Business Sense in investing in Rajasthan
One of the reasons why it makes business sense to invest in Rajasthan in Solar energy sector is because this state is experiencing a transition to low carbon, more resource efficient economy with increasing share of solar energy in its generation portfolio. In Rajasthan, the installed capacity for power generation was 8.5 GW. Thermal power plants in India form a major portion of the installed capacity of Rajasthan. More than 88 per cent of the power in the thermal segment is generated through coal-fired power plants in India. The generation mix of the power sector in Rajasthan has changed significantly in the last ten years.
But what makes Rajasthan an attractive for solar component manufacturing are high solar insulations, upcoming solar parks and large land parcels, huge end market for solar generation, large supplier base, rich mineral wealth, competitive manpower cost, supportive govt and incentive packages for large investments.
Considering the strength and opportunities, the Government of Rajasthan has taken many steps in this sector, one of which is announcement of Solar Energy Policy 2011. The main objectives of this policy are promoting & setting up of private sector solar projects and achieving maximum production of solar energy under Jawaharlal Nehru Mission.
The chief minister also outlined that under this policy solar parks of 1000 megawatts capacity will be set up in Jodhpur, Jaisalmer, Bikaner and Barmer. To attract global investments, Govt of Rajasthan will provide necessary infrastructure and regulatory and other support. Solar parks shall consists of various zones for specific activities viz, manufacturing, R & D, training and other amenities. The department of Energy has identified 10,000 hectares of land for setting up solar park in Badala at Jodhpur of which 1000 hectares has been identified for solar manufacturing.
Rajasthan’s competitive advantage lies in its large existing supplier base spread across sector such as glass and mirror, cement, steel, iron, salt etc. which are critical raw materials for manufacturing solar components especially for Solar CSP technology.
Mr. Deepak Puri, Co-Chairman, CII National Committee on Renewable Energy & Chairman, Moser Baer Ltd pointed out that India receives 70% more solar radiation than Germany, the world leader in solar power. However solar power currently accounts for only 0.5% of total power generated in the country. Pointing out that 60% of rural households in India do not have access to electricity he urged for innovative models such as Pay per use and community charging to make solar energy in Rajasthan popular and available to all. It would be interesting to see how Govt of Rajasthan cash in on this opportunity. The state certainly will have to become hub for some of the best solar power plants in India to succeed in solar power race.
