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Solar Energy Entrepreneurship: Today's Challenges, Tomorrow's Opportunities

Conference Paper · November 2010

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Solar Energy Entrepreneurship: Today’s Challenges, Tomorrow’s Opportunities

K.R.Ranjan1, S.C.Kaushik2, N.L.Panwar2, V.Siva Reddy2

1. Department of Training and Technical Education, Govt. of NCT of Delhi, New Delhi, India

2.Centre for Energy Studies, Indian Institute of Technology Delhi, Hauz Khas, New Delhi
110016, India

1.Tel.+91(98) 71877704; E-mail: kumarrranjan@rediffmail.com

______________________________________________________________________________
Abstract

Renewable energy sources are sustainable and have the potential to meet present and future
global energy demands without inflicting any environmental impacts. The use of renewable
energy sources through solar energy systems not only saves the precious high grade energy, but
also decreases the rate of depletion of fossil fuels. It also improves the nations (world) economy
as investment in the solar energy technologies may cost less than efforts to fulfill the increased
demand of fuel supply in future including the cost of damaging factors of environment. One of
the promising options is proved to be Solar Energy. It has all the potential, not only in providing
most of the heating, cooling and electricity demands of the world, but also to solve the global
environmental problems. All countries in the world receive some solar energy at zero cost.
Lowering the high initial cost of the solar energy systems and popularization/acceptance among
consumers is today’s challenges. There are enormous opportunities in future at all fronts if solar
technologies are promoted. The authors have tried to emphasize in this paper that this will not
happen in a single day. It will take a lot of hard work and commitment from researchers and
policy makers. There is also a need of blending market, social forces and entrepreneurs’
involvement including the need to further update our Energy Policy to maximize and facilitate
the active role of each major player, such as financial institutions, business organizations, non–
governmental organizations, micro-credit organizations, etc.

1. Introduction

Renewable energy sources (RES) has a significant potential to mitigate global climate
change, address regional and local environmental concerns, reduce poverty and increase energy
security leading to energy independence. The challenge is to provide the right policy framework
and financial tools to catalyze private sector investment attracting entrepreneurs at a scale
proportionate to achieve a gigantic uptake of renewable energy.

Among renewable energy sources and technologies, solar energy systems and
technologies hold major promises for meeting the future energy needs of the world. Solar
thermal energy conversion systems like solar water heating, solar distillation, solar ponds, solar
air heaters, solar crop drying, solar kilns, heating of swimming pool by solar energy, solar wax
melter, solar refrigeration and air-conditioning, solar cookers, solar pumping systems, solar
furnace, solar thermal application in energy efficient buildings and solar thermal power plants
have already proved their utilities and have been found suitable for consumers need. Economic
evaluation also suggests that solar thermal systems are financially viable as the payback period is
within their lifetime. Solar photovoltaic (PV) systems and hybrid PV and thermal systems have
attracted a large number of investors and consumers worldwide. The vast opportunities in this
sector have to be utilized by the industrial sector.

2. Indian Economy and Solar Energy

India is growing at an impressive rate of 8.2% and this is likely to continue [1]. Today,
India is the second fastest growing economy in the world. And this strong economic growth
would further drive the demand for energy. It is evident that India’s need for secure, affordable,
and environmentally sustainable energy has become one of the principal economic development
challenges for the country. In this context, the role of solar energy in India has to be seen. There
is no dearth of technical brains and expertise in these areas. The major challenge in utilizing
solar energy for various applications is to develop cheaper methods of collection and storage
along with thermodynamically efficient systems so that high capital cost of the system can be
reduced.

There is urgent need to accelerate the activities of research and development in this area
on technological front. On the other hand, the policies and programmes implemented by the
Government should be made successful to create a large and diversified infrastructure to promote
solar energy technologies in the country including rural areas. Despite many successful
programmes of the Govt. of India, solar energy is still away from rural and remote areas energy
mainstream, lack of innovative models, serving locally, limited financing to defray the high
upfront capital cost of solar energy devices, inability to link solar energy applications for
productive end uses, unfamiliarity of entrepreneurs to structured commercial viable proposals are
somehow the major barriers in mainstreaming solar energy in the urban as well as rural energy
sector.

There is a ray of hope in future as several projects have been successfully implemented
across the country based on solar energy. A number of young technocrats and entrepreneurs
committed to sustainable development have utilized their skills and money for the use in small
business and several urban local issues have also been solved using solar energy technologies.

3. Building Solar India

The launch of the Jawaharlal Nehru National Solar Mission (JNNSM) by the Government
of India has been a historic event for the Indian renewable energy sector. The objective of the
JNNSM, under the brand ‘Solar India’ is to establish India as a global leader in solar energy
field, by creating the policy conditions for its diffusion across the country as quickly as possible.
The mission has set a target of 20000 megawatt (MW) solar power plants and stipulates
implementation and achievement of the target in three phases (first phase up to 2012-13, second
phase for 2013-17, and the third phase for 2017-2022) for various components, including grid-
connected solar power. Today, nearly 1,748 MW power is generated through solar power; i.e. a
low when compared to India’s total demand of almost 1.3 lakh MW every year [1].

The Ministry of New and Renewable Energy (MNRE) has initiated various programmes
in the urban sector for promoting solar water heating systems in homes, hotels, hostels, hospitals,
government buildings (offices, schools, colleges, etc.) and industry; deployment of Solar PV
systems/devices in urban areas for demonstration and awareness creation; establishment of
‘Akshay Urja Shops; design of solar buildings and promoting energy recovery from urban and
industrial waste/biomass to energy projects [9]. A National Star Rating System has also been
developed in association with TERI for raising awareness and promotion of energy efficient
solar/green buildings similar to star ratings (5 stars) of energy efficient electrical energy
consuming appliances framed by the Bureau of Energy Efficiency (BEE).

Government of India, State Government and various agencies are making efforts to aware
consumers as well as investors about the benefits of using renewable energy resources including
solar energy in the light of increasing pollution, affects of global warming due to over
exploitation of fossil fuels for economic development. Recently, India has hosted the Delhi
International Renewable Energy Conference (DIREC 2010) from 27 to 29 October 2010. The
theme was “Up scaling and Mainstreaming Renewables for Energy Security, Climate Change,
and Economic Development”. It was the fourth in the series of global ministerial level
conference on renewable energy (Previous conferences were held at Washington in 2008,
Beijing in 2005, and Bonn in 2004). There was a large number of participation from all over the
world. It was a good opportunity for all those interested in renewable energy development in the
world. Products and technologies of solar energy systems were displayed by the manufacturers
from all over the world in the exhibition halls.

4. Investment and Innovation in Solar Energy

Investment and innovation in solar energy, a key element of any long-term energy
strategy will not occur unless developers, investors and entrepreneurs perceive the industry to be
attractive overtime. Present trend shows that a huge amount of money is being invested in the
solar energy sector. Venture capitalists invested more in solar technologies last year than other
clean technologies, according to the Solar Energy Industries Association. The amount it says was
more than $1.4 billion.

There is an urgent need to attract investors and entrepreneurs. Like wireless revolution in
telecom sector, solar energy systems can be promoted for conversion of solar energy into thermal
energy and electricity for various applications within a few meters range of
production/generation; thus solar energy may be termed as wireless energy [2]. India has the
entrepreneurial talent to develop this wireless energy market.

5. Role of the Solar Energy in the Sustainable Tourism Development in India

The role of electricity and thermal energy generated by solar energy systems even at
higher cost is of incomparable importance in rural and remote areas where electricity is not
available. Children are able to study in the light of solar lantern, community halls are illuminated
by solar PV’s electricity, water is heated by solar water heating systems and lives saving drugs in
hospitals are kept in refrigerators. Solar energy systems designed and developed for these
applications even at higher cost are helping in raising the standards of living in villages. Lots of
job opportunities are generated based on solar energy technologies. It helps in alleviating poverty
of rural masses. Similarly, it has been found that the thermal and photovoltaic solar systems may
contribute to the sustainable tourism development [3] of hilly areas, historical place of remote
villages of India, zoological and botanical parks, tourist places on islands and near sea and rivers,
etc. Consequently, a local economic development is possible. Solar energy can meet the
significant amount of energy need of tourism infrastructure, such as hot water and space heating
in winter and air-conditioning during summer. Solar energy systems and devices can also be
used for water pumping, water cleaning and disinfection, and water desalination which is
important since water scarcity is one of the most significant problems of tourist places. These are
the novel areas for entrepreneurs to invest money and earn money uplifting the social and
economic conditions of general masses in the national interest.

5. Some Case Studies

The Ministry of New and Renewable Energy (Government of India) has compiled some
case studies which have been carefully selected from across the country illustrating utilization of
all available renewable energy resources with a wide range of applications across various
sources. These case studies [1] tell the success stories and persuade many other business
organizations, government agencies, industries, NGOs and entrepreneurs to start innovative
sustainable projects which will contribute a lot in nation building through upliftment of social
and economical conditions of general masses living in remote and rural areas of not only in India
but also in other part of the world. The authors have highlighted some of the successful projects
based on solar energy utilizations.

Solar Thermal Application:

Solar Passive Greenhouse- GERES (Groupe Energies Renouvelables, Environment et

solidarities) had started developing improved Passive Solar Greenhouse ten years back to grow
fresh vegetables and other crops indoors even during winter season, in Ladakh, district of J&K
state which is situated at an altitude of more than 3500 meters above sea level. In winters, the
temperature falls below -5 oC. This climate makes it very difficult to grow fresh vegetables and
other crops under the open sky for almost 09 months in a year leading to unavailability of fresh
vegetables at affordable rate resulting undernourishment of people. With the use of Passive
Solar Greenhouses developed by GERES in collaboration with the Ladakh Environmental Health
Organization (LEHO), Ladakh Ecological Development Group (LEDEG), Leh Nutrition Project
and Skarchen and Spiti Transhimalayan Group/Ecosphere (STAG), the people of Ladakh is
growing a large verities of vegetables including spinach, coriander, garlic, radish, onions, lettuce,
and strawberries in winter. Tomatoes, cucumber, and grapes are grown in autumn. Improved
greenhouses have benefitted the people of Ladakh in different way including good health.
Villagers are able to save on an average Rs.500 to Rs.1000 on vegetable purchase as local grown
fresh vegetables cost less as compared to imported vegetables. The construction cost of a
domestic use improved green house (IGH) is approx. Rs. 30000. Some subsidy is also given for
domestic IGH. IGHs have increased the income of their owners, as they can earn additional
income by selling vegetables and seedlings for cash. Report says that on an average an IGH
owner earns Rs. 8,250 per year by selling excess produce and about 30% increase in their income
levels.

The most revered temple in south India town of Andhra Pradesh, Tirumala Tirupati
Devasthanam (TTD) has gradually been introducing renewable energy. Solar energy is used for
cooking. The solar steam cooking system at the temple canteen uses the Gadhia Solar
Concentrating system for cooking using thermosyphon principle based on the natural convection.
Parabolic dish concentrators are used for generating steam at 08-10 bars, which cooks the food.
The solar cooking system is designed to generate over 4,000 kg of steam a day at 180 0C, which
is sufficient to cook two meals for around 15,000 devotees. Modular in nature, the system
consists of 106 automatic tracked parabolic concentrators arranged in series and parallel, each of
9.2 m2 reflector area. Each unit of concentrators is connected to a central steam pipeline going to
the kitchen. The system is made of indigenous components and the reflectors are of acrylic
mirrors having reflectivity over 75%.The net cost of the system is about Rs.110 lakh (inclusive
of Rs.46.5 lakh subsidy given by the MNRE), which includes back up boiler, utensils and annual
maintenance contract for 05 years. The maximum saving is around 450 litre/day (furnace oil)
adds up to RS. 37, 12,500 and the payback period is only 2 years. Solar cooking system based
on German Technology is also being used successfully in the campus of the international
headquarters of Prajapita Brahma Kumaris Ishwariya Vishwa-Vidyalaya , Mount Abu
(Rajasthan) since the last 15 years.

6. Conclusion and Recommendations

To capture and efficiently utilize the solar energy in today’s energy market requires
multistage integration of several factors, including proper matching of the solar energy resources
and energy demands of a particular region, a means for storing heat, and policy incentives that
encourage the use of solar energy as a renewable energy resource. Since the capital costs of solar
energy systems are high relative to fossil fuels, financial restructuring of energy markets will be
needed to place additional value on the attributes of solar energy over lower priced depleted
fossil energy alternatives.

Although progress continues to be made to lower manufacturing costs, increase collector

performance, increase solar cell efficiency, the relatively high capital costs of solar thermal and
PV systems will continue to require incentives to encourage their widespread use. There is also a
need of blending market, social forces and entrepreneurs’ involvement including the need to
further update our Energy Policy to maximize and facilitate the active role of each major player,
such as financial institutions, business organizations, non–governmental organizations, micro-
credit organizations, etc.

In addition to these more distributed, building- integrated applications, the use of

concentrating solar energy to produce electricity with solar energy towers, parabolic troughs, and
dish-engine concentrating solar power (CSP) technologies has some attractive features that
increase the diversity and security of electric supply sector, alluring investors from all over the
world.
 Solar energy sector will flourish in future, no doubt, if market distortions are removed,
including the restructuring of taxes and phasing out of harmful subsidies. National programmes
have to be established for energy efficiency with the support of the international community. The
authors have strong belief that today’s challenges of solar energy entrepreneurs’ will certainly
become tomorrow’s opportunities in the world.

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Address of the corresponding author:

K.R.Ranjan

Lecturer (Sel. Grade) of Mechanical Engineering,

Aryabhat Polytechnic,

(Deptt. of Training and Technical Education, Govt. of NCT of Delhi)

G.T.K.Road, Delhi-110033.

(India)

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