Sustainable Growth & Solar Energy in India- Challenges & Opportunities
INTRODUCTION:
The decade of1980’s & 90’s
witnessed the start of IT/Software
revolution & those who were the first movers like Infosys, Satyam, Tata,
Wipro, Airtel, Essar etc., got the first mover advantage & reaped the
benefits of the revolution. Similarly the present era is witnessing the start
of sustainable technologies revolution & those who are first movers will get
the “first mover” advantage. The renewable sector is not only important for the
organizational growth per se but also to a greater good of the sustainable
development of mankind. The days are not far ahead when the development of a
nation would not be judged by the conventional GDP but by the “Green GDP”; the
balance sheet of the companies would be evaluated as “green balance sheets”.
The last century witnessed the tremendous growth in world GDP due to rapid
industrialization & urbanization, particularly in western world but no one
bothered about the environmental damage because of uncontrolled GHG emissions,
unsustainable resource utilization & production of excessive waste. The
nature has self-healing mechanism for the impact of pollution which is caused
because of natural calamities & optimum utilization of resources, but it
has failed heal the damage inflicted by human on the environment. The effects
like global warming, erratic weather patterns and other harmful effects on
flora & fauna is cause of more concern now. The need of hour is to adopt
sustainable technologies for the development in order to survive on earth.
International platforms like UN & IPCC and local government bodies of
different countries are awakening global community to stand in favour of
sustainability by adopting clean & renewable technologies. Ratification
& implementation of Kyoto protocol has become relevant for the world for
the survival of mankind.
India is one the fastest growing economies in
the world & fourth largest economy in the world. The relevance of
sustainable development & adoption of clean technologies is going to be the
most sought of policy in India. As a second most populous country in the world,
there is tremendous pressure on available non-renewable resources. To continue the present rate of growth &
satisfy the ever growing demand of energy, it needs to adopt clean, green &
renewable technologies. India has a very good solar profile & harnessing
this energy alone can solve much of the energy related problems. Moreover the
government policies like preferential tariff, ADR, mandatory RPO (still to be
implemented strictly by GOI- to make the distribution companies & open
access consumers to comply RPO regulations) will increase penetration of
renewable technologies in India.
India is also blessed with many
rivers & harnessing this hydro power by building small & micro hydro
dams for electricity generation & irrigation can be a sustainable mode of
generating electricity without inflicting damage to environment.
Coastal areas & some parts of
southern India/western India/Northern India have a very good wind profile &
a lot of wind sites have developed across the country. Still there is enough
potential to develop wind sector in India. Due to withdrawal of GBI & AD
policy the investment has dropped considerably in this sector over last two
years, but in 2013-14 government has introduced GBI & AD policy to boost
investment. But there is a need for long term solution to promote investment
without GBI & AD.
As far as biomass is concerned,
India has a good potential, but it has been a disappointment on this front.
About 60 per cent of the country’s grid-connected power plants that run on
biomass have either shut down or are on the verge of shutting down.
Analysis
of Solar Segment:
Strength:
·
Sustainable & environment friendly source of
energy.
·
Vast solar potential due to excellent solar
profile of the subcontinent.
·
Government initiatives and schemes for solar
development: MNRE is first renewable energy dedicated ministry in the world
which aims to propagate renewable energy across country. Set up of NAPCC that
envisages renewable energy to constitute approximate 15% of the energy mix of
India by 2020. Subsidy Scheme to Promote Solar Energy through the Jawaharlal
Nehru National Solar Mission.
·
Commitment to international treaties like Kyoto
Protocol.
·
Govt schemes like GBI, promotion of solar
technologies like water heating, solar home lighting through state nodal
agencies.
·
Promotion of Solar Thermal Systems for air
heating/Steam generating applications, solar buildings and Akshay Urja Shops.
·
Development of Solar Cities in 11th FYP.
·
High cost of solar energy infrastructure.
·
Solar energy can have difficulty competing with
traditional forms of energy on the basis of price.
·
Poor implementation track record of solar
policies.
·
States not obliging their RPO commitments.
·
Low investment in solar segment by private
players due to lack of clarity of GOI on solar sector.
·
O&M issues due to poor quality of Chinese
products.
OPPORTUNITIES:
·
Most of the perceived strengths are
opportunities if there GOI brings clarity on its solar/renewable policies &
demonstrate will to implement.
·
Oil, coal and other fossil fuels are a finite
resource they will eventually be depleted and there will be rise in its costs.
Over a period of time it presents an opportunity for the
Solar industry to compete on the basis of price,
eventually becoming cheaper than fossil fuels in market as well as
environmental cost.
·
India is a power starved state & its most of
the rural/hilly areas don’t have even 8 hrs/day power. This is an opportunity
for the solar/renewable technologies. We can provide renewable energy to the
deprived mass & help the country to develop by providing cost effective
& clean power to this segment. Solar irrigation, power generation, solar
heating, solar lighting, development of mini grids in these areas are real
opportunities of growth.
·
India has huge renewable energy resources, especially
solar energy. It can be a major source of income to generate renewable energy
& earn REC / CC (Carbon Credits which can be traded in domestic /
international markets.
Threats:
·
Availability of efficient & latest
technology for power generation is causing percolation of relatively less
efficient / high maintenance technologies, making to look the investment
unviable.
·
High initial installation cost, lack of proper
financing mechanism, lack of private investment & financial risks.
·
Lack of appropriate laws & policies, lack of
will to implement the available policies, bureaucratic & procedural delays
in clearing projects.
·
Supply chain issues.
Some
potential areas in solar segment to explore:
DC
Pump Irrigation Solution: At present Ac solar water pumps are
being used widely, but DC solar water pumping is technology of future as it’s
more efficient & maintainable. There are only few players in DC segment
& is a good opportunity for growth. Along with DC pump, there is scope for
popularizing Sprinkler irrigation technology (a booster pump with additional
solar panel to boost pressure) could be used to reduce the water wastage.
O&M of Solar Installations: The
solar PV installations in India are not very old now but in few years they will
be out of warranty & would require O&M contractors to maintain these
assets. The user would get following benefits:
·
Optimization of plant production for increased
asset revenue
·
Reduction of risks for asset owners and
investors
·
Protection of asset value and longevity
·
Compliance with applicable regulations
·
Transparency on plant production, performance,
issues, risks and O&M activities
Hydro
Power: Mini & Micro Hydyl power promises a
clean energy without degrading the environment. India has a big network of
rivers & canal system. The commercially viable & technically suitable
locations can be used for generation of clean electricity.
Energy/REC Trading: RECs are interstate
tradable certificates issued for every unit of renewable energy produced.
Mechanisms such as these are essential to achieve NAPCC’s goal of increasing
the mandatory RE usage for states from 5% today to approximately 15% in the
next 10 years. Instead of producing RE by their own, states can purchase RECs
from each other to increase their RE content in total energy. This mechanism
will enable low RE potential states to purchase RECs from high potential
states, enabling them to meet NAPCC’s increased demands. Moreover, these
purchases will incentivize high RE potential states to produce more RE than
required currently, enabling overall increase in RE production.
Innovation
in Present Offerings:
·
R&D on renewable portfolio solutions to make
them affordable & reliable.
·
DC irrigation pumps with pressure booster pump
& sprinkler system.· Online / offline condition monitoring system for O&M of solar solutions.
Consultancy
on Sustainability: Over a period of time each country will
have to comply the international rules on emission reduction &
sustainability. Here lies the scope for consultancy to government/organization
on sustainability.
Consultancy & establishment of renewable Mini Grids: In India power availability is still an issue with its rural / hill area population & the current national grid is not delivering the same value to them as compared to urban population. Development of mini-grids would be major step to solve the power availability problem of the large strata of the population.
