Fuel for the future

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: The environmentalists have given enough warnings to the world polluters and polluting industry to protect environment and save the planet by using renewable energy resources. The best form of renewable energy available to the developing countries, especially India is the solar energy. Solar energy, which forms a mere 2 MW of grid power, therefore, deserves a leg up, both in terms of technology and policy.

India’s energy sector seems enthusiastic with the Special Incentive Package Scheme (SIPS), announced in 2007 to encourage the manufacture of photovoltaic (PV) cells and generation of solar power. As many as 14 proposals worth Rs 136,000 crore are now before an appraisal committee, which will vet them with a view to extending the investment subsidy of 20-25% proposed under SIPS. It is not just attractive subsidy but the fast changing world energy scenario, particularly for emerging economies such as India and China, whose growth ambitions could come a cropper on account of the rising costs of oil and coal.

If wind power generation has risen sharply in the last decade to account for 80% of India’s renewable energy output of over 10,000 MW, the next decade could belong to solar. While the installed capacity for wind power is limited close to 8,000 MW, which is little more than 2 MW in the case of grid-connected solar power.

India is a small player in the world photovoltaic cells market, yet 69% of its modules are exported. The rest are put to use mainly in telecommunications and lighting homes. If solar PV modules are the rage in industrialised countries — despite the fact that their energy efficiency is 15-20% — it is because of rising fossil fuel costs and the need to contain greenhouse gas emissions. Germany, Spain, Japan, China and the US are the leading PV module makers, with Germany making up almost half the world’s output of about 3,800 MW. China’s PV cell output was 820 MW in 2007 — 10 times that of India. It is time India broke into the big league, to take advantage of global technological transition.