India's ambitious mission to ramp up its solar power hundredfold in the next 13 years and reduce dependence on fossil fuels was unveiled here Monday.
The mission anticipates achieving parity with cost of electricity on the grid by 2022 and parity with coal-based thermal power by 2030. The plan is to produce 20,000 MW through solar power by 2022, up from just 200 MW now.
The mission, to be coordinated by the Ministry of New and Renewable Energy (MNRE), will improve India's energy security by reducing dependence on imported petroleum. "Already, faced with crippling electricity shortages, price of electricity traded internally, touched Rs.7 per unit for base loads and around Rs.8.50 per unit during peak periods," says the mission document released by MNRE Minister Farooq Abdullah.
"The situation will also change as the country moves towards imported coal to meet its energy demand. The price of power will have to factor in the availability of coal in international markets and the cost of developing import infrastructure.
"It is also evident that as the cost of environmental degradation is factored into the mining of coal, as it must, the price of this raw material will increase. In the situation of energy shortages, the country is increasing the use of diesel-based electricity, which is both expensive -- costs as high as Rs.15 per unit -- and polluting.
The mission, called the Jawaharlal Nehru National Solar Mision after the nation's first prime minister, will adopt a three-phase approach, spanning the remaining period of the 11th Plan and first year of the 12th Plan (up to 2012-13) as Phase 1, the remaining four years of the 12th Plan (2013-17) as Phase 2 and the 13th Plan (2017-22) as Phase 3.
At the end of each plan, and mid-term during the 12th and 13th Plans, there will be an evaluation of progress, review of capacity and targets for subsequent phases, based on emerging cost and technology trends, both domestic and global. The aim would be to protect the government from subsidy exposure in case expected cost reduction does not materialize or is more rapid than expected.
The first phase will focus on solar thermal; on promoting off-grid systems to serve populations without access to commercial energy and modest capacity addition in grid-based systems. In the second phase, after taking into account the experience of the initial years, capacity will be aggressively ramped up to create conditions for up-scaled and competitive solar energy penetration in the country.
The key driver for promoting solar power would be through a Renewable Purchase Obligation (RPO) mandated for power utilities, with a specific solar component. The obligation will be gradually increased while the tariff fixed for solar power purchase will decline over time.
The mission in its first two phases will promote solar heating systems which are already using proven technology and are commercially viable. It will: