 |
The Centre should provide a
guarantee that if states do not
pay their solar developer in
time, they will take it out of
allocation to the states.
|
The new government has unfurled plans to build 100 gw of solar power by 2022. Here are a few suggestions to execute this grand vision:
First, it's time the general perception that solar energy is expensive is removed. India gets 70% more solar radiation than European countries. This means the same solar panels yield 70% more power in India. In addition, peak demand in India coincides for 70-80% of the time during which solar energy is harnessed. This peak demand is mostly met by diesel, which costs almost double that of solar electricity, currently at Rs 6-7 per kWh.
So, when we commission a solar plant, it will displace diesel for 70-80% of its generation and imported coal for the rest. At all times, solar is substituting for imported energy, which is far more expensive.
Second, adequate capital should be raised without crowding out investments in other sectors. The proposed 100 gw capacity requires about $125 billion, of which $90 billion will be debt financing. The global financial crisis has created a great opportunity for availing cheaper credit from global markets. As per International Energy Agency (IEA) estimates, green energy will receive almost 60% of the $5 trillion expected to be invested in new power plants over the next decade. Solar's requirement is less than 2% of this amount.
The Holy Grail of successful financing is effective allocation of risks between different stakeholders — in this case the consumer, the investor, central/state governments and the developer. The development cost and schedule risk are best borne by technically competent solar power developers once a power purchase agreement (PPA) is signed with a state electricity board (SEB). The developer is in the best situation to procure land, negotiate for panel prices with investors and execute the project expeditiously.
Source:ET
No comments:
Post a Comment