A few hiccups notwithstanding, India's renewable energy sector seems poised for massive growth in the next four years. India is confident it will exceed its renewable energy target of 175 GW by 2022 as it plans to award 100 GW of solar and wind contracts by 2020 and surpass 200 GW by 2022 according to the power ministry. The government also aims to promote domestic solar manufacturing and help increase wind turbine export.
Consider the roadmap: 16GW of solar tenders by March 31 (2018), 30GW each in 2019, 2020 and nearly 10GW of floating solar capacity to be built on reservoirs. Solar equipment manufacturers to establish local units to supply domestic market. 4GW wind energy targets this year, 10GW each in 2019 and 2020, 5GW in off-shore projects and EXIM bank to help manufacturers boost wind turbine export. The government also plans to encourage farmers to generate 20GW of solar power.
The power minister RK Singh said the government plans to establish domestic manufacturing facilities for up to 20GW which will be set up through global bids. The government has not considered incentivising domestic manufacturers as the tender itself will create demand for solar equipment in the country. The ministry expects to resolve the issue of GST rates on solar panels in the next 7-10 days.
The power ministry has also complained to the finance ministry that customs officials are wrongfully demanding 7.5% duty on imported solar equipment, which has led to ports getting jammed with shipments.
He also warned of penalties for solar power firms that are using foreign equipment in projects awarded on the basis that they would only use locally made solar panels and cells. It will be mandatory for developers to disclose the radio-frequency identification (RFID) information of the panels and share the RFID list of rejected panels.
Meanwhile India has scored a diplomatic ’victory’ at Bonn when China announced its decision to join the International Solar Alliance (ISA) – which is initiated by India. Analysts say its China’s way to corner the solar energy market and a wake-up call for India which now needs to step up with affordable solutions.
Nagpur Metro has decided to go for captive solar power generation and will get it at Rs 4.50/kWh, while it will use more expensive (@Rs. 7.5/kWh) conventional power in the evening.
Also Goa will introduce solar powered boats to revive river commutes. Residents can now get a calm, smoke-free cruise. India's first solar ferry for public transport has been launched in Kerala by NavAlt, a Kochi-based company, earlier this year. The firm's officials may visit Goa to study local conditions.
