Bullish on solar power, India gets 2k proposals
The country is becoming a favourite investment destination for both local as well as global players for its solar power potentials
New Delhi: India is blessed with solar energy equivalent to more than 5,000 Trillion kWh per year, which is far more than its total annual energy consumption.
The countrys geographical location, large population and government support are also assisting it to become one of the most rapidly emerging solar energy markets in the world.
Consequently, the country is becoming a favourite investment destination for both local as well as global players.
Solar energy offers enormous potential for a tropical country like India where around 45 per cent of households, mainly rural ones, do not have access to electricity, states a research report Indian Solar Energy Market Outlook 2012.
Demand for solar products has been rising rapidly over the recent years, especially in rural areas, and is expected to continue growing substantially during our forecast period (2009-2012). The total number of solar lanterns in India is projected to grow at a CAGR of about 40 per cent between 2009 and 2012.
The solar power industry has huge potential as the country receives about 300 days of sunshine every year. The country's solar power potential total is estimated at 85,000 MW, and the medium-term market is looking at US$ 3.5 billion investments.
In the union budget, the government has increased the allocation for the Ministry of New and Renewable Energy (MNRE) by 60 per cent to ensure that full support and funding was made available for clean energy projects in the country.
The country is likely to add 1,000 megawatts (MW) of solar power capacity to its national electricity grid by 2013.
According to the ministry these solar power projects would include 500 MW each in solar thermal and solar-photovoltaic capacity.
The proposed solar power plants are part of the first phase of ambitious Jawaharlal Nehru National Solar Mission (JNNSM).
The ministry also plans to proceed with a 100-MW demonstration tidal wave project in West Bengal and another experimental project to cool 100 telecommunication towers using solar power instead of diesel.
In January 2010, India launched the JNNSM program, which aims to add 20,000 MW of solar power to India's capacity by 2020.
During this period, the US$ 19 billion initiative proposes to develop 20 million square meters of solar power collection area and provide electricity to 20 million homes.
The program is also expected to create about 100,000 jobs and provide business avenues for small- and medium-size manufacturers of solar turbines and boilers.
The JNNSM program has received tremendous response from the domestic solar power industry, as the government has received about 2,000 applications for 5-MW solar power projects.
Due to the huge turnout, the government has decided to proceed with the reverse bidding procedure and identify 100 projects. The selection will be made based on the cheapest tariff rates quoted by the project developer in comparison to approximately Rs 4 per kWh fixed by the Central Electricity Regulatory Commission (CERC).
With banks and financial institutions skeptical about lending funds for solar power projects, IREDA signed a memorandum of understanding with the Central Bank of India, the National Bank for Agriculture and Rural Development (NABARD) and the National Housing Bank, to undertake refinancing of projects.
In 2010-11, IREDA is targeting loans of US$ 257.2 million for solar power plant development. In its bid to assist power developers, the government has decided to issue renewable energy vouchers and bonds to facilitate timely completion of projects.
Bullish on solar power, India gets 2k proposals | iGovernment.in
