IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v56y2016icp510-518.html
   My bibliography  Save this article

A study of existing solar power policy framework in India for viability of the solar projects perspective

Author

Listed:
  • Rohankar, Nishant
  • Jain, A.K.
  • Nangia, Om P.
  • Dwivedi, Prasoom

Abstract

A decade before conversion of solar energy into electricity was quite expensive compare with other renewable energy or conventional fossil fired generated power. For making solar energy as a main stream source of power generation Indian government has taken several initiatives in last 5–6 years. Presently, the deployment of the solar power project in India is governed by both central and state government under the various schemes. These schemes are mainly includes, Feed-in-Tariff (FiT), Renewable Purchase Obligation (RPO), long term Power Purchase Agreements (PPAs), Renewable Energy Certificates (REC), Accelerated Depreciation (AD) benefit and reverse bidding/auctions etc. As an effect of this competitive market environment, the tariff of solar power has come down from INR 17 or US $ 0.2711In year 2010, US $ 1=INR 45. (year 2010) to less than INR 6 or US $ 0.09222In year 2015, US $ 1=INR 65. (year 2015). This decremented solar tariff may achieve grid parity soon but also has raised the question of sustainability of the solar power project as well. Additionally, this multi-policy environment of both central and state government has created lots of confusion among the solar power project developers to select scheme and make their investment viable as per other power generation business. This paper summarizes various schemes under the current policy framework in terms of viability of the solar power projects in India. It also includes issues related with the sustainability of the solar power project taken under the competitive bidding process with remarkable lowered tariff than benchmarked tariff (ceiling price)in India (i.e. INR 7 or US $ 0.107).

Suggested Citation

  • Rohankar, Nishant & Jain, A.K. & Nangia, Om P. & Dwivedi, Prasoom, 2016. "A study of existing solar power policy framework in India for viability of the solar projects perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 56(C), pages 510-518.
    • Handle: RePEc:eee:rensus:v:56:y:2016:i:c:p:510-518
    DOI: 10.1016/j.rser.2015.11.062
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364032115013295
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.rser.2015.11.062?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Altenburg, Tilman & Engelmeier, Tobias, 2013. "Boosting solar investment with limited subsidies: Rent management and policy learning in India," Energy Policy, Elsevier, vol. 59(C), pages 866-874.
    2. Sharma, Atul, 2011. "A comprehensive study of solar power in India and World," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(4), pages 1767-1776, May.
    3. Shrimali, Gireesh & Nelson, David & Goel, Shobhit & Konda, Charith & Kumar, Raj, 2013. "Renewable deployment in India: Financing costs and implications for policy," Energy Policy, Elsevier, vol. 62(C), pages 28-43.
    4. Kumar, Ashwani & Kumar, Kapil & Kaushik, Naresh & Sharma, Satyawati & Mishra, Saroj, 2010. "Renewable energy in India: Current status and future potentials," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(8), pages 2434-2442, October.
    5. del Río, Pablo & Unruh, Gregory, 2007. "Overcoming the lock-out of renewable energy technologies in Spain: The cases of wind and solar electricity," Renewable and Sustainable Energy Reviews, Elsevier, vol. 11(7), pages 1498-1513, September.
    6. Pandey, Shreemat & Singh, Vijai Shanker & Gangwar, Naresh Pal & Vijayvergia, M.M. & Prakash, Chandra & Pandey, Deep Narayan, 2012. "Determinants of success for promoting solar energy in Rajasthan, India," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(6), pages 3593-3598.
    7. Branker, K. & Pathak, M.J.M. & Pearce, J.M., 2011. "A review of solar photovoltaic levelized cost of electricity," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 4470-4482.
    8. AfDB AfDB, . "Egypt - Competitiveness Report 2010 Update," Country Brochure, African Development Bank, number 307.
    9. Pereira, Marcio Giannini & Camacho, Cristiane Farias & Freitas, Marcos Aurélio Vasconcelos & Silva, Neilton Fidelis da, 2012. "The renewable energy market in Brazil: Current status and potential," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(6), pages 3786-3802.
    10. AfDB AfDB, . "Africa Competitiveness Report 2011," Africa Competitiveness Report, African Development Bank, number 288.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shrimali, Gireesh & Konda, Charith & Farooquee, Arsalan Ali, 2016. "Designing renewable energy auctions for India: Managing risks to maximize deployment and cost-effectiveness," Renewable Energy, Elsevier, vol. 97(C), pages 656-670.
    2. Mashood Nasir & Hassan Abbas Khan & Irfan Khan & Naveed ul Hassan & Nauman Ahmad Zaffar & Aneeq Mehmood & Thilo Sauter & S. M. Muyeen, 2019. "Grid Load Reduction through Optimized PV Power Utilization in Intermittent Grids Using a Low-Cost Hardware Platform," Energies, MDPI, vol. 12(9), pages 1-21, May.
    3. Sindhu, Sonal & Nehra, Vijay & Luthra, Sunil, 2017. "Investigation of feasibility study of solar farms deployment using hybrid AHP-TOPSIS analysis: Case study of India," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 496-511.
    4. Amjad Ali & Wuhua Li & Rashid Hussain & Xiangning He & Barry W. Williams & Abdul Hameed Memon, 2017. "Overview of Current Microgrid Policies, Incentives and Barriers in the European Union, United States and China," Sustainability, MDPI, vol. 9(7), pages 1-28, June.
    5. Kanitkar, Tejal & Thejesh, Nikhil & Ranjan, Upasna, 2021. "Cost of avoided carbon: Optimizing power supply in southern India," Energy Policy, Elsevier, vol. 149(C).
    6. Bose, A.S. & Sarkar, S., 2019. "India's e-reverse auctions (2017–2018) for allocating renewable energy capacity: An evaluation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 112(C), pages 762-774.
    7. Jinpeng Liu & Yun Long & Xiaohua Song, 2017. "A Study on the Conduction Mechanism and Evaluation of the Comprehensive Efficiency of Photovoltaic Power Generation in China," Energies, MDPI, vol. 10(5), pages 1-22, May.
    8. Purohit, Ishan & Purohit, Pallav, 2017. "Technical and economic potential of concentrating solar thermal power generation in India," Renewable and Sustainable Energy Reviews, Elsevier, vol. 78(C), pages 648-667.
    9. Dobrotkova, Zuzana & Surana, Kavita & Audinet, Pierre, 2018. "The price of solar energy: Comparing competitive auctions for utility-scale solar PV in developing countries," Energy Policy, Elsevier, vol. 118(C), pages 133-148.
    10. Sindhu, Sonal & Nehra, Vijay & Luthra, Sunil, 2016. "Identification and analysis of barriers in implementation of solar energy in Indian rural sector using integrated ISM and fuzzy MICMAC approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 70-88.
    11. Thapar, Sapan & Sharma, Seema & Verma, Ashu, 2018. "Key determinants of wind energy growth in India: Analysis of policy and non-policy factors," Energy Policy, Elsevier, vol. 122(C), pages 622-638.
    12. Münch, Florian Anselm & Marian, Adela, 2022. "The design of technical requirements in public solar auctions: Evidence from India," Renewable and Sustainable Energy Reviews, Elsevier, vol. 154(C).
    13. Chen, Zhicong & Wu, Lijun & Lin, Peijie & Wu, Yue & Cheng, Shuying, 2016. "Parameters identification of photovoltaic models using hybrid adaptive Nelder-Mead simplex algorithm based on eagle strategy," Applied Energy, Elsevier, vol. 182(C), pages 47-57.
    14. Nihit Goyal, 2021. "Limited Demand or Unreliable Supply? A Bibliometric Review and Computational Text Analysis of Research on Energy Policy in India," Sustainability, MDPI, vol. 13(23), pages 1-23, December.
    15. Citlaly Pérez & Pedro Ponce & Alan Meier & Lourdes Dorantes & Jorge Omar Sandoval & Javier Palma & Arturo Molina, 2022. "S4 Framework for the Integration of Solar Energy Systems in Small and Medium-Sized Manufacturing Companies in Mexico," Energies, MDPI, vol. 15(19), pages 1-28, September.
    16. Lee, Minhyun & Hong, Taehoon & Yoo, Hyunji & Koo, Choongwan & Kim, Jimin & Jeong, Kwangbok & Jeong, Jaewook & Ji, Changyoon, 2017. "Establishment of a base price for the Solar Renewable Energy Credit (SREC) from the perspective of residents and state governments in the United States," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 1066-1080.
    17. Mukul Chankaya & Ikhlaq Hussain & Aijaz Ahmad & Hasmat Malik & Fausto Pedro García Márquez, 2021. "Generalized Normal Distribution Algorithm-Based Control of 3-Phase 4-Wire Grid-Tied PV-Hybrid Energy Storage System," Energies, MDPI, vol. 14(14), pages 1-22, July.
    18. Nandal, Vinod & Kumar, Raj & Singh, S.K., 2019. "Barriers identification and analysis of solar power implementation in Indian thermal power plants: An Interpretative Structural Modeling approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 114(C), pages 1-1.
    19. Chhawchharia, Saransch & Sahoo, Sarat Kumar & Balamurugan, M. & Sukchai, Sukruedee & Yanine, Fernando, 2018. "Investigation of wireless power transfer applications with a focus on renewable energy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 91(C), pages 888-902.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chhawchharia, Saransch & Sahoo, Sarat Kumar & Balamurugan, M. & Sukchai, Sukruedee & Yanine, Fernando, 2018. "Investigation of wireless power transfer applications with a focus on renewable energy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 91(C), pages 888-902.
    2. Sindhu, Sonal & Nehra, Vijay & Luthra, Sunil, 2016. "Identification and analysis of barriers in implementation of solar energy in Indian rural sector using integrated ISM and fuzzy MICMAC approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 70-88.
    3. Kar, Sanjay Kumar & Sharma, Atul & Roy, Biswajit, 2016. "Solar energy market developments in India," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 121-133.
    4. Mahtta, Richa & Joshi, P.K. & Jindal, Alok Kumar, 2014. "Solar power potential mapping in India using remote sensing inputs and environmental parameters," Renewable Energy, Elsevier, vol. 71(C), pages 255-262.
    5. Saeed Saadat & Muffatto Moreno & Yousafzai Shumaila, 2014. "A Multi-level Study of Entrepreneurship Education among Pakistani University Students," Entrepreneurship Research Journal, De Gruyter, vol. 4(3), pages 1-25, July.
    6. Punia Sindhu, Sonal & Nehra, Vijay & Luthra, Sunil, 2016. "Recognition and prioritization of challenges in growth of solar energy using analytical hierarchy process: Indian outlook," Energy, Elsevier, vol. 100(C), pages 332-348.
    7. Kapoor, Karan & Pandey, Krishan K. & Jain, A.K. & Nandan, Ashish, 2014. "Evolution of solar energy in India: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 40(C), pages 475-487.
    8. Singh, Rhythm, 2018. "Energy sufficiency aspirations of India and the role of renewable resources: Scenarios for future," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 2783-2795.
    9. Luthra, Sunil & Govindan, Kannan & Kharb, Ravinder K. & Mangla, Sachin Kumar, 2016. "Evaluating the enablers in solar power developments in the current scenario using fuzzy DEMATEL: An Indian perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 63(C), pages 379-397.
    10. Nandal, Vinod & Kumar, Raj & Singh, S.K., 2019. "Barriers identification and analysis of solar power implementation in Indian thermal power plants: An Interpretative Structural Modeling approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 114(C), pages 1-1.
    11. Vadiee, Amir & Martin, Viktoria, 2013. "Energy analysis and thermoeconomic assessment of the closed greenhouse – The largest commercial solar building," Applied Energy, Elsevier, vol. 102(C), pages 1256-1266.
    12. Polzin, Friedemann & Egli, Florian & Steffen, Bjarne & Schmidt, Tobias S., 2019. "How do policies mobilize private finance for renewable energy?—A systematic review with an investor perspective," Applied Energy, Elsevier, vol. 236(C), pages 1249-1268.
    13. Fang, Baling & Yin, Xiang & Tan, Yi & Li, Canbing & Gao, Yunpeng & Cao, Yijia & Li, Jianliang, 2016. "The contributions of cloud technologies to smart grid," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 1326-1331.
    14. Katia Angue & Cécile Ayerbe & Liliana Mitkova, 2014. "A method using two dimensions of the patent classification for measuring the technological proximity: an application in identifying a potential R&D partner in biotechnology," The Journal of Technology Transfer, Springer, vol. 39(5), pages 716-747, October.
    15. Vadiee, Amir & Martin, Viktoria, 2013. "Thermal energy storage strategies for effective closed greenhouse design," Applied Energy, Elsevier, vol. 109(C), pages 337-343.
    16. Pillot, Benjamin & de Siqueira, Sandro & Dias, João Batista, 2018. "Grid parity analysis of distributed PV generation using Monte Carlo approach: The Brazilian case," Renewable Energy, Elsevier, vol. 127(C), pages 974-988.
    17. Michael, Jee Joe & S, Iniyan & Goic, Ranko, 2015. "Flat plate solar photovoltaic–thermal (PV/T) systems: A reference guide," Renewable and Sustainable Energy Reviews, Elsevier, vol. 51(C), pages 62-88.
    18. Balghouthi, Moncef & Trabelsi, Seif Eddine & Amara, Mahmoud Ben & Ali, Abdessalem Bel Hadj & Guizani, Amenallah, 2016. "Potential of concentrating solar power (CSP) technology in Tunisia and the possibility of interconnection with Europe," Renewable and Sustainable Energy Reviews, Elsevier, vol. 56(C), pages 1227-1248.
    19. Bundhoo, Zumar M.A., 2018. "Renewable energy exploitation in the small island developing state of Mauritius: Current practice and future potential," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 2029-2038.
    20. Sahoo, Sarat Kumar, 2016. "Renewable and sustainable energy reviews solar photovoltaic energy progress in India: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 927-939.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:rensus:v:56:y:2016:i:c:p:510-518. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.