case study on solar energy in india

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Article Contents

Introduction, 1 overview: energy conservation in india, 2 literature survey, 3 research and collection of data, 4 material and methods, 5 conclusion, conflict of interest.

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Bridging the energy gap of India’s residential buildings by using rooftop solar PV systems for higher energy stars

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Rakesh Dalal, Kamal Bansal, Sapan Thapar, Bridging the energy gap of India’s residential buildings by using rooftop solar PV systems for higher energy stars, Clean Energy , Volume 5, Issue 3, September 2021, Pages 423–432, https://doi.org/10.1093/ce/zkab017

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The residential-building sector in India consumes >25% of the total electricity and is the third-largest consumer of electricity; consumption increased by 26% between 2014 and 2017. India has introduced a star-labelling programme for residential buildings that is applicable for all single- and multiple-dwelling units in the country for residential purposes. The Energy Performance Index (EPI) of a building (annual energy consumption in kilowatt-hours per square metre of the building) is taken as an indicator for awarding the star label for residential buildings. For gauging the EPI status of existing buildings, the electricity consumption of residential buildings (in kWh/m 2 /year) is established through a case study of the residential society. Two years of electricity bills are collected for an Indian residential society located in Palam, Delhi, analysed and benchmarked with the Indian residential star-labelling programme. A wide EPI gap is observed for existing buildings for five-star energy labels. Based on existing electricity tariffs, the energy consumption of residential consumers and the Bureau of Energy Efficiency (BEE)’s proposed building ENERGY STAR labelling, a grid-integrated rooftop solar photovoltaic (PV) system is considered for achieving a higher star label. This research study establishes the potential of grid-connected rooftop solar PV systems for residential buildings in Indian cities through a case study of Delhi. Techno-economic analysis of a grid-integrated 3-kWp rooftop solar PV plant is analysed by using RETScreen software. The study establishes that an additional two stars can be achieved by existing buildings by using a grid-integrated rooftop solar PV plant. Payback for retrofit of a 3-kWp rooftop solar PV plant for Indian cites varies from 3 to 7 years.

A case study in Delhi, India establishes the potential of grid-connected rooftop solar PV systems for residential buildings. Techno-economic analysis of grid integrated, 3 kWp rooftop solar systems estimates a payback period from 3 to 7 years.

India, with a population of >1.3 billion, is the second-most populous country in the world and the third-largest economy in terms of Purchasing Power Parity. India has set a target economy of USD5 trillion by the year 2024–25 with an annual growth rate of 9%. India’s sustained economic growth in this period will require an enormous energy supply. Key indicators of the economy, population and energy between the years 2001 and 2017 are shown in Fig. 1 . India intends to reduce the emissions intensity of its gross domestic product by 33–35% by 2030 from the 2005 level [ 1 ]. For achieving this target, improvement in energy efficiency is required in all sectors, especially in the building sector, as the building sector in India consumes >30% of the total electricity [ 2 ].

Trend in the economy, population and energy [ 29 ]

The gross electricity consumption in residential buildings has been rising sharply over the years. Building energy-consumption figures rose to ~260 TWh in 2016–17, which was ~55 TWh in 1996–97 [ 3 ]. It is estimated that this will further increase in the range of 630–940 TWh by 2032 [ 4 ].

To address energy efficiency in the commercial building sector, the Energy Conservation Building Code (ECBC) was launched in 2007 [ 5 ]. The code applies to buildings with a connected load of ≥500 kW or a contact demand of ≥600 kVA. In 2017, ECBC 2007 was modified to ECBC 2017 and applies to buildings or building complexes that have a connected load of ≥100 kW or a contract demand of 120 kVA. The ECBC provides minimum requirements for the energy-efficient design and construction of buildings. The code was extended to the residential buildings through ECBC 2018-R (Eco-Home guidelines) and it applies to all the residential-use buildings built on a plot area of ≥500 m 2 .

The star-labelling programme for all single- and multiple-dwelling residential units has been initiated by the Bureau of Energy Efficiency (BEE) [ 6 ]. There is no minimum requirement for the area or connected load (kW) for a building dwelling unit to be covered under this labelling programme. The Energy Performance Index (EPI) of a building (annual energy consumption in kilowatt-hours per square metre of the building) is taken as an indicator for the star label of the building. The EPI includes three components, namely E1, E2 and E3. E1 and E2 include building envelope characteristics, lighting systems and comfort systems (air conditioners (ACs)). The calculation is made with the assumption that 25% of the space in the building is air-conditioned with 24°C as the set point (E1) and the remaining 75% of the space is naturally ventilated (E2). The EPI (E3) for other building appliances such as microwave ovens, grinders, refrigerators, TVs, water pumps, washing machines, etc. is considered to be in the range of 7–9. The EPI required for star labelling for different climate regions is tabulated in Table 1 considering the value of E2 as 8.

Residential-building EPI (X) for star labelling [ 6 ]

The objective of this research study is to calculate the energy potential of grid-connected photovoltaic arrays on residential-building roofs for achieving the desired five-star energy labelling. The primary data come from a survey of the energy consumption of urban households located in Delhi and consumers are categorized based on their annual energy consumption. For the selection of appropriate rooftop solar PV plants, the energy consumption of the buildings, the electricity tariffs for the residential sector, the government subsidy on rooftop solar PV and the BEE’s proposed star labelling for residential buildings were considered. We were thus able to estimate the economic potential of rooftop solar PV systems by utilizing the unused roof area of the building. The final section of the article presents the conclusions that can be derived from this study.

This is probably the first such study to have explored the star labelling of existing residential buildings in India; it was searched in Google Scholar with different combinations of words and no such study was found that covered this problem statement. The findings of the study may be considered for fine-tuning policies and developing relevant intervention tools for existing building occupants for achieving the building star label through government rooftop solar PV subsidies.

India’s basic framework for electricity generation and supply was provided by the Electricity Act, 1910. After independence in 1947, social progress and development were given impetus and policies were directed for ensuring the supply of energy to all stakeholders. Energy-conservation measures were started in the year 1970 when the primary focus was to reduce the consumption of petroleum. In 1981, the Inter-Ministerial Working Group on Energy Conservation (IMWG), through 200 energy audits, predicted energy savings of Rs 19.25 billion by investing in energy-saving technologies. In 2001, the Energy Conservation Bill was passed and the Energy Management Centre was reconstituted as the BEE in 2002 [ 7 ].

The increasing population, energy shortage and awareness of environment-related issues (such as greenhouse-gas emissions) have raised concerns worldwide about current trends in energy consumption. In India, the estimated electricity consumption in the last 10 years increased from 612 645 GWh (2009–10) to 1 158 310 GWh (2018–19), which corresponds to a compound annual growth rate (CAGR) of 6.58%. The per-capita energy consumption increased from 19 669 Megajoules in 2011–12 to 24 453 Megajoules in 2018–19 with a CAGR of 3.67% [ 8 ]. Electricity consumption by different sectors of India in 2018–19 is given in Fig. 2 and the domestic sector consumes 24% of the total energy [ 9 ].

Consumption of electricity by sectors during 2018–19 [ 9 ]

The BEE started the Perform Achieve and Trade (PAT) programme, which is a regulatory instrument for reducing specific energy consumption in energy-intensive designated consumers (DCs). It also dovetailed with a market mechanism to enhance the cost-effectiveness through the certification of excess energy saving that can be traded in energy exchanges. The first PAT cycle, which was completed in March 2015, achieved an energy saving of 8.67 million tons of oil equivalent (Mtoe), which was ~30% more than the target. The second PAT cycle (2016–19) included three industries in addition to eight industries of the PAT–I cycle and seeks to achieve an energy-saving target of 8.86 Mtoe [ 10 ].

Standard and Labeling (S&L) in India works on a model in which the vendor provides information related to the energy efficiency of the product on the label as prescribed by the BEE. A star rating, ranging from one to five in ascending order of energy efficiency, is provided for products registered. An endorsement label is also provided for 23 products, of which 10 are mandatory and 13 are voluntary. The impact of this programme is visible from the sale of star-label ACs in the market, as shown in Fig. 3 . The weighted average of the Indian seasonal energy-efficiency ratio of ACs increased from 2.80 (in FY 2011) to 3.70 (in FY 2017–18) [ 11 ]. Forty percent of the energy consumed by room ACs could be saved cost-effectively by enhancing their efficiency. This translates into a potential energy saving of 118 TWh at busbars or a peak-demand saving of 60 GW by 2030 [ 12 ].

Star-label AC distribution 2017–18 [ 11 ]

The British Petroleum report has indicated that the global energy demand has grown in the 10 years from 2007 to 2017 [ 13 ]. Oil consumption will grow by 30% from 2007 to 2035, while coal and natural-gas consumption will increase by 50%. The International Energy Agency predicts that with a business-as-usual scenario, the energy-related emissions of carbon dioxide (CO 2 ) will double by 2050 [ 14 ]. Globally, the building sector is responsible for consuming >40% of the total energy consumption [ 15 ]. Poor energy performance of existing buildings is observed around the world [ 16 ]. A mix of technologies can enhance the energy performance of buildings [ 17 ]. Green buildings have proven their performance but still they have not percolated into the market [ 18 ].

As per the US Energy Information Administration, by the implementation of energy codes and updated efficiency standards for appliances, the USA could save 3.79 trillion joules [ 19 ]. Hong Kong’s building energy code has improved energy efficiency and also reduced air pollution [ 20 ]. Enforcement of Chinese national building standards led to a 62% energy saving in public buildings and the building code of the UK revealed energy savings of ≤75% [ 21 ]. Florida’s residential energy code has resulted in a decrease in electricity consumption and a 6% decrease in natural-gas consumption [ 22 ]. Energy savings of 31.4% and peak savings of 36.8% were recorded for high-rise apartments in Hong Kong by adopting passive energy-efficient strategies [ 23 ]. In Greece, the thermal insulation of walls, roofs and floors, and low-infiltration strategies reduced energy consumption by 20–40% and 20%, respectively [ 24 ]. A study in Arizona of energy-star buildings before and after the buildings’ certification showed that the occupants’ consumed 8% less energy on a monthly basis after certification [ 25 ]. The effectiveness of the ENERGY STAR programme for residences in Alachua County, Florida, was analysed using monthly residential energy-consumption data between 2000 and 2013; energy savings of 10.9% were found under Florida Building Code (FBC) 1997 and 18.6% under FBC 2001 [ 26 ]. For the top 25 percentile of buildings in Singapore that are eligible for the star label in terms of an energy-efficiency label, the energy-usage intensity of 178 kWh/m 2 is comparable to the US ENERGY STAR buildings’ best practice in Californian office buildings [ 27 ]. Office buildings with ENERGY STAR or Leadership in Energy and Environmental Design (LEED) eco-labels get rental premiums of ~3–5%. Dual certification fetches an estimated rental premium of 9%. The sale-price premium for ENERGY STAR- and LEED-labelled office buildings are 18% and 25%, respectively [ 28 ].

In 2005, India’s residential and commercial floor area was estimated to be 1.6 and 0.5 billion m 2 , respectively, which increased to 3.5 and 1 billion m 2 in 2012. It is also estimated that, by 2030, residential and commercial floor space will increase to 7.0 and 1.5 billion m 2 [ 18 ]. The residential sector is the third-largest consumer of electricity and increased by 26% between 2014 and 2017 as shown in Fig. 4 [ 29 ].

Electricity consumption in different sectors (IEA India Report, 2020) [ 29 ]

By implementing energy-conservation measures recommended by the ECBC, small buildings can save ≤40% of the energy used as compared to present buildings in India [ 30 ]. The ECBC could generate a saving of 419 800 GWh in the Gujarat state between 2010 and 2050. Extending the ECBC beyond the commercial sector could achieve additional savings of 193 700 GWh between 2010 and 2050 [ 31 ]. A study of six categories of commercial buildings in Jaipur city (India) has established that the implementation of the ECBC can conserve energy by ≤42% [ 32 ]. ECBC compliance in hotel buildings in Jaipur results in saving energy in the range of 18.42–37.2% [ 33 ]. Another study estimates that buildings in Ahmedabad city (India) could reduce their cooling load by 31% by using the ECBC code for envelope design [ 34 ].

India has a renewable-energy target of 175 GW by 2022. Solar energy will contribute 100 GW; of this, 40 GW would be from rooftop solar PV systems. India had already installed 28 GW of solar capacity as of March 2019 [ 35 ]. The progress of installation from 2010 to March 2019 is shown in Fig. 5 . Rooftop solar PV installation reached 5.4 GW in December 2019 and installation is predominately in industrial and commercial buildings. The distribution of rooftop solar PV systems in the different sectors is shown in Fig. 6 .

Grid-integrated solar PV rooftop installations in India (2010–19) [ 35 ]

Distribution of installed rooftop solar PV systems up to December 2019 [ 49 ]

A study of Andalusia (Spain) suggests that rooftop solar PV systems would satisfy 78.89% of the residential energy demand [ 36 ]. In the USA (2015), with residential solar incentives, 18 of the 51 target cities could reach the break-even point [ 37 ]. A study of the city of Al-Khobar in Saudi Arabia suggests that villas and apartment buildings can offset 19% of their electricity demand by utilizing rooftop solar PV systems, when 25% of the building roof for solar PV systems and cooling loads also reduces by 2% due to the shading effect of panels [ 38 ]. In the USA, with subsidies, six states have reached socket parity, yet widespread parity has still not been achieved [ 39 ]. In Malaysia, a grid-connected residential solar PV system is found to be feasible for installation [ 40 ]. A study shows that a 5-kWp PV system in Egypt can provide 67.5% of the energy requirement for residential consumers [ 41 ].

A study of the rooftop solar photovoltaic potential for Mumbai (India) suggests that it can meet 12.8–20% of the daily energy demand [ 42 ]. Simulation of a 6.4-kW rooftop solar PV plant for Ujjain (India) demonstrated that it not only meets building energy demand, but also feeds surplus energy of 8450 kWh annually into the grid [ 43 ]. Computer simulation of the installation of the rooftop PV system at five locations in India shows that the energy required for a roof-induced cooling load decreased by between 73% and 90% [ 44 ]. Energy simulation of a 110-kWp stand-alone rooftop solar PV system for Bhopal (India) demonstrated a payback period of 8.2 years [ 45 ]. A grid-connected solar PV system net present cost becomes 0 at ~1.8 and 3.4 kW, and the cost of energy decreased with an increase in the capacity addition for the household [ 46 ].

The present work is a study on the star labelling of residential buildings in India that investigates the residential-building energy consumption and existing gap for star labelling promulgated by the BEE. This study also aims to estimate the overall impact of rooftop solar PV system application in a hot-dry climate in achieving a higher star label. The key objectives of the study are to:

quantify the residential-building energy consumption (kWh/m 2 /year) through a case study;

estimate the energy gap for star labelling and bridging this gap through rooftop solar PV systems;

establish the economics of rooftop solar PV systems for residential buildings.

The study has been undertaken for residential buildings in the Palam area of New Delhi, India. The details of the location are given in Table 2 . The distribution of flats as per the RETScreen version 8 (a software program developed by Natural Resource Canada [ 47 ]) location module is given in Fig. 7 .

Location details (obtained from RETScreen location tab)

RETScreen software representation and distribution in the flats

The residential block is a two-storey structure consisting of four houses with two basements for parking. The ground coverage of the building block is 314 m 2 and the carpet area is 628 m 2 . The campus has 81 such blocks, accommodating 324 houses.

4.1 Step 1: energy-consumption estimation

Electricity-consumption data for all of the buildings were collected for the period April 2017 to March 2019 from the society management office. The annual energy-consumption distribution of these houses is shown in Fig. 8 .

Distribution of houses based on annual energy consumption (analysis based on a survey of households)

The average annual residential energy consumption for the year 2017–18 was 7236.72 kWh, which increased to 8101.34 kWh in the year 2018–19. The sole source of energy for the buildings is electricity supplied by BSES Rajdhani Power Limited (BRPL), a distributor for south and west Delhi, and no other source of energy is deployed by the society or building occupants. The electricity tariff for the residential building in Delhi is based on energy consumption. The electricity price rates for the year 2019–20 for consumption are categorized into five stages and the same is tabulated in Table 3 .

Electricity tariff for Delhi residential houses 2019–20 [ 51 ]

Based on the residential energy consumption, consumers are classified into four groups, which are tabulated in Table 4 .

Consumer categorization based on energy consumption per annum

Distribution of the consumers based on energy consumption in 2017–18 and 2018–19 is given in Fig. 9 and Fig. 10 , respectively, and it is evident that the majority (>75%) of the end users are moderate energy consumers and that, by taking suitable energy substitutions, the desired star label can be achieved.

Distribution of consumer-based electricity consumption 2017–18 (author analysis based on a survey of select households)

Distribution of consumer-based electricity consumption 2018–19 (analysis based on a survey of select households)

The energy consumption of the residential consumers under study increased from 2017–18 to 2018–19 and, as a result, the moderate and low energy consumer category percentage reduced from 75% and 14% to 65% and 10%, respectively, whereas the high energy consumer category increased from 8% to 23%.

4.2 Step 2: calculation of the technical performance of rooftop solar PV systems

Three rooftop solar scenarios are considered for residential buildings based on the present energy consumption and available area on the rooftop. The calculation for these three scenarios is carried out using a solar rooftop financial calculator hosted on the Ministry of New and Renewable Energy (MNRE) website ( https://mnre.gov.in/ ) and is tabulated in Table 5 .

Residential solar rooftop PV evaluation [ 47 ]

The cost of the proposed solar PV plant is based on the MNRE benchmark cost that also includes subsidies extended by the MNRE. The MNRE gives a flat 40% subsidy on solar PV plants rating ≤3 kW and a 20% subsidy for solar PV plants rating >3 kW up to 10 kW. The selected site receives an average of 5.06 kWh/m 2 /day solar radiation horizontal and its monthly availability is given in Fig. 11 .

Monthly solar radiation horizontal availability at the site (analysis based on RETScreen simulation) [ 48 ]

4.3 Step 3: simulation and economic analysis of solar rooftop PV plants

The electricity generated from the PV system that was calculated in Table 5 was validated by using RETScreen version 8 [ 48 ]. The energy output obtained from RETScreen is within a tolerance of 5% as compared to results obtained from the MNRE solar PV rooftop calculator ( Table 6 ).

Technical evaluation of residential solar PV rooftop using RETScreen energy module

Analysing the residential electricity tariff ( Table 3 ), a flat 40% subsidy extended up to a 3-kW rooftop solar PV system, the distribution of consumers based on energy consumption ( Figs 10 and 11 ) and the energy gap for the star label by solar power ( Tables 1 and 7 ) of a 3-kW rooftop solar PV are considered for the case study. Eighty to 90% of the houses could achieve a five-star label by employing a 3-kW rooftop solar PV. The distribution of star labels for 2017–18 and 2018–19 for the buildings as per consumption is shown in Figs 12 and 13 , respectively.

Financial parameters considered for the viability of a solar PV rooftop system

Distribution of star buildings employing rooftop solar PV systems (2017–18)

Distribution of star buildings employing rooftop solar PV systems (2018–19)

Low and moderate energy consumers ( Table 4 ) could achieve a high five-star label by employing a rooftop solar PV system whereas high energy consumers could achieve an additional two-star label by this measure.

The economic viability of a rooftop solar PV system for the buildings under consideration was also ascertained by using RETScreen. The net present value (NPV) based on discounted cash flow was used as an analysis approach using the RETScreen cost and finance module. The analysis period was assumed to be 25 years based on the useful life and warranty period of solar PV panels. Financial parameters used in the RETScreen finance module for ascertaining the economic viability of the two scenarios are given in Table 7 and the simulation results obtained are tabulated in Table 8 .

Economics of a 3-kW rooftop solar PV system at the study site

To explore rooftop solar PV systems for other climatic zones, an exercise akin to that undertaken in Delhi was carried out for other cities of India, which are tabulated in Table 9 . RETScreen simulation results for these cities are tabulated in Table 10 .

Electricity tariff and solar-radiation availability in Indian cities

RETScreen simulation of 3-kWp solar rooftop PV systems for selected cities of India

Rooftop grid-integrated 3-kW p solar PV systems can bridge a building’s existing energy gap for the five-star label. The study indicates that a grid-connected 3-kWp solar PV system is suitable for rooftop residential installation in most Indian cities and this retrofit improves the EPI of a building and thus provides two additional energy stars to the building. The payback period of grid-connected rooftop solar PV systems varies from 3 to 7 years. However, the payback period varies widely for different Indian cities; for Pune and Ahmedabad, despite having the same annual solar radiation, the payback period is 3 and 9 years, respectively. This is primarily due to different residential electricity tariff rates in the states of India and it is the most important factor to affect the finances of rooftop solar PV systems. Therefore, rooftop solar PV systems are not recommended as an instrument for achieving a higher star label for the states like Gujarat where the residential electricity tariff is low. The installation of a 3-kWp grid-integrated rooftop solar PV by low and moderate energy consumers is sufficient for achieving the five-star energy label for the building whereas high and very high energy consumers need to take additional measures for getting five-star energy labels for their buildings. The reduction in energy purchases from the grid increases the saving of energy for end consumers and thus reduces emissions because grid electricity in India is predominately coal-based. This study can be further extended for the normalization of rooftop solar PV subsidies for different states so that this energy substitution can match the grid parity in respective Indian states. Further passive retrofit measures, which include improvement in the envelopes of existing residential buildings and active retrofit measures, such as the installation of grid-integrated rooftop solar PV systems, can be optimized for a building based on life-cycle costing so that the cost of energy stars is minimized.

Study is not funded by any agency/organization. Data gathered by self for the study undertaken. Other sources cited as applicable.

None declared.

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Solar Power in India: A Case Study of the Bhadla Solar Power Park

However, the Bhadla case also shines a light on a pressing issue: the emerging conflicts over land resources in the realm of solar infrastructure development. Many of the locations chosen for solar power projects are government-owned lands traditionally used by local communities for their livelihoods. In this context, it is noteworthy that the 2013 Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement Act, which safeguards the rights of landholders during acquisition processes, does not apply to government-held lands. Consequently, when these government lands are repurposed for solar power generation, the Act’s protective provisions fail to address the displacement and economic disruption experienced by local communities who relied on these lands for their sustenance. The absence of a clear legal framework in such cases often leads to ongoing disputes and grievances.

This preliminary report delves into the specific case of Bhadla, offering valuable insights into the prevailing issue of what can be termed “green grabbing”. It sheds light on the approach adopted by the Indian government in establishing solar parks, particularly in the context of achieving its broader objectives of transitioning to a renewable energy-powered economy. The report  thus also delves into the financial architecture behind the development of Bhadla Solar Power Park.

Currently, India accommodates several ultra-mega solar parks boasting capacities exceeding 1GW, two of which stand as the world’s largest commissioned parks to date. These solar parks in India consistently draw global investments and interest from esteemed domestic and international renewable energy developers. These investments are claimed to have transformed erstwhile wastelands into highly efficient solar energy facilities.

However, it is crucial to recognize that such approaches to renewable energy transition may fall short of achieving a fair and just transition. Land enclosures for utility-scale solar energy generation not only dispossess local communities of their livelihoods but also do not necessarily translate into the electrification of households located in close proximity to these solar parks, further exacerbating the social and economic disparities caused by these projects. A comprehensive and equitable approach to renewable energy transition should encompass the interests and well-being of both local communities and the broader energy goals.

Read and download the report here: Solar Power in India A Case Study of the Bhadla Solar Power Park

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India's 40 GW solar rooftop target for 2022: A Kerala case study

Despite interest and potential in the state, the target remains a tall order

By Shweta Miriam Koshy

Published: wednesday 12 february 2020.

Kerala has anywhere between 130 and 140 megawatt (MW) of solar photovoltaic (PV) installations, which includes big ticket projects like the Solar Energy Corporation of India (SECI)-owned 50 MW and Cochin airport’s 40 MW.

But the relatively small state of Kerala is quickly running out of land, especially to accommodate the space-intensive solar technology. Installing a solar PV to generate a single kilowatt (kW) requires 10 square metres of land.

Upcoming large-scale projects are instead looking at floating, dam-top and canal-top installations, in an attempt to utilise all available space.

An easier alternative for the land-constrained state would be to install smaller solar rooftop (SRT) systems. However, the SRT segment, as in the rest of India, has seen little progress.

“Today, there is approximately 40 MW of SRT and possibly another 20-30 MW that is not accounted for,” Aneesh Prasad, programme officer at Agency for Non-Conventional Energy and Rural Technology (Anert), said.

Anert’s dedicated programmes played a crucial role in the initial proliferation of SRT in the state. A case-in-point is the first ever ‘10,000 rooftop programme’ by Anert.

The programme began in 2013. Though pitched initially as a grid-connected programme, restrictions by the Union Ministry of New and Renewable Energy (MNRE) on central subsidy meant the programme looked at only ‘off-grid systems of 1 kW with battery backup’.

Unfortunately, the programme hit a roadblock, even before it started, with the ‘Kerala solar scam’ that came to light the same year. The general perception of the technology suffered, but Anert quickly took charge by conducting awareness drives in each of its individual districts.

To further improve the applicability and economics of off-grid systems, Anert added to the MNRE specifications by including parameters such as increased inverter efficiency, enhanced guarantee period for battery, and slapped on an additional state subsidy of 20 per cent.

The programme bounced back and was declared a success at its close in 2017, “having installed all 10,000 systems,” R Rajesh, programme officer at Anert, said.

Simultaneously, 2015 saw two new programmes — the ‘Solar Connect’ (grid-connected systems) and the ‘Solar Smart’ (off-grid systems) — introduced to overcome the capacity limits on the previous scheme. Off-grid systems could now go up to 5 kW while grid-connected systems could go up to 100 kW.

As of March, 2018, Anert had facilitated close to 30 MW of SRT (grid-connected and off-grid).

Mantle passes to KSEB

Unfortunately, the Centre’s ‘Phase–II of the Grid-Connected Rooftop Solar (GCRTS) Programme’ of 2019 is changing something that was just beginning to find its groove.

Under Phase II, the Kerala State Electricity Board (KSEB) will henceforth be responsible for both, installing SRT systems and disbursing subsidy. These were activities previously led by Anert.

Many consider this change in policy an important addition since across states, distribution companies have presented a visible barrier to SRT adoption. The hope is that incentivising KSEB could provide the SRT segment the necessary boost.

Currently, KSEB’s grid-connected SRT capacity is 39 MW, VK Joseph, chief engineer for Renewable Energy and Energy Savings at KSEB, said. Under its latest plan, the utility has set itself a target of 500 MW by 2022 — 150 MW of SRT from domestic and agriculture consumers, 250 MW on commercial and non-governmental buildings, and 100 MW on government buildings.

Undeterred by the task at hand, KSEB released its first tender of 200 MW and opened it to all consumer segments. “The tender offers 150 MW under the Renewable Energy Service Company model, and another 50 MW under the Capital Expenditure model,” Joseph said. The tender received an overwhelming response, indicating a strong demand for SRT in the state.

Will the residential sector pick up SRT?

Today, most installations are from the commercial and industrial (C&I) sector, who pick up SRT because of the obvious electricity bill savings. If redirected, these bill savings can help pay back a system in five-six years.

In contrast, the domestic consumers who are charged a lower tariff rate than C&I consumers, don’t witness the same bill savings explaining their tepid adoption rates. Retrospectively, the Centre, under Phase II, has removed all monetary support for the C&I sector (and other larger consumers). It has instead increased the percentage capital subsidy available to domestic consumers and also found a way to incentivise distribution companies.

KSEB serves over 1.2 crore consumers, of which 38.5 per cent are domestic consumers. The domestic consumers lack any tangible bill savings and therefore, require facilitating measures such as easier installation process and better servicing.

Till recently, applications for SRT took ages, sometimes even up to two years. These delays were due to a long-winded application process that required running from the state nodal agency to the utility to the developer; and, further delays on net-metering.

“For the same, Anert has introduced an online portal ‘Buy My Sun’ to ease purchasing and installing,” Prasad said. “Delays in providing net-metering alone went over 18 months and with the introduction of the online portal, have come down to three months,” he added.

Introduced in 2018, Buy My Sun, along with the Programme Management System and the m-Anert mobile app, has made SRT adoption transparent and incredibly easy to use. It connects customers with vendors and their products, distribution companies, empaneled installers and inspectors.

Everything, from buying an SRT system to its commissioning can now be done online. The success of the e-marketplace is hard to gauge just yet, but people in the know claim that the accessibility led to an uptick in applications.

To reduce occurrences of SRT failures that arose primarily from faulty inverters, support structures and cables rather than modules themselves, “Anert releases a list of empaneled developers, system integrators and service providers to ensure that prosumers have access to reliable facilitators,” Prasad added.

“To improve service, we have introduced ‘Urja Mithra - Akshaya Urja Service Centres’ in 140 constituencies to service solar prosumers, locally,” he said

Except the facility of an empaneled list, the others are relatively recent interventions and it is unclear if KSEB will utilise them. Under the Phase–II GCRTS, KSEB has been assigned a grant to develop a portal similar to Buy My Sun.

The effort will be redundant and funds misdirected. “We are in talks with KSEB to facilitate use of the existing e-market place for future programmes,” Prasad said.

But several months after the introduction of the ‘Phase II’ programme, there is no clarity.

Moreover, for consumers with shared or no suitable rooftops, procurement options such as open access of solar energy, virtual metering and group metering must be provided. The Kerala State Electricity Regulatory Commission (KSERC) confirmed that the latter two weren’t on their docket but a policy for open access was in place.

Unfortunately, despite a policy, the state has witnessed a fall in the number of open access consumers over the last year. In its annual report, KSEB reports that energy purchased by consumers through open access fell to 284.96 MU from 435.6 MU.

 “Inclusion of transmission, wheeling, cross-subsidy and additional grid support surcharge add Rs 2.50 per unit to the solar cost of generation, which reduces the economic viability of the project,” Prasad said.

The share of individual houses in Kerala is significant but the local architecture predominantly have slanting roofs and surrounding gardens mean that most roofs are shaded. If this crowd is to take up SRT, KSERC must introduce regulations that can allow placing the system elsewhere. Other states have also seen success with the introduction of building mandates, something for Kerala to consider.

But even with all the policies and regulations, the SRT segment cannot take off without the utility’s backing. There is a legacy of indifference by KSEB.

An industry insider, on the condition of anonymity, said, “KSEB has 6-7 on-ground teams responsible for a range of issues. However facilitating grid-connection of SRT systems does not feature on the top of their priority list.”

The hope is that under Phase II, the incentive promised could rearrange their priorities.

KSEB must rise to the occasion and the KSERC must provide the necessary backing to install 500 MW by 2022. With facilitative conditions, C&I are sure to take up SRT. Even government buildings and agricultural consumers are expected to contribute, what with the introduction of dedicated programmes and additional monetary support — Government Producer Scheme and the KUSUM scheme respectively.

The recent tender has shown that there is interest among consumers in Kerala.

“Even if 2 per cent (of the total 1 crore) of domestic consumers which fall in the highest-paying category installs an average of 2.5 kW rooftop system over the next 5 years, the total would be 500 MW. If 10 per cent of the highest tariff group — the commercial consumers opt for rooftop plants — around 300 MW can be installed,” R Harikumar, director of Anert, was quoted as saying.

Despite interest and potential, the 500 MW target under KSEB’s ‘Soura’ solar energy programme remains a tall claim.

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Solar Energy

Case study: solar energy, a brighter outlook with solar energy, theme: services.

September 8, 2018

Theme: Clean India

Launch: October 2, 2018

Location: Pan-India

Stakeholder: Ministry of Housing & Urban Affairs, Ministry of Drinking Water & Sanitation, citizens of India

The Government of India is taking timely steps to boost India's solar energy capacity in mission mode, which are expected to usher in a robust clean energy future.

Energy requirement has progressively increased from 830,594 MU (mega units)* in 2009-10 to 1,212,134 MU in 2017-18 2 . However, India has also managed to meet most of this excess demand to bring down the energy deficit from 83,950 MU in 2009-10 to 8,567 MU in 2017-18. More significantly, clean or renewable energy is forming an increasingly important component of the new capacity that India is adding to meet its growing energy needs. Total renewable energy capacity has increased from 35,500 MW in 2013-14 to 70,000 MW in 2017- 18 4 . In 2017-18, India's capacity addition in renewable (11,788 MW) exceeded the capacity addition in conventional energy (9,505 MW) for the first time 5 .

Solar energy capacity in particular has seen a phenomenal growth in India, growing by 8 times since 2013-14 to reach 22,000 MW in 2017-18 6 . The Government of India has targeted renewable energy capacity of 175 GW by 2022, out of which solar alone is expected to contribute 100 GW. In all, 41 solar parks have been sanctioned in 21 states with total capacity of 26,144 MW 7 . According to a report by the Ministry of New & Renewable Energy, India has a total solar power potential of around 748 GW. To put that in perspective, India's total installed capacity as on June 31, 2018, was 343.9 GW 8 .

The key driver of the growing propensity towards solar power is declining costs. Solar power costs have successively declined from Rs 6.17 per unit in 2014 to Rs 2.44 per unit in 2018 9 . Both solar and wind power projects are in fact consistently being won at lower prices compared to thermal power. For instance, 1.75 GW of tenders for solar power in June were completed at Rs2.71/kWh 10 . While there has been slight increase from last year's record lows of Rs 2.44 per kWh, for the auction carried out by Solar Energy Corporation of India for 500 MW capacity in the Bhadla Phase-III Solar Park, Rajasthan (see figure 1). However, they are currently at par with thermal, as per data on recent auctions by CEA 11 . On August 29, it was reported that Madhya Pradesh Urja Vikas Nigam Ltd (MPUVNL) closed a tender for 35+ MWp of solar rooftop power at Rs 1.58 per unit, the lowest so far for India 12 .

According to Bloomberg New Energy Outlook 2018, it is projected that "wind and solar are set to surge to almost "50 by 50" - 50% of world generation by 2050 - on the back of precipitous reductions in cost, and the advent of cheaper and cheaper batteries that will enable electricity to be stored and discharged to meet shifts in demand and supply 13 ." Given the commitment being displayed by the Government and the industry to ramp up solar capacities in mission mode, the long term scenario looks positive in terms of reducing India's dependence on coal for its energy needs. This has obvious environment benefits, apart from building sustainable capacities to meet India's energy needs over the long term.

*1 MU = 1 million units of electricity, where each unit = 1 kWh.

• The Government of India has taken urgent measures to increase sanitation coverage in the country at a brisk pace. Since launch, 81.55 million toilets have been built across India under Swachh Bharat Mission - Grameen with a rural sanitation coverage of around 90.33% compared to 38.7% as on October 2, 2014.*
• Further, since the launch of the mission, 4,19,391 villages have been declared open-defecation free.*
• Under the Swachh Bharat (Urban) Mission around 4.32 million household toilets and 392,817 community toilets had been constructed. Moreover, 67,085 wards had 100% door-door collection (Solid Waste Management Rules)*.
• WHO has estimated that if the Government achieves 100% implementation of its cleanliness drive by 2019, the country could be on track to avert 300,000 deaths due to diarrhoeal disease and protein-energy malnutrition (PEM).

References:

• 1 - (IEA Statistics © OECD/IEA 2014 ( iea.org/stats/index.asp )
• 2, 3, 7 -  powermin.nic.in/en/content/power-sector-glance-all-india
• 5 -  https://www.thehindubusinessline.com/economy/in-a-first-renewables-surpass-conventional-energy-sources-in-capacity-addition-in-fy18/article23740900.ece
• 4, 8, 9 -  https://mnre.gov.in/sites/default/files/uploads/MNRE-4-Year-Achievement-Booklet.pdf
• 10 - https://reneweconomy.com.au/india-doubles-down-on-renewables-as-coal-left-idle-by-cheaper-solar-83364
• 11 – http://www.careratings.com/upload/NewsFiles/Studies/Renewable%20Energy%20Tariff%20and%20Capacity%20Update.pdf
• 12 - https://energy.economictimes.indiatimes.com/news/renewable/mps-resco-tender-attracts-over-31-bidders-for-35-mw-solar-rooftop/65581940
• 13 - https://about.bnef.com/new-energy-outlook

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The Future Of Solar Energy In India: A Case Study

India has been a major player in the global renewable energy revolution. Since the Paris Climate Agreement in 2015, India has made significant progress in its renewable energy policies and its aim to reduce its greenhouse gas emissions and dependence on fossil fuels. Among these sources of renewable energy, solar energy has emerged as a major contributor to India’s clean energy mix in the recent years. This article gives an overview of the future of solar energy in India and the case study of its growth over the years.

• Solar Energy in India - An Overview

Solar Park Scheme

Rooftop solar scheme, solar energy corporation of india (seci), the national solar mission, challenges and opportunities, solar energy in india – an overview.

India has a rapidly growing economy and increasing energy demands due to a surge in population and economic growth. However, the country is blessed with abundant sunlight throughout the year, making solar energy a vital resource for the country. Over the last few years, the Indian government has launched several initiatives to harness this resource to meet the country’s energy demands. With India’s solar energy resource potential estimated at around 750 GW, the future of Indian solar sector looks promising.

Growth of Solar Energy in India

The growth of solar energy in India has been remarkable over the last few years. Back in 2010, solar installed capacity in India was negligible. Today, however, India is now the fourth-largest solar market in the world, and the country aims to achieve a target of 100 GW solar capacity by 2022. As of January 2021, India has already achieved 38.8 GW of installed solar capacity.

The growth of solar energy in India is attributed to many government policies and schemes that aim to incentivize solar development and investment in the solar sector. These policies and schemes include:

The Solar Park Scheme was launched in 2015 with an aim to set up at least 40 solar parks each with the capacity of 500 Megawatts (MW) or more. The primary objective of the scheme is to develop solar parks with associated transmission infrastructure and research and development facilities to attract investments in the solar sector. The scheme has been successful in attracting various domestic and foreign investors to the Indian solar market.

The Rooftop Solar Scheme was launched in 2015 with the aim of promoting the adoption of rooftop solar panels by households, commercial establishments, and industries. Under the scheme, the government provides subsidies and offers net metering facilities for excess electricity generated by the rooftop solar panels.

The Solar Energy Corporation of India is a government-owned company that was established in 2011. Its primary objective is to promote, plan, and advance the development of solar energy projects across India. The company is involved in various activities such as project development, consultancy, project management, and other ancillary services.

The National Solar Mission was launched in 2010, with an objective to achieve 20 GW of installed solar capacity by 2022. In 2015, the mission was expanded to 100 GW and extended to 2022. The mission aims to achieve this solar capacity through a combination of various schemes and policies, including incentives for solar-based power generation, research and development activities, and other incentives for the manufacturing of solar equipment.

Although the Indian solar sector has made significant progress in recent years, it faces several challenges. These challenges include a lack of adequate infrastructure, such as transmission lines and storage facilities, land acquisition issues, and supply chain constraints. However, the Indian solar sector also presents significant opportunities for growth, attracting private investment, and creating jobs in the renewable energy sector.

Over the last decade, India’s solar sector has made remarkable progress in harnessing its solar energy potential. The initiatives taken by the Indian government have played a significant role in this growth. However, the sector faces several challenges that need to be tackled to ensure the long-term sustainability of the solar sector. The future of the solar sector in India is promising, and it has the potential to become a leader in the global renewable energy revolution.

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India's first solar-powered village promotes green energy, sustainability and self-reliance

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During his two-day visit to India this week, UN Secretary-General António Guterres visited a model project site in Gujarat state, designated the country's first solar-powered village. He commended villagers there on the shift towards renewable energy, which he said is not only changing lives in the community, but also combating climate change. 

Gadvi Kailashben, a 42-year-old widow, lives in Modhera, home to the centuries-old Sun Temple and now the first village in India that runs on solar energy.

She earns a meagre income from agriculture which she uses to take care of her family. The Government has installed solar panels on her house which has given her much-needed relief from household expenses.

“Earlier, when solar was not there, I had to pay huge amount for the electricity bill - close to 2,000 rupees. However, with the installation of the solar,  my electricity bill is now zero . Everything from the refrigerator to washing machine now runs on solar in my house. I am not paying even 1 rupee electricity bill now,” said Ms. Kailashben.

“The  extra money is now saved  in my account. I use that money for daily house expenses, and for the education of my children,” she added.

Renewable energy as an income source

Conversion to a clean, renewable energy source is not only enabling the villagers to run more electrical household gadgets to make life comfortable, without worrying about the electricity bill. It is also becoming a source of income for them.

Ashaben Mahendrabhai, 38, lives with her husband and two children. “We work in our farm and used to pay huge electricity bill for agriculture. Since solar installation in our village, we are now saving a lot of electricity. Earlier our electricity bill used to come around 2,000 rupees. Now it is in minus,” she said.

With the electricity bill in minus, Ashaben is not only saving the money that she used to spend on electricity, but the  excess electricity generated is sold back to the grid  and  she gets money in return .

“When the first time the project team came to us with the idea of solar, we didn’t understand the concept, so we refused to get it installed. We were not literate to understand what solar energy was and had little knowledge about it. But slowly, the team made us understand the concept and the advantages of solar, how we will  save electricity and money , then we got interested in it,” she said.

Local farmers Pingalsinh Karsanbhai Gadhvi and Surajben Gadhvi, who are married, got  solar rooftops installed on their house six months ago.

Pingalsinh Karsanbhai feels that this project has not only given them freedom from electricity bills, but the savings will hold them in good stead in old age.

“Earlier we used to get electricity bill of 3,000 rupees and after solar it is zero now. Now we are saving those 3,000 rupees every month,” he said.

“These solar panels have benefited the entire village. All the institutions like schools, public institutions, all have benefited from the solar in the village. In my individual capacity I am saving 3,000 rupees. Now we don’t require extra energy. The entire house runs on solar.”

He exclaimed that “ this saving is like a pension for our old age . We are really happy about it.” His wife Surajben was all smiles and eager to recommend it for other villages.

“If this solar is installed across the country it would be really advantageous. It feels like the Sun God is providing us energy through its light. This benefit that our Modhera village has got,  should reach the entire country ,” she said.

Interacting with the villagers of Modhera during his visit, UN Secretary-General António Guterres hailed the efforts of the Government and the residents.

“Here where the Temple of Sun was built 1,000 years ago, there is  a new Temple of Sun . It’s based on solar energy. And the fact that solar energy is transforming the lives of the people of this village, making it more healthy, giving them more prosperity, but at the same time, contributing to rescue our planet from climate change that is still riding without control.”

Inspiration from the Sun God

Home to the iconic Sun Temple of Gujarat, Modhera village is approximately 97 km from the city of Ahmedabad in the Mehsana district of Gujarat. With the vision of powering the Sun Temple and the entire village through Sun God (solar energy), this project is the first of its kind, where rural residents are envisaged to be self-reliant through green energy. “The idea behind this project is that since the Modhera temple is the Temple of the Sun God, so  the entire energy of this town and community should come from solar energy ,” said Mamta Verma, Principal Secretary, Energy and Petrochemicals in the Government of Gujarat.

The Sun Temple now runs a 3D light show entirely on solar power, its premises run on solar energy and the parking area also boasts electric vehicle charging stations.

Renewable energy storage

Armed with a large array of solar panels on the rooftops of houses, on Government schools, bus stops, utility buildings, car parks and even the premises of the Sun Temple, Modhera benefits from the six-megawatt installed capacity power plant in nearby Sujjanpura village.

With the village consumption merely one to two megawatts, the  excess is added to the transmission grid .

“There are three major components to this entire project. One is our ground mounted 6-megawatt project. The second is the 15-megawatt battery storage system and the third is the one-kilowatt rooftops installed on 1,300 houses,” the Chief Project Officer of Gujarat Power Corporation Limited (GPCL), Rajendra Mistry, explained.

“Out of the 1,000 rooftops we have provided in the village, the electricity that comes out is first consumed by the people of the village, and the excess electricity is then given to the grid.” Funded by the Government of India and the Government of Gujarat, the estimated cost of the entire project is $9.7 million. What sets it apart is the fact that Modhera is also the first village to become a net renewable energy generator.

“This is the first village in India where even during the night, the energy consumed by the villagers comes from the solar component. That’s the speciality of this project,” said Vikalp Bhardwaj, Managing Director of Gujarat Power Corporation Limited.

Vision for the future

This demonstration project is expected to provide learning to resolve bottlenecks related to renewable energy. If the project proves to be economically viable, the plan is to replicate it in other rural areas in Gujarat.

Said Mr. Bhardwaj: “This kind of project acts as a demonstration project for other villages and towns in India. And similarly, the other villages and towns can adopt this model to become self-dependent, self-sufficient in the energy needs.” Modhera resident Ashaben Mahendrabhai summed up the benefits.

“I would encourage the other villages also to put solar as it is beneficial in all aspects, from saving money to saving electricity,” she said.

POWERED BY THE SUN

• More than 1,300 households have 1 KW Rooftop Solar Systems on Residential buildings.
• 316 KW Rooftop Solar PV Systems on various government buildings at Modhera, Samlanpura and Sujjanpura villages.
• 6 MW Grid Connected Ground Mounted Solar PV Power Plant at Sujjanpura
• 15 MWh, 6 MW, Battery Energy Storage System (BESS) at Sujjanpura.
• Modhera uses only 1Mw, with rest being added to the grid.
• Installation of Smart Energy Meters (more than 1700) at electric consumer level.
• Fully solar-powered Sun Temple runs a 3D projection Light Show entirely on renewable energy.
• Sensor based smart street lights near the Sun Temple.
• 50 KW Solar Parking Infrastructure with 150 kWh Battery Storage with Electric Charging Stations at the Modhera Sun Temple.

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India Energy Outlook 2021

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2.0 Urbanisation and industrialisation in India

3.0 fuels and electricity in india, 4.0 implications for india and the world, executive summary, india’s future prosperity will hinge on affordable, clean and reliable energy….

India has seen extraordinary successes in its recent energy development, but many challenges remain, and the Covid-19   pandemic has been a major disruption . In recent years, India has brought electricity connections to hundreds of millions of its citizens; promoted the adoption of highly-efficient LED lighting by most households; and prompted a massive expansion in renewable sources of energy, led by solar power. The gains for Indian citizens and their quality of life have been tangible. However, the Covid-19 crisis has complicated efforts to resolve other pressing problems. These include a lack of reliable electricity supply for many consumers; a continued reliance on solid biomass, mainly firewood, as a cooking fuel for some 660 million people; financially ailing electricity distribution companies, and air quality that has made Indian cities among the most polluted in the world.

Percentage change in key indicators for India in 2020 compared with 2019

…and the scope for further growth in energy demand and infrastructure is huge.

India is the world’s third-largest energy consuming country, thanks to rising incomes and improving standards of living. Energy use has doubled since 2000, with 80% of demand still being met by coal, oil and solid biomass. On a per capita basis, India’s energy use and emissions are less than half the world average, as are other key indicators such as vehicle ownership, steel and cement output. As India recovers from a Covid-induced slump in 2020, it is re-entering a very dynamic period in its energy development. Over the coming years, millions of Indian households are set to buy new appliances, air conditioning units and vehicles. India will soon become the world’s most populous country, adding the equivalent of a city the size of Los Angeles to its urban population each year. To meet growth in electricity demand over the next twenty years, India will need to add a power system the size of the European Union to what it has now.

Total primary energy demand in India, 2000-2020

India has a wide range of possible energy futures before it.

This special report maps out possible energy futures for India, the levers and decisions that bring them about, and the interactions that arise across a complex energy system. The increasing urgency driving the global response to climate change is a pivotal theme. India has so far contributed relatively little to the world’s cumulative greenhouse gas emissions, but the country is already feeling their effects. This report’s analysis is based on a detailed review of existing or announced energy reforms and targets. These include the aims of quadrupling renewable electricity capacity by 2030, more than doubling the share of natural gas in the energy mix, enhancing energy efficiency and transport infrastructure, increasing domestic coal output, and reducing reliance on imports. Progress towards these policy goals varies across our report’s different scenarios, none of which is a forecast. Our aim is rather to provide a coherent framework in which to consider India’s choices and their implications.

• The Stated Policies Scenario (STEPS) provides a balanced assessment of the direction in which India’s energy system is heading, based on today’s policy settings and constraints and an assumption that the spread of Covid-19 is largely brought under control in 2021.
• The India Vision Case is based on a rapid resolution of today’s public health crisis and a more complete realisation of India’s stated energy policy objectives, accompanied by a faster pace of economic growth than in the STEPS.
• The Delayed Recovery Scenario analyses potential downside risks to India’s energy and economic development in the event that the pandemic is more prolonged.
• The Sustainable Development Scenario explores how India could mobilise an additional surge in clean energy investment to produce an early peak and rapid subsequent decline in emissions, consistent with a longer-term drive to net zero, while accelerating progress towards a range of other sustainable development goals.

Energy demand growth in India by scenario, 2019-2040

Average annual growth in india gdp by scenario, 2019-2040, covid-19 will leave lasting scars.

Prior to the global pandemic, India’s energy demand was projected to increase by almost 50% between 2019 and 2030, but growth over this period is now closer to 35% in the STEPS, and 25% in the Delayed Recovery Scenario. The latter would put some of India’s hard-won gains in the fight against energy poverty at risk, as lower-income households are forced to fall back on more polluting and inefficient sources of energy. It would also extend the slump in energy investment, which we estimate to have fallen by some 15% in India in 2020. Even though the pandemic and its aftermath could temporarily suppress emissions, as coal and oil bear the brunt of the reduction in demand, it does not move India any closer to its long-term sustainable development goals.

India’s size and dynamism will keep it at the heart of the global energy system

An expanding economy, population, urbanisation and industrialisation mean that India sees the largest increase in energy demand of any country, across all of our scenarios to 2040. India’s economic growth has historically been driven mainly by the services sector rather than the more energy-intensive industrial sector, and the rate at which India has urbanised has also been slower than in other comparable countries. But even at a relatively modest assumed urbanisation rate, India’s sheer size means that 270 million people are still set to be added to India’s urban population over the next two decades. This leads to rapid growth in the building stock and other infrastructure. The resulting surge in demand for a range of construction materials, notably steel and cement, highlights the pivot in global manufacturing towards India. In the STEPS, as India develops and modernises, its rate of energy demand growth is three times the global average.

The Indian electricity sector is on the cusp of a solar-powered revolution…

Solar power is set for explosive growth in India, matching coal’s share in the Indian power generation mix within two decades in the STEPS – or even sooner in the Sustainable Development Scenario. As things stand, solar accounts for less than 4% of India’s electricity generation, and coal close to 70%. By 2040, they converge in the low 30%s in the STEPS, and this switch is even more rapid in other scenarios. This dramatic turnaround is driven by India’s policy ambitions, notably the target to reach 450 GW of renewable capacity by 2030, and the extraordinary cost-competitiveness of solar, which out-competes existing coal-fired power by 2030 even when paired with battery storage. The rise of utility-scale renewable projects is underpinned by some innovative regulatory approaches that encourage pairing solar with other generation technologies, and with storage, to offer “round the clock” supply. Keeping up momentum behind investments in renewables also means tackling risks relating to delayed payments to generators, land acquisition, and regulatory and contract uncertainty. However, the projections in the STEPS do not come close to exhausting the scope for solar to meet India’s energy needs, especially for other applications such as rooftop solar, solar thermal heating, and water pumps.

Changes in coal and solar capacity in India in the Stated Policies Scenario, 2010-2040

Changes in share of power generation in india in the stated policies scenario, 2010-2040, ...while rising demand for air-conditioning pushes up the peak in power demand.

India’s electricity demand is set to increase much more rapidly than its overall energy demand. But a defining feature of the outlook is a sharp rise in variability – both in electricity output, from solar PV and wind, and in daily consumption. On the supply side, output from renewables in some Indian states is set to exceed demand on a regular basis (typically around the middle of the day) before 2030. On the demand side, the key contributor to variability comes from rapid growth in ownership of air-conditioning units. Energy efficiency measures targeting both cooling appliances and buildings avoid around a quarter of the potential growth in consumption in the STEPS, but electricity demand for cooling still increases six-fold by 2040, creating a major early evening peak in electricity use.

India requires a massive increase in power system flexibility

The pace of change in the electricity sector puts a huge premium on robust grids and other sources of flexibility, with India becoming a global leader in battery storage . India has a higher requirement for flexibility in its power system operation than almost any other country in the world. In the near term, India’s large grid and its coal-fired power fleet meet the bulk of India’s flexibility needs, supported by hydropower and gas-fired capacity. Going forward, new power lines and demand-side options – such as improving the efficiency of air conditioners or shifting the operation of agricultural pumps to different parts of the day – will need to play a much greater role. But battery storage is particularly well suited to the short-run flexibility that India needs to align its solar-led generation peak in the middle of the day with the country’s early evening peak in demand. By 2040, India has 140 GW of battery capacity in the STEPS, the largest of any country, and close to 200 GW in the Sustainable Development Scenario.

As solar takes power, the focus for coal switches to industry …

Coal’s hold over India’s power sector is loosening, with industry accounting for most of the increase in coal demand to 2040 in the STEPS. Once the coal-fired power plants currently under construction are completed over the next few years, there is no net growth at all in India’s coal fleet. Coal-fired generation was most exposed to the dip in electricity consumption in 2020. It picks up slightly in the STEPS as demand recovers, since renewables do not cover all of the projected increase in electricity demand. However, coal suppliers looking for growth increasingly have to turn to India’s industrial consumers rather than the power sector. The share of coal in the overall energy mix steadily declines in the STEPS, from 44% in 2019 to 34% in 2040, and more rapidly in other scenarios.

…while oil continues to dominate a fast-growing transport sector in the STEPS

Energy demand for road transport in the STEPS is projected to more than double over the next two decades, although this growth is cut dramatically in the Sustainable Development Scenario. Over half of the growth in the STEPS is fuelled by diesel-based freight transport. An extra 25 million trucks are travelling on India’s roads by 2040 as road freight activity triples, and a total of 300 million vehicles of all types are added to India’s fleet between now and then. Transport has been the fastest-growing end-use sector in recent years, and India is set for a huge expansion of transportation infrastructure – from highways, railways and metro lines to airports and ports. Today’s policy settings are sufficient to prevent runaway growth in transport energy demand. And some parts of the system shift rapidly to less energy-intensive options, with one example being a strong increase in the use of two-or-three-wheeled vehicles for road transport. Nonetheless, in the STEPS, India’s oil demand rises by almost 4 million barrels per day (mb/d) to reach 8.7 mb/d in 2040, the largest increase of any country. In the Sustainable Development Scenario, by contrast, a much stronger push for electrification, efficiency and fuel switching limits growth in oil demand to less than 1 mb/d.

Road transport energy demand by fuel and technology in India in the Stated Policies Scenario compared to Sustainable Development Scenario, 2040

Changes in road transport energy demand by fuel, technology and scenario in india in the stated policies scenario, 2019-2040, india’s building spree will shape its energy use for years to come.

India is set to more than double its building space over the next two decades, with 70% of new construction happening in urban areas. The model of urbanisation that India follows and the extent to which new construction follows energy-efficient building codes will shape patterns of energy use far into the future. The shift towards urban living accelerates transitions in residential energy use away from solid biomass and towards electricity and modern fuels. Buoyed by rising appliance ownership and demand for cooling, the share of electricity in residential energy use nearly triples. Nonetheless, in the STEPS, firewood and other traditional fuels are still widely used for cooking by 2030. It would take an additional push – as in the India Vision Case and the Sustainable Development Scenario – to move all households to LPG, improved cook stoves, gas or electricity.

Today’s clean energy momentum enables India to outperform its Paris pledges

In the STEPS, India exceeds the goals set out in its Nationally Determined Contribution (NDC) under the Paris Agreement . The emissions intensity of India’s economy improves by 40% from 2005 to 2030, above the 33-35% set out in its existing NDC. And the share of non-fossil fuels in electricity generation capacity reaches almost 60%, well above the 40% that India pledged. India’s leadership in the deployment of clean energy technologies expands its market for solar PV, wind turbine and lithium-ion battery equipment to over $40 billion per year in the STEPS by 2040. As a result, 1 in every 7 dollars spent worldwide on these three types of equipment in 2040 is in India, compared with 1 in 20 today. India’s clean energy workforce grows by 1 million over the next ten years. If the approach embodied in today’s policies can be realised in full, as in the India Vision Case, higher economic growth than in the STEPS need not mean higher energy demand and emissions. In this Case, and especially in the Sustainable Development Scenario where the equipment market for solar, wind, batteries and water electrolysers rises to $80 billion per year, the industrial and commercial opportunities from clean energy are even larger.

India’s market size and global share in clean energy technologies, 2019 and in the Stated Policies Scenario, 2040

The path to a “gas-based economy” is not fully mapped out.

The market for natural gas is growing fast in India, but its role varies by sector, by scenario and over time . The 6% share of natural gas in India’s current energy mix is among the lowest in the world. It almost doubles in the STEPS as gas use rises in the industrial sector and in city gas distribution. In the India Vision Case, natural gas also helps to displace coal in power generation, bringing India’s aspiration of a “gas-based economy” closer still. However, affordability is a sensitive issue for consumers, especially given the complex patchwork of additional charges and tariffs that, on average, doubled the cost of wholesale gas by the time it reached end-users in 2019. As India builds out its gas infrastructure, natural gas can find multiple uses in India’s energy system, including to help meet air quality and near-term emissions goals if supply chains are managed responsibly. But the Sustainable Development Scenario also underlines that a long-term vision for gas needs to incorporate a growing role for biogases and low-carbon hydrogen, for which India has large potential.

Biomethane demand by sector in India in the Stated Policies Scenario, 2000-2040

Natural gas demand by sector in india in the stated policies scenario, 2000-2040, india’s faces energy security hazards ahead.

India’s combined import bill for fossil fuels triples   over the next two decades in the STEPS, with oil by far the largest component, pointing to continued risks to India’s energy security. Domestic production of oil and gas continues to fall behind consumption trends and net dependence on imported oil rises above 90% by 2040, up from 75% today. This continued reliance on imported fuels creates vulnerabilities to price cycles and volatility as well as possible disruptions to supply. Energy security hazards could arise in India’s domestic market as well, notably in the electricity sector if the necessary flexibility in power system operation does not materialise. An additional systemic threat to the reliability of electricity supply comes from the poor financial health of many electricity distribution companies. Improving the cost-reflectiveness of tariffs, the efficiency of billing and collection and reducing technical and commercial losses are key to reforming this sector.

Value of domestic production and import bills for fossil fuels in India in the Sustainable Development Scenario, 2010-2040

Value of domestic production and import bills for fossil fuels in india in the stated policies scenario, 2010-2040, booming industry and transport push up co2 emissions and harm air quality.

A 50% rise in India’s CO 2 emissions to 2040 is the largest of any country in the STEPS, even though India’s per capita CO 2 emissions remain well below the global average. The increase in India’s emissions is enough to offset entirely the projected fall in emissions in Europe over the same period. The remarkable rise of renewables arrests the growth in India’s power sector emissions in the STEPS, although this still leaves the coal-fired fleet – the fifth-largest single category of emissions worldwide today – as a major emitter of CO 2 . Alongside the option of early retirement in some cases, this puts a strong premium on policy approaches that can retool this fleet for more limited and flexible operation and/or on technologies such as carbon capture, utilisation and storage (CCUS). But the main reasons for the increase in India’s CO 2 emissions in the STEPS lie outside the power sector, in industry and transport (especially from trucks). These two sectors are also responsible for a much larger share of air pollutant emissions than the power sector in the STEPS, and a rising urban population means that more people are exposed to air pollution and suffer its ill effects. Water stress is likewise an increasingly important factor for India’s energy sector and its technology choices.

All roads to successful global clean energy transitions go via India…

As the world seeks ways to accelerate the pace of transformation in the energy sector, India is in a unique position to pioneer a new model for low-carbon, inclusive growth. Many aspects of such a model are already evident in India’s policy vision, and many more are highlighted in the Sustainable Development Scenario that points the way for India towards net-zero emissions. If this can be done, it will show the way for a whole group of energy-hungry developing economies, by demonstrating that robust economic expansion is fully compatible with an increasing pace of emissions reductions and the achievement of other development goals. India is already a global leader in solar power – and solar combined with batteries will play a massive part in India’s energy future. But India will need a whole host of technologies and policies to chart this new path. As new industrial sectors emerge and clean energy jobs grow, India will also need to ensure that no one is left behind, including in those regions that are heavily dependent on coal today.

Energy sector CO2 emissions and reduction levers in India in the Sustainable Development Scenario, 2010-2040

…and india’s energy destiny will be forged by government policies.

More than that of any other major economy, India’s energy future depends on buildings and factories yet to be built, and vehicles and appliances yet to be bought . Within 20 years, the majority of India’s emissions in the STEPS come from power plants, industrial facilities, buildings and vehicles that do not exist today. This represents a huge opening for policies to steer India onto a more secure and sustainable course. India’s ambitious renewables targets are already acting as a catalyst for the transformation of its power sector. A crucial – and even more challenging – task ahead is to put the industrial sector on a similarly new path through more widespread electrification, material and energy efficiency, technologies such as CCUS, and a switch to progressively lower-carbon fuels. Electrification, efficiency and fuel switching are also the main tools for the transport sector, alongside a determined move to build more sustainable transport infrastructure and shift more freight onto India’s soon-to-be-electrified railways. These transformations require innovation, partnerships and capital. The additional capital required for clean energy technologies to 2040 in the Sustainable Development Scenario is $1.4 trillion above the level in the STEPS. But the benefits are huge, including savings of the same magnitude on oil import bills. Government policies to accelerate India’s clean energy transition can lay the foundation for lasting prosperity and greater energy security. The stakes could not be higher, for India and for the world.

CO2 emissions from existing and new industry infrastructure in India in the Stated Policies Scenario, 2019‑2040

Co2 emissions from existing and new power infrastructure in india in the stated policies scenario, 2019‑2040, co2 emissions from existing and new buildings in india in the stated policies scenario, 2019‑2040, co2 emissions from existing and new transport infrastructure in india in the stated policies scenario, 2019‑2040, related files, documentation.

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Solar photovoltaic energy in India: business feasibility study and analogy of policies

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• Volume 5 , pages 133–144, ( 2021 )

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With a rapidly growing demand for electricity and increasing concerns to reduce the dependency on fossil fuels, India is investing heavily in renewable power generation. Solar photovoltaic (PV) energy, inherently clean and unlimited, has emerged as a great potential source of energy. This is essentially favorable for the solar industry in a tropical country like India, which is blessed with abundant sunlight for most of the year. The solar industry has finally attained grid parity and, thus, the future has a huge scope for deployment of solar technology. This paper aims to analyze the business feasibility of solar energy in India using a literature review methodology. A strategically developed business model will enable a business to reap the maximum benefits of the available opportunities. Therefore, the paper studies various solar business models in which engineering procurement construction (EPC) and manufacturers of solar gear are the two models that play a major role in this sector in India. The paper also reviews some of the key policies implemented by the government to promote PV installations. Finally, some of the major challenges, including technological, political, infrastructural, and financial barriers, as well as steps to overcome these, have also been discussed.

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Acknowledgements

The authors are grateful to Department of BBA, Scholl of Liberal Studies and Department of Chemical Engineering, School of Technology, Pandit Deendayal Petroleum University for the permission to publish this research.

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Rajshree, B., Manan, S. Solar photovoltaic energy in India: business feasibility study and analogy of policies. Int J Energ Water Res 5 , 133–144 (2021). https://doi.org/10.1007/s42108-020-00098-x

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DOI : https://doi.org/10.1007/s42108-020-00098-x

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World Journal of Science, Technology and Sustainable Development

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Article publication date: 13 July 2021

Issue publication date: 15 November 2021

Adoption of solar energy plays an important role in the growth of a country. There are many factors which influence the adoption of solar energy in India. The study is designed to identify factors that determine the acceptance or rejection of solar energy systems in India.

Design/methodology/approach

Relationship among identified variables is established through interpretive structural modelling (ISM) and thus a conceptually validated model is evolved. Further, MICMAC analysis is conducted to understand the driving power and dependence of these variables.

It is revealed that experience and habit, awareness and social influence are the intermediary variables. MICMAC Analysis shows that no variable is disconnected from the system and all the variables influence the adoption of solar energy in India.

Practical implications

The present study is expected to be useful to decision makers, end users and research organisations related to solar energy adoption.

Originality/value

Various intentional factors influencing solar energy systems adoption have been acknowledged in the present study, thus making it useful for formulation of action plans and enhance the usage of solar energy systems to improve environment quality.

• Solar energy

Acknowledgements

The authors of the study would like to give their sincere thanks to Impactful Policy Research in Social Science (IMPRESS) and Indian Council of Social Science Research (ICSSR) for funding the research and allowing us to know about the adoption level of solar energy systems in India.

Sahu, G.P. , Singh, P. and Dwivedi, P. (2021), "Adoption of solar energy in India: a study through interpretive structural modelling", World Journal of Science, Technology and Sustainable Development , Vol. 18 No. 4, pp. 457-473. https://doi.org/10.1108/WJSTSD-04-2021-0043

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Renewable energy for sustainable development in India: current status, future prospects, challenges, employment, and investment opportunities

• Charles Rajesh Kumar. J   ORCID: orcid.org/0000-0003-2354-6463 1 &
• M. A. Majid 1  

Energy, Sustainability and Society volume  10 , Article number:  2 ( 2020 ) Cite this article

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The primary objective for deploying renewable energy in India is to advance economic development, improve energy security, improve access to energy, and mitigate climate change. Sustainable development is possible by use of sustainable energy and by ensuring access to affordable, reliable, sustainable, and modern energy for citizens. Strong government support and the increasingly opportune economic situation have pushed India to be one of the top leaders in the world’s most attractive renewable energy markets. The government has designed policies, programs, and a liberal environment to attract foreign investments to ramp up the country in the renewable energy market at a rapid rate. It is anticipated that the renewable energy sector can create a large number of domestic jobs over the following years. This paper aims to present significant achievements, prospects, projections, generation of electricity, as well as challenges and investment and employment opportunities due to the development of renewable energy in India. In this review, we have identified the various obstacles faced by the renewable sector. The recommendations based on the review outcomes will provide useful information for policymakers, innovators, project developers, investors, industries, associated stakeholders and departments, researchers, and scientists.

Introduction

The sources of electricity production such as coal, oil, and natural gas have contributed to one-third of global greenhouse gas emissions. It is essential to raise the standard of living by providing cleaner and more reliable electricity [ 1 ]. India has an increasing energy demand to fulfill the economic development plans that are being implemented. The provision of increasing quanta of energy is a vital pre-requisite for the economic growth of a country [ 2 ]. The National Electricity Plan [NEP] [ 3 ] framed by the Ministry of Power (MoP) has developed a 10-year detailed action plan with the objective to provide electricity across the country, and has prepared a further plan to ensure that power is supplied to the citizens efficiently and at a reasonable cost. According to the World Resource Institute Report 2017 [ 4 , 5 ], India is responsible for nearly 6.65% of total global carbon emissions, ranked fourth next to China (26.83%), the USA (14.36%), and the EU (9.66%). Climate change might also change the ecological balance in the world. Intended Nationally Determined Contributions (INDCs) have been submitted to the United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement. The latter has hoped to achieve the goal of limiting the rise in global temperature to well below 2 °C [ 6 , 7 ]. According to a World Energy Council [ 8 ] prediction, global electricity demand will peak in 2030. India is one of the largest coal consumers in the world and imports costly fossil fuel [ 8 ]. Close to 74% of the energy demand is supplied by coal and oil. According to a report from the Center for monitoring Indian economy, the country imported 171 million tons of coal in 2013–2014, 215 million tons in 2014–2015, 207 million tons in 2015–2016, 195 million tons in 2016–2017, and 213 million tons in 2017–2018 [ 9 ]. Therefore, there is an urgent need to find alternate sources for generating electricity.

In this way, the country will have a rapid and global transition to renewable energy technologies to achieve sustainable growth and avoid catastrophic climate change. Renewable energy sources play a vital role in securing sustainable energy with lower emissions [ 10 ]. It is already accepted that renewable energy technologies might significantly cover the electricity demand and reduce emissions. In recent years, the country has developed a sustainable path for its energy supply. Awareness of saving energy has been promoted among citizens to increase the use of solar, wind, biomass, waste, and hydropower energies. It is evident that clean energy is less harmful and often cheaper. India is aiming to attain 175 GW of renewable energy which would consist of 100 GW from solar energy, 10 GW from bio-power, 60 GW from wind power, and 5 GW from small hydropower plants by the year 2022 [ 11 ]. Investors have promised to achieve more than 270 GW, which is significantly above the ambitious targets. The promises are as follows: 58 GW by foreign companies, 191 GW by private companies, 18 GW by private sectors, and 5 GW by the Indian Railways [ 12 ]. Recent estimates show that in 2047, solar potential will be more than 750 GW and wind potential will be 410 GW [ 13 , 14 ]. To reach the ambitious targets of generating 175 GW of renewable energy by 2022, it is essential that the government creates 330,000 new jobs and livelihood opportunities [ 15 , 16 ].

A mixture of push policies and pull mechanisms, accompanied by particular strategies should promote the development of renewable energy technologies. Advancement in technology, proper regulatory policies [ 17 ], tax deduction, and attempts in efficiency enhancement due to research and development (R&D) [ 18 ] are some of the pathways to conservation of energy and environment that should guarantee that renewable resource bases are used in a cost-effective and quick manner. Hence, strategies to promote investment opportunities in the renewable energy sector along with jobs for the unskilled workers, technicians, and contractors are discussed. This article also manifests technological and financial initiatives [ 19 ], policy and regulatory framework, as well as training and educational initiatives [ 20 , 21 ] launched by the government for the growth and development of renewable energy sources. The development of renewable technology has encountered explicit obstacles, and thus, there is a need to discuss these barriers. Additionally, it is also vital to discover possible solutions to overcome these barriers, and hence, proper recommendations have been suggested for the steady growth of renewable power [ 22 , 23 , 24 ]. Given the enormous potential of renewables in the country, coherent policy measures and an investor-friendly administration might be the key drivers for India to become a global leader in clean and green energy.

Projection of global primary energy consumption

An energy source is a necessary element of socio-economic development. The increasing economic growth of developing nations in the last decades has caused an accelerated increase in energy consumption. This trend is anticipated to grow [ 25 ]. A prediction of future power consumption is essential for the investigation of adequate environmental and economic policies [ 26 ]. Likewise, an outlook to future power consumption helps to determine future investments in renewable energy. Energy supply and security have not only increased the essential issues for the development of human society but also for their global political and economic patterns [ 27 ]. Hence, international comparisons are helpful to identify past, present, and future power consumption.

Table 1 shows the primary energy consumption of the world, based on the BP Energy Outlook 2018 reports. In 2016, India’s overall energy consumption was 724 million tons of oil equivalent (Mtoe) and is expected to rise to 1921 Mtoe by 2040 with an average growth rate of 4.2% per annum. Energy consumption of various major countries comprises commercially traded fuels and modern renewables used to produce power. In 2016, India was the fourth largest energy consumer in the world after China, the USA, and the Organization for economic co-operation and development (OECD) in Europe [ 29 ].

The projected estimation of global energy consumption demonstrates that energy consumption in India is continuously increasing and retains its position even in 2035/2040 [ 28 ]. The increase in India’s energy consumption will push the country’s share of global energy demand to 11% by 2040 from 5% in 2016. Emerging economies such as China, India, or Brazil have experienced a process of rapid industrialization, have increased their share in the global economy, and are exporting enormous volumes of manufactured products to developed countries. This shift of economic activities among nations has also had consequences concerning the country’s energy use [ 30 ].

Projected primary energy consumption in India

The size and growth of a country’s population significantly affects the demand for energy. With 1.368 billion citizens, India is ranked second, of the most populous countries as of January 2019 [ 31 ]. The yearly growth rate is 1.18% and represents almost 17.74% of the world’s population. The country is expected to have more than 1.383 billion, 1.512 billion, 1.605 billion, 1.658 billion people by the end of 2020, 2030, 2040, and 2050, respectively. Each year, India adds a higher number of people to the world than any other nation and the specific population of some of the states in India is equal to the population of many countries.

The growth of India’s energy consumption will be the fastest among all significant economies by 2040, with coal meeting most of this demand followed by renewable energy. Renewables became the second most significant source of domestic power production, overtaking gas and then oil, by 2020. The demand for renewables in India will have a tremendous growth of 256 Mtoe in 2040 from 17 Mtoe in 2016, with an annual increase of 12%, as shown in Table 2 .

Table 3 shows the primary energy consumption of renewables for the BRIC countries (Brazil, Russia, India, and China) from 2016 to 2040. India consumed around 17 Mtoe of renewable energy in 2016, and this will be 256 Mtoe in 2040. It is probable that India’s energy consumption will grow fastest among all major economies by 2040, with coal contributing most in meeting this demand followed by renewables. The percentage share of renewable consumption in 2016 was 2% and is predicted to increase by 13% by 2040.

How renewable energy sources contribute to the energy demand in India

Even though India has achieved a fast and remarkable economic growth, energy is still scarce. Strong economic growth in India is escalating the demand for energy, and more energy sources are required to cover this demand. At the same time, due to the increasing population and environmental deterioration, the country faces the challenge of sustainable development. The gap between demand and supply of power is expected to rise in the future [ 32 ]. Table 4 presents the power supply status of the country from 2009–2010 to 2018–2019 (until October 2018). In 2018, the energy demand was 1,212,134 GWh, and the availability was 1,203,567 GWh, i.e., a deficit of − 0.7% [ 33 ].

According to the Load generation and Balance Report (2016–2017) of the Central Electricity Authority of India (CEA), the electrical energy demand for 2021–2022 is anticipated to be at least 1915 terawatt hours (TWh), with a peak electric demand of 298 GW [ 34 ]. Increasing urbanization and rising income levels are responsible for an increased demand for electrical appliances, i.e., an increased demand for electricity in the residential sector. The increased demand in materials for buildings, transportation, capital goods, and infrastructure is driving the industrial demand for electricity. An increased mechanization and the shift to groundwater irrigation across the country is pushing the pumping and tractor demand in the agriculture sector, and hence the large diesel and electricity demand. The penetration of electric vehicles and the fuel switch to electric and induction cook stoves will drive the electricity demand in the other sectors shown in Table 5 .

According to the International Renewable Energy Agency (IRENA), a quarter of India’s energy demand can be met with renewable energy. The country could potentially increase its share of renewable power generation to over one-third by 2030 [ 35 ].

Table 6 presents the estimated contribution of renewable energy sources to the total energy demand. MoP along with CEA in its draft national electricity plan for 2016 anticipated that with 175 GW of installed capacity of renewable power by 2022, the expected electricity generation would be 327 billion units (BUs), which would contribute to 1611 BU energy requirements. This indicates that 20.3% of the energy requirements would be fulfilled by renewable energy by 2022 and 24.2% by 2027 [ 36 ]. Figure 1 shows the ambitious new target for the share of renewable energy in India’s electricity consumption set by MoP. As per the order of revised RPO (Renewable Purchase Obligations, legal act of June 2018), the country has a target of a 21% share of renewable energy in its total electricity consumption by March 2022. In 2014, the same goal was at 15% and increased to 21% by 2018. It is India’s goal to reach 40% renewable sources by 2030.

Target share of renewable energy in India’s power consumption

Estimated renewable energy potential in India

The estimated potential of wind power in the country during 1995 [ 37 ] was found to be 20,000 MW (20 GW), solar energy was 5 × 10 15 kWh/pa, bioenergy was 17,000 MW, bagasse cogeneration was 8000 MW, and small hydropower was 10,000 MW. For 2006, the renewable potential was estimated as 85,000 MW with wind 4500 MW, solar 35 MW, biomass/bioenergy 25,000 MW, and small hydropower of 15,000 MW [ 38 ]. According to the annual report of the Ministry of New and Renewable Energy (MNRE) for 2017–2018, the estimated potential of wind power was 302.251 GW (at 100-m mast height), of small hydropower 19.749 GW, biomass power 17.536 GW, bagasse cogeneration 5 GW, waste to energy (WTE) 2.554 GW, and solar 748.990 GW. The estimated total renewable potential amounted to 1096.080 GW [ 39 ] assuming 3% wasteland, which is shown in Table 7 . India is a tropical country and receives significant radiation, and hence the solar potential is very high [ 40 , 41 , 42 ].

Gross installed capacity of renewable energy in India

As of June 2018 reports, the country intends to reach 225 GW of renewable power capacity by 2022 exceeding the target of 175 GW pledged during the Paris Agreement. The sector is the fourth most attractive renewable energy market in the world. As in October 2018, India ranked fifth in installed renewable energy capacity [ 43 ].

Gross installed capacity of renewable energy—according to region

Table 8 lists the cumulative installed capacity of both conventional and renewable energy sources. The cumulative installed capacity of renewable sources as on the 31 st of December 2018 was 74081.66 MW. Renewable energy (small hydropower, wind, biomass, WTE, solar) accounted for an approximate 21% share of the cumulative installed power capacity, and the remaining 78.791% originated from other conventional sources (coal, gas diesel, nuclear, and large hydropower) [ 44 ]. The best regions for renewable energy are the southern states that have the highest solar irradiance and wind in the country. When renewable energy alone is considered for analysis, the Southern region covers 49.121% of the cumulative installed renewable capacity, followed by the Western region (29.742%), the Northern region (18.890%), the Eastern region (1.836%), the North-Easter region 0.394%, and the Islands (0.017%). As far as conventional energy is concerned, the Western region with 33.452% ranks first and is followed by the Northern region with 28.484%, the Southern region (24.967%), the Eastern region (11.716%), the Northern-Eastern (1.366%), and the Islands (0.015%).

Gross installed capacity of renewable energy—according to ownership

State government, central government, and private players drive the Indian energy sector. The private sector leads the way in renewable energy investment. Table 9 shows the installed gross renewable energy and conventional energy capacity (percentage)—ownership wise. It is evident from Fig. 2 that 95% of the installed renewable capacity derives from private companies, 2% from the central government, and 3% from the state government. The top private companies in the field of non-conventional energy generation are Tata Power Solar, Suzlon, and ReNew Power. Tata Power Solar System Limited are the most significant integrated solar power players in the country, Suzlon realizes wind energy projects, and ReNew Power Ventures operate with solar and wind power.

Gross renewable energy installed capacity (percentage)—Ownership wise as per the 31.12.2018 [ 43 ]

Gross installed capacity of renewable energy—state wise

Table 10 shows the installed capacity of cumulative renewable energy (state wise), out of the total installed capacity of 74,081.66 MW, where Karnataka ranks first with 12,953.24 MW (17.485%), Tamilnadu second with 11,934.38 MW (16%), Maharashtra third with 9283.78 MW (12.532%), Gujarat fourth with 10.641 MW (10.641%), and Rajasthan fifth with 7573.86 MW (10.224%). These five states cover almost 66.991% of the installed capacity of total renewable. Other prominent states are Andhra Pradesh (9.829%), Madhya Pradesh (5.819%), Telangana (5.137%), and Uttar Pradesh (3.879%). These nine states cover almost 91.655%.

Gross installed capacity of renewable energy—according to source

Under union budget of India 2018–2019, INR 3762 crore (USD 581.09 million), was allotted for grid-interactive renewable power schemes and projects. As per the 31.12.2018, the installed capacity of total renewable power (excluding large hydropower) in the country amounted to 74.08166 GW. Around 9.363 GW of solar energy, 1.766 GW of wind, 0.105 GW of small hydropower (SHP), and biomass power of 8.7 GW capacity were added in 2017–2018. Table 11 shows the installed capacity of renewable energy over the last 10 years until the 31.12.2018. Wind energy continues to dominate the countries renewable energy industry, accounting for over 47% of cumulative installed renewable capacity (35,138.15 MW), followed by solar power of 34% (25,212.26 MW), biomass power/cogeneration of 12% (9075.5 MW), and small hydropower of 6% (4517.45 MW). In the renewable energy country attractiveness index (RECAI) of 2018, India ranked in fourth position. The installed renewable energy production capacity has grown at an accelerated pace over the preceding few years, posting a CAGR of 19.78% between 2014 and 2018 [ 45 ] .

Estimation of the installed capacity of renewable energy

Table 12 gives the share of installed cumulative renewable energy capacity, in comparison with the installed conventional energy capacity. In 2022 and 2032, the installed renewable energy capacity will account for 32% and 35%, respectively [ 46 , 47 ]. The most significant renewable capacity expansion program in the world is being taken up by India. The government is preparing to boost the percentage of clean energy through a tremendous push in renewables, as discussed in the subsequent sections.

Gross electricity generation from renewable energy in India

The overall generation (including the generation from grid-connected renewable sources) in the country has grown exponentially. Between 2014–2015 and 2015–2016, it achieved 1110.458 BU and 1173.603 BU, respectively. The same was recorded with 1241.689 BU and 1306.614 BU during 2015–2016 and 1306.614 BU from 2016–2017 and 2017–2018, respectively. Figure 3 indicates that the annual renewable power production increased faster than the conventional power production. The rise accounted for 6.47% in 2015–2016 and 24.88% in 2017–2018, respectively. Table 13 compares the energy generation from traditional sources with that from renewable sources. Remarkably, the energy generation from conventional sources reached 811.143 BU and from renewable sources 9.860 BU in 2010 compared to 1.206.306 BU and 88.945 BU in 2017, respectively [ 48 ]. It is observed that the price of electricity production using renewable technologies is higher than that for conventional generation technologies, but is likely to fall with increasing experience in the techniques involved [ 49 ].

The annual growth in power generation as per the 30th of November 2018

Gross electricity generation from renewable energy—according to regions

Table 14 shows the gross electricity generation from renewable energy-region wise. It is noted that the highest renewable energy generation derives from the southern region, followed by the western part. As of November 2018, 50.33% of energy generation was obtained from the southern area and 29.37%, 18.05%, 2%, and 0.24% from Western, Northern, North-Eastern Areas, and the Island, respectively.

Gross electricity generation from renewable energy—according to states

Table 15 shows the gross electricity generation from renewable energy—region-wise. It is observed that the highest renewable energy generation was achieved from Karnataka (16.57%), Tamilnadu (15.82%), Andhra Pradesh (11.92%), and Gujarat (10.87%) as per November 2018. While adding four years from 2015–2016 to 2018–2019 Tamilnadu [ 50 ] remains in the first position followed by Karnataka, Maharashtra, Gujarat and Andhra Pradesh.

Gross electricity generation from renewable energy—according to sources

Table 16 shows the gross electricity generation from renewable energy—source-wise. It can be concluded from the table that the wind-based energy generation as per 2017–2018 is most prominent with 51.71%, followed by solar energy (25.40%), Bagasse (11.63%), small hydropower (7.55%), biomass (3.34%), and WTE (0.35%). There has been a constant increase in the generation of all renewable sources from 2014–2015 to date. Wind energy, as always, was the highest contributor to the total renewable power production. The percentage of solar energy produced in the overall renewable power production comes next to wind and is typically reduced during the monsoon months. The definite improvement in wind energy production can be associated with a “good” monsoon. Cyclonic action during these months also facilitates high-speed winds. Monsoon winds play a significant part in the uptick in wind power production, especially in the southern states of the country.

Estimation of gross electricity generation from renewable energy

Table 17 shows an estimation of gross electricity generation from renewable energy based on the 2015 report of the National Institution for Transforming India (NITI Aayog) [ 51 ]. It is predicted that the share of renewable power will be 10.2% by 2022, but renewable power technologies contributed a record of 13.4% to the cumulative power production in India as of the 31st of August 2018. The power ministry report shows that India generated 122.10 TWh and out of the total electricity produced, renewables generated 16.30 TWh as on the 31st of August 2018. According to the India Brand Equity Foundation report, it is anticipated that by the year 2040, around 49% of total electricity will be produced using renewable energy.

Current achievements in renewable energy 2017–2018

India cares for the planet and has taken a groundbreaking journey in renewable energy through the last 4 years [ 52 , 53 ]. A dedicated ministry along with financial and technical institutions have helped India in the promotion of renewable energy and diversification of its energy mix. The country is engaged in expanding the use of clean energy sources and has already undertaken several large-scale sustainable energy projects to ensure a massive growth of green energy.

1. India doubled its renewable power capacity in the last 4 years. The cumulative renewable power capacity in 2013–2014 reached 35,500 MW and rose to 70,000 MW in 2017–2018.

2. India stands in the fourth and sixth position regarding the cumulative installed capacity in the wind and solar sector, respectively. Furthermore, its cumulative installed renewable capacity stands in fifth position globally as of the 31st of December 2018.

3. As said above, the cumulative renewable energy capacity target for 2022 is given as 175 GW. For 2017–2018, the cumulative installed capacity amounted to 70 GW, the capacity under implementation is 15 GW and the tendered capacity was 25 GW. The target, the installed capacity, the capacity under implementation, and the tendered capacity are shown in Fig. 4 .

4. There is tremendous growth in solar power. The cumulative installed solar capacity increased by more than eight times in the last 4 years from 2.630 GW (2013–2014) to 22 GW (2017–2018). As of the 31st of December 2018, the installed capacity amounted to 25.2122 GW.

5. The renewable electricity generated in 2017–2018 was 101839 BUs.

6. The country published competitive bidding guidelines for the production of renewable power. It also discovered the lowest tariff and transparent bidding method and resulted in a notable decrease in per unit cost of renewable energy.

7. In 21 states, there are 41 solar parks with a cumulative capacity of more than 26,144 MW that have already been approved by the MNRE. The Kurnool solar park was set up with 1000 MW; and with 2000 MW the largest solar park of Pavagada (Karnataka) is currently under installation.

8. The target for solar power (ground mounted) for 2018–2019 is given as 10 GW, and solar power (Rooftop) as 1 GW.

9. MNRE doubled the target for solar parks (projects of 500 MW or more) from 20 to 40 GW.

10. The cumulative installed capacity of wind power increased by 1.6 times in the last 4 years. In 2013–2014, it amounted to 21 GW, from 2017 to 2018 it amounted to 34 GW, and as of 31st of December 2018, it reached 35.138 GW. This shows that achievements were completed in wind power use.

11. An offshore wind policy was announced. Thirty-four companies (most significant global and domestic wind power players) competed in the “expression of interest” (EoI) floated on the plan to set up India’s first mega offshore wind farm with a capacity of 1 GW.

12. 682 MW small hydropower projects were installed during the last 4 years along with 600 watermills (mechanical applications) and 132 projects still under development.

13. MNRE is implementing green energy corridors to expand the transmission system. 9400 km of green energy corridors are completed or under implementation. The cost spent on it was INR 10141 crore (101,410 Million INR = 1425.01 USD). Furthermore, the total capacity of 19,000 MVA substations is now planned to be complete by March 2020.

14. MNRE is setting up solar pumps (off-grid application), where 90% of pumps have been set up as of today and between 2014–2015 and 2017–2018. Solar street lights were more than doubled. Solar home lighting systems have been improved by around 1.5 times. More than 2,575,000 solar lamps have been distributed to students. The details are illustrated in Fig. 5 .

15. From 2014–2015 to 2017–2018, more than 2.5 lakh (0.25 million) biogas plants were set up for cooking in rural homes to enable families by providing them access to clean fuel.

16. New policy initiatives revised the tariff policy mandating purchase and generation obligations (RPO and RGO). Four wind and solar inter-state transmission were waived; charges were planned, the RPO trajectory for 2022 and renewable energy policy was finalized.

17. Expressions of interest (EoI) were invited for installing solar photovoltaic manufacturing capacities associated with the guaranteed off-take of 20 GW. EoI indicated 10 GW floating solar energy plants.

18. Policy for the solar-wind hybrid was announced. Tender for setting up 2 GW solar-wind hybrid systems in existing projects was invited.

19. To facilitate R&D in renewable power technology, a National lab policy on testing, standardization, and certification was announced by the MNRE.

20. The Surya Mitra program was conducted to train college graduates in the installation, commissioning, operations, and management of solar panels. The International Solar Alliance (ISA) headquarters in India (Gurgaon) will be a new commencement for solar energy improvement in India.

21. The renewable sector has become considerably more attractive for foreign and domestic investors, and the country expects to attract up to USD 80 billion in the next 4 years from 2018–2019 to 2021–2022.

22. The solar power capacity expanded by more than eight times from 2.63 GW in 2013–2014 to 22 GW in 2017–2018.

23. A bidding for 115 GW renewable energy projects up to March 2020 was announced.

24. The Bureau of Indian Standards (BIS) acting for system/components of solar PV was established.

25. To recognize and encourage innovative ideas in renewable energy sectors, the Government provides prizes and awards. Creative ideas/concepts should lead to prototype development. The Name of the award is “Abhinav Soch-Nayi Sambhawanaye,” which means Innovative ideas—New possibilities.

Renewable energy target, installed capacity, under implementation and tendered [ 52 ]

Off-grid solar applications [ 52 ]

Solar energy

Under the National Solar Mission, the MNRE has updated the objective of grid-connected solar power projects from 20 GW by the year 2021–2022 to 100 GW by the year 2021–2022. In 2008–2009, it reached just 6 MW. The “Made in India” initiative to promote domestic manufacturing supported this great height in solar installation capacity. Currently, India has the fifth highest solar installed capacity worldwide. By the 31st of December 2018, solar energy had achieved 25,212.26 MW against the target of 2022, and a further 22.8 GW of capacity has been tendered out or is under current implementation. MNRE is preparing to bid out the remaining solar energy capacity every year for the periods 2018–2019 and 2019–2020 so that bidding may contribute with 100 GW capacity additions by March 2020. In this way, 2 years for the completion of projects would remain. Tariffs will be determined through the competitive bidding process (reverse e-auction) to bring down tariffs significantly. The lowest solar tariff was identified to be INR 2.44 per kWh in July 2018. In 2010, solar tariffs amounted to INR 18 per kWh. Over 100,000 lakh (10,000 million) acres of land had been classified for several planned solar parks, out of which over 75,000 acres had been obtained. As of November 2018, 47 solar parks of a total capacity of 26,694 MW were established. The aggregate capacity of 4195 MW of solar projects has been commissioned inside various solar parks (floating solar power). Table 18 shows the capacity addition compared to the target. It indicates that capacity addition increased exponentially.

Wind energy

As of the 31st of December 2018, the total installed capacity of India amounted to 35,138.15 MW compared to a target of 60 GW by 2022. India is currently in fourth position in the world for installed capacity of wind power. Moreover, around 9.4 GW capacity has been tendered out or is under current implementation. The MNRE is preparing to bid out for A 10 GW wind energy capacity every year for 2018–2019 and 2019–2020, so that bidding will allow for 60 GW capacity additions by March 2020, giving the remaining two years for the accomplishment of the projects. The gross wind energy potential of the country now reaches 302 GW at a 100 m above-ground level. The tariff administration has been changed from feed-in-tariff (FiT) to the bidding method for capacity addition. On the 8th of December 2017, the ministry published guidelines for a tariff-based competitive bidding rule for the acquisition of energy from grid-connected wind energy projects. The developed transparent process of bidding lowered the tariff for wind power to its lowest level ever. The development of the wind industry has risen in a robust ecosystem ensuring project execution abilities and a manufacturing base. State-of-the-art technologies are now available for the production of wind turbines. All the major global players in wind power have their presence in India. More than 12 different companies manufacture more than 24 various models of wind turbines in India. India exports wind turbines and components to the USA, Europe, Australia, Brazil, and other Asian countries. Around 70–80% of the domestic production has been accomplished with strong domestic manufacturing companies. Table 19 lists the capacity addition compared to the target for the capacity addition. Furthermore, electricity generation from the wind-based capacity has improved, even though there was a slowdown of new capacity in the first half of 2018–2019 and 2017–2018.

The national energy storage mission—2018

The country is working toward a National Energy Storage Mission. A draft of the National Energy Storage Mission was proposed in February 2018 and initiated to develop a comprehensive policy and regulatory framework. During the last 4 years, projects included in R&D worth INR 115.8 million (USD 1.66 million) in the domain of energy storage have been launched, and a corpus of INR 48.2 million (USD 0.7 million) has been issued. India’s energy storage mission will provide an opportunity for globally competitive battery manufacturing. By increasing the battery manufacturing expertise and scaling up its national production capacity, the country can make a substantial economic contribution in this crucial sector. The mission aims to identify the cumulative battery requirements, total market size, imports, and domestic manufacturing. Table 20 presents the economic opportunity from battery manufacturing given by the National Institution for Transforming India, also called NITI Aayog, which provides relevant technical advice to central and state governments while designing strategic and long-term policies and programs for the Indian government.

Small hydropower—3-year action agenda—2017

Hydro projects are classified as large hydro, small hydro (2 to 25 MW), micro-hydro (up to 100 kW), and mini-hydropower (100 kW to 2 MW) projects. Whereas the estimated potential of SHP is 20 GW, the 2022 target for India in SHP is 5 GW. As of the 31st of December 2018, the country has achieved 4.5 GW and this production is constantly increasing. The objective, which was planned to be accomplished through infrastructure project grants and tariff support, was included in the NITI Aayog’s 3-year action agenda (2017–2018 to 2019–2020), which was published on the 1st of August 2017. MNRE is providing central financial assistance (CFA) to set up small/micro hydro projects both in the public and private sector. For the identification of new potential locations, surveys and comprehensive project reports are elaborated, and financial support for the renovation and modernization of old projects is provided. The Ministry has established a dedicated completely automatic supervisory control and data acquisition (SCADA)—based on a hydraulic turbine R&D laboratory at the Alternate Hydro Energy Center (AHEC) at IIT Roorkee. The establishment cost for the lab was INR 40 crore (400 million INR, 95.62 Million USD), and the laboratory will serve as a design and validation facility. It investigates hydro turbines and other hydro-mechanical devices adhering to national and international standards [ 54 , 55 ]. Table 21 shows the target and achievements from 2007–2008 to 2018–2019.

National policy regarding biofuels—2018

Modernization has generated an opportunity for a stable change in the use of bioenergy in India. MNRE amended the current policy for biomass in May 2018. The policy presents CFA for projects using biomass such as agriculture-based industrial residues, wood produced through energy plantations, bagasse, crop residues, wood waste generated from industrial operations, and weeds. Under the policy, CFA will be provided to the projects at the rate of INR 2.5 million (USD 35,477.7) per MW for bagasse cogeneration and INR 5 million (USD 70,955.5) per MW for non-bagasse cogeneration. The MNRE also announced a memorandum in November 2018 considering the continuation of the concessional customs duty certificate (CCDC) to set up projects for the production of energy using non-conventional materials such as bio-waste, agricultural, forestry, poultry litter, agro-industrial, industrial, municipal, and urban wastes. The government recently established the National policy on biofuels in August 2018. The MNRE invited an expression of interest (EOI) to estimate the potential of biomass energy and bagasse cogeneration in the country. A program to encourage the promotion of biomass-based cogeneration in sugar mills and other industries was also launched in May 2018. Table 22 shows how the biomass power target and achievements are expected to reach 10 GW of the target of 2022 before the end of 2019.

The new national biogas and organic manure program (NNBOMP)—2018

The National biogas and manure management programme (NBMMP) was launched in 2012–2013. The primary objective was to provide clean gaseous fuel for cooking, where the remaining slurry was organic bio-manure which is rich in nitrogen, phosphorus, and potassium. Further, 47.5 lakh (4.75 million) cumulative biogas plants were completed in 2014, and increased to 49.8 lakh (4.98 million). During 2017–2018, the target was to establish 1.10 lakh biogas plants (1.10 million), but resulted in 0.15 lakh (0.015 million). In this way, the cost of refilling the gas cylinders with liquefied petroleum gas (LPG) was greatly reduced. Likewise, tons of wood/trees were protected from being axed, as wood is traditionally used as a fuel in rural and semi-urban households. Biogas is a viable alternative to traditional cooking fuels. The scheme generated employment for almost 300 skilled laborers for setting up the biogas plants. By 30th of May 2018, the Ministry had issued guidelines for the implementation of the NNBOMP during the period 2017–2018 to 2019–2020 [ 56 ].

The off-grid and decentralized solar photovoltaic application program—2018

The program deals with the energy demand through the deployment of solar lanterns, solar streetlights, solar home lights, and solar pumps. The plan intended to reach 118 MWp of off-grid PV capacity by 2020. The sanctioning target proposed outlay was 50 MWp by 2017–2018 and 68 MWp by 2019–2020. The total estimated cost amounted to INR 1895 crore (18950 Million INR, 265.547 million USD), and the ministry wanted to support 637 crores (6370 million INR, 89.263 million USD) by its central finance assistance. Solar power plants with a 25 KWp size were promoted in those areas where grid power does not reach households or is not reliable. Public service institutions, schools, panchayats, hostels, as well as police stations will benefit from this scheme. Solar study lamps were also included as a component in the program. Thirty percent of financial assistance was provided to solar power plants. Every student should bear 15% of the lamp cost, and the ministry wanted to support the remaining 85%. As of October 2018, lantern and lamps of more than 40 Lakhs (4 million), home lights of 16.72 lakhs (1.672 million) number, street lights of 6.40 lakhs (0.64 million), solar pumps of 1.96 lakhs (0.196 million), and 187.99 MWp stand-alone devices had been installed [ 57 , 58 ].

Major government initiatives for renewable energy

Technological initiatives.

The Technology Development and Innovation Policy (TDIP) released on the 6th of October 2017 was endeavored to promote research, development, and demonstration (RD&D) in the renewable energy sector [ 59 ]. RD&D intended to evaluate resources, progress in technology, commercialization, and the presentation of renewable energy technologies across the country. It aimed to produce renewable power devices and systems domestically. The evaluation of standards and resources, processes, materials, components, products, services, and sub-systems was carried out through RD&D. A development of the market, efficiency improvements, cost reductions, and a promotion of commercialization (scalability and bankability) were achieved through RD&D. Likewise, the percentage of renewable energy in the total electricity mix made it self-sustainable, industrially competitive, and profitable through RD&D. RD&D also supported technology development and demonstration in wind, solar, wind-solar hybrid, biofuel, biogas, hydrogen fuel cells, and geothermal energies. RD&D supported the R&D units of educational institutions, industries, and non-government organizations (NGOs). Sharing expertise, information, as well as institutional mechanisms for collaboration was realized by use of the technology development program (TDP). The various people involved in this program were policymakers, industrial innovators, associated stakeholders and departments, researchers, and scientists. Renowned R&D centers in India are the National Institute of Solar Energy (NISE), Gurgaon, the National Institute of Bio-Energy (NIBE), Kapurthala, and the National Institute of Wind Energy (NIWE), Chennai. The TDP strategy encouraged the exploration of innovative approaches and possibilities to obtain long-term targets. Likewise, it efficiently supported the transformation of knowledge into technology through a well-established monitoring system for the development of renewable technology that meets the electricity needs of India. The research center of excellence approved the TDI projects, which were funded to strengthen R&D. Funds were provided for conducting training and workshops. The MNRE is now preparing a database of R&D accomplishments in the renewable energy sector.

The Impacting Research Innovation and Technology (IMPRINT) program seeks to develop engineering and technology (prototype/process development) on a national scale. IMPRINT is steered by the Indian Institute of Technologies (IITs) and Indian Institute of science (IISCs). The expansion covers all areas of engineering and technology including renewable technology. The ministry of human resource development (MHRD) finances up to 50% of the total cost of the project. The remaining costs of the project are financed by the ministry (MNRE) via the RD&D program for renewable projects. Currently (2018–2019), five projects are under implementation in the area of solar thermal systems, storage for SPV, biofuel, and hydrogen and fuel cells which are funded by the MNRE (36.9 million INR, 0.518426 Million USD) and IMPRINT. Development of domestic technology and quality control are promoted through lab policies that were published on the 7th of December 2017. Lab policies were implemented to test, standardize, and certify renewable energy products and projects. They supported the improvement of the reliability and quality of the projects. Furthermore, Indian test labs are strengthened in line with international standards and practices through well-established lab policies. From 2015, the MNRE has provided “The New and Renewable Energy Young Scientist’s Award” to researchers/scientists who demonstrate exceptional accomplishments in renewable R&D.

Financial initiatives

One hundred percent financial assistance is granted by the MNRE to the government and NGOs and 50% financial support to the industry. The policy framework was developed to guide the identification of the project, the formulation, monitoring appraisal, approval, and financing. Between 2012 and 2017, a 4467.8 million INR, 62.52 Million USD) support was granted by the MNRE. The MNRE wanted to double the budget for technology development efforts in renewable energy for the current three-year plan period. Table 23 shows that the government is spending more and more for the development of the renewable energy sector. Financial support was provided to R&D projects. Exceptional consideration was given to projects that worked under extreme and hazardous conditions. Furthermore, financial support was applied to organizing awareness programs, demonstrations, training, workshops, surveys, assessment studies, etc. Innovative approaches will be rewarded with cash prizes. The winners will be presented with a support mechanism for transforming their ideas and prototypes into marketable commodities such as start-ups for entrepreneur development. Innovative projects will be financed via start-up support mechanisms, which will include an investment contract with investors. The MNRE provides funds to proposals for investigating policies and performance analyses related to renewable energy.

Technology validation and demonstration projects and other innovative projects with regard to renewables received a financial assistance of 50% of the project cost. The CFA applied to partnerships with industry and private institutions including engineering colleges. Private academic institutions, accredited by a government accreditation body, were also eligible to receive a 50% support. The concerned industries and institutions should meet the remaining 50% expenditure. The MNRE allocated an INR 3762.50 crore (INR 37625 million, 528.634 million USD) for the grid interactive renewable sources and an INR 1036.50 crore (INR 10365 million, 145.629 million USD) for off-grid/distributed and decentralized renewable power for the year 2018–2019 [ 60 ]. The MNRE asked the Reserve Bank of India (RBI), attempting to build renewable power projects under “priority sector lending” (priority lending should be done for renewable energy projects and without any limit) and to eliminate the obstacles in the financing of renewable energy projects. In July 2018, the Ministry of Finance announced that it would impose a 25% safeguard duty on solar panels and modules imported from China and Malaysia for 1 year. The quantum of tax might be reduced to 20% for the next 6 months, and 15% for the following 6 months.

Policy and regulatory framework initiatives

The regulatory interventions for the development of renewable energy sources are (a) tariff determination, (b) defining RPO, (c) promoting grid connectivity, and (d) promoting the expansion of the market.

Tariff policy amendments—2018

On the 30th of May 2018, the MoP released draft amendments to the tariff policy. The objective of these policies was to promote electricity generation from renewables. MoP in consultation with MNRE announced the long-term trajectory for RPO, which is represented in Table 24 . The State Electricity Regulatory Commission (SERC) achieved a favorable and neutral/off-putting effect in the growth of the renewable power sector through their RPO regulations in consultation with the MNRE. On the 25th of May 2018, the MNRE created an RPO compliance cell to reach India’s solar and wind power goals. Due to the absence of implementation of RPO regulations, several states in India did not meet their specified RPO objectives. The cell will operate along with the Central Electricity Regulatory Commission (CERC) and SERCs to obtain monthly statements on RPO compliance. It will also take up non-compliance associated concerns with the relevant officials.

Repowering policy—2016

On the 09th of August 2016, India announced a “repowering policy” for wind energy projects. An about 27 GW turnaround was possible according to the policy. This policy supports the replacing of aging wind turbines with more modern and powerful units (fewer, larger, taller) to raise the level of electricity generation. This policy seeks to create a simplified framework and to promote an optimized use of wind power resources. It is mandatory because the up to the year 2000 installed wind turbines were below 500 kW in sites where high wind potential might be achieved. It will be possible to obtain 3000 MW from the same location once replacements are in place. The policy was initially applied for the one MW installed capacity of wind turbines, and the MNRE will extend the repowering policy to other projects in the future based on experience. Repowering projects were implemented by the respective state nodal agencies/organizations that were involved in wind energy promotion in their states. The policy provided an exception from the Power Purchase Agreement (PPA) for wind farms/turbines undergoing repowering because they could not fulfill the requirements according to the PPA during repowering. The repowering projects may avail accelerated depreciation (AD) benefit or generation-based incentive (GBI) due to the conditions appropriate to new wind energy projects [ 61 ].

The wind-solar hybrid policy—2018

On the 14th of May 2018, the MNRE announced a national wind-solar hybrid policy. This policy supported new projects (large grid-connected wind-solar photovoltaic hybrid systems) and the hybridization of the already available projects. These projects tried to achieve an optimal and efficient use of transmission infrastructure and land. Better grid stability was achieved and the variability in renewable power generation was reduced. The best part of the policy intervention was that which supported the hybridization of existing plants. The tariff-based transparent bidding process was included in the policy. Regulatory authorities should formulate the necessary standards and regulations for hybrid systems. The policy also highlighted a battery storage in hybrid projects for output optimization and variability reduction [ 62 ].

The national offshore wind energy policy—2015

The National Offshore Wind Policy was released in October 2015. On the 19th of June 2018, the MNRE announced a medium-term target of 5 GW by 2022 and a long-term target of 30 GW by 2030. The MNRE called expressions of Interest (EoI) for the first 1 GW of offshore wind (the last date was 08.06.2018). The EoI site is located in Pipavav port at the Gulf of Khambhat at a distance of 23 km facilitating offshore wind (FOWIND) where the consortium deployed light detection and ranging (LiDAR) in November 2017). Pipavav port is situated off the coast of Gujarat. The MNRE had planned to install more such equipment in the states of Tamil Nadu and Gujarat. On the 14 th of December 2018, the MNRE, through the National Institute of Wind Energy (NIWE), called tender for offshore environmental impact assessment studies at intended LIDAR points at the Gulf of Mannar, off the coast of Tamil Nadu for offshore wind measurement. The timeline for initiatives was to firstly add 500 MW by 2022, 2 to 2.5 GW by 2027, and eventually reaching 5 GW between 2028 and 2032. Even though the installation of large wind power turbines in open seas is a challenging task, the government has endeavored to promote this offshore sector. Offshore wind energy would add its contribution to the already existing renewable energy mix for India [ 63 ] .

The feed-in tariff policy—2018

On the 28th of January 2016, the revised tariff policy was notified following the Electricity Act. On the 30th May 2018, the amendment in tariff policy was released. The intentions of this tariff policy are (a) an inexpensive and competitive electricity rate for the consumers; (b) to attract investment and financial viability; (c) to ensure that the perceptions of regulatory risks decrease through predictability, consistency, and transparency of policy measures; (d) development in quality of supply, increased operational efficiency, and improved competition; (e) increase the production of electricity from wind, solar, biomass, and small hydro; (f) peaking reserves that are acceptable in quantity or consistently good in quality or performance of grid operation where variable renewable energy source integration is provided through the promotion of hydroelectric power generation, including pumped storage projects (PSP); (g) to achieve better consumer services through efficient and reliable electricity infrastructure; (h) to supply sufficient and uninterrupted electricity to every level of consumers; and (i) to create adequate capacity, reserves in the production, transmission, and distribution that is sufficient for the reliability of supply of power to customers [ 64 ].

Training and educational initiatives

The MHRD has developed strong renewable energy education and training systems. The National Council for Vocational Training (NCVT) develops course modules, and a Modular Employable Skilling program (MES) in its regular 2-year syllabus to include SPV lighting systems, solar thermal systems, SHP, and provides the certificate for seven trades after the completion of a 2-year course. The seven trades are plumber, fitter, carpenter, welder, machinist, and electrician. The Ministry of Skill Development and Entrepreneurship (MSDE) worked out a national skill development policy in 2015. They provide regular training programs to create various job roles in renewable energy along with the MNRE support through a skill council for green jobs (SCGJ), the National Occupational Standards (NOS), and the Qualification Pack (QP). The SCGJ is promoted by the Confederation of Indian Industry (CII) and the MNRE. The industry partner for the SCGJ is ReNew Power [ 65 , 66 ].

The global status of India in renewable energy

Table 25 shows the RECAI (Renewable Energy Country Attractiveness Index) report of 40 countries. This report is based on the attractiveness of renewable energy investment and deployment opportunities. RECAI is based on macro vitals such as economic stability, investment climate, energy imperatives such as security and supply, clean energy gap, and affordability. It also includes policy enablement such as political stability and support for renewables. Its emphasis lies on project delivery parameters such as energy market access, infrastructure, and distributed generation, finance, cost and availability, and transaction liquidity. Technology potentials such as natural resources, power take-off attractiveness, potential support, technology maturity, and forecast growth are taken into consideration for ranking. India has moved to the fourth position of the RECAI-2018. Indian solar installations (new large-scale and rooftop solar capacities) in the calendar year 2017 increased exponentially with the addition of 9629 MW, whereas in 2016 it was 4313 MW. The warning of solar import tariffs and conflicts between developers and distribution firms are growing investor concerns [ 67 ]. Figure 6 shows the details of the installed capacity of global renewable energy in 2016 and 2017. Globally, 2017 GW renewable energy was installed in 2016, and in 2017, it increased to 2195 GW. Table 26 shows the total capacity addition of top countries until 2017. The country ranked fifth in renewable power capacity (including hydro energy), renewable power capacity (not including hydro energy) in fourth position, concentrating solar thermal power (CSP) and wind power were also in fourth position [ 68 ].

Globally installed capacity of renewable energy in 2017—Global 2018 status report with regard to renewables [ 68 ]

The investment opportunities in renewable energy in India

The investments into renewable energy in India increased by 22% in the first half of 2018 compared to 2017, while the investments in China dropped by 15% during the same period, according to a statement by the Bloomberg New Energy Finance (BNEF), which is shown in Table 27 [ 69 , 70 ]. At this rate, India is expected to overtake China and become the most significant growth market for renewable energy by the end of 2020. The country is eyeing pole position for transformation in renewable energy by reaching 175 GW by 2020. To achieve this target, it is quickly ramping up investments in this sector. The country added more renewable capacity than conventional capacity in 2018 when compared to 2017. India hosted the ISA first official summit on the 11.03.2018 for 121 countries. This will provide a standard platform to work toward the ambitious targets for renewable energy. The summit will emphasize India’s dedication to meet global engagements in a time-bound method. The country is also constructing many sizeable solar power parks comparable to, but larger than, those in China. Half of the earth’s ten biggest solar parks under development are in India.

In 2014, the world largest solar park was the Topaz solar farm in California with a 550 MW facility. In 2015, another operator in California, Solar Star, edged its capacity up to 579 MW. By 2016, India’s Kamuthi Solar Power Project in Tamil Nadu was on top with 648 MW of capacity (set up by the Adani Green Energy, part of the Adani Group, in Tamil Nadu). As of February 2017, the Longyangxia Dam Solar Park in China was the new leader, with 850 MW of capacity [ 71 ]. Currently, there are 600 MW operating units and 1400 MW units under construction. The Shakti Sthala solar park was inaugurated on 01.03.2018 in Pavagada (Karnataka, India) which is expected to become the globe’s most significant solar park when it accomplishes its full potential of 2 GW. Another large solar park with 1.5 GW is scheduled to be built in the Kadappa region [ 72 ]. The progress in solar power is remarkable and demonstrates real clean energy development on the ground.

The Kurnool ultra-mega solar park generated 800 million units (MU) of energy in October 2018 and saved over 700,000 tons of CO 2 . Rainwater was harvested using a reservoir that helps in cleaning solar panels and supplying water. The country is making remarkable progress in solar energy. The Kamuthi solar farm is cleaned each day by a robotic system. As the Indian economy expands, electricity consumption is forecasted to reach 15,280 TWh in 2040. With the government’s intent, green energy objectives, i.e., the renewable sector, grow considerably in an attractive manner with both foreign and domestic investors. It is anticipated to attract investments of up to USD 80 billion in the subsequent 4 years. The government of India has raised its 175 GW target to 225 GW of renewable energy capacity by 2022. The competitive benefit is that the country has sun exposure possible throughout the year and has an enormous hydropower potential. India was also listed fourth in the EY renewable energy country attractive index 2018. Sixty solar cities will be built in India as a section of MNRE’s “Solar cities” program.

In a regular auction, reduction in tariffs cost of the projects are the competitive benefits in the country. India accounts for about 4% of the total global electricity generation capacity and has the fourth highest installed capacity of wind energy and the third highest installed capacity of CSP. The solar installation in India erected during 2015–2016, 2016–2017, 2017–2018, and 2018–2019 was 3.01 GW, 5.52 GW, 9.36 GW, and 6.53 GW, respectively. The country aims to add 8.5 GW during 2019–2020. Due to its advantageous location in the solar belt (400 South to 400 North), the country is one of the largest beneficiaries of solar energy with relatively ample availability. An increase in the installed capacity of solar power is anticipated to exceed the installed capacity of wind energy, approaching 100 GW by 2022 from its current levels of 25.21226 GW as of December 2018. Fast falling prices have made Solar PV the biggest market for new investments. Under the Union Budget 2018–2019, a zero import tax on parts used in manufacturing solar panels was launched to provide an advantage to domestic solar panel companies [ 73 ].

Foreign direct investment (FDI) inflows in the renewable energy sector of India between April 2000 and June 2018 amounted to USD 6.84 billion according to the report of the department of industrial policy and promotion (DIPP). The DIPP was renamed (gazette notification 27.01.2019) the Department for the Promotion of Industry and Internal Trade (DPIIT). It is responsible for the development of domestic trade, retail trade, trader’s welfare including their employees as well as concerns associated with activities in facilitating and supporting business and startups. Since 2014, more than 42 billion USD have been invested in India’s renewable power sector. India reached US$ 7.4 billion in investments in the first half of 2018. Between April 2015 and June 2018, the country received USD 3.2 billion FDI in the renewable sector. The year-wise inflows expanded from USD 776 million in 2015–2016 to USD 783 million in 2016–2017 and USD 1204 million in 2017–2018. Between January to March of 2018, the INR 452 crore (4520 Million INR, 63.3389 million USD) of the FDI had already come in. The country is contributing with financial and promotional incentives that include a capital subsidy, accelerated depreciation (AD), waiver of inter-state transmission charges and losses, viability gap funding (VGF), and FDI up to 100% under the automated track.

The DIPP/DPIIT compiles and manages the data of the FDI equity inflow received in India [ 74 ]. The FDI equity inflow between April 2015 and June 2018 in the renewable sector is illustrated in Fig. 7 . It shows that the 2018–2019 3 months’ FDI equity inflow is half of that of the entire one of 2017–2018. It is evident from the figure that India has well-established FDI equity inflows. The significant FDI investments in the renewable energy sectors are shown in Table 28 . The collaboration between the Asian development bank and Renew Power Ventures private limited with 44.69 million USD ranked first followed by AIRRO Singapore with Diligent power with FDI equity inflow of 44.69 USD million.

The FDI equity inflow received between April 2015 and June 2018 in the renewable energy sector [ 73 ]

Strategies to promote investments

Strategies to promote investments (including FDI) by investors in the renewable sector:

Decrease constraints on FDI; provide open, transparent, and dependable conditions for foreign and domestic firms; and include ease of doing business, access to imports, comparatively flexible labor markets, and safeguard of intellectual property rights.

Establish an investment promotion agency (IPA) that targets suitable foreign investors and connects them as a catalyst with the domestic economy. Assist the IPA to present top-notch infrastructure and immediate access to skilled workers, technicians, engineers, and managers that might be needed to attract such investors. Furthermore, it should involve an after-investment care, recognizing the demonstration effects from satisfied investors, the potential for reinvestments, and the potential for cluster-development due to follow-up investments.

It is essential to consider the targeted sector (wind, solar, SPH or biomass, respectively) for which investments are required.

Establish the infrastructure needed for a quality investor, including adequate close-by transport facilities (airport, ports), a sufficient and steady supply of energy, a provision of a sufficiently skilled workforce, the facilities for the vocational training of specialized operators, ideally designed in collaboration with the investor.

Policy and other support mechanisms such as Power Purchase Agreements (PPA) play an influential role in underpinning returns and restricting uncertainties for project developers, indirectly supporting the availability of investment. Investors in renewable energy projects have historically relied on government policies to give them confidence about the costs necessary for electricity produced—and therefore for project revenues. Reassurance of future power costs for project developers is secured by signing a PPA with either a utility or an essential corporate buyer of electricity.

FiT have been the most conventional approach around the globe over the last decade to stimulate investments in renewable power projects. Set by the government concerned, they lay down an electricity tariff that developers of qualifying new projects might anticipate to receive for the resulting electricity over a long interval (15–20 years). These present investors in the tax equity of renewable power projects with a credit that they can manage to offset the tax burden outside in their businesses.

Table 29 presents the 2018 renewable energy investment report, source-wise, by the significant players in renewables according to the report of the Bloomberg New Energy Finance Report 2018. As per this report, global investment in renewable energy was USD of 279.8 billion in 2017. The top ten in the total global investments are China (126.1 $BN), the USA (40.5 $BN), Japan (13.4 $BN), India (10.9 $BN), Germany (10.4 $BN), Australia (8.5 $BN), UK (7.6 $BN), Brazil (6.0 $BN), Mexico (6.0 $BN), and Sweden (3.7 $BN) [ 75 ]. This achievement was possible since those countries have well-established strategies for promoting investments [ 76 , 77 ].

The appropriate objectives for renewable power expansion and investments are closely related to the Nationally Determined Contributions (NDCs) objectives, the implementation of the NDC, on the road to achieving Paris promises, policy competence, policy reliability, market absorption capacity, and nationwide investment circumstances that are the real purposes for renewable power expansion, which is a significant factor for the investment strategies, as is shown in Table 30 .

The demand for investments for building a Paris-compatible and climate-resilient energy support remains high, particularly in emerging nations. Future investments in energy grids and energy flexibility are of particular significance. The strategies and the comparison chart between China, India, and the USA are presented in Table 31 .

Table 32 shows France in the first place due to overall favorable conditions for renewables, heading the G20 in investment attractiveness of renewables. Germany drops back one spot due to a decline in the quality of the global policy environment for renewables and some insufficiencies in the policy design, as does the UK. Overall, with four European countries on top of the list, Europe, however, directs the way in providing attractive conditions for investing in renewables. Despite high scores for various nations, no single government is yet close to growing a role model. All countries still have significant room for increasing investment demands to deploy renewables at the scale required to reach the Paris objectives. The table shown is based on the Paris compatible long-term vision, the policy environment for renewable energy, the conditions for system integration, the market absorption capacity, and general investment conditions. India moved from the 11th position to the 9th position in overall investments between 2017 and 2018.

A Paris compatible long-term vision includes a de-carbonization plan for the power system, the renewable power ambition, the coal and oil decrease, and the reliability of renewables policies. Direct support policies include medium-term certainty of policy signals, streamlined administrative procedures, ensuring project realization, facilitating the use of produced electricity. Conditions for system integration include system integration-grid codes, system integration-storage promotion, and demand-side management policies. A market absorption capacity includes a prior experience with renewable technologies, a current activity with renewable installations, and a presence of major renewable energy companies. General investment conditions include non-financial determinants, depth of the financial sector as well, as an inflation forecast.

Employment opportunities for citizens in renewable energy in India

Global employment scenario.

According to the 2018 Annual review of the IRENA [ 78 ], global renewable energy employment touched 10.3 million jobs in 2017, an improvement of 5.3% compared with the quantity published in 2016. Many socio-economic advantages derive from renewable power, but employment continues to be exceptionally centralized in a handful of countries, with China, Brazil, the USA, India, Germany, and Japan in the lead. In solar PV employment (3.4 million jobs), China is the leader (65% of PV Jobs) which is followed by Japan, USA, India, Bangladesh, Malaysia, Germany, Philippines, and Turkey. In biofuels employment (1.9 million jobs), Brazil is the leader (41% of PV Jobs) followed by the USA, Colombia, Indonesia, Thailand, Malaysia, China, and India. In wind employment (1.1 million jobs), China is the leader (44% of PV Jobs) followed by Germany, USA, India, UK, Brazil, Denmark, Netherlands, France, and Spain.

Table 33 shows global renewable energy employment in the corresponding technology branches. As in past years, China maintained the most notable number of people employed (3880 million jobs) estimating for 43% of the globe’s total which is shown in Fig. 8 . In India, new solar installations touched a record of 9.6 GW in 2017, efficiently increasing the total installed capacity. The employment in solar PV improved by 36% and reached 164,400 jobs, of which 92,400 represented on-grid use. IRENA determines that the building and installation covered 46% of these jobs, with operations and maintenance (O&M) representing 35% and 19%, individually. India does not produce solar PV because it could be imported from China, which is inexpensive. The market share of domestic companies (Indian supplier to renewable projects) declined from 13% in 2014–2015 to 7% in 2017–2018. If India starts the manufacturing base, more citizens will get jobs in the manufacturing field. India had the world’s fifth most significant additions of 4.1 GW to wind capacity in 2017 and the fourth largest cumulative capacity in 2018. IRENA predicts that jobs in the wind sector stood at 60,500.

Renewable energy employment in selected countries [ 79 ]

The jobs in renewables are categorized into technological development, installation/de-installation, operation, and maintenance. Tables 34 , 35 , 36 , and 37 show the wind industry, solar energy, biomass, and small hydro-related jobs in project development, component manufacturing, construction, operations, and education, training, and research. As technology quickly evolves, workers in all areas need to update their skills through continuing training/education or job training, and in several cases could benefit from professional certification. The advantages of moving to renewable energy are evident, and for this reason, the governments are responding positively toward the transformation to clean energy. Renewable energy can be described as the country’s next employment boom. Renewable energy job opportunities can transform rural economy [ 79 , 80 ]. The renewable energy sector might help to reduce poverty by creating better employment. For example, wind power is looking for specialists in manufacturing, project development, and construction and turbine installation as well as financial services, transportation and logistics, and maintenance and operations.

The government is building more renewable energy power plants that will require a workforce. The increasing investments in the renewable energy sector have the potential to provide more jobs than any other fossil fuel industry. Local businesses and renewable sectors will benefit from this change, as income will increase significantly. Many jobs in this sector will contribute to fixed salaries, healthcare benefits, and skill-building opportunities for unskilled and semi-skilled workers. A range of skilled and unskilled jobs are included in all renewable energy technologies, even though most of the positions in the renewable energy industry demand a skilled workforce. The renewable sector employs semi-skilled and unskilled labor in the construction, operations, and maintenance after proper training. Unskilled labor is employed as truck drivers, guards, cleaning, and maintenance. Semi-skilled labor is used to take regular readings from displays. A lack of consistent data on the potential employment impact of renewables expansion makes it particularly hard to assess the quantity of skilled, semi-skilled, and unskilled personnel that might be needed.

Key findings in renewable energy employment

The findings comprise (a) that the majority of employment in the renewable sector is contract based, and that employees do not benefit from permanent jobs or security. (b) Continuous work in the industry has the potential to decrease poverty. (c) Most poor citizens encounter obstacles to entry-level training and the employment market due to lack of awareness about the jobs and the requirements. (d) Few renewable programs incorporate developing ownership opportunities for the citizens and the incorporation of women in the sector. (e) The inadequacy of data makes it challenging to build relationships between employment in renewable energy and poverty mitigation.

Recommendations for renewable energy employment

When building the capacity, focus on poor people and individuals to empower them with training in operation and maintenance.

Develop and offer training programs for citizens with minimal education and training, who do not fit current programs, which restrict them from working in renewable areas.

Include women in the renewable workforce by providing localized training.

Establish connections between training institutes and renewable power companies to guarantee that (a) trained workers are placed in appropriate positions during and after the completion of the training program and (b) training programs match the requirements of the renewable sector.

Poverty impact assessments might be embedded in program design to know how programs motivate poverty reduction, whether and how they influence the community.

Allow people to have a sense of ownership in renewable projects because this could contribute to the growth of the sector.

The details of the job being offered (part time, full time, contract-based), the levels of required skills for the job (skilled, semi-skilled and unskilled), the socio-economic status of the employee data need to be collected for further analysis.

Conduct investigations, assisted by field surveys, to learn about the influence of renewable energy jobs on poverty mitigation and differences in the standard of living.

Challenges faced by renewable energy in India

The MNRE has been taking dedicated measures for improving the renewable sector, and its efforts have been satisfactory in recognizing various obstacles.

Policy and regulatory obstacles

A comprehensive policy statement (regulatory framework) is not available in the renewable sector. When there is a requirement to promote the growth of particular renewable energy technologies, policies might be declared that do not match with the plans for the development of renewable energy.

The regulatory framework and procedures are different for every state because they define the respective RPOs (Renewable Purchase Obligations) and this creates a higher risk of investments in this sector. Additionally, the policies are applicable for just 5 years, and the generated risk for investments in this sector is apparent. The biomass sector does not have an established framework.

Incentive accelerated depreciation (AD) is provided to wind developers and is evident in developing India’s wind-producing capacity. Wind projects installed more than 10 years ago show that they are not optimally maintained. Many owners of the asset have built with little motivation for tax benefits only. The policy framework does not require the maintenance of the wind projects after the tax advantages have been claimed. There is no control over the equipment suppliers because they undertake all wind power plant development activities such as commissioning, operation, and maintenance. Suppliers make the buyers pay a premium and increase the equipment cost, which brings burden to the buyer.

Furthermore, ready-made projects are sold to buyers. The buyers are susceptible to this trap to save income tax. Foreign investors hesitate to invest because they are exempted from the income tax.

Every state has different regulatory policy and framework definitions of an RPO. The RPO percentage specified in the regulatory framework for various renewable sources is not precise.

RPO allows the SERCs and certain private firms to procure only a part of their power demands from renewable sources.

RPO is not imposed on open access (OA) and captive consumers in all states except three.

RPO targets and obligations are not clear, and the RPO compliance cell has just started on 22.05.2018 to collect the monthly reports on compliance and deal with non-compliance issues with appropriate authorities.

Penalty mechanisms are not specified and only two states in India (Maharashtra and Rajasthan) have some form of penalty mechanisms.

The parameter to determine the tariff is not transparent in the regulatory framework and many SRECs have established a tariff for limited periods. The FiT is valid for only 5 years, and this affects the bankability of the project.

Many SERCs have not decided on adopting the CERC tariff that is mentioned in CERCs regulations that deal with terms and conditions for tariff determinations. The SERCs have considered the plant load factor (PLF) because it varies across regions and locations as well as particular technology. The current framework does not fit to these issues.

Third party sale (TPS) is not allowed because renewable generators are not allowed to sell power to commercial consumers. They have to sell only to industrial consumers. The industrial consumers have a low tariff and commercial consumers have a high tariff, and SRCS do not allow OA. This stops the profit for the developers and investors.

Institutional obstacles

Institutes, agencies stakeholders who work under the conditions of the MNRE show poor inter-institutional coordination. The progress in renewable energy development is limited by this lack of cooperation, coordination, and delays. The delay in implementing policies due to poor coordination, decrease the interest of investors to invest in this sector.

The single window project approval and clearance system is not very useful and not stable because it delays the receiving of clearances for the projects ends in the levy of a penalty on the project developer.

Pre-feasibility reports prepared by concerned states have some deficiency, and this may affect the small developers, i.e., the local developers, who are willing to execute renewable projects.

The workforce in institutes, agencies, and ministries is not sufficient in numbers.

Proper or well-established research centers are not available for the development of renewable infrastructure.

Customer care centers to guide developers regarding renewable projects are not available.

Standards and quality control orders have been issued recently in 2018 and 2019 only, and there are insufficient institutions and laboratories to give standards/certification and validate the quality and suitability of using renewable technology.

Financial and fiscal obstacles

There are a few budgetary constraints such as fund allocation, and budgets that are not released on time to fulfill the requirement of developing the renewable sector.

The initial unit capital costs of renewable projects are very high compared to fossil fuels, and this leads to financing challenges and initial burden.

There are uncertainties related to the assessment of resources, lack of technology awareness, and high-risk perceptions which lead to financial barriers for the developers.

The subsidies and incentives are not transparent, and the ministry might reconsider subsidies for renewable energy because there was a sharp fall in tariffs in 2018.

Power purchase agreements (PPA) signed between the power purchaser and power generators on pre-determined fixed tariffs are higher than the current bids (Economic survey 2017–2018 and union budget on the 01.02.2019). For example, solar power tariff dropped to 2.44 INR (0. 04 USD) per unit in May 2017, wind power INR 3.46 per unit in February 2017, and 2.64 INR per unit in October 2017.

Investors feel that there is a risk in the renewable sector as this sector has lower gross returns even though these returns are relatively high within the market standards.

There are not many developers who are interested in renewable projects. While newly established developers (small and local developers) do not have much of an institutional track record or financial input, which are needed to develop the project (high capital cost). Even moneylenders consider it risky and are not ready to provide funding. Moneylenders look exclusively for contractors who have much experience in construction, well-established suppliers with proven equipment and operators who have more experience.

If the performance of renewable projects, which show low-performance, faces financial obstacles, they risks the lack of funding of renewable projects.

Financial institutions such as government banks or private banks do not have much understanding or expertise in renewable energy projects, and this imposes financial barriers to the projects.

Delay in payment by the SERCs to the developers imposes debt burden on the small and local developers because moneylenders always work with credit enhancement mechanisms or guarantee bonds signed between moneylenders and the developers.

Market obstacles

Subsidies are adequately provided to conventional fossil fuels, sending the wrong impression that power from conventional fuels is of a higher priority than that from renewables (unfair structure of subsidies)

There are four renewable markets in India, the government market (providing budgetary support to projects and purchase the output of the project), the government-driven market (provide budgetary support or fiscal incentives to promote renewable energy), the loan market (taking loan to finance renewable based applications), and the cash market (buying renewable-based applications to meet personal energy needs by individuals). There is an inadequacy in promoting the loan market and cash market in India.

The biomass market is facing a demand-supply gap which results in a continuous and dramatic increase in biomass prices because the biomass supply is unreliable (and, as there is no organized market for fuel), and the price fluctuations are very high. The type of biomass is not the same in all the states of India, and therefore demand and price elasticity is high for biomass.

Renewable power was calculated based on cost-plus methods (adding direct material cost, direct labor cost, and product overhead cost). This does not include environmental cost and shields the ecological benefits of clean and green energy.

There is an inadequate evacuation infrastructure and insufficient integration of the grid, which affects the renewable projects. SERCs are not able to use all generated power to meet the needs because of the non-availability of a proper evacuation infrastructure. This has an impact on the project, and the SERCs are forced to buy expensive power from neighbor states to fulfill needs.

Extending transmission lines is not possible/not economical for small size projects, and the seasonality of generation from such projects affect the market.

There are few limitations in overall transmission plans, distribution CapEx plans, and distribution licenses for renewable power. Power evacuation infrastructure for renewable energy is not included in the plans.

Even though there is an increase in capacity for the commercially deployed renewable energy technology, there is no decline in capital cost. This cost of power also remains high. The capital cost quoted by the developers and providers of equipment is too high due to exports of machinery, inadequate built up capacity, and cartelization of equipment suppliers (suppliers join together to control prices and limit competition).

There is no adequate supply of land, for wind, solar, and solar thermal power plants, which lead to poor capacity addition in many states.

Technological obstacles

Every installation of a renewable project contributes to complex risk challenges from environmental uncertainties, natural disasters, planning, equipment failure, and profit loss.

MNRE issued the standardization of renewable energy projects policy on the 11th of December 2017 (testing, standardization, and certification). They are still at an elementary level as compared to international practices. Quality assurance processes are still under starting conditions. Each success in renewable energy is based on concrete action plans for standards, testing and certification of performance.

The quality and reliability of manufactured components, imported equipment, and subsystems is essential, and hence quality infrastructure should be established. There is no clear document related to testing laboratories, referral institutes, review mechanism, inspection, and monitoring.

There are not many R&D centers for renewables. Methods to reduce the subsidies and invest in R&D lagging; manufacturing facilities are just replicating the already available technologies. The country is dependent on international suppliers for equipment and technology. Spare parts are not manufactured locally and hence they are scarce.

Awareness, education, and training obstacles

There is an unavailability of appropriately skilled human resources in the renewable energy sector. Furthermore, it faces an acute workforce shortage.

After installation of renewable project/applications by the suppliers, there is no proper follow-up or assistance for the workers in the project to perform maintenance. Likewise, there are not enough trained and skilled persons for demonstrating, training, operation, and maintenance of the plant.

There is inadequate knowledge in renewables, and no awareness programs are available to the general public. The lack of awareness about the technologies is a significant obstacle in acquiring vast land for constructing the renewable plant. Moreover, people using agriculture lands are not prepared to give their land to construct power plants because most Indians cultivate plants.

The renewable sector depends on the climate, and this varying climate also imposes less popularity of renewables among the people.

The per capita income is low, and the people consider that the cost of renewables might be high and they might not be able to use renewables.

The storage system increases the cost of renewables, and people believe it too costly and are not ready to use them.

The environmental benefits of renewable technologies are not clearly understood by the people and negative perceptions are making renewable technologies less prevalent among them.

Environmental obstacles

A single wind turbine does not occupy much space, but many turbines are placed five to ten rotor diameters from each other, and this occupies more area, which include roads and transmission lines.

In the field of offshore wind, the turbines and blades are bigger than onshore wind turbines, and they require a substantial amount of space. Offshore installations affect ocean activities (fishing, sand extraction, gravel extraction, oil extraction, gas extraction, aquaculture, and navigation). Furthermore, they affect fish and other marine wildlife.

Wind turbines influence wildlife (birds and bats) because of the collisions with them and due to air pressure changes caused by wind turbines and habitat disruption. Making wind turbines motionless during times of low wind can protect birds and bats but is not practiced.

Sound (aerodynamic, mechanical) and visual impacts are associated with wind turbines. There is poor practice by the wind turbine developers regarding public concerns. Furthermore, there are imperfections in surfaces and sound—absorbent material which decrease the noise from turbines. The shadow flicker effect is not taken as severe environmental impact by the developers.

Sometimes wind turbine material production, transportation of materials, on-site construction, assembling, operation, maintenance, dismantlement, and decommissioning may be associated with global warming, and there is a lag in this consideration.

Large utility-scale solar plants require vast lands that increase the risk of land degradation and loss of habitat.

The PV cell manufacturing process includes hazardous chemicals such as 1-1-1 Trichloroethene, HCL, H 2 SO 4 , N 2 , NF, and acetone. Workers face risks resulting from inhaling silicon dust. The manufacturing wastes are not disposed of properly. Proper precautions during usage of thin-film PV cells, which contain cadmium—telluride, gallium arsenide, and copper-indium-gallium-diselenide are missing. These materials create severe public health threats and environmental threats.

Hydroelectric power turbine blades kill aquatic ecosystems (fish and other organisms). Moreover, algae and other aquatic weeds are not controlled through manual harvesting or by introducing fish that can eat these plants.

Discussion and recommendations based on the research

Policy and regulation advancements.

The MNRE should provide a comprehensive action plan or policy for the promotion of the renewable sector in its regulatory framework for renewables energy. The action plan can be prepared in consultation with SERCs of the country within a fixed timeframe and execution of the policy/action plan.

The central and state government should include a “Must run status” in their policy and follow it strictly to make use of renewable power.

A national merit order list for renewable electricity generation will reduce power cost for the consumers. Such a merit order list will help in ranking sources of renewable energy in an ascending order of price and will provide power at a lower cost to each distribution company (DISCOM). The MNRE should include that principle in its framework and ensure that SERCs includes it in their regulatory framework as well.

SERCs might be allowed to remove policies and regulatory uncertainty surrounding renewable energy. SERCs might be allowed to identify the thrust areas of their renewable energy development.

There should be strong initiatives from municipality (local level) approvals for renewable energy-based projects.

Higher market penetration is conceivable only if their suitable codes and standards are adopted and implemented. MNRE should guide minimum performance standards, which incorporate reliability, durability, and performance.

A well-established renewable energy certificates (REC) policy might contribute to an efficient funding mechanism for renewable energy projects. It is necessary for the government to look at developing the REC ecosystem.

The regulatory administration around the RPO needs to be upgraded with a more efficient “carrot and stick” mechanism for obligated entities. A regulatory mechanism that both remunerations compliance and penalizes for non-compliance may likely produce better results.

RECs in India should only be traded on exchange. Over-the-counter (OTC) or off-exchange trading will potentially allow greater participation in the market. A REC forward curve will provide further price determination to the market participants.

The policymakers should look at developing and building the REC market.

Most states have defined RPO targets. Still, due to the absence of implemented RPO regulations and the inadequacy of penalties when obligations are not satisfied, several of the state DISCOMs are not complying completely with their RPO targets. It is necessary that all states adhere to the RPO targets set by respective SERCs.

The government should address the issues such as DISCOM financials, must-run status, problems of transmission and evacuation, on-time payments and payment guarantees, and deemed generation benefits.

Proper incentives should be devised to support utilities to obtain power over and above the RPO mandated by the SERC.

The tariff orders/FiTs must be consistent and not restricted for a few years.

Transmission requirements

The developers are worried that transmission facilities are not keeping pace with the power generation. Bays at the nearest substations are occupied, and transmission lines are already carrying their full capacity. This is due to the lack of coordination between MNRE and the Power Grid Corporation of India (PGCIL) and CEA. Solar Corporation of India (SECI) is holding auctions for both wind and solar projects without making sure that enough evacuation facilities are available. There is an urgent need to make evacuation plans.

The solution is to develop numerous substations and transmission lines, but the process will take considerably longer time than the currently under-construction projects take to get finished.

In 2017–2018, transmission lines were installed under the green energy corridor project by the PGCIL, with 1900 circuit km targeted in 2018–2019. The implementation of the green energy corridor project explicitly meant to connect renewable energy plants to the national grid. The budget allocation of INR 6 billion for 2018–2019 should be increased to higher values.

The mismatch between MNRE and PGCIL, which are responsible for inter-state transmission, should be rectified.

State transmission units (STUs) are responsible for the transmission inside the states, and their fund requirements to cover the evacuation and transmission infrastructure for renewable energy should be fulfilled. Moreover, STUs should be penalized if they fail to fulfill their responsibilities.

The coordination and consultation between the developers (the nodal agency responsible for the development of renewable energy) and STUs should be healthy.

Financing the renewable sector

The government should provide enough budget for the clean energy sector. China’s annual budget for renewables is 128 times higher than India’s. In 2017, China spent USD 126.6 billion (INR 9 lakh crore) compared to India’s USD 10.9 billion (INR 75500 crore). In 2018, budget allocations for grid interactive wind and solar have increased but it is not sufficient to meet the renewable target.

The government should concentrate on R&D and provide a surplus fund for R&D. In 2017, the budget allotted was an INR 445 crore, which was reduced to an INR 272.85 crore in 2016. In 2017–2018, the initial allocation was an INR 144 crore that was reduced to an INR 81 crore during the revised estimates. Even the reduced amounts could not be fully used, there is an urgent demand for regular monitoring of R&D and the budget allocation.

The Goods and Service Tax (GST) that was introduced in 2017 worsened the industry performance and has led to an increase in costs and poses a threat to the viability of the ongoing projects, ultimately hampering the target achievement. These GST issues need to be addressed.

Including the renewable sector as a priority sector would increase the availability of credit and lead to a more substantial participation by commercial banks.

Mandating the provident funds and insurance companies to invest the fixed percentage of their portfolio into the renewable energy sector.

Banks should allow an interest rebate on housing loans if the owner is installing renewable applications such as solar lights, solar water heaters, and PV panels in his house. This will encourage people to use renewable energy. Furthermore, income tax rebates also can be given to individuals if they are implementing renewable energy applications.

Improvement in manufacturing/technology

The country should move to domestic manufacturing. It imports 90% of its solar cell and module requirements from Malaysia, China, and Taiwan, so it is essential to build a robust domestic manufacturing basis.

India will provide “safeguard duty” for merely 2 years, and this is not adequate to build a strong manufacturing basis that can compete with the global market. Moreover, safeguard duty would work only if India had a larger existing domestic manufacturing base.

The government should reconsider the safeguard duty. Many foreign companies desiring to set up joint ventures in India provide only a lukewarm response because the given order in its current form presents inadequate safeguards.

There are incremental developments in technology at regular periods, which need capital, and the country should discover a way to handle these factors.

To make use of the vast estimated renewable potential in India, the R&D capability should be upgraded to solve critical problems in the clean energy sector.

A comprehensive policy for manufacturing should be established. This would support capital cost reduction and be marketed on a global scale.

The country should initiate an industry-academia partnership, which might promote innovative R&D and support leading-edge clean power solutions to protect the globe for future generations.

Encourage the transfer of ideas between industry, academia, and policymakers from around the world to develop accelerated adoption of renewable power.

Awareness about renewables

Social recognition of renewable energy is still not very promising in urban India. Awareness is the crucial factor for the uniform and broad use of renewable energy. Information about renewable technology and their environmental benefits should reach society.

The government should regularly organize awareness programs throughout the country, especially in villages and remote locations such as the islands.

The government should open more educational/research organizations, which will help in spreading knowledge of renewable technology in society.

People should regularly be trained with regard to new techniques that would be beneficial for the community.

Sufficient agencies should be available to sell renewable products and serve for technical support during installation and maintenance.

Development of the capabilities of unskilled and semiskilled workers and policy interventions are required related to employment opportunities.

An increase in the number of qualified/trained personnel might immediately support the process of installations of renewables.

Renewable energy employers prefer to train employees they recruit because they understand that education institutes fail to give the needed and appropriate skills. The training institutes should rectify this issue. Severe trained human resources shortages should be eliminated.

Upgrading the ability of the existing workforce and training of new professionals is essential to achieve the renewable goal.

Hybrid utilization of renewables

The country should focus on hybrid power projects for an effective use of transmission infrastructure and land.

India should consider battery storage in hybrid projects, which support optimizing the production and the power at competitive prices as well as a decrease of variability.

Formulate mandatory standards and regulations for hybrid systems, which are lagging in the newly announced policies (wind-solar hybrid policy on 14.05.2018).

The hybridization of two or more renewable systems along with the conventional power source battery storage can increase the performance of renewable technologies.

Issues related to sizing and storage capacity should be considered because they are key to the economic viability of the system.

Fiscal and financial incentives available for hybrid projects should be increased.

The renewable sector suffers notable obstacles. Some of them are inherent in every renewable technology; others are the outcome of a skewed regulative structure and marketplace. The absence of comprehensive policies and regulation frameworks prevent the adoption of renewable technologies. The renewable energy market requires explicit policies and legal procedures to enhance the attention of investors. There is a delay in the authorization of private sector projects because of a lack of clear policies. The country should take measures to attract private investors. Inadequate technology and the absence of infrastructure required to establish renewable technologies should be overcome by R&D. The government should allow more funds to support research and innovation activities in this sector. There are insufficiently competent personnel to train, demonstrate, maintain, and operate renewable energy structures and therefore, the institutions should be proactive in preparing the workforce. Imported equipment is costly compared to that of locally manufactured; therefore, generation of renewable energy becomes expensive and even unaffordable. Hence, to decrease the cost of renewable products, the country should become involve in the manufacturing of renewable products. Another significant infrastructural obstacle to the development of renewable energy technologies is unreliable connectivity to the grid. As a consequence, many investors lose their faith in renewable energy technologies and are not ready to invest in them for fear of failing. India should work on transmission and evacuation plans.

Inadequate servicing and maintenance of facilities and low reliability in technology decreases customer trust in some renewable energy technologies and hence prevent their selection. Adequate skills to repair/service the spare parts/equipment are required to avoid equipment failures that halt the supply of energy. Awareness of renewable energy among communities should be fostered, and a significant focus on their socio-cultural practices should be considered. Governments should support investments in the expansion of renewable energy to speed up the commercialization of such technologies. The Indian government should declare a well-established fiscal assistance plan, such as the provision of credit, deduction on loans, and tariffs. The government should improve regulations making obligations under power purchase agreements (PPAs) statutorily binding to guarantee that all power DISCOMs have PPAs to cover a hundred percent of their RPO obligation. To accomplish a reliable system, it is strongly suggested that renewables must be used in a hybrid configuration of two or more resources along with conventional source and storage devices. Regulatory authorities should formulate the necessary standards and regulations for hybrid systems. Making investments economically possible with effective policies and tax incentives will result in social benefits above and beyond the economic advantages.

Availability of data and materials

Not applicable.

Abbreviations

Accelerated depreciation

Billion units

Central Electricity Authority of India

Central electricity regulatory commission

Central financial assistance

Expression of interest

Foreign direct investment

Feed-in-tariff

Ministry of new and renewable energy

Research and development

Renewable purchase obligations

State electricity regulatory

Small hydropower

Terawatt hours

Waste to energy

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Acknowledgments

The authors gratefully acknowledge the support provided by the Research Consultancy Institute (RCI) and the department of Electrical and Computer Engineering of Effat University, Saudi Arabia.

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Kumar. J, C.R., Majid, M.A. Renewable energy for sustainable development in India: current status, future prospects, challenges, employment, and investment opportunities. Energ Sustain Soc 10 , 2 (2020). https://doi.org/10.1186/s13705-019-0232-1

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Received : 15 September 2018

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DOI : https://doi.org/10.1186/s13705-019-0232-1

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Lessons from Dharnai, ​ “ India’s First Fully Solar Powered Village”: A Case Study

Azim premji university, may 2022.

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This case study is of ​ “ India’s First Fully Solar Powered Village”2 — Dharnai. It is a case of the promises of and challenges facing the realisation of ​ “ energy democracy” — the idea that distributed renewable energy systems have the potential to democratise the economy and society.

Manu V Mathai

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New study shows India has 207 GW of floating solar potential

A new report prepared under the Indo-German Technical Cooperation on Innovative Solar provides a comprehensive overview of floating solar potential in India. It also provides projections for installations from 2024 to 2040.

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From pv magazine India

A new report prepared under the Indo-German Technical Cooperation on Innovative Solar (IN Solar) shows that inland bodies of water in India have the technical potential to host 206.7 GWp of floating solar capacity.

The team used GIS-based data for all bodies of water in India (calculated in square kilometers) by referencing the Copernicus Programme by the European Commission.

The data set was filtered to include bodies of water with a usable area greater than 0.015 sq km, with 12 months of water availability, while excluding bodies of water in protected zones. An area of 0.015 sq km is required to install 1 MW of floating PV.

The state of Madhya Pradesh has the maximum potential of 40,117 MWp, followed by Maharashtra with 32,076 MWp.

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The project has been launched under the guidance of the Indian Ministry of New and Renewable Energy and is funded by the Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ). Ernst and Young LLP (EY LLP) has led the project, along with CSTEP and Fraunhofer ISE as partners.

Under a moderate scenario, the report said India could install 30 GW of cumulative floating solar capacity from 2024 to 2040. They assumed 1 MW of floating PV would require capital expenditures equalling a levelized cost of energy (LCOE) of INR 4.32 ($0.052)/kWh.

The research team assumed an annual reduction of 2.5% in capex, resulting in a gradual decline of the LCOE from floating PV plants, starting from 2024 and extending through 2040. The LCOE is expected to drop to INR 3.72/kWh by 2030 and INR 2.90/kWh by 2040.

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com .

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India’s First Solar-Powered Village Pays Residents’ Electric Bills and Then Some

Founded in 2005 as an Ohio-based environmental newspaper, EcoWatch is a digital platform dedicated to publishing quality, science-based content on environmental issues, causes, and solutions.

Modhera in the state of Gujarat has become the first solar -powered village in India , setting a precedent for what UN Secretary-General António Guterres called a “reconciliation between humankind and planet,” reported Euronews.

The solar project has provided Modhera’s residents with a surplus of renewable energy at a cost of $9.7 million, UN News reported. The bill for the solar project was split between the Indian government and the Government of Gujarat.

India’s Prime Minister Narendra Modi proclaimed Modhera to be the first village in the country to be powered by solar around the clock every day, as reported by Euronews. Because of this, residents can save from 60 to 100 percent of their power bills, Gujarat’s government said.

“Earlier, when solar was not there, I had to pay huge amount for the electricity bill — close to 2,000 rupees. However, with the installation of the solar, my electricity bill is now zero. Everything from the refrigerator to washing machine now runs on solar in my house. I am not paying even 1 rupee electricity bill now,” said village resident Gadvi Kailashben, who supports her family through farming, as UN News reported.

Nearly 30 acres of Modhera now have solar and rooftop panels that provide more kilowatts of energy than the village’s residents use each day, reported Euronews.

“There are three major components to this entire project. One is our ground mounted 6-megawatt project. The second is the 15-megawatt battery storage system and the third is the one-kilowatt rooftops installed on 1,300 houses,” explained Rajendra Mistry, the chief project officer of Gujarat Power Corporation Limited, as reported by UN News.

The solar project not only helps with the villagers’ bills, it’s also becoming a source of income, as any surplus power they have can be sold back to the electric grid.

“We work in our farm and used to pay huge electricity bills for agriculture. Since solar installation in our village, we are now saving a lot of electricity. Earlier our electricity bill used to come around 2,000 rupees. Now it is in minus,” said villager Ashaben Mahendrabhai, who lives with her husband and two children, as UN News reported.

While visiting the Sun Temple of Modhera on the bank of the river Pushpavati, Guterres said, “One thousand years ago, the ancestors of those that live today in this village built this marvelous Temple of Sun. And they did it recognising that the origin of all energy that we have on Earth comes from the sun,” as reported by Euronews.

The Sun Temple itself is completely powered by solar energy, including a 3D light show, and its parking area has electric vehicle charging stations, UN News reported.

The UN chief added that, because of the solar project, the village was becoming “more healthy, giving them more prosperity, but at the same time contributing to rescue our planet from a climate change that is still rising without control,” as reported by Euronews.

Last week, the residents of Modhera told Guterres they were glad to be using renewable energy that doesn’t cause damage to the environment .

“Modhera, which is associated with the Sun Temple , will also be known for its strides in solar energy. Big day for Modhera as it takes a giant leap towards harnessing solar power,” said Prime Minister Modi, as The Economic Times reported.

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India and the Global Commons: A Case Study of the International Solar Alliance

Author : Oluwaseun J. Oguntuase

Issue Briefs Published on Aug 14, 2023 PDF Download

This brief reviews the crucial role of India in global climate politics and highlights the country’s partnerships on sustainable energy in Africa through the India-led International Solar Alliance (ISA). The brief finds that, beyond contributing to climate change mitigation, India—through ISA, in particular—is helping ensure energy security and sustainable livelihoods in sub-Saharan Africa by providing poor communities access to natural, economic, human, and social capital. It calls for complementary initiatives from policymakers in Africa to align efforts towards ensuring sustainable livelihoods for the continent’s more than 1.33 billion people.

Oluwaseun Oguntuase, “India and the Global Commons: A Case Study of the International Solar Alliance,”  ORF Issue Brief No. 528 , March 2022, Observer Research Foundation.

• Introduction

Climate is a global commons. [a] , [1]   In the past few decades, worsening climate change has been threatening to severely disrupt the stability of global climate, which in turn carries many devastating implications. The mitigation of global warming, therefore, is a global public good. [2]   The international community recognises this and has negotiated various agreements over the years. Three principles underlie these negotiations: (a) no country (or continent) can be prevented from enjoying their benefits; (b) every country gains from such efforts, regardless of whether it contributes to them; and (c) one country’s benefitting from climate mitigation does not affect the benefits available to other countries. [3]

The concept of ‘global commons’ as it relates to climate change means that global policies and actions are needed to address the anthropogenic factors that cause global warming, even if some of these factors could also be tackled effectively at the local level. [4]   This shared global responsibility underlies the 2015 Paris Climate Agreement, which aims to enable states to coordinate their national efforts towards a global common property regime for the atmosphere. The agreement primarily aims to strengthen the global response to the threat of climate change by keeping global temperature rise this century well below 2 degrees Celsius relative to pre-industrial levels, and preferably below 1.5 degrees Celsius. Limiting greenhouse gas (GHG) emissions to mitigate climate change requires transition to a sustainable post-fossil economy by implementing techno-economic, environmental, and energy-efficiency policies, initiatives and programmes.

• India in Global Climate Politics

Over the years, India has played a key role in the North–South politics of climate negotiations. It is a leading member of the Global South, [b]   not only because of its vast population and position as an emerging economic power, but also as it has shifted from its earlier defensive, ‘neo-colonial’ attitude on the matter of climate responsibility to a more proactive and internationalist approach in recent climate engagements. [5] [6]   Even so, overall, in global negotiations, India has held on to its position as a developing country. It has consistently argued for state sovereignty, principles of equity, and common but differentiated responsibilities regarding cuts in GHG emissions. [7] [8]

International climate negotiations are important forums for India to use diplomatic leverage in pursuing its foreign policy objectives and strengthening its role as a globally responsible actor. While its historical GHG emissions and responsibility for climate change may be low, its current and projected emissions are on a steep rise. [9]   It has chosen a cooperative strategy to emphasise its responsibility through diplomacy and sustainable energy investments, in the process buttressing its role as a global powerhouse and widening its influence on partner countries. [10]

The establishment of the International Solar Alliance (ISA) in November 2015 is an example of India’s progressive and cooperative climate engagement. The alliance, set up jointly by India and France during the Paris Agreement talks, is a treaty-based, member-driven forum aimed at trans-regional solar energy cooperation to both reduce fossil fuel dependence and bring about a more equitable and just energy order. Most of ISA’s members are countries in Africa, with the continent contributing 36 of the 101 ratified members.

The global energy system is dominated by fossil fuels. [11]   Energy-related GHG emissions increased nearly 20 percent in Africa between 2008 and 2017, albeit starting from a very low initial level relative to other developing economies. Energy demand in African economies is expected to nearly double by 2040, as populations grow and living standards improve. [12]   Without a climate policy and transition to renewable energy sources, Africa’s share in global energy-related carbon emissions is projected to increase 3–23 percent by 2100. [13]   Enabling developing economies to decouple their energy consumption from their GHG emissions by replacing carbon-intensive fossil fuel use with renewable solar energy, is one of ISA’s cardinal goals.

• Focus on Africa

Energy is essential for development in the contemporary world— [14] , [15]   one might say as necessary today as air, water, and earth; it is vital for poverty reduction. [16]   Ensuring “access to affordable, reliable, sustainable and modern energy for all” by the year 2030 is enshrined as Goal 7 among the United Nations Sustainable Development Goals (SDGs). [17] , [18] , [19]

Energy is ‘secure’ if it is adequate, affordable and reliable. [20]   There are four dimensions to energy security: physical availability; economic affordability; accessibility from a socio-political standpoint; and environmental acceptability. [21]   The scope of energy security has also been expanded to include supply side and demand side options. Neither is met in Africa [22]   – be it in areas such as energy efficiency, or environmental sustainability (including addressing contemporary environmental concerns, especially climate change) or socio-political challenges, such as fuel poverty. [23] , [24]   More comprehensively, it also includes notions of geopolitics and social acceptability. [25]

Despite an abundance of energy resources, energy insecurity is a stark reality in sub-Saharan Africa. The region suffers from the most debilitating energy poverty in the world. It has the lowest energy access rates and is home to the majority of least developed countries (LDCs). [26]   More than 600 million of its 1.2 billion inhabitants have no access to modern energy services. [27]   Approximately 120 million households lack access to adequate electricity, and it is projected that 60 million of them will continue to lack such access even after 2030. [28]   The appalling state of energy generation and distribution has continued to stifle economic growth and sustainable development in the region.

• India-Africa Sustainable Energy Partnership

India and sub-Saharan Africa share the misfortune of being disproportionately vulnerable to the impacts of climate change. They are responsible for only a small share of the historical, cumulative global GHGs, [29]   and yet they face the sharpest consequences.

Indo-African relations have consolidated over the years beyond the movement against colonialism and racial discrimination, [30]   to increased trade and investment, [31]   and scientific and technological cooperation. [32]   One shared characteristic of the global commons is their close association with scientific discovery and development of technological capability. [33]   The ‘leapfrogging’ hypothesis postulates that low-income countries can expand their economies with modern, low-carbon technologies without relying on conventional fossil fuels as the advanced countries did while they were developing. [34]   Knowledge and technology transfer is thus a critical part of India-Africa collaboration in energy security. [35]    Such transfer is critical and urgent for the paradigm shift to happen—from fossil fuel energy sources to renewables.

India is a model in the renewable energy sector. The country’s path towards a more sustainable energy future, distinguished by the use of renewable sources, offers several lessons. [36]   The country has over 35 GW of cumulative solar installations, with a target of 100 GW and 300 GW of solar energy capacity by 2022 [37]   and 2030, [38]   respectively. Moreover, the country’s installed wind energy capacity stands at 39.2 GW and is projected to increase by another 20 GW in the next five years. [39]

India continues to play a leading role in Africa’s energy security by providing and supporting access to clean energy through renewable energy technologies. Some of these developmental efforts, specifically in solar energy, are as follows:

(a) Training and empowering illiterate and semi-literate Malawian women under the ‘Solar Mamas’ rural electrification project to become solar engineers and simultaneously electrify their rural communities;

(b) Facilitating construction of power transmission lines in Kenya;

(c) Supporting solar electrification at primary schools in Zambia;

(d) Assisting a self-help electrification project in Ghana;

(e) Backing a solar-diesel hybrid rural electricity project in Mauritania; and

(f) Setting up solar photovoltaic module manufacturing plants in Mozambique. [40]

• The Role of Solar Energy in Energy Security and Sustainable Livelihoods

SDG Target 7.2 aims to “substantially increase the share of renewable energy in the global energy mix” by 2030. This target, and the increasing global demand for energy security and sustainable development has made it imperative for Africa to engage in a paradigm shift from fossil fuel energy sources to a clean solar powered energy system.

Historically, economic development is strongly correlated with increasing energy use and growth of GHG emissions. Solar energy decouples such correlation, contributing to climate action and sustainable development. [41]   Such decoupling calls for three crucial technological changes: replacement of fossil fuels with solar energy; energy savings on the demand side; and improved efficiency in energy production. [42]

Increased energy consumption is a measure of reduced poverty and enhanced economic growth, particularly in developing nations. Renewable solar energy improves energy services for the rural poor and alleviates poverty in sub-Saharan Africa. [43] , [44]   Mitigating climate change, enhancing energy security, and alleviating rural poverty can all be complementary in Africa through transition from fossil resources to solar energy systems. [45] , [46]

Solar energy has been proposed as one means of improving energy security. [47] , [48]   In addition to being a favourable influence on a country’s energy mix, it is compatible with energy security targets of accessibility and acceptability. [49]   The availability of solar radiation in any region is less susceptible to changes in geographic and meteorological conditions and is, therefore, largely evenly distributed during daylight hours. [50]   Market and political forces cannot disrupt the sun, unlike oil and gas supplies. [51]   The global distribution of solar energy is more evenly spread than fossil fuels; therefore, its increased use will lessen the impacts of geopolitical conflicts on energy security.  Solar energy is also more amenable to distributed production, which is inherently more secure than the fossil fuel paradigm. These sustainable and reliable features are relevant to usher in an era of energy democracy, where a network of decentralised prosumer systems will play the role once dominated by large-scale power generators. [52]

Solar energy is one of the cleanest sources of energy with remarkable environmental, social, and economic benefits for society. Immediate and long-term impacts of solar home systems enrich all kinds of livelihoods assets—human, social, financial and physical. [53]   Solar energy also has positive impacts on household savings’ capability, health, education and women’s economic productivity and empowerment, [54]   thereby playing an important role in the implementation of SDGs. [55]   A recent review [56]   found that solar energy technologies improve energy access, security, and resilience, create employment along their value chain, reduce energy dependence on imports, improve public health, and afford users greater freedom to deploy electricity for personal and communal benefits. Further, it has been proven that solar technologies are suitable options for achieving sustainable agriculture and food security in distant rural areas. [57] , [58]   Indeed, solar energy has helped build pandemic-resilient livelihoods in the face of the disruptive effects of COVID-19. [59]

• Solar Energy Potential in Africa

Africa is often referred to as the ‘Sun Continent’—the continent where solar radiation is greatest. [60]   The continent is located between latitudes 37°N and 32°S and spans a vast area that crosses the equator and both tropics. The solar energy potential of Africa is arguably limitless. It is observed that, with falling solar generation costs over the past decade, solar can be the cheapest source of electricity in Africa. [61]   The total solar potential of all countries in sub-Saharan Africa is about 10,000 GW. [62]   Solar potential is fairly distributed across all the countries, with an average of 6 kilowatt hours (kWh) of solar energy per sq m available per day. [63]   A joint study by custodian agencies of SDG7 found that 49 percent of the 105 million people who had access to off-grid solar solutions in 2019 resided in sub-Saharan Africa. [64]   A significant portion of Africa currently uses solar energy to meet relatively basic needs like lighting, charging mobile phones, and powering low-capacity appliances. [65]

Technological developments, falling costs of renewable energy, innovative approaches, network effects, and digitisation are opening new opportunities and making an indisputable business case for renewables in Africa. [66]   The biggest options for solar power generation in Africa are photovoltaic (PV) and concentrated solar power (CSP), as well as small-scale PV systems suitable for off-grid power generation. [67]   The technical potential of solar PV across Africa has been estimated at 6.5 petawatt hours (PWh) a year, [68]   while that of CSP is approximately 625 PWh a year. [69]   Both PV and CSP technologies are crucial for rural communities in Africa given their diverse potential uses ranging from energy generation, to agriculture, food processing, waste treatment, and water supply. [70]

Most African countries have yet to effectively utilise the abundant solar energy available to them.  The constraints are many: the newness of the technology, the relatively high cost, especially for CSP (and despite the overall drop in solar module prices); insufficient and expensive domestic finance; unstable and weak economies; problems of social acceptance and weak institutions; lack of supportive policies and legal frameworks; and inadequate technical and human resources. [71] , [72] , [73]   Other constraints include the limited capacity of customers to afford solar products, market uncertainty (which impacts business running), high costs of serving last-mile populations, cash-flow issues stemming from paucity of working capital, and instability in the political and economic environment. [74]   There are, however, recommended solutions for these problems too, such as strengthening the institutional and regulatory framework, capacity building, harmonising financial resources, and improving the security and political environment to attract investors. [75]

• The Case of ISA

The ambitious ‘One World, One Sun, One Grid’ initiative of Indian Prime Minister Narendra Modi led to the birth of the ISA at the 2015 UN Conference of Parties 21 (COP21) in Paris. The formation of ISA underlined India’s presence as a dominant global force in the challenging politics of climate change. The multilateral treaty status accorded to ISA by the UN came into force on 6 December 2017. ISA was proposed as a multi-country partnership organisation with membership from the ‘sunshine belt’ countries lying fully or partially between the Tropic of Cancer and the Tropic of Capricorn. (The ambit has been subsequently expanded to include several European countries and the US as well.) The goal is to mobilise more than USD 1 trillion in investments to set up 1,000 GWs of solar installations globally, thereby making clean power affordable and universally accessible by 2030.

Apart from having member states, ISA also grants ‘partner organisation’ status to entities that can help it achieve its objectives. It seeks to provide a collaborative platform to leverage the technical expertise, financial capacity, and global networks of these partner organisations to scale up deployment of solar energy technologies to meet the energy needs of member countries in a safe, convenient, affordable, equitable, and sustainable manner. It provides a platform for the global community, including transnational institutions, multilateral development banks (MDBs), development finance institutions (DFIs), institutional investors, private and corporate organisations, industries, and stakeholders. The aim is to make positive contributions to the common goals of improved energy access, enhanced energy security, and provision of more opportunities for better livelihoods in rural and remote areas.

Despite the fall in solar module prices in the past decade, solar energy is still a capital-intensive proposition that comes with risks and uncertainties. Yet, without state funding, ISA’s de-risking efforts have mobilised substantial private investments in solar technologies in developing countries. ISA’s risk pooling and demand aggregation from multiple projects within and across countries has helped reduce risks for investors and lowered both cost of borrowing and capital costs. [76]

ISA has established a Common Risk Mitigation Mechanism (CRMM), along with other stakeholders, to act as an insurance pool for financiers. The USD1-billion guarantee from this mechanism could attract up to USD15 billion in investments, which could set up 20 GW of solar PV capacity in more than 20 countries. Another such initiative is the Sustainable Renewables Risk Mitigation Initiative (SRMI), launched at COP24 in 2018 by ISA and some of its partners. [c]   The objective is to leverage private investments to support governments in developing, financing and implementing sustainable solar programmes and projects. [77]   The goal of SRMI is to mobilise USD 850 million of concessional finance to unlock 8 GW of renewables which can provide access to reliable electricity in over 20 developing countries including Botswana, Central African Republic, Democratic Republic of Congo, Kenya, Mali, and Namibia by 2025. [78]

Following the first summit of ISA held in March 2018 in New Delhi, India announced assistance of USD1 billion for the implementation of solar power projects across 10 African countries. [d]   These projects include setting up of solar PV power plants, mini-grid and off-grid plants, irrigation systems, rural electrification, street lighting, and solar-powered urban infrastructure, including hospitals, schools and government establishments.

ISA has launched three flagship programmes—Scaling Solar Applications for Agriculture, Affordable Finance at Scale, and Scaling Solar Mini-grids. Two more are in the pipeline: Scaling Residential Rooftop Solar and Scaling Solar E-mobility and Storage. Scaling Solar Applications for Agriculture focuses on providing greater energy access and sustainable irrigation solutions to farmers in member countries. It also supports development of solar energy linked cold-chains and cooling systems for agricultural use. Affordable Finance at Scale aims to leverage private sector investments to promote the development of bankable solar programmes in developing countries. The Regional Off-Grid Electrification Project seeks to accelerate access to electricity in the 19 countries of West Africa through the use of stand-alone solar photovoltaic systems. ISA is working with MDBs and DFIs to deploy innovative financial instruments to scale-up low-cost financing for solar investments.

Countries participating in the Scaling Solar Applications for Agriculture programme include Mauritius, Senegal, Sudan, and Uganda. They have all received solar pumps to replace diesel-fuelled agricultural pumps for irrigation. Moreover, under this programme, some countries [e]   are part of an initiative to support resilience in agriculture and health amidst the COVID-19 crisis. Uganda is also participating in the Affordable Finance at Scale programme, under which Mali is developing a 500 MW Solar Park. It is also part of the Regional Off-Grid Electrification Project. Burkina Faso, Uganda, and Tanzania are part of the USD 1-billion public investments in solar facilities and solar home systems.

ISA also has a Solarising Heating and Cooling Systems programme, where, working with the Climate and Clean Air Coalition (CCAC), it has piloted solarised and efficient cold food chains in Nigeria. The development of solar powered pack houses and cold storages in Senegal and Ghana is being financed by a Euro 1.3-million grant from the French Facility for Global Environment. The project focuses on developing innovative business mechanisms to make sustainable cooling infrastructure available at low cost to all. The objective of the programme is to solarise the growing thermal demand from commercial, industrial, and residential sectors. An initial area of focus is developing solar-powered cold chains for safer and longer preservation of food, significantly reducing post-harvest food loss and potentially doubling farmers’ incomes.

‘Light Up and Power Africa’ is part of the African Development Bank’s (AfDB) [f]   ‘New Deal on Energy for Africa’ scheme to support fast and affordable means of delivering energy access. AfDB and ISA are working together to create new financial instruments. They seek to provide local lenders with risk mitigation instruments to support distributed energy service companies and thereby accelerate off-grid energy access in sub-Saharan Africa at scale. ISA provides technical assistance and knowledge transfer to support both off-grid solar projects and large-scale solar independent power producers. The aim is to provide an additional 10,000 MW of electricity to 250 million people in African ISA member countries. Once this is accomplished, the region will be the world’s largest solar powered zone.

The concept of sustainable livelihood requires shifting the focus of environmental action towards people and livelihood activities to improve the quality of life of the poor. [79] , [80] , [81]   The Sustainable Livelihoods Approach (SLA) has increasingly been employed in policy and development intervention designs to assess the impact of off-grid electrification by solar energy, especially in developing countries. [82] , [83]   This framework shows how sustainable livelihoods are achieved through access to a range of livelihood resources—natural, economic, human, and social capital. [84]   The SLA is a valuable tool to evaluate the activities of ISA in sub-Saharan Africa, beyond geopolitics and global commons, towards enhancement of sustainable livelihoods among rural households in the region.

Electricity generated from solar can be used to power household appliances such as televisions, radios and mobile phones, which increase rural communities’ access to information and provide security updates to communities in crisis, thereby contributing to the people’s social capital. Increased incomes from agricultural practices positively impact economic growth, as well as human capital, through access to quality education, thereby contributing further to sustainable livelihoods. [85]

The International Panel on Climate Change’s Sixth Report (AR6) [86]   submitted that climate change is making both agricultural and ecological droughts more frequent, severe and pervasive in Africa.  Climate-smart, solar-powered water pumping irrigation systems help tackle challenges of frequent droughts and unreliable rainfall, leading to improved productivity and establishing resilient livelihoods in water-scarce areas. [87] , [88]   Improved access to solar energy ensures sustainable consumption and production, and also contributes to environmental conservation by reducing deforestation and land degradation. [89]   Other benefits [90]   include reduction in risk, especially among women and children, of death from indoor air pollution due to cooking by firewood. Sub-Saharan Africa has the lowest rates of primary school electrification in the world. Solar energy technologies can enable rapid deployment of clean, reliable and affordable energy in schools and households. [91]   It gives children in rural areas a chance to study longer and thus perform better. [92] , [93]   Many health facilities in the region operate with unreliable energy sources. Solar electrification of hospitals and other health facilities can help power life-saving equipment and services, and store vaccines and medical supplies better, improving access to quality healthcare and reducing the costs. [94]

Indeed, there is a strong link between adoption of solar energy technologies and improved human and economic capital. [95]   There is also correlation between solar energy consumption and economic growth. [96]   The solar energy value chain fosters economic growth and improves employment opportunities. The use of local labour for installing, operating and maintaining solar technologies creates more jobs, too. [97]

Energy insecurity is a stark problem in many developing countries, including those in sub-Saharan Africa. This is particularly true for the poorer and more vulnerable populations in the rural regions. Solar energy offers potential socio-economic and environmental solutions to the energy gap. Clean and sustainable, its adoption reduces GHGs emissions—the primary cause of climate change. Solar energy also provides access to affordable, reliable, and sustainable energy for all by 2030, as set out in the UN’s SDG 7.

Collaboration on energy is a critical aspect of India–Africa partnership, as India’s investments in sustainable energy development in sub-Saharan Africa through ISA continue to strengthen its influence in the region. While most of ISA’s efforts in sub-Saharan Africa are in their initial stages, early evidence shows that the existing framework of Indo-African cooperation, and the ISA in particular, are indeed helping the region to address the fundamental challenges of climate change, energy access and energy security, while contributing to the achievement of SDG 7.

An appraisal of initiatives and activities of ISA in sub-Saharan Africa, using the SLA framework, shows their significant contribution to livelihood resources—natural, economic, human and social capital—through job creation, poverty reduction, improved productivity, quality education and healthcare, food security, sustainable production and social stability. These spinoffs from climate change mitigation extend beyond protection of the global climate system to ensuring climate adaptation and sustainable livelihoods in sub-Saharan Africa.

For ISA to realise its lofty objectives of improving the livelihoods of hundreds of millions of African citizens, it is imperative for elected policymakers in the different countries to ensure their policies are complementary, so they can jointly address the developmental issues of climate change mitigation, energy security, and sustainable livelihoods.

[a]   Global commons are areas and resources defined as being beyond any national jurisdiction. See: Stoll, “The Climate as a Global Common,” 131.

[b]   The term ‘Global South’ refers broadly to regions outside Europe and North America, mostly (though not all) low-income and often politically or culturally marginalised. See: Nour Dados and Raewyn Connell, “The Global South,”   Contexts   11 (2012): 12.

[c]   These are the World Bank, the French Development Agency, and the International Renewable Energy Agency.

[d]   These countries are Benin, Burkina Faso, Chad, Mali, Niger, Togo, Guinea, Democratic Republic Congo, Ghana, and Nigeria.

[e]   Benin, Burundi, Comoros, Djibouti, Ethiopia, Mali, Malawi, Mozambique, Niger, Senegal, Sudan, Togo, Uganda, and Niger.

[f]   The AfDB is a multilateral DFI established to contribute to the economic development and social progress of African countries.

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[81] Nike Dahlqvist and Samuel Larsson, “Off-Grid Solar Energy and Its Impacts on Rural Livelihoods: A Case Study on Tanzania” (BSc. Thesis, Linnaeus University, 2019), pp. 1-55.

[82] John-Baptist S.N. Naah and Johannes Hamhaber, “Lighting up the Villages: Livelihood Impacts of Decentralized Stand-alone Solar Photovoltaic Electrification in Rural Northern Ghana,”   Journal of Natural Resources and Development   5 (2015): 1–13.

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Oluwaseun J. Oguntuase

Oluwaseun J. Oguntuase is a PhD candidate in Environment and Sustainability at the Centre for Environmental Studies and Sustainable Development Lagos State University Nigeria.

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• India becomes world's third-largest solar power generator: Report

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• Updated On May 9, 2024 at 07:41 AM IST

• Published On May 9, 2024 at 07:41 AM IST

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• GOVERNMENT OF INDIA

Solar Overview

The Sun has been worshiped as a life-giver to our planet since ancient times. The industrial ages gave us the understanding of sunlight as an energy source. India is endowed with vast solar energy potential. About 5,000 trillion kWh per year energy is incident over India’s land area with most parts receiving 4-7 kWh per sqm per day. Solar photovoltaic power can effectively be harnessed providing huge scalability in India. Solar also provides the ability to generate power on a distributed basis and enables rapid capacity addition with short lead times. Off-grid decentralized and low-temperature applications will be advantageous from a rural application perspective and meeting other energy needs for power, heating and cooling in both rural and urban areas. From an energy security perspective, solar is the most secure of all sources, since it is abundantly available. Theoretically, a small fraction of the total incident solar energy (if captured effectively) can meet the entire country’s power requirements.

There has been a visible impact of solar energy in the Indian energy scenario during the last few years. Solar energy based decentralized and distributed applications have benefited millions of people in Indian villages by meeting their cooking, lighting and other energy needs in an environment friendly manner. The social and economic benefits include reduction in drudgery among rural women and girls engaged in the collection of fuel wood from long distances and cooking in smoky kitchens, minimization of the risks of contracting lung and eye ailments, employment generation at village level, and ultimately, the improvement in the standard of living and creation of opportunity for economic activities at village level. Further, solar energy sector in India has emerged as a significant player in the grid connected power generation capacity over the years. It supports the government agenda of sustainable growth, while, emerging as an integral part of the solution to meet the nation’s energy needs and an essential player for energy security.

National Institute of Solar Energy (NISE) has assessed the country’s solar potential of about 748 GW assuming 3% of the waste land area to be covered by Solar PV modules. Solar energy has taken a central place in India’s National Action Plan on Climate Change with National Solar Mission (NSM) as one of the key Missions. NSM was launched on 11 th January, 2010. NSM is a major initiative of the Government of India with active participation from States to promote ecological sustainable growth while addressing India’s energy security challenges. It will also constitute a major contribution by India to the global effort to meet the challenges of climate change. The Mission’s objective is to establish India as a global leader in solar energy by creating the policy conditions for solar technology diffusion across the country as quickly as possible. This is line with India’s Nationally Determined Contributions (NDCs) target to achieve about 50 percent cumulative electric power installed capacity from non-fossil fuel-based energy resources and to reduce the emission intensity of its GDP by 45 percent from 2005 level by 2030.

In order to achieve the above target, Government of India have launched various schemes to encourage generation of solar power in the country like Solar Park Scheme, VGF Schemes, CPSU Scheme, Defence Scheme, Canal bank & Canal top Scheme, Bundling Scheme, Grid Connected Solar Rooftop Scheme etc.

Government has taken several steps for promotion of solar energy in the country. These include:

• Permitting Foreign Direct Investment (FDI) up to 100 percent under the automatic route,
• Waiver of Inter State Transmission System (ISTS) charges for inter-state sale of solar and wind power for projects to be commissioned by 30th June 2025,
• Declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2029-30,
• Notification of standards for deployment of solar photovoltaic system/devices,
• Setting up of Project Development Cell for attracting and facilitating investments,
• Standard Bidding Guidelines for tariff based competitive bidding process for procurement of Power from Grid Connected Solar PV and Wind Projects.
• Government has issued orders that power shall be dispatched against Letter of Credit (LC) or advance payment to ensure timely payment by distribution licensees to RE generators.
• Notification of Promoting Renewable Energy through Green Energy Open Access Rules 2022.
• Notification of “The electricity (Late Payment Surcharge and related matters) Rules 2002 (LPS rules).
• Launch of Green Term Ahead Market (GTAM) to facilitate sale of Renewable Energy power including Solar power through exchanges.

Now, India stands 5th in solar PV deployment across the globe at the end of 2022 (Ref. REN21’s Global Status Report 2023 & IRENA’s Renewable Capacity Statistics 2023). Solar power installed capacity has reached around 70.10 GW as on 30-06-2023.

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