India unveils solar targets, stressing need for overseas finance and technology

India yesterday announced its solar power targets, stressing that its ambitious goal of having 20GW of capacity installed by 2022 would be reliant on foreign finance and technology.

Its Solar Mission initiative, which was approved by the cabinet last week, aims to bring the price of solar power to grid parity by 2022, with costs to equal that of coal-based thermal power by 2030.

The cabinet sanctioned 43bn rupees ($922m, £558m) of investment for the first phase of the scheme, which calls for 1GW-2GW of grid-connected solar facilities, 200MW in off-grid installations and seven million square metres of solar collectors to be installed by 2013. India currently has just 200MW of total installed solar capacity.

The second stage will aim to deliver 4GW-10GW of on-grid and 1GW of off-grid installations by 2017, with 15 million square metres of solar collectors.

By the end of the final phase in 2022, India hopes to have 20GW of on-grid and 2GW of off-grid facilities, including 20 million solar-powered lights in rural areas. It is also aiming for 20 million square metres of solar thermal collectors.

However, the government warned that its ability to achieve its ambitious targets will be "based on availability of international finance and technology" , and while it did not give details on how later phases would be funded, the total cost is expected to reach $20bn.

"The document lacks specific details on the sources of finance, which is critical to a successful implementation," said Greenpeace India spokesman Siddharth Pathak.

Indian officials are expected to ask for international assistance to help achieve the country's renewable energy targets at next month's UN climate change talks in Copenhagen.

Politicians have previously stated that foreign technology and investment are crucial if the country is to reduce its carbon dioxide output at a time when its population and industries are growing.

Greenpeace, which welcomed the targets, estimated that the mission would reduce annual CO2 output by 434 million tons by 2050, based on the assumption that solar power will replace fossil fuels.