Rajasthan Solar Policy 2011

The Rajasthan State came out with its new policy in April 2011. I am trying to put down the main points w.r.t different schemes under the policy.

The objective of Rajasthan Solar Policy 2011 is to establish Rajasthan as a National leader in solar energy to achieve the following objectives:

a. Developing a global hub of solar power of 10000-12000 MW capacity in next  10-12 years to meet energy requirements of Rajasthan and India.

b. Productive use of abundant wastelands, thereby utilizing the non-industrialized  desert area for creation of an industrial hub.

c. Creating favorable conditions to solar manufacturing capabilities by providing  fiscal incentives.

d. To achieve the grid parity in next 7-8 years, the State will encourage the Solar  Power Developers to establish manufacturing plant of their technology in  Rajasthan.

Grid Connected Solar Plants

1.  The ongoing MNRE scheme 

2.  Migration Scheme 

3.  Solar projects under NVVN 

4.  Development of Solar PV and Solar Thermal (in equal quantum) through competitive bidding process. 

The successful bidder will set up Solar Power Plant in  Rajasthan and supply equivalent amount of MW capacity of conventional power from  Conventional Power Plants located anywhere in India. The entire power from the Solar  Power Plant and equivalent amount of MW capacity of Conventional Power Plant  shall be purchased by Discoms of Rajasthan on tariff determined by process of  competitive bidding and approved by RERC.

5.  Setting up of Solar Power Plants in Rajasthan for direct sale to Discoms of  Rajasthan. 

The State will promote setting up of solar power projects for direct sale to  Discoms of Rajasthan. The total capacity under this category will be distributed  equally between SPV and CSP based power plants.

The total maximum capacity  under this category for

phase-1 (up to 2013) : 200MW

phase-2 (2013-2017) : 400MW (additional)

Selection of these Solar Power Projects shall be through tariff based competitive  bidding process.

The minimum allocation is 5MW and maximum 10MW for Solar PV.

The minimum allocation is 5MW and maximum 50MW for Solar Thermal.

(With Gujarat State expecting only 25%-35% of its allocated projects to be completed on time; we will see a similar trend in Rajasthan. But since many will have already gone through the learning phase the success % could be higher than 40% but will be less than 75%). 

(NVVN’s reverse bidding has failed to excite the global solar community. Hopefully the industry and the government will learn the lessons and we may see a much better tariff rate in Rajasthan bidding process).

6.  Utility Grid Power Projects for Captive use /Direct sale to 3 rd  Party/States other  than Rajasthan through Open Access for promotion of investment in Rajasthan:

Solar Power Producers are allowed to set up Solar Power Plants  of unlimited capacity for captive use or sale of power to 3 rd  party/States other than  Rajasthan.

(Will these solar developers be able to sell RECs in the open market? If not; how many 3rd party sales are we expecting in solar with a per unit price of above Rs.13)

7.  Setting up of Rooftop PV and other Small Solar Power Plants connected to  LT/11kV Grid:

(i) The Rajasthan State will promote deployment of Roof Top and Other Small Solar  Power Plants as per guidelines of MNRE.

(ii)  The State will promote setting up of small solar power plants connected at 11 kV  grid of 1 MW capacity each for direct sale to State Discoms of Rajasthan. The  total capacity under this category will be 50 MW. The selection of the projects  will be through tariff based competitive bidding process.

8.  Utility Grid Power Projects for sale through RE (Solar) Certificate Mechanism:

The State will promote Solar Power Producers to set up Solar Power Plants  of unlimited capacity for sale through RE (Solar) Certificate mechanism. The Power generated from these power projects shall be purchased by  Discoms of Rajasthan at Pooled Cost of Power Purchase as determined by the 8  appropriate Commission from time to time. The Solar Power Producers will sell RE  (Solar) Certificates as per the regulations/orders of appropriate Commission.

9. Setting up of Solar Power Plant for promotion of manufacturing facilities in the  State. 

The State will promote Solar Power Producers to set up Solar Power Plants along with Solar PV manufacturing plants in Rajasthan. The target under this category  will be 200 MW up to 2013.

Those Solar Power Producers who establish SPV manufacturing plants (thin film  technology modules or crystalline technology modules involving processing from  wafers stage) of minimum 25 MW per annum capacity in Rajasthan will be eligible for  sanction of SPV based Solar Power Plant. The capacity allocation for manufacturing  plant will be as follows:-

For more than 25 MW but less than 50 MW; capacity power plant allocation is 10 MW

50 MW and above 20 MW;  capacity power plant allocation is 20MW

(In a new industry like solar; I have seen companies starting with a manufacturing capacity of 10MW -12MW but not 25MW. The equipment costs does go up higher while moving from 10MW to 25MW. But what hurts the most is the working capital, the labor and the ability to sell in the market). 

Off-Grid and Decentralized Solar Plants

1.  The State will also promote decentralized and off-grid solar applications,  including hybrid system as per guidelines issued by MNRE to meet various electrical  and thermal energy requirements.

Some of the major  applications of solar thermal  technologies include solar water heaters, solar cooling systems, air drying, steam  cooking, power generation, sterling engine.

The off grid photovoltaic applications  include solar PV home lighting, police stations, communication and lighting, Small  powered looms, solar inverter, solar PV pumps, powering computers in schools,  Small milk chilling plants, refrigeration for medicine in primary health centers and  Hybrid systems for Powering telecom towers etc. The off-grid solar applications shall  be promoted for replacement of diesel based generators sets. Guidelines and  incentives issued by MNRE from time to time shall be followed in State for  promotion of decentralized and off-grid solar applications.

Solar Parks

The Rajasthan State will develop Solar Parks  of more than 1000 MW capacity in  identified areas of Jodhpur, Jaisalmer, Bikaner and Barmer districts in various stages.

Land

The allotment of land to the Solar Power Projects will be done as per the provisions of Rajasthan Land Revenue. The Government land required for Solar Power Plant shall be allotted to Solar Power Producer at concessional rate of 10% of the DLC rate (agriculture land).

For setting up Solar Power Plant on different technology, maximum allotable land to the Solar Power Producer shall be as follows:

a. SPV on thin film : 3.5 hectares per MW

b. SPV on crystalline technology : 2.5 hectares per MW

c. Solar Thermal (CSP)- Parabolic Trough/Tower Technology : 2.5 hectares per MW

d. Solar Thermal (CSP)- Parabolic Trough with Storage Facility /Tower/Other Technology  :

For PLF upto 23%; 2.5 hectares per MW. Then every 1% increase in PLF brings in 0.1 hectare/MW  additional land.

Time Schedule

SPV

a. Upto 5MW : 15 months from SLEC approval

b. 5-10MW : 24 months from SLEC approval

c. 10-25 MW: 30 months from SLEC approval

“SLEC” means State Level Empowered Committee constituted  under the  provisions of this Policy.

Some of the points not covered above include more details on land, technical details on grid connectivity, the list of approvals needed and the process of application. 

For more for details on the policy, please feel free to visit the website of Rajasthan Renewable Energy Cooperation Limited: http://www.rrecl.com. 

We can assist with the following services:

1. Land assistance in Rajasthan 

2. Approvals facilitation

3. Equity & Debt funding for projects  through Joint Ventures

4. PPA with power traders 

5. EPC services 

6. Setting up of Solar Module line – technical assistance on selection of equipment, debt funding, a green factory, tie-up with an EPC player, opening export doors in USA and Europe, opening doors in India. 

A company with land and approvals for 5MW (without PPA) is available for sale.

Bharat Vasandani

bharatvasandani@gmail.com

0091-9820789895 (Mumbai, India).

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3 Responses to Rajasthan Solar Policy 2011

  1. Maninder Salh says:

    Hello Bharat Vasandani,

    Thank you for the article, Could you please let me know what about the chances on International Manufacturers in Rajasthan Solar Policy? Whether it is similar to JNNSM (Made in India modules only) or there is room for foreign players?

    Mani

    Like

  2. Hello Maninder,

    The Rajasthan policy currently does not talk about “only” Indian made modules. So I assume international made modules can be used.
    The Indian module manufacturing module has not reached a scale where it can compete with international modules on price. So thankfully the lesson has been learned from the failure of JNNSM.

    But the policy is looking to pass on incentives to module manufacturers that can set up base in Rajasthan.

    Could we know more about you or your organization?

    Like

  3. Very informative article. Keep posting such articles !!

    We have our solar module manufacturing uni located in Rajasthan only. For any requirment of Solar Module Please feel free to contact us.

    Like

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