Hello all, this is my first post in 2017. Wish you all a happy and prosperous years ahead.
Global research institutes have released their annual reports on clean and renewable energy generation on the occasion of new calendar year. Today, I will be elaborating the happenings of 2016 and expectations from industry in 2017 based on such reports.
Since last few months, I have been reading doubtful opinions about solar industry. Some were criticizing the policies that are driving the business whereas some articles stated that solar is over-rated! The annual reports have answered all rumours. I have observed that almost all institutes have reported better future for solar.
Starting with monthly report from Central Electric authority of Govt of India, India currently has 8.5 GW of installed capacity as on 30th September, 2016. This is 2.7% of total installed capacity of the country. According to a private report, installed capacity of solar is said to have reached 9.6 GW till December 2016 accounting 3% of total capacity.
According Mercom Capital group report, India will add more than 9 GW of solar power in its grid. Projects of 14.2 GW capacity are currently under development. Out of 14.2 GW, 6.3 GW capacity projects are yet to be sanctioned.
Rahul Munjal, chairman and managing director of Hero Future Energies Pvt stated that per unit cost of soalr energy will reach as low as 4 Rs. Most of the distribution companies in India are selling their power at the rates ranging from 3 Rs/unit upto 11 Rs/unit in different slabs. The reduction in production cost will make solar energy more competitive in 2017.
Cost of Polycrystalline solar panels have reduced by 30% in 2016. We are expecting more than 20% drop in the panel cost as per the Bloomberg New Energy Finance report. Most of the companies want market share in this growing business line. This is the leading reason behind drop in the price.
India Vs China Vs USA
In November, 2016, India claimed to have largest solar park in the world having a a capacity to produce 648 MW of electricity. The plant is spread over an area of 10 sq. km. It has approximately 2.5 million solar modules.
Due to its aggressive target of adding 100GW renewable power to grid, India will rise as a third solar superpower in 2017 after USA and China. In 2017, both china and USA are expected to slow down their progress due to feed-in tariff and taxation policies.
In all, India will remain bright spot for investment and this will drive small scale supply-chain industry in 2017.