Arunodaya

Let’s wake up to the Sun!

HIGH LEVEL EU-INDIA DIALOGUE

SOLUTIONS FOR SUSTAINABILITY
IHC, NEW DELHI , 04 FEB 2009

‘ India lives in her villages’
~ Mahatma Gandhi
India Facts & Figures
• 72% of our population lives in rural India.
• 80,000 villages still remain unelectrified.
• 35% of our population still remains illiterate.
• 127th rank out of 162 nations in UN’s HDI
• Rural telecom, rural banking, irrigation pumps
continue to falter due to lack of stable power.
• India imports about 3/4th of our crude oil, and
the country's oil bill accounts for 37% of total
value of all imports. ($ 83 billion in 2007-08)
 WHY GO SOLAR
ENERGY SECURITY:

•Average Power Demand- Supply gap of 12%, peak gap of 16.7%!!

•Rate of economic growth is 9% p.a.while power sector growth is 5-6%.

•This, when 412 million Indians have NO access to electricity.

•India needs to tap ALL possible sources of power – thermal, hydro,

nuclear as well as renewable – solar, wind, bio.

•India imports 78% of oil requirement. Will rise to 90% by 2030.

Dependence on Persian Gulf.

•53% of power produced from coal, which will not last beyond 2040/50

•Nuclear will play a marginal role. (10% of total by 2030)

•Renewable Energy, Energy Efficiency and Conservation are key.

 WHY GO SOLAR
•INDIA UNIQUELY PLACED TO TAP SOLAR (8º4 N – 37º 6’ N)

•SOLAR IS CLEAN & GREEN: No GHGs. A kilowatt solar plant can

reduce carbon emission by 1 tonne: Helps Fight Global Warming and

Climate Change

•FREE & FOREVER

•SUSTAINABLE & ABUNDANTLY AVAILABLE:300 clear sunny days

in a year equivalent of 5000 trillion kWh/year

•MODULAR AND SCALABLE: From Lanterns to MW-size plants

DEMOCRATIC: DECENTRALISED DISTRIBUTED GENERATION

•ECONOMICALLY EFFICIENT: NO OR LOW MAINTENANCE COST

•NOT DEPENDENT ON GEOGRAPHY OR SCALE, NO R & R ISSUES

 Introducing: Solar Power

• Sun is a massive source of heat and light.

• India receives abundant solar radiation.
• Two distinct solar technologies:

Solar Photo-Voltaic (SPV) Solar Thermal Systems

• Converts sunlight into electricity. • Technology to heat water or air.

• Silicon based technology. • Black body absorption.

• Electricity can be used to power • Copper or evacuated glass tubes .

lights, fans, PC, TV etc… • Cost effective solution.

• The SPV panels are known as • Water heating panels are

“SOLAR PV MODULES” ”SOLAR COLLECTOR”

Typical PV system components
Hybrid System

Grid

Wind Solar PV Array

Generator
Array Junction
DG SET Box
Main Junction
Box

Wind Charge Power Conditioning

Controller Unit

LOADS

AC
Distribution
Board

The Solar PV system can operate

along with other sources like Wind
Generator, Diesel Generator and
Battery Bank Grid to power the loads.
 Significant Projects

110 kWp SPV Power Plant for 2 X 33 kWp SPV Standalone

Tata Electric at Walwhan Dam system for giant telescopes
Lonavala (1996) in the Himalayas (2004)

Building Integrated PV
Pune, India (90 kWp) (2006)

100 kWp Roof top SPV Grid Connect

System on Vidhana Soudha, Bangalore 200 kWp SPV Power Plant for PEDA
(2005) at Nawansheher District, Punjab (2002)

Note: A 100kWp system generates 130,000 Units/year and occupies a flat area of 1000 sqm on ground.
Significant Projects
EMPOWERING RURAL INDIA …
THROUGH THE POWER OF THE
SUN
 Medium and large Power Packs ...
FOR REMOTE VILLAGE ELECTRIFICATION

Medium and large power systems:

• UPS type AC-Solar Hybrid system
• Solar Preference Hybrid system
• Stand alone solar systems
 Power conditioning units
• Microcontroller based Mosfet /
IGBT based system
• MPPT Solar Charger
• True sinewave inverter with active
waveform correction with good Ladhak
dynamic response
• Grid-Charging & Grid-Export
• D.G. Set activation
• Computer interface option
• Data logger in large system
Andaman Nicobar Islands
 Rural Electrification.

Issue: 80,000 villages still need remain un-electrified.

Quality power not available
Needs Solutions

• Urban/Semi urban backup •Small power packs

power •UPS for powering computers in rural
banks etc

• Rural Electrification •Mini Solar Power Plants

giving AC power for local

distribution grid.
 Solar PV – An attractive option for Rural Areas
Electrification

• Uneconomical to extend the grid to villages located in remote areas/

sparsely populated areas

ACTIONS NEEDED:
• Prioritise areas suitable for solar energy programmes
– Remote and difficult areas
– Mainstream villages
• Government to play the role of a facilitator through appropriate
guidelines and standards
• Provide information support and awareness to villagers
• Provide micro-finance through regional rural banks & NBFCs
• Promote post-sale service as an employment / income generating
opportunity for the local population
• Promote phase-wise implementation depending on the need
Global PV Market

World Photovoltaics Market in 2007

2826 Megawatts Germany

Rest of Europe Rest of World

6% 8% Spain

USA Japan
8%

Germany
USA
47%
Rest of Europe
Japan
8%
Rest of World

Spain
23%
 Global PV Market
Trend 2000-06 Projections 2007-12
2000
1815 20.0
YOY Growth Avg: 44%
1600 16.0 Slow growth
Conservative 16.3
1256 Likely
Likely
1200 12.0 High growth
Accelerated 11.4
MW

GW
750 8.0 7.7
800
560
401 4.0
400 287
202
0.0
0 2006 2007 2008 2009 2010 2011 2012
2000 2001 2002 2003 2004 2005 2006
Source: Navigant
Source: Photon International

• Nascent rapidly growing market • Projected growth of 30-40% y-o-y

• Mainly driven by Germany & Japan • Key growth drivers:
• India 1.4% of global market in 2006 - Feed in tariffs / grid parity
• Market driven predominantly by grid - Energy security
connect systems while India market is - Carbon pricing
essentially Off-grid

Global market to grow 6 fold ……… 1.8GW to 11.4 GW

 Global PV Market
• World solar PV market installations reached a record high of 2,826 megawatts (MW)
in 2007, representing growth of 62% over the previous year.
• Germany's PV market reached 1,328 MW in 2007 and now accounts for 47% of
the world market. Spain soared by over 480% to 640 MW, while the United States
increased by 57% to 220 MW. It became the world's fourth largest market behind
Japan, once the world leader, which declined 23% to 230 MW.
• World solar cell production reached a consolidated figure of 3,436 MW in 2007, up
from 2,204 MW a year earlier. Japanese producers continue to lose ground, only
accounting 26% of global production. Chinese manufacturers raised their share from
20% in 2006 to 35% in 2007.
• Despite polysilicon production for both solar and semiconductor use rising 30% in
2007, it remained the most capacity constrained part of the PV chain. 21 new
entrants started manufacturing polysilicon during the year.
• Meanwhile, thin film production more than doubled from 181 MW in 2006 to 400 MW
in 2007, accounting for 12% of total PV production.
• The PV industry raised nearly $10 billion in 2007. 84 identified financial transactions
accounted for $7.5 billion in 2007, Of this amount, $5.3 billion came in the form of
equity financing, while $2.2 billion came from debt financing.
• The PV industry generated $17.2 billion in global revenues in 2007.
• SOURCE: http://register.solarbuzz.com/
INDIAN SOLAR SECTOR
LATEST DEVELOPMENTS

PM’s National Action Plan SIPS: To promote

On Climate Change: Semi-conductor fabs
Investment proposals
National Mission on For Rs. 136,000 crore
Solar energy Rec’d.
Silicon Wafers
and cells mfg.

Rising public awareness:

Grid -connect Policy of Crude touching $147/brl
Indian Govt for Global Warming
Solar Power Climate Change
Uptake of R E

India has to add 14000 MW from Renewables during XI Plan (2007-12)

 National Solar Mission
• Leadership – Vision, Mission and Goal
 To be a Global leader in Solar Electricity – 10,000 MW by 2020
 Impacting Carbon displacement, job creation, Grid parity before 2020
 Electricity to all village households
 Set up global scale testing, certification & technology expertise
• Extend FIT till 2017
 Upgrade grid
• Progressive measures – Carbon tax, higher charges to polluters
• New fossil fuel generation project to include minimum 5% solar generation
• IT benefits (100% depreciation) and preferred loans to house holds
• Replace diesel pumps and kerosene lamps by Solar through incentives
• Priority Sector Lending
Solar Power: Success factors and key
challenges

Key challenges
• Tariff levels that are attractive to investors
• Overcoming natural utility reluctance to distributed
generation
• Procurement of large land tracts in high solar
insolation areas for grid connected solar plants
• Current levels of fuel subsidy that solar power
competes against – eg Kerosene subsidy. (Rs.
40/litre)
 Solar Power: Success factors and key
challenges
Success factors
• Policy that helps drive scale to reduce cost and create
delivery capacity.
• Feed in Tariffs are most successful policy measures for
attracting capacity growth– critical factors have been
attracting private investment funds – e.g. Germany
• Building standards for new construction that mandates
distributed generation and energy efficiency help drive
innovation – e.g. Korea and France.
• Policy that recognizes solar as an economic alternative
to kerosene lighting or diesel generation and
encourages changes of behavior.
 Enablers for widespread
deployment of solar electricity
2 Reg
a ncial ul
F i n
tives Prac atory
1 In c en tices

3
Local participation

Excitement
Accelerating

Market
Solar
6 Com
Info mun C h ain 4
. Te .
chn & ply
oloy Sup ogistics
&L
5
 Policy Support

• Solar energy - To be seen as a solution to India’s energy security

• Concept of Solar Nation through Creation of ‘Solar Fund’ to incentivise Solar
Investment.
• Mandate all new corporate and commercial buildings with connected load >
500 kW to install solar power generation of at least 5% of their requirements.
• Create Model Townships of MW scale – 1 per state to start with
• Provide single window clearance for land acquisition
• Introduce wheeling and banking for solar energy– to promote large plants and
encourage captive usage
• Incentivise and reward industrial users to adopt solar energy by way of tax
exemption, depreciation etc
• Encourage R&D and domestic technology development
Various PV technologies
India’s Solar potential amongst highest in the world
Various approaches to generate and stimulate Solar demand
Various approaches to generate and stimulate Solar demand
Possible mechanisms to scale up Solar
 Key Learnings

Avoid market
Policy stability distortions by Beneficiaries Targeting
is an absolute keeping the must have a segments
must support stake in project to lower costs
continually performance
adjusting
 PV Subsidies – A Key Enabler
• Subsidies and Incentives increases PV market volumes
• Increased demand drives manufacturing and trading
• Has an impact to reduce PV total costs
• Will lead to technology enhancements
• Examples of successful subsidy schemes – Japan, Germany & Spain
• Employment creation by PV industry
• Provides Energy security to Nation
• Reduces dependency on coal and oil imports
 Energy Solutions to eradicate Poverty

BIG SOLUTIONS Energy Poverty is a big problem. Big problems require big solutions.
FOR BIG PROBLEMS Abundant availability of electricity in rural villages help increase
income and assets of rural households

-Have the organization and financial resources to develop supply chain

PRIVATE SECTOR AS ENGINE -Are motivated to develop new markets at the base of the pyramid
FOR ENERGY SUPPLY -Are partners in national development and wealth creation
-Necessary that the efforts are shared
-Have competitive business models to build on

OPPORTUNITIES FOR -Each player to engage with cluster of Panchayats / villages / states
BIG PLAYERS -There are multiple motivations to do
-Can draw upon experience of global players in other countries

AND FOR EVOLUTION OF ESCOs Franchise style micro entrepreneurs in a good institutional set up

Energy equity is path to social equity. India lives in its village.

WHY THIS, WHY NOW? India’s prosperity can be guaranteed only through rural prosperity and
Widespread development
 18
Feed in Tariffs
16
Tariff (Rs / kWh)

14 Tariff
12
Disruptive technology advancements

10

8
Indigenisation

6 Materiality / Scale

4
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Ye a r

Block of two years

2010 / 11 2012 / 13 2014 / 15 2016 / 17 2018 / 19 2020 / 21

Tariff (Rs / kWh) 16 16 12 10 7.5 6

MW Added (Under policy) 400 1000 1000 1000 1000 1000
MW Added (Outside - - - - 500 1000
policy)
Cumulative MW 400 1400 2400 3400 4900 6900
Tariff Support (Rs 1051 3679 5431 6745 7512 7950
Crores)* * Support after deducting normal tariff of Rs 3.50/kWh
EU- INDIA COOPERATION IN
SOLAR SECTOR
EU-INDIA FLAGSHIP Prog
On SOLAR EU MEMBER STATES DEV’T
Announced in 2007: & ECON COOP. (DFID, GTZ
SIDA, DANIDA ETC.) OR
WHERE ARE WE? THRU INDIAN/ EU NGOs:
WHAT’S COOKING UP? Adopt clusters of villages/
districts for solar lighting

EC-INDIA DEVELOPMENT
COOPERATION: FP 7: RESEARCH PROJECTS
STATE PARTNERSHIP JOINT CALL FOR PROPOSALS
WITH RAJASTHAN Transfer of Technology
& CHHATTISGARH: IPR issues
ADD RURAL SOLAR Financing: EIB
ELECTRITIFICATION
 JOINT WORK PROGRAMME,
EU-INDIA CO-OPERATION ON ENERGY, CLEAN DEVELOPMENT
AND CLIMATE CHANGE

• Work together to advance co-operation on achieving safe, secure, affordable and

sustainable energy supplies under the auspices of the India-EU Energy Panel and its
Working Groups.
• Intensify discussions, information sharing and co-operation on coal and the full range
of clean coal technologies in the EU-India Coal and Clean Coal Technologies
Working Groups.
• Promote energy efficiency and energy conservation through the International
Partnership for Energy Efficiency Co-operation, complemented by bilateral activities
as appropriate.
• Conclude negotiations on an agreement for co-operation in the field of Fusion Energy
Research.
• Facilitate networking of institutions for research & development in the field of
renewable energy.
• Identify joint priorities for future research co-operation under the EU’s 7th Framework
Programme and seek to launch specific co-operation activities in selected fields of
research related to energy, environment and climate change including renewable
energy sources, such as solar, wind, biomass, waste-to-energy and research in Clean
Coal Technologies (CCT).
 JOINT WORK PROGRAMME,
EU-INDIA CO-OPERATION ON ENERGY, CLEAN DEVELOPMENT
AND CLIMATE CHANGE

• Work together to advance co-operation on achieving safe, secure, affordable and

sustainable energy supplies under the auspices of the India-EU Energy Panel and
its Working Groups.
• Intensify discussions, information sharing and co-operation on coal and the full range
of clean coal technologies in the EU-India Coal and Clean Coal Technologies
Working Groups.
• Promote energy efficiency and energy conservation through the International
Partnership for Energy Efficiency Co-operation, complemented by bilateral activities
as appropriate.
• Conclude negotiations on an agreement for co-operation in the field of Fusion Energy
Research.
• Facilitate networking of institutions for research & development in the field of
renewable energy.
• Identify joint priorities for future research co-operation under the EU’s 7th
Framework Programme and seek to launch specific co-operation activities in
selected fields of research related to energy, environment and climate change
including renewable energy sources, such as solar, wind, biomass, waste-to-energy
and research in Clean Coal Technologies (CCT).
 Indian PM at the EU-India Summit

• “India today has a renewable power capacity of

over 12,000 MW, constituting around 8% of the
total installed capacity in the country. However,
almost none of this comes from grid connected
solar power. We have recently begun work on a
50 MW demonstration solar power program in
public private partnership mode. We have also
launched a National Solar Mission as part of our
National Action Plan on Climate Change. I
believe solar energy can emerge as a priority
area of our cooperation.”
 Arunodaya
Solar Awareness Creation Programme

anil.patni@tatabp.com
www.tatabpsolar.com