Mad Rush for Solar

 

Everyone around the world is talking solar. Solar photovoltaic, thin film solar and other solar technologies. Few years back it was wind. Government all across the world are giving generous grants to companies that are setting up solar power plants.

India also started its solar mission where it is offering Rs17 (USD 0.35) per kWh for generation. And it wish to set up 10,000 MW capacity. Government is collecting this money by levying surcharge on coal and gas. The strategy looks nice on paper. You are charging surcharge on fossil fuels to encourage renewable energy sources. Everyone will think that is great strategy and government is doing an excellent job.

I beg to differ. You can “encourage” in many ways. Giving incentive to generate power is the most bad way to do it. What is going to happen is Companies are going to set up 100 MW projects, get into 25 year power purchase agreements and then sit back and relax. Half of the companies who have dived into the scheme are just opportunity hunters, looking to take advantage of price difference. As many companies start their solar plants what is India going to get is huge amount of power generation capacity of old soon to be outdated technology.  Renewable energy sector is changing rapidly and today’s impressive technology can be obsolete within few years. The proper approach is to incentive technology developers and equipment manufacturers and not power producers.

For example Currently to set up a 1 MW solar power plant Rs 15 Crore (USD 3.4 million) are needed. instead of giving grant to power producer Govt. can give grant to make equipment cheaper. This will encourage competition and developers will get choice of many technologies. Also you will not be acting against market to setup a market.

Such approach will allow innovation and will develop new technologies. According to me giving grants to old technology is the last thing to do. Considering speed at which Govt. approves projects, banks provide loans and problems faced in land acquisition, the technology selected to set up a plant will be old by the time developer passes all the hurdles. Throwing cash at problem such as global warming is not going to solve it. To solve such problems you need innovation and cutting edge technology. I fail to understand how current solar incentive schemes used all across world are going to achieve that.

 

Signing off

Nikhil Parchure

Identity

India is growing fast. Consumer demand is growing and businesses are doing good. But I  see a problem. We are not finding our identity. We are not finding something that only we can have.

I will like to take example of cars. We are driving Honda, Toyota, Volkswagen, Suzuki, Fiat, Tata, Mahindra but all these cars are having designs which are European or Japanese. Where is the Indian design. You may get confused by the statement above. Let me explain.

When you say Japanese car Toyota Corolla or Honda City comes to mind. When you say European car Volkswagen comes to mind.

What comes to mind when we say Indian Car.

Yes Old Ambassador. I think though it was not originally designed in India this car truly symbolizes India in Car industry. I am very disappointed that no car after ambassador was having such Indian stamp on it. All cars were inspired by European or Japanese models and reconfigured to Indian conditions. 

Now take case of US. When you say vehicle for US market what comes to mind.

Yes true a big truck.

I want India to find its Identity. I took example of Auto industry as I saw example readily available. Unless you find your identity you will not be a leader in world. You can not be unique and important.

I think Indian businesses should start creating their own identity otherwise it will be difficult to grow and survive. I am thinking about how we can be different and yet successful. I will post my views about that shortly.

Disclaimer : The car pictures are taken from manufacturer or related websites and brands visible are owned by manufacturers. The pictures are not intended to promote or comment about quality of the product and are only used to help reader visualize the idea.

Signing off

Nikhil Parchure