It's all about Technology Selection, Policy Assessment, Financial Closure and Project Developement
Thursday, December 27, 2012
Importance of Consumer satisfaction in solar water heater business
Consider
consumer electronics sector where competition is about to neck to neck, from
small company to giant one, everyone want to achieve consumers attention. Whether they are selling Smartphone or double
door fridge, price may be ranging from 10k to 40k. They are trying to maintain
same relation with every customer regardless there earning potential. They are
spending lots of money on their customer care center, trying to minimizing
there manufacturing, designing, material errors by finding patterns in problems
which faced by customer.
Though Electronics products are delicate to
use and their life time depends on user handling, we have to empathize on a
thing that they are indoor product. They hardly affected by dust, weather
condition, heavy rain & unexpected mechanical damages. There operating
conditions are same every day. This is the main differentiating point with
outdoor products like solar water heater, solar panel, automobile, water pump
& outdoor machinery.
Now the point is
that if all those electronic companies can afford to spend lots of money on their
consumer care policies. Then why we are still waiting to apply same or little
more intensive program in solar water heater sector. If we are selling products of 30k and above
then we should have strong foundation of consumer concentric department which are
capable in dealing with every production aspect related to consumer.
,,,,,,,,,,TO BE COUNTINUED
Monday, December 24, 2012
Sunday, December 23, 2012
Solar start ups
What a tremendous force of start ups are lifting solar
energy worldwide!!! This is ranging from technological development in
manufacturing of photo-voltaic panels to the triple coating vacuum tubes in
water heating system. Advance technological development and socio-economical
aspects should go hand by hand. New generation is taking this convoluted
opportunity by standing confront of conventional odds by creating frugal way to
tap solar energy in their arms. They are not only making social impact but also
generating handsome profit in marginal sections. This new era of companionship
with sun is the only solution to the brighter future.
Saturday, December 22, 2012
IT has been announced that 54 cities in India will be designated "Solar Cities". In related news, grid connected photovoltaic projects worth 1.04 GW are said to have been commissioned under the first phase of the Jawaharlal Nehru National Solar Mission (JNNSM).
The Minister of New and Renewable Energy, Farooq Abdullah has given, "in-principle", approval to the development of 54 solar cities.
Overall, 8 master plans are said to have been approved for eight cities – Agra and Moradabad from Uttar Pradesh; Thane and Kalyan-Dombivli from Maharashtra; Indore from Madhya Pradesh; Kohima from Nagaland; and Aizawl from Mizoramand Chandigarh – and the development of projects is reportedly underway. A further 20 draft master plans have been developed. According to a statement released, a total of Rs. 19.23 crore (around €2.6 million, US$3.5 million) has been approved for the preparation of master plans, solar city cells and promotional activities for 41 cities. A further Rs. 11.98 crore has been allocated for the execution of renewable energy projects in five cities.
The minister added that eligible cities must have a population between 50,000 and five million, although "relaxation" will be given to special category states, including north east states.In related news, the minister has said that a total of 1.04 GW worth of grid connected photovoltaic projects and 160.8 MW of off-grid systems have been commissioned under the first phase of the JNNSM, between January 2010 and March 2013.Overall, the total installed capacity of renewable energy in India is said to be 26.267 GW. Under the country’s 12th plan period (2012 to 2017), a further 30 GW is expected to be added. "While cost of power generation from wind, biomass and small hydro are comparable with cost of power from conventional sources, solar power may take some more time to achieve grid parity," said the ministry in a statement released.
Tuesday, November 20, 2012
7 TIPS TO EXPAND YOUR SOLAR MARKET USING FACEBOOK
2) Market creation
Facebook is
made to connect different people all over the continents and to share their
status, images, videos .in short to make virtual world on the internet .there
are many people who just use Facebook for fun. They won't give any kind of
attention to your latest product, your success rate or your company position in
the market. Until and unless u find out how to attract them on your page. You have to think on new aspect. Instead of
finding your market try to create your new market here is the example of
creating market for solar water heater business
Key targets:- 1)
hotels
2) Hostels
3) Residential bungalows
4) Hospitals
Start campaign
for schools, collages through which you can spread awareness about use of solar
energy products, always remember that students are more concerned about the
renewable energy & climate change issue they can be a effective medium for
mouth to mouth publicity of your brand. So try to involve them in your FB page.
You can also start question & answer session on your page through which you
can effectively able to make strong & reliable image in the market.
For hotels and
hospitals try to make efficient design model for installation & maintenance
service. use your statistical records for making of new cost effective models
for different demands. Introduce new plans on your page.
Suggest your
existing consumers to upload there feedback, reaction about your products new
visitors would like to see such kind of consumer response.
,,,,,,,,,, TO BE CONTINUED
Monday, November 19, 2012
7 TIPS TO EXPAND YOUR SOLAR MARKET USING FACEBOOK
No matter whether
you are selling solar water heater for residential use or established solar
power generating company, you can follow this simple, effective & proved
steps to maximize your impact on the people
few years ago
there were some postulates about netizens that they are temporary people, there
memory lost within some clicks, they never takes your view ,comments seriously,
you can't depend on them as a reliable
market sector.
But now
definitions are changed we can see the impact of netizens on our business, they
are strong enough to trigger the revolution in some countries. Now online
marketing is become essential for instant growth of our business. And there is
one way to reach up to those large democratic people is Facebook
Facebook is the one door which opens many
paths. Paths which are neat & safe. Population of Facebook users are
increasing day by day. Billion and more people gather there to share text, images,
videos and knowledge. This post is not to explain how use full Facebook is for
online business, it’s well defined by many blogger before this. This post is to
explain how to use Facebook for particular solar industry market.
1) Profile page:
Your Facebook
page reflects your company's personality so be sure which kind of information
you want to upload on the page, my opinion is that state your accurate
information details and don't try to show bigger numbers. People may go to
remember you by your page view .so just try to make it in that way.
Solar business is growing vastly. Many
investors are jumping into this race, to stand in such competition where many
factors are same in both the competitors. You have to show the comparisons
between you and others .how beneficial you are than others. You can use your
statistics to impress consumers upload your success stories in your page
.establish two way communication between your audience .new viewers would like
to read feedback of your existing consumers.
,,,,,,,,, TO BE CONTINUED
Sunday, November 18, 2012
Delicate issue on the use of solar street light
Now a day’s awareness about solar street light is rapidly growing
traffic signals, gardens, apartments, schools, hospitals are there targets. It’s
really good thing that we are maximizing our solar energy uses & trying to
keep our nature cooler than before.
But on the
other side do we really making efficient energy management? Or just spending
more energy to save little. there are many question arises when we talk about
maintenance require for solar street light .basic assumption is that they
doesn't need any maintenance but there are some issues like dust layers, theft protection,
battery life, working time are still neglected. You can observe that half of
them are switched off at all time, covered by thick dust layer which is
considerably reduces its efficiency.
Another main
issue is that does it worth to spend money on solar street light where main
utility is actually supplying power?? Or invest on solar where main
electrification line is unable to rich??
Decision is ours
whether "just go for greener or be smarter”
Monday, November 12, 2012
THE CONCENTRATED SOLAR POWER (CSP) OPPORTUNITY IN INDIA
Mr. Lavleen Singal is the Founder of Acira Solar, a solar
thermal power producer. Acira Solar has technology partnerships with
international technology companies that have been involved in the development
and operation of solar thermal power projects. Mr. Singhal also advises BRIDGE
TO INDIA on CSP.
Falling costs of concentrated solar power (CSP) development
make India a promising opportunity for this industry. However, to realize this
opportunity, some challenges need to be overcome.
Globally, CSP technology is competing with falling cost of
PV technology However, India is one of the countries that hold most
promise for CSP; it is believed that costs can be driven down significantly in
India
Unavailability of data is a significant challenge that
hinders pre project preparation – considered necessary for CSP projects
The Government of India did well to kick-start India’s
ambitious National Solar Mission (NSM) to install 20,000MW solar power projects
by year 2022. The Indian CSP industry responded with equal enthusiasm. In the
first phase, 66 bids for an aggregate capacity of 2,911MW were received against
a requirement of 470MW capacity. The LCOE of selected bidders ranged from INR10.49
(EUR0.16) per kWh to INR12.24 (EUR0.18) per kWh against a price of INR15.31
(EUR0.23) per kWh recommended by the central regulator. It signaled a welcome
phase for CSP of falling costs and sustained deployment.
Seven projects totaling 470 MW are under implementation,
with most site development work completed, installation of solar field
components commenced and all equipment ordered from the respective vendors.
Although the date for completion and commercial generation is March 31st 2013,
it is unlikely that projects will start supplying electricity to the grid by
then.
The NSM document envisages construction of up to 9,000MW
grid connected capacity by 2017. In its 9th plan document to the Planning
Commission, the Ministry of New & Renewable Energy (MNRE) has sought funds
to provide Generation Based Incentive (GBI) for 2,500MW of capacity and the
NVVN has offered to ‘bundle’ 1,500MW of this capacity. The balance capacity is
likely to be met through a strong Renewable Purchase Obligation (RPO) with a ‘bankable’
Renewable Energy Certificate (REC) scheme.
However, globally, these are difficult times for CSP. This
is due to the declining costs of PV modules. With better viability, simpler
technology, easier construction and maintenance, many developers have preferred
to convert their CSP projects to ones with PV technology. From a present
deployment of approximately 2,000MW to an anticipated 20,000MW capacity for CSP
by 2020 seems highly unlikely under the current scenario.
Nonetheless, India is one of the few countries that hold the
maximum promise for CSP projects. We can expect a deployment rate of a minimum
1,000MW per year until 2017 as well as about 500MW of pilot demonstration
projects. Additionally, Indian states are likely to implement an additional
100MW of CSP projects per year in select states where the solar resource is
good.
Policy makers in India view CSP favorably due to its ability
to ‘store’ and generate electricity when needed; hybridization with coal, gas and
biomass; and the fact that smaller plants with storage meet the needs of rural
India where it is technically and economically not feasible to supply
‘conventional’ electricity. Developers and planners also strongly believe that
the Indian industry has the capability to drive down the costs of CSP faster
than the international market. It is already known that site development, civil
works, construction, installation and commissioning costs are significantly
lower than the rest of the world. As a result, it may be possible to implement
a fully optimized CSP project within EUR2/W without storage. A typical 100MW
plant ought to cost less than INR13.5billion (EUR195m) with an expected
electricity output exceeding 200GWh/year using parabolic trough technology (without
storage) at the right locations.
Anticipating a further reduction in costs, especially for
thermal storage, CSP projects could become more feasible than at present, once
the on-going projects have been implemented and their performance gauged. It is
for these reasons that the Indian market for CSP holds the maximum promise at
this juncture. This, however, is only part of the story. Pre-project work is an
absolute necessity while planning CSP projects, particularly in India. Solar
radiation data, particularly DNI data is simply not available. Without solar
resource characterization it is nearly impossible to optimize the solar field
and thermal storage size to achieve the lowest levelized cost of electricity.
Therefore, proper site selection, land acquisition, installation of solar
meteorological stations (measuring data for at least one year), pre-project
feasibility; identification of Indian vendors and assessment of their quality,
cost and performance are some of the key pre-project issues that must be
addressed. Proper pre-feasibility studies would lead to an accurate assessment
of the ‘bid price’, but more importantly a ‘letter of comfort’ from financial
institutions for non-recourse debt financing could be one of the key metrics to
the successful development of CSP projects.
THE MARKET THIS QUARTER: STATUS OF PV MANUFACTURING IN INDIA
Mr. Kai Bollhorn is responsible for research on supply trends and upstream industry as part of the Market Intelligenceteam at BRIDGE TO INDIA.
In the last quarter (July – September 2012), Indian manufacturers continued to struggle with the crash in global module prices. With little policy support and dwindling company finances, there is little or no room for investments into upgrading manufacturing capabilities.
- Contract manufacturing for international module suppliers is proving to be a source of revenue for domestic manufacturers
- Downward integration to engineering, procurement and construction (EPC) is working for some manufacturers in the industry
In the current adapt-or perish market scenario, a few Indian module manufacturers have adapted to the conditions in the market in the following ways: downward integration to project development and/or EPC tie up with international module suppliers for contract manufacturing and/or shift in focus to capture opportunities in niche markets in India.
In August, Tata BP Solar India formally announced its name change to Tata Power Solar Systems. This is a part of a previously announced restructuring. Tata Power Solar Systems is now a wholly owned subsidiary of Tata Power. Tata BP Solar is a pioneer with module manufacturing in India since the early 1990′s and has a track record in building projects, especially off-grid. This restructuring is expected to bring about a shift in the company’s focus to project development and execution.
Contract manufacturing for international module suppliers is proving to be another source of revenue for the domestic manufacturing industry. Some Indian manufacturers partly or fully lease their manufacturing facilities to international module suppliers. Such a contractual agreement provides international companies access to the market under the Domestic Content Requirement (DCR) [for cells and modules]. This also provides module suppliers an opportunity to capture an initial market share. An initial market share can provide companies strong early visibility and proof of performance in the Indian market. This can provide a significant first mover advantage. International module suppliers have existing contracts for procurement of raw materials for their modules. They can channelize a part of the raw material delivery to India. Placing large orders for raw materials to meet the demand for their global operations gives them a purchasing advantage in terms of cost. They also have streamlined processes that they have developed internationally with years of experience. This allows them to retain their competitiveness for India. Several international module manufacturers are looking to set up contract manufacturing to supply to projects under phase two of the National Solar Mission (NSM) starting 2013. BRIDGE TO INDIA’s industry conversations find that at least two European module manufacturers, a European power major and a Chinese module manufacturer (names cannot be disclosed) have either set up or are in the process of setting up contract manufacturing in India. From the information available on a few such contracts, typical yearly contracted production capacities in India are around 30-50MW. Indian manufacturers that have tied up for such contracts might become financially more stable and improve their production processes with the expertise of their international contractor.
Downward integration to EPC has worked to some extent for module manufacturers like Vikram Solar. It has obtained contracts under batch two of phase one of the NSM in this quarter and the Gujarat Solar Policy previously. The current projects under the NSM give Vikram Solar a pipeline of 40MW for module supply and EPC. Lanco Solar, that is providing EPC for Gas Authority of India Ltd. (GAIL), is expected to use its own modules. Enfield Infrastructure is developing a 10MW project under the batch two of phase one of the NSM and is expected to use its own modules that are being manufactured under the name of Sonthalia Group.
Downward integration to EPC has worked to some extent for module manufacturers like Vikram Solar. It has obtained contracts under batch two of phase one of the NSM in this quarter and the Gujarat Solar Policy previously. The current projects under the NSM give Vikram Solar a pipeline of 40MW for module supply and EPC. Lanco Solar, that is providing EPC for Gas Authority of India Ltd. (GAIL), is expected to use its own modules. Enfield Infrastructure is developing a 10MW project under the batch two of phase one of the NSM and is expected to use its own modules that are being manufactured under the name of Sonthalia Group.
Saturday, October 6, 2012
5 steps you should follow to be the SOLAR NATION.
1) Create awareness about solar energy & its advantages,
impact on the nature through the villages and urban areas.
2) Spread knowledge about solar energy products; develop
communities, organizational interaction on new technologies.
3) Cost is the main trouble in every type of renewable
energy. solar energy is not an exception though it is the cheaper than others.
So attempts should be made to minimize its capital investment by giving
incentives and subsidies.
4) Government should play a key role by making effective
budget and yearly plans which will trigger the development of solar power
plants.
5) Last but not the least is emphasis on centralized &
decentralized use of solar energy. don't use solar energy just because its
green technology, find its effective use in proper places. (Don't be stupid by
investing on street lights if u can make more energy through centralized pv
power plants at the same cost.)
Wednesday, September 26, 2012
Sujoy Ghosh, Country head of First Solar India, says on solar energy has a place in the generation mix
In the two years it has been in India, the American solar
panel manufacturer, First Solar, has gathered as much mind-share as market
share. The company has been in the news for both positive and negative reasons.
On the positive side it is seen as an aggressive company that has quickly
bagged orders from developers and EPC contractors.
Today, it has about a fifth of the market under its belt.
The country’s first grid connected utility scale plant — Moser Baer’s 5 MW
plant in Sivaganga, Tamil Nadu — has First Solar’s thin film panels. Recently,
the company secured an order for 25 MW of panels from Green Infra, a sizeable
order in the solar industry.
On the negative side, First Solar is seen as a company that
has succeeded on the back of some aggressive lending by the US Exim Bank. Besides,
the company’s Cadmium Telluride-based technology is frowned upon by
environmentalists and its order book has been fattened by an ill-advised skew
in the procurement policy of India’s largest solar programme. The National
Solar Mission allows developers to import thin-film based modules, but mandates
local procurement if they opt for crystalline silicon technology.
Sujoy Ghosh took over in May as the country head of First
Solar India, which contributes 8 per cent to First Solar’s revenues ($2.8 b in
2011). Sujoy earlier worked for GE and Tata Honeywell. In an interview to
Business Line, Sujoy speaks on the maths and myths of First Solar. Excerpts:
What is your order book position today?
Today, there are 225 MW of operating assets with First Solar
modules. There are several more under construction by developers who won
projects in Batch-II (of the first phase of the National Solar Mission), but I
would not like to disclose the details because it is up to our customers to
disclose them.
We now have about 20 per cent share of the Indian solar
market and we will maintain the market share.
You have incorporated your company here. What is the idea?
When we entered India in 2010 —that’s the time National
Solar Mission was taking off — we had a fairly satisfactory run of the market,
in terms of selling modules to either third-party developers or EPC contractors
— first to some of the ‘migration projects’ and then to Batch-I of Phase-I of
the NSM and then Gujarat. Over the two years we have developed confidence in the
Indian market that solar is here to stay. Solar has a space in the overall
generation mix of the country.
What prompted us to open an entity is we want to build local
capabilities on the ground and have a much broader relationship with the solar
market in India.
Could you amplify on that?
Sure. When I say local capabilities — look at First Solar’s
capabilities. We have the expertise to develop projects, do EPC, get financed,
both on debt and equity, maintain those assets for the investors. The thing
which we like about the development business is it helps to develop a pipeline.
While the programme in India has been successful, it is lumpy in terms of
demand. All the PPAs get signed on one day, everybody wants COD on the same
day, decisions are delayed till the last moment, either on expectations of a
drop in prices or to work through the documentation. This creates stress on the
system in terms of people like us or EPC contractors who have to stock
inventories and keep people on the bench, or let go of the opportunity.
For us as a company, our manufacturing process is
continuous, unlike crystalline silicon. We are still the lowest cost
manufacturer because we run out production lines optimally to full capacity to
hit those cost points. If we run out lines only three months in a year we
can’t.Therefore, it helps if we start developing our own pipeline
of projects, it helps us to bring predictability of demand which then enables
us to leverage our backend organisation — not just manufacturing, but system
design and EPC and plan for building capacity as it comes. That helps us become
more competitive.
That’s what prompted us to look at India as a key market.
One of the five ‘sustainable solar markets’ for us based on their natural
economic need, good irradiation or the country wanting to conserve their fossil
resources are India, Australia, Saudi Arabia, South Africa and Chile — India
and Chile because of the high penetration of diesel.
Our technology enjoys a good footprint in India and we want
to broad base that relationship and get into a bit of development from our
side, bring in our systems engineering expertise. A lot of these plants — the
first wave of plants, either under NSM or Gujarat — have been built, in a lot
of cases, by EPCs who don’t have much experience in doing solar. Yes, there
have been a lot of European EPCs who have plenty of solar experience in terms
of building assets, but there have also been an equal number of home-grown EPCs
who have come in and built plants.
I think asset quality in some cases might have been
compromised. Fifty per cent of the cost of energy is the funding cost. I think,
as a stakeholder in the industry, it is our duty to make lenders comfortable
with the asset. Only then will they lower their risks and only then will we see
good quality capital. Right now, many of these projects have been built with
recourse to the balance sheet. That is not really project financing. For Indian
banks, ‘will it work’ is the question that they want to see because there is
not much record of generation. Large Indian lenders, for instance PFC and REC,
who lend to other parts of the power sector, have not really got into solar and
unless that happens you cannot sustain an industry in India.
Do you organise funding for your customers?
Our customers have been able to organise finance, a
combination of local banks and foreign banks, we are not privy to the nature of
the …
There is an impression that you have been successful in
India because of the backing you have received in the form of low-cost
financing by the US Exim Bank.Well, first of all, US Exim is not captive to First Solar —
there are other US manufacturers in the market besides First Solar.
The other thing is — while I am not sure about the exact
percentage — a majority of our 225 MW is not financed by US Exim. The number of
projects financed by US Exim is probably a third.
The point is, we are selling because our technology, at
least in hot climatic conditions, produces more power than polycrystalline
silicon.
We hear very divergent views on that.
See, it is like this. Our nameplate efficiency figure is
about 12.7 per cent. The poly guys maybe at 15.5 to 16 per cent. The mono
crystalline may go up to 20 per cent. All these efficiencies are at ‘25 degrees
C, one atmosphere’ conditions. Now, each manufacturer publishes what is called
a temperature co-efficient. The degradation curve — as your ambient temperature
rises, your efficiency will fall. For the First Solar modules, that degradation
is 0.25 per cent per degree rise in temperature. For the average
polycrystalline, it is 0.45.
So, as the ambient starts hitting 40 and above, our modules
start producing more. This is ambient 40. Typically, the cell temperature is
15-20 per cent higher than the module temperature. FS modules typically produce
8-10 per cent higher energy under high ambient conditions.
The second thing about thin films generally is that the
impact of diffused sunlight —cloudy conditions, or dusty conditions — that
causes poly output to drop further, compared with TF. India is a combination of
high ambient and diffused. So generally we find that we get a higher energy
yield in India. That’s been fundamentally the reason for our success. That
helps to lower the LCOE (levelised cost of energy).
Thin Films, in general, and First Solar panels, require more
space. But the incremental cost of land is outweighed by the incremental yield
In how many months in a year in India would the temperature
be higher than 40 degrees?
Rajasthan and Gujarat practically nine months in a year.
First Solar modules are best suited only for these states
then?
In other places, even if the ambient temperature is lower,
the cell temperature is 15 per cent higher. If the ambient temperature is 35,
then the cell temperature is 50. I am saying, at more than 40 degrees our
panels start producing more electricity.
The other impression going around is that thin film has a
market in India because of the skew in Government policies (that permits import
of thin film modules, but requires crystalline silicon modules to be made
here.)
In Gujarat there is no such policy lacuna. The National
Solar Mission was 150 MW, and Gujarat was 600 MW. We got more share in Gujarat
than in NSM competing against Chinese companies.
I think people have bought us primarily because of our yield
performance. Second, they see First Solar as a profitable company. In projects
that are financed on non-recourse basis, the lenders demand a great amount of
due diligence and look at the solvency of the supplier for enforceability of
guarantee and warranty obligations.
True, US Exim has indeed helped people who have bought from
us. But then exim financing is available from other countries too. Exim is not
a captive product of the US. Exim is an enabler, but people first make a
technology choice. If they go for Chinese technology, they have access to the
same level of funding from the Chinese banks. It is unfair to say that the only
reason why we are successful or we got this kind of installed base in India is
because of EXIM.
Some experts say that thin film modules made sense when the
price differential between thin film and crystalline silicon was large. But now
the delta is so small and hence thin film modules do not make sense.
That argument is absolutely correct under temperate
conditions and rooftops. Because you end up paying higher price for ‘balance of
system’ for marginally higher price of the modules. But because of the yield
and because of the diffused sunlight and relatively low cost of land in the
overall economics of the project, there is still a significant amount of
advantage that the thin film brings.
The other point that we must remember is that crystalline
silicon pricing seen in the market today — in our view and as is evident from
the balance sheets of the companies — they are selling below their
manufacturing cost. So, the question is whether this cost is sustainable.
So, you have the balance of systems penalty for TF and the
higher yield advantage. Net-net, thin film is still advantageous.
Within thin film, do you think your Cad-Tel technology will
continue to rule the market?
Within thin film, we have CIGS, Cad-Tel and amorphous
silicon. I don’t know whether you are aware or not, First Solar was also
looking at CIGS, very actively, trying to build an alternative technology. The
cost of CIGS in our view is at a point that it will take them a long time to
catch up with us.
It is one thing to say ‘we have hit a certain efficiency
level in the lab’ and quite another thing to say ‘we are bringing such
efficiencies on a sustainable basis in our production line’. That’s a
considerable gap.
Second, are the efficiency levels (claimed by CIGS
manufacturers) bankable? How much data do you have to back that efficiency? Any
lender will say, you have reached that efficiency in the lab, fine, but show me
where it is working.
Crystalline guys would then have the same argument against
you? Do you have the same performance data as they do?
Why, we have performance data for 16 years.
In India?
In India also we have data. In India, even the crystalline
guys have date only for two years, because the grid-connected plants are only
two years. Off-grid is not a real measure of efficiency.
What about amorphous silicon?
In today’s world any new breakthrough technology requires a
lot of money to scale up commercially. The incumbent technology people will
also continue to improve their technology. Even we are working on our
technology to improve our efficiencies. It will be incremental.
On the poly side, you put in more material you will get more
efficiency. If you scan the global solar scale, you might see a lot of
interesting concepts. But if a company like GE, which was pursuing its own
solar programme gave it up, I’m sure other smaller players will find it very
difficult.
Thin film is really about the manufacturing process. How you
lower your rejection rate? How you are able to consistently produce the same
module-after-module, deposit the same material in the same way so that you get
the same results? It is about consistency in the process. It takes considerable
amount of time before you hit that. Till you hit that there is a lot of
rejection.
We have passed that point. Relatively we are pretty
stabilised.
Is the market then a blue ocean for you?
I am not saying that. It is not a blue ocean. India has got
other challenges. We are just discussing technology. I think from a technology
standpoint we have got certain advantages when it comes to utility scale solar.
That’s one dimension.
The challenge is our competition pricing their products at
probably below cost. I think the bigger challenge, as these programmes get
built in India is about ‘will this policy sustain’? Will the grid keep pace?
You can build a solar plant, but you do face grid congestions.
Finally, solar has to reach a point where wind is today, for
it to be really sustainable. Pricing of power, cost of power from that aspect,
has to be something where you need a FIT (feed-in tariff) to keep the wheels
turning. As an industry, all of us are trying to look into that point. Because
all of us do believe there is a shortage, and if we can bridge some of the gap
— it may not be huge in energy terms — people might be willing to pay a higher
price because right now the alternative is no power.
Do you see a situation where for a want of funds for FiT,
the industry is pushed to only bilateral PPAs?
The National Solar Mission is going to be there. The
Government has made a commitment.
But where is the money for NSM?
Look at it this way. The average price of Batch-II was Rs
8.50. The average HT price is at Rs 6 — and in the southern states even if you
pay the price you get power for three days a week. So, there is a demand.
Question is, are people willing to pay more for the demand? Second is, how much
are they willing to bet on the future price of coal. Solar is a good hedge
against that, because fuel is free.
A lot of us in the industry are trying to discover a demand
outside of FiT. But at the same time I think the NSM will be needed to give
scale. Indian industry needs to scale up. For that, both forms of programmes
(FiT and bilateral PPAs) need to co-exist.
Who is going to pay for the FiT?
Today, the gap between the price of conventional power on
the higher end and the price of solar power coming from FiT is not that big.
The differential has come down. You should intuitively believe that coal prices
should go up. Who predicted coal prices will be $140 a tonne. That’s where you
hit the grid parity point.
The question is, even if grid parity happens, will it uncork
large demand? Just by doing grid parity, it may not. You need other things such
as open access, how you are going to wheel and bank this power … really the
grid and the grid operator being comfortable with this kind of power coming in.
The solar assets which one creates also need to have features that make them
dispatch-able.
We are building assets such as a 550 MW A/C in the US. These
are large chunks of power coming into the grid. There is a well defined grid
code which we have to install in the design of the solar plant which will make
this power-grid-friendly.
I think as the plants in India, NSM Batch II come up, people
will begin to see some of those features being installed. Same like wind. From
the 250 kV class machines today you have 2 MW class machines. A 2 MW machine
has got a lot more features in terms of voltage ride-through, voltage control,
and some of those features which allow the machine to not go off-grid when
there is a grid disturbance — it rides through the disturbance.
A solar plant is also similar in nature. In wind you have
what’s called a converter. In solar it’s an inverter. It’s virtually the same
thing. What these Government programmes will do is, to help people to scale,
demonstrate that the power can be integrated into the grid properly, which will
give confidence.
Bilateral deals will happen, but again, we will not see
bilateral deals such as 100 MW happen in year one. People will test the waters.
Even if I have a PPA — even if I am generating, who is assuring me that the
grid is available? That’s where in this whole ‘bilateral deals’ we will still
have to figure out how to take the grid companies along with us.
So you still continue to depend upon these
Government-sponsored programmes?
We need both. I am saying that while the Government
programmes are important to scale…
Look at it this way. We’ll see probably the first few deals
happening on bilateral basis. If it works, I am sure there is enough demand for
people to move into these bilateral deals.
Today it is not about the appetite to take power — there is
the appetite. There is appetite to put the assets up. The key is really the
grid.
What are First Solar’s ambitions in India?
Our goal is to see if we can create a pipeline which is
predictable enough for us to then figure out if the Indian market is mature
enough for us to put in manufacturing operations here.
How do you intend to create a pipeline?
By developing our own projects. We are in discussions. As
you would recognize, when we do development … development and EPC construction
requires a lot of local expertise. We do believe that in India there is enough
local expertise available already.
So what we are trying to do is to structure partnerships.
Like: you got local developers who want to build projects. First Solar is here.
We’ve got the technology, got the experience to do this. We know how to put a
quality asset together. We also have some leverage in terms of financing. So we
are trying to put our combined expertise together instead of recreating
competencies.
Does it mean that you will not own the assets?
We ideally would not. We are not an IPP. We are a technology
company. What we want to do by development is really try to enable a pipeline.
Are you going to adopt the ‘wind model’, where a
manufacturer puts up a wind farm and then sells slices of it to investors or
IPPs?
We are trying to make that a model. The challenge for us,
unlike say Suzlon building a farm, is the price of power. Also, the Suzlon
model was built around ‘accelerated depreciation’. Whereas what we are trying
to do is to enable more solar energy coming into the grid. Slight differences,
but in the end the model remains same.
We want to create the assets and then ultimately transfer
the ownership to somebody who wants to own it long term and then have an
O&M agreement so that we deliver our performance for as long as the guy
wants to be comfortable with the asset. This is what we do in the US, Canada
and elsewhere.
At what stage is this thinking?
It would be premature for us to disclose to plans, but we
are looking at States where there is good solar irradiation, and States which
have good demand. Bilateral PPAs make more sense in South India. Currently,
that is where the power constraint is more. The Southern grid is starved of
energy. The bilateral PPAs will immediately make sense here.
What are your major concerns?
The big question mark is the enforceability of the RPOs
(renewable purchase obligations). It has not really happened, even if it
happens in the industrial sector —because in energy terms they are a big
consumer — if you start enforcing it across discoms, how are you going to
monitor, there is not enough monitoring capacity available — even if you
enforce it on a limited scale on the industries, I think that will give a
fillip to the market. REC/RPO is a good programme, but without enforcement it
has no meaning.
We are in the initial development stages with some partners,
looking at land options, looking at how we get the optimal PPA pricing and as
soon as we sort out some of these things we could probably begin construction.
Will the removal of accelerated depreciation for wind power
developers work in your favor?
There is some interest from some of those who have AD
appetite, but to my knowledge no deal has got closed. But remember, these AD
customers will start placing orders in February. So, it is early days yet.
What is your take on the manufacturing in India? Should the
Government mandate local procurement or not?
Our view, as a developer, is that there should not be any
restriction on their ability to source stuff. For the manufacturers, it is a
function of predictable demand — solar manufacturing is all about scale. Also
cost of power, cost of utilities in India is extremely high. We have to really
see what kind of incentives Government is giving to people who are putting
capital. That is secondary. The biggest issue is, is there enough scale
domestically created which can justify manufacturing at the same time not
impact the developers.
Because, if you set up a smaller scale manufacturing
plant…globally there is over capacity. The solar developer community is trying
to lower the cost of power so that it creates more demand, and at this point in
time if you impose restrictions on them, saying they have to source only from
domestic, they lose the advantage.
Therefore, it is a function of a) on the front-end, how do
you create scale, which will come if policies are consistently enforced.
Enforce RPO, you immediately create a market. If it is a natural economic need,
definitely people will come and put up manufacturing. We cannot have and should
not have a policy where you restrict the ability of the developer to bring to
you the lowest cost of power. If you do that, if cost of solar power goes up,
it is going to shrink the market, and it will be a non-starter. It will have
exactly the opposite effect of what you are trying to create.
Do you think there is scope to bring down costs outside
modules, say, in Balance of Systems?
I am not an expert on that subject, but here is what I would
say: the amount of cost focus that has been there has not been there on the BoS
front. But at the same time, remember, the BoS has got like fifty different
components.
Take the biggest — the inverter — is there a good scope for
cost reduction?
Even if you take 30 per cent cost of the current
inverters—inverter is like 2 cents per watt in an overall project cost of, say,
$ 1 .75. It is not going to make much difference.
But the module is only 50 per cent of the overall cost. In
some cases it is just about engineering, more than taking cost out — things
such as structures. In the first wave, the good ones, the EPCs mostly came from
abroad, because there was no Indian. They adopted the global designs to do the
first level of projects. People have learnt from that.
The Indian EPCs looked at their experience in non-solar and
built something. They have learnt from that. The way you do electrical systems,
foundations etc. There is scope to take BoS costs out, but a lot of it is about
how you engineer the plant and get more efficiency around engineering—how do
you design the plant for Indian conditions. People have learnt a lot.
What would you say about the high warranty claim reserves
set off by your parent company?
Any semi-conductor material which goes into higher
temperature will experience more abuse. It is physics. What we said was
historically 90-95 production used to go to temperate climates. Over the past
few years, India had about 8 per cent of our global revenues; we are building a
lot of plants in the US in very hot conditions. What we said was as our demand
changes from 90-10, to exactly the opposite, we will have more warranty
reserves, because we could naturally expect some recall of projects, because of
the more abusive conditions. That’s all to it.
Indian Solar Summit 2013
With aims to accelerate the number of solar installations in
the country to reach a target capacity of 30GW by 2017, India has established
itself as one of the most attractive renewable investment markets in the world.
In order to make this target a reality, India’s premier solar show – The Indian Solar Summit and Exhibition – is back in 2013.
In order to make this target a reality, India’s premier solar show – The Indian Solar Summit and Exhibition – is back in 2013.
Start Date : 18th April, 2013
End Date : 19th April, 2013
Place : Mahatma Mandir Convention Centre,
Gujarat
why solar ???
Since the earth was born every natural object transforms its steady state into the non-steady state by reducing its energy. Tree grows up by acquiring energy from its surroundings in the form of water, sunlight and minerals. Animals intake that energy by eating products from those trees. In this way all the living things are dependent on surrounding energy stock which is mainly provided by the sun. Yes, except the geothermal energy all kinds of energies are drawn from the sun.
Due to the pressure difference created by the solar radiation, wind is generated. All types of Bio fuels are developed by solar energy, all conventional energy sources are older forms of solar energy (as they are made up of buried vegetation, animals with some amount of minerals mixed with them). So any form of energy that we are using these days are, ultimately, products of solar energy.
Then why not use it in the direct form and make the world a better place to live in? :)
Tuesday, September 25, 2012
Azure Power (Gujarat)
Three solar power companies are in a legal tangle with the Gujarat Government over the issue of ownership of the companies that are putting up the projects. All the three – Azure Power (Gujarat), Millennium Synergy and ESP Urja – are wholly owned by American solar power developer SunEdison.
The point under dispute is whether or not these three companies are in breach of a covenant of the power purchase agreement which stipulates that the “power producer shall continue to hold at least 51 per cent of equity from the date of signing of this agreement”.
Azure Power (Gujarat) and ESP Urja have a 5 MW plant each, while Millennium runs a 10 MW plant.
Gujarat’s nodal agency Gujarat Urja Vikas Nigam Ltd had issued notices terminating the power purchase agreement for Azure Power (Gujarat) and had stopped making payments for the purchased power for the other two companies.
Azure Power (Gujarat) was initially promoted by Azure Power India, a company whose various projects have been funded by the German development finance agency, DEG, the US Exim Bank and IFC (Washington).
The three companies have petitioned the Gujarat Electricity Regulatory Commission. The Commission, in its orders passed recently, has stayed the operation of the termination notice served on Azure Power and has directed GUVNL to make the due payments to Millennium and ESP Urja.
“It is unfair and unjust that the generator is not paid for the power supplied by him to the distribution licensees,” the order says.
In the case of Millennium and ESP Urja, GUVNL had raised the issue of compensation to be paid by the project developers for any violation of the PPA covenants. But the Commission dismissed it saying that was “not a subject matter of the present petition.
”The IFC-funded SunEdison’s contention, as spelt out in the order relating to the Azure Power case, is that it signed the shareholder agreement – for taking over the ownership of the developer – prior to the signing of the PPA.
The question as to whether or not there is a breach of the PPA with respect to the covenant relating to the shareholding pattern is yet to be decided by the Commission.
Monday, September 24, 2012
solar vs wind
As the world continues to search for the best renewable
energy resources, two sources continually come to the forefront: solar and
wind. Although both of these sources are considered to be environmentally
friendly, there are pros and cons to be aware of.
Wind Energy
In many parts of the world, wind power is available in
abundant amounts. Along with this, it is 100 percent free. Areas that are clear
of obstructions (such as the United States plains), close to the shoreline, or
at a higher altitude make a better fit for wind energy.
Pros
- Wind energy does not release any pollution into the air: Along with this, it does not contribute in any way, shape, or form to global warming – except in their manufacture. When you add the fact that wind turbines do not consume any water, it is easy to see why this is at the top of the list in terms of alternative energy sources.
- Wind power does not cost a dime: In short, it is clearly one of the best renewable sources of energy as it is considered inexhaustible. In other words, there will always be wind. There is only so much oil and coal in the world. Along with this, it must be extracted from the earth which costs a lot of money. On the other hand, wind turbines can continuously harness the endless supply of kinetic energy derived from wind.
- A great source for local jobs: From construction of wind turbines to daily maintenance, as the use of wind energy increases more and more local jobs will be created. With the unemployment rate rising and no end in sight, any jobs created by this form of energy should be considered a huge benefit. Additionally, wind resources are often located in remote areas that are already at an extreme economical disadvantage. Bringing wind power to these areas can provide steady revenue to local communities including land owners and farmers.
Cons
- Not a reliable source in all parts of the world: In short, this form of energy is only efficient when there is enough wind to power the turbines. As you can imagine, there are many parts of the country that lack the necessary wind force.
- Wind farms are unappealing to the eye: Do you enjoy driving down the highway, looking off into the distance to admire the view? Well, this could come to an end, to a certain extent, as more and more wind farms are built throughout the world. Although beauty is in the end of the beholder, some feel that wind farms are nothing more than an eyesore.
- Land is expensive: One of the biggest costs associated with wind energy is the land on which the turbines will be constructed. Not only will this land need to be purchased or leased, it is often times more expensive in the areas (such as coastal communities) in which wind power is most effective.
Solar Energy
Over the past five years, solar energy has become more and
more popular. This holds true both among commercial and residential properties.
Although there are many benefits of solar energy and this appears to be the
wave of the future, there are disadvantages holding back mass production and
installation.
Pros
- No pollution: For some, this is the clearly the number one benefit of solar power. Solar panels give off no pollution. The only pollution produced is the direct result of the manufacturing process.
- The sun is an endless, clean supply of renewable energy: As long as the sun continues to shine this form of energy will do its job. On the contrary, finite fossil fuels, such as oil and coal, are not going to be around forever.
- Saves money in the long run: There is no denying the fact that solar panels can be an expensive upfront investment (more on this below). That being said, this source of alternative energy can save you money in the future. Since you are using less energy, your utility bills will be much less. In some cases, you may not owe any money at all.
Cons
- Cost of installation: As noted above, installing solar panels on a home or commercial property can be very expensive. This is a large upfront investment that is not affordable for everybody. However, if you can afford the initial cost you will more than make your money back in the long run thanks to smaller or non-existent utility bills. Generally speaking, the cost of a residential 5-kW system is approximately $35,000 depending on your location.
- Aesthetics: Are you aware that solar panels can take up a lot of space on your roof? For this reason, they are often times eyesores that homeowners are not willing to deal with. This is one of the biggest drawbacks because there is no solution.
- Not efficient for around the clock use: Solar panels only work when the sun is shining. When the sun goes down, you are forced to rely on stored energy from the panels or an alternative system. In turn, this could result in a small utility bill every month.
Veer Energy Buys New Millennium Solar Panels for India Project
Veer Energy & Infrastructure Ltd. (JHI), a Mumbai-based wind-power developer, bought solar panels for its first project in India from U.S.-based New Millennium Solar Equipment Corp.
Veer plans to install 400 thin-film panels of 58.5 watts each for a rooftop project in the Sanand district of the western Indian state of Gujarat, the company said in a filing today.
It will be Veer Energy’s first solar installation. The company, which plans to pursue larger megawatt-sized projects after this pilot, expects to earn an additional 20 million rupees ($374,111) profit in the year to March 31, 2014, from its solar business, it said.
New Millennium Solar was acquired in September 2011 by Sunlogics Inc., a Rochester Hills, Michigan-based company backed by General Motors Co. (GM) Sunlogics has changed its name to ViSole Energy Inc., according to its website.
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