India to Become a Global Manufacturing Center for Renewable Energy

The acceptance of alternative renewable resources has increased with the growing age. Rising awareness and concerns regarding environmental pollution are the primary factors responsible for the massive shift from non-renewable energy sources. Solar energy sources have a higher acceptance rate than other renewable sources, thus coming up asa practical renewable approach to increasing greenhouse gas emissions and global warming issues. Solar thermal energy, being a cost-effective and efficient system for heat generation, has wider acceptance for industrial and domestic uses.

The demand for solar panel systems in the market is growing, intending to adopt a sustainable lifestyle. Favorable government policies along with increased electricity tariffs are driving the solar energy market growth. According to Allied Market Research, the global solar energy market is expected to grow at a significant CAGR from 2019 to 2026. Many Asia Pacific countries are taking initiatives and have various policies to promote solar energy. Consequently Asia pacific solar energy panel market is rising considerably in the region, thus resulting in demand for high production of solar panels. Some of the Asia-Pacific countries that dominate the renewable energy market are China, Australia, and India.

According to the Indian Ministry of New and Renewable Energy (MNRE), India has installed a total capacity of 150 gigawatts renewable energy. This figure also includes the data of hydropower projects. The government aims to reach a renewable energy capacity of 175 gigawatts by 2022. It will comprise 100 GW of solar projects, and the rest will be wind, hydro, and biomass-based power projects. At first glance, such a large-scale endeavor may appear unattainable. However, this goal will provide numerous opportunities for the market players and further intensify the market competition. India has a lot of potential for the solar energy business due to its geographical location and topography. As a result, the country has a competitive advantage over its competitors.

The Bhadla solar park in Rajasthan, India, is the largest solar power plant in the world, with a capacity of 2,245 megawatts. India is already the leading global market in solar-generated energy development and production. The country also plans to develop a solar model using cutting-edge technologies for future expansion and growth. During Covid-19 pandemic, the Indian government highly supported India’s insolation business and assisted the sector with numerous government initiatives. The government initiatives like eliminating tariff caps for solar tenders, decreasing the repo rate, declaring solar plant O&M a critical service, and implementing the PLI program helped the growth of solar energy markets.

Managing large-scale solar plants can be challenging for India since it needs various electrical components. Currently, India imports maximum electrical components from neighboring countries, and this can be a stumbling block for India. The outbreak of COVID-19, however, has badly impacted the transportation sector, and the rising prices of raw materials can be a concern for India. Despite the constraints and challenges, this country is now considering how digital technologies could help them harness more of the sun's energy. India has suitable circumstances to tap into its resources, bring in cutting-edge technology, and take advantage of its geological advantage. It will be worth watching how India attains its energy objectives and pursue to lead the market.

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