By EB Bureau
Friday, January 03 2013: In Phase II of Jawaharlal Nehru National Solar Mission (JNNSM), the target is to achieve 9000 MW additional installed capacity (a cumulative capacity of 10,000 MW by 2017) compared to 1000 MW in Phase I.
After a relatively slow period, in August 2013, the industry added 130 MW of grid-tied PV-based solar energy generating capacity (a capacity of only 73 MW had been added in April and May 2013). Also, the country added 90,000 sq m of solar water heating collection area in August 2013, to reach a cumulative total of 7.16 million sq m. As per MNRE estimates, by August 2013, India had achieved 1969 MW of grid-tied PV solar power systems and 131 MW of off-grid systems. Keeping this pace in mind, the government rolsl out Phase II with an additional installed capacity.
With the aim to achieve grid parity by 2017, the MNRE has adopted strategies like bundling schemes, generation-based incentives (GBI) and viability gap funding (VGF).
Bundling schemes were the financing mechanism adopted during Phase I, which helped in achieving targets. Under this mechanism, solar power was bundled with power from the unallocated quota of the Ministry of Power (MoP) generated at NTPC’s coal-based stations. But now, since there is a shortage of unallocated quota for conventional energy, the government cannot rely much on this scheme in phase II.
Similarly, there will be only limited application of the GBI scheme during Phase II, which targeted grid connected rooftop projects and small solar PV plants, as just 60 MW of capacity has been achieved so far through this scheme. Also, only states that were not covered under this scheme in phase I will be eligible for GBI in Phase II.
The MNRE is, therefore, banking heavily on VGF to reach grid parity by 2017. The VGF scheme will facilitate setting up of grid-connected solar power projects amounting to 750 MW in 2013-14 and 770 MW in 2014-15. About 1080 MW of solar thermal projects will be funded through VGF in 2014-15.
