Nov 26, 2009

Ambitious solar plans unveiled by India

2009 Nov 26

New Delhi, India [RenewableEnergyWorld.com]

India's Dr. Farooq Abdullah, Union Minister for New and Renewable Energy, has confirmed details of the national solar energy development policy in a statement to Parliament.

One of the eight key National Missions which comprise India’s National Action Plan on Climate Change, the so-called Solar Mission, launched under the brand name “Solar India” recommends a three phase implementation, leading to an installed capacity of some 20,000 MW in 2022.

The first phase will last until 2012-2013, Phase 2 will run from 2013-2017 and 2017-2022 as Phase 3. The first phase will focus on capturing low-hanging options in solar thermal; promoting off-grid systems to serve populations without access to commercial energy, and modest capacity additions of grid-based systems. In the second phase, the government says that capacity will be aggressively ramped up to create conditions for up-scaled and competitive solar energy penetration.

Targets include ramping up capacity of grid-connected solar power generation to 1000 MW by 2013, and an additional 3000 MW by 2017 through the mandatory use of renewable purchase obligations by utilities, backed with a preferential tariff. This total potential installed capacity could be more than doubled to 10 GW or more by 2017 based on enhanced and enabled international finance and technology transfer, the Ministry for New and Renewable Energy (MNES) says.

At the end of each plan - and mid-term during the first two phases - there will be an evaluation of progress and a review of capacity and targets for subsequent phases. Reviews will be based on emerging cost and technology trends, both domestic and global, with the aim of protecting the government from subsidy exposure in the event that cost reduction does not materialize or is more rapid than expected.

The ambitious 2022 target of 20 GW or more will be dependent on the first two phases, which if successful, could lead to grid-competitive solar power by the end of the programme, MNES adds. Grid parity with cheap coal-fired thermal power is anticipated by 2030, although the government warns that this cost trajectory will depend upon the scale of global deployment and technology development and transfer. Nonetheless, there are a number of off-grid solar applications particularly for meeting rural energy needs, which are already cost-effective and provide for rapid expansion.

Read more: http://www.renewableenergyworld.com/rea/news/article/2009/11/ambitious-solar-plans-unveiled-by-india

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