1500 MW for Indian solar subsidy

India is going to offer the largest amount of solar capacity for subsidy allocation till date, in the second batch of its Phase 2 of the JNNSM. The country will offer 1500 MW of solar capacity to bidders soon even, as it has completed the formalities of 750 MW of solar PV capacity in January. The Indian federal solar mission is going into second gear, as the country turbo charges its solar energy plan fighting large energy and fuel deficits. India saw the worlds’ largest blackout as its power grid collapsed under inadequate generation and transmission. Millions of its citizens still live in the dark without any access to grid electricity, even as others suffer from daily 6-8 hour power blackouts. The whole power infrastructure is regarded as a mess due to corruption, bad regulation, inefficiency and a chaotic policy framework governed by a plethora of regulators and state actors.

There has recently been hope that under a new integrated ministry consisting of power, renewable energy and coal, there would be a coordinated response on how to tackle the country’s problem. Solar power has been given the pride of place considering that this energy has no fuel issues and the falling costs. The 1500 MW of power would be funded by low cost thermal power, which will be bundled with solar energy through NVVN which is the power trading arm of India’s largest state owned power generation company NTPC. India’s solar power costs are currently quite low at 10-13c/KwH these days, as developers have been aggressively bidding for JNNSM and other state auctions. With payment security assured, there should be good competition for building the 1500 MW capacity. NVVN is also making sure that this solar energy gets good evacuation facilities, as power grid availability is a major concern for investors and developers alike. The bidding is expected to start in the next couple of months with a gestation time of a year. Other state governments such as MP, Karnataka, TN, AP and others are also strongly pushing to install solar energy through ambitious state plans.