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Has India׳s Solar Mission increased the deployment of domestically produced solar modules?

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  • Shrimali, Gireesh
  • Sahoo, Anshuman

Abstract

The Jawaharlal Nehru National Solar Mission (JNNSM), India׳s flagship policy for solar energy deployment, includes an increasingly strict Domestic Content Requirement (DCR) intended to promote the domestic crystalline photovoltaic solar industry. We examine the impact of the JNNSM DCR on the utilization of domestic and domestic crystalline silicon modules. Using a plant-level database of approximately 250 plants, we show that the first, and weaker, version of the policy accomplished its intention of promoting domestic crystalline silicon modules. However, the second, and stricter, version of the policy has not been as effective: it appears to have promoted the use of foreign thin film modules instead. This analysis shows that the tightening of the DCR was associated with leakage to foreign thin film modules. This suggests that DCR policies need to be comprehensive in scope to ensure that they achieve a goal of using only domestic content; however, policymakers should appropriately assess the welfare impacts of such restrictions.

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  • Shrimali, Gireesh & Sahoo, Anshuman, 2014. "Has India׳s Solar Mission increased the deployment of domestically produced solar modules?," Energy Policy, Elsevier, vol. 69(C), pages 501-509.
    • Handle: RePEc:eee:enepol:v:69:y:2014:i:c:p:501-509
    DOI: 10.1016/j.enpol.2014.02.023
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    References listed on IDEAS

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    1. Johnson, Oliver, 2013. "Exploring the effectiveness of local content requirements in promoting solar PV manufacturing in India," IDOS Discussion Papers 11/2013, German Institute of Development and Sustainability (IDOS).
    2. Howard Pack & Kamal Saggi, 2006. "Is There a Case for Industrial Policy? A Critical Survey," The World Bank Research Observer, World Bank, vol. 21(2), pages 267-297.
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    4. Lewis, Joanna I. & Wiser, Ryan H., 2007. "Fostering a renewable energy technology industry: An international comparison of wind industry policy support mechanisms," Energy Policy, Elsevier, vol. 35(3), pages 1844-1857, March.
    5. Sahoo, Anshuman & Shrimali, Gireesh, 2013. "The effectiveness of domestic content criteria in India's Solar Mission," Energy Policy, Elsevier, vol. 62(C), pages 1470-1480.
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    Cited by:

    1. Hairat, Manish Kumar & Ghosh, Sajal, 2017. "100GW solar power in India by 2022 – A critical review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 1041-1050.
    2. Shrimali, Gireesh & Agarwal, Navin & Donovan, Charles, 2020. "Drivers of solar deployment in India: A state-level econometric analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 133(C).
    3. Hansen, U.E. & Nygaard, I. & Morris, M. & Robbins, G., 2020. "The effects of local content requirements in auction schemes for renewable energy in developing countries: A literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 127(C).

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