Solar Energy in India: Major Solar Power Plants in India

Context: 

In current Financial Year 2021-22, Government of India has allocated Rs. 2,500 crores to expand renewables, especially solar and green hydrogen. 

• Harnessing solar energy is one the major component of India’s renewable energy strategy. 
  
• Energy Sector: 4 Pillars of R:  In the Energy Sector, the Central Government has made  
  
  1. Reach  
  2. Reinforce  
  3. Reforms and  
  4. Renewable  

4R energy  as its basic mantra. 
 

Major Points: 

Background: 

• In January 2010, the National Solar Mission (NSM) was launched with the objective of establishing India as a global leader in solar energy. 
  
• India decided in 2015 that 175 GW of renewable energy capacity will be installed by the year 2022.  
  
• This includes 100 GW from solar, 60 GW from wind, 10 GW from biomass and 5 GW from small hydro power. 
  
• Government of India has been aimed at achieving energy security, energy access and reducing the carbon footprints of the national economy. 
  
• India’s commitments under the 2015 Paris Agreement to reduce greenhouse gas emissions intensity by 33 to 35% below 2005 levels.  
  
• To achieve 40% of installed electric power capacity from non-fossil sources by 2030. 
  
• India's Intended Nationally Determined Contributions (INDC’s) commitment include 100 GW of solar power out of 175 GW renewable energy by 2022. 
  
• With the accomplishment of these ambitious targets, India will become one of the largest Green Energy producers in the world, surpassing several developed countries. 

Achievements: 

• As on 31st October 2020, India’s total renewable energy installed capacity (excluding hydro power above 25 MW) had reached over 89.63 GW.  
  
• During the last 6 years, India has witnessed the fastest rate of growth in renewable energy capacity addition among all large economies, with renewable energy capacity growing by 2.5 times. 
  
• India has reported 15 times increase in the capacity of solar energy and is leading the International Solar Alliance today.  
  
• Biggest ever Solar Power capacity addition of 5525.98 MW in 2017-18. During 2017-18, a total 4323.1 MW (including 207.92 MW Solar Roof Top) capacity has been added till 30.11.2017, making cumulative achievement 16611.73 MW (including 863.92 MW Solar Roof Top). 
  
• So far, 1.42 lakh Solar Pump have been installed in the Country as on 30.11.2017 including 1.31 lakh during last three and half year. 
  
• Solar projects of capacity 23656 MW have been tendered and LoI for 19,340 MW issued. 
  
• Solar power in India is a fast-developing industry. The country’s solar installed capacity reached 35.12 GW as of 30 June 2020.  
  
• India has the lowest capital cost per MW globally of installing solar power plants. 
  
• The Indian government had an initial target of 20 GW capacity for 2022, which was achieved four years ahead of schedule. 

Advantages: 

• Solar Energy is available throughout the day which is the peak load demand time. 
• Solar system will reduce the dependency on imported non-renewable energy.
• It will reduce the pollution, which is beneficial for health and economy. 
  
• Solar energy is the cleanest and most abundant renewable energy source available. 
  
• Solar photovoltaic water-pumping systems are used for irrigation and drinking water.
• Abundance of free solar energy in almost all parts of country.  

Challenges: 

• One of the major challenges is lack of funds to develop solar energy. 
  
• Solar Power plant need larger space. 
  
• Land acquisition is one of the major challenges in renewable solar development. 
  
• Indian domestic manufacturers aren’t technically and economically strong to compete with Chinese companies. 
  
• Indian solar power is largely built over imported products. 
  
• India is facing challenge to balance Prioritizing domestic goals and WTO commitments. 
  
• The dumping of products is leading to profit erosion of local manufacturers. 
  
• Due to COVID-19 Pandemic, the pace of solar energy projects development and commissioning has been impacted. 
  

Government Initiatives and Policies: 

• Competitive Bidding guidelines for procurement of solar and wind power have been notified under section 63 of Electricity Act, 2003.  
  
• The Guidelines also facilitate transparency and fairness in the procurement processes which have resulted in the drastic fall in solar and wind power prices over the past few years. 
  
• Solar rooftop systems have been promoted in commercial /industrial/Govt. sector /residential sector through policy and regulatory interventions e.g. mandatory solar provision in the Model Building bye-laws of MoHUA and concessional financing arrangement through Banks/FIs in addition to central financial assistance for residential sector and achievement based incentives to DISCOMs.  
  
• In addition, few States has also made provision of mandatory solar installation for buildings above certain plot area/connected load. 
  
• Foreign investors can enter into joint venture with an Indian partner for financial and/or technical collaboration and for setting up of renewable energy-based power generation projects.  
  
• Upto 100% foreign investment as equity qualifies for automatic approval in renewable energy sector. 
  
• For quality assurance, standards for deployment of solar photovoltaic systems/devices have been notified. 
  
• A scheme for “Development of Solar Parks and Ultra Mega Solar Power Projects” is under implementation with a target capacity of 40 GW capacity in 15 States by March 2022. 
  
• Schemes namely PM-KUSUM, Solar Rooftop and CPSU have a precondition of Domestic Content Requirement, directly creating a domestic demand of more than 36 GW solar PV (cells & modules).  

           • Imposition of an enhanced Basic Customs    Duty and financial incentives for domestic     solar PV manufacturing have also been                 envisaged.  

International Initiatives: 

1. International Solar Alliance (ISA): 

• The ISA is an initiative that was launched by the Prime Minister of India and the President of France on 30 November 2015 at Paris, France on the side-lines of the COP-21. 
  
• Headquartered: The ISA is headquartered in Gurugram India. 
• Objective: The ISA is to collectively address key common challenges to the scaling up of solar energy in ISA member countries. 

Additional Read : International Solar Alliance

2. India’s commitment as part of INDC at Paris climate deal to reduce the emissions intensity of its GDP by 33 to 35% by 2030 from 2005 level. 

Steps to Promote Domestic manufacturing in Renewable Energy sector (Aatmanirbhar Bharat Policy): 

• The operation of renewable energy generation plants was declared as an essential service, and a policy for granting extension of time for various renewable energy projects treating the lockdown as force majeure has been put in place.  
• The bidding for new projects has also continued unimpeded, despite the pandemic and lockdown. 
 
• Domestic Content Requirement (DCR): 
CPSU Scheme Phase-II (12 GW), PM- KUSUM (20.8 GW) and Grid-connected Rooftop Solar Program Phase-II (4 GW) : In 36.8 GW of projects, use of domestically manufactured Solar Cells & Modules is mandatory.  

• ‘Preference to Make in India Order’  
Procurement and use of domestically manufactured solar PV cells and modules, has been mandated for procurement by Govt./ Govt. entities. 
 
• Manufacturing linked tender for setting up Solar PV Manufacturing Capacities in India linked with Power Purchase Agreements (PPAs) for Solar PV Power Plants: 3 GW of solar PV cells & 3 GW of solar PV modules to be set up along with 12000 MW of solar PV projects. LoA issued. Manufacturing plants will be set up in the next 2 years.  
• Extension of Safeguard Duty on import of solar PV cells & modules by one year beyond 29th July, 2020 till 29th July, 2021, at following rates: 

•      14.90% for imports during 30th July, 2020 to 29th January, 2021; 
  
•      14.50% for imports during 30th January, 2021 to 29th July, 2021; 
  

 
• Imposition of Basic Customs Duty (BCD) on import of solar PV cells, solar PV modules and solar inverters: MNRE, has sent a proposal to Ministry of Finance for phased imposition of Basic Customs Duty (BCD) on import of solar PV cells, solar PV modules and solar inverters.- under consideration.  
• New Manufacturing PLI Scheme: The Cabinet has approved a Production Linked Incentive for Scheme for manufacturing of High Efficiency Module. The EFC note is under finalisation.   
 
• Project Development Cell (PDC) has been established to handhold and facilitates domestic and foreign investors. PDC is reaching out to potential investors who are willing to set up manufacturing capacities in India. 
 
• Foreign Direct Investment (FDI) cell has been created in the Ministry in line with DPIIT recommendations for curbing opportunistic takeovers/acquisitions of Indian companies due to current COVID-19 pandemic. 

List of Major Solar Power Plant in India: 

1. Bhadla Solar Park:   

Located: Bhadla, Jodhpur, Rajasthan 

Area: 14,000 acres 

Capacity: 2,250MW 

The Bhadla Solar Park is the largest solar power plant in India as well as in the world as of 2020. 

 

2. Shakti Sthala Solar Power Project: 

Location: Tumakuru, Karnataka 

Area: 13,000 acres 

Capacity: 2050 MW 

It is now the second-largest solar power plant in India, having previously been the largest of its type in the world. 

 

3. Ultra Mega Solar Park: 

Location: Kurnool, Andhra Pradesh 

Area: 5,932 acres 

Capacity: 1,000 MW 

The third-largest solar power plant in India. 

 

4. Rewa Solar Power Project: 

Location: Reva, Madhya Pradesh 

Area: 1,590 acres   

Capacity:750 MW 

Rewa is the country’s first and only solar project funded by the Clean Technology Fund and also India’s only solar power plant to obtain a concessional loan from the World Bank’s International Finance Corporation. 

 

5. Kamuthi Solar Power Plant:  

Location: Ramanathapuram, Tamil Nadu 

Area: 2,500 acres 

Capacity: 648 MW 

Kamuthi Solar Power Plant is the fifth-largest plant of its kind in India. 

Also Read : Solar Energy- Benefits & Challenges/ Technology

 
Source : PIB