Can 100 GW solar target be realised?

When the previous government launched the Jawaharlal Nehru National Solar Mission (JNNSM) in early 2010, the target of 22 GW by 2021-22 was considered unrealistic by most solar experts. Solar was considered too expensive for large-scale deployment.

However, the last few years have seen a dramatic decline in solar power costs, from Rs 20 per unit to nearly Rs 5.5 per unit. This has made the government perceive solar energy as an economically rationale choice for the country. Thus, it has raised the solar targets to 100 GW out of the proposed 175 GW of renewable energy. If these targets are met, India will join the ranks of the world's solar powerhouses in terms of installed capacity.

The solar targets have been divided into grid-connected solar parks and large plants, Rooftop PV (RTPV) systems, 5-10 MW ground-mounted projects and off-grid installations.

The increased solar targets have positive economic implications for India. They envisage an investment of around $100 billion in the sector over the next seven years. This opens up the space for foreign investments (especially from China, Japan, Germany and the US) and encourages indigenous manufacturing of solar components.

With 100 GW of capacity installed, around nine percent of India's electricity requirement will be met by solar alone (currently 0.5 percent). India would then surpass Germany, where solar energy currently accounts for six percent of total power. This highlights India's seriousness in reducing its carbon emissions by increasing the share of renewables in its energy mix. Showcasing this kind of commitment to climate mitigation will give India a strong position at the upcoming 21st Conference of the Parties (COP 21) in Paris.

However, increasing India's solar capacity from 3.3 GW to 100 GW in seven years will be a challenge.

Currently, large solar PV plants make up more than 90 per cent of the installed capacity in India. This is because established developers get easy access to finance, security of payment and simple operation and maintenance (O&M). Despite these incentives, certain technical and economic barriers still need to be addressed for ramping up large-scale plants.

Owing to the intermittent nature of solar energy, large-scale deployment will require the development of grid management and load balancing mechanisms in co-ordination with State Load Dispatch Centres and R&D institutions.

To ensure that state utilities have an incentive to deploy solar energy, Renewable Purchase Obligations (RPOs) need to be stringently enforced.­­­

To counter variability and fluctuations, utilities need to strengthen their distribution transformers. Relevant stakeholder interactions should be held in every state to assess the financial health of utilities, project annual capacity addition targets and establish guidelines for utilities to upgrade their existing infrastructure. This will lead to the formulation of appropriate net-metering and Feed in Tariff (FiT) rates.

R&D institutions need to perform accurate resource assessments using Geographical Information Systems (GIS) to understand which rooftops are best suited for RTPV systems. Researchers at Bengaluru's Center for Study of Science, Technology and Policy (CSTEP) are in the process of conducting such studies for India.

Major restructuring is required in the off-grid sector. These projects should be linked with value added services such as rural industries, cold storage units and pumping irrigation water. Streamlining the subsidy disbursal mechanism via one ministry and providing incentives such as tax holidays and minimum return guarantees can encourage private investment.

If these challenges in the three sectors are addressed in a structured and phased manner, then India's ambitious solar target of 100 GW for 2021-22 is achievable and certainly desirable.

By: IANS