Should India pursue manufacturing of solar equipment?

India’s solar sector is riding on a wave of optimism. The auction mechanism is working and tariffs are getting more and more competitive. The much talked about “grid parity” has since long been realized. Even tariffs of less than Rs.2.50 per kwh no longer raise eyebrows. Though India currently has around 16 GW of grid-connected capacity, which is far less than the targeted 100 GW by 2022, there is a plan in place that gives a feeling that we are indeed working towards a goal and not merely wishing things to happen. In the next two years, the plant to auction as much as 80 GW has been formulated and government appears resolute in its implementation plan.

Solar parks could make up for rooftops

 

Very recently, the Cabinet Committee on Economic Affairs approved the doubling of envisaged capacity through solar parks and ultra mega solar power projects from 20 GW to 40 GW. The Centre has targeted at least 50 solar parks, each with capacity of at least 500 mw, to come up all over the country by FY20. Financial support from the Centre for this additional 20 GW of grid-connected solar capacity would be to the tune of Rs.8,100 crore. It may be recalled that 20 GW worth of Solsolar parks, 34 in number, are already under various stages of development. The original scheme of solar parks was launched in December 2014.