Potential of Solar Energy in India to Achieve Energy Security

Europe India Chamber of Commerce (EICC)“Europe meets India: Challenges and Opportunities” Brussels 9th October 2006 Potential of Solar Energy in India to Achieve Energy Security BY DR. PRABHU KULKARNI Soltech UK Limited Belfast, N. IRELAND E-mail: prabhu.kulkarni@ireland.com EICC- Europe meets India: Challenges and Opportunities Brussels 9th October 2006 Prabhu Kulkarni Solar PV energy applications outside India Opportunities for India to Leapfrog technology, Achieve energy security and Create high employment Considerable saving in import of oil and  generate exports and employment as good as, if not better, than the ICT sector  How it is done in the world EICC- Europe meets India: Challenges and Opportunities Solar Energy Potential Kwh/m2 energy availability from the Sun Prabhu Kulkarni EICC- Europe meets India: Challenges and Opportunities EICC- Europe meets India: Challenges and Opportunities Germany –Solar Data No. of Sunny days/year Highest daytime temp. Lowest daytime temp. Solar insolation kwh/m2 PV electricity 2005 (MW) 95 22-280C 2-60C 1050-1200 837 MW EICC- Europe meets India: Challenges and Opportunities Brussels 9th October 2006 Prabhu Kulkarni Germany's PV market installations grew 53% to 837 Megawatt in 2005, corresponding to 57% of the world market so far  Japan produced 167 MW and the USA, mostly California, produced 102.2 MW PV energy Total EU production of PV energy in 2005 was 1070 MW EICC- Europe meets India: Challenges and Opportunities Total Installed Capacity in EU countries in 2004 In 2004 installed capacity of solar PV in the EU countries is higher than India. Most European countries have about 80 to 100 sunny days in a year EU Total Germany Netherlands: Spain: Italy: Rest EU: India 1010.13 MW 798.00 MW 49.08 MW 37.70 MW 30.70 MW 50.95 MW 45.00 MW EICC- Europe meets India: Challenges and Opportunities Solar PV in India- Opportunities  India has ideal solar conditions for applications of PV technology nearly similar to California, Spain and Australia and far better than Germany  India needs a political will to introduce attractive incentive package for renewable energy projects and to engage thriving middle classes and innovative businesses in this technology EICC- Europe meets India: Challenges and Opportunities Solar PV in India- Opportunities It appears that the planners in India view solar energy only as a solution to rural or remote area electrification All forms modern renewable energy sources, including Solar energy, are difficult to use in rural India due to high initial investments and dependence on storage for the night use and lack of grid connections as a back-up system However involvement of prosperous middle classes and enterprising business community in Solar energy applications will transform the Indian renewable energy sector EICC- Europe meets India: Challenges and Opportunities Solar PV in India- Opportunities Solar Data No. of Sunny days/year Highest daytime temp. Lowest daytime temp. Solar insolation kwh/m2 PV electricity 2005 (MW) India 300-320 35-480C 10-250C 1900-2100 55 MW Germany 95 22-280C 2-60C 1050-1200 837 MW EICC- Europe meets India: Challenges and Opportunities Solar PV in India- Opportunities Total installed PV capacity in 2004 in India was 45 MW This mostly covers small applications like motorway phones, solar cookers, solar lanterns and street lights A handful of large scale applications are of 25 to 200 kW capacity There are no commercial scale applications similar to USA, Japan or EU EICC- Europe meets India: Challenges and Opportunities Solar PV in India- Opportunities  20 to 30% Urban Indians use about 80% of the commercial energy produced in India  Nearly all of this urban population posses a back-up diesel generators of varying capacity or domestic invertors to reduce impact of power shedding and irregular power cuts EICC- Europe meets India: Challenges and Opportunities London, - City Hall goes solar- September 14, 2006  London’s City Hall has been granted planning   permission to install state-of-the art photovoltaic solar panels generating non-polluting energy Southwark Council has approved the planning application for a unique photovoltaic system, which has been specially designed to compliment the rounded shape of the Foster and Partners designed building The panels will provide 70 kW of renewable energy, generating 3.1 million kWh of renewable electricity over their lifetime. The panels will reduce the CO2 emissions of City Hall by 3,000 tonnes in its lifetime EICC- Europe meets India: Challenges and Opportunities WORLD’S Mega PV ENERGY PROJECT- Germany August 5, 2006 City Solar Constructs 20 Megawatts of PV Systems in Spain- Bad Kreuznach, Germany: 200 individual installations producing 100 KW eachoverall capacity of 20 MW The solar park will be completed by late summer 2007 Overall area of 500,000 m2, equal to the size of 71 football grounds almost 100,000 polycrystalline modules will be installed to provide annually about 30 million KWh SP power EICC- Europe meets India: Challenges and Opportunities How do they do it? The EU, US, and Japan experience suggest that growth in use of renewable energy is higher in those states that offer better incentives such as grants, subsidies and tax reduction EICC- Europe meets India: Challenges and Opportunities German Energy Act 2000 In 2002 the purchase price of solar PV energy to producers was fixed at €O.48/kWh with an annual reduction of 5% Every single unit of PV electricity produced is counted as a grid connected unit and paid accordingly Similar to Germany a number of other EU countries, with a successful renewable energy industry, have introduced incentives for solar energy projects, latest is the France in August 2006 EICC- Europe meets India: Challenges and Opportunities German Solar Energy initiatives Between 1998 and 2003 the German Government offered €1.4 billion in grants and soft loans and tax cuts to the renewable energy industries and users in Germany This attracted €6.2 billion private investment Created RE energy with annual turnover of €9.2 billion and over 135,000 jobs in Germany In 2005 the German domestic and commercial PV installation increased by 53% EICC- Europe meets India: Challenges and Opportunities German Renewable Energy Act 2000 Obligations on Grid operators They must provide a connect facility and give to the Producers of Renewable Energy, a priority in their operation Pay fixed rates for the renewable energy higher than the rates paid to the conventional energy suppliers, and  Pay the cost of grid expansion that may be required EICC- Europe meets India: Challenges and Opportunities 2006 California Solar energy initiatives- No 2 in World  California initiative of February 2006, is expected to increase rooftop solar PV installed peak time capacity to 3,000 MW in the next ten years  An investment of US $ 2.9 billion is expected create 40,000 to 60,000 new skilled jobs and will benefit the Californian economy by $18-20 billion annually EICC- Europe meets India: Challenges and Opportunities 2006 California Solar energy initiatives The main provisions are that  for every watt of solar PV installed, the customer will receive $ 2.8 refund  This amounts to about 40-45% of the installation cost  Average electricity requirement of a California residence is about 3-5kw installed capacity  The rebate will be reduced by 10% annually and will end in ten years EICC- Europe meets India: Challenges and Opportunities 2006 California Solar energy initiatives  There is cap of $2000 for residential customers, There is no cap on the existing tax credits for the commercial customers  A typical commercial PV installation is about 300500 kW  They will qualify for a combined benefit of subsidy and tax credit equal to about 60-70% refund on investments EICC- Europe meets India: Challenges and Opportunities 2006 California Solar energy initiatives All domestic and commercial customers are eligible to participate and 10% funding is set aside for the low income customers The Programme web site: www.cpuc.ca.gov EICC- Europe meets India: Challenges and Opportunities Florida Incentives for new solar program $100 million fund will be available to Businesses, nonprofit organizations and residential customers as a rebates to install solar PV or thermal water heating It establishes an initial rebate level of $4/W declining by 50¢/ year  The starting rebate level will increase to $5/W for panels manufactured Florida Maximum rebates is $20,000 for residential customers and $100,000 for commercial and non- profits organisations EICC- Europe meets India: Challenges and Opportunities Phoenix Arizona - September 23, 2005 Arizona (CPP) scheme  customers receive up to $4 /watt or up to 50 percent of the PV installation cost for grid-connected systems and up to $2 per watt for off-grid systems without limit  In addition customers receives up to $700 for solar water heating systems  An additional $2 million are available for APS customers to install residential or commercial solar energy systems EICC- Europe meets India: Challenges and Opportunities UK Energy Act 2003  The present UK Energy Act (2003) offers support similar to the best in the EU for Renewable energy projects  The government has a target to reduce the UK’s GHG emissions by 20% by 2012  The benefit offered to investors in PV range between 40 and 60% grant to small and medium scale companies and up to 70% to private users  The UK 2004 grants scheme is expected to increase growth in use of solar PV and thermal technologies to the EU level in the next ten years EICC- Europe meets India: Challenges and Opportunities Solar PV in India- Opportunities Experience of Germany, Japan, USA and other Western Countries show that the solar technology is more suitable for commercialised major cities and urban areas Solar PV technology has potential in India to provide about 60 to 80% of energy needs during the day time and the peak hours  SME businesses  public and private organisations  middle & high income family homes EICC- Europe meets India: Challenges and Opportunities Solar PV in India- Opportunities It appears that the planners in India view solar energy only as a solution to rural or remote area electrification All forms modern renewable energy sources, including Solar energy, are difficult to use in rural India due to high initial investments and dependence on storage for the night use and lack of grid connections as a back-up system However involvement of prosperous middle classes and enterprising business community in Solar energy applications will transform the Indian renewable energy sector EICC- Europe meets India: Challenges and Opportunities Solar PV in India- Opportunities  It is possible that with attractive incentives like Germany, EU or California  Investment of US $3 billion we can release the economic potential of people to create a multi billion dollar industry to reduce fuel imports and satisfy increasing energy demands  Like California India can also produce 3,000 MW of peak time electricity in urban areas  This is equal to 2 or 3 Nuclear power plants which cost about $20 billion each EICC- Europe meets India: Challenges and Opportunities Solar PV in India- Opportunities Recent MNES advertisement in the national papers for the soft loans to general public without conditions or restrictions of income is a step in the right direction  If taken up by one million people in India then the government is likely save equilevallent about 890,000 barrels of oil annually  It is likely to result in an annual saving of about Rs. 260 Crore if oil price remain @ $ 65/b EICC- Europe meets India: Challenges and Opportunities Solar PV in India- Opportunities Impact of German or California style incentive in India will be unimaginable Induction of about $ 3 billion in tax incentives, soft loans and grants to the educational institutions and government buildings and private users will transform energy consumption pattern in India One million homes in a year, using solar energy during the day will reduce India’s oil imports by over US $ 300 billion per year for over 30 years EICC- Europe meets India: Challenges and Opportunities Solar PV in India- Opportunities It will generate exports and employment as good as, if not better, than the ICT sector Create a hundreds of thousands of jobs in component manufacturing System installation and service industry Earn substantial funds in carbon trading Create sizable export industry US proposes to create 2 million, EU plans over1 million new job in this field by 2015 and Germany has created over 150,000 Can we afford to neglect our Suryadev? Can we afford to neglect our solar resources? Can we achieve energy security so easily in any other way ? EICC- Europe meets India: Challenges and Opportunities 10 MW for rooftops of tire maker Michelin- January, 2005   German Voltwerk AG is building four PV systems with a total of 10 MW on tire manufacturer Michelin's production hall and warehouse The PV company sees the move as part of a trend away from systems on undeveloped areas and onto roofs ---------------------------------------- Roof protection: Protective mats are used to keep the roof watertight; aluminium trays are weighted down with gravel to prevent modules from blowing away due to heavy winds. EICC- Europe meets India: Challenges and Opportunities 189 kWp Lehrter Central Railway Station Berlin 2003 by Engcotec EICC- Europe meets India: Challenges and Opportunities Aerial view of 3.7 MW roof top system  BP Solar has completed construction solar power system on four warehouse roofs owned by the Fischer family in Kronwieden in Bavaria. EICC- Europe meets India: Challenges and Opportunities 70 MW PV power plant planned in Germany - August, 2006  In the 1930s and '40s the German Air Force experimented on this site; later, it was occupied by the Red Army  Now solar energy is the future at the Brandis airfield near Leipzig  construction will start this year and be finished by 2009 EICC- Europe meets India: Challenges and Opportunities  Football stadium Freiburg, Germany EICC- Europe meets India: Challenges and Opportunities BIPV on Commercial Building- Freiburg, Germany EICC- Europe meets India: Challenges and Opportunities  Potential EICC- Europe meets India: Challenges and Opportunities Oakland, CA, USA: FedEx California’s Largest Corporate SPV EICC- Europe meets India: Challenges and Opportunities 309kW SPV US Navy HQ in Hawaii, USA EICC- Europe meets India: Challenges and Opportunities 155 kilowatt solar PV San Rafael, CA, USA  The Kentfield School District, with dedicate a 155 kilowatt solar PV system for the elementary school campus in San Rafael, CA, USA  It will provides 100% of its electric needs EICC- Europe meets India: Challenges and Opportunities A Company HQ in Vermont, USA EICC- Europe meets India: Challenges and Opportunities Florida's new solar program in first year  With its first PV incentive program since 2001, when this system was installed, Florida is once again trying to apply its nickname to its energy production. EICC-Europe meets India: Challenges and Opportunities Brussels 9th October 2006 1 MW SPV in Switzerland EICC- Europe meets India: Challenges and Opportunities The newly renovated EAR Tower in Pristina, Kosovo EICC- Europe meets India: Challenges and Opportunities SBIPV on Commercial Building- France, EICC- Europe meets India: Challenges and Opportunities Highway solar in Japan EICC- Europe meets India: Challenges and Opportunities BIPV IN Osaka Japan- Solar Watt, Germany EICC- Europe meets India: Challenges and Opportunities Colt system, ECN building 31 in Netherlands  Colt system, ECN building 31 in Netherlands EICC- Europe meets India: Challenges and Opportunities Close up of Colt system in Netherlands EICC- Europe meets India: Challenges and Opportunities EICC- Europe meets India: Challenges and Opportunities EICC- Europe meets India: Challenges and Opportunities