In Solar Power, India Begins Living Up to Its Own Ambitions
Azure Power has a contract to provide solar-generated electricity to a[n Indiana] state-government electric utility. Inderpreet Wadhwa, Azure’s chief executive, predicted that within a few years solar power would be competitive in price with India’s conventionally generated electricity.
“The efficiency of solar technology will continue to increase, and with the increasing demand in solar energy, cost will continue to decrease,” Mr. Wadhwa said.
Two years ago, Indian policy makers said that by the year 2020 they would drastically increase the nation’s use of solar power from virtually nothing to 20,000 megawatts — enough electricity to power the equivalent of up to 15 million modern American homes during daylight hours when the panels are at their most productive. Many analysts said it could not be done. But, now the doubters are taking back their words.
Dozens of developers like Azure, because of aggressive government subsidies and a large drop in the global price of solar panels, are covering India’s northwestern plains — including this village of 2,000 people — with gleaming solar panels. So far, India uses only about 140 megawatts, including 10 megawatts used by the Azure installation, which can provide enough power to serve a town of 50,000 people, according to the company. But analysts say that the national 20,000 megawatt goal is achievable and that India could reach those numbers even a few years before 2020.
“Prices came down and suddenly things were possible that didn’t seem possible,” said Tobias Engelmeier, managing director of Bridge to India, a research and consulting firm based in New Delhi. Chinese manufacturers like Suntech Power and Yingli Green Energy helped drive the drop in solar panel costs. The firms increased production of the panels and cut costs this year by about 30 percent to 40 percent, to less than $1 a watt.
Developers of solar farms in India, however, have shown a preference for the more advanced, so-called thin-film solar cells offered by suppliers in the United States, Taiwan and Europe. The leading American provider to India is First Solar, based in Tempe, Ariz.
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