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Jawaharlal Nehru National Solar Mission (JNNSM): Key Questions Answered
Infraline Energy, May 2010, Pages: 33
The Jawaharlal Nehru National Solar Mission (JNNSM) was launched under the National Action Plan on Climate Change (NAPCC) by the Prime Minister, Dr. Manmohan Singh, on January 11, 2010. The mission reflects the strategic shift that the government plans for promoting clean energy considering the vast untapped solar potential.
The mission envisages around 20,000 MW of grid connected and 2,000 MW of off-grid capacity additions along with developing sufficient indigenous manufacturing base by 2020. The targets are considered over ambitious by several industry experts in view of the existing infrastructure and scarce resources.
The success of the programme relies on two factors a) Achievements of Phase-I programme b) Technology breakthrough. The Phase-I of the mission shall be incentivised through a mechanism of bundling solar power with power from the cheaper unallocated quota of NTPC coal based stations. This bundled power will be sold to Distribution Utilities at the CERC determined price. NTPC Vidyut Vyapar Nigam Ltd. (NVVN) has been designated as the Nodal Agency for entering into a Power Purchase Agreement (PPA) with Solar Power Developers. The mission document, though welcomed as a step in the right direction, gives rise to several ambiguities - there are no clarifications on how NVVN will leverage the required financial muscle. Being an ambitious document, a lot of issues are unclear and require clarity. Some of the key questions that require clarity regarding the document are:
- What are prerequisites for participation of Solar Power Developers (SPDs)?
- How will the bundling of power be done?
- What should be the PV: CSP ratio in power bundling?
- Promoting manufacturing base: Indigenous vs Imported?
- What are the fund requirements of the Mission?
- What are the risks associated with development and financing?
- How feasible are 2020 targets?
The authors have covered all the above questions after discussions with field experts including government agencies, SPDs, equipment manufacturers, etc. The report primarily focuses on assessment of phase-I targets to anticipate the feasibility of the mission.
A must buy for:
- Solar Power Developers
- Solar Equipment Manufacturers
- Banks, Project Financers
- Consultants
- Research and Educational Institutes
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