RE Growth in Rajasthan Commendable, But Challenges Remain: Dinesh Kumar Goyal at REconnect Jaipur
Rajasthan’s renewable energy success story is impressive, but sustaining its leadership will require agility, innovation, and policy support, said Dr. Dinesh Kumar Goyal, IAS (Retd.), Executive Director, H.G. Infra Engineering Ltd., during his keynote address at the REconnect Summit-25 in Jaipur.
May 31, 2025. By Mrinmoy Dey
Goyal was addressing the gathering during his keynote address at the REconnect Summit-25, Jaipur, organised by Energetica India magazine, at the Clarks Amer Hotel in Jaipur, Rajasthan.
Providing an overview of the current landscape, Goyal emphasised the transformational role renewable energy has played in Rajasthan’s development. “Clean energy has not only improved the environment but is now reaching even the smallest of consumers – be it a farmer or a modest household,” he noted. Citing the government’s ambitious rooftop solar initiative aimed at benefitting one crore households, he highlighted the increasing accessibility and affordability of solar energy.
Rajasthan’s progress has also translated into employment gains. “Jobs are being created across the sector, and schemes like PM-KUSUM have empowered farmers significantly,” Goyal said. “However, while we’ve achieved a lot, we must not become complacent. Other states like Gujarat, Maharashtra, and those in the South are catching up, and the central government is also focusing on the Northeast’s solar potential,” he added.
Goyal lauded the widespread adoption of rooftop solar and the strides made in agricultural solarisation through support from the Rajasthan Renewable Energy Corporation Ltd. (RRECL) and the Ministry of New and Renewable Energy (MNRE). At the same time, he acknowledged that policy clarity and consistency remain critical. “While I won’t go into the DCR vs non-DCR debate, it’s clear that the Government of India now mandates Domestic Content Requirement (DCR), and the sector must align accordingly,” he said.
Addressing the evolving technological landscape, Goyal underscored the shift towards integrated energy systems. “Standalone solar or wind projects are no longer enough. Utilities now expect developers to combine battery energy storage systems with generation assets. States like Gujarat and Maharashtra have already started tendering for such integrated solutions,” he said.
On the policy front, while Rajasthan has made progress in regulatory frameworks, Goyal called for further simplification. Financing remains another challenge, especially for small developers. “There are still concerns around payment guarantees under long-term PPAs. In the early days, tariffs were as high as INR 15/kWh. Today, due to intense competition and technological improvements, rates have dropped significantly – even as low as INR 2.70 or less. However, developers must assess financial viability carefully. Unsustainably low tariffs could prove suicidal,” he warned.
He highlighted persistent financing barriers under schemes like PM-KUSUM, where farmers in rural areas face difficulties securing loans due to conservative lending practices. However, he added, “We’ve made progress with banks in treating these projects as bankable assets, but challenges remain.”
Goyal also flagged bottlenecks in the domestic manufacturing of solar panels. “The current manufacturing capacity doesn’t meet demand. Developers are experiencing delays, and quality sometimes suffers as a result.” Additionally, delays in subsidy disbursements by some states further strain project viability, particularly in light of the weak financial health of state utilities.
He concluded with a call for urgent attention to maintenance and quality issues across the sector. “These issues demand a collective response from developers, government bodies, and financial institutions,” he said.
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