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LATEST NEWS UPDATES | Seeking sun and wind power -Sujay Mehdudia

Seeking sun and wind power -Sujay Mehdudia

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published Published on Dec 16, 2012   modified Modified on Dec 16, 2012
-The Hindu

India’s investment in renewable energy was $10.4 billion in 2011

India is among the fastest growing economies in the area of renewable energy. Global players have either set up shop or are poised to enter the renewable energy area, spurred by the Jawaharlal Nehru National Solar Mission in the 11th Plan. The Government is getting ready to launch the second phase of this mission in the Twelfth Plan.

According to Ernst & Young study, India’s investment in renewable energy totalled $10.4 billion in 2011, growing 54 per cent over 2010 — the second fastest among G-20 countries. The wind energy sector attracted $4.6 billion in 2011, adding 2.8 GW of capacity. Wind attracted 67 per cent of venture capital or private equity funding and 98 per cent of all new build asset finance, raised in year-to-date in India, across all forms of renewables. It is estimated that with Generation Based Incentive Scheme and Renewable Energy Certificates being the next wave of reforms, it is likely to transform wind energy in India. However, E&Y said that repeal of the Accelerated Depreciation tax break will have an adverse impact on investment.

The study states that power evacuation infrastructure has not kept pace with the development of wind. Tamil Nadu provides an example of a state where many plants are unable to evacuate the energy because of lack of infrastructure. With over 16 GW installed capacity, wind accounts for nearly 66 per cent of the renewable energy installed in India. The States of Tamil Nadu, Maharashtra and Gujarat are leaders; the total potential is around 46 to 70 GW. The Ministry of New and Renewable Energy has envisaged that wind will constitute 70 per cent of overall renewable energy capacity translating to 2-3 GW of new capacity per year till 2020.

Solar is currently high on absolute costs compared to other conventional sources of power such as coal. The objective of the Solar Mission is to create conditions, through rapid scale-up of capacity and technological innovation to drive down costs towards grid parity. The Mission anticipates achieving grid parity by 2022 and parity with coal-based thermal power by 2030, but recognises that this cost trajectory will depend upon the scale of global deployment and technology development and transfer. The cost projections vary — from 22 per cent for every doubling of capacity to a reduction of only 60 per cent with global deployment increasing 16 times the current level. India is endowed with vast solar energy potential. About 5,000 trillion kWh per year energy is incident over India’s land area with most parts receiving 4-7 kWh per sq m per day. Hence both technology routes for conversion of solar radiation into heat and electricity, namely, solar thermal and solar photovoltaic’s, can effectively be harnessed providing huge scalability for solar in India.

Theoretically, a small fraction of the total incident solar energy, captured effectively, can meet the country’s power requirements.

The objective of the National Solar Mission is to establish India as a global leader in solar energy, by creating the policy conditions for its diffusion across the country. The Mission adopts a 3-phase approach, spanning the 11th Plan and first year of the 12th Plan (up to 2012-13) as Phase 1, the remaining 4 years of the 12th Plan (2013-17) as Phase 2 and the 13th Plan (2017-22) as Phase 3. At the end of each plan, and mid-term during the 12th and 13th Plans, there will be an evaluation of progress, review of capacity and targets for subsequent phases, based on emerging cost and technology trends, both domestic and global.

The policy aims at deploying 20,000 MW of solar power by 2022. To ramp up capacity of grid-connected solar power generation to 1,000 MW within three years — by 2013; an additional 3000 MW by 2017 through the mandatory use of the renewable purchase obligation by utilities backed with a preferential tariff. This capacity can be more than doubled – reaching 10,000MW installed power by 2017 or more, based on the enhanced and enabled international finance and technology transfer.

India is among the fastest growing economies in the area of renewable energy

Global players have either set up shop or are poised to so, spurred by 11th Plan solar mission

The Hindu, 16 December, 2012, http://www.thehindu.com/todays-paper/tp-national/seeking-sun-and-wind-power/article4205390.ece


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