Renewable Energy in
India: addressing future opportunities for
companies.
As we are fast venturing into
the energy climate era & there is a growing concern of rise in global average
temperature which in turn is becoming disastrous day by day. So every country
is looking into renewable sources of energy addition as an important factor for
their economy & climate. Renewable energy sector in India is far lagging
behind in terms of utilization of solar or wind potential due to non deployment
of large scale solar or wind power plants .The main reasons for this is lack of
proper planning, lack of effective subsidy schemes, land acquisition problems
(large scale solar or wind power plants require huge land) & bottlenecks faced
by companies to recover the subsidies announced by government. The electricity
sector in India had an installed capacity of 223.343GW as of March 2013, the
world’s fifth largest. Captive power plants generate an additional 34.444GW. Non
renewable power plants constitute 87.55% of the installed capacity & 12.45%
of renewable capacity.
A new World Bank program known
as renewable energy mapping program will carry out mapping of renewable
energy resources that will for the first time produce rich, nationwide data for
each country. Coordinated and financed by the World Bank’s Energy Sector Management Assistance Program ,
the initiative will cover mapping of solar, wind, biomass, and small hydro-power
potential.Thus the government will be able to view the granular data to
understand it’s solar or wind potential which till now is underutilized. India’s
cumulative grid tied renewable energy capacity (excluding large hydro) stands
at 26.9GW,of which 68.9% comes from wind making India fifth largest in wind.
Solar PV contributes 4.59% to the total renewable energy generation.
In December 2011, over 300
million Indian citizens had no access to electricity. Much of India
doesn't have an electric grid which provides scope for distributed power
systems which are grid independent and small. Due to rapid economic expansion,
India has one of the world’s fastest growing energy markets. Limited domestic
fossil fuel reserves & the environmental constraints put up by the dirty
fuels is witness to the future renewable energy prospects in India. The development of grid
interactive renewable power took off with the coming into force of the
Electricity Act 2003, which, among other things, provides for regulatory
interventions for promotion of renewable energy sources through determination
of tariff, Specifying renewable purchase obligation (RPO), Facilitating grid connectivity,
Promotion of development of market.
The international energy agency estimates that India
will add between 600GW to 1200GW of additional new power generation capacity by
2050.India is most active player in wind power sector & a rich destination
for companies wanting to acquire wind power assets. The national solar mission, under the
National Action Plan on Climate Change aims to add 20,000MW of solar power by
2022.Indian solar panel manufacturers are dominated by cheap export from China,
Taiwan, Malaysia, and USA.India has been ranked as 7th in solar
photo-voltaic cell production & ranked as 9th in solar thermal
power generation. This growth is exponential due to several private players
entering the business and various subsidies & reforms put up by the
government of India.
The major players in solar power
are as follows.
Moser Baer Photovoltaic Limited,
Tata BP solar, photon solar energy system, HHV solar technologies private
Ltd,Titan energy systems Limited, Sun energy systems, Applied materials, signet
solar,Punj Lloyd delta renewable, Bharat Heavy Electricals Ltd,Reliance
industries limited etc.
In March 2007 the Indian
government announced a semiconductor policy under its Special Incentive Package
Scheme (SIPS) which will provide 20% of the capital expenditure during the
first 10 years for semiconductor industries, including manufacturing activities
related to solar PV technology located in Special Economic Zones (SEZ) and 25%
for industries not located in an SEZ. India has among the highest solar irradiance in the world which makes
solar PV all the more attractive for India. Odisha and Andhra Pradesh also houses some of the best quality reserves
of silica (basic feedstock for metal grade Si). India has demonstrated globally
proven metallurgical processing capacities and capabilities. India is already
an established low cost producer and assembler of solar PV cells and modules.
The major barrier for solar projects is their high upfront costs while putting
up the project. Companies around the world are planning & developing
production facilities that run into gig watts while India has not yet put
enough on R & D for implementation of such projects. While it is obvious
that to keep in pace with the growing economy India will add renewable assets
to utilize its wind & solar power fully.
Wind power plants face land
acquisition problems as well as the reduced subsidy & high operation costs
are driving large companies to sell off their wind energy assets, which is
non-core for them, to renewable energy based companies. As far as hydro sector
is considered it is facing several issues like long wait for forest & land
clearances, inter state disputes on water sharing, inadequate transmission
capacity, large construction periods & geological surprises as in
Uttarakhand tragedy.
Thus as the Indian society is
getting more aware of the clean fuel compared with the bad carbon footprints
left by fossil fuels the renewable energy sector in India is confident &
poised for growth.