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Widespread use of coal and other fossil fuels has led to accumulation of enormous amount of carbon dioxide in the earth's atmosphere and a resultant global warming. Amongst the renewable energy sources, solar power generation undoubtedly offers the most promising and viable option for electricity generation for the present and future. It is understood that solar power generated over 1% of the land area in the country is adequate to meet its entire electricity requirements till 2030. In most parts of India, clear sunny weather is experienced 250 to 300 days a year. The annual global radiation varies from 1600 to 2200 kWh/m2, which is comparable with radiation received in the tropical and sub-tropical regions. The equivalent energy potential is about 6,000 million GWh of energy per year

Specific annual Solar yield

INDIA USA SPAIN ITALY AUSTRALIA CHINA JAPAN GERMANY 0 1600 1600 1600 1400 1200 1000 1000 2000 kWh/kWp 1900 1900

India being leading producer of wind power is now looking towards arena of solar power in order to satisfy its ever growing power need. Currently India is in 11th position with 120 MW of installed solar PV capacity according to Cumulative and Newly Installed Solar Photovoltaic Capacity in Ten Leading Countries and the World, 2009 by Earth Policy Institute. But there still is large solar power generating potential which is still yet to be touched. Solar thermal technologies have a special relevance in India due to high availability of resources; average radiation is

4.5 - 6 kwh/m2/day with average 280 clear days. In view of the increasing energy demand in all the sectors there is immense potential especially in domestic and industrial sector to meet thermal energy demands. Activities in this field were started in India by Department of Non-Conventional Energy Sources (DNES), which was created in 1982 to facilitate developments in the field of renewable energy, by undertaking various R&D and demonstration projects in the field of solar thermal.

Market in India is divided in two segments Solar collector Solar photovoltaic cell

Solar collectors are used for gathering sunlight over a large area to concentrate it on a small area for the purpose of heating. In Indian market solar collectors are used both at macro level as well as in micro level. At macro level we use Concentrated Solar Power (CSP) systems Concentrated solar power (CSP) are systems that use lenses or mirrors to concentrate a large area of sunlight, or solar thermal energy, onto a small area. Electrical power is produced when the concentrated light is converted to heat which drives a heat engine (usually a steam turbine) connected to an electrical power generator

Solar energy distribution map as shown shows that in India maximum solar energy is mainly concentrated in Rajasthan. While in other state also various projects are also taking place like Moser Baer Clean Energy Ltd, an arm of Moser Baer Projects Pvt Ltd (MBPPL), has commissioned the countrys largest solar plant in Tamil Nadu. The 5-Mw plant is estimated to have cost the company around Rs 70-75 crore. The project had been awarded by the Tamil Nadu Energy Development Agency and is being implemented under the Generation Based Incentive scheme of the Ministry of New & Renewable Energy. In Rajasthan areas marked with deep shade of brown in the map given below, are the potential sites for large scale CSP system. A Solar Thermal Power Plant of 140MW at Mathania in Rajasthan has been proposed and sanctioned by the Government in Rajasthan. The project configuration of 140MW Integrated Solar Combined Cycle Power Plant involves a 35MW solar power generating system and a 105MW conventional power component and the GEF has approved a grant of US$ 40 million for the project. The Government of Germany has agreed to provide a soft loan of DM 116.8 million and a commercial loan of DM 133.2 million for the project. Currently in Bap, near Jodhpur in Rajasthan which receives 2202 kWh/m2 annual equivalent effective DNI (150 W/m2 DNI 850 W/m2) Dalmia Solar company is building CSP plant which is projected to generate 21.39 MU sellable units per year. Currently Rajasthan government will promote setting up of solar power projects for direct sale to Discoms of Rajasthan. The total capacity under this category will be distributed equally between SPV and CSP based power plants. The total maximum capacity under this category for phase-1 (up to 2012-2013) is 200MW and additional 400MW in phase-2 (2014-2017). Rajasthan government also planned to develop solar park of 1000MW in identified areas of Jaisalmer, Bikaner, and Barmer and Jodhpur districts in various stages. The State Government, under this policy, will act as the facilitator to attract global investment in Rajasthan and will provide the necessary infrastructure, regulatory and other Government support required through the Nodal Agency to rapidly ramp up Solar Power generation capacity in the State. Solar Park shall consist of various zones viz. Solar Power Plants, Manufacturing Zones, R & D and Training Centers zone and other amenities zones. The State will extend all facilities and fiscal incentives provided by Central Government/Solar Mission to manufacturers in Solar Parks.

On its part incentives provided by the Rajasthan government are as follows The energy consumed by the Power producers for his own use will be exempted from payment of the electricity duty. Generation of electricity from Solar Power Plants shall be treated as eligible industry under the schemes administered by the Industries Department and incentives available to industrial units under such schemes shall be available to the Solar Power Producers. Water Resource Department will allocate required quantity of water from IGNP canal/the nearest available source for development of Solar Thermal based power plants subject to the availability of water for power generation. In case, the Power Producer proposes to use ground water for power generation, the permission will be granted by the Ground Water Department/Water Resource Department The Solar Power Producer will pass benefits of CDM to the distribution licensee with whom PPA has been signed as per appropriate Commissions order. Now as for Tamilnadu, it is emerging as another hotspot for global as well as local investor in field of solar power. The average annual global solar radiant exposure in Chennai is 5.37kWh/m2 / day. The power generation potential for the country using solar thermal generation about 35 MW/km.The Ministry provided through IREDA, a generation based incentive of a maximum of Rs.12.00 per kWh (for Solar PV) and Rs.10.00 per kWh (for Solar Thermal) generation to eligible projects, which are commissioned by 31st December, 2009, after taking into account the power purchase rate (per kWh) provided by the State Electricity Regulatory Commission or utility for that project. Any project commissioned after 31st December, 2009 would be eligible for a maximum incentive with a 5% reduction and ceiling of Rs.9.50 for solar thermal generation project

Opportunities for solar thermal power generation in India

Solar thermal power generation can play a significant important role in meeting the demand supply gap for electricity. Three types of applications are possible 1. Rural electrification using solar dish collector technology 2. Typically these dishes care of 10 to 25 kW capacity each and use striling engine for power generation. These can be developed for village level distributed generation by hybridizing them with biomass gasifier for hot air generation. 3. Integration of solar thermal power plants with existing industries such as paper, dairy or sugar industry, which has cogeneration units. Many industries have steam turbine sets for cogeneration. These can be coupled with solar thermal power plants. Typically these units are of 5 to 250 MW capacities and can be coupled with solar thermal power plants. This approach will reduce the capital investment on steam turbines and associated power-house infrastructure thus reducing the cost of generation of solar electricity 4. Integration of solar thermal power generation unit with existing coal thermal power plants. The study shows that savings of upto 24% is possible during periods of high insulation for feed water 0 heating to 241 C (4).

INCENTIVE GIVEN BY CENTRAL GOVERNMENT One of the major incentive provided by the Government of India for solar thermal systems is 100% accelerated depreciation i.e. the tax benefit in the first year of installation of the system itself. However, there is no provision of tax benefits for individual consumers. In some states in India, the owners of domestic solar thermal systems get rebate in their electricity bill, in terms of 2 to 3% reduction in tariff. The other incentives are as follows:

A. Indirect Taxes Sales Tax Exemption/reduction in Central Sales Tax and General Sales Tax are available on sale of renewable energy equipment in various states.

B. Direct Taxes

Notification No. SO 276 (E) (i) Accelerated Depreciation on specified Non-conventional Renewable Energy devices/systems in the first year of Installation of the projects. : 100%

Opportunities of photovoltaic cell in India Basic off-grid Lighting and Electrification Systems It is estimated that between US$ 2 to 4 billion are spent by the government every year on subsidizing price of kerosene. PV lighting would greatly improve lighting and reduce the dependency on kerosene and diesel Irrigation pump It is estimated, subsidize electricity for irrigation pumps and agriculture use by somewhere between INR 300000 and INR 400000 each year. Electricity consumption by irrigation pump accounts for 10% to 15% of Indias total consumption. There are estimated to be 21 million irrigation pump are present out of which 9 million runs on diesel and rest 12 million on electricity. So besides offsetting this huge consumption of electricity, PV also offers prospect of kerosene and diesel. Power back up for Cellular Tower IN India it is estimated to have around 300000 cellular towers. Mostly of them are powered by kerosene and diesel. Some leading Indian PV have already begun providing solution for cellular tower in rural and un-electrified area Captive power generation Diesel based captive power generation is used extensively to overcome power supply deficit. It is estimated that net captive power generate capacity to be around 20 GW to 25 GW Urban application and highway lighting Urban area present opportunities for street and traffic lighting, the use of PV for billboard


Telecom Cummulative PV Module Pruduction in India and Application 5% Power Others Plant 14% Pump 2% 3% St. Light Export 1% 69% Home light 4% Lantern 2% As early 2008, India has 9 manufacturers of solar cells and twice as many module makers. Most of the proposal for silicon and wafer are motivated by the governments announcement of a Special Incentive Package Schemes (SIPS) under its 2007 Semiconductor Policy. About 69% of Indias solar cell and PV module production have been exported in recent years, especially as PV have grown in Europe

CAPITAL COST OF SOLAR POWER PROJECT Capital cost is one of the most important parameters for solar power tariff determination. The cost of a solar power project is mainly dependent on the cost of PV modules / plant and machinery, technology adopted, location of the site and capacity. Over and above, there is a very limited experience in this area of generation. The capital cost (in Rupees Crores/MW), available as on date are:

Capital cost per MW for PV system





Draft 27-8-08 order 27-6-08 order 29-01-2010 Lr date 4-6-09 NCES regulations dated 16-09

INR 22.5 crs INR 18 crs INR 16.50 crs INR 18-24 crs INR 22-25 crs INR 16.90 crs

With further development in technology and economies of scale, production costs for Solar Energy Projects may decline and be competitive or at least comparable to other renewable energy options. Commission is of the opinion that the capital cost suggested by CERC is reasonable. Therefore, Commission proposes to consider a capital cost of Rs. 16.90 Crores / MW for solar photovoltaic power project and Rs. 15.30 Crores / MW for solar thermal power project as suggested by CERC in their order dated 25-02-2010.


Consultative Paper on Comprehensive Tariff Order for Solar Photovoltaic and Solar Thermal Power Plants up to 3 MW having grid connectivity below33 kV level Rajasthan Solar Policy, 2010 The Energy and Resources Institute (TERI), India The Solar PV Landscape in India by PV group Detailed project report for developing Solar Power Plant at Bap, Jodhpur, Rajasthan

Capital cost per MW for CSP system

INR 22.5 crs INR 13 crs INR 14-16 crs INR 15-20 crs INR 15.30 crs