“We are looking at very innovative model combined with its technical innovation to reduce the cost of electricity,” states Arul Shanmugasundaram, Executive VP – Projects and CTO, Tata Power Solar
Tata Power Solar having 25 years of experience offers its experience, expertise and longevity to support the products that makes difference to a consumer’s life. The company continues to drive innovative business models that will reduce the cost of energy. In an exclusive interview with EPR, Arul Shanmugasundaram shares how Tata Power Solar is innovating by introducing highly energy efficient products.
India and solar powerCurrently, India’s global solar share is very low. India has about 2.8GW of solar electricity installed, but the new government is striving hard and plans to install 100 GW of solar energy by 2022. With the government’s support, India will not face any issues related to solar power generation for the next 5-7 years. There is growth of at least 10 crore, if not more.
Tata Power Solar at present market scenarioAs per the market projections, there are few segments that are expected to grow significantly, except large-scale EPC projects. On the consumer side, small rooftop installation projects and solar water pumps segments are expected to grow in the next 5-7 years. Tata Power Solar is planning to focus on large EPC projects, rooftop installations and pumps. These are the three major areas that are poised for significant growth in India.
Attracting more private sector participationThe Indian power sector has had its set of issues — be it for project approvals, environmental approvals, timeline for setting up the projects, or getting delayed due to various issues. Once people set up these projects and start selling the generated power, they have issues related to obtaining payments. Mostly, the companies are bank corrupt or struggling with monetary issues, and they are not able to make payments on time. In such scenario, it is quite difficult; there should be some level of market ways of compensation for power generation. It should be realistic and attractive like market-based remuneration for the generated power as well as the payments. Unless both these things happen, the project cannot be done in a timely manner. In solar, this has not been a major issue so far in the country. About 95 per cent of the solar projects have been built on time. Quick implementation of the projects is one of the advantages of solar.
Smart missionShanmugasundaram observes, a true Indian would like to see cities that have all the amenities and are not just wireless mobile access and everything. One of the main things that the smart cities initiative focuses is not just on mobile, digital access and energy but also sustainability. From a smart cities point of initiative, it is a good effort. The government will make significant progress in this aspect.
In terms of “Make in India”, it is important that the government should support the domestic manufacturers. Not in terms of an anti-dumping treaty but to express their commitment in domestic manufacturing sector. Initial steps are encouraging from solar sectors perspective, and Tata Power Solar hopes the government stays with the commitment. In terms of labour, India has got a lot of advantages along with cost of capital.
