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modules efficiency in the reduction of BOS cost, and the optimization of Solar inverters technology, will most likely continue to drive the cost down. And what about storage and falling cost of energy storage solutions? What about the potential of a growing population with some areas having restricted access to grid and electricity?, the competitiveness of Solar PV in these situation is almost unbeatable. However we have to keep in mind that financing schemes are also important in this market segment and not easier than in utility scale plants. Challenges Although there are conditions that indicate that the growth of Solar India will be significant, deployment of Solar PV faces some significant challenges. Starting with grid connection, World Bank data quantifies distribution and transmission losses in 17% on the period between 2011-2015. But this is not the only significant condition, transmission infrastructure able to take large utility scale projects is scarce. Thus, infrastructure planning and investment will also have to be significant. We have not done a detailed analysis on land availability and the conditions of available land, but this is a factor to take into consideration, as some main developers have stated difficulties in the process of land acquisition. In this sense, in the last Intersolar India it was announced that the Ministry of New and Renewable Energy (MNRE) has recently written to state governments to instruct them to set up new solar zones to encourage private sector development of large-scale PV projects. Additionally, the financial situation of the Distribution Companies (Discoms) is also a key factor to be taken into consideration. The financial condition of these companies is quite delicate at the moment and should be solved for utility scale deployment, as the bankability (in solvency terms in this case) of the off-takers is a key factor for attracting interest of investors and financers. Will India continue to grow into becoming a major market? In our opinion, market conditions in India are such that Solar PV energy generation capacity will grow dramatically in the next few years. Having performed our first services in the market in 2012, we see that many of the issues that held the flow of international capital to Solar PV development have been tackled. Restrictions to the flow of capital have changed, and so have limitations to local content, bringing competition to the market, without forgetting policies to incentivize investment in the manufacturing industry and financing. Political will to incentivise Solar PV growth is seen in changes already taking place in other aspects necessary for the development of projects: amendments to the Electricity Act with strong enforcement of Renewable Purchase Obligation and Renewable Energy Obligation, changes on land use regulations, identification of land and roofs for solar projects, push for net-metering scheme. In regard to active players in the market, Important developers have already signed a considerable volume of PPAs. SunEdison, that has one of its large world bases in India, won 500 MW recently in the well known lowest price in the market for the Andhra Pradesh bid, with other large players following closely such as Trina Solar (Trina also has an ambitious plan fora 2 GW factory in the country) with 100 MW and First Solar with other 100 MW. Solairedirect also declared its intentions of investing in the country. British LightSource also recently made a move, signing a deal to develop 3 GW in the middle of the visit of the Prime Minister Mr. Narendra Modi to the UK. This announcement could be taken as a significant one in order to assess the market potential, as this is the first important move of Lightsource outside the UK after its rapid and successful growth in the UK market, and they are looking for markets with the potential of making large and sustainable growth in several years. There are also other companies like Waaree, Vikram Solar, Tata Power, SOLAR POWER Mahindra, Sterling & Wilson, among others with a strong local base, that have a very relevant role in the market. With solar prices becoming more competitive it is critical not to take shortcuts trying to cut certain costs directly related to a good the execution of PV plants, as a faulty process or component will result in a poor performance of the asset. Only by optimizing asset performance can financial models work under current prices, attracting investment and driving industry deployment. Current policies and trends seem to be driving the market towards large scale projects which can easily absorb complete quality assurance programs, which include from equipment selection and quality control (during manufacturing and upon reception at the plant) to control of construction execution and commissioning/acceptance of plants. Enertis is a leading provider of quality assurance services in every major market in the world, thanks to its expertise in manufacturing quality control, state-of-the-art PV Mobile laboratories for testing of PV panels, as well as to its owner’s engineering and technical advisory capabilities. We see in India, the ideal market to set a local network of testing laboratories to support the rest of our services in a scalable highly cost effective solution. The size of the country will be a challenge in order to deploy cost effective testing solutions. After participating in our first project in India in 2,012 performing services for Mahindra, and with the number of our projects in the country increasing in the last months, we definitely believe that the dynamics of the market have changed and that the conditions are set for a boom in Solar Energy. Of course, India macroeconomic situation and the risk of currency depreciation should be watched, but in any case, considering that economic growth and energy demand will continue to rise, Solar PV seems to be a source that will play the significant role that the current Government foresees. We see that reaching 100 GW is ambitious, but not an impossible target. From the business perspective of a player in the Solar market, when considering that only reaching 50% of this target by 2022 will make India one of the leaders in Solar Energy, definitely India is a place to be and stay in the next 7 years 29 energetica INDIA · NOV | DEC15


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