Solar instrumental to India’s transition to clean energy

Ten years ago, a 150-Megawatt (MW) solar plant tendered quoted the average tariff at Rs 12.16 per kilowatt-hour (kWh). Today, the tariff has down below Rs 2, as per the recent auction conducted by Solar Energy Corporation of India (SECI) in November 2020. This is the right time to build on this opportunity.

This results from steady and effective work towards making solar the centre of renewable energy production in India. Solar energy is one of the most important renewable sources of energy in India, with almost 38.79 Gigawatts (GW) of installed capacity in the country, according to the Ministry of New and Renewable Energy (MNRE). MNRE announced in January this year that solar energy has become the leading source of renewable energy in India, leaving behind wind energy (38.68 GW).

Achievements

The Government of India is working to realise its target of installing 100 GW of solar capacity by 2022. In the budget 2020-21, Nirmala Sitharaman, Union Minister of Finance, raised the customs duty on solar inverters from 5 per cent to 15 per cent to promote indigenous manufacturing. Moreover, the Ministry of Shipping is also working with the Solar Energy Corporation of India (SECI)to install grid-connected solar power plants in Indian ports such as Paradip Port Trust, Odisha; Kolkata Port Trust, West Bengal; New Mangalore Port Trust, Karnataka, etc.,

Solar energy can play an essential role in realising the country’s mission under Intended Nationally Determined Contributions (INDC) of reducing the emissions intensity by 33-35 per cent between 2005 and 2030. In this regard, the central government had instructed the Solar Corporation of India (SECI) and the National Thermal Power Corporation Limited (NTPC) not to prescribe an upper limit on the tariff in future bids for solar energy. Additionally, Sitharaman allocated Rs 1000 crore in this year’s Budget to SECI, enabling them to float 15 GW of tenders annually. MNRE also launched the Pradhan Mantri Kisan Urja Suraksha evem Utthan Mahabhiyan (PM KUSUM) scheme to install solar pumps and grid-connected solar and other renewable power plants in the country. As part of this, the central government provides a 60 per cent subsidy to farmers, and 30 per cent of the cost will be provided by the central government in the form of loans, according to MNRE.

According to a report titled ‘Ease of Doing Solar 2020’ by the International Solar Alliance (ISA), India is the most favourable market for solar energy in the world due to its ambitious sustainability targets and robust power infrastructures. India is the third-largest job provider country in the world in renewable energy after China and Brazil, according to a study by the International Renewable Energy Agency (IRENA). The solar photovoltaic segment provides the largest number of direct and indirect jobs (2,04,000) in India, followed by the on-grid solar sector, which offers more than 1 lakh jobs.

Challenges

This year, the biggest challenge to the growth of solar energy was posed by the pandemic, which hit the market and economy in all sectors. According to Mercom India, India added just 3.2 GW of solar capacity in 2020, showing a decline of 56 per cent compared to the 7.3 GW of solar energy capacity added in 2019. Large-scale solar projects have declined to the toll of 60 per cent from last year, and rooftop installations showed a drop of 35 per cent year-over-year (YOY).

According to MNRE, India receives almost 5000 trillion kWh (kilowatt-hour) of energy per year. The challenge lies in capping and storing this energy due to solar panels and batteries’ high cost.

Innovations

India has seen various innovative techniques and products in the energy sector, which consistently help the country improve solar energy production. In September 2020, Central Mechanical Engineering Research Institute, under the Council of Scientific and Industrial Research (CMERI-CSIR), developed and installed the largest solar tree in the world in Durgapur, West Bengal. It can produce 12,000-14,000 units of clean power annually and is made customisable to make it viable for different geographical locations. The largest floating solar power plant in the world is constructed on the Narmada river in Madhya Pradesh with 600 MW. The plant, being built with World Bank aid, will begin operation from 2022-23.

Community participation is critical to make solar energy the most effective form of renewable energy in the country. Kerala has presented an excellent example of community participation with the Soura project’s execution in the state. Under this, authorities convinced the people to switch to solar power with panels installed on the roof of every house. Soura project, by the Kerala State Electricity Board, aims to install solar panels on the roofs of 75,000 homes in the state which will provide for almost 10 per cent of the state’s power needs, according to KSEB.

SonamWangchuk, an innovator and the real face of PhunsukWangdu from the Bollywood blockbuster’ 3 Idiots’, has designed a solar-powered tent for the army personnel who work in extremely cold places such as Siachen and Galwan valley. The tent traps solar energy during the day and stores it to keep the soldiers warm at night without any conventional energy source and zero emissions. Such state-of-the-art innovations can bring the country at the forefront of the global market of renewable energy sources.

Global Interventions and Way Forward

In the ‘Ease of Doing Solar’ report by ISA, India was categorised as ‘Achiever’ among all 80 member countries, including the United Arab Emirates, Brazil and Saudi Arabia. India is cruising its way towards becoming the world’s solar giant with continuous efforts from both people and policymakers. International Solar Energy has also estimated that at the current pace, the share of solar energy in India’s power generation basket will be equal to that of coal-fired by 2040. Power from coal currently constitutes almost 70 per cent of the country’s total energy consumption. Complimenting this, PM Narendra Modi has also said that the central government aims to produce 40 GW of solar power from rooftop installations in the next 1.5 years. Active policy intervention from the government is the prerequisite for the success of a mission in a democracy. The world recognises India’s potential in solar power generation as the World Bank has also planned guarantee schemes worth $100 million in solar rooftop installations.

Conclusion

Solar energy is quickly taking the front seat in leading the world towards a sustainable source of renewable energy. With active state interference and community participation, solar energy will soon become the prime source of power. The use of renewable sources is essential to realise the global mission of curbing Green House Gas emissions and stopping Climate Change. Solar energy and innovations in this sector will play a vital role in this.