WHY SOLAR POWER PLANT? Is it that feasible ?
Research
and studies over the past few years have revealed that substantial climate
change is now inescapable and that it poses a bigger risk to mankind’s everyday
lives and the World around us. The world needs to quickly identify and promote
those renewable energy solutions that can immediately cut global greenhouse gas
emissions, and where possible, Begin to address other areas of risk such as
energy security and the provision of safe water for human consumption.
With its abundance of sunlight, India has
tremendous potential to emerge as one of the leaders in solar power generation.
According to the Government of India’s policy for the solar sector – Jawaharlal Nehru National Solar Mission
(JNNSM) – a target of 20 GW of solar
installations by 2022 has been set.
The project had two primary
objectives. The first was to explore business approaches that will enable utilities
to turn what some view as the ‘threat’ of customer-sited solar generation into an opportunity – by creating
new value in the solar value chain; capturing some share of that value for
utility and finding ways to sustain it over time. The second
objective was to explore innovative legal and regulatory strategies to help
utilities apply their strengths to advance opportunities for large-scale solar, driven by increasing
resource constraints and climate change concerns.
With this in mind, innovative utilities
have begun to explore new approaches with emerging solar models. Most of them
originated or are being considered by the utilities that participated in
project working groups, and
this is the first time that much of this information has been available for
discussion, comment, and
comparison among utilities, solar providers, and the financial community.
Vision
The modern world offers huge potential. More people
are better educated than ever before and scientific knowledge and technology
offers solutions to most of the world's problems. The responsibility of
business is to ensure that there is economic activity that helps the world to
progress, and initiatives that address the subject of solar energy and energy
efficiency are a priority for this.
Solar Energy demand globally has
been growing at about 30% per annum over the past 15 years. In
comparison, the hydrocarbon demand growth rate is 0‐2% per annum. This high growth rate in solar energy
is due to many reasons – increasing cost of petroleum products and the parallel
decreasing cost of producing power from solar, and a concern world over on the
harmful effects of using fossil fuels
India is one of
the few countries in the world that has a dedicated ministry for New and
Renewable energy. In
India, the high GDP growth rate has created a huge demand for energy, but the
supply is unable to match the demand. The total installed capacity of power as
of January 2012 is 187 GW. The per capita total consumption is 778 kWh. The
estimated shortage of power in India is about 20 GW.
Why India?
India is in the sunny
regions of the world with most parts of the country receiving 4‐7 kwh (kilowatt‐hour) of solar radiation per
square meter per day, 250‐300
sunny days in a year. Even though Solar energy constitutes a miniscule part in
India’s installed power generation capacity (with grid connected solar PV
generation at a mere 6 MW as of March 2010), in the medium and long run, it is
expected that solar energy, especially solar PV will form a vital component of
the country's energy mix.
Solar Growth in India
Drivers of growth
•
Demand supply gap: India’s power deficit is about 10%, with a peak deficit of
17% leading to chronic power shortage. Power is one of the requirements for the
economic development of India but even today almost 1/3rd of the population has
no access to grid electricity.
•
Demand for off-grid PV application: Apart from PV application in the rural
areas, there are other PV off-grid applications which have huge scope in India
such as off- grid lighting system, Irrigation Pump, Captive Power and Urban
Application.
•
Availability of funds: Banks and other financial institutions, including
foreign financial institutions, are lending necessary funds to the players. The
SPV market is also getting boosted by the financial assistance extended by the
financial bodies in terms of helping the players in coordinating with
interested foreign financial institutions for investing in the projects.
•
Growth in foreign trade: India has consistently been a net exporter of solar PV
technology, with about 66% of cumulative domestic PV production till 2009 being
exported to overseas markets. India exports PV cells, PV modules to the
international markets led by the European nations. India is a major exporter of
PV cells with exports accounting for 75% of total capacity. Scope of foreign
trade in the SPV sector is leading to the entry of increasing number of players
to the market.
•
Fall in prices of raw materials: In 2011, there is about 30% fall in price
against global average in India. These form the basis allowing for the
production of solar energy based on photovoltaic technology. Fall in the prices
has reduced the cost of generating solar photovoltaic energy. The fall in
prices is likely to continue with the existing prices of PV and with steady
fall in the prices of PV along with lower operating expenses, this technology
is becoming cost effective Increasing number of players are now entering the
market at these price levels.
•
Geographical location: In India, almost all the regions receive 4-7 kWh of
solar radiation per sq meter depending upon the location. India enjoys 300
sunny days every year and 3,000 hours of sunshine each year which is equivalent
to over 5,000 trillion kWh. India being a tropical country receives adequate
solar radiation which is a major driver for the SPV market.
Solar market analysis (SWOT
analysis)
The
solar industry can be understood by performing a SWOT analysis. A SWOT analysis
assesses the strengths, weaknesses, opportunities and threats to a specific
business scenario or enterprise.
Strengths
•
The major strength of the solar industry is that it can provide a sustainable,
renewable and environmentally friendly source of energy. This positions solar energy
to differentiate itself from traditional, carbon-based energy sources.
Weaknesses
•
The major weakness of the solar industry is that its product is costly to
implement and is difficult to produce high levels of solar power. Solar energy
can have difficulty competing with traditional forms of energy on the basis of
price.
Opportunities
•
Because oil, coal and other fossil fuels are a finite resource they will
eventually become depleted and there will be rise in costs. As this occurs it presents
an opportunity for the solar industry to compete on the basis of price,
eventually becoming cheaper than fossil fuels in market as well as
environmental cost.
Threats
•
Threats to the solar energy industry include other renewable energy sources
such as wind power, hydroelectricity and nuclear fission. Additionally, the
solar energy industry is threatened by new technologies that are making it
possible to obtain fuel from new sources such as bio- diesel, bio- ethanol etc.
Conclusion
Worlds’
non-renewable resources are finite. The increasing demand for electricity
consumption can’t be alone fulfilled on the expense of fossil fuels. Thus,
there is a dire need to move towards some permanent solution that is feasible
on the basis of economic as well as environmental cost.
Development
of solar energy, which is indigenous and distributed and has low marginal cost
of generation, can increase energy security by diversifying supply, reducing
import dependence, and mitigating fuel price volatility. Solar energy development
in India can also be an important tool for spurring regional economic development,
particularly for many underdeveloped states, which have the greatest potential
for developing solar power systems which is unlimited and clean source of
energy. It can provide secure electricity supply to foster domestic industrial
development. So it can be concluded that photovoltaic power systems will have
an important share in the power sector in the future not only in India, but all
over world.
So, looking forward to hear from interested parties to use Green energy which is strongly becoming a natural
given for municipalities and companies. Investing in solar electricity means
more than just financial gain.
We help you with up-to 100% finance for solar Projects (4 MW and Above projects).
(An one stop for Accounting, Banking and Finance Solutions)
1. Engineering , Construction and Procurement (E.P.C)2. P.P.A ( Power Purchase Agreement) (Private PPA with Fortune 500 plus companies recognised by Govt of India)3. Finance : Various forms of funding available according to the the size of the project.
Contact:
Yasar Bin Gursain
Bin Gursain Business Groups.
Email: ybingursain@gmail.com
Phone: +91-9705730754 / +91-
9642907411
