Page 5 - AsiaElec Week 04 2023

AsiaElec COMMENTARY AsiaElec

on domestic suppliers to produce all required joint photovoltaic and wind projects.
components to enable developers to keep add- Higher renewable energy purchase obliga-
ing to the solar capacity the country needs, tions were also an important addition to the mix
even with the number of firms authorised to in mid-2022.
manufacture PV components still limited; In time, this should in turn see larger-scale
one source indicates a capacity limit of 18 GW purchases made by energy distribution com-
nationwide. panies (discoms) from across the renewables
Government investment has increased, industry sectors, but only if the overall finan-
though, with a final goal of expanding solar cell cial integrity of the discoms improve.
and module production capacity to more than
70 GW by 2030. Confidence issues
But until supply and demand numbers Overdue payments to energy producers passed
start syncing, the much-needed large-scale PV the $3bn mark in June of last year; a figure up
platforms that will significantly boost overall over 50% since early 2021.
renewables capacity will remain out of reach. This in turn leads to a lack of confidence in
For now, however, India’s official goal of “Net those producing energy to sign deals with cer-
Zero Emissions by 2070” and shorter-term tar- tain discoms, and in turn limits the number of
gets in the same government missive of “increas- commissions being signed.
ing renewables capacity to 500 GW by 2030”, and As such, even with the sincerest of intent,
“Meeting 50% of energy requirements from renew- without aligning the supply needs of power
ables” remain some way off, despite best intentions. producers in the field, with financially respon-
On a more positive note, over 25% of all of sible discoms, any further promises of renew-
renewables projects since 2021 have now taken ables capacity by a given date released by New
the form of hybrid auctions, itself an increasingly Delhi will be based on shaky foundations at
popular option in more remote areas hosting best. ™

Week 04 26 •January•2023 www. NEWSBASE .com P5