Date : 25/07/2023

Relevance –

• GS Paper 2- Government policy and interventions
• GS Paper 3 – Renewable Energy

Keywords – MNRE, G20, Energy Transition

Context –

The Ministry of New and Renewable Energy (MNRE), in collaboration with the International Solar Alliance, recently presented a report titled 'Roadmap of Solar Energy for Universal Energy Access.' This report was developed during India's G20 presidency in 2023 and emphasizes the significant potential of solar energy in expanding electricity access and delivering socio-economic advantages on a global scale.

The unveiling of the roadmap took place during the 4th G20 Energy Transition Working Group held in Goa. The main objective of this roadmap is to achieve Universal Energy Access by the year 2030, and it particularly highlights the crucial role that solar mini grids can play in promoting sustainable energy solutions.

Key Highlights of the Report

• The roadmap places significant emphasis on solar energy as a pivotal solution to achieve Universal Energy Access by 2030. According to the findings, approximately 59% (396 million people) of the unelectrified population can be best served through solar-based mini-grids. Another 30% (203 million people) can gain electricity access through grid extensions, while the remaining 11% (77 million people) can benefit from Decentralized Renewable Energy solutions.
• To accomplish these electrification goals, an estimated total investment of around USD 192 billion is required. This investment will be distributed among solar-based mini-grids, solar-based decentralized renewable energy solutions, and grid extensions. To support mini-grid deployment, a viability gap funding of about 50% (USD 48.5 billion) is deemed necessary.
• The roadmap emphasizes the crucial need to address challenges related to policies, regulations, and financial risks to ensure the successful and sustainable scaling up of solar energy solutions. It stresses the importance of technical and financial expertise, skill development, and awareness creation in regions facing energy access deficits to drive effective electrification initiatives.
• Furthermore, the report advocates for increased investments, ecosystem development, and optimal resource utilization to accelerate universal energy access. It particularly highlights the integration of solar PV-based cooking solutions with electrification initiatives as a means to enhance energy access in remote and underdeveloped areas. This integrated approach is seen as essential to meet the electrification needs of various regions and demographics across the globe.

Solar Mini-grids

• Solar mini-grids are small-scale electricity generation and distribution systems that utilize solar photovoltaic (PV) technology to produce electricity and store it in batteries. These systems are designed to supply electricity to communities or areas that either lack access to the main power grid or experience frequent power outages.
• The significance of solar mini-grids lies in addressing the global challenge of around 9% of the population lacking access to electricity, particularly in Sub-Saharan Africa and rural regions. These mini-grids offer reliable and affordable electricity to such communities, improving their overall living conditions.
• Furthermore, solar mini-grids can also contribute to clean cooking solutions, as over 1.9 billion people worldwide lack access to clean cooking. By powering electric stoves and other cooking appliances, solar mini-grids promote cleaner and more sustainable cooking practices.
• The benefits of solar mini-grids include their reliability, as solar energy, coupled with energy storage systems, ensures a steady source of electricity even during natural disasters or power disruptions. Additionally, solar energy is renewable and environmentally friendly, reducing greenhouse gas emissions and contributing to climate change mitigation.
• Scalability is another advantage of solar mini-grids, as they can be adjusted to meet the energy demands of a community, making them a flexible and adaptable solution for energy access.
• In terms of affordability, solar energy proves cost-effective compared to diesel generators in remote areas or islands where expensive fuel transportation drives electricity costs as high as Rs. 36 per unit. Adopting solar power offers a sustainable and economically viable solution to reduce electricity expenses in such regions. The deployment of decentralized solar is supported through Feed-in Tariffs and tariff restructuring for grid-connected capacity, while the expected reduction in battery costs through large-scale procurement further encourages the development of solar mini-grids.

Challenges in Deploying Solar Energy for Universal Energy Access

• The deployment of solar energy for achieving universal energy access faces several challenges that need to be addressed to ensure its successful implementation.
• Policy and Regulatory Hurdles: The lack of enabling policies and regulations hampers the smooth deployment of solar energy solutions. Clear and supportive policies are essential to encourage investment and promote the widespread adoption of solar technologies.
• Equipment Manufacturing and Execution Challenges: Challenges in equipment manufacturing, on-ground execution, and maintenance can affect the affordability and sustainability of solar projects. Ensuring the availability of quality equipment and skilled manpower is crucial for the long-term success of solar energy initiatives.
• Dust Accumulation on Solar Panels: The accumulation of dust on solar panels is a common issue that reduces their efficiency. It can lead to a decrease in output by up to 30% in a month, necessitating regular cleaning. However, the current water-based cleaning methods consume large amounts of water, which is not sustainable in water-scarce regions.
• Waterless Cleaning Methods: While waterless cleaning methods can be an alternative, they are labor-intensive and can cause scratching on the solar panels. Finding efficient and eco-friendly cleaning solutions is essential to maintain the performance of solar installations.
• Financial Risks in Underdeveloped Regions: High financial risks in underdeveloped regions can increase project costs for developers, making it challenging to bridge the gap between consumer affordability and supplier viability. Addressing financial risks and providing incentives for solar investments is crucial for encouraging private sector involvement in these regions.
• Need for Technical and Financial Expertise: Implementing and maintaining solar mini-grids requires technical and financial expertise. Building local capacity and providing training in these areas is vital for the successful operation of solar energy projects.
• In conclusion, addressing these challenges is essential for the effective deployment of solar energy solutions to achieve universal energy access. Policymakers, stakeholders, and the private sector must collaborate to overcome these obstacles and unlock the full potential of solar energy in providing sustainable and affordable electricity to all.

Government Schemes to enhance solar energy production –

1. International Solar Alliance
2. National Solar Mission
3. Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM)
4. One Sun, One World, One Grid (OSOWOG)
5. Solar Park Scheme
6. Rooftop Solar Scheme

Way Forward

Efforts are being made to support countries with limited access to energy in developing enabling policy and regulatory frameworks. By establishing conducive conditions, these countries can promote the implementation of energy access projects and facilitate the widespread adoption of sustainable energy solutions. One approach involves encouraging private-sector involvement in these initiatives to drive innovation, efficiency, and expertise in the energy sector.

In the quest to enhance energy access, there is a growing focus on integrating solar PV-based cooking solutions with electrification projects. By incorporating clean and renewable energy sources for cooking, communities can not only gain access to electricity but also adopt cleaner cooking practices, promoting a comprehensive and sustainable approach to energy solutions.

To attract investments in renewable energy projects, various incentives and subsidies are being offered. These financial incentives aim to make clean energy projects more financially viable and appealing to investors. Additionally, innovative financing models, such as green bonds, are being explored to mobilize funds for energy access initiatives.

Another strategy to improve energy reliability and cost-effectiveness involves hybridization with wind or biomass energy. By combining solar PV systems with other renewable energy sources, mini-grids can benefit from diverse energy inputs, ensuring a more stable and continuous power supply. This hybrid approach not only enhances mini-grid reliability but also helps lower power equipment costs, making energy access solutions more accessible and sustainable in the long term.

Source – Indian Express