Mar/Apr preview: India's solar sunrise

Mar/Apr preview: India's solar sunrise India is one of the sun's most favoured nations, blessed with about 5000 TWh of solar insoluation every year. A favourable renewable energy policy could create millions of jobs and an economic stimulus of at least US$1 trillion, and perhaps much more if all indirect economic (ripple) effects are included. Solar energy is a win-win for India and the environment, and India should make solar energy a mainstream component of its energy diversification. This back-up power could be offered by solar energy. India could lead the world by embracing the power of the sun, if smart business models and favourable policies are developed and implemented nationwide as quickly as possible. Despite the worldwide recession, the solar photovoltaic (PV) industry has demonstrated unprecedented growth over the past years, with increased demand for solar power attracting more and more players into the market. "India is the Saudi Arabia of renewable energy sources and if properly utilised, India can realise its place in the world as a great power," Rifkin says. This is making solar technology more competitive with traditional energy sources. The Indian Government should therefore embrace favourable tax structures and consider providing financial resources to fund projects such as community solar farms as part of their energy development programmes. Because India has so many black-outs, many factories and households use emergency diesel generators as back-ups. India should reap the benefits of this golden opportunity because solar energy has particular relevance in remote and rural areas, where around 289 million people live without access to electricity. Solar has the potential to transform the Indian economy in the same way as the information technology (IT) and auto industry transformed the Indian economy in the 1990s. This has made the business case for solar more compelling because solar PV has, in some parts of the world, already reached grid parity, and it will soon be below the US$1/W cost target for most of the world sometime this year. India has tremendous energy needs and an increasing difficulty in meeting those requirements through traditional means of power generation. The Indian economy faces increasing challenges because energy supply is struggling to keep pace with demand, and there are energy shortages of 10-13% daily almost everywhere in the country. India could become the Saudi Arabia of solar energy. Renewable energy is an attractive investment because it will provide long-term economic growth for the country. If houses in villages and cities produce energy from solar power and then sell it to distribution companies, this could, for example, give a level-playing field to rural areas in terms of industrialisation. Mar/Apr preview: India's solar sunrise Trade News selected by Local Linkup on 06/04/2012