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.
The challenges lie at two levels: increasing the efficiency of silicon chips and eventually phasing out silicon for nanotechnology alternatives, which can bring down the cost of production of solar power to half, that of thermal power. Japan is confident of increasing the energy efficiency of silicon chips to 40% and reducing the cost of solar power generation from 46 yen per kilowatt hour to seven yen per KwH. Mass production of PV modules will enable India to intensify R&D efforts, so that it can reduce costs from current levels of Rs 15 per KwH to Rs 5 per KwH.
The Government has approved the creation of a national solar mission, on the lines of the Atomic Commission. This was done on the recommendations of the National Manufacturing Competitiveness Council, Dr V Krishnamurthy, Chairman of the council. Commenting on the advantages of a ?mission?, he said that a programme on a ?mission mode? would receive high priority and procedures and formalities would be passed through faster. Apart from the fact that India has the highest potential in the world to harness sun power (?the ?irradiance factor? for India is the highest in the world?), he added that the country had also the potential to be the least cost producer and assembler of solar cells ? thanks to the abundant availability of silicon (sand). However, the Indian R&D effort in this area was very inadequate. The industry should focus more on R&D in areas such as raising the percentage of solar energy falling on the panels into electricity and bringing down the cost of production of raw materials in solar energies. Many corporate houses have planned investments aggregating Rs 50,000 crore in the solar photovoltaic industry.
The PV industry, especially in Europe, led by Germany, is making great strides in efficiency and cost, bringing solar power closer to price parity with fossil fuels, according to experts. In 2007, global production of solar photovoltaic (PV) cells increased by a 51% to 3,733 MW. According to estimates, more than 2,935 MW of solar modules were installed in 2007, bringing cumulative global installations of PVs since 1996 to more than 9,740 MW.
Germany is the world leader in solar PV installations, accounting for almost half the world total in 2007 and employing about 40,000 people. After Germany, Spain ranked second in total installations in 2007, driven by strong guaranteed price for PV electricity. According to the Worldwatch report, China raced past the US for PV cell manufacturing in 2006 to be third globally, and now ranks second only to Japan in national production. In the last two years, China?s PV production increased more than six-fold to 820 MW in 2007. Analysts expect as much as 50% price drop in the next two years as polysilicon becomes easily available, production and installation are further scaled up, manufacturing efficiencies increase and more advanced technologies are introduced.
The Indian government through the Ministry of New and Renewable Energy has drawn up ambitious plans to tap the potential for generating solar power. For solar energy programmes, fund releases have accelerated. In 2007-08, it amounted to Rs 77 crore, up from Rs 74 crore in the previous year. Maharashtra, Rajasthan, Meghalaya and Uttarakhand are major beneficiaries. India has not just sunshine round the year, but it could offer the ingredients to manufacture devices that store and distribute higher conversion efficiency power, said Stanley T Myers, President and Chief Executive Officer, Semiconductor Equipment and Materials International (SEMI).
With oil set to become scarcer in the long run and also cartelised now, and coal being a polluting source, solar energy is a clean, renewable source that can meet the global energy requirements over the long run. Presently, the conversion efficiencies of PV cells and the costs of making them are not very economical. Hence, the industry needs the support from the Government to accelerate technology developments and make it more cost effective.
The author is senior trade professor, IBS Chandigarh. He can be contacted at vasu022@gmail.com