1. A Report on the Project entitled
" Tracing Solar Power Development in India: A Case of
Haryana State "
By
Yuvraj Saigal: 500100042
Under guidance of
Dr. Mohammed Yaqoot
(School Of Business)
UNIVERSITY OF PETROLEUM & ENERGY STUDIES
DEHRADUN, UTTARAKHAND
2nd
Semester Academic year: 2022-23
Masters of Business Administration
UNIVERSITY OF PETROLEUM & ENERGY STUDIES
DEHRADUN, UTTARAKHAND
2. ACKNOWLEDGEMENT
The bliss and the delight that accompanies the successful completion of our
project would be incomplete without expressing our sense of gratitude to many
people who helped us in all the possible ways.
It’s my incredible delight to thank our Vice Chancellor " Dr. Sunil Kumar Rai"
for providing us the academic environment which nurtured our practical skills
contributing to the success of our project.
With all humanity and civility, I am thankful to our course Co-ordinator "Dr.
Mohammed Yaqoot (Professor MBA-PM, UPES)" for his informative and the
most valuable guidance, in absence of which our project would be incomplete.
I am also thankful to all other teaching and non-teaching staff of our department
who supported me for the completion of this project. Finally, I wish to thank
everyone who directly and indirectly supported me.
3. CONTENTS
1. INTRODUCTION
2. CURRENT SCENERIO OF SOLAR POWER DEVELOPMENT IN INDIA
3. Haryana – POWER SECTOR OVERVIEW
4. MAJOR SOLAR PROGRAMMES OF Haryana
5. UPCOMING SOLAR PROJECTS AND FUTURE DEVELOPMENTS
6. OPPORTUNITY FOR SOLAR DEVELOPERS IN Haryana
7. CONCLUSION
4. Haryana current power generation Status-
India's government has set an ambitious goal of 100 GW of solar power
by 2022. According to the Haryana Department of Renewable Energy,
the state of Haryana has set a target of 3200 MW of solar power output
by 2021-22. Solar capacity built and operational in the state is now 73.27
MW.
The state government is providing 40% of benchmark cost as subsidy
for solar plants upto 3 Kw and 20% subsidy for solar plants b/w 3 Kw to
10 Kw under the scheme. The maximum subsidy per KWp is Rs. 20000
for all residential, institutional and social sector.
Apart from 30 % capital subsidy available to Solar Projects under MNRE
schemes, the State DISCOMS shall procure the solar power generated
at a fixed feed in tariff. During the tenure of this policy, State shall install
aggregate 50 MW capacity of roof top grid connected Solar Power
Plants.
Haryana Sets Levelized Tariff of ₹2.86/kWh for a 50 MW Solar Project.
The Haryana Electricity Regulatory Commission (HERC) has set a
levelized tariff of ₹2.86 (~$0.038)/kWh for a 50 MW solar project in
Haryana's Sirsa district.
5. Solar business status of Haryana-
There are several challenges for the solar business in Haryana. Some of
the major challenges are:
Land acquisition: One of the primary challenges for setting up solar
power plants in Haryana is acquiring the land required for the
installations. The process of land acquisition can be time-consuming and
expensive, and it can also face resistance from local communities.
Financing: Financing solar projects can be a challenge in Haryana, as
the cost of solar installations is relatively high compared to conventional
power sources. The availability of low-cost finance is limited, and high-
interest rates can increase the overall cost of the project.
Grid stability: The integration of solar power into the grid can be
challenging in Haryana due to the state's high peak load demand and
the intermittent nature of solar power. The grid infrastructure may require
upgrades to accommodate the additional solar power.
Policy uncertainty: The lack of consistent and clear policies related to
solar energy can hinder the growth of the solar business in Haryana.
Frequent changes in policies, regulations, and tariffs can create
uncertainty among investors and project developers.
Lack of skilled workforce: The solar business requires skilled personnel
for installation, operation, and maintenance of solar power plants.
However, there is a shortage of skilled workforce in Haryana, which can
lead to higher costs and project delays.
Weather conditions: Haryana experiences extreme weather conditions,
including high temperatures and dust storms, which can affect the
efficiency of solar panels and increase maintenance costs.
7. Haryana is a large agronomic state with abundant sunlight and biomass.
Solar panels are used in a solar power plant to generate electricity.
Haryana has a lot of potential for solar energy production because it has
almost 330 bright days a year. Correct incentives and policy assistance
from the government are critical in making this potential fully operational
and in use.
Policy Push to Solar
Although solar accounts for a small part of the state’s total power
generation capacity, Haryana is among India’s top ten states in terms of
solar capacity installed. Over the years, Haryana’s installed solar power
capacity has continuously increased. Rooftop solar installations make up
a significant amount of the state’s total solar capacity, accounting for 68
percent. The state’s total solar power capacity was 409 MW as of
February 2021.
Haryana’s New and Renewable Energy Department (HAREDA)
To encourage more people to adopt solar energy, Haryana’s New and
Renewable Energy Department (HAREDA) has developed the Haryana
Solar Power Policy, 2021. In addition to utility-scale solar projects and
parks, this strategy has placed a strong emphasis on rooftop solar
projects and small-scale distributed solar. The following are some of the
important highlights of the draught policy 2021:
Solar manufacturing units will be exempt from 10% of all relevant
taxes.
DISCOMs will pay for transmission lines with extra-high voltage
and high voltage up to a distance of ten kilometers.
In addition to DISCOM’s per-unit rates, charging electric vehicles
shall not cost more than Rs 5 per kWh.
Wheeling and transmission expenses will be waived for any
captive solar projects that have previously been approved.
The state would promote the notion of solar towns and solar
villages. In solar cities and solar villages, solar energy will meet
20% of the energy needs.
In metropolitan areas, virtual net metering, especially group virtual
net metering, may be promoted.
These regulations would be supported, and eligible consumers would be
aided, particularly those in Haryana’s metropolitan centers who face
challenges such as a lack of suitable rooftop space or inaccessible
8. rooftops. Consumers can own a piece of a communally owned solar
power-producing system through virtual net metering. Finally, solar
modules work best on slanting rooftops, particularly if the slope is south.
Because India is in the northern hemisphere, rooftop solar systems
facing south will get the most sunlight.
Opportunity for Solar Developers in Haryana
When it comes to solar energy production in North India, Haryana is one
of the fastest-growing states. India’s government has set an ambitious
goal of 100 GW of solar power by 2022.
According to the Haryana Department of Renewable Energy, the state of
Haryana has set a target of 3200 MW of solar power output by 2021-22.
Solar capacity built and operational in the state is now 73.27 MW.
The key commercials of Haryana are agriculture, food processing
industry, dairy, education, textile & cotton industry, plastic industry, IT,
other manufacturing, steel industry & many other small businesses, etc.
It means Haryana has lots of potential for solar developers. Let’s
analyze the state from the point of view of solar developers. The
complete state is divided into three segments:
9. For Residential & Agricultural
The energy consumption of this segment is less in comparison to the
other two segments. Up to 30kW solar solution is enough
for Residential & Agricultural.
Haryana’s population in 2020/2021 is 27.39 Million.
The total no of farmers is 635778 in Haryana.
For Small & Micro Businesses
The energy consumption of this segment is more than Residential &
Agricultural & lies up to 2000kW, so 200Kw solar solution is enough
for it.
Haryana has 154 cities and towns & 7,356
More than 5,37,677 enterprises registered. (till March 2020)
For Big Industries
The energy consumption of these industries is very big, so these
industries need 200 kW & more capacity of the solar solutions.
In Haryana, there are approx 1,11,407 manufacturing companies.
Now you can discover which category you fit into and pick where you
want to start your solar business.
10.
11. Future-
The future for the solar business in Haryana looks promising. The
state has set an ambitious target of achieving 4000 MW of installed
solar capacity by 2022, and several initiatives have been taken to
achieve this goal. Some of the factors that suggest a positive future
for the solar business in Haryana are:
Favorable policy environment: The Haryana government has
introduced several policies and incentives to promote the adoption
of solar energy. The state has a net-metering policy that allows
consumers to generate their own electricity and sell the excess
back to the grid. The government is also providing subsidies for
rooftop solar installations and offering tax exemptions for solar
power projects.
Strong demand for power: Haryana has a high demand for
electricity due to its growing industrial sector and increasing
population. Solar power can help meet this demand while reducing
dependence on fossil fuels and lowering carbon emissions.
Decreasing solar equipment costs: The cost of solar panels and
related equipment has been declining globally, making solar energy
more competitive with conventional power sources. This trend is
expected to continue, making solar energy increasingly cost-
effective in Haryana.
Increasing awareness and adoption: There is a growing awareness
among consumers and businesses in Haryana about the benefits of
solar energy. As more people adopt solar energy, the demand for
solar installations is expected to increase.
Availability of skilled workforce: The state government has
launched several skill development programs to train the workforce
in the solar sector. This is expected to address the shortage of
skilled personnel and support the growth of the solar business in
Haryana.
Overall, the future for the solar business in Haryana looks bright,
and the state has the potential to become a leading producer of
solar energy in the country.
12. Solar Cities
DEVELOPMENT OF SOLAR CITIES IN
HARYANA-
The Ministry of New and Renewable Energy, Government of India is
implementing a programme on Developing Solar Cities in the country
with the following objectives and activities:
OBJECTIVES
o To enable/empower Urban Local Governments to address energy
challenges at City-level.
o To provide a framework and support to prepare a Master Plan
including assessment of current energy situation, future demand and
action plans.
o To build capacity in the Urban Local Bodies and create awareness
among all sections of civil society.
o To involve various stakeholders in the planning process.
o To oversee the implementation of sustainable energy options
through public-private partnerships.
MAJOR ACTIVITIES
o Preparation of Master Plan of the proposed City within a period of
one year from the date of sanction of the Ministry with total and
sectorwise projections for energy demand and supply for next ten
years.
o The Master Plan will set a goal of minimum 10% reduction in
projected total demand of conventional energy at the end of five
years to be achieved through energy efficiency measures and
renewable energy installations.
o Setting up of Solar City Cell in the City Council including Senior
Administrator and City Engineers for planning and implementation.
o Organizing training programmes/workshops/business meets, camps
etc. for various stakeholders.
o Preparation of proposals for carbon financing.
o Organizing publicity and awareness campaign through print and
electronic media.
13. FINANCING PROVISIONS
CFA for preparation of Master Plans along with the Action Plans, setting
up of Solar City Cell and it’s functioning, other promotional activities and
oversight of implementation etc.
Up to Rs. 50.00 lakh per city/town depending upon population and
initiatives to be taken by the City Council/ Administration/Municipal
Corporation, break-up of which is given below:
o (i) Up to Rs. 10.00 lakh is for preparation of a Master Plan alongwith
few implementable Detailed Project Reports within a year.
o Up to Rs. 10.00 lakh is for oversight of implementation during three
years.
o Up to Rs. 10.00 lakh is for setting up of Solar City Cell and its
functioning for a period of three years
o Remaining amount of Rs. 20 lakh is to be utilized in three years for
other promotional activities, trainings, workshops, study tours and
augmenting the activities of Solar City Cell
CFA for installation of various renewable energy
projects/systems/devices in the Pilot Solar City
Sanctions will be given under Solar City Programme by the Ministry
depending upon the maturity of the proposal commensurate with the
Master Plan and DPRs. A total CFA for installation of various renewable
energy projects/systems/devices in the city upto Rs. 2.50 crore will be
provided for each Pilot Solar City. The funds will be released to the Solar
City/Township under the Solar City programme subject to the condition
that the equal amount i.e., Rs. 2.50 crore will be made available by the
concerned Municipal Corporation/City Administration/State or any other
sources. The financial pattern will be as applicable in the schemes under
Jawaharlal Nehru National Solar Mission being implemented by the
Ministry for Solar related projects. For other projects the MNRE’s CFA of
50% or as in MNRE’s respective programmes, whichever is higher,
would be applicable
14. The first 10 cities will be covered under this financial assistance during
11th plan as Pilot Solar Cities on merit on first come first served basis.
This financial assistance will be available to those cities which fulfil or
have taken actions on the minimum of three conditions as listed below:
i. The City has created a Solar City Cell and constituted the
Stakeholders Committee. A copy of the notifications for creation of Solar
City Cell and Stakeholders Committee to be submitted.
ii. Action initiated/taken to amend building bye-laws for making the use
of solar water heating systems mandatory in certain category of
buildings.
iii. Action initiated/taken to provide rebate in property tax through
Municipal Corporations/ Municipalities or in electricity tariff though
Utilities/ Electricity Boards to the users of solar water heaters especially
in domestic sector.
iv. Action iniated/taken to promote National Rating System for
construction of energy efficient Green Buildings in particular to
commercial and institutional buildings. The city has issued G.O as
regards to construction of Green buildings in compliance with approved
National Rating Systems like GRIHA particularly in Government/PSUs
buildings.
v. As per MSW Rules notified by the MoEF, the city has initiated/taken
actions for proper MSW management and for setting up set up projects
of suitable capacity for generating energy from the waste collected from
the city/town.
vi. The city has initiated actions in amending/has amended the byelaws
or makes new byelaws for promoting the renewable energy options for
avoiding use of diesel and petrol gen-sets in markets, public places,
schools, offices etc.
vii. Action initiated/taken for reduction of electricity consumption in street
light/garden lights, traffic lights, blinkers, hoardings etc. and in schools,
commercial buildings, offices, institutional buildings and other
15. establishments by using energy conservation & renewable energy
devices.
viii. The Municipal Corporation/ Municipality/SNA have established at
least one Akshay Urja Shop alongwith the repair and maintenance
facilities either in their campus or at some prominent place in the City.
ix. The Master Plan has been prepared and the installation of at least 2
to 3 Major Projects of Renewable Energy have taken
place/sanctioned/commenced.
Those projects set up by availing this amount of Rs. 2.50 crore of MNRE
as Pilot Solar Cities will not be entitled to further avail the MNRE subsidy
for the same project under any other programme. However, the other
projects can be set up under MNRE programmes.
For other Solar Cities, the financial pattern will be as applicable in the
schemes under Jawaharlal Nehru National Solar Mission being
implemented by the Ministry for Solar related projects and for other
projects the MNRE’s CFA as applicable in MNRE’s respective
programmes under this programme may be utilized.
ACTION TAKEN
The programme is to be implemented through the Urban Local Bodies of
the respective cities.The MNRE/GOI vide its sanction dated 25.6.09 has
conveyed its approval for development of Faridabad and Gurgaon cities
as Solar Cities at estimated cost of Rs.48.75 lacs and Rs. 47.45 lacs
respectively during the period of five years by HAREDA through
Municipal Corporations.
16. Ministry has also conveyed the sanction and release of Rs.8.07,000/-
(Rs.3.7 lacs for Gurgaon & Rs. 4.37 lacs for Faridabad) as 50% of the
grant sanctioned for preparation of Master Plan by MC, Gurgaon &
Faridabad. The next grant shall be released on submission of UCs and
progress reports. The grant for other activities shall be released after
submission of proposal for these activities.
As a first step under this scheme, the concerned Municipal Corporation
has to prepare Five Years Master Plan and 1) MC, Faridabad has
released the work order to TERI, New Delhi for hiring its services as
consultant for preparation of Master Plan@ Rs. 8.75 lacs in March, 2009
& the action plan of Faridabad city has been aproved by MNRE and has
conveyed sanction for CFA of Rs. 2.5 Crore, 2) MC, Gurgaon has
released the work order to M/s ICLEI, NOIDA as consultant @ Rs. 7.45
lacs for preparation of Master Planregarding Gurgaon City & Action Plan
is under preparation.
Both the MC’s have also constituted the stakeholder committee and
solar city Cells. Fonds for setting of solar city cell have been released to
MC, Faridabad and proposal for releasing the funds for Gurgaon City
has been submitted with MNRE/GOI.
The Ministry of New & Renewable Energy, Govt. of India has also
approved a proposal, out of sanctioned CFA of Rs. 2.5 crore, for
providing Solar Hybrid Inverters of capacity 1000VA in the Faridabad
City.
17. Conclusion-
In conclusion, Haryana has made significant progress in the adoption of
solar energy, with a current installed solar capacity of 661.89 MW.
Despite facing challenges such as land acquisition, financing, and grid
stability, the state government has introduced policies and incentives to
promote the growth of the solar business. With a favorable policy
environment, strong demand for power, decreasing solar equipment
costs, increasing awareness and adoption, and availability of skilled
workforce, the future for the solar business in Haryana looks promising.
The state has set an ambitious target of achieving 4000 MW of installed
solar capacity by 2022, and with the right support and investments, it
has the potential to become a leading producer of solar energy in the
country.
