An introduction to India's very own initiative on adoption and development of solar energy for powering its energy needs. The presentation includes the need for, proposed road map and various provisions under the scheme.

1. Introduction to JNNSM
by
Kranav Sharma (Guest Lecturer- Jamia Milia Islamia)

2. Contents
• Challenges in Indian Electricity Sector before JNNSM
• Overview of Solar Power Technologies
• Global solar resource availability map
• Solar resource availability in India
• State wise solar potential in India (SPV)
• Exercise#1- Annual Electricity generation
• Additional Exercise- Limit to solar cell conversion efficiency
• Growth of solar market before JNNSM
• National Action Plan on Climate Change (NAPCC)
• Introduction to JNNSM
• Objectives and Aims of JNNSM
• Proposed roadmap of JNNSM
• Provisions in Policy and Regulatory Framework
• Phase 1 Mission Strategy
• Achievements during Phase 1
• Phase 2 Mission Strategy
• Historical Trends and Current Achievements
• Essential Questions

3. Challenges in Indian Electricity Sector before
JNNSM
• India is a country of about 650,000 villages – 1/3rd of which don’t
have access to grid as of 2010
• Nearly 600 million Indians do not have access to electricity grid
• In 2010, India had a peak electricity deficit of 12.7% and total
electricity deficit of 10%
• One‐third of power generated is lost before getting utilized (30%-
50% AT&C Losses)
• High use of Fossil Fuel for Generation, extensive use of diesel for
back up and captive power units and kerosene lamps which are
polluting
• India imports 80% of its oil and has increased its dependence on
imported coal due to production and logistic constraints
• In 2010, India had a per Capita Electricity consumption of around
642 kWh compared to the world average of 2955 kWh.
• In 2010, India had only around 18 MW of installed solar capacity
AT&C Losses (expanded as Aggregate
Technical and Commercial losses) are the
sum total of technical and commercial
losses in an electric grid and shortage due
to non-realization of billed amount.
AT&C Loss = (Energy input – Energy billed)
* 100 / Energy input.

4. Challenges in Indian Electricity Sector before
JNNSM
Installed electricity capacity by source (year 2010)
Total installed capacity = 169 GW

5. Overview of Solar Power Technologies
• Solar power can be generated by direct photovoltaics (PV) or
indirect by solar thermal power.
• In photovoltaic power plant a solar cell or photovoltaic cell (PV) is
used which is a device that converts light into electric power using
the photoelectric effect.
• The International Energy Agency has classified the photovoltaic
applications into four categories namely
• off-grid domestic
• off-grid nondomestic
• grid connected distributed and
• grid connected centralized
• In a Concentrating Solar Power (CSP) plant the heat is collected
by lenses or mirrors and transformed to mechanical energy
through a steam turbine and then into electricity.
• Wide ranges of technologies CSP plant are present; the most
developed are parabolic trough, solar power tower, concentrating
linear Fresnel reflector and Stirling dish.
• Various techniques are used to track the sun and focus light.

6. Global solar resource availability map
International Solar Alliance

7. Solar resource availability in India
• India lies in the sunny belt of the world and is
endowed with vast solar energy potential.
• Most parts of India get 300 days of sunshine a year.
• About 5,000 trillion kWh per year energy is incident
over Indian land area with most area receiving 4-7
kWh/m2/day (GHI). This exceeds the energy output
of all fossil fuel energy reserves in India.
• Hence, both technology solar thermal and solar
photovoltaics can effectively provide huge capability
for solar in India.
• Solar also provides the ability to generate power on a
distributed basis.
• Assuming 10% maximum efficiency for PV modules
the incident energy on India is three orders of
magnitude greater than the likely electricity demand
for India on the year 2017.
• It can be observed that highest annual global
radiation is received in Rajasthan and northern
Gujarat.
Efficiency of a photovoltaic solar panels is measured
by the ability of a panel to convert sunlight into
usable energy for human consumption.
The panel efficiency determines the power output of a
panel per unit of area.
The maximum efficiency of a solar photovoltaic cell is
given by the following equation:

9. State wise solar potential in India (SPV)

10. Exercise#1- Annual Electricity generation
How much electricity can be generated from solar energy annually
considering GHI of 5.5 kWh/m2/day, conversion efficiency of 15% over
an area of 3541 km².

11. Solution# 1- Annual Electricity generation
[1 km2 = 106 m2]
Total electricity generated = 5.5 (kWh/m2/day) x 3.541 x 109 (m²) x 365 (days) x 0.15 (%)
= 1.06628 x 1012 kWh = 1066.28 TWh
Which is equal to the total electricity consumption in India in FY 2016-17.
Thus, theoretically setting up a solar power plant covering the entire state of Goa can satisfy
India’s electricity consumption requirements.
However, current total coverage area of solar panels is India is around 170 km2 (close to 19 GW
of installed capacity).

12. Additional Exercise- Limit to solar cell
conversion efficiency
What is the maximum theoretical conversion efficiency that a single-
junction solar cell can achieve?

13. The Shockley-Queisser Efficiency Limit
• It was first calculated by William
Shockley and Hans Queisser
• Shockley–Queisser limit or detailed
balance limit refers to the calculation
of the maximum theoretical efficiency
of a solar cell made from a single p-n
junction.
• The calculation places maximum solar
conversion efficiency around 33.7%
assuming a single p-n junction with a
band gap of 1.4 eV
• Therefore, under STC an ideal solar cell
with incident solar radiation will
generate 337 W/m2
Standard Testing Conditions

14. Growth in solar market before JNNSM
• The Rural Electrification Policy of 2006 was the first step by the Indian Government in recognizing the
importance of solar power.
• However, at this early stage, only 33.8 MW (as on 14/02/2012) of capacity was installed through this
policy.
• This primarily included solar lanterns, solar pumps, home lighting systems, street lighting systems and
solar home systems.
• In 2007, as a next step, India introduced the Semiconductor Policy to attract investments for setting up
semiconductor fabrication and other micro and nanotechnology manufacturing industries
including solar cells and photovoltaics.
• This move helped the manufacturing industry to grow, but a majority of the production was still being
exported as there were no PV projects being developed in India at that stage.
• Thus, there was also a need for a policy to incorporate solar power into the grid.
• The Generation Based Incentive (GBI) scheme, announced in January 2008 was the first step by the
government to promote grid connected solar power plants.
• The GBI scheme for the first time defined a feed-in tariff (FiT) for solar power (a maximum of Rs.
15/kWh). Since the generation cost of solar power was then still around Rs. 18/kWh, the tariff offered
was unviable.
• As a result, despite the GBI scheme, installed capacity in India grew only marginally to 6MW by 2009.
• In June 2008, the Indian government announced the National Action Plan for Climate Change
(NAPCC).

15. National Action Plan on Climate Change
(NAPCC)
National Action Plan on Climate Change (NAPCC) was released on 30th June, 2008 to
identify measures that promote the country’s development objectives while also yielding
co-benefits for tackling climate change effectively.
The Eight Missions of NAPCC:
• National Solar Mission
• National Mission for Enhanced Energy Efficiency
• National Mission on Sustainable Habitats
• National Water Mission
• National Mission for Sustaining the Himalayan Ecosystem
• National Mission for a Green India
• National Mission for Sustainable Agriculture
• National Mission on Strategic Knowledge on Climate Change

16. Introduction to JNNSM
• The National Solar Mission was launched on the 11th
January, 2010.
• The Mission has set the ambitious target of deploying
20,000 MW of grid connected solar power by 2022 is aimed
at reducing the cost of solar power generation in the
country through
• long term policy;
• large scale deployment goals;
• aggressive R&D; and
• domestic production of critical raw materials,
components and products, as a result to achieve grid
tariff parity by 2022.
• Mission will create an enabling policy framework to achieve
this objective and make India a global leader in solar
energy.
• Further, Government has revised the target of Grid
Connected Solar Power Projects from 20,000 MW by the
year 2021-22 to 100,000 MW (40 GW Rooftop and 60 GW
through Large and Medium Scale Grid Connected Solar
Power Projects) by the year 2021-22.

17. Objectives and Aims of JNNSM
• 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 (2010 - 13)
• Phase 2 (2013 - 17)
• 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.

18. Proposed Roadmap of JNNSM

19. Provisions in Policy and Regulatory framework
• Amendment of National Tariff Policy for solar specific RPOs (Renewable
Purchase Obligations)
• Solar specific RPO - 0.25% in Phase 1 (2013) to increase to 3% by 2022;
• REC (Renewable Energy Certificate) Mechanism
• Encourage state specific solar policies
• State-wise RPO Orders by Regulators
• Exemption from environmental clearance for solar power projects

20. Renewable Purchase Obligation (RPO)
• This is a mechanism by which certain consumers are obliged to purchase a
certain percentage of power from renewable energy sources.
• This target is termed as Renewable Purchase Obligation (RPO).
• RPO is being implemented throughout the country to create demand for
renewable energy.
• The existing legal framework under Electricity Act 2003 puts the responsibility for
promotion of RE on the State Electricity Regulatory Commissions (SERCs).
• It provides that SERC should ensure
• ‘promotion of cogeneration and generation of electricity from renewable sources of energy
by providing suitable measures for connectivity with the grid and sale of electricity to any
person, and
• also specify, for purchase of electricity from such sources , a percentage of the total
consumption of electricity in the area of a distribution licensee’.
• National Tariff Policy 2006 also provides that ‘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’.

21. State-wise Renewable Energy Potential in India
(in MW)
How can low RE states
conveniently satisfy
RPO requirements?
-
REC Mechanism

22. Renewable Energy Certificate (REC)
Mechanism
• Renewable Energy Certificate (REC) mechanism is a market based instrument to promote
renewable energy and facilitate compliance of renewable purchase obligations (RPO).
• It is aimed at addressing the mismatch between availability of RE resources in state and
the requirement of the obligated entities to meet the renewable purchase obligation
(RPO).
• The RE generator may sell electricity to the obligated entities
• Obligated entities are- DISCOMS (Distribution Companies), Open Access consumers
(heavy users with more than 1 MW connected load) and Captive power plants
(companies/ industries generating electricity for own consumption)
• One REC will be issued to the RE generator for one MWh electrical energy fed into the
grid.
• The RE generator may sell RECs to the entities with RPO target in the State or outside
the State.
• There are two categories of RECs, viz., solar RECs and non-solar RECs.
• Solar RECs are issued to eligible entities for generation of electricity based on solar as
renewable energy source, and non-solar RECs are issued to eligible entities for
generation of electricity based on renewable energy sources other than solar.

23. Phase 1 Mission Strategy
• The first phase will announce the broad policy framework to achieve the objectives of the
National Solar Mission by 2022.
• An amount of INR 4337 crore has been approved for the activities proposed under the first phase
of the Mission till March 2013.
• During the first phase of the Jawaharlal Nehru National Solar Mission, the target is to set up 1,000
MW grid connected (33 KV and above) solar plants, 100 MW of roof top and small solar plants
connected to LT/11 KV grid and 200 MW capacity equivalent off-grid solar applications.
• The implementation of the target of 1,000 MW of grid connected (33 KV and above) solar power
plants will be through NTPC Vidyut Vyapar Nigam (NVVN)- off taker, a trading subsidiary of
NTPC Limited. NVVN will directly purchase the solar power from the project developers as per
the norms and guidelines fixed in this regard.
• 100 MW capacity of solar roof top and small grid connected solar power plants will be
connected to LT/11 KV grid of the distribution utility and the solar power will be directly
purchased by the distribution utilities as per the norms and guidelines fixed in this regard.
• 200 MW equivalent capacity of off-grid solar applications, both solar thermal and photovoltaic
will be implemented through a combination of low interest bearing loans and /or central
financial assistance as per the norms and guidelines fixed in this regard.
• In addition, the Mission will support various activities, as considered necessary, on R&D, Human
Resource Development, Technical Assistance, training, publicity and awareness etc. for
successful implementation of the Mission.

24. Achievements during Phase 1

25. Achievements during Phase 1

26. Phase 2 Mission Strategy
National Solar Mission envisages installation of around 10 GW utility scale solar power projects in Phase-II.
It is envisaged that out of this 10 GW target, 4 GW would be developed under central scheme and 6 GW under
various State specific schemes.
• The off taker of power will be SECI (Solar Energy Corporation of India Limited) instead of NVVN
Thrust areas for Phase-II are as follows:
• Scaling up Grid connected Projects -Capacity addition target of 9
GW under Phase-II
• Rooftop PV Programme -1000 MW ( Both for Grid connected and
Off-grid)
• Solar Cities -15 (In addition to existing target of 60 cities)
• Energy Access -20,000 (Villages/hamlets/basti/padas)
• Off-Grid Lighting Systems -10 lakhs
• Solar Water pumps - 25,000 Systems
• Telecom Towers - 25,000 Systems
• Solar Water Heating Systems -8 Million Sq.m of Collector
area
• Solar Cooker & Steam Generating Systems - 50,000 Systems
• Industrial Process heat application - 400,250 Sq.m each on
an average
• Manufacturing - 4/5 GW Capacity
• Solar Monitoring and Assessment - 60 Monitoring Stations
• Human Resource Development - 1 Lakh trained &
Specialized personnel
Implementation Model
•Bundling Scheme
•Generation Based Incentive (GBI) Scheme
•Viability Gap Funding (VGF) Scheme .

27. Bundling Scheme in JNNSM
• Bundling can be defined as a strategy that joins products or services together in order to sell them as a single combined
unit.
• Similarly, under the mechanism of bundled power, comparatively expensive solar power is bundled with power from
the unallocated quota of the Government of India (Ministry of Power), which is generated at National Thermal Power
Corporation (NTPC) coal-based stations,
• This makes electricity relatively cheaper before it is offered to the Distribution Companies (DISCOMS).
• The price of this bundled power is set by the Central Electricity Regulatory Commission (CERC).
• The main idea behind introducing the concept of bundling was to reduce the price of solar so that impact on the
DISCOM is reduced.
• Reduced cost of bundled power made solar power relatively cheaper for the DISCOMs on one side and on the other side
the developers too were pleased, as they would receive a higher solar tariff.
Example:
Assuming PV tariff to be INR 17.91 per kWh, CSP tariff to be INR
15.315 per kWh and thermal power tariff to be INR 2.5 per kWh.
Price of bundled power or weighted price:
PV: [17.91 + (2.5 x 4)]/ 5 = INR 5.58 per kWh
CSP: [15.315 + (2.5 x 4)] / 5 = INR 5.06 per kWh
Sale price of power given ratio of PV to CSP is 50:50 = Rs. 5.32/unit

28. Viability Gap Funding (VGF) in JNNSM
• The main constraint in India’s infrastructure sector is the lack of source for finance.
• More than the overall difficulty of securing funds, some projects may not be financially viable though they are
economically justified and necessary (like solar projects, improved cookstove projects).
• This is the nature of solar projects which are expensive and development oriented.
• For the successful completion of such projects, the government has designed Viability Gap Funding (VGF).
Viability Gap Finance means a grant to support projects that are economically justified but not financially
viable.
Under this scheme:
• The Project developer will be provided a viability gap funding based on his bid.
• The benchmark cost of solar PV is around INR 5-8 crore/MW
• Based on the scheme, the amount of VGF can vary from anywhere between INR 3.0 Crore/MW to INR 1.0
Crore/MW for open category and Domestic Content Recognition (DCR) [domestically produced cells and
modules ].
• The selected Project developer has to demonstrate/infuse a minimum amount of capital in the form of Equity.
• The remaining amount can be raised as loan by the developer.
• The VGF will be released in six tranches. 50% on successful commissioning of the full capacity of the project
(COD) and the balance 50% progressively over next 5 years subject

29. Historical Trends and Current Achievements
Historical Trends
JNNSM

30. Historical Trends and Current Achievements
Current Achievements

31. Historical Trends and Current Achievements
• Top 20 developers account for 61% of the
total commissioned utility scale solar
capacity.
• Adani stepped up the charts during Q4
2017 to become the largest developer with
a capacity of 1,268 MW, followed by Tata
Power (1,165) and Greenko (1,144).

32. Essential Questions
1. Discuss the various challenges faced by the Indian Electricity sector
before launch of JNNSM
2. Explain why solar energy was considered to be a viable option in
addressing India’s energy needs.
3. Discuss the growth of solar market before launch of JNNSM
4. Discuss the targets and subsequent achievements of phase 1 of JNNSM
5. With an example, explain the bundling scheme of power under JNNSM
6. What is Viability Gap Funding? Describe its various provisions under
JNNSM.

33. END