(2010-13)

PHASE II

(2013-17)

PHASE III

(2017-22)

Grid Connected

1,000 MW

4,000-10,000 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 Lightning System

-

-

20 million

Solar RPO

.25%

-

3%

Three Phase Scheme

Phase I

It focuses on setting up an environment to enable solar technology penetration at a centralized and decentralized level. Phase I’s guidelines explicitly aim to facilitate quick implementation of the NSM, while ensuring serious participation by—and enhanced confidence in—the selected project developers. Promoting manufacturing in India’s solar sector is another Phase I goal.

Phase II

It contemplates an aggressive capacity ramp-up to facilitate competitive solar energy penetration in India. The guidelines envision scaling up through enforcement of a mandatory renewable purchase obligation (RPO) for utilities, backed by a preferential tariff.

Phase III

The final phase, aims to meet or exceed the end target of 20,000 MW of grid connected solar by 2022. Rapid scaling-up of installation during Phase 3 is anticipated through the availability of international finance and technology. The NSM seeks to achieve grid parity by 2022 and parity with coal-based thermal power by 2030.

The Mission Document anticipates that utility-scale solar power in India will be driven by the RPOs mandated for power utilities, with a specific solar energy component. Generally, the NSM aims to craft a policy and regulatory environment that provides a predictable incentive structure, enabling rapid and significant capital investment in solar energy applications while encouraging technical innovation and reducing costs. The Mission hopes to accomplish all of these ambitious objectives through its guidelines and incentives.

The NSM also aims to transform India into a solar energy hub, making it a global leader in low-cost, high-quality solar manufacturing across the value chain. The Mission Document envisions creating favourable solar manufacturing conditions, particularly for solar thermal for indigenous production and market leadership. The guidelines target a 4 GW to 5 GW equivalents of installed production capacity by 2020, including dedicated manufacturing capacities for polysilicon material to make solar cells amounting to about 2 GW of generation capacity annually. The key to accomplishing this goal, according to the Mission Document, is promoting PV manufacturing plants (including facilities for the domestic manufacture of silicon material), thereby reducing dependence on imports of raw materials.

The Mission also highlights a major R&D initiative to promote technology development and cost reduction. The top priorities of this program include improving efficiencies in existing materials and applications, reducing costs of solar systems, and establishing new applications that improve integration. Rather than locking into specific solar technologies, the Mission states that it is neutral, allowing market conditions to determine technology.

Development of Phase I

Since its launch in 2009, JNNSM has been driving solar installations in the country. A combined capacity of 440MW of the grid connected solar PV projects has been commissioned under batch-I (130 MW) and batch-II (310 MW). In addition, 89 MW of solar roof top and 50.5 MW of projects under migration scheme have been commissioned during phase-I.

Phase I — JNNSM allocations and commissioned capacity

 

Capacity allocated as per PPA (MW)

Capacity actually commissioned (MW)

Grid solar PV projects under Phase I, Batch I

150

140

Solar PV projects under Phase I, Batch II

340

310

Roof Top PV and Small Solar power generation Programme (RPSSGP)

98.05

90.8

Grid Solar PV projects under migration Scheme

54

48

Grid Solar Thermal projects under migration Scheme

30

2.50

Total

672.05

591.3

Source: MNRE

The Phase I, Batch I of the programme registered participation from 333 project developers. The highly competitive bidding, with proposed projects adding up to 1815 MW against the government offering of 150 MW, saw winning quotes of as low as Rs. 10.95/kWh to Rs. 12.76/kWh for PV projects. The average tariff was Rs. 11.48/kWh, significantly lower than the bench mark of Rs. 17.91/kWh.

The Batch II of phase I saw more than 90% of the solar PV projects commissioned in the state of Rajasthan. Prominent industry players that commissioned projects include WELSPUN Solar AP Pvt. Ltd., Azure Solar Pvt. Ltd. and Mahindra Suryaprakash Pvt. Ltd. The bidding for Batch II again witnessed sharp decline, with quotes ranging from Rs. 7.49/kWh to Rs. 9.44/kWh. The average quoted tariff declined further to Rs. 8.77/kWh.

Commissioning Status of Solar PV Projects under Batch-II, Phase-I of JNNSM as on 31 July, 2013

Name of Projects

State

Capacity Allocated as per PPA (MW)

Capacity Actually Commissioned (MW)

Date of Commissioning/Remarks

Welspun Solar AP Pvt Ltd.

Raj.

15

15

22.01.2013

Welspun Solar AP Pvt Ltd.

Raj.

15

15

31.01.2013

Welspun Solar AP Pvt Ltd.

Raj.

20

20

19.02.2013

Mahindra Suryaparakash Pvt. Ltd.

Raj.

20

20

20.02.2013

Mahindra Suryaparakash Pvt. Ltd.

Raj.

10

10

20.02.2013

Solarfield Energy Two Pvt. Ltd.

Raj.

20

20

20.02.2013

Azure Solar Pvt. Ltd.

Raj.

15

15

12.02.2013

Azure Solar Pvt. Ltd.

Raj.

20

20

13.02.2013

FonrocheSaaras Energy Pvt. Ltd.

Raj.

15

15

21.01.2013

FonrocheRajhans Energy Pvt.

Raj.

5

5

23.12.2012

Green Infra Solar Projects Ltd.

Raj.

20

20

30.01.2013

Green Infra Solar Farms Projects

Raj.

5

5

24.12.2012

Gail (India) Ltd.

Raj.

5

5

18.02.2013

Sh. Saibaba Green Power Pvt.

Mah.

5

5

22.02.2013

SEI Solar Power Pvt. Ltd.

Raj.

20

20

11.02.2013

PokaranSolaire Energy Pvt. Ltd

Raj.

5

5

24.02.2013

SaiMathili Power Co. Pvt. Ltd.

Raj.

10

10

26.02.2013

NVR Infra. and Services Pvt. Ltd.

Raj.

10

10

25.02.2013

LEPL Projects Ltd.

Raj.

10

10

26.03.2013

Sunborne Energy Raj. Solar Pvt

Raj.

5

5

26.03.2013

Symphony Vyapar Pvt. Ltd.

Raj.

10

10

27.04.2013

Lexicon Vanijiya Pvt. Ltd.

Raj.

10

10

01.05.2013

Jackson Power Pvt. Ltd.

Raj.

10

10

26.04.2013

Jackson Power Pvt Ltd.

Raj.

10

10

26.04.2013

Saisudhir Energy Ltd.

A.P.

20

20

26.04.2013

Essel MP Energy Ltd.

Mah.

20

---

 

Enfield Infra. Ltd.

Raj.

10

---

 

Total Capacity

 

340 MW

310MW

 

Source: MNRE

Development of Phase II

Phase II of JNNSM has been initiated with the MNRE publishing Draft guidelines in December 2012. The draft policy outlines plans to allocate 800 MW of solar power projects through a bundling of power mechanism (as in Phase I) and 750 MW through a viability gap funding (VGF) mechanism. However, due to limited availability of unallocated power, the Ministry of Power (MoP) is not willing to make an allocation based on tariff bidding. As a result, MNRE decided to allocate only 750 MW of solar projects through VGF.

Under the VGF based process, all the selected projects will enter into a 25 years Power Purchase Agreement (PPA) with the SECI at the rate of Rs. 5.45 per kWh. The PPA tariff for projects availing the Accelerated Depreciation (AD) tax benefits will be Rs. 4.75/kWh. In addition to the PPA, the winning projects will also be given the “Viability Gap Funding”, which has been requested by the Project Developer at the time of bidding. The maximum VGF a bidder can request is 30% of the project cost or Rs.2.5 Crores/MW/project, whichever is the lower.

There will be two categories of projects – one with Domestic Content Requirement (DCR) and one with DCR. The total target of 750 MW of capacity has been equally divided between these two categories.

The capacity of each project should be at least 10 MW and at the most 50 MW. The project size should be in multiples of 10(10 MW, 20 MW, 30 MW, 40 MW and 50 MW). The maximum total capacity that will be allotted to one company will be 100 MW and the total projects that can be allocated to one company will be 5 even though they can bid for 200MW spread over 10 projects in the two categories(DCR and non-DCR).

State / UT Wise Status of Solar Projects Commissioned under JNNSM Phase I

State

NVVN Batch I (Capacity in MW)

NVVN Batch I Solar Thermal (Capacity in MW)

NVVN Batch II (Capacity in MW)

RPSSGP (Capacity in MW)

Migration (Capacity in MW)

Total

Haryana

0

0

0

7.8

0

7.8

Jharkhand

0

0

0

16

0

16

Karnataka

5

0

0

0

0

5

Madhya Pradesh

0

0

0

5.25

0

5.25

Maharashtra

5

2.5

40

5

11

63.5

Orissa

5

0

0

7

0

12

Punjab

0

0

0

6

2

8

Rajasthan

100

50

270

12

35

467

Tamil Nadu

5

0

0

6

0

11

Uttar Pradesh

5

0

0

7

0

12

Uttarakhand

0

0

0

5

0

5

Chhatisgarh

0

0

0

4

0

4

Total

140

52.5

330

90.8

48

661.3

Source: MNRE

 

Free Registration...!!!!

Are you a member of Power Sector..! The article you are trying to view is accessible to registered users of Power Sector community. If you are a registered user, please login using your account details, or create new account to become a registered user.

As a registered user you get the following benefits -

  • Access to Power Sector knowledgebase that is updated on daily basis
  • Access to daily news and articles related to power sector
  • Access to various forums and discussions
  • Daily newsletters letters delivered directly to your inbox
  • Special offers and discounts on various power sector conferences held across the country
  • One year limited free access to premium content such as tenders
  • Special discounts on market research reports

Grow your network through our extensive social networking community. Follow us on

To know about advertising options and other available promotional activities that Power Sector can help your company, please contact us.