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New solar policy approved: Farooq
11/23/2009 10:30:10 PM

New Delhi, Nov 23: Minister for New and Renewable Energy Farooq Abdullah today said the Government has approved a new policy on development of solar energy in the country by launching the Jawaharlal Nehru National Solar Mission (JNNSM).
In a statement in the Lok Sabha, he said the Solar Mission is very much in line with the vision of modern India of Late Pandit Jawahar Lal Nehru, which has made India today, a leading nuclear and space power.
This Mission is one of the eight key national missions which comprise India’s National Action Plan on Climate Change. It has a twin objective -- to contribute to India’s long term energy security as well as its ecological security.
''We are living in a world of rapidly depleting fossil fuel resources and access to conventional energy resources such as oil, gas and coal, is becoming increasingly constrained. The rapid development and deployment of renewable energy is imperative in this context. In view of high solar radiation over the country, solar energy provides a long term sustainable solution,'' Mr Farooq explained.
The Solar Mission recommends the implementation in three stages, leading up to an installed capacity of 20,000 MW by the end of the 13th Five Year Plan in 2022. It is envisaged that as a result of a rapid scale up as well as technological developments, the price of solar power will attain parity with grid power at the end of the Mission, enabling accelerated and large-scale expansion thereafter.
''During this time, we expect many new ideas to emerge and technologies to become more efficient. Quite obviously, in order to set the stage for achieving this ambitious target, what we do in the next three to four years will be critical,'' he observed.
'' Therefore, the Cabinet has approved setting up of 1,100 MW of grid solar power and 200 MW capacity of off-grid solar applications utilizing both solar thermal and photovoltaic technologies in the first phase of the Mission,'' he informed.
In addition, this Mission will also focus on R&D and HRD to develop and strengthen Indian skills and enhance indigenous content to make the Mission sustainable, Dr Farooq stated.
He further said the Mission will establish a single window investor-friendly mechanism, which reduces risk and at the same time, provides an attractive, predictable and sufficiently extended tariff for the purchase of solar power for the grid. The focal point, for the next three years, will be the NTPC Vidyut Vyapar Nigam (NVVN), which is the power trading arm of the NTPC.
The Government will designate it for the purchase of solar power generated by independent solar power producers, at rates fixed by the Central Regulatory Electricity Commission and for a period specified by the latter. It will provide equivalent MW of power from the unallocated quota of NTPC for bundling with solar power. The utilities will be able to account for purchase of solar power against their RPO obligations.
The Minister also said the Mission also includes a major initiative for promoting rooftop solar PV applications. Solar tariff announced by the regulators will be applicable for such installations. The power distribution companies will be involved in purchase of this power.
There are several off-grid solar applications which are already commercially viable or near viability, where a rapid scale up is possible. This requires regulatory and incentive measures as well as an awareness campaign. Solar thermal heating applications, such as water heaters, fall in this category. Solar lighting systems for rural and remote areas are already being distributed commercially in several parts of the country. This is expected to help our rural masses.
The Mission will have a very focused R&D programme which seeks to address the India-specific challenges in promoting solar energy.
'' We have to pool available resources, both human and financial, to strengthen the existing scientific infrastructure in the country.
We would involve various stakeholders in human resource development and other capacity building efforts, '' he explained.
The Mission will also accelerate the process of development of domestic industry in this sector.
Mr Abdullah sought cooperation of members of the House to make JNNSM a success, which will help establish India as one of the global leaders in solar energy.

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