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India's ambitious renewable energy targets are facing significant hurdles, despite receiving substantial government funding. The Union government allocates the lion's share of its renewable energy budget to solar power, yet progress towards its stated goals remains far behind schedule. As of September 30th, 2024, only about 12% of the targeted solar capacity has been installed, leaving a considerable gap to be bridged by 2030. This discrepancy highlights a critical issue: while financial resources are readily available, effective implementation and execution are lacking. The Parliamentary Standing Committee on Energy's second report on the Union Ministry of New and Renewable Energy (MNRE) underscores these concerns, raising serious questions about the efficacy of government programs and budget allocation.
The PM Surya Ghar: Muft Bijli Yojana, the government's flagship solar rooftop program, exemplifies these shortcomings. Despite receiving the highest budget allocation (Rs 6,250 crore) in 2024-25, its implementation pace has been deemed 'very slow' by the Parliamentary Committee. While the ministry claims substantial progress with millions of registrations and hundreds of thousands of solar panel installations, the committee's findings paint a different picture. The significant lag between registrations, installations, and the disbursement of subsidies points to bureaucratic bottlenecks and operational inefficiencies. The ministry's justification of delays due to monsoon season is insufficient to explain the wide discrepancy between targets and achievements. The committee's skepticism is warranted, considering the vast gap between the initial target of 2.5 million rooftop installations and the far lower number actually realized by October 2024.
Further compounding the problem is the consistent underutilization of the allocated budget for renewable energy initiatives. Despite receiving significantly higher budgetary allocations in recent years, the MNRE has consistently failed to fully utilize the funds. The ministry attributes this underutilization to the COVID-19 pandemic and a lack of project proposals from northeastern states. However, the low budget utilization in northeastern states over the past three fiscal years – only 13%, 2%, and 4% respectively – suggests deeper systemic issues beyond these factors. This pattern raises concerns about the ministry’s planning, execution capabilities, and overall resource management. The disproportionate allocation of the budget – approximately 87% dedicated to solar energy, with the bulk of that going to a single scheme – also raises questions about whether adequate attention is being paid to other crucial renewable energy sources. Neglecting wind, small hydroelectric, and bioenergy projects undermines the broader goal of achieving a diversified and robust renewable energy sector.
The disparity between the ambitious targets set by the government and the actual progress achieved points to a more profound problem than simple budgetary constraints. It highlights a systemic deficiency in project planning, implementation, and monitoring. The lack of transparency and accountability further exacerbates the issue. While the ministry claims to be working towards a 500 GW installed capacity from non-fossil sources by 2030, the current trajectory suggests that this goal is highly unlikely to be met unless substantial reforms are undertaken. These reforms should include strengthening project management capabilities, streamlining bureaucratic processes, enhancing transparency and accountability, and ensuring a more equitable distribution of resources across different renewable energy sources. The overreliance on a single scheme, even a high-profile one like PM Surya Ghar, masks the systemic problems undermining the entire renewable energy agenda. Addressing these underlying challenges is critical for India to realize its ambitious climate goals and achieve energy security.
The significant financial investment in renewable energy, particularly solar power, must translate into tangible results. Simply increasing the budget allocation is not enough; the focus must shift towards improving the efficiency and effectiveness of the implementation process. The lack of progress in achieving the targeted renewable energy capacity has serious implications for India's commitment to reducing carbon emissions and mitigating climate change. The government needs to conduct a thorough review of its renewable energy policies and programs, identify the bottlenecks hindering progress, and implement comprehensive reforms to ensure that the substantial financial resources allocated are effectively utilized to achieve the desired outcomes. Otherwise, India risks missing its ambitious renewable energy targets, jeopardizing its climate commitments and potentially hindering its long-term economic development.
Source: Despite getting lion's share of RE funds, why are India's solar ambitions languishing?