| Center for Innovation LIPI A3. D.Gupta-SE4 all
Selected National Programmes and Projects
aimed at SE4 ALL
By
Debarshi Gupta
Research Associate, WISE
Indonesia National Stakeholders Workshop on Accessible and Affordable Sustainable Energy
Held at Indonesian Institute of Sciences (LIPI), Jakarta, Indonesia
SE4 ALL Initiative
‘Sustainable Energy for All’ initiative was launched during UN
General Assembly in September 2011
The aim is to catalyze action around three clear objectives to be
achieved by 2030
Ensuring universal access to modern energy services.
Doubling the global rate of improvement in energy efficiency.
Doubling the share of renewable energy in the global energy mix
By bringing together leaders from government, finance, business and civil society,
by establishing partnerships, we can make sustainable energy for all a reality.
All Three Objectives are Necessary
for Long Term Sustainability
Action Areas for Achieving the Objectives Set Out in
SE4 All
The Global Action Agenda chart out for achieving SE4 ALL initative
identifies eleven action areas to achieve three objectives
Each of the above seven action areas support one or more of the three objectives of SE4 All
initiative .
The four enabling action areas include cross cutting mechanisms that support the sectoral action
areas at the country, local and regional levels.
Country: The Democratic Socialist Republic of Sri Lanka
The Energy Service Delivery (ESD) Project - (1997-2002)
The Renewable Energy for Rural Economic Development Project
(RERED) - (2002-2011)
Distributed Electricity Solutions
Increasing the share of Renewables
Project Highlights
The ESD program was implemented from1997 to 2002 by the Government of Sri
Lanka, with assistance from the International Development Association (IDA) of
WB and the Global Environment Facility (GEF).
ESD was succeeded by RERED – 2002 to 2011.
Objective : To improve quality of life and bring about economic development by
improving access to electricity via improved commercial availability and the use
of renewable energy technologies.
The projects have provided energy access to over 200,000 households and
added a capacity of over 180 MW to the national grid.
Institutional Mechanism and Funds Flow
The Ministry of Finance and Planning oversees the project.
The Project Management Department of the Development Finance Corporation of
Ceylon (DFCC) functions as the project administrative unit (AU) and reports to the
Ministry.
The project offers credit facilities through the IDA credit component for gridconnected MHPs, SHSs and community-based VHPs.
The credit is disbursed to IPPs/ECSs/HHs through participating credit institutions
(PCIs)/micro finance institutions (MFIs).
Credit funds are disbursed to the PCIs by the Central Bank of Sri Lanka (CBSL).
The GEF grant is used for project support and technical assistance activities and the
grant is directly disbursed by the CBSL to the respective beneficiaries.
When RERED was introduced, the GoSL began contributing 20 percent of the cost
for most of the project support activities, including project promotion, capacity
building, project preparation grants and consultancy assignments. It also contributed
to the SHS subsidy scheme and provided attractive tariffs for RE IPPs.
Institutional Framework and Funding Mechanism
Implementing Strategy
Grid-connected MHPs
IPPs were allowed to set up projects up to 10 MW installed capacity.
PCIs were provided with re-finance facility.
The PCI was liable to repay the re-finance to the GoSL according to the agreed repayment terms.
PCIs conducted their own project appraisals, which included technical, financial and promoter
evaluation.
Off-grid community based VHPs
VHPs are implemented and owned by community members mobilized in an Electricity Consumer Society
(ECS).
VHPs were financed through a combination of loan and grant support.
ECSs negotiated their loans with lenders and agreed on terms including interest rates, loan amount,
loan period, grace period and security.
Loan size depended on the sub-project cost and the repayment capacity of the ECS members.
Lending institutions evaluated household income and cohesiveness, and ECS managerial and technical
capability when extending loans.
Each successfully completed VHP received a GEF grant of USD 600 per kWe of installed capacity.
Implementing Strategy (Contd…)
Off-grid community based VHPs
Project preparation consultants (PPCs) provided technical assistance to ECSs with
all tasks related to establishing VHPs, including design, construction and O&M.
They also mediated between ECSs and other relevant stakeholders such as
provincial councils, lending institutions and the AU.
A PPC was paid up to USD 8,000 as a Project Preparation Grant (PPG). The
PPG is released in three stages: 40 percent upon successful design verification,
30 percent upon successful installation verification, and the final 30 percent six
months after installation verification.
In addition, RERED provided PPCs with an incentive payment of up to USD
1,000 to set up income-generating activities in the village using the generated
electricity.
Implementing Strategy (Contd…)
Solar Home Systems (SHS)
A typical SHS sold under the project consisted of a 40-60 Wp solar
photovoltaic (SPV) panel, five or six 12 volt direct current (DC) compact
fluorescent lamps (CFL) and socket outlets for plugging in a DC television,
a mobile phone charger or other appliances.
SHS vendors provide and install SHSs after evaluation of electricity needs
of potential household customers by the vendor’s technician.
In case a customer needs credit facilities, the technician performs
preliminary credit assessment and directs the customer to a microfinance
institution (MFI). MFIs provide loans after detailed credit evaluation.
Since January 2006, the GoSL has provided a nation-wide subsidy to SHS
buyers in the form of upfront discounts on SHS selling prices. The vendors
claim this subsidy from the GoSL through the AU.
Legal Framework for Power Purchase
Grid-connected MHPs
ESD developed the standardized Small Power Purchase Agreement (SPPA) and the
non-negotiable Small Power Purchase Tariff (SPPT).
Under the SPPA, IPPs enter into a 15-year agreement with the Ceylon Electricity
Board (CEB), with clearly specified conditions of power delivery and purchase, with
the floor tariff payable to the MHP subproject (the SPPT).
They also serve as a catalyst in attracting more financiers to the industry, reducing
financial uncertainties for sub-projects.
Off-grid community based VHPs
During 1990, no entity other than the CEB was allowed to distribute and sell
electricity.
The ECS concept was introduced to address this issue. ECSs generate power, but for
use by ECS members only, which amounts to self-generation rather than commercial
production and sale of power.
ECS members pay a flat monthly subscription fee rather than a tariff
Off-Grid Village Electrification Schemes Completed
under ESD (1997-2002), RERED (2002-2011)
Grid Connected Projects Commissioned under
ESD (1997-2002), RERED (2002-2011)
Solar Home Systems Installed under
ESD(1997-2002), RERED (2002-2011)
Impacts
Income and Livelihood Impacts
Saving on kerosene and other energy sources: Reduction of monthly household (HH)
kerosene consumption from 11 lit to 0.7 lit resulting in monetary saving of LKR 338 per HH.
Employment creation: 49 MHPs completed in 2009 have generated between 176,400
and 242,550 person days. After construction, MHPs and VHPs employ 3-4 persons per
project for O&M. The 106,116 SHSs installed by 30 September 2009 have generated
477,000 person-days of employment.
Impacts (Contd…)
Social Impacts
According to a 2008 impact survey, children’s mean study time in households increased
from 1 Hr to 2.5 Hr per day.
60%-87% of the respondents, particularly women, stated that electricity provided security.
Many VHP beneficiaries purchased TV and electric iron, exposure to TV has created a
positive impact on children by increasing awareness and knowledge.
Environmental Impacts
Estimates show that 41.2 million litres of kerosene have been saved by VHP- SHS powered
HH as on 2008 thereby cutting down 14,719 tonnes of CO2.
Emission reduction from grid connected MHPs accounts for 1.2 million tonnes of CO2 during
2004-2008.
Country: Norway
The Energy + International Partnership led by Norway, which
aims to address energy access, energy efficiency and
renewable energy
Energy Planning and Policies
What is Energy+
The Norwegian government launched the International Energy
and Climate Initiative – Energy+ in support of the UN Secretary
General’s SE4All initiative on 10 October 2011.
Energy + aims to increase access to modern energy and energy
efficiency, and reduce emissions of greenhouse gases in
developing countries.
Energy + intends to provide financial support to developing
countries based on results in the form of increased access and
increased share of renewable energy, and measures taken to
support these goals.
Energy + Guiding Principles
Sectoral approach: Developing country actions in the energy
sector is supported through best-practice policy reforms, technical
support and at scale results-based financial investments to increase
access to renewable energy and energy efficiency, and reduce
greenhouse gas emissions.
Payment by results: The Energy + partnership intends to provide
payment by results based on achieved outcomes in terms of
increased access to sustainable energy and increased share of
renewable energy. This contributes to leveraging commercial
investments.
Who Initiated Energy+
The outlines of the concept was discussed with other donor countries,
developing countries, private sector representatives, international
organizations and civil society organizations over a year-and-a-half before it
was launched in October 2011.
The initiative is inspired by the Govt. of Norway’s past experience in
international climate and forest initiative for reducing emissions from
deforestation and forest degradation.
Norway spent NOK 800 million in 2010 to support clean energy in developing
countries. Budgetary provision of NOK 2 billion was made available for the
Energy + initiative in 2013.
Current Status of Energy+
The Energy+ partnership is voluntary and open to all interested actors
endorsing the guiding principles of Energy+.
Nearly fifty-five countries and organizations have signed up to the
Energy+ Partnership. The partners are as follows.
Developing countries (e.g. Ethiopia, Kenya, Maldives, Senegal)
Developed countries (e.g. UK, Denmark, France, Norway)
UN agencies (UNDP, UNEP, UNIDO)
Multilateral development banks (World Bank, ADB, IDB, AfDB)
International organizations (e.g. IEA, OECD)
Private sector (WBCSD)
Think-tanks (e.g. CCAP)
Civil society (e.g. WWF)
How Developing Countries will be Benefited
Financial support from Energy+ will be based on achieved results in terms of
increased access to sustainable energy and increased use of renewable
energy.
Financial support includes support to measures taken to establish policies and
regulations that bring about increased commercial investments in renewable
energy and energy efficiency.
The support may be used by developing countries to further strengthen the
enabling environment to attract commercial investments in the energy sector.
The Energy+ Partnership organizes dialogue with private sector (small,
medium, large entrepreneurs), and relevant sectors (RE manufacturers, financial
service providers) to find out the areas that need to be supported.
Energy+ Guiding Principles (1/2)
Energy+ employs a three-phased approach to country engagement:
Phase one: Provide support for development of strategic plans (e.g. lowcarbon and energy sector strategies), and policy and regulatory reforms,
including support to capacity building.
Phase two: Provide support for implementation of required plans, policies
and regulatory measures that provide incentives for commercial investments
and for building necessary capabilities [including measurement, reporting
and verification (MRV) mechanism] to enable the implementation of results
oriented financing programs.
Phase three: Provision of payment by results according to the outcomes
delivered in terms of access to sustainable energy and increased use of
renewable energy.
Energy+ Guiding Principles (2/2)
Use of robust indicators to measure outputs, outcomes and
impact. Reduction in emissions of greenhouse gases will be
quantified based on approved methodology and approaches
within the UNFCCC.
Activities will be country-driven, and will support developing
country partners’ energy and low carbon development and
poverty reduction strategies.
Work through existing programs and institutions will be
supported, thereby limiting transaction costs and speeding up
progress.
National and international social and environmental standards
will be used.
Energy + Outcomes (Kenya, Liberia and Bhutan)
Kenya:
Kenya and Norway entered into a five-year, NOK 250 million agreement to support
increased access to sustainable energy and reduce greenhouse gas emissions.
The initiative will seek to build over time an overall approach on RE and EE policy.
Liberia:
Liberia and Norway entered into a five-year, NOK 100 million agreement to support
the development and implementation of a National Energy and Climate Plan.
Support will be provided for the necessary capacity-building as well as electrification
programs.
Bhutan:
In Bhutan, Norway entered into a five-year, NOK 100 million agreement to increase
access to energy services and reduce emissions of greenhouse gases from the energy
sector.
Country: Republic of India
National Solar Mission (NSM)
Large-Scale Renewable Power
National Action Plan on Climate Change
NAPCC has set challenging targets for RE Development
NSM objectives
To achieve ecologically sustainable growth while addressing
energy security challenges.
To achieve volume production at a scale which leads to cost
reduction and rapid diffusion and deployment of solar
technologies across the country.
To set-up an enabling policy and regulatory environment for
solar technology penetration in the country, both at centralized
and decentralized levels.
NSM Targets
Sr
No
Application
Phase I
( 2010-2013)
Phase II
(2013-2017)
Phase III
(2017 – 2022)
1
Utility grid
power including
roof top
1100 – 2000
MW
4000 – 10,000
MW
20,000
MW
2
Off-grid solar
applications
200 MW
1000 MW
2000
MW
3
Solar Collectors
7 million sq.
meters
15 million sq.
meters
20 million sq
meters
Regulatory Framework under NSM
Energy buy back arrangement
NTPC Vidyut Vyapar Nigam Limited (NVVN), a subsidiary of National Thermal Power
Corporation (NTPC) is designated as the nodal agency by the Ministry of Power (MoP) for
entering into PPA for 25 yrs with solar developers who intend to set up projects up to
2013.
NVVN will buy solar power as per the Tariff fixed by the Central Electricity Regulatory
Commission (CERC).
NVVN to bundle equivalent MW capacity of thermal power allocated by MoP from unallocated quota of NTPC power stations and sell it to the utilities.
Utilities can meet their RPS obligation by purchasing power from NVVN.
Solar-specific RPO and REC
Solar-specific RPO starting with 0.25% in 1st phase, increasing to 3% by 2022.
Solar-specific REC to meet the solar specific RPO by the obligated entities.
NVVN Power Bundling Scheme
Institutional Arrangement to support bundling of Solar Power
State
Government
(Land, Water,
Other Sanctions)
Central
Electricity
Authority
(Technical
Support)
Solar Power
Developer
National
Thermal Power
Corporation (NTPC)
CERC
(Determines
Tariff)
PPA Solar power
S kWh @ US cents
25.56 (S kWh @
Rs 12/kWh)
Thermal power
4S kWh@ US
cents 4.26 (4S
kWh@ Rs 2.00
/ kWh)
NTPC Vidyut Vyapar
Nigam (NVVN)
Buys → Bundles →
Sells
PPA Bundled
Power/kWh
@ ((S x 25.56 +
4S x 4.26)/5S)
/kWh
= US cents
8.52/kWh i.e.
Rs 4/kWh)
State Electricity Boards
(Buyers of bundled
power)
Allocation of Solar Capacity under Phase I and
Phase II of NSM
Phase I
(2010-13)
Batch 1
(2010-11)
Batch 2
(2011-12)
Phase II
(2013-17)
Batch 1
1000 MW
Solar PV and
Solar thermal
500 MW (Solar
Thermal)
150 MW
(Solar PV)
350 MW (Solar
PV)
9000 MW
750 MW
through VGF
Solar Project Selection criteria under NSM
Short listing of the project investors based on
financial, technical competence, technical feasibility
for grid connection and conformity with domestic
content (solar modules and cells)
In case the shortlisted solar capacity is more than
the allocated solar capacity under Batch 1 and 2,
the bidders would be asked to submit RFP
indicating discount in Rs/kWh on CERC approved
tariff
In order to discourage adventurous bids, the
bidders need to submit ‘Bid Bond’ in Rs/MW in
proportion to the discount offered on CERC
approved tariff.
NSM Results – Capital Cost Reduction
Benchmark Cost (Million USD per MW)
3.00
2.50
2.45
2.33
2.00
1.61
1.50
1.29
1.00
0.50
0.00
2010-11
2011-12
2012-13
2013-14
Trend of CERC Benchmark Cost for CSP
Benchmark Cost (Million USD per MW)
Trend of CERC Benchmark Cost for SPV
3.00
2.50
2.29
2.42
2.10
2.00
1.94
1.50
1.00
0.50
0.00
2010-11
2011-12
2012-13
2013-14
35
30
25
20
CERC Benchmark Tariff Vs Tariff
Discovered for SPV
Tariff (US Cents per kWh)
Tariff (US Cents per kWh)
NSM results - Solar Tariff Reduction
28.89
24.82
19.52
14.05
15
10
5
0
2010-11
2011-12
2012-13
Benchmark Tariff
2013-14
30
25
20
CERC Benchmark Tariff Vs Tariff
Discovered for CSP
24.69
18.79
15
10
5
0
2010-11
2011-12
2012-13
Benchmark Tariff
2013-14
PV and CSP Tariff Comparison Across Countries
NSM Results
(Installed Capacity)
STATE POLICY
NSM
REC MECHANISM
RPO
OTHERS
Key factors: NSM success
Government commitment from highest level.
Bundling of solar power with cheaper conventional power reduces the tariff
impact of solar power on the distribution utilities.
Adoption of reverse bidding method for awarding project to qualified bidders
Implementing Renewable Purchase Obligation/REC mechanism for Solar Power.
Instituting a Payment Security Scheme through NVVNL.
Domestic content requirement under Phase I - C-Si cells and modules to be
mandatorily procured from domestic manufacturers.
Thank you for your kind attention !
aimed at SE4 ALL
By
Debarshi Gupta
Research Associate, WISE
Indonesia National Stakeholders Workshop on Accessible and Affordable Sustainable Energy
Held at Indonesian Institute of Sciences (LIPI), Jakarta, Indonesia
SE4 ALL Initiative
‘Sustainable Energy for All’ initiative was launched during UN
General Assembly in September 2011
The aim is to catalyze action around three clear objectives to be
achieved by 2030
Ensuring universal access to modern energy services.
Doubling the global rate of improvement in energy efficiency.
Doubling the share of renewable energy in the global energy mix
By bringing together leaders from government, finance, business and civil society,
by establishing partnerships, we can make sustainable energy for all a reality.
All Three Objectives are Necessary
for Long Term Sustainability
Action Areas for Achieving the Objectives Set Out in
SE4 All
The Global Action Agenda chart out for achieving SE4 ALL initative
identifies eleven action areas to achieve three objectives
Each of the above seven action areas support one or more of the three objectives of SE4 All
initiative .
The four enabling action areas include cross cutting mechanisms that support the sectoral action
areas at the country, local and regional levels.
Country: The Democratic Socialist Republic of Sri Lanka
The Energy Service Delivery (ESD) Project - (1997-2002)
The Renewable Energy for Rural Economic Development Project
(RERED) - (2002-2011)
Distributed Electricity Solutions
Increasing the share of Renewables
Project Highlights
The ESD program was implemented from1997 to 2002 by the Government of Sri
Lanka, with assistance from the International Development Association (IDA) of
WB and the Global Environment Facility (GEF).
ESD was succeeded by RERED – 2002 to 2011.
Objective : To improve quality of life and bring about economic development by
improving access to electricity via improved commercial availability and the use
of renewable energy technologies.
The projects have provided energy access to over 200,000 households and
added a capacity of over 180 MW to the national grid.
Institutional Mechanism and Funds Flow
The Ministry of Finance and Planning oversees the project.
The Project Management Department of the Development Finance Corporation of
Ceylon (DFCC) functions as the project administrative unit (AU) and reports to the
Ministry.
The project offers credit facilities through the IDA credit component for gridconnected MHPs, SHSs and community-based VHPs.
The credit is disbursed to IPPs/ECSs/HHs through participating credit institutions
(PCIs)/micro finance institutions (MFIs).
Credit funds are disbursed to the PCIs by the Central Bank of Sri Lanka (CBSL).
The GEF grant is used for project support and technical assistance activities and the
grant is directly disbursed by the CBSL to the respective beneficiaries.
When RERED was introduced, the GoSL began contributing 20 percent of the cost
for most of the project support activities, including project promotion, capacity
building, project preparation grants and consultancy assignments. It also contributed
to the SHS subsidy scheme and provided attractive tariffs for RE IPPs.
Institutional Framework and Funding Mechanism
Implementing Strategy
Grid-connected MHPs
IPPs were allowed to set up projects up to 10 MW installed capacity.
PCIs were provided with re-finance facility.
The PCI was liable to repay the re-finance to the GoSL according to the agreed repayment terms.
PCIs conducted their own project appraisals, which included technical, financial and promoter
evaluation.
Off-grid community based VHPs
VHPs are implemented and owned by community members mobilized in an Electricity Consumer Society
(ECS).
VHPs were financed through a combination of loan and grant support.
ECSs negotiated their loans with lenders and agreed on terms including interest rates, loan amount,
loan period, grace period and security.
Loan size depended on the sub-project cost and the repayment capacity of the ECS members.
Lending institutions evaluated household income and cohesiveness, and ECS managerial and technical
capability when extending loans.
Each successfully completed VHP received a GEF grant of USD 600 per kWe of installed capacity.
Implementing Strategy (Contd…)
Off-grid community based VHPs
Project preparation consultants (PPCs) provided technical assistance to ECSs with
all tasks related to establishing VHPs, including design, construction and O&M.
They also mediated between ECSs and other relevant stakeholders such as
provincial councils, lending institutions and the AU.
A PPC was paid up to USD 8,000 as a Project Preparation Grant (PPG). The
PPG is released in three stages: 40 percent upon successful design verification,
30 percent upon successful installation verification, and the final 30 percent six
months after installation verification.
In addition, RERED provided PPCs with an incentive payment of up to USD
1,000 to set up income-generating activities in the village using the generated
electricity.
Implementing Strategy (Contd…)
Solar Home Systems (SHS)
A typical SHS sold under the project consisted of a 40-60 Wp solar
photovoltaic (SPV) panel, five or six 12 volt direct current (DC) compact
fluorescent lamps (CFL) and socket outlets for plugging in a DC television,
a mobile phone charger or other appliances.
SHS vendors provide and install SHSs after evaluation of electricity needs
of potential household customers by the vendor’s technician.
In case a customer needs credit facilities, the technician performs
preliminary credit assessment and directs the customer to a microfinance
institution (MFI). MFIs provide loans after detailed credit evaluation.
Since January 2006, the GoSL has provided a nation-wide subsidy to SHS
buyers in the form of upfront discounts on SHS selling prices. The vendors
claim this subsidy from the GoSL through the AU.
Legal Framework for Power Purchase
Grid-connected MHPs
ESD developed the standardized Small Power Purchase Agreement (SPPA) and the
non-negotiable Small Power Purchase Tariff (SPPT).
Under the SPPA, IPPs enter into a 15-year agreement with the Ceylon Electricity
Board (CEB), with clearly specified conditions of power delivery and purchase, with
the floor tariff payable to the MHP subproject (the SPPT).
They also serve as a catalyst in attracting more financiers to the industry, reducing
financial uncertainties for sub-projects.
Off-grid community based VHPs
During 1990, no entity other than the CEB was allowed to distribute and sell
electricity.
The ECS concept was introduced to address this issue. ECSs generate power, but for
use by ECS members only, which amounts to self-generation rather than commercial
production and sale of power.
ECS members pay a flat monthly subscription fee rather than a tariff
Off-Grid Village Electrification Schemes Completed
under ESD (1997-2002), RERED (2002-2011)
Grid Connected Projects Commissioned under
ESD (1997-2002), RERED (2002-2011)
Solar Home Systems Installed under
ESD(1997-2002), RERED (2002-2011)
Impacts
Income and Livelihood Impacts
Saving on kerosene and other energy sources: Reduction of monthly household (HH)
kerosene consumption from 11 lit to 0.7 lit resulting in monetary saving of LKR 338 per HH.
Employment creation: 49 MHPs completed in 2009 have generated between 176,400
and 242,550 person days. After construction, MHPs and VHPs employ 3-4 persons per
project for O&M. The 106,116 SHSs installed by 30 September 2009 have generated
477,000 person-days of employment.
Impacts (Contd…)
Social Impacts
According to a 2008 impact survey, children’s mean study time in households increased
from 1 Hr to 2.5 Hr per day.
60%-87% of the respondents, particularly women, stated that electricity provided security.
Many VHP beneficiaries purchased TV and electric iron, exposure to TV has created a
positive impact on children by increasing awareness and knowledge.
Environmental Impacts
Estimates show that 41.2 million litres of kerosene have been saved by VHP- SHS powered
HH as on 2008 thereby cutting down 14,719 tonnes of CO2.
Emission reduction from grid connected MHPs accounts for 1.2 million tonnes of CO2 during
2004-2008.
Country: Norway
The Energy + International Partnership led by Norway, which
aims to address energy access, energy efficiency and
renewable energy
Energy Planning and Policies
What is Energy+
The Norwegian government launched the International Energy
and Climate Initiative – Energy+ in support of the UN Secretary
General’s SE4All initiative on 10 October 2011.
Energy + aims to increase access to modern energy and energy
efficiency, and reduce emissions of greenhouse gases in
developing countries.
Energy + intends to provide financial support to developing
countries based on results in the form of increased access and
increased share of renewable energy, and measures taken to
support these goals.
Energy + Guiding Principles
Sectoral approach: Developing country actions in the energy
sector is supported through best-practice policy reforms, technical
support and at scale results-based financial investments to increase
access to renewable energy and energy efficiency, and reduce
greenhouse gas emissions.
Payment by results: The Energy + partnership intends to provide
payment by results based on achieved outcomes in terms of
increased access to sustainable energy and increased share of
renewable energy. This contributes to leveraging commercial
investments.
Who Initiated Energy+
The outlines of the concept was discussed with other donor countries,
developing countries, private sector representatives, international
organizations and civil society organizations over a year-and-a-half before it
was launched in October 2011.
The initiative is inspired by the Govt. of Norway’s past experience in
international climate and forest initiative for reducing emissions from
deforestation and forest degradation.
Norway spent NOK 800 million in 2010 to support clean energy in developing
countries. Budgetary provision of NOK 2 billion was made available for the
Energy + initiative in 2013.
Current Status of Energy+
The Energy+ partnership is voluntary and open to all interested actors
endorsing the guiding principles of Energy+.
Nearly fifty-five countries and organizations have signed up to the
Energy+ Partnership. The partners are as follows.
Developing countries (e.g. Ethiopia, Kenya, Maldives, Senegal)
Developed countries (e.g. UK, Denmark, France, Norway)
UN agencies (UNDP, UNEP, UNIDO)
Multilateral development banks (World Bank, ADB, IDB, AfDB)
International organizations (e.g. IEA, OECD)
Private sector (WBCSD)
Think-tanks (e.g. CCAP)
Civil society (e.g. WWF)
How Developing Countries will be Benefited
Financial support from Energy+ will be based on achieved results in terms of
increased access to sustainable energy and increased use of renewable
energy.
Financial support includes support to measures taken to establish policies and
regulations that bring about increased commercial investments in renewable
energy and energy efficiency.
The support may be used by developing countries to further strengthen the
enabling environment to attract commercial investments in the energy sector.
The Energy+ Partnership organizes dialogue with private sector (small,
medium, large entrepreneurs), and relevant sectors (RE manufacturers, financial
service providers) to find out the areas that need to be supported.
Energy+ Guiding Principles (1/2)
Energy+ employs a three-phased approach to country engagement:
Phase one: Provide support for development of strategic plans (e.g. lowcarbon and energy sector strategies), and policy and regulatory reforms,
including support to capacity building.
Phase two: Provide support for implementation of required plans, policies
and regulatory measures that provide incentives for commercial investments
and for building necessary capabilities [including measurement, reporting
and verification (MRV) mechanism] to enable the implementation of results
oriented financing programs.
Phase three: Provision of payment by results according to the outcomes
delivered in terms of access to sustainable energy and increased use of
renewable energy.
Energy+ Guiding Principles (2/2)
Use of robust indicators to measure outputs, outcomes and
impact. Reduction in emissions of greenhouse gases will be
quantified based on approved methodology and approaches
within the UNFCCC.
Activities will be country-driven, and will support developing
country partners’ energy and low carbon development and
poverty reduction strategies.
Work through existing programs and institutions will be
supported, thereby limiting transaction costs and speeding up
progress.
National and international social and environmental standards
will be used.
Energy + Outcomes (Kenya, Liberia and Bhutan)
Kenya:
Kenya and Norway entered into a five-year, NOK 250 million agreement to support
increased access to sustainable energy and reduce greenhouse gas emissions.
The initiative will seek to build over time an overall approach on RE and EE policy.
Liberia:
Liberia and Norway entered into a five-year, NOK 100 million agreement to support
the development and implementation of a National Energy and Climate Plan.
Support will be provided for the necessary capacity-building as well as electrification
programs.
Bhutan:
In Bhutan, Norway entered into a five-year, NOK 100 million agreement to increase
access to energy services and reduce emissions of greenhouse gases from the energy
sector.
Country: Republic of India
National Solar Mission (NSM)
Large-Scale Renewable Power
National Action Plan on Climate Change
NAPCC has set challenging targets for RE Development
NSM objectives
To achieve ecologically sustainable growth while addressing
energy security challenges.
To achieve volume production at a scale which leads to cost
reduction and rapid diffusion and deployment of solar
technologies across the country.
To set-up an enabling policy and regulatory environment for
solar technology penetration in the country, both at centralized
and decentralized levels.
NSM Targets
Sr
No
Application
Phase I
( 2010-2013)
Phase II
(2013-2017)
Phase III
(2017 – 2022)
1
Utility grid
power including
roof top
1100 – 2000
MW
4000 – 10,000
MW
20,000
MW
2
Off-grid solar
applications
200 MW
1000 MW
2000
MW
3
Solar Collectors
7 million sq.
meters
15 million sq.
meters
20 million sq
meters
Regulatory Framework under NSM
Energy buy back arrangement
NTPC Vidyut Vyapar Nigam Limited (NVVN), a subsidiary of National Thermal Power
Corporation (NTPC) is designated as the nodal agency by the Ministry of Power (MoP) for
entering into PPA for 25 yrs with solar developers who intend to set up projects up to
2013.
NVVN will buy solar power as per the Tariff fixed by the Central Electricity Regulatory
Commission (CERC).
NVVN to bundle equivalent MW capacity of thermal power allocated by MoP from unallocated quota of NTPC power stations and sell it to the utilities.
Utilities can meet their RPS obligation by purchasing power from NVVN.
Solar-specific RPO and REC
Solar-specific RPO starting with 0.25% in 1st phase, increasing to 3% by 2022.
Solar-specific REC to meet the solar specific RPO by the obligated entities.
NVVN Power Bundling Scheme
Institutional Arrangement to support bundling of Solar Power
State
Government
(Land, Water,
Other Sanctions)
Central
Electricity
Authority
(Technical
Support)
Solar Power
Developer
National
Thermal Power
Corporation (NTPC)
CERC
(Determines
Tariff)
PPA Solar power
S kWh @ US cents
25.56 (S kWh @
Rs 12/kWh)
Thermal power
4S kWh@ US
cents 4.26 (4S
kWh@ Rs 2.00
/ kWh)
NTPC Vidyut Vyapar
Nigam (NVVN)
Buys → Bundles →
Sells
PPA Bundled
Power/kWh
@ ((S x 25.56 +
4S x 4.26)/5S)
/kWh
= US cents
8.52/kWh i.e.
Rs 4/kWh)
State Electricity Boards
(Buyers of bundled
power)
Allocation of Solar Capacity under Phase I and
Phase II of NSM
Phase I
(2010-13)
Batch 1
(2010-11)
Batch 2
(2011-12)
Phase II
(2013-17)
Batch 1
1000 MW
Solar PV and
Solar thermal
500 MW (Solar
Thermal)
150 MW
(Solar PV)
350 MW (Solar
PV)
9000 MW
750 MW
through VGF
Solar Project Selection criteria under NSM
Short listing of the project investors based on
financial, technical competence, technical feasibility
for grid connection and conformity with domestic
content (solar modules and cells)
In case the shortlisted solar capacity is more than
the allocated solar capacity under Batch 1 and 2,
the bidders would be asked to submit RFP
indicating discount in Rs/kWh on CERC approved
tariff
In order to discourage adventurous bids, the
bidders need to submit ‘Bid Bond’ in Rs/MW in
proportion to the discount offered on CERC
approved tariff.
NSM Results – Capital Cost Reduction
Benchmark Cost (Million USD per MW)
3.00
2.50
2.45
2.33
2.00
1.61
1.50
1.29
1.00
0.50
0.00
2010-11
2011-12
2012-13
2013-14
Trend of CERC Benchmark Cost for CSP
Benchmark Cost (Million USD per MW)
Trend of CERC Benchmark Cost for SPV
3.00
2.50
2.29
2.42
2.10
2.00
1.94
1.50
1.00
0.50
0.00
2010-11
2011-12
2012-13
2013-14
35
30
25
20
CERC Benchmark Tariff Vs Tariff
Discovered for SPV
Tariff (US Cents per kWh)
Tariff (US Cents per kWh)
NSM results - Solar Tariff Reduction
28.89
24.82
19.52
14.05
15
10
5
0
2010-11
2011-12
2012-13
Benchmark Tariff
2013-14
30
25
20
CERC Benchmark Tariff Vs Tariff
Discovered for CSP
24.69
18.79
15
10
5
0
2010-11
2011-12
2012-13
Benchmark Tariff
2013-14
PV and CSP Tariff Comparison Across Countries
NSM Results
(Installed Capacity)
STATE POLICY
NSM
REC MECHANISM
RPO
OTHERS
Key factors: NSM success
Government commitment from highest level.
Bundling of solar power with cheaper conventional power reduces the tariff
impact of solar power on the distribution utilities.
Adoption of reverse bidding method for awarding project to qualified bidders
Implementing Renewable Purchase Obligation/REC mechanism for Solar Power.
Instituting a Payment Security Scheme through NVVNL.
Domestic content requirement under Phase I - C-Si cells and modules to be
mandatorily procured from domestic manufacturers.
Thank you for your kind attention !