Global warming can increase power prices in India

Last week I had an opportunity to visit Mr.Vyas, Director-Solar at International Marketing Corporation.

We had a good discussion on the current state of climate change being experienced in India.

 

We did touch upon the fact that this year India has experienced a longer winter; compared to previous years. Though nobody is complaining; this does show the impact of global warming. 

 

Following the long winter; is the expected long and much hotter summer. This will surely further increase the peak power demand everywhere in India.

 

Taking into account; the coal supply issues, the deficit in electricity to meet daily demands and the increasing diesel prices; we can surely expect the prices to further increase to meet the current peak demand.

 

This, along with increasing diesel prices, can be good news for solar in India.

 

Maybe the metros will be spared of power cuts; but smaller towns will not escape the heat.

 

Another Twist to the Story

With solar modules from outside India taking up most of the pie with on-grid projects, the reasons above can be a game changer for solar manufacturers in India. Ofcourse there are other factors which will come into play such as location, current awareness of solar off-grid in the particular area, etc.

 

One thing that was quite an eye-opener; during the discussion with Mr.Vyas,  was the fact that Indian manufacturers were supplying solar modules to the European market before the announcement of JNNSM. This resulted in a small but existing market for solar equipment companies in India.

 

What JNNSM was supposed to do; was increase the role of Indian solar manufacturers. This would also have resulted in a much bigger market for solar equipment companies. But infact the opposite has happened.

 

After JNNSM, the Indian solar manufacturers have lost market share. Global solar equipment companies who started coming to India in 2009 have now stopped focusing in India. They are waiting for the right impetus to restart their sales & marketing efforts in India.

 

A good example of how global warming is impacting common man.

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One Response to Global warming can increase power prices in India

  1. If the promoters resort only to get IPO benefits, instead of supplying cells and panels at cheap price, then, why JNNSM has to be blamed?? Indian Electronics market has always been expensive, short of innovative and energy efficiency, less reliability. So, we need good promoters with knowledge with core competency in Engineering field and not from Breweries, potato chips or Jewellery or Stock market money maker back ground. We used to blame a BA or BCom or Home Science graduate who becomes IAS was made MD of Engineering Industries, without the knowledge of E of Engineering (viz Steel plants, cement plants etc including Bread making Bakery or Milk producing units), but, used to do execute local politician’s command to recruit, entertainment or siphoning etc. Now, many such irrelevant promoters, have had become greedy to invest in Solar or such high tech manufacturing, only to get IPO share listing benefits….. so, what to do?? Eco system or Corporate governance is not in good shape in INDIA…..

    We were hearing shortage of power and hence, many states (read as politicians + Burocracy) were buying power at Rs. 10 to 13/kwh during peak summer, when, their friends thermal units (in other states) were producing at Rs. 3/kwh. Now, you are giving another justification tool as Global warming, good, let our bill go up, instead of promoting small entrepreneurs, who can own 25 MW solar PV in every taluka with interest subsidy and 95% debt fund to bring down such illogical favours to their friends company through Open Access mechanism…. many Steel plants diverted the Coal allotted to them to produce power and made three times money during this stage, but, no penalties, because of FRIENDSHIP !!

    Like

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