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Saturday, October 20, 2007

Renewable energy projects in India bring solar power to forefront

article from: http://www.ecoworld.com/Home/articles2.cfm?tid=418

India becoming a Solar Power - India's Future Energy Demand to be met by clean green energy

by Avilash Roul

The world's largest solar steam cooking system at Tirupathi in Andhra Pradesh

Human civilization has been witnessing a gradual shift towards cleaner fuels-from wood to coal, from coal to oil, from oil to natural gas; renewables are the present demand...

With the fluctuating high cost of petroleum, minimizing dependence on importing conventional energy resources, stewardship to protect the Planet and providing affordable energy to all, countries including India have stepped up their energy path for harnessing indigenous renewable resources. To tap the infinite energy and transform as well as transmit it to each household, the Indian government has accelerated promotion of the use of universally available Solar Energy.

India due to its geo-physical location receives solar energy equivalent to nearly 5,000 trillion kWh/year, which is far more than the total energy consumption of the country today. But India produces a very negligible amount of solar energy - a mere 0.2 percent compared to other energy resources. Power generation from solar thermal energy is still in the experimental stages in India. Up till now, India's energy base has been more on conventional energy like coal and oil. However, India has now attained 7th place worldwide in Solar Photovoltaic (PV) Cell production and 9th place in Solar Thermal Systems. Grid-interactive renewable power installed capacity as on 31.10.2006 aggregated 9,013 MW corresponding to around 7 percent of the total power installed capacity which equates to over 2 percent of total electricity.

Worldwide photovoltaic installations increased by 1,460 MW in 2005, up from 1,086 MW installed during the previous year. That was a 67 percent increase over the 750 MW produced in 2003. In 2002 the world solar market increased 40 percent. Solar Energy demand has grown at about 25 percent per annum over the past 15 years. In 1985, worldwide annual solar installation demand was only 21 MW. According to the IEA's factsheet, "Renewables in Global Energy Supply," the solar energy sector has grown by 32 per annum since 1971. Worldwide, grid-connected solar PV continued to be the fastest growing power generation technology, with a 55 percent increase in cumulative installed capacity to 3.1 GW, up from 2.0 GW in 2004, as per "Renewable Global Status Update Report 2006" (http://www.ecoworld.com/Home/www.ren21.net). Similarly, India witnessed an acceleration of solar hot water installations in 2005. Global production of solar PV increased from 1,150 MW in 2004 to over 1,700 MW in 2005. Japan was the leader in cell production (830 MW), followed by Europe (470 MW), China (200 MW), and the US (150 MW).

In the sun during the day, providing lighting at night,a photovoltaic/battery lantern illuminates the home
India: Status of Solar Energy:

The solar PV program was begun in the mid 70's in India. While the world has progressed substantially in production of basic silicon mono-crystalline photovoltaic cells, India has fallen short to achieve the worldwide momentum. In early 2000, nine Indian companies were manufacturing solar cells. During 1997-98 it was estimated that about 8.2 MW capacity solar cells were produced in the country. The total installed manufacturing capacity was estimated to be 19 MW per year. The major players in Solar PV are Bharat Heavy Electricals Ltd. (BHEL) (http://www.bhel.com/bhel/home.php); Central Electrtonics Ltd., and Rajasthan Electricals & Instruments Ltd., as well as by several companies in the private sector. The latest, 100 million dollars investment from Tata BP Solar in India is the pointer towards the booming solar market in India. Of late, the market is growing for SPV applications based products with the active encouragement of the government.
The Ministry of New and Renewable Energy (http://www.ecoworld.com/Home/www.mnes.nic.in), earlier known as the Ministry of Non-conventional Energy Sources - have initiated innovative schemes to accelerate utilisation and exploitation of the solar energy. Number of incentives like subsidy, soft loan, 80 percent accelerated depreciation, confessional duty on import of raw materials and certain products, excise duty exemption on certain devices/systems etc. are being provided for the production and use of solar energy systems. The Indian Renewable Energy Development Agency (IREDA) - http://mnes.nic.in/annualreport/2004_2005_English/ch12_pg1.htm - a Public Limited Company established in 1987- provides revolving fund to financing and leasing companies offering affordable credit for the purchase of PV systems. As a result, the Renewable Energy Sector is increasingly assuming a greater role in providing grid power to the Nation as its total capacities reached about 9,013 MW. This apart, the Electricity Act 2003, National Electricity Policy 2005 and National Tariff Policy 2006 provide a common framework for the regulation of renewable power in all States/UTs through quotas, preferential tariffs, and guidelines for pricing 'non-firm' power.

However, in the Draft New and Renewable Energy Policy Statement 2005, which is yet be approved, the federal government is very cautious about the status of renewable energy in the future. It says, "despite the fact that the biomass-solar- hydrogen economy is some decades away, it should not make industry and the scientific & technical community of the country unduly complacent into believing that necessary steps for expected changes can wait."

Present Scenario of Solar Power:

The MNES has been implementing installation of solar PV water pumping systems for irrigation and drinking water applications through subsidy since 1993-94. Typically, a 1,800 Wp PV array capacity solar PV water pumping system, which cost about Rs. 3.65 lakh, is being used for irrigation purposes. The Ministry is providing a subsidy of Rs.30 per watt of PV array capacity used, subject to a maximum of Rs. 50,000 per system. The majority of the pumps fitted with a 200 watt to 3,000 watt motor are powered with 1,800 Wp PV array which can deliver about 140,000 liters of water/day from a total head of 10 meters. By 30th September, 2006, a total of 7,068 solar PV water pumping systems have been installed.

A total of 32 grid interactive solar PV power plants have been installed in the country with financial assistance from the Federal Government. These plants, with aggregate capacity of 2.1 MW, are estimated to generate about 2.52 million units of electricity in a year. In 1995, an aggregate area of 4 lakh square meters of solar collectors were installed in the country for thermal applications such as water heating, drying cooking etc. The thermal energy generated from these devices was assessed at over 250 million kwh per year. In addition, solar PV systems with an aggregate capacity of 12 MW were installed for applications such as lighting, water pumping, communications, etc. These systems are capable of generating 18 million kwh of electricity per year. In 2003 alone, India added 2.5 MW of solar PVs. For rural electrification as well as employment and income generation, about 16,530 solar photovoltaic lighting systems were installed during 2004-05. Over 150,000 square meters of collector area has been installed in the country for solar water heating in domestic, industrial and commercial sectors making the cumulative installed collector area over one million square meters. State-wise details of cumulative achievements under various non-conventional energy programmes, as on 31.03.2006 are shown in the table below:

for table see: http://www.ecoworld.com/Home/articles2.cfm?tid=418

MINISTRY OF NON-CONVENTIONAL ENERGYFUNDED PHOTOVOLTAIC OUTPUT BY STATE

Government-funded solar energy in India only accounted forapproximately 6.4 megawatt-years of power as of 2005

Similarly, India's Integrated Rural Energy Program using renewable energy had served 300 districts and 2,200 villages by early 2006. More than 250 remote villages in seven states were electrified under the program during 2005, with additional projects under implementation in over 800 villages and 700 hamlets in 13 states and federal territories (see table below). Rural applications of solar PV had increased to 340,000 home lighting systems, 540,000 solar lanterns, and 600,000 solar cookers in use.

INDIA'S INTEGRATED RURAL ENERGY PROGRAMREMOTE VILLAGES SELECTED FOR SOLAR ELECTRIFICATION

By 2006 over 2,400 off-grid villages in India hadreceived solar thermal and photovoltaic systems

Future Plans:

An Expert Committee constituted by the Planning Commission has prepared an Integrated Energy Policy that aims at achieving integrated development and deployment of different energy supply sources, including new & renewable energy. The grid-interactive renewable power installed capacity is expected to reach 10,000 MW as on corresponding to a share of over 2 per cent in the electricity-mix, by 31.3.2007. Further capacity addition of 14,000 MW is envisaged during the 11th Plan (2007-12) leading to a then share of around 5 per cent in the electricity-mix but mostly through hydro-power. A 10 million square meter solar collector area capable of conserving electricity equivalent to that generated from a 500 MW power plant is expected to be set up by 2022. India has recently proposed to augment cooking, lighting, and motive power with renewable in 600,000 villages by 2032, starting with 10,000 remote off-grid villages by 2012.

External Support:

A four-year $7.6 million effort was launched in April 2003 to help accelerate the market for financing solar home systems in southern India. The project is a partnership between UNEP Energy Branch, UNEP Risoe Centre (URC), (http://uneprisoe.org/) two of India's major banking groups - Canara Bank and Syndicate Bank, and their sponsored Grameen Banks. As per the existing policy, Foreign Direct Investment up to 100 percent is permitted in non-conventional energy sector through the automatic route. The FDI received in non-conventional energy sector from January 2003 to September 2006 is estimated at around Rs.35 crore. The Multilateral Development Banks like World Bank and Asian Development Bank are also helping India to achieve its potential on renewable resources. But, the funding from MDBs on solar energy enhancement is negligible compare to other clean energy support in India.

solar energy in India article at: http://www.ecoworld.com/Home/articles2.cfm?tid=418

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WARNING: Investing in common equity of public companies is a high risk, high potential reward activity. Owning investments in individual alternative energy companies is for high risk investors only, and medium risk investors should consider green mutual funds, clean energy funds, renewable power index funds and other sector plays. Even then, these should be owned as part of a widely diversified portfolio. There is a gathering mania for investing in publicly-traded alternative energy companies, similar to the computer, technology, internet and banking / real estate booms of the past two decades. There will be some nasty corrections along the way, and some years from now when they come crashing down en masse, the world will still benefit from all the amazingly advanced clean and efficient energy technology created during the bull run. (Above note re-written March 2009 as my earlier prediction of a market top and a crash in the sector starting in August '09 was hastened by the credit markets collapse and began in August 2008, before the bubble had fully formed. Of all the sectors in the equity markets, clean energy has the best prospects to assume market leadership and public favour; we are bouncing aong the bottom still, and those who have followed our guidance to begin including (in a judiciously blended portfolio of cash, bonds, stocks and yes, um... real estate) green energy investment funds dollar-cost-averaging programs in Winter and Spring of 2009 are well positioned for longterm capital growth.)

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