Implementation issues affected solar policy targets in Tamil Nadu: Experts

Policy & regulation should support easier implementation, to help the country achieve the target of 40 Gw of solar power

The issues related to implementation of policy has become a dampner for the plans of Tamil Nadu to establish more solar power generation facilities, say experts. In terms of implementation of roof-top solar, while it is easy to implement, it would require some attractive incentives and policies to be in place to attract more building owners though it would not be difficult to achieve a target of 1000 Mw of roof-top facility by 2019 in South India, they said.

In the Confederation of Indian Industry (CII) --- Southern Region is organising a conference on 'Roof Top Solar' with the theme - Driving 1,000 Mw by 2019 in Southern Region: Issues & Challenges, S Nagalsamy, retired member of Tamil Nadu Electricity Regulatory Commission (TNERC) said that various issues related to the implementation of the policy, including the fixing of tariff has affected the implementation of solar power facilities in the State.

While the cost of production in solar power facilities has come even below than that of the conventional power resources, the tariff has been kept on higher side. The incentives has also been offered to those who set up captive facility. However, various decisions including that of a Solar Purchase Obligation (SPO) has dragged the government to the court and this has affected the implementation. As a result, Tamil Nadu could only achieve 200 Mw out of its set target of 3,000 Mw in three years, he added.

Experts, who commented on the development of roof-top solar power faciltiies said that it would require proper action in terms of policy and implementation if the country need to achieve the ambitious target of 40 Gw of solar roof-top segment by 2019. The central and state governments have been working on initiatives such as exploring PPP framework for roof-top solar projects on government buildings, providing government support through incentives and capital subsidies, the policy initiatives could also focus on enhancing energy access throuh solar powered off-grid solutions, they said.

S Chandrasekhar, managing director of Bhoruka Power Corporation Ltd, who is also the chairman of CII-SR Energy Sub-Committee, said that there are challenges in terms of higher capital cost, aggregation of power from solar facilities, an expected grid congession and arranging finance for the projects, which the government and the industry has to address.

V Namasivayam, partner-consulting, Deloitte Touche Tohmatsu India LLP said that the tariff related issues, utility economics and adoption, and the policy and regulations would pose a challenge in achieving the target. He added that having a proper business model is very critical and the readiness of the utility to connect with the roof top solar facility, including the net metering and other details, is also important. The taxation regime and subsidy administration also has to be supportive to the stake holders, which would help them to improve rapidly in terms of expansion.