Solar Energy - India

February 2009
Executive Summary

Solar energy market in India is worth USD XX mn

Market
Accounts for less than x% of total installed renewable energy capacity

Government plans to increase the share of renewable energy to y% by 2032

Solar energy is harnessed through either of two methods:
– Solar Thermal Plant/Concentrated Solar Power Plant

E
– Solar Photovoltaic (SPV)

Drivers &
PL

Drivers: Positive government policies, entry of new players in polysilicon market, abundant solar
radiation in India, export demand for solar equipment
Challenges

SA
material imports
M

Challenges: High unit cost of solar energy, volatility in polysilicon prices, and dependence on raw

Increase in M&A activity in renewable energy sector

Trends
Domestic and international players are moving in solar energy space

Public and private investments have increased in solar energy market

Major players include Company AA, BB CC etc

Competition
New players entering the solar space include company DD

Companies have increased their investments in solar technology and products

SOLAR ENERGY – INDIA.PPT 2

•Introduction
•Market Overview
•Drivers & Challenges
•Trends
•Government Initiatives
•Competition
•Key Developments

SOLAR ENERGY – INDIA.PPT 3

 Renewable energy sources are gaining share in the total power
capacity in India
Overview Power Sector Break-up
• Principal renewable sources of energy are: 100 a% b% c% Renewable

Wind Energy
80

Small Hydro upto 25 MW

Biogas 60
x% y%

E

Solar Energy z% Conventional
40

L
• Renewable energy capacity reached ZZ MW, accounting

P
for x% of the total installed power capacity in India
• Renewable energy witnessed the growth of x% in
20

2007

S M
installed capacity from AA MW in 2002 to BB MW in

A
• The Ministry of New and Renewable Energy (MNRE)
plans to take the total renewable energy capacity to
2002 2007
Thermal
x%
2008*

more than X MW during 11th Five-Year Plan

• Wind energy accounts for x% of the total renewable
energy capacity u%
Nuclear z% y%
Renewable
Hydro

India
India plans
plans to
to more
more than
than double
double its
its renewable
renewable energy
energy capacity
capacity by
by 2012
2012
* As of Feb, 20--
Source:

SOLAR ENERGY – INDIA.PPT 4

 Solar energy is at a nascent stage in India and the Solar
Photovoltaic method of power generation is dominant
Overview Capacity and Growth
•Solar energy market is worth USD XX mn Sources / Systems Estimated Cumulative
potential Achievement*

Solar energy accounts for a fraction (less than x%) of
the total renewable energy installed capacity in India Distributed Renewable Power
Solar power - XY MW
•India has long term goal of generating x% of the

2032

P
•Solar energy can be harnessed through twoLE
country’s electricity from renewable sources by Decentralized Energy Systems
SPV Program
Solar Street Lighting
ZZ MW/ Sq.Km
- AA nos.
methods –

SAM

Solar Photovoltaic (SPV) - converts light
directly into electricity
Home Lighting System
Solar Lantern
Solar Power Plants
-
-
-
BB nos.
CC nos.
DD Mwp
– E.g. Standalone Power Plant Solar Photovoltaic Pumps - EE nos.
– MNRE has funded xx grid interactive SPV power Solar Thermal Program -
plants with total capacity of yy MW Solar Water Heating Y million Sq. m X million Sq. m

Solar Thermal/Concentrated Solar Power System collector area collector area
(CSP) - converts light first into heat and then Solar Cooker - A mn
electricity • Distributed Renewable Power – Grid interactive
– Examples Water Heating, Solar Ponds, Solar • Decentralized Energy Systems – Off-Grid
Cooker, Solar Air Heating
* As of October 31, 20--
Source:

SOLAR ENERGY – INDIA.PPT 5

Drivers and Challenges

Challenges
Drivers Solar Power Unaffordable due to high
costs
Tropical Location High dependence on raw material
import
Government initiatives
Volatility in polysilicon prices
New players entering polysilicon
market Land scarcity

Major export demand

Minimal fuel and environmental risks

SOLAR ENERGY – INDIA.PPT 6

Key Trends

Increase in M&A activity

Trends

New players entering solar Increase in public and private

energy market investments

SOLAR ENERGY – INDIA.PPT 7

 Government is providing various direct and indirect incentives to
encourage investment in solar energy..
• Financial assistance amounting upto INR -- per KW hour in case of solar PV with
Direct Initiatives maximum capacity of X MW and upto INR -- per KW in case of thermal Power plant for a
period of x years
• Indian Renewable Energy Development Agency (IREDA) provides revolving fund to
financing and leasing companies offering credit for the purchase of PV systems

LE
• Direct Investment of up to x% is permitted in non-conventional energy sector through

P
the automatic route

Indirect Initiatives
SAM
• In March 20-- the Indian government announced a semiconductor policy under its
Special Incentive Package Scheme (SIPS)

Type of Unit Threshold NPV of Incentives in SEZ Incentives in Non - SEZ

investment
Fabrication* USD – bn x% a% + Exemption from CVD
Eco-System USD – bn y% b% + Exemption from CVD

Source:

SOLAR ENERGY – INDIA.PPT 8

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SOLAR ENERGY – INDIA.PPT 9