The Ministry of New and Renewable Energy (MNRE) in India has asked states to prioritize setting up solar projects near substations that have available capacity in the transmission system.
With huge amounts of solar power capacity scheduled to come online in the next few years, absorbing this capacity in the grid will be critical for the country to achieve its target.
Solar power capacity of India has crossed 12 GW at the end of FY 2016-17 (see India Installed Over 5 GW In FY 2016-17). In 2018, as much as 10 GW could be added. The country is targeting 100 GW of cumulative solar power capacity by 2022.
The most important part to facilitate efficient solar growth will be power evacuation/transmission infrastructure that can absorb this capacity. Hence, the government had Powergrid Corporation of India Limited (PGCIL) to prepare a report on the availability of spare capacities in existing/planned substations for the three Indian regions (west, north and south India) under the so-called interstate transmission system (ISTS).
Based on this report, MNRE is asking states to prioritize setting up solar projects subject to availability of land near the available capacity of substation/transmission system. The Central Electricity Authority (CEA) has been tasked with preparing a list and maps of such ISTS systems in consultation with states. After reviewing the two reports, state governments will work out a plan to set up solar projects in the future with the aim to reduce project cost.
Recently, the government extended the waive off period for ISTS charges to be paid by solar power projects commissioned until December 31, 2019 (see India Extends Solar Waiver Period).
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