Solar Energy
Introduction Solar Energy Development in India
India is a country that has the third renewable energy market in the world and has enormous potential for developing solar energy. Unmitigated, India has set an ambitious target of achieving 175 GW of renewable energy capacity by the end of 2022, which increases to 500 GW by 2030.
The worldwide demand for electricity continues to increase with increasing living standards, supported by rapid urbanization. As a result, there has been a surge in demand for renewable energy since conventional power generation methods such as thermal power plants have gradually run out.
The renewable energy market continues to grow through efficient collaboration between the government and the private sector. In India, solar and wind are the most popular sources of renewable energy.
India's geographical location is very favorable for producing solar energy. There is solar radiation most of the year and almost all parts of India receive more than 4 kWh of solar radiation per square meter which adds up to 3000 hours of sunshine per year.
Approximately 3.2 hectares of land are required for every MW of installed solar power capacity. India is therefore an ideal country for the development and installation of utility scale power plants due to the availability of potentially exploitable resources. This makes India the third most attractive renewable energy market in the world alongside China and the United States.
The advancement of solar power in India can be attributed to a combination of policy interventions, favorable market conditions, and the geographical fact that India gets around 300 sunny days a year – ideal for solar power to thrive.
The Indian government started the development of solar energy since 2010 by launching the National Solar Mission (NSM). Its aim is to promote sustainable ecological growth while addressing India's energy security challenges. It will also be India's major contribution to global efforts to confront the challenge of climate change.
Reporting from Theprint, in the same year, India only had an installed solar energy capacity of 10 megawatts (MW). One GW equals 1,000 megawatts. The scheme seeks to establish an environment that supports the penetration of solar technology in the country at both a centralized and a decentralized level.
According to the decadal review of India's solar policy by the Energy, Environment and Water Council, NSM initiated India's expansion into solar by addressing risks in investment and facilitating long-term power purchase agreements with project backers. Back then, the cost of a single unit of solar power was around Rs 10 to 12 – many times higher than the cost of conventional electricity. Costs have fallen by more than 80 per cent, to around Rs 2-3 per unit in 2020.
Other steps that are helping India transition to solar power include introducing solar parks when deployment becomes slow and difficult, increasing renewable purchase obligation (RPO) targets to create the required demand, creating and supporting Indian Solar Energy Companies to address counterparty risks.
The RPO is a state level target to ensure renewable energy is part of the energy mix. A scheme to set up solar parks — large-scale utility projects aimed at generating large amounts of electricity — has facilitated land acquisition, which in turn facilitated the growth of solar energy.
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