India Wants 20GW of Solar Power by 2020

By Ucilia Wang

Solar company executives have often talked about India as a potentially huge market. Now they can count on the government's help to make that a reality.

The Indian government has greenlighted its first national solar power program that aims to see 20 gigawatts of solar energy generation capacity by 2020, the Reuters reported. The program comes with a $19 billion budget, money that would subsidize manufacturing and power project building, as well as research and development.

That's an ambitious goal for India, which added about 25 megawatts of generation capacity in 2008, according to GTM Research. From 2001 to 2008, the country had erected 143 megawatts of solar energy systems.

India's plan calls to mind a similar initiative by neighboring China, which recently selected 462 megawatts of projects for its Golden Sun program, which would subsidize at least half of the installation costs. China is looking at reaching 10 gigawatts of solar energy generation capacity by 2010.

India's plan is bigger, but realizing it could be a lot tougher.

For one, India doesn't have the same booming solar manufacturing sector that China enjoys. China is home to some of the largest producers of solar panels in the world, such as Suntech Power and Yingli Green Energy. In fact, Suntech plans to increase its production capacity to 1.4 gigawatts by the middle of 2010, the company said this week.

The vast majority of solar energy equipment from China goes overseas to Europe and North America. China's solar initiative would create a huge market for its domestic manufacturers.

More Indian companies are entering the market. Moser Baer, the giant optical media storage maker, has invested in the production of both crystalline silicon and amorphous silicon solar panels. Back in early 2008, the company discussed investing $1.5 billion to boost its amorphous silicon solar panel production to 565 megawatts by 2009.

But the recession forced Moser Baer to halt manufacturing of crystalline silicon panels altogether until August this year, the company said. Two months ago, Moser Baer said it won a contract to build a 1-megawatt solar farm in India using its amorphous silicon solar panels.

Lat month, KSK Surya Photovoltaic Venture said it would spend $500 million to buy land and build a factory in Hyderabad that would use factory equipment from Applied Materials to make amorphous silicon solar panels.

India could also be a large market for solar thermal power developers. Executives from German and American companies such as Solar Millennium and BrightSource Energy have pegged India as a desirable location to erect fields of mirrors to concentrate the sunlight to heat fluids and produce steam, which is then piped to a generator for electricity production.

eSolar, based in Pasadena, Calif., meanwhile, has licensed its solar thermal power technology to Acme Group. Acme plans to build solar farms in India.

Comments

[Ferdinand E. Banks]

I see a lot these days about India's big solar plans. Maybe they make sense...for that country, and will help to lift the standard of living of the broad masses. In this country - Sweden - there are many important people who also want to heavily exploit sun and wind. If they got their way - which fortunately they won't - it would be an economic disaster

2009 Nov 22 09:47 AM

[Road Runner]

I don't have much faith in India to accomplish this goal of 20 GW by 2020. But, I have good faith in China to reach its goal of 10GW by 2020. Actually, I see China always having a larger installed base of solar even though India has bigger goals. China has the strong-arm government, the solar manufacturing capacity, and the deep pockets to accomplish such a goal. India is a highly corrupt and bureaucratic country with a weak government. I see big plans like this getting bogged down while every corrupt official tries to get a piece of the pie.

As you can tell, I don't think much of India. I know multiple Indians here in the US. They have plenty of stories of just how corrupt India is. I just heard one last week about how a relative's land was just seized by a powerful person. The relative was unable to get the land back. I know China has corruption problems, but not on the scale of India. I believe that India is growing mainly because people speak English, not because of an overall ambitious drive like in China.

2009 Nov 22 09:50 PM

[sdfsdf]

India is a democracy and one of the oldest functional society on Earth. It is far diverse country that you can ever imagine. While all of your points are valid I do not think that creativity and innovation can thrive under strong-arm governments. China is good at one thing and that is copy. I also believe that in short run china will get there much faster then India but India will also do great things as far as investment goes there is room for both at least for now. By the way if you do not know When British left India they predicted that it will be a failed states in 2 decades and Pakistan will succeeded and thrive as country.

On Nov 22 09:50 PM Road Runner wrote:

> I don't have much faith in India to accomplish this goal of 20 GW
> by 2020. But, I have good faith in China to reach its goal of 10GW
> by 2020. Actually, I see China always having a larger installed
> base of solar even though India has bigger goals. China has the
> strong-arm government, the solar manufacturing capacity, and the
> deep pockets to accomplish such a goal. India is a highly corrupt
> and bureaucratic country with a weak government. I see big plans
> like this getting bogged down while every corrupt official tries
> to get a piece of the pie.
>
> As you can tell, I don't think much of India. I know multiple Indians
> here in the US. They have plenty of stories of just how corrupt
> India is. I just heard one last week about how a relative's land
> was just seized by a powerful person. The relative was unable to
> get the land back. I know China has corruption problems, but not
> on the scale of India. I believe that India is growing mainly because
> people speak English, not because of an overall ambitious drive like
> in China.

2009 Nov 22 10:25 PM

[nakedjaybird]

Ferd - If nations would build wind and solar farms to garner a future for their nations, great. That would be something like building dams and interstate highways, and toll roads. And that is the key: have the Gov't build it, and get the payback from the folks using the power. Remember, the actual energy cost (fuel cost, or BTU or KWH to generate is ZERO). And with a very small operating and maintenace burden, the return could be very significant. And when the capital is paid off, free energy period. That's better than sending our DEBT offshore or printing money with no return. As for the competition, well, they buried this long enough and have earned the consequenses.

2009 Nov 23 12:31 PM

[nakedjaybird]

PS - or the competition could plead guilty, repent, and help become part of the solution. But in all cases, it has to be with a motive for the good of the people instead of the padding of the pockets at the top, EVERYWHERE, INCLUDING THE BRIBERS AND BRIBIEES.

2009 Nov 23 12:36 PM

[SOLAR SARMA]

India's 20GW solar mission can be successfully achieved by meeting the following fundamental criteria.

1.Focus must be on off-grid systems of small size(say from Watts-kiloWatts) so as they can be maintained at local level and India is mostly rural where literacy levels and skilled manpower availability is limited
2.Focus on MW power plants can be on micro grid based to avoid transmission and distribution losses as we see even in wind power plants
3.Proper regulatory mechanisms, availability of affordable credit are vital factors to make this mission achievable
4.Banks and FIs must be actively involved as UNEP solar PV loan scheme had been a grand success and this is because is India consists Rural, Semi Urban and Urban Demographics and all these segments need to be addressed with separate focus and approach
5.Subsidies if any to be credited to customer's / end user's bank account directly in case of a successfully running programme of interest subsidy soft loan scheme for solar water heaters, wherein MNRE directly credits interest to customer's bank account and this is to avoid bottlenecks of going through state nodal agencies/MNRE and this route is very notorious and bad service or bad quality of components due to poor vendor selection criteria of such agencies can challenge this mission's success

2009 Nov 23 03:07 PM

[nakedjaybird]

PPSS - and spending money on a national energy supply would be lightyears ahead of a national healthcare program, in many ways, including being profitable. Of course, it should be regulated like the municipal power companys used to be regualated: by the people. With limits on staffing, pay, and cost containment - and most of all, do only what they are supposed to do - provide energy to the folks. DUH!!!!!!

2009 Nov 23 06:49 PM

[Amara]

Hi,

Do you know any online/any material which describes obtaining loan for solar project in India. I am basically looking for info what interest rate government is lending for this king of projects. What are the banks participating in this program.

Any info could be very helpful.

Thanks,
Amara.


On Nov 23 03:07 PM User 514948 wrote:

> India's 20GW solar mission can be successfully achieved by meeting
> the following fundamental criteria.
>
> 1.Focus must be on off-grid systems of small size(say from Watts-kiloWatts)
> so as they can be maintained at local level and India is mostly rural
> where literacy levels and skilled manpower availability is limited
>
> 2.Focus on MW power plants can be on micro grid based to avoid transmission
> and distribution losses as we see even in wind power plants
> 3.Proper regulatory mechanisms, availability of affordable credit
> are vital factors to make this mission achievable
> 4.Banks and FIs must be actively involved as UNEP solar PV loan scheme
> had been a grand success and this is because is India consists Rural,
> Semi Urban and Urban Demographics and all these segments need to
> be addressed with separate focus and approach
> 5.Subsidies if any to be credited to customer's / end user's bank
> account directly in case of a successfully running programme of interest
> subsidy soft loan scheme for solar water heaters, wherein MNRE directly
> credits interest to customer's bank account and this is to avoid
> bottlenecks of going through state nodal agencies/MNRE and this route
> is very notorious and bad service or bad quality of components due
> to poor vendor selection criteria of such agencies can challenge
> this mission's success

2009 Dec 09 01:14 AM

[SOLAR SARMA]

IREDA-Indian Renewable Energy Development Agency Ltd is a pioneering financial institution to lend for renewable energy projects in India.

Following is the weblink of IEDA Ltd.

ireda.in

Following is the link to download RENEWABLE ENERGY AND ENERGY EFFICIENCY FINANCING GUIDELINES FINANCING NORMS & INTEREST RATE POLICY ON PROVIDING ASSISTANCE

www.ireda.in/pdf/Part%...

For more help/support/advice please contact at 00919246475056 or email to [e-mail]

2009 Dec 24 01:10 AM