ANURAG PANDIT

SOLARGIZE-IDP

2010
Widespread use of coal and other fossil fuels has led to
accumulation of enormous amount of carbon dioxide in
the earth's atmosphere and a resultant global warming.
Amongst the renewable energy sources, solar power
generation undoubtedly offers the most promising and
viable option for electricity generation for the present and
future. It is understood that solar power generated over
1% of the land area in the country is adequate to meet its
entire electricity requirements till 2030. In most parts of
India, clear sunny weather is experienced 250 to 300 days
a year. The annual global radiation varies from 1600 to
2200 kWh/m2, which is comparable with radiation
received in the tropical and sub-tropical regions. The
equivalent energy potential is about 6,000 million GWh of
energy per year

Specific annual Solar yield

INTRODUCTION

INDIA

1900

India being leading producer of wind power is

USA

1900

now looking towards arena of solar power in

order to satisfy its ever growing power need.

SPAIN

1600

ITALY

1600

AUSTRALIA

1600

CHINA

Currently India is in 11th position with 120

MW of installed solar PV capacity according
kWh/kWp

1400

JAPAN

to Cumulative and Newly Installed Solar

Photovoltaic Capacity in Ten Leading
Countries and the World, 2009 by Earth
Policy Institute. But there still is large solar

1200

power generating potential which is still yet

GERMANY

1000
0

1000

to be touched. Solar thermal technologies

2000

have a special relevance in India due to high

availability of resources; average radiation is

4.5 - 6 kwh/m2/day with average 280 clear days. In view of the increasing energy demand in all the
sectors there is immense potential especially in domestic and industrial sector to meet thermal energy
demands. Activities in this field were started in India by Department of Non-Conventional Energy
Sources (DNES), which was created in 1982 to facilitate developments in the field of renewable energy, by
undertaking various R&D and demonstration projects in the field of solar thermal.

MARKET IN INDIA
Market in India is divided in two segments
Solar collector
Solar photovoltaic cell

SOLAR COLLECTOR
Solar collectors are used for gathering sunlight over a large area to concentrate it on a small area for
the purpose of heating. In Indian market solar collectors are used both at macro level as well as in
micro level. At macro level we use Concentrated Solar Power (CSP) systems
Concentrated solar power (CSP) are systems that use lenses or mirrors to concentrate a large area of
sunlight, or solar thermal energy, onto a small area. Electrical power is produced when the
concentrated light is converted to heat which drives a heat engine (usually a steam turbine) connected
to an electrical power generator

Solar energy distribution map as shown shows that in

India maximum solar energy is mainly concentrated
in Rajasthan. While in other state also various
projects are also taking place like Moser Baer Clean
Energy Ltd, an arm of Moser Baer Projects Pvt Ltd
(MBPPL), has commissioned the countrys largest
solar plant in Tamil Nadu. The 5-Mw plant is
estimated to have cost the company around Rs 70-75
crore. The project had been awarded by the Tamil
Nadu Energy Development Agency and is being
implemented under the Generation Based Incentive
scheme of the Ministry of New & Renewable Energy.
In Rajasthan areas marked with deep shade of brown
in the map given below, are the potential sites for
large scale CSP system. A Solar Thermal Power Plant
of 140MW at Mathania in Rajasthan has been
proposed and sanctioned by the Government in
Rajasthan. The project configuration of 140MW
Integrated Solar Combined Cycle Power Plant
involves a 35MW solar power generating system and
a 105MW conventional power component and the
GEF has approved a grant of US$ 40 million for the
project. The Government of Germany has agreed to
provide a soft loan of DM 116.8 million and a
commercial loan of DM 133.2 million for the project.
Currently in Bap, near Jodhpur in Rajasthan which
receives 2202 kWh/m2 annual equivalent effective
DNI (150 W/m2 DNI 850 W/m2) Dalmia Solar
company is building CSP plant which is projected to
generate 21.39 MU sellable units per year.
Currently Rajasthan government will promote setting
up of solar power projects for direct sale to Discoms of
Rajasthan. The total capacity under this category will
be distributed equally between SPV and CSP based
power plants. The total maximum capacity under this
category for phase-1 (up to 2012-2013) is 200MW and
additional 400MW in phase-2 (2014-2017). Rajasthan
government also planned to develop solar park of 1000MW in identified areas of Jaisalmer, Bikaner, and
Barmer and Jodhpur districts in various stages. The State Government, under this policy, will act as the
facilitator to attract global investment in Rajasthan and will provide the necessary infrastructure,
regulatory and other Government support required through the Nodal Agency to rapidly ramp up Solar
Power generation capacity in the State. Solar Park shall consist of various zones viz. Solar Power Plants,
Manufacturing Zones, R & D and Training Centers zone and other amenities zones. The State will extend
all facilities and fiscal incentives provided by Central Government/Solar Mission to manufacturers in
Solar Parks.

On its part incentives provided by the Rajasthan government are as follows

The energy consumed by the Power producers for his own use will be exempted from payment of
the electricity duty.
Generation of electricity from Solar Power Plants shall be treated as eligible industry under the
schemes administered by the Industries Department and incentives available to industrial units
under such schemes shall be available to the Solar Power Producers.
Water Resource Department will allocate required quantity of water from IGNP canal/the nearest
available source for development of Solar Thermal based power plants subject to the availability of
water for power generation. In case, the Power Producer proposes to use ground water for power
generation, the permission will be granted by the Ground Water Department/Water Resource
Department
The Solar Power Producer will pass benefits of CDM to the distribution licensee with whom PPA
has been signed as per appropriate Commissions order.
Now as for Tamilnadu, it is emerging as another hotspot for global as well as local investor in field of
solar power. The average annual global solar radiant exposure in Chennai is 5.37kWh/m2 / day. The
power generation potential for the country using solar thermal generation about 35 MW/km.The
Ministry provided through IREDA, a generation based incentive of a maximum of Rs.12.00 per kWh (for
Solar PV) and Rs.10.00 per kWh (for Solar Thermal) generation to eligible projects, which are
commissioned by 31st December, 2009, after taking into account the power purchase rate (per kWh)
provided by the State Electricity Regulatory Commission or utility for that project. Any project
commissioned after 31st December, 2009 would be eligible for a maximum incentive with a 5% reduction
and ceiling of Rs.9.50 for solar thermal generation project

Opportunities for solar thermal power generation in India

Solar thermal power generation can play a significant important role in meeting the demand supply gap
for electricity. Three types of applications are possible
1. Rural electrification using solar dish collector technology
2. Typically these dishes care of 10 to 25 kW capacity each and use striling engine for power
generation. These can be developed for village level distributed generation by hybridizing them
with biomass gasifier for hot air generation.
3. Integration of solar thermal power plants with existing industries such as paper, dairy or sugar
industry, which has cogeneration units.
Many industries have steam turbine sets for cogeneration. These can be coupled with solar thermal power
plants. Typically these units are of 5 to 250 MW capacities and can be coupled with solar thermal power
plants. This approach will reduce the capital investment on steam turbines and associated power-house
infrastructure thus reducing the cost of generation of solar electricity
4. Integration of solar thermal power generation unit with existing coal thermal power plants. The
study shows that savings of upto 24% is possible during periods of high insulation for feed water
0
heating to 241 C (4).

INCENTIVE GIVEN BY CENTRAL GOVERNMENT

One of the major incentive provided by the Government of India for solar thermal systems is
100% accelerated depreciation i.e. the tax benefit in the first year of installation of the system
itself. However, there is no provision of tax benefits for individual consumers. In some states in
India, the owners of domestic solar thermal systems get rebate in their electricity bill, in terms of
2 to 3% reduction in tariff. The other incentives are as follows:

A. Indirect Taxes
Sales Tax
Exemption/reduction in Central Sales Tax and General Sales Tax are available on sale of
renewable energy equipment in various states.

B. Direct Taxes

Notification No. SO 276 (E)

(i)
Accelerated Depreciation on specified Non-conventional Renewable Energy
devices/systems in the first year of Installation of the projects. : 100%

PHOTOVOLTAIC CELL
Opportunities of photovoltaic cell in India
Basic off-grid Lighting and Electrification Systems
It is estimated that between US$ 2 to 4 billion are spent by the government every year on
subsidizing price of kerosene. PV lighting would greatly improve lighting and reduce the
dependency on kerosene and diesel
Irrigation pump
It is estimated, subsidize electricity for irrigation pumps and agriculture use by somewhere
between INR 300000 and INR 400000 each year. Electricity consumption by irrigation pump
accounts for 10% to 15% of Indias total consumption. There are estimated to be 21 million
irrigation pump are present out of which 9 million runs on diesel and rest 12 million on
electricity. So besides offsetting this huge consumption of electricity, PV also offers prospect of
kerosene and diesel.
Power back up for Cellular Tower
IN India it is estimated to have around 300000 cellular towers. Mostly of them are powered by
kerosene and diesel. Some leading Indian PV have already begun providing solution for cellular
tower in rural and un-electrified area
Captive power generation
Diesel based captive power generation is used extensively to overcome power supply deficit. It
is estimated that net captive power generate capacity to be around 20 GW to 25 GW
Urban application and highway lighting
Urban area present opportunities for street and traffic lighting, the use of PV for billboard

INDIAN SOLAR PV INDUSTRIES

Telecom Cummulative PV Module Pruduction in India
and Application
5%
Power
Others
Plant
14%
2%Pump
3%
St.
Light
Export
1%
69%
Home
light
4% Lantern
2%

As early 2008, India has 9 manufacturers of

solar cells and twice as many module makers.
Most of the proposal for silicon and wafer are
motivated by the governments announcement of
a Special Incentive Package Schemes (SIPS)
under its 2007 Semiconductor Policy.
About 69% of Indias solar cell and PV module
production have been exported in recent years,
especially as PV have grown in Europe

CAPITAL COST OF SOLAR POWER PROJECT

GERC
TEDA
IREDA
CERC

order 27-6-08
order 29-01-2010

INR 22.5 crs

INR 18 crs
INR 16.50 crs
INR 18-24 crs

Lr date 4-6-09
NCES regulations
dated 16-09

INR 22-25 crs

INR 16.90 crs

Capital cost per MW for CSP

system

UPERC

Draft 27-8-08

Capital cost per MW for PV

system

KERC

Reference

ORGANISATION

Capital cost is one of the most important parameters for solar power tariff determination. The
cost of a solar power project is mainly dependent on the cost of PV modules / plant and
machinery, technology adopted, location of the site and capacity. Over and above, there is a very
limited experience in this area of generation. The capital cost (in Rupees Crores/MW), available
as on date are:

INR 22.5 crs

INR 13 crs
INR 14-16 crs
INR 15-20 crs
INR 15.30 crs

With further development in technology and economies of scale, production costs for Solar
Energy Projects may decline and be competitive or at least comparable to other renewable
energy options. Commission is of the opinion that the capital cost suggested by CERC is
reasonable. Therefore, Commission proposes to consider a capital cost of Rs. 16.90 Crores / MW
for solar photovoltaic power project and Rs. 15.30 Crores / MW for solar thermal power project as
suggested by CERC in their order dated 25-02-2010.

REFERENCES

Consultative Paper on Comprehensive Tariff Order for Solar Photovoltaic and Solar
Thermal Power Plants up to 3 MW having grid connectivity below33 kV level
Rajasthan Solar Policy, 2010
The Energy and Resources Institute (TERI), India
The Solar PV Landscape in India by PV group
Detailed project report for developing Solar Power Plant at Bap, Jodhpur, Rajasthan