Date: 16/12/2022

Relevance: GS-3: Infrastructure: Energy, Ports, Roads, Airports, indigenization of technology and developing new technology.

Key Phrases: India’s Solar Capacity Addition, Rooftop Solar System, Off Grid Solar System, On Grid Solar System, Rooftop Solar, Financing Issues, Power Generation, Grid Tariffs, Off-Grid Projects, Circular Economy Model, Solar Photovoltaic Panel Waste

Context:

• Based on a commitment to address the global climate crisis, India has promised to source nearly half its energy from non-fossil fuel sources by 2030 and, in the shorter term, source at least 60% of its renewable energy from solar power.
• Henceforth, at the core of India’s energy transformation is its bet on solar power although a report has suggested that India faces significant obstacles in this quest.

Key Highlights:

• A key central policy to source solar power is facilitating the establishment of large solar parks since small solar power projects usually translate to higher per-unit production costs.
• Thus, in 2014, the Centre announced the Solar Parks and Ultra-Mega Solar Power Projects Policy to facilitate the creation of large parks.
• The initial plan was to set up 25 parks capable of generating at least 20,000 MW by 2019.
• In 2017, the Government scaled this to 61 parks with a target of 40,000 MW.
• It emerges, however, as of 2022, that only a fourth of the capacity has been achieved, that is, projects worth 10,000 MW have been commissioned.
• Four projects have been cancelled by the Centre due to tardy progress.

Roadblocks in the Commissioning of Solar Projects:

• Challenges in acquiring land with a clear title;
• Setting up the infrastructure necessary to transmit power produced at these parks to the grid;
• Backward integration in the solar value chain is absent as India has no capacity for manufacturing solar wafers and polysilicon.
• Environmental issues in Rajasthan and Gujarat, where projects have been halted because their transmission lines encroach upon the habitat of the critically endangered Great Indian Bustard.
• There have also been conflicts with local communities and biodiversity protection norms.

Is India on track to achieve its renewable energy targets?

• Notwithstanding its claims on international platforms that it is on track to meet renewable energy targets, it is no secret that India is lagging behind.
• By the end of 2022, India had committed to having in place 1,75,000 MW of renewable energy capacity, with 1,00,000 MW from solar power.
• However, only around 61,000 MW of such capacity has actually been installed.

State of India’s Domestic Solar Module Manufacturing Capacity:

• Domestic manufacturing capacities in the solar sector do not match up to the present potential demand for solar power in the country.
• Crisil’s report on the subject highlights that as on March 31, 2021, India had 3 GW capacity for solar cell production and 8 GW for solar panel production capacity.
• Low manufacturing capacities, coupled with cheaper imports from China have rendered Indian products uncompetitive in the domestic market.

Embracing A Circular Economy Model For Solar Systems:

• This would allow solar photovoltaic (PV) panel waste to be recycled and reused in the solar PV supply chain.
• By the end of 2030, India will likely produce nearly 34,600 metric tonnes of solar PV waste.
• The International Renewable Energy Agency (IRENA) estimates that the global value of recoverable materials from solar PV waste could exceed $15 billion.
• Currently, only the European Union has taken decisive steps in managing solar PV waste.
• India could look at developing appropriate guidelines around Extended Producer Responsibility (EPR).
• It means holding manufacturers accountable for the entire life cycle of solar PV products and creating standards for waste recycling.
• This could give domestic manufacturers a competitive edge and go a long way in addressing waste management and supply-side constraints.

Conclusion:

• For a few years now, there has been considerable hype around solar power achieving grid parity in India meaning power companies are able to sell it at a price lower or as much as conventional sources — but this does not account for the subsidies or concessions front-loaded by the Government.
• While India should continue to expand its economy on the back of renewable energy, the Government must take a hard look at whether renewable power, solar, wind or nuclear, meets standards of economic viability and environmental sustainability.
• Solar power may be a valuable tool in India’s energy transformation story, but it cannot be the panacea for every need

Source: The Hindu

Mains Question:

Q. How far do you agree that India is on track to achieve its renewable energy targets? Justify your answer. (150 words).