SSC Selection Post 2024 PYQ — Question 4

Read the given passage and answer the questions that follow.

Prime Minister Modi has recently declared Modhera, Gujarat as India’s first 24×7 solar-
powered village. It is an important marker in India’s ambitious renewable energy vision. The

aim is to increase installed capacity by more than three-fold to 500 GW by 2030. The
commercial viability of solar power will have a say in realising this goal. Presently, India’s
electricity sector displays a dichotomy, representing the challenges facing the renewable
sector.
Thermal power contributed 75%-85% of the power generated over the last three financial
years. Its installed capacity, however, dipped from 62.3% to 59.6% over the same period.
During the same phase, solar power installed capacity increased from 9.4% to 12.8% among
renewables, its share in a generation increased. Therefore, among available sources of
renewable energy, it’s solar power that holds the brightest promise. Renewable energy
consumption gets a big push from the Government of India in the form of legally binding
purchases called Renewable Purchase Obligation (RPO). Despite this boost, renewables
struggle to meet generation targets because states which have an incentive to keep costs low
often fail to meet their RPO. A March 2021 parliamentary committee report showed that only
four states met their entire RPO target in 2019-20.
Solar power trajectory is delicately poised despite the Government’s move to increase the
share of RPO till 2030. An increase in important tariff this year on inputs such as solar
modules to boost domestic industry will in the near future push up project costs and, thereby,
power tariffs. This is at odds with a separate move to nudge discoms to maintain financial
discipline. Moreover, the renewable space itself is set to get more competitive with the advent
of green hydrogen. The renewable energy is set for a churn with a complex set of factors at
play.