Energy Scenario & Solar Policies

by
Dr. R. Velraj,
Professor & Director,
IES, Anna University
1
 Indias Energy Challenge
In next 12 years Indias Electricity
electricity requirement shortage
to grow 2.5 times estimated at 25-
35 GW
Demand Shortage

Climate 400 Million

Access people still
Climate Change is Change
also an important without access to
issue electricity
Security

India is dependent on
oil imports for 80% of 2
its demand
Indian Power Sector (30 June 2012)
Power Installed Capacity = 2.059
GW Title
12.3%
2.3%

Thermal
19.1% Hydro
Nuclear
Renwable
66.3%

Thermal Hydro Nuclear Renewable

1,36,436 MW 39,291 MW 4,780 MW 25,409 MW
3
Renewable Power Capacity (30 June 2012)
Total Installed RE Capacity = 25,409 MW
4.1%
13.1%

Wind
13.4% SHP
Bio
Solar

69.4%

Wind Small Hydro Bio Solar

17,644 MW 3,412 MW 3323 MW 1,031 MW
4
Plan-wise Renewable Capacity Addition

5
Renewable Energy Projections for 2027
Cumulative Installed Capacities in GW

6
 Growth of Solar Capacity in India (MW)
State MWp %
1809 Gujarat 857.9 47.42
1684 Rajasthan 601.2 33.23
Maharashtra 160 8.84
Madhya
37.3
Pradesh 2.06
Solar Capacity (MW)

Andhra
33.2
Pradesh 1.84
936 Uttar Pradesh 17.4 0.96
Tamil Nadu 17.1 0.95
Jharkhand 16 0.88
Karnataka 14 0.77
Orissa 13 0.72
Punjab 9.3 0.51
Haryana 7.8 0.43
3 11 36 West Bengal 7.1 0.39
A & N Island 5.1 0.28
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 Uttarakhand 5.1 0.28
Chhattisgarh 4 0.22
Delhi 2.6 0.14
Lakshadweep 0.8 0.04
 Why Rooftop PV
On national level, reduces requirement of
land for addition of solar capacities
For consumers, it
Reduces the dependency on grid power
Mitigates diesel generator dependency
Long term reliable power source

For Discoms, it reduces

Day Peak load Demand
T&D and conversion losses as power is
consumed at the point of generation

Most suitable for commercial

establishments
Max generation during peak usage time
Solar power cost is close to the commercial
power cost
 Roof top PV potential in India
According to 2011 Census India has:
330 million houses
166 million electrified houses
76 million houses use kerosene for lighting
1.08 million houses use solar for lighting
140 million houses with proper roof (Concrete or
Asbestos / metal sheet)
130 million houses having > 2 rooms

Average houses can accommodate 1-3 kWp of solar

PV system
Large commercial roofs can accommodate larger
capacities
As a conservative estimate, about 25 GW capacity
can be accommodated on roofs of buildings having >
2 rooms alone (considering 20% roofs are
available/suitable)
 Roof top PV potential in India
According to 2011 Census India has:
330 million houses
166 million electrified houses
76 million houses use kerosene for lighting
1.08 million houses use solar for lighting
140 million houses with proper roof (Concrete or
Asbestos / metal sheet)
130 million houses having > 2 rooms

Average houses can accommodate 1-3 kWp of solar

PV system
Large commercial roofs can accommodate larger
capacities
As a conservative estimate, about 25 GW capacity
can be accommodated on roofs of buildings having >
2 rooms alone (considering 20% roofs are
available/suitable)
 Simple cost estimations

System size 100 kWp State Tariff (INR)

(HT
System cost 0.8 -0.9
customers)
crore
Subsidy 30% Madhya 4.10
Pradesh
Expected electrify 160000
Rajasthan 5.50
generation units
Payback period @ Grid 5-6 years Andhra 6.08
electricity cost (Rs. 6.5/ Pradesh
Wp) Tamil Nadu 5.50
Payback period with 4-5 years Karnataka 5.10
Accelerated Depreciation
Punjab 6.26
Pay back @ diesel power 3-4 years Haryana 5.30
cost Gujarat 4.20
Plant life 25 years
*Connectivity, fixed charges,
metering charges, Taxes will be
extra ( will add between Rs. 1-2)
 Indias National Action Plan on
Climate Change (NAPCC)
National Action Plan on Climate Change was released by
Honble Prime Minister of India on 30th June, 2008.

Eight Missions were envisaged on

Solar Energy,
Enhanced Energy Efficiency,
Sustainable Habitat,
Water,
Sustaining the Himalayan Eco-system,
Green India,
Sustainable Agriculture and
Strategic knowledge for Climate Change
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 Jawaharlal Nehru National Solar
Mission (JNNSM)
One of the eight Missions under National Action Plan on
Climate Change
Launched by the Government of India in January 2010.
JNNSM is one of the major global initiatives in promotion of
solar energy technologies.
Mission aims to achieve grid tariff parity by 2022 through
Large scale utilization, rapid diffusion and deployment at a scale
which leads to cost reduction
R&D, Pilot Projects and Technology Demonstration
Local manufacturing and support infrastructure

13
 Mission Road Map
Application Target for Cumulative Cumulative
Segment Phase I Target for Target for
(2010-13) Phase 2 Phase 3
(2013-17) (2017-22)

Grid solar power 1,100 MW 4,000 - 20,000 MW

(large plants, roof top 10,000 MW
& distribution grid
plants)
Off-grid solar 200 MW 1,000 MW 2,000 MW
applications
Solar Thermal 7 million 15 million 20 million sq
Collectors (SWHs, sq. meters sq. meters meters
solar cooking/cooling,
Industrial process
heat applications etc.)
Solar Lighting 5 million 10 million 20 million
System
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 Mission Road Map

25000 25

20000
20000 20 20
20

15000

15

10000

10 10
10
5000 4000
7
1000 2000
1000 5
200
5
0
Phase 1 Phase 2 Phase 3

Grid solar power (MW)

Off-grid Applicationa (MW) 0
Phase 1 Phase 2 Phase 3
In addition, 100 MW capacity distributed small Solar thermal collectors (million sq.m.)
grid connected power plants during Phase -1 Solar lighting (million)
15
 National Solar Mission: Strategy

Enabling policy and regulatory frame work

Supporting Utility scale power generation

Emphasis equally on grid & off-grid applications

Accelerating Research and Development

Enhancing Domestic manufacturing base

16
 Policy and Regulatory Framework

Amendment of National Tariff Policy for solar specific

RPOs
Solar specific RPO - 0.25% in Phase 1 (2013) to
increase to 3% by 2022;
REC Mechanism - One REC (Renewable Energy
Certificate) represents 1 MWh of energy generated from
renewable sources.
Encourage state specific solar policies
State-wise RPO Orders by Regulators
Exemption from environmental clearance for solar power
projects
17
States Initiatives for Rooftop PV
 Initiatives for promotion of Rooftop
PV in Andhra Pradesh
AP Solar Policy 2012 promoting roof top solar projects
Only for 3 phase service consumers can setup roof top PV systems
Net metering is allowed
Recently announced by a committee that Rs.3.50 per unit would be
paid for exported power for 7 years

The consumer/SPV generator also

has to set up a protection system on
their premises with Islanding for
events like grid failures
Any prevalent subsidy from
Government of India can be availed.
 Gujarat
Gujarat already initiated 5MW
Rooftop Project in Gandhi Nagar in
PPP model.
Generated power is completely fed to
the grid.
As per their model, Roof owner gets
paid lease rent (Rs.3.00 per unit) and
the project developer gets feed-in-
tariff (Rs.11.21) for 25 years.
Recently announced a rooftop
scheme for development of 25 MW in
5 other cities.
 Kerala

Kerala launched its 10,000 rooftop power

plants program for 2012-2013.
With each applicant eligible to apply for 1
kW only, the total capacity target is 10 MW.
Due to the small per capita limit; the target
audience will be only households and small
cottage industries.
Apart from the MNREs 30% capital subsidy,
the state is offering a discount of Rs. 39,000
per system.
 West Bengal
West Bengal has initiated a net-metering solar rooftop model
promoting self consumption.
Under the WBERC Regulations, grid-integrated rooftop PV is
allowed only for institutional consumers like government
departments, academic institutions, etc.
The system size limited to 2-100 kW, Connectivity is allowed at
Low Voltage or Medium Voltage, or 6 KV or 11 KV, of the
distribution system of the licensee.
Solar injection is permitted only up-to 90% of the annual electricity
consumption, and the net energy supplied by the utility would be
billed as per existing slab tariffs.
Solar generation would first offset consumption in the highest tariff
slab and then the lower slab.
Policy targets 16 MW of rooftop and small PV installations by Kolkata development
authority mandated all
2017.
commercial and high raise
building to install solar PV
to meet 2% of their energy
demand.
 Tamil Nadu Solar Policy 2012

Targets 3000 MW by 2015 , including 350 MW

of rooftop capacity in three phases of 100,
125 and 125 MW (per year) during 2013-2015.
300 MW from government buildings and
government schemes for rural and urban
lighting.
Mandates 6% SPO for HT consumers to
achieve targets. Connectivity : < 10 kW - 240 V
TEDA designated as single window agency. < 100 kW 415 V
> 100 kW - 11 kV
 Uttarakhand
Uttarakhand Electricity Regulatory Commission released regulations for solar
roof top plants.

Allowed roof to projects to connect at the following voltage levels

(i) Load up to 4 kW: low voltage single phase supply

(ii) Load >4 kW and up to 75 kW: low voltage three phase supply

(iii)Load >75 kW and up to 1.5 MW: at 11 kV

(iv)Load >1.5 MW and up to 3 MW: at 11/33 kV or as per site condition.

UERC determined levelized net tariff for roof top systems as Rs.9.2 without
accelerated depreciation and Rs. 8.15 and with accelerated depreciation.
 Other States/UT
Chandigarh Honble Union Minister
inaugurated roof top PV projects on July
3, 2013.

Punjab and Haryana are vey actively

pursuing development of roof top PV
projects.

Rajasthan expressed to develop 3.1 MW

of roof top solar plants in Jaipur.

Chhattisgarh is also actively working on

roof top programs and submitted request
for 2MW.
 Research Infrastructure Augmentation
(Universities/ R&D institutions)
R&D Policy is in place to support R&D projects in
Universities, academic institutions, research
laboratories and in industries

Type of projects covered under the policy include

Centres of excellence in thematic areas of research
Applied research
Technology validation and field evaluation
Capacity building
 Mandatory Solar RPO Mechanism

State Electricity Regulators to fix a percentage of

energy purchased from Solar Power under RPO.
The Solar RPO has to begin with 0.25 % of the
energy procured reaching 3% by 2022.
Solar Power required to meet Solar RPOs (MW)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
1465 3018 4659 6387 8204 10109

This requirement likely to go up to 30,000 MW

by 2022.

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 Current state-wise Solar RPO targets
State 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Andhra Pradesh 0.25% 0.25% 0.25%
Arunachal Pradesh
Assam 0.10% 0.15% 0.20% 0.25%
Bihar 0.50% 0.75% 1.00% 1.25%
Chhattisgarh 0.25% 0.50%
Delhi 0.10% 0.15% 0.20% 0.25% 0.30% 0.35%
JERC (Goa & UT) 0.30% 0.40%
Gujarat 0.50% 1.00%
Haryana 0.00% 0.05% 0.10%
Himachal Pradesh 0.01% 0.25% 0.25% 0.25% 0.25% 0.25%
Jammu and
0.10% 0.25%
Kashmir
Jharkhand 0.50% 1.00%
Karnataka 0.25%
Kerala 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%
Source: RPO regulations of the respective states
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 Current state-wise Solar RPO targets
State 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Madhya Pradesh 0.40% 0.60% 0.80% 1.00%
Maharashtra 0.25% 0.25% 0.50% 0.50% 0.50%
Manipur 0.25% 0.25%
Mizoram 0.25% 0.25%
Meghalaya 0.30% 0.40%
Nagaland 0.25% 0.25%
Orissa 0.10% 0.15% 0.20% 0.25% 0.30%
Punjab 0.03% 0.07% 0.13% 0.19%
Rajasthan 0.50% 0.75% 1.00%
Sikkim
Tamil Nadu 0.05%
Tripura 0.10% 0.10%
Uttarakhand 0.03% 0.05%
Uttar Pradesh 0.50% 1.00%
West Bengal
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Source: RPO regulations of the respective states
 Captive Compliance Requirement
Solar Capacity Required for
Captive Power Capacity solar RPO compliance (MW)
Company Name (MW) in 2012-13
J.K. Lakshmi Cement Ltd. 93.00 3.00
Indian Petrochemical Company Ltd. 257.00 3.40
Bharat Petroleum Corporation Ltd. 189.00 4.00
Wardha Power Company Ltd. 405.00 4.20
Ultratech Cement Ltd. 129.00 5.00
KSK Energy Ventures Limited 540.00 5.57
J.S.W. Steel Limited. 600.00 6.20
Prakash Industries Ltd. 300.00 6.20
Vedanta Ltd. 1215.00 7.52
National Aluminium Company Ltd. 1255.00 7.80
Visa Steel Ltd. 405.00 8.40
Gujarat Alkalies and Chemicals Ltd. 247.00 8.70
Ambuja Cement Ltd. 290.00 10.00
Steel Authority of India(SAIL) 578.00 12.00
Bokaro Power Supply Company Pvt. Ltd. 302.00 12.50
Bajaj Hindustan Ltd. 323.00 13.50
Essar Group 367.00 14.27
Hindustan Zinc Ltd. 474.00 14.70
Jindal Steel and Power Ltd. 873.00 15.00
Sterlite Industries India Ltd. 675.00 16.80
Hindalco Ltd. 1358.00 41.70
Tata Steel Ltd. 1882.50 77.60
Reliance Industries Ltd. 2089.00 81.00 30
Total 379.06
Solar REC trade @ IEX

31
 SOLAR INITIATIVES
by
ANNA UNIVERSITY, CHENNAI

In follow up to the Governments initiatives, Anna University has

installed Roof-top Off-Grid PV system in the following campuses.

1. CEG campus (5 kW)

2. AC Tech campus (3 kW)

3. MIT campus (12 kW)

ACT CAMPUS (3 kW) CEG CAMPUS (5 kW)

MIT CAMPUS (6 kW x 2 Nos)

 PROPOSED GRID CONNECTED SPV SYSTEM

In order to meet the large electricity requirement, Anna

University has proposed to install 300 kW grid connected roof

top solar PV system with an estimation of 1.5 crores through

MNRE approved vendors, recommended by Tamilnadu

Energy Development Agency (TEDA).

 HUMAN RESOURCE DEVELOPMENT

Considering the promotion of Solar Technology by our

Governments, Anna university has started M.E Solar Energy
Program (First time ever in India) at Institute for Energy Studies,
Department of Mechanical Engineering in addition to the existing
M.E. Energy Engineering programme.
There is a lack of awareness and acute shortage of skilled
manpower in the field of Solar PV technology. Hence, AU has
initiated a series of training programme to the academicians,
administrators and technicians involved in this field to promote this
technology.