Syllabus: General Studies Paper 3
Context
- In 2021, India will have added a record 10 Gigawatts (GW) of solar energy capacity to its total installed capacity. This has been the most significant 12-month capacity expansion, with approximately a 200 percent increase in capacity year on year. As of the 28th of February, in 2022, India has achieved a total installed solar capacity of more than 50 GW.
- This is a significant step forward in India’s goal of generating 500 GW of renewable energy by 2030, with solar power accounting for almost 30% of the total. India’s capacity increases place the nation sixth in the world in terms of solar power deployment, accounting for roughly 6.5 percent of the world’s total cumulative solar power capacity of 709.68 Gigawatts (GW).
Why is India falling short in roof-top solar installations?
- It is symptomatic of the significant drive to increase the number of utility-scale solar projects across the country that there has been a rapid increase in big, ground-mounted solar energy installations. The deployment of RTS is expected to reach 6.48 GW in 2021, falling well short of the Union Government’s aim of 40 GW of RTS by the end of the year 2022. Due to the emphasis on large-scale solar PV, the various benefits of decentralised renewable energy (DRE) choices, such as the decrease in transmission and distribution (T&D) losses, are not being fully exploited.
- One of the key advantages of solar PV technology is that it can be deployed close to the point of consumption, hence avoiding the need for big, capital-intensive transmission system facilities. As a result, India must deploy large-scale solar PV together with smaller-scale solar PV, and it must increase its efforts in renewable transportation systems (RTS). Residential users and Small and Medium-Sized Enterprises (SMEs) that wish to install RTS, on the other hand, may find it difficult to obtain financing.
- As a result of this, and the tepid response from power distribution companies (DISCOMS) to adopting net metering, RTS adoption continues to be low across the country. Governments, utilities, and banks will all need to look at new financial systems that will lower the cost of loans while also lowering the risk of investing on the part of investors.
- Increased awareness, as well as inexpensive financing for RTS projects, have the potential to enable the widespread adoption of RTS by thousands of SMEs and households across the country. Roof space consolidation might also assist to lower the overall cost of RTS installations by allowing for the development of economies of scale.
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