Solar power potential in India:In search of energy security

PROSPECTIVE SOLAR POWER IN INDIA

In the last few years, the rapid emergence and growth of solar energy has greatly impacted the energy scenario in India. Through distributed and decentralized solar energy systems, people in the country have been able to meet their energy needs. The social and economic benefits of solar energy are numerous. It can reduce the drudgery of rural women and girls who used to collect and cook wood from long distances. It can also help minimize the risks associated with getting sick and improving the standard of living in the communities.

Over the years, the solar energy sector has been able to contribute significantly to the country's energy generation capacity. It supports the government's sustainable growth agenda and is an essential part of the solution to meet the country's energy needs.

According to a study conducted by the National Institute of Solar Energy, India has the potential to generate over 748 gigawatts of solar energy. This estimate assumes that around 3% of the country's waste land area is covered by solar PV modules. The country's solar mission has been included in the country's climate change action plan.

In the first quarter of 2022, India's solar power generation reached approximately 22 billion units, which is a 30% increase from the previous quarter and a 27% increase from the same period in 2021. The increase in the number of installations and the insolation of solar power plants contributed to the growth of the renewable energy generation industry. In the first quarter of 2022, the country's renewable energy generation capacity reached 42 billion units.

The states of Karnataka, Andhra Pradesh, and Rajasthan were the top three states for the installation of solar power plants during the first quarter of 2022. India's cumulative solar power generation reached the 50 gigawatt mark in February 2022. For the financial year ended March 2022, the country's solar power generation reached 73.48 gigawatts, which is a 22% increase from the previous year. The increase in the generation was mainly due to the revised numbers received from the state of Goa. whereas, The Southern region was responsible for over 50% of the country's total solar power generation during the financial year ended March 2022. The Northern region was the second-largest contributor with a share of 31%, while the Western region contributed 19.7%.

The four states that accounted for the majority of the country's solar power generation during the financial year ended March 2022 were Karnataka, Tamil Nadu, Rajasthan, and Andhra Pradesh.

According to data released by the Central Electricity Authority, India's renewable energy capacity, which includes large hydro projects, stood at over 155.26 gigawatts at the end of the first quarter of 2022. This represents a share of over 39 percent of the country's total power mix. Solar power contributed to over 13% of India's total power generation capacity at the end of the first quarter of 2022. It also contributed to over 34% of the country's renewable energy generation capacity during the same period. A report released in the fourth quarter of 2021 says that, India's solar power capacity grew by 10 gigawatts during the year ended December 31, 2021. This is a 210% increase from the previous year's installations.

FOCUS ON ROOFTOP SOLAR POWER:

It is important that the government provides the necessary support to the rooftop segment of the energy industry to ensure that it can grow at a more balanced rate. While it is initially believed that a utility-scale generation solution is the way forward, a closer analysis reveals that distributed generation is more likely to provide the lowest cost of energy. The biggest challenge that the solar industry faces is the lack of supportive policies and regulations. This is due to the various challenges that it faces, such as the high prices of solar modules and the lack of a proper supply chain. The sector hopes that the government and the policy ecosystem will take the necessary steps to address these issues. Two major initiatives were announced by the government, which aimed to boost the domestic solar industry and ensure that the country's capacity additions are at the optimal levels. These include the import ban on solar cells and modules and the production linked incentive program. Since the import ban on solar modules has been implemented, the developers who are planning on setting up solar plants will have to import the components in the short term. To avoid this, the government should allow existing bids to be grandfathered and the BCD on solar cells should be pushed out by one year. This would allow the country's manufacturing capabilities to improve.

Battery storage is an integral part of the energy transition agenda, and it would require support in the first few years after the domestic ecosystem is established. Despite the optimism expressed by various stakeholder groups, the concerns about the future of the solar industry remain. For instance, the lack of progress on the Covid-19 issue and other issues are still hindering the industry's growth.

According to experts, the solar industry could grow by up to 50% in 2022 as the government's efforts to make India a manufacturing hub for solar could help boost the country's demand. However, policymakers should be careful not to throttle the demand growth by affecting the supply or price of solar. To attract foreign direct investment, the government should develop a long-term strategy and implement policies that are focused on increasing the industry's long-term growth.

NATIONAL SOLAR MISSION:

The National Solar Mission was launched on January 11, 2010. It is a major initiative of the government of India to promote sustainable growth and address the country's energy security concerns. It will also contribute significantly to the global effort to address climate change. The objective of the National Solar Mission is to establish India as a leader in the solar energy industry by developing policies that will encourage the diffusion of solar technology across the country. The Mission aims to install 100 gigawatts of grid-connected solar power plants in the next four years. This is in line with the country's target of having 40 percent of its electricity come from non-fossil fuel-based energy resources by 2030. It also aims to reduce the country's greenhouse gas emissions by around 33 to 35 percent by 2030.

INITIATIVES UNDER NSM: In order to meet the target, the government has launched various initiatives to encourage the development of solar power in the country. Some of these include the Solar Park Scheme, VGF Scheme, Defence Scheme, Bundling Scheme, and the Canal top Scheme. Various policies and measures were also taken to encourage the development of solar power in the country. These include the declaration of the Renewable Purchase Obligation (RPO), the waiver of the ISTS charges, and the establishment of competitive bidding procedures for the procurement of solar power. Besides these, other measures such as the establishment of a roof top solar facility for new construction and the approval of building bye-laws for the development of smart cities were also taken. In July 2019, India became the 5th largest solar power deployment in the world after surpassing Italy. The country's solar power capacity has increased significantly over the past five years. It has also achieved grid parity. Due to the various policies and measures taken by the government, the solar tariff in the country has been very competitive.

CONCLUSION:

With a massive population of over a billion and a growing economy, India has always been grappling with a shortage of energy. Despite being one of the world's largest producers of electricity, it is still unable to meet its growing needs. Almost half of India's energy requirements are met by coal. According to predictions, the country's coal reserves will not last beyond 2050. Despite this, over 70% of the country's population still lives in rural areas. Only half of its population has access to electricity. With the increasing number of people living in rural areas and the lack of electricity in many cities, solar energy has emerged as the most sustainable and environment-friendly solution for the country. A typical solar system is very simple to set up and can be installed on any type of surface. Many people in India have already been aware of the various benefits of solar energy. They were quick to install their systems and are eager to reap the benefits of this clean and renewable energy source. However, despite the increasing number of people who are interested in solar energy, the country's adoption rate has yet to take off. The Indian government is planning to invest over US$1 billion in the solar industry by 2022, and it is expected that by then, the country will have enough energy to meet its growing needs.

In addition to being a tropical country, India also receives solar radiation during the year. This provides for an estimated 5,000 trillion kilowatt hours of solar radiation per square meter, which is equivalent to almost two thousand atomic bombs dropping on Earth. Several states, such as Bihar, Gujarat, West Bengal, and Punjab, have the potential to generate solar energy through their geographical locations. With the increasing use of solar energy, it is expected that the country will be able to reduce its reliance on traditional fuel sources such as firewood and dung cakes.

In order to promote the use of solar energy, the Indian government has launched various initiatives to encourage the development of the solar industry. Some of these include the establishment of a capital subsidy program, accelerated depreciation, and power purchase agreement. The government also plans to reduce the cost of building a solar power plant by making it more cost-effective for young and innovative entrepreneurs. Due to the country's open market and favorable policies, the solar power tariffs in India have significantly decreased. This has encouraged foreign investors to enter the solar industry. The profitability of India's solar energy industry is expected to remain high in the future. Due to the government's efforts and the increasing number of initiatives related to the solar industry, the country's solar pump schemes are expected to help expand the scope of Prime Minister Narendra Modi's vision for the country.

Pic Courtsey-Pankaj Jha

(The views expressed are those of the author and do not represent views of CESCUBE.)