Utpal Bhaskar

India needs as much as $200 billion to meet its target to install 100GW of solar power and
60,000MW of wind power by 2022. Photo: AP
NTPC Ltd is exploring options to manufacture solar equipment as part of the state-owned power
producers strategy to be present across the green energy value chain.
To start with, Indias largest power generator is evaluating a plan to set up a 1,000-megawatt
(MW) per annum manufacturing capacity, which may require an investment of Rs.5,000 crore.
The plan stems from the fact that NTPC has to set up 10,000 MW of solar power capacity on its
own, along with buying 15,000MW from solar project developers, on behalf of the ministry of
new and renewable energy.
We are evaluating the opportunity. We want to be present across the value chainfrom
polysilicon to solar panels. We have the money, and the present costs can be reduced. Silicon
and quartz are available in abundance in the eastern part of India. A presentation on the subject
has been made, said an NTPC executive, requesting anonymity. The plan is at a preliminary
stage.
There has been considerable interest in the solar-equipment manufacturing space in India, with
US-based SunEdison Inc. announcing its plans to establish a joint venture (JV) with Adani

Enterprises Ltd to build a solar, photovoltaic manufacturing facility in India at an investment of

about $4 billion.
US-based First Solar Inc. and Chinas Trina Solar are among companies that are considering
plans to set up manufacturing facilities in India.
With an installed capacity of 45,048MW, NTPC has around a 17% share of Indias powergeneration capacity of 272,593MW, and has set itself a target of becoming a 128,000MW power
producer by 2032. It plans to raise the contribution of renewable energy to 28% of its planned
capacity by then.
It is the right time to go for manufacturing. We have a large solar power generation
commitment on ourselves. Also, in due course, NTPC has the target to reduce its dependence on
fossil fuel sources, said the executive cited earlier. With a focus on renewable, solar is a viable
solution.
The government has pushed renewable energy to the top of its energy security agenda and is
looking to provide green power at less than Rs.4.50 a unit.
While the current installation cost of a solar project is around Rs.6 crore per MW, economies of
scale are expected to drive down the cost to Rs.4.5 crore per MW.
India needs as much as $200 billion (Rs.12.75 trillion) to meet its target to install 100GW of
solar power and 60,000MW of wind power by 2022.
Analysts expect solar power tariffs to fall.
Solar power is likely to become cheaper than, or equivalent to, conventional thermal energy
prices over the next two to three years and reach Rs.4-4.5/kWh by FY18, India Ratings and
Research, the domestic arm of Fitch Ratings, said in a 22 July report. This will be driven by a
decline in capital costs (solar modules and other balance of plant), an increase in efficiency, a
shift towards large solar photovoltaic projects, leading to the economies of scale and lower return
expectations by developers, the report added.
Queries emailed to spokespersons of NTPC, ministry of new and renewable energy, SunEdison
and Adani remained unanswered till press time.
The emphasis on solar and wind power is also expected to strengthen Indias standing at global
climate change negotiations that culminate in a summit in Paris in December.
The governments focus on renewable energy is aimed to minimize Indias dependence on coalfuelled electricity.
While there has been a growing interest from overseas and domestic investors in the Indian
renewable-energy space, concerns are being raised over its viability in the backdrop of state
electricity boards (SEBs) increasingly showing a reluctance to buy power on account of their

poor financial health. With a debt of Rs.3.04 trillion and losses of Rs.2.52 trillion, SEBs are on
the brink of financial collapse.
Russias OAO Rosneft, the worlds largest publicly traded oil company, is exploring a huge
investment in solar energy in India, Mint reported on 14 July.
Also, SoftBank Corp., with Bharti Enterprises Ltd and Foxconn Technology Group of Taiwan, in
June proposed to invest at least $20 billion in solar energy projects in India
1. Dadri Solar PV
2. Port blair Solar PV
3. Ramagundam Solar PV (Phase -I)
4. Talcher Kaniha Solar PV
5. Faridabad Solar PV
6. Unchahar Solar PV
7. Rajgarh Solar PV
8. Singrauli Solar PV
Total

Renewable NTPC/201513/11/2015
Energy
16/NSM/TI/TEL

Uttar Pradesh
Andaman & Nicobar Island
Telangana
Odisha
Haryana
Uttar Pradesh
Madhya Pradesh
Uttar Pradesh

Work
Contract

Selection of
Solar Power
Developers
for Setting up
Solar PV
Power
Projects of
50MW
(10MWX5
Projects)
capacity
under DCR
category-Non
Solar Park
and 350MW
(10MWX35
Projects)
under OPEN
category- Non
Solar Park in
the State of
Telangana
under
National Solar
Mission
(NSM) Phase-

5
5
10
10
5
10
50
15
110

II, BatchII,Tranche-I

Renewable
Energy

Renewable
Energy

Renewable
Energy

Renewable
Energy

DEVELOPMENT
OF 750 MW(
6x125 MW EACH
) Solar
PHOTOVOLTAIC
RE-CS-5712Work
28/9/2015
POWER
004-9(R)
Contract
PROJECT
(PHASE-II) AT
ANANTPUR IN
ANDHRA
PRADESH INDIA
Selection of Solar
Power Developers
for Setting up
Solar PV Power
Projects (10MW x
NTPC/2015Work
10 Projects) in
16/NSM/TI/NSP- 17/9/2015
Contract
Uttar Pradesh
UP/06
under National
Solar Mission
(NSM) Phase-II,
Batch-II, TrancheI
H T CABLES
PACKAGE FOR
SOLAR PV
Equipment
POWER
40042422
17/8/2015 Supply &
PROJECT
Erection
PHASE-I
(250MW) IN
ANANTAPUR
EXPRESSION OF
INTEREST FOR
PREPARATION
OF DPR FOR
RE-CS-0000Miscellaneous DEVELOPMENT
7/8/2015
003-9
(Others)
OF WIND
POWER
PROJECTS AT
NTPC STATIONS
IN INDIA