A study of existing solar power policy framework in India for viability of the solar projects perspective

Nishant Rohankar, A.K. Jain, Om P. Nangia and Prasoom Dwivedi

Renewable and Sustainable Energy Reviews, 2016, vol. 56, issue C, 510-518

Abstract: A decade before conversion of solar energy into electricity was quite expensive compare with other renewable energy or conventional fossil fired generated power. For making solar energy as a main stream source of power generation Indian government has taken several initiatives in last 5–6 years. Presently, the deployment of the solar power project in India is governed by both central and state government under the various schemes. These schemes are mainly includes, Feed-in-Tariff (FiT), Renewable Purchase Obligation (RPO), long term Power Purchase Agreements (PPAs), Renewable Energy Certificates (REC), Accelerated Depreciation (AD) benefit and reverse bidding/auctions etc. As an effect of this competitive market environment, the tariff of solar power has come down from INR 17 or US $ 0.2711In year 2010, US $ 1=INR 45. (year 2010) to less than INR 6 or US $ 0.09222In year 2015, US $ 1=INR 65. (year 2015). This decremented solar tariff may achieve grid parity soon but also has raised the question of sustainability of the solar power project as well. Additionally, this multi-policy environment of both central and state government has created lots of confusion among the solar power project developers to select scheme and make their investment viable as per other power generation business. This paper summarizes various schemes under the current policy framework in terms of viability of the solar power projects in India. It also includes issues related with the sustainability of the solar power project taken under the competitive bidding process with remarkable lowered tariff than benchmarked tariff (ceiling price)in India (i.e. INR 7 or US $ 0.107).

Keywords: Solar policies; Solar project viability; Solar tariff (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (19)

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DOI: 10.1016/j.rser.2015.11.062

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