MDI

GURGAON

Photovoltaic Cells And Its Potential In India

Policies, Cost and Future

VarunGarg 11P179 PGPM201113

8/23/2012

Certificate of Approval
The CIS report titled Economics of Energy and Environment submitted by Varun Garg is hereby approved as a certified study in Management carried out and presented in a manner satisfactory to warrant its acceptance as a prerequisite for the award of Post Graduate Diploma in Management for which it has been submitted. It is understood that by this approval the undersigned do not necessarily endorse or approve any statement made, opinion expressed or conclusion drawn therein but approve theCISReportonlyforthepurposeitissubmitted. SignatureofFacultyGuide

ACKNOWLEDGEMENT
Theprojectundertakenby me wouldnothave been possible without the supportwhich Ireceived from manyindividualsandinstituteasawhole.Iamgratefultoallofthem. I take immense pleasure in thanking Prof. Sajal Ghosh in giving me this opportunity to work under his guidance. I wish to express my deep sense of gratitude to him for his able guidance and useful suggestions, which helped me in completing the project work, in time. My learning has improved significantly over the past few months under his guidance. He was always available for any help that I neededforthiscourse.Hisexpertiseinthedomainofenergysectorhelpedmedoagoodwork.Hegave mevaluableinputsduringthecourseandhelpedmerectifymymistakes.Iwouldalsothankhimforthe readingmaterials,booksandjournalshesuggestedtome. Iwouldalsoliketoacknowledgethehelpextendedbylibrarystaff.Libraryandinternetresourcesofthe collegecameinhandyforthecompletionofmywork.Ithankeveryoneforthesupportprovidedforthe successfulcompletionofthiscourse. VarunGarg 11P179 PGPM201113

Table of Contents
Figures...........................................................................................................................................................6 Tables............................................................................................................................................................7 EnergyScenarioinIndia................................................................................................................................8 NonRenewableSourcesofEnergyinIndia.............................................................................................. 9 NonRenewableSourcesofEnergy......................................................................................................... 10 SolarEnergy................................................................................................................................................12 SolarEnergyinIndia............................................................................................................................... 13 PhotovoltaicCells........................................................................................................................................14 TypesofPVCells.....................................................................................................................................16 PerformanceofPVCells.......................................................................................................................... 17 LimitationsofPVCells............................................................................................................................. 18 TechnologicalChallenges.................................................................................................................... 18 EfficiencyChallenges........................................................................................................................... 18 EnvironmentalChallenges.................................................................................................................. 19 PastTrendsandFutureRoadmap........................................................................................................... 19 PastTrends..........................................................................................................................................19 FutureRoadmap.................................................................................................................................20 EconomiesofPhotovoltaicCells............................................................................................................. 21 SolarEnergyPotentialinIndia.................................................................................................................... 27 IndianSolarLandscape........................................................................................................................... 30 TheGovernmentPolicyandActiononSolarEnergyUtilization.................................................................33 SpecialIncentivesPackageSchemes(SIPS)............................................................................................ 35 SEZPolicy................................................................................................................................................36 JawaharLalNehruNationalSolarMission(JNNSM)............................................................................... 37 Generationbasedincentivescheme....................................................................................................... 37 StateLevelInitiatives.............................................................................................................................. 38 AndhraPradesh ...................................................................................................................................38 Karnataka............................................................................................................................................38 Gujarat................................................................................................................................................38 Haryana...............................................................................................................................................38 Rajasthan.............................................................................................................................................38

OtherInitiatives......................................................................................................................................39 KeyProjectsinIndia................................................................................................................................40 ApplicationsofPhotovoltaicCells............................................................................................................... 41 Solarphotovoltaic(PV)optionsforruralelectrification.........................................................................41 SolarLanterns.....................................................................................................................................41 SolarHomeLightingSystem............................................................................................................... 41 SolarPVMicroGrid.............................................................................................................................. 41 SolarPVbasedirrigationpumpsets...................................................................................................... 42 RooftopPVsystemsfordieseluseabatement....................................................................................... 42 SolarPVforTelecomTowers.................................................................................................................. 43 ApplicationinotherIndustries............................................................................................................... 43 CurrentScenarioinIndia............................................................................................................................ 47 InvestmentLandscape............................................................................................................................ 48 Recommendations......................................................................................................................................51 Bibliography................................................................................................................................................52

Figures
Figure1:AnoverviewofthestepsrequiredtoproduceacSibasedsolarPVsystem ..............................15 Figure2:CommercialModuleEfficiencies .................................................................................................. 19 Figure3:Indicativelevelizedcostcomparisonofpowerfromdifferentfuels...........................................21 Figure4:SolarPVSystemPricesGlobally................................................................................................... 22 Figure5:GridParitycomparisonsforConventionalPowerandRooftopPVCells.....................................25 Figure6:GridParitycomparisonsforConventionalPowerandLargeScaleUtilities................................25 Figure7:PowerGenerationcapacitybySource......................................................................................... 28 Figure8:AnnualAverageSolarRadianceinIndia...................................................................................... 31

Tables
Table1:EnergyIndicatorsin2010................................................................................................................ 8 Table2:Efficienciesofdifferentcommerciallyavailablephotovoltaicmodules.......................................17 Table3:AverageLCPcostsforMajorIndianstatesandIndia....................................................................24 Table4:RequiredandInstalledElectricityRequirements..........................................................................27 Table5:RegionwisePowerDemandsupplyscenarioinIndia..................................................................27 Table6:CumulativeDeploymentofVariousRenewableEnergySystems/DevicesintheCountryason 31/01/2012.................................................................................................................................................29 Table7:Regionswithhighestsolarpotential............................................................................................. 32 Table8:TimelineofIndia'sElectricity/SolarPolicy.................................................................................... 34 Table9:InvestmentProposalsunderSIPS .................................................................................................. 36 Table10:PhasedimplementationunderJNNSM....................................................................................... 37 Table11:GridConnectedSolarPowerPlantsin2012............................................................................... 39 Table12:ListoftheProjectDevelopers..................................................................................................... 40 Table13:CostStructureofCrystallineSiliconValueChain........................................................................48 Table14:KeyplayersintheSolarPVIndustry............................................................................................ 48 ........................................................................................................ 49 Table15:JVsinSolarIndustryinIndia Table16:Top5PE/VCtransactions(200510)........................................................................................... 50

Energy Scenario in India

Indiatodayisfacingahugechallengeintermsofbeingenergyefficient.Itneedstoprovideadequate energytothepeopleatanoptimumcost. Fromthelevelsof200304,tomaintaina89%growth,Indianeedsitsprimaryenergytoincreaseby3 to4timesanditselectricitygenerationtoincreaseby5to6times.Indiascommercialenergysupply needstogrowatarateof5.2%to6.1%perannumandthetotalprimaryenergysupplytogrowat4.3% to5.1%annually.By203132powergenerationcapacitymustincreasetonearly8,00,000MWfromthe currentinstalledcapacityof1,60,000MW.Inthesamemannerthecoalrequirements,whichisthe dominantfuelinIndiasenergymixtoincreasetoover2billiontonnes/annumbasedondomestic qualityofcoal.MeetingtheenergychallengeisoffundamentalimportancetoIndiaseconomicgrowth imperativesanditseffortstoraiseitslevelofhumandevelopment.(PlanningCommission,2006). Indiasenergyrequirementsmustbeabletofulfilltheenergyservicesofallthesectorsatcompetitive prices.MeetingthiswillrequirethatIndiapursueallavailablefueloptionsandformsofenergy,both conventionalandnonconventional.AlsoIndianeedstoseeknewenergyresourcesandgofornewand emergingenergy.AlsoIndiamustpursuetechnologiesthatmaximizeenergyefficiencyandhelpsin demandsidemanagementandconservation.Alongwiththatcoalintheprimarysourceforenergyin India,butIndianeedstolookforothersourcestoo. PercapitaconsumptionisthelowestinIndia,withIndiaconsumingalmost540kgoe(kilogramsofoil equivalent)perpersonenergy.Whereasforrestoftheworld,thefigurewas1600inChina,8035in UnitedStatesandtheworldaverageis1803. Countries/ Regions Population (millions) GDP Per Capita (PPP) 2000USD 9549 27620 8191 8996 TPES Per Capita (kgoe) 1803 4560 2990 3650 2010 1600 650 1240 670 540 TPES/GDP (kgoe 2000USD) 0.19 0.17 0.37 0.41 0.19 0.19 0.16 0.15 0.26 0.14 Elec. Kwh/ Cons/capita $2000 (kwh) PPP 2782 8486 3384 4660 3378 2471 719 1956 571 566 0.29 0.31 0.41 0.52 0.32 0.30 0.18 0.23 0.22 0.15

World 6688 OECD 1190 Middle East 199 Former 285 USSR Non OECD 53 10471 Europe China 1333 8311 Asia*** 2183 4013 Latin 462 8522 America Africa 984 2540 India 1139.97 3781 Table1:EnergyIndicatorsin2010 Source:(Agency,2010)

Itisexpectedthatwithagrowthrateof9%TPESrequirementforIndiain202122willbearound1192 Mtoewhichwillfurtherincreasetoaround2043Mtoebytheyear203132. TheelectricityconsumptionpercapitaforIndiaisjust566KWhwhichisfarbelowmostothercountries orregionsintheworld.Eventhough85%ofvillagesareconsideredelectrified,around57%oftherural householdsand12%ofurbanhouseholds,i.e.84millionhouseholdsinthecountry,donothaveaccess toelectricity.ElectricityconsumptioninIndiaisexpectedtorisetoaround2280BkWhby202122and around4500BkWhby203132. Consumersandeconomybearalargeburdenduetothepoorqualityofpowersupply.Industries maintaindieselpoweredgeneratorsandhouseholdshaveinvertorswithbatteriesasbackupfor unscheduledpowercuts,lowvoltagesorvariablefrequency.Equipmentisfrequentlydamaged[dueto theerraticelectricitysupply].Addedtotheseisthecostofidlemanpowerandlossofproductionwhen powersupplyisinterrupted.Powercapacityhasrisenatarateof5.87%perannumoverlast25years. Thetotalsupplyofelectricityhasrisenattherateof7.2%perannumoverthesameperiod.(Ministryof Power).TheMinistryofPowerhassetatargetofadding1,00,000MWofgenerationcapacitybetween 20022012.Itincludesthe41,110MWcapacityadditionsproposedinthe10thPlantoensurethe availabilityofreliableandqualitypoweraswellasthecreationofanadequatereservemargin.But historicallytheplantargetshaveneverbeenmet,andeveninthe10thPlan,thelikelycapacityaddition willactuallybeunder40,000MW.

NonRenewable Sources of Energy in India

Indiahascontraintinenergyresourcesandimportpossibilities.Indiaisnotwellendowedwithnatural energyresources.Reservesofoil,gasandUraniumaremeagerthoughIndiahaslargereservesof thorium.Whilecoalisabundant,itisregionallyconcentratedandisoflowcalorieandhighashcontent, thoughithastheadvantageoflowsulfurcontent.Theextractablereservesarelimited.Indiahasa singnificantHydropotential,butissmallcomparedtoIndiasneedsanditscontributionintermsof energyislikelytoremainsmall. Coal:Itaccountsfor55%ofthecountry'senergyneed.Commercialprimaryenergyconsumptionin Indiahasgrownbyabout700%inthelastfourdecades.Becauseofthelimitedreservepotentialityof petroleum&naturalgas,ecoconservationrestrictiononhydroprojectsandgeopoliticalperceptionof nuclearpower,coalwillcontinuetooccupycentrestageofIndia'senergy(MinistryofCoal).Withhard coalreservesaround246billiontonnes,ofwhich92billiontonnesareproven,Indiancoaloffersa uniqueecofriendlyfuelsourceforthedomesticenergymarketforthenextcenturyandbeyond.Outof atotalof171926MWofelectricitygenerated,coalpoweredthermalpowerplantsaccountedfor92418 MWasofFebruary,2011indicatingthatmostofIndiaselectricityneedsaredependentoncoal. Petroleum/Oil:Indiahastotalreserves(provedandindicated)of1201millionmetrictonnesofcrude oil.Crudeoilproductionduring200910at33.69millionmetrictonneswas0.55%higherthanthe33.51 millionmetrictonnesproducedduring200809.Theconsumptionofpetroleumproductsduring2009 10was138.196millionmetrictonnes(includingsalesthroughprivateimports)whichis3.60%higher thanthesalesof133.400millionmetrictonnesduring200809(IndiaM.o.).Duetorapidurbanisation

andgrowthofautomobilesthedemandforpetroleumproductswillwitnessagrowthindemandandit isexpectedtorisetomorethan240millionmetrictonnesby202122whichwillfurtherincreaseto around465millionmetrictonnesby203132consideringahighoutputgrowth.Indiahasatotal installedcapacityof1199.75MWofoilbasedpowerplantswhichisnotsubstantialandthepriceper unitofkwhrangesfromINR7.60toINR8.00. NaturalGas:Indiahastotalreserves(provedandindicated)of437billioncubicmetersofnaturalgasas of1stApril2010.GrossProductionofNaturalGasinthecountryat47.51billioncubicmetersduring 200910was44.63%higherthantheproductionof32.85billioncubicmetersduring200809.Thetotal installedcapacityofgasfiredplantsasofFebruary2011stoodat17706MW.TheflaringofNaturalGas in200910at2.09%ofgrossproductionislowerthanthe3.29%in200809(PetroleumFederationof India)[15].Naturalgascanreplaceexistingfuelsinvarioussectorsbothforfeedstockaswellasfor energypurposes.Withdomesticproductionofjustover140millionstandardcubicmetersperday meetingbarelyhalfthedemand,Indiaisimporting10milliontonsofliquefiednaturalgasperannum andislookingatunconventionalsourceslikeshalegas.Thecostofpowerobtainedbyusingnaturalgas variesfromINR2.90toINR4.60perKWhandpowerobtainedthroughnaturalgasismainlyusedas peakingpower. NuclearEnergy:NuclearpoweristhefourthlargestsourceofelectricityinIndiaafterthermal, hydroelectricandrenewablesourcesofelectricity.Asof2010,Indiahas20nuclearreactorsinoperation insixnuclearpowerplants,generating4,780MWwhile5otherplantsareunderconstructionandare expectedtogenerateanadditional2,720MW.India'snuclearpowerindustryisundergoingrapid expansionwithplanstoincreasenuclearpoweroutputto64,000MWby2032.

NonRenewable Sources of Energy

RenewableenergyhasstartingmakingvisibleimpactintheIndianenergyscenario.Apartfrom contributingtoaround12%inthenationalelectricinstalledcapacity,renewableenergybased decentralizedanddistributedapplicationshavebenefitedmillionsofruralfolkbymeetingtheircooking, lightingandotherenergyrequirementsinanenvironmentallybenignmanner. BiomassPowerandBagasseCogenerationProgram:Itaimsattheutilizationofbiomass,suchasagro wasteintheformofstraws,stalks,stemsandfibres;agroindustrialprocessingresiduessuchasshells, husks,deoiledcakes,woodfromdedicatedenergyplantationsandbagassefromsugarmills,forpower generationusingcombustiontechnology.Thecurrentpotentialforpowergenerationfromsurplusagro andagroindustrialresiduesisestimatedat17000MW.Thetotalestimatedbiomasspowerpotentialis about22,000MW. WindPower:Thewindpowerprogramisthefastestgrowingrenewableenergyprogram[inIndia]andis almostentirelycomingthroughprivatesectorinvestments.Indiahasapotentialofaround48,500MW. Withacapacityadditionof12,800MW,itcontributestoaround75%ofthegridconnectedrenewable energypowerinstalledcapacity. SmallHydroPower:TheestimatedpotentialforpowergenerationinIndiafromsmallhydroplantsis about15,000MWfrom5718identifiedsites.Sofarover760smallhydropowerprojectsaggregatingto

2,803MWhavebeensetupinvariouspartsofthecountryand285projectsofabout940MWarein variousstagesofimplementation. Solarpower:Amongthevariousrenewableenergyresources,Indiapossessesaverylargesolarenergy potential;mostpartsofthecountryareblessedwithgoodamountsofsunshine.Thereareabout300 clearsunnydaysinayearinmostpartsofcountry.TheaveragesolarradiationincidentoverIndiavaries from4kWh/day7kWh/day.ThesolarradiationreceivedovertheIndianlandareaisestimatedtobe about5,000trillionkWh/year.

Solar Energy
Solarenergy,theradiantlightandheatfromthesun,hasbeenharnessedbyhumanssinceancient timesusingarangeofeverevolvingtechnologies.Solarenergytechnologiesincludesolarheating,solar photovoltaics,solarthermalelectricityandsolararchitecture. Solartechnologiesarecharacterizedaseitherpassivesolaroractivesolardependingonthewaythey capture,convertanddistributesolarenergy.Activesolartechniquesincludetheuseofphotovoltaic panelsandsolarthermalcollectorstoharnesstheenergy.Passivesolartechniquesincludeorientinga buildingtotheSun,selectingmaterialswithfavorablethermalmassorlightdispersingproperties,and designingspacesthatnaturallycirculateair. In2011,theInternationalEnergyAgencysaidthat"thedevelopmentofaffordable,inexhaustibleand cleansolarenergytechnologieswillhavehugelongertermbenefits.Itwillincreasecountriesenergy securitythroughrelianceonanindigenous,inexhaustibleandmostlyimportindependentresource, enhancesustainability,reducepollution,lowerthecostsofmitigatingclimatechange,andkeepfossil fuelpriceslowerthanotherwise.Theseadvantagesareglobal.Hencetheadditionalcostsofthe incentivesforearlydeploymentshouldbeconsideredlearninginvestments;theymustbewiselyspent andneedtobewidelyshared"(SolarEnergy). Therearetwomainkindsofsolarenergy: Solarphotovoltaic(PV)directlyconvertssolarenergyintoelectricityusingaPVcellmadeofa semiconductormaterial. Concentratingsolarpower(CSP)devicesconcentrateenergyfromthesunsraystoheatareceiverto hightemperatures.Thisheatistransformedfirstintomechanicalenergy(byturbinesorotherengines) andthenintoelectricitysolarthermalelectricity(STE). Duringtheperiod200011,solarPVwasthefastestgrowingrenewablepowertechnologyworldwide. CumulativeinstalledcapacityofsolarPVreachedroughly65gigawattsattheendof2011,upfromonly 1.5GWin2000.In2011,GermanyandItalyaccountedforoverhalftheglobalcumulativecapacity, followedbyJapan,Spain,theUnitedStatesandChina. Concentratedsolarpowerisareemergingmarket.Roughly350megawatts(MW)ofcommercialplants werebuiltinCaliforniainthe1980s;activitystartedagainin2006intheUnitedStates,andSpain.At present,thesetwocountriesaretheonlyoneswithsignificantCSPcapacity,withrespectivelyabout1 GWand500MWinstalled,andmoreunderconstructionordevelopment. AccordingtoIEAanalysis,underextremeassumptionssolarenergycouldprovideuptoonethirdofthe worldsfinalenergydemandafter2060.SolarEnergyPerspectivesoutlinesaboldwhatifscenariofor reachingthisambitioustarget.Anumberofassumptionsaremadetoseewhatmightbepossiblein termsofsolardeployment,whilekeepingaffordabilityinsight.Theseincludepolicymakerssuccessfully reducinggreenhousegasemissionsbeyondthecurrentinternationaltargets,andelectricitydriven technologiesfosteringsignificantenergyefficiencyimprovementsanddisplacingfossilfuelsinmany

usesinbuildings,industryandtransportation.Whileabroadrangeofaggressivepolicieswillbeneeded, thistargetisachievable(IEA:Solar(PVandCSP)).

Solar Energy in India

Indiapossessesaverylargesolarenergypotential;mostpartsofthecountryareblessedwithgood amountsofsunshine.Thereareabout300clearsunnydaysinayearinmostpartsofcountry.The averagesolarradiationincidentoverIndiavariesfrom4kWh/day7kWh/day.Thesolarradiation receivedovertheIndianlandareaisestimatedtobeabout5,000trillionkWh/year.In2008,aNational ActionPlanonClimateChangewasannounced,whichincludedeightmajornationalmissionswiththe oneonsolarenergybeingthecentrepiece.Thismissionwasamajorstepupintheutilizationofsolar energyforpowergenerationandotherpurposes.TheJawaharlalNehruNationalSolarMission(JNNSM) waslaunchedbythePrimeMinisterofIndiainJanuary2010,withatargetof20,000MWgridsolar power(basedonsolarthermalpowergeneratingsystemsandsolarphotovoltaic(SPV)technologies), 2000MWofOffgridcapacityincluding20millionsolarlightingsystemsand20millionsq.m.solar thermalcollectorareaby2022.Anewarchitecturehasbeendesignedforthe1000MWprojects.These willbeimplementedthroughNTPCVidyutVyaparNigam(NVVN)(Garg,2012).

Photovoltaic Cells
Photovoltaics(PV)isamethodofgeneratingelectricalpowerbyconvertingsolarradiationintodirect currentelectricityusingsemiconductorsthatexhibitthephotovoltaiceffect.Photovoltaicpower generationemployssolarpanelscomposedofanumberofsolarcellscontainingaphotovoltaicmaterial. Materialspresentlyusedforphotovoltaicsincludemonocrystallinesilicon,polycrystallinesilicon, amorphoussilicon,cadmiumtelluride,andcopperindiumgalliumselenide/sulfide.Duetothegrowing demandforrenewableenergysources,themanufacturingofsolarcellsandphotovoltaicarrayshas advancedconsiderablyinrecentyears(Photovoltaics). Thesolarcellsoncalculatorsandsatellitesarealsocalledphotovoltaic(PV)cells.Asthenamesuggest photomeaning"light"andvoltaicmeaning"electricity",convertsunlightdirectlyintoelectricity.A moduleisagroupofcellsconnectedelectricallyandpackagedintoaframealsoknownasasolarpanel, whichcanthenbegroupedintolargersolararrays. Photovoltaiccellsaremadeofsemiconductorssuchassilicon.Basically,whenlightstrikesthecell,a certainportionofitisabsorbedwithinthesemiconductormaterial.Thismeansthattheenergyofthe absorbedlightistransferredtothesemiconductor.Theenergyknockselectronsloose,allowingthemto flowfreely. PVcellsalsoallhaveoneormoreelectricfieldthatactstoforceelectronsfreedbylightabsorptionto flowinacertaindirection.Thisflowofelectronsisacurrent,andbyplacingmetalcontactsonthetop andbottomofthePVcell,wecandrawthatcurrentoffforexternaluse,say,topoweracalculator.This current,togetherwiththecell'svoltage(whichisaresultofitsbuiltinelectricfieldorfields),defines thepower(orwattage)thatthesolarcellcanproduce(HowStuffWorks:HowSolarCellsWork).

 Figure1:AnoverviewofthestepsrequiredtoproduceacSibasedsolarPVsystem Source:RBSCapitalMarketsResearch Siliconisaveryshinymaterial,whichcansendphotonsbouncingawaybeforethey'vedonetheirjob,so anantireflectivecoatingisappliedtoreducethoselosses.Thefinalstepistoinstallsomethingthatwill protectthecellfromtheelementsoftenaglasscoverplate.PVmodulesaregenerallymadeby connectingseveralindividualcellstogethertoachieveusefullevelsofvoltageandcurrent,andputting theminasturdyframecompletewithpositiveandnegativeterminals. However,theefficiencyofPVcellsisveryless.In2006,forexample,mostsolarpanelsonlyreached efficiencylevelsofabout12to18percent.Themostcuttingedgesolarpanelsystemthatyearfinally muscleditswayovertheindustry'slongstanding40percentbarrierinsolarefficiencyachieving40.7 percent. Reasonforlowefficiency Lightismadeupofdifferentwavelengths.Thelightthathitsourcellhasphotonsofawiderangeof energies,someofthemdonthaveenoughenergytoalteranelectronholepair.Theysimplypass

throughthecellasifitwastransparent.Whileotherphotonshavetoomuchenergy.Onlyacertain amountofenergy,measuredinelectronvolts(eV)anddefinedbythecellmaterial(about1.1eVfor crystallinesilicon),isrequiredtoknockanelectronloose.Thisiscalledthebandgapenergyofa material.Ifaphotonhasmoreenergythantherequiredamount,thentheextraenergyislost.These twoeffectsalonecanaccountforthelossofabout70percentoftheradiationenergyincidentonour cell. Ifwechoseamaterialwhichhasverylowbandgapenergytoreducethelosses.Butthebandgapalso determinesthestrength(voltage)oftheelectricfield,andifit'stoolow,thentheadvantageofextra currentbyabsorbtionofmorephotonsislostbyhavingasmallvoltageaspowerisvoltagetimes current.Theoptimalbandgap,balancingthesetwoeffects,isaround1.4eVforacellmadefroma singlematerial. Thereareotherlossesaswell.Theelectronshavetoflowfromonesideofthecelltotheotherthrough anexternalcircuit.Thebottomcanbecoveredwithametal,allowingforgoodconduction,butiftopis covered,thenphotonscan'tgetthroughtheopaqueconductorandallofthecurrentislost.Siliconisa semiconductorandisnotnearlyasgoodasametalfortransportingcurrent.Itsinternalresistanceis fairlyhigh,andhighresistancemeanshighlosses.Tominimizetheselosses,cellsaretypicallycoveredby ametalliccontactgridthatshortensthedistancethatelectronshavetotravelwhilecoveringonlya smallpartofthecellsurface.Evenso,somephotonsareblockedbythegrid,whichcan'tbetoosmallor elseitsownresistancewillbetoohigh.

Types of PV Cells
ThemostcommonPVcellsaremadefromsinglecrystalsiliconbuttherearemanyvariationsincell material,designandmethodsofmanufacture.SolarPVcellsareavailableascrystallinesilicon, amorphoussiliconcellssuchasCadmiumTelluride(CdTe),CopperIndiumdiselenide,andcopper indiumgalliumdiselenide(CIGS),dyesensitisedsolarcellsDSSCandothernewertechnologiessuchas siliconnanoparticleink,carbonnanotubeCNTandquantumdots(PERFORMANCEOFSOLARPOWER PLANTSININDIA,February2011). Mostcommerciallyavailablesolarcellshavealifespanofatleasttwentytotwentyfiveyears.Outofthe followingtypesofPVcells,onlyfirsttwoarecommerciallyavailableglobally. Crystallinesilicon(cSi)modulesrepresent85to90%oftheglobalannualmarkettoday.These aresubdividedinto:i)monocrystalline(monoSi);andii)polycrystalline(polySi).Metallurgical gradesiliconisrefinedtoformcloseto99%puresilicon.Siliconingotsareobtainedfrommolten polysilicon.Wafersaremadebywiresawingblockcastsiliconingotsintoverythin(180to350 micrometre)slices.Twosidesofthewaferaredopedwithtwodifferentdopantsonesideis leftelectrondeficient(theplayer)andtheothersidehasanexcessofelectrons(thenlayer). ThisformsaPNjunctionafewhundrednanometresbelowthesurface,whichcreatesan electricfieldacrossthejunction(PNjunction). Thinfilmscurrentlyaccountfor10to15%ofglobalPVmodulesales.Thesearesubdividedinto threemainfamilies:i)amorphous(aSi);ii)cadmiumtelluride(CdTe);andiii)copperindium

diselenide(CIS)andcopperindiumgalliumdiselenide(CIGS).Thinfilmmodulesarecreatedby coatingentiresheetsofglassorsteel(calledsubstrate)withthinlayersofsemiconductor materialsratherthangrowing,slicingandtreatingacrystallineingot. Emergingtechnologiesincludeadvancedthinfilms,dyesensitisedcellsandorganiccells. Concentratorphotovoltaic(CPV)technologiesuseanopticalconcentratorsystemthatfocuses solarradiationontoasmallhighefficiencycell. Multijunctioncellsareasubclassofphotovoltaiccellsdevelopedforhigherefficiency.These usemultiplelayersofsemiconductormaterial(fromthegroupIIIandVelementsoftheperiodic table)toabsorbandconvertmoreofthesolarspectrumintoelectricitythanisconvertedby singlejunctioncells. Heterojunctionwithintrinsicthinlayer(HIT)solarcellsarecomposedofmonothincrystalline siliconwafersurroundedbyultrathinamorphoussiliconlayers.

(Raghavan,etal.,2010) Thin Films Waferbased cSi MonoSi MultiSi aSi;aSi/cSi CdTe 1520% 1517% 69% 911% Table2:Efficienciesofdifferentcommerciallyavailablephotovoltaicmodules Source:(PERFORMANCEOFSOLARPOWERPLANTSININDIA,February2011) Crystallinesilicon(cSi)modulesconstitutes8590%oftheglobalannualmarkettoday.CSimodulesare subdividedintwomaincategories:i)singlecrystalline(scSi)andii)multicrystalline(mcSi). Thinfilmscurrentlyaccountfor10%to15%ofglobalPVmodulesales.Theyaresubdividedintothree mainfamilies:i)amorphous(aSi)andmicromorphsilicon(aSi/cSi),ii)CadmiumTelluride(CdTe),and iii)CopperIndiumDiselenide(CIS)andCopperIndiumGalliumDiselenide(CIGS). Emergingtechnologiesencompassadvancedthinfilmsandorganiccells.Concentratortechnologies (CPV)useanopticalconcentratorsystemwhichfocusessolarradiationontoasmallhighefficiencycell. Theabovetechnologiesaremainlyusedonrooftopsofcommercialandresidentialbuildings,andas largescalegridconnectedpowerplants.Foroptimumoutput,largerinstallationsusetrackingdevices whichchangetheorientationofthepanelstocorrespondwiththetrajectoryofthesuntofocussunlight directlyontothepanels.

CIS/CIGS 1012%

Performance of PV Cells
Performanceofsolarenergypanelscanbeevaluatedbasedonseveralcriteria,andthethreemost importantmeasurementsare: Ratedpoweratstandardtestconditions:Itisameasurementofhowmuchpower,measuredinpeak watts(Wp),thatasolarpanelwillgenerateunderasetofconditionscalledStandardTestConditions (STC),namely,1,000Wofsolarirradiancedeliveredpersquaremetreofsurface,moduletemperature of25Candsolarspectrumofairmass(AM)1.5(atnoononacleardayatsealevel).STCareideal

conditionsrarelyseeninthefield;however,theyallowforacomparisonoftherelativeperformanceof differentsolarmodules. Ratedpowerpersquaremetre:Thismeasurestheamountofpowergenerated,underSTC,persquare metreofthesolarpanelarea.Itisalsoknownaspowerdensity.Thismeasurementisusefulbecausethe highertheefficiencyofthesolarpanel,thelessareneededforgeneratingacertainamountofenergy. Efficiency:Solarpanelefficiencyissimplytheratioofoutputpowertoinputpower. Temperature:Athighertemperatures,theperformanceofthePVmodulesdrops. Shading:APVmoduleselectricaloutputisextremelysensitivetoshading. Dust:Particlesofdustandotherlintonthesurfaceofthemodulecanabsorbsunlightandthusreduce theamountoflightthatactuallystrikesthecells.Thus,maintenanceofthePVpanelisimperative;else theamountofelectricitygeneratedwilldrop.

Limitations of PV Cells
ElectricityproductionfromsolarPVisfreeofnoiseandwithoutthereleaseofanytoxicsubstances.But duringthemanufactureofsolarcellstherearevaryingdegreesoftechnologicalchallengescoupledwith issuesofefficiency,economyandenvironmentalimpact. Technological Challenges Crystallinesiliconsolarcellshavealargesurfaceareaandrelativelyhighconversionefficiency.Butthe cellsrequirehighinputslikeenergyandlabourduringthemanufacturingproccessandisheavily dependentonpuresolargradesilicon,whichhashadalimitedsupply.Whereas,thinfilmtechnology hastheadvantageintermsofbettercosteconomicsforelectricitygeneration;lowermaterial(silicon) usage;andlowerenergyrequirements.However,thelandrequirementforthistechnologyishigher. OrganicPVcellshavelargebandgapsthatreduceefficiencies.BothorganicanddyesensitisedPVcells havestabilityissuesrelatedtothematerialsusedinproduction.Themostpromisingtechnologyisthe multijunctioncellsusedinconjunctionwithCPV. Efficiency Challenges Cellefficiencyhasbeenontherise,andpolycrystallinecellstodayhaveanefficiencyof18%and monocrystallinealmost23%.Withincreasingstandardisationofmanufacturingequipmentand improvingefficienciesofmodules,itisexpectedthatPVsystemefficiencywillimproveinthenearterm. cSiefficienciesareat17to19%andthethinfilmefficienciesareat7to11%asof2008.Inresearch laboratories,multijunctioncellscombinedwithlightconcentratingopticsandsophisticatedsuntracking systems(essentiallyCPV)havedemonstratedthehighestsunlighttoelectricityconversionefficienciesof anyPVtechnologiesat41.6%.Otherresearchcellefficienciesrangefrom20%toalmost28%forcSi cells;12%toalmost20%forthinfilm;andabout5%upto11%fortheemergingPVtechnologiesorganic cellsanddyesensitisedcellsrespectively.

 Figure2:CommercialModuleEfficiencies Source:(SolarPVIndustry:GlobalandIndianScenario,2008) Environmental Challenges Intermsoftoxicity,onlylowenvironmentaleffectsareexpectedforcSitechnologies.However,CdTe andCIScelltechnologiesareconsideredmoreproblematicduetotheirhighcontentofcadmium(Cd), selenium(Se),tellurium(Te)andcopper(Cu).Inaddition,duringthemanufactureofCISmodules gaseoustoxicsubstances(forexample,hydrogenselenide[H2Se])maybeproduced,whicharegenerally associatedwithacertainenvironmentalhazardpotential.Theenvironmentalimpactofthinfilmsilicon cellsissimilartothatofthewafersiliconcell,butreducedinmagnitudebecauseofthesmallervolume ofsiliconused.

Past Trends and Future Roadmap

Inthepreviousdecade,thesolarPVindustrygrewbyalmost50%annually.Crystallinesiliconhashad about90%ofthetotalvolumeinthatmarket.Theindustryhasbeensuccessfulinincreasing productivityandefficiencyacrossthevaluechain. Past Trends Threemainstepshavebeentakenforcostsaving: reductioninmaterialconsumption(reductioninwaferthickness) increaseindeviceefficiency

advancedhighthroughputmanufacturing

Eachofthesehascontributedsignificantlytoenhancingtheviabilityofsolarinworldenergymarkets. Waferthicknessandwaferarea:IncSi,waferthicknesshasdecreasedfrom400min1990to200m in2006,andwaferareahasincreasedfrom100cm2to240cm2inthesameperiod(Source:AStrategic ResearchAgendaforPhotovoltaicSolarEnergyTechnology;EuropeanUnion).Themajorareawhere improvementshavetakenplaceisslicing,i.e.theabilitytocuttheingotsintothinnerslices,whichhas reducedsiliconconsumptionandimprovedefficiency. Therehasalsobeenainnovationinwaferproductionandcellmanufacturing.Asaresult,siliconusageis downto10g/Wpfromtypically13g/Wpafewyearsago. Efficiencyimprovements:ForCSi,moduleefficiencyhasgoneupfrom10%in1990totypically>13% today(Source:EUPaperonSRAforSolarPV),withthebestperformersaveragingaround17%and above.Cellefficiencyhasalsobeenontheriseandpolycrystallinecellsnowhaveanefficiencyof18% andmonocrystallinealmost23%. Economiesofscaleandsizeofmanufacturingunits:Therehasbeenanadventoflargermanufacturing facilitiesandnewproductionunitsintheGWprangearebeingcommissioned.Scalehasahugeimpact inreducingpricesofsolarPV.Largeplants(closeto0.25to1GWrange)withhigherautomationand improvedprocesscontrolhaveincreasedefficiencyandreducedcosts. Reductionincapitalcostsformanufactureofsolarcells:Capitalcostsstillconstituteasubstantial componentofthecostofproduction.Withmanufacturingequipmentstandardisationandtheadventof independentequipmentproviders,likeAppliedMaterials(AMAT),ULVACTechnologiesandOrelikon,it isexpectedthatproductioncostwillreduce. Future Roadmap TomakecSitechnologiesviableandattractiveinthefuture,thefocusofthesolarPVindustryisontwo aspectsefficiencyimprovementandcostreduction. Thefocusofefficiencyimprovementisthroughfundamentalresearchandimprovementintheintrinsic qualitiesofcSibasedsolarPVcells.Futurecostreductionwouldbeonthebasisofscale,production process,efficiencyimprovementsliketheuseofadvancedmanufacturingpractices,process automation,advancedprocesscontrolandreductioninmaterialusage. EuropeanUnion(EU) TheEUislookingattransitingtoasustainableenergysysteminthenext3050years.TheEUhas identifiedsolarPVasthekeytransitiontechnology.EUistargetingsolarPVasanestablishedandviable electricitysupplierby2030.ThevisiondocumentoutliningEUsroadmapforsolarPVhasestimatedthat flatplatemoduleefficiencieswillbeinthe1025%rangeandgenerationcostswouldhavecomedown toaboutUS$0.0750.18/kWh.EUalsoexpectsmoduleefficienciestoincreaseandreachthe3050% rangebeyond2030.

UnitedStatesofAmerica TheUnitedStatesofAmericatargetstoachievegridparityby2015throughsolarPVforallmarket segmentsandbecompetitivewithfossilfuelsby2020.TheUSDepartmentofEnergy(DOE)haslaid downacomprehensivemultiyearplan20072011,underwhichithassettargetsfortechnology improvementsaswellascostreductions. Japan JapaninitiatedR&DinphotovoltaicbasedpowergenerationundertheSunshineProjectin1974.This project,alongwithanumberofotherPVbasedinitiatives,developedunderR&Dprojectsandpolicies supportachieveditsprimarygoalofcreatingtheinitialmarketforPVsystems.In2003,aninvestigative committeewithmembersfromacademia,industryandgovernmentcircleswasestablishedtostudyand formulateaPVRoadmaptowards2030(PV2030). (SolarPVIndustry:GlobalandIndianScenario,2008)

Economies of Photovoltaic Cells

Solarpowerisexpensivewhencomparedtoconventionalsourcesofpowerandhencethesolarmarket developmentiscurrentlydependentonGovernmentsupport.
14 12 10 INR/KWh 8 6 4 2 0 Domestic Imported NaturalGas Nuclear Coal Coal Power Hydro SolarPV Solar Thermal (Storage) Wind Power 3 3.5 4 3 7 5 12 11

Figure3:Indicativelevelizedcostcomparisonofpowerfromdifferentfuels Source:(TheRisingSun:PointofViewonSolarEnergySectorinIndia,2011)

Duringthepastfewyears,therehasbeenasignificantcostreductioninthesolarpowerandthesolar costcurveshavecomedown.Whereasthecostofconventionalsourceshavebeenonarisebecauseof increasingfixedcostsandrisingfuelprices. ReducingcostsinSolarPVcells ThesolarcrystallinePVtechnologydominatesthemarketforsolarPVinstallationsglobally.Dynamic costreductionshaveaccelerateddeploymentofSolarCSi(crystallinesilicon)technologyintherecent past.ThemodulepriceshavedroppedfromaroundUSD34perWabouttwoyearsbacktounderUSD 1.51.8perWtoday.Consequently,theproportionofmodulepricesinthetotalsystempricehascome downsignificantly.ThecorrespondingpriceofelectricitywhichwasupwardsofINR25hasdroppedto aroundINR13perunit.
40 35 30 25 20 15 25 10 5 0 1.7 3.5 Module(USD/W) 2010 2008 13

1.5 1.8 BOS(USD/W) Tariff(INR/KWh)

Figure4:SolarPVSystemPricesGlobally Source:(TheRisingSun:PointofViewonSolarEnergySectorinIndia,2011) ThemaindriversofthecostreductioninSolarPVCellsare:

Po olysilicon Costs Silicon Usage Pr rocessing Costs

400 USD/kg U > 8gm/W 8 1.21.3 1 U USD/W

5060 5 US SD/kg 66.5 gm/W 0. .70.8 US SD/W

Theentr ryofChinain ntothesolar rmanufactur ringspaceha ascontribute edsignificant tlytolowercosts. c Economiesofscalea andglobalre ecessionin2008coupled dwithoversu upplyofmod dulesresultedinthe eonmarginsacrosstheboard, b triggeringasharpfallinprices s. squeeze Infuture e,whilepoly ysiliconprice escontinueto t beanimp portantdeter rminantfacto or,otherkey yelements likeproc cessingcosts sandsiliconusagewillga ainprominen nce.Fullyint tegratedChin nesemanufa acturers haveatt tainedcostle eadershippo ositiontoday yinCSiandarelikelytocontinuepro oducingmod duleswith globalco ostleadership. Indianmarket m conte ext,thecostreductionco ouldbedrive enprimarilyby b thefollow wingfactors: Localization nExtentofindigenizati ion:Highvaluecompone entssuchastrough t structures, parabolicmirrorsandth hecompletepowerblock klendthemselvestosavingsthroughlocalization ty. andcompetitionintensit o ScaleDirectimpactoncostperMW:Econom miesofscale eresultingfromincrease e Economiesof insizeofthe esolarCSPplant p contribu utetowardsreductionin ntheinvestm mentcostoftheplant. Asperindus stryestimate es,whenaso olarCSPplan ntof50MWinsizeissca aledupto150200MW, theinvestmentcostsred duceby1525 2 percent. ringinnovati ionsandvalu ueengineeri ingIncreas singefficienc cyandreduc cingcost Manufactur Usageofsto oragesystem mHigherav vailability

ntofViewon nSolarEnerg gySectorinIndia, I 2011) (TheRisingSun:Poin dedcostofp power(LCP)or o thecostof o servicetoconsumers c has h beengrowingat45%annually Theland inIndia.Buttherate eisexpected dtoincreasefurtherinfu utureonthebackofhigh hrawmaterialcostslike ngcostsofcoalandoil.On O thebasisofanannua alincreaseof f4%increase eincostsofraw increasin materials,theaverageLCPforIn ndiaisexpect tedtogrowto5.71in20 01617and6 6.95in202122(The un:PointofView V onSola arEnergySec ctorinIndia, ,2011). RisingSu

 States

Actual Average Landed Costof Power (200607) 3.70 4.38 4.07 3.73

Forecast Average Landed Costof Power (201112) 4.54 5.91 4.75 4.57 4.88 4.22 3.91 4.39 4.65 4.70 Average Landed Costof Power (201617) 5.52 7.18 5.50 5.56 5.38 4.89 4.76 5.34 5.66 5.71 Average Landed Costof Power (202122) 6.72 8.74 6.37 6.76 5.94 5.66 5.79 6.49 6.88 6.95

Punjab Rajasthan Uttar Pradesh Gujarat

Madhya 4.11 Pradesh Maharashtra 4.05 Andhra Pradesh Karnataka TamilNadu India 2.95 3.59 3.45 3.86

Table3:AverageLCPcostsforMajorIndianstatesandIndia Source:(TheRisingSun:PointofViewonSolarEnergySectorinIndia,2011) WithanincreasingLCP,theutilitieswouldhave2optionstoimprovetheirfinancialperformance. IncreaseconsumertariffsReflectcostofpower Dependongovernmentsubsidies

Over50%demandofthepowerisexpectedtocomefromtariffsensitivedemographyofIndiawhich includedagricultureandhouseholds.InmostIndianstatesthiscategoryisheavilysubsidizedbythe government.However,thegovernmentsNationalTariffPolicymandateslinkageoftariffstocostof serviceandthatitshouldbewithin20percentoftheaveragecostofsupply. Therefore,itmakessensetogoforalternatesourcesofenergythantheconventionalsources.Itismore viabletogoforsolarpowerasandwhenthecostofsolarpowermatchestothatofconventionalpower. Fordomesticusers,thelastmileinfrastructurerequirementsareverycostlyforconventionalpower sources.However,forsolarpoweritismorefeasibleandcostefficient.SolarPVcellsatrooftopsfor domesticandsmallscaleusersreducestheinfrastructurerequirementsandtherebythecosts. GridparityforthedomesticusersforSolarPVrooftopcellsandwithconventionalpowerisasfollows:

 Figure5:GridParitycomparisonsforConventionalPowerandRooftopPVCells Source:(TheRisingSun:PointofViewonSolarEnergySectorinIndia,2011) BasedontheaboveGridParityanalysis,wecanseethatitcanbeachievedin201718ifthesolarpower generationispursuedaggressively. Forlargescaleutilityconsumers,thegridparityisshownasfollows:

Figure6:GridParitycomparisonsforConventionalPowerandLargeScaleUtilities Source:(TheRisingSun:PointofViewonSolarEnergySectorinIndia,2011)

ThegridparityisdesignedonthebasisthatthedifferencebetweenPVcellscostsandpricesdecreases becauseofgovernmentinterventionorbecauseofnegotiatingpowerofthebuyer.Thenthetariffsfor boththesolarPVcellsandconventionalpowerhavebeencompared.

Solar Energy Potential in India

Indiaspercapitaconsumptionofenergyisfarlowerthanthatoftheworldaverage.Evenwithsucha lowpercapitaconsumption,duringtheyear200809,thepowerdeficitisabout11%intotaldemand andadeficitofmorethan12%inpeakloaddemand.Thisclearlysignifiesthattheavailablefuelisnot sufficienttomeettherisingdemandforenergyofIndia. Year 200607 201112 201617 202122 202627 203132 RequiredCapacityBillionkWh 8% 700 1029 1511 2221 3263 4793 9% 700 1077 1657 2550 3923 6036 InstalledCapacity(GW) 8% 140 206 303 445 655 962 9% 140 215 331 510 785 1207

Table4:RequiredandInstalledElectricityRequirements Source:MinistryofPower,GovernmentofIndia Byendofyear2008,Indiahadpowergenerationcapacityofabout152GW.Evenwithsuchaninstalled base,about17%ofthevillagesinIndiaarenonelectrified,whichwouldtranslatetoabout450million. Withagrowingeconomy,thedemandforpowerisgrowingatabout6%everyyearandthepeakload demandisexpectedtoreach176GWby2012.

Table5:RegionwisePowerDemandsupplyscenarioinIndia Source:CEA,LoadGenerationBalanceReport,200910

Coal 2.31% 12.10% Gas Oil 19.03% 56.80% 0.58% 9.15% RenewableSourcesof Energy Hydro Nuclear

Figure7:PowerGenerationcapacitybySource Source:MinistryofPower,GOI About10%ofthetotalpowerissourcedfromoil&gas.Apartfromautomobilesandindustry,thepower sectoristhelargestimporterofoil&gasinIndia. TheIndianpowersectorishighlydependentoncoalasafuel,with57%ofthetotalinstalledcapacity beingcoalbasedgeneration.Giventhecurrentscenario,coalconsumptionbythepowersectorislikely toreachlevelsof173mnMTby2012.AccordingtotheMinistryofCoal,theexistingcoalreservesare estimatedtolastforanother4045years. Tomeetthe778GWdemandforpowerby203132,theGovernmentofIndiaisplanningheavy investmentsincoalbasedpowergeneration,wherecostofproductionislowerthanwithanyother source.Coalbasedpowerisgridconnected,whichleadstoanothermajorpowerrelatedissueinIndia AT&C(AggregatedTechnical&Commercial)losses.SomekeystatisticspertainingtoAT&ClossesinIndia for200809aregivenbelow: Figuresvaryfrom1862%acrossstates;acountryaverageof36% Majorlossesduetotheftandpilferage(aboutRs20,000Crannually) Poorbillingandcollectionefficiency(55%and41%respectively)

(SolarPVIndustry2010:CurrentScenarioandemergingtrends,2010) Inthepresentscenario,renewableresourcesemergeasthebestalternative.Atpresent,renewable energyaccountsforabout12%ofIndiasinstalledgenerationcapacity.Muchofthiscapacityiswind based(about11GW),withtheshareofsolarpowerbeingonlyabout6MW.

 Table6:CumulativeDeploymentofVariousRenewableEnergySystems/DevicesintheCountryason 31/01/2012 Source:(MinistryofNewandRenewableEnergyGovernmentofIndia) Indiahasabundanceofnondepletingandenvironmentallyfriendlyrenewableresources,suchassolar, wind,biomass,hydroandcogenerationandgeothermal.Windenergysector,whichhasshown tremendousgrowthintherecentyear,dominatestherenewableenergysectorinIndia.

Indian Solar Landscape

Indiareceivesabundantsolarradiationbecauseofitsproximitytotheequator.Thefollowingfeaturesof solarpowermakeitthemostviablerenewablesourceofenergyforIndia: Solarenergyisavailableinabundance Availableacrossthecountryunlikeotherrenewablesources,whichhavegeographical limitations Availablethroughouttheyear Decentralized/offgridapplicationsaddressingruralelectrificationissues Modularityandscalability

TheSolarPVapproachisparticularlysuitedforthegeographicalandsocioeconomicfeaturesofthis countryhavinghighlyskewedenergydistributionbetweenurbanandruralareas. Environmentalconcerns:AlthoughIndiahasone ofthelowestpercapitapollutionratesinthe world,itisstilloneofthebiggestpollutersdueto itslargepopulation.Indiaisincreasinglyfacing internationalpressuretoreduceitsgreenhouse emissionsandswitchtocleanerenergysources.

Energysecurity:Depletingfossilfuel reserves,supplyshortages(coal)andheavy relianceonimports(oilandnaturalgas)warrant measurestoimproveenergysecuritybyfocusing onrenewableenergy.

Suitabilityand Viabilityofsolar energy

Powersupplydeficit:Theenergydeficitlevelsin Indiahaveremainedconsistentlyhigh.Tosustain thecurrentlevelsofeconomicgrowth,India needstobridgethedemandsupplygaprapidly. Scalability:Indiareceives5,000trillionkWhof solarenergy(47kWhpersquaremetersper day).Solarenergycanbegeneratedona distributedbasisandhastheabilityfor substantialcapacityadditionsinshortleadtime. Source:Ernst&YoungAnalysis

 Figure8:AnnualAverageSolarRadianceinIndia Source:MinistryofNewandRenewableEnergy,GovernmentofIndia Intheneartime,demandwillberestrictedbyhighcosts,butrapidtechnologyadvancesdrivingdown costsandenablingpoliciescouldacceleratethegrowthinthedemandforsolarpower.Thetotalannual

demandforsolarPVinIndiaisexpectedtoriseto450MWby2012.Thiscanbebecauseofthe followingfactors: Indiaspowersectorischaracterizedbylopsideddistributionofelectricitybetweenurbanand ruralareas.Thelattersuffersfromlowlevelsofelectrificationbecauseofinadequate transmissionanddistributioninfrastructure.Thishasledtoariseindecentralizeddistributed generation(DDG)modelsinmostregions.Assuch,offgridapplicationssuchassolarPVare seenasaviablesolutiontomeetthedemandofruralelectrification.Giventhatmorethan70% ofthepopulationresidesinruralareas,thereisasignificantpotentialinlocalizedPVsystems. Withvariousgovernmentmeasuresandincentives,solarPVisbecominganattractivesectorin termsofcostconsiderations.AccordingtotheCentralElectricityRegulatoryCommission(CERC), asolarPVprojectcancommandareturnofequityof19%perannum(pretax),forthefirst10 yearsand24%perannum(pretax)afterthefirstdecadeofitsexistence.Thesearevery lucrativereturnsascomparedtoconventionalsources.

(ConqueringtheSun:ThrowinglightonsolarenergyanditsprospectsinIndia,2010) Solar Incidence range in KWh Regions per square meter 6.2 6.6 Rajasthan,Gujarat,partsofJammuandKashmir 5.6 6.0 Maharashtra,Karnataka,Kerala,AndhraPradesh,MadhyaPradesh Table7:Regionswithhighestsolarpotential Source:(TheRisingSun:PointofViewonSolarEnergySectorinIndia,2011)

The Government Policy and Action on Solar Energy Utilization

Year 197479 Policy MinimumNeeds Programme(MNP) Description Overallobjectivewastocoveratleast60%of villagesineachstateandunionterritoryundertherural electrificationprogrammeby1990;atargetof46,464 additionalvillageswasfixedfortheSixthPlanundertheMNP. Theactualachievement,however,wasestimatedat34,489 villages. Launchedforextendingsinglepointlight connectionstohouseholdsofruralpoorfamiliesbelowthe povertyline,includingHarijanandAdivasifamilies.

198889

KutirJyoti Scheme

5 February Definitionof Thedefinitionofanelectrifiedvillagewaschanged(among 2004 electrifiedvillageunder otherthings)toatleast10%of theMinistryofPowers thetotalnumberofhouseholdsinthevillagebeingelectrified. Memorandum No.42/1/2001D(RE) April 2005 RajivGandhiGrameen VidyutikaranYojana (RGGVY) Thiswasamajorinitiativetowardsuniversal electrification.Undertheprogramme,90%grantisprovided bythecentralgovernmentand10%asloanbytheRural ElectrificationCorporation(REC)tothestategovernments. TheRECisthenodalagencyfortheprogramme. Accesstoelectricityforallhouseholdsby2009. Qualityandreliablepowersupplyatreasonablerates. Minimumsupplyof1unitperhouseholdper dayasameritgoodby2012. Toencouragesemiconductorandecosystemmanufacturing, ofwhichsolarPVisalsoacomponent. Acapitalsubsidyof20%formanufacturingplantsinSpecial EconomicZones(SEZ)and 25%formanufacturingplantsoutsideofSEZs,basedonthe conditionthatthenetpresentvalue(NPV)oftheinvestmentis atleastUS$212million(`10,000million[`1,000crore]@US$ 1=`47).

2006

RuralElectrification Policy

2007

Semiconductor Policy

3 August 2009 14 November 2009

DraftofNational Theplanhasanambitioustargetofgenerating20,000MW SolarMissionapproved solarpowerby2020;themissionstrategyconsistsofthree byprimeminister phases. JNNSM Releaseofmissiondocument.

3 December 2009

CentralElectricity RegulatoryCommission (CERC)announcestariff forrenewableenergy powergeneration

Forsolarpower,thetariffperiodhasbeenspecifiedastwenty fiveyears.TheCERChasdeterminedatariffof`18.44/kWhfor solarPVprojectsand`13.45/kWhforsolarthermalprojects commissionedinFY200910.

The mission targets 20,000 MW of solar generating capacity by the end of the Thirteenth FiveYear Plan (2022). 17 June JNNSM offgrid Guidelines for offgrid and decentralized solar 2010 guidelines applications, and rooftop and other small power plants released. 25 July JNNSM grid Guidelines for selection of new gridconnected 2010 connected guidelines projects with CERC determined tariff of `17.91/kWh for solar PV projects and `15.31/kWh for solar thermal projects commissioned in FY 201011 and 201112. 15 CERC tariff order The tariffs for solar projects where PPAs are signed after 31 September March 2011 have been revised to `15.39 for PV and `15.04 2010 for solar thermal projects. Table8:TimelineofIndia'sElectricity/SolarPolicy Source:(Raghavan,etal.,2010) Thereareseveralagenciesengagedindevelopingorpromotingrenewableenergysourcesinthe country.MNREisthekeygovernmentorganizationdevelopingpoliciesatthecentralgovernmentlevel, particularlywithregardtosubsidies,incentivesandR&D.Theministryspoliciesandincentivesare passedontoactualdevelopersthroughthestatenodalagencies(SNA),whichcomeunderthepurview oftherespectivestategovernments.SNAsmainlyundertakepromotionalactivitiesandsetup demonstrationprojects.Apartfromtheseinstitutions,theIndianRenewableEnergyDevelopment Agency(IREDA)isthefinancingarmofMNRE,whichhasbeenactivelyfundingrenewableenergy projects. Theministryhastakenvariousinitiativestoimplementsolarpoweredgenerationinruralareas.Ithas continuedtosupportthedemonstrationandutilizationofselectPVsystemssuchassolarstreetlights, solarPVhomelighting,solarlanterns,solarpumpsandstandalonePVpowerplants,andthermal systemssuchassolarcookers,solardryersandsolarstills.Thesolarenergyprogramforurbanareas encompasses: Solarwaterheatingsystemsfordomestic,industrialandcommercialestablishments Solarairheating/steamgeneratingsystemsforcommunitycookingandindustrialapplications Solarbuildingsincorporatingactivesystemsandpassivedesigns Thenationalratingsystemforgreenbuildings,GreenRatingforIntegratedHabitatAssessment (GRIHA),topromotesolar/greenbuildings AkshayUrjaShopsforthesaleandservicingofsolarenergyproducts SolarPVproductsanddevicesforstreetlighting,hoardings,trafficsignalsandpowerpacksin citiesandtowns;developmentofsolarcities

11 January Launch of JNNSM 2010

WiththehelpofGRIHA,MNREisimplementingaschemeonEnergyefficientsolar/greenbuildings withthemainobjectivetopromotethewidespreadconstructionofenergyefficientsolar/green buildingsinthecountrythroughacombinationoffinancialandpromotionalincentives. Currently,twokeyincentivesareofferedbytheGovernmentofIndiatopromotesolarPV manufacturinginIndia. SpecialIncentivePackageScheme(SIPS)toencourageinvestmentsforsettingup semiconductorfabricationandothermicroandnanotechnologyunits SEZpolicytoencourageexportorientedmanufacturing

Special Incentives Package Schemes (SIPS)

SIPSisformulatedtoencourageinvestmentsforsettingupofsemiconductorfabricationandother microandnanotechnologymanufacturingunits,includingsolarPVmanufacturing.SIPSisapplicablefor afabunitaswellasanecosystemunit. AthresholdlimitissetastheminimuminvestmentofRs.2,500crore(approxUS$625million)in caseofafabunitandRs.1,000crore(US$250million)incaseofanecosystemunit.Theamount iscalculatedasnetpresentvalueandshouldbemadeduringtheperiodoffirst10yearsfrom thefinancialyearinwhichtheapplicationismade. Underthisscheme,theCentralGovernmentoritspertinentagencieswillprovidecapitalsubsidy againstthetotalcapitalcostintheformofinvestmentgrantorinterestsubsidy.Acapital subsidyof20%issetformanufacturingunitssetupinSEZand25%forunitssetupinnonSEZ areas. Alternatively,theunitcanaskforgovernmentsequityparticipationintheproject,not exceeding26%.Theentireequitycontributionwillbetakentowardsthevalueofincentive package.Thereshallbeanexitoption,tobeexercisedbythegovernment,atasuitabletimein thefutureaftertheprojectgoesonstream.

 Table9:InvestmentProposalsunderSIPS Source:IndianSemiconductorAssociation

SEZ Policy
ThemanufacturingofsolarPVcomponentsisapermissibleeconomicactivityinSEZs,whichcovers trading,servicingandmanufacturingofsolarPVcomponentsexportedorimportedorprocuredfrom theDomesticTariffArea(DTA)byasolarPVunitinSEZ.Theseunitsareentitledforallapplicablefiscal andnonfiscalbenefitshighlightedundertheSEZpolicy. ManufacturingofsolarPVinSEZsshallbeexemptfrompaymentoftaxes,dutiesorcess includingexciseduty,CST,servicetax,securitytransactiontaxandimportduty. SEZunitswillbegivencertainexemptionsfromincometaxfor15years.Theseexemptionsare structuredinawaythataSEZunitcanavail100%incometaxexemptionforthefirst5years, 50%forthenext5yearsandrest50%ofthereinvestedprofitsploughedbackintothebusiness forthenext5years.Butnoincometaxisexemptedif10yearsITbenefitisalreadyavailedby thebeneficiaryfirm. TheSEZpolicyallows100%foreigndirectinvestmentinthemanufacturingsectorandgives flexibilitytomakeoverseasinvestmentoutofexportearningsinforeigncurrency.

JawaharLal Nehru National Solar Mission (JNNSM)

TheGovernmentofIndia,incollaborationwithvariousstategovernments,launchedtheJawaharlal NehruNationalSolarMission(JNNSM)inJanuary2010withtheobjectiveofachieving20GWofsolar powercapacityby2022.ThemissionisoneoftheeightkeymissionsundertheNationalActionPlanfor ClimateChange.ThisisamajorinitiativetotapIndiasnaturallyavailableenergysourcesandcontribute toalowcarbonsustainablegrowth,whileovercomingIndiasecologicalandenergysecuritychallenges. ThemissionsaimistoinitiallyintroducesolarenergyasadecentralizedsourceofpoweracrossIndia andinoffgridlocations. Overallobjectivesfor2022,ofthisthreephasedMission,include: (i) (ii) (iii) (iv) (v) deploymentof20,000MWofgridconnectedsolarpower 2,000MWofoffgridsolarapplicationsincluding20millionsolarlights 20millionsq.m.solarthermalcollectorarea tocreatefavorableconditionsfordevelopingsolarmanufacturingcapabilityinthecountry supportR&Dandcapacitybuildingactivitiestoachievegridparity.

The,firstphaseaimsatsettingupof1,100MWgridconnectedsolarplants,200MWcapacity equivalentoffgridsolarapplicationsand7millionsquaremetersolarthermalcollectorareatillMarch, 2013.

Table10:PhasedimplementationunderJNNSM Source:MNRE

Generation based incentive scheme

InJanuary2008,MNREformedguidelinesforgenerationbasedincentivesforgridconnectedsolar(both thermalandPV)plants.Theschemewasextendedtoallexistingregisteredcompanies,Centraland Statepowergenerationcompaniesandpublic/privatesectorPVpowerprojectdevelopers.Thescheme

promotedgridconnectedpowerplantsinexcessof1MWofcapacityatasinglelocation.Thescheme waslimitedto5MWperdeveloperacrossIndiaandamaximumof10MWperstate. Underthisscheme,MNREofferedtoprovide,throughIREDA,agenerationbasedincentiveofa maximumofRs.12perkWhtoeligibleprojects,whicharecommissionedbyDecember312009,after takingintoaccountthepowerpurchaserate(perkWh)providedbytheStateElectricityRegulatory Commissionorutilityforthatproject.

State Level Initiatives

Andhra Pradesh TheStateGovernmentofAndhraPradeshisdevelopingasolarfarmclustercalledSolarCityona10,000 acrelandatKadiriinAnantapurdistrict.SolarCityisexpectedtoattractinvestmentsworthRs.3,000 croreinthefirstphase.Fourfirms(Sunborne,LancoSolar,AESSolarandTitanEnergy)havesigneda memorandumofunderstandingwiththeStatetosetuptheirunitsthere.Thesecompanieswillbethe anchorunitsinSolarCityandhaveacombinedcapacityof2,000MW. Karnataka KarnatakaPowerCorporationLtd.,hasimplementedtwoprojectseachof3MWpcapacityandhas awardedathirdprojectofsamecapacityrecently.Thesolarplants,locatedinKolarandChikkodi districts,havebeenimplementedundertheArunodayaschemeforensuringassuredpowersupplyto ruralareas,especiallyirrigationpumpsets.ThesePVpowerplantsareintendedastailendsupport/ poweringofirrigationpumps. Gujarat TheStatepolicyaimsatpromotingthegenerationofcleanandgreenpowerinthestateusingsolar powerandwastelands,therebyengenderingsocioeconomictransfer.Otherobjectivesofthepolicyare promotingR&Dandfacilitatingtechnologytransfer,creatingenvironmentalawarenessandfavorable policiesthatencourageinvestment,promotingemploymentgenerationandskillenhancementofthe localyouth. Haryana TheHaryanaGovernmenthassigned6MoUswithprivateplayerstosetupsolarPVpowerplantsinthe state. Rajasthan TheRajasthanStateGovernmenthasannounced3schemestopromotesolarenergyapplicationsinthe state.UndertheRemoteElectrificationScheme,domesticlightingsystemsaredistributedtoremote villagesunderMNREsscheme.MNREwillprovide90%ofthebenchmarkcost(Rs12500perDLS)i.e.Rs. 11,250,wheretheOperation&Maintenancecostfor5yearsisalsoincludedinthebenchmarkcost.The balance10%costistobebornebytheStateGovernment(Rs3335)andbeneficiary(Rs1500)against thetotalcostofRs16,085.

Other Initiatives
NTPCVidyutVyaparNigam(NVVN)hasbeendesignatedasthenodalagencytopurchase1,000MWof solarpower,500MWeachfromsolarthermalandsolarphotovoltaic(PV)technologyroute,fromthe projectdevelopers.Selectionof650MWprojectsi.e.500MWsolarthermal&150MWSolarPVwas completedinthefinancialyear201011.GuidelinesforselectingremainingSolarPVprojectsof350MW aggregatecapacitieswereissuedon24August,2011. TheschemeforRooftopandotherSmallSolarPowerPlantsconnectedtodistributionnetwork(Below 33kV)waslaunchedinJune,2010.ItsobjectiveistospreadsolarpowertoasmanyStatesaspossible withaviewtogeneratedatabaseontheperformanceofsolarplantsunderdifferentclimaticandgrid conditions.Underthisscheme,78projectdevelopershavebeenselectedforsettingup98MWcapacity gridsolarPVprojectsacross12Statesinthecountry.Ofthese,18projectswithaggregatecapacityof22 MWhavebeencommissionedByJanuary,2012.

Table11:GridConnectedSolarPowerPlantsin2012 Source:MNRE

Key Projects in India

Table12:ListoftheProjectDevelopers Source:(PressInformationBureauEnglishReleases)

Applications of Photovoltaic Cells

Worldwidethetrendhasbeentofocustowardsongridconnectedapplications.WhereasinIndia,the focushasbeentowardsoffgridapplicationsofsolarPVcells. SomeofthemajorapplicationsofPVcellsinIndiaare:

Solar photovoltaic (PV) options for rural electrification

Simpleeffectivesolutions,includingsolarlanternsandsolarhomelightingsystems(SHLS),alongwith solarbasedmicrogridscanbeinstalledintheruralareas.SolarPVcanbeusedasaprimarysourcein theruralareaswheregridextensionisverydifficult.Alsosolarlanternscanbeastopgapmeasuretill electrification,SHLSandmicrogridscanprovidesufficientpowertomeetresidentialandcommunity basedrequirements,andcaneasilybeintegratedifandwhenthegriddoesreachtheseareas. AlsoRemoteVillageElectrification(RVE)programmeoftheMNREhasbeenlaunched,whichwillprovide subsidyonlytoremotevillagesandhouseholdstouserenewableenergytoelectrifythroughprivate sectorproviders.UnderJNNSMalso,governmentwillprovidesoftloansandotherfinancialbackingfor investors. Solar Lanterns Asolarlanternisbeasimple,costeffectiveandenvironmentallyfriendlymeansofprovidingminimum lightingneedsforthemillionsofruralhouseholdsthatwillremainunelectrified.Evenso,asofMarch 2010,thereareonly790,000householdsthathaveasolarlantern(MinistryofNewandRenewable EnergyGovernmentofIndia).TheEnergyResearchInstitutes(TERI)LightingaBillionLives(LaBL)project andtheWorldBanksLightingAfricainitiativearethebestexamplesofprojectsfocusingonsustainable energybasedoffgridlightingsystemsandarecenteredonsolarlanterns.Thereareinexpensive lanternsonthemarketandmarketmechanismsthatmakesolarlanternsaffordabletomany. Solar Home Lighting System SHLSconsistofasolarPVpanel,battery,chargecontrollerandlightingsystem(lampsandfan). DependingonthePVpanelsizethissystemcanpoweralightingsystemrangingfromasinglelampto severallampsandafanorTV.Thisrequireslowongoingmaintenanceexceptforabatterychangeevery threetofiveyears.Inspiteofgeneroussupportfromthegovernment,sofaronly580,000SHLShave beeninstalled.Takingintoaccountsolarradiationandeconomics,about98millionoutofthe137 millionruralhouseholdscanaffordandbenefitfromanSHLS.Thissystemhassignificantadvantageover solarlanterns,particularlyinthecaseoftheownershipmodel:theycantakealargerloadandfixed panelsleadtobetterperformance(difficulttogetdraggedintoshade). Solar PV MicroGrid Therationalebehindamicrogridisthatbybringingthegenerationofelectricityclosertothesiteof consumption,onecanavoidtheT&Dlossesofgridextension,especiallyinremoteregions.Also,itcan alleviatethedemandsupplygapandprovidemorereliablepowertoruralareas.Giventhevariability andintermittentnatureofsolarenergy,amicrogridbasedonahybridsystemofsolarandminihydroor biomassismorefeasible.Unlikeotherresources,solarenergyisunlimitediftheregionreceives

bountifulsunlight.Themicrogridisapotentialsolutionforavillageoraclusterofvillagesthathave housesincloseproximity.Thetechnologyisboundtowork;theruralpoormightbewillingtopayforan assuredsupplyofelectricity,butevensoithastobeborneinmindthatsustainablelongterm operationsofthemicrogridisdifficultintheabsenceofsolidinstitutionalmechanisms.

SolarPVbased irrigation pump sets

Almost70%ofIndiaspopulationdependsonagricultureeitherdirectlyorindirectly.While44%ofthe 140millionsownhectaresdependonirrigation,therestreliesonthemonsoons.Irrigationisessential forgoodcropyield.Mostelectricalconsumptioninthissectorgoestowardsoperatingpumpsetsfor irrigation.In20067,Indiasagriculturalsectoraccountedfor22%ofthetotalelectricityconsumption, upfrom10%inthe1970s.Thereareabout21millionirrigationpumpsetsinIndia,ofwhichabout9 millionarerunondieselandtherestaregridbased.Providingelectricitytofarmersathighlysubsidized rateshasledtoincreasinglyhighconsumptionpatternsandwidespreaduseofinefficientpumpsacross thenation.Also,pumpsoflowerratingsareusedtopowerapplicationsrequiringhigherpower.Apart fromthis,limitedandunreliablesupplyofgridelectricityhasledtofarmersextensivedependenceon dieselforwaterpumping. TheMNREhasaprogrammeforthedeploymentofvarioussolarPVapplications,includingwater pumpingsystems.However,thedeploymenthasbeenprettyless,withonly7,334solarPVwaterpumps havingbeeninstalledacrossthecountryasofMarch2010(MinistryofNewandRenewableEnergy GovernmentofIndia).Waterdemandforirrigationiscorrelatedtobrightsunnydays.Hence,solar basedpumpsmakesense.Asmallbufferstoragemightbeneededtoreplacedieselsatisfactorily. AsolarPVwaterpumpingsystemconsistsofaPVarray,motorpumpandpowerconditioning equipment,ifneeded.ThepowerconditioningequipmentisusedtostabilizethefluctuatingSolar electricalenergyoutputofthearray.Dependingonthetotaldynamicheadandtherequiredflowrateof water,thepumpingsystemcaneitherbeonthesurfaceorsubmersibleandthemotorcanrunoneither alternatingcurrent(AC)ordirectcurrent(DC).Ratingsofpumpsetsarechosendependingonthewater requirements,sizeoffield,totaldynamichead,typeofirrigation(dripirrigation,useofsprinklers),etc. Thesepumpsarefoundtobecompetitiveattodayscostrelativetodieselbasedpumpsbasedoncost perunitofelectricityorworkdone.

Rooftop PV systems for diesel use abatement

TosustainIndiasburgeoningurbanizationisaformidablechallengefacedtoday.Theurbanrooftoparea wasestimatedtobe1millionm2in2006(includingallmajorcities)andgrowingeveryday.Most buildingsinurbancitiesarehighlyelectricityintensive;theyconsumelargeamountsofpowerfor lightingandairconditioningapplications. InIndia,theapplicationofsolarPVhasparticularsignificancegiventheconditionofitstransmissionand distributioninfrastructurehighlosses,poorpowerqualityandfrequentloadshedding.Mostbuildings, public,privateandcommercial(forexample,malls,hotels,hospitalsandnursinghomes),havediesel generatorsforbackupincaseofloadsheddingbytheutility.Givenenvironmentalconsiderations,the

useofdieselshouldbeminimized.Thereisabundantopportunitytouserooftoporbuildingmounted solarPVsystemstogenerateelectricityandtherebyreducetheconsumptionofdiesel. Generoussubsidieshavebeenofferedbythegovernment(bothcentralandstate).Despitethis, widespreadinstallationofsolarPVsystemstogenerateelectricityonurbanrooftopsisstilllacking. However,solarPVsystemswithbatterystoragearetooexpensive,andsystemswithoutbatterycannot servetocompletelyreplacedieselgeneratedpower.Withrespecttothegridintegration,thecurrent urbangridinfrastructuredoesnothavethecapacityatlowtensionleveltoaccommodatedistributed generation.Theotherconstraintcouldbefindingadequateandappropriatespace(notcoveredby shade)ontherooftomountsolarmodules.

Solar PV for Telecom Towers

Indiahasmorethan250,000cellphonetowers,eachequippedwithadieselgeneratorof3to5kW capacitydependingonthenumberofoperatorshousedonthetower.Thetowersareenergyintensive sincetheyoperatenonstop.Thereareasubstantialnumberofthesetowersareinruralareasandany newadditionsarelikelytobethereaswell,dieselconsumptionwillbeinevitablegiventhegrid challenges.Roughlyabout2billionlitersofdieselisconsumedannually,amountingtoaround4.5 milliontonsofCO2emissions.TheMinistryofNewandRenewableEnergy(MNRE)isincentivizingthe replacementofdieselfortelecomtowerswithsolarPV.

Application in other Industries

Textile(Finishing) Textilesectorisoneofthehighestenergyconsumingsectorsinthecountry.Textileprocessingcovers stepsrangingfromsingeing(removalofprotrudingfiber)tofinishingandprintingofthefabricand manufacturingpolyester,polyesterfilamentyarn,acrylic,nylon,viscose,cottontextilesetc.Asperthe ASIstatistics,theprimaryenergyconsumptioninthesectorwas4.46Mtoein200708. Textileprocessingrequiresalotofhotwaterintherangeof40Cto110Catdifferentstagesofthe process.Thehotwateratthesetemperaturescaneasilybegeneratedthroughsolarenergy.The amountofconventionalenergythatcanbereplacedbysolarapplicationsinthetextileindustryisshown inthetablebelow: Energyreplacementpotential(ktoe/annum) 383 PulpandPaperindustry ThepulpandpapersectorisoneofthemostenergyintensivesectorswithintheIndianeconomy.There areabout515unitsengagedinthemanufactureofpaper,paperboardsandnewsprintinIndia.The sectorconsumesalotofenergytogeneratesteamthatismainlyrequiredindebarking&chipping, Estimatedmonetarysaving(Rs.Million/annum) 7.692

digesting&washing,pulping,bleachingandpaperdrying.ASIhasestimatedtheprimaryenergy consumptionofthissectortobe7.56Mtoein200708.Thesectorhasagoodpotentialtoreplacesome partofthisconventionalenergywithsolarapplications.Replacingexistingenergyusewithsolar applicationstotheextentpossibleisestimatedasbelow: Energyreplacementpotential(ktoe/annum) 45 Foodprocessing Foodprocessingsectorisahighlyfragmentedindustryandwidelycomprisesofthefollowingsub segments:fruitsandvegetables,milkandmilkproducts,beerandalcoholicbeverages,meatand poultry,marineproducts,grainprocessing,packagedorconveniencefoodandpackageddrinks.ASI estimatesindicatethatfoodprocessingsectorconsumedaround4.50Mtoeofprimaryenergyin2007 08.Mappingvariousprocessesinthefoodprocessingindustryindicatedthatsomecanbesuitably replacedbysolarinterventions.Replacingexistingenergyusewithsolarapplicationstotheextent possibleisestimatedasbelow: Energyreplacementpotential(ktoe/annum) 80 Leatherindustry TheleathersectorinIndiaispredominantlyunorganizedanddecentralized.Asthissectorcomprisesof unitsmakingdifferentleatherproductsatdifferentstagesoftheindustrysvaluechain. ASIestimatesindicatethatleathersectorconsumedaround150ktoeofprimaryenergyin200708.An analysisoftheenergyrequirementsofdifferentprocessesintheleathermanufacturingprocessreveals thattanninghasahighpotentialforusingsolarapplicationstomeetitshotwaterandhotairneeds. Replacingexistingenergyusewithsolarapplicationstotheextentpossibleisestimatedasbelow:Sector Energyreplacementpotential(ktoe/annum)Estimatedmonetarysaving(Rs.Million/annum) Energyreplacementpotential(ktoe/annum) 17 Dairyindustry Indiahasemergedasthelargestmilkproducingcountryintheworldwiththepresentlevelofannual milkproductionestimatedat100milliontonnes.Thedairyindustryisdominatedbythecooperative sectorwith60%oftheinstalledprocessingcapacity.Ithasbeenestimatedthatthedairyindustry consumed210ktoeofprimaryenergyin200708.Theindustryconsumesasubstantialamountof thermal(heat)energyformilkprocessing(pasteurization,sterilization,spraydrying,evaporation,etc.) andelectricalenergyforrefrigerationduringmilkprechilling,milkchillingafterpasteurization,cold Estimatedmonetarysaving(Rs.Million/annum) 1,026 Estimatedmonetarysaving(Rs.Million/annum) 1,782 Estimatedmonetarysaving(Rs.Million/annum) 1,700

storageofpackedmilk,compressedairrequirementforpneumaticmilkpackagingmachines,milk homogenizationandclarificationoperations.Thesolarmappingexerciserevealedthatavastpotential existsinthedairyindustryforinstallingvarioussolarapplications.SolarPVsystemscanalsocontribute inreducingconventionalelectricalenergyconsumedforrefrigeration.Replacingexistingenergyuse withsolarapplicationstotheextentpossibleisestimatedasbelow: Energyreplacementpotential(ktoe/annum) 27 Textile(Spinningandweaving) Thetextilespinningandweavingindustryisalsooneofthelargestandoldestsectorsinthecountryand veryimportanttotheeconomyofthecountryintermsofoutput,investmentandemployment.ASI statisticsshowthatthissectorconsumed3.34Mtoeofprimaryenergyin200708.Whileanalyzingthe energyrequirementsofthesector,itwasfoundthatinoneoftheprocessofweavingcalledsizing,hot waterwithtemperatureof8085Cisrequired.Hence,solarthermalinterventionispossibleinthe sizingprocess.Conventionalenergyreplacementpotentialinsizingaswellasotheroperationsinthis sectorhavebeenestimatedandisshowninthetablebelow: Energyreplacementpotential(ktoe/annum) 20 Electroplating TheElectroplatingcanbecategorizedintotwotypes(i)primaryuser&originalequipment(OE) manufacturerswhocarryoutelectroplatingasoneoftheiroverallmanufacturingactivityand(ii)job workunits,whocarryoutplatingofalargevarietyofcomponentsforbothdomesticandexport purposes.Itisestimatedthatthesectorconsumesapproximately118ktoeofprimaryenergyin2007 08.Mostoftheoperationsinelectroplatingindustryrequirehotwateratatemperatureof4085Cand havethepotentialforusingsolarwaterheatingapplicationstomeetthisrequirement.Basedoncertain empiricalanalysisthetotalenergyreplacementpotentialinthesectorisestimatedtobeabout21ktoe/ annum. Agromalls Anagromallisaruralbusinesscentre,whichiscreatingafarreachingpositiveimpactbybringinga qualitativechangeandrevolutionizingthefarmingsectorinIndia.Agromallchainsseektoempowerthe farmerbysettingupcenters,whichprovideallencompassingsolutionstothefarmersunderoneroof. StudyofenergyauditreportsofAgromallsanditsfurtheranalysishasrevealedthattheagromallsector consumesapproximately12ktoeofprimaryenergyperyear.Ithasbeenfoundthatmostoftheagro mallslocatedinruralareasareprovidedwithdieselgenerator(DG)setsandhaveafairlyunshadedand strongroofstructureabletosupporttheweightofarooftopsolarinstallation.Itisexpectedthatthe integrationofsolarPVsystemswouldnotonlyreducetheuseoffossilfuelsbutwouldalsomitigateCO2 Estimatedmonetarysaving(Rs.Million/annum) 740 Estimatedmonetarysaving(Rs.Million/annum) 916

emissions.Replacingexistingenergyusewithsolarapplicationstotheextentpossibleisestimatedas below: Energyreplacementpotential(ktoe/annum) 4.30 Automobile TheautomotiveindustryinIndiaisoneofthelargestintheworldandisoneofthefastestgrowing globally.Indiamanufacturesover11million2and4wheeledvehiclesandexportsabout1.5million everyyear.Aspertheestimates,590ktoeofprimaryenergywasconsumedintheautomobilesectorin 200708.Itwasalsofoundthatprocessesinvolvedintheautomobileindustryusesasignificantamount ofthermalenergy.Thetemperaturerequirementincertainprocessesofautomobileindustryiswell beyond300Cwhereassomeprocesseshaveatemperaturerequirementof<150C.Therefore,solar thermalenergyaswellassolarphotovoltaicapplicationshasthepotentialtoreplaceconventionalfuel currentlybeingusedforcarryingoutitsprocesses.Theestimatedconventionalenergyreplacement potentialandmonetarysavingsaregiveninthetablebelow: Energyreplacementpotential(ktoe/annum) 10.5 Pharmaceutical Itisestimatedthatthesectorconsumed930ktoeofprimaryenergyduring200708.Thesector consumesbothelectricalandthermalenergyatdifferentstagesofitsprocesses.Hence,chancesof replacingconventionalsourcesofenergybysolarenergyaregood.Mostofthethermalenergy applicationsinpharmaceuticalunitsrequirelowrangetemperatureswhichareeasilyachievableby solarsystems.Ithasbeenobservedthatapproximately20%ofthetotalenergyconsumptionintheunits withinpharmaceuticalsectorisheatload.Basedoncertainempiricalanalysisitwasdeterminedthat5% oftheheatloadcouldbesuitablyreplacedbysolarenergyapplications.Basedontheaforementioned assumptions,thetotalenergyreplacementpotentialinthesectorisestimatedtobeabout9ktoe/ annum. (IndiaP.P.,2011) Estimatedmonetarysaving(Rs.Million/annum) 607 Estimatedmonetarysaving(Rs.Million/annum) 160

Current Scenario in India

India'sambitiousnationalsolarprogrammehascatalysedrapidgrowthinthesolarmarketdrivingsolar energypriceslowanddemonstratinghowgovernmentpolicycanstimulatecleanenergymarkets, accordingtoanewreport. Inonlytwoyears,competitivebiddingunderIndia'sNationalSolarMissiondrovepricesforgrid connectedsolarenergytonearlythepriceofelectricityfromfossilfuels,saidthereportreleasedhere WednesdaybytheNaturalResourcesDefenceCouncil(NRDC)andtheCouncilonEnergy,Environment andWater(CEEW)(IANS,2012). DuringthisperiodcumulativeinstalledsolarcapacityinIndiaincreasedfrom17.8MWto500MW."As theworld'ssecondfastestgrowingeconomy,Indiahassparkedapowerfulsolarmarketinonlytwo years,"saidAnjaliJaiswal,seniorattorneyfortheIndiaInitiativeofNRDC,aUSheadquartered internationalnonprofitenvironmentalorganization. ThecurrentmanufacturingbaseinIndiaisrathersmallcomparedtothegigawattscalecapacitiesbeing setupinChina,Malaysia,Taiwan,Korea,etc.Sincetheindustryiscapitalintensive,increaseinscale wouldleadtoreductioninthecostofproductionperwattofsolarpanel.Theentiremanufacturingbase inIndiacomprisesofcellandmodulemanufacturing,leavingthebulkofthevalueadditionoutsidethe country. TheplayerscurrentlyoperatinginIndiainthesolarPVsectorarenotverticallyintegrated.Thebulkof thecurrentplayersbuyswafersandconvertsthemintocells,orbuyscellsandconvertstheminto modules.Morethan50%ofvalueadditionoftheentirevaluechainiscapturedinpolysiliconandwafer manufacturing.Thisleadstosubstantialmarginlossandincreasesthecostofsolarpanel,andtherebyof energygeneratedfromsolar.

Table13:CostStructureofCrystallineSiliconValueChain Source:(SolarPVIndustry:GlobalandIndianScenario,2008) AsperMNRE,approximately90companiesoperateinthesolarPVmanufacturingsegment.Outof these,15companiesareintomanufacturingPVcellsandapproximatelyanother20areengagedin manufacturingPVmodules.ThepresentinstalledcapacityofPVmodulesinIndiaisaround1,000Win additiontothesemanufacturingcompanies,around50companiesassembleandsupplysolarbased systems.TheseincludebothPVbasedandthermalbasedsystems. Indianplayershavenoorverylimitedpresenceintheupstreamsegmentsofthevaluechainsuchasthe developmentofpolysilicon,ingotsandwafers.Therefore,domesticplayershavetodependonimports fortheseproducts. Themarketiscurrentlydominatedbycrystallinetechnology.However,theincreasinginstanceof collaborationsbetweendomesticplayersandtheirglobalcounterpartsisleadingtothefastemergence ofnewertechnologies.

Table14:KeyplayersintheSolarPVIndustry Source:(ConqueringtheSun:ThrowinglightonsolarenergyanditsprospectsinIndia,2010)

Investment Landscape
TheindustryiswitnessingtheentryofnewlargeconventionalenergyplayerssuchasNTPC,Reliance IndustriesandIndianOilCorp.Morethan300companies,includingBharatPetroleumandWipro,have registeredforsettingupsolarprojectsunderthe2MWcapacitybyMarch2013thatwouldreap incentivesundertheJNNSM.

Thesectorisalsoseeingrisinginvestorinterestbyforeignplayers.Manycompanieshaveexpressed interestinformingJVsorpartnershipswithIndiancompaniestoexploitthesolaropportunityinthe country.Forexample,theUSbasedAmericanCapitalEnergy(ACE)andMSMEnergy(MSME)are planningJVsinthisspace,whileSignetSolarannouncedinvestmentplansofINR97billiontosetupsolar PVmanufacturingfacilities.

Table15:JVsinSolarIndustryinIndia Source:(ConqueringtheSun:ThrowinglightonsolarenergyanditsprospectsinIndia,2010) PEandVCplayersareincreasinglyexpressingtheirheightenedinterestinthesector,particularlyinthe moduleandcellmanufacturingsegments.Between2006andJuly2010,theIndiansolarindustry

attractedPEandVCinvestmentofINR11,797million.Thistranslatesto30%ofthetotalinvestment madeintherenewableenergysectorthesecondhighestamongtherenewableenergysectors.

Table16:Top5PE/VCtransactions(200510) Source:(ConqueringtheSun:ThrowinglightonsolarenergyanditsprospectsinIndia,2010)

Recommendations
SolarEnergyisstillinthenascentstageandisstillalongwayfromstrengtheningasanalternativeand comparablesourceofenergy.Becauseofthehighcostsattachedandeaseofsubstitutionwithother sourcesofenergy,theattractivenessofthissectorisstillnotverystronganddoesnotdependonthe normaldemandsupplyofpower. GovernmentpolicieshavegonealongwayinstrengtheningtheSolarPVindustry.Butfurther transparentandconsistentlongtermtargetsandaproperregulatoryframeworkwouldusherin greaterregulatoryclarityandstrengtheninvestorconfidenceinthesector. Thegovernmentpoliciescanalsobemodifiedtoprovideassuredreturns,whichwillmitigate thehighriskassociatedwiththeindustry.Despitevariousfinancingschemesandsubsidies, consumersalsorequirecreditforinstallationanddistributionoftheoffgridsolarproducts. Lackoftalentedandskilledprofessionalsisalsohinderingthegrowthofthesector.Necessary coursesandcollegesneedstobesetuptoprovideskilledprofessionalstotheindustry. Lackofpublicawarenessisanotherthornforthissector.Therearemanymisconceptionsand mythsaboutthesolarenergyanditsuseasaviablepoweroption.Campaignsforthesame needstobedevelopedtomakepeopleawareofsolarenergyandthetypesofproductsand incentivesavailable. IndialacksinR&DintheSolarPVCelldevelopmentandhastooutsourcemostofitfrom abroad,therebyraisingthecosts.GovernmentshouldprovideincentivesforR&D.Alsoprivate playersshouldbeencouragestotakeupR&Dinthisspace.

Technological advances

SKilled manpower Critical factorsfor thesuccess ofsolar energy Public awareness

Government policies

Availabilityof essentialraw materials

Availabilityof financing

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