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Solar Institutions in India

Electrification of Villages and Hamlets

The Government is implementing Decentralised Distributed Generation (DDG) under Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) for electrification of villages where grid connectivity is either not feasible or not cost effective. This was stated by Sh. Piyush Goyal, Minister of state for Power, Coal & New and Renewable Energy (Independent Charge) in a written reply to a question in the Rajya Sabha today. In XII Plan period, DDG has also been extended to the grid connected area where supply of electricity is less than 6 hours a day. Decentralized Distributed Generation (DDG) can be from conventional or renewable sources such as Biomass, Biofuels, Biogas, Mini hydro, Solar etc. Rs.900 crore as subsidy has been earmarked for DDG projects. However, the allocation under DDG would be flexible to meet any additional requirements within the overall cost of the scheme. DDG scheme provides a subsidy towards 90% of the project cost. The balance 10% is to be arranged by the Implementing Agency at their own or arrange from any FI/REC. The Minister further stated that Ministry of New & Renewable Energy has been implementing Remote Village Electrification (RVE) Programme for providing financial support for lighting/basic electrification in those remote unelectrified census villages and unelectrified hamlets of electrified census villages where grid extension is not found feasible by the State Governments and hence are not covered under the Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY). Such villages are provided basic facilities for lighting/electricity through various renewable energy sources. Under the Programme, Central Financial Assistance of up to 90% of the costs of systems, subject to pre specified maximum amount, is provided for approved projects to the states. The balance cost of projects is financed through contribution from State Plans, beneficiaries, or other sources. The Minister further stated that during the last 5 years, REC has sanctioned 775 DDG projects for a total project cost of Rs.349.38 crore in the states of Andhra Pradesh, Bihar, Chhattisgarh, Madhya Pradesh, Rajasthan, Jharkhand, Uttarakhand, Uttar Pradesh, Kerala and Odisha. Out of these 775 projects, 164 projects have already been commissioned and remaining are at the various stages of Tendering & Execution. REC has so far disbursed an amount of Rs.43.68 crore for the implementation of the DDG projects. The RVE scheme is based on proposal submitted by states for coverage of left out villages/hamlets from the RGGVY Scheme of Ministry of Power; therefore, target is not relevant. During the last five years, 3704 number of villages and hamlets have been sanctioned and around 259.60 Crore fund has been released to various states under the programme, the Minister added.

Cost of Renewable Energy Projects

The cost of renewable energy power generation in India is competitive compared to the cost in other countries. In India, the solar power installation cost has reduced significantly over last three years. The installation cost of wind power projects in India is also competitive in comparison of other countries. This was stated by Sh. Piyush Goyal, Minister of state for Power, Coal & New and Renewable Energy (Independent Charge) in a written reply to a question in the Lok Sabha. The Minister further stated that the India has signed 39 Memorandum of Understanding (MoU) / Agreements in the field of Renewable Energy, under which there are a number of Joint Working Groups (JWG). The cooperation also includes issues of developing renewable energy sources in the country. The 12th Five Year Plan targets a cumulative renewable power installed capacity of 55 GW by end of March 2017. Rs.19,113/- Crore has been allocated in the Five Year Plan for the purpose, the Minister added.

Installation of Solar Water Pumps

Image courtesy: agricorner.com

The Government has proposed a programme for installation of one lakh solar pumps for irrigation and drinking water purposes across the country. This was stated by Sh. Piyush Goyal, Minister of state for Power, Coal & New and Renewable Energy (Independent Charge) in a written reply to a question in the Lok Sabha today. He said a total number of 11626 solar pumps have already been installed in the various parts of the country till 31/03/2014. A total of 14788.45 lakh rupees have been sanctioned for solar pumps under “Off grid and Decentralized Solar Applications’’ scheme of Jawaharlal Nehru National Solar Mission to 12 states.

Scheme Approved for 750 MW Grid-connected Solar PV Power Projects

The Cabinet Committee on Economic Affairs has approved the implementation of a scheme for setting up of 750 MW of Grid-connected Solar PV Power Projects under Batch-I of Phase-II (2013-17) of the Jawaharlal Nehru National Solar Mission (JNNSM) with Viability Gap Funding (VGF) support from the National Clean Energy Fund (NCEF).

The total VGF requirement for implementation of the scheme is estimated as Rs. 1,875 crore at the rate of Rs.2.5 crore/ MW The actual requirement will, however, depend on the bid prices. This VGF support is estimated to leverage private investment to the tune of Rs. 5000 crore in setting up of the projects.

The VGF scheme will facilitate setting up of the 750 MW grid connected solar power projects, in mainly the private sector on Build, Own and Operate (BOO) basis at various locations, which will help supplement grid power generation in the country. These projects will also lead to an associated development of their surrounding areas with positive impact on the socio-economic conditions of the local population.

The scheme will be implemented through the Solar Energy Corporation of India (SECI, a Section 25 company set up by the Ministry) in close association with NTPC Vidyut Vyapar Nigam Limited (NVVN). The power generated shall be purchased by SECI at a fixed levelised tariff of Rs.5.45 per kWh for 25 years and sold to willing State Utilities/ Discoms at a fixed tariff of Rs.5.50 per unit for 25 years.

The selection of projects would be done through a process of open competitive bidding for their VGF requirement in order to enable them to supply the solar power to SECI at the fixed tariff of Rs.5.45 per kWh for 25 years.

Background:

The JNNSM was launched by the Government in January 2010. The main objective of this Mission is to create a policy and regulatory environment for large scale diffusion of solar energy technologies across the country as quickly as possible. It has laid down, a long-term goal of adding 20,000 MW of grid-connected solar power by 2022, to be achieved in three phases (Phase-I up to 2012-13, Phase-II from 2013 to 2017 and Phase-III from 2017 to 2022).