Indo-ASEAN cooperation touts solar energy as new stimulant for power sector

orging useful partnerships between India and ASEAN member countries to rev up production and

investments in the country's renewable energy (RE) sector was the focal point of the two-day Indo-ASEAN RE

conference, held on November 5 and 6, 2012, wherein industry experts covered relevant topics in 8 technical

sessions.
8One of the presentations that was particularly insightful on the topic of solar power -- the next big thing

in green energy -- was Godawari Green Energy Limited's (GGEL) 'Solar thermal industry in India - developer's

perspective'.
8GGEL, a flagship company of the Hira group of industries in the RE sector, is keen on being the first

developer under phase-I of Jawaharlal Nehru National Solar Mission (JNNSM) to successfully execute a 50 MW

solar thermal plant in Rajasthan.
8This, of course, will not be easy since the company needs to find a cost-effective solution to maintain solar

energy production in spite of frequent dust and sandstorms.
8Deposits of airborne dust can reduce solar power output, and GGEL, so far, has resorted to storage of power

to take care of the variations in Direct Normal Irradiance (DNI), a measure of solar irradiation.
8However, this risk may not pay off for GGEL in the longer run since JNNSM's base load tariff plan does not

incentivize the sale of stored power.

GCEL in its presentation on the solar industry, has clearly stated that financing has been one of the biggest

challenges with regard to the company's 50 MW solar thermal project, and the project cost has soared due to

lack of awareness about Concentrating Solar Thermal Power (CSP) technology and equipment imports.
8Lesser understanding of the solar sector has also led to wastage of a significant amount of time in

evaluating various aspects of the upcoming project, thereby increasing the risk associated with the timeframe

for project completion.
8The financial dilemma can also be attributed to the fact that India's financial institutions are taking time

to open up to the idea of solar power projects and have been cautious in extending monetary support.
8As GGEL has rightly put, "Intent of the Government and its policy was not appreciated by the Lending Banks as

they did not consider CSP Projects viable. Many of them still harbor this doubt."
8As of now, GGEL is planning to commission the plant by May 2013 and has already concluded all the engineering

works at the site.