Parametric Evaluation of States for Development of Solar Power Projects in India

Parametric Evaluation of States for “Going Solar”

With solar power in India to gain its lost sheen , GoI seems much buoyant for sun to change the fate of renewable energy portfolio in the country. Moreover, its also believed that it could be prove to be viable solution for the states which are marred with power shortage. Taking the cognizance of the situation , Indian states too have joined hand with the central government for making solar energy to unleash its maximum untapped potential. However, most of the states in India have taken initiatives fueling up their solar power portfolio. It is pertinent to note that even the regions in the extreme north are working in line for expanding the solar power capacity of the country. Two solar UMPPs having a cumulative capacity of 7 GW, projected to be commissioned by 2022 in the high altitude deserted land of Leh and Ladakh bears a testimony to the fact. Where as a high-populated state such as Delhi where land availability is a serious concern, government is targeting to harness a capacity of close to 3 GW by 2020 via solar rooftop route. In addition to this, newly formed southern state Telangana has set ambitious plans to add nearly 5GW of solar power capacity 2020. However, many states have set large ambitious targets for solar power capacity to be achieved by 2022, but the possibility of these visionary targets to transform into a reality largely depends on the right mix of appropriate factors which are highlighted below.

  • Potential of Solar Energy in the State
  • Availability of Land
  • Economic Credibility of a State
  • Favorable Policy and Regulatory Environment
  • Future Capacity Targets
  • Status of Solar Tariff Realization in the State
  • Solar Power Off Take Scenario
  • Presence or near by proximity of solar equipment manufacturing facilities
  • Tune of Investments from Private Players

India being best recipients of solar energy due to its proximity near equator. The solar potential of India is capable of producing 5000 trillion kilowatts of clean energy. If this energy is harnessed efficiently, it can be helpful in reducing our energy deficit scenario and that too in a clean way. Many states in India have recognized and have identified solar energy potential and many other are coming forward in harnessing much of their solar potent. Collection of appropriate data regarding the solar radiation is one prime issue faced by the developer while the selecting suitable site for the solar power projects. Better assessment availability increases the chances of investment for solar projects by the developers in those states. At present, 51 SRRA stations are operational in India. Of these total SRA stations, 12 stations exists in Rajasthan and 11 stations in Gujarat. Whereas Andhra Pradesh and Tamil Nadu manages to have 6 solar radiation resource assessment stations each.
Gujarat, Rajasthan and Tamil Nadu are top three states supporting a very strong business case for solar power in India. The same could be observed from Exhibit 2. Other than these, the states which have huge potential to upbeat the solar power business opportunities could be observed from Exhibit 3. which signifies best filtered regions suitable for investing into the solar segment by FY 2015-16.






*The views expressed in this article are solely those of enincon perspectives and do not necessarily represent those of Enincon LLP.

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