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Rajasthan, the largest state in India, has recently unveiled the "Rajasthan Energy Policy 2050" draft, aiming to transition towards a sustainable and eco-friendly economy.
2030 Target: Rajasthan aims to install a total solar and wind power capacity of 90 GW.
One of the goals of this policy is for Rajasthan to achieve a cumulative capacity of 90 GW in solar and wind power installations by the year 2030. The rapid growth in renewable energy capacity is expected to create employment opportunities for around 110,000 people in Rajasthan, encompassing various skills required for business development, project design, construction, commissioning, and maintenance.
The state also plans to expand its rooftop solar development. Rajasthan has untapped potential in installing residential rooftop solar systems, with a potential of 5.5 GW. However, as of September 2022, only 835 MW of rooftop solar systems have been installed.
Additionally, Rajasthan is committed to achieving 100% compliance with the National Renewable Energy Purchase Obligation (RPO) targets and significantly reducing the technical and commercial losses of distribution companies (AT&C) to 12% to 15% by 2025-26, down from the concerning 26.23% in 2021.
2050 Vision: Rajasthan aims to increase the share of non-fossil fuel-based power generation to 70%.
Rajasthan's long-term goals include increasing the share of non-fossil fuel-based power generation from 20% in 2020 to 70%.
Simultaneously, the state aims to reduce distribution sector AT&C losses to below 10%, a significant improvement from 26.23% in 2021.
(1) Green Hydrogen
One of the most noteworthy aspects of this policy is Rajasthan's explicit focus on green hydrogen production, a key resource for decarbonizing various sectors. Rajasthan currently consumes approximately 250,000 tons of hydrogen. The state government has committed to invest ₹40,000 crores (approximately $5.4 billion USD) in green hydrogen production. This investment will facilitate the creation of 5 GW of green hydrogen capacity, primarily generated using photovoltaic systems and advanced electrolysis technology.
To drive this transition, the state plans to formulate a comprehensive "Green Hydrogen Policy."
(2) Progress Roadmap
The policy outlines two broad economic goals and 14 specific sectoral goals to be achieved by 2050.
• Reduce fossil energy intensity of the state's economy by 60% compared to 2020 levels.
• Reduce total carbon emissions by 700 million tons from 2020 to 2050.
While Rajasthan holds immense potential for an energy transition, it also faces several challenges. The state must actively expand its renewable energy deployment beyond the current target of 37.5 GW by 2025 to meet the surging electricity demand while reducing carbon emissions. This will require significant efforts to integrate variable renewable energy generation into the grid.
Furthermore, industry collaborations in adopting advanced biofuel technologies and workforce development will contribute to increasing biofuel production.
Transitioning to a Cleaner Energy Future
This policy aims to rapidly reduce energy emissions in the industrial sector by increasing grid electricity use, improving energy efficiency, and establishing green hydrogen hubs.
By 2030, the policy targets increasing industrial grid electricity consumption from 32% in 2020 to 40%. It also seeks to achieve global energy efficiency standards in industries such as cement and textiles, positioning Rajasthan as India's green hydrogen production hub.
The transportation sector, which accounts for a significant portion of Rajasthan's carbon emissions and energy demand, is also a focus. By 2030, the policy aims to have non-motorized and public transport modes account for over 40% of the share and promote widespread adoption of electric vehicles. By 2050, the state's goal is to achieve an 80% penetration rate of electric vehicles, electrifying both passenger cars and taxis.
By 2030, the policy targets meeting 45% of Rajasthan's agricultural power demand with renewable energy electricity, including on-grid and off-grid renewable power facilities, while increasing farm irrigation efficiency to 40%.
By 2050, Rajasthan aspires to meet 75% of agricultural power demand with renewable energy electricity and commits to improving farm irrigation efficiency to 70%.
According to a recent report from research firm Mercom India Research, Rajasthan has the highest cumulative installed capacity of large-scale solar installations among all Indian states, with a capacity of over 16 GW as of the end of the second quarter of 2023, accounting for approximately 29% of India's cumulative installed capacity of utility-scale solar systems.
The Rajasthan Electricity Regulatory Commission recently released a new renewable purchase obligation (RPO) for the state, incorporating energy storage systems, mobile solar systems, and biomass facilities into another RPO category.
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