Context: As per the Global Electricity Review 2024, India surpassed Japan to claim the title of the world's third-largest solar power generator in 2023 as it has climbed from 9th ranking in 2015. India generated 113 Billion Units (BU) of solar power in 2023 compared to Japan's 110 BU.

Global Electricity Review 2024

• It was published by global energy think tank

• The report offers a comprehensive examination of the global power landscape in 2023, drawing on data from individual countries.

• It has analysed the data from 80 nations that represent 92% of global electricity demand, along with historical data from 215 countries.

• It provides a realistic summary of how on track the electricity transition is for limiting global heating to 1.5 degrees.

Key highlights

• In 2023, India surpassed Japan to become the world’s third-largest producer of solar power, generating 113 billion units compared to Japan’s 110 billion units.

• Despite ranking fifth globally in installed power capacity at 73 gigawatts, India’s solar power output accounts for only 6.66% of its total electricity production.

• Fluctuations in power demand and local circumstances contribute to the gap between installed capacity and actual solar power production.

• India’s solar power surge was aided by a 2% decline in Japan’s power demand in 2023.

• China remains the world’s largest solar power producer, generating 584 billion units in 2023, surpassing the combined output of the United States, Japan, Germany, and India.

• Globally, renewable energy sources accounted for 30% of electricity production in 2023, with China leading the expansion in solar and wind power.

• The report forecasts fossil fuel generation to drop in 2024 and the trend to continue in other years.

• It suggests that 2023 might be the year when the fossil fuel production may have peaked globally.

Need for the Shift to Solar Energy

• Environmental Benefits: Solar energy is a renewable resource that produces minimal greenhouse gas emissions, reducing reliance on fossil fuels and mitigating climate change.

• Energy Security: Solar energy decreases dependence on imported fossil fuels, enhancing energy security and resilience to geopolitical disruptions.

• Cost Competitiveness: Advances in technology have significantly reduced the cost of solar energy production, making it increasingly competitive with conventional energy sources.

• Job Creation: The solar industry creates jobs in manufacturing, installation, maintenance, and research, contributing to economic growth and stability.

• Energy Access: Solar power offers a decentralized energy solution, expanding access to electricity in remote and underserved areas, improving livelihoods, and fostering socio-economic development.

Opportunities for Solar energy in India

Increasing demand

• The government’s ambitious target of 500 GW of installed capacity from non-fossil fuels by 2030 is the main driver to scale solar power in India.

• India also accounts for the fastest rate of growth for demand of electricity through 2026 among major economies.

• This is because of strong economic activity and expanding consumption of products to mitigate extreme weather.

• According to NITI Aayog, as of May 2024, solar power while making up ~18% of India’s total installed electricity of 442 GW, made up only 66% of the power actually produced.

• This data reflects the gap between potential and actuals as the power produced per year can vary due to fluctuations in a country’s power demand and local circumstances.

Estimated solar power potential

• The country has an estimated solar power potential of 748.99 GW.

• Hence, the potential of solar energy is not fully tapped, so far. The government is making efforts to harness the available potential through various schemes & programs.

Challenges Facing Solar Energy Adoption

• Intermittency: Solar energy generation is intermittent and dependent on weather conditions, necessitating efficient storage solutions and grid integration.

• Land Use: Large-scale solar installations require significant land area, raising concerns about land use conflicts and environmental impact.

• Storage Technology: Storage technologies like batteries need further development to store excess energy generated during peak sunlight hours for use during low-light periods.

• Policy and Regulatory Hurdles: Inconsistent policies, lack of supportive regulations, and inadequate incentives hinder solar energy deployment.

• Investment Barriers: Initial investment costs remain a barrier for some, despite decreasing solar panel prices, requiring innovative financing mechanisms and incentives.

Road Ahead for Solar Energy

• Technological Innovation: Continued research and development in solar technology to improve efficiency, storage capacity, and cost-effectiveness.

• Infrastructure Development: Expansion and modernization of electricity grids to accommodate distributed solar generation and improve reliability.

• Policy Support: Implementation of supportive policies, such as feed-in tariffs, net metering, tax incentives, and renewable energy targets, to encourage solar adoption.

• Public Awareness: Education and awareness campaigns to promote the benefits of solar energy and facilitate community participation in solar projects.

• International Collaboration: Collaboration between governments, businesses, and international organizations to share best practices, mobilize financing, and accelerate the global transition to solar energy.