Whilst the second phase of Jawaharlal Nehru National Solar Mission (JNNSM) is under way, industry experts believe that concerns over Renewable Purchase Obligation (RPO) and funding for solar projects need to be addressed during the second phase, which may hamper the growth of solar industry in the country. Experts also feel that active participation by states should also be ensured in meeting the target of Phase II of JNNSM.
Manufacturers have asked for strict penalties to be imposed if RPO is not met. According to the RPO norm, every electricity distribution utility, captive or open access, must buy a part of their electricity needs from renewable sources.
K. Subramanya, former chief executive officer, Tata BP Solar, has reportedly said that successful implementation of the JNNSM would need formulation of favourable policy framework, which will help to overcome technology, finance, infrastructure and regulatory barriers, such as the RPO.
Other than RPO, solar project developers complain of problems while seeking loans from banks or financial institutions and have asked for more transparency and ease of funding the projects via external borrowing sources. “High penetration of solar power requires substantial funding support from banking and financial institutions. More importantly, there is the need to address the issue of dumping of thin film modules,” Subramanya reportedly said.
Solar generation in the country is at full swing, around 12 states which includes Gujarat, Tamil Nadu, Chhattisgarh, Karnataka, Andhra Pradesh and Kerala have begin the process of generating solar power. The National Solar Mission envisages installation of around 10,000 MW utility scale and 1,000 MW off-grid solar power projects by the end of the second phase.
