Fostering growth and sustainable development in Indian solar sector

The ambitious goal of installing 100 GW solar energy capacity is achievable considering the country’s estimated solar potential of 750 GW, says a study by India Exim Bank.

The study undertaken by the India Exim Bank’s research team analyses recent trends in India’s solar industry including exports over the years. The study dwells upon the existing support mechanism of the solar industry in the country which has evolved significantly during the last decade, besides highlighting key promotional policies and support programmes in select developed and developing economies, which could provide key policy inputs for India.

The study was launched at a webinar organised by the bank on “Indian Solar Sector: Fostering Growth and Sustainable Development” on January 19, 2021. 

Welcoming the delegates, Harsha Bangari, Managing Director, India Exim Bank, stated that the recently launched PLI scheme for the sector has been receiving an impressive response instilling fresh hope to the policymakers as well as the solar players in the country. While delivering the special address, Gauri Singh, Deputy Director-General, IRENA, stressed upon the significance of solar energy in the Indian scenario and the role it can play in achieving India’s COP26 renewable energy targets. 

A round table discussion on the topic was moderated by N Ramesh, Deputy Managing Director, India Exim Bank, with the participation of experts from prestigious institutions such as International Solar Alliance (ISA), Indian Renewable Energy Development Agency (IREDA), ADB, NDB, among others. 

The study assumes importance given the recently concluded COP26. India, as well as many developing countries are vulnerable to climate change, and are taking several mitigation actions. To follow a sustainable path to development, India envisions a ‘One Sun, One World, One Grid’ that would have a worldwide solar power grid that can ensure clean energy everywhere, every time.

The paper also analyses the global finance trends to the solar energy in the recent past and the importance being given by the global financial institutions and multilateral development banks to the solar sector. 

To upscale the solar energy in India, the study by India Exim Bank suggests a host of strategies such as increasing the access to finance, promoting floating solar power, addressing the land issues, integrating solar power with electric vehicles, RPO compliance, among others.