As the world broadens its portfolio of power options to meet growing energy demands and increasingly stringent environmental concerns, solar power is emerging as an attractive option.
Of all the routes for conversion of solar into useful energy, direct conversion of sunlight to electricity through solar photovoltaic technology is well accepted.
Solar photovoltaic has been recognized as an important route for generation of substantial quantities of grid quality power by utilizing the light energy of solar radiation.
As the Solar PV system costs decrease, the geographies with higher solar radiation and high price of electricity will achieve grid parity at the earliest.
In India Solar PV has already reached grid parity with today’s system costs
The average per capita consumption of energy in India is around 612 kW, which is much lower than that of the developed countries like USA, Europe, Australia, Japan etc. However, this figure is expected to rise sharply due to high economic growth and rapid industrialization.
Energy is a necessity and sustainable renewable energy is a vital link in industrialization and development of India.
A transition from conventional energy systems to those based on renewable resources is necessary to meet the ever increasing demand for energy and to address environmental concerns.
Thus, the present scenario needs for addition of major renewable energy sources of energy for overall economic development of the country like India
Indian Government’s Initiative
The Indian government has set ambitious goals in the 11th plan for power sector owing to which the power sector is poised for significant expansion. It has been estimated that need-based capacity addition of more than 100,000 MW would be required.
This has resulted in massive addition plans being proposed in the sub-sectors of Generation Transmission and Distribution.
Opportunity under National Solar Mission (JNNSM)
As part of National Action Plan on climate change, Indian Government has announced plans to install 20GW of solar generation capacity.
Under Jawaharlal Nehru National Solar Mission (JNNSM) policy targets are set to create an enabling policy framework for the deployment of 20,000 MW of solar power by 2022. This will be achieved in 3 phases.
As discussed, the objective of the Jawaharlal Nehru National Solar Mission (JNNSM) under the brand ‘Solar India’ is to establish India as a global leader in solar energy, by creating the policy conditions for its diffusion across the country as quickly as possible.
The Mission stipulates implementation and achievement of the target in 3 phases (first phase up to 2012-13, second phase from 2013 to 2017 and third phase from 2017 to 2022) for various components including Utility grid solar power.
Opportunity under State Policies
Many states are coming out with their own solar policy which is in addition to the National policy. The leading states are Gujarat, Rajasthan, Tamil Nadu, Karnataka and Andhra Pradesh, which receive high amounts of solar radiation and have huge amounts of wastelands and desert areas.
Andhra Pradesh State Government has announced its Solar Energy Policy-2012 on 26th September 2012. Solar Power developers are encouraged to invest in Andhra Pradesh and the policy is very conducive and attractive for them.
Now that Andhra Pradesh is divided, both Telangana and Andhra Pradesh have acute shortage of power and will be relying heavily on Solar power to bridge the gap between demand and supply
Andhra Pradesh has issued an open solar bid for procuring electricity at ₹ 6.49 per KWH(Unit) from Solar developers who are interested in setting up solar plants in AP
Opportunity under REC Mechanism
A Renewable Energy Certificate (REC) is a market-based instrument to endorse that a generator has produced a certain amount of electricity from a Renewable Energy resource.
Electricity produced from renewable energy sources have two distinct aspects – the electricity component and the environmental attribute of the electricity produced from a renewable energy source.
An REC relates to this second component, the environmental attribute of the Renewable Energy. RECs can be purchased from the market to meet Renewable Purchase Obligations (RPO).
According to Central Electricity Regulatory Commission(CREC), Any power generating company involved in electricity generation from renewable sources of energy will be eligible to get REC for their each 1 MWh (1000 units) of generation
Ongoing price of each REC is ₹ 9,300, you could check the latest REC trading data at Indian Energy Exchange