Panel Paper: Assessing the Effectiveness of the Domestic Content Criteria in India's Solar Mission

Saturday, November 8, 2014 : 8:30 AM
Enchantment Ballroom D (Hyatt)

*Names in bold indicate Presenter

Gireesh Shrimali, Middlebury College
The Jawaharlal Nehru National Solar Mission (JNNSM), India’s flagship solar policy, includes a Domestic Content Requirement (DCR) intended to promote the domestic crystalline photovoltaic solar industry. We examine the impact of the JNNSM DCR on technology choice in solar power plants. Using a logit regression analysis of a database containing approximately 250 plants, we show that, compared to a baseline policy with no DCR,  the first (and weaker) version of the DCR promoted domestic crystalline silicon modules. However, we also show that the second (and stricter) version of the policy has not been as effective: it appears to have promoted foreign thin film modules instead. Our results show that the tightening of the DCR was associated with leakage to foreign thin film modules, and suggest that DCR policies need to be comprehensive in scope to ensure that the intended goal of is obtained.