Onwards and upwards: At COP26, Prime Minister Narendra Modi announced India would raise the target of non-fossil energy to 500 GW by 2030 from the earlier 450 GW. Photo: PIB

‘Easily achievable’: India increases non-fossil energy target from 450 GW to 500 GW by 2030

At COP26, India raised the Nationally Determined Contribution (NDC) target of non-fossil energy to 500 GW by 2030 from the earlier 450 GW. India also said it will achieve net-zero by 2070. India’s power minister said it was ‘easily achievable’ adding that India will have around 450 GW from solar and wind, while 70-100 GW will be from hydropower. India plans to extend the renewable purchase obligation from 2022 to 2030 to achieve the 500 GW target, of which 70-100 GW would be hydro. 

According to Mercom, India added 4.57 GW of solar capacity in the first half (1H) of 2021, a 251% year-over-year growth. The country’s cumulative solar capacity stood at 43.6 GW at the end of June 2021.

Analysts said to achieve just the solar target of 300 GW capacity by 2030, India needs to install 28 GW of new solar capacity annually from 2022 onwards, three times higher than the capacity installed in any given year. Solar developers believed that India needs to have clear execution plans, long-term policy stability, and financial infrastructure to achieve its target.

Gearing to export: India raises solar equipment manufacturing subsidy from Rs 4,500 cr to 24,000 cr

India aims to export solar equipment for which the government plans to increase the production linked incentive to domestic manufacturers to Rs.24,000 crores from the existing Rs.4,500 crores. Power minister said India’s current solar module manufacturing capacity is 8,800 MW and that of solar cell is 2,500 MW. He said India achieved 54,500 MW of solar equipment capacity from the Rs 4,500 crore incentive which the government sanctioned in April. The Production Linked Incentive (PLI) scheme selects manufacturers through a competitive bidding process. It was brought to decrease dependence on imports.

Govt updates approved list of solar modules and manufacturers

The Centre updated the list of approved solar modules and domestic solar manufacturers to be used for state projects. An additional 1,767 MW module capacity has been included with Vikram Solar’s 972 MW capacity from its Chennai plant bagging major share, among new entrants, which include Pixon Green energy (Gujarat unit, 355MW), Alpex solar (UP unit 240MW), Pahal Solar (Gujarat unit, 110MW), and Novasys (Maharashtra, 100MW), reported ET. 

Coal India plans big diversification to RE

Coal India Ltd (CIL) is planning to set up solar projects and bid for projects under the PLI (Production Linked Incentive) scheme. At the latest COP26 climate summit, India said it would achieve net-zero emissions by 2070. Analysts said it’s possible if large miners such as CIL and generators such as NTPC diversify to RE. 

According to ICRA in FY21, nearly 75% of the total electricity generation came from thermal, while renewables accounted for around 11%. The share of thermal power is expected to come down to 70% and that of renewables is likely to increase to 16% by FY25, driven by an addition of capacity in renewables over the next three-to-four years, experts said. Nearly 60-65 GW of capacity is likely to be added in the renewable energy segment over the next 3.5 years with a majority coming from solar. Coal India is also looking at diversification into solar energy. They are also one of the bidders in the PLI scheme, ICRA experts pointed out. 

Adani to invest $20 billion to develop 2GW per year solar manufacturing capacity

Adani Green Energy Ltd (AGEL) set up a 45GW of renewable energy by 2030 and will invest $20 billion to develop a 2 GW per year solar manufacturing capacity. Adani is looking to increase the share of renewable power procurement from the current 3% to 30% by FY 2023 and to 70% by FY 2030. Adani Group Chairman Gautam Adani claimed AGEL was very strongly positioned to produce the world’s cheapest hydrogen.