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Ministry of New and Renewable Energy TWENTY-EIGHTHREPORT STANDINGCOMMITTEEONENERGY (2016-2017) (SIXTEENTHLOKSABHA) MINISTRYOFNEWANDRENEWABLEENERGY NATIONALSOLARMISSION—ANAPPRAISAL PresentedtoLokSabhaon 31.07.2017 LaidinRajyaSabhaon 31.07.2017 LOKSABHASECRETARIAT NEWDELHI July,2017/Shravana,1939( Saka) COENo.287 Price : R128.00 ©2017B YLOKSABHASECRETARIAT PublishedunderRule382oftheRulesofProcedureandConduct ofBusinessinLokSabha(FifteenthEdition)andprintedby AegeanOffsetPrinters,NewDelhi. CONTENTS PAGENO. COMPOSITION OF THECOMMITTEE(2016-2017) ............................. (iii) INTRODUCTION ................................................................. (v) REPORT PARTI NARRATIONANALYSIS CHAPTERI Introductory ................................................ 1 CHAPTERII GridConnectedSolarPower ............................ 4 CHAPTERIII Off-GridSolarApplications .............................. 37 CHAPTERIV ProgressofNationalSolarMission ..................... 50 CHAPTERV SolarManufacturinginIndia ............................ 64 CHAPTERVI R&DandHumanResourceDevelopment ............. 69 PARTII Recommendations/ObservationsoftheCommittee ....... 73 ANNEXURES I. MinutesofthesittingoftheCommitteeheldon 19thMay,2017.................................................... 85 II. MinutesofthesittingoftheCommitteeheldon 30thJune,2017 .................................................. 88 III. MinutesofthesittingoftheCommitteeheldon 7thJuly,2017 ..................................................... 91 IV. MinutesofthesittingoftheCommitteeheldon 28thJuly,2017 ................................................... 94 (i) COMPOSITIONOFTHESTANDINGCOMMITTEE ONENERGY(2016-17) Dr.VirendraKumar— Chairperson MEMBERS LokSabha 2. ShriSultanAhmed 3. ShriOmBirla 4. ShriM.Chandrakasi 5. ShriAshwiniKumarChoubey 6. ShriHarishChandra alias HarishDwivedi 7. ShriDeependerSinghHooda 8. ShriBhagatSinghKoshyari 9. Dr.ArunKumar 10. KunwarSarveshKumar 11. ShriMalyadriSriram 12. ShriR.P.Marutharajaa 13. Dr.PritamGopinathMunde 14. ShriJagdambikaPal 15. ShriRavindraKumarPandey 16. ShriM.B.Rajesh 17. ShriVinayakBhauraoRaut 18. ShriGuthaSukenderReddy 19. ShriConradKongkalSangma 20. ShriDevendraSingh alias BholeSingh 21. ShriBhanuPratapSinghVerma RajyaSabha 22. ShriT.K.S.Elangovan 23. ShriOscarFernandes 24. ShriRamJethmalani 25. ShriLa.Ganesan (iii) 26. ShriJavedAliKhan 27. Dr.PrabhakarKore 28. ShriShamsherSinghManhas 29. ShriS.Muthukaruppan 30. Dr.AnilKumarSahani 31. ShrimatiViploveThakur SECRETARIAT 1.ShriA.K.Singh — AdditionalSecretary 2.ShriSukhiChandChaudhary — JointSecretary 3.ShriN.K.Pandey — Director 4.Ms.Deepika — ExecutiveAssistant (iv) INTRODUCTION I,theChairperson,StandingCommitteeonEnergy,havingbeen authorizedbytheCommitteetopresenttheReportontheirbehalf, presentthisTwentyEighthReporton ‘NationalSolarMission—An Appraisal’relatingtotheMinistryofNewandRenewableEnergy. 2.TheCommitteehadabriefingonthesubjectbythe representativesoftheMinistryofNewandRenewableEnergyon19th May,2017.TheCommittee,withaviewtoexaminingthesubjectin detail,hadevidenceoftherepresentativesoftheMinistryofNewand RenewableEnergyon30thJune,2017and7thJuly2017.TheCommittee wishtoexpresstheirthankstotherepresentativesoftheMinistryof NewandRenewableEnergyforappearingbeforetheCommitteeand furnishingthedesiredinformationinconnectionwiththeissuesrelating tothesubject. 3.TheReportwasconsideredandadoptedbytheCommitteeat theirsittingheldon28thJuly,2017. 4.TheCommitteeplaceonrecordtheirappreciationofthevaluable assistancerenderedtothembytheofficialsoftheLokSabhaSecretariat attachedtotheCommittee. 5.Forfacilityofreferenceandconvenience,theobservationsand recommendationsoftheCommitteehavebeenprintedinboldletters inPart-IIoftheReport. NEWDELHI; DR.VIRENDRAKUMAR, 28 July, 2017 Chairperson, 06 Shravana, 1939 (Saka) StandingCommitteeonEnergy. (v) REPORT PARTI NARRATIONANALYSIS CHAPTERI INTRODUCTORY 1.1Itisaknownfactthatconventionalsourcesofenergyhave theirownlimitations.Withevergrowingdemandforenergy,alternative sourcesofenergyhavetobeexploredsoastoreduceourdependence onfastdepletingconventionalsources.Indiaisendowedwithavery vastsolarenergypotential.Morethan750GWpotentialhasbeen estimatedfromSolarEnergy.Mostpartsofthecountryhaveabout300 sunnydays.Averagesolarradiationincidentoverthelandisinthe rangeof4-7kWhperday. 1.2Thesolarenergycanbeutilizedthroughsolarphotovoltaic technologywhichenablesdirectconversionofsunlightintoenergyand solarthermaltechnologieswhichutilizesheatcontentofsolarenergy intousefulapplications.Overthelastthreedecadesseveralsolar energybasedsystemsanddeviceshavebeendevelopedanddeployed inIndiawhicharesuccessfullyprovidingenergysolutionsforlighting, cooking,waterheating,airheatingandcoolingandelectricity generation.Theresearchanddevelopmenteffortshavealsohelpedin betterefficiency,affordabilityandqualityoftheproducts.Asaresult manysolarenergysystemsanddevicesarecommerciallyavailable withaffordablecostinthemarket. 1.3NationalSolarMission(NSM),assubmittedbytheMinistryof NewandRenewableEnergy(MNRE),waslaunchedon11thJanuary, 2010.TheMissionwastobeimplementedinthreephases.TheMission targetsincluded: (i) deploymentof20,000MWofgridconnectedsolarpowerby 2022; (ii) 2,000MWofoff-gridsolarapplicationsincluding20million solarlightsby2022; (iii) 20millionsq.m.solarthermalcollectorarea; (iv) to createfavourableconditionsfordevelopingsolar manufacturingcapabilityinthecountry;and (v) supportR&Dandcapacitybuildingactivitiestoachievegrid parityby2022. 1.4ThethenPrimeMinisterhademphasizedtheimportanceofthe missionas: “TheimportanceofthisMissionisnotjustlimitedtoproviding large-scalegridconnectedpower.Ithasthepotentialtoprovide significantmultipliersinoureffortsfortransformationofIndia ’s ruraleconomy.Already,initsdecentralizedanddistributed applications,solarenergyisbeginningtolightthelivesoftensof millionsofIndia ’senergy-poorcitizens.Therapidspreadofsolar lightingsystems,solarwaterpumpsandothersolarpower-based ruralapplicationscanchangethefaceofIndia’sruraleconomy.We intendtosignificantlyexpandsuchapplicationsthroughthisMission. Asaresult,themovementfordecentralizedanddisbursed industrializationwillacquireanaddedmomentum,amomentum whichhasnotbeenseenbefore. ” 1.5NowtheGovernmenthasrevisedcumulativetargetsunderNSM from20,000MWby2021-22to1,00,000MWby2021-22forGrid ConnectedSolarPowerProjects.Therevisedtargetof1,00,000MWis plannedtobeachievedin7yearsperiod(2015-16to2021-22)and broadlyconsistof40GWGridconnectedRooftopprojectsand60GW largeandmediumsizelandbasedsolarpowerprojects.Thetotal targethasbeenenvisagedtobedividedintoRooftopandmedium& largescalegridconnectedprojectsasfollow:— Category-I Proposed Category-II Proposed Capacity Capacity (MW) (MW) RooftopSolar 40,000 SchemeforDecentralizedGenerationofSolar 10,000 EnergyProjectsbyUnemployedYouthsand Farmers(SmallScaleGridconnectedprojects) PublicSectorUndertakings 10,000 LargePrivateSector/IPPs 5,000 SECI 5,000 UnderStatePolicies 20,000 Ongoing programmes includingpastachievements 10,000 Total 40,000 60,000 Thisbreakupmaychangedependingupontherequirement. 2 1.6Withthisnewinitiative,Indiawillemergeasamajorcountry utilizingtheSolarEnergyonsuchalargescale.This100GWwillresult inabatementofmillionsoftonnesofCO 2peryearandwillhelpto fulfilIndia ’scommitmenttowardsmitigatingtheeffectofClimate Change. 3 CHAPTERII GRIDCONNECTEDSOLARPOWER 2.1 Givenbelowaretheyear-wisetargets,asfurnishedbythe Ministry,toachieve100GWGridConnectedSolarPowerby2022:— Category Year-wiseTargets(inMW) 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Total RooftopSolar 200 4,800 5,000 6,000 7,000 8,000 9,000 40,000 LargeScaleSolar 1,800 7,200 10,000 10,000 10,000 9,500 8,500 57,000 PowerProjects Total 2,000 12,000 15,000 16,000 17,000 17,500 17,500 97,000* *Around3000MWwasalreadycommissionedbefore2015-16. 2.2OnbeingaskedaboutthestepstakenbytheMinistrytoachieve theabovementionedtarget,theMinistrystatedthat:— “TheGovernmenthasbeenpromotingsolarenergythroughfiscal andpromotionalincentivessuchascapitaland/orinterestsubsidy, generationbasedincentive,accelerateddepreciation,ViabilityGap Funding(VGF),financingsolarrooftopsystemsaspartofhome loan,concessionalexciseandcustomduties,preferentialtarifffor powergenerationfromrenewables,andForeigndirectinvestment upto100percentundertheautomaticrouteetc. Thisapart,TheGovernmenthasalsobeensupportingsolar manufacturingthroughaModifiedSpecialIncentivePackageScheme (M-SIPS)ofMinistryofElectronics&InformationTechnology(MeitY). TheMinistryofPowerhasissuedtheRPOtrajectoryupto2019, however,thestateregulatorshavetoissuenecessaryordersin theirrespectiveStates.TheMinistryisalsoimplementing,through PGCILandStateGovernments,anambitiousschemeofGreenEnergy Corridorswhereindedicatedtransmissionsystemisbeingcreated forevacuationofpowerfromrenewableenergyprojects.AWorld bankloanfinancingarrangementofUS$100millionisbeingworked outforcreationofinternalinfrastructureofsolarparks. ” 4 2.3OnbeingaskedaboutthefinancialdemandoftheSolarEnergy Sector,theMinistrystatedasunder:— “KeepinginviewthenormativecostofRs.5croreperMW,the totalinvestmentforcommissioningof100GWsolarpowerhas beenestimatedtoRs.5lakhcrore.Sincemostoftheinvestment forprojectscomefromPrivatesector,Ministryisprovidinga facilitativeroleinlandacquisition,loanataffordablerates,100% FDIinREsectorthroughautomaticroute.Furthermanyissuesof landacquisition,powerevacuation,transmissionetc.havebeen sortedoutthroughschemefordevelopmentofsolarparksand Ultramegasolarpowerprojectsforsettingupof40,000MWsolar projects.Inaddition,Governmentisinprocessofarrangingwith WorldBank,inconsultationwithMinistryofFinance,forUS$100 millionloanassistanceforcreatinginternalinfrastructureofsolar
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