It was a worthwhile effort. Heavy industry users are keen to adopt solar power generation and solar thermal (solar water heating and solar steam generation) solutions more than ever before. They now want to see demo projects.
Such interest was received from prospective clients at the end of a 2-hour exclusive seminar that I conducted for them to explain the merits of solar technologies and how these had become cheaper compared to diesel, furnace oil or any other similar fossil fuels.
The other major focus on my presentation was that the energy crisis in India is only going get worse with acute problems affecting coal and gas-based private sector power projects coming up in the country.
I look forward to connecting prospective clients with solution providers in the industry that will boom big time in near foreseeable future.
Friday, February 24, 2012
Wednesday, February 22, 2012
Knocking on the doors of a US$ 14 bn solar business opportunity
REECODE Energy Solutions, a Mumbai-based boutique solar energy consulting firm, has launched a year-long programme to create awareness amongst end-users and industrial users about solar power becoming cheaper than some fossil fuels like diesel and furnace oil in India. This segment of users offers a US$ 14 bn solar business opportunity.
The first of the programme was part of a seminar on green and sustainable architecture with the Indian Institute of Architecture in the city of Nasik in western India.
The second exclusive seminar focussing on cashflow projections comparing cost of diesel and solar energy solutions will be held for the members of Tarapur Industrial Manufacturers' Association and Tarapur Management Association in the industrial township of Tarapur, Boisar in the Thane district of Maharashtra state.
REECODE Energy Solutions seeks to enable large consumers of power, particularly in regions where power shortage compels them to use fossil fuels for power generation and boiler applications, to explore solar energy solutions to bring down their costs and increase productivity at their units.
The firm's CEO Bhupesh Trivedi said that India has over 100,000 industrial users with diesel (or other fuel) gensets having rated capacities of over 100 kva. Now that solar energy solutions have become cheaper, this diesel-offset market creates an opportunity of US$ 14bn for solar solution providers.
End-users continue to largely believe that the capital costs relating to solar solutions are prohibitively expensive. Through the awareness programme and cashflow projections, Bhupesh expects give a greater fillip to the entire solar market.
The first of the programme was part of a seminar on green and sustainable architecture with the Indian Institute of Architecture in the city of Nasik in western India.
The second exclusive seminar focussing on cashflow projections comparing cost of diesel and solar energy solutions will be held for the members of Tarapur Industrial Manufacturers' Association and Tarapur Management Association in the industrial township of Tarapur, Boisar in the Thane district of Maharashtra state.
REECODE Energy Solutions seeks to enable large consumers of power, particularly in regions where power shortage compels them to use fossil fuels for power generation and boiler applications, to explore solar energy solutions to bring down their costs and increase productivity at their units.
The firm's CEO Bhupesh Trivedi said that India has over 100,000 industrial users with diesel (or other fuel) gensets having rated capacities of over 100 kva. Now that solar energy solutions have become cheaper, this diesel-offset market creates an opportunity of US$ 14bn for solar solution providers.
End-users continue to largely believe that the capital costs relating to solar solutions are prohibitively expensive. Through the awareness programme and cashflow projections, Bhupesh expects give a greater fillip to the entire solar market.
Wednesday, December 14, 2011
Solar Power Becomes Cheaper than Diesel in India
Solairedirect, France's second largest solar power company, made a game-changing bid to supply solar power to India's national power grid at Rs7.49 (US$0.14) per unit (kWh). This rate is now better than the average cost of power generated by diesel generators, which is about Rs 13 (US$0.25) per unit.
While this is good news for solar power consultants and EPC contractors, it poses a major threat to the Rs122 billion (US$2.32 billion) diesel generator industry in India. The news comes at a particularly crucial time for the diesel generator market as it places larger bets on opportunities from India’s ever-growing power demand-supply gap.
Some market players question the logic behind the Solairedirect bid price and its profitability. The lowest bid, though, does not appear to be a dangerous figure when compared to other successful bids in the Rs8.00 to Rs8.28 range. Four companies offered these bids for seven projects, totaling a proposed capacity of 115 MW, under Batch 2, Phase 1 of the Jawaharlal Nehru National Solar Mission (JNNSM). The JNNSM consists of two bidding batches for 1,000 MW of solar power capacity. It seeks to make allocations for a total of 20,000 MW over the next 10 years. These new benchmarks are expected to make solar power cheaper than all other forms of power in the next two years.
Some analysts were skeptical of the Rs10.95 (US$0.21) per unit bid during the Batch 1 bidding process about one year ago. Analysts argue that several successful bidders from Batch 1 had not met financial projections and feared the projects would fail to see the light of the day. To add to the skepticism, mixed reactions kept pouring in over the availability of land, locally manufactured modules and other technological issues.
Whether or not these concerns hold true, this new benchmark will push India to solve other major issues such as pollution and high diesel generator costs. Even if solar rates reach Rs10 per unit, the higher rate would still appear cheaper compared to the rising high cost of diesel and the incremental maintenance costs associated with diesel generators.
The diesel generator industry will not be the only sector that experiences heat — this solar trend threatens all scheduled mega thermal power projects.
While this is good news for solar power consultants and EPC contractors, it poses a major threat to the Rs122 billion (US$2.32 billion) diesel generator industry in India. The news comes at a particularly crucial time for the diesel generator market as it places larger bets on opportunities from India’s ever-growing power demand-supply gap.
Some market players question the logic behind the Solairedirect bid price and its profitability. The lowest bid, though, does not appear to be a dangerous figure when compared to other successful bids in the Rs8.00 to Rs8.28 range. Four companies offered these bids for seven projects, totaling a proposed capacity of 115 MW, under Batch 2, Phase 1 of the Jawaharlal Nehru National Solar Mission (JNNSM). The JNNSM consists of two bidding batches for 1,000 MW of solar power capacity. It seeks to make allocations for a total of 20,000 MW over the next 10 years. These new benchmarks are expected to make solar power cheaper than all other forms of power in the next two years.
Some analysts were skeptical of the Rs10.95 (US$0.21) per unit bid during the Batch 1 bidding process about one year ago. Analysts argue that several successful bidders from Batch 1 had not met financial projections and feared the projects would fail to see the light of the day. To add to the skepticism, mixed reactions kept pouring in over the availability of land, locally manufactured modules and other technological issues.
Whether or not these concerns hold true, this new benchmark will push India to solve other major issues such as pollution and high diesel generator costs. Even if solar rates reach Rs10 per unit, the higher rate would still appear cheaper compared to the rising high cost of diesel and the incremental maintenance costs associated with diesel generators.
The diesel generator industry will not be the only sector that experiences heat — this solar trend threatens all scheduled mega thermal power projects.
Subscribe to:
Posts (Atom)