Govt approves NTPC's 15,000 MW solar power projects

The Indian government has approved the setting up of 15,000 MW grid-connected solar power projects through state-run NTPC under the National Solar Mission. The Union Cabinet gave its approval for implementation of the scheme for setting up of 15,000 MW of grid-connected solar photo voltaic power projects, an official statement said. They will be executed by NTPC Vidyut Vyapar Nigam (NVVN), an arm of NTPC, in three tranches. The rapidly falling cost of solar power has ignited interest in its potential in Asia's third-largest economy, which relies on coal for three-fifths of its energy needs while solar supplies less than 1 percent. India aims to become one of the world's largest renewable energy markets, targeting 100,000 MW of output by 2022 from just 3,000 MW currently. The completion of this 15,000 MW capacity projects under the National Solar Mission would accelerate the process of achieving grid tariff parity for solar power and also help reduce consumption of kerosene and diesel, which is presently in use to meet the unmet demand. Some of the solar PV plants are based on bundling of solar power with unallocated thermal power. The bundled power will be allotted to various states that come forward to provide land for setting up the solar power projects and to those which would purchase a major portion of the bundled solar power for consumption within the state and ensure connectivity to the solar power project. The capacity allotted to each such state will be set up through developers, to be selected through international competitive bidding by NTPC/NVVN. Both private and government companies would be free to bid for projects. Some of the projects will be set up on land already identified in Andhra Pradesh. Others will be allotted in other interested states that come forward. Some capacity will be earmarked out of the total procurement under this scheme with provisions of domestically manufactured solar cells as well as modules. The first Phase of the National Solar Mission (2010-2013) had a target of 1,100 MW for grid connected solar power generation capacity, against which 1,685 MW was set up in the country under various schemes. Further capacity addition of 9,000 MW comprising 3,000 MW under central schemes and 6,000 MW under state initiatives and other mechanisms were envisaged in the second phase of the Mission (April 2013-March 2017).