Its All About Power Sector

1.   A planned capacity of 66,000 MW additional coal based capacity proposed to be added in the XIII Plan. Coal for 20,000 MW capacity will be met from the additional production of 100 million tonnes from captive blocks, coal linkages already exist for 20,000 MW and coal for the balance 26,000 MW would need to be met from both the incremental production from CIL as well as imports.
2. Out of the envisaged incremental coal production of 180 million tonnes from CIL in the XIII Plan, 80% or 144 million tonnes is earmarked for power sector which would support about 32,000 MW additional capacity at the rate of 4.5 million tonnes per 1000 MW capacity. The existing linkages for the 20,000 MW capacity, include this additional availability and thus coal for about 14,000 MW capacities (46,000 MW - 32,000 MW) would need to be tied up.
3.   As per the recent allocation of fourteen coal blocks to Government Companies/ Corporation for power generation, four large blocks namely Balumuda, Banai, Chandrabila and Kuda Nali Luburi have been allocated to NTPC for meeting the requirement of a capacity of 9,780 MW and exploration is ongoing in three of these blocks i.e. Balumuda, Banai and Chandrabila and the geological reports are expected to be available by January, 2016, June, 2015 and April, 2014 respectively for these three blocks. The exploration in Kuda Nali Luburi Block is yet to be commenced. Thus, NTPC should aim at expediting the exploration in these blocks such that these blocks can be brought into production latest by middle of XIII Plan and this would help in realising some 5000 MW to 8000 MW capacity. 
4. Ministry of Coal is considering offering of four explored blocks for tariff based power plants through bidding and these four blocks can support an additional generation capacity of about 10,000 MW. With concerted efforts, these four blocks could be brought into production by the beginning of the XIII Plan as they are the explored blocks. In addition, there are couple of State utilities which have been allocated coal blocks in the recent past (Ten blocks) and there is scope for them to advance the production schedules such that some additional capacity is feasible to be added in the XIII Plan. This would also add up in meeting the gap of 26,000 MW as mentioned above.
5. Ten blocks allocated to state government companies are unexplored. Coal production from these blocks could support 20,000 MW capacity. Considering the process of exploration and obtaining forest & environment clearance and land acquisition, none of the above mines are expected to commence production in XIII Plan period. Efforts must be made to get necessary clearances for at least few of the blocks to have additional coal production to support 5000 MW capacity from these blocks. Ministry of Power and Ministry of Coal agreed to the suggestion

Development of these coal blocks, advantages of enhanced efficiency by switching over to super-critical technology in case of all the future generation units and to build the same into the envisaged coal requirement, mechanism to incentivize state governments for soliciting their cooperation in expediting coal block development are few important notes that all the concerned ministries should take into account to keep the conventional fuel coal into a more stable position

Central Electricity Authority has done two studies on Design and Performance of Chinese Equipments. The two studies made were, the first one included Design Features of Boilers and Auxiliaries being sourced from Chinese Manufacturers in year 2008. The second one was to Analyze the performance of Chinese equipment vis-a-vis Indian equipment in year 2013
Details of Study on Design Features of Boilers and Auxiliaries from Chinese sources.

• The Study Covered 5 stations with 300/330 MW and 2 stations with 600 MW . units (All Sub-critical)
  • 300/330 MW Units - Yamunanagar- HPGCL, Durgapur- DPL, Sagardighi- WBPDCL, Lanco-Amarkantak, Mundra-Adani Power.
  • 600 MW Units- Lanco Anapara C, Hissar HPGCL.
• Only 3 Commissioned Stations - Yamunanagar, Durgapur & Sagardighi.
• Main Findings in this study.
  • The technical particulars relating to major design features of boiler and their auxiliaries found to be in line with good engineering practices- any generic design issues could be best known after these units operate for an initial period of about one to two years.
  • Initial 1-2 years of operation of any plant are critical and will bring out inherent generic deficiencies, if any.
  • Operational feed back then available indicated milling Constraints in some units
  • Secondary fuel oil consumption has been found to be high in all the three operational projects.
  • Layout constraints Found in some of the plants which may result in difficulties in attending to the equipment during maintenance.
  • Data Gaps- No information from Chinese manufacturers on design features, operational performance, Standards followed during manufacturing & testing procedures. Lack of Sufficient data with plant owners.
  • Some of the utilities did not have complete information about important technical particulars -During interaction with the project authorities of the three operating stations, it has emerged that there has been substantial lack of participation by the utilities in the areas of technical specifications, detailed engineering, quality inspection at works, erection supervision, training of O&M personnel, etc.
  • Important equipment drawings/ technical data/ documents were not available with the projects. Design data was also not available with some IPPs sourcing the equipment from Chinese manufacturers.
• Recommendations - Need for due diligence
  • Due diligence required by the utilities during stage of specification finalization and detailed engineering, inspections/testing etc. to minimize O&M problems
  • Detailed comprehensive quality plans for ensuring quality at works and at site identifying customer hold points and test procedures and Standards needs to be defined and implemented for each major equipment/system. Some of the utilities were found lacking in this regard

Details of study to Analyse the performance of Chinese equipment vis-a-vis India Equipment.

• A study to Analyse the performance of Chinese equipment vis-a-vis Indian equipment was taken up by CEA in 2011 - through a Committee of CEA and NTPC.
  • The Objective of the study was to analyse the performance of Chinese equipment vis-avis Indian equipment (BHEL) including coal consumption patterns, heat rate and efficiency achieved.
  • Areas Covered
    • Operating Load Factor (OLF), Outages/Downtime
    • Design Parameters- Turbine cycle Heat rate & Boiler Efficiency Flow Margins
    • Operating Efficiency - Heat Rate and Specific Fuel Oil Consumption
    • Problems in Erection & Commissioning
• Units Considered in Study 2  
  • The Study covered Chinese Subcritical units of 300 and 600 MW and BHEL Sub-critical units of 250 and 500 MW units commissioned in 11th Plan (2007-08 to 2010-11)
  • Chinese capacity covered - 8200 MW
    • 22 Units across 11 stations
  • BHEL capacity Covered -12480 MW
    • 36 Units across 22 Stations

• Study-2: Details of Manufacturers
  • Manufacturers Wise Break up of Capacity

• Thus Most Chinese Supplies from Dongfang and Shanghai (SEC).
• Main Finding - Steam Parameters & Heat Rate
  • Steam parameters and Design Turbine cycle heat rate

The regenerative system configuration of Chinese machines is different from BHEL machines and Chinese 300 MW units have higher steam Pressure also. Thus on like to like comparison basis the BHEL machines indicate higher cylinder efficiency implying that their design/construction in terms of blading provided, sealing etc. renders higher efficiency
Expected THR of BHEL machine with similar configuration - 1890 (250 MW) and 1932/1920 (500 MW)

• Main Findings - Flow Margins
  

Both, the Chinese 300 & 600 MW and BHEL 250 & 500 MW units have adequate flow margins - VWO and BMCR margins. However the Chinese 330 MW machines have a composite TMCR to BMCR margin of 5.34 % which is very low and not compliant to the CEA Technical Standards and may not meet IEGC provisions.

• Main Findings -Outages and Load Factors
  

CEA Monitoring Data
PLF - 2011-12 (units in Study) - Chinese (D) -66.19, (I) 75.46, BHEL- 76.68
PLF - 2012-13 (units in Study) - Chinese (D) -52.27, (I) 81.57, BHEL- 78.13

• Main Findings - Operating Heat Rate
  

Chinese imported coal based units show much lower heat rate than indigenous coal based units - the difference is far higher than envisaged due to the boiler efficiency difference.
Variations in Operating Heat Rate of BHEL units are seen. Six stations show operating deviation (below 5%, four stations show deviation of around 10-11 %. Rest of the stations show very high deviations of 15-25 % and even higher.
Chinese indigenous coal based units generally show high operating deviations.

• Main Finding - Specific Secondary Fuel Oil Consumption (SFC)
  

SFC for Chinese imported coal based stations is considerably lower than indigenous coal based stations. Indigenous - 2.5 to 5 ml/kWh. Best Yearly values Indigenous- 0.90, Imported- 0.53.
Large number of BHEL supplied stations show very low SFC of below one ml/kWh. The lowest overall (2007-11) SFC is 0.27 ml/kWh followed by 0.47, 0.52, 0.54 and 0.81 ml/kWh.
The yearly SFC for individual BHEL stations are even lower. The best yearly SFC is 0.16 ml/kWh followed by several instances of yearly SFCs in the range of 0.20 to 0.50 ml/kWh.

• Station Visits
  • Visits to Stations

• BHEL stations - Generally satisfied
• Chinese Stations - Mixed Bag. Widely different feedback from two stations visited.

• Main Finding - Turbine Control Systems

The level of automation in Chinese turbines is much less than the BHEL turbines The Chinese turbines do not have many analysis/diagnostic functions and equipment safety features such as Turbine Stress Evaluator (TSE) and Auto Turbine Run-up Systems (ATRS) in their control system. Thus, lot of manual interventions are envisaged during start up as well as during normal operation of Chinese machine contrary to philosophy of fully automated system with minimum manual intervention in BHEL machines.
Thus the control systems of Chinese turbines are not in line with the prevailing modern turbine design/technology. Manual intervention during critical operations gives rise to subjectivity with the possibility of mal-operation and accidents.

Analysis for the period 2014-15
Analysis for the period 2015-16
For 2015-16, it is proposed to allocate the additional available domestic gas of 12 MMSCMD (1.125 + 3.98 + 6.895, as indicated by MoP&NG) to 4,842.5 MW predominantly dependent on KG D6 (2,478 MW fully dependent/ substantially dependent) and 1,334 MW newly commissioned gas based capacities that are without any gas allocation and all 7,815 MW of new power plants that will get commissioned. Further, by pooling it with around 12 MMSCMD of RLNG for these plants, the Pooled price of gas would be US$ 10.96/ MMBtu and the average PLF of around 31.79 percent can be achieved. However, the indicative Total cost of Generation would increase to INR 9.53/ unit, which would be extremely high. Considering a Total tariff of INR 7.50/ unit, the indicative Subsidy to be borne by Government would be INR 8265 Crore.

For the APM based plants, the present supplies under their existing agreements will continue. Along with the supplies of existing Long term RLNG quantities of 1.98 MMCSMD, additional 8 MMSCMD of RLNG may be pooled in this group. Thus, the Pooled price becomes US$ 10.24/ MMBtu and the PLF levels can be improved to 48.3 percent. However, the Total cost of generation would increase to INR 8.52/ unit, which is quite high. Considering a Total tariff of INR 7.5/ unit, the indicative Subsidy to be borne by Government would be INR 2658 Crore. Thus, the Total subsidy in the Year 2015-16 to be borne by Government would be INR 10924 Crore.

• GAIL is a public sector company and is well established in global market as a LNG Buyer and has already finalised LNG Contracts of about 7-8 MMTPA based on JCC / Brent and Henry Hub indexation.
• Being a Central PSU, Government guidelines can be implemented.
• Government nominee from MoPNG/ MoP can also be made a part of the Empowered Committee that approves procurement of LNG from international sources.

Indian Power Generation is majorly based on the conventional fuel sources i.e, coal and gas, a fact that cannot be denied. Out of the total installed capacity of 229251.73 MW as on October 2013, thermal capacity accounts for 156468.99 MW which is close to 68%. Of the total thermal installed capacity Gas based capacity contributes 20380.85 MW which is close to 13% of thermal capacity and 8% of total installed capacity and supplements coal based power generation for the growth of Indian economy. Keeping these facts aside, the plant load factors have never seen a consistency owing to shortages in fuel supply for both coal and gas.
Coal based plants in the recent times have seen a measurable improvement in the coal stock position. But the gas supply scenario for the gas based based power plants still remains a serious concern keeping most of the plants under strandedness or with meagre PLF's. The scenario in the country for these plants most likely seem to end up with complete shutdown or operate only during peak hours if the existing supply scenario continues to persist. Additional capacity that is already planned seems to give a bleak support to the capacity addition.
Moving on to the facts of gas supply and requiremtns for these plants, with a total Gas based capacity of 18,714 MW as in June 2013, 16,374 MW are on the gas grid which require gas of 62.07 MMSCMD to operate at 75 / 70 percent PLF. Gas based capacity of about 2,340 MW, which are off the gas Grid, are operating at 56.4 percent PLF with the gas being supplied from the isolated/ local gas fields. Further, additional 7815 MW of new Gas based capacity could be commissioned in near future if gas is available.
Gas based generation in India got the impetus when HVJ (Hajira-Vijaypur-Jagdishpur) gas pipeline was commissioned by GAIL in the 80's after discovery of gas in the west coast of India. This led to number of Gas based CCGTs commissioned along the HVJ pipeline in the Western and Northern part of India. Apart from the major HVJ trunk pipeline, certain isolated gas fields like in North-East, Kaveri basin, Ravva basin etc. also helped in development of some gas based capacities in those areas but these are not connected to the main gas grid.
After the KG-D6 discovery of RIL and commissioning of East West pipeline by RGTIL, KG D6 gas got infused into the system in early 2009. MoP&NG has granted gas linkage to the existing Gas based plants. Against this requirement, the actual gas supply to these power plants in June, 2013 was about 20.70 MMSCMD (Domestic gas 17.26 MMSCMD, 1.98 MMSCMD Long term RLNG & 1.46 MMSCMD Spot RLNG), which is just sufficient to operate these power plants at 23.7 percent PLF. The power plants with high dependence on KG D6 gas are stranded and have potential of becoming Non-Performing Assets (NPAs) due to shortage of gas. These plants have been severely affected because of their total dependence on KG D6 gas.
As the production of KG D6 gas has nose-dived from the peak of around 63 MMSCMD in late 2011 to below 14 MMSCMD in June 2013, the supply to power sector has become zero since March, 2013. The shortage of domestic gas has resulted in significant gas based capacity getting stranded or operating at sub-optimal level of average PLF of 27.8 percent (total gas based capacity) and 23.7 percent PLF (Gas based capacity on the gas grid) as of June, 2013. Despite having power shortages in the country, these gas projects have remained grossly unutilized / stranded causing immense loss to the economy.
Besides the existing power plants, based on the projections of MoP&NG / DGH regarding the future KG D6 gas availability of 80 MMSCMD, many developers (both public and private) set up new plants on the gas grid out of which 1,335 MW has already been commissioned and a capacity of 7,815 MW is almost ready for commissioning. The dwindling gas supply from KG D6 has been a cause of alarm for Power sector and has upset the gas based capacity addition programme. The allocation of KG D6 gas for new gas based power projects was expected when the plants are ready to commence production. However, these  projects have not been allocated any gas, which puts the projected investment of around INR 40,000 Crore at risk. After commissioning of these projects, the total gas based project capacity will go up to 24,189 MW. MoP has already dimensioned not to plan any gased based capacity addition until 2015-16.
Shortage and Availability in the future: Against the requirement of 92.34 MMSCMD (@ 70/ 75 pwercent PLF) for the pipeline connected existing and new Gas based power plants, the actual supply in June, 2013 was only 20.70 MMSCMD (17.26 MMSCMD Domestic gas and 3.44 MMSCMD RLNG) leaving a huge shortage of 71.64 MMSCMD. Recently MoP&NG has given projections for the additional production of domestic gas from various sources stands out to be 56.34 mmscmd at the end of 2017-18 and the availability of RLNG as 174.6 mmscmd. So it is anticipated as per the projections that the gas capacities are available to meet the additional demand of Power Sector consumers.
These facts speak a lot about the current scenario of gas based plants in the country and demands for a complete overhaul in the existing allocation mechanism of gas to Power Plants and the clearances in setting up a power plant which pose a huge loss to the private and public developers financially. This poses a threat of reduction in participation of the private developers in power sector and may rule out the competitive factor on which the Electricity Act 2003 has laid a major emphasis on. A mechanism to improve gas supplies and control the prices of higher import costs of RLNG for power sector is the need of the hour to keep these plants in motion and improve the operational performance of the sector as a whole.

Source: Cerebral Business Research Pvt. Ltd.

• The Design Turbine Cycle Heat Rate (THR) for Chinese 300 MW units is around 1910 kcal/kWh as compared to around 1945 kcal/kWh for BHEL 250 MW units. However, the Design Heat rate for Chinese units do not correlate well with the steam flows indicated and large variations in design steam flows are seen for similar indicated design THR.
• The Design THR of Chinese 600 MW machines is 1954 kcal/kWh for two stations and 1945 kcal/kWh for one station. However, the Design Heat rates for Chinese machines do not correlate well with the steam flows indicated. The Design THR of BHEL 500 MW machines is around 1944 kcal/kWh for normal reheat temperature and 1932-1936 kcal/kWh for higher Reheat temperature (565 deg C) machines. Thus the Turbine cycle heat rate of BHEL machines is better than the Chinese 600 MW machines - by about 10 kcal/kWh for BHEL normal reheat temperature machines and 22 kcal/kWh for higher reheat temperature machines.
• However, the regenerative system configuration of Chinese machines is different from BHEL machines and Chinese 300 MW units have higher steam Pressure also. Thus on like to like comparison basis the BHEL machines indicate higher cylinder efficiency implying that their design/construction in terms of blading provided, sealing etc. renders higher efficiency
• Amongst the Chinese 600 MW and BHEL 500 MW turbine generators, only the BHEL machines with higher Reheat temperature of 565 deg C comply with the minimum efficiency criteria (maximum THR of 1935 kcal/kWh) prescribed in the CEA Technical Standards for Construction of Electric Plants and Electric Lines Regulations - 2010.
• The anomalies/discrepancies in the design Turbine Cycle Heat Rate, Steam flows design margins of Chinese machines is indicative of lack of due diligence by the suppliers and utilities/generating companies on the above aspects - some of them being mandatory as laid down in the CEA Technical Standards for Construction of Electric Plants and Electric Lines Regulations - 2010.
• It is thus suggested that the generating companies while making Tariff Application to CERC/SERC may be asked to furnish details key design/efficiency parameters with an undertaking certifying compliance to "CEA Technical Standards for Construction of Electric Plants and Electric Lines Regulations 2010". It is suggested that a formal advice to the above effect may be issued to Central Electricity Regulatory Commission.
• The Design boiler efficiency for BHEL units and Chinese units designed for indigenous coal is of the same order. However overall variability of design boiler efficiency amongst stations is higher for Chinese units. Also, apart from the design boiler efficiency, the operating efficiency with coal quality variations within or outside the design coal quality range is important. However such feedback would be available only after sustained operation of stations with different quality coals.
• Both, the Chinese 300 & 600 MW and BHEL 250 & 500 MW units have adequate flow margins - VWO and BMCR margins. However the Chinese 330 MW machines have a composite TMCR to BMCR margin of 5.34 % which is very low and does not appear to be compliant to the CEA Technical Standards for Construction of Electric Plants and Electric Lines Regulations - 2010 and the provision of instantaneously load picking of the Indian Electricity Grid Code (IEGC).
• Chinese units based on indigenous coal show a much lower Operating Load Factor (OLF) than the Chinese units based on imported coal. The overall average OLF for Chinese stations based on imported coal works out to 80.4 % while for Chinese stations based on indigenous coal it works out to be 57.2 % against 71.6 % for BHEL units. Thus the Operating Load Factor of BHEL units with indigenous coal have been higher than Chinese units based on indigenous coal.
• Total outages for Chinese units based on indigenous/domestic coal are higher than the Chinese units based on imported coal and BHEL units. The overall average of total outages for Chinese units based on indigenous coal is 23.5% while it is 14.1 % for Chinese units with imported coal and 18.7 % for BHEL stations. Excluding stations with very high outages, the total outages are 17.4 %, 7.6 % and 12.6 % respectively for Chinese indigenous coal, Chinese imported coal and BHEL units.
• The Operating Heat Rate (OHR) of Chinese indigenous coal based units is considerably higher than BHEL units and Chinese units based on indigenous coal. The overall Operating Heat Rate is 2719 kcal/kWh for Chinese indigenous coal based units and 2520 kcal/kWh for BHEL indigenous coal based units''. Also the Chinese units indicate higher operating deviation from design heat rate Vis-a-vis BHEL units.
• The OHR for Chinese imported coal based units is 2275 kcal/kWh and the difference vis a vis Chinese indigenous coal is considerably larger than could be accounted for the higher boiler efficiency (due to better coal quality) thereby implying that units with imported coal have been performing better than indigenous coal based units.
• Large number of BHEL stations have shown very low Operating Heat Rate with deviation from Design Heat Rate (DHR) of 2-5 % while most Chinese units with indigenous coal have shown much higher Operating Heat Rate - with deviation from DHR of around 10-12 %. The operating deviation for Chinese units based on indigenous coal is much lower than Chinese indigenous coal based units.
• The BHEL units show remarkably better performance with respect to Secondary Fuel oil consumption as compared to Chinese units based on indigenous coal.
• The overall SFC for Chinese units with indigenous coal is 6.13 ml/kWh and for BHEL indigenous coal based units'' 3.06 ml/kWh. The overall SFC for Chinese units based on imported coal is 1.34 ml/kWh.The level of automation in Chinese turbines is much less than the BHEL turbines. The Chinese turbines do not have many safety and analysis/diagnostic functions such as Turbine Stress Evaluator (TSE) and Auto Turbine Run-up Systems (ATRS) in their control system. Thus, lot of manual interventions are envisaged during start up as well as during normal operation of Chinese machine contrary to philosophy of fully automated system with minimum manual intervention in BHEL machines. Manual intervention during critical operations gives rise to subjectivity with the possibility of mal-operation and accidents

The above facts speak that the control systems of Chinese turbines seem to be not in line with the prevailing modern turbine design/technology. In this view in July 2012, the government had slapped 21 per cent import duty on power equipment. The Cabinet, last year, had approved 5 per cent basic customs duty, 12 per cent counter-veiling duty and 4 per cent special additional duty on import of power gear. As domestic industry has enough capacity to provide after-sales services, the Chinese firms have already captured as much as 40% of the domestic market where an opportunity of annual sales of 17,000 Mw capacity exists at present. India has a current domestic equipment manufacturing capacity of 27,000 Mw. Power equipment worth Rs 130,000 crore was sold in India last financial year. Around 28% of this comprised generation equipment while the rest 72% of the sales occurred in the transmission and distribution sector.

At times it sounds necessary for India to look for import of Chinese Equipment in order to meet its projected capacity additions which is also very vital for the country be to be more energy secured. The Indian government's support to the domestic manufacturers as not been so encouraging with many manufacturers expressing a discomfort from the recent decisions taken by the govt. in respect to Chinese Equipment manufacturers. All these entail the Indian Govt. to provide a more competitive platform so as to balance both these markets.

Content Writer: Sweta Bhattkoti (Research Analyst @ Cerebral Business Research Pvt. Ltd)

1. Grid connected Projects: MNRE is proposing a minimum target of adding of at least 9,000 MW solar capacity to grid during Phase-ll. Under this target of 9,000 MW, at least 3,000 MW will be developed under Central scheme and at least 6,000 MW under State schemes. This capacity will be further split as per technology i.e. Solar PV and Solar Thermal. Under Central scheme solar PV will be at least 2,500 MW whereas solar thermal may be 500 MW. Similarly, under State schemes, 5,500 MW of solar PV and 500 MW of solar thermal capacity is proposed to be developed. However, the breakup in between Solar PV and Solar Thermal may change depending upon advancement in technologies, response and price trend.
   Unlike Phase-I, JNNSM Phase-ll aims for achieving significantly higher scales of targets. Hence, Ministry is contemplating all possible options for implementation of the Mission. Selection of capacity for Phase-ll, grid connected projects will be done via different schemes such as Bundling, Generation Based Incentive (GBI), Viability Gap Funding (VGF) and Low Cost Financing Scheme will be implemented in a manner similar to Phase-I.
   Each scheme shall have specific capacity allocation targets. Proposed capacity for GBI and Bundling scheme are 200 MW and 500 MW respectively whereas 2,300 MW is proposed to be implemented via VGF scheme. This allocation of target capacity may be altered depending upon the availability of resources.
2. Rooftop PV programmes: Phase-ll would focus on rooftop PV systems both at Grid and Off-Grid levels in the country. Power generated by these systems would be utilized by Industrial and captive loads and feeding excess power to the grid as long as grid is available. The off grid roof top PV systems would be deployed at places which are not connected to the grid or connected but not getting electricity from the grid. In total, the phase-ll of JNNSM shall target deployment of 1,000 MW of rooftop projects.
3. Off-grid Schemes: Phase II will also focus on Solar off grid generating systems, solar home lighting systems and various other forms of solar based heating/cooling/thermal application in domestic, commercial & industrial segments.
4. Energy Access: Phase II would focus on developing standalone solar off grid generating systems. Around 20,000 villages/Hamlets/ Basti / Padas shall be covered through Energy Access scheme.
5. Off-grid Lighting Systems: Phase-ll of the Mission would focus on off grid lighting systems such as use of solar lanterns, solar home lighting systems and solar street lighting systems. Phase-ll would target for deployment of around ten (10) Lakh Off-grid lighting systems.
6. Solar Cities: Solar Cities aims to motivate the Local Governments for adopting renewable energy technologies and energy efficiency measures. With this objective, Phase-ll of JNNSM would focus on development of 15 solar cities in addition to existing 60 Cities.
7. Solar Water Pumping: Solar PV water pumping systems are used for irrigation and drinking water in India. These pumps operate on solar energy and do not require any diesel or electricity. These pump sets also have very little operating costs. Hence, Phase-ll targets deployment of 25,000 solar pumps by the end of F.Y. 2017.
8. Telecom Towers: The telecom towers in India consume about 2 billion liters of diesel fuel per annum. In this backdrop, Phase-Il would focus on developing special schemes for promotion of solar telecom towers and would target around 25,000 solar integrated telecom towers.
9. Solar Water Heating System: Phase-ll would target around 8 million Sq.m. of collector area for solar water heating purpose by the end of 2017.
10. Solar Cookers and Steam Generating Systems: Dish Solar Cookers use solar energy for cooking. Similarly steam generating systems are used for cooking applications in larger units like Hostels, Hospitals, Hotels, Ashrams etc. JNNSM Phase-ll will target 50,000 solar cookers.
11. Industrial Process Heat Applications: Indian Industries consume over 15 million tones of the fuel oil for Industrial heat application below 250° C likewise over 35 million tones of fuel oil for application temperatures above 250° C. Use of Concentrated Solar Thermal (CST) Systems can save significant amount of fuel oil during the daytime. Hence Phase-ll is targeting at least 400 systems, 250 sq.m. each on an average (1,00,000 sq.m.) of CSTs for heating applications in industries.
12. Air Conditioning/Refrigeration: Solar air-conditioning also has vast scope at places where cooling is required mostly during daytime. This includes office complexes, educational institutions and commercial establishments like Malls etc. Hence Phase-il has set a target of at least 200 systems, 30 TR each on an average (60,000 Sq.m) for air conditioning / refrigeration systems.
13. Solar Hybrid Systems: Phase-ll will focus on development of hybrid technology. It is envisaged that 20 pilot hybrid projects will be set up under Phase-ll.

• The Ministry has formulated a Scheme for Setting up of 750 MW of Grid-connected Solar PV Power projects under Batch-I of Phase-ll (2013-17) of Jawaharlal Nehru National Solar Mission (JNNSM) with Viability Gap Funding support to the tune of  INR 1875 Crore (maximum) from National Clean Energy Fund (NCEF). Proposal for implementation of this scheme was first placed for consideration of the Inter Ministerial Group (IMG) in its meeting held on July 18, 2012 and has been approved in its meeting held on February 25, 2013.
  The scheme will be implemented through the Solar Energy Corporation of India (SECI), a Section 25 company set up by the Ministry. The projects, to be set up on Build-Own-Operate (BOO) basis, will be selected through bidding on VGF required by the developers in order to enable them sell power to SECI at a fixed levelised tariff of Rs.5.45 per kWh for 25 years. SECI will sell this power to those State Utilities/ Discoms who are willing to buy solar power at a fixed tariff of Rs.5.50 per unit for 25 years.
  Consequent to IMG approval, the Ministry has formulated draft guidelines for implementation of the scheme and placed the same on its website for comments/ suggestions from all concerned stakeholders. It has also held consultation meetings on the scheme with specific stakeholder groups (Developers/ Manufactures and Financial Institutions) and has received useful inputs for finalizing the guidelines.
• Draft Note for requisite approval of CCEA has been circulated to concerned Ministries/ Departments for their comments.

(Also Read Review of what has JNNSM Phase-I embarked upon in the past)
(Also Read JNNSM Phase-II to Mind these Facts Before Unveiling)

Source: Cerebral Business Research Pvt. Ltd.

• Poor achievement of the projects under CSP.
• Imbalance between capacity creation through thin films and crystalline PV technologies.
• Heavy dependence on imported equipment.
• Under utilization, coupled with poor growth of domestic manufacturing capacity (particularly solar cells).
• Requirement of generous support of fiscal incentives, viz., AD, VGF and feed in tariff.
• Inadequate development of R&D infrastructure.
• Concentration of growth of solar power in a handful States.
• Inadequate Evacuation infrastructure.

(Also Read what is instore for JNNSM-PhaseII)

(Also Read Can JNNSM-Phase I Achievements Fuel Phase-II?)

 Source: Cerebral Business Research Pvt. Ltd.

1. Deployment of 20,000 MW of grid connected solar power by 2022
2. 2,000 MW of off-grid solar applications including 20 million solar lights by 2022,
3. 20 million sq. m. solar thermal collector area,
4. To create favourable conditions for developing solar manufacturing capability in the country and
5. Support R&D and capacity building activities to achieve grid parity by 2022. The Mission is to be implemented in three phases.