Mr. R. K. Sharma Chairman & MD – Rajasthan Rajya Vidyut Utpadan Nigam Ltd.
“Enhancing Policy Support and Facilitation for State GENCOs”
This technical paper describes the challenges and opportunities in accelerating the integration of renewable energy with conventional energy resources. The paper highlights the need to strike balance between thermal power generation and renewable energy deployment to meet the growing power demand. While thermal power projects contribute to global warming, they remain essential for ensuring a reliable power supply in the near future. The paper advocates the feasibility of retrofitting existing thermal plants with carbon capture technologies to reduce emissions. It also highlights the need for economically viable long-duration energy storage technologies to address the intermittent nature of renewable sources.
Recommendations have also been made for policy reforms to facilitate increase in participation by State Generation Companies (GENCOs) in renewable Energy integration. These include incentivizing thermal power plants for their readiness to meet power demand during periods of nonavailability of renewable energy, allowing GENCOs to establish renewable energy (RE) projects and providing financial support for project execution.
Introduction – Renewable Energy in India
India, as a developing nation, relies heavily on coal to meet its energy demands and has always been committed to looking for more alternative energy sources for sustainable development. Both developing as well as developed countries continue to rely heavily on conventional thermal generation, but they are transitioning to renewable energy usage although at different rates. As per leading market research company Statista, emerging economies like China and India are among the largest consumers of coal (China-53.8% & India-12.5%). Developed countries like the USA, Japan and members of the European Union dominate in oil consumption. According to International Energy Agency (IEA), in 2020 developing countries accounted for about two thirds of global primary energy demand and nearly 80% of the growth in energy demand. However, it is worth noting that per capita emissions in developed countries are still much higher as compared to developing countries. Developed countries have historically been responsible for majority of greenhouse gas emissions.
India’s energy demand is expected to increase more than that of any other country in the coming decades due to its large population and significant potential for growth and development. Therefore, it is imperative that most of this new energy demand is met by low-carbon, renewable sources. India’s commitment to achieve net zero carbon emissions by 2070 and to meet 50% of its electricity needs from renewable sources by 2030 marks a historic point in the global effort to combat climate change.
At present, India stands fourth globally in Renewable Energy Installed Capacity (including Large Hydro), fourth in Wind Power capacity & fourth in Solar Power capacity. [2] The country has set an enhanced target of 500 GW of non-fossil fuel-based energy by 2030 at the COP26. India is the market with the fastest growth in renewable electricity, and by 2026, new capacity additions are expected to double.
With the increased support of the Government and improved economics, the sector has become attractive from an investor’s perspective. As India looks to meet its energy demand on its own, which is expected to reach 15,820 TWh by 2040, renewable energy is set to play a vital role.
The Need for Differentiating Global and Local Environmental Norms:
1. Global Environmental Issues: Global norms address climate change, ozone depletion, and biodiversity loss, requiring a coordinated response and universal standards.
2. Local Environmental Variations: Local norms should differ due to varying challenges based on geography, climate, and natural resources. Tailoring norms to local needs and priorities is essential.
3. Consideration of Social and Economic Factors: Local norms must account for specific social and economic factors. Balancing environmental protection with economic development is crucial for communities reliant on specific industries.
4. Customized Approach: Differentiated norms allow for a customized approach, enhancing the effectiveness and relevance of environmental regulations.
5. Preservation of Global Environmental Goals: Local norms should not compromise global goals and standards. Striking a balance between local priorities and global sustainability objectives is crucial.
In summary, differentiating global and local environmental norms recognizes diverse community needs. Tailoring regulations to local contexts enables better addressing of environmental challenges while upholding global objectives.
Unleashing Sustainable Solutions to Empower India’s Future with Renewable Energy
India benefits from ample sunshine and wind resources, resulting in a capacity of 784 GW Solar (as per NISE) & 695 GW wind (as per NIWE). Renewable energy sources (solar, wind, and hydro power) are widely recognized as the cleanest sources of energy due to their minimal environmental footprints and absence of hazardous waste generation. Recent advancements in renewable energy technologies have significantly reduced implementation cost, making them increasingly costcompetitive with fossil fuels and nuclear power. They offer immense utility for power generation and play a vital role in combating global warming.
However, renewable energy sources exhibit intermittency and variability, necessitating the need for energy storage or backup power sources to ensure grid stability. The establishment of large-scale solar or wind farms requires substantial land areas, which can impact local ecosystems and communities. Additionally, certain renewable energy sources, such as geothermal and hydropower, may face limitations based on resource availability in specific locations.
To effectively, address global warming, it is necessary to take action across multiple sectors and embrace more sustainable solutions. This includes increasing the role of Thermal GENCOs, adopting technologies like smart grid for flexible operations, and implementing carbon capture and storage methods.
1. Flexi operation of Thermal Power Plants with Renewable Energy.
The flexibility of a power system relies heavily on its development over time, taking into account available resources and policies. While completely replacing thermal power projects with renewable energy sources is often seen as a crucial solution for mitigating greenhouse gas emissions and combating global warming, it is essential to ensure the integration of renewable energy and the phased-out retirement of old thermal power plants in a synchronized manner. A challenge faced in this regard is the gradual increase in power demand, coupled with delays in the readiness of power evacuation networks, hindering the smooth integration of renewable energy into the grid.
To address these challenges, the Ministry of Power initiated schemes in April 2018, April 2022, and June 2023, such as the “Scheme for flexibility in Generation and Scheduling of Thermal/Hydro Power Stations through bundling with renewable Energy and Storage.” These initiatives aim to promote the bundling of cheaper renewable energy with costlier thermal power, facilitate energy transition, and enable DISCOMs to achieve Renewable Purchase Obligation (RPO) at a minimal cost. Shifting from conventional thermal power to a mix of renewable energy sources (solar, wind, hydro) while maintaining grid security and smooth grid operation can be the most effective approach to combat pollution and reduce greenhouse gas emissions.
GENCOs, with authorization from State/Central Governments or independently, can install renewable energy projects according to non-exhaustive trajectories issued by the Ministry of Power. If followed by GENCOs and DISCOMs, such schemes can be a game changer and drive the transition in the renewable energy sector.
To enhance flexible grid operation, GENCOs and Transmission Companies can leverage digitized concepts like smart grid technologies. These technologies improve the flexibility of grid operations, optimize the utilization of existing infrastructure, and reduce operational costs. Smart grid technologies also play a vital role in helping system operators and policymakers achieve renewable energy deployment goals, lower greenhouse gas emissions, and ensure reliable system operation (source: National Renewable Energy Laboratory, USA.
Furthermore, electricity storage plays a crucial role in balancing demand and supply, which is essential for maintaining flexibility. Established technologies like pumped hydro can be made more flexible through modern advancements. Battery storage renewable energy projects are promoted by technological advancements in battery production, although further improvements in cost-effectiveness are still needed. In the long term, integrating energy demand for heat, fuels, and mobility through power-to-heat, power-to-gas (e.g., producing hydrogen from renewable electricity), and power-to-mobility (e.g., battery electric vehicles) can provide significant flexibility to the power system while accelerating the decarbonization of end-use sectors.
2. Carbon Capture, Utilization and Storage technology (CCUS)-
Carbon Capture, Utilization, and Storage technology (CCUS) is an innovative approach that involves capturing carbon dioxide and repurposing it to produce valuable products or services, while also storing it to prevent its release into the atmosphere. Captured carbon can be converted into various fuels, such as methane, methanol, aviation fuel, and gasoline. According to a report published by NITI Aayog in December 2022, CCUS will play a crucial role in helping India achieve its global commitments of reducing CO2 emissions by 50 percent by 2050 and attaining net-zero emissions by 2070. The report emphasizes that CCUS is particularly important for decarbonizing the industrial sector, which is challenging to electrify and reduce emissions from due to its heavy reliance on fossil fuels. Additionally, CCUS holds significant potential for decarbonizing the power sector, given India’s heavy reliance on coal, which currently accounts for over 70 percent of the country’s electricity generation.
However, compared to other countries with well-established carbon markets and regulations, India’s initiatives in CCUS are still in the early stages. Once India develops suitable tools and frameworks, it has the potential to accelerate progress in carbon management. Critical factors for the rapid deployment of CCUS technologies include reducing technology costs, increasing demand for captured CO2, and establishing a supportive infrastructure and viable business models.
3. Use of Nuclear Power
Nuclear power plants provide a consistent and reliable base load power supply, which complements intermittent renewable energy sources. They operate without emitting greenhouse gases, contributing to a reduction in overall carbon emissions. Nuclear fuel has a high energy density, allowing for the generation of a significant amount of electricity from a relatively small quantity of fuel. However, nuclear power plants have several disadvantages. While nuclear accidents are infrequent, they can result in severe consequences for human health and the environment. The management of radioactive waste generated by nuclear power plants poses long-term storage challenges and potential risks. Additionally, the construction costs of nuclear power plants often exceed those of renewable energy projects, making them economically less viable in certain contexts.
4. Pump Storage Technologies (PST)
Pumped storage facilities (PSFs) provide electricity storage and generation capabilities for grid stabilization, operational efficiency enhancement, and grid balancing. PSFs, utilizing pumped storage technology (PST), enable generation companies (GENCOs) to adjust electricity generation to meet demand fluctuations, renewable energy intermittency, and peak load periods. They store excess electricity during high production periods and release it during high demand, facilitating renewable energy integration and reducing curtailment.
Benefits of PST for GENCOs:
Grid Stabilization: PST helps maintain grid stability by adjusting generation to match demand, renewable energy fluctuations, and peak loads.
Revenue Optimization: GENCOs can shift generation to high-demand periods, taking advantage of peak electricity prices. PST enables energy arbitrage by pumping water during off-peak hours and generating electricity for sale during peak hours.
Challenges and Considerations:
Feasibility Factors: Geographic suitability, water availability, and economic viability are key factors to consider before implementing PST. Feasibility studies should assess costs, benefits, and risks.
Clearance Process: Obtaining environmental and forest clearances for Pumped Storage Projects (PSPs) is burdensome, as they are treated similarly to conventional hydro projects. PSPs on existing reservoirs or off-the-river sites should have a distinct clearance processing category.
Subsidized Finance: Due to the capital-intensive nature of PSPs, a policy framework for subsidized finance mechanisms should be developed.
In conclusion, PST offers significant benefits for GENCOs and grid stability. However, careful consideration of feasibility factors, streamlining clearance processes, and implementing subsidized finance mechanisms are crucial for the successful promotion of pumped storage technology.
5. Additional Solutions
One approach involves enhancing the efficiency of existing thermal power plants to reduce fuel consumption and subsequently decrease emissions. This can be achieved through equipment upgrades such as implementing modern pollution control technologies like flue gas desulfurization (FGD) systems and upgrading electrostatic precipitators (ESPs). Another important aspect is adopting improved operational practices, including regular equipment maintenance and cleaning, to minimize emissions and enhance overall plant efficiency. These practices contribute to a more sustainable operation and help mitigate environmental impacts.
Furthermore, establishing new supercritical thermal power plants can significantly address the pollution emission problems caused by less efficient subcritical thermal power plants. Supercritical plants offer improved efficiency and reduced emissions, contributing to a cleaner and more sustainable energy generation system.
6. Integration of legacy thermal power projects with renewable energy sources
The process of modernizing older thermal power projects for renewable energy involves converting existing thermal power plants into facilities that generate electricity from renewable sources. This transformation requires a comprehensive assessment of available renewable energy resources at the site, such as solar radiation, wind speeds, hydrological data, or other relevant factors, depending on the chosen renewable energy technology. The most suitable renewable energy technology is then installed accordingly. For instance, if the site receives abundant solar radiation, solar photovoltaic (PV) panels or concentrated solar power (CSP) systems may be selected, while areas with strong wind resources might opt for wind turbines.
In addition, incorporating technical modifications in older thermal power projects by integrating Energy Storage Systems (ESS), such as batteries or pumped-storage hydro facilities, along with flexible operation, becomes a crucial and permanent solution to ensure a stable and reliable power supply from intermittent renewable sources.
7. Utilization of lower-emission fossil fuels
There are opportunities for transitioning to lower-emission fossil fuels, such as biomass fuel, various forms of bioenergy, and natural gas, in thermal power plants. However, it is crucial to conduct a comprehensive assessment of the environmental impacts associated with these alternatives to ensure their sustainability and avoid the emergence of additional environmental or social challenges.
Defining Role of State GENCOs in Renewable Energy Transition
State Power Generation Companies (GENCOs) have a significant role to play in facilitating India’s transition to renewable energy. To ensure their active participation and contribution to the sector, it is highly desirable for the Ministry of Power, Government of India, and State Governments to provide additional policy support and facilitation as outlined below:
1. Designating State GENCOs as Implementing Agencies: Similar to MNRE designating CPSUs such as SECI, NTPC, IREDA, and NHPC as implementing agencies for renewable energy
projects, State governments should designate State GENCOs as nodal/implementing agencies for developing renewable energy projects and parks. This will ensure timely and efficient implementation of renewable energy projects, leveraging the workforce and expertise of State GENCOs in the construction and operation of thermal/hydro/gas-based power plants. This will provide cheaper and sustainable power to the people of the State as it will be free from profitable margins of the private players. Further it will also provide long term stability and cut into the cost of subsidies by the respective Governments.
2. Meeting Renewable Generation Obligations: In line with the notification of renewable obligation vide “Ministry of Power proposal” dated 07.11.2022, the State GENCOs may need to establish a minimum of 25% renewable energy capacity in new coal/lignite-based thermal stations starting from April 1, 2024.To meet Renewable Generation Obligation” (RGO) State GENCOs must be allowed to establish solar power plants by them.
Furthermore, the Ministry of Power, through a resolution dated 27.02.2023 and a revision in the Tariff Policy, 2016, has directed State GENCOs to establish or procure a minimum of 40% renewable energy power.
State Gencos may further be facilitated by way of amendments in the State’s Land Revenue Rules, Land security and lease rent rules.
The aforementioned amendments have become necessary as State GENCOs are currently facing a financial crisis due to long-standing overdue payments from the Discoms.
For instance, in Rajasthan the State’s Land Revenue Rules should be modified in favor of State GENCO as follows:
i. Charging annual land lease rent at par with State Nodal Agency at the rate of Rs 1 per acre per annum
ii. Waiver of land security deposit at the rate of Rs 5 Lac/MW
iii. Electricity connectivity charges at the rate of Rs 2.5 Lac/MW
Such amendments in state land revenue rules will help State Gencos to establish new Solar power projects and supply power to the state at reduced costs. providing waiver of land security deposit and electricity connectivity charges and making annual land lease rent applicable equivalent to the current State Nodal Agency at a rate of Rs. 1/- per acre per annum as already applicable to current State Nodal Agency (SNA), also waiving the land security deposit at Rs. 5.0 Lac/MW, and electricity connectivity charges at Rs. 2.5 Lac/MW. Implementing regulations and policies by State governments in favor of State GENCOs will enable them to supply power to the state at reduced costs.
There have been inconsistencies in the Ministry of Power’s scheme regarding the flexibility in generation and scheduling of thermal and hydro power stations, as outlined in the issued scheme on 12.04.2022, particularly in relation to the installation of solar power projects by State GENCOs under section 62. The revised flexi scheme, dated 12.04.2022, does not permit the development of Renewable Energy (RE) projects under UMREPP schemes at new locations outside of the generating stations’ premises by State GENCOs under the Engineering, Procurement, and Construction (EPC) mode. Instead, the scheme was favoring the development of projects under the Tariff Based Competitive Bidding (TBCB) mode. Generally, the mandate for State GENCOs is to provide power to DISCOMs, not to engage in power trading and then supplying to DISCOMs. Executing the projects in the EPC mode instead of TBCB mode will give following benefits to the States:
a. State GENCOs will not have to enter into PPA with the Solar Project Developers and ownership of the Project will be retained by State GENCOs as the solar power shall be bundled with existing thermal power.
b. State GENCOs will not have to bear the additional financial burden of monthly payment of bills for 25 years to developer (s) as for projects under TBCB mode, State Genco need to ensure Payment Security Mechanism through Letter of Credit to developers, which is difficult to be maintained by State GENCOs due to back-to-back dependency on DISCOMs.
c. The tariff of the power generated under the Engineering, Procurement, and Construction (EPC) mode is anticipated to be lower, whereas under the Tariff Based Competitive Bidding (TBCB) mode, the tariff includes the profit margin of the Solar Power Developer (SPD).
. The EPC mode will provide sustainability to the workforce of state GENCOs, ensuring their long-term viability and stability
. In response to the request of Rajasthan State GENCO, the Ministry of Power further amended the scheme on 21.06.2023 to permit Central or State GENCOs to install Renewable Energy (RE)
projects outside the premises of Thermal Generating Stations through the Engineering, Procurement, and Construction (EPC) mode. This amendment will encourage all State GENCOs to actively engage in State RE policies and increase their participation in Renewable Energy Integrations. In the case of an RE plant being set up by State GENCOs, the entire energy generated will be available to meet the power demand of the State.
State GENCOs’ power plants have significantly eased the burden on state exchequers during challenging situations such as the COVID pandemic and power or coal crises. Unlike private power producers who tend to shy away from power generation during such times, State GENCOs have stepped up to ensure a reliable power supply. Encouraging their involvement in developing solar power projects and solar parks can further mitigate such occurrences and enhance the resilience of the power sector.
Challenges & Strategies for Transmission Network Development in Solar Projects
Further another major challenge that is being faced in development of RE projects is of available Transmission network. Some of the key challenges associated with the transmission network for
solar projects are:
1. In some regions, the existing transmission infrastructure may not have enough capacity to accommodate the additional power generated by large-scale solar projects. This can lead to transmission congestion and limitations on the amount of solar energy that can be effectively integrated into the grid.
2. As the Solar power generation is intermittent and dependent on weather conditions, it leads to grid integration and stability challenges. The Smart Grid and strong transmission network must
be capable of managing the variability and intermittency of solar power to ensure a reliable and stable electricity supply.
3. Expanding the transmission network to accommodate new solar projects often requires significant planning, permitting and regulatory processes. Delays in obtaining approvals and permits can hinder the timely development and connection of solar projects, leading to project uncertainties and additional costs.
4. Connecting solar projects to the transmission grid can involve substantial interconnection costs, including the installation of new transmission lines, transformers, and other infrastructure. These costs can impact the overall economics of solar projects, particularly for smaller-scale installations. In some cases, integrating large-scale solar projects into the transmission network may require upgrades or reinforcements to the existing grid infrastructure such as installation of new transmission network at 765KV and use of Statcons & Capacitor Banks for voltage stabilization.
For highlighting the significance of strengthening the Renewable Energy Power Transmission Network the below example is stated –
Strengthening the transmission network for renewable energy (RE) in western Rajasthan by the Rajasthan Rajya Vidyut Prasaran Nigam Limited (RVPN) is of paramount importance for the
following reasons:
1. Evacuation of Excess RE Power: Western Rajasthan possesses significant solar and wind power potential. However, due to its low population density and power demand, there is surplus RE power generated in this region. Strengthening the transmission network is crucial to efficiently evacuate and transmit this excess RE power to other parts of the state or the national grid.
2. Integration of Intermittent RE Sources: Solar and wind power generation is subject to variability based on weather conditions. To effectively integrate large-scale amounts of RE power into the
grid, a robust and flexible transmission network is required. This ensures the grid’s stability and balances supply and demand fluctuations caused by intermittent RE sources.
3. Fulfilling Renewable Purchase Obligations (RPOs): The Ministry of Power has set a trajectory for renewable purchase obligations, aiming for 43.33% of RE by 2030, encompassing various sources such as wind and hydro power. Strengthening the transmission system in western Rajasthan is crucial to meet these targets by accommodating the additional capacity required from different RE components.
4. Meeting Power Demand: Rajasthan’s power demand is rapidly increasing due to urbanization, industrialization, and economic expansion. Strengthening the transmission network enables the evacuation of additional RE power, reducing transmission losses, and ensuring a reliable power supply to meet the growing demand in the state.
5. By strengthening the power transmission network in western Rajasthan, RVPN can effectively evacuate excess RE power, integrate intermittent RE sources, fulfill RPO targets, and meet the rising power demand. This is essential for promoting sustainable and reliable power supply in the state, contributing to its overall energy transition goals.
Mitigating these challenges requires a coordinated effort among policymakers, grid operators and project developers. Upgrading and expanding the transmission network, implementing advanced grid management technologies, and developing supportive policies in favor of State GENCOs can help overcome these challenges and facilitate the effective integration of solar projects.
Moreover, policy support related to infrastructure development of RE projects by GENCOs, such as amendments in State’s Land Revenue Rules and changes in RE regulations & Policies of Central/State Governments would further help the development of transmission networks and enable direct purchase of RE power by Distribution Companies.
Policy Reforms for Enhanced Participation of State GENCOs in the Renewable Energy Sector : The Case of Rajasthan
To enhance the involvement of state-owned generation companies (GENCOs) in the renewable energy (RE) sector, several policy reforms can be implemented. Here are some suggested policy reforms that can encourage greater participation of state GENCOs in the RE sector:
1. Empowering GENCOs to Lead the RE Sector with State Nodal Agencies (SNAs): Engaging stateowned GENCOs as leaders in the RE sector, alongside state nodal agencies (SNAs), can be a strategic approach to accelerate the adoption and growth of renewable energy. Currently, many RE SNAs in India lack their own technical staff, relying on employees from other departments like generation, transmission, and distribution companies. By establishing joint ventures or independent entities, with GENCOs designated as implementing agencies for RE projects in the state, better coordination can be achieved with other state government agencies and utilities, such as state electricity regulatory commissions and distribution companies. This coordination can streamline the integration of renewable energy projects with the state power grid, leading to cost reductions, improved power supply reliability, and effective implementation of RE projects. A joint venture between state GENCOs and SNAs can also ensure better compliance and implementation of state and central government RE projects.
2. Facilitating State Policy Reforms: To encourage RE projects by state GENCOs, respective state governments should treat GENCOs on a merit basis, providing them with the same benefits as SNAs. This includes the allotment of government land without requiring land security deposits, preferential statutory clearances, equity participation of the state government in the development of RE projects by GENCOs, and directives to state distribution companies (DISCOMs) to arrange power purchase agreements (PPAs) for GENCOs, as the aim is to supply affordable RE power to the state.
3. Free Power Evacuation without Transmission/Connectivity Charges: State-owned RE power projects by GENCOs should be facilitated with free power evacuation, exempting them from transmission and connectivity charges, similar to state-owned thermal power projects. This policy ensures that the RE power generated by GENCOs can be supplied to the state without additional financial burdens.
Example from the State of Rajasthan:
The benefits of increased GENCO participation: Rajasthan has made remarkable progress in developing RE projects and stands as a leading state in solar power generation. Currently, Rajasthan
generates 17,869 MW of solar energy, out of which only 5,170 MW (29%) is being purchased and utilized by the state. Most of these projects have been developed by independent power producers who have utilized the investment facilitations provided under the Rajasthan Solar Energy Policy, 2019. The state’s abundant natural resources, such as affordable land and favorable solar radiations, along with policy support, enable Rajasthan to provide cheaper RE power (71%) to other states. Considering the potential impact, if Rajasthan State GENCO (RVUNL) had installed 71% of these solar projects, it could have mitigated the power crisis not only in Rajasthan but also in neighboring states.
Despite having a solar generation capacity of 17,869 MW, Rajasthan receives only 29% of the total power generated. To address this issue, it is imperative to prioritize State GENCOs in the development of new solar and renewable power projects. This can be achieved through amendments in the renewable energy (RE) policies, ensuring that State GENCOs have the opportunity to contribute significantly to the state’s renewable energy sector. Additionally, policy reforms should be implemented to guarantee that Rajasthan receives a fair share, ranging from 10% to 15% of the total power generated by private agencies. This allocation is crucial to meet the state’s energy demands and reduce its power deficit. Mandating this reform is essential as it ensures that Rajasthan’s resources, infrastructure, and land are utilized for the state’s benefit in every aspect. By implementing these measures, Rajasthan can effectively harness its solar potential, enhance its energy security, and drive sustainable development.
By implementing these desired reforms, we can foster greater involvement of state GENCOs in the RE sector, driving sustainable and affordable power generation and contributing to India’s renewable energy goals.
“Strategies for Promoting Solar Module Manufacturing in India: Overcoming Challenges and Driving Growth”-
Challenges and Strategies for Solar Module Manufacturing in India:
With the objective of ensuring the reliability of Solar PV manufacturers, protecting consumer interests, and ensuring larger energy security for the country, the Ministry of New & Renewable Energy (MNRE) issued the “Approved Models and Manufacturers of Solar Photovoltaic Modules (Requirements for Compulsory Registration) Order, 2019” on 02.01.2019. This order aimed to ensure the quality of solar panels and the reliability of manufacturers. Recently, the MNRE updated the Approved List of Models and Manufacturers (ALMM) by adding five new entrants with a cumulative module manufacturing capacity of 343 MW. Additionally, the MNRE launched the ‘National Programme on High Efficiency Solar PV Modules’ in April 2021 to achieve Giga Watt (GW) scale manufacturing capacity in High Efficiency Solar PV modules. However, it is observed that module manufacturers have primarily concentrated their operations in a few states, with Rajasthan, despite having the highest installed solar projects in India, accounting for only 6% (maximum) of the PV module manufacturing capacity in the period 2023-26.
Strategies to promote solar module manufacturing:
1. Policy Support: States should implement supportive policies aligned with MNRE’s program, offering incentives like tax breaks, subsidies, and grants to attract investment and build confidence among manufacturers.
2. Land and Infrastructure Availability: Identify suitable land parcels or industrial zones with necessary infrastructure, such as roads, power supply, and waste management facilities, to facilitate the establishment of manufacturing units.
3. Streamlined Regulatory Processes: Simplify regulatory processes, establish single-window clearance mechanisms, and specialized agencies to expedite setup and create a businessfriendly environment.
4. Research and Development Support: Establish R&D centers or provide support to existing institutions, fostering collaboration between manufacturers, academia, and research institutions to drive innovation and improve product quality.
5. Financial Incentives: Offer low-interest loans, loan guarantees, and capital expenditure subsidies to offset upfront costs and encourage investments.
6. Domestic Procurement Preferences: Introduce procurement policies favoring domestically manufactured solar modules in government and private projects, creating a reliable market demand.
Conclusion
In conclusion, this technical paper discusses the challenges and opportunities in accelerating the integration of renewable energy with conventional energy resources. It emphasizes the need to strike a balance between thermal power generation and renewable energy deployment to meet growing power demand while addressing global warming concerns. The paper advocates for retrofitting existing thermal plants with carbon capture technologies to reduce emissions and highlights the importance of economically viable long-duration energy storage technologies to address the intermittent nature of renewable sources.
The role of State Power Generation Companies (GENCOs) in India’s renewable energy transition is crucial, and several policy measures can be taken to enhance their participation and contribution. Designating State GENCOs as implementing agencies for renewable energy projects and parks, meeting renewable generation obligations, and providing policy support in terms of land lease rent, land security deposit waiver, and electricity connectivity charges can ensure their active involvement and efficient implementation of renewable energy projects. Additionally, reforms in transmission network development, such as expanding infrastructure, implementing advanced grid management technologies, and streamlining regulatory processes, are necessary to address challenges associated with integrating solar projects into the grid. Furthermore, policy reforms to encourage solar module manufacturing, including policy support, land and infrastructure availability, streamlined regulatory processes, research and development support, financial incentives, and domestic procurement preferences, can drive the growth of the domestic solar industry. By implementing these measures, India can accelerate its renewable energy transition and achieve its sustainable power generation goals.
