Oct 11, 2012

India set to replicate its IT sector success in solar energy

India
Admin
3 min
 

 

Read more in Energy Digital's October Issue

India is set to replicate its information technology (IT) sector success in solar energy. With every known business entity exploring its own agenda in the solar energy sector, the country is already at the starting point of an energy revolution.

All prominent Indian companies have either set up their wholly-owned solar energy subsidiaries or have gone in for joint ventures or have set up solar energy divisions within their existing operations. The predominant business model being pursued by them currently is of grid-tied project development.

However, as more avenues open up for captive and REC-driven solar power projects, business entities are seeing more value in getting ready for the next wave. (RECs are renewable energy certificates that have become tradable commodities on India’s different power exchanges.)

The private business sector is gearing up for solar energy even though there is an almost policy paralysis with the central government, while different state governments have slowed down or postponed their policy initiatives. Most companies have set up small teams, seeking to explore opportunities in off-grid, micro-grid and roof-top applications to serve the larger private consumer market.

These opportunities are small in terms of ticket-size, but are enabling all new entrants to test technologies, processes and their people. Gaining experience through pilot projects seems to be the underlying thought.

Read more in Energy Digital's October Issue

And, it is not only in the PV space that this below-the-surface activity is happening. Companies are also finding solar thermal, particularly heat and steam applications, to be exciting opportunities. Roof-top solar water heaters, one of the oldest availably solar solutions, are now increasingly becoming a USP for residential property developers to offer to their prospective customers. The property developers on their part are forming joint ventures with technologists to gain a share in a market that will surely see exponential growth in the years to come.

Among the predominant and already-known entrants are the Reliance business groups, Lanco Infratech, Moser-Baer, Tatas and BHEL. But, other corporate houses like that of automobile major Mahindra, finance major Welspun, finance major Kotak and the Birla group too have taken long bets on the solar energy sector.

International majors like First Solar, juwi, abakus Solar, Bosch Solar, DelSolar, EMMVEE and SCHOTT are also among those who have taken long bets on the Indian market. Some of such players, who are largely equipment manufacturers or suppliers in the other markets, are keen to even become project developers in a country whose over 30 per cent population is still without any grid-supplied power.

Dedicated and recently-promoted solar companies include Azure Power, Waaree, GreenBrilliance, Vikram Solar and Indosolar. A listing of other scores of newly established regional players would make one feel that the market is already over-crowded – all waiting for the solar energy wave to come in.

The above phenomenon largely reminds one of the early part of 1990s when almost all business entities in India stepped into the information technology (IT) , or more specifically software services, arena. The dotcom boom of the late 90s and parallel off shoring of various service jobs placed Indian’s IT sector among the world majors.

The current euphoria, however, is not without its own sets of challenges and risks. Lesser-than-expected business is visible in the number of marketing and sales CVs that have started getting shared through emails. These CVs are not only of those professionals who are wishing to enter the solar sector, but also of professionals who claim to have a minimum of couple years’ experience in India’s solar project development space.

Nevertheless, as awareness rises, as conventional power becomes costlier and as power shortage increases, the demand for solar power will rise. And, this day is certainly not far off.

Bhupesh Trivedi is the CEO of Mumbai-based solar energy consulting firm REECODE Energy Solutions, and can be reached at +91-9324246639 or [email protected]

 

 

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Apr 23, 2021

Drax advances biomass strategy with Pinnacle acquisition

Drax
Biomass
Sustainability
BECCS
Dominic Ellis
2 min
Drax is advancing biomass following Pinnacle acquisition it reported in a trading update

Drax' recently completed acquisition of Pinnacle more than doubles its sustainable biomass production capacity and significantly reduces its cost of production, it reported in a trading update.

The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.

The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).

Drax CEO Will Gardiner said its Q1 performance had been "robust", supported by the sale of Drax Generation Enterprise, which holds four CCGT power stations, to VPI Generation.

This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.

In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.

The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.

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