tata bp solar: making energy accessible to all sharing the sun

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BUSINESS Tata Review n March 2012 6 T he problem of inadequate power confronting India is evident across the country, especially in the thousands of villages where electricity remains a distant dream. But there are pockets of light shining brightly, much of it powered by solar energy. In rural Odisha, for instance, solar power has transformed the lives of many villagers — homes are lit and fields are irrigated with solar power, local banks function on solar power and so does the mobile telephone towers that keeps the state’s hinterlands connected. Solar energy has in recent years taken giant strides in India, and leading the race to tap into the vast potential of the sun is the country’s largest solar power company Tata BP Solar. Established as a joint venture between Tata Power and BP, the company is now a wholly owned Tata enterprise. e Indian government launched the Jawaharlal Nehru National Solar Mission (JNNSM) in 2010. With its ambitious objective of producing 22,000MW of solar power by 2020, the mission aims to make India a world leader in solar energy, in terms of deployment, manufacturing, research and development, and job creation. JNNSM intends to reach this target by installing megawatt scale grid-connected plants and rooſtop and small-scale grid-connected solar systems, in addition to off-grid products and projects. Grid-connected plants are, simply put, solar plants where the electricity generated is fed into the national power grid. ese help balance the growing gap between the demand and supply for electricity in the country, while contributing to grid stability by setting off daytime peak demand. Moreover, solar energy is clean from an environmental perspective (each megawatt project can successfully Sharing the sun Through rooftop panels, grid-connected plants and other innovative solutions, Tata BP Solar is doing its bit to change India’s energy landscape Tata BP Solar: Making energy accessible to all

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Page 1: Tata BP Solar: Making energy accessible to all Sharing the sun

BUSINESSBUSINESS

March 2012 n Tata Review 7Tata Review n March 20126

T he problem of inadequate power confronting India is evident across the country, especially in the thousands

of villages where electricity remains a distant dream. But there are pockets of light shining brightly, much of it powered by solar energy.

In rural Odisha, for instance, solar power has transformed the lives of many villagers — homes are lit and fields are irrigated with solar power, local banks function on solar power and so does the mobile

telephone towers that keeps the state’s hinterlands connected.

Solar energy has in recent years taken giant strides in India, and leading the race to tap into the vast potential of the sun is the country’s largest solar power company Tata BP Solar. Established as a joint venture between Tata Power and BP, the company is now a wholly owned Tata enterprise.

The Indian government launched the Jawaharlal Nehru National Solar Mission (JNNSM) in

2010. With its ambitious objective of producing 22,000MW of solar power by 2020, the mission aims to make India a world leader in solar energy, in terms of deployment, manufacturing, research and development, and job creation.

JNNSM intends to reach this target by installing megawatt scale grid-connected plants and rooftop and small-scale grid-connected solar systems, in addition to off-grid products and projects.

Grid-connected plants are, simply put, solar plants where the electricity generated is fed into the national power grid. These help balance the growing gap between the demand and supply for electricity in the country, while contributing to grid stability by setting off daytime peak demand. Moreover, solar energy is clean from an environmental perspective (each megawatt project can successfully

Sharing the sunThrough rooftop panels, grid-connected plants and other innovative solutions, Tata BP Solar is doing its bit to change India’s energy landscape

Tata BP Solar: Making energy accessible to all

Page 2: Tata BP Solar: Making energy accessible to all Sharing the sun

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March 2012 n Tata Review 7Tata Review n March 20126

mitigate about 1,400 tonnes of carbon dioxide every year).

Says K Subramanya, chief executive officer of Tata BP Solar: “We will be able to inject 15 percent of electricity into the national grid by taking the renewable energy route. Also, if implemented well, the solar mission can create more than 350,000 jobs.”

It is estimated that solar plants in India currently produce 150MW of energy, while projects aiming to produce about 500-600MW are under construction and expected to be completed by the end of 2012.

SOAKING UP THE HEATTata BP Solar has executed the largest number of grid-connect projects in India. The company began operations in 1989, manufacturing solar cells; in 1997 it commissioned its first grid-connected solar power plant. This 110kWp plant at Walwan near Pune was also the country’s first grid-connected plant.

Since then, the company has commissioned 42 grid-connected projects. Under JNNSM, Tata BP Solar has executed plants of 7MW and has about 50MW under execution all over the country. In Mulshi, also near Pune, the company has set up (along with Tata Power) a 3MW solar power plant that feeds into the 22kv grid line that provides electricity to nearby villages.

Says Mr Subramanya: “We have electrified more than 500 villages in Chhattisgarh and we were the first to commission a megawatt project under JNNSM, near Tiruchirapalli in Tamil Nadu. Our projects are second to none; they are well engineered and well thought out.”

One of the company’s more innovative efforts is the rooftop project of the Tata Power joint venture with the Delhi government, Tata Power Delhi Distribution (TPDDL), involving a 1MW plant of more than 5,500 photovoltaic panels. This plant feeds directly into TPDDL’s main grid and lights up more than 1,000 homes.

Rooftop projects are popular in Europe, but they are just about

catching on in India. European countries follow the net metering system, where the consumer is paid for the excess electricity produced. As Mr Subramanya explains, “If the net metering policy comes to India, we will see a number of such projects on vacant roofs, which will become wealth creators for the nation.”

Though grid-connect plants form a big chunk of the Tata BP

Innovative solar solutions for sustainable business

The solar waySolar energy is generated by modules that produce electricity. If used off-grid, this electricity is stored in a battery till it is consumed. In a grid-connected megawatt project, the electricity produced is fed to the grid.

The major components of a solar power plant are solar panels on a module mounting structure, combiner boxes, solar inverters, transformers, metering panels and transmission lines. The photovoltaic array in the solar module converts the light of the sun to ‘direct current’, or DC, power. The power generated from each module is combined in the junction combiner boxes and fed to the solar inverter, which converts it to ‘alternating current’ or AC. The output of the inverter is then stepped up to the required grid voltage level of 11, 33 or 66kV and fed to the grid.

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Solar operations, about 25 percent of its business is from products for powering lighting, water pumping, refrigeration, healthcare and similar systems; these products provide access to energy in remote villages far from the national grid.

These power solutions for the consumer segment at the bottom of the pyramid help bridge the development divide and facilitate inclusive growth. As Mr Subramanya likes to put it, “We can build an inclusive society only when we have energy equity.”

To tap this market the company has set up more than 150 dealerships in the widest sales network for solar products and services across India, touching even remote areas in Jammu and Kashmir, Chhattisgarh, the Andamans and Lakshadweep.

INDUSTRY SOLUTIONS Tata BP Solar also offers solar solutions to industry sectors such as telecom, finance, oil and gas, defence and information technology, as also to Indian Railways and healthcare companies.

The energy-to-business vertical accounts for a quarter of Tata BP Solar’s business. The company’s diesel-displacement projects can power more than 350,000 telecom towers across the country and there are opportunities for adding another 350,000 towers soon.

Adds Mr Subramanya: “Even

at today’s costs, solar power is very competitive. Diesel prices can only go up and solar power costs can only come down. It is estimated that there is 6 gigawatt of opportunity in the telecom sector alone in India.”

As the availability of fossil fuels declines, solar energy will become integral to India’s energy infrastructure and energy security planning. And with climate change and carbon mitigation taking centre

stage, alternate energy sources will find their place in the sun.

Having achieved success in India and in neighbouring countries, Tata BP Solar is looking to play a larger role globally by developing partnerships and exploring opportunities in the developed world — in Europe, the Far East and the US.

India alone represents a trillion-dollar opportunity. With abundant sunshine, vast areas of arid land, and enough rooftops, the JNNSM target of 22,000MW is within grasp. “There is only one direction in which we can move and that is to grow,” says Mr Subramanya. ¨

— Vibha Rao

Even at today’s costs, solar power is very competitive. Diesel prices can only go up and solar power costs can only come down... There is only one direction in which we can move and that is to grow. K Subramanya, chief executive officer, Tata BP Solar

Making a mark in Mithapur Tata BP Solar’s 17MW project in Mithapur, Gujarat, is spread over 70 acres of land, equivalent to four cricket fields. The plant uses crystalline silicon technology for its solar panels, with a seasonal tracking system, high-efficiency solar inverters, a compact substation and a SCADA system. It can generate 28.5 million units in its first year of operation and can meet the electricity needs of several villages.