dr.ahmar raza

JAWAHARLAL NEHRU

NATIONAL SOLAR MISSION –

PROGRAMME AND POLICY

DR AHMAR RAZA

SENIOR CONSULTANT

NATIONAL INSTITUTE OF SOLAR ENERGY

Solar Energy

Solar energy can be used through two main

routes:

SOLAR PHOTOVOLTAIC

For direct electricity generation

SOLAR THERMAL

For heating , cooking, drying and electricity generation

Daily solar radiation 4 - 7 kWh per sq. m.

250 - 300 sunny days in a year.

600,000 MW from 1% land area.

5000 trillion kWh solar radiation incident in a year.

Radiation data collected by India Meteorological Department.

123 Solar Radiation Resource Assessment Stations have been set up in the country by MNRE. NIWE has launched Indian Solar Radiation Atlas providing resource at any location.

Solar Resource Availability in India

March 2016

Solar Energy across states

Current status, Outlook and opportunities • MNRE8

India has potential for 748 GW(considering deployment on 3% of wastelands)

573 MW145

MW

1062 MW

386 MW

776 MW

1120 MW

1270 MW

12 MW93

MW

15 MW

405 MW

144 MW

10 MW

16 MW

67 MW

Solar:6,762 MW (Mar 2016)

528 MW

Solar Resource

41 MW

0.3 MW

13 MW

5MW

Solar Power Projects commissioned during 2015-16 is 3018.88 MW against target of 2000 MW

5

JNNSM Road MapApplication

segment

Target for

Phase I

(2010-13)

Cumulative

Target for

Phase 2

(2013-17)

Cumulativ

e Target

for Phase

3 (2017-

22)

Revised

Targets

for 2013-

17

Revised

Targets

for 2017-

22

Grid solar power

incl. roof top &

distributed small

grid connected

plants

1,000 MW

100 MW

4,000 MW 20,000

MW

12,000

MW

100,000

MW

Off-grid solar

applications

including solar

lights

200 MW

5 million

1,000 MW

10 million

2,000 MW

20 million

600 MW Not yet

fixed

Solar collectors 7 million

sq meters

15 million

sq meters

20 million

sq meters

15 million

sq metes

20 million

sq meters

March 2016

Solar Scale-up Plans- 100 GW Vision

9Current status, Outlook and opportunities • MNRE

1 5 10 16 23 31 406 12

2232

42

51.5

60

0

20

40

60

80

100

120

2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22

Cumulative Solar Targets (GW)

Large scale solar

Roof-top

Category 1. Rooftop ProjectsCategory 2. Large scale Projects

Inside Solar park Outside Solar Park20,000 MW 40,000 MW40,000 MW

7

Targets & Achievements

Application segment Achievement till

June, 2016

Grid solar power incl. roof top &

distributed small grid connected

plants

7805 MW

Off-grid solar applications 325.4 MW

Solar collectors 12 million sq meters

Policy and Regulatory Framework

• Tariff for purchase of Solar Power by Regulators

• Bundling solar with unallocated thermal power through Central Agency – NTPC Vidyut Vyapar Nigam (NVVN)

• Competitive Bidding to select utility scale power projects

• Generation Based Incentive for small grid solar power projects

• Solar specific RPO 0.25% in 1st phase increase to 3% by 2022. Solar RE Certificates.

• Refinancing to lower interest rates (5%) for off-grid applications, involvement of NABARD

• Capital Subsidies (30% to 90%)

• Grant support for R&D and technology demonstration

March 2016

Plummeting cost of power from solar


•Bidding tariffs for solar projects have been declining due to drop in capital costs and competitive bidding

• Lowest tariff quoted in Rajasthan: Rs. 4.34/KWh ($ cent 6.45) for 70 MW from Fortum

• Lowest tariff quoted in Andhra Pradesh: Rs. 4.63/KWh ($ cent 7.02) for 500 MW from SunEdison

Rs. 4.63/KWh ($ cent 7.02) for 350 MW from SoftBank

• Lowest tariff quoted in Haryana: Rs. 5/KWh ($ cent 7.4) for 140 MW from Acme

• Lowest tariff quoted in Madhya Pradesh: Rs. 5.05/KWh ($ cent 7.65) for 50 MW from Sky Power

12.16

8.79 8.36 8.738.34

8.05

6.45 6.87 6.866.75

6.94 6.72 7.16

5.36 5.73 5.62 5.654.63 5.08

5.754.63 5.12 5

4.35 4.78 5.045.87 5.35

4.79

0

2

4

6

8

10

12

14Tariffs evolved in FIT - Competitive bid process (INR/kWh)

Highest Bid (Rs./KWh) Lowest (Rs./KWh) Weighted Avg. Price (Rs./KWh)

March 2016

MNRE schemes to support solar deployment


4

2

3

1

5

6

7

Target 20 GW

Status 20 GW approved (33 parks)

Target 300 MW

Status 347 MW Sanctioned

Target 1,000 MW

Status 1,000 MW sanction

Target 4200 MW

Status 300 MW Commissioned,1127 MW Sanctioned, 2403 MW in Principle

Target 15,000 MW(3000+5000+7000)

Status 3000 MW tendered

Target 100 MW

Status 100 MWSanctioned

Target 2,000+5,000 MW

Status 4485 MW Tendered

March 2016

Rooftop: Target to achieve 40 GW grid tied

Status 300 MW Installed capacity

2403 MW Projects approved (in Principal[Potential for 124 GW exists]

Target 40 GW by 2022

Current support

Subsidy of 30% of capital cost for domestic and private Institutional, Incentive scheme for Government.

• 17 States have rooftop provisions in their Solar Policy and 26 States/UTs have notified regulations

• Rooftop included under Integrated Power Development Scheme and guidelines issued

• A grant of INR 5000 Cr. has been approved to support 4200 MW rooftop projects

• $ 2 billion line of credit through KFW, WB and ADB for rooftop projects

Promotional measures:

Approved 34 Solar Parks in 21 States

Aggregate capacity approved: 20,000 MW

CFA released so far: Rs. 540 Crore

General Status of Solar Park

March 2016

20 GW Solar parks

Current status, Outlook and opportunities • MNRE

34 Parks (21 states) with capacity 20,000 MW approved

700 MWGujarat

750 MW+ 500 MW+500 MW+500 MW +500 MW

MP

500 MW

Chattisgarh

500 MWTamil Nadu

200 MWKerala

1500 MW + 1000MW + 1000 MW + 500 MW

AP: Anantapur, Kurnool, Kudappa

2000 MW

Karnataka

600 MW

UP

20 MW

Meghalaya

50 MWUttarakhand

680 + 1000 + 500 + 750 + 321 MW

Rajasthan

100 MW

Arunachal

60 MW

Nagaland

69 MW

Assam

1000 MWHimachal Pradesh

500 MWTelangana

500 MWHaryana

100 MWJ&K

500 MW+500 MW +500 MW

Maharashtra

1000 MWOrissa

500 MW

WB

March 201610

S. No.

State Under 2000 MW VGF Scheme Under 5000 MW VGF Scheme

Allocation (Open)

Allocation(DCR)

Total Allotted

Allocation (Open)

Allocation(DCR)

Total Allotted

1 Andhra Pradesh 400 100 500 500+100 150 750

2 Chhattisgarh 100 - 100 - - -

3 Gujarat - - - 225 25 250

4 Himachal Pradesh 50 - 50 - - -

5 Karnataka 950 50 1,000 200 - 200

6 Maharashtra 450 50 500 450 50 500

7 Odisha - - - 300 - 300

8 Puducherry 35 - 35 - - -

9 Uttar Pradesh 125+265+160

50 600 - - -

2,535 250 2,785 1,775 225 2,000

Power will be purchased by SECI @ Rs. 4.43/kWh and sold to buying utilities @Rs.4.50/kWh, with a trading margin of 7 paisa/kWh.

•Scheme Target: 50 MW canal-top SPV & 50 MW canal-bank SPV•Central Financial Assistance:Canal-top SPV: Lower of Rs.3 crore/MW or 30% of project costCanal-bank SPV: Lower of Rs.1.5 crore/MW or 30% of project

cost•Canal-top SPV: 50 MW capacity projects allotted to 7 States - Gujarat,

Karnataka, Kerala, Punjab, Uttarakhand & Uttar Pradesh•Canal-bank SPV: 50 MW capacity projects allotted to 5 States – Andhra

Pradesh, Gujarat, Kerala, Uttarakhand & West Bengal•Implementation Status:Majority of these projects will be commissioned by Sep’2016

Canal Banks and Canal Tops scheme

200 MW already Commissioned

About 3,000 MW - under various stages of tendering /

implementation

NTPC is also bundling solar power from its own plants with thermal

power from NTPC stations which have completed 25 years PPA (eg.

Singrauli)

3,000 MW- Bundling Scheme

Tenders issued: 3,000 MW

Reverse auction completed: 2,520 MW

PPAs signed: 2,120 MW

Lowest tariff discovered: Rs. 4.34/kWh

5,000 MW- process initiated by MNRE

7,000 MW- to be initiated after successful award of 5,000 MW

NTPC’s own Commitment : 10,000 MW

MNRE projects through NTPC : 15,000 MW

RPO - Policy Provisions

• Section 86 (1) (e) of Electricity Act, 2003 mandates SERCsto fix RPOs.

• Tariff Policy amended in January, 2016 provides forLong-term RPO trajectory to be prescribed by MoP

Out of total RPO, Solar RPO to reach 8% of total consumptionof energy, excluding Hydro Power, by March, 2022

Discom to Procure 100% power from Waste to Energy plant

Uniform RPO across the States

• All the SERCs have notified the Regulations specifying thesolar and non-solar RPO for the obligated entities in theirState.

• NAPCC suggested renewable energy share for 2009-10 tobe set 5% and increased 1% every year.

RPO Declaration by SERCs and

Compliance– Solar RPO ranges from as low as 0.25% to 2.5% for 2016-17 –

some of the SERCs yet to declared Solar RPO

– Only a few declared RPO trajectory up to 2022.

As per NAPCC recommendations the total RPO for 2016-17 to be

12%

RPO Compliance:

Above 100% RPO compliance by – Andhra Pradesh,

Gujarat, Karnataka, Madhya Pradesh, Odisha, Punjab,

Rajasthan, Tamil Nadu, Telangana, Uttarakhand and A&N

Island.

100% to 60% compliance by – Chhattisgarh,

Maharashtra, Tripura, Chandigarh and Lakshdweep.

Less than 60% compliance by – rest of 17 States

including Delhi and 3 UTs

• Solar Lanterns

• Home & Community Lighting

• Village Street Lighting

• Water Pumping Systems

• Mini/Micro Grid

• Power Plants/ Home

Systems

• Charging Stations

• Vaccine Refrigeration

• Cold Storages

• Any Other Application

Off-Grid / Decentralized Solar PV

Programme

CFA Pattern

• 30% capital subsidy to end-users

• 90% for special category States for defined category.

• 40% through banks coupled with Loan

Implementing Agencies

• State Nodal Agencies

• NABARD and other banks

• Channel Partners

• Other Government Institutions

Category of Systems with capacity Limitation

Sno. Category CapacitySolar Lighting System1. Solar lighting System- street lights, home lights,

lantern (LED)Up to 40 Wp

2. Solar Power Packs/Plants1 Solar power packs/ SPV Power Plants (with battery

bank @ 7.2VAh/Wp)Up to 300 Wp>300 Wp to 10kWp>10 kWp to 100 kWp

2 SPV Power Plants (Without Battery) Up to 500 kWp

3Street Lights through SPV power Plant Up to 100 kWp

Solar Pumps1 DC Pumps Up to 2 HP

>2HP to 5HP2 AC Pumps Up to 2 HP

>2HP to 5HP>5 HP to 10 HP*

Mini / Micro Grids1. Micro Grid Up to 10 kWp2. Mini Grid >10 to 500 kWp

Cumulative SPV Lighting Systems/Minigrids Installed (As

on 31.03.2016)

System NumberLanterns 10,01,268Home Lights 12,85,841Street Lights 3,96,184Mini Grids 850Solar Pumps 51,727

SPV Power Plant at Gulmarg Development Auth. Guest house, J&K

Capital Subsidy Scheme for Solar Lighting

systems and small power packsYear of launch 2010-11

Targeted area Rural & Semi Urban

USER Category Individual households

Mode of implementation Financing of systems through Regional Rural Bank/scheduled

Commercial banks/Cooperative Banks

Central Financial

Assistance and Bank loan

MNRE Support : 40% (Back ended)

Bank Loan: up to 60%

User share : Remaining share if loan is less than 60%

Advance parking of funds with banks facility

Achievement 3,00,000 System financed since inception of scheme

Target 1,00,000 systems

Budget 2016-17 Rs 100 Crs outlay

Rs 23 Cr already released to NABARD as Advance

Issues Only 30-35 banks are participation in the scheme

Poor progress in NE States

1,83,000 Solar Pumps Sanctioned

More than 77,000 installed in the country.

1,10,000 pumps sanctioned to States during last 2 year (Irrigation)

30,000 was sanctioned to NABARD during 2014-15

15,330 nos. sanctioned to States (Drinking Water).

Solar Pumping Programme implemented

through NABARDYear of launch 2014-15

Target Area Rural, Semi-urban

User Category Individuals Farmers, Individuals Group, NGOs, FPO, SHGs, JLGs

Mode of

implementation

Financing of Solar Pumping systems through Regional Rural

Bank/scheduled Commercial banks/Cooperative banks

Central Financial

Assistance and Bank

loan

MNRE Support : 40% (Back ended)

Bank Loan: 40% ( 3 year minimum lock in period)

User share : 20%

Advance parking of funds with bank facility

Achievement 1000 System financed since inception of scheme

Target for 2016-17 30,000 Solar pumps by December 2016

Budget 2016-17 Rs 130 Crs released during 2014-15 still not utilised

Issues Collateral for Loans

Non consideration of System as Asset

Collateral on full amount (Subsidy +Loan)

24 banks participating only

No progress in Potential States (as per ground water table) like Bihar,

West bengal Jharkhand, Odisha, Assam

• Specification for

– Modules

– Invertors

– Batteries

– Balance of Systems

– To maintain the standard , Ministry empanel component manufacturer from time to time

Standards for the programme

REQUIREMENT AND SOURCES OF FUNDS

TO ACHIEVE 100 GW BY 2022

Fund requirements Rs. in crores

Solar Power Projects 5,00,000

Transmission 70,000

Total 5,70,000

Source of Funds:

International and Domestic Banks & FIs

Multilateral and Bilateral Organisations

Sovereign, Insurance and Pension Funds

Capital Market

Indian Renewable Energy Fund by IREDA

Budgetary Support from GOI

March 2016

Manufacturing

17

2,756

1,386 1,305 297

-

5,000

Solar Modules Solar Cells

Solar Cell and Module manufacturing capacity (MW)

Installed Capacity (MW) Operational Capacity (MW)

• About 60 Solar cells and module manufacturers

are operating in the country

• Public Sector companies are allocating a

separate capacity for Domestic Content

Requirement (DCR)

• Companies like Trina Solar, JA Solar, Foxconn,

etc. have signed MoUs for setting up

manufacturing facilities in India

Modified Special Incentive Package Scheme(M-SIPS)

• Subsidy: 20% for investments in SEZs and 25% in non-SEZs

• Reimbursement of CVD/Excise, central taxes and duties

Excise duty exemption

•Solar cell/modules;

•Machinery and equipment required for setting up production project

•EVA sheets, solar backsheets, solar tempered glass, flat copper wire etc.

Special Economic Zone (SEZ)

• Duty free import/domestic procurement of goods for development, operation and maintenance of SEZ units

• Sales tax & service tax exemption

• Income tax exemption as follows: 100% exemption for the first 5 years, 50% for next 5 years

Push for“Make in India”

Concrete arrangements to ensure timely repair &maintenance

Support training programmes, establish service centers,etc.

System / Equipment Standards have been laid down andtest facilities created to enforce quality

Increasing the number of test facilities to accommodatemore systems for testing and reducing long waiting forresults.

Skill Development and Human Resource Development.50,000 Surya Mitras will be trained in 3 years.

Research & Development on all the aspects ofTechnology development is being supported

Sustainability Arrangements

5 MWp PV (Crystalline) Grid Power Plant at Khimsar Vllage, Jodhpur, Rajasthan (Pilot Scheme)

March 2016

Punjab Engineering College, Sector – 1, Chandigarh

Govt. College for Girls, Sector – 11, Chandigarh

March 2016

150 MW in Neemuch, MP

Ananthapuramu Ultra Mega Solar Park (1500 MW)

March 2016

Gujarat Solar Park- Charanka

Solar Energy development in India • Inter Solar 201526

March 2016

Reliance 100 MW Solar CLFR Plant in Rajasthan

2.5 MW Solar Thermal Tower Grid Power

Plant at Bikaner, Rajasthan

1 MW Solar Thermal Power Testing, research & simulation facility at NISE through IIT Bombay &

Industry consortium

• Combination of different collector technologies

• Direct and indirect steam generation to be demonstrated

Compact Linear Fresnel Reflector Parabolic Trough

Solar Lanterns

Solar Lantern Charging Station in

Villages

Solar Study Lamp

Solar Light in a

Tribal House

Solar Street Lights

SPV Water Pumping Systems

1 kWp Solar Power Packs

SOLAR COOKERS

Community Solar Cooker for indoor

Cooking (Scheffler)

Outside view (Top)

Inside view of

kitchen (bottom)

Solar Dish Concentrator

Solar Water Heaters

Solar Air Heating System in Laddakh

Solar Still

State Bank of Patiala,

Shimla

National Institute of Solar Energy, Gurgaon

Solar Passive Building

THANK YOU VERY MUCH

dr.ahmar raza

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