Transforming India into a solar power

This policy brief examines the Jawaharlal Nehru National Solar Mission, launched in 2009 to establish India as a global leader in solar energy and make solar power affordable by 2022. It analyzes the Mission's three-phase implementation strategy, focusing on grid-connected projects, off-grid applications for rural populations, and the development of domestic manufacturing and R&D. The document highlights the tension between using competitive bidding to lower tariffs and the risk of attracting inexperienced developers, while also critiquing the Mission's limited focus on the most energy-poor citizens and the lack of mandatory environmental impact assessments.

• The Jawaharlal Nehru National Solar Mission aims to install 20 GW of solar capacity by 2022 to achieve grid parity and establish India as a global leader in solar power generation. By 2022, wide-scale implementation could meet nearly 7% of energy needs, mitigate 2.6% of India's carbon emissions, and save over US $5.5 billion in coal imports.
• The Mission uses a secure investment structure to encourage large-scale investment, including 25-year Power Purchase Agreements through NTPC Vidyut Vyapar Nigam Ltd. (NVVN). To protect developers from defaults by cash-strapped state utilities, the MRNE established a 4.86 billion rupee (US $108 million) payment security scheme in June 2011.
• While competitive bidding has successfully reduced solar tariffs, it has also attracted inexperienced developers, such as an animation company and a woollen yarn maker, increasing the risk of project defaults and low-quality installations. To mitigate this, the second round of bidding increased installation sizes for better economies of scale and required at least 50% project ownership for one year after generation begins.
• The Mission's off-grid program aims to distribute 200 million home solar lighting systems and subsidize 2000 MW of applications, but it has struggled to reach the most energy-poor. Challenges include a market-based approach that requires down payments, the use of only pre-approved components, and the fact that only 7% of the overall Mission subsidies are allocated to the off-grid program.
• India is pursuing domestic manufacturing leadership by targeting 45,000 MW of capacity by 2020, offering zero import duties on capital equipment and low-interest loans. However, these domestic content requirements are currently under dispute as potential violations of World Trade Organization obligations.
• The Government of India confirmed in June 2011 that environmental impact assessments are not required for solar projects. This streamlines implementation but ignores risks such as intensive land and water use and the use of hazardous raw materials.

APA

Saito, Y. (2011). Transforming India into a solar power. Climate and Development Knowledge Network. http://cdkn.org/wp-content/uploads/2011/12/India-InsideStory_cbc_LR21.pdf

Chicago

Saito, Yolanda. Transforming India into a solar power. Climate and Development Knowledge Network, 2011. http://cdkn.org/wp-content/uploads/2011/12/India-InsideStory_cbc_LR21.pdf.

Wikipedia

{{cite report |last1=Saito |first1=Yolanda |title=Transforming India into a solar power |publisher=Climate and Development Knowledge Network |date=November 2011 |url=http://cdkn.org/wp-content/uploads/2011/12/India-InsideStory_cbc_LR21.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{saito2011transforming, author = {Saito, Yolanda}, title = {{Transforming India into a solar power}}, institution = {Climate and Development Knowledge Network}, year = {2011}, month = nov, url = {http://cdkn.org/wp-content/uploads/2011/12/India-InsideStory_cbc_LR21.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }