National Solar Mission
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| National Solar Mission | |
|---|---|
 | |
| Name | National Solar Mission |
| Formation | 2010 |
| Type | Initiative |
| Headquarters | New Delhi |
| Location | India |
| Parent organisation | Ministry of New and Renewable Energy |
National Solar Mission
The National Solar Mission was launched as a major initiative to promote solar power deployment in India under the ambit of national energy policy. It aimed to create markets for photovoltaic and concentrated solar power technologies, attract investment from private sector firms and multilateral development banks, and integrate solar generation into the national grid. The Mission interacted with actors such as the Prime Minister of India, state governments like Gujarat and Rajasthan, public sector undertakings including NTPC and Solar Energy Corporation of India, and international partners such as the World Bank and Asian Development Bank.
Background and Objectives
The Mission originated from discussions at the National Action Plan on Climate Change and was announced by the Prime Minister of India in 2010 to meet commitments under the United Nations Framework Convention on Climate Change and the Copenhagen Accord. Objectives included rapid augmentation of solar electricity capacity across states such as Madhya Pradesh, Karnataka, and Andhra Pradesh, strengthening institutions like the Ministry of New and Renewable Energy and Bureau of Energy Efficiency, and fostering companies ranging from Tata Power to Adani that supply panels and balance-of-system equipment. It sought to reduce dependence on coal-fired plants managed by utilities such as NTPC Limited and align with targets set by successive Union Cabinet decisions.
Policy Framework and Implementation
Implementation relied on central policies including reverse auctions administered by agencies like the Solar Energy Corporation of India and state-level schemes by entities such as the Maharashtra State Electricity Distribution Company Limited and Kerala State Electricity Board. The Ministry of New and Renewable Energy issued implementation guidelines while regulators like the Central Electricity Regulatory Commission set tariffs and grid codes affecting projects by investors including ReNew Power and Greenko. International cooperation involved memoranda with institutions such as the German Development Bank (KfW) and United States Agency for International Development to finance technology transfer and capacity building for organisations like the Indian Renewable Energy Development Agency.
Targets and Capacity Achievements
Initial targets set a trajectory toward 20 GW by 2022, later revised upward to 100 GW following policy recalibration under leaders in the Prime Minister's Office and inputs from industry bodies like the Confederation of Indian Industry and Federation of Indian Chambers of Commerce & Industry. Achievements included utility-scale projects in regions such as Rajasthan's Bhadla Solar Park and rooftop installations across municipal entities such as the Brihanmumbai Municipal Corporation. Key developers like ACME Solar and Azure Power delivered capacity, while system integrators including Larsen & Toubro installed equipment sourced from manufacturers including Waaree Energies and Vikram Solar.
Financial Mechanisms and Incentives
Financing blended instruments from lenders such as the State Bank of India, Punjab National Bank, and World Bank-backed funds blended with incentives like Accelerated Depreciation and Generation-Based Incentives administered by agencies including the Ministry of Finance and the Ministry of New and Renewable Energy. Support schemes used mechanisms like Viability Gap Funding through entities such as the Rural Electrification Corporation and tax benefits administered by the Central Board of Direct Taxes. Private equity from firms like BlackRock and asset managers including Macquarie Group financed projects alongside green bonds and concessional loans from multilateral lenders such as the Asian Infrastructure Investment Bank.
Technology, Infrastructure, and Deployment
Deployment spanned technologies from crystalline silicon solar cell modules produced by companies like Tata Power Solar to concentrated solar power plants featuring heliostat fields developed by engineering firms such as Sterling and Wilson. Grid integration required upgrades to transmission systems managed by Power Grid Corporation of India and compliance with grid codes issued by the Central Electricity Authority. Distributed systems incorporated rooftop arrays on commercial buildings owned by conglomerates like Infosys and manufacturing hubs in special economic zones coordinated with state electricity utilities. R&D collaborations involved institutes such as the Indian Institute of Science, the Centre for Energy Studies at IIT Delhi, and the National Institute of Solar Energy.
Environmental and Socioeconomic Impacts
The Mission contributed to reductions in greenhouse gas emissions relative to baseline scenarios dominated by coal plants like those operated by NTPC Limited and supported employment growth in manufacturing clusters and service firms such as installation contractors and logistics companies. Land use dynamics involved solar parks in districts administered by state governments and local panchayats, intersecting with conservation interests managed by agencies like the Ministry of Environment, Forest and Climate Change and protected-area regulations impacting regions near Rann of Kutch and Aravalli Range. Social programs engaged communities through corporate social responsibility projects by corporations like Reliance Industries and workforce training via partnerships with technical institutes.
Criticisms, Challenges, and Revisions
Critics including think tanks like the Centre for Science and Environment and scholars from universities such as Jawaharlal Nehru University highlighted issues with land acquisition disputes involving state authorities and local communities, tariff volatility noted by market analysts at the Reserve Bank of India and the National Stock Exchange, and intermittency challenges addressed by utilities like Tamil Nadu Generation and Distribution Corporation through storage pilots. Revisions involved policy adjustments by the Ministry of New and Renewable Energy, procurement changes by the Central Electricity Regulatory Commission, and increased focus on battery storage projects promoted by firms like Tata Power and Reliance New Energy. Ongoing debates engage international frameworks such as the Paris Agreement and bilateral dialogues with partners like the United States and Germany.