Covid19 — A turning point for Indian Solar Sector?
Tags: Covid 19, Solar Panel Installation, Solar Energy, Government Of India, India

The Re-Beginnan | Volume 2 | Issue 5

India was the biggest supplier for solar modules in the world and controlled 70–80% of the market till 2011. Today, the scenario has changed with India importing ~80–90% of solar modules from China, as domestic modules are not cost effective. India’s annual demand for solar cell manufacturing is 20 GW (Gigawatt) while its current capacity is 3 GW. India currently exudes a manufacturing capacity of about 10 GW (Megawatt) for modules, 3 GW for solar cells, and 10 GW for ingots wafer. Ramifications on the country’s energy security and economy will be sever if domestic manufacturing and production of solar is delayed further.

Image Credits: Designed by upklyak / Freepik

Due to the pandemic, there is a disruption in supply of solar modules and components from China, raising uncertainties in achieving the target of 100 GW of grid-connected solar capacity by 2022 under the Jawaharlal Nehru National Solar Mission. Impact of the pandemic is evident in the reduction in estimated solar capacity of 43 GW for the period 2020–2024 to 35 GW.

Moreover, in FY 2021, India is estimated to lose 2–3 GW capacity expansion, in addition to increasing operating costs for developers and contractors in the sector.

The Golden Opportunity!

This is a golden opportunity, as highlighted by the Hon’ble Prime Minister, for India to be ‘Self-reliant’ through sustainable domestic manufacturing of solar modules, components and ancillary products.

India is involved in the later process of module assembly and not the former as the country lags behind in silicon and ingot production due to lack of technological expertise and its capital-intensive nature.

Changes to the policy frameworks and additional financial assistance to the solar energy sector remain critical for leveraging on the situation and capitalising on the opportunity. 50,000 direct and 125,000 indirect jobs can be generated via domestic manufacturing in India. This could provide supply security for the next 5 years.

Enablers to the Opportunity

Power and Renewable Energy Minister Mr. R.K. Singh has stated the introduction of a new Electricity (Amendment) Bill 2020 in the coming session of the parliament. The bill aims to ensure consumer centricity, promotion of ease of doing business, sustainability of the power sector and promotion of green power. It also aims to introduce transparency and accountability to safeguard the interests of consumers and to ensure healthy growth of the power sector. The states can continue to provide subsidies in the power sector but through Direct Benefit Transfer. This will help the DISCOMS (Distribution Companies) to manage operations better — make timely payments to GENCO (Generating Companies), improve and maintain distribution infrastructure and be able to provide quality electricity to people.

The Ministry of New and Renewable Energy (MNRE) is in talks with consulting firms in regards to the implementation of ‘One Sun One World One Grid’ (OSOWOG). OSOWOG envisions to have an interconnected power transmission grid for supply of clean energy. The mantra of ‘OSOWOG’ is ‘The Sun Never Sets’ and is always up at a particular geographical location around the globe at any given point of time. The role of MNRE is pivotal in synchronizing more than 140 countries across the far east (Myanmar, Vietnam, Thailand, Lao, Cambodia etc) and the far west (Middle East and the Africa Region) with India at the fulcrum. OSOWOG would be divided into 3 phases — In Phase I the Middle East, South Asia and South East Asia would be interconnected, in Phase II renewable and solar rich regions would be inter-connected and in Phase III global interconnection of power transmission would take place to achieve the OSOWOG vision. This will help all participating countries to attract investments in renewable energy sector and also in optimally utilizing technology, skills and finances. The benefits that we would reap out of OSOWOG would help us in reducing poverty along with meeting water, sanitation, food and other socioeconomic challenges. It would also help to come up with cost effective projects having increased efficiency and proper asset utilization.

The GoI is planning to issue solar tenders of 20 GW by June 2021 to achieve the National Solar Mission target of 100 GW solar capacity. Ultra-mega solar power and solar park projects are underway targeting 40,000 MW capacity. Hon’ble Finance Minister Nirmala Sitharaman laid emphasis on use of solar energy in farming under the Pradhan Mantri — Kisan Urja Suraksha evam Utthaan Mahaabhiyan (KUSUM). She extended the scheme to 20 lakh farmers to setup standalone solar pumps along with helping 15 lakh farmers to solarise their grid agricultural pumps. The scheme will also enable farmers to set up grid connected solar power generation capacity on barren and fallow land. With a total central financial support of INR 34,422 crore this scheme aims to achieve 25,750 MW of solar capacity by 2022.

Solar Energy Schemes by the central Government (Schemes)

Off-grid and Decentralised solar PV Applications Programme- Phase III Pradhan Mantri — Kisan Urja Suraksha evam Utthaan Mahaabhiyan (PM KUSUM) Atal Jyoti Yojana (AJAY): Phase II Scheme on “Scale Up for Access to Clean Energy for Rural Productive Uses” Seven Million Solar Study Lamp Scheme for School Going Children

Off-Grid and Decentralised Concentrated Solar Thermal (CST) Technologies for Community Cooking, Process Heat and Space Heating & Cooling Application in Industrial, Institutional and Commercial Establishments

Conclusion

The Covid19 pandemic is a revelation for the India’s solar energy sector to become ‘Atmanirbhar’. Manufacturing of solar components can be ramped up for India to regain its title of ‘The Solar Exporter of The World’. The government needs to act towards this vision and extend full support to this sector by introducing reforms in policy frameworks and financial support.