The Government of India has recently announced its intention to develop 25,000 MW of solar power through 25 Nos. solar parks i.e., @1,000MW in each park, across the country and announced incentives to the states willing to develop the parks. The government aimed to utilize the large tracts of unusable land available in the country while promoting clean energy and giving big boost to the solar industry in the country. The Govt. intends to extend grant of Rs 20 Lakh/MW from National Clean Energy Fund to meet the part of expenses required for development of infrastructure required for solar park.
At the same time, the Government has also issued fresh guidelines for extending capital subsidy to promote small solar installations in the homes, institutions and pumping schemes. While doing so, the government has made eligible the mini grid connected solar power projects for agriculture and pumping purpose, for capital subsidy. We may now look
at the issues involved in adopting the above programmes for the benefit of people.
Solar Parks
The primary requirement for solar power projects is requirement of huge land. It requires 2 Hectares/MW compared to 0.25 to 0.4 Hectares/MW of thermal power projects. The gestation period is also less (say 6-8 months) compared to 5 years for thermal & other projects. The technology involved is simple and easy to design the required capacity and instal the solar plants. Because of downward trend in the cost of equipment and increasing cost of thermal projects associated with non-availabillity of coal, etc it will be a tempting proposal to set up solar power projects wherever the large tracts of unusable and cheap land available. However the associated issues need to be critically examined.
- Cost of Development of evacuation infrastructure: The large solar parks require huge investments, more than Rs 2 Cr/ MW, for development of transmission evacuation infrastructure. This will add cost of service to the consumers.
- Right of Way issues: Now-a-days, laying of electrical lines is becoming huge task and many lines are hold or half way hold, by transmission companies for the increased right of way issues. There is tremendous stress on the land use due to increase in developmental activities and economic growth. At the same time, majority farmers in country are holding less than 1 Hectare, which is their livelihood and they oppose vehemently for laying of transmission lines, as to eke their bread and butter. This is happening in spite of the fact that the transmission companies are still exercising powers delegated under Telegraph Act, 1885 and the other stakeholders are not aware of the legal position after enactment of Electricity Act, 2003 and Electricity Rules, 2006. According to new position, the transmission companies need to follow the procedure laid down viz., obtaining the consent of the land owners, pay the compensation, etc before proceeding with the laying of lines. They also need to follow the procedures stipulated in new Land Acquisition Act, 2014 for acquisition of usage rights and compensation. It may thus become more difficult for the transmission companies to complete the new lines in future.
- Land acquisition: Though the huge government lands are available at most of the places in the country, they are not on contiguous. Some parts were given away to the people by the previous governments for usage of land with a right to take back. However, taking back is a difficult task after many years of land use by them and may become a hurdle in ensuring contiguous land for development of solar parks in time.
While increasing the cost of power generated by the solar project, the above issues vitiate the very important comfort of the solar project i.e., short gestation period and distributed generation.
Mini Solar Projects
The issues associated with mini grid solar projects are:
- Cost/MW: There will be increase in installed cost/MW in respect of small or mini solar projects. However, the increase may be little, about 5-10%, when compared to large size plants.
- O&M cost: There may be slight increase in operation and maintenance cost of plant.
- However, the following advantages will nullify the increased cost on the above account.
- Huge land bank is not necessary
- Line losses will be reduced drastically
- Improved reliability of power to the tail end consumers connected to LT network.
- The investment on transmission and distribution network an account of maga solar parks can be saved and can be used in other way to encourage roof top or mini plants.
Wayforward
Therefore, it is suggested that the development of mini/small solar projects at load points i.e., projects connected to the sub-stations is a viable option for immediate development of solar power in the country. The states may adopt various methods like,
- The estimated cost on development of solar parks may be offered to the solar power developers as viability gap funding or as an incentive for early completion of the small projects.
- The incentives offered by the central government for grid connected mini solar plants for agriculture or pumping purpose may be utilized by the states by suitably devising the schemes. The states may adopt to develop small solar projects exclusively for meeting the requirements of the farmers.
- The agriculture connections may be installed with prepaid meters with timer facility and the present system of extending power for free/ nominal charges can be continued. This will also avoid huge cost on account of feeder separation being adopted by many states.
- Distributed generation is ideal option for renewable energy, particularly solar. The rooftops of parking places, market yards, FCI godowns, industry roof tops, park boundaries, departmental stores, etc can be utilized effectively for development of solar power suitably modifying the present policy for encouraging all stake holders which ultimately beneficial to all.
- huge bank of land identified for solar park may be developed as farming ventures by taking up in a big way involving corporate to experiment all kinds of latest technology in agriculture which will boost up food production in the country and increases our GDP and food security.
- All steps may be initiated to reduce the cost of domestic solar industry to promote indigenous production and reduce the project cost.
- Considering the optimal usage of capital invested, the solar operated pumpsets may be limited to the areas, where grid connectivity is not available.
- Use of solar power shall be mandated in remote locations and stand alone areas.
