New Hampshire, USA --
India's solar energy installed capacity has swelled from practically
nothing to more than 2 GW in the three years since the creation of the
Jawaharlal Nehru National Solar Mission Phase 1 (JNNSM). Impressively,
costs have come down rapidly (to roughly $0.12/kWh for solar PV, and
$0.21/kWh for CSP) to be competitive with grid-connected solar PV in
many other regions.
Public funding. Financing for solar projects under
Phase I of the JNNSM were from export credit agencies, multilateral
financial institutions, nonbanking financial institutions — but "it is
inconceivable for JNNSM to scale up to the levels envisaged under
subsequent phases and beyond without the active participation of
scheduled commercial banks," the report asserts. As unallocated
resources dwindle and unit costs of solar power rise, commercial banks
that already back most infrastructure lending must be tapped and the
government must develop methods to reduce risk, such as subordinated
public finance. Look for "a huge scaling up of financing requirement"
with Phase II of JNNSM to add another 3.6 GW of capacity, nearly double
that capacity (6.4 GW) potentially developed by individual states
requiring even more financing.
Cluster-based project development. Publicly
developed infrastructure such as solar parks will help build up
infrastructure (power transmission, roads and water) and employment,
while increasing efficiencies and lowering costs, according to the
report. One such park in Gujarat (Charanka, Patan district) is already
the largest in Asia; an even bigger one is being planned in Rajasthan
(Bhadla, Jodhpur district).
Specific solar manufacturing niches. Part of what's
holding India back is a lack of solar supply infrastructure, from
natural resources for raw materials to technologies that aren't already
patent-protected. A domestic content requirement hasn't and likely won't
help local c-Si manufacturing. "India should develop its manufacturing
capabilities in specific parts of the value chain where it enjoys a
comparative advantage and can emerge as a globally competitive
producer," such as solar thermal, which the report authors point out
"holds with more established industries in India, such as automotive,
glass, metal, chemicals, power equipment, process heat, and
construction."
IN THE NEWS
Scanning Canadian Solar's Mega-Deals:
RenewableEnergyWorld.com contributor Doug Young takes a closer look at
Canadian Solar's recent large deals: a pair of 100-MW module supply
contracts with Zhenfa New Energy and 3 Gorges New Energy. Meanwhile, Canadian Solar has signed a $40 million loan agreement with Harvest North Star Capital to finance several ground-mount projects in Japan totaling 145 MW (DC). About a third of those will begin construction in 1H14.
IFC Backs Laos Hydropower:
The International Finance Corp. (IFC) and the Laos National Chamber of
Commerce and Industry have signed a memorandum-of-understanding to get
the government and business community on the same page for development
and operation of hydropower projects. Seminars through 2014 will seek to
introduce sustainability standards, tools, and best practices for
hydropower projects.
Asia Fund Seeks $1.2 Billion for Renewable Energy:
Singapore-based Armstrong Asset Management has closed a $164 million
clean energy fund with 10 investors. The fund is looking at about 30
renewable energy projects in Southeast Asia with a focus on the
Philippines, Indonesia and Thailand where policy support is "more
advanced," managing partner Andrew Affleck told Bloomberg, adding that the fund already has backed two investments for solar and solar/biogas operations.
China Encourages Grids to Buy Solar: China's National Energy Administration is directing power grid companies to buy all the solar energy produced in their areas,
seen as an effort to kick-start new grid-connected solar which is
likely to fall well short of 5-GW goals this year — targets which more
than double next year to 12 GW.
Small Hydro in Indonesia:
Voith Hydro will supply turbines, generators, automation systems, and
balance-of-plant equipment for the 8.80-MW Pusaka 1 and 3-MW Pusaka 3
hydropower projects in Indonesia's West Java province. The country has
vast untapped hydroelectric power resource (up to 75 GW cumulative
potential), and seeks to generate 25 percent of its total energy supply
from renewable sources by 2025.
China's Solargiga Forms Ghana Solar JV:
Solargiga and the Savannah Accelerated Development Authority have
agreed to jointly develop 200 MW of solar PV plants in Ghana, with
Solargiga holding 90 percent stake in the venture, which initially will
develop 40 MW of capacity.
Ming Yang Cracks India Wind Market:
China's Ming Yang Wind Power says it has received an order from an
undisclosed developer in India's Maharashtra state for 100 of its 1.5-MW
turbines, which were approved in October by India's government-run
Center for Wind Energy Technology. The company also says it has signed a
deal to develop 200-MW of wind farms in Romania starting next year.
Australia's NSM Selling Power Stations: The government of New South Wales (NSM) is selling a number of power stations — 2 GW of coal and gas-fired plants, plus 100 MW of wind and hydroelectric assets — to raise more than $700 million to fund infrastructure projects including the North West Rail Link and WestConnex motorway.
Solar Support in Thailand:
The Energy Conservation Fund (ECF) will provide nearly 4 billion baht
in financial support for 61 MW of rooftop solar installations at state
agencies. The program is part of a government effort to more than double
renewable energy consumption to 25 percent of total by 2021.
New Cell Record for Japan's Solar Frontier :
Solar Frontier says it has set a new record for conversion efficiency
for its CZTS (copper, zinc, tin, sulphur and selenium) solar cells,
which use less expensive and more abundant materials than the company's
CIS (copper, indium, selenium) technology. The new 12.6-percent
efficient CZTS cells were developed jointly with IBM and Tokyo Ohka
Kogyo, smashing the collaborators' previous record of 11.1 percent.
World's Highest Wind Farm Online in Tibet:
The first phase of the world's highest wind farm — 4,700 meters above
sea level — has begun operation in Nagchu prefecture in the Tibet
Autonomous Region with an initial phase of 7.5 MW (five turbines) of a
planned total of 49.5 MW (33 turbines), according to local reports.
ABD Backs Solar CSP Plant in China:
A proposed 50-MW concentrated solar power (CSP) plant in China's
northwest Qinghai province now has a $150 million loan from the Asian
Development Bank. China General Nuclear Power and the Export-Import Bank
of China are jointly managing financing for the project, part of the
government's goals to build out 1 GW of CSP capacity over the next two
years and 3 GW by 2020.
Calculating Residential Solar in India:
Bridge to India has updated its IndiaSolarHomes.com, which includes a
calculator to show residents their potential costs and monthly savings
for going solar, and then connect them with local vendors and
installers.
India-Pakistan Biomass Collaboration:
Officials from India's Punjab region, touring a 15-MW biomass plant in
the village of Channu with officials from Pakistan's Punjab region
across the border, pledged to help set up similar biomass operations in
Pakistan to utilize agricultural waste.
A DEEPER LOOK
More Insights Into Solar Financing in India:
Nehmat Kaur, India representative for the Natural Resources Defense
Council (NRDC), summarizes a roundtable discussion at the recent
Intersolar India conference: viability gap funding vs. generation-based
incentives, who should be the approved purchasing agency, what are
lenders' highest perceived risks (and what external financing sources
are available), and ranking risk-mitigating financing options.
Coconut-Fired Biomass in Thailand:
RenewableEnergyWorld.com's David Appleyard looks at a new biomass power
station in Thailand that will be fueled by coconut waste: husks,
shells, and leaves.
ON THE HORIZON
South Korea Updates Energy Plans:
A draft of South Korea's updated long-term energy plan includes a
significant hike in renewable energy to 11 percent of generation
capacity by 2035, up from just 0.7 percent in 2011. Other goals include a
15 percent reduction in power demand, and lowered expectations for
nuclear power to 29 percent of generation capacity in 2035, well below
the 41 percent in the circa-2008 energy plan.
http://www.renewableenergyworld.com/rea/news/article/2013/12/asia-report-three-ways-to-ensure-indias-bright-solar-future
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