6.1.

1 Market Overview
Solar power is a non-continuous source of generation. The average capacity
factor for solar utility scale non-tracking solar power plants ranges from 20% to
24%. For utility scale power projects, there are no energy storage solutions
available as of today. Also, solar power poses challenges in load scheduling on
account of effect of seasonal factors like cloud covers and rain. Due to this
inherent variability, the impact on grid from large-scale solar parks becomes
intensified as compared to individual medium scale solar power projects.
The new government had made its intentions clear that it wants India to be
among the top solar markets in the world by announcing a revised solar target of
100 GW from the planned 20 GW solar power by 2022 under Jawaharlal Nehru
National Solar Mission. The government officially approved the capacity target
after a meeting of Indias Union cabinet, chaired by the Prime Minister Narendra
Modi.
The emphasis on addition of solar capacity is also evident from its major share of
almost 57% (100 GW) out of the proposed 175 GW of renewable energy. The
drastic fall in solar power costs from Rs. 20 per unit to nearly Rs. 5.5 per unit in
the span of a few years has prompted the government to carve out such an
ambitious target. The target has been split into 60 GW of large and medium
scale Grid connected solar power projects and 40 GW rooftop projects. This is
expected to require an investment of around INR 6000 billion along with
conducive policies, effective deployment mechanisms by implementing agencies
and favourable support from financial institutions. In addition, it is expected to
boost the indigenous manufacturing industry as well as create large number of
jobs to meet the target.
India already has 4096 MW of installed grid-connected solar PV generation
capacity. Out of which, almost 3740 MW are ground mounted power projects and
356 MW are rooftop power projects. Although the installed capacity has grown at
around 229% CAGR over a period of four years owing to falling module prices,
the governments introduction of the Jawaharlal Nehru National Solar Mission
(JNNSM) scheme and various state policies, giving momentum for incremental
development of solar power. Still, the capacity addition target of 2200 MW of
JNNSM Phase I was not achieved. The sector has been fraught with challenges as
land acquisition, delay in policy level and financial clearance, lack of

enforcement of Renewable Purchase Obligations (RPO) by state nodal agencies,

poor financial health of DISCOMS and higher per unit cost of power.
www.solarquarter.com
6.1.2 Present Market Scenario (Current Projects, Key Competitors and Players in
the region)

Identify top three solar parks of the world and India

Top 3 Solar parks in India

1. Charanka Solar Park
The largest site within the Gujarat Solar Park is being built on a 2,000-hectare
(4,900-acre) plot of land near Charanka village in Patan district, northern Gujarat.
This hosts about 19 different projects by different developers. On 19 April 2012,
a total of 214 megawatts (287,000 hp) had been commissioned. It also became
the world's second largest photovoltaic power station. When fully built out, the
Charanka Solar Park will host 500 MW of solar power systems using state-of-the-

art thin-film photovoltaic (PV) power systems. The investment cost for the
Charanka solar park amounts to some US$280 million. Construction began on 3
December 2010.
2. The Welspun Solar project, set up at a cost of Rs. 1,100 crore on 305
hectares of land, will supply power at Rs. 8.05 a kWh. The project of a 130MW
solar power plant at Bhagwanpur in Neemuch MP.

3. Dhirubhai Ambani Solar Park

The Dhirubhai Ambani Solar Park at Dhursar village near Pokhran in the Jaisalmer
district of Rajasthan is a 40-megawatt (MW AC) photovoltaic power station
commissioned in 2012. It is one of a large number of solar parks expected to be
built in a 35,000 km2 area of the Thar Desert that has been reserved for solar
power projects. The solar park was named after the late Dhirubhai Ambani, the
founder of Reliance Industries, and was constructed using 500,000 CdTe-modules
by First Solar, and covers an area of 350 acres (140 ha).
Top 3 Solar parks in the world
1. Topaz, California. MidAmerican Solar. Capacity: 580 MW. (which solar
technology is used)In December, the final 40-megawatt phase of the Topaz
solar farm went online in California, making it the first solar plant in the United
States to be over 500 megawatts. The 580-MW facility, located on the Carrizo
Plain of San Luis Obispo County, took two years to build and cost $2.5 billion. Its
9 million solar panels, spread across 9.5 square miles, will power 160,000 homes
and supply most of the electricity for the city of San Luis Obispo, population
276,000.
2. Solar Star, California. MidAmerican Solar, SunPower Corp. Capacity:
(which solar technology is used)579 MW. Construction of the Solar Star
Projects, located in Kern and Los Angeles Counties, started in 2013 and is
expected to be finished this year. When complete, the facility will have over 1.7
million solar panels. It already delivers over 170 megawatts to the California grid.
3. Ivanpah, California. NRG Energy, BrightSource Energy, Google.
(include some info on , if it is storing energy!)Capacity: 392 MW. Opened
nearly a year ago, the Ivanpah Solar Solar Electric Generating System stretches
five square miles across the Mojave Desert close to the Nevada border. The plant

employs about 300,000 mirrors that are used to direct sunlight onto three boiler
towers. The facility produces enough energy to power 140,000 homes.
Wikipedia

Compare their top ten features like % of solar, wind, biomass, type of
technology, efficiencies, etc on a graph for easy understanding.

Technological comparison for Solar Thermals

CSP Technology

Capacity

Utilisation

Parabolic

Solar

Parabolic Dish

Linear

Trough

Tower

20-25%

40-45%

N.A

N.A

2.9-3.5

2.9-3.5

Nil

2.8

300-400

500-1500

750

250-300

10-200

10-150

0.01-0.04

1-200

Demonstrated

Pilot projects

Fresnel

Factor
(CUF) (%)
Water requirement
(cubic meter per MWh)
Operating

temperature

(C)
Typical capacity (MW)
Maturity of technology
Insolation enhancement

Commercially Pilot commercial

proven

projects

projects

30-40

60-70

60-70

30-40

11-16

7-20

12-25

13

(%)
Annual

solar-to-

electricity
efficiency (net) (%)
Source: EAI, Indian Institute
of Science

No of developmental solar park projects in the world and India

Developmental solar park projects in the world and India

Solar Thermal Power Stations under construction

Capaci

Name Count

ty MW

Location

ry

Co-

Expect Technol

ordinates

ed

Notes

ogy

comple
tion
1,021 Miraah

Amal

paraboli

Oman
200 Noor II

c trough
Ghassate(Oua

2017/20 paraboli

Moroc rzazate
co
121 Ashalim
power

c trough

2017

solar

province)
Negev desert

3058

Israel

station1

power

N 3442E

110 Cerro

Mara

Dominad Chile
or

18

Elena,

tower
2018

Antofagasta

solar
power

Solar

tower

Thermal
Plant(Ata
cama 1)
100 Redstone
Solar

Northern Cape

2817

South

Thermal Africa

53S

Power

232156E

100 Xina

Northern Cape

Solar

South

One

Africa

2853

2018

2016

solar

with 12h

power

heat

tower

storage

paraboli with

5h

c trough heat

40.56S

storage

193553.5
2E
100 Ilanga 1

Northern

2829

South Cape(Upingto
Africa n)

2017

linear

with 4.5h

Fresnel

heat

25.79S

technolo storage

213227.1

gy

3E
100 El
Reboso

El Puebla del

2015

Spain Rio(Seville)

paraboli
c trough

2+3
100 Dhursar

2014
India

fresnel
reflector

100 Diwakar

Askandra

2014

India

paraboli with

3h

c trough heat
storage

100 KVK
Energy

Askandra

2014

India

paraboli with

4h

c trough heat

Solar

storage

Project
100 Noor III

Ghassate,

2017/20 solar

Moroc Ouarzazate
co
50 Arenales
PS

18

Province
Morn

de

power
tower

la

2013

Spain Frontera(Sevill

paraboli
c trough

e)
50 Casablan
ca

Casablanca
Spain

50 Erdos
Solar

2013

paraboli
c trough

Hanggin

2013

China Banner

paraboli
c trough

Power
Plant
50 Megha
Solar

Anantapur

2013

India

paraboli
c trough

Plant
44 Kogan

Chinchilla

Creek

Austra

Solar

lia

2015

fresnel
reflector

Boost
27.5 Jinshawa
n

China
China

solar

Operation

updraft

tower

underway
at

200

kW.
25 Gujarat
Solar

Kutch

2322.

India

One

2013

paraboli with
c trough heat

233N

storage

7041.988
E
17 Stillwater

Nevada

9h

2014

paraboli

USA
12 Alba
Nova1

c trough
Corsica

France

July,

fresnel

First

2015

reflector utilityscale
solar
thermal
plant

in

France
5 Sundt
Power

Arizona

2014

USA

fresnel

reflector

Plant
3 Airlight
Energy

Ait Baha

2013

Moroc

paraboli with 12h

c trough heat

Ait Baha co

storage

Plant
1.5 Tooele
Army

Tooele

2013

dish

USA

Depot
1.4 THEMIS
Solar

Pyrnes-

4230

France Orientales

Power

5N

Tower

15827E

1 e-Cube 1

Hainan

solar

Hybrid

power

solar/gas

tower

power
plant

2013

China

Modular First
Heliostat Modular
Heliostat
solar
thermal
plant

in

the world
1 Renovali
a

Albacete
Spain

50 CGNSED
power
plant

dish

Delingha
China

3721

sep

paraboli

2016

c trough

26N
971618E

https://en.wikipedia.org/wiki/List_of_solar_thermal_power_stations

6.1.3 Historic and future demand in the backdrop of government policy and
socio economic and environmental factors
The Rural Electrification Program of 2006 was the first step by the Indian
Government in recognizing the importance of solar power. It gave guidelines for
the implementation of off-grid solar applications. However, at this early stage,
only 33.8MW (as on 14-2-2012) of capacity was installed through this policy. This
primarily included solar lanterns, solar pumps, home lighting systems, street
lighting systems and solar home systems. In 2007, as a next step, India
introduced the Semiconductor Policy to encourage the electronic and IT
industries. This included the Silicon and PV manufacturing industry as well. New
manufacturers like Titan Energy Systems, Indo Solar Limited and KSK Surya
Photovoltaic Venture Private Limited took advantage of the Special Incentive
Scheme included in this policy and constructed plants for PV modules. This move
helped the manufacturing industry to grow, but a majority of the production was
still being exported. There were no PV projects being developed in India at that
stage. There was also a need for a policy to incorporate solar power into the grid.
The Generation Based Incentive (GBI) scheme, announced in January 2008 was
the first step by the government to promote grid connected solar power plants.
The scheme for the first time defined a feed-in tariff (FIT) for solar power (a
maximum of Rs. 15/kWh). Since the generation cost of solar power was then still
around Rs. 18/kWh, the tariff offered was unviable. Also, under the GBI scheme,
a developer could not install more than 5MW of solar power in India, which
limited the returns from scale. One of the main drawbacks of the GBI scheme
was that it failed to incorporate the state utilities and the government in the
project development, leaving problems like land acquisitions and grid availability
unaddressed. As a result, despite the GBI scheme, installed capacity in India
grew only marginally to 6MW by 2009. In June 2008, the Indian government
announced the National Action Plan for Climate Change (NAPCC). A part of that
plan was the National Solar Mission (NSM).
The NSM guidelines indicated that the government had improved on the
shortcomings of the GBI scheme. It aimed to develop a solar industry, which was
commercially driven and based on a strong domestic industry. The extra cost of
generation of solar power was being borne by the federal government under the
GBI scheme. Even before the NSM, Gujarat was the first state to come up with its
own solar policy in January 2009. The Gujarat solar policy initiated a process of

the states formulating their own policy frameworks independent of the federal
guidelines. The renewable purchase obligations for state distribution companies,
a demand-driven scheme, further accelerated the formulation of solar policies at
the state level. These policies exist independent of each other as well as the
NSM. One of the key novelties of the Gujarat policy was that it introduced the
concept of solar parks. These parks offered a comprehensive solution to
concerns over land acquisition, grid connectivity, and water availability, hence
offering

developers

project

allocation

packaged

with

the

necessary

infrastructure. Other states like Karnataka, Andhra Pradesh and Rajasthan have
followed suit in developing solar power development programs. Rajasthan has
implemented land banks as well to make land acquisition easier. As more states
plan to meet their solar power obligations, new policies are expected to be
offered, creating as very vibrant set of markets across the subcontinent.
http://indianpowersector.com/home/renewable-energy/solar_new/solar-power/

Present government policy on solar parks.

Central Government
The Electricity Act, June 2003

Sections 3(1)states that the Central Government shall, from time to time,
prepare and publish the National Electricity Policy and Tariff Policy, in
consultation with the state governments and authority for development of
the power system based on optimal utilization of resources such as coal,
natural gas, nuclear substances or material, hydro and renewable sources of
energy.

Section 4states that the Central Government shall, after consultation with
the state governments, prepare and notify a national policy, permitting
stand-alone systems (including those based on renewable sources of energy
and other non-conventional sources of energy) for rural areas.

Section 61(h & i) state that the appropriate commission shall, subject to
the provision of this Act, specify the terms and conditions for the
determination of tariff, and in doing so, shall be guided by the following,
namely, the promotion of cogeneration and generation of electricity from
renewable sources of energy; and the National Electricity Policy and Tariff
Policy.

Section 86(1)(e) Section 86(1) and 86(1)(e) state that the state
commissions shall discharge the following functions, namely, promote

cogeneration and generation of electricity from renewable sources of energy

by providing, suitable measures for connectivity with the grid and sale of
electricity to any person, and also specify, for purchase of electricity from
such sources, a percentage of the total consumption of electricity in the
area of a distribution license.
(1) National Electricity Policy, Feb 2005

The National Electricity Policy 2005 stipulates that progressively the share of
electricity from non-conventional sources would need to be increased; such
purchase by distribution companies shall be through competitive bidding
process; considering the fact that it will take some time before nonconventional technologies compete, in terms of cost, with conventional
sources, the commission may determine an appropriate deferential in prices
to promote these technologies.
(2) National Tariff Policy, Jan 2006

The Tariff Policy announced in January 2006 has the following provisions:

Pursuant to provisions of section 86 (1) (e) of the Act, the Appropriate

Commission shall fix a minimum percentage for purchase of energy from
such sources taking into account availability of such resources in the region
and its impact on retail tariffs. Such percentages for purchase of energy
should be made applicable for the tariffs to be determined by the SERCs
latest by April 01, 2006.

It will take some time before non-conventional technologies can compete

with conventional sources in terms of cost of electricity.

Therefore,

procurement by distribution companies shall be done at preferential tariffs

determined by the Appropriate Commission.

Such procurement by Distribution Licensees for future requirements shall be

done, as far as possible, through competitive bidding process under Section
63 of the Act within suppliers offering energy from same type of nonconventional sources. In the long-term, these technologies would need to
compete with other sources in terms of full costs.

The Central Commission should lay down guidelines within three months for
pricing non-firm power, especially from non-conventional sources, to be
followed in cases where such procurement is not through competitive
bidding.

(3) National Rural Electrifi cation Policy, 2006

Section 3.1 states For villages/habitations where grid connectivity would not
be feasible or not cost effective, off-grid solutions based on stand-alone
systems may be taken up for supply of electricity. Where these also are not
feasible and if only alternative is to use isolated lighting technologies like
solar photovoltaic, these may be adopted. However, such remote villages
may not be designated as electrified.
(4) Renewable energy certifi cate mechanism, Jan 2010
Renewable Energy Certificate is a market based instrument which enables

the

obligated entities to meet their Renewable Purchase Obligation (RPO).

Pertinently,

the renewable purchase obligation is the obligation mandated by

the State Electricity

Regulatory Commission (SERC) under the Electricity Act,

to purchase a minimum

level of renewable energy out of the total consumption

in the area of a distribution

licensee.

The

REC

mechanism

encouraging competition and eventually mainstreaming

also

renewable

aims

at

energy

sources.

RE generators will have two options either to sell the renewable energy
at preferential tariff fixed by the concerned Electricity Regulatory
Commission or to sell the electricity component and environmental
attributes separately

Voluntary Purchasers like NGOs, the Corporate Sector, and Individual

Purchasers etc. may also purchase REC in order to meet their Corporate
Social Responsibility or to support the environment.

https://www.recregistryindia.nic.in/pdf/REC_india.pdf

Ministry of NRE/concerned ministry policy on solar park development and

their current activities.

MNRE has plans to set up 25 solar parks, each with a capacity of 500 to 1000
MW; thereby targeting around 20000 MW of solar power installed capacity. These
solar parks will be put in place in a span of 5 years and the solar projects may
then come up as per demand and interest shown by developers.

At the state level, the solar park will enable the states to bring in significant

investment from project developers, meet its Renewable Purchase Obligation

(RPO) mandates and provide employment opportunities to local population. The
state will also reduce its carbon footprint by avoiding emissions equivalent to the
solar parks installed capacity. Further, the state will also avoid procuring
expensive fossil fuels to power conventional power plants of equivalent installed
capacity.

The solar park will provide a huge impetus to solar energy generation by acting
as a flagship demonstration facility to encourage project developers and
investors, prompting additional projects of similar nature, triggering economies
of scale for cost-reductions, technical improvements and achieving large scale
reductions in GHG emissions. Some Ultra Mega projects may be set up in these
Parks or entire parts may be an Ultra Mega Power Projects.

Applicability: All the states and Union territories are eligible for benefits under
the scheme.

Capacity: Park to be taken up for development should be of minimum capacity

of 500 MW and a maximum capacity of 1000 MW. Smaller parks of 100 MW and
above may be considered in NE, HP, Uttarakhand and J&K. Smaller parks of 100
MW and above may also be considered in UTs and small States with population
less than 2 crores. Higher than 1000 MW capacity parks may also be considered
under special circumstances.

Implementation agency
The solar parks will be developed in collaboration with the State Governments.
The implementation agency would be Solar Energy Corporation of India (SECI) on
behalf of Government of India (G0I). SECI will handle funds to be made available

under the scheme on behalf of GOI.

The states applying under the scheme will have to designate an agency for the
development of solar park. Solar parks are envisaged to be developed in the
following modes:

i. The

state

designated

nodal

agency

undertakes

the

development

&

management of the solar park, under the general guidance and

supervision of SECI.

ii. The Joint venture between state designated nodal agency and SECI
undertakes the development & management of solar park

iii. The state designates SECI as the nodal agency and SECI undertakes the
development and management of solar park on its own.

iv. Any of the above three alternatives with a private sector partner with a
condition that at least 51% of the equity will remain with SECI+ State
designated agency.

The implementation agency, as identified under provisions at (i) to (iv) above,

shall undertake following activities to achieve the objective of speedy
establishment and implementation of Solar Power Parks in the State.

i.

Develop, plan, execute, implement, finance, operate and maintain the

Solar Power Park

ii.

Identify potential site and to acquire/possess land at potential sites for

Solar Power Park

iii.

Carry out site related studies/investigations

iv.

Obtain

statutory

&

non

statutory

clearances

and

to

make

area

development plan within Solar Power Park.

v.

Design a plan for sharing development cost between the developers and
the park

vi.

Create necessary infrastructure like water, transmission lines, roads,

drainage etc. to facilitate Solar Power Project developer for faster
implementation of Solar Power Projects

vii.

Frame out transparent plot allotment policy and specify procedures

pursuant to the relevant State policies and their amendments thereof.

viii.
ix.

Provide directives for technology-specific land requirements

Engage the services of national/global experts/consultants to promote
Solar Power Park related activities

x.

Facilitate

the

State

Government

to

establish

educational

institutions/training facilities within Solar Power Park for development of

manpower skill related to Solar Power

xi.

Any other activities related to Solar Power Park as per the directives from
MNRE and the State Government.

xii.

Conduct the necessary evaluation and pre-permitting of the environmental

and social impacts of utility scale solar deployment before allocating the
land to prospective developers

Land acquisition / site selection

Land for the setting up of the solar park will be identified by the State
Government. It will be the responsibility of the State Government to make the

land available. States are encouraged to identify sites receiving good solar
radiation and sites which are closer to CTU (i.e. Power Grid), preferably locations
with spare solar installed capacity and water availability. The park must have at
least 5 Acres per MW towards installation of solar projects.

In order to provide for such a large tract of contiguous land with appropriate
insolation levels, the state government may prioritize the use of government
waste/non-agricultural land in order to speed up the acquisition process. It will be
preferred if most of the required land is Government owned and very little
private land is to be acquired. The price of the land is to be kept as low as
possible in order to attract the developers and, therefore, the site should be
selected in such a manner so that inexpensive land can be made available. If
land cannot be made available in one location, then land in few locations in close
vicinity may be taken.

Facilities to be provided
The solar park will provide specialized services to incentivize private developers
to invest in solar energy in the park. These services while not being unique to the
park, are provided in a central, one-stop-shop, single window format, making it
easier for investors to implement their projects within the park in a significantly
shorter period of time, as compared to projects outside the park which would
have to obtain these services individually.

The implementing agency is tasked with acquiring the land for the Park, cleaning
it, leveling it and allocating the plots for individual projects. Apart from this, the
agency will also be entrusted with providing the following facilities to the solar
project developers for the development of the solar park:

i. Land approved for installation of solar power plants and necessary

permissions including change of land use etc.

ii. Road connectivity to each plot of land

iii. Water availability for construction as well as running of power plants and
demineralization plant

iv. Flood mitigation measures like flood discharge, internal drainage etc.
v. Construction power
vi.Telecommunication facilities
vii.Transmission facility consisting pooling station (with 400/220, 220/66 KV
switchyard and respective transformers) to allow connection of individual
projects with pooling station through a network of underground cables or
overhead lines.

viii.Housing facility for basic manpower wherever possible

ix.Parking, Warehouse etc.
The solar park will be a large contiguous stretch of land with high insolation
levels, saving the private developer from making the effort of finding the ideal
site for the plant. In addition, the site within the park is already levelised and
developed reducing these costs for the project developer.

In addition, the Park will provide road access (both approach roads and smaller
access roads to individual plots), water (via a dedicated reservoir located within
the premises), boundary fence and security, each of which would have entailed

additional costs for the developer outside the park.

Each of these specialized services offer significant benefits to the developers but
come at a premium. Land plots within the solar park are more expensive than
outside. But this premium is easily justifiable by these services, which bundled
into the land cost. However, the most important benefit from the park for the
private developer is the significant time saved. The centralized, single window
nature of the services within the park reduces the time between project
conceptualization and operations, translating into economic and real monetary
gains for the private developers and the state.

Financial model
The implementation agency, entrusted with implementing the program will get
the land developed and provide necessary infrastructure like road connectivity,
transmission infrastructure etc. Significant investments will also be made in the
operation & maintenance of the solar park, employing staff and other activities
like marketing activities etc. The entire cost of development including cost
involved in acquisition of land will form the total cost for the project for which an
estimate will be prepared beforehand by the nodal agency. Based on this
estimate the nodal agency will formulate a recovery model to ensure the
sustainability of the model. The nodal agency may raise the funds as follows:

The implementation agency may sell/lease out the plots to prospective

project developers. The Allotment Price per metre square (inclusive of all
applicable taxes, duties, cess etc.) payable by the plot applicant for the
applications must be specified beforehand. The allotment price may be
reviewed annually and an annual increment may also be specified. The

maximum stretch of plot to be allotted will be decided as per the

benchmarks finalized by the nodal agency.

A one-time registration fee (per project or per MW) may be collected by

inviting applications from the prospective buyers when the scheme is
finalized, land identified and marked. An advance may be collected from
the prospective buyers when 50% of the land is acquired. This advance
will be 10% of the sale price. Another installment of 25% of the price of
land may be taken when full land is acquired. Further installments may be
collected while plot are being developed. Final 15% may be collected at
the time of allotment of the plot to the buyer.

The implementation agency may put in some of its own equity and can
raise loans, depending on the availability of funds and requirement. The
subsidy of MNRE under the scheme would bring down the cost of the
project to that extent. The SPV will also create a small corpus fund to
ensure

upkeep

and

maintenance

in

the

future,

which

may

be

supplemented with some annual charges.

mnre.gov.in

TN state NRE/concerned ministry policy and their current activities.

Tamil Nadu solar policy

The Tamil Nadu Solar Policy 2012 was announced in October 2012. The policy
aims to achieve an ambitious installation target of 3 GW by 2015. The policy
aims to achieve this capacity addition from: 350 MW of rooftop installations,
1,500 MW of utility-scale projects and 1,150 MW of projects under the REC
mechanism.
In a first-of-its-kind state policy, Tamil Nadu will provide a Generation Based
Incentive (GBI) for rooftop solar power through net-metering in which power

producers will have to install a separate meter to measure power generation. A

capacity of 50 MW is proposed to be added through this process. The remaining
300 MW under the rooftop installations is expected to come from government
buildings and other government schemes for rural and urban lighting.
For a target of 1,500 MW of utility scale projects till 2015, the policy targets an
installation of 1,000 MW from the fulfillment of SPO. These obligations have been
mandated at 3% till December 2013 and 6% from 2014 onwards on various
power consumers such as Special Economic Zones (SEZs), IT parks, industrial
consumers guaranteed with 24/7 power supply, colleges, telecom towers,
residential schools and all buildings with a built up area of more than 20,000
square meters. Obligated entities can fulfill their SPOs by doing one of the
following: generate own solar power, buy solar power from a third party within
Tamil Nadu, buy RECs or buy solar power from the state distribution companies
at the solar tariff. The realization of this target is dependent on the enforcement
of these SPOs by the local authorities. Any provision of penalty for not meeting
such obligations is not highlighted in the policy document. The remaining 500
MW of utility scale projects is expected to come up using a GBI based on a
reverse bidding process. The guidelines for the process are expected to be
released separately.
There is also a provision for solar parks to come up in 24 districts of the state in a
phased manner to accommodate these utility scale projects. The Tamil Nadu
government has estimated that through the implementation of the SPO
mechanism 500 MW of solar power will be installed for direct use of or third party
sale to SPO obligated entities. This provides an opportunity for project
developers to enter into private PPAs for the sale of solar power to those
obligated entities that do not regard solar power as part of their core business or
that do not have the financial liquidity to set up a solar power plant to fulfill their
SPO. For example, many commercial consumers will not be equipped with the
infrastructure, space or technical knowledge to set up large solar power plants
themselves and on site. Therefore, they will often choose to buy power from
private power producers by signing a PPA with them.
The remaining 1,15 MW of the policy target is expected to come up using the
existing REC mechanism. Unlike the recently announced Andhra Pradesh solar
policy, the Tamil Nadu solar policy does not provide any significant incentive for
REC projects to come up in the state. These installations are expected to be

driven in sync with the national REC.

Tamil Nadu issued an expression of interest for 1,000 MW on January 4th 2013
and received 92 applications for 104 projects, totaling a capacity of only 499 MW.
This was the first time a public tender for FiT based allocation The lowest bid was
Rs. 5.97( 0.09/$ 0.12)/kWh (at an annual escalation of 5% for the first 10 years
of the 20 year PPA). As this was deemed unworkable by many project developers
the state decided to provide a workable tariff of Rs. 6.48 ( 0.10/$ 0.13)/kWh
(at an annual escalation of 5% for the first 10 years of the 20 year PPA) at which
developers would be comfortable singing a PPA.
At this tariff, a capacity of 690 MW has been tied up for. New interests that have
come in after the bidding process have helped take the capacity up to this level.
The key reason for the unexpected increase in capacity is the new interest for
two projects of 100 MW each.
Tamil Nadu Overview
The Government of Tamil Nadu is committed to mitigate the climate change
effects by bringing out policies conducive to promote renewable energy
generation in the State. The Government intends to make renewable energy a
peoples movement just like rain water harvesting.
The state is blessed with various forms of renewable energy sources viz., Wind,
Solar, Biomass, Biogas, Small Hydro, etc. Municipal and Industrial wastes could
also be useful sources of energy while ensuring safe disposal.
Renewable Energy (RE) sources provide a viable option for on/off grid
electrification & wide industrial applications.
Establishment of TEDA
The Government of Tamil Nadu realized the importance and need for renewable
energy, and set up a separate Agency, as registered society, called the Tamil
Nadu

Energy

Development

Agency

(TEDA)

as

early

as

1985,as

per

G.O.Ms.No.163, P. & D. (EC) Department, dated 29.11.1984 with the following

specific objectives:1

To promote the use of new and renewable sources of energy (NRSE) and to

implement projects therefore.

2

To promote energy conservation activities.

To encourage research and development on renewable sources of energy.

Renewable Energy Installations

Renewable

Energy

Program/Cumulative

achievement

Systems

08.02.2016 (MW)

Wind Power

7506.41

Bagasse Cogeneration

659.40

Biomass Power

230.00

Solar Power (SPV)

429.26

Total

8825.07

India (31.12.2015)
Thermal

1,98,484.44M
W

Hydro

42,623.42 MW

Renewable

37,415.53 MW

(13.2%)
Nuclear

5,780.00 MW

TOTAL

2,84,303.39M

up

to

W
Tamilnadu (30.06.2014)
Thermal

10,411 MW

Hydro

2,182 MW

Renewable (12%) 8,075 MW

Nuclear

524 MW

TOTAL

21,192 MW

http://teda.in/

Future of solar parks.

State wise installed solar power

State
Andaman & Nicobar
Andhra Pradesh
Arunachal Pradesh

MW
5.10
357.34
0.27

Chandigarh

5.041

Chhattisgarh

73.18

Daman & Diu

4.00

Delhi

6.71

Gujarat

1024.15

Haryana

12.80

Jharkhand

16.00

Karnataka

104.22

Kerala
Lakshadweep
Madhya Pradesh

12.03
0.75
678.58

Maharashtra

383.7

Odisha

66.92

Puducherry
Punjab

0.03
200.32

Rajasthan

1264.35

Tamil Nadu

418.945

Telangana
Tripura

342.39
5.00

Uttar Pradesh

140

Uttarakhand

5.00

West Bengal

7.21

Others

0.79
Total

5129

Demography, social issues and economic status, income per capita,

comments on acceptability of the project

Temp, humidity, restrictions, pollution norms, sunlight, rain etc

Solar irradiation data of different cities in Tamilnadu

Jan

Feb

Mar Apr

May Jun

July

Aug Sep Oct

Nov Dec Avg

Ambatt

4.89 5.83 6.56 6.61 6

5.12 4.63 4.71 4.94 4.37 4.02 4.21 5.16

4.89 5.83 6.56 6.61 6

5.12 4.63 4.71 4.94 4.37 4.02 4.21 5.16

Chennai 4.89 5.83 6.56 6.61 6

5.12 4.63 4.71 4.94 4.37 4.02 4.21 5.16

ur
Avadi

Madurai 4.62 5.44 6.1

5.6

5.59 5.08 4.89 5.07 5.25 4.55 4.08 4.14 5.03

Pondy

4.65 5.59 6.29 6.04 5.76 5.21 4.85 5.01 5.22 4.32 3.86 4.06 5.07

Salem

4.84 5.76 6.41 6.06 5.87 5.1

Teni

4.84 5.68 6.28 5.68 5.54 4.52 4.32 4.66 5.05 4.33 4.04 4.24 4.93

Thanjav 4.6

5.58 6.3

5.88 5.66 5.3

4.7

4.87 5.15 4.47 4.05 4.25 5.13

5.06 5.23 5.42 4.46 3.89 4.06 5.12

ur
Trichy

4.7

5.68 6.39 5.85 5.7

5.18 4.92 5.08 5.32 4.53 4.05 4.18 5.13

Tirunelv 4.79 5.52 6.06 5.44 5.22 4.38 4.45 4.79 5.06 4.37 3.93 4.19 4.85
eli
Tiruppu 5.03 5.78 6.42 5.99 5.74 4.75 4.41 4.56 4.92 4.4

4.18 4.42 5.05

r
Tuticori

4.94 5.85 6.59 6.17 5.85 5.47 5.53 5.75 5.92 5.12 4.26 4.37 5.49

n
6.1.4 Scale of the project and Resource Requirements in terms of Land and
Capital

Write their key particulars such as land parcel size, no of Solar power
developer projects, size of individual units, watts of power etc

The State Government will identify the nodal agency for the solar park and will
also identify the land for proposed solar park. Thereafter it will send a proposal to
MNRE for approval. After the solar park is approved by MNRE, the implementing
agency may apply for a grant of Rs. 25 lakhs for preparing DPR, conducting
surveys etc. Thereafter application may be made for the grant at the rate of up
to Rs.20 lakhs/MW or 30% of the project cost including grid connectivity cost
whichever is lower, which will be released as per the following timelines:

Milestone

Timeline

% of subsidy disbursed

Date of issue of administrative

Day 0

5%

S. No.
1

approval

Land

acquisition

(50%

land

5 months

20%

8 months

20%

15 months

25%

20%

10%

acquired)
3

Financial Closure

Construction
Substation,

of
Land

Pooling

Development

and other Common facilities as

per DPR
5

Transmission

line

and

Grid

Connectivity
6

Final installment on completion

The grant will be managed and released by SECI on behalf of MNRE for which
SECI will be given a fund handling fee of 1%. If the park is developed in
phases, grant will also be phased out in proportion to expenditure in each
phase.

Based on above, the estimated cost has been

worked as under:(Rs.

in

Crores)
(i) Cost of 20,000 MW @ Rs.20 Lacs/MW

4000.00

(ii) 1% fund handling fee for SECI on above

40.00

amount
(iii) Cost of DPR preparation etc. for 25 Solar Parks
@ Rs. 25 Lacs each park

6.25
Tot

4046.25

al
Transmission and evacuation of power from solar park
Interconnection of each plot with pooling stations through 66 KV /other
suitable voltage underground or overhead cable will be the responsibility of
the solar project developer.

The designated nodal agency will set up the pooling stations (with 400/220,
220/66 KV or as may be suitable switchyard and respective transformers)
inside the solar park and will also draw transmission to transmit power to 220
KV/400 KV sub-station.

The responsibility of setting up a sub-station nearby the solar park to take

power from one or more pooling stations will lie with the central transmission
utility (CTU) or the State transmission utility (STU), after following necessary
technical and commercial procedures as stipulated in the various regulations
notified by the central/state Commission.

If the state government is willing to buy substantial part of the power

generated in the solar park, preference will be given to STU, which will ensure
setting up of sub-station and development of necessary infrastructure for
transmission of power from substation to load centres.

If the state is not willing to buy substantial power generated in the solar park,
then CTU may be entrusted with the responsibility of setting up 400 KV substation right next to the solar park and its connectivity with the CTU. For setting
up of this transmission & evacuation infrastructure, Power Grid may prepare a
separate project to be funded from NCEF / external funds / Green Corridor
project, if the cost is very high. The system would be planned in such a manner
so that there is no wheeling charge applicable on solar power in accordance with
the CERC Regulation in this regard or they are very low.

To build this infrastructure using the highest possible standards, the whole solar
power evacuation network scheme may be designed using latest technologies

like SCADA, GIS, Bay controller, Online monitoring equipment for dissolved gas
analysis, OPGW, PLCC etc.

Power sale arrangement

Acceptance for development of solar park under the scheme does not guarantee
Power purchase agreement (PPA) or a tariff for the power to be produced. The
project developers have his own arrangements for a PPA or get selected in any
Government of India or State Government scheme. The developer will be free to
set up projects under any scheme or for third party sale.

Loan
MNRE will also put in efforts to tie up with multilateral/ bilateral funding agencies
to finance the entire or a part of the cost of the solar parks. The MNRE grant will
be treated as the developers' contribution to get this loan. The loan tenure and
the moratorium period will be set in accordance with the banks terms and
conditions while the annual interest will be set in accordance with banks

LIBOR-based lending facility.

Funding Connectivity
The connectivity with grid i.e. 220/400 KV substation and transmission line to
connect with CTU /
STUs, existing network will be an important component. For the same, money
out of the MNRE grant may be used. The loan from multilateral or bilateral
agencies may also have a component to fund connectivity. If the expenditure is
high than a separate proposal may also be considered for funding from NCEF,
Green Corridor Program or any other source.

Equity Contribution
Minimum up front equity will be required to setup the implementing agency as
most of the costs will be covered through MNRE grant and loan. Most of the land
is expected to be Government Land. The expenses on land can be recovered and
paid from sale proceeds gradually.

The surplus money that will accrue from sale may be converted into equity of
promoters so that the implementing agency gets a financial strength for long
term sustenance.
mnre.gov.in
6.1.5 Primary Analysis for potential investors - PE/Joint venture /financiers

Write their prime contractors, collaborators, technology companies, JV

partners etc.

Essel Group
Reliance Group
IREDA
Power Finance Corporation Limited
PE
Climate Change Capital
IDFC Private Equity
Nereus Capital
SBI Macquarie
Infrastructure India
Financers
Headway Solar
Solarsis
Starling Solar
Selco

Fourth Partner Energy

Solar project developer in India

Adani Power
AES solar energy
Andhra Pradesh Power Generation Corporation
Andromeda Energy Tech
APCA Power
Chandraleela Power Energy
Chhattisgarh Investments
Dr. Babasaheb Ambedkar Sahakari Sakhar Karkhana
Essar Power
Essel Infra projects
GAIL
Gujarat Industries Power Company
Gujarat Mineral Development Corporation
Gujarat Power Corporation
India Solar Ray Power
Indian Oil Corporation
Karnataka Power Corporation
Konark Gujarat PV Pvt.
Lanco
Maharashtra state power generation
Moser Baer Energy & Developoment
Punj Llyod
Raajratna Energy Holdings
Reliance
Tata Power
Welspun
Yantra eSolarIndia

US-based private equity firm KKR and Co. Is evaluating the possibility of
investing around $100 million in renewable power projects of Greenko Group, a
UK-based group that has power projects in India. According to VccEdge, the
renewable power space saw 14 deals worth $298 million during CY2014 till May

2014 against 32 private equity (PE) and merger &acquisition (M&A) deals worth
$1,288 million during CY2013 General Electric Co's unit, GE Energy Financial
Services plans to invest $24 million in a solar power project in Madhya Pradesh.
The renewable energy space offers tremendous amount of opportunity due to
various factors like no dependency on fuel (wind, solar), favorable Government's
initiatives and reduction in prices (in solar PV panels).
Key drivers for PE investments in Renewable Energy in India
India's 12th Five Year Plan sets an ambitious target for the development of
renewable energy in the country. During the 12th Five Year Plan, renewable
power capacity addition of 30,000 MW has been planned. According to the 12 th
Five Year Plan document, the projected investments in the renewable energy
sector are estimated to be around `3.2 lakh crore during the 12th plan. Out of
this `33,003 crore (Gross Budgetary Support (GBS) 19,113 + Internal and Extra
Budgetary Resources (IEBR) of 13,890) are expected to come from Centre as an
outlay for MNRE during the 12th plan. `5,425 crore is expected from States,
which leaves a huge portion of private sector investments of 2,80,198 crore.
6.1.6 Indicative financial viability (RoI or IRR)
TAMILNADU: Preferential Tariff INR 6.48/unit with 5% escalation for ten years.
CASE 1: IF CUF =19%
EPC COST L&T

PROJECT IRR

EQUITY IRR

INR LAKH/MW

DSCR

LEVELISED
COST

OF

TARIFF
(INR/KWH)
650

10

14

0.90

8.46

700

12

0.85

8.96

750

11

0.80

9.46

DSCR

LEVELISED

CASE 2: IF CUF=20%
EPC COST L&T

PROJECT IRR

EQUITY IRR

INR LAKH/MW

COST

OF

TARIFF
(INR/KWH)
650

10

16

0.95

8.05

700

10

14

0.89

8.52

750

12

0.84

9.00

DSCR

LEVELISED

CASE3: IF CUF= 21%

EPC COST L&T

PROJECT IRR

EQUITY IRR

INR LAKH/MW

COST

OF

TARIFF
(INR/KWH)
650

11

17

7.67

700

10

15

0.94

8.12

Cost Economies of 100kwp Grid Connected Rooftop Solar Project

S.No
1.
2.
3.

Parameter
Capacity (in kWp)
Cost (in Rs)
Equity by developer (20%)
Borrowing
from
other

Value
100
75 lakh
14 lakh + 21 lakh loan from
other sources. It could be SBIs

4.

sources (30%)
World
Bank

5.

developer (50%)
Electricity generation per 1.50 lakh unit

6.
7.
8.
9.

10.
11.
12.

loan

normal lending
to 35 lakh

year
Revenue generation per Rs 10.56 lakh
year @Rs.7.04 per unit *
(CERC rate for 2015-16)
Revenue generation per Rs. 88, 000/month
Simple payback period
(26) 6.62 year
EMI for world Bank/ADB Rs Rs. 33,447/
33 447/(8%, 15 yr, Rs. 35 lakh)
EMI for balance 50% Rs 42 000/equity/borrowing
(12%, 15 yr, Rs. 35 lakh)
Total EMI payment by Rs. 75,447/developer
Net saving per month to Rs. 12,553/developer

Source Ministry of New and Renewable Energy (MNRE)

6.1.7 Implementation and Time division aspects of the project
6.1.8 Risk Factors

Write their problem areas that require solution.

High charges imposed by solar park developers defeating its entire purpose
Transmission facilities being only set up in 2-3 years, till which park cannot
be used
Private players are not interested too much in setting up solar parks, as it
locks away capital for a long time
No clarity on the revenue model for solar park developers
6.1.9 List of regulatory approvals
Industrial Clearance
Land conversion (Agricultural to Non-Agricultural)
Environmental Clearance Certificate
Contract labour license from Labour Department
Fire Safety certificate from Fire Department
Latest tax receipt from the Municipal/Gram Panchayat for the factory land.
Auditor compliance certificate regarding fossil fuel utilization
Approval from Chief Electrical Inspector
Clearance from Forest department
Also, all necessary approvals/agreements before start of Solar PV project
construction are to be furnished as and when necessary. These include the
following:
Land purchase
Power Evacuation arrangement permission letter from DISCOM
Confirmation of Metering Arrangement and location
ABT meter type, Manufacture, Model, Serial No. details for Energy Metering.
Copy of PPA (important as Preferential PPA projects are not eligible for REC
mechanism)
Proposed Model and make of plant equipment
Undertaking for compliance with the usage of fossil fuel criteria as specified
by MNRE
Details of Connectivity with DISCOM
Connectivity Diagram and Single Line Diagram of Plant
http://efficientcarbon.com/services/energy/renewable-energy-advisory
6.1.10SWOT analysis

Strengths:
1. High growth industry with significant future potential.
2. Sunlight is available in sufficient quantity in many regions.
3. Proven technology with low operation & maintenance cost, which is also
scalable.
4. Availability of Government Incentives for growth and expansion.
Weakness:
1. Owing to high capital costs, the business needs external incentives to be
economically feasible, thus increasing dependence on Governmental policies.
2. The capital intensive nature of the business might favour larger businesses
over smaller
ones.
3. The distributed and intermittent nature of solar energy makes it difficult for
utilities to rely on Solar PV for their base load.
Opportunities:
1. Government's ambitious target and attractive policies open up many avenues
for investment.
2. Opportunities exist all along the solar PV business value chain, not just for
power plants.
3. Entirely new opportunities could open up as there is high innovation in
technology, especially with reduction in costs in Future.
Threats:
1. The large scale up of capacity could face distribution and evacuation
challenges due to inability to scale up transmission on a similar scale.
2. Off-peak season reduces cash flow.
3. Industry is new, so finding skilled workforce could be a problem.
4. Solar panels work only at 22 percent efficiency, therefore achieving solar
targets could be difficult despite scaling up due to the 'spike and ebb effect '(of
day and night).
www.lsifinance.com/pdf/lsi-research/SOLAR-ENERGY
6.1.11 PESTLE Analysis
Political -

India was the first country in the world to set up a ministry of non-conventional energy resources, in early
1980s. India already becomes a leader in wind power production. In the field of solar energy production
some large scale projects have been proposed and a 35,000 km2 area of the Thar Desert has been set aside
for solar power projects. To promote electricity generation using solar energy Government of India
launched Jawaharlal Nehru National Solar Mission in January 2010.
The Government aims to install 10GW of Solar Power and of this 10 GW target, 4 GW would fall under
the central scheme and the remaining 6 GW under various State specific schemes.
The Government has initiated a subsidy scheme to help individuals and organizations procure these Solar
Energy Systems at reduced capital costs. The scheme last modified on 15th March 2012 provides 40%
subsidy on capital costs of Solar PV Systems for units located in both urban and rural areas in India.
Only the models approved by MNRE are eligible to be covered under the scheme. The list below gives
models approved by MNRE:

Environment The construction and operation of solar parks has negative impact on the environment. Production of these
panels consumes substantial amounts of energy and produces waste water and hazardous by-products,
which are released in air during the manufacturing process. The concern point is that the silver used in the
module is leftover and also considered a dangerous waste. A PV contribution of five percent of the current
world electricity production would require about 50 percent of current silver production. Installing a solar
farm has an adverse ecological impact and can affect the rainfall and the drainage of a region. The major
drawbacks of constructing a solar farm are that it affects existing land uses, such as grazing, agriculture

and minerals production and also affects areas of critical environmental concern or special recreation
management areas.
Good maintenance practices and proper planning can certainly help to minimize the negative impacts of
producing solar panels by using hazardous material. Innovative production technologies for PV modules
would help to lower the environmental impacts by efficiently utilizing silicon in modules and recycling it.
Reducing the use of silver content in the modules would also be a significant step.
Technological Amid the growing demand for sustainable energy, concentrating solar power (CSP) technologies are on the
verge of large scale global deployment. These technologies harness concentrated sunlight to generate
electricity. In the coming decade, the CSP market is estimated to be worth over a billion dollars. The
Government of India too has identified solar power as an important renewable energy resource and its
commitment to develop solar power is reflected in the National Action Plan for Climate Change wherein
it has announced the National Solar Mission as one of the eight missions to combat the challenges of
climate change.
Hence, it is important to understand the market readiness of different CSP technologies, the investment
opportunities which these technologies are likely to create and the overall market development scenario.
For several years, worldwide growth of solar PV was driven by European deployment, but it has shifted to
Asia, especially China and Japan, and to a growing number of countries and regions all over the world.
Worldwide growth of photovoltaic has averaged 40% per year since 2000 and total installed capacity
reached 139 GW at the end of 2013. Concentrated solar power (CSP) also started to grow rapidly,
increasing its capacity nearly tenfold from 2004 to 2013. As of the end of 2013, worldwide cumulative
CSP-capacity reached 3,425 MW.
Solar energy is considered a sustainable energy supply technology however; the production technology for
solar modules requires relatively high energy outputs. Most solar parks are ground mounted PV systems.
They can either be fixed tilt or use a single axis or dual axis solar tracker. While tracking improves the
overall performance, it also increases the system's installation and maintenance cost. A solar inverter
converts the array's power output from DC to AC, and connection to the utility grid is made through a high
voltage, three phase step up transformer of typically 10 kV and above.

The parabolic trough technology is currently the most proven CSP technology and, therefore, the
most developed and standardized.

Central receiver technology is also well proven. Central receiver systems use a field of distributed
mirrors which individually track the sun and focus the sunlight on the top of a tower. Such systems can
achieve up to 35% peak and 25% annual solar electric efficiency. Over 300 MW capacity CST power
projects have been announced by various companies in the coming decade.

The compact linear fresnel reflector system is similar to the parabolic trough collector system. It
consists of an array of nearly-flat reflectors which concentrates solar radiation onto an elevated

inverted linear receiver. Water flows through the receiver and is converted into steam. The technology
is seen as a potentially low-cost alternative to trough technology for the production of solar process
heat.

The parabolic dish-shaped reflector concentrates sunlight on to a receiver located at the focal point
of the dish. The dishes are usually designed to track the Sun along two axis to get reflect the sun beam
on point of focus.

The solar PTC-based solar thermal power plant was estimated to cost Rs 202150/kW and power towerbased solar thermal power plant Rs 235877/kW.

A cost break-up of the trough and power tower technologies was undertaken. The solar PTC-based solar
thermal power plant was estimated to cost Rs 202150/kW and power tower-based solar thermal power
plant Rs 235877/kW.
Solar power plants use one of two technologies:

Photovoltaic (PV) systems use solar panels, either on rooftops or in ground-mounted solar farms,
converts sunlight directly into electric power.

Concentrated solar power plants use solar thermal energy to make steam that is thereafter converted
into electricity by a turbine.

LegalIndia has started emphasizing power generation from renewable sources that is either grid interactive or off
grid. In order to achieve a sustainable development path that simultaneously advances economic and
environmental objectives the National Action Plan for Climate Change (NAPCC) was framed.
Policies supporting Grid-Interactive renewable power

Access to quality and reliable electricity at reliable rates and minimum lifeline consumption of
1unit/household/day by year 2012.

For remote villages where grid electrification is not feasible, off-grid based solutions based on
standalone systems to be taken up for supply of electricity.

Every state to come up with rural electrification plan mapping details of electricity delivery
mechanism that may be linked to district development plans and this has to be intimated to
appropriate commission.

Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY)

This scheme is being implemented by Rural Electrification Corporation for permitting stand alone systems,
rural electrification, bulk power purchase & management of local distribution. Under this scheme, projects
could be financed with 90% capital subsidy.
Policies supporting Off-Grid renewable power-

Remote Village Electrification ProgrammeThe decision for choosing particular technology for power generation in such remote areas is taken by state
implementation agency after examination of technical feasibility and resource availability. The projects are
eligible for central financial assistance and developers can propose projects under the format specified in
the policy document.
Special Area Demonstration Project ProgrammeThe Special Area Demonstration Project Scheme of the MNRE has been introduced with an objective of
demonstrating application of various Renewable Energy systems in a project mode at places of National
and international importance. The SADP Scheme is being implemented into two parts- Demonstration of
Renewable Energy Systems at Prominent Places and the Energy Park scheme.
Renewable Energy Supply for Rural Areas
This scheme was framed with the objective of developing and demonstrating commercially viable models
for de-centralized energy supply in rural areas from renewable sources. The project is under demonstration
mode for 30 target villages in Chhattisgarh.
Renewable Energy for Urban, Industrial and Commercial Applications
The programmes implemented under this scheme are working for developing: Solar energy systems and
devices Energy recovery from urban, industrial and commercial wastes and Bioenergy and cogeneration in
industry.
State Government
Three state governments: Rajasthan, Gujarat and Karnataka have come up with their separate solar policy.
Summary of three states solar policy is given here.
State

Gujarat

Target

PV-

365MW

Rajasthan
Thermal-

Karnataka
2013

2017

350MW

Thermal
2-25MW

Capacity
Operative

(40MW

annually)
PV

Project

200MW

150

200

MW

MW

150

200

MW

MW

PV: 5-10 MW;

PV: 3-10 MW;

Thermal : 5-50 MW

Thermal: Min 5 MW

30/03/2014

31/03/2016

Period
Sale

of

25 years

25 years

25 years

of

PV

Tariff based competitive bidding

Tariff

Power
Period
Sale

Power Tariff

Year1-12:

Rs.

competitive

based
bidding

15.00/12.00

with base price @ Rs.

Year 13-25: Rs. 5.00/3.00

14.50 /kWh (max)

Thermal
Year 1-12: Rs. 10.00/9.00
Year 13-25: Rs. 3.00/3.00

Power

66kV

33kV and above

11kV and above

Current

PPAs signed for about

Allotment in progress

Allotment in progress

Status

1200 MW

Evacuation

Economical Solar energy is expensive to install. It requires expensive PV (photo-voltaic) panels which have a working
life of only 10 to 20 years, which means new ones must be bought at intervals. In order to have continuous
power from solar energy, you need storage batteries. Each battery is expensive and you need a large
number of them to store enough power for household or business use. . Solar energy technology is a very
inefficient form of energy conversion which makes its cost too high. That is why solar power is so heavily
subsidized by governments.
Building the structures to harness the natural power will be expensive given its new tech and there will be
issues about where to build etc but in the long run companies building these stations will make more
money than they are now. Its a lot more expensive to burn coal over a long time. Everyday people will
benefit too from a cheaper bill every month.
Social Energy is a basic requirement of society and a basic requirement for individual life. The energy crisis is
going to take a lot of social action with government support. Rising energy costs are forced global leaders
to research alternatives and provide the funding to make changes. Issues like global warming are becoming
mainstream reality and causing worldwide concerns about pollution and consumption.
Currently people avoid the need for battery storage of solar power by using mains electricity for heavy
appliances. Solar energy is expensive to install. It hides the real cost to society to interest people in buying
them. Taxpayers still pay the real cost indirectly. At the beginning few people have installed solar power
the subsidy is less noticeably but when a larger number of people start using solar energy the cost to each
taxpayer will become greater and effectively everyone will each be paying closer to the real price.

6.1.12

Recommendation

Electricity consumption in India has been increasing at one of the fastest rates in

the world due to population growth and economic development. India's economy
faces increasing challenges because energy supply is struggling to keep pace
with demand and there is energy shortage almost everywhere in the country.
This is compounded by the fact that the power sector continues its struggle to
meet power generation goals as conventional sources, especially coal, has not
been able to keep up with the country's ever-increasing demand. Such chronic
lack of energy and unreliable supplies threaten India's economic growth. As a
result, interest has shifted towards renewable sources of energy.
Solar energy is the prime free source of inexhaustible energy available to
mankind and the geographical position of India makes it a sunlight rich country,
blessed with about 5,000 TWh of solar insolation every year. Even if a tenth of
this potential can be utilised, it could mark the end of India's power problems by
judiciously using the country's deserts and farmland to construct solar plants. At
the same time, renewable energy also has the potential to re-energise India's
economy by creating millions of new jobs, allowing the country to achieve energy
independence, reduce its trade deficits and propel it forward as a Green
Nation.
Solar energy has the potential to reduce the current energy peak deficit
significantly and improve delivery due to its distributed nature, provided, it gets
the appropriate financial support from the Centre as well as the States. Over the
next few years, solar power will gain significant importance in India's energy mix
owing to, both financial viability and availability perspectives along with proper
channelization of the energy produced. It can thus be said that the sun will
continue to power the economic and energy growth in the current millennium.
India is slowly gaining prominence in the generation of solar power due to the
comprehensive and ambitious solar policies and projects being undertaken by
the Centre and states. Further, the National Solar Mission is also a positive step
in the endeavor towards a solar energy driven nation. In the latest budget, the
Government has proposed an amount of Rs.500 crore to develop some mega
solar power plants in Gujarat, Rajasthan, Andhra Pradesh, Tamil Nadu and
Ladakh. Solar power-driven agricultural water pumping stations and 1 MW solar
parks on canal banks will also be developed in the country at an estimated cost
of approximately Rs. 444 crore and Rs. 111 crore,
respectively.
In a further boost to the Green Energy Power Sector major commitments, 271

GW in terms of capacity, were received from various international and domestic

companies in addition to the PSUs and the Railways. Availability of finance for
the Green Energy sector which is normally perceived to be a big hindrance to the
sector, has also been addressed by various Banks and FIs, with commitment to
Green Energy flagged at Rs. 3,52,640 Crore for installation of about 71 GW of
capacity during the conference. It is expected that a substantial portion of these
Green Energy commitments will be channelized towards the Solar Power Sector.
Considering all these facts, the plans, the commitments and hopes for a smooth
execution of these plans, we expect India to be a leading solar power driven
country in the world sooner rather than later.