To make all this happen with the technology which is currently among the most expensive technology for electricity production is the mission’s real challenge.�
Successful implementation of the first phase is, therefore, very crucial to instill a sense of confidence in the international community about India’s ability to deliver.
Against this background, the current state of affairs is creating concerns in the minds of serious players. The guidelines proposed by the ministry of new and renewable energy have received mixed reactions. While drafting guidelines, the ministry seems to have considered following important aspects and issues which have influenced the guiding principles.

1. Ensure successful implementation by avoiding dubious players
2. Keep tariffs attractive but not too liberal
3. Protect local industry, especially photovoltaic, and avoid dumping of modules
4. Ensure promoters have the financial muscle required for investing in the projects
5. Ensure that the land is not grabbed in the guise of putting up projects
6. Ensure that all bidders get a fair chance

While the logic behind the above principles is clear, the important point that needs to be addressed is that serious players and technology providers will be looking for sustained long-term market prospects, assured commitment from the government beyond the first phase and efforts to have funds arranged for subsequent phases. The planning for the second phase, therefore, becomes crucial and should start immediately.

Secondly, the government also has to make clear the distinction between photo-voltaic technologies which are matured and well-proven and concentrated solar panel technologies which are more efficient but have been around only in limited markets. These technologies will need nurturing before they become fully commercialized. Perhaps, public private partnership projects would be a more suitable option to implement these technologies.

Another major contention revolves around the issue of domestic content. This clause will not allow state of the art technologies to come to India, at least in the first phase. It is recommended that for matured technologies like solar PV import of modules/ cells, inverters with higher efficiencies may be allowed. Considering the possibility that most of the plants in first phase will be solar PV plants, this clause is likely to increase the PV costs in the local market, thus defeating the very purpose of the mission. The ministry needs to look into this aspect. One way would be to encourage demonstration projects for new and efficient technologies.

It is recommended that the tariff bidding should be applied to solar PV technologies only. For other technologies, separate qualifying criteria could be developed. For other technologies the economy of scale is important and hence suitably large systems should be allowed.

The approach taken by the government is laudable. However, the government should look at modifying guidelines to address above concerns.

Also Read

• Renewcon: India still in learning phase in solar
• 24 hour solar power should be reality by 2020
• Government to award 100 Mw of solar projects by August
• The solar mission is technology neutral: Dr Farooq Abdullah, minister for renewable energy
• No clarity on solar policy beyond 2013: Pramod Deo

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