PM Modi makes case for each state to have at least one ‘solar city’

NEW DELHI: Prime Minister Narendra Modi on Wednesday called for each state to have at least one ‘solar city’ whose electricity needs would be met entirely through rooftop solar power.

The call came in the course of a review of the work of the ministries of power and new and renewable energy, a government statement said.

“He (PM) also emphasized on an innovative model for rooftop solar and desired that each state should have at least one city (either a capital city or any renowned tourist destination)” that will be a “fully solar city through rooftop solar power generation”, the statement said.

The move could add heft to India’s image as a global clean energy champion, as the review also focused on creating an ecosystem in India for manufacturing of ingots, wafers, cells and modules.

This ties in efforts by India to become an integral part of the global supply chains, as firms look to move production lines out of China due to the disruptions caused by the coronavirus pandemic.

“Emphasis was also made on ecosystem development for manufacturing of ingots, wafers, cells and modules in India, which would also help generate employment, in addition to various other advantages,” the statement said.

India is home to the world’s largest clean energy programme, which aims to have 175GW of clean energy capacity by 2022, including 100GW from solar projects. The current capacity is 33GW of solar power.

India is also ushering in next-generation power sector reforms that include implementing a direct benefit transfer (DBT) scheme for better targeting of subsidies and a new tariff policy, which proposes a cost-reflective tariff, penalty on unjustified power cuts and limiting cross-subsidies.

A cost reflective tariff structure is aimed at helping electricity distribution companies, or discoms, realize the actual cost of power generation.

“Policy initiatives including revised Tariff Policy and the Electricity (Amendment) Bill 2020, to redress the problems afflicting the power sector were discussed,” the statement said.

Reflecting its intention to use the coronavirus crisis to initiate power sector reforms, the government has readied a raft of measures. In the draft Electricity Act (Amendment) Bill, 2020, the government has pitched for a cost-reflective tariff and setting up an Electricity Contract Enforcement Authority to implement power purchase agreements (PPAs). Mint reported on 18 February about the Union government’s plans to set up a new tribunal solely to enforce PPAs.

“PM emphasized the need to enhance consumer satisfaction while increasing operational efficiency, and improving financial sustainability of the power sector,” the statement added.