The Hindu Business Line : ‘Long-term picture for solar PV biz bright’

New Delhi: Notwithstanding the credit squeeze that has dented the global business environment, Moser Baer India remains bullish about the long-term viability of Solar Photo Voltaic (PV) market. The company is all set to sell its wares in the US, new markets in Europe, and also go after the ‘rooftop’ business targeting individual homes as a strategy to counter the slowdown blues that has besieged the global economy. Moser Baer’s Photo Voltaic CEO, Dr Rajeewa Arya, expects the domestic market — which currently accounts for a fraction of the company’s PV business — to see heightened activity. He believes that the rising demand for clean and renewable energy will push solar energy costs towards grid parity sooner than expected. Business Line caught up with Dr Arya to find out more about the company’s plans.

Excerpts from the interview:

Could you elaborate on your plans for the US market? Has there been any change in your entry strategy due to the slowdown?

We think that by the end of the year, part of the US stimulus package will get translated into renewable energy projects and you will see its effects in the solar PV market. We are putting in place the elements that would be needed for us to play in the US market. Probably by next month they will be certified, and then we can start selling in the US. Then, we will look at the volumes, work on questions like is it better to warehouse in the US and sell products, or should we adopt another strategy.

Within Europe, we have warehousing facility in the Netherlands. We are in Germany and Spain, and this year we will enter France, Italy, Greece, the Czech Republic and Bulgaria — these countries have come-up with their solar programmes. At present, the European market is over 5 GW (Giga Watt = 1,000 MW), of which Germany accounts for 2 GW. The US solar market today is a mere 0.3 GW but that is slated to leapfrog as the stimulus package elements flow into renewable energy space including the solar market.

How is your strategy for India shaping up?

One of our verticals is PV Systems wherein we build complete units. In the last one year, we have done a dozen projects in India and the PV Systems Group focuses on such projects. We have completed a 135 kW rooftop in Surat (India’s largest rooftop solar PV installation); two 12 kW systems in malls in Gurgaon; highway lighting call systems; and two telephone repeater stations. We are hoping to open up the Indian market with different applications. This year we expect to do 1 MW solar farm in Punjab, 1 MW solar farm in Maharashtra and start on the 5 MW farm in Rajasthan.

For India to emerge as a large market, it is imperative to have a centralised single window clearance for solar projects. This will make a big difference in the time it takes to connect to the grids.

When will solar power prices move towards grid parity?

The module prices have fallen about 30-40 per cent over the last six months. Modules were about $4 per Watt, and today they are $2.75 — so the returns on solar farms have certainly improved. I see that trend continuing. Previously, we were thinking it will be 2015 before we reach grid parity, but now we it seems it will be sooner than that, not later. Today, the module prices account for 55-65 per cent of the solar system costs. As the module prices go down, the cost of generating solar power will go down. The moment we go below $3 per Watt , we will start looking at grid parity in certain applications. By the time we reach $2 per Watt of system cost, we will roughly reach 10 cents per kilo Watt-hour, when we will be within striking distance of grid parity.

Will you be more cautious about capacity expansion as the markets are static and clients risk averse?

The long-term picture for solar is as bright as we had seen last year. There is no change in the medium-to-long-term plans — it is only the timing of the short-term plan that has changed. But that said, we have put all the elements in place including buildings and infrastructure work for the expansion.

Our expectation is that within the next two quarters things should improve enough, that it makes sense to go ahead with our plans.

More Stories on : Interview | Non-conventional Energy

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page