Solar power is all set to light up the renewable energy industry in the country with the launch of Jawaharlal Nehru National Solar Mission on November 14. The Rs 91,684-crore draft plan, which aims to install 20,000 mw of solar power in the first phase ending 2020, was approved in principle by the Prime Minister’s Council on Climate Change recently.
The proposed government expenditure includes generation-based incentives of Rs 69, 985 crore and interest subsidy of Rs 7,300 crore spread over 30 years. Says K Subramanya, CEO, Tata BP Solar India, The launch of the plan will open up a big opportunity for businesses to tap the solar power market.
Rajiv Arya, CEO, Moser Baer Photo Voltaic said, “While the government should lay down an enabling framework, private sector should think innovatively to come out with energy solutions and customised products.”
Its this entrepreneurial spirit that has seen India install grid interactive renewable capacity of 14,485 mw, including solar power of 2 mw. India is also the seventh largest manufacturer of solar photovoltaic cells.
The rapid scale up of solar power to 20,000 mw is expected to make the sector cost- competitive. For example, power from conventional sources, which costs Rs 3.5/kwh, is expected to increase annually by 3% to reach Rs 4.70 / kwh by 2020. In contrast, solar specific tariff, which is Rs 18/ kwh, is expected to fall to Rs 5.60/kwh or lower by 2017-2020. The plan aims to achieve grid tariff parity by 2020, and parity with coal-based thermal power by 2030.
“The industry can promote a host of industries and generate employment for 1 lakh people by 2020. Installation of solar thermal power plants will also promote SMEs to manufacture components like boilers and turbines, which can even be exported,” adds Manoj Upadhyay, MD, Acme group, a leader in solar thermal power. The ministry of new & renewable energy offers generation-based incentives for grid-interactive power of up to Rs 12/kwh for solar photovoltaic and Rs 10 /kwh for solar thermal.
Source: The Financial Express
Published on 17 August 2009