16-03-2012, 04:57 PM
Solar Energy: India’s Energy Needs
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Developing countries, in particular, face situations of limited energy resources, especially the provision of electricity in rural areas, and there is an urgent need to address this constraint to social and economic development. India faces a significant gap between electricity demand and supply. Demand is increasing at a very rapid rate compared to the supply. According to the World Bank, roughly 40 percent of residences in India are without electricity. In addition, blackouts are a common occurrence throughout the country’s main cities. The World Bank also reports that one-third of Indian businesses believe that unreliable electricity is one of their primary impediments to doing business. In addition, coal shortages are further straining power generation capabilities.
Why Solar Energy?
Fig. Global Solar Radiant Exposure over the Year.
From the above fig, it is clear that India has high solar incidence throughout the year.
It can be seen from Fig that Rajasthan, Gujarat, west Madhya Pradesh and north Maharashtra receive more than 3000 to 3200 hours of bright sunshine in a year. Over 2600 to 2800 hours of bright sunshine are available over the rest of the country, except Kerala, the north-eastern states, and Jammu and Kashmir where they are appreciably lower.
During monsoon (June – August), a significant decrease in sunshine occurs over the whole country except Jammu and Kashmir where the maximum duration of sunshine occurs in June and July, and minimum in January due to its location. The north-eastern states and south-east peninsula also receive relatively less sunshine during October and November due to the north-east monsoons. As far as the availability of global solar radiation is concerned, more than 2000 kWh/m2-year are received over Rajasthan and Gujarat, while east Bihar, North West Bengal and the north-eastern states receive less than 1700 kWh/m2-year. The availability of diffuse solar radiation varies widely in the country. The annual pattern shows a minimum of 740 kWh/m2-year over Rajasthan increasing eastwards to 840 kWh/m2-year in the north-eastern states, and south wards to 920 kWh/m2-year.
Limitations:
1. The companies may find it tough to sell solar energy in the domestic market as the cost of producing solar energy is high. The cost of production ranges from Rs 15 to Rs 30 per unit compared to around Rs 2 to Rs 6 per unit for thermal energy.
2. The energy collected by 1 m square of a solar collector in a day is approximately equal to that released by burning 1 kg of coal or 1/2 litres of kerosene. Thus, large areas are needed for collection. Besides, the efficiency of conversion of solar energy to useful energy is low.
3. The serious fall in global demand for PV modules, and the rapid expansion of the more than 400 module manufacturers worldwide, is putting module prices under pressure. Oversupply, coupled with the global financial crisis, is hitting the solar industry hard.
4. Banks are highly hesitant to finance new projects and developers are waiting for better returns in a climate of decreasing module prices. On top of that comes the worsened dollar-euro ratio. The result is that exports to Europe will collapse.
5. At the same time, their current investments in capacity expansion require high levels of cash. In maintaining their cash flow, they will encounter fierce competition with all the Chinese companies also desperate for cash flow. With only a tiny domestic market, around 2.5 MW in 2008, the Indian PV industry is in a dangerous position. It needs the funds for expansion, but lacks sufficient sales to Europe in a market climate of rapidly decreasing prices.
Conclusion:
The country should support its solar energy cell industry, as the climate is conducive, there is a high dependence on foreign oil, and there is an opportunity for innovation in the solar cell process and very high domestic demand with relatively low capital requirements. Another possible solution to develop the Indian solar market is to set up, or stimulate, new solar funds to guarantee project financing.