Harnessing Solar energy, Options for India
A study on harnessing solar energy options for India was conducted recently by Shakti Sustainable Energy Foundation, Climate works Foundation and SSN foundation. Supporting this study it has been concluded that solar energy can play a big role in providing electricity to rural areas and thus has been included in India’s rural electrification policy. See more at: http://shaktifoundation.in/report/harnessing-solar-energy-options-for-india/
A study on harnessing solar energy options for India was conducted recently by Shakti Sustainable Energy Foundation, Climate works Foundation and SSN foundation. Supporting this study it has been concluded that solar energy can play a big role in providing electricity to rural areas and thus has been included in India’s rural electrification policy. See more at: http://shaktifoundation.in/report/harnessing-solar-energy-options-for-india/
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3.2.1.1. Conclusions<br />
Although economically viable at feed-in tariffs of `17.9 per kWh (the same amount as GBI offered in<br />
case of utility scale), it is unclear if the current urban grid infrastructure has the capacity to<br />
accommodate distributed generation at the low tension level. Technological challenges have to be<br />
addressed, and standards <strong>for</strong> grid integration must be established (refer to Appendix 2). Moreover,<br />
given that even at today’s diesel cost, the cost of generation from solar PV is comparable, going<br />
<strong>for</strong>ward with the expected increase in diesel price, solar PV will get competitive. Hence a large tariff<br />
is unnecessary here.<br />
3.2.2. Off-grid Systems with Battery<br />
The solar electricity generated using a PV system with a battery will abate the use of either grid<br />
electricity or diesel, whichever is live during that time. The economics of the PV system become<br />
more attractive when it reduces diesel use. Typically, this system is used where there is no grid<br />
power and to run a dedicated load on 100% solar power. Thus, the presence of a battery allows <strong>for</strong><br />
the complete replacement of diesel-generated power, even during nights and on cloudy days when<br />
insolation is low.<br />
The analysis featured in Figure 15 shows the sensitivity of IRR to major parameters <strong>for</strong> an off-grid<br />
system with battery.<br />
30% % of Time Diesel is Abated 100%<br />
` 35 Diesel Price ` 60<br />
Base Case<br />
System Price = ` 270/Wp<br />
Diesel Price = ` 42/litre<br />
% Time Diesel is Abated = 70%<br />
CUF =21%<br />
Capital Subsidy = ` 90/Wp<br />
` 300/Wp<br />
System Price<br />
` 200/Wp<br />
-4% -2% 0% 2% 4% 6% 8% 10%<br />
Figure 15: Sensitivity Analysis <strong>for</strong> Off-grid System with Battery<br />
Capital expenditure plays an essential role in determining the viability of a project. For systems with<br />
a battery, current pricing dictates much higher initial costs (subject to battery capacity); and even<br />
with the generous capital subsidy offered by the government, profitability is not certain. The average<br />
cost of abated electricity works out to be `12.15 per kWh, while the LCOE of generation using solar<br />
PV systems is much higher at `23.29. This clearly demonstrates the unviable nature of such an<br />
investment.<br />
3.2.2.1. Conclusions<br />
On account of high capital costs and lower efficiencies of systems with battery storage, solar PV is<br />
not a viable replacement <strong>for</strong> DG unless:<br />
<strong>Solar</strong> Photovoltaic Applications CSTEP | Page 84
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