Home > Dr. Bobby Mitra, GreenBrilliance, National Solar Mission, solar, solar photovoltaics, TI > Industry reactions on National Solar Mission (NSM)

Industry reactions on National Solar Mission (NSM)

November 25, 2009

Observations by India’s semiconductor and solar industry on the National Solar Mission (NSM).

Dr. Biswadip (Bobby) Mitra, president and managing director, Texas Instruments India, Bangalore.Dr. Biswadip (Bobby) Mitra, president and managing director, Texas Instruments India, Bangalore.
India is blessed with sunlight for most part of the year and is in a unique position to create multiple opportunities in the solar energy arena.

We have a dedicated Ministry of Renewable Energy (MNRE) and its financial arm IREDA to channelize the potential of solar energy. We also have abundant talent spanning across solar thermal, electronic systems and semiconductors.

India can therefore play a pivotal role in taking this fledgling industry to a significant position. The commitment of the Indian leadership to promote green technologies is commendable and Texas Instruments will support any endeavor towards expanding and enhancing this ecosystem.

Semiconductors and electronics can add high value in developing the solar energy infrastructure. Texas Instruments believes this is a step in the right direction that would spur many new innovations and we seek to participate actively in this exciting journey.

Ms Shilpa Urhekar, Head-Production, GreenBrilliance Energy Pvt Ltd, Baroda.
The NSM does not talk money apart from mentioning that funding for the ambitious targets would be from budgetary support and multilateral mechanism under the UN system.

The policy has suggested a renewable purchase obligation (RPO) on states that could start with 0.25 percent of their power off take in Phase I by 2013 and going up to 3 percent by 2022. This, I think, is going to be the main driver for the growth of grid solar power.

State utilities will have to purchase this power from the NTPC Vidyut Vyapar Nigam Ltd (NVVN), the designated nodal agency by the Ministry of Power (MoP), for entering into a power purchase agreement (PPA), of 25 years.

The idea of introducing power trading instrument of REC is also an ambitious plan. The mechanism which will be devised for its implementation remains to be seen though.

The good news is that, with this booster to the mainstream industry, there would be huge employment generation.

I will add more comments, as I receive those!

 

 

 

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  1. Anand
    November 26, 2009 at 7:09 am

    I’m a potential IPP and for me, the draft looked more clear (from an IPP’s point of view) than the final version, as the details for the IPP lacks clarity. More over, It says, a single window clearance will be created, but how soon they will bring out this, is another big question?

    – Anand.

  2. Pradeep Chakraborty
    November 26, 2009 at 7:13 am

    Regarding the single-window clearance, that’s for the industry to discuss (and debate) with the MNRE. 🙂 Similarly, it is now up to the industry to make this all exciting… best wishes.

  3. Rao
    November 26, 2009 at 1:32 pm

    Any policy has its pluses and minuses.

    getting the policy out was itself a BIG achievement and its for the Industry to now put the pressure on the ministry and flood it with questions and clarity and protocols and permissions – the sooner the better.

    We are a country that worship the SUN God and have temples for him.Let entrepreneurs allow a thousand SUNS shine over India.

    Thanks Pradeep for being on top of the action as it happens. Any idea on lesser known players in this space like Shrujo Energy and Suryachakra Power and V-Guard. The biggies like XL and Moser are already known to many. Its the smaller players who might transition to majors of tomorrow.

    Regards

  4. Pradeep Chakraborty
    November 26, 2009 at 1:55 pm

    Hello Mr Rao, thanks for your comments. Am trying to touch base with as many folks as possible, including Shurjo Energy, Suryachakra, etc. Hope they get back to me! 🙂

  5. SD
    December 1, 2009 at 6:53 pm

    Mr. Pradeep and others:

    I am a newbie to the Solar sector. I am planning to start a solar farm in India with an intended max capacity upto 10MWp but starting with a 1 MWp to begin with.

    After reviewing the NSM, I have a few questions from a small player’s perspective and would really apreciate if anyone can share their opinion.

    1. I understand the central goverment is going to create a middle-layer organaisation to deal with permissions, PPAs etc. Does anyone have any idea how soon this department is going to start functioning? What is the price per kWh produced? Will all the power generated by a producer be bought by the utilities? What if there is excess capacity?

    2. Big players vs. small players: Will the government show favoritism in purchasing the power from big producers first and then from the small guys? I understand that they proposed a 50MW cap per company, but this can be easily worked around.

    3. Does anyone have any insight into “back-out” clause? For example, what if the government decides not to buy power from any particular producer, all of a sudden? Are there any penalties and damages to be paid by the government?

    4. Finally, what are your general suggestions? If you had the money, would you be investing in a solar farm within the next year or are there any other better areas within solar with better returns and lesser risk? From my preliminary research, the IRR for a Solar farm in India works out to about 12%. The biggest risk factors I can see is: a) the big players b) government running out of money (as has happened in Spain) c) dropping prices of solar PV systems. This increases the project viability for later entrants.

    I’d really appreciate it if you guys can guide me in this.

    Thanks
    SD

  6. Pradeep Chakraborty
    December 7, 2009 at 10:24 pm

    Hi SD, here are some replies to your queries 🙂

    1. The price per kWh produced should be as per CERC regulations.
    2. Power should be purchased by NTPC VVNL.
    3. Regarding excess capacity, as per NSM, 1000 MW is the target for the first phase.
    4. Back out clause? There will be comprehensive PPAs in place, am sure!

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