During COP26 summit at Glasgow, India has laid out the targets for no fossil fuel capacity addition to 500 GW and 50% of the country’s energy requirements to be met using renewable energy sources by 2030. India has also stated the intent of attaining net zero carbon emission by 2070.
Region wise Solar Capacities: –
In total solar capacities southern region is leading in Andhra Pradesh, Karnataka, Tamil Nadu and Telangana have displayed strong capacity additions. Share of capacity in the southern region as compared to all-India installed solar capacity.
Western Region led by Rajasthan is catching up
The pace of capacity addition in the southern region has gradually declined over the years with the western region catching up. E.g.
- In FY 2018 total 9.36 GW solar energy added in India out of which 69% added in Southern and 22% got added in Western region
- In FY 2021 by September 2021 11.65 GW total Solar energy got added in India. Out of which only 20% was added in southern region rest 61% capacity being added in the western region
Major reason for this transition is waiver of (ISTS) Interstate State Transmission System charges and losses. Such waiver was applicable for 25 years from the date of commercial operations and was available to project awarded through competitive bidding.
Another reason for decline in capacity additions in the southern region is the tariff dispute in Andhra Pradesh as well as delay in payment by Telangana and Tamil Nadu discoms, which has badly affected the investors’ sentiment affecting solar installation during the last couple of years in the southern region.