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Though still in the draft stages, a new Indian energy policy is setting the goal of 20GW of solar power by 2020 to help the subcontinent close the gap between itself and countries like China, according to Reuters.
The 30-year plan is estimated to cost about US$9 billion but would give India more clout in the climate talks in December that follow up on the first phase of the Kyoto Protocol. There is no definite date for the plan's release, though most sources expect a time in September. An official commented that "the draft should not change much and the target of 20GW will be there."
The plan, entitled the National Solar Mission, aims to "ensure large-scale deployment of solar generated power for both grid connected as well as distributed and decentralized off-grid provision of commercial energy services." Money would be spent on incentives for production and installation as well as research and development, and the plan offers financial incentives and tax holidays for utilities. If implemented, the three-phase plan would start off phase one with 1-1.5GW of solar power by 2012. The move could unlock India's huge renewables potential and benefit domestic companies, as was the case when China introduced subsidies.
The National Solar Mission would prevent 42 million tons of carbon dioxide emissions and provide solar-powered lighting for 3 million households by 2012. Solar-powered equipment and applications would be mandatory for hospitals, hotels and government buildings, while states would be required to buy a portion of energy generated from renewable sources and encourage use of solar lighting systems in villages and small towns with micro financing. The plan also outlines a system of paying households for any surplus power from solar panels fed back into the grid.
Many observers regard India's long-neglected power sector as the greatest infrastructure investment opportunity in a country where nearly 56% of the 1.1-billion plus population do not have access to electricity. In spite of its pledge to clean technology, coal remains the backbone of India's power sector--accounting for about 60% of generation--with the government planning to add 78.7GW of power generation during the five years ending March 2012. Of this, 15.1GW has been commissioned. In comparison, China's power generation capacity rose to 792.5GW in 2008, more than five times India's capacity.
Experts say the voluntary domestic action will add to India's bargaining power in international negotiations, although India's refusal to commit to any binding emission targets has angered many rich countries demanding greater commitment. "Such unilateral action will give India the moral high-ground because the rich countries have not committed to anything (in terms of finance and technology)," said Siddharth Pathak, Greenpeace India's chief climate campaigner.
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Does it mean that Solar Power would require an investment cost of only $450/kW?
The National Solar Mission Plan needs to be debated, keeping in view that, as the United States Congress battles over the costs, benefits and national renewable energy Standards etc, the Coal-Giant China announced a plan to get 15 percent of its energy capacity from renewable sources by 2020 and taking into account the environmental & social costs and all the overt and hidden subsidies / costs factored in for Nuclear Power. The contention that Solar Power is expensive and needs subsidy to an extent of Rs.82,000 crores over the next 30 years is nothing but a fallacy. It can be established by comparing the life-cycle costs of Fossil Thermal (Coal)vs Solar PV, taking into account financial, social & environmental costs of coal mining, coal transportation, disposal of fly ash, CO2 emissions etc., coal-based Thermal Power is more expensive than that of Solar PV, over the life cycle of 25 years. An economic calculation of different energy systems should include all costs and benefits, which are incurred for society by their production and use. Then only any comparison will be objective and meaningful.