Whitepaper on Risk Management & Mitigation Measures in Solar Power Plants

The ‘National Statement’ of India at the 26th Conference of Parties (COP26) presented a five-pronged strategy, Panchamrit, to combat climate change, with an emphasis on the accelerated use of renewable energy and the upgrading of Nationally Determined Contributions (NDC) under the Paris Agreement, 2015. The crux of the suggested formula for India’s commitment to climate action is a 2070 deadline for transforming into a Net-Zero nation. Here, the key to achieving the ambitious targets laid forth in these action plans is implicitly making the absolute most of Solar Energy, the most abundant of renewables. The greatest proven way to reap the benefits of solar energy is through deploying Utility-scale Solar energy projects, Solar Rooftop, and Distributed Renewable Energy (DRE) systems.

As of the 31st December, 2022, India has installed over 63 GW of solar power capacity (MNRE, 2022). In addition to the current installed capacity, estimates indicate a 50 GW of capacity addition which is in various stages of development. Apart from 100 GW Solar capacity addition by 2022, India also aims to have non-fossil fuel installed capacity of 500 GW in which solar power capacity will have major role to play (Press Information Bureau, 2021).

Accordingly, there has been a promising influx of investment into India’s renewable energy sector. In the most recent fiscal year (2021-22), investment in renewable energy in India hit a record $14.5 billion, a rise of 125% from FY 2020-21 and 72% from FY 2019-20, before the global pandemic hit. Since the NSM’s launch in 2016, India has garnered a total of approximately $128 Billion through the end of FY 2019 (World Economic Forum, 2022). The flow of capital into the sector is constant and is witnessing a rapid growth. However, achieving the stated goals and realizing Solar’s full potential depends on ensuring the projects’ financial viability.