Solar Energy - India

February 2009

Executive Summary
Solar energy market in India is worth USD XX mn Accounts for less than x% of total installed renewable energy capacity Government plans to increase the share of renewable energy to y% by 2032 Solar energy is harnessed through either of two methods:
Solar Thermal Plant/Concentrated Solar Power Plant Solar Photovoltaic (SPV)

Market

Drivers & Challenges

Drivers: Positive government policies, entry of new players in polysilicon market, abundant solar radiation in India, export demand for solar equipment Challenges: High unit cost of solar energy, volatility in polysilicon prices, and dependence on raw material imports Increase in M&A activity in renewable energy sector Domestic and international players are moving in solar energy space Public and private investments have increased in solar energy market

Trends

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Competition

Major players include Company AA, BB CC etc New players entering the solar space include company DD Companies have increased their investments in solar technology and products

Introduction Market Overview Drivers & Challenges Trends Government Initiatives Competition Key Developments

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Renewable energy sources are gaining share in the total power capacity in India
Overview
Principal renewable sources of energy are:
Wind Energy Small Hydro upto 25 MW Biogas Solar Energy

Power Sector Break-up

100 80 60

a%

b%

c%

Renewable

Renewable energy capacity reached ZZ MW, accounting for x% of the total installed power capacity in India Renewable energy witnessed the growth of x% in installed capacity from AA MW in 2002 to BB MW in 2007 The Ministry of New and Renewable Energy (MNRE) plans to take the total renewable energy capacity to more than X MW during 11th Five-Year Plan Wind energy accounts for x% of the total renewable energy capacity

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x%

y%

z%

Conventional

2002

2007

2008*

Thermal x%

u% Nuclear z% Renewable

y% Hydro

India plans to more than double its renewable energy capacity by 2012 India plans to more than double its renewable energy capacity by 2012
* As of Feb, 20-Source:

Solar energy is at a nascent stage in India and the Solar Photovoltaic method of power generation is dominant
Overview
Solar energy market is worth USD XX mn
Solar energy accounts for a fraction (less than x%) of the total renewable energy installed capacity in India

Capacity and Growth

Sources / Systems Distributed Renewable Power
Solar power

Estimated potential

Cumulative Achievement*

India has long term goal of generating x% of the countrys electricity from renewable sources by 2032 Solar energy can be harnessed through two methods Solar Photovoltaic (SPV) - converts light directly into electricity
E.g. Standalone Power Plant MNRE has funded xx grid interactive SPV power plants with total capacity of yy MW

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XY MW

Decentralized Energy Systems SPV Program

Solar Street Lighting Home Lighting System Solar Lantern Solar Power Plants Solar Photovoltaic Pumps

ZZ MW/ Sq.Km Y million Sq. m collector area X million Sq. m collector area A mn AA nos. BB nos. CC nos. DD Mwp EE nos.

Solar Thermal Program

Solar Water Heating System Solar Cooker

Solar Thermal/Concentrated Solar Power (CSP) - converts light first into heat and then electricity
Examples Water Heating, Solar Ponds, Solar Cooker, Solar Air Heating
Source:

Distributed Renewable Power Grid interactive Decentralized Energy Systems Off-Grid

* As of October 31, 20--

Drivers and Challenges

Challenges Drivers
Tropical Location Government initiatives New players entering polysilicon market Major export demand Minimal fuel and environmental risks Solar Power Unaffordable due to high costs High dependence on raw material import Volatility in polysilicon prices Land scarcity

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Key Trends

Increase in M&A activity

Trends

New players entering solar energy market

Increase in public and private investments

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Government is providing various direct and indirect incentives to encourage investment in solar energy..
Direct Initiatives Financial assistance amounting upto INR -- per KW hour in case of solar PV with maximum capacity of X MW and upto INR -- per KW in case of thermal Power plant for a period of x years Indian Renewable Energy Development Agency (IREDA) provides revolving fund to financing and leasing companies offering credit for the purchase of PV systems Direct Investment of up to x% is permitted in non-conventional energy sector through the automatic route

Indirect Initiatives

In March 20-- the Indian government announced a semiconductor policy under its Special Incentive Package Scheme (SIPS) Type of Unit Threshold NPV of investment USD bn USD bn Incentives in SEZ x% y% Incentives in Non - SEZ a% + Exemption from CVD b% + Exemption from CVD

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Fabrication* Eco-System

Source: SOLAR ENERGY - INDIA.PPT

Thank you for the attention

The Solar Energy report is a part of Netscribes Power Industry Series. For more detailed information or customized research requirements please contact: Natasha Mehta, CFA
Phone: E-Mail: +65 9651 6382 natasham@netscribes.com

Subhash Chennuri
Phone: E-Mail: +91 98190 59664 subhashr@netscribes.com

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