NAVIGATING SOLAR CHALLENGES

Vimal Kejriwal, MD & CEO, KEC International Limited, gives insights on solar energy trends and opportunities

What are the prevailing trends in solar energy segment? How do government policies support the segment?

From FY18 to FY24, India has witnessed remarkable capacity growth, with solar installations increasing from 22 GW to 90 GW, now accounting for 45% of the total renewable energy capacity of 200 GW. This growth is complemented by a significant decline in the costs of solar PV technology, making both utility-scale and decentralized solutions like rooftop and microgrid systems more accessible. Solar is not a 'good to have' source of energy anymore. Market now demands reduced base load intermittency and increased quality of power. Hybrid and storage solutions are becoming increasingly essential to address the intermittent nature of renewable energy. RTC (Round-the-Clock) and FDRE (Flexible Dispatchable Renewable Energy) tenders are emerging as key solutions to this intermittency, with FDRE likely to replace standalone renewable energy tenders soon. The push for green hydrogen is another major trend, driving new solar installations as it aligns with India's decarbonization goals. The production of green hydrogen relies heavily on renewable energy sources, particularly solar and wind, further boosting solar capacity.