India has set the target of 24X7 power for all, with 500 GW of renewable capacity by 2030. In October 2021, India retained its third rank on the EY Renewable Energy Country Attractive Index. India’s Installed renewable power generation capacity has increased at a fast pace over the past few years, posting a compound annual growth rate of 17.33% between FY14-FY20, with the 100 GW milestone of installed renewable energy capacity achieved on12th August, 2021.
In continuation of the pace, Gujarat is now going to add a minimum of 500 MW Solar Power afresh, with a possibility of additional 500 MW. The state electricity regulation board of the state- Gujarat Urja Vikas Nigam Limited (GUVNL) has initiated the process for procurement of power through Competitive Bidding from 500 MW Non-Park based Solar Power Projects. This includes a Greenshoe option of an additional 500 MW.
This is in the backdrop of a series of recent news showing the trend of expansion of Solar Power Projects in India. Some of them include:
- Grid Corporation of Odisha (GRIDCO), a public sector undertaking of Odisha State Government has signed a Power Sale Agreement with National Thermal Power Corporation (NTPC) for the purchase of 200 MW of solar power. Odisha Renewable Energy Policy, 2016, has set a target of 2200 MW of additional solar generation capacity by the end of 2022 which includes rooftop solar projects and non-land based installation. The Central Government has also approved three solar power parks for Odisha under the Solar Park Scheme with a cumulative capacity of 340 MW.
- The Ministry of Power has sought Expression of Interest (EOI) for setting up a manufacturing zone on pilot basis for Power & Renewable Energy Sector, with a budgetary outlay of Rs.400 crore over a period of five years from FY 2022-23 to FY 2026-27.
- Tata Power Renewable Energy Ltd, which maintains a portfolio of about 4.9 GW of renewable energy in India at present, has raised Rs 4,000 crore to build a comprehensive platform to achieve its renewable sector ambitions in India. The Tata Power Renewable Energy Ltd. is targeting a portfolio of 20 GW of renewables assets in the next five years.
- THDC India Limited, a Mini Ratna Category-I Enterprise and a leading Power Sector under the ownership of National Thermal Power Corporation Limited, Ministry of Power, Government of India, has signed an agreement with Renewable Energy Corporation Limited (RECL) for the development of large solar power projects with combined capacity of 10,000 MW in Rajasthan. With one of the highest solar irradiances in India. The agreement is to build 5 solar parks of 2000 MW each in five different cities of Rajasthan. Once commissioned, this solar power project alone will yield an annual revenue of Rs 12,000 crore. This will help the country achieve 500 GW of non-fossil fuel capacity by 2030 – the target set by Prime Minister Narendra Modi.
The Massive Benefits To The Economy
Besides the obvious environmental benefits, the most interesting part of these developments is the prices. The Grid Corporation of Odisha will procure 200 MW of solar power at a price of Rs 2.50 Kwh. The Gujarat Urja Vikas Nigam Limited will procure power with Prices to be in the range of Rs 2.45 and above. In May, 2021, NTPC Renewable Energy has signed a power purchase contract with Gujarat Urja Vikas Nigam Ltd. to sell electricity produced by its 150 MW solar project at a rate of Rs. 2.20 per kWh.
The embedded benefits of renewable energy like lower fuel and electricity costs, increased grid reliability, better air quality and public health, and more job opportunities, the low cost of electricity also gives an add-on boost to the economy. Some of the benefits include savings in energy and fuel costs for consumers, businesses, and the government. The secondary benefits are definitely trickier to quantify, but keeping the mounting losses and debt status of scores of SEBs and Discoms (In 2018–19, distribution utilities incurred a total expenditure of ₹ 7,12,610 crore against a total revenue of ₹ 6,63,093 crore, on a subsidy-booked basis with UDAY grants included), the cheaper power certainly is a ray of hope, as about 77 percent of the cost was the cost of power alone. At the end of May 2019, the total overdue amount of generating companies was Rs 22,313 Cr. The entire picture is yet to be clear.
According to the Annual Review 2021 report by the International Renewable Energy Agency (IRENA), about 12 million people were employed in the sector around the world, directly and indirectly, in 2020, with jobs in solar energy being the largest employer.
These are some of the examples of how Renewable Energy is going to illuminate the economy and the country.
