A Pew report finds that among the G-20 countries, India’s clean energy sector was the second-fastest growing in 2011. It attracted investments worth $10.2 bn, an increase of 54% over 2010, with wind power leading the way by attracting $4.6 bn in investments. The graphics below from the report shows the status report on clean energy investments in India in 2011
As part of its Jawaharlal Nehru National Solar Mission, India has set a target of covering an equivalent to about 3% of the country’s projected power needs by 2022 or about 20 GW with solar power. Further, states have been mandated to procure 0.25 per cent of their power requirements from solar power under the solar renewable purchase obligation (RPO). While impressive strides have been made in recent months, there are critical challenges to be overcome.
In the past two years, the price of solar power has fallen sharply, thanks to a glut of solar panels in the market and falling silicon prices. Where the Indian government was initially prepared to pay up to 17 rupees (about 32 cents) per kilowatt hour (kWh) for solar energy, companies are now bidding for contracts to supply solar power for less than half that price.
A recent report by CRISIL has claimed that despite the recent fall in solar panel prices, solar power remains unviable below Rs 9. Solar is easily the costliest among all the energy options.
It informs that capital costs of PV projects fell by 30% in 2011, following a 50% decline in prices of solar PV modules that make up half the cost of solar PV projects. Weak demand in European markets following withdrawal of boom-era feed-in-tariff (FIT) subsidies and aggressive capacity expansion by Chinese module suppliers drove this trend.
As part of its Jawaharlal Nehru National Solar Mission, India has set a target of covering an equivalent to about 3% of the country’s projected power needs by 2022 or about 20 GW with solar power. Further, states have been mandated to procure 0.25 per cent of their power requirements from solar power under the solar renewable purchase obligation (RPO). While impressive strides have been made in recent months, there are critical challenges to be overcome.
In the past two years, the price of solar power has fallen sharply, thanks to a glut of solar panels in the market and falling silicon prices. Where the Indian government was initially prepared to pay up to 17 rupees (about 32 cents) per kilowatt hour (kWh) for solar energy, companies are now bidding for contracts to supply solar power for less than half that price.
A recent report by CRISIL has claimed that despite the recent fall in solar panel prices, solar power remains unviable below Rs 9. Solar is easily the costliest among all the energy options.
It informs that capital costs of PV projects fell by 30% in 2011, following a 50% decline in prices of solar PV modules that make up half the cost of solar PV projects. Weak demand in European markets following withdrawal of boom-era feed-in-tariff (FIT) subsidies and aggressive capacity expansion by Chinese module suppliers drove this trend.
2 comments:
I hope the fall in price is not a temp phase. Hope it is better than simple liquidation of excess inventory.
yes sir. that is a real possibility. especially if the chinese firms are liquidating the massive inventory that they built up
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