Creating a supportive policy environment for renewable energy deployment in India is crucial for sustainable development and energy security.

As one of the fastest-growing economies with an increasing energy demand, India faces significant challenges related to climate change and fossil fuel dependency. By fostering a favorable policy framework, the government can attract investment, encourage technological innovation, and streamline regulatory processes, thus accelerating the transition to renewable energy sources.

The overarching issues relating to the policies vital for the Indian renewables sector were discussed during the session titled “Renewable Energy Project Development – Creating an Enabling Policy Environment that Supports Renewable Deployment” on the second day of the two-day Mercom India Renewables Summit 2024, held in New Delhi.

The session featured Deepesh Nanda, President – Renewables, Tata Power and MD & CEO, Tata Power Renewable Energy, RPV Prasad, Managing Director – India Region, Envision Energy, Deepak Ushadevi, MD & CEO, Ciel et Terre Solar, and Rahil Mehrotra, General Manager, JSW Steel.

Priya Sanjay, Managing Director, Mercom India, moderated the session.

Nanda noted that the problem of connectivity is acute. “For instance, we have a project that could be completed by March 31, 2025, but won’t be dispatched until March 31, 2026, due to connectivity issues.”

He said states like Rajasthan, Gujarat, and Karnataka have limited evacuation capacities, which is a major constraint. To solve this, he suggested accelerating the announced processes and rethinking the bidding pattern to utilize existing substation capacity and develop new connectivity.

Ushadevi stated that floating solar has been growing steadily. It offers solutions to land scarcity, especially in high-pollution areas with expanding solar installations. Innovations like zinc munition alloy coated steel for structures in high-pollution areas are crucial. “By manufacturing these materials locally, we’ve reduced dependency on imports and project delays, showcasing how floating solar can address land and pollution challenges, ” Ushadevi added.

Addressing the regulatory frameworks needed to support gigawatt-scale installations, Nanda noted that the government should reduce the time between the letter of award and the signing of the Power Purchase Agreement (PPA), which is crucial.

“Effective state-level regulation to enforce DISCOM obligations could help. Currently, 35 GW of PPAs are pending. Streamlining connectivity applications and preventing developers from holding connectivity for future projects could improve capacity addition. Collaboration among stakeholders and extending ISTS waivers could help meet ambitious targets,” Nanda said.

Prasad also said storage solutions present a viable alternative, especially in addressing land and connectivity issues. However, combining wind and solar in hybrid projects can optimize existing land and infrastructure. Balancing both approaches could maximize the benefits of renewable energy development.

Mehrotra emphasized the importance of customized mounting structure design for each project to ensure structural integrity against varying weather conditions. He highlighted the necessity of using BIS-compliant steel to prevent project jeopardy due to inferior quality materials. “While modules can be easily replaced if damaged, replacing trackers is costly, making it crucial to focus on durable and standardized components,” he said.

Mehrotra suggested that government policies should support using locally manufactured steel for module mounting structures to enhance project reliability.

The speakers also addressed the supply chain support, noting India’s significant module manufacturing capacity bolstered by government policies like PLI. They identified key challenges developers face: ensuring timely connectivity, executing projects on time, and addressing capital constraints.