Solar Power 2020: India On A National Solar Mission

On a Solar Mission: How India is Becoming a Centre of PV Manufacturing Presented at Solar Economic Forum on Grid Parity PV London 16th to 18th June 2009: Himadri Banerji

Presented at Solar Economic Forum on Grid Parity PV London 16th to 18th June 2009: Himadri Banerji In an article published in the 6th June issue of New York Times, it is reported that India is working towards becoming a global leader and a hub of solar power, something the developed nations like Germany, Spain and US were recognized for. This is arising out of a draft report called the National Solar Mission which the Government of India is working on. As per the report India plans to add 20000 MW of Solar Power Generation Capacity by 2020. Further the plan envisages 100000 MW by 2030 and 200000 MW by the middle of this century

India – Focus on Solar Energy
India is focusing on solar energy for a major contribution. Meanwhile, India's PV manufacturing sector is developing fast.
Indian Prime Minister Dr. Manmohan Singh announced : ‘We will pool all our scientific, technical and managerial talents with financial sources to develop solar energy as a source of abundant energy to power our economy and to transform the lives of our people and change the face of India.’
US Marketing Company DCI : India is the second best country after China for business investment. DCI cites India’s labour, including its supply, skills level and cost, as the main reason for this positive perception.
In March 2007 the Indian government announced a semiconductor policy under its Special Incentive Package Scheme (SIPS) which will provide 20% of the capital expenditure during the first 10 years for semiconductor industries, including manufacturing activities related to solar PV technology located in Special Economic Zones (SEZ) and 25% for industries not located in an SEZ.
Presented at Solar Economic Forum on Grid Parity PV London 16th to 18th June 2009: Himadri Banerji

Indian companies step into Solar Energy
Andhra Pradesh has set up ‘FabCity’ in the capital, Hyderabad, at an estimated cost of Rs135 billion (US$3.18 billion). Spread over 1200 acres (486 ha), FabCity will house semiconductor manufacturing companies working to meet the needs of the electronic hardware sector and fabrication units for solar PV.
Reliance Industries leads the field with the highest volume of investment, for a 5 MW grid-connected solar PV project in West Bengal .
Moser Baer Photovoltaic Ltd (MBPVL) has an annual manufacturing capacity of 80 MW for crystalline cells, 50 MW of thin-film modules and 10 MW of concentrator modules. It is aiming for more than 600 MW of thin-film single and tandem junction and 500 MW of crystalline and concentrator modules by 2010.

Global PV Market Scenario
Germany has a decreasing share of the market;
Spain installed over 1GW of capacity in 2008;
Italy and France are growing strongly;
USA has the potential to become the biggest PV market in a few years.
In specific regions and for some investors, photovoltaic are becoming an interesting opportunity even without federal support programmes, which will lead to new markets, investments and project types.
Development of global demand is considerably more difficult to estimate than the development of supply and only in a few countries — where concrete PV targets and support policies for the coming years are in place — is it foreseeable.

Buyers market in 5 years: supply will exceed demand Presented at Solar Economic Forum on Grid Parity PV London 16th to 18th June 2009: Himadri Banerji GERMANY WORLD

Solar PV Advantage India
Most urban and industrial centres in India are experiencing peak electricity shortages of over 15%.
India has come up with a plan to develop 60 cities as ‘solar cities.’ The proposal envisages a minimum 10% reduction in total demand of conventional energy after five years in each of these cities through efficiency and renewable energy measures.
To keep pace with the global trend of exercising feed-in-tariff solar power, Govt. of India initiates Solar PV projects up to a maximum capacity of 50 MW are to be supported by financial incentives of a maximum of Rs 12/kWh (28 US cents) for PV projects and Rs 10/kWh (24 US cents) for solar thermal power projects for a period of 10 years. With investors rushing to set up solar power projects and adding up to 2500 MW of capacity, the Ministry has asked the Planning Commission and the Indian Cabinet to expand the 11th Plan solar power programme beyond 50 MW.
The solar energy industry in India has gained momentum and should be able to keep pace with the government’s aim of achieving 10% of the country’s total electricity requirements by 2012.

Solar PV, on the other hand, is a technology that offers a solution for a number of problems associated with fossil fuels. It is clean, decentralized, indigenous and does not need continuous import of a resource.
On top of that, India has among the highest solar irradiance in the world which makes solar PV all the more attractive for India.
India (Orissa and Andhra Pradesh) also houses some of the best quality reserves of silica (basic feedstock for metal grade Si).
India has demonstrated globally proven metallurgical processing capacities and capabilities.
India is already an established low cost producer and assembler of solar PV cells and modules

The major issue with solar is its high upfront costs.
Companies and countries around the world are investing in
scale to bring down costs and in R&D to improve efficiencies.
India, on the other hand, faces the danger of missing the
solar PV opportunity.
Solar industry in India has been till now a low cost producer
Of solar PV cells and modules. Its cumulative processing
capacity is less than 400 MW for both cells and modules.
On the other hand, companies around the world are now
planning and developing production facilities that run into
giga-watts.
India has neither invested in scale nor has it invested in a
focused manner in R&D. China, Japan, USA, Germany,
Malaysia and Taiwan are doing just this.

To maintain this rate of growth (of around 7-9% per annum),
access to cheap, clean and reliable sources of energy has
become crucial.
India plans capacity to meet its projected demand for
electricity of 210 GW by 2012 and to 800 GW by 2032. in
which renewable Energy technologies play a crucial role.
By 2012, India has targeted 24 GW of capacity through
renewable sources of which 0.5 GW would be through solar.
By 2017, MNRE expects India’s solar capacity to touch 4 GW.

The Government of India has kept a target of electrification of
all villages
By 2009 and ‘Power for all by 2012’ with a minimum energy
Consumption of 1 unit per day per family.
Solar PV based decentralized distributed generation can contribute to this
target
**India is one of the fastest growing economies globally and energy is one of the basic requirements to maintain this rate of growth and to serve its developmental objectives.

The Government of India in 2007 released a draft model of RE law by
mandating electricity utilities to purchase power from renewable sources.
The target for electricity generation via this route is fixed at 10% by 2010 and 20% by
2020.
Thus far, 13 SERCs have notified RPO targets for their respective states and the
remaining states are lined up to fix their purchase obligation. These measures will boost
the RE market in the country.

In view of the introduction of state-level RPO’s, increasing demand (due to economic growth and rural electrification) and increase in short-term trading prices, SERCs have called for the use of indigenous energy sources, such as RE, especially wind and solar.
Currently, as of March 2007, India has RE capacity of 11,275 MW, which is around 7% of the total installed capacity.
It has been growing at a CAGR (2003-07) of 18%. The figure below presents the break-up of installed Energy capacity of different segments as on January 2008.
By and large, the RE sector is dominated by wind, with a share of around 71% or 7,845 MW of the total renewable capacity

India has, in the past three decades, been implementing a large RE program and solar, including solar PV, is a focus area. As a part of the RE program in India, the Ministry of New and Renewable Energy (MNRE) launched a country-wide Solar Photovoltaic Program two decades ago.
Under this program, almost 1.1 million solar PV based systems have been installed, including
5.85 lakh solar lanterns,
3.64 lakh solar home lighting systems,
69,500 street lighting systems,
7,068 solar water pumps and
2.65 MWp of stand alone and
2.1 MWp grid interactive solar PV power plants.

The MNRE’s country-wide solar program has two major
focus areas on the Supply Side:
(i) Remote village electrification through DDG using RETs, especially solar based applications, and
(ii) Promotion of solar technologies in urban, industrial and commercial applications
On the demand side, solar energy (thermal and PV) has
found application in four main market segments, which
have been highlighted in Next Slide.

Benchmarking Countries:India Shines Presented at Solar Economic Forum on Grid Parity PV London 16th to 18th June 2009: Himadri Banerji Energy Purchase Obligation from PV Status of India on PV Feed In Tariff Availability and Accessibility of Finance Incentive For Manufacturing PV Acceptance at National Level Indirect support Mechanism (Tax Credit ) National level PV Industry Development Energy Purchase Obligation thru Solar PV

Solar PV Indian Scenario Major players and stake holders indian solar Presented at Solar Economic Forum on Grid Parity PV London 16th to 18th June 2009: Himadri Banerji
Click to edit Master text styles
Second level
Third level
Fourth level
Fifth level
Click to edit Master title style Policy Makers SERC MNES Developers Financing Organizations Policy Makers Solar equipment Suppliers Tata BP Solar IREDA & SBI Solar PV Manufacturers Policy Makers SERC MNES Developers Textiles, Chemical Industries IREDA & SBI ICICI Bank Policy Makers SERC MNES REC, NGOs MNES IREDA Cooperative Banks SPV Power Projects Solar Players Solar Thermal Industrial Applications Solar Water Heating Retail and Institutional Rural Electrification & Water Pumping Solar Thermal Manufacturers

Presented at Solar Economic Forum on Grid Parity PV London 16th to 18th June 2009: Himadri Banerji Key policy highlights of leading countries KPIs GERMANY JAPAN USA Renewable energy obligations No exclusive RPS for solar PV. But target of 12.5% by 2010 and 20% by 2020 Target for solar is 4.8 GW by 2010 and 100 GW by 2030 3GW of new, solar-produced electricity by 2017 (California). Target for RE is 20% by 2010 and 33% by 2020 (California). Attractiveness of feed in tariff (FIT) mechanism € 54.53 cents (for <30kWp),€51.87 cents (for30-100 kWp),€51.30 cents (for>100 kWp) bonus of €5 cents/kWh for BIPV and€ 42.42 cents for ground mounted;decrese of 5% pa and 9% from 2008 onwards. Guarantee period-20 yrs. Only net metering and electricity sold to grid at the same price at which it is bought (retails tariff). FIT (California) is US $ 0.39 per kWh for residential and non-residential and US $ 0.50 for public (governemtn agrencies and non-profit organisations) as they do not get any tax benefits, 27 states have declared FITs. Attractiveness of indirect support mechanism tax incentive Under discussion None 41 states have some sort of tax incentive available to consumers. Attractiveness of manufacturer incentives Manufacturing incentives are available for solar in terms of capital subsidy and direct and indirect taxes. Capital subsidy (10-50%) varies from industry to industry and volume of investment. None 19 sates offer industry support to the solar industry. Availability and accessibility of finance for consumers Soft loan (appox.2% interest rate) Available but not to the scale of the USA and Germany 34 states offer subsidised loans to consumers for the purchase and installation of solar PV equipment. National PV cost economics development Germany has one of the most active R&D landscape in the PV area. It has helped Germany cut down the solar panel cost from € 9-10/W in 1998 to €4/W in 2007. Reduction in cost of system from 2 million yen/kW (1994) to 0.67 m yen/kW (2007) National PV market development German PV industry (including sales of equpment and slae of power) turnover for 2007 reached € 5.7 billion. These are around 60 manufacturers and more than 12000 firms dealing in solar PV business employing app.40000 people. Market growth of 40% year on year over the period 1997 to 2007, third largest market globally, second in thin films production and largest producer of solar cells in 2007. Market growth of 37% year on year over the period 2003 to 2007, fourth largest market globally, leader in thin films production and fourth largest producer of solar cells on 2007. National PV acceptance Very high- as a result of favourable pV policies, there has been significant growth in PV installations between 2002 and 2007. Germany has overall accumulated PV power installation of 3.8 GWp. Low-as there has been a significant decrease (46%) in residential PV installations between 2005 and 2007 after the removal of the subsidy for residential consumers as highlighted by the decrease from 7,00,000 households in 2005 to 5,00,000 households in 2007. High-most states have offered some sort of incentive for promoting solar PV and USA is now turning into a net importer of solar PV panels.

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Solar Power 2020: India On A National Solar Mission

by HIMADRI BANERJI on Jun 06, 2009

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Solar Power 2020: India On A National Solar Mission — Presentation Transcript