Progress of Solar Energy Investment in India

Abstract

In this era of rapid industrialization, power is one of the most crucial components for the economic growth and welfare of nations. India, being a developing nation, has always faced deficiency of power. Consumption of fossil fuels in gigantic volumes to generate electricity has resulted in high levels of carbon emission causing massive damage to earth making the situation literally breathtaking. Phenomenon such as rain on the front side and a clear sky on the backside of the house, global warming, excessive smog and freakish storm weather patterns, like tsunami and floods are becoming more and more regular as a consequence of over usage of fossil fuels.

New Delhi is now not only the capital of India but also of pollution. The conventional method of electricity generation is becoming costlier and according to recent studies, at the current rates of production, oil will run out in 53 years, natural gas in 54, and coal in 110. This research paper draws light upon the various possible locations such as islands, villages’ etc wherein solar energy can be used to generate electricity. It also talks about the present projects of the government in this sector and the massive scope of foreign direct investment in harnessing sunlight to produce abundant clean energy for a better tomorrow.

Introduction

Fossil fuels are a finite resource that is becoming harder and more expensive to extract from the ground There are certain uses of fossil fuel (or at least by-products, even if we don’t actually burn them) for which there are no practical alternatives, so we should be focusing our use of fossil fuels on those uses, not uses for which there is a practical (and even superior) alternative. Burning fossil fuels releases particulate pollution which is harmful to human life and the environment. The unequal distribution of fossil fuel deposits across the earth has led to massive geopolitical problems, and this creates situations where our economy is affected by political movements and issues in relatively small parts of the world. For example there is a controversial attack or statement made by a foreign leader in the Middle East, it sends oil prices higher, which puts a drag on our economy due to more money spent on fuel. For power generation, renewable energy is actually cost competitive with fossil fuel sources, so continuing to use fossil fuels actually becomes a further drag on the economy.

Thus, like it or not renewable energy is the future and fortunately India is blessed with a vast potential for solar power generation since about 58% of the total land area (1.89 million km2) receives annual average Global insulation above 5 kWh/m2/day. Lopez (2018), “Eight minutes and 20 seconds. That’s how long it takes for sunlight to travel to Earth. And India has never been better prepared to receive it. As part of the world’s largest renewable-energy expansion plan, India is banking heavily on sunshine to meet an ambitious target.” Thanks to low-cost solar panels and government incentives for renewable energy, India surged past Japan last year to become the world’s third-biggest market for solar power, after China and the United States. Modi has called for generating 100 gigawatts of solar capacity by 2022 — nearly 30 times what it had three years ago, and equivalent to the entire energy output of Spain. From an energy security perspective, solar is the most secure of all sources, since it is abundantly available. Theoretically, a small fraction of the total incident solar energy (if captured effectively) can meet the entire country's power requirements.

Following are all the potential areas of investment.

• Solar Parks

Ministry of New and renewable Energy (MNRE) has drawn a scheme to set up number of solar parks across various states in the country, each with a capacity of Solar Projects generally above 500 MW. The parks will be characterized by well-developed proper infra-structure where the risk gestation period of the projects will be minimized. At the state level, the solar park will enable the states to bring in significant investment from project developers in Solar Power sector, to meet its Solar Purchase Obligation (SPO) mandates and provide employment opportunities to local population. (Solar/Green Cities, 2019)

• Solar Airports

Solar powered airports serve as a great eco-friendly as well as a pocket friendly solution as they prevent contribution to large amounts of carbon dioxide emissions and other harmful substances. Also, the airport saves on the massive recurring expenditure that is done on the conventional method of electricity generation. They are the best and the most convenient place for installing solar power, because airports have vast empty lands as buffer zones for clear visibility for aircraft; further their hangars are extremely large buildings with huge terraces that can be utilized for placing solar panels.

Cochin International Airport

The solar plant came online in August 2018, making Cochin the world's first fully solar-powered airport by German engineering company Bosch. The tens of thousands of panels generate on average slightly more than the roughly 48,000-50,000 kilowatts of power that the airport -- the seventh busiest in India -- uses per day. Surplus energy is fed into the wider electricity grid. The big project cost around Rs 620 million, a sum the airport expects to save in less than six years by not having to pay electricity bills anymore. It also estimates the solar plant will avoid more than 300,000 metric tons of carbon emissions from coal power over the next 25 years.

• Solar Railways

Indian Railways has planned to source 500 Mega Watt (MW) solar energy by providing roof top solar panels at Railway stations and other Railway buildings.

• Solar Cities

Urbanization and economic development are leading to a rapid rise in energy demand in urban areas in our country leading to enhanced Green House Gas emissions. The local governments and the electricity utilities are finding it difficult to cope with this rapid rise in demand and as a result most of the cities/towns are facing electricity shortages. In this context, the “Development of Solar Cities” programme is designed to encourage Urban Local Bodies to prepare a road map to guide their cities into becoming ‘solar cities’ thereby reducing their dependency on fossil fuels.

What is a Solar City?

The Solar City aims at minimum 10% reduction in projected demand of conventional energy at the end of five years, through a combination of enhancing supply from renewable energy sources in the city and energy efficiency measures.

• Solarisation of Ports

The Ministry of Shipping (MoS) has undertaken an initiative to implement utility-scale Solar Photovoltaic Power Plant projects at various major ports across the country. The Solar Energy Corporation of India (SECI) has been appointed as the overall project management consultant for these projects.

• Solar Islands

Islands, cut off from the mainland, often struggle to meet their energy needs. They have to ship in fuel and depend on polluting diesel powered gensets.

Fudam where a barren stretch of land gives way to a silvery expanse showcases Diu’s 9 MW solar park spread over 50 acres. It was built in 2016 and at a cost of Rs 62.48 crore. It has been successfully supporting the district of Diu, part of the Daman Diu Union territory to get on the green map of the country. From importing all the electricity it needed from Gujarat, Diu now generates power to meet all its day-time needs thereby making it energy self-sufficient that too, entirely from renewable sources.

Diu managed to utilise 50 acres of rocky barren land. It earlier spent Rs 80 lakh per month buying electricity from Gujarat. The bill has declined sharply. Solar parks have helped it save 12,960 tonnes of carbon emissions.

• Solar Villages

A large population of the rural India still lives in darkness and most of them depend on kerosene lit lamps for their day to day chores. This is not only ruining their health, but is also depriving them of the basic amenities in life.

Pandri Village

This was the first village in India to be illuminated using solar energy. The villagers pay a small monthly amount to sustain the proper functioning and maintenance of the solar system. This solar system has 72 solar panels spread across 2,000 square feet and provides electricity to 80 homes. The village now has solar pumps, solar lamps and fans, solar power-run rice hulling machine. Many of the villagers’ everyday problems have been solved. The villagers can now farm well and more often when compared to the earlier days. Having a lighting structure helps children to read and women to do their household chores.

Research Methodology

The purpose of this study is to gain insights on the potential of the solar energy sector in India. The research solely relies on secondary data extracted from various articles available on the websites of news channels and research papers and statistical data available on the website of Ministry of New and Renewable Energy of India. The analysis of data is performed in a quantitative manner dependent on data available on the government website.

Analysis

• Sea port. The country has 13 major sea ports and about 200 non-major sea ports and intermediate ports out of which only 7 ports have implemented solar energy projects.
• Solar Island. India has a total of 1208 islands including marine, riverine and lake islands out of which Diu is the 1st and only island producing electricity using solar energy for itself. There is high potential of investment in Andaman Nicobar Islands which is currently running mostly on diesel gensets that is the costliest and the dirtiest source of power.
• Solar airports. Cochin International Airport was the first Indian airport which had been built under public-private-partnership model. There are 132 airports in India out of which only 5 have established solar power plants. Therefore there are 127 airports wherein foreign investment can take place and a deal similar to that of Cochin airport can be achieved.
• Solar Railways. Since neither of the stations have equipped themselves with solar energy plants there is massive scope in case of Indian Railway which is spread over 1, 15, 000 kilometers.
• Solar Cities. Companies investing under the ‘the Solar City Programme’ can avail the financial assistance offered thereby entering into strategically well planned public - private partnerships.
• Solar villages. Companies can even indulge in societal marketing and can voluntarily take up the noble cause to bring the lives of poor people out of darkness thereby establishing a positive public image as well as can outsource the extra electricity produced to the residential or industrial areas thus earning monetary benefits at the same time.

The above figures clearly display the terrific scope of foreign investment available in the solar energy sector in India. Debut has taken place in almost every area. These debuts can be taken as sample models and further new projects can be piloted by taking the positive and negative aspects of these ones into account. Also, it is not necessary to make investments for such a large area. The capital can be invested for installing solar plants in a particular institution such as a school, college or hospital as well.

Conclusion

The solar power potential has been estimated to be approximately 750 GWp that to by using the wasteland availability data in every state and jurisdiction of India. The estimate is based on the assumption that only 3% of the total wasteland available in a state is used for development of solar power projects. The country recently marked 25 GW of installed solar photovoltaic (PV) capacity, according to Mercom India Research which means that 96.66% of solar potential yet to be put to use. The economics have become pretty attractive as the country’s investments in renewable energy sector have been growing faster than ever. Shah (2018), “India is in a win-win situation where the price of this revolutionary technology is falling and there is an ever-increasing demand for power.” With optimal utilisation of the solar energy, we will be proudly able to say that “The Sun never sets in India”.