Introduction to JNNSM- India's National Solar Mission

An introduction to India's very own initiative on adoption and development of solar energy for powering its energy needs. The presentation includes the need for, proposed road map and various provisions under the scheme.

1. Introduction to JNNSM
by
Kranav Sharma (Guest Lecturer-Jamia MiliaIslamia)

2. Contents
•Challenges in Indian Electricity Sector before JNNSM
•Overview of Solar Power Technologies
•Global solar resource availability map
•Solar resource availability in India
•State wise solar potential in India (SPV)
•Exercise#1-Annual Electricity generation
•AdditionalExercise-Limittosolarcellconversionefficiency
•GrowthofsolarmarketbeforeJNNSM
•NationalActionPlanonClimateChange(NAPCC)
•IntroductiontoJNNSM
•ObjectivesandAimsofJNNSM
•ProposedroadmapofJNNSM
•ProvisionsinPolicyandRegulatoryFramework
•Phase1MissionStrategy
•AchievementsduringPhase1
•Phase2MissionStrategy
•HistoricalTrendsandCurrentAchievements
•EssentialQuestions

3. ChallengesinIndianElectricitySectorbefore
JNNSM
•Indiaisacountryofabout650,000villages–1/3rdofwhichdon’t
haveaccesstogridasof2010
•Nearly600millionIndiansdonothaveaccesstoelectricitygrid
•In2010,Indiahadapeakelectricitydeficitof12.7%andtotal
electricitydeficitof10%
•One‐thirdofpowergeneratedislostbeforegettingutilized(30%-
50%AT&CLosses)
•HighuseofFossilFuelforGeneration,extensiveuseofdieselfor
backupandcaptivepowerunitsandkerosenelampswhichare
polluting
•Indiaimports80%ofitsoilandhasincreaseditsdependenceon
importedcoalduetoproductionandlogisticconstraints
•In2010,IndiahadaperCapitaElectricityconsumptionofaround
642kWhcomparedtotheworldaverageof2955kWh.
•In2010,Indiahadonlyaround18MWofinstalledsolarcapacity
AT&CLosses(expandedasAggregate
TechnicalandCommerciallosses)arethe
sumtotaloftechnicalandcommercial
lossesinanelectricgridandshortagedue
tonon-realizationofbilledamount.
AT&CLoss=(Energyinput–Energybilled)
*100/Energyinput.

4. ChallengesinIndianElectricitySectorbefore
JNNSM
Installed electricity capacity by source (year 2010)
Total installed capacity = 169 GW

5. Overview of Solar Power Technologies
•Solarpowercanbegeneratedbydirectphotovoltaics(PV)or
indirectbysolarthermalpower.
•Inphotovoltaicpowerplantasolarcellorphotovoltaiccell(PV)is
usedwhichisadevicethatconvertslightintoelectricpowerusing
thephotoelectriceffect.
•TheInternationalEnergyAgencyhasclassifiedthephotovoltaic
applicationsintofourcategoriesnamely
•off-griddomestic
•off-gridnondomestic
•gridconnecteddistributedand
•gridconnectedcentralized
•InaConcentratingSolarPower(CSP)planttheheatiscollected
bylensesormirrorsandtransformedtomechanicalenergy
throughasteamturbineandthenintoelectricity.
•WiderangesoftechnologiesCSPplantarepresent;themost
developedareparabolictrough,solarpowertower,concentrating
linearFresnelreflectorandStirlingdish.
•Varioustechniquesareusedtotrackthesunandfocuslight.

6. Global solar resource availability map
International Solar Alliance

7. Solar resource availability in India
•Indialiesinthesunnybeltoftheworldandis
endowedwithvastsolarenergypotential.
•MostpartsofIndiaget300daysofsunshineayear.
•About5,000trillionkWhperyearenergyisincident
overIndianlandareawithmostareareceiving4-7
kWh/m
2
/day(GHI).Thisexceedstheenergyoutput
ofallfossilfuelenergyreservesinIndia.
•Hence,bothtechnologysolarthermalandsolar
photovoltaicscaneffectivelyprovidehugecapability
forsolarinIndia.
•Solaralsoprovidestheabilitytogeneratepowerona
distributedbasis.
•Assuming10%maximumefficiencyforPVmodules
theincidentenergyonIndiaisthreeordersof
magnitudegreaterthanthelikelyelectricitydemand
forIndiaontheyear2017.
•Itcanbeobservedthathighestannualglobal
radiationisreceivedinRajasthanandnorthern
Gujarat.
Efficiencyofaphotovoltaicsolarpanelsismeasured
bytheabilityofapaneltoconvertsunlightinto
usableenergyforhumanconsumption.
Thepanelefficiencydeterminesthepoweroutputofa
panelperunitofarea.
Themaximumefficiencyofasolarphotovoltaiccellis
givenbythefollowingequation:

9. State wise solar potential in India (SPV)

10. Exercise#1-Annual Electricity generation
Howmuchelectricitycanbegeneratedfromsolarenergyannually
consideringGHIof5.5kWh/m
2
/day,conversionefficiencyof15%over
anareaof3541km².

11. Solution# 1-Annual Electricity generation
[1 km
2
= 10
6
m
2
]
Total electricity generated = 5.5 (kWh/m
2
/day) x 3.541 x 10
9
(m²) x 365 (days) x 0.15 (%)
= 1.06628 x 10
12
kWh = 1066.28 TWh
Which is equal to the total electricity consumption in India in FY 2016-17.
Thus,theoreticallysettingupasolarpowerplantcoveringtheentirestateofGoacansatisfy
India’selectricityconsumptionrequirements.
However,currenttotalcoverageareaofsolarpanelsisIndiaisaround170km
2
(closeto19GW
ofinstalledcapacity).

12. AdditionalExercise-Limittosolarcell
conversionefficiency
Whatisthemaximumtheoreticalconversionefficiencythatasingle-
junctionsolarcellcanachieve?

13. The Shockley-QueisserEfficiency Limit
•ItwasfirstcalculatedbyWilliam
ShockleyandHansQueisser
•Shockley–Queisserlimitordetailed
balancelimitreferstothecalculation
ofthemaximumtheoreticalefficiency
ofasolarcellmadefromasinglep-n
junction.
•Thecalculationplacesmaximumsolar
conversionefficiencyaround33.7%
assumingasinglep-njunctionwitha
bandgapof1.4eV
•Therefore,underSTCanidealsolarcell
withincidentsolarradiationwill
generate337W/m
2
StandardTestingConditions

14. Growth in solar market before JNNSM
•TheRuralElectrificationPolicyof2006wasthefirststepbytheIndianGovernmentinrecognizingthe
importanceofsolarpower.
•However,atthisearlystage,only33.8MW(ason14/02/2012)ofcapacitywasinstalledthroughthis
policy.
•Thisprimarilyincludedsolarlanterns,solarpumps,homelightingsystems,streetlightingsystemsand
solarhomesystems.
•In2007,asanextstep,IndiaintroducedtheSemiconductorPolicytoattractinvestmentsforsettingup
semiconductorfabricationandothermicroandnanotechnologymanufacturingindustries
includingsolarcellsandphotovoltaics.
•Thismovehelpedthemanufacturingindustrytogrow,butamajorityoftheproductionwasstillbeing
exportedastherewerenoPVprojectsbeingdevelopedinIndiaatthatstage.
•Thus,therewasalsoaneedforapolicytoincorporatesolarpowerintothegrid.
•TheGenerationBasedIncentive(GBI)scheme,announcedinJanuary2008wasthefirststepbythe
governmenttopromotegridconnectedsolarpowerplants.
•TheGBIschemeforthefirsttimedefinedafeed-intariff(FiT)forsolarpower(amaximumofRs.
15/kWh).SincethegenerationcostofsolarpowerwasthenstillaroundRs.18/kWh,thetariffoffered
wasunviable.
•Asaresult,despitetheGBIscheme,installedcapacityinIndiagrewonlymarginallyto6MWby2009.
•InJune2008,theIndiangovernmentannouncedtheNationalActionPlanforClimateChange
(NAPCC).

15. NationalActionPlanonClimateChange
(NAPCC)
NationalActionPlanonClimateChange(NAPCC)wasreleasedon30thJune,2008to
identifymeasuresthatpromotethecountry’sdevelopmentobjectiveswhilealsoyielding
co-benefitsfortacklingclimatechangeeffectively.
The Eight Missions of NAPCC:
•National Solar Mission
•National Mission for Enhanced Energy Efficiency
•National Mission on Sustainable Habitats
•National Water Mission
•National Mission for Sustaining the Himalayan Ecosystem
•National Mission for a Green India
•National Mission for Sustainable Agriculture
•National Mission on Strategic Knowledge on Climate Change

16. Introduction to JNNSM
•TheNationalSolarMissionwaslaunchedonthe11th
January,2010.
•TheMissionhassettheambitioustargetofdeploying
20,000MWofgridconnectedsolarpowerby2022isaimed
atreducingthecostofsolarpowergenerationinthe
countrythrough
•longtermpolicy;
•largescaledeploymentgoals;
•aggressiveR&D;and
•domesticproductionofcriticalrawmaterials,
componentsandproducts,asaresulttoachievegrid
tariffparityby2022.
•Missionwillcreateanenablingpolicyframeworktoachieve
thisobjectiveandmakeIndiaagloballeaderinsolar
energy.
•Further,GovernmenthasrevisedthetargetofGrid
ConnectedSolarPowerProjectsfrom20,000MWbythe
year2021-22to100,000MW(40GWRooftopand60GW
throughLargeandMediumScaleGridConnectedSolar
PowerProjects)bytheyear2021-22.

17. Objectives and Aims of JNNSM
•TheobjectiveoftheNationalSolarMissionistoestablishIndiaasa
globalleaderinsolarenergy,bycreatingthepolicyconditionsforits
diffusionacrossthecountryasquicklyaspossible.
•The Mission will adopt a 3 -phase approach:
•Phase 1 (2010 -13)
•Phase2 (2013 -17)
•Phase 3 (2017 -22)
•TheimmediateaimoftheMissionistofocusonsettingupan
enablingenvironmentforsolartechnologypenetrationinthe
countrybothatacentralizedanddecentralizedlevel.

18. Proposed Roadmap of JNNSM

19. Provisions in Policy and Regulatory framework
•AmendmentofNationalTariffPolicyforsolarspecificRPOs(Renewable
PurchaseObligations)
•SolarspecificRPO-0.25%inPhase1(2013)toincreaseto3%by2022;
•REC(RenewableEnergyCertificate)Mechanism
•Encouragestatespecificsolarpolicies
•State-wiseRPOOrdersbyRegulators
•Exemptionfromenvironmentalclearanceforsolarpowerprojects

20. Renewable Purchase Obligation (RPO)
•Thisisamechanismbywhichcertainconsumersareobligedtopurchasea
certainpercentageofpowerfromrenewableenergysources.
•ThistargetistermedasRenewablePurchaseObligation(RPO).
•RPOisbeingimplementedthroughoutthecountrytocreatedemandfor
renewableenergy.
•TheexistinglegalframeworkunderElectricityAct2003putstheresponsibilityfor
promotionofREontheStateElectricityRegulatoryCommissions(SERCs).
•ItprovidesthatSERCshouldensure
•‘promotionofcogenerationandgenerationofelectricityfromrenewablesourcesofenergy
byprovidingsuitablemeasuresforconnectivitywiththegridandsaleofelectricitytoany
person,and
•alsospecify,forpurchaseofelectricityfromsuchsources,apercentageofthetotal
consumptionofelectricityintheareaofadistributionlicensee’.
•NationalTariffPolicy2006alsoprovidesthat‘theAppropriateCommissionshall
fixaminimumpercentageforpurchaseofenergyfromsuchsourcestakinginto
accountavailabilityofsuchresourcesintheregionanditsimpactonretailtariffs’.

21. State-wise Renewable Energy Potential in India
(in MW)
HowcanlowREstates
convenientlysatisfy
RPOrequirements?
-
RECMechanism

22. Renewable Energy Certificate (REC)
Mechanism
•RenewableEnergyCertificate(REC)mechanismisamarketbasedinstrumenttopromote
renewableenergyandfacilitatecomplianceofrenewablepurchaseobligations(RPO).
•ItisaimedataddressingthemismatchbetweenavailabilityofREresourcesinstateand
therequirementoftheobligatedentitiestomeettherenewablepurchaseobligation
(RPO).
•TheREgeneratormaysellelectricitytotheobligatedentities
•Obligatedentitiesare-DISCOMS(DistributionCompanies),OpenAccessconsumers
(heavyuserswithmorethan1MWconnectedload)andCaptivepowerplants
(companies/industriesgeneratingelectricityforownconsumption)
•OneRECwillbeissuedtotheREgeneratorforoneMWhelectricalenergyfedintothe
grid.
•TheREgeneratormaysellRECstotheentitieswithRPOtargetintheStateoroutside
theState.
•TherearetwocategoriesofRECs,viz.,solarRECsandnon-solarRECs.
•SolarRECsareissuedtoeligibleentitiesforgenerationofelectricitybasedonsolaras
renewableenergysource,andnon-solarRECsareissuedtoeligibleentitiesfor
generationofelectricitybasedonrenewableenergysourcesotherthansolar.

23. Phase 1 Mission Strategy
•Thefirstphasewillannouncethebroadpolicyframeworktoachievetheobjectivesofthe
NationalSolarMissionby2022.
•AnamountofINR4337crorehasbeenapprovedfortheactivitiesproposedunderthefirstphase
oftheMissiontillMarch2013.
•DuringthefirstphaseoftheJawaharlalNehruNationalSolarMission,thetargetistosetup1,000
MWgridconnected(33KVandabove)solarplants,100MWofrooftopandsmallsolarplants
connectedtoLT/11KVgridand200MWcapacityequivalentoff-gridsolarapplications.
•Theimplementationofthetargetof1,000MWofgridconnected(33KVandabove)solarpower
plantswillbethroughNTPCVidyutVyaparNigam(NVVN)-offtaker,atradingsubsidiaryof
NTPCLimited.NVVNwilldirectlypurchasethesolarpowerfromtheprojectdevelopersasper
thenormsandguidelinesfixedinthisregard.
•100MWcapacityofsolarrooftopandsmallgridconnectedsolarpowerplantswillbe
connectedtoLT/11KVgridofthedistributionutilityandthesolarpowerwillbedirectly
purchasedbythedistributionutilitiesasperthenormsandguidelinesfixedinthisregard.
•200MWequivalentcapacityofoff-gridsolarapplications,bothsolarthermalandphotovoltaic
willbeimplementedthroughacombinationoflowinterestbearingloansand/orcentral
financialassistanceasperthenormsandguidelinesfixedinthisregard.
•Inaddition,theMissionwillsupportvariousactivities,asconsiderednecessary,onR&D,Human
ResourceDevelopment,TechnicalAssistance,training,publicityandawarenessetc.for
successfulimplementationoftheMission.

24. Achievements during Phase 1

25. Achievements during Phase 1

26. Phase 2 Mission Strategy
NationalSolarMissionenvisagesinstallationofaround10GWutilityscalesolarpowerprojectsinPhase-II.
Itisenvisagedthatoutofthis10GWtarget,4GWwouldbedevelopedundercentralschemeand6GWunder
variousStatespecificschemes.
•TheofftakerofpowerwillbeSECI(SolarEnergyCorporationofIndiaLimited)insteadofNVVN
Thrust areas for Phase-II are as follows:
•ScalingupGridconnectedProjects-Capacityadditiontargetof9
GWunderPhase-II
•RooftopPVProgramme-1000MW(BothforGridconnectedand
Off-grid)
•SolarCities-15(Inadditiontoexistingtargetof60cities)
•EnergyAccess-20,000(Villages/hamlets/basti/padas)
•Off-GridLightingSystems-10lakhs
•SolarWaterpumps-25,000Systems
•TelecomTowers-25,000Systems
•SolarWaterHeatingSystems-8MillionSq.mofCollector
area
•SolarCooker&SteamGeneratingSystems-50,000Systems
•IndustrialProcessheatapplication-400,250Sq.meachon
anaverage
•Manufacturing-4/5GWCapacity
•SolarMonitoringandAssessment-60MonitoringStations
•HumanResourceDevelopment-1Lakhtrained&
Specializedpersonnel
Implementation Model
•Bundling Scheme
•Generation Based Incentive (GBI) Scheme
•Viability Gap Funding (VGF) Scheme .

27. Bundling Scheme in JNNSM
•Bundlingcanbedefinedasastrategythatjoinsproductsorservicestogetherinordertosellthemasasinglecombined
unit.
•Similarly,underthemechanismofbundledpower,comparativelyexpensivesolarpowerisbundledwithpowerfrom
theunallocatedquotaoftheGovernmentofIndia(MinistryofPower),whichisgeneratedatNationalThermalPower
Corporation(NTPC)coal-basedstations,
•ThismakeselectricityrelativelycheaperbeforeitisofferedtotheDistributionCompanies(DISCOMS).
•ThepriceofthisbundledpowerissetbytheCentralElectricityRegulatoryCommission(CERC).
•Themainideabehindintroducingtheconceptofbundlingwastoreducethepriceofsolarsothatimpactonthe
DISCOMisreduced.
•ReducedcostofbundledpowermadesolarpowerrelativelycheaperfortheDISCOMsononesideandontheotherside
thedeveloperstoowerepleased,astheywouldreceiveahighersolartariff.
Example:
AssumingPVtarifftobeINR17.91perkWh,CSPtarifftobeINR
15.315perkWhandthermalpowertarifftobeINR2.5perkWh.
Price of bundled power or weighted price:
PV: [17.91 + (2.5 x 4)]/ 5 = INR 5.58 per kWh
CSP: [15.315 + (2.5 x 4)] / 5 = INR 5.06 per kWh
Sale price of power given ratio of PV to CSP is 50:50 = Rs. 5.32/unit

28. Viability Gap Funding (VGF) in JNNSM
•ThemainconstraintinIndia’sinfrastructuresectoristhelackofsourceforfinance.
•Morethantheoveralldifficultyofsecuringfunds,someprojectsmaynotbefinanciallyviablethoughtheyare
economicallyjustifiedandnecessary(likesolarprojects,improvedcookstoveprojects).
•Thisisthenatureofsolarprojectswhichareexpensiveanddevelopmentoriented.
•Forthesuccessfulcompletionofsuchprojects,thegovernmenthasdesignedViabilityGapFunding(VGF).
ViabilityGapFinancemeansagranttosupportprojectsthatareeconomicallyjustifiedbutnotfinancially
viable.
Underthisscheme:
•TheProjectdeveloperwillbeprovidedaviabilitygapfundingbasedonhisbid.
•ThebenchmarkcostofsolarPVisaroundINR5-8crore/MW
•Basedonthescheme,theamountofVGFcanvaryfromanywherebetweenINR3.0Crore/MWtoINR1.0
Crore/MWforopencategoryandDomesticContentRecognition(DCR)[domesticallyproducedcellsand
modules].
•TheselectedProjectdeveloperhastodemonstrate/infuseaminimumamountofcapitalintheformofEquity.
•Theremainingamountcanberaisedasloanbythedeveloper.
•The VGF will be released in six tranches. 50% on successful commissioning of the full capacity of the project
(COD) and the balance 50% progressively over next 5 years subject

29. Historical Trends and Current Achievements
Historical Trends
JNNSM

30. Historical Trends and Current Achievements
Current Achievements

31. Historical Trends and Current Achievements
•Top20developersaccountfor61%ofthe
totalcommissionedutilityscalesolar
capacity.
•AdanisteppedupthechartsduringQ4
2017tobecomethelargestdeveloperwith
acapacityof1,268MW,followedbyTata
Power(1,165)andGreenko(1,144).

32. Essential Questions
1.DiscussthevariouschallengesfacedbytheIndianElectricitysector
beforelaunchofJNNSM
2.Explainwhysolarenergywasconsideredtobeaviableoptionin
addressingIndia’senergyneeds.
3.DiscussthegrowthofsolarmarketbeforelaunchofJNNSM
4.Discussthetargetsandsubsequentachievementsofphase1ofJNNSM
5.Withanexample,explainthebundlingschemeofpowerunderJNNSM
6.WhatisViabilityGapFunding?Describeitsvariousprovisionsunder
JNNSM.

33. END