Thursday, July 26, 2012

Shubhranshu Patnaik, Senior Director, Deloitte Touche Tohmatsu India Private Ltd.

With over 4 GW of solar thermal plants likely to be operational globally by 2013, the technical requirements for selecting Phase II solar thermal developers ought to be made more stringent. While tariff-based bidding worked well in development of conventional thermal plants in India, it should not be applied blindly to emerging solar thermal technologies and the process must provide for demonstrating technical qualifications, which go beyond mere letters of support from technology providers. If required, the central government should get the technology proposed be evaluated by a panel of experts or the National Centre of Excellence. A better approach would also be to have specific solar thermal projects developed like Case-2 projects, with substantive preparatory activities undertaken upfront by the government and solar resource data provided to bidders.

The government and MFIs have a significant role to play in building capacity amongst the commercial banks in assessing and financing solar projects. The role of the World Bank and ADB in utilizing their global solar experience in supporting local and foreign commercial banks in India is critical to the success of the program. Three other aspects of JNNSM need to be advanced significantly over the next two quarters. First, demonstration projects under Phase I of JNNSM have to be conceived and awarded quickly, as these are meant to further research and local adaptation of newer technologies and to provide operational data for commercial deployment to happen. Involving Indian PSUs, e.g., NTPC and BHEL and identified technology centres like IIT, Rajasthan and the Solar Energy Centre of MNRE in such pilots is essential to further research, enable dissemination of operational data and to provide for localisation of manufacturing along the value chain.

Second, field measurement of irradiation and mapping of solar resources across the country needs to have been done for at least one full year before Phase II planning commences. Third, the government has to aggressively further the localisation of manufacturing, particularly along the solar thermal value chain. This is intricately linked to the pilot projects, which will determine the preferred technology choices in India for commercialisation and will require greater coordination amongst the ministry of industries and commerce and the user industries of MNRE and MoP to realise the dreams of low cost solar development in the country.