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72% of our population lives in rural India.

80,000 villages still remain unelectrified.

35% of our population still remains illiterate.

127th rank out of 162 nations in UNs HDI

Rural telecom, rural banking, irrigation pumpscontinue to falter due to lack of stable power.

India imports about 3/4th of our crude oil, andthe country's oil bill accounts for 37% of totalvalue of all imports. ($ 83 billion in 2007-08)

India Facts & Figures

India lives in her villages~ Mahatma Gandhi

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WHY GO SOLAR

ENERGY SECURITY:

Average Power Demand- Supply gap of 12%, peak gap of 16.7%!!

Rate of economic growth is 9% p.a.while power sector growth is 5-6%.

This, when 412 million Indians have NO access to electricity.

India needs to tap ALL possible sources of power thermal, hydro,

nuclear as well as renewable solar, wind, bio.

India imports 78% of oil requirement. Will rise to 90% by 2030.

Dependence on Persian Gulf.

53% of power produced from coal, which will not last beyond 2040/50

Nuclear will play a marginal role. (10% of total by 2030)

Renewable Energy, Energy Efficiency and Conservation are key.

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WHY GO SOLAR

INDIA UNIQUELY PLACED TO TAP SOLAR (84 N 37 6 N)

SOLAR IS CLEAN & GREEN: No GHGs. A kilowatt solar plant can

reduce carbon emission by 1 tonne: Helps Fight Global Warming and

Climate Change

FREE & FOREVER

SUSTAINABLE & ABUNDANTLY AVAILABLE:300 clear sunny days

in a year equivalent of 5000 trillion kWh/year

MODULAR AND SCALABLE: From Lanterns to MW-size plants

DEMOCRATIC: DECENTRALISED DISTRIBUTED GENERATION

ECONOMICALLY EFFICIENT: NO OR LOW MAINTENANCE COST

NOT DEPENDENT ON GEOGRAPHY OR SCALE, NO R & R ISSUES

http://images.google.co.in/imgres?imgurl=astrosun.tn.cornell.edu/courses/a102/Images/sun.gif&imgrefurl=http://astrosun.tn.cornell.edu/courses/a102/&h=1006&w=1018&sz=789&tbnid=Nb1k8J9Miy8J:&tbnh=147&tbnw=148&prev=/images%3Fq%3Dsun%26start%3D60%26hl%3Den%26lr%3D%26ie%3DUTF-8%26oe%3DUTF-8%26sa%3DN

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Introducing: Solar Power

Sun is a massive source of heat and light.

India receives abundant solar radiation.

Two distinct solar technologies:

Solar Thermal SystemsSolar Photo-Voltaic (SPV)

Converts sunlight into electricity.

Silicon based technology.

Electricity can be used to power

lights, fans, PC, TV etc

The SPV panels are known as

SOLAR PV MODULES

Technology to heat water or air.

Black body absorption.

Copper or evacuated glass tubes .

Cost effective solution.

Water heating panels are

SOLAR COLLECTOR

http://images.google.co.in/imgres?imgurl=astrosun.tn.cornell.edu/courses/a102/Images/sun.gif&imgrefurl=http://astrosun.tn.cornell.edu/courses/a102/&h=1006&w=1018&sz=789&tbnid=Nb1k8J9Miy8J:&tbnh=147&tbnw=148&prev=/images%3Fq%3Dsun%26start%3D60%26hl%3Den%26lr%3D%26ie%3DUTF-8%26oe%3DUTF-8%26sa%3DN

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Typical PV system components

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Hybrid System

Solar PV Array

Battery Bank

Array JunctionBox

Power ConditioningUnit

LOADS

AC

DistributionBoard

WindGenerator

Wind ChargeController

Main JunctionBox

DG SET

Grid

The Solar PV system can operatealong with other sources like WindGenerator, Diesel Generator andGrid to power the loads.

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Significant Projects

Note: A 100kWp system generates 130,000 Units/year and occupies a flat area of 1000 sqm on ground.

100 kWp Roof top SPV Grid Connect

System on Vidhana Soudha, Bangalore

(2005)

2 X 33 kWp SPV Standalone

system for giant telescopesin the Himalayas (2004)

200 kWp SPV Power Plant for PEDA

at Nawansheher District, Punjab (2002)

110 kWp SPV Power Plant for

Tata Electric at Walwhan DamLonavala (1996)

Building Integrated PV

Pune, India (90 kWp) (2006)

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EMPOWERING RURAL INDIA

THROUGH THE POWER OF THE

SUN

http://www.thsassociates.net/flash_files/KauaiSunsetFlash.htmhttp://www.thsassociates.net/flash_files/KauaiSunsetFlash.htm

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Medium and large power systems: UPS type AC-Solar Hybrid system

Solar Preference Hybrid system

Stand alone solar systems

Power conditioning units

Microcontroller based Mosfet /IGBT based system

MPPT Solar Charger

True sinewave inverter with activewaveform correction with good

dynamic response Grid-Charging & Grid-Export

D.G. Set activation

Computer interface option

Data logger in large system

Andaman Nicobar Islands

Ladhak

Medium and large Power Packs ...

FOR REMOTE VILLAGE ELECTRIFICATION

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Rural Electrification.

Issue: 80,000 villages still need remain un-electrified.Quality power not available

Needs Solutions

Urban/Semi urban backup

power

Rural Electrification

Small power packs

UPS for powering computers in rural

banks etc

Mini Solar Power Plants

giving AC power for localdistribution grid.

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Solar PV An attractive option for Rural AreasElectrification

Uneconomical to extend the grid to villages located in remote areas/sparsely populated areas

ACTIONS NEEDED: Prioritise areas suitable for solar energy programmes

Remote and difficult areas Mainstream villages

Government to play the role of a facilitator through appropriateguidelines and standards

Provide information support and awareness to villagers

Provide micro-finance through regional rural banks & NBFCs Promote post-sale service as an employment / income generatingopportunity for the local population

Promote phase-wise implementation depending on the need

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Global PV Market

World Photovoltaics Market in 2007

2826 Megawatts

Germany

47%

Spain

23%

Rest of World

8%

Japan8%

USA

8%

Rest of Europe

6%

Germany

Spain

Japan

USA

Rest of Europe

Rest of World

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INDIAN SOLAR SECTOR

LATEST DEVELOPMENTS

India has to add 14000 MW from Renewables during XI Plan (2007-12)

PMs National Action PlanOn Climate Change:

National Mission onSolar energy

Grid -connect Policy ofIndian Govt for

Solar Power

SIPS: To promoteSemi-conductor fabs

Investment proposalsFor Rs. 136,000 crore

Recd.

Silicon Wafersand cells mfg.

Rising public awareness:

Crude touching $147/brlGlobal WarmingClimate ChangeUptake of R E

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National Solar Mission

Leadership Vision, Mission and Goal

To be a Global leader in Solar Electricity 10,000 MW by 2020

Impacting Carbon displacement, job creation, Grid parity before 2020

Electricity to all village households

Set up global scale testing, certification & technology expertise

Extend FIT till 2017

Upgrade grid

Progressive measures Carbon tax, higher charges to polluters

New fossil fuel generation project to include minimum 5% solar generation

IT benefits (100% depreciation) and preferred loans to house holds

Replace diesel pumps and kerosene lamps by Solar through incentives

Priority Sector Lending

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Solar Power: Success factors and keychallenges

Key challenges

Tariff levels that are attractive to investors

Overcoming natural utility reluctance to distributedgeneration

Procurement of large land tracts in high solarinsolation areas for grid connected solar plants

Current levels of fuel subsidy that solar powercompetes against eg Kerosene subsidy. (Rs.40/litre)

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Solar Power: Success factors and keychallenges

Success factors Policy that helps drive scale to reduce cost and create

delivery capacity.

Feed in Tariffs are most successful policy measures for

attracting capacity growth critical factors have beenattracting private investment funds e.g. Germany

Building standards for new construction that mandatesdistributed generation and energy efficiency help driveinnovation e.g. Korea and France.

Policy that recognizes solar as an economic alternativeto kerosene lighting or diesel generation andencourages changes of behavior.

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Enablers for widespreaddeployment of solar electricity

Financia

l

Incentiv

es

RegulatoryPractices

Commun.&Info.Technoloy

SupplyC

hain

&Logis

tics

A

Market

Excitement

Localparticipa

tion

1

4

2

3

5

6

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Policy Support

Solar energy - To be seen as a solution to Indias energy security

Concept of Solar Nation through Creation of Solar Fund to incentivise SolarInvestment.

Mandate all new corporate and commercial buildings with connected load >500 kW to install solar power generation of at least 5% of their requirements.

Create Model Townships of MW scale 1 per state to start with

Provide single window clearance for land acquisition

Introduce wheeling and banking for solar energy to promote large plants andencourage captive usage

Incentivise and reward industrial users to adopt solar energy by way of taxexemption, depreciation etc

Encourage R&D and domestic technology development

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Various PV technologies

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Indias Solar potential amongst highest in the world

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Various approaches to generate and stimulate Solar demand

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Various approaches to generate and stimulate Solar demand

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Possible mechanisms to scale up Solar

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Key Learnings

Policy stability

is an absolute

must

void market

distortions by

keeping the

support

continually

adjusting

Beneficiaries

must have a

stake in project

performance

Targeting

segments

to lower costs

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PV Subsidies A Key Enabler

Subsidies and Incentives increases PV market volumes

Increased demand drives manufacturing and trading

Has an impact to reduce PV total costs

Will lead to technology enhancements Examples of successful subsidy schemes Japan, Germany & Spain

Employment creation by PV industry

Provides Energy security to Nation

Reduces dependency on coal and oil imports

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Energy Solutions to eradicate Poverty

BIG SOLUTIONS

FOR BIG PROBLEMS

Energy Poverty is a big problem. Big problems require big solutions.

bundant availability of electricity in rural villages help increase

income and assets of rural households

PRIVTE SECTOR S ENGINE

FOR ENERGY SUPPLY

-Have the organization and financial resources to develop supply chain-re motivated to develop new markets at the base of the pyramid

-re partners in national development and wealth creation-Necessary that the efforts are shared-Have competitive business models to build on

OPPORTUNITIES FOR

BIG PLYERS

-Each player to engage with cluster of Panchayats / villages / states-There are multiple motivations to do-Can draw upon experience of global players in other countries

ND FOR EVOLUTION OF ESCOs Franchise style micro entrepreneurs in a good institutional set up

WHY THIS, WHY NOW?Energy equity is path to social equity. India lives in its village.

Indias prosperity can be guaranteed only through rural prosperity and

Widespread development

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4

6

8

10

12

14

16

18

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Year

Tariff(Rs/

Feed in Tariffs

Block of two years

2010 / 11 2012 / 13 2014 / 15 2016 / 17 2018 / 19 2020 / 21

Tariff (Rs / kWh) 16 16 12 10 7.5 6MW Added (Under policy) 400 1000 1000 1000 1000 1000

MW Added (Outsidepolicy)

- - - - 500 1000

Cumulative MW 400 1400 2400 3400 4900 6900

Tariff Support (Rs

Crores)*

1051 3679 5431 6745 7512 7950* Support after deducting normal tariff of Rs 3.50/kWh

Tariff

Disruptive technology advancements

Indigenisation

Materiality / Scale

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EU- INDIA COOPERATION IN

SOLAR SECTOR

EU-INDIA FLAGSHIP ProgOn SOLAR

Announced in 2007:

WHERE ARE WE?WHATS COOKING UP?

EC-INDIA DEVELOPMENTCOOPERATION:

STATE PARTNERSHIPWITH RAJASTHAN& CHHATTISGARH:ADD RURAL SOLARELECTRITIFICATION

EU MEMBER STATES DEVT& ECON COOP. (DFID, GTZSIDA, DANIDA ETC.) ORTHRU INDIAN/ EU NGOs:Adopt clusters of villages/

districts for solar lighting

FP 7: RESEARCH PROJECTSJOINT CALL FOR PROPOSALS

Transfer of TechnologyIPR issues

Financing: EIB

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JOINT WORK PROGRAMME,EU-INDIA CO-OPERATION ON ENERGY, CLEAN DEVELOPMENT

AND CLIMATE CHANGE

Work together to advance co-operation on achieving safe, secure, affordable andsustainable energy supplies under the auspices of the India-EU Energy Panel and itsWorking Groups.

Intensify discussions, information sharing and co-operation on coal and the full rangeof clean coal technologies in the EU-India Coal and Clean Coal TechnologiesWorking Groups.

Promote energy efficiency and energy conservation through the International

Partnership for Energy Efficiency Co-operation, complemented by bilateral activitiesas appropriate. Conclude negotiations on an agreement for co-operation in the field of Fusion Energy

Research. Facilitate networking of institutions for research & development in the field of

renewable energy. Identify joint priorities for future research co-operation under the EUs 7th Framework

Programme and seek to launch specific co-operation activities in selected fields ofresearch related to energy, environment and climate change including renewableenergy sources, such as solar, wind, biomass, waste-to-energy and research in CleanCoal Technologies (CCT).

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JOINT WORK PROGRAMME,EU-INDIA CO-OPERATION ON ENERGY, CLEAN DEVELOPMENT

AND CLIMATE CHANGE

Work together to advance co-operation on achieving safe, secure, affordable andsustainable energy supplies under the auspices of the India-EU Energy Panel andits Working Groups.

Intensify discussions, information sharing and co-operation on coal and the full rangeof clean coal technologies in the EU-India Coal and Clean Coal TechnologiesWorking Groups.

Promote energy efficiency and energy conservation through the International

Partnership for Energy Efficiency Co-operation, complemented by bilateral activitiesas appropriate. Conclude negotiations on an agreement for co-operation in the field of Fusion Energy

Research. Facilitate networking of institutions for research & development in the field of

renewable energy. Identify joint priorities for future research co-operation under the EUs 7th

Framework Programmeand seek to launch specific co-operation activities in

selected fields of research related to energy, environment and climate changeincluding renewable energy sources, such as solar, wind, biomass, waste-to-energyand research in Clean Coal Technologies (CCT).

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Indian PM at the EU-India Summit

India today has a renewable power capacity ofover 12,000 MW, constituting around 8% of thetotal installed capacity in the country. However,almost none of this comes from grid connected

solar power. We have recently begun work on a50 MW demonstration solar power program inpublic private partnership mode. We have alsolaunched a National Solar Mission as part of our

National Action Plan on Climate Change. Ibelieve solar energy can emerge as a priorityarea of our cooperation.

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ArunodayaSolar Awareness Creation Programme

anil.patni@tatabp.comwww.tatabpsolar.com

mailto:anil.patni@tatabp.comhttp://www.tatabpsolar.com/http://www.tatabpsolar.com/mailto:anil.patni@tatabp.com