 For a tropical as well as a religious nation like
India, the sun has been an object of extreme reverence.
However, it is only now that the country is
looking at this inexhaustible source to meet its energy
demands. Although the country's first solar
power project was commissioned in the late 1980s,
the progress till very recently was sporadic and
insignificant. Much of the sun's energy was harnessed
through solar-powered devices like solar
lanterns, cookers, water heaters and other such
devices. Solar power was seen in a very informal
manner and only found applications in non-electrified
or under-electrified rural habitations. In a commercial
sense, grid-connected megawatt-sized solar
power plants is the most optimum way to harness
solar energy, and in this direction, India has made
scant progress. Up to March 2009, India's grid-connected
solar power capacity was a meagre 2.12 mw
with first grid-connected (non-demonstrational)
solar power plant coming up only in 2003. Efforts
picked up momentum only in 2009 when in only six
months, 7 mw of grid-connected capacity was added
taking the cumulative total to 9.13 mw as of December
2009.
Speaking of solar potential, India is hugely
endowed. It is estimated that solar power plants set
up on just 5 per cent of land covering the Thar Desert
can meet the country's entire energy demand. Technically,
the solar power potential in India is estimated
at a very significant 50 mw per sqkm. In most
parts of India, clear sunny weather is experienced
for 250 to 300 days in a year. The annual radiation,
according to available estimates, ranges from 1,600
to 2,200 kwh per cubic metres. In terms of energy,
this is equivalent to an abundant 6,000 million Gwh
per year. For a frame of reference, India's total electricity generation in 2009-10 was 770 million Gwh.
Annual solar radiation is found to be the maximum
Rajasthan, northern Gujarat and parts of the Ladakh
region. Parts of Andhra Pradesh, Maharashtra and
Madhya Pradesh also score high on this count. In
fact, India generally receives more radiation than
Japan, Europe and USA where the solar energy
industry is highly developed.
The turning point: The announcement of the
much-awaited Jawaharlal Nehru National Solar Mission
(JNNSM) in January this year is construed as
India's biggest and most formal attempt to tap the
huge solar power potential. The mission (See Box)
has aimed at having 1,100 mw of grid-connected
solar power capacity by 2013, which represents the
first phase of the mission. On July 25, the power ministry
and the ministry of new and renewable energy
jointly issued guidelines for selection of private sector
developers. One of the interesting features of
these guidelines is the concept of "bundling" of
power that aims to offset the high generation cost of
solar-based electricity, thereby making capitalintensive
solar power projects more attractive. The
bundling scheme that will be in force for the first
phase of JNNSM will work as follows.
For each mw of installed capacity of solar power
for which a PPA is signed by NVVN with solar power
producers, the Union power ministry shall allocate
to NVVN an equivalent amount of mw capacity from
the unallocated quota of NTPC coal-based stations
and NVVN will supply this "bundled" power to the
distribution utilities. NVVN (NTPC Vidyut Vyapar
Nigam Ltd) is the designated nodal agency forprocuring the solar power by entering into a power
purchase agreement with developers. This scheme
is applicable to those project developers who will be
setting up their solar power projects before March
2013 and which are grid-connected at 33kV or above.
NVVN, it may be mentioned, is also the agency
responsible for selection of developers.
Jawaharlal Nehru National Solar Mission |
The National Action Plan on Climate Change in June 2008
identified the development of solar energy technologies
in the country to be pursued as a national mission. In November
2009, the Government of India approved the "Jawaharlal
Nehru National Solar Mission" (JNNSM). Prime Minister Dr.
Manmohan Singh launched the Jawaharlal Nehru National
Solar Mission on January 11, 2010, at a Solar Energy Conclave
organized by the ministry of new and renewable energy.
The mission aims at development and deployment of solar
energy technologies in the country to achieve parity with grid
power tariff by 2022. The objective of the National Solar Mission
is to establish India as a global leader in solar energy, by
creating the policy conditions for its diffusion across the
country as quickly as possible.
The Mission will adopt a 3-phase approach, spanning the
remaining period of the XI Plan and first year of the XII Plan
(up to 2012-13) as Phase I. The remaining four years of the
XII Plan (2013-17) as Phase II and the XIII Plan (2017-22) as
Phase III. At the end of each plan, and during the mid-term of
XII and XIII 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. The aim would be to protect government from subsidy
exposure in case expected cost reduction does not materialize
or is more rapid than expected.
The immediate aim of the Mission is to focus on setting up
a conducive environment for solar technology penetration in
the country both at the centralized and decentralized levels.
The first phase (up to 2013) will focus on capturing of the
low-hanging options in solar thermal; on promoting off-grid
systems to serve populations without access to commercial
energy and modest capacity addition in grid-based systems.
In the second phase, after taking into account the experience
of the initial years, capacity will aggressively be ramped up to
create conditions for up-scaled and competitive solar energy
penetration in the country.
The target for the first phase is to set up 1,000 mw grid connected
(33 KV and above) solar power plants; 100 mw of roof
top and small solar plants connected to LT/11 KV grid and
200 mw capacity equivalent off-grid solar applications. The
Mission targets are to create an enabling policy framework
for the deployment of 20,000 mw of solar power by 2022,
increase 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.
The capacity can be more than doubled-reaching 10,000 mw
or more installed power by 2017 based on the enhanced and
enabled international finance and technology transfer. The
ambitious target for 2022 of 20,000 mw or more, will be
dependent on the 'learning' of the first two phases, which if
successful, could lead to conditions of grid-competitive
solar power. In addition, favourable conditions need to be
created for solar manufacturing capability, particularly solar
thermal for indigenous production for off-grid applications
reaching 2,000 mw by 2022, apart from installation of 20
million solar lighting systems and 20 million m2 solar thermal
collector area. |
procuring the solar power by entering into a power
purchase agreement with developers. This scheme
is applicable to those project developers who will be
setting up their solar power projects before March
2013 and which are grid-connected at 33kV or above.
NVVN, it may be mentioned, is also the agency
responsible for selection of developers.
Evolution of grid-connected capacity: India's
efforts to set up grid-connected solar power capacity
began as small demonstration projects. According
to information available with Electrical Monitor,
Punjab was host to the country's early demonstration
projects. In October 1999, two tiny projects,
each of 50 kw (or 0.05 mw), were set up by the Union
ministry of new and renewable energy, then known
as ministry of non-conventional energy sources.
The projects were established at Mini Secretariat
Building and Village Bajak in Punjab, and are currently
in operation.
In March 2003, a 0.2-mw grid-connected solar
power plant (based on photovoltaic technology) was
installed in Khatkar Kalan village of Punjab's
Nawashahr district. This plant was then India's
biggest grid-connected solar power plant. Constructed
by Tata BP Solar, the plant was deployed to
illuminate 100 street lights on the road leading to the
Shaheed-e-Azam Bhagat Singh Museum.
The paradigm shift came in November last year,
when West Bengal Green Energy Development, a
state government undertaking, commissioned a
solar photovoltaic grid connected plant at Jamuria in
West Bengal. This is believed to be India's first utilityscale
grid-connected solar power plant. Built by
Hyderabad-based Titan Energy Systems Ltd, the facility with capacity of little over 1 mw supplies
power to state government utility Dishergarh Power
Supply Company.
Karnataka has taken major strides by commissioning
two grid-connected facilities of 3-mw each,
both supplied by Titan Energy. The first, at Itnal in
Belgaum district, was commissioned in December
2009 followed by another at Yelasandra in Kolar district
in March this year.
Solar power technologies |
Several technologies exist for
converting solar radiation into
electricity. The two most widely used
ones are photovoltaic systems and
solar thermal power plants.
Photovoltaic (PV) systems are
solid-state semi-conductor devices
that directly convert solar energy to electricity (photo =
light; voltaic = electricity). PV systems can be installed as
distributed systems on rooftops, or at utility scale in the form
of solar farms. Even though the installed cost of PV systems
is relatively high, the benefit of photovoltaic systems is in
their low O&M costs and in long term durability & reliability.
Concentrated solar
thermal power, referred to
as CST or CSP, involves
power generation by concentrating
solar energy to
generate steam and drive
turbines. Sun's rays are
reflected off an array of concentrators on to either a network
of small tubes running across the face of the mirrors or a
large central tower, in which water is turned into steam to
drive conventional turbines for generating electricity. Parabolic
trough concentrating collectors, power tower/heliostat
configurations, and parabolic dish collectors are used
in CSP systems. |
The cost factor: The biggest challenge in setting up
solar power capacity is the very high capital cost.
Solar energy is arguably the costliest when compared
to any other form of power generation—conventional
or non-conventional. It is currently estimated
that a solar power plant based on photovoltaic
technology would cost Rs.17 crore per mw while
the solar thermal variant would involve capital
expenditure of Rs.13 crore per mw. Even if one takes
an average cost of Rs.15 crore per mw, it is thrice the
cost of setting up a conventional coal-fired plant or a
wind power project.
WORLD'S LARGEST SOLAR PHOTOVOLTAIC PLANTS |
SPV Plant |
Country |
Capacity |
Completed |
|
|
(MW) |
|
Olmedilla Photovoltaic Park |
Spain |
60 |
2008 |
Strasskirchen Solar Park |
Germany |
54 |
2009 |
Lieberose Photovoltaic Park |
Germany |
53 |
2009 |
Puertollano Photovoltaic Park |
Spain |
50 |
2008 |
Moura photovoltaic power station |
Portugal |
46 |
2008 |
Kothen Solar Park |
Germany |
45 |
2009 |
Finsterwalde Solar Park |
Germany |
42 |
2009 |
Waldpolenz Solar Park |
Germany |
40 |
2008 |
Planta Solar La Magascona & La Magasquila |
Spain |
35 |
2008 |
Arnedo Solar Plant |
Spain |
34 |
2008 |
Source: www.pvresources.com |
|
|
|
In terms of maintenance, solar plants based on
photovoltaic technology are cheaper with O&M
costs currently estimated at Rs.9 lakh per mw per
year. The solar thermal type would need around
Rs.13 lakh per mw per year during its operative life.
Cost of generation is proportionately high, currently
averaging at over Rs.16 per kwh. Under
JNNSM, Central Electricity Regulatory Commission
has fixed the rate of Rs.17.91 per kwh for solar photovoltaic
and Rs.15.31 per kwh for solar thermal
power projects. The rates, relating to fiscal year
2010-11, will be applicable for solar photovoltaic
projects commissioned by March 2012 and solar
thermal projects commissioned by March 2013.
Global solar PV installations cross 22 GW in 2009 |
Global solar photovoltaic power installations grew by
around 7.2 GW during 2009 reaching over 22 GW as of
end-2009, a recent study by European Photovoltaic Industry
Association (EPIA) has said. During 2009, Germany
remained the largest market, with Italy ranking second and
Japan and the USA markets to follow. Germany most probably
will remain the largest market in 2010, while new markets
in particular from Southern Europe, Asia and the U.S. will
grow significantly, the study suggests. The growth in capacity
is remarkable considering the difficult financial conditions
in most European markets.
In 2010, global cumulative installed PV capacity is expected
to grow by at least 40 per cent. China and India are also
expected to boom in the next five years with an impressive
amount of PV projects in the pipeline, the study points out.
With a cumulative installed capacity of almost 10 GW,
including around 3.8 GW installed in 2009, Germany
remains the world's largest PV market. However, the cut in
feed-in tariff announced recently is expected to dampen the
pace of PV additions in the long run. In the mid-term, Italy
appears as one of the most promising markets with an additional
capacity of some 730 MW already in 2009.
Thanks to a strong political will, Belgium featured amongst
the top ten countries with 292 mw installed in 2009. Due to a
revision of the financial support scheme early 2010, the market
is, however, expected to slow down slightly this year.
France followed with 185 mw installed in 2009, with an additional
100 mw installed but not connected to the grid yet. In
spite of a huge potential, this clearly demonstrates the
importance for France to solve grid connection issues in
order to allow the market to develop, the report notes.
Outside Europe, Japan positions itself as the third largest
market with 484 mw and shows an important growth potential
thanks to favourable political support. The US market
finally took off significantly with around 477 mw installed in
2009 and appears as a potential leading market for the
coming years.
The global PV market could reach between 8.2 GW and
12.7 GW of new installations assuming a moderate scenario
and a policy driven scenario, respectively, and would represent
a growth of 40 per cent and 60 per cent of the overall
cumulative installed capacity compared to 2009 for the two
scenarios. In a policy-driven scenario, the global annual PV
market could reach up to 30 GW in 2014 based of course on
favourable conditions established by policy makers, regulators
and the energy sector at large, the study adds. |
Lack of domestic equipment base: Renewable
energy in India has largely remained a private sector
subject, and solar power would be no exception.
There has been tremendous response so far from
solar power developers both from India and abroad to set up solar power plants. The incentive scheme
announced the government has of course been the
principal attraction. One of the biggest challenges
that India would face is the availability of solar equipment.
Currently, India's solar power equipment
industry is at its nascence; there would hence be
intense reliance on imported equipment. As some
industry experts say, international suppliers would
be interested in the India only when there is a sufficiently
large market in terms of planned power
capacity. Till the JNNSM was announced, the plans
for solar power projects were only sporadic and
hence the interest of foreign equipment manufacturers
was limited. With the JNNSM setting out a
national objective, the market has expanded tremendously,
at least in principle. JNNSM reflects India's
seriousness of solar power objectives and will instill
confidence amongst foreign suppliers. Once solar
power capacity gets gradually built in India with
imported equipment, it would gradually result in the
growth of domestic solar equipment capabilities.
US-headquartered SEMI, the global industry association
representing semiconductor, micro-electric
and photovoltaic segment, sees India emerging as a
hub of solar photovoltaic product manufacture supporting
local consumption and even some of the
markets abroad.
The President and CEO of SEMI, Stanley T. Myers,
recently said the recent announcement of National
Solar Mission and other support decisions will
encourage domestic companies to tap this opportunity.
Scores of global manufacturers are also looking
to India to potentially partner and support the India's
growth story in the solar power generation.
Currently, the solar photovoltaic manufacturing
base is very small in India, Myers said, but it will
not be too long before Indian companies play a larger
role not only in the domestic market but also in
supporting projects in Europe and other parts of
the world.
China has become the largest manufacturer of
solar PV products supporting requirements in
Europe and the US, European production followed
by Taiwan and Japan. Some countries in the South
East Asia such as Indonesia, the Philippines and
Malaysia have also begun to manufacture and supply
solar PV panels, Myers said.
For multinationals equipment makers to enter
India, they should see huge business opportunities
that so far did not exist. However, the announcement
of JNNSM, along with other incentives and guidelines,
has considerably opened up the business
opportunity area in India, an industry expert said.
The high-potential solar power market has substantially
enthused private enterprise. According to
ProjectsToday, new capacity of over 2,400 mw is currently
in the offing—comprising both projects
planned and those under construction. Most of this
capacity—coming from over 100 projects both solar
photovoltaic and solar thermal—is scheduled to
commission by 2013, going by current plans. Major
solar projects, in terms of capacity, are coming up
mainly in Gujarat followed by Andhra Pradesh and
Maharashtra.
MAJOR SOLAR POWER PROJECTS |
Promoter |
Location |
Type |
MW |
Par Solar Ltd. |
Kachchh, Gujarat |
Solar thermal |
300 |
Caritas International |
Bhavnagar, Gujarat |
Solar thermal |
200 |
Maharashtra State Power Generation Co. Ltd.* |
Shivajinagar, Maharashtra |
Solar PV |
125 |
West Bengal Green Energy Devp. Corpn. Ltd.* |
Shivajinagar, Maharashtra |
Solar thermal |
110 |
Welspun Orissa Power & Steel Pvt. Ltd. |
Purulia, West Bengal |
Solar thermal |
100 |
OPG Power Gujarat Pvt. Ltd. |
Thumala, Andhra Pradesh |
Solar PV |
100 |
Refex Energy Ltd. |
Gujarat |
Solar PV |
50 |
NG Solar Pvt. Ltd. |
Gujarat |
Solar thermal |
50 |
Entegra Ltd. |
Kachchh, Gujarat |
Solar thermal |
50 |
Sunborne Energy Andhra Pvt. Ltd. |
Kachchh, Gujarat |
Solar thermal |
50 |
Solitaire Powertech Pvt. Ltd. |
Gattu, Andhra Pradesh |
Solar thermal |
50 |
Sunborne Energy Technologies |
Gollahalli, Karnataka |
Solar thermal |
50 |
Muni Seva Ashram |
Gujarat |
Solar thermal |
50 |
Acme Tele Power Ltd. |
Gujarat |
Solar thermal |
50 |
*=State government-owned, rest private sector; List is indicative |
Kachchh, Gujarat |
|
|
Source: www.projectstoday.com |
|
|
|
Challenges and course ahead: India's journey to
the sun has just started. It will be a long way till gridconnected
solar power becomes an activity of
respectable stature. The national solar mission is
indeed a very important first step, it must be accepted.
From 9 mw now, India aspires to attain solar gridconnected
power capacity of 1,100 mw by 2013,
which, prima facie, looks like a quantum leap. However,
it is technically possible as solar power projects—
photovoltaic or solar thermal—do not have a
long gestation period, and the incentives currently
offered can galvanise private enterprise.
Even though domestic manufacturing capacity is
low, there are international suppliers that are willing
to supply to this huge Indian solar market. Further,
capital costs of solar equipment, photovoltaic cells,
have been showing a receding trend. Over the past
decade, prices of photovoltaic cells have dropped
over 20 per cent. According to data available with
Solarbuzz, retail prices of photovoltaic cells in the
US market have dropped from $5.40 per watt in
December 2001 to around $4.20 per watt in July
2010. Prices in the European market too have shown
the same trend.
Regarding the India's long-term objective of attaining
20,000 mw of solar power capacity by 2022, there
are some reservations, although the first-phase
objective seems attainable. According to James
Abraham, Managing Director and CEO, SunBorne
Energy, the first 1,000 mw expected in the next 3-4
years will happen because there are enough subsidies,
government policies and framework to support
it. The subsequent phases will still government subsidy
(even if capital costs are brought down) and
nobody yet knows the appetite of the government
with regards to subsidy in the second phase.
The deciding factor, Abraham feels, is ultimately
the capital cost of solar power projects. If costs can
be brought down to Rs.6-7 crore per mw, the JNNSM
target is indeed small and more than that could be
attained. However, if costs do not come down to the
stated level, attaining the target would be difficult. In
summary, Abraham feels, it is the capital costs of
solar power projects that will be the principal determinant.
Sunborne Energy, incidentally, has planned
to set up 700 mw of solar power capacity in India by
2018. Its first plant in India would be set up at a capital
cost that is at least 20 per cent lower than a comparable
plant anywhere in the world, Abraham feels.
Epilogue: As of now, the Indian solar industry is in
the grip of euphoric excitement. Guidelines, national
objectives and lucrative incentives have spawned
widespread interest amongst Indian and international
solar power developers. Prima facie, the target
of 1 GW by 2013 looks attainable and will put India
on the world solar map. However, what will really
drive India's solar ambitions would be the government's
stance on the subsidy structure, the country's
ability to create a local manufacturing base for solar
power equipment and technology advancements in
the global market aimed at bringing down solar
equipment costs. What course the solar industry
takes would be known only with time, but at least
India has taken its first step into the sunshine. |