18-05-2012, 04:27 PM
Contemporary scenario and emerging trends
ISA_SolarPVReport_May2010.pdf (Size: 2.25 MB / Downloads: 73)
Global scenario of solar PV industry
The total global production of solar PV modules during the year
2008 is estimated at 7.3 GW1, which is 80% higher than production
during 2007. China (2.3 GW), Europe (1.9 GW) and Japan (1.2 GW)
contributed the most to solar PV production for year 2008, while
for installations, Spain (2.7 GW) and Germany (1.9 GW) accounted
for 76% during the same period. Other emerging nations for solar
PV installation include USA (342 MW) and South Korea (282 MW)1.
Massive capacity expansion plans are underway and the planned
capacity expansions are way above the projected market growth,
which means that the capacity utilization rate will reduce,
transforming this market from demand driven to oversupplied
market. Such a development will increase pressure on the margins
of the manufacturers and could accelerate consolidation of the
solar PV industry.
Status of PV industry in India
According to the Annual Report of MNRE (2008-09), there are about 15 players in cell
manufacturing, over 20 players in modules and more than 50 in solar assembly. As in
India, global trends, crystalline silicon technology accounts for most of the market and the
share of Thin Film technology is estimated at about 10%2. Currently, India does not have
any infrastructure for raw material production (polysilicon) and is entirely dependent on
imports for the same. In the last few years, the industry has faced many issues relating
to the availability and fluctuating prices of the raw materials. The scenario is expected
to change with polysilicon production projects being granted in-principle approval by
Department of Information Technology (DIT), Ministry of Communication & Information
Technology (MCIT) under the SIPS scheme.
Relevance of solar PV in India
India has a cumulative power generation capacity of 152 GW4
and faces a deficit of 11% in overall demand and 12% in peak
demand5. With an expanding economy, the demand for power is
growing at about 6% every year and the peak load is expected to
reach 176 GW by 2012 and cross 778 GW by 2031-32.
The Indian power sector is highly dependent on coal as fuel. 53%6
of the total installed capacity is based on coal based generation.
With the current scenario, coal consumption for power sector is
likely to reach the level of 173 million MT by 2012. As per the
Ministry of Coal, the existing coal reserves estimates will last for
another 40-45 years.
Government initiatives to promote solar PV
Currently, over 60 countries have policies in place to promote renewable power
generation. Feed-in tariff has been introduced by about 45 countries and has emerged
as the most popular tool for countries to offer financial assistance to power producers.
Earlier, though the policies were focused more on hydro, wind and biomass based power
projects, in the last 2-3 years; solar has gained importance across many nations. In
Europe, Bulgaria increased the feed-in period from 12 to 25 years for solar PV. Spain
reduced tariffs for solar PV because its 2010 target was already achieved; set 10%
annual tariffs reductions; and instituted a 500 MW solar PV capacity cap for both 2009
and 2010.