anurag pandit report on solar power in india

8/18/2019 Anurag Pandit Report on Solar Power in India

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A N U R A G

P A N

D I T

2 0 1 0

S O L A

R G I Z E - I

D P

Widespread use of coal and other fossil fuels has led to

accumulation of enormous amount of carbon dioxide in

the earth's atmosphere and a resultant global warming.

Amongst the renewable energy sources, solar power

generation undoubtedly offers the most promising and

viable option for electricity generation for the present and

future. It is understood that solar power generated over

1% of the land area in the country is adequate to meet its

entire electricity requirements till 2030. In most parts ofIndia, clear sunny weather is experienced 250 to 300 days

a year. The annual global radiation varies from 1600 to

2200 kWh/m2, which is comparable with radiation

received in the tropical and sub-tropical regions. The

equivalent energy potential is about 6,000 million GWh of

energy per year


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INTRODUCTION

India being leading producer of wind power is

now looking towards arena of solar power in

order to satisfy its ever growing power need.

Currently India is in 11

th

position with 120

MW of installed solar PV capacity according

to “Cumulative and Newly –Installed Solar

Photovoltaic Capacity in Ten Leading

Countries and the World, 2009” by Earth

Policy Institute. But there still is large solar

power generating potential which is still yet

to be touched. Solar thermal technologies

have a special relevance in India due to high

availability of resources; average radiation is

4.5 - 6 kwh/m2/day with average 280 clear days. In view of the increasing energy demand in all the

sectors there is immense potential especially in domestic and industrial sector to meet thermal energy

demands. Activities in this field were started in India by Department of Non-Conventional Energy

Sources (DNES), which was created in 1982 to facilitate developments in the field of renewable energy, by

undertaking various R&D and demonstration projects in the field of solar thermal.

MARKET IN INDIA

Market in India is divided in two segments

Solar collector

Solar photovoltaic cell

SOLAR COLLECTOR

Solar collectors are used for gathering sunlight over a large area to concentrate it on a small area for

the purpose of heating. In Indian market solar collectors are used both at macro level as well as in

micro level. At macro level we use Concentrated Solar Power (CSP) systems

Concentrated solar power (CSP) are systems that use lenses or mirrors to concentrate a large area of

sunlight, or solar thermal energy, onto a small area. Electrical power is produced when the

concentrated light is converted to heat which drives a heat engine (usually a steam turbine) connected

to an electrical power generator

1000

1200

1400

1600

1600

1600

1900

1900

0 1000 2000

GERMANY

JAPAN

CHINA

AUSTRALIA

ITALY

SPAIN

USA

INDIA

Specific annual Solar yield

kWh/kWp


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Solar energy distribution map as shown shows that in

India maximum solar energy is mainly concentrated

in Rajasthan. While in other state also various

projects are also taking place like Moser Baer Clean

Energy Ltd, an arm of Moser Baer Projects Pvt Ltd

MBPPL), has commissioned the country’s largest

solar plant in Tamil Nadu. The 5-Mw plant is

estimated to have cost the company around Rs 70-75

crore. The project had been awarded by the Tamil

Nadu Energy Development Agency and is being

implemented under the Generation Based Incentive

scheme of the Ministry of New & Renewable Energy.

In Rajasthan areas marked with deep shade of brown

in the map given below, are the potential sites for

large scale CSP system. A Solar Thermal Power Plant

of 140MW at Mathania in Rajasthan has been

proposed and sanctioned by the Government in

Rajasthan. The project configuration of 140MW

Integrated Solar Combined Cycle Power Plant

involves a 35MW solar power generating system and

a 105MW conventional power component and the

GEF has approved a grant of US 40 million for the

project. The Government of Germany has agreed to

provide a soft loan of DM 116.8 million and a

commercial loan of DM 133.2 million for the project.

Currently in Bap, near Jodhpur in Rajasthan which

receives 2202 kWh/m2 annual equivalent effective

DNI (150 W/m2 ≤ DNI ≥850 W/m2) Dalmia Solar

company is building CSP plant which is projected to

generate 21.39 MU sellable units per year.

Currently Rajasthan government will promote setting

up of solar power projects for direct sale to Discom’s of

Rajasthan. The total capacity under this category will

be distributed equally between SPV and CSP based

power plants. The total maximum capacity under this

category for phase-1 (up to 2012-2013) is 200MW and

additional 400MW in phase-2 (2014-2017). Rajasthan

government also planned to develop solar park of 1000MW in identified areas of Jaisalmer, Bikaner, and

Barmer and Jodhpur districts in various stages. The State Government, under this policy, will act as the

facilitator to attract global investment in Rajasthan and will provide the necessary infrastructure,

regulatory and other Government support required through the Nodal Agency to rapidly ramp up Solar

Power generation capacity in the State. Solar Park shall consist of various zones viz. Solar Power Plants,

Manufacturing Zones, R & D and Training Centers zone and other amenities zones. The State will extend

all facilities and fiscal incentives provided by Central Government/Solar Mission to manufacturers in

Solar Parks.


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On its part incentives provided by the Rajasthan government are as follows

The energy consumed by the Power producers for his own use will be exempted from payment of

the electricity duty.

Generation of electricity from Solar Power Plants shall be treated as eligible industry under the

schemes administered by the Industries Department and incentives available to industrial units

under such schemes shall be available to the Solar Power Producers.

Water Resource Department will allocate required quantity of water from IGNP canal/the nearest

available source for development of Solar Thermal based power plants subject to the availability of

water for power generation. In case, the Power Producer proposes to use ground water for power

generation, the permission will be granted by the Ground Water Department/Water Resource

Department

The Solar Power Producer will pass benefits of CDM to the distribution licensee with whom PPA

has been signed as per appropriate Commission’s order.

Now as for Tamilnadu, it is emerging as another hotspot for global as well as local investor in field of

solar power. The average annual global solar radiant exposure in Chennai is 5.37kWh/m2 / day. The

power generation potential for the country using solar thermal generation about 35 MW/km².The

Ministry provided through IREDA, a generation based incentive of a maximum of Rs.12.00 per kWh (for

Solar PV) and Rs.10.00 per kWh (for Solar Thermal) generation to eligible projects, which are

commissioned by 31st December, 2009, after taking into account the power purchase rate (per kWh)

provided by the State Electricity Regulatory Commission or utility for that project. Any project

commissioned after 31st December, 2009 would be eligible for a maximum incentive with a 5% reduction

and ceiling of Rs.9.50 for solar thermal generation project

Opportunities for solar thermal power generation in India

Solar thermal power generation can play a significant important role in meeting the demand supply gap

for electricity. Three types of applications are possible

1. Rural electrification using solar dish collector technology

2. Typically these dishes care of 10 to 25 kW capacity each and use striling engine for power

generation. These can be developed for village level distributed generation by hybridizing them

with biomass gasifier for hot air generation.

3. Integration of solar thermal power plants with existing industries such as paper, dairy or sugar

industry, which has cogeneration units.

Many industries have steam turbine sets for cogeneration. These can be coupled with solar thermal power

plants. Typically these units are of 5 to 250 MW capacities and can be coupled with solar thermal power

plants. This approach will reduce the capital investment on steam turbines and associated power-house

infrastructure thus reducing the cost of generation of solar electricity

4. Integration of solar thermal power generation unit with existing coal thermal power plants. The

study shows that savings of upto 24% is possible during periods of high insulation for feed water

heating to 241

0

C (4).

INCENTIVE GIVEN BY CENTRAL GOVERNMENT

One of the major incentive provided by the Government of India for solar thermal systems is

100% accelerated depreciation i.e. the tax benefit in the first year of installation of the system

itself. However, there is no provision of tax benefits for individual consumers. In some states in

India, the owners of domestic solar thermal systems get rebate in their electricity bill, in terms of

2 to 3% reduction in tariff. The other incentives are as follows:


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CAPITAL COST OF SOLAR POWER PROJECT

Capital cost is one of the most important parameters for solar power tariff determination. The

cost of a solar power project is mainly dependent on the cost of PV modules / plant and

machinery, technology adopted, location of the site and capacity. Over and above, there is a very

limited experience in this area of generation. The capital cost (in Rupees Crores/MW), available

as on date are:

With further development in technology and economies of scale, production costs for Solar

Energy Projects may decline and be competitive or at least comparable to other renewable

energy options. Commission is of the opinion that the capital cost suggested by CERC is

reasonable. Therefore, Commission proposes to consider a capital cost of Rs. 16.90 Crores / MW

for solar photovoltaic power project and Rs. 15.30 Crores / MW for solar thermal power project as

suggested by CERC in their order dated 25-02-2010.

REFERENCES

Consultative Paper on “Comprehensive Tariff Order for Solar Photovoltaic and SolarThermal Power Plants up to 3 MW having grid connectivity below33 kV level” Rajasthan Solar Policy, 2010The Energy and Resources Institute (TERI), India

The Solar PV Landscape in India by PV group

Detailed project report for developing Solar Power Plant at Bap, Jodhpur, Rajasthan

O R G A N I S A T I O N KERC

UPERC

GERC

TEDA

IREDA

CERC

R e f e r e n c e

Draft 27-8-08

order 27-6-08

order 29-01-2010

Lr date 4-6-09

NCES regulations

dated 16-09 C a p

i t a l c o s t p e r M W f

o r P V

s y s t e mINR 22.5 crs

INR 18 crs

INR 16.50 crs

INR 18-24 crs

INR 22-25 crs

INR 16.90 crs

C a p i t a l c o s t p e r M W f

o r C S P

s y s t e mINR 22.5 crs

INR 13 crs

INR 14-16 crs

INR 15-20 crs

INR 15.30 crs

anurag pandit report on solar power in india

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