Solar Energy – Targeting 100 GW: A situation of Quagmire


Table of Contents

Current scenario of the Sector

India is one of the largest electricity producers and consumers with a total installed capacity of 367,28 GW and a per capita consumption of 1,181 kWh (appx.) but still grappling with a high technological and commercial aggregate (AT&C) loss of 19,01%. The Indian power sector is badly hit by Covid-19 amid all of the operational inefficiencies of many Discoms and financial crisis.

Financial burden on Distribution Sector

Utilities’ financial losses stood at Rs 28,369 crore at the end of FY19[1], up by 88.6% year-on-year. Utilities had shown remarkable improvement, UDAY-tied Utilities’ financial losses dropped from nearly Rs 51,500 crore at FY16 end to a little over Rs 15,000 crore by FY18. Most of state-run Utilities has been going through financial burden, the total Outstanding debt of Utilities has increased from about Rs. 2.4 lakh crore in 2011-12 to about ₹ 4.3 lakh crore in 2014-15.

Citing the financial crisis of Indian , Ministry of power launched UDAY Scheme with intent of financial restructuring and to enhance the operational efficiency .states shall  take over 75 per cent of Discom’s debt under UDAY, it may reduce the interest rates from 14-15% to around 8-9 per cent, thus improving overall efficiency. Despite all the measures taken due to operational inefficiencies , overall debt has again grown up in range of 2.5 lakh crores in last five years, with overdue to Gencos has grown to 1.2 Lakh crores

Data collected from ministry of power and RBI

Solar Power Generation

Ministry of power has set a target of 100GW of solar power generation by year 2022. In last five-year country has added about 29000 MP of solar power. Five states contribute about 68% of total installed capacity. The year-on-year growth rate of annual solar installed capacity is expected to reduce to over one per cent in 2018, from 63 per cent in 2017, and expected to rebound to over 12 per cent in 2019. it expected that country might miss the target 100 GW. In current scenario, Five states contribute to appx. 68% of total solar generation (ref: Table 1). Remaining 23 states and 9 union territories contributes only 32%. Other states participation is quite less baring (Gujarat-8.3%, Madhya Pradesh-6.5%, Maharashtra- 5.24%) contribution towards total generation is less than 5%.


The gap ACS and ARR has reduced by 0.24 Rs in last five year. In last FY ACS-ARR gap has increased by 0.11 Rs.

Per Capita ConsumptionSolar Energy

Per capita consumption is growing at an average of 2% annually. India’s per capita consumption is approximately one-third of the world average (3110 KWh) and Fourteen times lesser than Canada (148844 KWh).

Data References

(As on 31.01.2020 by CEA)

As per UDAY-March 2020).

Source~ [1]

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