Mixed fortunes for solar, wind energy in India

Hurdles aplenty in utilising the renewable sources

In India, though MoUs have been signed on setting up solar projects, the implementation is yet to come by. Small pilot projects are scattered around, trying to check the feasibility of ensuring proper feed-in methods to the main grid.

In Karnataka, at present, there are two pilot projects, each with 3 MW capacity unit, in Kolar and Belgaum. They will be operational in six months time. Plans are afoot to set up bigger plants if these two pilot projects prove success.

But there are hurdles. A solar plant requires 4 acres for 1 MW and the initial investment per MW is a whopping Rs 20 crore to Rs 22 crore as opposed to thermal or wind, which requires Rs 4 crore to Rs 6 crore of initial investment.

However, the low maintenance cost and a feed in tariff prices of Rs 13-15 per unit, ensures that they break even in 15-20 years.

But what is getting the solar manufacturers excited is the recession. CEO of SunTechnics Energy Systems, Rajeshwara Bhat says that prices have gone down globally for solar equipment.

“We are trying to cash in on this trend and increase our capacity for lower costs. Prices have come down 15 per cent to 20 per cent,” he added.

Since volume is the only way to bring down costs, solar power producers are now trying to rope in customers like banks for providing power in ATMs in rural areas and telecom companies to replace diesel generators for the towers.

Wind energy

On the other hand, wind energy production has somewhat stalled in Karnataka. At present, there is close to 1,100 MW being generated through wind energy, and all of it is being sold to the State.

There is tremendous potential to create more energy, especially to tide over the power crisis, but there is a catch.

Chief General Manager of Power Research and Development Consultants, K Balaraman says that wind energy is available in excess beginning from June to October.

“But this is the time, when the State experiences rainfall and the demand is very low. When the demand is high, especially the summer months, there is a dip in our generation. So, we cannot really help providing extra energy, when there is a shortage,” he adds.

To top it all, wind energy is sold at Rs 3.20-3.30 per unit, in the months, when the demand is low and the supply aplenty. Energy from hydel sources in the monsoon season will be as low as Rs 0.40 paise.

Hence, utilities hesitate to buy wind energy as it does not make good economic sense. Interestingly, the State has a almost 10,000 MW potential for wind energy, but since there are no buyers, production has stagnated for the last three years.
DH News Service