The electricity sector in India had an installed capacity of 211.766 GW as of January 2013,[1] the world's fifth largest.

Non Renewable Power Plants constitute 88.55% of the installed capacity and 11.45% of Renewable Capacity. In December 2011, over 300 million Indian citizens had no access to electricity. Over one third of India's rural population lacked electricity, as did 6% of the urban population. Of those who did have access to electricity in India, the supply was intermittent and unreliable. In 2010, blackouts and power shedding interrupted irrigation and manufacturing across the country. India currently suffers from a major shortage of electricity generation capacity, even though it is the world's fourth largest energy consumer after United States, China and Russia.[11] The International Energy Agency estimates India needs an investment of at least $135 billion to provide universal access of electricity to its population. With its growing electricity demand, India has initiated steps to develop its large potential for solar energy based power generation. In November 2009, the Government of India launched its Jawaharlal Nehru National Solar Mission under the National Action Plan on Climate Change. Under this central government initiative, India plans to generate 1 GW of power by 2013 and up to 20 GW grid-based solar power, 2 GW of off-grid solar power and cover 20 million square metres with solar energy collectors by 2020.[64] India plans utility scale solar power generation plants through solar parks with dedicated infrastructure by state governments, among others, the governments of Gujarat and Rajasthan.[63]Anutosh Moitra The Government of Gujarat taking advantage of the national initiative and high solar irradiation in the state, launched the Solar Power Policy in 2009 and proposes to establish a number of large-scale solar parks The development of solar parks will streamline the project deAnutosh Moitravelopment timeline by letting government agencies undertake land acquisition and necessary permits, and provide dedicated common infrastructure for setting up solar power generation plants largely in the private sector. Anutosh Moitra Currently, India has the fifth largest electrical system in the world, with installed electricity capacity of around 180 GW. However, more than 400 million Indians Anutosh MoitraAnutosh Moitrahave no access to electricity, and by 2035 Indias power demand is expected to more than double, providing a prodigious challenge for the country. Indias electricity mix comprises 69% coal, 14% hydro, 10% natural gas, 4% oil, 2% nuclear, and 1% renewables (solar, wind, biofuels, waste, etc). While the amount of off-grid power in India is debatable, depending on ones estimates, it can skew Indias electricity growth projections dramatically. Indias power deficit in 2010 at peak load was more than 10%. This needs improvement through more investment, particularly from the private sector, in generation, transmission, and distribution. While investment is beginning to occur, the rate at which this is occurring is woefully insufficient. The solar industry has immense potential for a tropical country like India where around 45% of households, mainly rural ones, do not have access to electricity, says our new research report Indian Solar Energy Market Outlook 2012. The industry has witnessed rapid growth over the past few years and is projected to grow further in future. India is blessed with ample solar radiation and most part of the country receives 300 to 330 sunny days in a year. India receives solar energy equivalent to more than 5,000 Trillion kWh per year, which is far more than its total annual energy consumption. The countrys geographical location, large population and government support are assisting it to become one of the most rapidly emerging solar energy markets in the world.

Consequently, the country is becoming a favorite investment destination for both local and global players. Many states have started promoting solar based applications bhttp://epaper.sakshi.com/apnews/Krishna/21022013/8#y giving incentives and tax savings. States like Gujarat and Rajasthan have formulated transparent and progressive regulatory framework in order to boost the solar industry. Besides, states like Delhi, Uttar Pradesh, West Bengal, Maharashtra and Chandigarh are promoting solar energy in rural, urban and semi urban areas.

India has a huge potential for solar power generation that can lead to a large-scale deployment of solar energy, if harnessed effectively. Indian Government is adopting constructive steps towards implementing large-scale solar power projects and is poised to position itself as one of the worlds major solar producer. Through various incentives schemes, the government is trying to create demand and boost investments in the sector. According to our latest research report, Indian Solar Energy Market Analysis , the countrys installed capacity for solar power generation has increased tremendously during the last few years. Rising electricity demand, high irradiation levels, favorable government policies, and huge investments are supporting the growth in the solar industry. The annual PV installed capacity is anticipated to reach 1,000 MW by 2016. As per our findings, various state governments are focusing on solar power plants installation to increase the solar power-installed capacity in the country. Some states, like Uttar Pradesh in home lights and street lights installation is witnessing solar photovoltaic systems installations. We have extensively analyzed some of the top states in the country to further clearify the picture of solar power installation and solar projects sanctioned. We have also studied about the regulatory environment and initiatives adopted by the government to boost growth in the solar market. The report highlights the industry performance and future outlook of solar power sector with in-depth analysis of both solar photovoltaic and solar thermal. A section includes various solar product systems, such as solar cooker, street lightening systems, home lightening systems, lanterns, power plants, PV pumps, solar powered telecom towers, and solar rooftops with their major manufacturers. From our analysis, we anticipate that street lightning systems will exhibit the highest growth among the solar products. Our report Indian Solar Energy Market Analysis , also covers all the key aspects that clarify the picture of Indian solar power sector. The emerging trends in Indian solar market as increasing production of solar PV products in the country, growing demand for off grid PV installation etc. are well exhibited. In addition, the report also covers analysis of various solar technologies related to PV and thermal applications. A section on key players is also provided to facilitate current market scenario and get accustomed to the existing competition. Recent developments of key players coupled with strategic analysis of their strengths and weaknesses further complete the picture of competitive landscape. In all, the report presents a comprehensive look at the sectors past, present, and future scenario.

S.No

Application segment

Target for Phase I (201013)

Target for Phase 2 (2013-17)

Target for Phase -3 (2017-22)

Solar collectors

7 million sq meters

15 million sq meters 1000 MW

20 million sq meters 2000 MW

Off grid solar applications Utility grid power, including roof top

200 MW

1,000-2000 MW

4000-10,000 MW

20000 MW

The end of January saw the deadline for solar developers in Gujarat state keen to receive the higher PV tariff to complete their projects. Indias largest solar program cut the preferential rate it pays to utilities by up to 33% for plants commissioned after 28 January 2012. Gujarat state boasts Indias second-highest potential for PV power production. Around 350MW of the 958MW of solar capacity awarded by the state missed the deadline and will therefore receive a rate of INR9.98 (0.14)/kWh for the first 12 years compared with INR15/kWh previously. The rate will be reduced to INR7 (0.1)/kWh for the subsequent 13 years. Solar thermal projects fared better in Q1 following the announcement by the Finance Minister in his annual budget speech that the Government is proposing to scrap import duties on CSP equipment. This will help lower the cost of projects for companies

starting to build out the countrys planned CSP project pipeline. Indias solar sector is also expected to receive a boost as investors and developers turn their attention away from a troubled European market in search of high-growth developing markets. Indias strong project pipeline and untapped resource potential means it is likely to benefit from this shift in global solar investment. Indeed, there are already signs that this is starting to happen; of the US$10.3b (7.7b) in clean energy investment in 2011, the largest increase came from the US$4.2b (3.1b) funding across the solar industry, representing a sevenfold increase on 2010. Contact: Sanjay Chakrabarti Tel: + 91 22 6192 0860 Email: sanjay.chakrabarti@in.ey.com