Firstgreen Review of JNNSM

Jawahar Lal Nehru National Solar Mission (JNNSM) was officially launched in November 2009. JNNSM is one of the eight National Missions laid out in India’s NAPCC. It aims to incentivize the installation of 22,000 MW of on- and off-grid solar power using both PV and CSP technologies by 2022 as well as a large number of other solar applications such as solar lighting, heating, and water pumps. As the power trading arm of the National Thermal Power Corporation (NTPC), NTPC Vidyut Vyapar Nigam Ltd (NVVN) has been designated as the nodal agency to ensure the execution of Phase 1 of the mission.

JNNSM aims to address the shortcomings of prior schemes through revised and more attractive feed-in tariffs, a single-window application process, and RPOs that include a solar purchase obligation.167 In February 2010, CERC announced a feed-in tariff for financial year 2010–2011 of INR 17.94 per kWh for PV and INR 15.3 per kWh for CSP and declared that Power Purchase Agreements (PPAs) would have a validity of 25 years. It is assumed that at current cost levels, the tariff will allow investors to achieve an internal rate of return of about 16%–17% after taxes. CERC will revise the tariff every year. Ideally, by 2022, installation costs will come down significantly to enable solar power to achieve grid parity so that it becomes a viable source for India’s energy needs in the absence of government incentives. Assuming a continuing decrease in PV costs over the span of JNNSM, even as the preferential feed-in tariff is reduced in subsequent years, the share of solar power in the energy mix should continue to increase.Under JNNSM, the NVVN is required to purchase the expensive solar power from developers and bundle it with an equivalent amount of its much cheaper coal-based power before selling the mixed power to the various utilities at a marketable price.

Three phases are identified under JNNSM. Grid-connected solar projects that signed PPAs prior to November 19, 2009, were eligible to migrate to JNNSM under certain conditions until February 29, 2010.At the end of each phase there will be a thorough reevaluation of the process.

Phase 1: 2010–2013

The focus during Phase 1 is to experiment with incentive structures and to create a market for solar power in India by bringing in investors, engineer-procure-construct (EPC) contractors, and equipment manufacturers. Both on- and off-grid projects will be promoted during this phase with the expectation that 500 MW of grid-connected and 200 MW of off-grid solar PV will be installed.The allocation of 1100 MW of grid-connected PV projects is done in two batches. The first allocated 150 MW, and the second batch allocated 350 MW of solar capacity. Projects will feed into the grid at 33 kV or above.

Phase 2: 2013–2017

During Phase 2, the goal is to build on the experience of Phase 1 to facilitate a substantial increase in capacity additions, significantly bring down the cost per kilowatt-hour, and achieve additional installations of 4000-10000 MW of combined PV and CSP capacity. JNNSM identifies the need for international support in the form of technology transfer and financial assistance in order to meet the higher goal. The central government will work to create a favorable environment for solar manufacturing, particularly for solar thermal technology manufacturing. By 2017.

Phase 3: 2017–2022

Solar power is expected to achieve grid parity by 2022 through the final goals of the JNNSM: off-grid solar capacity installations will reach 2,000 MW, on-grid capacity will reach 20,000 MW, 20 million m2 of solar thermal collector area will be installed, and 20 million solar lighting systems will be deployed in rural households.


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