Solar PV module manufacturing projects of 48.3 GW capacity okayed under Centre�s PLI scheme

New Delhi, Dec 23 (IANS) The central government has given the go-ahead to big GW scale projects for setting up around 48.3 GW of integrated high efficiency Solar PV module manufacturing capacity in the country under its Production Linked Incentive (PLI) Scheme as part of the big push to green energy, according to Minister of Power and Renewable Energy R.K. Singh.

Demand for India-made solar PV modules is expected to get a fillip with the Central Public Sector Undertaking (CPSU) Scheme Phase-II for setting up 12,000 MW grid-connected Solar Photovoltaic (PV) Power Projects by Government Producers, using domestically manufactured solar PV cells and modules.

The government is providing Viability Gap Funding (VGF) support in these projects for self-use or use by government entities, either directly or through Distribution Companies (DISCOMS), the minister informed Parliament on Friday.

The scheme for Development of Solar Parks and Ultra-mega Solar Power Projects with a target of setting up 40,000 MW capacity is also making headway in helping the country achieve its renewable energy targets.

Under the scheme, the infrastructure such as land, roads, power evacuation system water facilities are developed with all statutory approvals which is helping expeditious development of utility-scale solar projects in the country.

Battery energy storage systems, which have a crucial role to play in the switch to renewable energy, have been lagging behind worldwide.

The minister informed Parliament that the government has approved the scheme for Viability Gap Funding (VGF) for the development of Battery Energy Storage Systems (BESS) with capacity of 4,000 megawatts hours (MWh).

Under the scheme, VGF to the extent of up to 40 per cent of capital cost for BESS shall be provided by the central government. Public and private sector entities shall be selected through the bidding process to be conducted by the Implementing Agency(ies) as per the provisions of the Scheme and Bidding Guidelines for the development of BESS.

The projects under the scheme will be approved during a period of three years (2023-24 to 2025-26) and for passing on the scheme to consumers of the Discoms, at least 85 per cent of the power from VGF-funded BESS projects will be first offered to Discoms before making it available for others. The selection of developers under the VGF scheme has not commenced yet.

The minister also informed that solar capacity of around 72.31 GW has been installed in the country as on November 30. This includes 58.53 GW from ground-mounted solar projects, 11.08 GW from Rooftop solar capacity, and 2.70 GW from off-grid solar capacity in the country, which includes 11.12 million solar lights.

Solar thermal collector area of around 11 million square meters was installed till 2016-17 and since then it has been implemented in market mode without any financial support from Government.