JNNSM – Jawaharlal Nehru National Solar Mission
The Jawaharlal Nehru National Solar Mission, also known as National Solar Mission, is one of the eight key National Mission’s which comprise India’s National Action Plan on Climate Change (NAPCC). NAPCC was launched on 30th June 2008 which identified development of solar energy technologies in the country as a National Mission. The mission was approved on January 11, 2010 by the government. The Mission has set the ambitious target of deploying 20,000 MW of grid connected solar power by 2022, which was revised to 1,00,000 MW by 2022 during June 2015.
The objective of the National Solar Mission is to establish India as a global leader in solar energy, by creating the policy conditions for its diffusion across the country as quickly as possible.
The Mission will adopt a 3 – phase approach, Phase 1 (up to 2012 – 13), Phase 2 (2013 – 17) and Phase 3 (2017 – 22). The immediate aim of the Mission is to focus on setting up an enabling environment for solar technology penetration in the country both at a centralized and decentralized level. To achieve this, the Mission targets are following:
- To create an enabling policy framework for the deployment of 20,000 MW of solar power by 2022. The cumulative target has been revised to 1,00,000 MW by 2022. The target will principally comprise of 40 GW Rooftop and 60 GW through Large and Medium Scale Grid Connected Solar Power Projects.
- To ramp up capacity of grid connected solar power generation to 1000 MW within three years by 2013; an additional 3000 MW by 2017 through the mandatory use of the renewable purchase obligation by utilities backed with a preferential tariff. This capacity can be more than doubled reaching 10,000MW installed power by 2017 or more, based on the enhanced and enabled international finance and technology transfer. The ambitious target for 2022 of 20,000 MW or more, will be dependent on the learning of the first two phases, which if successful, could lead to conditions of grid-competitive solar power. The transition could be appropriately up scaled, based on availability of international finance and technology.
- To create favourable conditions for solar manufacturing capability, particularly solar thermal for indigenous production and market leadership.
- To promote programmes for off grid applications, reaching 1000 MW by 2017 and 2000 MW by 2022 .
- To achieve 15 million sq. meters solar thermal collector area by 2017 and 20 million by 2022.
- To deploy 20 million solar lighting systems for rural areas by 2022.
The Mission will encourage rooftop solar PV and other small solar power plants, connected to LT/11 KV grid, to replace conventional power and diesel-based generators. It is envisaged that distribution utility will pay the tariff determined by the State Electricity Regulatory Commission for the metered electricity generated from such applications (whether consumed by the grid connected owner of the rooftop/ground mounted installation or fed into the grid).
Under the Solar Mission, a normative Generation Based Incentive will be payable to the utility and would be derived as the difference between the solar tariff determined by the Central Electricity Regulatory Commission for the concerned solar generation technology less an assumed base price of Rs. 5.50/kWh with 3% annual escalation. Funds will be disbursed through Indian Renewable Energy Development Agency (IREDA), a PSU under MNRE. The distribution utilities will be entitled to account such electricity generated and consumed within their license areas for fulfillment of RPOs.The metering and billing arrangements between the utility and the rooftop PV operator, will be as per guidelines/regulations of the appropriate commission.
It is also recommended that custom duties and excise duties concessions/exemptions be made available on specific capital equipment, critical materials, components and project imports. To achieve the installed capacity target, the Mission recommends the following:
Local demand creation: The 20 GW plan supported with right level of incentives for solar generation coupled with large government pilot/demonstration programs will make the Indian market attractive for solar manufacturers
Financing & Incentives: SEZ like incentives to be provided to the manufacturing parks which may include:
- Zero import duty on capital equipment, raw materials and excise duty exemption
- Low interest rate loans, priority sector lending
- Incentives under Special Incentive Package (SIPs) policy to set up integrated manufacturing plants; (i) from poly silicon material to solar modules; and (ii) thin film based module manufacturing plants.
Under the SIP scheme of the Department of Information Technology, there are 15 applications in the domain of solar photovoltaic, which includes cell manufacturing, (both crystalline and thin film) and poly-silicon manufacturing among others. The combined capacity projected by these 15 companies could result in the production of 8-10 GW solar power by the year 2022 which would be sufficient for meeting the Mission targets even after accounting for exports.
It is also recommended that solar components be covered under the Bureau of Energy Efficiency’s star rating programme to ensure high standards. Similar incentives will be required for manufacture of CSP systems and their components. A Committee may be set up to formulate a policy for promotion of solar thermal manufacture in the country.