Solar power industry gears up to meet demand

Hyderabad: Enthused by the positive outcome from the Paris climate summit, the solar photovoltaics (SPV) manufactures in both Andhra Pradesh and Telangana states are poised to scale up their capacities to meet the anticipated growth in demand.

According to industry sources, Telangana has about 300 MW SPV manufacturing capacity and a similar capacity also exists in Andhra Pradesh. The sources say that the SPV manufacturing capacity is expected to be doubled in both the states in coming months.

“We are expecting an annualised growth of about 30 per cent in the next five years,” said Narendra Surana, Director, Surana Telecom and Power, adding that the solar power growth will further increase in the coming months following the thrust given by the Centre and state governments.

For instance, the Surana group is planning to add another 40 MW capacity, reveals Surana. Each megawatt will cost about Rs 1 crore, he said. At present, the company has SPV manufacturing capacity of about 120 MW.

Further, both the states together account for about 1,500 MW solar power generation capacity and in the next few months it will increases by three times once the new projects, for which the tenders finalised, start generating power.

On land availability, another SPV manufacturer, N Suneel, who owns production facilities in both the states say there is no constraint for land as the solar panels will be erected on a barren land, which is not been used for agriculture. As per the benchmark estimate, 1 MW requires about one acre land, he said.

“We have enough barren land available in districts like Anantapur, Chittoor, Prakasam, Mahbubnagar, Adilabad etc.” says Suneel, pointing out that the people who are planning to set up solar farms are already venturing to buy lands in these districts.

Suneel’s company, Sunmaxolar Energy, operates a third party solar farm in Warangal district. On the funding, which is the main constraint, MA Khader, CEO, Kapil Power says, obtaining finances for the solar farm is a difficult task, as most of the banks are reluctant to fund the power sector worried over rising of NPA levels.

Solar power industry gears up to meet demand Continued from P1 Even if the banks come forward to fund projects, the interest rates are high at 12 to 13 per cent, compared to foreign funds charge rates below 3 per cent. Suneel who agrees the view of Khader feels that, as the governments are looking to enhance the generation capacities by setting up solar parks, the industry is expecting some relief in terms of interest rates.

The Central government had come out with a solar policy aiming to establish 100,000 megawatts by 2022, earmarking 40 per cent to rooftop installations, and remaining targeting medium and large grid-connected projects, which entailing an investment of Rs 6 lakh crore. Blessing in disguise for the industry would be the drastic fall in the project costs.

While in 2008, the 1 MW solar power projects costs about Rs 15 crore, which is not costs only Rs 6 crore. Hence, the officials are confident that private investors will now enter the sector in a big-way taking cue from government push.

By KVVV Charya