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INDIA
On a Solar
A look at the
current power
situation and
future of the PV
industry in India
BY NIMISHA GARG
48 April, 2009
Mission
April, 2009 49
VIEWPOINT INDIA
Photo by SolarIndiaOnline.com
Policy Initiatives
The current provisions under Electricity Act 2003 of Generation-based Incentives by MNRE
the Government of India, mandates the State Electricity In order to demonstrate the usage of solar energy for
Regulatory Commissions to fix certain minimum per- power generation in the country, Ministry of New and
centage for purchase of renewable power in the area of Renewable Energy (MNRE) announced its guidelines
each distribution licensee. Also the National Tariff Pol- for generation-based incentives for Grid Interactive
icy, which lays down guidelines to be followed while Solar PV Power Generation Plants in January 2008.
fixing tariff for purchase of power, allows for procure- Under this scheme, incentive of up to INR 15.00/KWh
ment of power from non-conventional energy sources is provided for power generated using solar photo-
at a preferential rate. The 11th five year plan of the voltaic technology. This incentive will be distributed
Government of India focuses on Grid Connected Solar between the state government and the central ministry.
Power Generation. Various policy initiatives have been The first level of incentive will be provided by the
taken to promote growth of solar energy. state by way of tariff rate for power generated. The
balance amount (INR 15.00 less state tariff) will be
Future Policy Initiative provided by the central ministry.
The maximum capacity to be supported under this
National Solar Mission program is 50 MW, with a state level limit of 10MW.
The National Solar Mission, as part of India’s first The power generation plant is to be commissioned by
National Action Plan on Climate Change (NAPCC) December 31st, 2009, after which the incentive will
was announced by the Prime Minister, Dr. Manmohan reduce by 5%.
Singh. The plan includes:
•A goal of increasing production of 1,000 MW/year State Level Incentives
•A goal of deploying at least 1,000 MW of solar Encouraged by the initiatives taken by MNRE for
power generation, promotion of grid interactive solar PV power plants,
•Specify goals for increasing use of solar energy in various states have announced preferential tariffs for
urban areas, industry and commercial establish- purchase of power from these plants.
ments.
50 April, 2009
Photo by SolarIndiaOnline.com
April, 2009 51