2022 For Solar: Solarisation, PLI Scheme, Transmission were Buzzwords

As we head into year 2023, here is a review of 2022 in terms of policy-level initiatives with a lowdown on where the country stands with regards to renewable energy capacity as the year comes to a close.

Impetus to RE transmission projects 

2022 began with the Intra-State Green Energy Corridor Phase-II (InSTS GEC-II) scheme being kicked off and approved by the CCEA.

The Government has set sights on achieving 10,750 cms intra-state transmission lines along with 27,500 MVA sub-stations. March 2026 is scheduled commissioning timeline for the targets. The Government will give assistance at 33% of the cost for the project.

In order to aid the 500 GW renewable energy (RE) capacity by 2030, the Power Ministry also launched a plan, “Transmission System for Integration of over 500 GW RE Capacity by 2030.” The plan sets sights on connecting large solar parks and wind power zones with the national grid. The ambitious plan will witness an investment worth Rs 2.44 trillion in transmission projects. Further, to make round-the-clock power (RTC) a reality, It looks to install battery energy storage capacity of 51.5 GW by the end of the decade.

With SECI beginning to tender and accept bids for 2.25 GW worth of RTC power from renewable energy, the sector could witness a boom going ahead.

Domestic manufacturing to gather steam

The second tranche of Production Linked Incentive Scheme on ‘National Programme on High Efficiency Solar PV Modules’, with an outlay of Rs. 19,500 crore was approved and launched during the year. The initiative is a significant one that has been launched with a view to achieve manufacturing for solar PV modules at Gigawatt scale while also reducing dependence on other countries for import and encourage the domestic manufacturing industry. With a significant reservation for projects involving manufacturing capacities of 10 GW from polysilicon to modules within 3 years, the PLI scheme is set to change the face of solar manufacturing in India, post allotments in 2023.

Solarisation

In another major development, the town of Modhera in Gujarat was solarised. This is the first Battery Storage and Solar Power based ‘Suryagram’ for India.

Rooftop solar a laggard, but attempts continue 

The process of implementation was simplified as the MNRE introduced a national portal,  (solarrooftop.gov.in)  which makes it possible for any residential customer pan India to apply for rooftop solar. The process is facilitated as the applicant will no longer have to wait for DISCOM to finalise tender and empanel vendors.

On the financing front, the World Bank Board will provide additional financing worth $165 million for the country’s residential sector to embrace rooftop solar.

In other news, the timeline for India’s Rooftop Solar (RTS) programme was extended by four years because of slow progress. The original timeline of 2022 was pushed to a later date of March 2026, with no extension and now aims at achieving its target of 4000 MW (40 GW) rooftop solar (RTS) capacity addition by March 2026. There was no increase in budget outlay despite the extension.

The progress on rooftop solar front remains slow with just 7.2 GW of rooftop capacity installed as on November 18, 2022. There are several reasons as to why the uptake of rooftop solar remains slow. Some of the reasons behind this could be disruptions in the supply chain, regulatory roadblocks and irregularities, especially at state level, consumer hesitancy and lack of awareness about subsidies.

The Green Energy Open Access Rules , along with the passage of the Energy Conservation (Amendment) Bill, 2022 lent greater impetus to the adoption of renewable energy, particularly solar and energy storage, setting the stage for an eventful 2023 for the sector.