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India Business Express presents useful information on India's industries, markets and consumers, focusing on a Sector/Market in each issue.

The Content is based on our past and current research.

“I’d put my money on the sun and solar energy. What a source of power! I hope we don’t have to wait till oil and coal run out before we tackle that”. – Thomas Alva Edison

• Power generated by harnessing solar energy for heat.
  
  
• It is sustainable, clear, low emission source of energy.
  
  
• Still more expensive than fossil but it will soon be competitive.

India needs Energy


Note: TPES Total Primary Energy Sapplied, BWH Billion Watt Hours
Source: World Energy Investment Outlook, 2004, KPMG Report

• India will need to add 500 MW of Power capacity every week for next 20 years.
  
  
• Overall growth likely to increase energy demand by more than 6-7 times in the next two decades.
  
  
• To alleviate current peak power deficit of ~18%, India needs to substantially increase power generation capacity.
  
  
• The peak power deficit has resulted in increased power prices in the last few years, which has further resulted in the loss of competitive advantage in many manufacturing units.

India, situated in the sunny tropical belt of the world has the ideal combination of high solar insolation and a huge potential consumer base density

• The Grid-interactive solar power is 2.12 MW
  
  
• India’s solar power reception (potential) is about 5,000 trillion kWh per year, thousand times greater than the demand by 2015.
  
  
• India’s annual solar energy production is 1,700-1,900 kWh, among the highest in the world.
  
  
• The daily average solar energy incident over India varies from 4 to7 kWh/sq mtr. With around 250-300 clear sunny days and around 2300-3200 sunshine hrs per year, depending on location.
  
  
• The highest annual global radiation is received in Rajasthan and Northern Gujarat, whereas the lowest in the north eastern regions.
  
  
• Solar power can help 390 million Indians without access to grid electricity.

India shining bright


Source: Business Today

Solar Power Technologies

Solar Photovoltaics (PV)

Photovoltaic (PV) is the technical word for solar panels that create electricity. It is the process in which electricity is generated directly from sun rays. Photovoltaic material, most commonly utilizing highly-purified silicon, converts sunlight directly into electricity. When sunlight strikes the material, electrons are dislodged, creating an electrical current which can be captured and harnessed. The photovoltaic materials can be several individual solar cells or a single thin layer, which make up a larger solar panel. Solar PV market grows steady despite high costs.

• The Capital cost of Solar PV plant is around USD 5000/KW.
  
  
• The total turnover of the Industry is over USD 500 million.
  
  
• The key players in Indian Solar PV market are BHEL, BEL, Tata BP Solar, Maharishi Solar Technology, Synergy Renewable Energy, Schott solar, Moser Baer, and Signet Solar India.
  

Solar Thermal Power

Solar thermal electricity technologies (also called concentrating solar power, or CSP) produce electric power by converting the sun`s energy into high-temperature heat using various mirror configurations, which is then channeled to an on-site power plant and used to make electricity through traditional heat-conversion technologies. The plant essentially consists of two parts: one that collects solar energy and converts it to heat, and another that converts the heat energy to electricity.

• The Capital cost of a Solar Thermal plant is around USD 4000/KW.
  
  
• The installation per 1,000 people in India is 0.52.
  
  
• The cumulative collector area in India has grown steadily from 119,000 square metres in 1989 to more than 1.66 million square metres in March, 2007.
  
  
• The ministry of new and renewable energy has predicted a gross potential of about 30 million square metres of collector area.
  
  
• India’s first CSP plant is being set up by Mathania Power in Rajasthan.

Government Incentives

• Government is pushing solar products in the market through incentives and awareness programmes.
  
  
• 50 MW solar power plants have been considered for the 11th five year plan.
  
  
• Financial assistance amounting upto Rs 12 per KW hour in case of solar PV and upto Rs 10 Per KW in case of thermal Power plant.
  
  
• Maximum 5 MWp of grid interactive PV power generation Project is allowed to the project developer.
  
  
• The grid interactive solar PV power generation projects will be undertaken on Build
  Own and Operate basis.
  
  
• Setting up of captive grid interactive Solar PV power plant or captive utilization of
  solar PV power is not covered under the generation based incentive scheme.

Solar India: Some of the Players & Investments

Cost Economics

• Solar power is commercially not viable due to high initial costs of deployment. The Capital Cost of Solar Power Generation is around USD 3.5-4.5 million/MW.
  
  
• The cost of production ranges from USD 0.27 to USD 0.35 per unit compared to around USD 0.04 to USD 0.13 a unit for conventional thermal energy

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