Solar Energy:- Market

Development
Shirish Garud

6 Jun 2008 IIT Delhi, Training course

Outline
•Review
•R & D

•A brief analysis of markets

•Solar PV
•Solar thermal

•Suggestions

6 Jun 2008 IIT Delhi Training course

 Renewable Energy Electricity Status
India
All India Installed Capacity (As on 31st Installed capacity as on 31st March 2007 (MW)
Nuclear
March 2007)
RES 3% Status of various RE Technologies (as on 31st March 2007)
Waste-to-
6%
Energy Solar
Biomass pow er
0% 0%
/ cogeneration
11%
Hydro
26%
Coal Small hydro
54% 19%

Diesel
1% Source: CEA, GoI
Gas
Wind
10%
70%
Trend in RE Capacity over years
8000
Wind Source: MNRE,
Small hydro
7000
GoI
Biomass pow er / cogeneration Waste-to-Energy
INstalled capacity (MW)

6000
Solar
5000

4000

3000

2000

1000

0
90

91

92

93

94

95

96

97

98

99

00

01

02

03

04

05

06
19

19

20

20

20

20

20

20

20
19

19

19

19

19

19

19

19

6 Jun 2008
Source: TERI Compilation
IIT Delhi Training course
Year
Global Share in RE
Renewable Power Capacities, Developing World, EU, and Top Six Countries, 2006

Only 5% of
world share

6 Jun 2008 IIT Delhi Training course

Policy Reforms in India
1970s

R&D 1980s
programs
initiated Fiscal &

1990s
Focus on financial
2000 Onwards


developing incentives  More

RE introduced emphasis on

EA 2003, NEP
technologies (subsidy, tax fiscal 2005, NTP 2006
and products incentives, incentives 
etc)
 
Increased Quota/Obligat
Demonstratio

Increased Private Sector ion system
n projects role of Public Participation introduced
Sector Preferential
Undertakings
tariffs for RE

Integrated
Infrastructure
Energy Policy 2006
development
 Generation based
incentive for Solar
6 Jun 2008 IIT Delhi Training course PV/ Thermal
Product development cycle

Research and Development

Demonstration

Commercialization

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R & D: Points to ponder about

• First mover advantage lost?

• IBP developed first vacuum tube collectors in 1986
• Under the then MNES sponsored project
• Solar box cooker
• Lantern
2. R & D outside MNRE program
Selective coating developed by NAL
3. Suggestions
1. Identify niche areas
2. Need to have programmatic approach
3. Long term r & D goals
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R & D funding in Europe for SPV

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Solar photovoltaics

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Growth in Solar PV
Global scenario

3000 100
Annual Production (MW)

Cost per watt (2007US$)

2500 78.39
80
2000
60
1500
40
1000
500 20
3.84
0 0
76
79
82
85
88
91
94
97
00
03
06
19
19
19
19
19
19
19
19
20
20
20 Cost per watt (2007 US$) Annual production (MW)

Source : Compiled by Earth Policy Institute along with Worldwatch Institute

6 Jun 2008 IIT Delhi Training course 10

 Solar PV technologies

Technologi Extent of Market Stabilized Cost of Long term Remarks

es Commerciali Share Efficiency module stability
zation (modules
warranty)
C-Si (mono & Fully Approx. 13-18% at 160-180 Rs/ W 20-25 Better Power
multi) commercialize 90% for commercial years per unit area
d last few Scale
years

Thin Film (a - Not as Approx. 6-9% 130 –150 Rs 10 years Relatively

Si) commercialize 10% for /W less power
d as C-Si last few per unit area
years

New At R&D or Pilot 4-6% Not Available Yet to be Using

Emerging study stage established relatively
(Organic) cost effective
material.

Crystalline silicon technology is recommended

6 Jun 2008 IIT Delhi Training course
SPV development

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Technology development

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 Indian Solar PV market

Subsidized Non-Subsidized

PV products
Solar cells Solar modules

Individual owners

Corporate/ System integrators, exports

Government

Community ownership

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Solar PV Products in Indian market

• Large variety of products designed to

meet various needs. Few examples are
given below
(Typical capacities are indicated in the bracket)
– Solar home systems (37 to 74 Wp)
– Solar pumps (1 to 2 kWp)
– Solar street lights (36 to 74 Wp)
– Solar power plants individual households ( 1-5
kWp)
– Solar lanterns (2 to 15 Wp)
– Solar power plants
6 Jun 2008
for villages (1 kWp to 110
IIT Delhi Training course
 Category wise use
Others of PV Module in India
Telecom 12%
7%
Power Plant
Pump Exports
3%
3% 66%

Street Light
2%

Home Light
5%

Lantern
2%

335 MW aggregate capacity; 14,00,000 SPV Systems

Source : Ministry of New and renewable Energy, GoI, 2007 (as on

31 Mar 2007)
6 Jun 2008 IIT Delhi Training course 16
Market drivers and barriers
• Drivers
– Demand for electricity to meet essential
requirements like lighting, entertainment,
water pumping, communication etc
– Subsidy schemes
– Low interest loans
– Micro-credit schemes
• Barriers
– High costs
– Lack of marketing efforts
– Lack of supply and service network
– Lack of Customized products
– Subsidy schemes
6 Jun 2008 IIT Delhi Training course
Market characteristics

• Individual users
– Mostly from rural and semi urban areas
– Need for electricity is main driver of this
market
– Major products include- solar home
systems, solar lanterns, solar water
pumps
– Markets for non-subsidized products is
increasing in last five years
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Market characteristics

• Corporate / governments
– internet kiosks in rural areas
• E-choupal – internet based information service
developed for farmers
– Solar systems for niche applications
• Community owned systems
– Solar systems such as power plants, pumps to
meet the energy demand of remote
communities
• Mostly subsidy driven market
• In recent years low interest loans assisted / replaced
6 Jun 2008 the subsidy mechanism
IIT Delhi Training course
Some observations

• Share of home lighting systems in

increasing in recent years
• Solar lanterns are also becoming
popular due their low costs and
portability
• Multi-use products such as home
lighting systems with connection for
fan or transistor/ TV are preferred
6 Jun 2008 IIT Delhi Training course
UNEP solar loan program achievement
(up to March 2005)
Bank 2003- 2004- Grand
04 05 total
Karnataka

Canara 1,918 1,690 3,608

Syndicate 2,213 2,397 4,610
Grameens
616 2,380 2,996
Kerala

Canara 217 217

Syndicate 3 3
Grameens 216 216
Grand Total 4,747 6,903 11,650
• Source:
Source: ‘UNEP Indian Solar Home Programme
Overviewand Performance Report, UNEP,
March 2005accesed through
http://www.uneptie.org/energy/act/fin/india/docs/IndSolLoanReview.pdf

Photos- SVAM Electronics Ltd,

6 Jun 2008 IIT Delhi Training course Pune
Thrust areas for Future

• MW scale SPV systems

• Green power generation system
• Buildings utilizing solar PV systems
• Make domestic SPV market
competitive through market
development
• Solar ingots manufacturing
• Thin film materials / technology
development
6 Jun 2008 IIT Delhi Training course
Niche markets

• Applications
– Railways
• Signaling systems,
– Telecom
• SPV Power supply for
– rural transmitters,
– repeater stations,
– cellular network
– Information and Communication Technologies (ICT) in schools
– Internet kiosks
• Echoupal
– Small applications such as battery chargers, torches, mobile
chargers
• India has close to 100million cell phone users
– Advertising hoardings
• Annual market of 100 MW easily possible

6 Jun 2008 IIT Delhi Training course

Summery
• Solar PV has tremendous market potential
provided
– Customized products are designed
– Cost barrier is tackled successfully especially for small
grid connetced PV power plant
– Suitable financing schemes are offered
• Large market potential for smaller affordable
systems
– Niche’ markets
• Bringing down capital costs is key to tap the
market
• In spite of high costs solar PV markets are
increasing and sustainable growth is expected

6 Jun 2008 IIT Delhi Training course

 Solar thermal systems

6 Jun 2008 IIT Delhi Training course

 Solar energy collectors
40–60oC

UNGLAZED
COLLECTORS

60–90oC

SOLAR POND

60–80oC
NON-FOCUSSING
FLAT PLATE
(FPC) 100–150oC
COMPOUND
For low temperature 50–200oC
PARABOLIC
applications
EVACUATED CONCENTRATOR
(ETC) 100–250oC
SOLAR
COLLECTORS 100–500oC LINEAR
FRESNEL TYPE
For high and medium SINGLE AXIS
TRACKING 100–500oC
temperature applications
PARABOLOIC
FOCUSSING TROUGH
(CONCENTRATING) 300–1000oC

300–2000oC PARABOLIC
DISH REFLECTOR
TWO-AXIS
TRACKING 500–2000oC
HELIOSTAT FIELD
COLLECTOR
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Solar thermal systems

Potential – 140million sq. meter of area

Achievement- 2million sq. m area
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 Industrial hot water
systems

•Working since: 1997.

•GHG emissions saved:
700 t CO2 per annum
•Energy savings 22GJ
per day
One of the World’s largest industrial solar
water heating system •Payback period:5 years

Capacity: 1,20,000 lit /day

Application: Boiler feed water pre-heating
Installed at: M/s GFCL ltd, Kakinada
6 Jun 2008 Area: 60m × 80m (1309 collectors)
IIT Delhi Training course
Solar water heating for hotel
industry

Hotel Fishermans’ cove, (Taj Group), Chennai

Capacity: 20000 lit /day

6 Jun 2008 IIT Delhi Training course
Solar pond

6000m2 Solar pond at Bhuj dairy,

Bhuj, Gujarat
Designed and installed by TERI

6 Jun 2008 IIT Delhi Training course

 Solar steam systems

Solar steam cooking system in Leh

A view of solar steam cooking system installed at

Tirupathi, Andhra Pradesh
The system has been designed to generate over 4000 kg.
of steam/day at 180 0C and 10 kg/cm2 which is sufficient
to cook two meals for around 15,000 persons.

6 Jun 2008 IITwww.gadhia-solar.com/

Source: Delhi Training course
 India Innovates
ARUN160: Fresnel
Paraboloid concentrator
with cavity receiver with 2-
axes tracking having
160 m2 aperture area
installed under IIT-Bombay
-Clique R & D Project
sponsored by MNRE for
milk pasteurization at
Mahanand Dairy, Latur,
Maharashtra, INDIA

Source- M/s Clique Technologies,

Mumbai

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 Solar drying applications

• Men-Tsee-Khang, (A
pharmaceutical company)
based in Dharamsala
• Application - Drying of herbs -
100Kg/day
• Moisture need to be reduced
to 4%
• Operation hours
– 1000 to 1530 hrs during
winter
– 0930 to 1600 hrs during
summer

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 Barriers
• Site constraints
–
Shadow free area for installation
–
Factory layout
–
System integration with existing system
• Awareness and willingness to invest
• System designers and manufacturers
– Limited technical capacity
– Lack of instrumentation and controls

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Solar water heating systems

• Areas for improvements

– Controls and integration with existsing systems
– Constant temperature supply
– Hard water problem
• System integration in multi storey
buildings
– Efficient system integration
– Reliability of hot water supply

6 Jun 2008 IIT Delhi Training course

Future market development

• Need to provide push for large scale

systems
• Performance simulation and savings
• Cooling systems
• Can India be manufacturing hub for
solar power plants?
• Can we exploit hydropower and silica
deposits to have our own silicon
ingots?
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Some thoughts

• R & D activites
– Solar energy centre
• Autonomous centre with independent
budget?
• Long term R & D plan?
• Consortia projects
• Infrastructure
• Large scale demonstration projects

6 Jun 2008 IIT Delhi Training course

Other technologies

• Air heating systems/collectors

• Solar cooling
– Air conditioning
– Refrigeration
• Drying systems

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Suggestions

• Programmatic r & D , D and commercialization plans

• Encourage industries for R & D
• Urgent need to focus on technology and market
development rather than subsidy programs
• Special funds and fast track mechanism for demonstration
projects
• Joint R & D programs
• Solar vehicles competition for engineering students
• Sponsored projects on designing / sizing solar systems
• Promote India’s success on world wide scale
• Long term program and road map to meet national energy
needs through RE including solar
• Training and capacity building of industries

6 Jun 2008 IIT Delhi Training course

 Thank you for your attention!

Contact details:
shirishg@teri.res.in
Cell - 09811602069

6 Jun 2008 IIT Delhi Training course