An approach to define solar energy RPOs and its impact in the local context
Student name: Mr Yagyavalk Bhatt
Guide: Dr Atul Kumar
Year of completion: 2016
Host Organisation: King Abdullah Petroleum Studies and Research Center (KAPSARC), Riyadh, Saudi Arabia
Supervisor (Host Organisation): Mr Shahid Hasan
Abstract: Section 1 of this study will focus on evolution of policy reforms both at the national and state level
with the key policy goals, objectives and institutional design of RE industry in different states,
roles and jurisdiction of implementing agencies. Analyze the broad contours of policy/regulatory
instruments used for promoting development of renewable energy, distinctive features of policy
instruments and enabling regulations, if any between different states. The focus of review is not
limited to price and quantity-setting policies but also covers all kinds of support and facilitation
measures used by the state governments in promoting a vibrant renewable energy industry within
their jurisdictions. The emerging issues associated with important policy and regulatory
instruments, and lessons that could be drawn for improving the overall policy framework in future
are also captured at relevant places. This paper has extensively drawn inputs from the web-based
policy database called KAPSARC Energy Policy Database (KEPD).
Section 2 is a preliminary attempt to understand, analyze and estimate the provision to fulfill
Renewable Purchase Obligation (RPO) in India has been made in this study. Literature related to
RPO in India has been reviewed. Literature review suggest that there are various factors which
are hindering the growth of RPO sector in India. Values of Solar Levelized Cost of Electricity
(LCOE) have been estimated using MATLAB program as per the guidelines declared by the
Central Electricity Regulatory Commission (CERC).
Section 3 is an attempt to estimate the solar RPO target to create a buyer market for achieving
revised JNNSM target by 2022 has been made. It is found that 10.35% solar RPO will be required
in FY 2021-22 to achieve 100 GW. State wise compliance of RPO for year 2014-15 has been
studied in this paper. Comparison has been developed between National Tariff Policy 2006 and
2016. State wise assessment of solar capacity required by the year 2022 has been calculated in
this study. An attempt to determine important factors for setting up of Solar RPO has been made
in this study. Determination of the possible trajectory for setting Solar RPO state wise till 2022
and categorized the states in groups to go for higher Solar RPO then others. An attempt to estimate
the required solar RPO target to achieve the revised JNNSM target by 2022 has been made in this
study.
Section 4 will focus on an approach for determining grid parity between electricity from solar PV
and conventional sources of energy has been made in this study. Comparison between Solar LCOE
and APPC and year of achieving grid parity by the states using Tableau. State-wise year of grid
parity is calculated in this study, in order to showcase the viability of solar power projects in the
various states of India.
Section 5 will focus on cost impact assessment of solar installed capacity by 2022 w.r.t APPC and
LCOE. Total cost each state will bear with respect to APPC and LCOE for integrating 100 GW
and National Solar Tariff 2016. This will be calculated by calculating cost trough solar by LCOE
and APPC for the same number units which is require to fulfill solar RPO for 100 GW projection
and NTP 2016.
KEYWORDS: Policy Evolution, State and Central Initiatives, Renewable Purchase Obligation (RPO), Grid
Parity, Cost Impact
