The objective of the Jawaharlal Nehru National Solar Mission (JNNSM) under
the brand 'Solar India' is to establish India as a global leader in solar energy,
by creating the policy conditions for its diffusion across the country as
quickly as possible. The Mission has set a target of 20,000 MW and stipulates
implementation and achievement of the target in 3 phases (first phase up to 2012-13,
second phase from 2013 to 2017 and the third phase from 2017 to 2022) for various components,
including grid connected solar power. The successful implementation of the JNNSM requires
the identification of resources to overcome the financial, investment, technology,
institutional and other related barriers which confront solar power development in India.
The penetration of solar power, therefore, requires substantial support.
The policy framework of the Mission will facilitate the process of achieving grid parity by 2022.
In order to facilitate grid connected solar power generation in the first phase,
a mechanism of "bundling" relatively expensive solar power with power from the
unallocated quota of the Government of India (Ministry of Power) generated at
NTPC coal based stations, which is relatively cheaper, has been proposed by
the Mission. This "bundled power" would be sold to the Distribution Utilities
at the Central Electricity Regulatory Commission (CERC) determined prices.
The Mission also provides for NTPC's Vidyut Vyapar Nigam Ltd or NVVN to be
the designated Nodal Agency for procuring the solar power by entering into a
Power Purchase Agreement(PPA) with Solar Power Generation Project Developers
who will be setting up Solar Projects during the next three years, i.e.,
before March 2013 and are connected to the grid at a voltage level of 33 kV
and above. For each MW of installed capacity of solar power for which a PPA
is signed by NVVN, the Ministry of Power (MOP) shall allocate to NVVN an
equivalent amount of MW capacity from the unallocated quota of NTPC coal based
stations and NWN will supply this "bundled" power to the Distribution Utilities.