Monday, December 02, 2013: India’s ambitious Jawaharlal Nehru National Solar Mission that has set a target of 20,000 MW solar energy capacity by 2022 is facing issues. A senior government official told Business Standard on condition of anonymity that the reasons are poor financial health of power distribution companies and funding issues.
Tarun Kapoor, Joint secretary, Ministry of New and Renewable Energy (MNRE) told PTI, “We believe the 20,000 MW target is achievable. But it will not be easy as there are several challenges like inadequate transmission network, financial ability of discoms, among others.”
Project developers are seriously concerned about the sad financial position of state electricity boards despite the government having added debt restructuring package for distressed power distribution companies (discoms).
Kapoor added that the the lack of transmission network to evacuate solar power is a major hurdle.
“Setting up a transmission network is not an easy task. There are several challenges associated with it. There are concerns over funding in setting up solar plants, as banks are a little reluctant to fund such projects,” Kapoor said.
However, the government is working on developing the solar energy segment. There are plans to set up ultra mega solar projects (UMPPs), with a capacity of about 4,000 MW, in separate parts of the country.
Ground work has already commenced for the country’s first solar UMPP in Rajasthan. It would be developed by a joint venture — Bhel (26 per cent), Solar Energy Corp (23 per cent), Power Grid Corp, Satluj Jal Vidyut Nigam and Hindustan Salts (16 per cent each) and Rajasthan Electronics and Instruments (REIL) (3 per cent), added the report.
“The joint venture (agreement) will be signed in December. The joint venture firm will then float the tenders,” Kapoor added.
