Tamil Nadu has emerged the leading state in wind power development in the country with a, installed generating capacity of 4,563 MW as of October 2009, minister for new and renewable energy Farooq Abdullah informed the Rajya Sabha in a written reply today.

He said the government has been promoting commercial grid connected wind power projects through private sector investment in wind potential states, including Tamil Nadu by providing financial incentives, loan from Indian Renewable Energy Development Agency (IREDA) and other financial institutions.

The government, through the Centre for Wind Energy Technology (C-WET), Chennai, is also providing technical support, including detailed wind resource assessment, to identify further potential sites, the minister said.

The minister said the government has also embarked upon an ambitious Jawaharlal Nehru National Solar Mission - `Solar India,' which aims at producing 20,000 MW of solar power by the year 2022.

"I am happy to announce that the government has approved a new policy on development of solar energy in the country by launching of the Jawaharlal Nehru National Solar Mission.  This is a historic and transformational initiative of the UPA government and I am proud to have the privilege of being assigned the task of overseeing its implementation. The Solar Mission is very much in line with the vision of modern India of Pandit Nehru, which has made India today, a leading nuclear and space power," he said.

This Mission is one of the eight key national missions that together form India's National Action Plan on Climate Change that aims at contributing to India's long-term energy security while ensuring ecological security.

"We are living in a world of rapidly depleting fossil fuel resources and access to conventional energy resources such as oil, gas and coal is becoming increasingly constrained. The rapid development and deployment of renewable energy is imperative in this context and in view of high solar radiation over the country solar energy provides a long term sustainable solution," he said.

The solar mission would be implemented in three stages leading up to an installed capacity of 20,000 MW by the end of the 13th Five Year Plan in 2022. 

It is envisaged that as a result of rapid scale up as well as technological developments, the price of solar power will attain parity with grid power at the end of the mission, enabling accelerated and large-scale expansion thereafter, he said.

The mission will utilise both solar thermal and photovoltaic technologies in the first phase. In addition, it would also focus on R&D and HRD to develop and strengthen Indian skills and enhance indigenous content to make the mission sustainable.

The mission will establish a single window investor-friendly mechanism, which reduces risk and at the same time, provides an attractive, predictable and sufficiently extended tariff for the purchase of solar power for the grid.  The focal point, for the next 3 years, will be the NTPC Vidyut Vyapar Nigam (NVVN), which is the power-trading arm of the NTPC, he added. 

NTPC Vidyut Vyapar will be the designated authority for the purchase of solar power generated by independent solar power producers, at rates fixed by the Central Regulatory Electricity Commission and for a period specified by the latter.

The government will provide equivalent MW of power from the unallocated quota of NTPC for bundling with solar power.  The utilities will be able to account for purchase of solar power against their RPO obligations. 

The mission also includes a major initiative for promoting rooftop solar PV applications. Solar tariff announced by the regulators will be applicable for such installations. The power distribution companies will be involved in purchase of this power.