Solar Power in India-An UPDATE ON JNNSM- November 2012

Ministry of New and Renewable EnergyGovernment of India

1

Indian Power Sector (30 September 2012)

Thermal1,38,806 MW

Hydro 39,291 MW

Nuclear4,780 MW

Renewable 25,858 MW

2

Renewable Power Capacity (31 August 2012)

Wind17,967

MW

Small Hydro 3,434

MW

Bio3414 MW

Solar1,044

MW

Total25,858

MW 3

Potential of Solar Energy in India• The daily average solar energy incident varies from 4 - 7

kWh per square meter.

• The potential of power generation is 30 – 50 MW per square kilometer of land area depending upon the technology and geographical location.

• It is possible to set up solar power generation capacity of over 1,00,000 MW in India.

• Potential for solar power is dependent on future developments that might make solar technology cost-competitive for grid-interactive power generation applications.

4

Advantages of Solar Energy• Huge potential in India• Available throughout India• Decentralised solutions possible• Installation is quick and modular• Prices of solar PV panels and associated Balance of

Systems dropping considerably• No recurring fuel cost• Reliable and negligible maintenance• Environment friendly• Leads to reduced dependency on fossil fuels and

consequent reduction in import bills • Hybrid possibilities with various types of fuels

5

Consumption of fossil fuels in India• Coal - 593 Million Tonnes• Lignite - 37.7 Million Tonnes• Crude Oil - 206.2 Million Tonnes• Natural Gas - 51.3 Billion Cubic Meters

6Source : Energy Statistics 2012, CSO, NSO,MoSPI

Even a slight diversion of

energy consumption

from fossil fuels to solar power

may lead to significant savings of

energy resources and

foreign exchange

Plan-wise Renewable Capacity Addition

7

Renewable Energy Projections for 2027

Cumulative Installed Capacities in GW

8

India’s National Action Plan on Climate Change (NAPCC)

• National Action Plan on Climate Change was released by Hon’ble Prime Minister of India on 30th June, 2008.

• Eight Missions were envisaged on

– Solar Energy,

– Enhanced Energy Efficiency,

– Sustainable Habitat,

– Water,

– Sustaining the Himalayan Eco-system,

– Green India,

– Sustainable Agriculture and

– Strategic knowledge for Climate Change9

10

Jawaharlal Nehru National Solar Mission (JNNSM)

• One of the eight Missions under National Action Plan on Climate Change

• Launched by the Government of India in January 2010.• JNNSM is one of the major global initiatives in promotion of

solar energy technologies.• Mission aims to achieve grid tariff parity by 2022 through

Large scale utilization, rapid diffusion and deployment at a scale which leads to cost reduction

R&D, Pilot Projects and Technology Demonstration Local manufacturing and support infrastructure

10

11

Mission Road Map

Application Segment

Target for Phase I

(2010-13)

Cumulative Target for Phase 2

(2013-17)

Cumulative Target for Phase 3

(2017-22)

Grid solar power (large plants, roof top & distribution grid plants)

1,100 MW 4,000 - 10,000 MW

20,000 MW

Off-grid solar applications

200 MW 1,000 MW 2,000 MW

Solar Thermal Collectors (SWHs, solar cooking/cooling, Industrial process heat applications etc.)

7 million sq.

meters

15 million sq.

meters

20 million sq meters

Solar Lighting System

5 million 10 million 20 million

11

In addition, 100 MW capacity distributed small grid connected power plants during Phase -1

12

Mission Road Map

Enabling policy and regulatory frame work

Supporting Utility scale power generation

Emphasis equally on grid & off-grid applications

Accelerating Research and Development

Enhancing Domestic manufacturing base

National Solar Mission: Strategy

13

Policy and Regulatory Framework

Amendment of National Tariff Policy for solar specific RPOs

Solar specific RPO - 0.25% in Phase 1 (2013) to increase to 3% by 2022;

REC Mechanism

Encourage state specific solar policies

State-wise RPO Orders by Regulators

Exemption from environmental clearance for solar power projects

14

JNNSM (Phase 1) - Key Deliverables

• 1,100 MW Grid Solar Power Projects

• 200 MW Off-grid Solar Applications

• 7 million Sq. m solar thermal collector area

• R&D and HRD; Centers of Excellence

• Domestic Manufacturing

• Institutional arrangements for implementation of activities under the Mission

15

JNNSM : Phase-I, Batch-IScheme Projects

allotted

Projects

Commissioned

Weighted

Average

bid tariff

%

Reduction

in tariffNo. MW No. MW

Large PV projects

through NVVN

30 150 26 130 12.16

Rs. / Unit

32 %

2 Projects of 5 MW

each Cancelled

Migration

Scheme

SPV 13 54 11 48

ST 3 30 1 2.5

RPSSGP Scheme

(PV)

78 98 68 87.80

Solar Thermal

projects through

NVVN

7 470 Scheduled for

commissioning by

May 2013

11.48

Rs. / Unit

25 %

Total 131 802 106 268.3 - -

16

JNNSM : Phase-I, Batch-IIScheme Projects

allotted

Projects

Commissioned

Minimum

bid tariff

Maximum

bid tariff

Weighted

Average bid

tariff

%

Reduct

ion in

tariff

No. MW No. MW

Large PV

projects

through

NVVN

28 350 Scheduled for

commissioning

by Feb. 2013

7.49

Rs. / Unit

9.44

Rs. / Unit

8.77

Rs. / Unit

43 %

17

State/UT MW State/UT MW

Andhra Pradesh 21.8 Punjab 9.3Chhattisgarh 4.0 Rajasthan 201.1

Gujarat 690.0 Tamil Nadu 17.1Haryana 7.8 Uttar Pradesh 12.4

Jharkhand 16.0 Uttarakhand 5.1Karnataka 14.0 West Bengal 2.1

Madhya Pradesh 7.4 Andaman & Nicobar 0.1

Maharashtra 20.0 Delhi 2.5

Orissa 13.0 Lakshadweep 0.8TOTAL 1044.5

State-wise Capacity

18

Growth in Solar Power Installations

3 11 36

1030

0

500

1000

2008-09 2009-10 2010-11 2011-12

Cumulative Installed Solar Capacity (MW)

19

Solar Power Installations

Under the national programme, about 290 MW capacity projects connected to the grid

Large projects = 130.0 MW (Out of 140 MW)Small Plants = 87.80 MW (Out of 98 MW)Migration = 50.5 MW (Out of 84 MW)Other Schemes= 21.5 MW

Through the encouragement provided by the JNNSM, the states have taken initiatives to install over 755 MW capacity projects.

20Overall achievement is already over 1045 MW.

State Initiatives

S. No State Solar Specific Programme

1. Gujarat Announced – 968.5 MWCommissioned – 690 MW

2. Maharashtra Announced – 205 MWCommissioned – 40 MW (Setup in Rajasthan)

3. Karnataka Commissioned – 8 MW Plans for 600mwBids invited – 80 MW, Minimum tariff – Rs. 7.94/unit

4. Rajasthan Announced – 200 MW

5. Odisha Awarded – 25 MW, Minimum tariff – Rs. 7/unit Announced -50 mw

6. Madhya Pradesh AWARDED– 200 MWMinimum tariff – Rs. 7.90/unit

7. Tamil Nadu Announced – 3000 MW

Total Announced –5000 MW approx21

Year Target in MW

Project Sanctioned

(MW)

Projects Installed

(MW)

2010-11 32 40.65 10.79

2011-12 68 77.40 20.2

2012-13 100 Under progress

Off Grid SPV : Physical Targets and Achievements(Target: 200 MW in Phase-I)

Solar Thermal : Achievements

5.73 million square meter of solar thermal collector area installed so far cumulatively against target of 7.0 million square meter in Phase-I.

22

Important Areas for Off-Grid Solar Applications

• Agricultural water pumps

• Powering telecom towers

• Supplementing power generation using diesel

• Lighting in areas with no grid power or insufficient grid power

23

Requirements in the country

• Telecom Towers - 4 lakhs• No. of households using kerosene – 77.5 million• No. of agricultural pumps – 15 million electric &

6 million diesel

24

Centers of Excellence

• IIT Bombay: Research and education in the area of photovoltaics (2009-10)

• IIT Rajasthan: Research and education in the area of solar thermal (2011-12)

• IIM Ahmedabad: Technology incubation and development of entrepreneurship (2010-11)

• CEPT University, Ahmedabad: Solar passive architecture and green building technologies (2010-11)

• Amrita Vishwa Vidyapeetham, Cochin: Integrated nano-material based Photo Voltaic-storage devices (2010-11)

• IISc. Bangalore: Proposal is under consideration for decentralized solar thermal power applications

Research Infrastructure Augmentation (Universities/ R&D institutions)

• R&D Policy is in place to support R&D projects in Universities, academic institutions, research laboratories and in industries

• Type of projects covered under the policy include– Centres of excellence in thematic areas of research– Applied research– Technology validation and field evaluation– Capacity building

• Currently, 18 projects in photovoltaics and 17 in solar thermal areas are under implementation

Research Infrastructure Augmentation (Universities/ R&D institutions)

• Implementing institutions include– IIT Bombay, IIT Delhi, IIT Kanpur, IIT Rajasthan– CSIR laboratories, NPL, NCL, Indian Inst of Chemical

Tech – Universities: Delhi, Pune, BESU, KIIT, Jain University,

Cochin University of S&T,– IACS, Indian Institute of Petroleum, TERI– Industries : Moser Baer, Maharishi Solar, Sunborne, ATE

Pune, Clique Dev, Thermax, Megawatt Solutions,– Others: WRST; DST Lakshadweep.

Specific R&D Thrusts

• CPV– One proposal from IIT Kanpur is under consideration

aiming at development of Si solar cell• Development of high temperature photovoltaics

– Ga As is usually used– Cooling mechanisms are usually applied.

• Heat Cycles for solar thermal with air as heat sink– Being tried out in solar tower project by Sunborne– Covered in the scope of work at IIT Rajasthan project– Pilot project is also being planned

Materials and Components

• Receiver for Parabolic Trough Technology: Challenges– Glass to Metal seals– Vacuum Receiver – High temperature and low emittance selective

coating• Advanced power converter modules for PV

– Covered under BESU and IIT Bombay Projects• Self cleaning reflector surfaces• Receiver Modules for central tower

– Covered under Sunborne Project

New Photovoltaic Materials

• Organic solar cells using organic-inorganic semiconductor hybrid absorber – IIT Delhi

• Dye Sensitized Solar Cell (DSSC) – IICT, Hyderbad• Novel Doped 3-D Nanoporous Oxides for Dye-Sensitized

Solar Cells – IIPM, Dehradun• Salmon DNA-Conducting Polymer (P3HT) - Quantum Dot

(CdSe) - Carbon Nanotube (SWNT) – University of Delhi• Titania nano-structured thin film based for developing DSSC –

Amrita University, Cochin• Design and Development of Organic Solar Cell Sub-Modules

– IIT Kanpur

Pilot CSP Projects

• Planned with NCEF and ADB support

• Air/ hybrid cooling

• Large thermal storage

• Base load capacity solar stand alone plant

• Advanced technology with operating temperature over 500 deg C

• Proposed to be taken up

• Hybridization with natural gas

• Solar - biomass hybrid plant

• Solar Augmentation of the existing coal thermal power plant

• Solar dish Stirling engine

Infra-structure for Solar Energy

• Capacity for silicon production– 50 MWp capacity vertically integrated plant by Lanco

at Chhattisgarh– A project by Maharishi Solar for development of solar

grade Silicon– Some capacities are likely under SIPS by Ministry of

IT

CERC Tariff Vs. Bid Tariff

33

Network of Solar

Radiation Monitoring Stations in

India

34

Mandatory Solar RPO Mechanism

• State Electricity Regulators to fix a percentage of energy purchased from Solar Power under RPO.

• The Solar RPO has to begin with 0.25 % of the energy procured reaching 3% by 2022.

• This requirement likely to go up to 30,000 MW by 2022.

35

Solar Power required to meet Solar RPOs (MW)

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

1465 3018 4659 6387 8204 10109

Current state-wise Solar RPO targets

36

State 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Andhra Pradesh 0.25% 0.25% 0.25%      

Arunachal Pradesh Assam 0.10% 0.15% 0.20% 0.25%    

Bihar 0.50% 0.75% 1.00% 1.25%    

Chhattisgarh 0.25% 0.50%        

Delhi 0.10% 0.15% 0.20% 0.25% 0.30% 0.35%

JERC (Goa & UT) 0.30% 0.40%        

Gujarat 0.50% 1.00%        

Haryana 0.00% 0.05% 0.10%      

Himachal Pradesh 0.01% 0.25% 0.25% 0.25% 0.25% 0.25%Jammu and Kashmir 0.10% 0.25%        

Jharkhand 0.50% 1.00%        

Karnataka 0.25%          

Kerala 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%Source: RPO regulations of the respective states

Current state-wise Solar RPO targets

37

State 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Madhya Pradesh 0.40% 0.60% 0.80% 1.00%    

Maharashtra 0.25% 0.25% 0.50% 0.50% 0.50%  

Manipur 0.25% 0.25%        

Mizoram 0.25% 0.25%        

Meghalaya 0.30% 0.40%        

Nagaland 0.25% 0.25%        

Orissa 0.10% 0.15% 0.20% 0.25% 0.30%  

Punjab 0.03% 0.07% 0.13% 0.19%    

Rajasthan 0.50% 0.75% 1.00%      

Sikkim

Tamil Nadu 0.05%          

Tripura 0.10% 0.10%        

Uttarakhand 0.03% 0.05%        

Uttar Pradesh 0.50% 1.00%        

West Bengal            

Source: RPO regulations of the respective states

Captive Compliance Requirement

Company NameCaptive Power Capacity

(MW)

Solar Capacity Required for solar RPO compliance (MW)

in 2012-13J.K. Lakshmi Cement Ltd. 93.00 3.00Indian Petrochemical Company Ltd. 257.00 3.40Bharat Petroleum Corporation Ltd. 189.00 4.00Wardha Power Company Ltd. 405.00 4.20Ultratech Cement Ltd. 129.00 5.00KSK Energy Ventures Limited 540.00 5.57J.S.W. Steel Limited. 600.00 6.20Prakash Industries Ltd. 300.00 6.20Vedanta Ltd. 1215.00 7.52National Aluminium Company Ltd. 1255.00 7.80Visa Steel Ltd. 405.00 8.40Gujarat Alkalies and Chemicals Ltd. 247.00 8.70Ambuja Cement Ltd. 290.00 10.00Steel Authority of India(SAIL) 578.00 12.00Bokaro Power Supply Company Pvt. Ltd. 302.00 12.50Bajaj Hindustan Ltd. 323.00 13.50Essar Group 367.00 14.27Hindustan Zinc Ltd. 474.00 14.70Jindal Steel and Power Ltd. 873.00 15.00Sterlite Industries India Ltd. 675.00 16.80Hindalco Ltd. 1358.00 41.70Tata Steel Ltd. 1882.50 77.60Reliance Industries Ltd. 2089.00 81.00

Total 379.0638

Solar REC trade @ IEX

39

Year MonthBuy Bids

(REC) Sell Bids

(REC)

Cleared Volume

(REC)

Cleared Price(Rs/REC)

No. Of Participa

nts

2012

May1,637 149 5 13,000 16

June9,489 541 336 12,750 17

July8,554 419 93 12,800 11

August1,728 310 129 12,850 13

September1,317 1,094 735 12,500 23

Solar REC trade @ IEX

40

No. of RECs traded (cleared volume) at IEX

41

42

2.5 MW Unit of

a 10 MW

capacity project

at Bikaner by

ACME

1 MW PV Plant at Osamabad

43

5 MWp SPV Plant at Khimsar, Rajasthan

44

SPV Power Plant at Goshen Drass Kargil (40 kWp)

45

Solar Thermal System for Steam Generation at ITC Hotel, New Delhi

46

Projected Growth

47

Exemption from Taxes

Vide Custom Notification No. 25/1999 dated 28th February, 1999 there was no customs & Excise duty on cells and modules but some raw materials required to manufacture cells and modules attract 5% customs duty and CVD.

Vide Custom Notification No. 32/2012 dated 8th May, 2012 importation of Plant & Machinery for initial setting up of solar power projects is exempted from Additional Custom Duty and the total custom duty leviable has come down from 9.35% to 5.15%.

Vide Notification No. 31/2012 dated 8th May, 2012 goods required for manufacturing of solar cells and modules have been exempted from Additional Custom Duty and the total custom duty leviable has come down to 9.35%.

48

Solar Resource Maps for India

49

Ground Measurements of Solar Radiation

Andhra Pradesh 6

Gujarat 11

Haryana 1

Madhya Pradesh 3

Karnataka 5

Rajasthan 12

Chhattisgarh 1

Ladakh 1

Maharashtra 3

Pudducherry 1

Tamil Nadu 6

• C-WET is implementing the project for setting up 51 ground monitoring stations

• Centralized data collection, analysis and calibration of measuring sensors 50

51

Solar Energy Centre

Solar Energy Centre (SEC) near New Delhi under the Ministry is the lead Centre for testing and training in solar energy in the country

SEC has NABL accredited testing facilities for PV module qualification as per Indian and International standards

SEC is imparting training in solar energy at various levels

SEC is regularly conducting international training programmes in solar energy with MEA

Several research and technology validation projects are being set up at SEC.

National Solar Thermal Power Testing, Simulation and Research Facility

• 1MWe Solar Thermal Power Plant - Research and Demonstration plant

- Combination of different collector fields

(Direct and Indirect Steam Generation)

Parabolic Trough Field -8700 sq. m-3.3 MWth (Design)

Linear Fresnel Field- 7200 sq. m - 2.2 MWth (Design)

Turbine operating conditions: saturated steam at 3500 C and 40 bar

52

PHASE 2 PLANNING

• CONSULTATION STARTED – 3 meetings held

• ALTERNATIVES FOR GRID POWER IDENTIFIED

• NEW INITIATIVES FOR OFFGRID

• GRID CONNECTED ROOFTOP TO COME UP IN A BIG WAY

• R AND D AND MANUFACTURING

53

OFFGRID NEW INITIATIVES

• ENERGY ACCESS SCHEME

• CHANGES IN OFFGRID SCHEME TO MAKE IT SIMPLER

• GRID CONNECTION ALREADY ALLOWED

• HEAT APPLICATIONS TO BE ENCOURAGED

• USE IN INDUSTRY

54

GRID CONNECTED ROOFTOP

• REGULATIONS TO FACILITATE

• CAPITAL SUBSIDY

• PILOT OF 10 MW

• RESCOS TO BE ENCOURAGED

• TAX BENIFITS

55

OTHER AREAS

• DIESEL REPLACEMENT

• TELECOM TOWERS

• NEW INNOVATIVE PRODUCTS

• COOLING

• COLD STORAGE

• WATER PURIFICATION

• SPACE HEATING

• WATER PUMPING56

GRID CONNECTED

• BUNDLING,VGF AND GBI

• 3000 MW IN BATCHES

• THERMAL POWER TO BE ALSO SUPPORTED

• NVVN AND SECI TO SUPPORT

• SOLAR PARKS

57

SUPPORT REQUIRED

• FINANCING-INVESTMENT OF 1LAKH CRORE

• TRAINED MANPOWER

• MANUFACTURING

• TRANSMISSION

• DISCOMS

• REGULATERS

• GOVT POLICIES58

INSTITUTIONAL SUPPORT

• SECI

• INDUSTREAL AND R AND D COMMETTIES

• STATE NODAL AGENCIES

• MONITERING SYSTEM

• NISE

59

60