After banning Chinese apps, PM Modi is now planning to promote Domestic industry engaged in manufacturing of Solar Cells, batteries and other hardwares related to Solar Industry

Inaugurating India's first Ultra Mega Power Solar Plant, Prime Minister Narendra Modi said India is now focusing on reducing its dependence on imports of  hardware needed for solar power plants, mainly Photovoltaic Cells, Battery and other energy storage equipment.

While he did not directly mention China in his address, his mention of cutting Solar Hardware import bill was apparently hinting at China, which is the major supplier of PV cells, lithium-ion batteries, and other auxiliary solar items.  He said India has emerged as a very attractive market for the Solar Industry, which has targeted to produce 175 Gega Watt renewable energy by 2022. 

Modi said the Indian government is already encouraging domestic industrialists to take advantage of the growing Solar Industry in India and at the same time make India self-reliant in solar energy.

He further urged young entrepreneurs, startups and industrialists from MSMEs not to miss the opportunity and work for production and betterment of all the inputs required for Solar Energy. the Prime Minister said India wants the entire world to take advantage of the Solar Energy. 

The International Solar Alliance is working in this direction aiming at “one world, One Sun and One Grid”. The idea is to provide better quality solar energy to the entire world mainly underdeveloped nations at an affordable price. “Our farmers would now also grow power to meet their requirement and to export it as well, he added.

“Solar energy is going to be a major medium of energy needs not only today but in the 21st century.

Because solar energy is sure, pure and secure,” the Prime Minister said.  Sure because of the continuous supply of Energy from the Sun, Pure as it is environment friendly and Secure because it is a secure source for our energy needs, Modi said.

He said in all the programs of his the government, priority is being given to environmental protection as well as Ease of Living. India has focused on solar energy and other environment-friendly measures so as Economy and Ecology become complementary to each other.  The 750 MegaWatt Solar Power plant in Rewa , which he inaugurated on Friday, has emerged as a game-changer in Solar Power. When started, the project offered solar energy cheaper than coal power plants.

Rewa Solar power plant is the first solar power plant, which broke the grid parity barrier. Against the prevailing solar project tariffs of about Rs 4.50 a unit in early 2017, it had offered a tariff of Rs. 2.97 a unit for the first year with a tariff escalation of five paise over 15 years and a levelized rate of Rs. 3.30/unit over the term of 25 years

The project, set up in Rewa in Madhya Pradesh, spread in over 15 square Kilometer has been acknowledged in India and abroad for its robust project structuring and innovations claimed a senior officer of the Ministry of New and Renewable Energy (MNRE). Further, its payment security mechanism for reducing risks to power developers has been recommended as a model to other States by MNRE.

Its business model was even appreciated by the World Bank and it received World Bank Group President’s Award for innovation and excellence. Besides, the project is also the first renewable energy project to supply to an institutional customer outside the State. Its first customer was Delhi Metro, which would take 24% of energy from the project and with this DMRC is expected to save Rs 41 crore annually. The remaining 76% of the power would be supplied to the State DISCOMs of Madhya Pradesh—probably at the cheapest rate of that time.

Besides giving power at a very economical cost, this project would also reduce carbon emission equivalent to approximately 15 lakh ton of CO₂ per year, the MNRE claimed. It is also the first Solar project to get funding from the World Bank and also from Clean Technology Fund in India.

The bidding process of the Project started in January 2017 and in just three years the entire project was commissioned. In 2017 it was considered near impossible to commission a 750 Mwatt Solar Power Plant in mere three years before Rewa Ultra Mega Solar Limited (RUMSL)- a joint venture company of a Madhya Pradesh government-owned PSU (MPUVN) and a Centre PSU (Public Sector Undertaking)--SECI (Solar Energy Corporation of India)—company.

The Union government had offered central financial assistance of Rs. 138 crore to RUMSL for development of the Park. After the Park had been developed, Mahindra Renewables Private Ltd., ACME Jaipur Solar Power Private Ltd., and Arinsun Clean Energy Private Ltd were selected by RUMSL through a reverse auction for developing three solar generating units of 250 MW each inside the Solar Park.  Rewa Solar Project is an example of the excellent results that can be achieved if there is a synergy between Central and State Governments, the Ministry claimed. 

BY Vijay Thakur, Special Representative, The Statesman, vijaythakurx@gmail.com