Jawaharlal Nehru

National Solar Mission

National Solar Mission-Phase-I
A brief Status
By
Robin Mazumdar, AGM,NVVN

NTPC Vidyut Vyapar Nigam Ltd.

3/16/2012 1
 Background
• India is located in the equatorial sun belt of the earth, thereby
receiving abundant radiant energy from the sun.
• About 5000 trillion kWh of energy is incident over India’s land
area with most parts receiving 4-7 kWh per sq. m per day.
• While launching India’s National Action Plan on Climate
Change on June 30,2008, the Hon’ble Prime Minister stated
about the vision of making India’s economic development
energy-efficient and to endeavour for a graduated shift from
economic activity based on fossil fuels to one based on non-
fossil fuels.
• The National Solar Mission as one of the eight Missions of the
NAPCC.

3/16/2012 2
Figure shows map of India with
solar radiation levels in different
parts of the country. It can be
observed that although the
highest annual global radiation is
received in Rajasthan, northern
Gujarat and parts of Ladakh
region, the parts of Andhra
Pradesh, Maharashtra, Madhya
Pradesh also receive fairly large
amount of radiation as compared
to many parts of the world
especially Japan, Europe and the
US where development and
deployment of solar technologies
is maximum.
Figure : Solar radiation on India (Source: TERI )

3/16/2012 3
• The National Solar Mission is major initiative of the
Government of India –
– To promote ecologically sustainable growth;
– Addressing India’s energy security challenge.

• The Mission is set in three phases-

– Phase-I (up to 2012-13) – 1000 MW
– Phase-2 (2013-17) – 4,000 MW
– Phase-3 (2017-22) – 20,000 MW
JNNSM (Jawaharlal Nehru National Solar Mission), launched on
11th January, 2010 by the Hon’ble Prime Minister, aims at
development and deployment of solar energy technologies in the
country to achieve parity with grid tariff by 2022.

3/16/2012 4
 Key events
 Cabinet approved the Jawaharlal Nehru National
Solar Mission on 19th November,2009
 Govt. of India designated NVVN as the Nodal Agency
on 22nd December,2009.
 National Solar Mission launched by the Hon’ble Prime
Minister on 11th January,2010.
 Guidelines for Migration Projects issued by MNRE on
9th February,2010.
 Guidelines for New Projects (Batch-1) of Phase-I
issued by MNRE on 25th July,2010.
 Guidelines for New Projects (Batch-2) of Phase-I
issued by MNRE on 24th August,2011.
3/16/2012 5
 Implementing JNNSM
• In order to facilitate grid connected solar power generation
in the first phase, a mechanism of “bundling” relatively
expensive solar power with power from the unallocated
quota of the Government of India (Ministry of Power)
generated at NTPC coal based stations, which is relatively
cheaper, has been proposed by the Mission.
• This “bundled power” would be sold to the Distribution
Utilities.
• For each MW of installed capacity of solar power for which
a PPA is signed by NVVN, the Ministry of Power (MoP) shall
allocate to NVVN an equivalent amount of MW capacity
from the unallocated quota of NTPC coal based stations
and NVVN will supply this “bundled” power to the
Distribution Utilities.

3/16/2012 6
 Bundling Scheme

3/16/2012 7
 Selection Criteria
Sl.No. Criteria New Projects
1 Financial Criteria
a) Net Worth (i) ` 3 crore per MW of the project capacity upto 20MW.
(ii)` 2 crore for every MW additional capacity, beyond 20 MW
2 Technical Criteria Only commercially established and operational technologies to minimize
the technology risk and to achieve the commissioning of the Projects.
(i) Inter-connection with transmission network of STU/CTU or any other
transmission utility at voltage level of 33 kV or above.
(ii) Connectivity and open access with the transmission system owned by
Connectivity with the
3 STU/CTU pr any other transmission utility lie with Project Developer.
grid
(iii) Entire cost of transmission including cost of construction of line,
wheeling charges, losses etc. from the project upto the interconnection
point to be borne by Project Developer.
(i) Batch-I: For Projects based on crystalline silicon technology to use
modules manufactured in India.
4 Domestic Content (ii) Batch-II: Projects to use cells and modules manufactured in India.
(iii) For PV Modules made from thin film technologies or concentrator PV
Cells, may source form any country.
5 Land @ 2 Land is in clear possession of Project Developer before Financial Closure.
Hectares/MW
6 Water Availability For Solar Thermal Projects- Project Developer should have made
arrangements for water required for the Project.

3/16/2012 8
 Selection of Projects based on Discount in Tariff
a. Short-listed Projects to submit RfP bid indicating discount in `/kWh
on CERC Approved Applicable Tariff;
b. Projects offering maximum discount in `/kWh on the CERC
Approved Applicable Tariff would be selected first and so on.
c. In order to discourage adventurous bids, Bid Bond on graded scale
would be furnished along with RfP bid.

Sl.No. Discount offered on CERC Amount of Bid Bond applicable for every
Approved Tariff paise of discount on CERC Approved tariff
(per MW)
1 Upto 10% and 10% Rs.10,000/=
2 More than 10% & Upto 15% Rs.20,000/=
3 More than 15% & Upto 20% Rs30,000/=
4 More than 20% & Upto 25% Rs.40,000/=
5 More than 25% Rs.50,000/=

In case of tie in the bidding process, applicant would be selected by draw

of lots.
3/16/2012 9
 Time Schedule for Solar PV Projects
S.No. Event Date
1 Notice for Request for Selection Zero date
2 Submission of Applications with Zero date + 30 days
documents for Registration
3 Short-listing of projects based on Zero date + 75 days
RfS received and decision on
tariff discounting
4 Tariff discounting process and Zero date + 90 days
submission of proposals by
short-listed developers
5 Evaluation of Tariff discounting Within 30 days from submission of tariff
proposals discounting proposals (zero date + 120 days)
6 Issue of Letter of Intent Within 15 days from evaluation of tariff
discounting proposals (zero date + 135 days)
7 PPA Signing Within 30 days from the date of issue of LOI
8 Financial Closure of the Project 180 days from the date of signing of PPA
9 Commissioning of the Project 12 months from the date of signing of PPA
3/16/2012 10
 Time Schedule for Solar Thermal Projects
S.No. Event Date
1 Notice for Request for Selection Zero date
2 Submission of Applications with Zero date + 30 days
documents for Registration
3 Short-listing of projects based on Zero date + 75 days
RfS received and decision on
tariff discounting
4 Tariff discounting process and Zero date + 90 days
submission of proposals by
short-listed developers
5 Evaluation of Tariff discounting Within 30 days from submission of tariff
proposals discounting proposals (zero date + 120 days)
6 Issue of Letter of Intent Within 15 days from evaluation of tariff
discounting proposals (zero date + 135 days)
7 PPA Signing Within 30 days from the date of issue of LOI
8 Financial Closure of the Project 180 days from the date of signing of PPA
9 Commissioning of the Project 28 months from the date of signing of PPA

3/16/2012 11
 Bank Guarantees
Project Developer to submit following Bank Guarantees
to NVVN in a phased manner as follows:
i) Earnest Money Deposit (EMD) - Rs.20 Lakh/MW in the form of
BG along with RfS.

ii) Bid Bond - in the form of Bank Guarantee along with RfP.
iii) Performance Bank Guarantee - Rs.30 lakh/MW at the time of
signing of PPA.

At the time of signing of PPA, the above BGs will

be converted into Performance Bank Guarantee.

3/16/2012 12
 Financial Closure
• Migration Projects- Within 3 months from the date of
signing of PPA
• Batch-I Projects- Within 180 days from the date of signing
of PPA
• Batch-II Projects- Within 210 days from the date of signing
of PPA.

If Financial Closure not achieved as above:

i) Migration Projects- Encashment of entire BG and removal
from list of projects eligible for Migration.
ii) Batch-I Projects- Encashment of entire Performance BG
and removal from list of selected projects.
iii) Batch-I I Projects- Encashment of entire Performance BG
and removal from list of selected projects.
3/16/2012 13
 Commissioning Schedule

• Migration & Batch-I Projects

– Solar PV- 12 months from the date of signing of
PPA
– Solar Thermal- 28 months from the date of signing
of PPA

• Batch-II Projects
– Solar PV- 13 months from the date of signing of
PPA

3/16/2012 14
 Delay in Commissioning
• In case of failure to Commission the Solar Project, BG shall be
encashed in the following manner:
a) Delay upto one month- 20% of the total BG;
b) Delay of more than 1month & upto 2 months- 40% of total
BG;
c) Delay of more than 2 months & upto 3 months- Remaining
BG.
d) Delay beyond 3 months- Liquidated damages @
Rs.1,00,000/MW per day of delay for the delay in such
Commissioning.
Maximum time period allowed for commissioning with
encashment and payment of LD is limited to 18 months.
Beyond 18 months from the date of signing of PPA, PPA will be
terminated and Project shall be removed from the list of
selected Projects.

3/16/2012 15
 Jawaharlal Nehru
National Solar Mission
Current Status

3/16/2012 16
 Migration Projects
• 16 Solar Power Developers have been selected for 84
MW Solar Projects.

State Solar PV Solar Thermal Total

Rajasthan 36 30 66
Punjab 7 7
Maharashtra 11 11
Total 54 30 84

• Power Purchase Agreements signed with SPDs on

15th October,2010.
3/16/2012 17
 Migration Projects
 Power Sale Agreements signed with Discoms
of Rajasthan, Punjab and Maharashtra by 15th
October,2010.
 Financial Closure achieved in January,2011.
 Scheduled Commission Date
 Solar PV – 12 months from signing of PPA, i.e. mid
October,2011.
 Solar Thermal – 28 months from signing of PPA, i.e.
mid February,2013.

3/16/2012 18
 Commissioning Status of Solar PV Projects under Migration(Based
on Reports received from State Nodal Agencies)

State Solar PV Solar PV Balance

capacity to be capacity Capacity to be
commissioned actually commissioned
as per PPA commissioned (MW)
(MW) (MW)
Rajasthan 36 35 1

Punjab 7 2 5

Maharashtra 11 11 0

Total 54 48 6
3/16/2012 19
 New Projects
• Guidelines for selection of New Grid-connected Solar
Power Projects under Phase-I of JNNSM issued on
25th July,2010.

• MNRE proposed allocation of capacities to be done

in 2 batches in two financial years of Phase-1:
– First batch (150 MW of Solar PV, 470 MW Solar
Thermal)-2010-11
– Second batch (remaining capacities for Solar PV
Projects)- 2011-12
• (500 MW – 150 MW – Capacity of Migration Projects)
3/16/2012 20
 New Projects (Batch-I)
 PPAs signed with selected Solar Power Developers in January,2011-
 28 nos. Solar PV for 140 MW; and
 07 nos. of Solar Thermal for 470 MW Power projects.

State Solar PV (MW) Solar Thermal Total

(MW) (MW)
Rajasthan 100 400 500
Uttar Pradesh 5 5
Maharashtra 5 5
Gujarat 20 20
Andhra Pradesh 15 50 65
Karnataka 5 5
Tamil Nadu 5 5
Orissa 5 5
Total 140 470 610
3/16/2012 21
 New Projects
Power Sale Agreements (PSAs) were also signed with
Buying State Utilities/Discoms of Andhra Pradesh,
Karnataka, West Bengal, Rajasthan, Orissa, Punjab,
Uttar Pradesh, Chhattisgarh, Maharashtra, Assam and
DVC.

Financial Closure achieved in July,2011.

3/16/2012 22
 Commissioning status of the Solar PV Projects (Batch-I)
(Based on Reports received from State Nodal Agencies)

State Solar PV Solar PV Capacity Balance capacity

Capacity to be actually to be
commissioned commissioned commissioned
as per PPA (MW) (MW) (MW)
Rajasthan 100 85 15
Uttar Pradesh 5 5
Maharashtra 5 5
Andhra Pradesh 15 10 5
Karnataka 5 5
Tamil Nadu 5 5
Orissa 5 5 0
Total 140 100 40

3/16/2012 23
 Discounted Tariff
Solar PV
CERC Tariff Maximum Minimum Tariff with Tariff with Average
(Rs./kwh) Discount Discounted
Discount Max.Tariff Min. Tariff
(Rs./kwh (Rs./kwh) Discount Discount (Rs./kwh)
(Rs./kwh) (Rs./kwh)

17.91 6.95 5.15 10.95 12.76 12.12

Solar Thermal
CERC Tariff Maximum Minimum Tariff with Tariff with Average
(Rs./kwh) Discount Discount Max. Min. Tariff
(Rs./kwh (Rs./kwh) Discount Discount (Rs./kwh)
(Rs./kwh) (Rs./kwh)

15.31 4.82 3.07 10.49 12.24 11.48

3/16/2012 24
 Details of Bundled Rate for Projects under JNNSM (Phase-I)

JNNSM Technology CERC Discounted Tariff Wtd. Bundled Rate

Scheme Type Tariff (`/kwh) Avg. (`/kwh)
(`/kwh) Tariff Range between
(`/kwh)
Minimum Maximum
Migration
Solar PV 17.91 5.40 5.72
Projects -
Solar Thermal 15.31 5.31 - 5.62
Solar Power 16.86 5.36 - 5.69

Batch-I
Solar PV 17.91 10.95 12.76 12.12 4.34 - 4.67
Projects
Solar Thermal 15.31 10.49 12.24 11.48 4.49 - 4.81
Solar Power 16.86 11.61 4.46 - 4.78

Batch-II
Solar PV 15.39 7.49 9.44 8.77 3.73 - 4.05
Projects

3/16/2012 25
 Allocation of Solar
capacity
• Allocations of solar capacity has been done as
the Expression of Interest received from the
various State Utilities/Discoms and based on
the principles of allocation finalized with
Ministry of New and Renewable Energy and
Ministry of Power.
• Letters of Allocation of Solar capacity issued to
the State Utilities who have signed the PSA
with NVVN.

3/16/2012 26
 Principles of Allocation
(i) To allocate the Home State Quota under the right of
First refusal principal subject to a minimum of 10%
and beyond 10% to the maximum extent of 35% of
the capacity being set up in the State if available after
(ii) below and requested by the Home State to a
minimum of 5 MW. This can be in additional to the
capacity allocated under (ii) below.
(ii) To allocate the Solar Power capacity corresponding to
the extent of 0.25% of the Annual Consumption
pattern as estimated by CEA under the Electric Power
Survey (EPS) in the following manner:

3/16/2012 27
 Principles of Allocation
(a) First to the beneficiaries in the State in which the
capacity is being set up.
(b) Second to the beneficiaries in the Region where
the capacity is being set up.
(c) Third in the other Regions if available and
requested on prorata basis.
The above shall be subject to maximum quantum
limited to RPO requirement of 0.25% or requested
quantum which is lower.
(iii) To allocate the remaining available capacity after
allocation of (i) & (ii) above in proportion to the
unmet requirement by the DISCOMs.

3/16/2012 28
 Allocation of Solar Capacity
S. States in the Solar Capacity Allocation of
No. Region being set-up in Solar Capacity
the State (MW) to Buying States
(MW)
1. Northern
Region
Rajasthan 500 225
Uttar 5 85
Pradesh
Punjab Nil 35
Sub-total 505 345
3/16/2012
(NR) 29
 Allocation of Solar Capacity
S. States in the Solar Capacity Allocation of
No. Region being set-up in Solar Capacity
the State (MW) to Buying States
(MW)
2. Western
Region
Maharashtra 5 5
Gujarat 20 Nil
Chhattisgarh Nil 25
Sub-total 25 30
(WR)
3/16/2012 30
 Allocation of Solar Capacity
S. States in the Solar Capacity Allocation of
No. Region being set-up in Solar Capacity
the State (MW) to Buying States
(MW)
3. Southern
Region
Andhra 65 65
Pradesh
Karnataka 5 70
Tamil Nadu 5 5*
Sub-total 75 140
3/16/2012
(SR) 31
 Allocation of Solar Capacity
S. States in the Solar Capacity being set- Allocation of Solar
No. Region up in the State (MW) Capacity to Buying
States (MW)
4. Eastern Region
Orissa 5 20

West Bengal Nil 50

DVC Nil 20

Sub-total (ER) 5 90

NER-Assam Nil 5

Total 610 610

(NR+WR+SR+ER+
NER)

3/16/2012 32
 Second Batch of Phase I
 Guidelines for Second Batch for 350 MW Solar PV
issued by MNRE on 24.08.2011.
 PPAs signed with 21 selected bidders for 27 Solar PV
Projects (340 MW) by 27th january,2012.

State Solar PV (MW)

Rajasthan 295
Maharashtra 25
Andhra Pradesh 10
Tamil Nadu 10
Total 340
• Commissioning – 13 months from the date of signing of PPA
i.e. February, 2013.
3/16/2012 33
 Present Regulatory Framework

3/16/2012 34
 Present Regulatory Framework
• CERC has issued comprehensive tariff
Regulations for renewable energy.
• Regulations for the period 2009-10, 2010-11,
2011-12 and 2012-17 have been issued.
• Tariff design to ensure assured return with full
cost recovery during the debt repayment period.
• As a special dispensation, this full cost tariff has
been allowed for 25 years for solar energy.

3/16/2012 35
 Solar tariff determined by CERC
S.No. Control Type of Benchmark Tariff Validity of Conditions Conditions for Project
Period solar Cost (`/kwh) tariff for PPA Commissioning
Project (`crore/MW)

1. 2009-10 Solar PV 17.00 18.44 2009-10 Project Commissioning

by 31.03.2010
Solar 13.00 13.45 2009-10
Thermal
2. 2010-11 Solar PV 16.90 17.91 2010-11 & Project Commissioning
2011-12 by 31.03.2012
PPA to be
Solar 15.30 15.31 2010-11, signed by
Thermal 2011-12 & Project Commissioning
31.03.2011 by 31.03.2013
2012-13

3. 2011-12 Solar PV 14.42 15.39 2011-12 & Project Commissioning

2012-13 by 31.03.2013
PPA to be
Solar 15.00 15.04 signed after
Thermal Project Commissioning
31.03.2011 by 31.03.2014

4. 2012-17 Solar PV 10.00 11.59 2012-13 Project Commissioning

PPA to be by 31.03.2014
signed by
Solar 13.00 13.23 Project Commissioning
31.03.2013
Thermal by 31.03.2015

3/16/2012 36
 Tariff……..contd.
S.No. Parameters Unit Solar PV Solar Thermal
2009-10 2010-11 2009-10 2010-11
1 Capacity Utilization Factor % 19 19 23 23
2 Aux Consumption Factor 10.00 10.00
3 Useful Life Years 25 25 25 25
4 Capital Cost Rs.Cr./MW 17.00 16.90 13.00 15.30
5 Debt : Equity ratio 70 : 30 70 : 30 70 : 30 70 : 30
6 ROE for first 10 years % p.a. 19 19 19 19
7 ROE 11th year onwards % p.a. 24 24 24 24
8 Interest rate % 14.29 13.39 14.29 13.39
9 Discount Rate % 16.60 15.97 16.60 15.97
10 Depreciation Rate for first 10 years % 7 7 7 7
11 Depreciation Rate 11th year onwards % 1.33 1.33 1.33 1.33
12 O&M Expenses
Power Plant Rs.Lakh/MW 9 9.51 13 13.74
Total O&M Expenses escalation % 5.72% 5.72% 5.72% 5.72%
13 Working Capital
i) O&M Charges Months 1 1 1 1
ii) Maintenance Spares as % of O&M % 15 15 15 15
Expenses 2 2 2 2
iii) Receivables on Debtors Months
14 Levellised tariff Rs./kWh 18.44 17.91 13.45 15.31
3/16/2012 37
 Tariff……..contd.
S.No. Parameters Unit Solar PV Solar Thermal
2010-11 2011-12 2010-11 2011-12
1 Capacity Utilization Factor % 19 19 23 23
2 Aux Consumption Factor 10.00 10.00
3 Useful Life Years 25 25 25 25
4 Capital Cost Rs.Cr./MW 16.90 14.42 15.30 15.00
5 Debt : Equity ratio 70 : 30 70 : 30 70 : 30 70 : 30
6 ROE for first 10 years % p.a. 19 19 19 19
7 ROE 11th year onwards % p.a. 24 24 24 24
8 Interest rate % 13.39 13.25 13.39 13.25
9 Discount Rate % 15.97 15.88 15.97 15.88
10 Depreciation Rate for first 10 years % 7 7 7 7
11 Depreciation Rate 11th year onwards % 1.33 1.33 1.33 1.33
12 O&M Expenses
Power Plant Rs.Lakh/MW 9.51 10.02 13.74 14.53
Total O&M Expenses escalation % 5.72% 5.72% 5.72% 5.72%
13 Working Capital
i) O&M Charges Months 1 1 1 1
ii) Maintenance Spares as % of O&M % 15 15 15 15
Expenses 2 2 2 2
iii) Receivables on Debtors Months
14 Levellised tariff Rs./kWh 17.91 15.39 15.31 15.04
3/16/2012 38
 Solar PV- Trend of tariff vis-à-vis Capital Cost
20.00
18.00
16.00
14.00
12.00
10.00
8.00
6.00
4.00
2.00
0.00
2009-10 2010-11 2011-12 2012-13
Capital Cost (Rs. Cr/MW) Tariff (Rs./kWh)

3/16/2012 39
 Solar Thermal- Trend of tariff vis-à-vis Capital Cost

15.50

15.00

14.50

14.00

13.50

13.00

12.50

12.00

11.50
2009-10 2010-11 2011-12 2012-13
Capital Cost (Rs. Cr/MW) Tariff (Rs./kWh)

3/16/2012 40
 Solar PV

18.00 20
16.00 18
14.00 16
Capital Cost

14
12.00
12

Tariff
10.00
10
8.00
8
6.00
6
4.00 4
2.00 2
0.00 0
2009-10 2010-11 2011-12 2012-13

Capital Cost (Rs.Crore/MW Tariff (Rs./kWh)

 Solar Thermal

15.50 15.5
15.00 15
14.50
Capital Cost

14.5
14.00

Tariff
14
13.50
13.5
13.00
13
12.50
12.00 12.5
11.50 12
2009-10 2010-11 2011-12 2012-13

Capital Cost (Rs.Crore/MW Tariff (Rs./kWh)

 Payment Security Mechanism
• The Government of India have approved the
Payment Security Scheme (PSS) on 30th June,2011
for grid connected solar power projects under
Phase-I of JNNSM, with Gross Budgetary Support
(GBS) of not exceeding Rs.486.05 crore to MNRE in
the event of default by State Utilities/Discoms from
Plan Funds.
• NVVN shall have to open the Solar Payment Security
Account (SPSA) for this purpose and managing it as
per mechanism/provisions of the scheme.

3/16/2012 43
 Payment Security Mechanism ….contd.

• The PSS is perceived as “fall-back” arrangement-

– It is envisaged to be accessed only when other
payment security provisions available in PSA such
as six months revolving Letter of Credit linked
with Escrow account have been exhausted.
– If NVVN cannot meet a default by any
distribution utility from the Letter of Credit and
the Default Escrow Agreement, it shall have the
right to approach the SPSA.

3/16/2012 44
 Payment Security Mechanism ….contd.

• Under the PSS, in case of default in payment by the

Distribution Utilities-
– NVVN has the right to divert bundled power for
sale to third parties through bilateral contract
with a paying Distribution Utilities; or
– Move to sell in Power Exchange in Spot/day
ahead/ Term ahead Market by using its best
efforts to realize the most favourable rates for
such power.

3/16/2012 45
 Payment Security Mechanism ….contd.

• Review/ Monitoring of the Payment Security Scheme

– The MNRE will undertake review/monitoring of the
implementation of the PSS through a PSS
Management Committee (PMC) under the
Chairmanship of Secretary, MNRE and having
representatives of MOP and MOF.
– The PMC will be empowered to issue any directions
to remove difficulties with regard to implementation
of the PSS in consultation with Planning Commission.
– MNRE will also undertake monitoring of solar power
projects to minimize defaults.

3/16/2012 46
 Renewable Purchase Obligation

3/16/2012 47
 Renewable Purchase Obligation
• The Electricity Act mandates the State Commission to
specify a percentage of the total consumption of
electricity in the area of a distribution licensee, for
purchase of electricity from renewable sources.

• As per the Policy framework of the National Solar

Mission, the solar power purchase obligation for
States may start with 0.25% in the phase I and to go
up to 3% by 2022, which could be complimented to
allow utilities and solar power generation companies
to buy and sell certificates to meet their solar power
purchase obligations.
3/16/2012 48
 Renewable Purchase Obligation
• The Union Cabinet approved to amend Para 6.4(1) of
the Tariff Policy,2006 – (non-conventional sources of
energy generation including co-generation) on 6th
January,2011.

• The present amendment in para 6.4(1) of the Tariff

Policy is as per the proposal of the National Solar
Mission Strategy (Implementation of the National
Solar Mission) which was approved by the Cabinet on
19th November,2009.

3/16/2012 49
 Renewable Purchase Obligation
• The amendment requires the State Electricity
Regulators to fix a percentage of energy purchase
from the solar power under the RPOs, which may start
with 0.25% in Phase-I (by 2013) and go up to 3% by
2022.

• This will be complemented by solar specific

Renewable Energy Certificate (REC) mechanism to
allow solar power generation companies to sell
certificates to the utilities to meet their solar power
purchase obligations.
3/16/2012 50
 Renewable Purchase Obligation

• SERCs in all major States have specified RPOs

• RPOs vary from 1% to 10% in different States
• Presently the share of renewable energy source is
about 12% in total installed capacity as on 31.11.2011.
• Share of solar capacity presently is 1% which is
negligible.

3/16/2012 51
 Renewable Portfolio Obligation (RPO) specified by the State Electricity
Regulatory Commission
S. No. State Renewable Energy FY 10-11 FY 11-12 FY 12-13
Sources
1 Gujarat Wind 4.50% 5.00% 5.50%
Solar 0.25% 0.50% 1.00%
Others 0.25% 0.50% 0.50%
Total 5.00% 6.00% 7.00%
2 Maharashtra Solar 0.25% 0.25% 0.25%
Non-Solar 5.75% 6.75% 7.75%
Total 6.00% 7.00% 8.00%
3 Uttaranchal Solar 0.25% 0.50% 1.00%
Non-Solar 3.75% 4.50% 5.00%
Total 4.00% 5.00% 6.00%
4 Manipur Solar 0.25% 0.25% 0.25%
Non-Solar 1.75% 2.75% 4.75%
Total 2.00% 3.00% 5.00%
5 Mizoram Solar 0.25% 0.25% 0.25%
Non-Solar 4.75% 5.75% 6.75%
Total 5.00% 6.00% 7.00%
6 Jammu & Kashmir Total 1.00% 3.00% 5.00%
7 Uttar Pradesh Solar 0.25% 0.50% 1.00%
Non-Solar 3.75% 4.50% 5.00%
Total 4.00% 5.00% 6.00%
8 Tripura Solar 0.10% 0.10% 0.10%
Non-Solar 0.90% 0.90% 1.90%
Total 1.00% 1.00% 2.00%
3/16/2012 52
 Renewable Portfolio Obligation (RPO) specified by the State Electricity
Regulatory Commission
S. No. State Renewable Energy FY 10-11 FY 11-12 FY 12-13
Sources
9 Jharkhand Solar 0.25% 0.50% 1.00%
Non-Solar 1.75% 2.50% 3.00%
Total 2.00% 3.00% 4.00%
10 Himachal Pradesh Solar 0.10% 0.10% 0.10%
Non-Solar 10.00% 11.00% 12.00%
Total 10.10% 11.10% 12.10%
11 Orissa Solar 0.10% 0.15%
Non-Solar 1.00% 1.20% 1.40%
Co-gen 3.50% 3.70% 3.95%
Total 4.50% 5.00% 5.50%
12 Assam (Draft) Solar 0.05% 0.10% 0.10%
Non-Solar 1.35% 2.70% 4.15%
Total 1.40% 2.80% 4.25%
13 Tamil Nadu 14%
14 Delhi 1%
15 Andhra Pradesh 5%
16 Karnataka 11%
17 West Bengal 10%
18 Rajasthan 9.50% 9.50%
19 Madhya Pradesh 10%
20 Punjab 4%
21 Haryana 10%

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 Thank You
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 Renewable Energy - Worldwide

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