If the government successfully implements the National Solar mission in the country, then the cost of generating solar power in India could be as low as the cost of buying conventional electricity. A draft policy document on the second phase of Jawaharlal Nehru National Solar Mission, prepared by the ministry of new and renewable energy, hopes that the country will achieve grid parity five years ahead of the original target of 2022. “We hope to see solar tariff rate coming down to Rs 6/unit in the second phase,” said Tarun Kapoor, joint secretary at the ministry.
Looking at how the price of conventional energy has gone up over the past couple of years and on the other hand, solar power becoming cheaper, the demand for solar to grow is apparent. In phase I of the solar mission, the lowest tariff received during project bidding was Rs 7.42/unit.
The steep fall in tariff witnessed under the first phase of the solar mission has made way for possible grid parity in the second phase of the National Solar Mission that starts June next. The government has planned various schemes like viability gap funding and international funds to power developers in the second phase.
“Bidders would bid for viability gap funding requirement in Rs/MW and the bidder with minimum VGF requirement would be selected,” said a draft policy document on the second phase of Jawaharlal Nehru National Solar Mission, prepared by the ministry of new and renewable energy.
In the second phase of the mission, the government plans to provide viability gap funding (VGF) for 750 MW of solar photo voltaic projects in 2013-14 and 770 MW in 2014-15. Solar thermal projects worth 1080 MW will also be funded through VGF.
