India can be called the solar hub with major parts of India being suitable for peak solar radiation. PM Modi’s solar power target and installed solar energy project investments boost the potential capacity of renewable energy power plants capturing highest returns. India already has an enormous consumer stand which is the third largest in the world.
Investment: generate 100 GW of solar power by 2022
PM Narendra Modi sets a target of 100 Gigawatts (GW) renewable power from solar energy projects by 2022. This is going to be a major part of his renewable energy project.
India will be contributing $27 million to the International Solar Alliance which is going to be a project of 5 years of recurring investment until 2021.
Solar Corporation of India (SECI) and Indian Renewable Energy Development Agency ( IREADA) have individually contributed $ 1 million to create the ISA corpus fund.
While Softbank also has collaborated with Chinese company GCL System integration technology venturing $930 million worth solar power project in India last month, the Japanese company also jumps in a solar investment worth $20 million in Bharti Enterprises for solar power plants in India.
Speaking of the projects until now, a report reveals India installed solar power capacity project of 16.68 gigawatts. Three years down the line, the center expects 113 GW renewable energy obtained from the installed solar power plants.
Green incentivization policy of Indian government has generated a standardized module for the demand and supply of solar energy. Some of the researchers have advocated the positive approach of government for the renewable energy sector of the country. However, research groups have admittedly raised concerns about high expectations and a bigger target in a short span of time.
Solar energy in India has geared up for a bigger transformation and there isn’t a doubt in the fact. That being stated, despite all the finance invested in the projects, the execution, direction and the achieving the expected results can be a tough row to hoe.
Having learned the changing energy landscape of India, researchers in the field have raised concerns pertaining to the price offered in the solar auctions, stating the lack of sustainability.
In order to meet the exceptional goals of the solar energy sector, the government would require strong and excellent framing of policies with active participation.
Recent studies have suggested that the solar investment in India needs to be raised to $125 billion funds if the country expects its determined solar plan to get executed properly. As per 2015 statements by government officials, the country shall meet its targets if the country manages to push up funds to $100 billion by 2022.
Talking of widespread usage of solar grid energy, around a quarter of India’s population still lacks access to electricity. Resolving all such conundrums would require $250 billion to achieve the goal. This can only be achieved if a major part of the funds comes from private sector.
Although total potential energy output cannot be precisely projected in quantitative terms, the average capacity utilization factor for solar PV is approximately 20% mark. Notwithstanding, the sector surely growth in leaps and bounds signaling greater opportunities.
If the solar power plants and projects in India happen to interest the commercial and multinational investment institutes, the significant funds received from these sections would assuredly help drive growth and achieve predetermined targets.