India plans 20GW solar tender, eyes domestic manufacturing boost?

India plans 20GW solar tender, eyes domestic manufacturing boost?

Context:

• India plans to invite bids for setting up 20 gigawatts (GW) of solar power capacity
• It is an attempt to spur domestic manufacturing of solar power equipment.

What is the proposal?

• The Ministry of New and Renewable Energy (MNRE) introduces the idea of mega bids to boost solar equipment manufacturing in India.
• This may also result in a substantial reduction in tariffs
• The ministry plans to award these contracts to developers who will quote the lowest price at which they will sell electricity in the auction process for the grid-linked capacity.

What is the availability of solar power in India?

• With over 300 clear and sunny days every year, the calculated solar energy incident on India’s total land area is about 5000 trillion kilowatt-hours (kWh) per year and most parts receiving 4-7 kWh per square meter per day, makes solar energy a very profitable option.
• The solar energy available in a year exceeds the possible energy output of all fossil fuel energy reserves in India.
• As per data released by the MNRE, cumulative capacity of solar is7 GW for the year ended March 31, 2016. This will, in effect, generate power worth only a fifth of such a capacity as opposed to if it were to be installed in other modes of generation.
• The daily average solar-power-plant generation capacity in India is 20 kWh per square meter of used land area, equivalent to 1400–1800 peak capacity operating hours every year with available technology.

What are the benefits of solar power in India?

• While the benefits of utilizing solar energy are immeasurable. Some of the advantages which make the renewable sources more favorable for India are:
• These are an inexhaustible source of energy and the best possible replacement to any non-renewable energy in India.
• Solar energy is eco-friendly.
• When in use, it does not release gases which pollute the air much needed especially in a country such as India being one of the most polluted countries of the world.
• Solar energy can be used for variety of household chores, suitable for the rural areas in India.
• Solar power is easily accessible. In energy deficient country like India, where power generation is expensive, solar energy is the best alternate means of power generation.

What is the Make in India scheme?

• Make in India is an initiative launched by the Government of India to encourage national, as well as multi-national companies to manufacture their products in India.
• It was launched by Prime Minister Narendra Modi on 25 September 2014.

Objectives:

• The major objective behind the initiative is to focus on job creation and skill enhancement in 25 sectors of the economy.
• The initiative also aims at high quality standards and minimising the impact on the environment.
• The initiative hopes to attract capital and technological investment in India.

What is the way ahead?

• The need of the hour is to re-analyze the existing solar power policy.
• A level playing field and an ecosystem should be provided to Indian manufacturers. Arresting the free fall of power tariff is also must for a healthy growth of the solar energy system.
• The situation calls for concerted efforts by the agencies to build awareness among citizens and encourage developers to realize the goal, while simultaneously persuading the consumers to switch.
• Insufficient knowledge among citizens about the financial incentives and return-on-investment has been a problem which needs immediate solution.