Three Ways to Ensure India's Bright Solar Future

India's solar energy installed capacity has swelled from practically nothing to more than 2 GW in the three years since the creation of the Jawaharlal Nehru National Solar Mission Phase 1 (JNNSM). Impressively, costs have come down rapidly (to roughly $0.12/kWh for solar PV, and $0.21/kWh for CSP) to be competitive with grid-connected solar PV in many other regions.A new World Bank report points to three ways that future phases can build on that beginning

Public funding. Financing for solar projects under Phase I of the JNNSM were from export credit agencies, multilateral financial institutions, nonbanking financial institutions — but "it is inconceivable for JNNSM to scale up to the levels envisaged under subsequent phases and beyond without the active participation of scheduled commercial banks," the report asserts. As unallocated resources dwindle and unit costs of solar power rise, commercial banks that already back most infrastructure lending must be tapped and the government must develop methods to reduce risk, such as subordinated public finance. Look for "a huge scaling up of financing requirement" with Phase II of JNNSM to add another 3.6 GW of capacity, nearly double that capacity (6.4 GW) potentially developed by individual states requiring even more financing.

Cluster-based project development. Publicly developed infrastructure such as solar parks will help build up infrastructure (power transmission, roads and water) and employment, while increasing efficiencies and lowering costs, according to the report. One such park in Gujarat (Charanka, Patan district) is already the largest in Asia; an even bigger one is being planned in Rajasthan (Bhadla, Jodhpur district).

Specific solar manufacturing niches. Part of what's holding India back is a lack of solar supply infrastructure, from natural resources for raw materials to technologies that aren't already patent-protected. A domestic content requirement hasn't and likely won't help local c-Si manufacturing. "India should develop its manufacturing capabilities in specific parts of the value chain where it enjoys a comparative advantage and can emerge as a globally competitive producer," such as solar thermal, which the report authors point out "holds with more established industries in India, such as automotive, glass, metal, chemicals, power equipment, process heat, and construction."

For more please renewableenergyworld.com
 http://www.solarreviews.com/news/solar-popularity-massachusetts-grows-121913/