The Beginning of Something Big

The Beginning of Something Big

By Dan Martin, Executive Vice President, Photovoltaics, SEMI PV Group

Think back to Germany in 2003, before the amendment of the Renewable Energy Sources Act, and you will see parallels with many of the activities and transitions now occurring in India. On November 14, the government of India is due to unveil its (drafted) National Solar Mission, named the Jawaharlal Nehru National Solar Mission after India’s first Prime Minister. The solar policy will lay down the roadmap to expand the current 150 megawatts (MW) to a reported 20 gigawatts (GW) by 2020 and 200 GW by 2050, the most aggressive program on paper in the world. Total solar PV deployed in the world this year will be only 5-6 GW.

In 2003, prior to the increased feed-in rates, the total German market for PV was also around 150 MWp, with a total accumulated installed based of around 600 MW. The European Photovoltaic Solar Energy Conference and Exhibition (PVSEC) and other industry trade shows were still comprised of less than 300 exhibitors. Only a handful of visionary companies were positioning themselves for the coming boom and few people in the energy industry heard of companies like Q-Cells and Ersol. Today, Germany will deploy around 2.12 GW, nearly 40% of the world’s total.

India today probably produces more solar power than Germany did in 2003. Over a dozen PV plants operate in the country and increasingly companies like IndoSolar, Moser Baer, Titan Energy, Tata BP Solar, Solar Semiconductors, and Signet Solar to name a few, are making their presence felt on the world stage. In proclaiming his countries ambitions in solar power, Prime Minister Dr. Manmohan Singh said, “We will pool all our scientific, technical and managerial talents, with financial sources, to develop solar energy as a source of abundant energy to power our economy and to transform the lives of our people. Our success in this endeavor will transform the face of India.”

National Solar Mission targets called out in the draft

  • India solar manufacturing capacity ramp to 4-5 GW by 2017
  • Target to electrify 3 million households by 2012 and 20 million by 2020
  • Target of 1 million rooftop systems by 2020
  • Total costs would be 85,000 and 105,000 crores ($18.5 billion to $22.8 billion) over a 30-year period

To help finance the Mission, the plan foresees taxes on gasoline and diesel, a feed-in tariff, solar power purchase obligations for Indian authorities, tax breaks for manufacturers, and exemptions on tariffs for imported equipment. International funding through mechanisms such as UNFCC (UN Framework Convention on Climate Change) will also be explored. A Solar Energy Authority of India would be set up to manage the system.

One of the significant differences between Germany and India is that solar power is critical to meeting India’s rural development needs. With over 50,000 villages in India without electricity, solar power has enormous potential to meet rural electrical needs, improving the lives of millions of Indians and meeting critical agricultural, education and industrial needs. There is a great untapped potential for off grid PV technology deployment for lighting and electrification, powering irrigation pumps, providing backup power for the growing network of cell towers, as well as other urban applications. By making available this off-grid source of power, many of the 450 million people in India who now rely on kerosene and other fuels to light their homes could enjoy a significantly higher quality of life.

Crucial to the Mission would be building up local manufacturing capacity. The plan envisages training 100,000 specialists by 2020. It also foresees the need for processing facilities for raw materials, factories and technology parks for making components and equipment and generation parks to produce electricity.

The Solar PV Landscape in India – An Industry Perspective

Earlier this year, SEMI India announced an outline and vision for the Indian solar market, including growth opportunities and potential socio-economic development benefits, the current market situation and public policy needs. The SEMI India white paper entitled, “The Solar PV Landscape in India – An Industry Perspective,” envisioned that India can play a leading role in the global PV and solar industry. Developed by the SEMI India PV Advisory Committee, represented by industry leaders from all sectors of the solar PV supply chain, many of the paper’s recommendations are expected to be included in the National Solar Mission.

SOLARCON India

The essential ingredients for India’s National Solar Mission—what needs to be done, how to make it happen, what will be the key technologies and solutions-- will be discussed at SOLARCON India on November 9-11 in Hyderabad, India. The three-day conference will provide an opportunity to learn about and understand the huge opportunity in India, including the deployment challenges, local market and application trends, and emerging technology solutions. Highlights include sessions on PV markets, climate change, public policy, finance, and key India PV applications and projects. Confirmed speakers represents all elements of the developing ecosystem in India, including CEOs from the top cell and module manufacturers, regional and national government leaders, local energy leaders, and international business leaders from finance and technology. The exposition will include companies comprising all sectors of the India supply chain. More about the conference and exposition can be found at www.solarconindia.org

Five years ago, few people would have predicted that Germany would become the world’s leading market for solar power, or their success in creating a successful global PV industry. With India’s vast financial, human capital and government resources— coupled with their rural development needs and bright sunshine---it shouldn’t surprise many that India will join the world’s leaders in PV market development and demand in the years ahead. Like many of the people and companies you saw at those small emerging trade shows in Germany earlier this decade, the people you see at next month’s SOLARCON India will be tomorrow’s industry’s leaders. You should be one of them. Join us and watch the beginning of something that’s going to be really big.