Development of Solar Cities Scheme

The Ministry of New and Renewable Energy (MNRE) is implementing a programme on ‘Development of Solar Cities’ which aims to reduce a minimum of 10% of the projected demand of conventional energy of the city through renewable energy installations and energy efficiency measures.

Objectives

• to enable/empower Urban Local Governments to address energy challenges at City - level.
• to provide a framework and support to prepare a Master Plan including assessment of current energy situation, future demand and action plans
• to build capacity in the Urban Local Bodies and create awareness among all sections of civil society.
• to involve various stakeholders in the planning process
• to oversee the implementation of sustainable energy options through public - private partnerships.

Features

• A total of 60 cities/towns are proposed to be supported for development as “Solar/ Green Cities”.
• At least one city in each State to a maximum of seven cities in a State may be supported by the Ministry. The cities should have population between 5 to 50 lakh. Relaxation could be considered for special category states including North-Eastern States.
• Solar City developed under this scheme will have all types of renewable energy based projects like solar, wind, biomass, small hydro, waste to energy etc.

Proposed Action

• To create a Solar City Cell.
• To constitute a Solar City Stakeholders Committee.
• To promote National Rating System for construction of energy efficient Green Buildings, particularly by commercial and institutional buildings.

Issues and Improvements Required

• Subdued consumer interest on account of high upfront capital investments
• Lack of awareness regarding the incentives available and the favourable regulations

Possibilities and Prospects

• City administrations and discoms may adopt utility-centric business models to increase uptake, thereby managing the local demand and supply more efficiently. In this regard, innovative business models with net metering or gross metering or a combination of both can be explored to encourage consumers.