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Solar policys in india and state comparison


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  • 1. Solar Policies of States in India and its Comparison Nilesh Dayalapwar Symbiosis (SIIB)
  • 2. Solar & Electrification Policies Overview 1974-79 Minimum Needs Program: 60% of villages to be electrified under REC. 1988-89 Kutir Jyoti Scheme: Single point light connections to households Below Poverty Line. 2006- REC Policy, 2007 – Semiconductor Policy. 2005 Rajiv Gandhi Vidyuktikaran Yogana: Major initiative towards Universal electrification 90% Central Govt 10% REC to State Govt. 2009 Nov Jawaharlal Nehru National Solar Mission(JNNSM): 20000 MW by 2020. 2009 Dec CERC: Announces tariff for Renewable power generation for a period of 25 years. 2010 June: JNNSM Launch target to be achieved by end of13th Five year plan. Guidelines for Off grid and decentralised Solar Applications. 2010 Sept: Tariffs for Solar projects where PPA’s after 31st Mar’11 to rs 15.39 for PV and rs 15.04 for Solar thermal Projects.
  • 3. National Solar Mission • Major initiative of Central Government to promote Ecologically sustainable growth also keeping in mind the country Energy Security Challenge. • Its planned for a 50% distribution of Photovoltaic and the remaining for Concentrated Solar Thermal Power. • JNNSM • Evaluated after each phase on the basis of local and global  Capacity  Targets  Emerging costs  Technology PHASE 1 2012 – 13 1200MW PHASE 2 2013 – 17 9000MW PHASE 3 2017 – 22 20000MW
  • 4. JNNSM
  • 5. Objectives of JNNSM The major objective is to create an enabling environment for solar technology penetration in the country at a Centralized and De- Centralized level. Comprehensive framework for development of solar power in India.Covers both solar power generation as well as manufacturing. Incorporates specific fiscal / monetary incentives. Installed solar power generation capacity of 20 GW by 2020; 100 GW by 2030 and 200 GW by 2050. To achieve grid parity by 2020. To achieve parity with coal-based thermal power generation by 2030. 4-5 GW of installed solar manufacturing capacity by 2017. 20 mn solar lighting systems for rural areas by 2022. 2000MW by creating off grid applications.
  • 6. STATES POLICY LAUNCH INSTALLED CAPACITY (MW) PROJECTED CAPACITY (MW) SOLAR INSOLATION KWh/m2 GUJARAT 2009 856.81 117 6-7 RAJASTHAN 2011 608.5 12000 YR_2021 6.5-7 MAHARSTRA 2011 28.8 500 YR_2016 5.5 -6 TAMILNADU 2012 21 3000 YR_2015 5 - 5.5 KARNATAKA 2011 24 200 YR_2016 5.2 – 5.6 UTTARPRADESH 2013 17 500 YR_2017 4.4 -5 BIHAR 2011 NA NA 4.4 -5 UTTARAKHAND 2012 5 0 4.4 -5 PUNJAB 2013 12 NA 4 -5 MADHYA PRADESH 2012 45 280 YR_2017 5- 6 KERALA 2013 0.025 0 5- 5.5 ANNDHRA PRADESH 2013 63 1000 – YR_ 2017 5.7
  • 7. STATES Tariff Structures (`/kwh) GUJARAT Levelized tariff for 25 years 9.28 `/kwh, 8.63`/kwh and 8.03`/kwh (12-13,13-14,14-15) RAJASTHAN 9.63 `/kwh, 8.43 `/kwhFormer without A.D, latter with A.D (Accelerated Depreciation ) 31-3-2014 MAHARSTRA 14.95 `/kwhfor Y’2010- Y’2011 TAMILNADU 5.78 `/kwh KARNATAKA 14.50 `/kwh, before 31-3-2013 UTTARPRADESH NA BIHAR UTTARAKHAND 8.69 `/kwh PUNJAB 8.75`/kwh and 7.87`/kwh – Before and after commissioned MADHYA PRADESH 10.44 `/kwh KERALA 17.91 `/kwh without A.D and 14.91`/kwh with A.D ANDHRA PRADESH 6.49`/kwh
  • 8. STATES FORECASTING AND SCHEDULING GUJARAT SPG based generation shall not be covered under scheduling procedure for Intra-state ABT RAJASTHAN The solar energy generated for sale will not be covered under scheduling procedure for Intra-state ABT MAHARSTRA NA TAMILNADU NA KARNATAKA NA UTTARPRADESH NA BIHAR NA UTTARAKHAND NA PUNJAB NA MADHYA PRADESH NA KERALA NA ANDHRA PRADESH NA
  • 9. STATES ELECTRICITY TAX GUJARAT Exempted from payment of electricity duty for sale through all modes. Exemption from demand cut to the extent of 50% of installed capacity . RAJASTHAN The energy consumed by the Power producers for own use will be exempted from payment of the electricity duty. MAHARSTRA NA TAMILNADU Exemption from electricity tax to the extent of 100% of electricity generated from solar power used for self consumption/sale to utility will be allowed for 5 years. KARNATAKA NA UTTARPRADESH NA BIHAR NA CHHATISGARH Incentives will be in force for a period of 7 years from the date of implementation of the project. PUNJAB NA MADHYA PRADESH Policy provides 10-year (from COD) exemption in electricity duty (including captive units), KERALA NA ANDHRA PRADESH NA
  • 10. STATES WHEELING CHARGES GUJARAT As determined by GERC from time to time. RAJASTHAN The energy consumed by the Power producers for own use will be exempted from payment of the electricity duty. MAHARSTRA NA TAMILNADU The wheeling and banking charges for wheeling of power generated from the Solar Power Projects, to the desired locations for captive use/third party sale within the State. KARNATAKA In case of captive power plants and projects for sale of power to third party other than ESCOMs, wheeling and open access charges determined by KERC. UTTARPRADESH NA BIHAR NA CHATTISGARH Shall be applicable based on the CSERC regulations. PUNJAB NA MADHYA PRADESH The policy provides a grant of 4% by the state under wheeling charges to all solar power projects. KERALA NA ANNDHRA PRADESH Producer will bear the wheeling and transmission losses as per
  • 12. WHY ROOFTOP SOLAR PV ? Benefits of RFPV: Lower T&D losses; low gestation time; No additional land requirement; local employment; Improvement in tail end voltages and reduction in system congestion. • India has very high T&D with around 25% (and R-APDRP is not yielding the results) • India has vast diesel back-up capacities for power outages and captive use. • Solar energy is already cost competetive with Commercial consumers of power in certain states of India. Distributed PV power generation makes sense in India BENEFITS TO CONSUMERS BENEFITS TO NATION Local, available power (higher supply security) Reduced diesel subsidy burden Hedge against rising power prices Increased energy independence Reduced LCOE (in some places) Pressure off distribution grids Green Power (Marketing Value) Reduced air pollution and CO2 emissions
  • 13. INDIAN EXPERIENCE AND INITIATIVES RFTV POTENTIAL – 20 GW TO 100 GW; JNNSM: FIT AND NET METERING State Policy Highlights W. Bengal Net metering for 2‐100kW, 16MW rooftop and small installations till 2017. Gujarat FIT/sale to utility model, 5MW rooftop in Gandhinagar, 5 more cities to follow (Bhavnagar, Mehsana, Rajkot, Surat, Vadodara). Kerala Off‐grid rooftop scheme (target 10,000 rooftops ~10 MW) with state capital subsidy. 1 kW panel + inverter+ 7200 Wh Battery bank. Consumers can choose from 14 empanelled companies Karnataka Net‐Metering, 250 MW till 2014 as mentioned in policy. First program in 5 cities. (Bangalore, Mysore, Mangalore, Hubli and Gulbarga) projects of two sizes – 0.5 kW (1297 nos) and 1 kW 646 nos) totalling to 1.3 MW. SECI Total allocation 10 MW – Delhi, Bhubaneswar (1 MW each), Gurgaon, Chhattisgarh, Bangalore, Chennai (2 MW each). System size – 100 ‐ 500 kWp, each bidder can bid between 250 kW and 2 MW capacity. 30% capital subsidy T. Nadu Generation Based Incentive model, 50 MW till 2015, details unclear.
  • 14. 24,867 17,061 16,891 13,654 11,217 8,071 7,931 7,149 6,435 4,759 2,875 2,631 2,232 778 436 126 0 5,000 10,000 15,000 20,000 25,000 30,000 Norway Canada UAE USA Australia Japan France Germany Russia S. Africa World Avg China Brazil India Pakistan Nigeria Kwh/annum India lacks significantly in Per Capita Consumption
  • 15. 7.7% 7% 3% 10.5% 5% 2% 5.80% 4.90% 6.70% 5.50% 9.00% 0.50% 3.30% 0.0% 5.0% 10.0% 15.0% Prime Lending Rates (2011) (%) 13% 13% 11% 9% 7% 9% 0 10 20 30 0% 5% 10% 15% Indian Commercial banks Indian Specialised IFCs NCDs Multi-lateral agencies ECAs ECBs Interest rate Repayment Years
  • 16.  Many consumer tariffs (in the highest use slab) are very close to solar costs; likely to increase further while solar costs decrease.  Align tariffs of high end usage to reflect solar costs to incentivize shift to rooftop PV, else support for utility finances.  Need for facilitating enabling eco‐system, instead of subsidising the system cost through capital subsidies and adding to the budgetary demand, policy should focus on removal of procedural hurdles, permitting, and other barriers, in order to facilitate the quick adoption and deployment of RTPV systems. WAY FORWARD
  • 17.  Proper Canal top solar policy.  Proper policy for establishing solar power plants on Ash Dykes.  Forum of Regulators: Recommend a set of standard guidelines (banking, metering, interconnection, agreements etc).  Ministry of New and Renewable Energy: National Net Metering policy and study to gauge solar RTPV potential in India.  Central Electricity Authority: Grid interconnection standards (finalised, to be notified by MoP).
  • 18. Interest Subsidy / VGF for Solar Farm; Rs 15 L/ year/MW (for 5-years) Higher number of RECs for Older Plants World Class R&D Centre - High efficiency Solar cells; Reduction in BOS & Tracking system costs Capital Subsidy / Incentives for domestic PV Mfg projects – to offset interest & power costs Domestic Content & ADD support for 2-3 years
  • 19.  It is therefore clear that the gaps in the prevailing policy are few but quite critical for effectively unleashing the solar potential in India.  The solutions are widely recognized and need to be prioritized so as not to lose the momentum created by the JNNSM and the state initiatives, and ensure that India emerges as the global destination for investment in solar energy.