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Government Solar PV Policies

Government Policies - What’s happening?

  • Many experts believe solar energy would meet about 15% of global energy requirements by 2050
  • Indian National Solar Mission- to set up 20GW by 2022
  • State governments plans over 5GW
    • MP solar energy generation is likely to reach up to 650 MW by the end of 2013
  • Many Grid opportunities Like solar park developments
  • Solar cities & park will be established all around India
  • State controlled NTPC to add 315 MW solar energy capacity
  • Currently India has slightly above 12 megawatts of grid-connected solar generation capacity developed since 2009
  • As part of the National Solar Mission, government is eying to boost the annual solar power generation to at least 1,000 megawatts by the year 2013

India National Solar Mission Roadmap

S. No.Application SegmentTarget for Phase 1 (10-13)Target for Phase 2 (13-17)Target for Phase 3 (17-22)
1.Grid Solar Collectors7 Million Sq Mts15 Million Sq Mts20 Million Sq Mts
2.Off grid Solar Applications200 MW1000 MW2000 MW
3.Utility grid power, including roof top1000 – 2000 MW4000 – 10000 MW20000 MW

National Tariff Policy, 2006 would be modified to mandate that the State electricity regulators fix a percentage for purchase of solar power. The solar power purchase obligation for States may start with 0.25% in the phase I and to go up to 3% by 2022. This could be complemented with a solar specific Renewable Energy Certificate (REC) mechanism to allow utilities and solar power generation companies to buy and sell certificates to meet their solar power purchase obligations

Why Madhya Pradesh?

  • Madhya Pradesh is one of the largest power consuming States in India with a peak demand of nearly 8 GW and a peak deficit of close to 10 per cent.
  • The State’s RPO demand for solar power is expected to rise to 400 MW by 2016
  • Is a neighbor to both Rajasthan and Gujarat — States with the highest solar irradiation and the largest areas of arid lands
  • Offers good sites having potential of more than 5.5 to 5.8kWh/sq m for installation of solar based power projects.
  • As per MPERC regulations 2008, RPO has been specified as 2% for cogeneration and other sources for FY-2010 -11 and 2011 -12.
  • Purchase of electricity from solar projects to form part of 2% subject to any amendments/ regulations of MPERC
  • 10-year exemption in electricity fee and cess, four per cent subsidy by the state government in the wheeling charges, banking of generated power and exemption as per rules in VAT and entry tax, among others

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