ANNOUNCEMENT 25 Jul 2010

In July 2010, the government of India announced a change in the required local operations to serve domestic customers.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 25 Jul 2010 | Removal date: 25 Jul 2011
Still in force

Local operations

On 25 July 2010, the Indian Ministry of New and Renewable Energy released the guidelines for establishing 150 MW of Solar PV and 500 MW of Solar Thermal power projects under the Jawaharlal Nehru National Solar Mission (JNNSM). These targets are part of Batch I of Phase I of the program and the guidelines thereto are valid for a year. In order to support the development of these projects a 'bundling' mechanism has been initiated in Phase I, whereby expensive solar power will be bundled with an equivalent MW of cheaper coal based power (by the Ministry of Power) to be sold to the distribution utilities. This mechanism allows paying higher prices to solar power providers.

As part of the quota of Solar PV installations within this Batch, the guidelines require that projects using crystalline silicon technology will have to source their cells and modules domestically. Further, with regards to thermal power projects 30% of plants/installations have to be sourced locally.

The JNNSM is a major Indian programme to develop local solar energy and domestic production capacity. The latter is sought to be achieved by setting domestic content requirements. The Mission aims to install 20,000 MW of solar projects divided in three phases in the period 2010-2022. As of 17 June 2015, the target capacity installation has been increased 100,000 MW.
 
 

AFFECTED SECTORS