Energetica India Magazine: september 2020

SOLAR POWER The solar capacity addition in India in Q1 2020 was the lowest since Q4 2016. However, according to a recent report by the International Energy Agency (IEA), while renewables are not immune to the COVID-19 crisis, they are more re- silient than other fuels. The agency not- ed that in 2021, the solar energy sector is expected to spring back up again as currently delayed projects start to come back online. In 2021, it expects to reach the same level of renewable capacity additions globally as in 2019. Renew- able energy especially the solar energy sector is at the cusp of this opportunity as it delivers cheaper, cleaner electrici- ty – with the right regulatory and policy framework, it could be the way forward when compared to conventional electricity. Moreover, the number of direct and indi- rect jobs that will be created as a result of the construction and maintenance of renewable assets will be an added ad- vantage post the lockdown will be lifted to revive the economy when increasing unemployment is a concern. Renewable energy, especially from solar, has long edged past the point of grid parity and are now cheaper than conventional en- ergy. This economic rationale would it- self mean a fillip for renewable energy in the post-COVID-19 phase. The power sector is a lead indicator of economic growth. After lockdown, we expect all incremental power capacity addition to be from renewables. Thus, investment in, and capacity roll-out of renewable energy is a precursor to the health of the economy. This will add val- ue to revive the economy of the coun- try. This pandemic is also a lesson for the Companies to not rely solely on one country for their technical equipment and move towards being more diversi- fied and domestic production of com - modities. The construction phase of solar however, is very employment-in- tensive and, to some extent, operation and maintenance of solar generate sig- nificant employment in our communities. Thus, job security and job creation will probably be the most important factors in determining how India manages to combat the economic slowdown post- COVID-19. Because thousands of peo- ple are engaged with full-time contracts in construction of assets every year, by solar developers, operations, mainte- nance and cleaning of solar assets re- sult in part-time employment opportu- nities to several thousand people from remote and rural areas. Government’s role to revive the econ- omy post Covid The Government of India has also tak- en many proactive fiscal measures like Repo rate cut to 4.4 per cent, three months moratorium on principal and in- terest repayment for term loan and work- ing capital facilities to revive the solar energy sector The solar industry is seek- ing some respite from the government so that they can stay afloat during this economic crisis and work towards meet- ing the long-term renewable energy tar- gets of the country. A strong and strate- gic revival plan is a very important post covid for the industry to help achieve its targets on time. More targeted policy introductions need to be done to support decentralized projects such as Rooftop Solar and pro- vide incentive to domestic production of Solar cells, modules, and other equip- ment. This crisis provides an opportunity to the Government of India to lead by ex- ample and create a stimulus plan which is green, efficient, and progressive. Recently, the International Renewable Energy Agency’s (IRENA) Coalition for Action comprising over 100 companies in the renewable energy industry from across the world wrote to governments putting forth recommendations on how governments can ensure a rapid and sustained economic recovery of the Re- newable energy sector that aligns with climate and sustainability objectives. They emphasized the role renewable energy could play in these strategies by providing reliable, easy-to-mobilize, and cost-effective electricity for essen- tial services. Recently, Prime Minister Narendra Modi highlighted the importance of build- ing local manufacturing capacity while launching a 750-MW solar plant in Mad- hya Pradesh. His statement of a liquidity injection package of Rs 90,000 crore to power distribution companies as part of the Centre’s ‘Atmanirbhar Bharat Abhi- yan’ economic stimulus. The Rs-90,000- crore economic package to the power sector is almost equal to the pending bills of many power-generating compa- nies, including the solar energy sector. Post Covid, more financial aid is required to boost local manufacturing, given India relies on China for about 80% of its so- lar inputs. The Centre should grant more financial aid to the solar energy sector and decentralised model of solar ener- gy development that does not endan- ger grasslands and desert ecosystems. Government-supported financial institu - tions need to step forward and take the lead in scaling up long-term investment into India’s solar energy sector. 53 energetica INDIA- September_2020