its abundant availability. Theoretically, a small fraction
of the total incident solar energy (if captured
effectively) can meet the entire country's power
requirements.
National Power Crisis Shadow
Grim is a mild expression of the Indian power
generation and T&D situation. The challenges in the
Table-2 : Power prices on the Exchange
power sector continue. India is facing a power deficit of
9 percent, and this is likely to continue over the next
years. In many states, industries are facing upto 50
percent power cuts. India faced massive power blackouts in July, 2012 due to overdrawing and grid
indiscipline.
India : The rationale of going 'Solar'?
Solar power meets the Indian twin objectives of longterm energy security and climate change while simultaneously lowering tariffs over reasonable time periods as
the sun supplies free energy. Until a 24/7 solar are commercialized Small-scale/ rooftop solar power installations
at the consumer-end as also Off-Grid & Grid-connected
power at HT & LT need to be in conjunction with fossil.
Some of the factors likely to drive this market include:
1. High power deficit
The India's power demand increase is growing with economy but supply has not coped with
demand, Furthermore, power procurement by the distribution utilities has not matched the
demand growth due to financial stress and their lower purchasing capacity. High quantum of
power shortfall is borne b industrial and commercial sectors. Solar power can displace certain
amount of captive power consumption based on diesel & gas.
2. Rising import dependence
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Import dependence is currently 30 percent of energy requirements and could rise to 59 percent
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in a worst-case scenario by 2032.
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Coal consumption coal is the primary fuel used in power generation. Domestic coal
shortage means imports which will increase also due to blending constraints inthe
powerstations. (SeeFig 2)
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Diesel consumption -India currently imports more than 75 percent of its oil, and this share is
expected to exceed by 90 percent by 2030. If the consumption of diesel from power segment ªð
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reduces by 10 percent, it results in a saving of around USD 450 million annually..
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At present, the variable cost of power from diesel based generation is upwards of INR 14 per
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unit. This is likely to go up with rise in diesel price. Economics with respect to variable cost of ˜
diesel is a key metric to assess substitutability - since solar installation can then co-exist with
diesel genset which can provide power on demand when solar power is not present. (See Fig 4)
Favorable Economics
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