To tap India’s clean energy potential, a to-do list, Pg11

Key Highlights:

• India's domestic solar module capacity nearly doubled in 2024, driven by the PLI scheme, challenging reliance on Chinese imports.
• Despite increased domestic production, India imported 66 GW of modules and cells in 2024, with limited upstream integration in polysilicon and wafer production.
• Clean energy attracted $14 billion in foreign investment in the first nine months of FY2025, representing over 80% of power sector inflows.
• Approximately 60 GW of renewable projects are hindered by inadequate transmission infrastructure and curtailment issues.
• The National Green Hydrogen Mission aims for 5 million metric tonnes of green hydrogen annually by 2030, but faces economic and infrastructural challenges.

Detailed Insights:

• The PLI scheme has incentivized domestic solar manufacturing, signaling India's ambition to become a global technology hub in renewable energy.
• Limited upstream integration in polysilicon and wafer production poses a risk of shifting import dependence rather than eliminating it.
• Competitive auctions have driven renewable power tariffs to record lows, making it one of the cheapest electricity sources in India.
• Financial stress points, such as DISCOMs' unpaid dues and contract renegotiation attempts, undermine investor confidence in the renewable sector.
• Curtailment issues and inadequate transmission infrastructure increase renewable financing costs in India, making them 80% higher than in advanced economies.
• The high production costs of green hydrogen, currently at $4.1-$5.0 per kg, necessitate subsidies, carbon pricing, or regulatory mandates for commercial viability.
• Developing storage, transport, and end-use infrastructure for green hydrogen requires substantial investment, potentially exceeding production costs.
• Protecting contractual sanctity and expanding transmission networks are crucial for the power sector's growth and stability.
• Realistic timelines and demand creation are essential for the success of the National Green Hydrogen Mission.

Key Concepts Involved:

• PLI Scheme: A government initiative to boost domestic manufacturing by providing financial incentives.
• DISCOMs: Distribution companies responsible for supplying electricity to consumers.
• Curtailment: Reduction of renewable energy output by grid operators due to transmission or stability issues.
• Green Hydrogen: Hydrogen produced through electrolysis using renewable energy sources.