JOIN USEnhancing the solar energy capacity
Globally, it has been the news for quite some time now that the Government of India has announced major plans to increase the solar energy capacity of the country by over 100 GW by the year 2022. So far, numerous efforts and undertaking have been announced by multifarious contributors — government or otherwise, who are racing against time to accomplish this mission.
The magnitude of this task can neither be measured in any unit, nor can anyone expect it to happen overnight. So, what does it take for the world’s fastest growing economy to convince international leaders in this sector that India can and will achieve this herculean feat?
India on the forefront
First, let us look at facts. According to a report by Indian Brand Equity Foundation (IBEF), the Indian power sector is recognised worldwide as one of the most diverse among others. Be it from conventional sources like — coal, natural gas, and oil, or from renewable sources like — wind and solar, the basis of power generation in the subcontinent varies, depending on various economical, social, and regional factors. Also, as per the Renewable Energy Country Attractiveness Index, India is ranked as the third most attractive market after USA and China.
One of the most prominent renewable source of energy that is gradually being recognised as a viable alternative to Grid is Solar Power. As stated by IBEF, India’s rooftop solar capacity has grown by up to 66% since last year and is currently measured at 525 MW. Additionally, it is estimated that there is a strong possibility for this capacity to reach over 6.5 GW soon, if it can maintain this growth rate. Furthermore, with an ever growing energy demand pan-India, it has become imperative for the government to step up and create stronger policies that can greatly benefit their mission to make India one of the largest solar markets in the world.
However, every major initiative comes with its own set of challenges. In India, change in climate and inadequate permission for land allocation to develop solar infrastructure are just some of the issues that are currently hindering the progress of solar power generation in the country. Also, pricing of domestic as well as imported solar materials vary, the latter being a cheaper alternative, thus hindering the growth and technology advancement of domestic solar manufacturers.
It is believed by many that, if something has potential to grow, then no power in the world can stop it from becoming successful. The same line of thought can be applied to the solar industry in India where many key contributors have come on board to fully support this mission. The Ministry of New and Renewable Energy (MNRE) has been credited with installing up to 51 Solar Radiation Resource Assessment stations across India to develop a comprehensive database of our country’s solar power system.
Furthermore, there are some private solar power initiators who are constantly applying their efforts to design better solar modules for off-grid as well as decentralised solar applications.
Such initiatives taken by both the government and the private sector within this realm are gradually becoming quite significant in creating a comprehensive solar power system which has potential to become the preferred energy source across India in years to come. These efforts are also being recognised by major global leaders who are now beginning to seriously consider investing in the lucrative solar energy development project in India. This was recently proven when the World Bank declared its support towards this mission, augmenting India’s solar power development with its whopping $1 billion-aid commitment. Announcing a joint proclamation with the International Solar Alliance Cell (ISA), both major organizations have declared genuine intent to globally promote solar energy.
According to a statement released by the Government of India, following are some of the major areas identified for this association:
Developing a roadmap to mobilise financing
Developing financing instruments which include — credit enhancement, reduce hedging costs/currency risk, and bond raising in locally denominated currencies that support solar energy development and deployment.
Supporting ISA’s plans for solar energy through technical assistance and knowledge transfer.
Positive step
This is an extremely progressive step taken by the World Bank as it demonstrates the fact that world leaders want to encourage India in achieving this ambitious plan and further its progress to achieve greater milestones in the near future.
Adding to this progression, State Bank of India — one of India’s foremost banking institutions — has inked agreements with the World Bank for over $625 million (around Rs 4,200 crore) worth of facility, to support grid connected rooftop solar programmes in the country.
Ensuring that these funds are allocated properly, the government has been working round the clock to boost India’s solar generation capacity. A substantial amount of these funds have been allocated solely for development of rooftop solar panels in order to achieve the set target output, viz., 40 GW. The remaining allocated funds will be gradually utilised for developing comprehensive solar power infrastructure like Solar Parks and Solar Farms.
For the first time in history, it has been witnessed that a major organisation like World Bank has come forward to invest such sizable funds for a fast developing nation. This shows that India is finally ready to become one of the biggest solar power markets in the world. Furthermore, with active participation of major growth drivers in this industry, it can be safely concluded for now that India will be able to achieve its target of generating 100 GW of solar power by 2022, enhancing its solar energy capacity manifold.
(The author is the Director of Sales and Marketing at Waaree Energies)