Policy & Regulatory Framework
- Provide a predictable incentive structure that enables rapid & large-scale capital investment in solar energy applications
- In long run, mission would seek to establish a Sector- Sector specific legal & regulatory framework for solar power development
- In short run, it embeds the activities of the mission within the existing framework of Electricity Act of 2003
- National Tariff Policy 2006 mandates the State Electricity Regulatory Commissions (SERC) to fix a minimum percentage of energy purchase from renewable sources of energy (availability of resources & impact on retail tariff)
- Solar power purchase for states
- Phase I- 0.25%
- By 2022- up to 3%
- In order to encourage rapid scale-up a scheme is being introduced in co-operation with the Ministry of Power, NTPC & Central Electricity Authority, to simply off-take of solar power & reduce the financial burden on govt.
- Also aims to bring down the gap between average cost of power and sale price of power
- Under JNNSM, NVVN (NTPC Vidyut Vyapar Nigam) to be the nodal agency for the procurement and sale of solar power
- NVVN to source and sell 1,000 MW solar power in Phase 1 based on a Solar Tariff (to be paid to solar power project developers) fixed by Central Electricity Regulatory Commission (CERC)
- Solar tariff for FY 2010-11 tariff as per CERC - Solar PV Rs. 18.44 per unit; CSP Rs. 13.45 per unit
- NVVN to bundle an equal amount of conventional power with solar power
- Bundled solar and conventional solar power to be sold to states by NVVN @ Rs 5.5/ unit