Solar Energy Policy and Economic Development in India...

XVII Annual International Seminar Proceedings; January, 2016

ISBN no. 978-81-923211-8-9 http://www.internationalseminar.in/XVII_AIS/INDEX.HTM Page 579

Solar Energy Policy and Economic Development in India context to Gujarat.

Bishwajeet Prakash

Research Scholar

Central University of Punjab

Abstract

Energy is the basic requirement for the development of country. India facing huge shortage of

electricity, as total demand and supply gap more than 11 percent. Shortage of electricity need

to shift towards renewable energy like solar, wind, geo thermal and others. Due to change in

energy, sources it is reduce the environment gas emission and provide sustainable

development to the country. As per record 2006 India around 80000 electrified villages, to

meet the electricity demand to provide electricity to every household government of India

launched Jawaharlal Nehru Solar mission with objective to provide clean and cheap energy to

every household. The objective of this plan is to generate twenty Gigawatt (GW) energy by

2022. In context to achieve the target of solar energy Gujarat government, draft a plan for

development of Solar Energy Park in state known as Charanka solar power park with energy

generation capacity of 605 megawatt (MW).

In this paper discussed about the contribution of solar energy in economic development of

India as well contribution of Gujarat in context of solar energy with reference to Charanka

Solar Park. Study also focused on the challenges faced by the solar energy sector in India.

Key words: Solar Energy, Charanka Solar Park, Development, Sustainable energy.

Introduction

The rapid growth of economy requires an establishment of infrastructure, which includes

essential physical and organisational structure like transportation, communication, sewage

water and electricity. A developing country like India need to focused on infrastructure and

industrial development.To fulfil the requirement of electricity for the industrial sector,

Government of India, (GOI) and state government has focused on the promotion of the

energy sector. The first planning of India has focused on hydro and thermal electrical project.

But the recent scenario has changed, the focus of electricity generation has shifted towards

renewable energy like Solar, Wind, and Hydel and Geothermal energy. The introduction of



renewable energy technology is to assure energy security and to reduce the loss of climate.

The primary objective of renewable energy is to provide clean energy, fulfil the demand of

energy, create employment opportunities and promote economic development.(Jain

&Patwardhan, 2013).

India is the emerging country and plays a significant role in the world economy as it has

attracted various countries for the investment of capital. Due to enormous economic

opportunities number of private and multinational companies look towards India for the

investment in different sectors like hydro chemical industries, fertilizers industries, steel,

power generation industries, and urban housing development. The development of the

projects or industries based on the energy availability.India is facing an actuate shortage of

energy which hampering the growth of the industries. India is in a state of perennial energy

shortage with a demand-supply gap of almost 12% of the total energy demand. The demand

for electricity is continuously rising, In India electricity production mainly depends on the

coal base thermal power plants. Total capacity of energy in India from various sources like

coal-based power plant 1,38,213 Mw (58.5%),oil-based plant 1,200 Mw(0.5%),Natural gas

20,381 Mw(8.6 %),Nuclear power 4780 Mw(2%),and renewable energy contribution 71,600

Mw(30.2%) while solar power production is 2,647 Mw(1%) of total energy.(Ministry of

Power,2013).

Source: Ministry of power

Power shortages are estimated at about 11% of total energy and 15% of peak capacity

requirements, which is likely to increase in the coming years. Renewable energy (RE)

sources contribute only 7.7% of the total installed power capacity of 167,077 MW in

India.The cost of production of solar energy lies fromRs 15 to Rs 20 per unit for solar

57.87%

0.50% 8.53%

2.00%

29.98%

1.11%

Coal

Oil Plant

Natural gas

Nuclear Power

RenewableEnergy

Solar Power



energy, which is very high when compared to Rs 2 to Rs 5 per unit for other conventional

sources in India.1

Among the Renewable energy (RE) sources, wind power is the dominating component while

solar energy currently contributes to less than 1 percentage including (on-grid+ off-grid) of

the total installed capacity. The solar energy potential in India is immense due to its

convenient location near the Equator. India receives nearly 300 days of sunshine every year,

which is equivalent to 5000 trillion kWh of energy. India is situated of its location between

tropic of centre and Equator, due to positional benefit the average temperature ranges from

250C to 27.5

0.This means that India has huge solar potential .The sunniest parts are situated in

the south/east coast from Kolkata to Chennai (Srivastava & Srivastava, 2013).

Historical Growth of Solar energy in India

Three government bodies established to promote solar energy in India. The first is the

Ministry of New and Renewable Energy (MNRE), which is the nodal unit for all matters

relating to RE. The second, India Renewable Energy Development Agency (IREDA), is a

public limited company established in 1987 to promote, develop and extend financial

assistance for RE and energy efficiency conservation projects. Finally, Solar Energy Centre

(SEC) is a dedicated unit of the MNRE and the Government for the development of solar

energy technologies and promotion of its applications through product development.

Besides this, various state governments has also rolled out various policies and subsidies to

promote this sector.

The rural electrification program 2006 was the first step of government of India in recognize

the importance of non-conventional energy like nuclear,solar,wind, hydel and other

renewable energy.The program promote electrification in all unelectrified villages. The

program provide the guidelines of the off grid solution based on standalone system may be

taken up supply of electricity so that every household can get the supply. Where there was no

grid system the government opted the use of isolated lighting technology like solar

photovoltaic.However in early stage total 33.8 Mw capacity was installed.In first phase solar

latten solar,pump, home lighting system ,street light system, solar home system was

introduced.2As next step in 2007 Government of India (GOI) formulated semiconductor

policy to encourage electronic and information technology industry in India. The policy

1http://cci.gov.in/images/media/ResearchReports/PriyankaVarma31jan2012.pdf

2http://www.aegcl.co.in/RE%20Policy%2023_08_2006.pdf

http://cci.gov.in/images/media/ResearchReports/PriyankaVarma31jan2012.pdf

http://www.aegcl.co.in/RE%20Policy%2023_08_2006.pdf



include special incentive packages for corporates to attract investment for setting up

semiconductor fabrication and micro nanotechnologyindustries. The policy provide

incentives to those manufacturing companies who were produced the solar cell,photovoltaic

and other advance Nanotechnology3. In 2008, GOI introduced new policy known as

Generation based Incentives (GBI) scheme. The aim of this policy to promote grid

connection with power projects in mutually exclusive manner,so companies can avail either

accelerated depreciation or GBI. The scheme was first time define Feed in Tariff (FIT) for

solar power (a maximum of Rs.15/Kwh).Under this scheme the maximum capacity of each

developer for solar Pv and solar thermal project will be 5 Mw.Through this policy India grew

marginally to 6 Mw by 2009.4 In 2008 GoI announced National Action Plan on Climate

Change (NAPCC).A part of this GoI announced National Solar Mission (NSM).The aim of

this mission to develop solar industry based on community driven. The extra cost of energy

must paid by federal government.

Solar Policy in India

Government of India has begun to acknowledge the importance of solar energy to the country

economic development. Forinstance, DrManmohan Singh called “Solar valley” in India akin

of the Silicon Valley, as a contribution to the national as well as global effort at combating

climate change. However, launching the Jawaharlal Nehru National Solar Mission (JNNSM)

he said creation of an installation capacity of 20,000 Mw by the end of the 13th

plan.According to him the policy strengthens and brought information technology revolution

and made India a global player. He set the target of increasing the efficiency use to bring

about 20 to 25 electricity intensity of the GDP by 2020.The target of total production capacity

22000 Mw by the 2022, through solar photovoltaic and solar thermal (The Hindu, 2010).

Blessed with 300 sunny days in a year and receiving an average hourly radiation of 200

MW/sq km, India is well placed to overcome its key challenges through the enormous solar

potential. Around 12.5% of India‟s land mass, or 413,000 sq. km, could be used for

harnessing solar energy.Recognizing this, the Government of India included solar energy as

a key mission under the National Action Plan on Climate Change and formally launched the

Jawaharlal Nehru National Solar Mission (JNNSM) in 2010. The JNNSM is a major initiative

of the GoI to ramp up its solar power generation capacities in a phased manner, and seeks to

3http://www.psalegal.com/upload/publication/assocFile/Semiconductorpolicy.pdf

4http://mnre.gov.in/file-manager/grid-wind/gbi-scheme.pdf

http://www.psalegal.com/upload/publication/assocFile/Semiconductorpolicy.pdf

http://mnre.gov.in/file-manager/grid-wind/gbi-scheme.pdf


ISBN no. 978-81-923211-8-9 http://www.internationalseminar.in/XVII_AIS/INDEX.HTM 83

provide impetus to the development of a huge solar market in India. The mission has set out

to achieve 1000MW of grid connected solar projects at 33 KV and above ,100 Mw of rooftop

and small solar projects, and 200MW of off-grid projects by 2013 (Phase I); 4000MW (and

10000MW on the uptick) grid connected and 1000MW off-grid projects by 2017 (Phase II);

and 20000MW grid connected and 2000MW off-grid projects by 2022 (Phase III). The

JNNSM aims to achieve 20 million solar lighting systems for rural areas and increase the

solar thermal collected area to 15 million sq meters by 2017 and 20 million sq meters by

2022.

Jawaharlal Nehru National Solar Mission (JNNSM)

Jawaharlal Nehru National Solar Mission is the major initiative of the Government of India

with a significant participation of state to promote eco energy and sustainable energy growth.

It plays a significant role towards contribution to fighting the global climate challenges

issues. The JNNSM launched on 11 January 2010 by Prime Minister Dr. Manmohan Singh

with the target of developing 22,000 (MW) of solar energy capacity by 2022. (Deshmukh.et

al., 2011).

Objective and Target

The goal of JNNSM is to establish India as a global leader of solar energy by spreading

awareness and promoting investment by the policies initiatives. The mission has set to

generate 22,000 Mw energy in three-phase. The first stage in between (2010-2013), 2nd

phase in between (2013-2017) of the 12th

plan, and 3rd phase in between (2017-2022) of 13th

plan. The immediate aim of the mission was to focus on setting up a friendly environment for

solar technology. The first phase focus set upon two aspects likely promotion, the grid

system, and the modest capacity of the grid. The second phase target on aggressive capacity

addition and improving the solar penetration. Primary goal discussed below:

To develop a policy for the generation of solar energy 22,000 MW by 2022.

To create a friendly environment for solar manufacturing capability, particularly

in solar thermal and market leadership.

This plan target is off-grid applications likely 1,000 Mw by 2017 and 2,000 Mw

by 2022.

To achieve 15 million square meters solar thermal area by 2017 and 20 million

area by 2022.



To deploy 20 million solar lighting in rural areas by 2022.(PIB,2009)

Gujarat Solar Power Policy

The challenge of global warming and climate change has become a threat to the world. The

Government of Gujarat recognized that there is urgent need to tackle the problem of global

climate change. Volatility price of energy is binding the Gujarat Government to shift the

paradigm towards solar and fossils energy. The solar energy policy the solar energy provide

not only the cheap energy but provide clean and green energy. Hence, the government of

Gujarat encourage stakeholders and promoters to use their technology and innovation to

promote solar energy. No doubt Gujarat is the front runner to support the renewable energy

technology in the country. The biggest factor of contribution in renewables is the solar policy

of Gujarat. To promote the promoters, Gujarat government was passed a resolution and draft

a plan to focus on solar energy.

Rooftop Solar Power Projects

Government of Gujarat is the key entity who has taken keen initiative and lead to promote

rooftop solar power projects as part of Clean Climate Initiative. The Energy &Petrochemicals

Department has formulated this programme in consultation with other participants. The

Government of Gujarat has launched this project with the objective of encouraging

alternative green energy sources like solar energy to reduce greenhouse gas emissions caused

by conventional energy sources like coal, lignite, oil, etc. and advance towards clean energy

self-sustainability.

The aim of the Project is to encourage social participation for generation and utilization of

clean energy sources like solar energy. To harness maximum solar energy, this programme

aims to set up Solar Photovoltaic (SPV) Systems on the rooftops and terraces of civil

structures including residential and commercial buildings. The SPV systems will directly

convert solar energy into the electrical energy and feed into the electricity grid system.

This Project provides an opportunity to property owners in Gandhinagar City for participation

in this Project with the objective to encourage green energy by offering their rooftop or

terrace for installation of Solar Photovoltaic System for solar power generation. The owner of

property will be paid a “Green Incentive,” which shall be based on the units (kWh) of

electricity generated by the SPV system installed on their property. Under this Project, the

Government of Gujarat has targeted to set up SPV installations aggregating to 5 megawatts

(i.e. 5,000 kilowatts) within Gandhinagar City. The Government of Gujarat will also select,



through appropriate procedure, the developer/s to install the SPV systems on individual

property; selected developers will also maintain and operate the SPV installations. Selected

developers will execute the “Green Incentive Agreement” with individual property owners,

whose rooftop or terrace will be utilized for the SPV system.

By this advertisement, the Government of Gujarat invites Expressions of Interest (EoI) from

property owners in Gandhinagar City area to participate in this objective of encouraging

green energy generation by offering their rooftops and terraces.

The state leads in the country with 9.75 MW roof-top solar power generation.

Gujarat accounted for 23.64 per cent of the total 41.24 MW roof-top solar power generated in

the country by the end of financial year 2014-15. The other state that comes close to Gujarat

is Punjab with 7.52 MW roof-top solar power. Solar Rooftop Solar PV project in 2010-11 in

state capital Gandhinagar. After its success, the state government initiated the process to

replicate the same model in five big cities of Vadodara, Rajkot, Mehsana, Bhavnagar and

Surat. The target for solar power generation for these cities was 25 MW. Though this target

was not achieved by the state government in 2014-15, it still is the top state when it comes to

roof-top solar power generation. The roof-top solar power generation is a grid connected

programme, wherein Solar Photovoltaic (SPV) Systems are installed on rooftops and

connected to an electricity grid.5

Gujarat Solar Policy 2015

The state of Gujarat intends to increase the share of renewable energy, particularly solar

energy in the basket of energy.it is with the intention that state launched the Gujarat Solar

Policy 2009 for which it received an enthusiasticresponse. The policy resulted in cumulative

solar capacity in excess 1000 Mw with the investment amount INR 9000 crores. This policy

also witnessed setting up India‟s first and Asia largest solar power plant in Charanka village

in Patan district, and country first MW scale canal –top solar plant at Chandrasan in Mehsana

distrct. The GOG has also acknowledge the fact that power from renewable source is at

present ,significantly more expensive that those generated from conventional sources like

coal based power plant. The increases of renewable energy in the total energy basket has to

be done in a manner that does not add undue burden to the consumers. However, the solar

policy 2015 is intended to facilitate and promote large scale of solar power generation

5http://geda.gujarat.gov.in/

http://geda.gujarat.gov.in/



capacity in Gujarat, While taking in account of all its stake holders, such as investors,

developers,technology providers, power utilities, Grid operators, and consumers.Gujarat is

rich solar energy resource with substantial amount of barren and uncultivable land, solar

radiation range of 5.6 kilowatt-hour per square meter per day, an extensive power network

and utilities with reasonable good operational efficiency. It has potential for development of

more than 10,000 Mw of solar generation capacity and solar sector as a whole not only for

state but also for the country. This Gujarat power policy 2015 aim to scale up the solar power

generation in substantialmanner. According to state government introduces the 2015 solar

power policy with following objectives

1. Promote green and clean power and to reduce carbon emission.

2. To reduce the dependency on fossilfuel for energy and security sustainability.

3. To help to reduce the cost of renewable energy generation.

4. To promote investment, employmentgeneration, and skill enhancement in the

renewable energy sector.

5. To promote to use barren and cultivable land

6. To encourage growth of local manufacturers in line with make in India programme

7. To promote research and development and innovation in renewable energy.6

Charanka Solar Park

Gujarat Solar Park is the world‟s first multi developer, multi facility, multi technology and

multi beneficiary solar park located in 2,000-hectare (4,900-acre) plot of land near Charanka

village in Patan district, northern Gujarat. This is the Asia's largest solar park hub. This

project is Honourable Prime Minister Mr. NarendraModi pet project and because of his

initiative in Gujarat the Solar has taken birth in India. The Gujarat Solar Park hosts about 17

different projects by different developers. As on April 2014, a total of 221 megawatts had

been commissioned. It also became the world's second largest photovoltaic power station.

When fully built out, the Charanka Solar Park will host 500 MW of solar power systems

using state-of-the-art thin film and crystalline technology. The investment cost for the

Charanka solar park amounts to US$280 million, the construction began on December 3,

2010. The solar park is expected to save around 8 million tonnes of carbon dioxide from

being released into the atmosphere and save around 900,000 tonnes of natural gas per

year.The Gujarat government has signed Power purchase agreement (PPA) with developers

6http://geda.gujarat.gov.in/policy_files/gujarat_solar_power_policy_2015.pdf

http://geda.gujarat.gov.in/policy_files/gujarat_solar_power_policy_2015.pdf



for Rs15 (about USD 0.29) per kWh for the first 12 years and Rs 5 (about USD 0.10) per

kWh from the 13th to 25th year. The national solar policy has fixed tariffs of Rs17 for

photovoltaic and Rs15 for solar thermal for 25 years.

Key Features of the solar park

The solar power park Asia first Multi developer,Multi facility, Multi technologyand Multi

beneficiarySolarPark. The park is integrated hub of solar power generation Unique

Integration of Environment benefit, infrastructure developmentand Social up gradation

benchmark project for other states.The energy park involved hybridization of wind and solar,

upgradationin the standard ofliving in the rural area.Utilization of waste land and promote

local employment

Socio Economic Benefits of Charanka Solar Park to Charanka Villagers

The information based on the primary survey, data and information based on the respondents

views. The other source of information also includes.

1.1 TangibleBenefits

Basic infrastructure development benefits shared with local villages

Communication network : The communication network facilities enhanced, the

road and transportation facilities above the average.

Provision of Irrigation water : The plant established in the disert prone area facing

huge shortage of water and villagers were much dependent on rain water.But due

to the plant the system of irrigation has been changed ,now the canal ,small dams

are constructed.

Developer investment of Rs. 3600 cores: 17 developers invest more than 3600

cores.

Employment generation: The plant create employments for local people, before

the plant people of the Charanka move towards other cities but now they were

getting employment in the plant. More than 1500 people directly or indirectly

received benefit from the park.

Economic upliftment : The plant enhanbced the living standards of people the

income of the respondents increased to 40 percent to 50 percent.

1.2 Intangible Benefits:

Increase in Vegetation cover



Reduction in desertification process

CarbonEmission reduction

Increase the value of area

Social upliftment

Future prospects of solar energy in India

India is in a state of perennial energy shortage with a demand-supply gap of almost 12% of

the total energy demand. This trend is significant in the electricity segment that is heavily

dependent on coal and other non-renewable sources of energy. Renewable energy (RE)

sources contribute only 7.7% of the total installed power capacity of 167,077 MW in India.

Among the RE sources, wind power is the dominating component while solar energy

currently contributes to less than 0.1% (on-grid+ off-grid) of the total installed capacity.

The solar energy potential in India is immense due to its convenient location near the

Equator. India receives nearly 300 days of sunshine every year, which is equivalent to 5000

trillion kWh of energy. India can generate over 1,900 billion units of solar power annually,

which is enough to service the entire annual power demand even in 2030 (estimates). The

Rajasthan and Gujarat are the regions with maximum solar energy potential. This, coupled

with the availability of barren land, increases the feasibility of solar energy systems in these

regions. Considering India‟s solar potential, the government has rolled out various policies

and subsidy schemes to encourage growth of the Solar Industry, which is expected to

experience exponential growth in the coming years.7

Challenges Faced by Solar Energy Sector in India

The solar industry in India is still in its adolescence stage and faces many challenges such as

high costs of solar power generation. In India, cost of solar electricity produced on-grid is Rs.

18.44/unit. This high cost is mainly due to dependence on imports for silicon and solar wafers

used for the manufacture of solar cells – about 80% of which comes through imports. Solar

projects are capital intensive, and the lack of an effective financing infrastructure for these

projects is another major factor impeding growth in this sector. Another challenge faced

today is the disparity in solar potential across states,

7http://tejas.iimb.ac.in/articles/75.php

http://tejas.iimb.ac.in/articles/75.php



State wise solar energy potential in India

Source: Ministry of Renewable Energy

The map describe west part of India mainly Gujarat, Rajasthan and some part part of

Madhya Pradesh has higher solar radiation capacity. Most of the solar projects or plants

established in this area show disparities among states energy production due to solar

radiation capacity.

Technological innovations that improve the efficiency of current solar energy systems are

necessary to exploit the solar energy potential in India. In order to facilitate this,

government has to frame comprehensive R&D schemes and provide incentives along with

the current subsidy schemes. Another major factor restricting the growth of this sector is

the lack of standards, resulting in the fragmentation of the market among manufacturers

and suppliers. Standardization of systems will lead to rationalization of cost as companies

can invest in R&D and newer technologies to meet common specifications. Facilitating

closer industry – government cooperation and increasing consumer awareness about the

benefits of solar energy are some of the other main challenges currently faced by the



industry. The demand and supply drivers for the solar industry, in addition to the challenges

faced by the industry.

Active growth of the Indian solar energy industry calls for immediate implementation of

the following steps. These measures will not only boost the growth of solar energy sector,

but also reduce the usage of non-renewable sources of energy and carbon footprint. The

challenges and barriers discussed below.

Cost and T&D Losses: Solar PV is some years away from true cost

competitiveness and from being able to compete on the same scale as other energy

generation technologies. Adding to the cost are T&D losses that at approximately

40 percent make generation through solar energy sources highly unfeasible.

However, the government is supporting R&D activities by establishing research

centres and funding such initiatives. The government has tied up with world-

renowned universities to bring down the installation cost of solar power sources

and is focusing on upgradation of substations and T&D lines to reduce T&D

losses.

Land Scarcity: Per capita land availability is very low in India, and land is a scarce

resource. Dedication of land area near substations for exclusive installation of

solar cells might have to compete with other necessities that require land.

.(Srivastava & Srivastava ,2013)

Funding of initiatives like National Solar Mission is a constraint given India's

inadequate financing capabilities. The finance ministry has explicitly raised

concerns about funding an ambitious scheme like NSM.8

Manufacturers are mostly focusing on export markets that buy Solar PV cells and

modules at higher prices thereby increasing their profits. Many new suppliers have

tie-ups with foreign players in Europe and United States thereby prioritizing

export demand. This could result in reduced supplies for the fast-growing local

market.

The lack of industry and government cooperation for the technology hampers the

solar project. The need for a better financing infrastructure, models and

arrangements to spur the PV industry and consumption of PV products. Training

and development of human resources to drive industry growth and PV adoption

8http://www.eai.in/ref/ae/sol/cs/spi/kc/key_challenges_in_the_growth_of_solar_pv_technology_in_india.ht

ml

http://www.eai.in/ref/ae/sol/cs/spi/kc/key_challenges_in_the_growth_of_solar_pv_technology_in_india.html

http://www.eai.in/ref/ae/sol/cs/spi/kc/key_challenges_in_the_growth_of_solar_pv_technology_in_india.html



The need for intra-industry cooperation in expanding the PV supply chain, in

technical information sharing through conferences and workshops, in

collaborating with BOS (balance of systems) manufacturers and in gathering and

publishing accurate market data, trends and projections.

The need to build consumer awareness about the technology, its economics and

right usage

Complexity of subsidy structure & involvement of too many agencies like MNRE,

IREDA, SNA, and electricity board and electricity regulatory commission makes

the development of solar PV projects difficult.

Land allotment & PPA signing is a long procedure under the Generation Based

Incentive scheme.

Policy and regulatory Barriers: There are various issues raised by developers, such

as long term planning, clarity in solar policy, bankability of Public private

accessibility (PPA), and effective technical criteria which clearly focused on the

success of mission rather than giving everybody a fair chance to participation in

mission.

Infrastructure Barriers: Clearly, land was most critical for all infrastructure related

barriers. The most important parameter in infrastructure are land acquisition of the

land

Evacuation system and approval: Developers feels the lack of single window

clearance create huge barriers as a part of approval.

Water allocation as a barrier: The developers of solar thermal power projects did

not obtain allotment near the water resource since the developers of PV projects

were allotted the land near the water resources.

Technology and Financing Barriers: The most important barriers includes such as

market accessibility for solar energy. Less investment on modern technology

increases the solar cost price. The solar energy projects have faced financing

problem because of various reason. The reason are:

1. High capital cost

2. Low plant load price

3. Subsidy from the government

4. Debt issues of the developers

5. Knowledge barriers among financial institutions (World bank, 2010)



Selective Implementation of On-Grid Application

From today‟s technology standpoint, solar power generation works at 15-20% efficiency.

Under this scenario, large-scale on-grid applications are more feasible in areas where there

is plenty of barren land and high rate of irradiance such as Gujarat and Rajasthan. It is very

important to concentrate the efforts in these areas to realize solar potential there before

moving onto other parts where the irradiance is low or there is scarcity of barren land. The

RE produced in these regions can be transferred to other states through RECs, enabling

uniform distribution.

Development of Off-Grid Application

More than 80,000 villages in India suffer major electricity supply shortages throughout the

year, which provides tremendous opportunity for off-grid solar applications deployment.

Some of the possible applications are lighting and electrification systems, solar powered

cellular towers, irrigation pumps and street lighting. Exhibit 5 gives an estimate of the

diesel savings and carbon emission reduction possible through deployment of solar cellular

towers.

Establishment of Localized Mini-Grids

Localized mini-grids based on Photo Voltaic (PV) cells can be set up in regions that lack

grid connectivity due to physical or financial barriers. Electricity generated by these mini-

grids can distribute through localized low-tension networks. Central government subsidy

can finance initial setup, state and local governments can fund distribution overlay, and

revenue collected from sale of electricity can fund the operation and maintenance expenses.

The main advantages of mini-grids are lesser initial setup costs and power tariff comparable

to that of conventional grid power. The mini-grids in Sundarbans stand testimony to the

success this system can achieve in India.

Conclusion

Solar Energy possesses tremendous potential in bridging India‟s energy demand-supply gap

in the future. There are various challenges for this industry, including lowering cost of

production, increasing R&D, consumer awareness and financing infrastructure. It is



important to overcome these challenges for fast growth and mass adoption of the technology.

Some of the immediate actions to enable growth are efficient implementation of renewable

energy certificates, usage of carbon trading as a source of revenue, immediate

implementation of grid powered energy in regions of Rajasthan and Gujarat, development of

off-grid usage in various applications such as cellular towers and encouraging localized mini

grids in areas that lack connectivity today. If these initiative work as planned, it is only a

matter before India becomes one of the world leaders in Solar Energy.

The solar power potential of India is estimated to be 5,000 trillion kilowatt-hours per year,

and is thus considered by many to be the most favourable energy option for the subcontinent.

However, today India has an installed solar power capacity of only 9.84 megawatts which is

about less than 0.1 percent of the total installed renewable energy of the country. The study

revealed that in India has huge potential to generate solar energy and enhanced the growth of

the country. The higher radiation and 300 days sunny available increase the potential of the

energy sector of India. The Gujarat and Rajasthan are two major state contribute higher solar

capacity to India. Government of Gujarat has taken number of initiatives to generate solar

energy and make state 100 % energy hassle free. The Charanka Solar park provide the best

alternative energy source and reduces the loss of energy as well promote the developers to

establish the solar industries.

References

http://cci.gov.in/images/media/ResearchReports/PriyankaVarma31jan2012.pdf accessed on

20 August 2015.

http://geda.gujarat.gov.in/ Accessed on 22 August 2015.

http://geda.gujarat.gov.in/policy_files/gujarat_solar_power_policy_2015.pdf Accessed on 22

August 2015.

http://mnre.gov.in/file-manager/grid-wind/gbi-scheme.pdfAccessed on 25 August 2015

http://www.aegcl.co.in/RE%20Policy%2023_08_2006.pdf Accessed on 30 August 2015

http://www.eai.in/ref/ae/sol/cs/spi/kc/key_challenges_in_the_growth_of_solar_pv_tectechnol

_in_india.html Accessed on 22 August 2015.

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