Solar Futures: Pioneering Green Energy in Emerging Economies

by - December 20, 2024


The world we are living in is besmirched with actions of people towards its energy resources and methods of redeeming it. Therefore, the concerned authorities initiated the way to protect it by Green Energy techniques.

Green energy is energy that can be produced using a method, and from a source, that causes no harm to the natural environment. One of the prior and significant idea is Solar Energy (energy can be harnessed directly from the sun), which is now a vision for all the economic, global and sustainable future.

The Future of Solar Energy considers two widely recognized classes of technologies for converting solar energy into electricity — photovoltaics (PV) and concentrated solar power (CSP), sometimes called solar thermal — in their current and plausible future forms. Because energy supply facilities typically last several decades, technologies in these classes will dominate solar-powered generation between now and 2050.

Benefits of Solar Energy in Emerging Economies

Solar electricity generation is one of very few low-carbon energy technologies with the potential to grow to very large scale. As a consequence, massive expansion of global solar generating capacity to multi-terawatt scale is very likely an essential component of a workable strategy to mitigate climate change risk.

The transition to solar energy can bring numerous benefits to emerging economies, including economic growth, environmental sustainability, and improved social well-being.

Economic Growth and Job Creation- Solar energy can contribute to economic development by creating new industries, jobs, and business opportunities. The solar value chain, which includes manufacturing, installation, maintenance, and distribution, offers significant employment prospects, especially in local communities. According to the International Renewable Energy Agency (IRENA), the solar industry employed over 4 million people globally in 2021, a number that is expected to grow as the renewable energy sector expands.

In emerging economies, where unemployment rates can be high, the growth of the solar industry offers opportunities for job creation, skills development, and entrepreneurship. Additionally, the use of solar energy can reduce energy costs for businesses and households, thereby improving productivity and quality of life.





[1] Figure 1(2010-2021) and Figure 2 by IRENA https://www.weforum.org/stories/2023/01/renewable-energy-transition-green-jobs/ 

Energy Access and Rural Development- Solar power can provide decentralized energy solutions to off-grid and rural communities. Small-scale solar installations, such as solar home systems (SHS) or mini-grids, can be deployed quickly and cost-effectively, providing electricity where grid extension is impractical or too expensive. Solar power is particularly well-suited for rural areas, where traditional energy infrastructure may be absent, and the energy needs are often met through expensive and polluting diesel generators.

Beyond electrification, solar energy can have a transformative impact on other areas of rural development, including education, healthcare, and agriculture. Solar-powered schools, clinics, and irrigation systems can improve the quality of life and create new opportunities for sustainable development.

Solar energy landscape in emerging economies

In the energy industry, solar energy has become a game-changer, especially in developing nations. These areas are using solar power to change their energy futures because of their fast economic growth, growing energy needs, and need for sustainable development. The solar energy landscape in these economies is defined by a mix of opportunities, challenges, and innovations that underscore its pivotal role in addressing global energy and environmental goals.

Rising Energy Demand and the Role of Solar Power -

Emerging economies are experiencing significant increases in energy consumption due to urbanization, industrialization, and population growth. Traditional energy sources such as coal and natural gas are often insufficient to meet this demand sustainably. Solar energy offers a viable alternative, particularly as the cost of solar photovoltaic (PV) technology has plummeted over the past decade. This cost reduction has made solar power competitive with fossil fuels, even in regions with modest solar resources. (The figure below shows global PV capacity by 2022)


Government Policies and Initiatives –

India’s National Solar Mission also known as The Jawaharlal Nehru National Solar Mission (JNNSM) was launched in January, 2010 under the brand name ‘Solar India’. The National Solar Mission is a major initiative of the Government of India and State Governments to promote ecologically sustainable growth while addressing India’s energy security challenge. It also constitutes a major contribution by India to the global effort to meet the challenges of climate change. The objective of the Mission is to establish India as a global leader in solar energy, by creating the policy conditions for its large scale diffusion across the country as quickly as possible. The Mission has adopted a 3-phase approach, spanning the 11th Plan and 1st year of the 12th Plan (up to 2012-13) as Phase 1, the remaining 4 years of the 12th Plan (2013-17) as Phase 2 and the 13th Plan (2017-22) as Phase 3. At the end of each plan period and mid-term during the 12th and 13th Plans, the evaluation of progress, review of capacity and targets for subsequent phases, based on emerging cost and technology trends, both domestic and global, would be undertaken. The Mission has set the target of 20,000 MW of Grid connected and 2000 MW of Off-grid capacity by 2022. 

Conclusion - In conclusion, in spite of steady growth rates of Solar in India in the last decade via the National Solar Mission, installed capacities of solar in India still lag behind official targets. Granted, the implemented capacity has far exceeded the original 20 GW goal of the JNNSM, but the numbers from 2022-23 are significantly short of the revised 100 GW goal of the program.




(Data represented in the above figure concludes that installed solar capacity didn’t meet its destined targets.)

While the NSM did not fully meet its revised target of 100 GW by 2022, its achievements in scaling solar energy were transformative. It laid the foundation for a robust solar market in India, making the country a global leader in renewable energy and demonstrating the potential for large-scale solar adoption in emerging economies. 

Solar powered irrigation system (SPIS) for agriculture in Kenya utilises solar energy as the primary power source to pump water, and distribute it in the farm. This system is a clean energy technology that reduces greenhouse emissions. It substitutes fossil fuels as an energy source. The company supplies and installs these systems within the east Africa region mainly for smallholder farmers. The most direct benefit is the increased revenue and income that come with the greater yields of irrigated cropland vis-à-vis rain-fed land. Stable water supplies allow additional growing seasons per year, massively increasing output. Drip irrigation (a central, although not unique, element of SPIS) can save around 80% of water compared to current practices, and improves crop quality thanks to more stable supply, often improving real yields by over 300%. In addition, SPIS offer significant cost savings over time on labour, fuel and fertilizer, a total value to smallholder farmers estimated at around $14,000 per acre annually. Economically, the benefits of increased use of SPIS translates into local opportunities beyond the agricultural boundaries, as small businesses arise to meet demand in manufacture, assembly, repair and sales of SPIS.


4(REEEP)

By 2022, Kenya had established over 170 MW of solar power capacity. Notably, almost two-thirds of this capacity was integrated into the national grid in 2021, highlighting a significant expansion in the country’s renewable energy infrastructure.

5(Research Gate)


Solar Home System (SHS) Program is becoming more popular day by day in Bangladesh. SHS uses PV panels to produce electricity – thereby displacing kerosene conventionally used for lamps as well as diesel used in generators to charge batteries. SHS program was launched to ensure access to clean electricity for the energy starved off-grid rural areas of Bangladesh. The program supplements the Government’s vision of ensuring ‘Access to Electricity for All’ by 2021. More than 4.5 million SHSs have already been installed under IDCOL program in the off-grid rural areas of Bangladesh and about 13 million beneficiaries are getting solar electricity. More than 65,000 SHSs are now being installed every month under the program with average year to year installation growth of 58%. The program replaces 180,000 tons of kerosene having an estimated value of USD 225 million per year. Moreover, around 70,000 people are directly or indirectly involved with the program. The program has been acclaimed as one of the largest and the fastest growing off-grid renewable energy program in the world.15th November 2010, RDF has signed an agreement with Infrastructure Development Company Limited (IDCOL) of GoB bilateral project for doing work on Solar Home System Component under the Green Resource Mobilization Program (GRMP) of RDF. RDF vigorously started this activity and by the end of June 2013, RDF established 194 branch offices across the country for operation. Up to 2018, RDF has installed a number of 2,12,712 Solar Home Systems among the users of the off-grid areas covering 46 districts in Bangladesh. RDF’s growth rate is 85% over the previous year and hope the growth rate will further increase in coming days. Up to 2019, RDF produced 4.89 MW electricity through Solar Home System.


https://rdfbd.org/solar-home-system/

Solar energy in Brazil is increasingly being used in homes, commercial buildings, industrial plants and other facilities. The National Electricity Agency (ANEEL) and the Brazilian Solar Photovoltaic Energy Association (ABSOLAR) ranked the states using this renewable energy source in the territory in 2020. Solar power plants in Brazil are concentrated mainly in the states of Minas Gerais, Bahia, Ceara, Rio Grande do Sul, Piaui, Sao Paulo, Rio de Janeiro, Santa Catarina.

(The image shows the number of PV installed in MW from year 2013-2024)

The total installed capacity of solar panels in Brazil has reached 4,900 MW. Solar energy in Brazil is now being actively used to optimize power distribution networks and reduce negative environmental impact. This renewable energy source is playing an increasing role in industrial, agricultural and domestic processes, creating thousands of new jobs and significantly reducing carbon dioxide emissions.


Challenges to Solar Energy Adoption in Emerging Economies

Despite the potential it holds, adoption of solar energy in emerging economies faces several challenges.

Infrastructure and Grid Integration-While solar energy can be deployed off-grid, integrating it into national or regional grids remains a challenge in many emerging economies. The existing electricity grids in these regions are often outdated, underdeveloped, or unreliable, making it difficult to integrate variable renewable energy sources like solar. In some cases, grid stability issues, such as voltage fluctuations and power surges, can hinder the adoption of solar power.

Financial Barriers-The initial capital cost of solar installations, including panels, inverters, and batteries, remains a significant barrier, particularly in low-income countries. Although the cost of solar technology has decreased significantly, financing remains a key challenge, especially in regions where access to credit is limited, and financial institutions may not have experience with renewable energy projects.                                                          

Innovative financing models, such as pay-as-you-go (PAYG) solar systems or microfinance loans, have helped overcome this challenge in some areas. However, more comprehensive solutions are needed to ensure the long-term sustainability of solar energy initiatives.

Policy and Regulatory Challenges-The regulatory environment plays a crucial role in shaping the adoption of solar energy. In many emerging economies, inconsistent policies, lack of incentives, or poorly designed regulations can create barriers to the widespread deployment of solar energy. Without clear policies on renewable energy, such as tax credits, feed-in tariffs, or net metering, investors may be hesitant to invest in solar projects.
Government support, both financial and regulatory, is essential to create a conducive environment for solar energy development. Clear long-term policy commitments, along with incentives for private sector investment, are necessary to drive large-scale solar adoption.

Future Outlook and Recommendations for Scaling Solar Energy in Emerging Economies

Solar panels will become the largest source of electricity in 2025 and by 2028 it will account for 42% of global electricity. The efficiency of one solar panel will increase at great speed with the advancement of technology.

To unlock the full potential of solar energy in emerging economies, the following recommendations are essential:

Strengthen Policy Frameworks: Governments must create clear, supportive policies that encourage investment in solar energy. This includes setting renewable energy targets, offering financial incentives, and implementing effective regulatory frameworks.                                                                         

Increase Access to Financing: Innovative financing mechanisms, such as microloans, PAYG models, and green bonds, can help overcome financial barriers to solar adoption. International financial institutions can also play a key role in providing funding for large-scale solar projects.                      

Invest in Infrastructure: Upgrading electricity grids and investing in energy storage solutions will improve the integration of solar power into existing energy systems and help address intermittency issues.

Promote Local Capacity Building: Developing local skills and expertise in solar energy installation, maintenance, and manufacturing will help ensure the long-term sustainability of solar energy initiatives and create jobs in the renewable energy sector.

Foster Regional Cooperation: Collaboration among countries in regions such as Sub-Saharan Africa or South Asia can enhance knowledge sharing, reduce costs through economies of scale, and promote cross-border solar power trade.

Conclusion

One of the most significant opportunities and challenges of our time is the transition to a sustainable energy future. With their enormous solar potential, emerging economies are essential to the worldwide transition to green energy. Solar power offers these nations a unique chance to go over traditional, carbon-intensive energy systems, enabling them to meet growing energy demands while fostering environmental sustainability.

By investing in solar technologies, strengthening policy frameworks, and ensuring equitable access to renewable energy, emerging economies can achieve significant socioeconomic benefits, including job creation, energy independence, and reduced greenhouse gas emissions. Collaborative efforts between governments, private sectors, and international organizations are crucial in driving innovation and scaling solar solutions to address the unique challenges faced by these regions.

Solar energy opens the door to a greener, more equitable energy future as it grows more affordable and widely available. Promoting solar energy can help emerging economies lead a global revolution and demonstrate that environmental conservation and economic expansion are complimentary routes to a better future rather than antagonistic ones.

References

Dubey, V., Chauhan, A., & Verma, A. (2024). Solar Futures: Pioneering Green Energy in Emerging Economies. New Delhi. Available from : 

https://www.indiascienceandtechnology.gov.in/st-visions/national-mission/jawaharlal-nehru-national-solar-mission-jnnsm                                                                    https://energy.mit.edu/research/future-solar-energy/                            https://reeep.org/region_pro/kenya/                                                              https://www.greenmatch.co.uk/solar-energy/solar-pv-statistics https://www.weforum.org/stories/2023/01/renewable-energy-transition-green-jobs/ https://freyrenergy.com/what-does-the-future-hold-for-solar-energy/ https://en.wikipedia.org/wiki/Solar_panel                                                    https://www.lightingglobal.org/paygo/                                          https://esfccompany.com/en/articles/solar-energy/solar-power-plants-in-brazil/ https://rdfbd.org/solar-home-system/






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