The Times of India provides a good review of the efforts underway in Tamil Nadu to ensure solar energy plays a bigger role.

Colleges told to meet 6% of needs through solar energy

In a desperate effort to tide over the acute power shortage, the Tamil Nadu government has made it mandatory for high-tension consumers to purchase a certain percentage of solar energy from the Tamil Nadu Generation and Distribution Corporation (Tangedco).

As per the new solar energy policy, the state will mandate 6% solar purchase obligation for all colleges and residential schools, IT parks, telecom towers, industries guaranteed with 24-hour power supply, special economic zones and buildings with a built up area of 20,000 sqm or more. Till December 2013, high-tension consumers will have to ensure that 3% of their energy consumption is through solar energy. This will be increased to 6% from January 2014. Domestic consumers, huts, cottage and tiny industries, powerlooms, low-tension industrial consumers and agricultural consumers have been exempted from the solar purchase obligation.

This is part of the ‘Tamil Nadu Solar Energy Policy 2012’ that chief minister J Jayalalithaa unveiled on Saturday. It is aimed at generating 3,000MW of solar power by 2015. Apart from encouraging indigenous solar manufacturing facilities with incentives, the policy aims at promoting research and development in the sector and hybrid systems, besides creating skilled manpower and jobs.

Those installing solar systems would be given tax concessions, besides exemptions from electricity tax and demand cut.

Tamil Nadu eyes 3,000MW solar energy by 2015

Intent on increasing dependence on clean, climate-friendly, abundant energy resource, the state government on Saturday unveiled a new policy hoping to clock a production of 3,000MW of solar power by 2015. The falling prices of solar panels coinciding with the growing cost of grid power in India prompted the government to look at solar energy as a viable option, said the policy.

It has brought large-scale power consumers into the initiative by mandating 6% solar purchase obligation (SPO). The SPO will be administered by Tangedco. The high tension consumers can fulfil obligation by generating captive solar power equivalent to or more than their SPO; or by buying equivalent to or more than their SPO from third party developers; or buying renewable energy certificates (by trading solar power) generated by projects equivalent to or more than their SPO and purchasing power from Tangedco at solar tariff.

However, all were not happy with the government’s new move. “The rate of solar power at present is around 10 to 12 per unit. The high tension users are now going through rough patch. Some subsidies should be given and solar energy as an alternative power source should be introduced in commercial and domestic sector also,” said Mahendra Ramdas, former president of Tamil Nadu Electricity Consumers Association.

The initiative, with a slew of encouraging features, finds opportunity in the rapidly declining solar power costs and aims at tapping at least 1,000MW energy annually.

Elaborating on how the 3,000MW would be generated, the policy said, “In utility scale, out of 1,500MW, 1,000MW will be funded through SPO and the balance 500MW through generation-based incentives.” The policy also promotes solar rooftops in domestic and government buildings. The state government, in all its new buildings, will provide solar rooftops, while all existing buildings will be provided solar panels in a phased manner. The government would also energise more than one lakh street lights through solar energy by 2015-16 and water supply installations in local bodies will be energised through solar power in a phased manner. Solar parks with a capacity of 50MW each will be developed in 24 districts across the state.

The government also announced a slew of incentives to solar power manufacturers, including tax concessions. An empowered committee comprising chief secretary, finance secretary, energy secretary and others will accord solar project clearances.