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Cabinet revises solar power target to 1 lakh Mw by 2022

Expected investment to be Rs 6 lakh crore

BS Reporter  |  New Delhi 

The Cabinet on Wednesday approved the revised target of Jawaharlal Nehru National Solar Mission (JNNSM) to generate 100,000 Mw by 2022 — five times the previous target.

The target will comprise 40 Gw power generated through rooftop units and 60 Gw through large and medium scale grid connected solar power projects.

Business Standard had reported in October 2014 (Read Here) that the Prime Minister’s Office had asked the ministry of new and renewable energy to prepare a plan for scaling up solar power to 1 lakh Mw.

The total investment in setting up projects with capacity of 100 Gw will be around Rs 6 lakh crore.

In the first phase, the Centre will provide Rs 15,050 crore as capital subsidy to realise solar power capacity addition. This subsidy will be provided for rooftop solar projects in various cities and towns, for viability gap funding (VGF)-based projects to be developed through the Solar Energy Corporation of India and for decentralised generation through small solar projects.

MNRE intends to achieve the target of 100,000 Mw with targets under the three schemes of 19,200 Mw.

The Cabinet also approved setting up of over 2,000 Mw of grid connected solar PV Power Projects on ‘build, own and operate’ basis by solar power developers with VGF under Batch-III of Phase-II of the JNNSM.

Apart from this, solar power projects with investment of about Rs 90,000 crore would be developed using bundling mechanism with thermal power. Further investment will come from large Public Sector Undertakings and Independent Power Producers (IPPs). States have also come out with state-specific solar policies to promote solar capacity addition.

The Centre may also approach bilateral and international donors as also the Green Climate Fund for achieving the target.

JNNSM was launched in 2009 with a target for grid connected solar projects of 20,000 Mw by 2022.

First Published: Thu, June 18 2015. 00:35 IST