NATIONAL SOLAR MISSION

direct conversion of sunlight into energy and solar thermal technologies which utilizes heat content of solar energy into useful applications. Over th...

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NATIONAL SOLAR MISSION Introduction 4.1

India is endowed with a very vast solar energy potential. Most parts of the country have about 300 sunny days. Average solar radiation incident over the land is in the range of 4-7 kWh per day. The solar energy can be utilized through solar photovoltaic technology which enables direct conversion of sunlight into energy and solar thermal technologies which utilizes heat content of solar energy into useful applications. Over the last three decades several solar energy based systems and devices have been developed and deployed in India which are successfully providing energy solutions for lighting, cooking, water heating, air heating and cooling, and electricity generation. The research and development efforts have also helped in better efficiency, affordability and quality of the products. As a result many solar energy systems and devices are commercially available with affordable cost in the market.

4.2

National Solar Mission (NSM) was launched on 11th January, 2010. The Mission targetted include (i) deployment of 20,000 MW of grid connected solar power by 2022, (ii) 2,000 MW of off-grid solar applications including 20 million solar lights by 2022, (iii) 20 million sq. m. solar thermal collector area, (iv) to create favourable conditions for developing solar manufacturing capability in the country; and (v) support R&D and capacity building activities to achieve grid parity by 2022. The Mission is to be implemented in three phases.

4.3

For the first phase of the Mission, the Cabinet had approved a target to set up 1,100 MW grid connected solar plants including 100 MW capacity as rooftop and other small solar power plants till March 2013. In addition, a target of 200 MW capacity equivalent off-grid solar applications and 7 million square meter solar thermal collector area were also approved. The Cabinet had also approved setting up of large utility scale grid power plants through bundling of solar power with the unallocated thermal power available from NTPC stations and the policy to provide generation based incentive for small grid connected solar power plants.

4.5

The Cabinet in its meeting held on 17/6/2015 had approved revision of cumulative targets under NSM from 20,000 MW by 2021-22 to 1,00,000 MW by 2021-22 for Grid Connected Solar Power Projects. The revised target of 1,00,000 MW is planned to be achieved in 7 years period and broadly consist of 40 GW Grid connected Rooftop projects and 60 GW large and medium size land based solar power projects.

PHASE-I OF NSM (2010-13) A) 4.6

Grid Connected Solar Power The Phase-I comprises of two sub-components viz., (i) 1,000 MW of large grid solar plants connected to 33 KV and above grid line, and (ii) 100 MW of rooftop and small solar plants, connected to grids below 33 KV.

1000 MW Capacity Grid-Connected Solar Power Projects implemented through NVVN 4.7

This scheme covered large solar power plants of total 1,000 MW capacity connected to grid at 33 kV and above - 500 MW capacity each based on Solar Thermal (ST) and Solar Photovoltaic 52

(SPV) technologies. It includes three stages: (i) Migration Scheme (ii) NSM Phase-I, Batch-I and (iii) NSM Phase-I, Batch-II

Migration Scheme 4.8

With a view to facilitate quick start-up to NSM and also speedier implementation of the then on-going projects under advanced stage of implementation in different States, this scheme was introduced in Feb 2010 to allow the migration of such projects to NSM. A total of 16 projects of 84 MW capacity (13 nos., 54MW - SPV and 3 nos., 30MW ST) were approved under this scheme for long-term procurement of power by NTPC Vidyut Vyapar Nigam Limited (NVVN) at Central Electricity Regulatory Commission (CERC) notified tariff for 2010-11 viz. Rs.17.91/ unit for SPV and Rs.15.31/unit for ST. 11 nos. SPV projects of 48 MW capacity and one ST project of 2.5 MW capacity have been commissioned under this scheme.

NSM Phase-I, Batch-I & Batch-II 4.9

Under NSM Phase-I, Batch-I and Batch-II, solar power projects were allotted through a process of reverse bidding. Bids for same were invited in two batches: Batch-I of 150 MW SPV and 470 MW ST in Aug 2010 and Batch-II of 350 MW SPV in Aug 2011.

4.10

In Batch-I the eligible project capacities were 5 MW for SPV and upto 100 MW for ST. 30 nos. SPV Projects with an aggregate capacity of 150 MW and 7 nos. of ST Projects with an aggregate capacity of 470 MW were selected. The bid tariffs for SPV projects were in the range of Rs.10.9512.76/ unit, with average of Rs.12.11/unit and for ST projects in the range of Rs.10.49-12.24/ unit, with weighted average of Rs.11.48/unit. 26 nos. SPV projects of aggregate 140 MW capacity and 3 nos. ST projects of aggregate 200 MW capacity have been commissioned under NSM Phase-I, Batch-I.

4.11

In Batch-II for SPV, the project capacity fixed was 5-20 MW. 28 nos. SPV projects with an aggregate capacity of 350 MW were selected. The tariff for the selected SPV projects was ranging between Rs.7.49-9.44/unit, with weighted average of Rs. 8.77/ unit. 26 nos. SPV projects of aggregate 330 MW capacity have been commissioned under NSM Phase-I, Batch-II.

4.12

A 5 MW SPV project by Delhi Mumbai Industrial Corridor Development Corporation Limited (DMICDC) has also been set up under the MNRE bundling scheme of NSM Phase-I.

Thus, under NSM Phase-I, 523 MW solar PV projects and 202.5 MW solar thermal power projects have been commissioned under the bundling scheme. 4.13

Power generated from the commissioned plants is being purchased by NVVN and being sold to State Utilities/ DISCOMS under a mechanism of bundling with power from unallocated quota of power from coal based stations of NTPC Ltd. on equal capacity basis to effectively reduce the average per unit cost of bundled solar power to the purchasing Utilities. A Payment Security Mechanism involving a revolving fund of Rs. 486 crore has been put in place to ensure timely payments to developers in the event of delays/ defaults in payments by the purchasing State Utilities to NVVN.

100 MW capacity Solar Power Plants 4.14

MNRE announced the Guidelines namely Rooftop PV and Small Solar Power Generation Programme (RPSSGP) for solar power plants connected to distribution network (Below 33 kV) 53

in June 2010. The aim of the scheme was to encourage the States to declare their Solar Policy for grid connected projects focusing on distribution network and to strengthen the tail-end of the grid. The purpose of the scheme was also to encourage as many States as possible to set up small solar grid connected projects. It also helped States to create a database of performance of solar plants under different climatic and grid conditions. This was considered necessary for large-scale replication in future, particularly for meeting rural needs in the next phase of the Solar Mission. 4.15

The role of the Ministry was limited to providing a fixed Generation Based Incentive (GBI) to the State utilities at a rate equal to the difference of the CERC tariff for 2010-11 (Rs. 17.91 per kWh) and a reference rate of Rs. 5.5 per kWh. The projects were registered with IREDA through a web-based process.

Achievement 4.16

B) 4.17

78 projects were selected to set up 98 MW capacity projects from 12 States. Against this, 71 projects of total capacity 90.80 MW have been connected to grid with State-wise details as given in Table 4.1.

Off-grid Solar Applications including Solar Heating The guidelines for implementation of off-grid solar applications were also announced on 16th June 2010. A provision of 30% capital subsidy and/or soft loan @5% was made for general category states. In case of solar photovoltaic applications, a capital subsidy limited to a maximum of 90% of the benchmark cost is available for Government driven projects in the special category states viz. NE, Sikkim, J&K, Himachal Pradesh and Uttarakhand and also the international border districts and islands, keeping in view special needs of the region and overall policy of the Government. IREDA was assigned the task to provide refinance to the interested banks to enable them to offer loans to consumers at 5% annual interest rate. In order to encourage multiple channel partners to access support and reach out to the people, a process

Table 4.1 State Wise Projects Commissioned under RPSSGP Scheme Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12

State

No. of Projects 10 2 8 8 3 3 7 5 12 6 3 4 71

Andhra Pradesh Chhattisgarh Haryana Jharkhand Madhya Pradesh Maharashtra Odisha Punjab Rajasthan Tamil Nadu Uttarakhand Uttar Pradesh Total

54

Capacity (MW) 9.75 4 7.8 16 5.25 5 7 6 12 6 5 7 90.8

Solar plant being Devloped by NTPC in Bhadla Solar Park Phase-II

of accreditation of solar system integrators was introduced by the Ministry. Reputed agencies such as CRISIL, Fitch and ICRA were involved in the process. 4.18

Out of capacity of 200 MW, Ministry fixed a target of sanctioning 32 MW capacity projects in 2010-11 against which 40.6 MW capacity off-grid solar PV projects were sanctioned in 2010-11. Another 77.471 MWp were sanctioned during 2011-12 against a target of 68 MWp for the year. During 2012-13, 134.5 MWp capacity projects were sanctioned. The total capacity sanctioned during Phase-I thus was 252.5 MW. For solar thermal collector area during the first phase, about 7.01 million square meter of collector area has been installed against a target of 7.0 million.

Achievements Application Segment

Target for Phase I (2010-13)

Achievements till March, 2013

Grid solar power (large plants, roof top & distribution grid plants)

1,100 MW

1686.44 MW

200 MW

252.5 MW

7 million sq. meters

7.01 million sq..meters

Off-grid solar applications Solar Thermal Collectors (SWHs, solar cooking, solar cooling, Industrial process heat applications, etc.)

55

C) 4.19

D)

Domestic Manufacture One of the objectives of the Mission is to substantially enhance solar manufacturing across the value chain in the country. In line with this objective in the first phase of the Mission, 30% domestic content was made necessary for grid solar thermal projects. This condition was in place for all solar thermal power projects selected in the first phase. For the photovoltaic projects selected during 2010-11, use of domestic crystalline silicon modules was mandatory, but solar cells and modules made with other technologies can be imported. In Batch-II projects, selected in 2011-12 use of crystalline silicon solar cells and modules was allowed only if domestically manufactured. Products with other technologies i.e. thin film and CPE could, however, be imported.

Institutional Arrangements

4.20

Solar Energy Corporation of India, a Section-25 Company was incorporated on 20th September 2011 with an authorized Capital of Rs.2,000 crore and its office is at Saket, New Delhi. This Company is functioning under the administrative control of Ministry of New & Renewable Energy and would implement and is facilitating the various activities of National Solar Mission (NSM).

4.21

Solar Energy Research Advisory Council (SERIC) has been set up to advise on research policy with a view to achieve Mission targets.

PHASE-II OF NSM (2013-17) 4.22

The Phase-I of NSM (2010-13) generated a huge interest in the solar sector wherein Gird connected and off-grid projects were commissioned throughout the country. Achievements of Phase-I exceeded the targets set for the period. This momentum needs to be carried forward to the next phase.

Targets of Phase-II Application Segment

Target for Phase 2 (2013-17)

Grid solar power (large plants, roof top & distribution grid plants)

9,000 MW

Off-grid solar applications

800 MW

Solar Thermal Collectors (SWHS, solar cooking, solar cooling, Industrial process heat applications, etc.)

8 million sq. meters

Future Plan 4.23

Vision for 100,000 MW of solar power capacity by 2022 is proposed as below: 56

Category-I Rooftop Solar

Total

Proposed Capacity 40,000

Category-II Projects by Unemployed graduates, Village Panchayats, Small Scale Industries (SSI) Units Public Sector Undertakings Large Private Sector SECI Under State Policies Ongoing programmes

40,000

(Capacity in MW) Proposed Capacity 10,000

10,000 5,000 5,000 20,000 10,000* 60,000*

* 3743 MW commissioned upto 2014-15

Focus area under Phase-II of NSM A) 4.24

Grid connected Projects Unlike Phase-I, NSM Phase-II aim for achieving significantly higher scales of targets of 100 GW. Hence, Ministry has contemplated all possible options for implementation of the Mission. Selection of capacity for Phase-II, grid connected projects is being done via different schemes such as Bundling, Viability Gap Funding (VGF). This allocation of target capacity may be altered depending upon the availability of resources.

Achievements 4.25

As on 31.12.2016, a total solar power capacity installed is 9012.69 MW. State-wise details are given in Table 4.2. Yearwise cumulative growth in Solar Power Installed capacity is shown in Graph 4.1

Action Taken 4.26

The Ministry has formulated a range of schemes for achieving the aspirational target of 100 GW. The details of the schemes are given in succeeding paras.

Scheme for setting up over 300 MW of Grid-Connected Solar PV Power Projects by Defence Establishments under Ministry of Defence and Para Military Forces with Viability Gap Funding under Phase-II/III of NSM. 4.27

The Establishments in the border area and remote locations use diesel as the primary source of energy. In some areas they pay very high tariff. Solar power is clean source of energy and can replace diesel power generation to a large extent. Potential of Solar Energy in cantonment and Military Stations are approximately 5000 MW and in Ordnance Factory Boards (OFB) are 950 MW. Ordnance Factory Board (OFB) and other Defence Establishments agreed to set up solar power projects on the large tracts of land and vacant rooftops which they own. The Cabinet has approved the Scheme in its meeting held on 10th December, 2014. The Ministry has issued Administrative Approval on 07th January, 2015. 57

Table 4.2 State-wise estimated Solar Energy Potential vs. installed solar capacity in the Country as on 31.12.2016. Sr. No.

State/UT

1

Andhra Pradesh

2

Arunachal Pradesh

3

Solar Potential (GWp) #

Installed Capacity (MW) as on 31.12.2016

38

979.65

9

0.27

Assam

14

11.18

4

Bihar

11

95.91

5

Chhattisgarh

18

135.19

6

Goa

1

0.05

7

Gujarat

36

1158.5

8

Haryana

5

53.27

9

Himachal Pradesh

34

0.33

10

Jammu & Kashmir

111

1.00

11

Jharkhand

18

17.51

12

Karnataka

25

327.53

13

Kerala

6

15.86

14

Madhya Pradesh

62

840.35

15

Maharashtra

64

430.46

16

Manipur

11

0.01

17

Meghalaya

6

0.01

18

Mizoram

9

0.10

19

Nagaland

7

0.50

20

Odisha

26

77.64

21

Punjab

3

545.43

22

Rajasthan

142

1317.64

23

Sikkim

5

0.01

24

Tamil Nadu

18

1590.97

25

Telangana

20

973.41

26

Tripura

2

5.02

27

Uttar Pradesh

23

239.26

28

Uttarakhand

17

45.10

29

West Bengal

6

23.07

30

Delhi

2

38.78

31

UTs & Others

1

88.68

750

9012.69

TOTAL # Assessed by National Institute of Solar Energy * includes 100.92 MW from other rooftop systems.

58

Graph 4.1

Year-wise Solar Power Installed Capacity Cumulative- Growth (MW) 10000 9012.85 9000 8000 6762.85

7000

MW

6000 5000 3743.97 4000 2647

3000 2000

1446 513

1000 0

upto 31.03.2012

2012-13

2013-14

2014-15 Year

4.28

2015-16

2016-17*

* Data up to 31.12.2016

The broad guidelines of the scheme are as under: i.

A capacity of 300 MW will be set up in various Establishments of Ministry of Defence i.e. Establishments of Army, Navy, Air Force, Ordnance Factory Board, Defence Laboratories and Defence PSUs etc. Para Military Forces would also be covered under this scheme. Minimum size of the project shall be 1 MW.



Government has also given permission for Right to Use the Defence Land by the Developers chosen by Defence Establishments by way of lease and otherwise or for self-use of the same by Defence Establishments themselves for the purpose of setting up of Solar Power Projects and sale of excess power to the Distribution Companies.

ii. The projects under this Scheme will mandatorily use solar cells/modules which are made in India. iii. The aforesaid Establishments would identify locations for developing solar projects, anywhere in the country including border areas from time to time. iv. The following two modes may be used for tendering A) Developer Mode: This is mode under which the project is given to developer, who makes the investment, own the project and supplies power to Defence Establishments. B) EPC Mode: This is applicable when project is built through EPC contractor and investment is made by the Defence establishment/Para Military Forces. v. The Defence organisations/Establishments will be free to own the power projects i.e. get a EPC contractor to build the project for them or get a developer who makes the investment and supplies power at a fixed tariff of Rs.5.50 per unit for 25 years (or Rs. 4.75 with AD). EPC has been recommended by MHA, Planning Commission and MoD. vi. The solar project developers will be provided VGF based on the bid. The bidders will be selected on the basis of bids for minimum VGF requirement for the project with 59

commitment to supply solar power at Rs. 5.50/KWh for 25 years. However, the upper limits of the VGF are as follows:

Category-I: Rs.2.5 Cr./MW for project capacity upto 5 MW or 30% of the project cost whichever is lower;



Category-II: Rs. 2 Cr./MW for project capacity greater than 5 MW upto 25 MW or 30% of the project cost whichever is lower; and

4.29

Category-III: Rs. 1.5 Cr./MW for project capacity greater than 25 MW or 30% of the project cost whichever is lower. Domestic Content Requirement (DCR): The entire capacity of 300 MW will be kept for bidding in phases, with DCR. Under DCR, the solar cells and modules used in the solar PV power plants must both be made in India as per specification and testing requirement by MNRE.

4.30

Project Implementation Schedule: Total of 300 W capacities to be added in 5 years period i.e. from 2014-19.

4.31

Achievements: As on date, 356 MW has been allocated under this scheme.

Sl. No.

Name of Organisation

Capacity Sanctioned (MW)

1.

Ordnance Factory Board

2

Bharat Electronics Ltd.

3

Bharat Dynamics Limited

4

Department of Defence

150

Tendering for 15MW to be done by December, 2016

5

Hindustan Aeronautics Ltd., Nasik

15

*39 MW: Tender issued & award by January,2017 *111 MW: Tendering to be done by April,2017

6

Ordnance factory

05

Tendering for 15 MW to be done by December, 2016

7

MIDHANI

04

Tendering for 15MW to be done by December, 2016

Total

07

Status Construction completed but yet to be commissioned.

150

*15 MW project awarded to BHEL & construction started. * 20 MW : LOI issued * 23 MW : Tendering to be done by March,2017

25

5 MW: LOI issued

356

Implementation of Scheme for Development of Solar Parks and Ultra Mega Solar Power Projects. 4.32

The scheme for development of Solar Parks and Ultra Mega Solar Power Projects has been conceived on the lines of the “Charanka Solar Park” in Gujarat which is a first-of-its-kind large scale Solar Park in India with contiguous developed land and transmission connectivity.

60

Solar Modules at the 250 MW Solar Park at Ananthapuramu, Andhra Pradesh

4.33

This scheme envisages supporting the States in setting up solar parks at various locations in the country with a view to create required infrastructure for setting up of Solar Power Projects. The solar parks will provide suitable developed land with all clearances, transmission system, water access, road connectivity, communication network, etc. This scheme will facilitate and speed up installation of grid connected solar power projects for electricity generation on a large scale. All the States and Union Territories are eligible for benefitting under the scheme.

4.34

The salient features of the scheme are as under: i.

It is proposed to set up at least 25 Solar Parks and Ultra Mega Solar Power Projects targeting over 20,000 MW of solar power installed capacity within a span of 5 years starting from 2014-15.

ii. The capacity of the Solar Parks shall be 500 MW and above. However, smaller parks may be considered in Himalayan Region & other hilly States where contiguous land may be difficult to acquire in view of difficult terrain and in States where there is acute shortage of non-agricultural land. iii. The solar parks will be developed in collaboration with the State Governments and their agencies. The choice of implementing agency for developing and maintaining the park is left to the State Government. iv. The implementing agency may be sanctioned a grant of upto Rs.25 Lakh/Park for preparing Detailed Project Report (DPR) of the Solar Park. v. Thereafter, application may be made by the implementing agency to Solar Energy Corporation of India (SECI) for the grant of up to Rs. 20 lakh/MW or 30% of the project cost including Grid-connectivity cost, whichever is lower. The approved grant will be released by SECI as per milestones prescribed in the scheme. 61

vi. 4.35

Financial Implications A total fund requirement to provide Central Financial Assistance (CFA) is estimated as Rs 4050.00 crore with the following year-wise break up: Year 2014-15 2015-16 2016-17 2017-18 2018-19

4.36

Disbursement of funds (Rs. in Crore) 500.00 550.00 600.00 1000.00 1400.00 4050.00

Specific Advantages

i.

Solar parks will enable development of solar power in remote areas where land is inexpensive.

ii.

As transmission system will be developed for the entire park, developers will not have to set up their own transmission lines. This will not only save money but will also avoid damaging the land scape of the area as only limited transmission lines would be laid.

iii.

The developers would be able to set up projects very fast as they will not have to get statutory and other clearances.

iv.

India will emerge as a major solar power producing country as nowhere in the world solar parks are being developed on such a large scale.

Achievements 4.37

A total of 34 Solar Parks in 21 States have been approved with a solar power capacity of 20000 MW as on 31.12.2016. State-wise details are given in Table 4.3.

(i)

Physical Progress: Parks are categorized in 3 categories: Category A: where work has already started B: where work will start in 3 months C: where work may start after 3 months time

(II)

Progress 8 solar park with aggregate capacity 7400 MW 20 solar parks with aggregate capacity 10421 MW 6 solar parks with aggregate capacity 2149 MW

Financial Progress: Central Financial Assistance upto Rs. 25 lakh per DPR is admissible and for Park development, Rs. 20 lakh per MW or 30% of the project cost whichever is lower is admissible. Details of CFA released is as under: (Rs. in crore) 2014-15

2015-16

2016-17

Total

172.50

365.72

162.80

701.02

62

Table 4.3 Details of Solar Parks Sanctioned Sl. No.

State

Capacity (MW)

1.

Andhra Pradesh

1500

2.

Andhra Pradesh

1000

3.

Andhra Pradesh

1000

Name of the Solar Power Parks Developer (SPPD)

Land identified at NP Kunta of Anantpuramu & Galiveedu of Kadapa Districts Kurnool District

AP Solar Power Corporation Pvt. Ltd., JVC of SECI, APGENCO and NREDCAP

Galiveedu Madal, Kadapa district Talaricheruvu Village, Tadipathri Mandal, Anathapuramu district of Andhra Pradesh

4.

Andhra Pradesh

500

5.

Arunachal Pradesh

100

Arunachal Pradesh Energy Development Agency (APEDA)

Tezu township in Lohit district

6.

Assam

69

JVC of APDCL, APGCL

Amguri in Sibsagar district

7.

Chhattisgarh

500

Chhattisgarh Renewable Energy Development Agency

Rajnandgaon, Janjgir Champa districts

8.

Gujarat

700

Gujarat Power Corporation Limited

Radhanesda, Vav, Distt. Banaskantha Bugan in Hissar district, Baralu and Singhani in Bhiwani district and Daukhera in Mahindergarh district

9.

Haryana

500

Saur Urja Nigam Haryana Ltd (SUN Haryana)

10.

Himachal Pradesh

1000

HP State Electricity Board Ltd.

Spiti Valley of Lahaul & Spiti District

11.

Jammu & Kashmir

100

Jammu and Kashmir Energy Development Agency

Mohagarh and Bdla Brahmana, District- Samba

12.

Karnataka

2000

Karnataka Solar Power Development Corporation Pvt. Ltd.

Pavagada taluk Tumkur dist.

13.

Kerala

200

Renewable Power Corporation of Kerala Limited

Paivalike, Meenja, Kinanoor, Kraindalam and Ambalathara villages of Kasargode district

14.

Madhya Pradesh

750

Rewa Ultra Mega Solar Limited

Gurh, Rewa, MP

15.

Madhya Pradesh

500

Rewa Ultra Mega Solar Limited

Neemuch and Mandsaur

16.

Madhya Pradesh

500

Rewa Ultra Mega Solar Limited

Agar and Shajapur

17.

Madhya Pradesh

500

Rewa Ultra Mega Solar Limited

Chhattarpur

18.

Madhya Pradesh

500

Rewa Ultra Mega Solar Limited

Rajgarh-- Morena

19.

Maharashtra

500

M/s Pragat Akshay Urja Ltd

Sakri, Dhule district of Maharashtra

20.

Maharashtra

500

Maharashtra State Electricity Generating Company Ltd. (MAHAGENCO)

Dondaicha, district Dhule, Maharashtra

21.

Maharashtra

500

M/s K. P. Power Pvt. Ltd

Taluka Patoda, district Beed, Maharashtra

22.

Meghalaya

20

Meghalaya Power Generation Corporation Ltd (MePGCL)

West Jaintia Hills & East Jaintia Hills districts

63

Directorate of New & Renewable Energy, Nagaland

Dimapur, Kohima and New Peren districts

1000

Green Energy Development Corporation of Odisha Limited

Balasore, Keonjhar, Deogarh, Boudh, Kalahandi and Angul

Rajasthan

680

Rajasthan Solar Park Development Company Ltd.

Bhadla Phase II, Bhadla, Rajasthan

Rajasthan

1000

Surya Urja Company of Rajasthan Ltd

Bhadla Phase III, Bhadla, Rajasthan

23.

Nagaland

24.

Odisha

25. 26.

60

27.

Rajasthan

750

M/s Essel Surya Urja Company of Rajasthan Limited

Villages Ugraas, Nagnechinagar & Dandhu, tehsil Phalodi, dist Jodhpur (450 MW) and villages Lavan & Purohitsar, tehsil Pokaran, dist Jaisalmer (300 MW)

28.

Rajasthan

500

M/s Adani Renewable Energy Park Rajasthan Limited

Bhadla Phase IV, Bhadla, Jodhpur Rajasthan

29.

Rajasthan (421 MW through support of Gol out of 1500 MW)

421

M/s Adani Renewable Energy Park Rajasthan Limited

Fatehgarh & Pokaran, Jaisalmer, Rajasthan

30.

Telangana

500

Telangana New & Renewable Energy Development Corporation Ltd. (TNREDC)

Gattu, Mehboob Nagar Distt.

31.

Uttar Pradesh

600

Lucknow Solar Power Development Corporation Ltd.

Jalaun, Allahabad, Mirzapur and Kanpur Dehat districts Industrial Area, Sitarganj (Phase I), Industrial Area, Sitarganj (Phase II) and Industrial Area, Kashipur

32.

Uttarakhand

50

State Industrial Development Corporation Uttarakhand Limited (SIDCUL)

33.

West Bengal

500

West Bengal State Electricity Distribution Company Ltd.

East Mednipur, West Mednipur, Bankura

34.

Tamil Nadu

500

To be finalized

Initially proposed in Ramanathapuram district. Site under revision.

TOTAL 34 solar parks in 21 states

20000

VIABILITY GAP FUNDING (VGF) SCHEME 750 MW VGF Scheme under JNNSM Phase-II, Batch-I 4.38

Solar Energy Corporation of India (SECI) is implementing the first VGF scheme of 750 MW, under JNNSM Phase-II, Batch-I for setting up large scale ground-mounted solar PV projects on pan-India basis. After a transparent selection and award process, project capacity of 680 MW could successfully achieve financial closure. This entire capacity has been commissioned and projects are under commercial operation. State-wise details of commissioned projects are given in Table 4.4. 64

BOX 4.1 250 MW Solar Power Projects established by NTPC at Ananthapuramu Solar Park in Andhra Pradesh

Ministry approved the Ananthapuramu solar park of capacity 1500 MW to be set up in Andhra Pradesh in December, 2014. Andhra Pradesh Solar Power Corporation Private Limited (APSPCL), a Joint Venture Company between Solar Energy Corporation of India (SECI), Andhra Pradesh Power Generation Corporation Ltd (APGENCO) and New and Renewable Energy Development Corporation of Andhra Pradesh Ltd (NREDCAP) was incorporated under the Companies Act, 2013 with the main object of engaging in the business of developing Solar Parks in the State of Andhra Pradesh. About 11,500 acres of barren and uncultivable land was identified for this Solar Park, out of which about 8000 acres was found to be feasible for establishing solar power projects. The identified land comprised of about 70% government land, 25% assigned land and 5% patta land. MOU was entered by Govt. of Andhra Pradesh with NTPC in September, 2014 for establishment of 1000 MW solar project in Andhra Pradesh. Around 1250 Acres of land (@ 5 Acres/MW) was handed over to NTPC in April, 2015 for establishing 250 MW solar power project in Phase-I at N.P. Kunta Mandal, Ananthapuramu District. NTPC awarded EPC contract to four agencies in April, 2015. PPA was also signed with APDISCOMS in April, 2015 for supply of solar power @ Rs. 6.16/ kWh. The tariff was later reduced by APERC to Rs. 5.96/ kWh. The land acquisition was completed in a short span of about 5 months which normally takes more than a couple of years. To expedite and complete the land acquisition in the shortest possible time, Government of Andhra Pradesh (i) transferred the Government Land to APSPCL immediately pending government procedures and finalization of terms and conditions of lease, (ii) constituted Negotiating Committee to negotiate with the farmers and to finalize the compensation through mutual consent for acquiring assigned and patta lands. 33kV/220kV pooling sub-station was established by APTRANSCO on behalf of APSPCL for internal evacuation of solar power from each solar project. The work of 33kV/220kV pooling sub-station commenced in September, 2015 and completed in April, 2016. 220kV/400 kV Grid substation and connected line was established by Power Grid Corporation of India Ltd (PGCIL) for external evacuation. The work for this Grid substation commenced in July, 2015 and was completed in April, 2016. The solar power projects aggregating 250 MW were commissioned as detailed below: 100 MW:

30.04.2016

50 MW: 30.05.2016

50 MW:

07.06.2016

50 MW: 10.08.2016

The Peak generation so far was 225.7 MW on 30.11.2016 at 11:44 hrs and cumulative generation up to 08.01.2017 was 230.3486 MU. The project is generating power at an average CUF of more than 19%.

65

Table 4.4 State-wise details of commissioned projects under 750 MW VGF Scheme under NSM Phase-II, Batch-I State Rajasthan Gujarat Maharashtra Madhya Pradesh Karnataka Tamil Nadu Odisha Total

Capacity 355 MW 40 MW 25 MW 220 MW 10 MW 10 MW 20 MW 680 MW

2000 MW VGF Scheme of NSM Phase II, Batch III 4.39

The second batch of VGF scheme of 2000 MW capacity (JNNSM Phase II, Batch III) is under implementation by SECI. Tenders are being brought out on state-specific basis, either in solar parks being developed in the states or outside solar parks.

4.40

Under this scheme, developers would be paid tariff of Rs. 4.43 per kWh or the discounted tariff discovered through e-reverse auctioning, for 25 years by entering into a PPA with SECI. Power from these projects would be sold to various discoms/Bulk consumers/state utilities by SECI at Rs.4.50 per kWh (including trading margin of 7 paisa per unit).

4.41

In this scheme, 250 MW capacity has been earmarked for bidding with Domestic Content Requirement (DCR).

4.42

SECI has issued RfS for 2510 MW capacity in 7 states/UTs. LoI has been issued for 2395 MW. PPAs have been signed for 2395 MW. State-wise status as on 31.12.2016 is given in Table 4.5:

5000 MW VGF Scheme Batch IV Phase II 4.43

On the lines of the 2000 MW VGF Scheme, another VGF scheme of 5000 MW capacity has been announced. First and second parts are being taken up at present for FY 2015-16 and FY 2016-17 for 2500 MW.

Table 4.5 State-wise status under 2000 MW VGF Scheme of NSM Phase II, Batch III S. No. State RfS issued LoI issued PPA signed 1 Maharashtra 500 MW 500 MW 500 MW 2 Uttar Pradesh 325 MW 325 MW 325 MW 3 Andhra Pradesh 500 MW 500 MW 500 MW 4 Chhattisgarh 100 MW 100 MW 100 MW 5 Karnataka 1000 MW 970 MW 970 MW 6 Puducherry 35 MW 7 Himachal Pradesh 50 MW Total 2510 MW 2395 MW 2395 MW 66

5 MW Project at Rajasthan

20 MW project at Madhya Pradesh

4.44

The scheme is proposed to be implemented by SECI in four tranches of 1250 MW each, spread over four years, up to FY 2018-19. This scheme also provides for purchase of solar power by SECI from selected developers at a fixed tariff of Rs. 4.43 per kWh for 25 years and supply to Discoms at Rs. 4.50 per kWh (including trading margin of 7 paise per unit). The projects are being set up either in the solar parks being developed by states or outside the solar parks.

4.45

RfS has already been issued for 2900 MW capacity in 6 states. LoI has been issued for 1020 MW. PPAs have been signed for 1020 MW. State-wise tendering status as on 31.12.2016 is given in Table 4.6.

Scheme for setting up of 1000 MW of Grid connected Solar PV power projects by CPSUs and Govt. organizations under various Central/State Schemes/Self use/3rd Party sale/Merchant sale with Viability Gap Funding (VGF) under Phase-II of NSM. 4.46

The Ministry launched the above scheme in January 2015 to set up 1000 MW of Grid Connected Solar PV Power Project by CPSUs and Govt. Organizations with VGF.

4.47

The broad guidelines of the scheme are as under: (i) The duration of implementation of the Scheme is 2015-18. (ii) The project is to be owned by GOI Organizations/CPSUs. (iii) The Project can be set up on land/rooftops. (iv) The power so generated can be for self-use/third party sale/merchant sale or sale to Discoms on applicable tariff.

Table 4.6 State-wise tendering status under 5000 MW VGF Scheme Batch IV Phase II S. No. 1 2 3 4 5 6

State Gujarat Odisha Andhra Pradesh Maharashtra Karnataka Rajasthan Total

RfS issued 400 MW 300 MW 750 MW 500 MW 200 MW 750 MW 2900 MW

67

LoI issued 250 MW 270 MW 500 MW 1020 MW

PPA signed 250 MW 270 MW 500 MW 1020 MW

(v) GOI will provide VGF as under: a) Rs.1 Cr. /MW, if Cells and Modules for the project are manufactured indigenously. b) Rs.50 Lakh /MW, if Modules for the project are manufactured indigenously. (vi) VGF will be released in two tranches as follows: a) 50% on LoI and start of installation work at plant; and 4.48

b) balance 50% on successful commissioning of the full capacity of the project (CoD). Under the above Scheme, MNRE had allocated 1037.26 MW capacity to following 16 CPSUs/ Govt. Organizations within the sanctioned funds of Rs.1000 Crore for this scheme as shown in Table 4.7.

4.49

Status of award of projects in 3 categories:-

Category A

Status of work (i)Work completed

Capacity (MW) 261.50

(ii) Work started

434.50

Name of CPSUs and capacity (MW) NTPC Ltd. (250) (Ananthpur- Andhra Pradesh) (Box Item 4.1) and Bharat Heavy Electrical Ltd. (6.50), RINL (5 MW) NTPC Ltd. (409.5), BHEL (10 MW), Paradip Port Trust (10 MW); DNH Power Distribution Co. (3 MW), and Scooters India Ltd (1 MW), Sambhar Salts Ltd. (1 MW),

B

Work is likely to be 305.76 started in next 3 months

Coal India (200 MW), NHPC (50 MW) , THDC India Ltd. (50 MW); GAIL (India) (5.76 MW)

C

Work is not likely to be started in next 3 months

35.50

NTPC (20.5 MW) NEEPCO (5 MW), PEC Ltd. (1 MW); Central Armed Police Forces Institute of Medical Sciences (CAPFIMS), (1 MW), Cement Corporation of India (6 MW) ; and NIFTEM (2 MW)

Total

1037.26

Physical Performance 4.50

Out of the total sanctioned capacity of 1037.26 MW, solar projects of 261.50 MW capacity have already been commissioned so far. The expected date of commissioning in the case of following 7 CPSUs/Govt. organizations who have already started the work is given below:-

Name of CPSU No. 1 NTPC Ltd. 2

Bharat Heavy Electrical Ltd

3 4 5 6 7.

Rashtriya Ispat Nigam Ltd. Paradip Port Trust DNH Power Distribution Corp. Scooters India Ltd. Sambhar Salts Ltd. Total

Capacity (MW) 250.00 409.50 6.50 10.00

Expected date of commissioning 250 MW – Already commissioned 409.50 MW - Commissioning in 31/03/2017 Already commissioned Commissioning in 31/03/2017

5.00 10.00 3.00 1.00 1.00 696.00

Commissioned on 20/12/2016 June 2017 March 2017 10 Jan.2017 April 2017

68

7.5 MW SPV Power Project at Vishakhapatnam Port Trust

Table 4.7 Capacity, VGF allocated and released under CPSU scheme of NSM No.

Name of PSU/Govt. organisations

1

NTPC

Capacity sanctioned (MW) 680.00

VGF Amount (in crore Rs.)

2

BHEL

16.50

16.50

3.25

3

Rashtriya Ispat Nigam Ltd.

5.00

5.00

2.50

Visakhapatnam (A.P.)

4

Coal India Ltd.

200.00

200.00

0.00

MP

5

NHPC Ltd.

50.00

25.00

0.00

Tamil Nadu

6

NEEPCO

5.00

5.00

0.00

Assam

7

GAIL (India) Ltd

5.76

5.76

0.00

5.76 MW at Pata (UP) & balance in MP

required

Location of the project

released

680.00

422.50

(1) Anantapuramu (A.P.) (250 MW), (2) Mandsaur (MP) (229.5 MW) (3) Bhadla Rajasthan (180 MW) (4) Karnataka (20.5 MW) Trichy (TN) Ramachandrapuram,(Hyd.) Telangana) Bhopal (MP)

Under Ministries/Departments Quota @ 1 MW each 8

(i) Scooters India Ltd; 1.00

1.00

0.50

Lucknow (UP)

9

(ii) Sambhar Salts Ltd

1.00

0.00

Sambhar (Rajasthan)

1.00

69

Continued

10

11 12

13 14 15 16

(iii)Dadra Nagar 3.00 Haveli Power Distribution Corporation Ltd. (iv) PEC Ltd. 1.00 (v) Central Armed 1.00 Police Forces Institute of Medical Sciences (CAPFIMS), New Delhi Paradip Port Trust 10.00 Cement Corporation 6.00 of India THDC India Ltd. 50.00 NIFTEM 2.00 Total 1037.26 SECI’s fund handling charge @ 1% of funds disbursed Total 1037.26

3.00

1.50

Dadra Nagar haveli (UT)

1.00 1.00

0.00 0.00

JNU Delhi New Delhi

10.00 6.00

0.00 0.00

Paradip Port (Odisha) Tandur (Telangana)

25.00 2.00 987.26 4.30

0.00 0.00 430.25 3.01

Kasargod Distt. Kerala Kundli, Haryana

*991.56

433.26

* Total VGF limit is Rs.1000 Cr.

Financial performance 4.51

During 2015-16, VGF of Rs.128.75 crore was released to 3 CPSUs as 1st instalment (50 % of the total VGF). VGF of Rs.304.44 crore has been released so far during 2016-17 and Rs.44 crore is also expected to be released till 31.3.2017. Total VGF of Rs.433.19 crore has been released so far under the above Scheme. CPSUs who have started the work in December 2016 or are likely to start work in Jan./Feb.2017 are being pursued for sending the request letter for release of 1st instalment which becomes due on start of work and issue of LoI.

4.52

VGF of Rs.375.00 crore and Rs.148.00 crore is expected to be released during FY 2017-18 and 2018-19 respectively.

15000 MW GRID-CONNECTED SOLAR PV POWER PLANTS THROUGH NTPC LTD. 4.53

4.54

The Cabinet has approved the Implementation of Scheme for setting up of 15,000 MW of Gridconnected Solar PV Power projects under National Solar Mission through NTPC Ltd./ NVVN in three tranches as follows : Tranche-I

:

3,000 MW: 2014-15 to 2016-17

Tranche-II

:

5,000 MW: 2015-16 to 2017-18

Tranche-III :

7,000 MW: 2016-17 to 2018-19

In Tranche-I, which is part of Batch-II of Phase-II of National Solar Mission, 3000 MW capacity of solar PV power plants will be based on bundling of solar power (3000 MW) with unallocated thermal power (1500 MW) in the ratio of 2:1 (in MW terms), for which the required 1500 MW unallocated thermal power will be made available by the Ministry of Power. 70

3000 MW Grid Connected Solar PV Power Projects under NSM Phase-II, Batch-II, Tranche_I – ‘State Specific Bundling Scheme’ Mechanism for implementation 4.55

The mechanism of operation of 3,000 MW capacity Solar PV plants under Tranche-I of Batch-II of Phase-II of NSM, is as follows: a) The eligible plant capacities will be minimum 10 MW and maximum may be fixed for each State lot of projects. b) The bidding will be State specific and conducted through e-bidding. c) It will be based on fixed levellised tariffs. The developers will submit bids quoting a fixed levellised tariff for the entire project duration of 25 years. d) There will be State specific tenders. The selection of bids will be done based on the tariff quoted by the bidders. Selection will be based on lowest quoted levellised tariffs. The tariff bid cannot be higher than the Applicable Tariff on the day bids are received as may be fixed by the State Electricity Regulatory Commission (SERC) for the State where the projects are to be set up/ Central Electricity Regulatory Commission (CERC). e) The bidders will be free to avail fiscal incentives like Accelerated Depreciation, Concessional Customs and Excise Duties, Tax Holidays, etc. as available for such projects. The same will not have any bearing on comparison of bids for selection. f)

NTPC Ltd. / NVVN will purchase the Solar Power generated from the selected Solar PV plants at the quoted tariffs and Thermal Power at the Tariff as determined by CERC as per Regulations from time to time for power from the respective Thermal Power Plant from which power is allocated. NTPC Ltd. / NVVN will bundle the Solar Power with unallocated Thermal Power from Coal based stations of NTPC Ltd. on 2:1 basis (2 MW of Solar with 1 MW of Thermal), and sell the Bundled Power to willing State Utilities under 25 years Power Sale Agreements (PSAs), at Weighted Average Tariff of the Solar and Thermal components plus Trading Margin of Paisa Seven (7) per kWh. The weighted average tariff will be separately calculated for each State for the solar Power.

g) Excess power whether generated in normal course or through repowering will be purchased at a notional support price of Rs. 3/kWh only. It will be at the option of the developer to offer it (excess power) to NTPC/ NVVN or sell in open market. Further, the developer will be free to sell power to any one for period beyond 25 years of firm PPA offered by NTPC Ltd. / NVVN.

Current Status (as on 31.12.2016): 4.56

Based on the requests received from various States for allocation of solar power under the 3000 MW State Specific Bundling Scheme under NSM Phase-II, Batch-II, the following State-wise allocations have been made:

71

Sl. No.

1 2 3 4 5

State/ UT

Andhra Pradesh Karnataka Rajasthan Telangana Uttar Pradesh TOTAL

Capacity allotted in OPEN category (MW)

1100 500 550 350 100 2600

Capacity allotted in Domestic Content Requirement (DCR) category (MW) 150 100 100 50 00 400

In Solar Parks

Outside Solar Parks

1250 600 420 0 0 2270

0 0 230 400 100 730

Total Capacity allotted (MW)

1250 600 650 400 100 3000



Notice Inviting Tender Published for full Tranche-I of 3,000 MW.



Reverse auction completed: 2750 MW.



Power Sale Agreement Signed with State Discoms: 2750 MW



Letter of Intent issued to successful bidders: 2750 MW



PPAs signed with Solar power developers: 2700 MW.



Lowest bid for solar power in the country (without any VGF) @ Rs. 4.34/unit has been received for solar PV power plants to be set up at Bhadla Solar Park in Rajasthan under this scheme

GRID-INTERACTIVE ROOFTOP & SMALL SPV POWER PLANTS PROGRAMME Background 4.57

With an objective of increasing energy security, reducing fossil fuel imports and a cleaner environment, the Government of India (GoI) has set a target of 1,00,000 megawatts (MW) of solar installations by the year 2022, out of which 40,000 MW are targeted for rooftop solar photovoltaic (RTS) systems.

4.58

There is a large potential available for generating solar power using unutilized space on rooftops and wastelands around buildings. Small quantities of power generated by each individual household, industrial building, commercial buildings or any other type of building can be used to partly fulfill the requirement of the building occupants and surplus, if any, can be fed into the grid. If the existing roof space of buildings is utilized, the Grid Connected SPV Rooftop systems on buildings can also replace/ supplement the existing DG gensets installed for minimum load requirement for operation during load shedding

4.59

In a solar rooftop system, the solar panels are installed in the roof of any residential, commercial, institutional and industrial buildings. This can be of two types (i) Solar Rooftop System with storage facility using battery, and (ii) Grid Connected Solar Rooftop System.

4.60

In grid connected rooftop or small SPV system, the DC power generated from SPV panel is converted to AC power using power conditioning unit and is fed to the grid either of 33 kV/11 72

10MW Grid connected Solar Rooftop Power Plant, Punjab

kV three phase lines or of 440/220 Volt three/single phase line depending on the capacity of the system installed at institution/commercial establishment or residential complex and the regulatory framework specified for respective States.

Scheme Details and Achievement 4.61

The Ministry is implementing a programme on Grid Connected Rooftop and Small Solar Power Plants Programme which is providing subsidy upto 30% of benchmark cost for the general category states and upto 70 % of benchmark cost for special category states, i.e. North Eastern States including Sikkim, Uttarakhand, Himachal Pradesh, Jammu & Kashmir and Lakshadweep, Andaman & Nicobar Islands is available for residential, institutional and social sector. For Government sector incentives upto 25% of the benchmark cost is provided. About 4200 MW is being targeted under this scheme.

4.62

So far, 3044 MWp solar rooftop systems have been sanctioned/ approved of and aggregate 506 MWp have been installed in residential, industrial, commercial and institutional sectors. Solar rooftop projects are being implemented by State Nodal Agencies (SNA’s), Solar Energy Corporation of India (SECI), Public Sector Undertakings (PSUs) and other Multi Government Agencies (MGAs), Private Developers etc.

4.63

The major infrastructure sector i.e. Metro Rail Projects, Railways, Airports, Jal Boards, Shipping, Sports Stadia, Oil Companies, Factories etc. are also coming forward for installation of Grid Connected Solar Rooftop Plants.

4.64

Model Power Purchase Agreement (PPA), Memorandum of Understanding and Capex Agreement have been developed duly vetted by Department of Expenditure (Ministry of Finance) and Department of Legal Affairs, Ministry of Law & Justice. 73

4.65

Solar Energy Corporation of India has tendered 500MWp for Social, Institutional and Residential Sector and 1000 MWp tender for Government Sector including PSUs

4.66

In addition, 1187 Channel Partners/ New Entrepreneurs have been empanelled which are engaged in the promotion/generation of solar power in the country.

4.67

Ministry (MNRE) has been collating data about RTS potential of rooftops and surplus areas of Government building premises of various Ministries/Departments. Based on the data available till now for about 50 Ministries/Departments, about 5900 MW power and annual financial savings of Rs.830 crore can be achieved by these Ministries/Departments.

4.68

The ministry has recently organized a national workshop on 7th June 2016 in New Delhi wherein Commitment Certificate of about 3800 MWp has been received from different Ministries/ Departments. In addition 3 important reference documents were released:

4.69 4.70



Compendium of policies and regulations of GOI, State/UTs



Best Practice Guide on Solar Rooftop

• Working paper on international solar alliance: nurturing possibilities Solar Rooftop Calculator has also been developed for financial calculations of grid connected solar rooftop projects on PAN India basis. An online platform namely SPIN has been developed for submission of online proposal, project completion reports, empanelment of channel partners/ New Entrepreneurs / Govt. Agencies etc., data management, communications etc. SPIN stands for Solar Photovoltaic installations is an e-governance of initiative of the Ministry. It is an online system designed to monitor almost all activities involved in Solar Rooftop Installations. It contains a useful tool for calculating the rooftop area or estimate for installation of rooftop for a lay man and provision for entering his request for installing the SPV system. For mobile users there is provision for QR Code. For

2 MWp grid connected solar rooftop plant at Kolkata Airport, AAI

74

198 kWp grid connected solar rooftop plant at Pitambera Polymers Industries Pvt Ltd, Maharashtra

agencies whether it is New Entrepreneur, Channel Partner or Govt agencies or SNAs or any other agencies provision is there for the registration to empanelment and applying for target and disbursement of subsidies. SPIN is also inbuilt with the utilities like email and SMS for communicating to various stake holders. It is a one stop portal for Govt. of India’s prestige programme Solar Rooftop Installations. The SPIN is designed and developed by National Informatics Centre (NIC).

4.71

a) Mobile App has also been developed for Solar Rooftop Project b) The technical particulars have been finalised for DG S& D rate contract for Government procurement. c) State/UT governments on 21st June 2016 were requested to submit their Commitment Certificate for installation of rooftop solar projects in their States/UTs. MNRE has developed a panel of expert PSUs for facilitating Ministries/State Governments in bidding process. Ministry/ State Government may also choose to implement RTS projects through their own PSUs/other notified designated agencies in the scheme such as State Nodal Agencies, DISCOMS, ULBs, channel partners for commercial and industrial and their own PSUs. These PSUs are expected to survey potential, submit brief feasibility report, collate RTS projects of various Departments, undertake bidding in model chosen by Department and facilitate signing of agreement between selected developer and the Department. The 3% service/Project Management Consultancy (PMC) charges for such PSUs/designated agencies (except channel partners) will be provided by MNRE.

4.72

In addition, the Ministry is also promoting solar rooftops in the solar cities/smart cities. More than 45 MWp grid connected solar rooftop plants have been installed in these solar cities. In smart city guidelines the minimum 10% energy supply to be met from Solar power.

4.73

Training of Surya Mitras and staff of DISCOM/SNA.

4.74

MNRE is interacting with DISCOMs from all over the country in their review meeting being organized by Ministry of Power every month to seek their cooperation.

4.75

Ministry has also started geo-tagging of the solar rooftop projects. 75

100 kWp Grid Connected Solar rooftop Power Plant at Municipal Office & Council Hall Building, Vijayawada, Andhra Pradesh

Initiatives by States/UTs 4.76

Electricity Regulatory Commissions of 34 States/UTs namely Andaman and Nicobar Islands, Andhra Pradesh, Assam, Bihar, Chandigarh, Chhattisgarh, Dadra and Nagar Haveli, Daman and Diu, Goa, Gujarat, Haryana, Himachal Pradesh, Jammu and Kashmir, Jharkhand, Karnataka, Kerala, Lakshadweep, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram NCT of Delhi, Orissa, Puducherry, Punjab, Rajasthan, Sikkim, Tamil Nadu, Telangana, Tripura, Uttar Pradesh, Uttarakhand and West Bengal have notified regulations for feed-in-tariff.

4.77

So far, 20 States namely Andhra Pradesh, Chhattisgarh, Delhi, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir ,Jharkhand, Karnataka, Kerala, Madhya Pradesh, Manipur, Punjab, Puducherry, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, Uttarakhand and West Bengal have come out with Solar Policy supporting grid connected rooftop systems. Govt. of Haryana, Chhattisgarh and Chandigarh has issued mandatory notification for installation of solar rooftop plants for certain categories of buildings.

4.78

Chief Electrical Inspector (CEI) inspection has been made optional by States of Andhra Pradesh, Haryana and Rajasthan for solar rooftop plants upto certain capacity.

Initiatives for loans and International funding 4.79

Reserve Bank of India has included renewable energy projects under priority sector lending for which bank loans up to a limit of Rs.15 crore to borrowers will be available for renewable energy projects including grid connected solar rooftop and ground mounted systems. For individual households, the loan limit is Rs.10 lakh per borrower.

4.80

Department of Financial Services has advised all Public Sector Banks to provide loans for grid connected rooftop solar systems as home loan/ home improvement loan. So far, ten PSBs 76

namely Bank of India, Syndicate Bank, State Bank of India, Dena Bank, Central Bank of India, Punjab National Bank, Allahabad Bank, Indian Bank, Indian Overseas Bank and State Bank of Bikaner & Jaipur have given instructions to their branches. 4.81

Department of Expenditure has reduced the Guarantee fee from 1.2% to 0.5% for multilateral loan of USD1370 million including World Bank loan of USD620 million through State Bank of India, Asian Development Bank loan of USD500 million through Punjab National Bank and New Development Bank loan USD250 million through Canara Bank .

4.82

Multilateral grant of USD5 million by ADB, USD1.8 million from USAID and USD28.8 million from World Bank has been approved for solar rooftop programme

4.83

Indian Renewable Energy Development Agency has formulated a scheme of low cost financing with interest rate of 9.9% to 10.75% per annum.

Other Important activities a) The Central Electricity Authority (CEA) has also notified the “Installation and Operation of Meters” guidelines vide its amendment regulation in 3rd December 2014. b) Awareness and publicity campaign, country-wide to be launched through electronic and print media. c) Motivating the major sectors through awards/incentives. d) Interacting with the banking sector for channelization of subsidy through them and availability of low cost finance for different sectors

PILOT-CUM-DEMONSTRATION PROJECT FOR DEVELOPMENT OF GRID CONNECTED SOLAR PV POWER PLANTS ON CANAL BANKS AND CANAL TOPS. 4.84

With the objective of achieving gainful utilization of the unutilized area on top of Canals and also the vacant Government land along the banks of Canals wherever available, for setting up Solar PV power generation plants for feeding the generated power to Grid, the Government of India, under National Solar Mission (NSM), has approved the implementation of “Pilot-cumDemonstration Project for Development of Grid Connected Solar PV Power Plants on Canal Banks and Canal Tops”.

Administrative Approval issued on 5th December, 2014. Target 4.85

100 MW Grid Connected Solar PV Power Plants on Canal Banks and Canal Tops (50 MW on Canal Tops and 50 MW on Canal Banks) Implementation Arrangements

4.86

Applicability: All the States and Union Territories having Canal network will be eligible for benefits under the scheme. However, the Scheme may be availed by only those States which have either fulfilled their Solar RPOs or commit to do so within a given time frame.

4.87

Eligibility: State Power Generation Companies/ State Government Utilities/ any other State Government Organization/ PSUs/ GoI PSUs or GoI organisations, provided that they are operating in power sector or own canal systems, i.e. are into irrigation. Proposals from States in Project mode will also be acceptable on completion during 2014-15 or later. 77

4.88

Implementation agency: The solar PV power plants will be developed by the State Power Generation Companies/ State Government Utilities/ any other State Government Organization/ PSUs/ GoI PSUs or GoI organizations, provided that they are operating in power sector or own canal systems, i.e. are into irrigation.

4.89

Scheme Manager: The Scheme manager on behalf of MNRE would be Solar Energy Corporation of India (SECI) under the MNRE. SECI will handle funds to be made available under the scheme on behalf of GOI, for which they will be provided service charge of 1% of the funds handled/ routed through them.

4.90

Mode of Operation of Scheme: The solar PV power plants will be developed by the State Power Generation Companies/ State Government Utilities/ any other State Government Organization/ PSUs/ GoI PSUs or GoI organizations, provided that they are operating in power sector or own canal systems, i.e. are into irrigation. The Scheme manager on behalf of MNRE would be Solar Energy Corporation of India (SECI) under the MNRE. The Implementing Agency will submit the application / proposal for setting up Grid-connected Solar PV Power Plants on Canal Banks/ Canal Tops to MNRE. MNRE/SECI will analyze/ scrutinize the application/ proposal and if found appropriate, MNRE will sanction the project, including the ones in project mode made during 2014-15. Thereafter, SECI shall release the capital subsidy of upto Rs.3 crore/MW for Canal Top SPV projects and Rs.1.5 crore/MW for Canal Bank SPV Projects.

Central Financial Assistance (CFA) •

Rs.3 crore/MW or 30% of the project cost, whichever is lower, for Canal Top SPV projects and Rs. 1.5 crore/MW or 30% of the project cost, whichever is lower, for Canal Bank SPV projects.



CFA of upto Rs.225 crore for 100 MW (50 MW on Canal Tops and 50 MW on Canal Banks) to be disbursed over a period of maximum 2 years post sanctioning of the plants as under:

-

upto 40% on sanctioning of the projects.

-

60% on successful commissioning of the projects.



Service charge to SECI @1%: Rs.2.25 crore.

Current Status 4.91

Based on the requests received from various States for allocation of canal-top/ canal-bank solar power projects under the “Pilot-cum-demonstration project for development of grid connected solar PV power plants on canal banks and canal tops”, In-Principle approval given for setting up full targeted capacity of 50 MW canal-top and 50 MW canal-bank solar PV power projects, in Tables 4.8 and 4.9.

78

Canal Bank Solar Power project at Teesta Canal Full Stage -II Hydro Electric Power Station of WBSEDCL, Haptiagach, Block - Chopra, Dist. - Uttar Dinajpur, West Bengal.

Table 4.8 State-wise Allocation of 50 MW Canal-Top Solar PV projects Sl. No.

1 2 3 4 5

State

Implementing Agency in the State

Andhra Pradesh New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP) Gujarat Sardar Sarovar Narmada Nigam Limited (SSNNL) Karnataka Krishna Bhagya Jala Nigam Limited (KBJNL) Kerala Kerala State Electricity Board Limited (KSEB) Punjab Punjab Energy Development Agency (PEDA)

Capacity for which Commissioned As in-principle apon 31.12.2016 proval has been given (MW)

1 MW canal-top

yes

10 MW canal-top

--

10 MW canal-top

--

2 MW canal-top

---

20 MW canal-top

--

6

Uttarakhand

Uttarakhand Jal Vidyut Nigam Limited

1 MW canal-top

--

7

Uttar Pradesh

Uttar Pradesh Irrigation Department

6 MW canal-top

--

Total

50 MW canal-top

Table 4.9 State-wise Allocation of 50 MW Canal-Bank Solar PV Projects Sl. No.

State

Implementing Agency in the State

1

Andhra Pradesh

2

Gujarat

3

Kerala

4

Uttarakhand

5

West Bengal

Andhra Pradesh Power Generation Corporation Limited (APGENCO) Sardar Sarovar Narmada Nigam Limited (SSNNL) Kerala State Electricity Board Limited (KSEB) Uttarakhand Jal Vidyut Nigam Limited West Bengal State Electricity Distribution Company Limited (WBSEDCL)

Total

Capacity for which Commissioned As on 31.12.2016 in-principle approval has been given (MW) 5 MW canal-bank yes

15 MW canal-bank -1 MW canal-bank

--

19 MW canal-bank

---

10 MW canal-bank

yes

50 MW canal-bank

79

4.92 CFA of Rs.69.0 crore already released to SECI for onward disbursal to Project Implementing Agencies of the respective States. 4.93 Further CFA of Rs.159 crore (including service charges of SECI) to be released through SECI in 2016-17, 2017-18 and 2018-19.

OFF GRID SOLAR PHOTOVOLTAICS 4.94 Under the Off-grid and Decentralized Solar Applications for the year 2016-17, the Ministry 1 MW canal-top solar PV power project commissioned by provides 30% subsidy on the cost of the system NREDCAP on Losari Canal, Gollavanitippa, Bhimavaram Rural ranging from Rs. 21/- per watt peak to Rs.120 /(M), West Godavari District, Andhra Pradesh. depending upon the capacity of the modules and configuration of the solar photovoltaic systems /plants in General Category States in the country. 4.95

The Ministry is also providing subsidy of 40% of the capital cost limited to Rs. 160/Wp (LED based) upto 40 Watt peak & Rs. 100/Wp for system above 40 Wp limited to 300 Wp by individuals through NABARD, Regional Rural Banks and other Commercial Banks. For balance of the cost, the banks extend credit facility to the beneficiary at usual commercial rates. 300 Wp to 1 KWp systems are also covered under the scheme but the subsidy is limited to 300 Wp only. The RRBs and other Commercial Banks extended the loan for balance cost of the systems at normal interest rates. Regional Rural Banks and Commercial Banks are extending loans to the consumers and directly disbursing subsidy for solar home lighting systems and small Capacity PV systems under the financing of Off-grid Solar Applications Programme. Banks have extended loans for 1,12,445 solar lighting systems during the last year and the current year as on 30 Nov, 2016.

4.96

For installation of stand-alone SPV power plants by Central and State Government Bodies and their establishments in Special Category States and North East States and Islands the Ministry provides 90% subsidy ranging from Rs.72/- to Rs.396/- for off-grid solar PV applications.

4.97

To meet unmet community demand for electricity or in un-electrified rural areas, standalone SPV power plants with battery storage in a micro grid mode/ local distribution network, would be provided in the range of Rs.85 /Wp to Rs.115/Wp of capital subsidy.

4.98

For Solar Water Pumping system, the capital subsidy ranges from Rs.27,630 per Hp to Rs.57,600 per Hp depending upon category and capacity.

4.99

DST has initiated a concept on Micro Solar Dome (MSD) which is based on the Principle of passive as well as active solar device and gives day and night lighting solution. The PV Integrated Micro Solar Dome has been included as a product for off grid solar lighting applications by Ministry of New and Renewable Energy and is eligible for subsidy at par with other solar lighting products. Attempts are being made to integrate Surya Jyoti for subsidy in rural and urban housing schemes, MP Local Area Development Schemes and corporate social responsibility activities of public sector enterprises 80

ATAL JYOTI YOJNA (AJAY) 4.100

Government of India is committed to No. of Constituencies providing quality & reliable power supply at reasonable prices through its 100 80 policies and programmes. The Ministry 80 of New and Renewable Energy (MNRE) 60 40 has launched Atal Jyoti Yojna which 40 21 is one such programme. Under this 14 14 20 programme, Solar LED Street Lights 0 in rural, semi-urban and urban areas Uttar Pradesh Bihar Odisha Jharkhand Assam will be installed across states of Uttar Pradesh, Assam, Bihar, Jharkhand and Odisha where the household electrification is less than 50% as per 2011 Census by March 2018.

4.101

The installation of Solar LED Street Lights will ensure ample light in major roads, markets, public conveniences etc. in remote areas and would help the citizens of our country lead a safe and secure life.

Implementing Agency in the Scheme 4.102

Energy Efficiency Services limited (EESL) has been appointed as the Implementing Agency by MNRE. EESL, a Joint Venture of four Public Sector Undertakings (PSUs) of Ministry of Power (MoP), Government of India, was established in 2009 as the implementation arm of MoP and Bureau of Energy Efficiency (BEE), Govt. of India. The objective of EESL is to lead the market transformation initiatives of Government, of India under the National Mission for Enhanced Energy Efficiency (NMEEE) as well as to create and sustain markets for energy efficiency

4.103

A total of 154 MWp capacity solar PV off-grid systems/power plants have been installed till 31st Dec, 2016. Some major Off-grid Solar PV projects sanctioned during 2016-17 are as follows: •

16 Solar power plants with aggregate capacity of 440 kWp and 400 Solar Street Lights (LED) at various locations in Rangia Sub Division in the state of Assam.

500 kW Solar Power Plant at High Court Bilaspur, Chhattisgarh

81

A Solar Pump at Dhundi village in Anand district, Gujarat



102 x 1.6 kWp Solar power plant each at police stations in the state of Andhra Pradesh.



4,900 solar home systems in various districts of Bihar.



250 SPV Power plants of with aggregate capacity of 600 kWp at individual households/ schools/offices in the state of Chhattisgarh.



4,000 Solar Pumps in the state of Gujarat



21,000 solar home systems in various districts in the state of Haryana.



10,110 SPV Street Lighting Systems (LED) in scheduled cast concentrated villages in the state of Himachal Pradesh.



19,013 solar street lighting systems in various district of Jammu & Kashmir.



9 Mini-grid solar power plants with aggregate capacity of 219 kWp at nine villages in Gumla district of Jharkhand

• 4.104

5,00,000 Solar Urja Lamps (SoUL) for school going children in various states by Indian Institute of Technology, Bombay During the year, the solar systems having total capacities of 76.32 MWp which includes solar lanterns, solar home lights, solar street lights, solar pumps, mini/micro grids and power plants

A 1 kWp Solar PV System at Guntur, Andhra Pradesh

82

Solar Cold Storage system installed at Jagdalpur, Chhattisgarh

A 3 HP Solar Water Pump at Village Vasudevpur, Distt. Amethi, UP

were installed in various States. Some of the highlights of the completed projects during the financial current year are given below-

4.105



2,600 solar street lights have been installed at various villages of Rajasthan.



Solar power plants having total capacity of 2,467 kWp have been installed at various places including industries in Chhattisgarh.



12,100 solar street lights have been installed at villages of Himachal Pradesh.



100 SPV Power plants of 1 kWp capacity each at 100 Schools in Barmer district of Rajasthan.



3,161 no. of solar pumps in Gujarat at various places. Photo shows an installation of solar pump at Dundi village in Anand district, Gujarat.

MNRE is also strengthening standards to manage the quality of Off Grid systems and prepared detailed specification for major Off Grid applications such as solar lantern, homelight, street light, inverter, modules, solar pumps etc. MNRE has also accredited 12 labs for testing of various Off Grid applications following MNRE technical specifications.

50 KW Rooftop SPVPP Installed at Collectorate Building, Korba, Chhattisgarh

Solar Home Lighting system installed at Distt. Sukma, Jagdalpur, Chhattisgarh

83

Solar Street Lights installation during last five years including current year (31.12.2016)

Solar Street Lights 70000 60000

62968 56542

58537

55304

Numbers

50000 40000 30000

18800

20000 10000 0 2012-13

2013-14

2014-15 Year

2015-16

2016-17

Solar Pumps installation during last five years including current year (31.12.2016)

Numbers

Solar Pumps 45000 40000 35000 30000 25000 20000 15000 10000 5000 0

38687 31472

18043

1055

2800

2012-13

2013-14

2014-15 Year 84

2015-16

2016-17

Solar lanterns installation during last 5 years including current year (31.12.2016)

Solar Lanterns 35000 30000 25000

Numbers

31407

29121 20000

20000 15000

10000

10000 5000

0

0 2012-13

2013-14

2014-15

2015-16

2016-17

Year

Solar Home Lighting Systems installation during last 5 years including current year (31.12.2016)

Numbers

Solar Home Lighting Systems 180000 160000 140000 120000 100000 80000 60000 40000 20000 0 2012-13

2013-14

2014-15

2015-16

2016-17

Year

Table 4.10: Cumulative Systems installed up to 31.12.2016 SPV Systems Solar lanterns Nos Solar home lights Nos Solar street lights Nos Solar pump Nos Power plants MWp

Cumulative up to 31.12.2016 996841 1396036 442936 100521 172

85

Table 4.11: State wise Cumulative Installation of SPV Systems as on 31-12-2016 S. No.

State/UT

Solar Photovoltaic Systems Lanterns Nos.

Home Lights Nos.

Street Lights Nos.

Pumps Nos.

Stand Alone power plants (KWp)

1.

Andhra Pradesh

51360

22972

7812

8952

3785.595

2.

Arunachal Pradesh

14433

18945

1671

22

600.1

3.

Assam

1121

6926

318

45

1605

4.

Bihar

50117

12303

955

2882

3968.6

5.

Chhattisgarh

3311

7754

2042

5388

27867.72

6.

Delhi

4807

0

301

90

1269

7.

Goa

1093

393

707

15

32.72

8.

Gujarat

31603

9253

2004

7620

13576.6

9.

Haryana

93853

56727

22018

543

2321.25

10.

Himachal Pradesh

33909

22592

58508

6

1390.5

11.

Jammu & Kashmir

51224

65319

5806

39

7719.85

12.

Jharkhand

23374

9450

620

2901

3539.9

13.

Karnataka

7334

49644

2694

3200

4676.41

14.

Kerala

54367

40412

1735

810

13894.39

15.

Madhya Pradesh

9444

4016

9378

3813

3654

16.

Maharashtra

68683

3497

10420

1503

3857.7

17.

Manipur

18.

Meghalaya

19.

4787

3900

1888

40

1241

24875

7844

1273

19

884.5

Mizoram

9589

6801

5056

37

1719

20.

Nagaland

6766

1045

6235

3

1506

21.

Odisha

9882

5274

5834

6673

567.515

22.

Punjab

17495

8626

21758

1857

1950

23.

Rajasthan

4716

151964

6852

37306

10850

24.

Sikkim

23300

15059

504

0

850

25.

Tamil Nadu

16818

226946

36802

4763

12752.6

26.

Telangana

0

0

244

424

5368

27.

Tripura

64282

32723

1199

151

612

28.

Uttar Pradesh

62015

235909

185091

8958

10041.46

29.

Uttarakhand

93927

91595

21905

26

1534.03

30.

West Bengal

17662

145332

8726

653

1730

31.

Andaman & Nicobar

6296

468

390

5

167

32.

Chandigarh

1675

275

898

12

730

33.

Lakshadweep

5289

0

1725

0

2190

34.

Puducherry

1637

25

417

21

121

35.

Others

125797

24047

9150

0

23885

36.

NABARD

0

108000

0

1744

0

996841

1396036

442936

100521

172458

Total

86

Table 4.12: State wise SPV Systems installed during 2016-17 as on 31.12.2016 S. No.

State/UT

Solar Photovoltaic Systems Lanterns Nos. Home Lights Nos.

Street Lights Nos.

Pumps Nos.

Stand Alone power plants (KWp)

1.

Andhra Pradesh

0

0

0

3174

153

2.

Arunachal Pradesh

0

0

600

4

0

3.

Assam

0

0

0

0

0

4.

Bihar

0

4900

0

1000

2947

5.

Chhattisgarh

0

0

0

3848

4969

6.

Delhi

0

0

0

0

0

7.

Goa

0

0

0

0

0

8.

Gujarat

0

0

0

5218

0

9.

Haryana

0

0

0

0

0

10.

Himachal Pradesh

0

0

34450

0

15

11.

Jammu & Kashmir

0

0

0

0

158

12.

Jharkhand

0

0

0

2901

0

13.

Karnataka

0

0

0

420

0

14.

Kerala

0

0

0

0

10000

15.

Madhya Pradesh

0

0

0

2007

928

16.

Maharashtra

0

0

127

1252

0

17.

Manipur

0

0

960

0

0

18.

Meghalaya

0

0

0

0

0

19.

Mizoram

0

0

3625

0

534

20.

Nagaland

0

0

1764

0

214

21.

Odisha

0

0

0

5516

0

22.

Punjab

0

0

11000

0

0

23.

Rajasthan

0

7400

0

5983

500

24.

Sikkim

0

0

0

0

0

25.

Tamil Nadu

0

97859

0

849

338

26.

Telangana

0

0

244

424

1231

27.

Tripura

0

0

0

0

230

28.

Uttar Pradesh

0

0

2200

3742

240

29.

Uttarakhand

0

0

334

0

0

30.

West Bengal

0

0

0

605

0

31.

Andaman & Nicobar

0

0

0

0

0

32.

Chandigarh

0

0

0

0

0

33.

Lakshadweep

0

0

0

0

0

34.

Puducherry

0

0

0

0

0

35.

Others

0

0

0

0

0

36.

NABARD

0

0

0

1744

0

TOTAL

0

110159

55304

38687

22457

87

BOX 4.2 Mini-Grid Uttar Pradesh is making efforts to tap resources to improve the availability endowed with vast potential of solar power in the State by promoting the establishment of power projects. In order to provide ensured power supply to rural households in the State for minimum basis facilities e.g. lighting in night, fan, mobile charging, entertainment etc. Government has taken important role in creating and enabling frame work for building sustainable Mini-Grid’s. As per policy provisions the Mini-Grid projects shall be installed in un-electrified habitations/hamlets and in contiguous undeveloped and backward rural/urban areas deprived of conventional grid or with relatively less supply of electricity. There are two modes of implementation i.e. with and without State Government Subsidy. This was the first Mini-Grid Policy announced by any Indian State. U.P. Electricity regulatory commission has also outlined the regulatory frame work which is based on and aligned to the Mini-Grid Policy. Policy/Regulations has provision of following Exit Options on Grid arrival in order to secure the investment of Mini-Grid Operators: a) Continue to supply entire quantum of electricity generated to the consumers. b) Sell excess/surplus electricity to Distribution Licensee at feed in tariff (FIT) c) Generate and supply entire electricity generated to the Distribution Licensee at feed in tariff (FIT) Prior to announcement of the policy the State Government had established Solar Mini-Grid Power Plant capacity 250kW on Pilot Basis in year 2014-15 in village Fakirpur and Chanduahar of district Kannauj on full Government Grant.

Benefits of the Mini-Grid Projects: • Customized, Reliable and affordable power to villages • Availability of power during peak hours (5 p.m. to 11 p.m.) • Kerosene replacement with LEDs, Diesel Elimination at anchor loads • Carbon Mitigation • Local employment • Local entrepreneur development with availability of reliable power • Upliftment of economic conditions of villages • Saving of Government Lands as the projects are to be set up on private Lands. Mini Grid Solar Power Plant Village - Atrauli, District Hardoi, U.P.

88

BOX 4.3 Million Solar Urja Lamp (SoUL) Program India has one of the youngest populations in the world, with 350 million children less than 14 years of age making school education essential for future of the country. However, 221 million people residing in India are still without electricity access and many more with poor quality of supply (IEA, 2015). Many young school going students either do not have access to alternate clean light source or suffer from erratic electricity supply, both of which affect their study during evening hours. Alongside ‘Right to Education’, it is desirable to provide ‘Right to Clean Light’ and hence there is a need for a countrywide, self-sustainable solar lamp program. One million SoULs were distributed during 2014-16 in 4 Indian states of Madhya Pradesh, Maharashtra, Rajasthan and Odisha, covering 23 districts, 97 blocks and more than 10,900 villages. There are 54 assembly and distribution centers and 350 SRCs in operation, with training provided to 1,409 local people. While implementing, 7,35,000 lamps were distributed in just 9 months between July 2014 to March 2015, while remaining 2,65,000 lamps in 4.5 months from November 2015 to March 2016. With 77 percent tribal blocks (as defined by Ministry of Tribal Affairs) and 83 percent educationally backward blocks (as defined by Ministry of Human Resource and Development) amongst its intervention blocks, MSP focused on reaching most marginalized population. The impact analysis of the MSP revealed that SoULs have replaced one kerosene wick lamp in beneficiary households, thus contributing to saving kerosene consumed for lighting. Besides its usage for study purpose, it was an aid in various other domestic and livelihood activities. The objective of the Million Solar Urja Lamp (SoUL) Program developed and executed by IIT Bombay is to provide clean light for study purpose to each and every child in the country, in the fastest possible way and in the most cost-effective manner. Benefit and Impact of the Project: Being the central coordinating agency, expertise of IIT Bombay in solar technology, operations management and socio-economic impact analysis were integrated in the MSP. Assembly-cum-distribution centers were established at the block level (a unit of intervention), in premises of 9 partnering NGOs. Locals from intervention blocks were hired and trained to assemble high quality solar study lamps, campaign and distribute lamps to the target beneficiaries (i.e. school students enrolled between classes 5th to 12th), there by encouraging Local employment, entrepreneurial skills, affordable power, upliftment of weaker section of the society and by contribution to the cause of Right to Education.

89

BOX 4.4 GUJARAT Solar Water Pump Sets for Agriculture purpose In Gujarat, the power consumption for agriculture pump sets is more than 20 % of the total consumption, which increases year by year, because the DISCOMs are releasing approximately about 1 lakh connections per year. The issues faced by the DISCOMs with regard to release of agriculture connections are as under. • The power tariff to agriculture category is subsidized and subsidy burden is increasing due to the increase in conventional power costs. • There are a large number of agriculture pump sets using diesel, where there is no electricity connection • Due to large geographical area, huge infrastructure i.e. length of HT line and transformer centre is required to cater power supply to agriculture. • Huge waiting list of more than 3.70 lakhs applications for Agriculture connections. In view of above, to reduce burden of subsidy on the State Govt., to save huge expenditure on infrastructure like HT line, transformer etc. & with a view to promote renewable energy, the State Government has implemented Scheme of Solar Water Pump Sets for Agriculture pump sets to be installed at various locations of DISCOMs from FY-2014-15. MNRE is also providing Central Finance Assistance i.e. Rs.32400/- per HP for AC Pump and Rs.40500/- per HP for DC Pump under Solar Water Pumping System.

For the implementation of the Scheme, the State Government had approved budgetary provision of Rs.50 crore, Rs.60 crore & Rs.125.50 crore for FY 2014-15, FY 2015-16 & 2016-17 respectively. Beneficiaries Criteria for Availing the Benefit of the Scheme. Registered, FQ paid and FQ under payment for conventional Agriculture connection beneficiaries can switch over their applications for Solar Water Pump sets. Farmers who have not applied for conventional agriculture connection can also register their applications for Solar Water Pump scheme. Scheduled caste farmer/ Tribal farmer is required to pay Rs.1000/- per HP only & All other category farmers have to pay Rs.5000/- per HP only for setting up the solar pump sets as onetime payment.

90

SOLAR WATER HEATING SYSTEM 4.106

A 100 LPD Solar Water Heating (SWH) System having 2 square meter of collector area, can replace an electric geyser of 2 KW capacity for residential use and may save upto 1,500 units of electricity and up to 1.5 tons of CO2 per year depending upon the location of installation.

4.107

The gross potential for solar water heating systems in India has been estimated to be about 140 million sq. m. of collector area. However, we have achieved about 12 million sq.m collector area. There is a lot of potential for Solar Water Heating Systems in the country.

4.108

The cumulative targets set for installing Solar Collector area under National Solar Mission (NSM), are 15 million square meters up to 2017 and 20 million square meter up to 2022 respectively. Under this, around 12 million square meter collector area has been installed by 31/03/2016 against the total target of 15 million square meters. Residential sector dominates among others and contributed around 85% of the total installations. Note: The scheme has been discontinued w.e.f. 01.10.2014 onwards because the market of the Solar Water Heating System has reached a level to sustain with own technology and competency due to vigorous Research & Development and nation-wide publicity through print and electronic media. (i) Only special projects and successful schemes may be continued. (ii) Subsidy will continue for solar driers and space heating. (iii) The Channel Partners as well as SNAs will be free to continue to deploy solar water heaters at their end without MNRE subsidy.

4.109

MNRE also has a system of testing and certification of products through accredited labs, making channel partners after rating by credit rating agencies and we are also working on five star rating for solar water heaters. These provisions will be continued so that the customers get quality product and the support available from MNRE for developing the entrepreneurs and companies in this regard is available for further development of the sector.

4.110

Bureau of Indian Standards (BIS) standards have been established for Flat Plate Collectors (FPC) along with appropriate test facilities. BIS has also notified standards for Evacuated Tube Collector (ETC) Solar Water Heating Systems.

4.111

Solar water heaters have become very popular in Karnataka, Maharashtra, Gujarat, Telangana, Kerala, Tamil Nadu and Puducherry etc. Efforts are being made to extend the coverage to other States too. The Ministry is still financially supporting the deployment of Solar Water Heaters in schools/hospitals in backward and/or power deficient and inaccessible areas.

4.112

Extensive publicity and awareness campaigns are taken up through print and electronic media in a large number of cities in various States where potential for installation of solar water heating systems is high. Seminars, workshops and business meets are organized with different stakeholders to focus on accelerating solar water heater deployment in different sectors and potential cities in the country.

4.113

Solar Dryer and Space Heating The MNRE has also initiated and taken positive steps and measures in the direction of applications of Solar Air Driers and Space Heating. Ministry has been working in close association with various Ministries, Institutions and agencies to develop the application of Solar Air Driers 91

and Space Heating in various horticulture and animal husbandry produces. MNRE in cooperation with Deutsche Gesellschaft fuer Internationale Zusammenarbiet (GIZ), is implementing a project on “Solar Thermal Solution for Space Heating in Ladakh (SolLad)”, in Ladakh Region. As part of this project, GIZ has been collaborating with local state agencies and various other stakeholders. On the basis of the experience, Kargil Renewable Energy Development Agency has come up with a proposal to install 1000 Nos of Solar Space Heating systems in the region of Leh and Kargil. 50 kg Solar Turmeric drier at Mizoram, India

OFF-GRID SOLAR THERMAL PROGRAMME Concentrating Solar Thermal (CST) Technologies for Community Cooking, Process Heat and Cooling applications 4.114

India is running the largest renewable capacity expansion programme in the world. The government is aiming to increase share of clean energy through massive thrust in renewable.

4.115

Ministry of New and Renewable Energy is implementing a National Programme on Solar Thermal aimed to reduce fossil fuels consumption and providing a clean, non-polluting solution to meet the process heat requirement in industrial, institutional and commercial sectors.

4.116

Industry has significantly improved its energy efficiency in recent decades. But industry’s total energy use continues to grow and majority of its energy demand is for the process heating. The major share of the heat, which is needed in commercial and industrial companies for production, processes and heating.Concentrated Solar Technologies (CSTs) track the sun’s incoming radiation with mirror fields, which concentrate the energy towards absorbers, which then transfer it thermally to the working medium. The heated fluid or steam may reach high temperatures and may be used for various processes requiring heat. CSTs can produce a range of temperatures, up to 300°C, which can be used in a variety of industrial and commercial heat applications. The industries showing good potential for implementation of solar concentrators are food processing, dairy, paper and pulp, chemicals, textiles, fertilizer, breweries, electroplating, pharmaceutical, rubber, desalination and tobacco sectors. Any industrial/ commercial establishments currently using steam/hot water for process applications can also employ CSTs with a minimum tinkering to the existing setup which can help in reduce conventional fuels which in turn will help in reducing GHG emissions. Some of the emerging concentrated solar technologies are as follows– a) b) c) d) e) f)

Scheffler Dish Fresnel Reflector based dish Paraboloid dishes Parabolic troughs Linear Fresnel Non-Imaging Concentrator 92

Achievement in CST in 2016-17 4.117

During the financial year 2016-17, a number of activities were undertaken by the Ministry and around 14 CST systems with 5200 sq. m collector/ reflector area were completed making a total of 203 systems with 51330 sq.m area installed so far in the country and 63 CST projects with 27970 sq. m collector/ reflector area are under installation for process heating, air conditioning and steam cooking requirements in industrial, institutional and commercial establishment.

National workshop on CST and Solar Cooker Excellence Awards 2016 4.118

A National Workshop on Concentrated Solar Thermal (CST) technologies and Solar Cooker Excellence Awards 2016 was organized by the Ministry of New and Renewable Energy (MNRE) in New Delhi on April 29, 2016. Shri. Piyush Goyal, Minister of State (IC) for Power, Coal and New and Renewable Energy inaugurated the workshop and felicitated 102 awardees at the CST and Solar Cooker Excellence Awards 2016.The Ministry organized the solar thermal excellence awards to recognize and encourage notable achievements in off grid and decentralized solar thermal applications programme.

4.119

The workshop was attended by over 300 CST stakeholders from across the country. In the workshop MNRE highlighted success stories of various CST based systems in the country and also released knowledge documents developed under UNDP-GEF CSH supported project.

BIS Standard for CST Technologies 4.120

To develop BIS Standards for CSTs, a core group of various stakeholders was formed and the first meeting was held on 3rd October, 2016 in Delhi. The draft standards are shared with BIS for approval and publication.

CST & Solar Cooker Excellence Awards 2016

93

Some success stories of the F.Y 2016-17 4.121

AmulFed Dairy, Gandhinagar a unit of GCMMF Ltd. has installed 615.36 Sq. m. of Parabolic Trough Collector.AmulFed Dairy which is running the world’s biggest dairy development program had successfully integrated the use of concentrated solar energy in its daily operations such as CIP (Cleaning in Process), washing, pasteurization and sterilization.

4.122

The benefits of CST installation have been encouraging. With the CST system utilized for about 6 - 8 hours every day, 10 months a year, the technology has enabled savings to the tune of Rs 14 Lakhs as fuel cost, equivalent to 50,000 Cubic meters of natural gas per annum.

4.123

4.124

Hatsun Agro, Salem, Tamil Nadu has installed 721 sq. m of Non Imaging Concentrating Collectors. A leading diary company has installed 220 no’s of CPC panels each of 3.28 m2 of area totalling 721 m2 CPC collector area in its roof top to provide hot water around 25,000 litre per day at 92-950 C for its milk processing mainly to reduce its coal consumption. The unit yields hot water more than 30000 LPD at 920 C reducing 700 -750 kg of coal per day and saving of Rs 4000 per day. The installed system is expected to reduce about 6553 tonnes of CO2 emission in a working life of 15 years.

Installation of 615.36 sq. m PTC solar system at AmulFed Dairy, Gandhinagar

Installation of 721 sq. m NIC solar system at Hatsun Agro, Salem

Ultra Marine & Pigment Ltd. (UPL), Ranipet, Tamil Nadu has installed 570 sq. m of Paraboloid Dish (Dual axis) to heat up thermic oil at upto 200° C. UPL are the manufactures of pigments and surfactants used in laundry, cleaning solutions, paints, etc. for which they were previously using kerosene to reduce moisture content from their end products. UPL had installed the CST based system Installation of 570 sq. m of Paraboloid Dish at for reducing fuel consumption and carbon UltraMarine & Pigment Ltd., Tamil Nadu footprint. Post commissioning, drying a batch of pigment which earlier required 2-3 days, is now dried in less than 6 hours by hot air generated through CST system to less than 10% moisture content. System is currently drying upto 1400 Kg of pigment every day. The UPL is expected to save upto 140 kg of kerosene oil per day or 4 tonnes per month with Rs 2 Lakhs of savings per month from the CST installation. 94

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Mother Dairy, Patparganj, New Delhi has installed 1520 sq. m of Paraboloid Dish (Dual axis) for generating upto 1 Lakh Ltrs. of hot water per day at upto 85°C for cleaning application. CST system generates hot water at required temperature and stores it in insulated tanks, so as to utilize it anytime as per process requirement. This is one of the largest solar thermal projects for industrial process heating Installation of 1520 sq. m of Paraboloid Dish at Mother Dairy, New Delhi application with total solar field collector area of 1520 m2. Solar Thermal System since its inception in last two months itself has helped save more than 60,000 kg of CO2 which has been another huge advantage from this project.

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Aavin Dairy, Salem, Tamil Nadu has installed 338 sq. m of ARUN Dish for Pasteurization of milk. The Salem Union is procuring around 5.25 lakh litres of milk per day and this procured milk is pasteurized and processed into various products, such as butter, ghee, skimmed milk powder, khoya, flavoured milk, and milk shakes. The heat energy for above processes is supplied in the form of steam and hot water Installation of 338 sq. m of ARUN Dish at Aavin Dairy, Salem of various qualities. Previously, for pasteurization the steam is generated through boiler using furnace oil as fuel by burning on an average of 6,000 litres of furnace oil per day. The steam generated at a pressure of 3 to 4.5 kg/cm2 by the two dishes meet the entire steam requirement for pasteurizing 20,000 litres of milk per hour. The savings in the usage of fossil fuel (furnace oil) is about 14,845 kg. On an average, the Salem dairy has pasteurized 60,000 to 70,000 litres of milk per day through the above two ARUN 160 dishes.

UNDP-GEF CSH Project 4.127

MNRE is implementing a Project on ‘Market Development of Concentrating Solar Technologies (CSTs) for Process Heat Applications’ with the financial support from GEF being received through UNDP. The project started in April 2012 and is expected to be completed by March 2017. Basic objective of the project is to accelerate activities of Ministry’s programme on CSTs by removing barriers & develop its market through awareness generation, capacity building & other required measures. 95

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Under the project, a large number of initiatives have been taken during last four years which has accelerated the use of CSTs in the country. During the year 2016-17, Monthly e-newsletter ‘Insolthermtimes’, Quarterly magazine on CSTs ‘SUNFOCUS’ and Toll free helpline number 18002334477 were continued which helped in making people aware of CSTs. An assignment on developing four video films on CSTs for different applications was awarded. The films are expected to be ready by February, 2017. Another assignment on giving advertisements on CST in Magazines & Newspapers was awarded which helped in creating good awareness among interested beneficiaries. At the Training cum awareness centre on CSTs established with Brahma Kumaris at Mount Abu, seven awareness workshops and four training programmes were organized during the year. A total of 285 officials from various establishments and entrepreneurs/ technicians of manufacturers participated in these programmes. Apart from these three Business meets/ Workshops were organized with potential beneficiaries of CSTs at Thiruvanthapuram, Leh, and Bhilwara and Coimbatore. A meeting with manufacturers and few consultants was also organized to discuss issues and plans related to large scale generation of proposals apart from developing guidelines for introducing Renewable Heating Obligation (RHO) for industrial establishments. The meeting helped in assigning an assignment to STFI for preparing draft National Policy on CSTs. To facilitate beneficiaries for getting loans from banks, a meeting was also convened with four designated banks (Syndicate bank, United Bank of India, SBoP and SBBJ) and manufacturers/ developers. Under the UNDP GEF project, 2 Test set ups have been developed for CSTs at National Institute of Solar Energy (NISE) NISE and University of Pune (UoP). As on date 12 Nos. of CST technologies have been tested at these centres (both mobile and immobile). During the year 2016 , 60 Nos. of new proposals with 21,000 sq. m. of CST area were also sanctioned with additional support from UNDP apart from MNRE subsidy especially for the purpose of on-line performance monitoring, after installation O & M of systems and making the systems economically viable in view of reduced prices of crude oil in international market. Six 5-year old projects were also supported for repair and renovation.

UNIDO-GEF-MNRE Project 4.134

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The industrial sector in India is currently the second-largest consumer of energy, and therefore accounts for a substantial amount of GHG emissions. The industrial sector uses this energy to meet heat requirements to reach temperature up to 450 °C to produce steam, hot water, hot air and hot oil. CST systems for industrial application offers solution to address the twin challenge to not only reduce emission intensity in the country but also to optimize the solar energy potential of the country. The project has been conceived to promote application of CST technologies in the industrial sector. The project would complement MNRE’s support programme by helping to remove barriers associated with CST technologies and their application in the industrial sectors. The overall objective of the project is to develop business models for promoting solar energy based heating/ cooling and, where feasible, tri-generation projects through different concentrating solar thermal technologies in industries and commercial sectors with a view to replace fossil fuel and reduce greenhouse gas emissions.

Development of an Innovative Financing Model to promote CSTs 4.136

The project has launched an innovative financial scheme addressing the financial barriers for promotion of CST technologies in the industrial sector of India. Under the scheme, support for 96

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installation of CST in the industrial sector and manufacturing of indigenous CST components has been developed and announced. This new interest subvention scheme for CST technologies administrated by the Indian Renewable Energy Development Agency (IREDA) focuses on increasing the deployment of concentrating solar thermal systems for process heat applications in India. “Technology providers or beneficiaries can use a short-term bridge loan at normal interest rates for prefinancing the 30 % capital subsidy that the Ministry of New and Renewable Energy grants for CST technologies. IREDA would also provide long-term loans covering up to 45 % of the benchmark system cost at 5 % lower-than-usual interest rates. The remaining 25 % are required as equity by the beneficiary. The details of the loan scheme and application format are available at IREDA’s website (Link: http://www.ireda.in/forms/contentpage.aspx?lid=740).

Awareness campaign (State level workshops) for application of CST technologies 4.138

UNIDO, jointly with MNRE, organized a series of awareness workshops since beginning of the year in association with the respective State Nodal Agencies (SNAs) in 11 states, coupled with visits to CST project sites, and presentations by their owners about their actual experiences with the systems. A total of 11 workshops and 16 site visits were conducted as a part of this campaign with CII as the outreach and logistics partner. The workshops were attended by about 1000 participants and brought together 11 SNAs, 15 Channel Partners/ Manufacturers of CST technologies and 23 existing consumers of CST technologies.

Deployment of the box and dish type solar cookers 4.139

In developing countries, one of the major energy consuming sectors is the cooking sector. In rural areas, cooking is still a mammoth of a task. Even with the advent of technologies in this area, people are still dependent on traditional fuel and methods of cooking which are not only inefficient but also causes toxic indoor air pollution. This is an important programme leading to reduction in drudgery among the rural women and girls engaged in collection of fuel wood and reduction in the rate of deforestation and getting many health benefits.

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The programme is implemented through multiple agencies such as State Nodal Agencies, Channel Partner and other government organizations.

Funding Pattern 4.141

Capital subsidy of 30% of the benchmark cost would be available for general category states and 60% of the benchmark cost for special category states, viz. NE, Sikkim, J&K, Himachal Pradesh and Uttarakhand. In addition, it would also be extended for remote and difficult areas of Lakshadweep, Andaman & Nicobar Islands and districts on India’s International borders, with 60% subsidy. The funds would be released on reimbursement basis on completion and verification by SNA or third party. Upto 3 % of CFA would be admissible as service charges to State Nodal Agencies, SECI/NHB/IREDA or other govt. agencies etc.

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The solar cooker programme achieved total 1552 no of cookers having total area of 912 sq. m (Approx.) in different states and 3737 No’s of Solar Cooker (Punjab, Uttarakhand and Jammu & Kashmir) having total area of 4309 sq. m. (Approx.) have been sanctioned for the sale and distribution during the financial year 2016-17. 97

BOX 4.5 “Implementation of Solar Thermal Components including Green House” in Leh and Kargil region The Ladakh Region of Jammu & Kashmir, with its extreme environment, faces enormous energy adversities throughout the year which become even more acute during the winter months. The “Ladakh Renewable Energy Initiative” scheme of the Ministry of New and Renewable Energy (MNRE) has been launched especially to accelerate widespread use of solar thermal systems for heating, cooking, and steam generating applications. The implementing agencies are Kargil Renewable Energy Development Agency (KREDA) in Kargil and Ladakh Renewable Energy Development Agency (LREDA) in Leh District of Jammu and Kashmir.

Installation of Domestic and Commercial SWHS by KREDA in Kargil region

Achievements: Till November 2016 KREDA has installed 6700 no of Solar water heating systems (SWHs) covering an area of 9000 Sq. m collector area for individual households, government institutions and commercial units in Kargil region. There is a growing awareness and demand for SWH system in the region. LREDA has installed 2150 units of Dish Type Solar Cooker, 20,384 sq. m of Solar Water Heater, 750 No’s of Commercial Green Houses, 2500 Domestic Green Houses and 5 Units of Solar Steam Cooking System CST based having 320 sq. m area. Solar Green House: Kargil has natural advantage of having lots of sunshine in the winter months. Based on this KREDA as per MNRE guidelines introduced Green House in the district. This technique is indigenous using locally available materials. The Green House is designed to maximize the solar absorption in the day and to minimize the heat loss in the night. Installation of Domestic Type Green House in Kargil region

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Inside view of Commercial type Green House installed in Kargil region

Solar Steam Cooking System in Leh: MNRE has sanctioned 9 steam cooking systems, each with an aperture area of 64 m2. It was found that five out of these 9 systems having collector area of 320 sq m. were successfully completed and handed over to the beneficiary.

Jamyang School, Leh-Ladakh (Installation) and (Kitchen)

Lamdon School Girls Hostel, Leh-Ladakh (Installation) and (Kitchen)

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Concessional Custom/ Excise Duty Exemption Certificate Monitoring System (G-2-B) Application 4.143

A web based application is used for online submission of Total Bill of Material (BOM) and issue

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MNRE web portal. System generates Login ID and Password is sent to the SPD through their registered e-mail address. Using this Login ID and Password, SPD submit the total Bill of Material (BOM) online for which the CCDC and EDEC is required for the establishing the project. Upon submission of total BOM by any SPD, a unique (BOM) number is generated by the system which gets printed on all documents pertaining to the SPDs. The Solar Project Developer gets the Application and BOM certify by MNRE empaneled Charted Engineer. Thereafter, Ministry

MNRE through empaneled Charted Engineer and respective State Nodal Agencies. 4.145

During current Financial Year up to January 2017, Ministry has approved concessions for 752 BOMs of aggregating capacity of 6,200 MW to 587 developers and has issued more than Developers.

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