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Refresher Training Course on

Thermal and Photovoltaic


Applications of Solar Energy
Preliminary Inputs for
Discussion Session-II

Tara C. Kandpal

Centre for Energy Studies


Indian Institute of
Technology Delhi
Hauz khas, New Delhi -
Important Issues for Discussion

• Potential End Uses and Their Prioritization (if


desirable??)
• Identification of Niche Areas of Each
Identified End-Use
• Assessment of Maximum Utilization Potential
• Barriers and Incentives (Causal factors) to
Dissemination
• Policy Measures (what?, how?, when?,
where?) (R&D support, financial/fiscal
incentives, regulations, quality control etc)
Reported Cumulative Achievements
S.No. Year
Solar water heating systems (m2) Solar cookers (No.) Solar home systems (No.) PV lanterns (No.)
1 1983 ------ 18000 ------ ------
2 1984 12283 30000 ------ ------
3 1985 24147 46000 ------ ------
4 1986 44392 72000 ------ ------
5 1987 66307 92000 ------ ------
6 1988 88836 1.1 lakh ------ ------
7 1989 1 lakh ------ ------ ------
8 1990 ------ 1.77 lakh ------ ------
9 1991 1.9 lakh 2.01 lakh 5050 ------
10 1992 2.29 lakh 2.3 lakh 11600
11 1995 ------ 4.1 lakh ------
12 1996 ------ 4.2 lakh 23000 50000
13 1997 ------ ------ ------ ------
14 1998 ------ ------ ------ ------
15 1999 4.5 lakh 4.62 lakh ------ ------
16 2000 5.5 lakh ------ ------ ------
17 2001 6 lakh ------ ------ ------
18 2002 6.8 lakh 5.3 lakh ------ ------
19 2003 8 lakh ------ ------ ------
20 2004 10 lakh ------ ------ ------
21 2005 15 lakh 5.99 lakh 342607 538718
22 2006 16.6 lakh 6.03 lakh 301603 463058
Photovoltaic Applications
• Should we (society/country) prioritize amongst
potential PV (or solar thermal) applications?
(allocation of funds and efforts)
– Utilization potential
– Technological preparedness (at global level and its
dynamics)
– Equity, gender, quality of life and other relevant issues
– Any other dimensions?
Photovoltaic Applications
• Technology development for cost reduction and
conversion efficiency enhancement
• System design considerations
• Enhanced acceptance due to increased unit cost of
electricity produced using other resource-
technology combinations
• Identify niche areas, facilitate appropriate
financing strategies, provide financial/fiscal
incentives, understanding potential barriers
(besides cost) and resolving the same.
Photovoltaic Applications
• Potential of reduction in cost of
- conversion/collection
- storage
- electronics and support structure etc
• Effective system design, site selection, operation
and maintenance
• Consolidating demand (if possible)
• Eliminate subsidy given to competing options
Photovoltaic Applications
Priority
End Use Remarks
Assigned
Domestic Lighting
SHS
Lantern
Mini-grid
Street Lighting
Water Pumping
Grid-connected Power
Generation
Communication Kiosks
Any Other: Light Houses
Fencing
Battery Chargers
Characteristics of Solar Energy Resource
Low flux density

Large collection area to meet a specific demand

Material Requirement Space Requirement

Monetary cost Embodied energy In short Competition with


supply in urban agricultural
areas
activities
Problem for Issue of energy
users with low payback
purchasing power
Characteristics of Solar Energy Resource (continued..)
Intermittent availability

Problem in need satisfaction during the period(s)


of insufficient availability

Poor reliability

Use of auxiliary and /or Add storage


system(s)

Increased cost Storage Tech.


Increased Low not yet fully
mature
cost sustainable
energy fraction Cost of Cost of increased
storage collection area
DIFFUSION CRITERIA

◆Resource availability

◆Technological appropriateness

◆Energetic feasibility

◆Socio-cultural acceptability

◆Environmental sustainability

◆Financial and economic viability


O&M
capital cost
Economic/
Technical financial
barriers barriers
Cost
effectiveness
Site
selection

Social/environmental
barriers

Local capacity: infrastructure and


knowledge barriers
Political, institutional and
legislative barriers
Experience Curve: Reasons for
Decline in Marginal Cost
• Changes in Production: Process innovation,
learning effect, economies of scale

• Changes in the Product: Product innovation,


product redesign, product standardization

• Changes in input prices


PURCHASING POWER AND MOTIVATION
TO USE SOLAR ENERGY

Monthly repayment installment (MRI) depends upon


total cost Co of the system
fraction ( f ) of the capital cost provided as loan
loan repayment installments (N)
effective interest rate per period (de)

d e (1 +d e ) 
 N

MRI = f Co  
(1 +d e ) −1 
N
 

Gross income > n [ MRI ]

where n is a specific multiplying factor depending upon the


country/specific location
Annual Income vs. Number of Households in India

100
100
90
Number of households (million)

90
Number of households (million)

80
80 70
60
70
50
60 40
50 30
20
40
10
30 0
20 20000 30000 40000 50000 60000 70000 80000 90000
Annual income (Rs)
10
0
20000 30000 40000 50000 60000 70000 80000 90000
Annual income (Rs)
Niche areas and Utilization Potential

(A) Solar Home Systems /PV Lanterns

Desirable Characteristics of Factors to be Used in Estimating


Niche Areas Utilization Potential (maximum)
• Remote un-electrified households • Total number of households in un-
electrified areas
• Households in areas suffering from
frequent power cuts • Factor for solar radiation availability
• Daily solar radiation availability of • Factor for purchasing power
more than ------- kWh/m2
• Factor for propensity to use solar
• Annual income of more than------ systems
• Factor for availability of cheaper
alternative option(s).
Niche areas and Utilization Potential

(A) Solar Home Systems /PV Lantern (continued…)

Desirable Characteristics of Factors to be Used in Estimating


Niche Areas Utilization Potential (maximum)
Niche areas and Utilization Potential

(B) PV Pumps for Irrigation Water Pumping

Desirable Characteristics of Factors to be Used in Estimating


Niche Areas Utilization Potential (maximum)
• Un-electrified villages • Total number of landholdings of size
larger than -------- hectares in un-
• Villages suffering from frequent
electrified areas
power cuts
• Factor for solar radiation availability
• Daily solar radiation availability of
more than ------- kWh/m2 • Factor for purchasing power
• Annual income of more than------ • Factor for propensity to use solar
systems
• Factor for availability of cheaper
alternative option(s).
Niche areas and Utilization Potential

(B) PV Pumps for Irrigation Water Pumping (continued….)

Desirable Characteristics of Factors to be Used in Estimating


Niche Areas Utilization Potential (maximum)
Potential Causal Factors and Possible Strategies

(A) Solar Home Systems /PV Lantern

Potential Causal Factor Possible Approach for


Enhancing Dissemination
• Decentralized low capacity utilization • Innovative financing mechanisms
• High capital cost • Financial/Fiscal incentives to the users
and/or Production incentives to the
• Lack of promotional and after-sales
manufacturers
services
• Carbon benefits internalized
• Poor system design, site selection
• Promotional campaigns in niche areas
• Entrepreneurship training in niche
areas
• Business development meets
Potential Causal Factors and Possible Strategies

(A) Solar Home Systems /PV Lantern (continued…)

Potential Causal Factor Possible Approach for


Enhancing Dissemination
Additional Issues
• Progress towards development of low cost
solar cells
• Operation in ESCO mode
• Linking income generation with improved
and additional illumination
• Benefits of programmatic CDM
• Quality Control
• Auxiliary/Back up arrangements
Thank You for Your Inputs