Karnataka Solar Policy Draft

The Karnataka State has come out with a draft solar policy. I am listing down the main points of the draft:

1. The policy will come into effect from 1st June 2011 and remain in force for 5 years; till 2016.

2. The State is proposing to install 200MW of solar on-grid power plants by 2016. This being in addition to the allotment received under JNNSM.

The annual capacity addition is expected to be 40MW every year for 5 years.

3.  The minimum capacity is 5MW and maximum 10MW in both; solar PV and solar thermal

4. Captive power plants and third party sales are not a part of the 200MW capacity.

5.  Solar projects under REC with PPA with ESCOM (Electricity Supply Company) will be limited to 100MW.

6.  Maximum 50MW capacity to be bundled with thermal power from outside the State. This will be included in the 200MW capacity.

7. The purchase obligation for ESCOM is 0.25%. In case of shortfalls, RECs can be purchased.

8.  CDM benefits to be shared with the ESCOM.

9. JNNSM and MNRE schemes will continue.

There has been no mention of

1. The expected tariff

2. Incentives for the  module manufacturing business

3. Off-grid or hybrid models

4. Use of India made modules or modules from outside India.

Please feel free to drop in your suggestions/opinions to  mdkredlkar@gmail.com

It will be very helpful if readers can put forward their opinion on this draft. It will be more effective if I could add all suggestions/opinions and send it together.

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6 Responses to Karnataka Solar Policy Draft

  1. Arun Kumar says:

    Hello Bharat:

    I would love to see an articulation on distributed model for solar PV systems of 25KW to 250KW. Adoption of either FIT or Net Metering should be encouraged at least on a pilot basis to develop and test the system.

    In addition, Energy Efficiency and Demand management ideas should be adopted to avoid planned and unplanned power cuts.

    I would be delighted to be on the team to help chisel the policy so Karnataka become s another model state for Solar adoption bringing triple bottom line benefits. ( Social, Economic and Environmental)


  2. Hello Arun,

    Thank You for writing.

    I agree that FIT or net metering needs to be take into account and studied for the benefits that it brings. Incentives such as tax credits will be a good tool for individuals/families.

    Energy efficiency and demand management is currently being looked at by way of green buildings and smart grids in new township planning. I think Godrej’s Gujarat project is going to set a new trend in this field.

    I will add these points to the list (just you and me now) and send it across to KERCL. Will ofcourse “cc” you once I have your email id.

    Bharat Vasandani


  3. Arun Kumar says:

    Hello Bharat:

    There should be tremendous push for distributed generation from all quarters to make it a reality. Most of the policies are weighted towards to mega and large projects. I would suggest that we should demand 50% of the projects should be in the 10 kW to 100 kW range.

    The current draft policy is setting a minimum of 5 MWs, acquiring such large tracts of land and energy evacuation will be a huge problem.

    I hope our voices are heard and the policy makers will adopt some of the changes.



  4. I completely agreed to the fact that most of the policies look at mega projects. And surprisingly most of the policies are failing in implementation in terms of % success.

    Gujarat is expecting 50% success in project implementation in its Phase I and JNNSM has already been called “kind of a failure” because of reverse bidding.

    Smaller projects are more controlled and achieve greater % of success and there should be a balance towards on-grid and off-grid (including net metering) opportunities.


  5. Just to let everyone know that Arun and I were able to send across some recommendations/suggestions to KRECL.
    We hope that others also join us and we can together look at contributing towards a better policy.


  6. Pingback: Karnataka Solar Policy | Bharat Vasandani's Blog

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