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“I’d put my Money on the Sun and Solar Energy. What a source of Power! I hope we don’t have to Wait ‘till Oil and Coal run out before we tackle that”. – Thomas Edison [1847 – 1931]
Over 450 million Indians have no electricity though India receives solar energy equivalent to nearly 5,000 trillion kWh/year - far more than the country’s total energy consumption today.
Solar Power In India
India's power sector has a total installed capacity of approximately 1, 47,402 Megawatt (MW) of which 63% is Thermal (coal-based) 25% Hydro 9% is Renewable and 3% is Gas and Nuclear-based. Power shortages are estimated at about 11% of total energy and likely to increase in the coming years. In the next 10 years, another 40,000 MW of capacity and an investment of about Rs. 1, 00,000 lakh crore is needed into the power sector. Fortunately, India lies in sunny regions of the world. Most parts of India receive 4-7 kWh of solar radiation per square meter per day with 250-300 sunny days in a year. India has abundant solar resources, as it receives about 3000 hours of sunshine every year, equivalent to over 5,000 trillion kWh. India can easily utilize the power of solar energy. Today the contribution of solar power with an installed capacity of 9.84 MW, is a fraction (< 0.1 %) of the total renewable energy installed.
Jawaharlal Nehru National Solar Mission
► The Jawaharlal National Solar Mission is being launched under the brand name “Solar India” with an initial investment of Rs. 4,337 crore. ► The Solar Mission recommends the implementation in 3 stages leading up to an installed capacity of 20,000
MW by the end of 13 Five Year Plan in 2022. ► The Mission will adopt a 3-phase approach:
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Phase 1 spanning the remaining period of the 11 Plan and first year of the 12 Plan (up to 2012-13) Phase 2 the remaining 4 years of the 12 Plan (2013-17) Phase 3 the 13 Plan (2017-22)
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At the end of each plan, and mid-term during the 12 and 13 Plans, there will be an evaluation of progress, review of capacity and targets for subsequent phases, based on emerging cost and technology trends, both domestic and global.
Mission Targets are:
• To create an enabling policy framework for the deployment of 20,000 MW of solar power by 2022. • To ramp up capacity of grid-connected solar power generation to 1000 MW within three years – by 2013;
an additional 3000 MW by 2017 through the mandatory use of the renewable purchase obligation by utilities backed with a preferential tariff. • To create favorable conditions for solar manufacturing capability, particularly solar thermal for indigenous production and market leadership. • To promote programmes for off-grid applications, reaching 1000 MW by 2017 and 2000 MW by 2022. • To achieve 15 million sq. meters solar thermal collector area by 2017 and 20 million by 2022. • To deploy 20 million solar lighting systems for rural areas by 2022.
► The Cabinet has approved setting up of 1,100 MW of grid solar power and 200 MW capacities of off-grid solar applications utilizing both solar thermal and photovoltaic technologies in the first phase of the Mission. ► The focal point, for the next 3 years, will be the NTPC Vidyut Vyapar Nigam (NVVN), which is the power trading arm of the NTPC. Government will designate it for the purchase of solar power generated by independent solar power producers, at rates fixed by the Central Regulatory Electricity Commission and for a period specified by the latter. ► The Central Electricity Regulatory Commission has recently issued guidelines for fixing feed-in-tariff for purchase of solar power taking into account current cost and technology trends. These will be revised on an annual basis. The CERC has also stipulated that Power Purchase Agreement (PPA) that utilities will conclude with solar power promoters should be for a period of 25 years. ► The PPAs shall be signed with the developers who will be setting up Solar Projects within next three years (i.e. up to March 2013) and are connected to the grid at 33 KV level and above. ► The Mission will encourage rooftop solar PV and other small solar power plants, connected to LT/11 KV grid, to replace conventional power and diesel-based generators. Operators of solar PV rooftop devices will also be eligible to receive the feed-in tariff fixed by the CERC, both on the solar power consumed by the operator and the solar power fed into the grid
► State Governments would also be encouraged to promote and establish Solar generation Parks with dedicated infrastructure for setting up utility scale plants to ensure ease of capacity creation.
► The Mission also includes a major initiative for promoting rooftop solar PV applications. Solar tariff announced by the regulators will be applicable for such installations. The power distribution companies will be involved in purchase of this power Scalability: India is endowed with vast solar energy potential. About 5,000 trillion kWh per year energy is incident over India’s land area with most parts receiving 4 -7 kWh per sq. m per day. Hence both technology routes for conversion of solar radiation into heat and electricity, namely, solar thermal and solar photovoltaics can effectively be harnessed providing huge scalability for solar in India. Funding: Funding for the ambitious targets would be from budgetary support and multilateral mechanism under the UN system. Pricing: The mission aims to have 20,000 MW of solar power connected to the grid by 2022 with an allocation of Rs 4,337 crore in first phase. The offer of around Rs 17.50 a kWh of electricity, of which the Centre will pay Rs 14 and the State utilities the balance State utilities will have to purchase this power from the NTPC Vidyut Vyapar Nigam Ltd (NVVN), the designated nodal agency by the Ministry of Power (MoP), for entering into a power purchase agreement (PPA), of 25 years. The idea of introducing power trading instrument of REC is also an ambitious plan. RECs - Significantly, it seeks to achieve the grid connected capacity in the initial period through an innovative system of Renewable Energy Certificates (RECs), which will be tradeable. The policy has suggested a renewable purchase obligation (RPO) on states that could start with 0.25% of their power off take in Phase I by 2013 and going up to 3% by 2022.
The below 80°C challenge – Solar Collectors
The Mission in its first two phases will promote solar heating systems, which are already using proven technology and are commercially viable. The Mission is setting an ambitious target for ensuring that applications, domestic and industrial, below 80 °C are solarised. The key strategy of the Mission will be to make necessary policy changes to meet this objective:
• • • •
Firstly, make solar heaters mandatory, through building byelaws and incorporation in the National Building Code, Secondly, ensure the introduction of effective mechanisms for certification and rating of manufacturers of solar thermal applications, Thirdly, facilitate measurement and promotion of these individual devices through local agencies and power utilities, and Fourthly, support the upgrading of technologies and manufacturing capacities through soft loans, to achieve higher efficiencies and further cost reduction.
JNNSM’s OFF-GRID Initiatives:
In remote and far-flung areas where grid penetration is neither feasible nor cost effective, solar energy applications are cost-effective. They ensure that people with no access, currently, to light and power, move directly to solar, leap-frogging the fossil fuel trajectory of growth. ► Solar thermal heating applications, such as water heaters, fall in this category. ► Solar lighting systems for rural and remote areas are already being distributed commercially in several parts of the country. ► Solar energy to power computers to assist learning in schools and hostels, Management Information System (MIS) to assist better management of forests, powering milk chilling plants are some examples of new areas, being tried successfully in the country.
SOLAR TECHNOLOGIES, TRENDS and FORECASTS
Solar electricity generation uses 2 types of technologies - photovoltaic (SPV) and Solar Thermal technology.
SOLAR COMPANY PROFILES
XL Telecom is one of the leading Indian manufacturers of Solar Photovoltaic Modules, established in 1992. XL has over 15 years of experience of manufacturing Solar Photovoltaic Modules and systems to various agencies in India. The company has a solar photovoltaic cell manufacturing plant with a capacity of 120 MW per annum XL is right now going through CDR process to reduce the debt and come back to its glory days. New Project in Fab City is in progress and would add to its MW capacity
Moser Baer Photovoltaic (MBPV) aims to distinguish itself as a significant player in the global photovoltaic market by leveraging its high-volume manufacturing expertise and R & D. A first of its kind 80 MW, state-of-the-art, fully automated in-line crystalline silicon cell manufacturing facility - 40 MW already in production - this will be scaled up to 240 MW. A 200 MW thin film module plant is under construction. Many JVs and technology tie-ups in place.
Recession led to heavy losses. Yet to turn the corner.
Restructuring all its entities is underway so as to unlock Biogas and SOLAR valuations.
Promoters buying back their shares actively from market. Aggressive Solar push across more than 5 states. The company plans to establish solar power projects connected to the grid with a total capacity of 500 MW in a phased manner with plans to establish a series of solar projects in Gujarat, Maharashtra, Madhya Pradesh, Chhattisgarh and Andhra Pradesh, in a phased manner. In Phase I, plans to establish 65 MW and has chosen Medak district in Andhra Pradesh, Raipur in Chhattisgarh, Hingoli in Maharashtra and Bhavnagar in Gujarat initially to set up solar plants.
PAE Ltd’s subsidiary – Shurjo Energy focuses on thin-film solar modules using the Copper Indium Gallium diselenide Technology (CIGS). SHURJO has a dominant presence in the off-grid solar utilities and appliances market. Company modules range from 9 watts to 156 watts – one of the widest CIGS market range. Is working on a product range for the Building – Integrated Photovoltaics (BiPV) market. Recently its modules met the IEC safety standards for module long-term life (25+ years), quality and integrity. Technology is new, results yet to reflect, but company is bullish.
V Guard has a nice range of solar water heaters. Is trying to broad base its products in the off-grid applications segment.
Promoters buying back their shares actively from market.
Euro Multivision’s proposed 40MW photo-voltaic (PV) and polysilicon project is coming up in Kutch, Gujarat. Overall investment of nearly Rs 2,700 crore spread over a 10-year period. The company has tied up with OTB Solar, a Dutch company, for the supply of machinery and design know how to make solar cells at its SEZ and expects to start production by January 2010. Enjoys SEZ Benefits.
Most of the increase in turnover over the next two years is likely to come from the photovoltaic business due to demand supply gap. Although not really comparable, the only peer is Moser Baer which has been struggling to turn profitable.
Numeric’s solar energy products include amorphous and crystalline solar photovoltaic (PV) panels and solar charge controllers ranging from 12 volts to 196 volts and light emitting diode (LED) lighting systems. Numeric has floated a wholly-owned unit Numeric Solar Energy. Numeric Power plans to set up 1 Mw solar plant in Coimbatore, with an investment of Rs. 25 crore. The company already has a 1.5 Mw windmill farm in the same location.
Surana Telecom is restructuring its solar business and has approved a proposal to demerge the solar business of Surana Telecom into Surana Ventures. Pursuant to the scheme of arrangement, the existing shareholders of Surana Telecom will be issued three new equity shares of Rs 10 each of Surana Ventures for every four shares of Rs 5 each held in Surana Telecom in addition to their existing shareholding of Surana Telecom.
Webel Solar has a facility in Salt Lake, Kolkatta and intends to expand the same to 102MW by April 2010. The Greenfield expansion of 90 MW is being established in the SEZ zone of Falta, Kolkatta. This would provide benefits of excise and income tax exemptions for the company for the next five years to 2013. Webel exports almost all of its production i.e. 96% of its sales to countries like US, Germany and Japan. Its global repute is backed by international quality certifications like UL, ISPRA and ISO 9000.
Webel faces competition from Tata BP Solar, Moser Baer, XL Telecom and Euro Multivision in the local PV industry with tightening margins and slackened demand.
Recent Solar Entrants List
SOLAR Cities / Farms / Parks
The Andhra Pradesh government is developing a solar city through a cluster of solar farms at Kadiri, Anantapur district, to solar energy in the state. The project is AP's second initiative in the solar power sector after Fab City in Hyderabad, the country's single-largest manufacturing hub for semiconductors. The solar city will come up on about 10,000 acres. Located in Kadiri area of Anantapur district, it is spread over 10,000 acres of barren land. It has proximity to Bengaluru International Airport (85 kms). The area has suitable radiation index for solar farms. Four companies — Lanco Solar, Titan Energy Systems of India, Sunborne Inc. & AES Solar of USA have decided to set up units in the solar city with total capacity of 2,000 mw.
Until now, the only thing shining in the Rann of Kutch was a mirage. Now, the scorching sun could light up another sparkling ring along the border, if a Rs 61,019 crore dream comes true. And, it won’t be an illusion, but real mirrors. The Clinton Foundation’s proposal to generate about 5,000 megawatt of power — is way larger than India’s biggest power project of 3,260MW in Vindyachal. The biggest solar power plant planned so far is a 160MW project in Portugal. The cost of the project would be about $8-10 billion for 3,000 Mw and for 5,000 Mw; it would be about $15 billion. The feasibility study will be over in 2010 and the plant will start in 2012. With about 45 investment promises lined up in solar energy sector, Gujarat plans to promote the desert as a hub for renewable energy. Gujarat has decided to allocate 1,500 hectares of land in the desert and a small stretch in Santalpur in Bankaskantha district. The Gujarat Industrial Development Corporation will create infrastructure for the ambitious ‘Solar Park’.
RAJASTHAN: Future powerhouse of North India
Based on the potential that the state holds, projection for the state are in the range of 97,636 MW to 4,45,794MW grid connected power projects, 10,823 MW to 16,234MW of wind power and 85,221MW to 4,26,103 MW for solar photovoltaic and thermal together. The plan emphasizes action at grass root level and puts forward the idea of implementing development projects strongly. The generation based tariff structure that the state offers is one of the best in the country and will attract many investors. This will come as an advantage given that good amount of solar energy and huge unused land parcels are available in the state.
A Sunrise Report on Solar Sector by Email: email@example.com
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