World Bank2014-03-282014-03-282013https://hdl.handle.net/10986/17480Renewable energy, especially solar power, has been garnering a lot of interest from governments, international development organizations, civil society, and the private sector for the last few years. There has been a huge surge in the popularity of this important energy source from various stakeholders in India as well. On the other hand, solar power presents a formidable option for addressing pertinent issues being faced in international geopolitical and national macroeconomic arenas for the Government of India (GoI). Though the World Bank, India considers all market segments of solar power to be important; this report specifically looks at the utility-scale grid-connected segment of solar power in India. As one of the eight missions under India's National Action Plan for Climate Change (NAPCC), the Jawaharlal Nehru National Solar Mission (JNNSM) was launched in January 2010 with the aim of accelerating India's march toward grid parity in solar power. JNNSM envisages the achievement of grid parity through long-term and predictable policy, large-scale deployment, aggressive research and development (R and D), and domestic production of critical materials, components, and products along the value chain. Phase one (2010-13) of JNNSM, still under implementation, experienced enthusiastic participation from Indian and international investors in the grid-connected segment with substantial discounts to the benchmark tariffs determined by the Central Electricity Regulatory Commission (CERC) for 500 megawatt (MW) each of solar thermal and solar photovoltaic (PV) projects. Another unique feature of JNNSM phase one has been the adoption of a reverse auction method for awarding projects to qualified bidders. The GoI took several proactive steps in phase one of the mission, such as offering a bundling of solar power with unallocated coal-based power through the National Thermal Power Corporation (NTPC) Vidyut Vyapar Nigam (NVVN), implementing a renewable purchase obligation (RPO) for solar power, instituting a payment security scheme (PSS), and undertaking certain measures for promoting local manufacturing, which all combined to ensure the success of phase one.en-USCC BY 3.0 IGOACCESS TO ENERGYACCESS TO TECHNOLOGYACCOUNTINGACTION PLANACTIVE DEBTACTIVE DEBT MARKETADBADVISORY SERVICESAPPROACHAUCTIONAUTOMOBILEAVAILABILITYAVAILABILITY OF DATABALANCEBANK GUARANTEEBENEFICIARIESBIDCAPABILITIESCAPABILITYCAPACITY UTILIZATIONCASH FLOWSCERTIFICATESCHAMBERS OF COMMERCECLEAN ENERGYCLEANER ENERGYCLIMATE CHANGECOALCOLLATERALSCOMBUSTIONCOMMERCIAL BANKSCOMPETITIVE BIDDINGCOMPETITIVENESSCONNECTIVITYCONVENTIONAL FUELSCREATION OF POLICYCREDIT AGENCIESCREDITWORTHINESSCURRENCYCURRENCY CONVERSIONCURRENT ACCOUNTCURRENT ACCOUNT DEFICITDEBTDEBT DISBURSEMENTSDEBT FINANCINGDEBT FUNDDEBT RESTRUCTURINGDEBT SERVICINGDEBT-EQUITYDEFAULTSDEVELOPMENT BANKDEVELOPMENT BANKSDEVELOPMENT FINANCEDEVELOPMENT FINANCE COMPANYDIESELDOMAINDOMESTIC BANKSECONOMIC GROWTHEIBELECTRICITYELECTRICITY DISTRIBUTIONELECTRICITY SUPPLYEMISSIONSENABLING ENVIRONMENTENERGY GENERATIONENERGY PRICESENERGY PRODUCTIONENERGY REQUIREMENTENERGY SHORTAGESENERGY SOURCEENERGY SOURCESENFORCEABILITYENVIRONMENTAL IMPACTSEQUIPMENTEQUITY RATIOEVALUATION CRITERIONEXTERNALITIESFINANCE COMPANIESFINANCIAL INNOVATIONSFINANCIAL INSTITUTIONSFINANCIAL SERVICESFINANCIAL STABILITYFINANCIAL STRENGTHFINANCING REQUIREMENTFOREIGN CURRENCYFOREIGN DEBTFOREIGN FINANCINGFOSSILFOSSIL FUELFUELGENERATIONGENERATION CAPACITYGLOBAL ENERGY DEMANDGLOBAL KNOWLEDGEGLOBAL MARKETGOVERNMENT POLICIESGRID APPLICATIONSGRID INTEGRATIONGRID POWERGROSS DOMESTIC PRODUCTGUARANTEE FUNDHEAT EXCHANGERINFRASTRUCTURE DEVELOPMENTINFRASTRUCTURE FINANCEINFRASTRUCTURE FINANCINGINNOVATIONSINSTALLATIONINSTALLATIONSINSTITUTIONINSTITUTIONAL CAPACITYINSTITUTIONAL FRAMEWORKINTERNATIONAL DEVELOPMENTINTERNATIONAL FINANCEINTERNATIONAL FINANCIAL INSTITUTIONSINTERNATIONAL INVESTORSINTERNATIONAL MARKETINVENTORYINVESTMENT BANKINVESTMENT CORPORATIONJOB CREATIONKEY CHALLENGESKILOWATT HOURLACK OF ACCESSLAND BANKLAND USELENDERSLETTER OF CREDITLINES OF CREDITLONG-TERM INVESTMENTSMANPOWER REQUIREMENTMANUFACTURINGMANUFACTURING INDUSTRYMARKET SEGMENTSMARKET SHAREMATERIALMATURITYMIGRATIONNATURAL RESOURCESNEW TECHNOLOGIESNO OBJECTION CERTIFICATEOILOLIGOPOLIESOVERSEAS DEBTPENALTIESPIPELINEPOLICY DESIGNPOLICY FRAMEWORKPOLLUTIONPORTFOLIOPOWERPOWER CAPACITYPOWER CORPORATIONPOWER COSTSPOWER GENERATIONPOWER GENERATION CAPACITYPOWER GRIDPOWER PROJECTPOWER PURCHASE AGREEMENTSPOWER SECTORPOWER STATIONSPRIVATE INVESTORSPRIVATE PARTIESPRIVATE PARTNERSHIPPRIVATE PARTNERSHIPSPRIVATE SECTORPRIVATE SECTOR FINANCINGPROCESS HEATPROCUREMENTPUBLIC DEBTPUBLIC ENTERPRISESPUBLIC FINANCEPUBLIC INVESTMENTPUBLIC POLICYR&DRAW MATERIALSREGULATORY FRAMEWORKRENEWABLE ENERGYRENEWABLE ENERGY DEVELOPMENTRENEWABLE ENERGY PROJECTSRENEWABLE PORTFOLIO STANDARDRENEWABLE POWERRESERVERESERVE BANKRESERVE BANK OF INDIARESULTRESULTSREVERSE AUCTIONRISK PERCEPTIONRISK SHARINGSANDSECURITIESSILICONSOLAR CELLSOLAR COLLECTORSSOLAR ENERGYSOLAR INDUSTRYSOLAR INSOLATIONSOLAR POWERSOLAR POWER PLANTSSOLAR PROJECTSSOLAR RADIATIONSOLAR THERMALSOLAR THERMAL COLLECTORSSPOT PRICESPOT PRICESSTANDARDIZATIONSTATE BANKSTEAM TURBINESUPPLY CHAINSUPPORT INFRASTRUCTURESUSTAINABLE ENERGYTARGETSTARIFF LEVELSTAXTECHNICAL ASSISTANCETECHNOLOGY TRANSFERTHERMAL CAPACITYTHERMAL POWERTHERMAL TECHNOLOGIESTIMELY PAYMENTTRADINGTRANSMISSIONTRANSMISSION LINETRANSPARENCYTURBINESUNIONUSESUTILITIESUTILITY GRIDUTILITY-SCALEVALUE CHAINVALUE CHAINSWINDWIND ENERGYWORLD TRADE10.1596/17480