Solar Power: Sustainable solution to India’s Energy Needs
Solar Photo voltaic is proven technology with more than 1,75,000 MW of installed capacity over the world. Europeisa pioneer
and leader in solar power installations with countries like Germany,Italy, France and
United Kingdom at the forefront.These countries promoted solar PV since last
decade by providing attractive tariffs for sale of solar energy. At the end of
the 2014 total installed capacity in Europe stands at about 90,000 MW. Solar
energy is important source of energy with some of these countries sourcing more
than 7% of total energy.
Following suite, since last three
years, installations in the Asia-Pacific region and America are also beginning
to catch up.China, Japan and US added about 30,000 MW of capacity in 2014 alone.
This is more than 75% of capacity installed during the year in the world.India
has installed about 1,000 MW during this period.
India is blessed with one of the
highest solar resource in the world. On an average 4 to 7 units of energy are incident
per square meter. An average of 250-300 sunny days are available when solar
plant can generate power close to its maximum efficiency.To meet rapidly
increasing demand of electricity, India has set target of 1,00,000 MW capacity by
2022. To achieve this target, Central Government has provided benefits - Accelerated
Depreciation, Tax Holidaysfor revenue generated from Renewable Energy and Solar
Energy Purchase Obligations for promoting solar power projects in the country.In
addition, Central and State Governments have come up with various incentives
and schemes to achieve this target. Due to these efforts, installed capacity of
solar power projects in the country has crossed 4,000 MW.
Large, utility scale solar power
projects have been the centre of attraction in India thanks to implementation of
the National Solar Mission and Reverse Bidding in States. Governments have facilitated such
projects by providing developers with land permission, single window clearance,
power evacuation facility and subsidies. Due to these efforts, large-scale grid
connected projects make up most of the solar capacity in the country.Recently
opened bids in Madhya Pradesh have resulted in a tariff of as low as Rs. 5.05 per
unit for 25 years.
This isa record low price for solar power generation in the
country.Cost of electricity from coal is about Rs. 2.50 to Rs. 3.50 per unit
which is only going to go up in the near future.Ministry of New and Renewable
Energy (MNRE) has proposed a Scheme for Development of Solar Parks and Ultra
Mega Solar Power Projects in the Country. Under this scheme, utility scale solar
power projects of capacity 20,000 MW have been planned by year 2019.
Maharashtra is the leader in
industrialization as well as power capacity in India. However, demand for power
is expected to outstrip supply rapidly in the coming years. Solar energy can be
an important contributor to electricity supply mix in the state. To tap the
huge potential for solar energy in the state, Government of Maharashtra has
approved policy on renewable energy which targets installation of 7,500 MW of
solar power projects in next 5 years. The projects will get deemed NA
permission, deemed industry status, deemed open access permission. There will
be no need for no-objection certificate and consent letter from the MPCB and
method for registration with the Maharashtra Energy Development Agency would be
simplified. Success of these projects will depend on provision of
infrastructure such as land, water and evacuation facility by the government.
Onsite solar i.e. solar on rooftop or
within the consumer premises, promises to provide answers to multiple
challenges faced by India in its quest to provide electricity to its entire
population.One of the key advantages of onsite solar power is its modularity.
Vacant land or rooftop in the consumers’ premises can be used to install solar
power plants. The system can be synchronised with the internal grid and backup
diesel generator. It can also be easily dismantled when required. Typical
rooftop solar power plant consists of solar panels, inverters for converting
direct current to alternating current, monitoring systems and balance of system
including mounting structures and other electrical components. The Government
has recognized the inherent advantages of on-site solar power. This is
reflected in the significant share of on-site solar in capacity targets –
onsite solar has been allocated a target of 40,000 MW out of the total target
of 100,000 MW.
To promote onsite solar energy,
Maharashtra Electricity Regulatory Commission (MERC) has published Draft Net
Metering for Rooftop Solar Systems Regulations, 2015. As per these regulations,
any consumer subject to fulfilment of specified conditions, can install grid
synchronized solar power plant of capacity up to 1,000 kW in the premises. Any
excess power generated by solar power system during holidays can be injected into
the grid and consumed later. Final regulations are expected to be notified
after stakeholder consultation.
Due to rapidly increasing tariffs for
industrial and commercial consumers, solar energy has become a viable
alternative to replace daytime consumption. A typical solar power plant lasts more
than 20 years and provides substantial cost saving over its lifetime.There are
two options for sourcing Onsite Solar power. Consumer can invest in a solar
power plant installed in their own premises. Alternatively, an external investor
may install a solar power plant in the consumer’s premises and sell power to
consumer at a pre-determined rate.
Apart from Cost savings in electricity
bill and tax benefits associated with accelerated depreciation, following are
some of the added advantages of solar energy:
- Long term visibility on energy costs
- Utilize vacant rooftop space
- Add to facility’s aesthetics
- Address company’s sustainability goals
Considering
the limitations of acquiring land and setting up large scale transmission
infrastructure, on-site solar provides a faster and more efficient way of
addressing our energy requirements. Many large consumers have already installed
solar plants on their rooftops and spare land in their premises. As consumers
become more familiar with solar power, it is expected that it will be adopted
faster and at a much larger scale.
About the Author:
Ashish Tikhe
is Manager – Policy and Regulations at Sunshot Technologies Pvt. Ltd.
Sunshot
Technologies provide On-Site Solar Power solutions to industrial and commercial
consumers in the country.
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