What Is India's Solar Power Target By 2030?

Overview:

India is the world's third largest user of electricity and the world's third largest producer of renewable energy, with renewables accounting for 38% of the energy capacity constructed in 2020 (136 GW out of 373 GW). According to Ernst & Young's (EY) 2021 Renewable Energy Country Attractiveness Index (RECAI), India is rated third, after the United States and China. In November 2021, India had 150 GW of renewable energy capacity, including solar (48.55GW), wind (40.03GW), small hydro (4.83GW), bio-power (10.62GW), and big hydro (46.51GW), as well as nuclear (6.78GW). India has pledged to build 450 GW of renewable energy capacity by 2030.

India committed to producing 50% of its total power from non-fossil fuel sources by 2030 in the Paris Agreement's Intended Nationally Determined Contributions objectives in 2016. The Central Power Authority of India established a goal of generating 50% of total electricity from non-fossil fuel sources by 2030, in 2018. India has also set a goal of generating 175 GW of renewable energy by 2022 and 500 GW by 2030.

As of September 2020, 89.22 GW of solar energy is already operational, 48.21 GW of projects are in different phases of execution, and 25.64 GW of projects are in various stages of bidding. In 2020, three of the world's top five biggest solar parks were in India, including the world's largest, the 2255 MW Bhadla Solar Park in Rajasthan, the world's second-largest, the 2000 MW Pavagada Solar Park in Tumkur in Karnataka, and the 100 MW Kurnool in Andhra Pradesh. Wind power in India has a robust manufacturing base, with 20 manufacturers producing 53 distinct wind turbine models of world-class quality ranging in size from 1 MW to 3 MW, with exports to Europe, the United States, and other nations. Solar, wind, and run-of-the-river hydroelectricity are environmentally friendly and less expensive power sources that are used as "must-run" sources in India to meet base load, while polluting and import-reliant coal-fired power is increasingly being shifted from "must-run base load" power generation to load-following power generation (mid-priced and mid-merit on-demand need-based intermittently-produced electricity) to meet peaking demand only. Some of India's daily peak demand is already being met by renewable peaking hydropower generation. Solar and wind power with 4-hour battery storage systems are already cost-competitive in India as a source of dispatchable production when compared to new coal and gas facilities.

As of November 2021, India's installed renewable energy (RE) capacity is at 150.54 GW, including solar (48.55 GW), wind (40.03 GW), small hydropower (4.83 GW), bio-power (10.62 GW), and big hydropower (46.51 GW). The installed capacity of nuclear energy-based power is 6.78 GW.

"In keeping with the Prime Minister's declaration at the recently ended CoP26," the ministry noted, "the government is committed to reaching 500 GW of installed energy capacity from non-fossil fuel sources by 2030."

Among all the global economies, India has had the greatest rate of increase in renewable energy capacity addition during the previous 7.5 years, with renewable energy capacity (including large hydro) increasing 1.97 times and solar energy expanding more than 18 times.

The International Solar Alliance (ISA), founded by India, has grown to include 121 nations. In fact, India was the first nation in the world to establish a ministry for non-conventional energy resources (the Ministry of New and Renewable Energy (MNRE) in the early 1980s). The Solar Energy Corporation of India (SECI), a public-sector company, is in charge of developing India's solar energy industry. The Ministry of Power is in charge of hydroelectricity, which is not included in the MNRE objectives.

Focus on Solar Power:

India is heavily populated and has high sun insolation, making it a good location for solar power. The government of India recommended launching the Jawaharlal Nehru National Solar Mission as part of the National Action Plan on Climate Change in November 2009. Former Prime Minister Manmohan Singh launched the initiative on January 11th, 2010 with a goal of 20GW of grid capacity by 2022 and 2GW of off-grid installations; this aim was subsequently boosted to 100 GW by the same date under the Narendra Modi administration in the 2015 Union budget of India. Achieving this National Solar Mission goal will help India cement its position as a world leader in solar power production. The Mission's goal is to attain grid parity (electricity provided at the same cost and quality as on the grid) by 2022. The National Solar Mission is frequently marketed and known colloquially as "Solar India." The mission's previous goals were to install 1,000 MW of electricity by 2013 and to cover 20106 m2 (220106 sq ft) with collectors by the conclusion of the mission's final phase in 2022.

On November 30, 2015, India's Prime Minister Narendra Modi and France's President Francois Hollande inaugurated the International Solar Alliance. The ISA is an alliance of 121 solar-rich nations located mostly or entirely between the Tropics of Cancer and Capricorn, with many countries outside of this range also participating. The ISA's mission is to promote and develop solar power among its members, with the goal of mobilizing $1 trillion in investment by 2030. The Indian Oil Corporation indicated in August 2019 that it intends to spend 250 billion rupees on renewable energy projects.

Because most of the nation lacks an electrical infrastructure, one of the initial uses of solar power was for water pumping, to begin replacing India's four to five million diesel-powered water pumps, each of which consumes around 3.5 kilowatts, and off-grid lighting. Some major projects have been suggested, and a 35,000 km2 (14,000 sq mi) portion of the Thar Desert has been designated for solar power plants capable of producing 700 to 2,100 gigatonnes. Solar power in India has grown at a rate of 113% year on year, with prices now hovering around 4.34 (5.8 USD) per kWh, roughly 18% less than the average price for energy provided by coal-fired facilities.

As part of India's ambitious solar initiative, the national government has established a $350 million fund, and Yes Bank will lend $5 billion to finance solar projects (c. January 2018). The bidding procedure for adding 115 GW to renewable energy levels in January 2018 was completed by the end of 2019–2020.

India also has the world's first and only 100 percent solar-powered airport, which is situated in Cochin, Kerala. In Guwahati, Assam, India, there is also a completely solar-powered railway station. The first and biggest floating solar power plants in India were built in the Banasura Sagar reservoir in Wayanad, Kerala.

The Indian Solar Loan Programme, which is backed by the United Nations Environment Programme, has received the coveted Energy Globe World Award for Sustainability for its contribution to the establishment of a consumer financing program for solar household power systems. Over the course of three years, more than 16,000 solar household systems have been funded via 2,000 bank branches, mostly in rural parts of South India where the energy infrastructure has not yet reached.

The Indian Solar Loan Programme, which began in 2003, was a four-year collaboration between UNEP, the UNEP Risoe Center, and two of India's leading banks, Canara Bank and Syndicate Bank.

Investments:

Private sector investment is driving India's renewable energy initiative. According to the REN21 Renewables 2020 Global Status Report, renewable energy programs and projects in India garnered US $64.4 billion in investment between 2014 and 2019. In 2019 alone, US $11.2 billion was invested. New prospects have evolved, as has a whole new business environment. Indian firms have started to look at global stock markets as a source of funding. India is increasingly becoming a preferred location for renewable energy investment.

According to the DPIIT's Foreign Direct Investment (FDI) statistics cell, the Indian "Non-Conventional Energy" industry received roughly US $7.27 billion in FDI from 2014-15 to June 2021. A total of US $797.21 million in FDI was attracted during 2020–21. According to the country's liberal foreign investment policy, foreign investors may participate in joint ventures with an Indian partner for financial and/or technical cooperation as well as to build up renewable energy-based power production projects. Under the government's current FDI policy, up to 100% of foreign equity investment qualifies for automatic approval.

Challenges and Opportunities:

The India solar sector is significantly reliant on imports of critical components such as solar cells, modules, and inverters. Every year, the sector spends billions of dollars on imports. According to official statistics, India imported $2.5 billion in solar wafers, cells, modules, and inverters in 2019-2020. The government has been attempting to increase indigenous manufacturing via a variety of measures, including raising import duties. However, India's domestic manufacturing capacity is currently unable to meet the demand for the installation of 25 GW of solar power capacity per year. India's yearly installed solar photovoltaic manufacturing capacity is now 3 GW for solar PV cells, 10 GW–15 GW for solar PV modules, and 5 GW for solar inverters, with no manufacturing capacity for "polysilicon/wafer/ingots," another essential component in solar power systems.

Prior to the Paris Agreement, India said in 2015 that it would attain 175 GW of renewable energy by 2022, including 100 GW of solar. The previous solar power objective was just 20 GW, so this was a significant rise in the aim. At the moment, India has roughly 95 GW of installed renewable electricity, with solar accounting for 40.5 GW of that total, which is dispersed throughout the nation. Adoption of renewable energy on a wide scale, particularly a strong push for solar energy, is critical for India's clean energy transition ambitions. Despite India's tremendous expansion in the solar sector, the path ahead is fraught with obstacles. However, the quick and intended development mentioned by India's Prime Minister Narendra Modi would need millions of solar modules, and each solar module would necessitate a consistent supply chain of all elements necessary for its fabrication as well as for batteries.

According to Vinay Rustagi, managing director of Bridge to India, a renewable energy consultant, around 3,000 solar modules are required for every megawatt of installed solar electricity. A few years ago, there were roughly 4,500 solar modules for every MW of solar electricity, Rustagi said, referring to Mongabay-India. However, with an increase in module size and development in technology and efficiency, the necessary numbers have dropped.

On average, 1 MW of installed renewable power capacity necessitates the use of 3000 solar modules. Every year, 75 million solar modules are required for a capacity of 25 GW. This implies that India, which is attempting to increase local production, may still rely heavily on imports of solar modules from other nations.

Conclusion:

India is aiming for 450 gigatonnes of installed renewable energy capacity by 2030, with solar accounting for the lion's share of that figure at 280 gigatonnes (more than 60%). Every year for the next ten years, about 25 GW of solar energy capacity must be constructed to guarantee that the sun continues to shine over the country's dawn sector.

The aim also implies that India must navigate global supply chain challenges, regardless of geopolitical realities or mining concerns affecting manufacturers of important minerals used in the solar sector.