Incentivizing Green Hydrogen in India

The Indian Government recently passed the Green Hydrogen policy, which is aimed at boosting the production to 5 million tonnes by 2030. The whole policy aims at decarbonizing the energy sector and reducing the country’s reliance on fossil fuels and crude oil imports. India is expected to cut its climate emissions to net-zero by 2070. The new policy will offer 25 years of free transmission of power to renewable energy plants that will supply power for green hydrogen production before July 2025. This applies to inter-state transmission as well. The key users of hydrogen and ammonia such as the oil refining, fertilizer, and steel sectors will benefit largely from the government’s Green Hydrogen policy to produce green hydrogen for their own use.

Green Hydrogen

Also, read why Green Hydrogen has become the Next Big Thing in Clean Tech

Further, any surplus renewable energy generated could be stored with discoms for up to 30 days and used later as required. The energy plants that will be set up to produce green hydrogen/ammonia would be given priority for grid connectivity to avoid any procedural delays. Concessions will also be given to power distribution companies that may procure renewable energy to supply green hydrogen producers. However, these will be limited to the cost of procurement, wheeling charges, and a small margin as determined by the state commission. The policy also allows green hydrogen manufacturers to set up their plants in any existing/ upcoming renewable energy parks or manufacturing zones. It also authorizes ports to provide land at applicable charges to green hydrogen/ ammonia producers for setting up bunkers for storage prior to export.

Green Hydrogen as the name suggests is got from using renewable energy and electrolysis of water which involves breaking down water molecules into Hydrogen and Oxygen. Green Hydrogen has been touted as one of the most effective fuels to reduce pollution and emission levels that are generated from heavy industry and transportation sectors. Going forward, the government will also mandate oil refining, fertilizer, and steel companies to procure green hydrogen/ ammonia for meeting a certain proportion of their power requirement. This policy will also support India in making it an export hub for clean fuel. Germany and Japan could be key markets for green hydrogen produced in India. The country is already producing solar and wind energy at cheaper costs when compared to thermal power, and producing hydrogen through RE will become extremely cheap in the future.

Tata Solar is one of the oldest solar manufacturing companies in India. It is a tier 1 bankable module manufacturer with nearly 29 years of history in India. Tata Solar has a presence in industrial, commercial, both on-grid and off-grid solar projects and residential segments. The parent company has a legacy of more than 100 years.

Tata Solar is a Bangalore-based solar energy company with headquarters in Mumbai. The company has its own automated Solar Panel Manufacturing plant and a cell Manufacturing Plant in Bangalore, Karnataka. The manufacturing unit is one of India’s premier integrated solar cell and module manufacturing facility

The company has recently more than doubled its manufacturing capacity to 1100 MW for solar cells and modules. Its current capacities are 530 MW for solar cells with Mono PERC and 580 MW for solar modules with Mono PERC half cut technology. Given its status as a Tier 1 solar company in India, it should benefit from the growing demand for solar products in the country. Tata stands a good chance to gain from the Make in India initiative and the government’s push towards adopting clean energy (such as the PLI scheme).

Product Offering

Tata Solar’s module and cell manufacturing is equipped with market-leading efficiency and offers standard (72 cell) and specialty (2W – 100W) mono and multi modules. The company also offers solar pumps for agricultural purposes, solar microgrids, and Solar RO systems.

The company also has a sound track record of successfully executing large projects such as the 150 MW Ayana at Ananthapur, 50 MW Kasargod at Kerala, 56 MW Greenko, 30 MWp Solar Power Plant in Lapanga, Odisha, 105 MWp of Floating solar at Kayamkulam.

Work Process

  • Tata Solar is the largest producer of clean and green energy (renewables) – Hydro – 693 MW, Solar – 1100 MW, and Wind – 1,032 MW.
  • The company is a large EPC player in the country and has commissioned 1.45 GW of projects.
  • Tata Solar has also executed over 196MW of rooftop and distributed projects in the range of 10 kWp to 100 kWp. 
  • The company has also shipped 1GW of modules globally.

Certifications

  • BIS, CE, UL, TUV, IEC, etc.

Tata Power Solar panels have a range of certifications that are considered to be in line with market standards and appropriate for use in the EU and UK. Tata Solar’s modules are certified i.e. IEC62716 (PID test for 85%/85C for 200 hrs), IEC61701 Salt Mist test (Severity 6), and IEC62804 Ammonia Corrosion test.

Service & Maintenance

How to Buy Tata Solar panels

Tata Power Solar products are available through an extensive network of more than 1000 channel partners present across India and its neighboring countries.

You can find Tata Solar’s Local Authorized Distributor here: https://www.tatapowersolar.com/contact-us/find-a-dealer/

India has an ambitious target of reaching 100GW of solar generation capacity by 2022 but it currently has only 16 GW of annual solar module manufacturing capacity. Out of this only 9-10 GW capacity is operational. India has a huge demand for solar. The country imported $2.16 billion worth of solar photovoltaic (PV) cells, panels, and modules in 2018-19 and $69 million in Q2. India’s solar imports declined by 83% in Q2 2020. Further, imports declined by 77% YoY, in Q3 to just ~$17 million. 

The slowdown in the imports was mainly due to the lockdown as a result of the COVID-19 pandemic from stalled project development activity due to labor and material shortages. China still accounts for the largest share of solar imports to India. To discourage solar imports from neighboring countries especially China, the country will impose customs duties on solar panels to the tune of 40% and 25% on solar cells, as part of the Atmanirbhar Bharat.

Need For PLI in India

India has a huge demand for power. Given the rising level of air pollution and in order to reduce its carbon footprint, the country is aggressively looking towards clean energy sources like solar and wind energy. Due to its green credentials and falling costs, solar technology gained traction in the country. However, India still lacks sufficient manufacturing capacity to cater to this rising demand. The annual solar cell manufacturing capacity is just around 2.5 GW. In order to reduce this gap, the government has come up with a PLI scheme to grant incentives to solar manufacturing companies.

solar panels india

The incentive will be available to Indian as well as foreign companies manufacturing in India. The government plans to offer Rs 4,500 crore for solar modules and Rs 18,100 crore for batteries. The PLI scheme will support and should boost domestic manufacturing, especially for battery and solar cells in India. The government will be working to triple the manufacturing capacity setting up 4000 MW of solar cell manufacturing capacity in India. The Centre has also decided to provide additional incentives to manufacturers using advanced technology like high-efficiency solar modules. The PLI scheme will also create more employment opportunities and reduce the burden on foreign exchequer.

Conclusion

India is 64 GW away from its target 100 GW solar generation capacity by 2022. Hence, there is a huge demand for polysilicon, wafers, cells, and modules in the country. Actual consumption will almost touch 20-30GW per year.  Though India has set up a massive target of installing 100 GW of solar power by 2022, the country still lacks a decent polysilicon manufacturing unit which is the basic raw material for a solar cell. If the Production-Linked Incentive (PLI) Scheme for high efficiency solar PV modules becomes a success, it will enhance India’s manufacturing capabilities and exports, making the country self-reliant.

One of the perennial problems facing the renewable energy sector in India is the paucity of land to develop solar and wind projects. With the worlds’ second-highest population getting unencumbered, land is a difficult proposition for both its infrastructure and industrial sectors. One of the biggest reasons for the delay in the development of solar projects is the availability of land.

solar in desert

Solar parks are a unique concept to India where the land and associated infrastructure is developed in a large park where solar developers can set up their plants. However, given India’s ambition to reach 40% of its overall capacity from the power source to come from RE by 2030, hundreds of gigawatts of wind and solar projects will have to be built over the next decade. Finding land will become tougher and costlier. While all the components of solar projects in recent times have been falling, the cost of land has been increasing as landowners have opportunistically increased the prices of prize land where solar insolation is high and which is near transmission substations.

To solve this land problem, the Indian government is looking at the vast tracts of land near its border with Pakistan to develop massive solar projects. Gujarat and Rajasthan which are the two states bordering Pakistan have thousands of acres of useless land which not only receive high solar insolation but also high winds. This makes them ideal for developing utility-scale solar and wind projects in these areas. The government of India plans to develop almost 30 GW of RE capacity in Gujarat and 20 GW in Rajasthan. Note massive solar power plants and parks are already being developed in the desert state of Rajasthan because of the availability of huge land banks of non-agricultural land in the state which is also blessed with high radiation throughout the year.

Note the government is also moving ahead with developing massive solar power plants in the northern part of the country in the barren areas of Ladakh which recently became a union territory. Besides developing RE capacity, the government also wants to develop these border regions economically which would help meet its strategic objective of weening away the people in these areas from the nefarious designs of its neighbors who may want to foment trouble amongst the locals using the lack of economic opportunities.

India is facing an increasing demand for power thanks to its rising population and consumerism. As such, the government is trying very hard to make the country energy independent. It has set an ambitious renewable energy installation target that will not only reduce the country’s dependence upon grid power but also help to conserve the environment. But, despite huge government support and a large unemployed working force, the country missed the clean energy train. This was because India lacked the sophisticated manufacturing facilities and failed to combat China’s rising global footprint.

We had hoped that the country was on time to catch the EV train as India is poised to become one of the largest EV markets in the world. The government devised meaningful targets and policies in time, to support mass EV adoption in the country. This coupled with rising air pollution levels, especially in leading Indian cities acted as strong tailwinds for EVs in India. However, there is some bad news on the radar. Due to lack of demand, state-run Energy Efficiency Services Ltd (EESL) is planning to curb the sourcing of EVs to less than a third of the 10,000 cars it had originally tendered. EESL had entered into an EV sourcing contract with Tata Motors and Mahindra and Mahindra in September 2017. These EVs were to be used by the government and its agencies, who use approximately 5,00,000 cars in all.

Maruti-Suzuki-Wagon-R-EV

Out of this, only 1500 EVs have been supplied so far, and EESL plans to place a final order of around 3,000 vehicles by March 2020. The original tender had a clause that while 10,000 units were the total allocation, vendors will only manufacture after an increase in demand. Other than a slowdown in passenger vehicle sales, policy changes in Telangana practically reversed the momentum gained so far in the Indian clean energy sector. Other than these, senior government officials refused to use the EVs citing poor performance and low mileage. Under the National Electric Mobility Mission Plan 2020, the government is targeting six million electric and hybrid vehicles in India by 2020. EESL plans to set up more than 1,000 charging stations in India to support these cars.

“I don’t think this EV procurement plan will continue going forward and maybe after March 2020, EESL will close the tender. In the tender it was mentioned that while 10,000 units was the overall allocation, vendors will only manufacture after a demand for the same was raised,” said a person aware of EESL’s strategy.

Source: Live Mint

#SolarForACause

We, at Greenworldinvestor, have always promoted stories where Solar has been used for a social cause. With the rising popularity of solar technology, easy accessibility, and eco-friendly nature, solar has been springing up at many places around. People are looking at installing a solar system, not only because of its environment-friendly nature but also for its improving prices. Rising electricity costs have also acted as a strong tailwind for solar.

Another story, where solar energy will be used to uplift the society has come from Gujarat. The once trailblazer of solar energy has come up with yet another initiative to promote solar power in the state. After the successful launch of SKY solar scheme for farmers, Wind-Solar Hybrid Power Policy and solar power generation schemes for households with terraces, the Gujrat government now looks upon the slum areas for promoting solar. The solar installation at the slum area will not only generate free electricity for the slum dwellers but also help them earn an extra buck. Yes, the government will also pay them for the surplus power that they generate.

solar-india-village1

The government is planning to set up flexible solar panel domes in slums and use empty spaces in these areas to generate electricity. The government will bear the major portion of the installation cost. The slum dwellers will get free access to electricity and also money from the government for the extra power supplied. Both individual, as well as community solar power generation options, will be available. The government is planning to do a pilot run in the slum areas of major cities. If successful, the model could pave the way for a large scale solar adoption and be introduced to the masses. The solar technology has already reached the rural parts of the world in the form of solar light, solar mobile phone chargers and microgrids, especially in areas that are not grid connected. These new installations in the slum areas will not only raise the installation numbers but also prove to be a boon for the slum dwellers who hardly have any access to electricity, let alone free. These installations will go a long way in improving the lifestyles of the individuals by helping them to work and read even when it’s dark.

“The rooftop solar power generation facility is for well-off citizens who have concrete houses with terraces. The state government has decided to extend this facility to slum dwellers as well. The Gujarat government will soon announce a new scheme for slum dwellers who can produce the solar power for their need and can earn revenue by selling surplus power.” a top government official said.

Source: TOI