Solar Parks Project Current Affairs - 2020

Investment Capacity of India in renewable sector reached 500-700 billion USD

The Institute of Energy Economics and Financial Analysis published a study according to which India has increased its potential of renewable energy investments to 500-700 billion USD. This is mainly because of improvements in solar power in the country.

Highlights

According to the study, the ultra-mega solar parks in the country have attracted foreign capital. The Bhadla Solar Park in Rajasthan is the largest solar park in the world. It is spread over 14,000 acres. The capacity of the park is 2245 MW of power.

Ultra-Mega Power Plant

The concept of ultra-mega solar parks was framed by India in 2016. In 2016, the Ministry of New and Renewable Energy had set a target of setting up of 40 industrial solar parks with a capacity of 20GW. The target was doubled to 40 GW in 2022.

The concept of ultra-mega solar parks involves local distribution companies and the state governments. This is mainly because large areas of land need to be acquired to set up a solar park. And since land is a state subject, state governments should certainly be involved.

Government inks Loan Agreement with World Bank for Shared Infrastructure for Solar Parks Project

The Union Government has signed a guarantee agreement for IBRD/CTF loan of US $98 million and Grant Agreement for US $2 million for Shared Infrastructure for Solar Parks Project with World Bank.

The objective Shared Infrastructure for Solar Parks Project is to increase solar generation capacity through establishment of large-scale parks in the country.

Shared Infrastructure for Solar Parks Project

The project consists of two components viz. (i) Shared Infrastructure for Solar Parks and (ii) Technical Assistance. It will help to establish large-scale solar parks and support government’s plan to install 100 Gigawatts (GW) of solar power out of total renewable-energy target of 175 GW by 2022.

World Bank

World Bank is one of five institutions created at Breton Woods Conference in 1944. It is part of the United Nations system, but its governance structure is different. Its headquarter are situated at Washington DC, US.

World Bank provides loans to developing countries for capital programmes. It comprises only two institutions viz. International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA). In contrast, World Bank Group comprises three more viz. International Finance Corporation (IFC), Multilateral Investment Guarantee Agency (MIGA), and International Centre for Settlement of Investment Disputes (ICSID).