State of heart state policies for solar pvPresentation Transcript
State of (the) Heart?How Good are the State Initiatives & Plans for Solar Nov 10,2011, SolarCon, Hyderabad Narasimhan Santhanam, EAI
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State Policies - Raison dêtre• Sun is the same – but its shine is different• Local control = Faster & easier implementation• “Policy proximity” – tailored to off-grid realities
Getting the Best from States …by alleviating concerns• How serious are the state governments?• Who’s going to pay?• How transparent is the process?• Will the next government pull the rug?• Are states building ecosystems?
Policy Snapshot JNNSM Gujarat * Rajasthan KarnatakaTargets 20 GW by 2022 1 GW by 2012 & 3 GW (in 10–12 GW (in 12 350 MW by 2015 -2016 next 5 years) years)Timelines Phase 1(2012-13) 300 MW (Grid Connected) Phase 1: 200 MW (PV) up 126 MW by 2013 - 2014 by DEC 2011 to 2013 Phase 2(2013 -17) 40 MW per year till 2016 Phase 2: 400 MW (2013- Phase 3(2017 -22) 2017)Local Content Applicable for c-Si None None; But incentives None Modules and Cells; for local mfg Not applicable for TFFeed-in-Tariff Reverse Bidding : Rs. 15/kWh (1st 12 years) Decided through Up to 200 MW. Reverse Rs. 5/kWh (13th to 25th Reverse Bidding. Base Bidding with base Round 1 -Solar PV year) Prices: price @ Rs. 10.9 - 12.75/kWh Rs. 15.32/kWh (Without Rs. 14.50 /kWh (max) AD) Rs. 13.39/kWh (with AD)Current Status Phase 1 : 150 MW PV PPAs signed for about Allotment in progress Allotment in progress allotted; 350 MW by end 1200 MW of 2011* New draft policy under consideration
State Policies - Common– Fixed targets– Phased capacity allocation– No local content requirements– Equal importance for both CSP and PV
State Policies - Differences– Scale – Rajasthan has much higher targets– Only Rajasthan encourages indigenous manufacture via incentives (NOT mandates)– Gujarat stipulates fixed tariffs and not through reverse bidding.– Proposed targets fluctuate, with Gujarat being the most aggressive
Off-grid Status Source: MNRETotal Capacity Sanctioned – 40,402 kW (2010)Total CFA Released – About Rs. 280 Crores
Off-grid Support Eligibility Scale of Subsidy Entity Capacity Subsidy Capital Subsidy (Based on benchmarking annually)1 Individuals 2010-11 Proposed (2012 Onwards)*A All applications except 1B 1 kWp With battery Capital Subsidy Rs.90/Wp Rs. 81/Wp storage Pumps for irrigation and & community Without batteryB 5 kWp Interest Subsidy Rs.70/Wp Rs. 57/Wp storage drinking water Scale of Interest Subsidy2 Non-commercial entities 100 kWp per On the amount ofA All applications except 2B project cost site Capital Subsidy & Soft loan @ 5% Less promoters’ 250 kWp per p.a. contributionB Mini-grids Interest Subsidy site Less capital subsidy3 Industrial/Commercial entities amount 100 kWp perA All applications except 3 B site Capital Subsidy or * - 10% reduction each year subject to review of benchmark Mini-grids for rural 250 kWp per costsB Interest Subsidy electrification site Source: MNRE Source: MNRE
Means and...EndsConcern Grid connected Off gridHow serious are they? Too early to say Intentions clear, execution not yet seenWho is going to pay? Big question! ClearHow transparent are they? Good and bad No problemsWill the next govt pull the Not sure No problemsplug?Are states building Yes and No Noecosystems?
State of the Heart• Unstable, Treatment Required – Put systems to guarantee policy & incentive stability and continuity – Align policies with RPOs – Get experts to frame policies and for execution – Start building ecosystems, even if gradually