Tamil Nadu Solar Energy Policy 2012

Government of Tamil Nadu

Tamil Nadu Solar Energy Policy

 Contents

1. Preamble

2. Vision of the Government of Tamil Nadu

3. Title and Enforcement

4. Objectives

5. Target for promotion of solar energy in the state

6. Shortages and constraints in fossil fuel

7. Renewable energy installations in Tamil Nadu

8. Experience of Solar Energy in India

8.1  Global Solar Scenario

9. Technology Cost

10. Advantages of Solar Power

11. Solar Technologies

11.1 Solar Photovoltaic

11.2 Concentrated Solar Power (CSP) based Solar Thermal Power Plant

11.2.1 Parabolic Trough Systems

11.2.2 Power Tower Systems

11.2.3 Parabolic Dish Systems

11.2.4 Thermal Storage Systems

12. Development of Solar Power in Tamil Nadu

13. Solar Purchase Obligation (SPO)

14. Mechanism to Generate 3000 MW by 2015

15. Promoting Solar Rooftop Systems

16. Promotion of Solar Water Heating Systems

17. Development of Solar Parks

18. Procurement Policy of Solar Power

19. Single Window Agency (TEDA)

20. Solar Manufacturing Facilities

21. Establishment of Solar Power Plants in Industrial Estates

22. Policy Initiatives

23. Plant and Machinery

24. Formation of Empowered Committee

25. Research & Development and Capacity Building 

Solar Energy policy 2012

Government of Tamil Nadu

Energy Department

2.     Vision of the Government of Tamil Nadu

The Honourable Chief Minister Selvi J Jayalalitha has a vision of developing Tamil Nadu as a world leader in Solar Energy by establishing 3000 MW  by 2015.

Tamil Nadu is committed to leading the country by generating 3000 MW of Solar Power by 2015 through a policy conducive to promoting solar energy in the state. This Government headed by the Hon’ble Chief Minister Selvi J Jayalalitha, intends to make Solar Energy a people’s movement just as it did earlier in the case of Rain Water Harvestig.

3.     Title and Enforcement

This policy will be known as the “Tamil Nadu Solar Energy Policy – 2012”. The Government of Tamil Nadu will undertake a review of this Policy as and when required in view of any technological breakthrough or any changes taking place in the policy at the National level.

4.     Objectives

·         To achieve energy security

·         To reduce carbon emissions

·         To project Tamil Nadu as a Solar Hub

·         To generate 3000 MW of Solar Energy by 2015

·         To achieve grid parity by 2015

·         To encourage indigenous solar manufacturing facilities in the State

·         To promote Research and Development in the solar energy sector and hybrid systems

·         To create skilled man power and employment in a new industry

·         Target for promotion of Solar Energy in the State

·         It is proposed to generate 3000 MW of Solar Energy by 2015

==We are jumping to Point 12, the rest of stuff in the middle is general knowledge stuff, not relevant to the policy==

12. Development of Solar Power in Tamil Nadu

Phase (2013-2015)                Target (MW)

2013                                          1000

2014                                          1000

2015                                          1000

Total (by 2015)                        3000

With average solar incidence of 5.5-6 kWh/m2/day, Tamil Nadu is amongst the states with the highest solar insolation in India. To retain its leadership position, Tamil Nadu will promote setting up solar power projects to the extent of 3000 MW over a period of 3 years, as furnished above.

Tamil Nadu will actively promote the solar energy sector by prescribing a certain percentage of electricity consumption through solar energy as mandatory. This will be progressively increased.

13. Solar Purchase Obligation (SPO)

The State will mandate 6% SPO (starting with 3% till December 2013 and 6% from January 2014) for the following category of consumers:

a.       HT Consumers (HT Tariff I to V)

This category will cover all HT consumers including:

·         Special Economic Zones (SEZs)

·         Industries guaranteed with 24/7 power supply

·         IT Parks, Telecom Towers

·         All Colleges & Residential Schools

·         Buildings with a built up area of 20,000 sq.m or more

b.      LT Commercial (LT Tariff V)

The following categories of consumers will be exempted from SPO:

·         Domestic consumers

·         Huts

·         Cottage and Tiny Industries

·         Powerlooms

·         LT Industrial consumers

·         Agricultural consumers

The SPO will be administered by TANGEDCO.

The above obligated consumers may fulfill their SPO by

·         Generating captive Solar Power in Tamil Nadu equivalent to or more than their SPO

·         Buying equivalent to or more than their SPO from other third party developers of Solar Power projects in Tamil Nadu

·         Buying RECs generated by Solar Power projects in Tamil Nadu equivalent to or more than their SPO

·         Purchasing power from TANGEDCO at Solar Tariff

·         Consumers desirous of availing SPO exemption by captive solar generation shall necessarily install separate meters to measure captive generation

This mechanism will require generation of 1000 MW by 2015

14. Mechanism to generate 3000 MW by 2015

The 3000 MW of Solar Power will be achieved through Utility Scale Projects, Rooftops, and under REC mechanism as follows 

	Utility Scale (MW)	Solar Roof Tops (MW)	REC (MW)	Total (MW)
	(a)	(b)	(c)	a + b +c
2013	750	100	150	1000
2014	550	125	325	1000
2015	125	125	675	1000
Total	1500	350	1150	3000

 In utility scale out of 1500 MW, 1000 MW will be funded through SPO and balance 500 MW through Generation Based Incentive (GBI) provided by the Government.

15. Promoting Solar Roof Top Systems

The Government of Tamil Nadu will promote Solar Rooftops through the following measures

i. Domestic Rooftop GBI

All domestic consumers will be encouraged to put up roof-top solar installations. A generation based incentive (GBI) of Rs 2 per unit for first two years, Re 1 per unit foe next two years, and Re 0.5 per unit for subsequent 2 years will be provided for all solar or solar-wind hybrid rooftops being installed before 31 March, 2014. A capacity addition of 50 MW is targeted under this scheme.

Consumers desirous of availing GBI shall necessarily install separate meters to measure rooftop generation.

ii. Promoting Rooftops in Government

1.     Solar Home Lighting is being installed in 3 lakh houses under the Chief Minister’s Sola Powered Green House Scheme (CMSPGHS) and will be completed by 2015-16.

2.     Energisation of Street Lights with solar energy. The State will be energizing 1 lakh street lights through solar energy by 2015-2016

3.     All new Government/Local Body buildings shall necessarily install solar rooftops.

4.     Existing Government/Local Body buildings will be provided with solar rooftops in a phased manner

5.     All Street Lights and Water Supply installations in local bodies will be energized through solar power in a phased manner

16. Promotion of Solar Water Heating Systems

i.                    Public Buildings

The Government of Tamil Nadu has issued amendments to the Building Rules through the following Government Orders, making the use of solar water heating systems mandatory for all designated new Houses/buildings/Marriage halls/hotels etc.

·         G.O. Ms. No. 112, Municipal Administration and Water Supply (MA1 Dept. dated 16.8. 2002

·         G.O. Ms. No. 277, Housing and Urban Development (UD 1) Dept. dated 14.11.2002

The State will promote Solar Water Heating systems by suitably amending the relevant Acts of Municipalities/Corporations

ii.                  Industries

Installation of Solar water heating systems will be made mandatory for industries having hot water boiler/steam boiler using fossil fuel

17. Development of Solar Parks

tility scale solar parks may comprise 250 MW in sizes of 1 to 5 MW, 600 MW in sizes of 5 to 10 MW and 650 MW of sizes above 10 MW. Solar Power projects will be developed through competitive/reverse bidding. Solar Parks with a capacity of about 50 MW will be targeted in 24 districts

18. Procurement Policy of Solar Power

18.1 Tariff based competitive bidding

As solar power is expensive compared to conventional/other renewable energy, a cost effective methodology needs to be evolved to promote solar power generation systems.

Tamil Nadu will select developers through Tariff based reverse/competitive bidding. The recent experiences of Germany and Spain also prove that competitive bidding is the best way for adoption by Governments. The Government of India through NTPC Vidyut Vyapar Nigam (NVVN) also follows the competitive bidding process.

Investments through Joint Ventures by State Public Sector Undertakings will also be encouraged at competitive tariffs

18.2 Renewable Energy Certificate and Carbon Credits

Renewable Energy Ceritificate (REC) mechanism promotes trading of solar power to meet solar purchase obligations (SPO). All the obligated entities committed to meeting SPO will necessarily will have to wither produce solar power (captive) or buy solar power from TANGEDCO or purchase solar RE certificates for an equivalent  quantity through the Power Exchange from the Promoters who have tradable RE Certificates.

Under this mechanism Solar power developers are eligible to possess one tradable RE Certificate per every 1000 units of energy (1 MWh) wheeled to the Distribution utility or to any other licensee.

All solar power producers are eligible to avail of the Clean Development Mechanism (CDM) benefits to enhance the viability of the projects.

19 Single Window Agency (TEDA)

Various statutory clearances that are essential for the development and commissioning of Solar Energy Projects will be handled by TEDA in co-ordination with the concerned departments/agencies. Guaranteed single window clearance will be provided through TEDA in 30 days so that the plants can be commissioned in less than 12 months

20. Solar Manufacturing Facilities

The Government of Tamil Nadu will promote integrated solar generation and manufacturing parks which will house the entire ecosystem for solar manufacturing including wafer, cell and module making, and Balance of System (BoS) component manufacturing. Local solar manufacturing industry (around 1000 MW/annum) will result in substantial direct and indirect job creation in the supporting sectors. Manufacturing of Solar Thermal components will also be encouraged.

The Government will encourage indigenous manufacturing of solar panels and other related equipment.

20.1 Incentives to Manufacturers

Appropriate tax incentives as per the Tamil Nadu Industrial Policy will be provided to attract investors from India and abroad

Tamil Nadu will actively support the growth of local manufacturing of solar components and ancillaries. A solar manufacturing ecosystem will be created that will include solar research centres, test facilities, resource assessment facilities, educational institutions, training centres, etc. 

20.2 Global industry leaders in solar value chain

Global majors will be invited to invest in the creation of manufacturing facilities in Tamil Nadu, with appropriate incentives as detailed above. Tamil Nadu will position itself as the regional hub for integrated solar manufacturing and technology development.

20.3 Exclusive Solar Manufacturing Parks

Lands will be identified for development of exclusive solar manufacturing parks. The State will promote setting up of solar manufacturing industries in these exclusive solar manufacturing parks to be established in the State.

20.4 Requirements for Poly Silicon Manufacturing

A Poly Silicon capacity of 10,000 MT would be required to yield silicon wafers sufficient to produce 1000 MW.

20.5 Preference in Industrial Parks

Preference will be given for establishing Solar manufacturing industries in the SEZs/Industrial estates / Parks viz., SIPCOT, SIDCO and similar Government organizations

21. Establishment of Solar Power Plants in Industrial Estates

In order to reduce the Transmission & Distribution losses, Aggregate Technical & Commercial (AT&C) losses and other infrastructure expenditure, Solar Power Plants will be set up in all industrial estates subject to availability of land at reasonable cost

22. Policy Initiatives

22.1 Net Metering

Net metering will be allowed (at multiple voltage levels) to promote rooftop penetration

Net metering facility will be extended to Solar power systems installed in commercial establishments and individual homes connected to the electrical grid to feed excess power back to the grid with “power credits” accruing to the Photovoltaic energy producer.

Projects to evacuate power at suitable voltages as suggested below

Solar PV System Size	Grid Connected
<10 kwp="kwp" o:p="o:p">

240 V

10 kWp to < 15 kWp

240 V / 415 V

15 kWp to < 50 kWp

415 V

50     Wp to < 100 kWp

415 V

>100 kWp

11 KV

22.2 Wheeling and Banking Charges

The wheeling and banking charges for wheeling of power generated from the Solar Power Projects, to the desired locations for captive use/third party sale within the State will be as per the orders of the Tamil Nadu Electricity Regulatory Commission

22.3 Exemption from Payment of Electricity Tax

Exemption from payment of electricity tax to the extent of 100% on electricity generated from Solar Power projects used for self-consumption/sale to utility will be allowed for 5 years

22.4 Tax Concessions

Tax concessions as per the Tamil Nadu Industrial Policy will be provided

22.5 Exemption from Demand Cut

Exemption from demand cut to the extent of 100% of the installed capacity assigned for captive use purpose will be allowed.

22.6 Facilitation by the Nodal Agency

TEDA shall endeavour to facilitate the development of the projects in the following areas:

·         All statutory clearances from Govt. Departments / Agencies

·         Evacuation approval from State Transmission Utility

·         Connectivity to the substation of State Transmission Utility

·         Common clearances from TNPCB etc., whenever feasible for providing plug and play facility to Solar Developers

23. Plant and Machinery

Only new plant and machinery are encouraged as per international standards. Such machineries/components will be approved either by the Ministry of New and Renewable Energy, Government of India, or by approved test centers in India/International test houses. Only plants/machineries which give Plant Load Factor (PLF) as per the latest standards will be permitted.

24. Formation of Empowered Committee

An Empowered Committee under the Chairmanship of the Honourable Minister of Electricity with the following members will accord project clearances for the establishment of solar power projects to be bid out in the State:

·         Chief Secretary

·         Finance Secretary

·         Energy Secretary

·         CMD/TANGEDCO

·         CMD TEDA – Member Secretary

·         One Technical Officer from TANGEDCO

25. Research and Development and Capacity Building

Research and Development on solar technologies / solar thermal storage systems, testing facilities towards the development of solar technologies will be encouraged. Technology Demonstrations on innovative projects in association with reputed institutions will also be encouraged.

To effectively implement this policy and to achieve the intended objectives, the Tamil Nadu Energy Development Agency (TEDA) will promote capacity building in the area of Solar Energy. 

Indian origin teen in US wins honour for solar device

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(Deepika Kurup shaking hands…)

MUMBAI: Fourteen-year-old Deepika Kurup of Indian origin won 'America's Young Scientist' title on Tuesday.

Kurup, who lives in Nashua, Boston, won the prestigious award along with a cash prize of $25,000 for designing an affordable water purifier that runs on solar power.

She intends to use a part of her award to deploy her prototype in countries facing shortage of potable water such as India. Kurup's parents hail from Trivandrum in Kerala.

Kurup, a Std IX student from Nashua high school, competed with nine other finalists in the 'Discovery Education 3M Young Scientist Challenge' and emerged as the winner after three rounds. The finalists were mentored by scientists at 3M for three months. "One of the challenges was to create prototypes using 3M products.

We were asked to come up with solutions to problems faced in the world. In this round, I designed a light-weight, non-inflammable spacecraft," said Kurup. Her invention uses two chemicals - titanium oxide and zinc oxide - which, when hit by sunlight, undergo a chemical change producing hydroxyl radicals that can destroy certain bacteria. Her innovation harnesses solar energy to disinfect contaminated water.

Deepika's mother, Meena Pradeep, said, "She read many research papers before designing the purifier. She has always good in academics and the captain of the Science and Math teams at school." She met US President Barrack Obama during her stint at the 3M Innovation centre.

Aditya Birla Group to invest Rs 6k crore in solar power business

MUMBAI: The Aditya Birla group plans to invest Rs 6,000 crore in solar power business over the next five years as demand for clean energy rises exponentially. The government has set a target of setting up 20 gigawatts of solar energy by 2022.

The $40-billion retail-to-telecom conglomerate has acquired a minority stake in a solar power venture promoted by Electrotherm in Gujarat's solar park and struck a long-term leasing agreement with Refex Energy in Rajasthan to operate a solar plant at Bithuja in Rajasthan. These units have a capacity to produce 1.55 million units of electricity per mw annually.

"We are getting ready for a large-scale rollout as solar energy holds the potential to replace the conventional sources of energy. It offers a great potential to scale up," said Dev Bhattacharya, head, strategy, Aditya Birla group.

"We have set a target of $1 billion over the next 5-6 years," he added. Essel Mining, the unlisted firm owned by Aditya Birla group chairman Kumar Mangalam Birla, is in the process of setting up an independent company as it seeks to develop a capacity of 100 mw over the next 18 months. The group has so far invested a little more than Rs 200 crore to develop 20 mw capacities in solar power.

Ravi Khanna, who joined from global renewable energy major Scandanavian Advanced Technology as CEO of the solar power business, has devised a three-pronged strategy to achieve the target in the first phase. The solar power venture will seek to secure businesses by trading in renewable energy certificates, set up plants which come under renewable power obligations and bid for projects offered under the national solar mission.

Odisha to form Green Power Corporation

CHENNAI, OCT 7: 

The government of Odisha has decided to form a separate company, Odisha Green Power Corporation Ltd (OGPCL), exclusively for the purpose of promoting large-scale solar power plants and other renewable energy projects.

The decision to form OGPCL was announced by the State’s Energy Minister, Mr Arun Kumar Sahu, at a solar conference organised in Bhubhaneswar by the local chapter of TiE along with Canyon Consultancy Pvt Ltd, a firm that focuses on renewable energy technologies on Saturday. (TiE, or The Indus Entrepreneurs, is a global non profit organization that aims to foster entrepreneurship.)

The new company is expected to be a subsidiary of Odisha Hydro Power Corporation (OHPC), which has substantial lands on which to put up solar projects. OHPC intends to put up a 22.5 MW solar project, spread over three of its hydro project locations, through its green power subsidiary. OHPC is also discussing with Water Resource department to have solar projects on the canals of Odisha for multiple benefits.

Speaking at the conference, Mr B K Misra, Member, Odisha Electricity Regulatory Commission, called upon the major industries in the State such as NALCO, Hindalco and Vedanta, to put up rooftop solar plants in their industrial units, which could help them meet their ‘renewable purchase obligation’.

TiE Bhubhaneswar has recommended to the State government to declare 2013 as the ‘Solar Year of Odisha’ and also to set up a 100 MW solar park during the year. It has further suggested that the solar plant capacity in the State could be raised to 1,000 MW by 2017.

"Looking at the current scenario of non-availability of coal for Captive Power Plants of various industries, we have developed the concept of putting up solar parks in different locations, each of more than 100MW,” said Mr Chandrashekhar Mishra, Managing Director, Canyon Consultancy.

Odisha has joined a growing list of States that have big solar ambitions. Gujarat is the leader, with about 700 MW of installed capacity (about 70 per cent of all solar power capacity in the country.) Rajasthan had announced a solar programme, but later shelved it. Uttar Pradesh, Chhattisgarh and Andhra Pradesh have announced their own policies/programmes. Odisha, which had earlier awarded a 25 MW project to a company called Alex Green (a subsidiary of Shree Ganesh Jewellery), recently announced the opening of bids for another 25 MW.

Solar power for Central Prison

Home Minister Thiruvanchoor Radhakrishnan will inaugurate a solar-energy project and a new restroom for visitors at the Central Jail, Poojappura, here on Wednesday.

A press release issued here on Tuesday said the solar energy scheme would make the department the first one in the country to depend entirely on this clean and renewable source of energy.

The 13th Finance Commission had allotted Rs.154 crore for the modernisation of prisons in the State. Of this, Rs.14.79 crore had been set aside for development programmes at the Central Jail, Poojappura.

The shift to solar energy would be undertaken in jails across the State and Rs.25.56 crore had been earmarked for this. The solar energy scheme at the Poojappura jail had been set up at a cost of Rs.7.9 crore.

Street lighting inside the compound, lighting and fans for blocks one to 12, steam cooking, water heating chappathi-making, and water pumping would be powered by solar energy. Around 229 KW of power would be generated, the release said.

This scheme would be a relief to the department which was charged Rs.1.27 crore by the Kerala State Electricity Board (KSEB) last year.

With the hike in rates, this figure was estimated to touch Rs.2 crore.

In addition, most number of jail escapes occurred during power cuts, and with the transition to solar energy, this problem could be eliminated by ensuring 24-hour power supply and a 12-hour back-up.

The Union Ministry of New and Renewable Energy would provide 30 per cent subsidy on the implementation cost and as much subsidy would be provided by the Agency for Non-Conventional Energy and Rural Technology (ANERT), the release said.

The Public Works Department (PWD) had constructed a new restroom on the prison premises for visitors of inmates.

More parking spaces would also be earmarked on the premises, especially for families which visit from afar.

Large industries to go green in a small way soon

Large industries in the State are being advised to install solar power systems for at least two per cent of their power consumption.

The Tamil Nadu Pollution Control Board (TNPCB) will soon issue an advisory to this effect.

Addressing a press conference here on Monday, environment minister B.V. Ramana said that common areas, kitchens and other areas could be lit through solar power. “This would take some pressure off the grid and help the companies to reduce their carbon footprints,” he said.

Similarly, the Board will also direct industries classified as highly-polluting or water-consuming to set up reverse osmosis plants for tertiary treatment of waste water being let out after being treated by effluent treatment plants or sewage treatment plants.

This would help reduce withdrawal of ground water. There are around 40,000 industries in the State. This would also be applicable to large apartments, hotels, IT companies and other high-rise structures. “We will make it mandatory in stages,” Mr. Ramana said.

The minister, speaking after a regional review meeting, said the Board had 34 district offices that looked after the processes of providing consent to establish and to operate to industries. The Board was presently looking at the number of industries being covered by each district office and if the number was too high, additional offices may be set up, he said. Of the 233 highly-polluting industries in the State, he said, so far 97 industries had been connected to the Care Air Centre of the Board, which continuously monitors online the emission stacks of these industries. “We have set a deadline of December 2012 for the remaining industries to get into the system,” he said.

Solar power for 25 government schools, 10 hospitals

NEW DELHI: The Delhi environment department has identified 25 government schools and 10 government hospitals that will get independent solar power systems.

The pilot project is looking at generating 500kW of power through rooftop solar photovoltaic cells under the Jawaharlal Nehru National Solar Mission. Environment secretary Sanjiv Kumar said the department had sent a proposal to the union ministry of new and renewable energy (MNRE) and was expecting financial support from it under the off-grid decentralized scheme. "If the project is approved, MNRE will finance 30% of the cost and the rest of the expenditure will be borne by the Delhi government," he said.

According to officials, Delhi does not have much scope in renewable energy and, therefore, rooftop solar projects are the only viable option.

"Due to severe shortage of open space, even solar panels are not such a convenient option for the city so we will have to use whatever space is available. In that scenario, even small projects like this one are a positive step. This project will also not fully meet the requirement of each establishment but will form a small part of it. Hence, it will be fully utilized by the identified establishments and there will not be anything extra to feed into the grid," said a source.

Officials said each of the government schools would get a 10kW panel while the hospitals will get a 25kW panel each. The school and hospital projects will cost Rs 6.75 crore each, bringing the total cost to Rs 13.14 crore. "If MNRE approves the project, it will assist us to the tune of Rs 3.8 crore. We should get the approval in another month or so and will be able to finalize the project soon after that. From that point, it will take us eight-odd months to set up the panels and start producing power," said an official.

Officials said the project would be executed by the energy department of the Delhi State Industrial and Infrastructure Development Corporation (DSIIDC) named DSIIDC Energy Ltd.

Some of the hospitals that have been shortlisted for the project include Chacha Nehru Bal Chikitsalaya, Deen Dayal Upadhay Hospital, Jag Pravesh Chandra Hospital, Guru Nanak Eye Centre and Dr Jagjivan Ram Hospital.