FICCI Conference on “Destination India: Investment Opportunities for Solar Energy”

With large solar power capacity awaiting for allocation by 2022 under Jawaharlal Nehru National Solar Mission, State Solar Policies, Solar specific Renewable Purchase Obligation (RPO) and voluntary use of solar at industrial and domestic level. India is poised to become a leader in solar energy fulfilling its twin objectives of contributing to India’s long term energy security and its ecologically sustainable growth. The Governments at central and state level have initiated extensive reforms to remove barriers and introduce facilitating measures to promote and catalyze private sector activity in solar energy sector.

At this juncture, the Indian industry and government feels that enhancing market access and collaboration with leading International counterparts will help in building a strong base for augmenting solar power generation in the country.

FICCI is leading a Solar Energy Business Delegation to Intersolar Europe 2012 this week to create an interface between Indian Solar Companies with the leading international counterparts during the world’s largest solar market fair. The visit to Intersolar Europe will provide market access to Indian companies, create linkages between the Indian companies and their global counterparts and would help them in developing a platform for technology transfer, joint-venture initiatives and create investment opportunities for companies in both countries.

After the success of last year’s Conference on “Destination India: Making India the Solar Capital of the World”, FICCI organized a conference on “Destination India: Investment Opportunities for Solar Energy” during Intersolar Europe 2012 on June 12 in Munich, Germany.

India has always welcomed the international community to invest, collaborate, forge partnerships and tie-ups to discover new strategies and technologies that can assist in building a solar world. The aim of the FICCI conference was to create awareness on the Indian policy, regulatory and business environment to support the growth of solar industry in India, as well as to reach out to the global stakeholders to project investment opportunities in the Indian market. The conference also showcased the requirement of Indian solar energy sector at the world leading global platform to facilitate the growth of domestic solar industry and enhance market access and capacities of the Indian solar companies globally.

The FICCI Conference on Destination India has featured the prominent industry leaders and senior central and state government officials providing informative and inspiring discussions pertaining to India’s current needs and requirement as well as ambitious future.

While addressing the audience, Mr Tarun Kapoor, Joint Secretary, Ministry of New and Renewable Energy from the Indian government mentioned that it is estimated that in next 12 years India’s electricity requirement to grow 2.5 times and the estimated electricity shortage will be 25-35 GW. MNRE emphasis will be equally on the grid connected as well as the off grid application.

India also has an unmatched potential for rooftop implementation and it is important to have an effective and robust rooftop policy with enough incentives to boost rooftop solar energy implementation in India, similar to Germany. He said the Government of India is working on a plan to roll out 3000 MW of grid connected solar power projects supported by Government and another 6000 MW through solar specific Renewable Purchase Obligation(RPO) route in phase 2 of the JNNSM. He also mentioned that in the second phase of the mission, thin film may not enjoy the advantage over crystalline silicon technology as it is presently. He said grid parity may come by 2017, much before the target timeline. The government has plans to set up 4 solar thermal power projects through the Solar Energy Corporation of India. He said he expected the REC mechanism to catch on from next year.

Senior state government officials from Jammu and Kashmir and Chhattisgarh spoke at the FICCI conference.

Mr Manoj Dey, Chairman, Chhattisgarh State Electricity Regulatory Commission stated “There is ample scope for installation of solar photovoltaic in Chhattisgarh state since there are almost 330 days of sunlight. Chhattisgarh has already notified the renewable purchase obligation (RPO) which envisages even captive load to have obligatory green power consumption. We have also notified the REC regulations for the state. Presently, we have two grid-connected solar plants of 2MW each are commissioned. We expect many more plants to come up shortly. Intersolar Europe provides a good learning experience for sharing the technicalities of solar plant commissioning and maintenance”.

Mr Fida Hussain, CEO of J&K Energy Development Agency (JKEDA) said “J&K has been a leading state in solar energy application under Remote Village Electrification/ General Category / and Solar lantern to Gujjar and Bakkarwal community with electrifying almost more than 80,000 Households under off grid solar energy application. About 2MW capacity solar power plants have been installed and 3MW Solar Power Plants are coming up in Jammu and Kashmir including the Ladakh region besides 10 MW Mini Hydro projects are being implemented by JKEDA on IPP mode. Under solar thermal 20,000 Sq m is being covered in different domestic and commercial institutions”.

While speaking in the conference Mr K Subramanya, Chairman of FICCI Solar Energy Task Force and ex-CEO of Tata BP Solar mentioned that India has huge potential in not only the grid connected but also for the off-grid and decentralized solar energy application where it can play a vital role in not just the improvement of socio-economic condition of the beneficiary but also help in environment protection, climate change mitigation and job creation. He said "There is lot to learn from German PV experience and apply judiciously to what suits India best. Excellence cannot be copied but internalized. Successful MNC's in India have followed the path of Designed in India and Designed for India utilizing local skills and talents. FICCI will be happy to lend supportive hand in accelerating the process and disseminate learning". He also mentioned that due to sectoral cap, the funding for solar energy projects has been a challenge and requires innovative ways of funding solar energy projects such as solar bonds.

The conference was attended by leading solar companies across the globe including India who have shown great interest in investing in the Indian market