Government of India to introduce Viability Gap Funding in Phase 2 of JNNSM solar project

Greentech Lead India: The Government of India is planning to introduce Viability Gap Funding (VGF) for grid connected solar power projects for the second phase of Jawaharlal Nehru National Solar Mission (JNNSM). The model, however, is not proposed for wind energy.During the Phase 1 of Jawaharlal Nehru National Solar Mission, the Ministry of Renewable Energy adopted a reverse auction model based on discounts offered on CERC tariffs for selection of solar power projects.

For the wind energy projects, the Government has reintroduced the Generation Based Incentive  (GBI) to be implemented during the 12^th Plan.

The GBI was also available on a limited scale for small grid-connected solar power projects under the Rooftop PV and Small Solar Power Generation Programme (RPSSGP) of JNNSM Phase-1.

The Government has created over 50,000 direct jobs in the new and renewable energy sector in the last three years, mainly in off-grid and other applications in the New and Renewable Energy Sector. On an average, a 1-2 MW PV project employs nearly 40 people. This number increases by approximately 15 for every additional 1 MW capacity.

In the case of solar thermal projects, it is estimated that up to 500 personnel are employed in a 20 MW capacity power project.

In last three years 419.21 MUs (Upto Jan. 2013) of solar energy has been generated.

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