While countries around the world are preparing plans for recovery of economic growth post COVID-19 Pandemic, debate have started to choose the correct economic growth model.The Old Quantitative Economic Growth Model dependent on fossil fuels for energy or The New Qualitative Economic Growth Model dependent on renewable energy. Major countries of the world have shown clear shift from old economic growth model to new economic growth model.
India has shown real commitment to use clean green renewable energy for economic growth. India has set itself a target of 175 GW renewable energy capacity by 2022 including 100 GW of solar and 60 GW of wind power capacity. But solar energy generation and solar equipment manufacturing sector have not received the due importance in Atmanirbhar Bharat Abhiyan. India has a large potential for generation of solar power. It is a tropical countries with three hundred clear sunny days in an year. Development of solar power sector can help India in achieving selfreliance in following ways
1. Employment generation
2. Rural development
3. Reduction in fuel import bills
4. Reduction in dependency on oil producing countries
5. Faster installation of power generation units
6. Clean environment and enhanced quality of life
Solar power sector can provides employment to all kind of labours (skilled, semi-skilled and unskilled) in various activities like Manufacturing of Solar Equipments Development of Solar Power Plant Installation and maintenance of Roof Top Solar Panels. Demand of Installation of roof-top solar panels will create entrepreneurship and jobs in rural India in solar power sector. Availability of power will promote cottage and small industries in rural India It will also bridge the income disparity between rural India and urban India.
India is among fastest growing economies but depends heavily on imports of energy. This places Indian strategic interests at risk and dampens sustained growth rate by decreasing dependency in fuel of oil .Non-conventional energy sources are the keys.
A 500 MW capacity solar plant can be constructed within 18 months while a similar thermal or hydel plant might take 2-3 times more. Costs of construction and financing for a new solar plant is 14% less that of thermal or hydel plant. Despite the ambitious target of solar power generation, India has an annual solar cell manufacturing capacity of about 3 GW while the average annual demand is 20GW. Seven of India’s top 10 module suppliers are Chinese firms. In the past five years, India has already imported $16 billion worth of solar equipments. Unless indigenous capacity is ramped up, India may import an additional $42 billion of solar equipment by 2030.
Solar equipment manufacturing occurs in four phases -
1. Semiconductor Ingot production
2. Semiconductor wafer production from ingot
3. Photovoltaic cell manufacturing from semiconductor wafer
4. Solar panel manufacturing by assembling photovoltaic cells
India is among fastest growing economies but depends heavily on imports of energy. This places Indian strategic interests at risk and dampens sustained growth rate by decreasing dependency in fuel of oil .Non-conventional energy sources are the keys.
A 500 MW capacity solar plant can be constructed within 18 months while a similar thermal or hydel plant might take 2-3 times more. Costs of construction and financing for a new solar plant is 14% less that of thermal or hydel plant. Despite the ambitious target of solar power generation, India has an annual solar cell manufacturing capacity of about 3 GW while the average annual demand is 20GW. Seven of India’s top 10 module suppliers are Chinese firms. In the past five years, India has already imported $16 billion worth of solar equipments. Unless indigenous capacity is ramped up, India may import an additional $42 billion of solar equipment by 2030.
Solar equipment manufacturing occurs in four phases -
1. Semiconductor Ingot production
2. Semiconductor wafer production from ingot
3. Photovoltaic cell manufacturing from semiconductor wafer
4. Solar panel manufacturing by assembling photovoltaic cells
To achieve self sufficiency in manufacturing of solar equipment, India needs a new solar sector development policy with focus on following three issues. Development of core competency in semiconductor manufacturing. Government policy to subsidize solar manufacturing sector. Reduced cost of capital/cheap loans.
In formation and wafer production fall in semiconductor manufacturing industry Indian companies had no learning background in semiconductors when the solar industry in India began to grow from 2011. State governments need to support semiconductor production as part of a determined industrial policy to develop this capacity for the future. Experts suggest that the human and technical learning curve could be five to 10 year. In dedicated policy for development of solar sector government should provide subsidies in following activities - Land Acquisition Raw Material Procurement Labour Laws Tax Exports. The cost of debt in India (11%) is highest in the Asia-Pacific region, while in China it is about 5%.
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