Previous Year Question
With reference to solar power production in India, consider the following statements.
India is the largest in the world in the manufacture of silicon wafers used in photovoltaic units.
The solar power tariffs are determined by the Solar Energy Corporation of India.
Which of the statements given above is/are correct?
Only 1
Only 2
Both 1 and 2
Neither 1 nor 2
Correct Answer: D
Detailed Solution
Statement 1 is incorrect. In 2018, India was not the world’s largest manufacturer of silicon wafers required for manufacturing photovoltaic cells and modules. China held the dominant share of the solar-manufacturing supply chain, particularly in polysilicon, ingots and wafers.
In the solar photovoltaic manufacturing chain, polysilicon is first converted into a cylindrical ingot. The ingot is cut into thin wafers; solar cells are made from these wafers, and the cells are assembled to produce solar modules. Thus, a wafer is an important intermediate product formed before a solar cell.
India’s domestic manufacturing capacity has historically been concentrated mainly at the level of solar cells and modules, with dependence on imports for wafers and other upstream components. Integrated manufacturing—from polysilicon to modules—is currently being expanded through the Production Linked Incentive Scheme and other government measures, but this does not make India the world’s largest manufacturer of silicon wafers.
Statement 2 is incorrect. The Solar Energy Corporation of India is not the statutory regulator that determines solar-power tariffs. SECI is a Central Public Sector Enterprise working under the administrative control of the Ministry of New and Renewable Energy. It may conduct competitive bids and auctions for renewable-energy projects and function as an intermediary in power-procurement agreements.
A tariff may be discovered on the basis of bids submitted by developers during competitive bidding, but it is adopted or approved by the appropriate Electricity Regulatory Commission under the Electricity Act, 2003. The Central Electricity Regulatory Commission has a role in inter-State projects, while the relevant State Electricity Regulatory Commission deals with matters within a State.
Under Section 62 of the Electricity Act, a Regulatory Commission may determine a tariff, whereas under Section 63, the Commission adopts a tariff obtained through transparent competitive bidding. Therefore, SECI may conduct an auction, but it is not the regulatory authority legally responsible for determining tariffs.