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Solar energy in India: Potential, Advantages and Challenges
- India has significantly increased its photovoltaic capacity over the last ten years, from less than 10 MW in 2010 to over 50 GW by 2022.
- India hopes to deploy 500 GW of renewable energy by 2030, with solar PV accounting for about 280 GW of that total.
- This stipulates the need for 30 GW of annual solar capacity through 2030.
- India can currently only produce about 15 GW of solar modules annually; the remaining demand is supplied by imports.
- Three nations—China, Vietnam, and Malaysia—account for an estimated 85% of this import requirement.
- Since 2014, solar energy imports have totalled $12.93 billion, or Rs 90,000 crore.
Advantages:
- This is India's best non-renewable energy substitute because it is an endless supply of energy.
- Being environmentally friendly, solar energy is ideal for India, which is among the most polluted nations in the world.
- Solar energy can replace other energy sources in rural areas of India and be used for a variety of purposes, such as cooking, drying, heating, and electricity production.
- It is also suitable for use in automobiles, aircraft, big power boats, satellites, calculators, and many other similar devices, making it ideal for urban dwellers.
- Solar energy is the most cost-effective alternative to generate power in a country with a shortage of energy, such as India.
Challenges:
- Solar cell manufacturing needs a huge amount of capital. The cost of debt in India (11%) is highest in the Asia-Pacific region, while in China it is about 5%.
- Solar cell manufacturing is a complicated process that is technology intensive. Establishing state-of-the-art manufacturing facilities needs access to technology. It is unlikely that companies that have spent millions of dollars on R&D would make it easy for India to access the latest technologies easily or at a lower cost.
- Lack of an integrated set-up and the economies of scale (despite 100 per cent FDI in the renewable energy sector) translates into higher cost of domestic production.
- The manufacturing of solar panels faces a severe shortage of raw materials. India does not produce silicon wafer, the costliest raw material used in panels.
- Every eight to ten months, advances in solar cell technology render manufacturing unfeasible for new players.
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