E-Paper
Jharkhand’s new solar policy is ambitious. But will it deliver?
With the aggressive new targets, one hopes the state prioritises ecological impact analysis and balances the multiple economic, social and environmental benefits and challenges before implementing the floating solar projects.
After seven years, Jharkhand has re-jigged its policy to promote solar energy in the state. The new policy announced in July 2022 is ambitious in its scope. It has nearly doubled its target to 4000 MW of solar power by 2026, up from 2650 MW by 2020. The state also announced a separate policy to promote rooftop solar in the intervening years.
Of the 4000 MW of solar power, 3000 MW is utility-scale (including 900 MW of floating solar and 400 MW of canal-top solar). The remaining 1000 MW is through Distributed Renewable Energy Generation (DREG) systems (720 MW) and off-grid systems (280 MW), meaning the production of renewable power happens at or close to the point of consumption. The goal is also to create 1,000 “solar villages” and deploy DREG power to support agro-based livelihood applications, like cold storage units for farm produce and solarising water pumps for irrigation.
The state government’s intentions are bold and well-meaning – to promote the uptake of cleaner energy in a state with India’s largest coal reserves and where coal extraction is a significant source of revenue for the state’s exchequer. However, the state now has to address multiple issues as it seeks to achieve this clean energy vision, not least finding alternative sources for revenue generation.
Providing land for utility-scale solar projects is a significant challenge. Some of India’s most extensive protected forests cover almost one-third of the state. Another 40% is farmland, many of which are owned by Jharkhand’s many Adivasi communities. These communities have inalienable rights to their lands through laws like the Chota Nagpur Tenancy Act, 1908 and the Santhal Paranagas Tenancy Act, 1949. These laws prohibit the transfer of Adivasi lands to non-tribals.
The 2015 solar policy (replaced by the 2022 policy) was supposed to develop a GIS-based land record system to identify land for solar projects. However, this did not happen.
The 2022 policy addresses the land availability issue by offering to procure or lease private lands for solar power development. In addition, Jharkhand Renewable Energy Development Agency (JREDA) has been tasked with coordinating with other government departments to identify and convert spaces available for solar power plants into land banks following approvals from the Jharkhand Renewable Power Land Allotment Committee (JRPLAC).
Other incentives have also been provided for grid-scale solar, including exemption from payment of stamp duty, environment and forest clearances, and approvals for developing retired mining lands for solar power. While the need to incentivise solar development is appreciated, it should not be at the cost of other environmental issues and concerns. Robust ecological and forest impact assessments will help identify potential concerns, and allow these to be avoided or mitigated.
The state has also envisioned a rapid rise in the Renewable Purchase Obligations (RPOs) of the local distribution companies (“Discoms”) from the current 2% to 12.5% in one year. RPOs are the percentage of renewable power mandated by the state’s electricity regulatory commission that local discoms must offer as part of their energy portfolio. In addition, other measures like incentives to develop the electric vehicle (EV) charging infrastructure are included in the 2022 policy.
While it is too early to tell if these policy changes will help achieve the intended targets for grid-scale solar, it is encouraging to see actions to develop DREG and off-grid solar power. DREG and off-grid solar are where Jharkhand could make meaningful progress because distributed renewable energy and livelihood-based applications of RE would allow for greater participation from intended beneficiaries and bring about equity in power consumption between rural and urban communities.
The 2022 policy provides an 80% subsidy for rooftop-based DREG systems of 3-10 kW capacity and 60% for those under 3 kW. But this is an income-based provision. The 80% subsidy is for families whose income is under ₹3 lakh annually, while the rest will get a 60% subsidy. Nearly 37% of Jharkhand’s households are abjectly poor – those whose incomes are below the country’s defined poverty line. So while income-based support might stymie efforts for greater rooftop solar adoption, it has a strong equity focus.
Subsidy for off-grid livelihood-based applications has been raised. However, the policy does not identify the appliances that are covered by this scheme.
The 2022 policy also identifies 1300 MW of the 4000 MW from floating and canal-top solar power systems. This will be interesting since floating solar projects are still more expensive, though it avoids using land for solar projects. Jharkhand’s first floating solar plant of 100 MW proposed in 2021, at Getalsud Dam near Ranchi, had to be cancelled in 2022 because of the poor response from developers. With the aggressive new targets, one hopes the state prioritises ecological impact analysis and balances the multiple economic, social and environmental benefits and challenges before implementing the floating solar projects.
Overall, the 2022 solar policy is a significant and timely upgrade in Jharkhand. One hopes that while addressing existing bottlenecks, the state also looks at some of the recommendations offered in this article. Further, it is crucial that future policies of the state address equally essential issues of livelihood transitions for coal sector workers, just compensations for land leases and alternatives to farmers who give up their lands, as well as attract entrepreneurs and investors to the state.
Dheeraj Kumar Gupta is a senior programme associate with the energy programme at WRI India.
The views expressed are personal.
