Policy Update
Sanju Joshi
Background:
The Jawaharlal Nehru National Solar Mission was part of the National Action Plan on Climate Change. It was launched in January 2010 under the brand ‘Solar India.’ The mission aimed to promote sustainable development using solar energy and compete with traditional sources of electricity. The mission’s ultimate objective was to establish India as a global leader in solar energy. With the accessibility of extended hours of sunlight, India has excellent solar energy potential. According to the National Institute of Solar Energy, India’s solar potential is 748 GW with 3% of wasteland to install solar PV modules.
India’s initial target was to achieve 20 GW of grid-connected solar power by 2022; however, with rapid technological growth, the revised target reached 100 GW. India now stands at 5th rank in the world in terms of installed solar capacity.
India’s goal of becoming a global powerhouse of solar energy is currently challenged by the high fixed cost associated with solar energy. Right now, solar energy costs more than coal-based energy, and hence, this mission aims to reduce this cost and achieve grid parity. Through this mission, the government aims to expand solar capacity, improve solar manufacturing, and encourage new technologies in India. By 2030, the government aims to make solar energy as affordable as coal energy and easy to access in households. Achieving this target depends on global progress in solar technology and its ultimate acceptance globally.
Objectives of the Mission:
The mission is divided into 3 phases, each with different objectives. The first phase of the mission focused on providing low-cost, affordable means of solar thermal solutions; promoting off-grid solar systems that provide energy without being connected to commercial energy; and increasing existing grid-based energy systems. The second phase of the mission focused on rapid growth of solar-based energy and making it more common and competitive. To achieve the mission, the targets set are
- Deployment of 20,000 MW solar power by 2022.
- Establish infrastructure to enhance solar manufacturing capabilities.
- To achieve 15 million m² solar thermal collector area by 2017 and 20 million m² by 2022.
- To achieve 1000 MW of off-grid-based energy by 2017 and 2000 MW by 2022.
- Deployment of 20 million solar light systems in rural areas by 2022.
Phases of the Mission:
The first phase focused on strengthening the foundations to achieve the objectives of the mission. During the first phase, the target was to set up 1,000 MW of grid-connected (33 KV and above) solar plants, 100 MW of rooftop and small solar plants connected to the LT/11 KV grid, and 200 MW of capacity equivalent off-grid solar applications. The task was entrusted to NTPC Vidyut Vyapar Nigam (NVVN), a trading subsidiary of NTPC Limited. As per the noted guidelines, NVVN directly purchased the solar power from the project developers. The 200 MW off-grid solar application includes solar thermal and photovoltaic systems for areas without proper grid access, which were funded through low-interest loans and central financial assistance. For Phase 1 of the National Solar Mission, a budget of Rs 4337 crore was allocated.
The 2nd and 3rd phases of the National Solar Mission aimed to significantly increase India’s solar power generation capacity and reduce the cost of solar power generation in the country through
• Long-Term Policy
• Large-Scale Deployment Goals
• Investment in R&D
• Domestic production of critical raw materials, components, and products to reduce reliance on imports.
The mission aimed to set up a 1000 MW rooftop PV program, both grid- and off-grid-connected. Off-grid solar applications such as solar pumps, solar lighting systems, and mini-grids were installed in rural areas.
Development of Solar Park and Ultra Mega Solar Power Projects:
In 2014, when phase two of the national solar mission was initiated, the scheme for “Development of Solar Parks and Ultra Mega Solar Power Projects” was proposed with aggregate capacity 20,000 MW. The capacity was later revised to 40,000 MW in 2017. The timeline of this scheme is up to 2025-26.
The Ministry is providing Central Finance Assistance (CFA) of up to Rs 20 lakh per MW or 30% of the project cost, including grid-connectivity cost, whichever is lower for achieving the goal. An approximate requirement of 4 to 5 acres of land per MW is required for setting up solar parks. The government has planned to set up around 50 solar parks under the scheme. The total budget approved under the scheme is Rs 8100 crore.
An example of one such solar park is the ‘Rewa Ultra Mega Solar Park’ (Madhya Pradesh).
Impact of the Mission:
1. Under the first phase of the mission, the installed collector area doubled from 3.15 million m² to 6.98 million m².
2. Solar Thermal Federation of India registered 27 manufacturers among its members by the end of Phase 1, who controlled 85% of the market. It successfully established the national solar mission as a common cause promising solar energy to common households.
3. Rapid growth of target achievement created huge demands for solar energy projects and equipment.
4. The initial target of installing 20 GW of utility solar power by 2022 was established in 2018 only.
5. India increased its utility solar power generation capacity by nearly 3 times from 2,650 MW on 26 May 2017.
6. Solar radiation monitoring stations were set up across India.
7. As of March 2024, 64.42 GW of ground-mounted solar, 11.48 GW of rooftop solar, 2.25 GW from the solar component of hybrid projects, and 2.95 GW of off-grid solar power capacity have been installed.
Solar Energy: China’s Case:
From 2021 to 2022 world’s total installed capacity of solar energy increased by 33%. With China, U.S.A and Japan taking the top 3 spots. China alone accounts for 37% of installations of solar energy in 2022. By the end of March 2024, China had reportedly installed more solar energy capacity than combined the whole world for 2023. Under China’s ‘Whole Country Solar’ programme the majority of installations were completed on rooftops indicating the accessibility to the masses. China is the largest market of both photovoltaic and solar thermal energy, it has already achieved its 2030 target of installed solar energy. In 2013 only when India stepped into the depths of solar energy, China had already been the global leader of solar based energy.
China has been investing in renewable energy programmes for a long time. China’s fifth and sixth five year plan were first to address PV panel manufacturing. Additionally they invest heavily in Research and Development and focus on reducing cost and increasing accessibility.
Challenges Ahead:
- Intermittency: Natural sources like solar energy are not consistently available, causing fluctuations in energy production that can potentially challenge grid stability and reliability.
- Grid Infrastructure Readiness: The existing transmission and distribution technologies must be upgraded to accommodate distributed solar power generation effectively. This requires some significant amount of investment in smart grid technologies and grid modernization initiatives.
- Lack of R&D: Lack of investment in R&D limits the potential of unexplored technological reforms that impact the development of solar panels. Due to inefficient technology, the country has to depend on imports.
- Administrative Issues: Policy and regulatory uncertainties can limit the implementation of the mission. Issues like ease of land acquisition, governmental approvals, material supply limits, etc., affect the pace of development.
Way Forward:
With rising global climatic concern, it’s important to address the need for renewable energy resources. Solar power has enormous potential to channel the energy requirements of the country towards renewable energy sources from the traditional ones. India’s increasing concern towards sustainability and climatic change brings a positive change globally.
Bloomberg New Energy Finance (BNEF) estimated in its NEO 2018 report that India will generate 75% of its electricity from renewable energy sources. In the Union Budget 2025, the Indian government increased the expenditure on solar projects to Rs 242.24 billion.
India is actively investing in the research and development of technologies like tandem cells and organic semiconductors that can improve the power conversion efficiency of solar applicators. Government programs like PM-KUSUM, PM Surya Ghar: Muft Bijli Yojana, etc., are complimentary plans to support the National Solar Mission.
- PM-KUSUM : Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan is a government scheme launched in March, 2019. The scheme provided financial subsistence to the farmers for installation of standalone solar pumps, solar power plants, and solarization of existing grid-connected agricultural pumps.
- PM Surya Ghar : Launched in February 2024, this scheme aimed for households to generate their own electricity using solar panels. The scheme has a provisioned budget of Rs 75,021 crore that is to be implemented by FY-2026-27.
To ensure complete implementation of NSM, India must focus on policy stability, technological advancement, financial innovation, and infrastructure upgrades. Following a holistic approach, India can establish itself as a global leader in solar energy.
References:
Ministry of New and Renewable Energy. Renewable energy statistics (2023-2024)
https://cdnbbsr.s3waas.gov.in/s3716e1b8c6cd17b771da77391355749f3/uploads/2024/10/20241029512325464.pdf
Ministry of New and Renewable Energy. Annual Report (2023-2024).
https://cdnbbsr.s3waas.gov.in/s3716e1b8c6cd17b771da77391355749f3/uploads/2024/10/20241014958242917.pdf
Malaviya, J. (July 27, 2013). India: Phase I Results of National Solar Mission.https://solarthermalworld.org/news/india-phase-i-results-national-solar-mission/
Mahendra P. Patil, Atul N. Vaidya, Sushant B. Wath (2022). India’s Solar Mission: Current Scenario & Challenges Ahead—A Overview
http://jmms.nmlindia.org/wp-content/uploads/2023/01/2_Sushant_Wath.pdf
About the Contributor: Sanju Joshi is a research intern at IMPRI, pursuing a B.A. (hons.) in economics from Delhi University.
Acknowledgment : The contributor gratefully acknowledges the guidance and support provided by Team IMPRI throughout the course of this work.
Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.
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