Indian Prime Minister increases target for solar energy
As India receive twice as much sunshine as many European countries that use solar power, renewable power could be highly beneficial for the country.
The Prime Minister of India, Narendra Modi considers renewables to help meet the rising power demand and overcome the frequent electricity outages that plague Asia’s third largest economy, therefore, a decision to increase his target for solar energy has been made.
Narendra Modi's decision to increase solar energy was prompted due to the rising demand of power.
However, the clean energy source contributes less than 1 per cent to India’s energy mix, while its reliance on irregular coal supplies cause persistent power cuts that idle the industry and its growth.
According to an official in the Indian Ministry of Renewable Energy, Upendra Tripathy, Minister Narendra Modi requires $100bn worth of investments from China, Germany, Japan and the United States to boost India’s solar energy capacity by 33 times to 100,000 megawatts (MW) over a period of seven years, raising solar’s share of India’s total energy mix to more than 10 per cent.
Canadian Solar and China’s JA solar are looking at making cells or modules - used in solar panels - in India, raising the interest of JinkoSolar Holdings.
US-based First Solar and SunEdison Inc have sizeable businesses in India. India is hoping to invest $6bn for the first fiscal year with local firms.
Upendra Tripathy expects an annual investment of £14bn from new and existing companies in the next fiscal year through to 2022.
Regional Managing Director Pashupathy Gopalan says Sun Edison is currently working on a 39 MW project in India and hopes to participate in the solar expansion plan.
Solar energy in India costs up to 50 per cent more than power from sources like coal. However the government is expecting the rising efficiency and the falling cost of solar panels cheaper capital and increasing thermal tariffs to close the gap within three years.
According to Tripathy the main issues that are being addressed are; who is the buyer, where is the land and what can India do to invent a regime where they can raise low-cost capital.
India has recently signed a $1bn agreement with the Export-Import Bank of the United States for companies willing to transport equipment from that country. India is also focusing on assisting foreign firms to raise rupee solar bonds to cut costs.