India's solar power sector has grown significantly, surpassing the 70,000 MW installed capacity level.
According to the International Energy Agency's (IEA) World Energy Outlook 2023, clean energy will be on a favorable trajectory, with over 500 GW of renewable production capacity predicted to be added globally in 2023. According to the IEA, solar energy will contribute up to 18% of India's electricity generation by 2030.
The adoption of the 'Rules for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Solar PV Power Projects' in 2023, replacing the 2017 rules, is one of the key initiatives to strengthen India's solar power sector. These new standards aim to promote a risk-sharing ecosystem among stakeholders by facilitating competitive procurement through a uniform and transparent structure. The reduction in the length of the power purchase agreement (PPA) from 25 to 20 years is a significant move that could have an impact on pricing dynamics.
While shorter PPA terms may result in higher stated pricing in bids, the guidelines now include long-term procurement from solar PV power projects 'with or without energy storage.' This inclusion is consistent with India's National Framework for Promoting Energy Storage Systems, which promotes renewable energy supply around the clock and increased grid stability.
However, obstacles remain, with the rules failing to address concerns such as power curtailment by state load dispatch centers, a stumbling block for renewable-rich states. While the guidelines are a step in the right direction, complete solutions are required to overcome obstacles and attain India's lofty carbon-neutral goals. Continued growth in the sector will necessitate continual efforts to address issues and strengthen the regulatory framework.
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Technology is a useful servant, but a dangerous master, it was rightly said. Electronic devices have grown into an inevitable part of our daily lives.
