Utpal Bhaskar India needs as much as $200 billion to meet its target to install 100GW of solar power and 60,000MW of wind power by 2022. Photo: AP NTPC Ltd is exploring options to manufacture solar equipment as part of the state-owned power producerâs strategy to be present across the green energy value chain. To start with, Indiaâs largest power generator is evaluating a plan to set up a 1,000-megawatt (MW) per annum manufacturing capacity, which may require an investment of Rs.5,000 crore. The plan stems from the fact that NTPC has to set up 10,000 MW of solar power capacity on its own, along with buying 15,000MW from solar project developers, on behalf of the ministry of new and renewable energy. âWe are evaluating the opportunity. We want to be present across the value chainâfrom polysilicon to solar panels. We have the money, and the present costs can be reduced. Silicon and quartz are available in abundance in the eastern part of India. A presentation on the subject has been made,â said an NTPC executive, requesting anonymity. The plan is at a preliminary stage. There has been considerable interest in the solar-equipment manufacturing space in India, with US-based SunEdison Inc. announcing its plans to establish a joint venture (JV) with Adani Enterprises Ltd to build a solar, photovoltaic manufacturing facility in India at an investment of about $4 billion. US-based First Solar Inc. and Chinaâs Trina Solar are among companies that are considering plans to set up manufacturing facilities in India. With an installed capacity of 45,048MW, NTPC has around a 17% share of Indiaâs power- generation capacity of 272,593MW, and has set itself a target of becoming a 128,000MW power producer by 2032. It plans to raise the contribution of renewable energy to 28% of its planned capacity by then. âIt is the right time to go for manufacturing. We have a large solar power generation commitment on ourselves. Also, in due course, NTPC has the target to reduce its dependence on fossil fuel sources,â said the executive cited earlier. âWith a focus on renewable, solar is a viable solution.â The government has pushed renewable energy to the top of its energy security agenda and is looking to provide green power at less than Rs.4.50 a unit. While the current installation cost of a solar project is around Rs.6 crore per MW, economies of scale are expected to drive down the cost to Rs.4.5 crore per MW. India needs as much as $200 billion (Rs.12.75 trillion) to meet its target to install 100GW of solar power and 60,000MW of wind power by 2022. Analysts expect solar power tariffs to fall. âSolar power is likely to become cheaper than, or equivalent to, conventional thermal energy prices over the next two to three years and reach Rs.4-4.5/kWh by FY18,â India Ratings and Research, the domestic arm of Fitch Ratings, said in a 22 July report. âThis will be driven by a decline in capital costs (solar modules and other balance of plant), an increase in efficiency, a shift towards large solar photovoltaic projects, leading to the economies of scale and lower return expectations by developers,â the report added. Queries emailed to spokespersons of NTPC, ministry of new and renewable energy, SunEdison and Adani remained unanswered till press time. The emphasis on solar and wind power is also expected to strengthen Indiaâs standing at global climate change negotiations that culminate in a summit in Paris in December. The governmentâs focus on renewable energy is aimed to minimize Indiaâs dependence on coal- fuelled electricity. While there has been a growing interest from overseas and domestic investors in the Indian renewable-energy space, concerns are being raised over its viability in the backdrop of state electricity boards (SEBs) increasingly showing a reluctance to buy power on account of their poor financial health. With a debt of Rs.3.04 trillion and losses of Rs.2.52 trillion, SEBs are on the brink of financial collapse. Russiaâs OAO Rosneft, the worldâs largest publicly traded oil company, is exploring a huge investment in solar energy in India, Mint reported on 14 July. Also, SoftBank Corp., with Bharti Enterprises Ltd and Foxconn Technology Group of Taiwan, in June proposed to invest at least $20 billion in solar energy projects in India 1. Dadri Solar PV Uttar Pradesh 5 2. Port blair Solar PV Andaman & Nicobar Island 5 3. Ramagundam Solar PV (Phase -I) Telangana 10 4. Talcher Kaniha Solar PV Odisha 10 5. Faridabad Solar PV Haryana 5 6. Unchahar Solar PV Uttar Pradesh 10 7. Rajgarh Solar PV Madhya Pradesh 50 8. Singrauli Solar PV Uttar Pradesh 15 Total 110 Renewable Energy NTPC/2015- 16/NSM/TI/TEL 13/11/2015 Work Contract Selection of Solar Power Developers for Setting up Solar PV Power Projects of 50MW (10MWX5 Projects) capacity under DCR category-Non Solar Park and 350MW (10MWX35 Projects) under OPEN category- Non Solar Park in the State of Telangana under National Solar Mission (NSM) Phase- II, Batch- II,Tranche-I Renewable Energy RE-CS-5712- 004-9(R) 28/9/2015 Work Contract DEVELOPMENT OF 750 MW( 6x125 MW EACH ) Solar PHOTOVOLTAIC POWER PROJECT (PHASE-II) AT ANANTPUR IN ANDHRA PRADESH INDIA Renewable Energy NTPC/2015- 16/NSM/TI/NSP- UP/06 17/9/2015 Work Contract Selection of Solar Power Developers for Setting up Solar PV Power Projects (10MW x 10 Projects) in Uttar Pradesh under National Solar Mission (NSM) Phase-II, Batch-II, Tranche- I Renewable Energy 40042422 17/8/2015 Equipment Supply & Erection H T CABLES PACKAGE FOR SOLAR PV POWER PROJECT PHASE-I (250MW) IN ANANTAPUR Renewable Energy RE-CS-0000- 003-9 7/8/2015 Miscellaneous (Others) EXPRESSION OF INTEREST FOR PREPARATION OF DPR FOR DEVELOPMENT OF WIND POWER PROJECTS AT NTPC STATIONS IN INDIA