India’s solar energy challenges & associated

issues
THE HANS INDIA | May 12,2017 , 10:17 PM IST

Representation of solar power energy

 About 70% of India’s electricity generation capacity is from fossil

fuels. India is largely dependent on fossil fuel imports to meet its
energy demands.
 By 2030, India’s dependence on energy imports is expected to
exceed 53% of the country’s total energy consumption. Greater
import dependence is a a threat to India’s energy security as it
introduces global market volatility into the mix.
  It also adds to a huge import bill leading to a loss of valuable
foreign capital. We need to shift our focus towards the renewable
energy sources.
 After the recently concluded Paris talks, wherein countries agreed
to limit their emissions so as to contain the global temperature rise
to Co2, the need to develop renewable energy sector gains even
more importance.
 There are various sources of renewable energy like wind, nuclear,
solar, tidal, geothermal etc. But, in this article, we shall mainly talk
about the solar energy and various policy initiatives of India in this
sector.

Solar Energy

As per World Energy Outlook Report 2015, India has substantial solar
potential around 750 gigawatts (GW) (based on the assumption that 3%
of wasteland in each state can be used for solar power projects, plus an
assessment of the potential for rooftop solar). This represents almost
three times India’s total installed power capacity today.

Solar capacity region wise

The solar resource is strongest in the north and northwest of the country
(Rajasthan, Jammu and Kashmir), but the potential is also considerably
high in several other states, including Maharashtra, Madhya Pradesh,
and Andhra Pradesh.

India’s renewable energy target

 Target: 175GW from renewable energy sources by 2022 • Break

up:100 GW from solar, 60 GW from the wind, 10 GW from biomass
and 5 GW from small hydroelectric projects.
 100GW = 60 GW of utility-scale projects (both solar PV and CSP)
like solar parks + 40 GW of rooftop solar applications for
commercial users and households, together with some small-scale
schemes and off-grid capacity
National Solar Mission or Jawaharlal Nehru National Solar
Mission (JNNSM)

 It was launched on 11th January 2010 Apex ministry: Ministry of

New and Renewable Energy (MNRE).
 India’s Solar capacity in 2010: 17.8MW
 Grid connected solar power in 2016: 8GW

Objectives of JNNSM

 To establish India as a global leader in solar energy

 To promote ecologically sustainable growth while addressing
India’s energy security challenges
 Short term: To create enabling environment for penetration of
solar technology throughout the country Mission’s target was
revised in 2015,
 Initial Target: 20GW
 Target is to be achieved in 3 phases,
 1st Phase: 2010-13
 2nd Phase: 2013–17
 each stage, progress will be reviewed and roadmap for future
targets will be adopted.

Domestic content controversy

 Guidelines for the solar mission mandated cells and modules for
solar PV projects based on crystalline silicon to be manufactured in
India.
 This accounts for over 60% of total system costs.

For solar thermal, guidelines mandated 30% project to have

domestic content.

 A vigorous controversy emerged between power project

developers and solar PV equipment manufacturers.
  The former camp prefers to source modules by accessing highly
competitive global market to attain flexible pricing, better quality,
predictable delivery and use of latest technologies.
 The latter camp prefers a controlled/planned environment to
force developers to purchase modules from a small, albeit growing,
group of module manufacturers in India.
 Manufacturers want to avoid competition with global players and
are lobbying the government to incentivize growth of local industry.
 US Trade Representative has filed a complaint at World Trade
Organization challenging India’s domestic content requirements
citing discrimination against US exports.
 WTO ruled in favor of USA.

Road towards solar superiority

 The State of Gujarat has commissioned Asia’s largest solar park

at Charanka village.
 The French group AREVA Solar is currently engaged in
constructing a 250 MW concentrated solar power (CSP) installation
in Rajashtan, which will become the largest CSP installation in
Asia.
 The International Finance Corporation (IFC), the World Bank
Group’s private sector arm, is supporting the Indian state of
Madhya Pradesh set up the 750-MW ultra-mega solar power
project in Rewa. This will be the largest single-site solar power
project in the world
 World’s largest single rooftop solar power plant of 11.5 Mw
capacity was inaugurated in Beas near Amritsar in Punjab
 Cost dropped but more research needed: The cost of solar per
kilowatt hour dropped from a 2012 Planning Commission estimate
of Rs. 10.4 – 12.5 to Rs. 4.3 in the latest round of “reverse
auctions” (low bid wins) but still many coal based power plants are
rivaling it at around Rs 3KW per hour. Thus more research is
needed to bring the cost further down.

Advantages of switching to solar

Environment-friendly
  Solar energy is environment-friendly. When in use, it does not
release CO2 and other gases which pollute the air. Hence it is very
suitable for India, India being one of the most polluted countries of
the world.
 Varied use
 Solar energy can be used for a variety of purposes like as
heating, drying, cooking or electricity, which is suitable for the rural
areas in India. It can also be used in cars, planes, large power
boats, satellites, calculators and much more such items, just apt for
the urban population.

Abundant & Secure

Solar power is inexhaustible. In energy deficient country like India, where

power generation is costly, solar energy is the best alternative means of
power generation.

Grid independent

 You don’t need a power or gas grid to get solar energy. A solar
energy system can be installed anywhere. Solar panels can be
easily placed in houses. Hence, it is quite inexpensive compared to
other sources of energy
 Reduced dependence on fossil fuels Disadvantages

Not available during night time

Weather dependent

 During daytime, the weather may be cloudy or rainy, with little or

no sun radiation. Hence, this makes solar energy panels less
reliable as a solution.
 Sunny area required
 Only those areas that receive good amount of sunlight are
suitable for producing solar energy.
High upfront cost

 Solar panels also require inverts and storage batteries to convert

direct electricity to alternating electricity so as to generate
electricity. While installing a solar panel is quite cheap, installing
other equipment becomes expensive.

High surface area required

 The land space required to install a solar plant with solar panel is
quite large and that land space remains occupied for many years
altogether and cannot be used for other purposes. India is already
a highly populous and land starved country.
 Energy production is quite low compared to other forms of
energy.

Maintenance

 Solar panels require considerable maintenance as they are

fragile and can be easily damaged. So, extra expenses are
incurred as additional insurance costs.

Disadvantages of Solar Energy in India

 We cannot generate energy during the night time with solar

energy.
 And, also during day time, the weather may be cloudy or rainy,
with little or no sun radiation. Hence, this makes solar energy
panels less reliable as a solution.
 Only those areas that receive good amount of sunlight are
suitable for producing solar energy.
 Solar panels also require inverters and storage batteries to
convert direct electricity to alternating electricity so as to generate
electricity. While installing a solar panel is quite cheap, installing
other equipments becomes expensive.
  The land space required to install a solar plant with solar panel
is quite large and that land space remains occupied for many years
altogether and cannot be used for other purposes.
 Energy production is quite low compared to other forms of
energy.
 Solar panels require considerable maintenance as they are fragile
and can be easily damaged. So extra expenses are incurred as
additional insurance costs.

Government Policy

 As per its latest targets, the government is looking to raise solar

power generation capacity to 48 gigawatts (GW) by early 2019, out
of a targeted 100GW from solar by 2022.
 To ensure that there is a stable market for solar energy, the
central government has already made it mandatory for state power
utilities to buy a certain amount of this clean energy from
independent power producers (IPPs).
 The duty structure for equipment needed to generate solar
energy is more favourable compared to that needed for producing
wind power.
 Government is ensuring grid connectivity and subsidies for
rooftop solar projects.

Why state electricity distribution companies (discoms) are

favouring solar energy

 Lower tariffs is one of the reasons

 Solar power helps discoms meet their peak power requirement.
 Solar power helps discoms meet their peak power requirement.
 The generation of solar energy can be forecast better, as
compared to wind, which typically blows strongly at night and
during the monsoon months, when the demand for power is low.

Problems which are being faced by solar energy sector

  Dust, high temperatures and the dearth of water are contributing
to a significant increase in the cost of operating solar power plants
in the country.
 Some of these factors, such as the level of dust particles and the
type of dust, vary from region to region within the country, while
other factors such as the hardness of the water and the shortage of
a skilled labour force are more general problems faced by plants
across the country.

Problems associated with high temperature

 The solar panels that are used are not designed for such high
temperatures.
 In remote areas with high temperatures, it is being found that we
are not getting the required units of power. The panels do not yield
their optimal usage.
 Dust is a problem, especially in Rajasthan, where the dust
conditions are really bad and require frequent cleaning around two
times a month, which then increases the operational costs.
 There is alluvial dust (present in plains of north India and delta
regions of south India). This type turns into mud when water is
poured. Then there is sandy dust (present in Rajasthan and
Gujarat), which can be washed away easily with water.

Cleaning costs

 Dust is a problem, especially in Rajasthan, where the dust

conditions are really bad and require frequent cleaning around two
times a month, which then increases the operational costs.
 There is alluvial dust (present in plains of north India and delta
regions of south India). This type turns into mud when water is
poured. Then there is sandy dust (present in Rajasthan and
Gujarat), which can be washed away easily with water.
 Apart from the dust, one other main issue is the hardness of the
water.
  Hard water is not suitable for cleaning, and companies have to
invest in reverse osmosis (RO) and other technology to make it
suitable.
 Since many large-scale power plants are located in the interior
regions of Rajasthan, Gujarat, Maharashtra, Madhya Pradesh,
Chhattisgarh and parts of South India, getting soft water on sites
becomes difficult at times. Therefore, reverse osmosis or distillation
plants have almost become mandatory for solar plants in order to
provide water which can be used for cleaning modules.
 Apart from treating the water, the unavailability of a steady water
supply also proves to be a problem for solar plant operators.

Rooftop solar

 While the government has sanctioned Rs.5,000 crore to provide a

30 per cent capital subsidy for rooftop solar installations, this works
out to a one-time fix. Consumers will still be expected to foot the
water bill and cleaning bill which means that individual households
will also have to bear the operational costs of having solar modules
on their roofs

Skill Labour

 Skilled workforce required for cleaning and maintenance is not

available in these areas and so companies have to bring them in
from other areas and train them.
 All this results into higher operational costs but solar tariffs in
India have fallen tremendously which pose a future risk for the
industry.
 Thus companies in India are beginning to employ new
technologies to counter the dust problem. For example anti-soiling
technology like dust-free glass with self-cleaning hydrophobic
nano-coating which stops dust from sticking to the glass of the
module.

Reason for falling solar tariffs

  In the rush to build market share in this exciting sector, some
players have become very aggressive in the competitive auction
process and are bidding very low tariffs with fairly low returns.
 There is a fear that some of these projects could become
unviable because developers will find it difficult to raise funds at
attractive interest rates and contain high project costs.
 Low tariffs can also negatively impact the government’s target of
achieving 100GW by 2022. We need to attract more
 players and many more investors into this nascent sector.
 This will come only if the returns are attractive for investors.
Hence, it is important that every project remains viable from both
aspects—tariff and profitability.

Several impediments which needs to be tackled

 From land acquisition to problems in grid evacuation, there are

many issues that can derail returns on a project.
 Several discoms, the ultimate buyers of power, are in a poor
financial condition. Hence, payment delays and rising receivables
can upset both financial plans as well as cash flow management.
 Financing a large number of projects that have been awarded will
require debt of almost $10 billion every year. India’s banking sector
is already facing its own set of challenges and there are only a few
banks that finance such long-term projects.

Debt Problems

 Viability of solar power projects in India has become a serious

cause for concern. The recent decision of the Supreme Court not
to allow a revision of the tariff charged by Tata Power Co. Ltd and
Adani Power Ltd for their 4,000MW (megawatt) and 4,620MW
Mundra ultra-mega power projects (UMPPs) based on Indonesian
coal has added to the woes.
By Gudipati Rajendera Kumar