India's targets of 175 GW of renewable energy capacity by 2022, and 40% generation capacity from non-fossil fuel sources by 2030 will require a rapid and dramatic increase in solar and wind capacity deployment and overcoming its associated economic, siting, and power system challenges.
Renewable energy-based mini-grids can be an important alternative to, or enhance the effectiveness of, central grid extension as a way to increase access to reliable electricity services. While there are a number of challenges to implementing RE mini-grids, many of these can be addressed by well-conceived policy measures.
Competitive bidding adopted under the Jawaharlal Nehru National Solar Mission is an appropriate process for megawatt-scale solar power procurement, given the changing prices of solar power and the limited paying capacity of India’s consumers and taxpayers. MW-scale plants may be useful to kick-start the solar photovoltaic industry in India.
This report presents an analysis of solar promotion policies in seven countries - Germany, Spain, the United States, Japan, China, Taiwan, and India – in terms of their outlook, objectives, policy mechanisms and outcomes. The report presents key insights, primarily in qualitative terms, and recommendations for two distinct audiences.
While solar energy has great potential as a renewable energy source for India, in terms of resource availability, flexibility in scale and applications, it is one of the most expensive of such options today.
