6.1.1 Market Overview Solar power is a non-continuous source of generation. The average capacity factor for solar utility scale non-tracking solar power plants ranges from 20% to 24%. For utility scale power projects, there are no energy storage solutions available as of today. Also, solar power poses challenges in load scheduling on account of effect of seasonal factors like cloud covers and rain. Due to this inherent variability, the impact on grid from large-scale solar parks becomes intensified as compared to individual medium scale solar power projects. The new government had made its intentions clear that it wants India to be among the top solar markets in the world by announcing a revised solar target of 100 GW from the planned 20 GW solar power by 2022 under Jawaharlal Nehru National Solar Mission. The government officially approved the capacity target after a meeting of India’s Union cabinet, chaired by the Prime Minister Narendra Modi. The emphasis on addition of solar capacity is also evident from its major share of almost 57% (100 GW) out of the proposed 175 GW of renewable energy. The drastic fall in solar power costs from Rs. 20 per unit to nearly Rs. 5.5 per unit in the span of a few years has prompted the government to carve out such an ambitious target. The target has been split into 60 GW of large and medium scale Grid connected solar power projects and 40 GW rooftop projects. This is expected to require an investment of around INR 6000 billion along with conducive policies, effective deployment mechanisms by implementing agencies and favourable support from financial institutions. In addition, it is expected to boost the indigenous manufacturing industry as well as create large number of jobs to meet the target. India already has 4096 MW of installed grid-connected solar PV generation capacity. Out of which, almost 3740 MW are ground mounted power projects and 356 MW are rooftop power projects. Although the installed capacity has grown at around 229% CAGR over a period of four years owing to falling module prices, the government’s introduction of the Jawaharlal Nehru National Solar Mission (JNNSM) scheme and various state policies, giving momentum for incremental development of solar power. Still, the capacity addition target of 2200 MW of JNNSM Phase I was not achieved. The sector has been fraught with challenges as land acquisition, delay in policy level and financial clearance, lack of enforcement of Renewable Purchase Obligations (RPO) by state nodal agencies, poor financial health of DISCOMS and higher per unit cost of power. www.solarquarter.com 6.1.2 Present Market Scenario (Current Projects, Key Competitors and Players in the region) Identify top three solar parks of the world and India Top 3 Solar parks in India 1. Charanka Solar Park The largest site within the Gujarat Solar Park is being built on a 2,000-hectare (4,900-acre) plot of land near Charanka village in Patan district, northern Gujarat. This hosts about 19 different projects by different developers. On 19 April 2012, a total of 214 megawatts (287,000 hp) had been commissioned. It also became the world's second largest photovoltaic power station. When fully built out, the Charanka Solar Park will host 500 MW of solar power systems using state-of-the- art thin-film photovoltaic (PV) power systems. The investment cost for the Charanka solar park amounts to some US$280 million. Construction began on 3 December 2010. 2. The Welspun Solar project, set up at a cost of Rs. 1,100 crore on 305 hectares of land, will supply power at Rs. 8.05 a kWh. The project of a 130MW solar power plant at Bhagwanpur in Neemuch MP. 3. Dhirubhai Ambani Solar Park The Dhirubhai Ambani Solar Park at Dhursar village near Pokhran in the Jaisalmer district of Rajasthan is a 40-megawatt (MW AC) photovoltaic power station commissioned in 2012. It is one of a large number of solar parks expected to be built in a 35,000 km2 area of the Thar Desert that has been reserved for solar power projects. The solar park was named after the late Dhirubhai Ambani, the founder of Reliance Industries, and was constructed using 500,000 CdTe-modules by First Solar, and covers an area of 350 acres (140 ha). Top 3 Solar parks in the world 1. Topaz, California. MidAmerican Solar. Capacity: 580 MW. (which solar technology is used)In December, the final 40-megawatt phase of the Topaz solar farm went online in California, making it the first solar plant in the United States to be over 500 megawatts. The 580-MW facility, located on the Carrizo Plain of San Luis Obispo County, took two years to build and cost $2.5 billion. Its 9 million solar panels, spread across 9.5 square miles, will power 160,000 homes and supply most of the electricity for the city of San Luis Obispo, population 276,000. 2. Solar Star, California. MidAmerican Solar, SunPower Corp. Capacity: (which solar technology is used)579 MW. Construction of the Solar Star Projects, located in Kern and Los Angeles Counties, started in 2013 and is expected to be finished this year. When complete, the facility will have over 1.7 million solar panels. It already delivers over 170 megawatts to the California grid. 3. Ivanpah, California. NRG Energy, BrightSource Energy, Google. (include some info on , if it is storing energy!)Capacity: 392 MW. Opened nearly a year ago, the Ivanpah Solar Solar Electric Generating System stretches five square miles across the Mojave Desert close to the Nevada border. The plant employs about 300,000 mirrors that are used to direct sunlight onto three “boiler towers”. The facility produces enough energy to power 140,000 homes. Wikipedia Compare their top ten features like % of solar, wind, biomass, type of technology, efficiencies, etc on a graph for easy understanding. Technological comparison for Solar Thermals CSP Technology Capacity Utilisation Parabolic Solar Parabolic Dish Linear Trough Tower 20-25% 40-45% N.A N.A 2.9-3.5 2.9-3.5 Nil 2.8 300-400 500-1500 750 250-300 10-200 10-150 0.01-0.04 1-200 Demonstrated Pilot projects Fresnel Factor (CUF) (%) Water requirement (cubic meter per MWh) Operating temperature (°C) Typical capacity (MW) Maturity of technology Insolation enhancement Commercially Pilot commercial proven projects projects 30-40 60-70 60-70 30-40 11-16 7-20 12-25 13 (%) Annual solar-to- electricity efficiency (net) (%) Source: EAI, Indian Institute of Science No of developmental solar park projects in the world and India Developmental solar park projects in the world and India Solar Thermal Power Stations under construction Capaci Name Count ty MW Location ry Co- Expect Technol ordinates ed Notes ogy comple tion 1.79″S technolo storage 21°32′27.56″S storage 19°35′53. tower 2018 Antofagasta solar power Solar tower Thermal Plant(Ata cama 1) 100 Redstone Solar Northern Cape 28°17′ South Thermal Africa 53″S Power 23°21′56″E 100 Xina Northern Cape Solar South One Africa 28°53′ 2018 2016 solar with 12h power heat tower storage paraboli with 5h c trough heat 40.5h Fresnel heat 25.021 Miraah Amal paraboli Oman 200 Noor II c trough Ghassate(Oua 2017/20 paraboli Moroc rzazate co 121 Ashalim power c trough 2017 solar province) Negev desert 30°58′ Israel station1 power N 34°42′E 110 Cerro María Dominad Chile or 18 Elena.5 2″E 100 Ilanga 1 Northern 28°29′ South Cape(Upingto Africa n) 2017 linear with 4.1 gy 3″E 100 El Reboso El Puebla del 2015 Spain Rio(Seville) paraboli c trough 2+3 100 Dhursar 2014 India fresnel reflector . 25 Gujarat Solar Kutch 23°22. India One 2013 paraboli with c trough heat 233′N storage 70°41.100 Diwakar Askandra 2014 India paraboli with 3h c trough heat storage 100 KVK Energy Askandra 2014 India paraboli with 4h c trough heat Solar storage Project 100 Noor III Ghassate.5 Jinshawa n China China solar Operation updraft s tower underway at 200 kW. 2017/20 solar Moroc Ouarzazate co 50 Arenales PS 18 Province Morón de power tower la 2013 Spain Frontera(Sevill paraboli c trough e) 50 Casablan ca Casablanca Spain 50 Erdos Solar 2013 paraboli c trough Hanggin 2013 China Banner paraboli c trough Power Plant 50 Megha Solar Anantapur 2013 India paraboli c trough Plant 44 Kogan Chinchilla Creek Austra Solar lia 2015 fresnel reflector Boost 27.988′ E 17 Stillwater Nevada 9h 2014 paraboli . wikipedia. fresnel First 2015 reflector utilityscale solar thermal plant in France 5 Sundt Power Arizona 2014 USA fresnel [ reflector Plant 3 Airlight Energy Ait Baha 2013 Moroc paraboli with 12h c trough heat Ait Baha co storage Plant 1.org/wiki/List_of_solar_thermal_power_stations .USA 12 Alba Nova1 c trough Corsica France July.5 Tooele Army Tooele 2013 dish USA Depot 1.4 THEMIS Solar Pyrénées- 42°30′ France Orientales Power 5″N Tower 1°58′27″E 1 e-Cube 1 Hainan solar Hybrid power solar/gas tower power plant 2013 China Modular First Heliostat Modular Heliostat solar thermal plant in the world 1 Renovali a Albacete Spain 50 CGNSED power plant dish Delingha China 37°21′ sep paraboli 2016 c trough 26″N 97°16′18″E https://en. It gave guidelines for the implementation of off-grid solar applications. Indo Solar Limited and KSK Surya Photovoltaic Venture Private Limited took advantage of the Special Incentive Scheme included in this policy and constructed plants for PV modules. as a next step. Even before the NSM. One of the main drawbacks of the GBI scheme was that it failed to incorporate the state utilities and the government in the project development. A part of that plan was the National Solar Mission (NSM). despite the GBI scheme. The Gujarat solar policy initiated a process of . the Indian government announced the National Action Plan for Climate Change (NAPCC). This primarily included solar lanterns. but a majority of the production was still being exported. As a result. solar pumps. Also. There was also a need for a policy to incorporate solar power into the grid. which was commercially driven and based on a strong domestic industry. installed capacity in India grew only marginally to 6MW by 2009. The extra cost of generation of solar power was being borne by the federal government under the GBI scheme. the tariff offered was unviable. a developer could not install more than 5MW of solar power in India. The NSM guidelines indicated that the government had improved on the shortcomings of the GBI scheme. under the GBI scheme. at this early stage. leaving problems like land acquisitions and grid availability unaddressed. However.8MW (as on 14-2-2012) of capacity was installed through this policy. New manufacturers like Titan Energy Systems. which limited the returns from scale. Since the generation cost of solar power was then still around Rs. announced in January 2008 was the first step by the government to promote grid connected solar power plants. The scheme for the first time defined a feed-in tariff (FIT) for solar power (a maximum of Rs. This included the Silicon and PV manufacturing industry as well. home lighting systems. The Generation Based Incentive (GBI) scheme. only 33. In June 2008. India introduced the Semiconductor Policy to encourage the electronic and IT industries. street lighting systems and solar home systems.1. Gujarat was the first state to come up with its own solar policy in January 2009. There were no PV projects being developed in India at that stage. This move helped the manufacturing industry to grow. In 2007. It aimed to develop a solar industry. 18/kWh.3 Historic and future demand in the backdrop of government policy and socio economic and environmental factors The Rural Electrification Program of 2006 was the first step by the Indian Government in recognizing the importance of solar power.6. 15/kWh). the promotion of cogeneration and generation of electricity from renewable sources of energy. Andhra Pradesh and Rajasthan have followed suit in developing solar power development programs. June 2003 Sections 3(1)states that the Central Government shall. a demand-driven scheme. As more states plan to meet their solar power obligations. Section 61(h & i) state that the appropriate commission shall. Rajasthan has implemented land banks as well to make land acquisition easier. from time to time. One of the key novelties of the Gujarat policy was that it introduced the concept of solar parks. specify the terms and conditions for the determination of tariff. Section 4states that the Central Government shall. http://indianpowersector. These policies exist independent of each other as well as the NSM. Section 86(1)(e) Section 86(1) and 86(1)(e) state that the state commissions shall discharge the following functions. natural gas. hydro and renewable sources of energy. new policies are expected to be offered. shall be guided by the following. These parks offered a comprehensive solution to concerns over land acquisition. permitting stand-alone systems (including those based on renewable sources of energy and other non-conventional sources of energy) for rural areas. and in doing so. Central Government The Electricity Act. in consultation with the state governments and authority for development of the power system based on optimal utilization of resources such as coal. prepare and notify a national policy. after consultation with the state governments. hence offering developers a project allocation packaged with the necessary infrastructure.the states formulating their own policy frameworks independent of the federal guidelines. Other states like Karnataka. subject to the provision of this Act. nuclear substances or material. promote . namely. and water availability. further accelerated the formulation of solar policies at the state level.com/home/renewable-energy/solar_new/solar-power/ Present government policy on solar parks. creating as very vibrant set of markets across the subcontinent. prepare and publish the National Electricity Policy and Tariff Policy. namely. and the National Electricity Policy and Tariff Policy. grid connectivity. The renewable purchase obligations for state distribution companies. these technologies would need to compete with other sources in terms of full costs. in terms of cost. with conventional sources. as far as possible. (2) National Tariff Policy. Jan 2006 The Tariff Policy announced in January 2006 has the following provisions: Pursuant to provisions of section 86 (1) (e) of the Act. (1) National Electricity Policy. Such percentages for purchase of energy should be made applicable for the tariffs to be determined by the SERCs latest by April 01. Feb 2005 The National Electricity Policy 2005 stipulates that progressively the share of electricity from non-conventional sources would need to be increased. . the Appropriate Commission shall fix a minimum percentage for purchase of energy from such sources taking into account availability of such resources in the region and its impact on retail tariffs. In the long-term. considering the fact that it will take some time before nonconventional technologies compete. Such procurement by Distribution Licensees for future requirements shall be done. through competitive bidding process under Section 63 of the Act within suppliers offering energy from same type of nonconventional sources. and also specify.cogeneration and generation of electricity from renewable sources of energy by providing. It will take some time before non-conventional technologies can compete with conventional sources in terms of cost of electricity. such purchase by distribution companies shall be through competitive bidding process. to be followed in cases where such procurement is not through competitive bidding. especially from non-conventional sources. the commission may determine an appropriate deferential in prices to promote these technologies. procurement by distribution companies shall be done at preferential tariffs determined by the Appropriate Commission. The Central Commission should lay down guidelines within three months for pricing non-firm power. 2006. Therefore. a percentage of the total consumption of electricity in the area of a distribution license. suitable measures for connectivity with the grid and sale of electricity to any person. for purchase of electricity from such sources. the solar park will enable the states to bring in significant . However. These solar parks will be put in place in a span of 5 years and the solar projects may then come up as per demand and interest shown by developers. thereby targeting around 20000 MW of solar power installed capacity. these may be adopted. RE generators will have two options – either to sell the renewable energy at preferential tariff fixed by the concerned Electricity Regulatory Commission or to sell the electricity component and environmental attributes separately Voluntary Purchasers like NGOs. Where these also are not feasible and if only alternative is to use isolated lighting technologies like solar photovoltaic. At the state level. each with a capacity of 500 to 1000 MW. Jan 2010 Renewable Energy Certificate is a market based instrument which enables the obligated entities to meet their Renewable Purchase Obligation (RPO). (4) Renewable energy certifi cate mechanism. The REC mechanism encouraging competition and eventually mainstreaming also renewable aims at energy sources. https://www. MNRE has plans to set up 25 solar parks. to purchase a minimum level of renewable energy out of the total consumption in the area of a distribution licensee.pdf Ministry of NRE/concerned ministry policy on solar park development and their current activities. off-grid solutions based on stand-alone systems may be taken up for supply of electricity.1 states “For villages/habitations where grid connectivity would not be feasible or not cost effective. the renewable purchase obligation is the obligation mandated by the State Electricity Regulatory Commission (SERC) under the Electricity Act. Pertinently.(3) National Rural Electrifi cation Policy. the Corporate Sector. and Individual Purchasers etc. may also purchase REC in order to meet their Corporate Social Responsibility or to support the environment. 2006 Section 3.nic.recregistryindia.in/pdf/REC_india. such remote villages may not be designated as electrified. Further. technical improvements and achieving large scale reductions in GHG emissions. Higher than 1000 MW capacity parks may also be considered under special circumstances. The state will also reduce its carbon footprint by avoiding emissions equivalent to the solar park’s installed capacity. prompting additional projects of similar nature. The solar park will provide a huge impetus to solar energy generation by acting as a flagship demonstration facility to encourage project developers and investors. Implementation agency The solar parks will be developed in collaboration with the State Governments.investment from project developers. Uttarakhand and J&K. HP. meet its Renewable Purchase Obligation (RPO) mandates and provide employment opportunities to local population. Smaller parks of 100 MW and above may also be considered in UT’s and small States with population less than 2 crores. Smaller parks of 100 MW and above may be considered in NE. The implementation agency would be Solar Energy Corporation of India (SECI) on behalf of Government of India (G0I). SECI will handle funds to be made available . Some Ultra Mega projects may be set up in these Parks or entire parts may be an Ultra Mega Power Projects. triggering economies of scale for cost-reductions. Capacity: Park to be taken up for development should be of minimum capacity of 500 MW and a maximum capacity of 1000 MW. the state will also avoid procuring expensive fossil fuels to power conventional power plants of equivalent installed capacity. Applicability: All the states and Union territories are eligible for benefits under the scheme. The Joint venture between state designated nodal agency and SECI undertakes the development & management of solar park iii. Solar parks are envisaged to be developed in the following modes: i. i. finance. The state designates SECI as the nodal agency and SECI undertakes the development and management of solar park on its own. Carry out site related studies/investigations . execute.under the scheme on behalf of GOI. plan. ii. Develop. as identified under provisions at (i) to (iv) above. Identify potential site and to acquire/possess land at potential sites for Solar Power Park iii. operate and maintain the Solar Power Park ii. The implementation agency. shall undertake following activities to achieve the objective of speedy establishment and implementation of Solar Power Parks in the State. The state designated nodal agency undertakes the development & management of the solar park. iv. Any of the above three alternatives with a private sector partner with a condition that at least 51% of the equity will remain with SECI+ State designated agency. under the general guidance and supervision of SECI. The states applying under the scheme will have to designate an agency for the development of solar park. implement. Frame out transparent plot allotment policy and specify procedures pursuant to the relevant State policies and their amendments thereof. roads. It will be the responsibility of the State Government to make the . viii. v. Conduct the necessary evaluation and pre-permitting of the environmental and social impacts of utility scale solar deployment before allocating the land to prospective developers Land acquisition / site selection Land for the setting up of the solar park will be identified by the State Government. Provide directives for technology-specific land requirements Engage the services of national/global experts/consultants to promote Solar Power Park related activities x. drainage etc. Facilitate the State Government to establish educational institutions/training facilities within Solar Power Park for development of manpower skill related to Solar Power xi. Obtain statutory & non statutory clearances and to make area development plan within Solar Power Park. xii. Create necessary infrastructure like water. Any other activities related to Solar Power Park as per the directives from MNRE and the State Government. transmission lines. to facilitate Solar Power Project developer for faster implementation of Solar Power Projects vii. Design a plan for sharing development cost between the developers and the park vi.iv. ix. as compared to projects outside the park which would have to obtain these services individually. making it easier for investors to implement their projects within the park in a significantly shorter period of time. States are encouraged to identify sites receiving good solar radiation and sites which are closer to CTU (i. therefore. It will be preferred if most of the required land is Government owned and very little private land is to be acquired. The park must have at least 5 Acres per MW towards installation of solar projects. then land in few locations in close vicinity may be taken. preferably locations with spare solar installed capacity and water availability. the site should be selected in such a manner so that inexpensive land can be made available. Apart from this. These services while not being unique to the park. If land cannot be made available in one location. The price of the land is to be kept as low as possible in order to attract the developers and. cleaning it. single window format.e. one-stop-shop. Power Grid). In order to provide for such a large tract of contiguous land with appropriate insolation levels.land available. the agency will also be entrusted with providing the following facilities to the solar project developers for the development of the solar park: . The implementing agency is tasked with acquiring the land for the Park. the state government may prioritize the use of government waste/non-agricultural land in order to speed up the acquisition process. Facilities to be provided The solar park will provide specialized services to incentivize private developers to invest in solar energy in the park. leveling it and allocating the plots for individual projects. are provided in a central. saving the private developer from making the effort of finding the ideal site for the plant. v. viii. the Park will provide road access (both approach roads and smaller access roads to individual plots). The solar park will be a large contiguous stretch of land with high insolation levels.Transmission facility consisting pooling station (with 400/220. water (via a dedicated reservoir located within the premises). In addition. Water availability for construction as well as running of power plants and demineralization plant iv. each of which would have entailed . Land approved for installation of solar power plants and necessary permissions including change of land use etc. ii.Telecommunication facilities vii.Parking. the site within the park is already levelised and developed reducing these costs for the project developer. Warehouse etc. Road connectivity to each plot of land iii.i. Construction power vi. Flood mitigation measures like flood discharge. In addition.Housing facility for basic manpower wherever possible ix. 220/66 KV switchyard and respective transformers) to allow connection of individual projects with pooling station through a network of underground cables or overhead lines. boundary fence and security. internal drainage etc. Financial model The implementation agency. Based on this estimate the nodal agency will formulate a recovery model to ensure the sustainability of the model. entrusted with implementing the program will get the land developed and provide necessary infrastructure like road connectivity. The centralized. duties.additional costs for the developer outside the park. Each of these specialized services offer significant benefits to the developers but come at a premium. However. The allotment price may be reviewed annually and an annual increment may also be specified. The Allotment Price per metre square (inclusive of all applicable taxes. cess etc.) payable by the plot applicant for the applications must be specified beforehand. the most important benefit from the park for the private developer is the significant time saved. The . Land plots within the solar park are more expensive than outside. Significant investments will also be made in the operation & maintenance of the solar park. But this premium is easily justifiable by these services. The nodal agency may raise the funds as follows: 0 The implementation agency may sell/lease out the plots to prospective project developers. transmission infrastructure etc. employing staff and other activities like marketing activities etc. The entire cost of development including cost involved in acquisition of land will form the total cost for the project for which an estimate will be prepared beforehand by the nodal agency. which bundled into the land cost. single window nature of the services within the park reduces the time between project conceptualization and operations. translating into economic and real monetary gains for the private developers and the state. This advance will be 10% of the sale price. The policy aims to achieve an ambitious installation target of 3 GW by 2015.in TN state NRE/concerned ministry policy and their current activities. 0 A one-time registration fee (per project or per MW) may be collected by inviting applications from the prospective buyers when the scheme is finalized.500 MW of utility-scale projects and 1. land identified and marked. An advance may be collected from the prospective buyers when 50% of the land is acquired.maximum stretch of plot to be allotted will be decided as per the benchmarks finalized by the nodal agency. The policy aims to achieve this capacity addition from: 350 MW of rooftop installations. mnre. Tamil Nadu solar policy The Tamil Nadu Solar Policy 2012 was announced in October 2012. Another installment of 25% of the price of land may be taken when full land is acquired. 0 The implementation agency may put in some of its own equity and can raise loans. which may be supplemented with some annual charges.150 MW of projects under the REC mechanism. In a first-of-its-kind state policy. The SPV will also create a small corpus fund to ensure upkeep and maintenance in the future. depending on the availability of funds and requirement. Tamil Nadu will provide a Generation Based Incentive (GBI) for rooftop solar power through net-metering in which power . 1.gov. Further installments may be collected while plot are being developed. Final 15% may be collected at the time of allotment of the plot to the buyer. The subsidy of MNRE under the scheme would bring down the cost of the project to that extent. space or technical knowledge to set up large solar power plants themselves and on site. These installations are expected to be . For example. A capacity of 50 MW is proposed to be added through this process. The Tamil Nadu government has estimated that through the implementation of the SPO mechanism 500 MW of solar power will be installed for direct use of or third party sale to SPO obligated entities. The realization of this target is dependent on the enforcement of these SPOs by the local authorities. For a target of 1. These obligations have been mandated at 3% till December 2013 and 6% from 2014 onwards on various power consumers such as Special Economic Zones (SEZs). IT parks.000 square meters. The remaining 1. The guidelines for the process are expected to be released separately. the policy targets an installation of 1. many commercial consumers will not be equipped with the infrastructure. The remaining 500 MW of utility scale projects is expected to come up using a GBI based on a reverse bidding process. There is also a provision for solar parks to come up in 24 districts of the state in a phased manner to accommodate these utility scale projects.500 MW of utility scale projects till 2015. Obligated entities can fulfill their SPOs by doing one of the following: generate own solar power. buy solar power from a third party within Tamil Nadu.15 MW of the policy target is expected to come up using the existing REC mechanism. they will often choose to buy power from private power producers by signing a PPA with them. residential schools and all buildings with a built up area of more than 20. telecom towers. the Tamil Nadu solar policy does not provide any significant incentive for REC projects to come up in the state. This provides an opportunity for project developers to enter into private PPAs for the sale of solar power to those obligated entities that do not regard solar power as part of their core business or that do not have the financial liquidity to set up a solar power plant to fulfill their SPO. colleges. Unlike the recently announced Andhra Pradesh solar policy.producers will have to install a separate meter to measure power generation.000 MW from the fulfillment of SPO. industrial consumers guaranteed with 24/7 power supply. Any provision of penalty for not meeting such obligations is not highlighted in the policy document. buy RECs or buy solar power from the state distribution companies at the solar tariff. Therefore. The remaining 300 MW under the rooftop installations is expected to come from government buildings and other government schemes for rural and urban lighting. 000 MW on January 4th 2013 and received 92 applications for 104 projects. Establishment of TEDA The Government of Tamil Nadu realized the importance and need for renewable energy. Solar. 5. The Government intends to make renewable energy a people’s movement just like rain water harvesting. dated 29. Tamil Nadu Overview The Government of Tamil Nadu is committed to mitigate the climate change effects by bringing out policies conducive to promote renewable energy generation in the State.. This was the first time a public tender for FiT based allocation The lowest bid was Rs. Biomass.1984 with the following specific objectives:1 To promote the use of new and renewable sources of energy (NRSE) and to . as registered society.driven in sync with the national REC. totaling a capacity of only 499 MW. (EC) Department.No. Wind.13)/kWh (at an annual escalation of 5% for the first 10 years of the 20 year PPA) at which developers would be comfortable singing a PPA.Ms. Municipal and Industrial wastes could also be useful sources of energy while ensuring safe disposal. etc. Tamil Nadu issued an expression of interest for 1.O. New interests that have come in after the bidding process have helped take the capacity up to this level.11. As this was deemed unworkable by many project developers the state decided to provide a ‘workable tariff’ of Rs.12)/kWh (at an annual escalation of 5% for the first 10 years of the 20 year PPA). Small Hydro. and set up a separate Agency. called the Tamil Nadu Energy Development Agency (TEDA) as early as 1985.97(€ 0.163.10/$ 0. The state is blessed with various forms of renewable energy sources viz.as per G.48 (€ 0. & D.09/$ 0. P. Biogas. The key reason for the unexpected increase in capacity is the new interest for two projects of 100 MW each. a capacity of 690 MW has been tied up for. Renewable Energy (RE) sources provide a viable option for on/off grid electrification & wide industrial applications. 6. At this tariff. 3 To encourage research and development on renewable sources of energy. Renewable Energy Installations Renewable Energy Program/Cumulative achievement Systems 08.39M up to .2%) Nuclear 5.implement projects therefore.2016 (MW) Wind Power 7506.2015) Thermal 1.40 Biomass Power 230.12.26 Total 8825.44M W Hydro 42.415.00 Solar Power (SPV) 429.02.623.00 MW TOTAL 2.98.41 Bagasse Cogeneration 659.303.84.780.42 MW Renewable 37.53 MW (13. 2 To promote energy conservation activities.484.07 India (31. 00 Karnataka 104.03 0.03 200.041 Chhattisgarh 73.34 0.00 Delhi 6.10 357.7 Odisha 66.75 678. State wise installed solar power State Andaman & Nicobar Andhra Pradesh Arunachal Pradesh MW 5.075 MW Nuclear 524 MW TOTAL 21.80 Jharkhand 16.58 Maharashtra 383.27 Chandigarh 5.06.15 Haryana 12.182 MW Renewable (12%) 8.18 Daman & Diu 4.192 MW http://teda.35 Tamil Nadu 418.2014) Thermal 10.39 5.945 Telangana Tripura 342.22 Kerala Lakshadweep Madhya Pradesh 12.71 Gujarat 1024.W Tamilnadu (30.in/ Future of solar parks.92 Puducherry Punjab 0.00 .411 MW Hydro 2.32 Rajasthan 1264. rain etc Solar irradiation data of different cities in Tamilnadu Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Avg . pollution norms. restrictions. humidity.Uttar Pradesh 140 Uttarakhand 5. comments on acceptability of the project Temp.79 Total 5129 Demography. income per capita. social issues and economic status.21 Others 0.00 West Bengal 7. sunlight. 05 4.42 5.66 5.38 4.74 4.92 5.12 4.6 5.92 4.68 6.18 4.4 4.63 4.56 6.06 5.22 4.32 3. No.59 5.3 5.94 4.06 5.71 4.85 5.84 5.93 Thanjav 4.02 4.19 4.89 5.94 4.75 4.6 5.47 4.04 5.01 5.25 4.12 4.85 5.49 n 6.7 5.04 4.37 3.12 4.03 Pondy 4. 25 lakhs for preparing DPR.21 4.52 4.76 6.58 6.7 5.68 5.08 5.44 5.56 6.Ambatt 4.07 Salem 4.37 5.63 4.68 6.3 4.07 5.12 4.13 5.66 5.12 ur Trichy 4.86 4.42 5.1 Teni 4.29 6.26 4.05 4.79 5.33 4.41 6.4 Scale of the project and Resource Requirements in terms of Land and Capital Write their key particulars such as land parcel size.21 5.06 5.71 4.23 5.21 5.83 6.52 6.39 5. the implementing agency may apply for a grant of Rs.02 4.87 5.24 4.71 4. 1 approval .1.16 4.94 4.89 5.54 4.17 5.03 5.84 5.85 6.87 5.79 5.41 4.94 5.63 4.62 5. Thereafter it will send a proposal to MNRE for approval.56 6.02 4.47 5.75 5. watts of power etc The State Government will identify the nodal agency for the solar park and will also identify the land for proposed solar park.59 6.42 4.14 5.53 5.44 6.76 5. conducting surveys etc.25 5.06 5.22 4.37 4.05 r Tuticori 4.61 6 5.20 lakhs/MW or 30% of the project cost including grid connectivity cost whichever is lower.56 4.15 4.59 6. which will be released as per the following timelines: Milestone Timeline % of subsidy disbursed Date of issue of administrative Day 0 5% S.65 5.06 4.18 4.61 6 5.16 ur Avadi Madurai 4.85 5.88 5.05 4.32 4.61 6 5.06 5.55 4.08 4.13 Tirunelv 4.89 4.46 3.32 4.16 Chennai 4.93 4.83 6.89 5.08 4.89 5.99 5.37 4.1 5.45 4.83 6.37 4. Thereafter application may be made for the grant at the rate of up to Rs.92 5. After the solar park is approved by MNRE.18 5.53 4.7 4.78 6.85 eli Tiruppu 5. size of individual units. no of Solar power developer projects.28 5.21 5. . in Crores) (i) Cost of 20.00 amount (iii) Cost of DPR preparation etc.000 MW @ Rs.00 (ii) 1% fund handling fee for SECI on above 40. If the park is developed in phases.25 al Transmission and evacuation of power from solar park Interconnection of each plot with pooling stations through 66 KV /other suitable voltage underground or overhead cable will be the responsibility of the solar project developer. grant will also be phased out in proportion to expenditure in each phase. of Land Pooling Development and other Common facilities as per DPR 5 Transmission line and Grid Connectivity 6 Final installment on completion The grant will be managed and released by SECI on behalf of MNRE for which SECI will be given a fund handling fee of 1%. Based on above.20 Lacs/MW 4000. 25 Lacs each park 6.25 Tot 4046. the estimated cost has been worked as under:(Rs. for 25 Solar Parks @ Rs.2 Land acquisition (50% land 5 months 20% 8 months 20% 15 months 25% - 20% - 10% acquired) 3 Financial Closure 4 Construction Substation. preference will be given to STU. Power Grid may prepare a separate project to be funded from NCEF / external funds / Green Corridor project.The designated nodal agency will set up the pooling stations (with 400/220. the whole solar power evacuation network scheme may be designed using latest technologies . The system would be planned in such a manner so that there is no wheeling charge applicable on solar power in accordance with the CERC Regulation in this regard or they are very low. 220/66 KV or as may be suitable switchyard and respective transformers) inside the solar park and will also draw transmission to transmit power to 220 KV/400 KV sub-station. For setting up of this transmission & evacuation infrastructure. The responsibility of setting up a sub-station nearby the solar park to take power from one or more pooling stations will lie with the central transmission utility (CTU) or the State transmission utility (STU). which will ensure setting up of sub-station and development of necessary infrastructure for transmission of power from substation to load centres. if the cost is very high. then CTU may be entrusted with the responsibility of setting up 400 KV substation right next to the solar park and its connectivity with the CTU. after following necessary technical and commercial procedures as stipulated in the various regulations notified by the central/state Commission. If the state government is willing to buy substantial part of the power generated in the solar park. To build this infrastructure using the highest possible standards. If the state is not willing to buy substantial power generated in the solar park. The developer will be free to set up projects under any scheme or for third party sale. Loan MNRE will also put in efforts to tie up with multilateral/ bilateral funding agencies to finance the entire or a part of the cost of the solar parks. OPGW.like SCADA. Power sale arrangement Acceptance for development of solar park under the scheme does not guarantee Power purchase agreement (PPA) or a tariff for the power to be produced. Funding Connectivity The connectivity with grid i.e. The loan from multilateral or bilateral agencies may also have a component to fund connectivity. Green Corridor Program or any other source. existing network will be an important component. money out of the MNRE grant may be used. If the expenditure is high than a separate proposal may also be considered for funding from NCEF. GIS. The loan tenure and the moratorium period will be set in accordance with the banks’ terms and conditions while the annual interest will be set in accordance with banks’ LIBOR-based lending facility. . 220/400 KV substation and transmission line to connect with CTU / STU’s. The MNRE grant will be treated as the developers' contribution to get this loan. Online monitoring equipment for dissolved gas analysis. Bay controller. PLCC etc. For the same. The project developers have his own arrangements for a PPA or get selected in any Government of India or State Government scheme. 5 Primary Analysis for potential investors .in 6. Essel Group Reliance Group IREDA Power Finance Corporation Limited PE Climate Change Capital IDFC Private Equity Nereus Capital SBI Macquarie Infrastructure India Financers Headway Solar Solarsis Starling Solar Selco .Equity Contribution Minimum up front equity will be required to setup the implementing agency as most of the costs will be covered through MNRE grant and loan.PE/Joint venture /financiers Write their prime contractors.1. JV partners etc. The surplus money that will accrue from sale may be converted into equity of promoters so that the implementing agency gets a financial strength for long term sustenance. collaborators. mnre.gov. The expenses on land can be recovered and paid from sale proceeds gradually. Most of the land is expected to be Government Land. technology companies. Fourth Partner Energy Solar project developer in India Adani Power AES solar energy Andhra Pradesh Power Generation Corporation Andromeda Energy Tech APCA Power Chandraleela Power Energy Chhattisgarh Investments Dr. Babasaheb Ambedkar Sahakari Sakhar Karkhana Essar Power Essel Infra projects GAIL Gujarat Industries Power Company Gujarat Mineral Development Corporation Gujarat Power Corporation India Solar Ray Power Indian Oil Corporation Karnataka Power Corporation Konark Gujarat PV Pvt. the renewable power space saw 14 deals worth $298 million during CY2014 till May . Is evaluating the possibility of investing around $100 million in renewable power projects of Greenko Group. According to VccEdge. Lanco Maharashtra state power generation Moser Baer Energy & Developoment Punj Llyod Raajratna Energy Holdings Reliance Tata Power Welspun Yantra eSolarIndia US-based private equity firm KKR and Co. a UK-based group that has power projects in India. CASE 1: IF CUF =19% EPC COST L&T PROJECT IRR EQUITY IRR INR LAKH/MW % % DSCR LEVELISED COST OF TARIFF (INR/KWH) 650 10 14 0. According to the 12 th Five Year Plan document.05 . solar).46 DSCR LEVELISED CASE 2: IF CUF=20% EPC COST L&T PROJECT IRR EQUITY IRR INR LAKH/MW % % COST OF TARIFF (INR/KWH) 650 10 16 0. During the 12th Five Year Plan.003 crore (Gross Budgetary Support (GBS) 19.000 MW has been planned. favorable Government's initiatives and reduction in prices (in solar PV panels). GE Energy Financial Services plans to invest $24 million in a solar power project in Madhya Pradesh.80.2 lakh crore during the 12th plan.80 9. `5. which leaves a huge portion of private sector investments of 2.85 8. 6.1. The renewable energy space offers tremendous amount of opportunity due to various factors like no dependency on fuel (wind. renewable power capacity addition of 30.198 crore.90 8.2014 against 32 private equity (PE) and merger &acquisition (M&A) deals worth $1. Out of this `33.288 million during CY2013 General Electric Co's unit.48/unit with 5% escalation for ten years.113 + Internal and Extra Budgetary Resources (IEBR) of 13. the projected investments in the renewable energy sector are estimated to be around `3.890) are expected to come from Centre as an outlay for MNRE during the 12th plan.6 Indicative financial viability (RoI or IRR) TAMILNADU: Preferential Tariff INR 6.96 750 8 11 0.46 700 9 12 0. Key drivers for PE investments in Renewable Energy in India India's 12th Five Year Plan sets an ambitious target for the development of renewable energy in the country.95 8.425 crore is expected from States. 9.94 8. 3. 35 lakh) EMI for balance 50% Rs 42 000/equity/borrowing (12%. 8. Parameter Capacity (in kWp) Cost (in Rs) Equity by developer (20%) Borrowing from other Value 100 75 lakh 14 lakh + 21 lakh loan from other sources. Rs. It could be SBI’s 4.553/developer . 10.56 lakh year @Rs. 11. Rs.12 Cost Economies of 100kwp Grid Connected Rooftop Solar Project S. 15 yr.447/developer Net saving per month to Rs.62 year EMI for world Bank/ADB Rs Rs. loan normal lending to 35 lakh year Revenue generation per Rs 10. 7.52 750 9 12 0.04 per unit * (CERC rate for 2015-16) Revenue generation per Rs.447/ 33 447/(8%. 2.00 DSCR LEVELISED CASE3: IF CUF= 21% EPC COST L&T PROJECT IRR EQUITY IRR INR LAKH/MW % % COST OF TARIFF (INR/KWH) 650 11 17 1 7. 12.84 9. 88.89 8.50 lakh unit 6. 15 yr. 000/month Simple payback period (2÷6) 6. sources (30%) World Bank 5. 12. 35 lakh) Total EMI payment by Rs. 75. 33.7.700 10 14 0. developer (50%) Electricity generation per 1.67 700 10 15 0.No 1. all necessary approvals/agreements before start of Solar PV project construction are to be furnished as and when necessary.1. Copy of PPA (important as Preferential PPA projects are not eligible for REC mechanism) Proposed Model and make of plant equipment Undertaking for compliance with the usage of fossil fuel criteria as specified by MNRE Details of Connectivity with DISCOM Connectivity Diagram and Single Line Diagram of Plant http://efficientcarbon. These include the following: Land purchase Power Evacuation arrangement permission letter from DISCOM Confirmation of Metering Arrangement and location ABT meter type.10SWOT analysis .7 Implementation and Time division aspects of the project 6. Model. as it locks away capital for a long time No clarity on the revenue model for solar park developers 6.1. till which park cannot be used Private players are not interested too much in setting up solar parks. Serial No. details for Energy Metering.8 Risk Factors Write their problem areas that require solution.Source Ministry of New and Renewable Energy (MNRE) 6. Auditor compliance certificate regarding fossil fuel utilization Approval from Chief Electrical Inspector Clearance from Forest department Also.com/services/energy/renewable-energy-advisory 6.9 List of regulatory approvals Industrial Clearance Land conversion (Agricultural to Non-Agricultural) Environmental Clearance Certificate Contract labour license from Labour Department Fire Safety certificate from Fire Department Latest tax receipt from the Municipal/Gram Panchayat for the factory land. High charges imposed by solar park developers defeating its entire purpose Transmission facilities being only set up in 2-3 years.1.1. Manufacture. 2. 2. Opportunities: 1. High growth industry with significant future potential. 3. Entirely new opportunities could open up as there is high innovation in technology. 2.1. The capital intensive nature of the business might favour larger businesses over smaller ones. 4. 3. so finding skilled workforce could be a problem.com/pdf/lsi-research/SOLAR-ENERGY 6. Availability of Government Incentives for growth and expansion. therefore achieving solar targets could be difficult despite scaling up due to the 'spike and ebb effect '(of day and night). Industry is new. Owing to high capital costs. 3. Sunlight is available in sufficient quantity in many regions. 4. The large scale up of capacity could face distribution and evacuation challenges due to inability to scale up transmission on a similar scale. www. the business needs external incentives to be economically feasible. 2.Strengths: 1. Government's ambitious target and attractive policies open up many avenues for investment. not just for power plants. Opportunities exist all along the solar PV business value chain.lsifinance. Proven technology with low operation & maintenance cost. Solar panels work only at 22 percent efficiency. Off-peak season reduces cash flow. thus increasing dependence on Governmental policies. especially with reduction in costs in Future. 3. Weakness: 1. The distributed and intermittent nature of solar energy makes it difficult for utilities to rely on Solar PV for their base load. Threats: 1.11 PESTLE Analysis Political - . which is also scalable. In the field of solar energy production some large scale projects have been proposed and a 35.India was the first country in the world to set up a ministry of non-conventional energy resources. To promote electricity generation using solar energy Government of India launched Jawaharlal Nehru National Solar Mission in January 2010. The list below gives models approved by MNRE: Environment The construction and operation of solar parks has negative impact on the environment. such as grazing. Installing a solar farm has an adverse ecological impact and can affect the rainfall and the drainage of a region. Production of these panels consumes substantial amounts of energy and produces waste water and hazardous by-products. Only the models approved by MNRE are eligible to be covered under the scheme. The concern point is that the silver used in the module is leftover and also considered a dangerous waste. The scheme last modified on 15th March 2012 provides 40% subsidy on capital costs of Solar PV Systems for units located in both urban and rural areas in India. The major drawbacks of constructing a solar farm are that it affects existing land uses. in early 1980s. which are released in air during the manufacturing process. agriculture . 4 GW would fall under the central scheme and the remaining 6 GW under various State specific schemes. The Government has initiated a subsidy scheme to help individuals and organizations procure these Solar Energy Systems at reduced capital costs. A PV contribution of five percent of the current world electricity production would require about 50 percent of current silver production.000 km2 area of the Thar Desert has been set aside for solar power projects. The Government aims to install 10GW of Solar Power and of this 10 GW target. India already becomes a leader in wind power production. Solar energy is considered a sustainable energy supply technology however. therefore. the investment opportunities which these technologies are likely to create and the overall market development scenario. and connection to the utility grid is made through a high voltage. For several years. worldwide cumulative CSP-capacity reached 3. the CSP market is estimated to be worth over a billion dollars. and to a growing number of countries and regions all over the world. Reducing the use of silver content in the modules would also be a significant step. Such systems can achieve up to 35% peak and 25% annual solar electric efficiency. three phase step up transformer of typically 10 kV and above. While tracking improves the overall performance. These technologies harness concentrated sunlight to generate electricity. The parabolic trough technology is currently the most proven CSP technology and. Over 300 MW capacity CST power projects have been announced by various companies in the coming decade. As of the end of 2013. In the coming decade. it also increases the system's installation and maintenance cost. Hence. worldwide growth of solar PV was driven by European deployment. concentrating solar power (CSP) technologies are on the verge of large scale global deployment. the production technology for solar modules requires relatively high energy outputs. Worldwide growth of photovoltaic has averaged 40% per year since 2000 and total installed capacity reached 139 GW at the end of 2013. The compact linear fresnel reflector system is similar to the parabolic trough collector system. They can either be fixed tilt or use a single axis or dual axis solar tracker. A solar inverter converts the array's power output from DC to AC. but it has shifted to Asia. increasing its capacity nearly tenfold from 2004 to 2013. the most developed and standardized. especially China and Japan. Central receiver technology is also well proven. The Government of India too has identified solar power as an important renewable energy resource and its commitment to develop solar power is reflected in the ‘National Action Plan for Climate Change’ wherein it has announced the ‘National Solar Mission’ as one of the eight missions to combat the challenges of climate change.425 MW. Technological Amid the growing demand for sustainable energy. Central receiver systems use a field of distributed mirrors which individually track the sun and focus the sunlight on the top of a tower. Good maintenance practices and proper planning can certainly help to minimize the negative impacts of producing solar panels by using hazardous material.and minerals production and also affects areas of critical environmental concern or special recreation management areas. Most solar parks are ground mounted PV systems. It consists of an array of nearly-flat reflectors which concentrates solar radiation onto an elevated . Innovative production technologies for PV modules would help to lower the environmental impacts by efficiently utilizing silicon in modules and recycling it. Concentrated solar power (CSP) also started to grow rapidly. it is important to understand the market readiness of different CSP technologies. Solar power plants use one of two technologies: Photovoltaic (PV) systems use solar panels. Under this scheme. Every state to come up with rural electrification plan mapping details of electricity delivery mechanism that may be linked to district development plans and this has to be intimated to appropriate commission. converts sunlight directly into electric power. The dishes are usually designed to track the Sun along two axis to get reflect the sun beam on point of focus. For remote villages where grid electrification is not feasible. LegalIndia has started emphasizing power generation from renewable sources that is either grid interactive or off grid. projects could be financed with 90% capital subsidy. The technology is seen as a potentially low-cost alternative to trough technology for the production of solar process heat. Water flows through the receiver and is converted into steam. bulk power purchase & management of local distribution. The solar PTC-based solar thermal power plant was estimated to cost Rs 202150/kW and power tower-based solar thermal power plant Rs 235877/kW.inverted linear receiver. The parabolic dish-shaped reflector concentrates sunlight on to a receiver located at the focal point of the dish. In order to achieve a sustainable development path that simultaneously advances economic and environmental objectives the National Action Plan for Climate Change (NAPCC) was framed. off-grid based solutions based on standalone systems to be taken up for supply of electricity. The solar PTC-based solar thermal power plant was estimated to cost Rs 202150/kW and power towerbased solar thermal power plant Rs 235877/kW. Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY) – This scheme is being implemented by Rural Electrification Corporation for permitting stand alone systems. Concentrated solar power plants use solar thermal energy to make steam that is thereafter converted into electricity by a turbine. Policies supporting Grid-Interactive renewable power Access to quality and reliable electricity at reliable rates and minimum lifeline consumption of 1unit/household/day by year 2012. A cost break-up of the trough and power tower technologies was undertaken. either on rooftops or in ground-mounted solar farms. Policies supporting Off-Grid renewable power- . rural electrification. Special Area Demonstration Project ProgrammeThe Special Area Demonstration Project Scheme of the MNRE has been introduced with an objective of demonstrating application of various Renewable Energy systems in a project mode at places of National and international importance.Remote Village Electrification ProgrammeThe decision for choosing particular technology for power generation in such remote areas is taken by state implementation agency after examination of technical feasibility and resource availability. The projects are eligible for central financial assistance and developers can propose projects under the format specified in the policy document. State Gujarat Target PV- 365MW Rajasthan Thermal- Karnataka 2013 2017 350MW Thermal 2-25MW Capacity Operative (40MW annually) PV Project 200MW 150 200 MW MW 150 200 MW MW PV: 5-10 MW. PV: 3-10 MW. Renewable Energy for Urban. competitive based bidding . Gujarat and Karnataka have come up with their separate solar policy. State Government Three state governments: Rajasthan.Demonstration of Renewable Energy Systems at Prominent Places and the Energy Park scheme. Thermal : 5-50 MW Thermal: Min 5 MW 30/03/2014 31/03/2016 Period Sale of 25 years 25 years 25 years of PV Tariff based competitive bidding Tariff Power Period Sale Power Tariff Year1-12: Rs. The SADP Scheme is being implemented into two parts. Summary of three state’s solar policy is given here. The project is under demonstration mode for 30 target villages in Chhattisgarh. Renewable Energy Supply for Rural Areas This scheme was framed with the objective of developing and demonstrating commercially viable models for de-centralized energy supply in rural areas from renewable sources. industrial and commercial wastes and Bioenergy and cogeneration in industry. Industrial and Commercial Applications The programmes implemented under this scheme are working for developing: Solar energy systems and devices Energy recovery from urban. It hides the real cost to society to interest people in buying them.15. . It’s a lot more expensive to burn coal over a long time.00 with base price @ Rs. It requires expensive PV (photo-voltaic) panels which have a working life of only 10 to 20 years. 5. 10.12 Recommendation Electricity consumption in India has been increasing at one of the fastest rates in . Social Energy is a basic requirement of society and a basic requirement for individual life. Building the structures to harness the natural power will be expensive given its new tech and there will be issues about where to build etc but in the long run companies building these stations will make more money than they are now. Year 13-25: Rs. 3.00/12. Taxpayers still pay the real cost indirectly. 6.00/3. In order to have continuous power from solar energy. Rising energy costs are forced global leaders to research alternatives and provide the funding to make changes. Each battery is expensive and you need a large number of them to store enough power for household or business use. Currently people avoid the need for battery storage of solar power by using mains electricity for heavy appliances. Everyday people will benefit too from a cheaper bill every month. That is why solar power is so heavily subsidized by governments.00 Power 66kV 33kV and above 11kV and above Current PPAs signed for about Allotment in progress Allotment in progress Status 1200 MW Evacuation Economical Solar energy is expensive to install.00/3.50 /kWh (max) Thermal Year 1-12: Rs. The energy crisis is going to take a lot of social action with government support.1. Solar energy technology is a very inefficient form of energy conversion which makes its cost too high. At the beginning few people have installed solar power the subsidy is less noticeably but when a larger number of people start using solar energy the cost to each taxpayer will become greater and effectively everyone will each be paying closer to the real price. which means new ones must be bought at intervals. you need storage batteries.00/9.00 14. Solar energy is expensive to install. Issues like global warming are becoming mainstream reality and causing worldwide concerns about pollution and consumption.00 Year 13-25: Rs. interest has shifted towards renewable sources of energy. In a further boost to the Green Energy Power Sector major commitments. In the latest budget. 271 . Solar energy is the prime free source of inexhaustible energy available to mankind and the geographical position of India makes it a sunlight rich country. It can thus be said that the sun will continue to power the economic and energy growth in the current millennium. provided. Tamil Nadu and Ladakh. Further. Solar power-driven agricultural water pumping stations and 1 MW solar parks on canal banks will also be developed in the country at an estimated cost of approximately Rs.000 TWh of solar insolation every year. Over the next few years. solar power will gain significant importance in India's energy mix owing to. blessed with about 5. This is compounded by the fact that the power sector continues its struggle to meet power generation goals as conventional sources. Even if a tenth of this potential can be utilised. reduce its trade deficits and propel it forward as a “Green Nation. it could mark the end of India's power problems by judiciously using the country's deserts and farmland to construct solar plants. Such chronic lack of energy and unreliable supplies threaten India's economic growth.” Solar energy has the potential to reduce the current energy peak deficit significantly and improve delivery due to its distributed nature. the Government has proposed an amount of Rs. has not been able to keep up with the country's ever-increasing demand. Andhra Pradesh. both financial viability and availability perspectives along with proper channelization of the energy produced. Rajasthan. India's economy faces increasing challenges because energy supply is struggling to keep pace with demand and there is energy shortage almost everywhere in the country. it gets the appropriate financial support from the Centre as well as the States. the National Solar Mission is also a positive step in the endeavor towards a solar energy driven nation. At the same time. India is slowly gaining prominence in the generation of solar power due to the comprehensive and ambitious solar policies and projects being undertaken by the Centre and states. 111 crore. respectively. allowing the country to achieve energy independence. renewable energy also has the potential to re-energise India's economy by creating millions of new jobs.the world due to population growth and economic development. 444 crore and Rs.500 crore to develop some mega solar power plants in Gujarat. especially coal. As a result. 52. . 3. with commitment to Green Energy flagged at Rs. Considering all these facts. Availability of finance for the Green Energy sector which is normally perceived to be a big hindrance to the sector. the commitments and hopes for a smooth execution of these plans. has also been addressed by various Banks and FIs. It is expected that a substantial portion of these Green Energy commitments will be channelized towards the Solar Power Sector.GW in terms of capacity. we expect India to be a leading solar power driven country in the world sooner rather than later.640 Crore for installation of about 71 GW of capacity during the conference. the plans. were received from various international and domestic companies in addition to the PSUs and the Railways.