India has set the target of 450 GW of renewable energy by 2030, which is the world’s largest expansion policy.

The Most Favorable Market

 

As per the ISA report (International Solar Alliance Report), India is one of the four achievement countries among the 80 ISA member countries for facilitating solar power projects and with the most favorable technical and commercial terms and is also considered the most attractive country for investment in solar energy.

This report assessed various parameters like policy support for investment in solar, technological feasibility, market maturity, financing, etc. The three other achiever countries are Brazil, Saudi Arabia, and The United Arab Emirates.

India has set the target of 450 GW of whole renewable energy by 2030 with 175 GW deployment of solar energy by 2022. The National Tariff Policy was amended in 2011 to prescribe solar-specific Renewable Purchase Obligations. These obligations have increased from 0.25% in 2012 to 3% in 2022.

RPO is the mandatory minimum level of purchasing renewable energy out of the total consumption of the state. Up to 100%, FDI is allowed for renewable energy generation and distribution projects. Apart from these supporting policies, India’s total installed capacity is around 372.69 GW, in which 47% is owned by the private sector; there are 42 solar parks with an aggregate capacity of 23,499 MW up to March 2019; around 60 solar cities have been approved with USD 1.3 billion for setting up 50 solar parks of 40 GW by 2020. There has been growing lender interest in renewable energy, 60 RE projects grew in the financing of over 2.5 billion dollars in 2017, nearly 60% of which came from non-banking financial institutions.

In Brazil, owing to relatively high levels of average solar irradiation (GHI) of 5.28 kWh/m2/day and a specific yield of 4.27 kWh/kWp/day, strong technical feasibility is envisaged for solar projects. In Saudi Arabia, owing to the average of 8.9 hr/day of sunshine, high average solar irradiation levels of 6.21 kWh/m2/day, and a specific yield of 5.17 kWh/kWp. In comparison, India’s solar irradiation is 5.098 kwh/m2/day and has a yield of 4.322 kwh.

ISA Director General Upendra Tripathy said, “Solar power is the cheapest in India with the tariff going as low as ₹1.30 per kwh for solar rooftop in the past, cost of solar power is falling in most other parts of the world.”

 

 

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