India’s solar power production grows at slowest rate in six years in first half of 2024

India’s solar power generation grew at its slowest pace in six years in the first half of 2024, government data showed, as the country further increased its reliance on coal to meet rising energy demand, Reuters reported. Coal-fired electricity rose 10.4% in the six months ended June 30, a review of daily load-dispatch data from Grid-India showed, outpacing the overall 9.7% increase in power generation in the period.

Solar energy production rose to 63.6 billion kilowatt-hours (kWh) in the first half of 2024, up 14.7% from the same period last year and 18.5% in calendar year 2023.

The report added that India has prioritized coal to meet a surge in energy demand in recent years. Last year, electricity generation from coal outpaced renewables for the first time since the 2015 Paris Agreement. India’s fuel consumption patterns largely mirror those in the region, with Indonesia, the Philippines, Vietnam and Bangladesh all burning coal to generate cheap power.

The share of fossil fuels in electricity generation rose to 77.1% in the first half of 2024, up from 76.6% in the same period last year, putting it on track to grow for a fourth consecutive year, the report said.

Shortage of made-in-India solar modules hits projects and installers using used modules

The shortage of domestic solar modules has adversely affected solar projects. “In some cases, due to the shortage, installers are even resorting to using used solar modules,” Mercom reported. Domestic modules are expensive, so many installers are using used modules, branding them with new warranties. These used modules are refurbished by manufacturers and are available at much lower prices, the outlet reported, citing a West Bengal-based solar company.

These practices are not only unethical but also risk compromising the project’s long-term health, the report said. “Imported solar modules are selling for ₹13.50 (~$0.16) to ₹14.50 (~$0.17) per watt, compared to domestically-made modules priced at around ₹23 (~$0.27) per watt. The price disparity is exacerbated by the shortage of DCR cells, which currently stand at around 3 GW per annum, which is insufficient to meet the growing demand.

Government expands ALMM by adding 2.67 GW of solar module capacity

The center expanded the Approved List of Models and Manufacturers (ALMM), adding 2,674 MW of new solar module capacity. The total module production capacity under the ALMM now stands at 50,675 MW (50.6 GW), Mercom said.

Companies with registered capacity above 1 GW each are Waaree Energies, Adani Solar, ReNew FS India Solar Ventures, Tata Power Solar, Goldi Solar, Premier Energies, Vikram Solar, Rayzon Solar, Emmvee Photovoltaic Power, Grew Energy and RenewSys India. They contribute 37,682 MW or 78.5% of the total cumulative module capacity under ALMM.

The largest module capacity listed in the ALMM is 685 Wp. The government reintroduced the ALMM order on April 1, 2024, after a one-year suspension. Only modules from the ALMM can be used in projects that receive government subsidies.

‘Solar Excess Capacity’: China Issues Stricter Draft Solar Photovoltaic Investment Rules

To address overcapacity in the solar sector, China has issued draft regulations to tighten investment rules for solar manufacturing projects. If implemented, the new standards would increase the minimum capital ratio for such projects from 20% to 30% as the country seeks to reduce overcapacity in the sector, Reuters reported.

According to news website BJX News (translated and reported by Carbon Brief), the new regulations will require solar manufacturers in China to “limit projects that only serve to expand production capacity and instead focus on strengthening technological innovation, improving product quality and reducing production costs.”

In May, China’s solar power utilization rate reached 97.5%, while wind power was at 94.8%. Meanwhile, China’s research body, which operates under the National Energy Administration (NEA), says the expansion of solar and wind power in China means the country will “achieve its 2030 renewable energy targets” by the end of 2024, “six years ahead of schedule.”

Kerala receives investment proposals worth over ₹72,000 cr to set up green hydrogen and ammonia plants

Four major companies have proposed to invest ₹72,760 crore in state subsidies under the draft state green hydrogen policy for setting up green hydrogen and green ammonia plants in the state, ET reported.

The companies plan to export green ammonia, aiming for export-led growth, the report said, adding that the capital expenditure subsidy for these four companies will be around ₹275 crore for each project. The outlet reported that Kerala plans to grant 100% exemption from electricity tax for 25 years to these companies. One of these four companies has proposed two separate investment amounts of ₹22,062 crore and ₹4,511 crore. The draft of Kerala’s green hydrogen policy has been approved and is pending approval from the Cabinet.

India aims to achieve green hydrogen production capacity of 5 MTPA by 2030 and promote export of green hydrogen and its derivatives under the National Green Hydrogen Mission.

Global target of tripling renewable energy by 2030 still out of reach, says IRENA

Renewable energy needs to expand faster and more widely, but it is not being deployed fast enough for the world to meet the international target of tripling the share of renewable energy by 2030, according to data released by the International Renewable Energy Agency (IRENA).

At the COP28 climate summit in Dubai in 2023, nearly 200 countries pledged to triple global renewable energy capacity – measured as the maximum generating capacity of sources such as wind, solar and hydro – by 2030, with the aim of limiting global warming to 1.5°C, Climate Home News reported, adding that new data showed renewables were the fastest-growing energy source in the world, with new global renewable capacity in 2023 representing a record 14% increase compared to 2022.

However, IRENA’s analysis found that even if renewables continue to be deployed at the current rate for the next seven years, the world will fall 13.5% short of its target of tripling renewables to 11.2 terawatts. IRENA said a higher annual growth rate of at least 16.4% is required to achieve the 2030 target.

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