India Reports

Solar Energy: A New Dawn for Emerging India
Rakhi Jhingran

The clock is ticking and there is an urgent need to address the long term energy crisis. Growing concern on global warming and depleting sources of conventional energy have challenged mankind to look out for alternate energy resources. Solar power is one among them - a pollution free renewable energy source. India could be one of the emerging markets of solar power in the world.

Solar Production Potential in India
India has the potential to become one of the leading solar energy markets in the world due to its geographical location, large population and government support. India receives about 5,000 Trillion kWh per year, which is far more than its total annual energy consumption. Average conversion efficiency in India is 15%, which can be increased to 28%. Amount of solar energy converted into electrical energy is 750 trillion Kwh and out of which only 0.75 trillion KWH is utilized. Potential size of business out of solar energy for rural India is about 670 million US dollars.

Solar energy can be used in various ways like solar heating system, street lighting, water heating systems, solar cookers, and solar lanterns.

Solar Power in Rural India

Over 1.6 billion people in the world lack access to electricity even today. As per the Ministry of Power, 4.9 lakh out of the six lakh villages in the country were electrified as on March 31, 2008. Even today, in more than a lakh villages, life comes to a standstill after dusk. Over 60 percent of rural households use kerosene lamps for lighting. As per a rough estimate, on a running-hour equivalence basis, the light output (Rs /lumen-hour) from a kerosene lamp is eight times more expensive than a typical solar light, 13 times more than from a DG-set, and 59 times more than grid power. Kerosene lamps are expensive, potentially dangerous, and a major source of greenhouse gases. Solar lanterns can be practical and clean energy alternative to kerosene lamps in village communities. Use of Solar Lanterns can help households make important savings ranging from 150 to 200 US dollars annually. Alternately, Erection of Solar Panels can also be helpful in electrifying the small villages. Though it has a high deployment and maintenance cost. However, it should be remembered that there is a direct link between lighting and economic development. Each 1 per cent increase in available power will increase GDP by an estimated 2 to 3 per cent. The figures are impressive and gives us a boost to further develop this technology.

Key Oppotunities

The key opportunities in this industry include solar based power stations in rural areas for lighting and to power irrigation pumps, providing backup power for the growing network of cell phone towers etc.

Government Initiatives

India clearly has a long way to go in terms of favorable policy making for the country. However, few government initiatives have made the sector attractive.
Some of these are:

1. Special Incentive Package Scheme (SIPS) - to encourage investments for setting up semiconductor fabrication and other micro and nanotechnology units.
2. SEZ policy – to encourage export oriented manufacturing.
3. The Ministry recently announced a Generation Based Incentive (GBI) scheme to support a total capacity of 50 MWp for solar power under the eleven five year plan (2007-2012).To support the high cost of solar PV equipment that results in a higher cost of generation, which restricts the growth of power generation through solar PV.
4. Ministry of New and Renewable Energy has also decided to support large-sized grid interactive solar power generation projects as demonstration projects.
5. In order to give a push to the solar industry and reduce the dependence on fossil fuel, government has annouced development of solar cities programme, Nagpur would be the first solar city in India. Financial support up to a maximum Rs.9.50 crore will be available to each of these Model Solar Cities for implementation of the Master Plan developed under the scheme

Conclusion
A synergetic effort from the industry, government, academia, and other stakeholders can help the Indian Photovoltaic industry to grow, and address the country's present and future energy needs.

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