Summary
In an article published in the 6th June issue of New York Times, authored by James Canter, it is reported that India is working towards becoming a global leader and a hub of solar power, something the developed nations like Germany, Spain and US were recognized for. This is arising out of a draft report called the National Solar Mission which the Government of India is working on. As per the report India plans to add 20000 MW of Solar Power Generation Capacity by 2020. Further the plan envisages 100000 MW by 2030 and 200000 MW by the middle of this century. Recognizing that at present the costs for solar panels are still abnormally high, the plan sets out to accelerate indigenous production through various measures and hopes that with the huge volume of demand in India and China, there would be a industry effort to reduce the cost of production and the solar power costs could come down to a widely affordable Rs 4-Rs 5 per kwhr which is 7-8 cents, the average US power tariff.
Analysis
To keep pace with the global trend of exercising feed-in-tariff solar power, Govt. of India initiated Solar PV projects up to a maximum capacity of 50 MW are to be supported by financial incentives of a maximum of Rs 12/kWh (28 US cents) for PV projects and Rs 10/kWh (24 US cents) for solar thermal power projects for a period of 10 years. With investors rushing to set up solar power projects and adding up to 2500 MW of capacity, the Ministry has asked the Planning Commission and the Indian Cabinet to expand the 11th Plan solar power programme beyond 50 MW.
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 SEZT
India has an installed capacity for manufacture of solar panels of 700MW per year and has the skills and capabilities to enhance the same to 20000MW per year.
The solar energy industry in India has undoubtedly gained momentum and should be able to keep pace with the government’s aim of achieving 10% of the country’s total electricity requirements by 2012. India already possesses a balanced Eco-system for the PV industry, a high-tech manufacturing base and skilled labor sufficient to make it a booming industry. Annual PV production has already reached over 300 MW, with about 85% being exported.India receives solar energy equivalent to over five trillion MWh a year, far more than its total energy consumption, and should therefore benefit from economies of scale that are unavailable to smaller countries. However, it is necessary to address the availability and management of a strong infrastructure and the need to consider a long-term solar energy policy (20–25 years).India's renewable energy ministry has declared a new program designed to expand solar power generating projects up to a maximum capacity of 50MW.Faced with inadequate power generation and big transmission and distribution losses, the government wants to generate at least 10 percent of its electricity through solar power by 2012. A total of 33 solar photovoltaic power plants connected to the Indian power grid have already been built with government support. The plants are expected to generate 25.5 lakh (2.55 million) units of electricity annually. India currently has 19 manufacturers of solar photovoltaic modules. Several more large investments are in the pipeline. Thus the initiatives in the proposed National Solar Mission are well founded and presents an opportunity to global manufacturers, system integrators, investors, and banks to channelize their focus towards India.
