Jawaharlal Nehru National Solar Mission

Officially launched in November 2009, JNNSM is one of the eight National Missions laid out in India’s NAPCC. It aims to incentivize the installation of 22,000 MW of on- and off-grid solar power using both PV and CSP technologies by 2022 as well as a large number of other solar applications such as solar lighting, heating, and water pumps. As the power trading arm of the National Thermal Power Corporation (NTPC), NTPC Vidyut Vyapar Nigam Ltd (NVVN) has been designated as the nodal agency to ensure the execution of Phase 1 of the mission The Solar Mission will be implemented in three stages, with specific targets defined for the respective segments (see table below).

Application segment	Target for Phase I (2010-13)	Target for Phase II (2013-17)	Target for Phase III (2017-22)
Solar collectors	7 million sq meters	15 million sq meters	20 million sq meters
Off grid solar applications	200 MW	1,000 MW	2,000 MW
Utility grid power, including roof top	1,000 - 2,000 MW	4,000 - 10,000 MW	20,000 MW

JNNSM aims to address the shortcomings of prior schemes through revised and more attractive feed-in tariffs, a single-window application process, and RPOs that include a solar purchase obligation.167 In February 2010, CERC announced a feed-in tariff for financial year 2010–2011 of INR 17.9 (USD 0.36) per kWh for PV and INR 15.3 (USD 0.31) per kWh for CSP and declared that Power Purchase Agreements (PPAs) would have a validity of 25 years. It is assumed that at current cost levels, the tariff will allow investors to achieve an internal rate of return of about 16%–17% after taxes. CERC will revise the tariff every year. Ideally, by 2022, installation costs will come down significantly to enable solar power to achieve grid parity so that it becomes a viable source for India’s energy needs in the absence of government incentives. Assuming a continuing decrease in PV costs over the span of JNNSM, even as the preferential feed-in tariff is reduced in subsequent years, the share of solar power in the energy mix should continue to increase.Under JNNSM, the NVVN is required to purchase the expensive solar power from developers and bundle it with an equivalent amount of its much cheaper coal-based power before selling the mixed power to the various utilities at a marketable price.
Three phases are identified under JNNSM. Grid-connected solar projects that signed PPAs prior to November 19, 2009, were eligible to migrate to JNNSM under certain conditions until February 29, 2010.170 At the end of each phase there will be a thorough reevaluation of the process.