1. ‘Solar power may compete with coal-generated power soon’

‘Solar power may compete with coal-generated power soon’

Solar power will become an attractive option for consumers to buy after five years due to reduction in prices...

By: | New Delhi | Updated: December 3, 2014 5:21 AM

Solar power will become an attractive option for consumers to buy after five years due to reduction in prices provided the government offers adequate fiscal incentives and streamlines policies relating to the the electricity market, says Tobias F Engelmeier, managing director, Bridge to India, a consultancy that  provides market intelligence and other services to solar sector companies.

Since the launch of the national solar mission in 2010, generation costs for solar projects have fallen 60% to 6.5-7 a unit.

If this rate of price drop continues, solar power may soon compete with coal-generated power, which costs R5-6 a unit.

Encouraged by the dramatic fall in solar generation costs,  the Centre has scaled up its initial solar generation target of 20 GW by 2022 to 100 GW, prompting global players to raise their bets on the Indian solar market. As of now, India has installed 3,000 MW solar generation capacity.

graph-solar

Of the 100 gw capacity addition envisaged by 2022, first 60 gw will be added through large-sized projects, of 200-1,000 MW each, over the next five years. After that, 40 GW capacity will be added with the help of smaller ( in kilowatt size), distribution generation projects.

Engelmeier told FE: “While the large projects, which are expected to help in reducing generation costs for the industry, will  need fiscal incentives, electricity from smaller projects that are envisaged to come later will be competitive in the market without any subsidy.”

According to him,  land acquisition  transmission  and financing  are the three key problematic areas for the solar power sector where the government needs to look into.

Engelmeier said that the government’s decision of not imposing dumping duty on solar equipment has added to the positive sentiments.

  1. N
    Narendra M
    Dec 3, 2014 at 8:12 pm
    (1) This is a welcome development as solar power is green, renewable energy source. Incidental to growth in generation of solar power, I believe, is promoting use of solar cookers in India. (2) In view of the ever–rising price of cooking gas (LPG), it would be in public interest to promote the use of solar cookers on a very large scale. The corporate sector can, as a corporate social responsibility initiative, make a very substantial contrition to promote solar cooking in rural and semi urban areas where it would be possible and profitable to use the cookers. (3) In most parts of our country solar cookers can be used far as many as 7-8 months in a calendar year. Since the cost of cooking would be reduced considerably, solar cookers will bring a ‘kitchen revolution’. (4) To promote solar cooking on a very large scale, two things have to be done: (a) New, user friendly, models will have to be introduced and (b) Appropriate subsidy has to be given to convince people of the utility of solar cooking. India’s socially responsive corporate houses can play a big part to promote use of solar cookers.
    Reply
    1. Sakshi Chopra
      Dec 3, 2014 at 5:05 pm
      visit new web portal for english news :vishwagujarat/en/
      Reply

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