State attractiveness for the growth of solar photovoltaics: policy analysis
Student name: Mr Navin Bansal
Guide: Dr B Prasad
Year of completion: 2015
Host Organisation: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, New Delhi
Supervisor (Host Organisation): Mr Timon Herzog & Mr Hemant Bhatnagar
Abstract: The power generation capacity in India is growing at a great pace with the installed capacity doubling in the last seven years to 272 GW at the end of FY 2015. The electricity generation from coal, diesel, gas and nuclear constituted 82.7% last fiscal. This poses a question on energy security and environmental concerns [1]. India has consequently installed 35.8 GW of Renewable energy capacity, which was mainly driven by the incentives provided to promote the growth of non-conventional energy sources of energy.
The generation from Solar is promoted under JNNSM which initially targeted 20,000 MW by 2022. For rapid developments in the sector, the targets of grid-connected Solar Power capacity under JNNSM has been revised to 100GW; 40 GW from solar rooftop projects and 60 GW from medium and large scale solar power plants [2].
MNRE promotes capacity addition for solar power by providing various incentives and also through easing the process of availing resources. Several state governments have already announced Solar Policy. To promote rooftop solar generation, State Electricity Regulatory Commissions has notified regulations on Net-metering mechanism and has announced incentives within the regulations.
The thesis primarily focuses on the incentives provided by seven states for both large and small scale solar installations. The incentives offered are aimed to reduce the cost of generation from solar photovoltaics power projects; to compete with the conventional cheap power and hence promote penetration of green and clean energy in the sector. This is done through exemption of certain applicable taxes and duties reducing the capital cost of the solar plant and exempting various applicable charges on generation, wheeling and consumption of electricity reducing the cost of supply. Analysis of the several exemptions on solar power generation indicates the readiness of a state to attract investors and general consumers from within and outside the state to put their money in the evergreen sector.
Keywords: Renewable Energy, JNNSM, Solar Policy, incentives, net-metering
