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Raising the Demand for Solar Narasimhan Santhanam, Director, Energy Alternatives India www.eai.in
Raising the Demand for Solar
Narasimhan Santhanam, Director,
Energy Alternatives India
www.eai.in
Solar Power…
• Smells and tastes no different from coal-based/natural gas power
• Is available no better than wind-based power
• Is not a baseload source as hydro power
www.eai.in
Why?
BECAUSE ITS POTENTIAL AS A FUTURE
RENEWABLE ENERGY SOURCE IS
IMMENSE
www.eai.in
But…
How does one create demand for a
commodity that costs four times the
price at which it is available
elsewhere?
www.eai.in
About EAI
• Leading Indian renewable energy business intelligence, market strategy consulting firm
• All primary renewable energy sectors – solar, wind, bio-fuels/biomass, waste-to-energy, small hydro
• Market research, entry and diversification strategy, economic, financial modeling and pre-feasibility analysis
• Professionals from IITs and IIMs, with renewable energy, industry research and economics backgrounds
• Based out of Chennai, India
• More at www.eai.in www.eai.in
1Let Go of Grid Solar PV Fixation
“A man with only a hammer sees every problem as a nail” – Abraham Maslow
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Not Just Grid Connected, but also Off-grid
– Industrial rooftops
– Domestic rooftops
– Small community micro-grid power plants for rural areas
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Not Just PV, but also Thermal
– CSP (solar thermal) has higher efficiency than PV (21% vs. 17%)
– CSP has higher chances of becoming baseload compatible in future
– Storing heat is less costly than storing electricity (using batteries could increase cost by over 75%)
– Use of thermal for heating and drying purposes is efficient (less losses as no conversion)
www.eai.in
Plethora of Solar Product Possibilities
• Solar Cookers International has rated India as the #1 country in the world in terms of solar cooking potential; estimated potential demand of 10 million solar cookers in this country
• India has less than 2 million solar water heaters. China has 25 million!
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Plethora of Solar Product Possibilities
Consumer Products Commercial/Industrial ProductsSolar Water HeatersHome Lighting, Street Light, Outdoor LightingSolar LanternsSolar Power PacksSolar Submersible PumpsSolar Pool CoversSolar Pool HeatersSolar CookersSolar FencingSolar RadioSolar CandlesSolar Exhaust FansExotica - Solar Powered Bags
Absorption ChillersBoilersSolar Thermal DesalinationSolar Water PumpsSolar DryersSolar based Electric FencesSolar LED Signalssolar LED Road StudsExotica - Solar Panels on Sound Barriers on Roads
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2Take Solar Where Really Needed
“Stop selling. Start helping” - Zig Ziglar
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Take Solar to Unelectrified Villages
– Over 60,000 villages have no grid power
– TERI’s Lighting a Billion Lives (LaBL)
– SELCO’s success– Innovative processes - Hybrid of
biomass and solar?– Innovative financial schemes
www.eai.in
Tale Solar to Areas with Long Power Cuts
• India’s peak power shortages are expected to worsen from:– 17% peak deficit in 2009 (23 GW
gap), to– 25% peak deficit in 2015 (over 60
GW shortfall)
• Power disruptions cost over Rs 25,000 crores per year
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3Position Solar diFFeRently
“I took a child’s scribbling and sold it as abstract art” – Groucho Marx (att.)
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Position It against the Right Fuel(“Diesel Substitute”)
• Let solar PV be compared to diesel generated power; Economics almost the same, perhaps even better with govt subsidies
• Over 250,000 cell phone towers, consume about 2 billion litres of diesel per year. Move to solar will result in a reduction of 5 million tons of CO2 emissions and savings of US $1.4 billion in operating expenses.
• Irrigation Pumps - Promote micro-irrigation– 21 million irrigation pumps in India– 9 million run on diesel
• Areas like Andamans almost fully running on diesel power
• Diesel prices will continue increasing while solar prices will continue decreasing www.eai.in
Position It as a Safer Fuel(“Healthy”)
• Over 80 million families in India use kerosene as a fuel
• Results in acute respiratory infections: influenza and pneumonia• 2.5 million people suffer severe burns
each year primarily from upturned lamps• Solar/LED provides far better white light
than kerosene lamps, resulting in less eye strain
www.eai.in
Position It as the Anywhere Fuel(“Freedom”)
• Let it not be called solar electricity; let it be seen as “powering you anywhere”
– You cannot take the grid with you while on a mountain hike
–Mobile applications – phones, camping and related travel
– Using it where it is application specific – local refrigeration for preserving milk
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Position It as a Corporate Statement(“Responsibility”)
– Companies keen on making green statements out of both genuine concern and for branding• Infosys has a CSR budget of Rs 20
Crores
– Facilitate such adoption by providing customized solutions and benefits• Awards and recognition
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4Provide External Stimuli
“Governments should act when markets can’t” - Anon
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Stimuli Using Incentives
• Incentives– REC– CER– F-I-T– CDM– Net Metering– Other Financial Incentives
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Stimuli through Regulations
• Mandates such as the RPOs/SPOs• “Increase” the prices of
substitutes• Carbon tax• Reduce subsidies for fossil fuels and
provide it for solar# of households using kerosene 7.6 crores
Total kerosene used per year 3.6 billion liters
Savings to govt from subsidy avoidance per household per year
Rs 1200
Cost of a solar PV solution per BPL household / cost per year with 15 years lifetime
Rs 20,000 / Approx Rs 1300
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5Invent the Future
"The best way to predict the future is to invent it." - Alan Kay
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Technology Innovations
Adapt Pure Tech Innovations Innovate on Indianized Solutions
Cell efficiency increases India-specific applications
Storage breakthroughs India-specific products
Thin film innovations India-specific adoption
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Financing Innovations• Microfinance
– SKS Microfinance, India's largest MFI, offers solar lamps to its 5 million customers
– SELCO works with many microfinance institutions
• “Softer” Loans– Already available for a range of consumer
solar products (at interest rates 5% and below)
– Capital subsidies available along with soft loans
• Public-private Partnerships www.eai.in
Raising the Demand for Solar
1. Let Go of Grid Solar PV Fixation2. Take Solar Where Really
Needed3. Position Solar Differently4. Provide External Stimuli5. Invent the Future
www.eai.in
“The significant problems that we face
today cannot be solved with the
same mentality that created them”Albert Einstein
www.eai.in
Let There be Sun!
Narasimhan Santhanam, Director, Energy Alternatives [email protected], Mob: +91-98413-48117
www.eai.in
www.eai.in
