A solar panel atop every house should be the model for providing electricity to all. The grid should merely serve as a back-up.
With will and vision, India’s energy prospects can be changed from grim to green, and the world will benefit as a result.
The failure of the country’s electricity grid on July 30 and 31 highlights its vulnerabilities and underscores a larger national need: about 400 million Indians are not connected to the grid at all, and those who are have unreliable access. At 571 kWh per capita, India’s electricity consumption is one-fifth of China’s (2,631 kWh) and less than one-twentieth of the US’ (12,914 kWh). India’s electricity demand will only grow.
Burning coal for electricity is increasingly expensive, causes global warming, and jeopardises the planet’s health. In any case, India has ash-rich coal, limited oil, unknown amounts of gas, poor mining productivity and inadequate transport. Power plants struggle to get reliable fuel supplies. Solar electricity today at Rs 7.50 a kWh is economical compared with subsidised diesel-generated power at roughly Rs 15 a unit, but more expensive than coal-based electricity at about Rs 6. What, however, is the true cost of coal-based power? Prices are distorted by subsidies, State boundaries, vote-bank politics, and uncharged carbon-emission costs. Average prices matter less than peak prices. When India sheds load to manage peaks, customers use expensive diesel power.
Universal access
How do we come out of this energy and infrastructure bind? Nothing short of a fundamental re-imagining, starting from first principles, of all energy solutions is essential to address India’s energy needs. Can India leapfrog into a clean-energy future rather than extend the conventional grid with fossil fuels at its core? In a nation blessed with abundant sunlight, to what extent should electricity be a networking service at all? Could India tap ambient solar energy for most of its needs?
India’s single-minded focus should be massive and rapid solar deployment, not only through utility-scale solar plants, but also through distributed generation, household-by-household, nationwide. Electricity in Indian homes should be rooftop-to-room and solar based with energy self-sufficiency as the goal; the grid can complement and serve as back-up where available. Much as TV antennas once sprouted on rooftops, so should solar panels.
Public policy should have a singular aim: universal electricity access.
By implication, policies aimed at encouraging domestic manufacturing, local content requirements, or favouring one technology over another should be put aside as tertiary.
The aim should be personal power just as we have personal computers. Slowly, we will get there. In the meanwhile, solar electricity is poised to become a friendly, industrial scale, cottage industry, like vegetable patches in home gardens. Photovoltaic technologies have matured sufficiently and present us with simple, affordable electricity alternatives to the traditional grid.
Enabling public policy can unfetter entrepreneurial energies and give birth to millions of small and large solar-related businesses, and thereby generate employment. Distributed solar generation can spawn innovations. Standardised 1-kW solar kits, for instance, can be mass produced and installed easily. The household deployments can extend to communities and neighbourhoods resulting in self-sufficient micro-grids.
Partnership with China
Community micro-grids for tens and hundreds of households in villages, towns and cities should be India’s preferred electricity infrastructure. Anchored with solar, the solutions may include combinations with bio-diesel, batteries, wind, biogas, micro-hydro, etc. At night or when the sun is behind clouds, alternative yet local sources can assure electricity. Once solar energy takes root, India will need less of the colossal and wasteful transmission, distribution and generation infrastructure except for industrial operations such as running factories and trains.
China has recognised the importance of solar energy and invested in numerous solar-panel factories. Taiwan is doing the same. Due to the manufacturing excess, prices have dropped by over 70 per cent in the past three years, and the fall continues. India presents a ready market for that production. The formula, ‘China produces, India deploys’, makes for a winning partnership.
Moral Imperative
Among competing national priorities, what can be more catalytic of overall welfare than universal electricity? It can extend working hours, reduce pollution and diseases, and help prevent food waste. Beyond lighting homes, solar solutions allow for the spread of the Internet and therefore education, e-governance kiosks and ATM machines.
Solar panels facilitate a parallel infrastructure for clean transport — charging batteries for electric bicycles, scooters and cars. Solar energy aids cooking, powers streetlights, operates irrigation pump sets and substitutes diesel burning for cellular towers. Stubborn problems such as efficient battery storage persist, but they can be dealt with as the market evolves.
The grid failure has crystallized the solar market. There has never been an India-sized market for solar electricity, with relentlessly rising demand, talented people, old infrastructure and plentiful sunlight. The scale can establish new low-price benchmarks and thereby aid the entire world. Unfavourable economics has been the primary barrier to the spread of solar energy until recently, but no longer.
Universal electrification is a human-rights, inter-generational-justice and human-capital-growth issue all in one. For how many decades should a third of India’s citizens use kerosene for light and cooking, children study by smoky, unhealthy flames, and income-earning opportunities fade with sunset?
(Mahesh Bhave is Visiting Professor, Strategy, and Debashis Chatterjee Director, IIM Kozhikode.)
Keywords: solar panel atop every house, model for providing electricity, electricity grid, green energy, solar energy
Comments:
The generation cost of Solar Voltaic electrical energy is mentioned as Rs 7.50 per kWh unit. It may be two to three times in practice, due to poor energy conversion efficiency of photo cells at 5-15% over the day. Suggest a review.
It's great to know that soon we could all afford to have sun shining throughout the night at our home without being dependent on somebody else.I would further like to have a system where one type of green energy will be augmented by another type. For example, a small village could use it's bio-degradable waste to produce energy & supply through grid to itself or could sell it to others. Furthermore, they can use wind turbine or mini hydro-electric turbines(the kind shown in SRK's Swadesh)as India has abundant wind & water supply to improve their self sufficiency on energy need. I hope people will focus on small but green energy sources rather than big projects such as nuclear power (costly & hazardous)to usher a new dawn of light & prosperity.
I think the professors who wrote this are either stupid or being paid by
solar companies. Solar is good at the maximum at village level for
lighting couple of bulbs but even for that capital cost is prohibitive.
About cost per unit being R 7.50, I think they are joking. No wonder
these are professors in IIM kozhikode and not IIMA.
I do agree with the comments of Dinesh and Sathya on generation cost per
unit. All PPA ( Power Purchase Agreements ) done between Solar power
generating companies and the state electricity boards are at INR 13 to
15 and most of the solar companies are bleeding as per the general
estimates. Does paper suggest that all hue and cry raised by such
companies are fake and govt is paying extra money to these companies ...
Is another SCAM going to unfold in near history..... lol
if you put up for captive purpose in a factory etc, you get REC which is
traded in the Energy Exchanges. See what is done in Gujarat but now
rates have come down thanks to Chinese dumping in india
India can be self sufficient if we tap solar energy
The article is completely away from reality.
Only place where the author talks about numbers is about cost of solar power at Rs7.50/kWh and that is wrong. It is much costlier than that. The fact is, solar power is prohibitively costly even with govt subsidy and is expected to be like that for some time unless there is a technology breakthrough.
Idea of everyone having his own 24hr generator is grandiose but too far from reality, if not ridiculous. Does author have any idea or challenges in windmill backup and infrastructure and maintenance needed for that?
Lastly, and there is not a single number provided for that, do authors have any idea about prohibitive capital costs for solar power equipment? And backed up by wind power? Wow.
Classic case of armchair intellectualism with no idea about ground realities or any numbers to support the hypothesis.
MBAs talking about high level picture with no idea about execution? I bet.
Use of solar power by every household is welcome. Given the high
CAPEX,Grid power is still cheaper but may not be so at the prevailing
"commercial rates" in many states such as TN. This is where the policy
makers should see a window of opportunity. Millions of units are
consumed by shops (for their name boards), advertisement hoardings
etc. Metal Halide lamps that provide good illumination but consume
huge power are rampantly used for such purposes (paid at commercial
rates) when the rural hinterland languishes for power even for meeting
their routine daily needs. Students suffer, the bread winner and the
old go without sleep. Production suffers. All these can be offset - at
least partially - by a simple & reasonable legislation. MAKE IT
COMPULSORY FOR SHOPS, ESTABLISHMENTS & HOARDINGS TO USE SOLAR POWER
ALONE. This will trigger the market to deliver cheaper solar systems
that in turn make it attractive for the "personal power" the article
advocates.
A first step could be to use PV panels + controller for feeding the
Inverters thru a change-over switch . During sunlight hours , one could
run the basic lighting and fan load on solar ; and continue till charge
lasts after sunset .
We know from the recent Inter solar held in Bangalore, that the solar manufacturing sector is bleeding.But going by the rate of black outs,small home power systems powered by solar can no longer be a dream for the lower income group.This is possible, not only by the subsidies,Even Solar companies should come out with innovative marketing concepts like "rent-a-solar" working hand in hand with micro financiers.For more information visit thesolarindia.com
Solar power being volatile and available only during day is not a cost
effective solution for individual homes even if battery technology
improves. But, it can be very effective if it is connected to a grid
that can both supply and draw power from individual units. The grid can
be regional or mini, locality level. The former is more suitable for
cities and the latter for villages and smaller habitations. The cost
the grid pays the home unit will have to be fixed on a long term basis.
Such a system not only provides need based supply at low volatility,
but also provides an insurance of supply. The government will have to
take the initiative to create a legal system for this.
Clean energy is the future. Innovation through partnership and
attractive business preposition for the private sector is the best bet
against future uncertainties. Hope Electricity for all becomes a reality
as soon as possible.
Use of rooftops to site solar power units is a sound proposal. Partnership with China sounds good on the surface. But, that country is a competitor for technology supremacy and an aggressive adversary on the border. A shrewd business advisor would suggest that China’s excess production should be bought for cents on the dollar. India’s long term strategy should look towards developing solar technology and manufacturing capability in country. It should be recognized that Chinese business strategy had nearly decimated the solar PV panel manufacturing companies in the US. It is possible for India to take advantage of its market and buy the US solar panel manufacturing capability at throwaway prices. That is the business world!
For a start, govt should popularize installation of solar power systems for heating and lighting purpose. Though the initial cost may be high, it will help reduce power bills in the long run. A classic example is Bangalore known for its traffic chaos than anything else. But just look around the rooftops, you can see that many houses have gone in for solar power for heating water. If only this is adopted by all those who can afford installing such solar power systems, It will help the country in generating green power, reduce dependence on public grids. Govts should give a serious thought on this subject. A few banks provide loans for purchase of such systems at extrmely low interest rates. House owners can take advantage of this.
Hello!
I'd just like to state a few things,
1. The cost of production could be anything. The bid price, however quoted by the
companies can be found on CRISIL reports, other Newspaper reports. The bid price
by a company called "solardirect" stands at Rs. 7.49, as of december 2011.
2. It might not be an alternative just yet. But it can certainly act as a complement or a
backup, as is clearly mentioned in the title.
3. Any extra power supply into the grid is welcome, I say.
4. So what if they are being paid off by the companies, there must be some merit to
the company's claims, if they want their figures and plans to succeed. The rest needs
to be figured out by the Committees and the PE firms who invest in the companies.
5. Before you mouth off, just read newspaper articles, even if you don't want to do an
in-depth research. I am no expert, but I'm just drawing conclusions from CRISIL
reports, Newspaper articles (not this one) and independent reports of Bidding
Results.
Have a good day
I dont know how the people commenting here have got their costs from. Solar panels typically manufactured in 45W or 60W configurations can be priced between $1-$2 per Watt. Yes it is that cheap. Typically a solar panel has nothing but a plexiglass with a approx$10-$20 worth of silicone which is in gel form and solidifies. Aluminum frame for framing and rigidity. All in all less than $100 in a typical cost of a 60watt panel. What drives up cost is dealer margins etc. Also in advanced countries the process of hooking it up so that it supplies power to the grid involves expensive equipment and installation costs which are more than equipment costs. If India can remove sales tax, central exicise and make the manufacturers sell directly to consumers. All that we need is a small $200 device so that the solar power generated can be directly used by the home and rest supplied by the grid all done dynamically as both load as well as solar output can vary. Batteries can be added to the mix too.
There will be many critics of Solar Power but undoubdetly the
Govts,both Central and State should not tax these Products and give
the Subsidy they advertise.
Consumer,Industry will be benifited.For those skeptics"that it is
meant for ruralIndia",I know a Co in Chennai that not only runs its
manufacturing facility,but its offices,R&D etc all on Solar.No doubt
their initial Investment was large,but they are not effected by EB
shut downs,huge savings in their EB Bills.
Why a Solar manufacturer in Chennai told me that his House,as an Ad
for his Co, put Solar Power for his House.It runs everything in the
House excep the Acs,his neighbours envy him when there is frequent
power shut downs,but are not prepared to Invest.
It needs a large mindset change in our people.
Dear Professor Mahesh,
Like always it is good to get such insights from you on Green energy.
Look forward to read more from you in future.
A good revealation. Renewable sources of energy is the way ahead. While for the time being probability may be little less due to present state of the technological advancement wherein systemic efficiency and also that of components is low but continuous R&D can bridge this gap in next few years and in the mean time it can continued be used for local usage and that will reduce the grid requirement. Also R&D needs to be done in such a way that systems are developed to have two way transactions from the grid. Such a system will help the grid charging in case energy converted locally is surplus to the requirement. Government should also formulate and enforce certain policies with respect of building design so that use of solar energy can be optimally incorporated (GRIHA norms. Not only solar other forms of renewables like biomass, wind, waste to energy, small hydro (mini and micro hydel) need to factored into our energy planning.Concept in renewable exploitation should be capture locall
With so many voices and contradictory views,it is tough to assess if it is feasible to use solar energy as green energy at economic rates.The Central Science ministry and IIMs should come out with a simple white paper about economics of the use of solar energy and means to make it economic. Their silence while nation is crying is astounding!
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