Solar Power as a Source of Ecologically Sustainable Growth in Rajasthan

Abstract

This paper highlights how factors which were once considered curse for Rajasthan have turned into boon. Two critical resources that are essential to solar power production namely high level of solar radiation per square inch and large amounts of contiguous, relatively flat, undeveloped land is abundant there. In order to tap the huge potential of Rajasthan for solar energy, the state government has constituted a separate entity, Rajasthan Solar Park Development Company Limited, for better development and management of solar parks. Solar industry is expected to be an economic engine in Rajasthan creating jobs across the State and spur billions in economic growth and tax revenue along with powering remotely connected households. Barmer, Bikaner, Jaisalmer and Jodhpur are the key regions with best solar radiation in the State. Seeing the market attractiveness the State has stimulated interest among several developers to commit a pipeline of generation projects. Rajasthan has highest allocation of projects including both Solar Photovoltaic and Concentrated Solar Power under Phase I of National Solar Mission. Rajasthan has competitive advantage based on the availability of relatively low cost land for industrial use. Adequate availability of electricity enables the development of solar manufacturing industry, which is energy intensive. The State has a comparative advantage on labor cost compared to its peer states. Proximity to NCR helps in access to industrial labor and managerial talent. Rajasthan has excellent proximity to end user market as well as supplier base for raw material, providing logistics cost advantage as well. The State has excellent medical facilities, it has a peaceful environment, good social infrastructure and strong tourism brand thus providing better quality of life. The new investor friendly Solar Policy aims to establish Rajasthan as a national leader in solar energy in phased manner by creating the policy frame work for promoting use of solar energy in various applications. Various incentives provided under the policy by the State Government include exemption from electricity duty, grant of incentives available to industries and availability of water for power generation. The Government has also announced special scheme for setting up of new enterprise, expansion, modernization and diversification, and projects set-up for common social good. Various Subsidies and Exemption from Taxes under various categories of investment are also being provided