Opinion & Analysis

Through various initiatives and schemes, the Indian government has created a conducive environment for industry stakeholders to expand domestic manufacturing. The industry should seize the opportunity to ramp up capacity and manufacture emerging technologies such as monocrystalline (mono-Si), bifacial and half-cut cells, micro-inverters, and tracking equipment, all of which promise further solar efficiency gains over the coming years.

The idea behind introducing the Approved List of Models and Manufacturers (ALMM) was to have a quality benchmark for solar modules. However, in its current form, it is more of a non-tariff barrier for foreign manufacturers and limits solar developers in terms of the choice of module wattage and make.  

As PV waste is set to rise rapidly in the coming decades, India needs to invest in efficient recycling technologies and devise a clear-cut policy for the safe disposal of PV waste. Guidelines for stringent quality checks and validation for both imported and locally produced solar panels are also needed to avoid early-loss solar waste.

The Production-Linked Incentive (PLI) scheme in batteries and solar will help India graduate from a passive recipient to an active driver in the global clean-tech story.

With the draft National Electricity Policy (NEP) 2021, India is providing the right policy direction for this decade of the energy transition. Yet, there is room for further improvement. 

Modules represent 45 to 55% of the project capex. In a very competitive market like India, independent power producers have lower margins, and even a modest increase in module prices will put more pressure on them.

Until 2016, Nepal suffered from chronic power shortages. At that time, just 65% of the country’s population had access to electricity. Assessing the situation, the International Renewable Energy Agency (IRENA) estimated that the country has the potential for 2.1 GW of installed PV capacity. Although the Nepal Electricity Authority (NEA) has officially been able to buy solar power under long-term PPAs since July 2014, the majority of projects granted these contracts have been large-scale hydropower plants. Following slow activity, plans are finally afoot, however, to boost the country’s solar footprint.

In the first installment of a new monthly blog by IHS Markit, Edurne Zoco, executive director for clean energy technology, writes that high prices and increased freight costs are putting solar PV procurement teams under extreme pressure, particularly those teams with connection deadlines this year that were anticipating a more favorable pricing and logistic environment in the second half of 2021.

The second wave of Covid-19 reminds us to build a resilient society. Climate Change, not unlike Covid-19, will deliver devastating effects to our planet and disrupt our way of life. So, in this climate decade, India must channel investments into sustainable activities. The first step is to construct a robust “green taxonomy” – a green list of sustainable activities. 

Gujarat tops the list of Indian states with respect to installed solar rooftop capacity, as it has already achieved around 40 percent of its allotted target. The persisting pandemic has slowed down the pace of capacity addition but policy incentives like SURYA- Gujarat are paving way towards Gujarat’s clean energy transition.