Solar Discussion-i

Refresher Training Course on Thermal and Photovoltaic Applications of Solar Energy Preliminary Inputs for Discussion Session-I

Tara C. Kandpal

Centre for Energy Studies Indian Institute of Technology Delhi Hauz khas, New Delhi -

Tentative List of Issues for Discussion •

Potential End Uses and Their Prioritization

•

Niche Areas of Each Identified End-Use

•

Maximum Utilization Potential

•

Barriers (Causal factors) to Dissemination

•

Incentives for Enhanced Dissemination

•

Policy Measures (what?, how?, when?, where?) (R&D support, financial/fiscal incentives, regulations, quality control etc)

S.No.

Year

1

Reported Cumulative Achievements Solar water heating systems (m2)

Solar cookers (No.)

Solar home systems (No.)

PV lanterns (No.)

1983

------

18000

------

------

2

1984

12283

30000

------

------

3

1985

24147

46000

------

------

4

1986

44392

72000

------

------

5

1987

66307

92000

------

------

6

1988

88836

1.1 lakh

------

------

7

1989

1 lakh

------

------

------

8

1990

------

1.77 lakh

------

------

9

1991

1.9 lakh

2.01 lakh

5050

------

10

1992

2.29 lakh

2.3 lakh

11

1993

------

------

------

------

12

1994

------

------

------

------

13

1995

------

4.1 lakh

14

1996

------

4.2 lakh

23000

50000

15

1997

------

------

------

------

16

1998

------

------

------

------

17

1999

4.5 lakh

4.62 lakh

------

------

18

2000

5.5 lakh

------

------

------

19

2001

6 lakh

------

------

------

20

2002

6.8 lakh

5.3 lakh

------

------

21

2003

8 lakh

------

------

------

22

2004

10 lakh

------

------

------

23

2005

15 lakh

5.99 lakh

342607

538718

11600

------

Solar Thermal Applications End Use Water Heating Domestic Community Commercial Industrial Cooking Cooling and Refrigeration Space Heating Drying Power Generation Distillation Any Other

Priority Assigned

Remarks

Characteristics of Solar Energy Resource Low flux density Large collection area to meet a specific demand Material Requirement Monetary cost Embodied energy

Problem for users with low purchasing power

Issue of energy payback

Space Requirement In short Competition with supply in urban agricultural areas activities

Characteristics ------ energy resource (Contd) Intermittent availability Problem in need satisfaction during the period(s) of insufficient availability Poor reliability

Use of auxiliary system(s)

and /or

Add storage

Increased cost

Increased cost

Low sustainable energy fraction

Cost of storage

Cost of increased collection area

Storage tech. not yet fully mature

Niche areas and Utilization Potential (A) Domestic Water Heating Desirable Characteristics of Niche Areas

Factors to be Used in Estimating Utilization Potential (maximum)

• Low ambient temperature (less than 25 0 C) in the morning during most of the year

• Total number of households in areas with ambient temperature less than 25 0C at 6.00 am

• Daily solar radiation availability of more than ------- kWh/m2

• Factor for solar radiation availability

• Annual income of more than-----• Existing water heating options using electricity /LPG /Kerosene

• Factor for purchasing power • Factor for propensity to use solar systems • Factor for availability of cheaper alternative option(s).

Niche areas and Utilization Potential (A) Domestic Water Heating (continued…) Desirable Characteristics of Niche Areas

Factors to be Used in Estimating Utilization Potential (maximum)

Niche areas and Utilization Potential (continued…..) (B) Solar Cooking Desirable Characteristics of Niche Areas • Boiling type cooking predominant • Daily solar radiation (total/steam) availability of more than------ kWh/m2 • Annual income of more than Rs-----• Lunch time after 1.00 pm • Small/Large Family size (??) • Person (s) available for reorientating the cooker and other associated tasks • Existing cooking with LPG / Kerosene /electricity /natural gas

Factors to be Used in Estimating Utilization Potential (maximum) • Total number of households in the country in areas with daily solar radiation availability of more than • Factor for lunch timings • Factor for family size • Factor for availability of manpower to reorient/adjust (and attend to) the solar cooker • Factor for availability of cheaper alternative options.

Niche areas and Utilization Potential (continued…..) (B) Solar Cooking (continued…) Desirable Characteristics of Niche Areas

Factors to be Used in Estimating Utilization Potential (maximum)

Niche areas and Utilization Potential (continued…..) (C) Solar Drying Desirable Characteristics of Niche Areas • Cash crops (high selling price per unit amount, incremental cost of solar drying may not be significant) • High perishable (seasonal) fruits and vegetables • Industrial products

Factors to be Used in Estimating Utilization Potential (maximum) • Amounts of different cash crops produced and ownership pattern • Factor for matching between the time of load and solar radiation availability • Any other??

Niche areas and Utilization Potential (continued…..) (C) Solar Drying (continued..) Desirable Characteristics of Niche Areas

Factors to be Used in Estimating Utilization Potential (maximum)

Potential Causal Factors and Possible Strategies (A) Solar Domestic Water Heating systems Potential Causal Factor

Possible Approach for Enhancing Dissemination

• Low capacity utilization

• Integration with other possible end uses (e.g. cooling)

• High capital cost • Lack of services

promotions,

After

• Poor system design, site selection

sales

• Financial/Fiscal incentives to the users and/or Production incentives to the manufacturers • Carbon benefits internalized • Promotional campaigns in the niche areas • Entrepreneurship training in niche areas • Business development meets

Potential Causal Factors and Possible Strategies (A) Solar Domestic Water Heating Systems (continued…) Potential Causal Factor

Possible Approach for Enhancing Dissemination

Potential Causal Factors and Possible Strategies (B) Solar Cookers Potential Causal Factor • Non-satisfaction of perceived need(s) of the user ─ Cooking time ─ Convenience ─ Taste ─ Reliability

Possible Approach for Enhancing Dissemination • Technology modification/upgradations, development of new designs • User training to adapt to solar cooking • Provide financial/fiscal incentives to the user • Provide production incentives to the manufacturers

• Higher cost as compared to other • Internalize carbon benefits available options for domestic cooking • Promotional campaigns in the niche • Lack of promotion, after sales service areas • Entrepreneurship training in niche areas • Business development meets

Potential Causal Factors and Possible Strategies (B) Solar Cookers (continued…) Potential Causal Factor

Possible Approach for Enhancing Dissemination

Potential Causal Factors and Possible Strategies (C) Solar Dryers (for Agri-produce) Potential Causal Factor

Possible Approach for Enhancing Dissemination

• Poor capacity utilization (due to • Develop multi-crop dryers and/or seasonal production) integrate with possible end uses • Unreliability / mismatch between solar • Design, develop and disseminate hybrid radiation collection and the rate of dryers with optimal solar fraction energy requirement • Promote community applications and/or • High capital cost facilitate availability of solar dryers on rental basis • Poor awareness • Awareness/demonstration programmes in niche areas with higher capacity utilization applications

Potential Causal Factors and Possible Strategies (C) Solar Dryers (for Agri-produce) (continued…..) Potential Causal Factor

Possible Approach for Enhancing Dissemination

Potential Causal Factors and Possible Strategies (D) Solar Cooling Potential Causal Factor • Very high capital cost

Possible Approach for Enhancing Dissemination

• Develop low cost yet efficient collectors for providing higher operating • Mismatch between objectives of temperatures collector efficiency maximization and • ?? engine efficiency maximization • Unavailability of commercially viable solar collectors for providing higher operating temperatures • Unavailability of appropriate cooling technology that suits solar application

Technical barriers

O&M capital cost Cost effectiveness

Economic/ financial barriers

Site selection

Social/environmental barriers Local capacity: infrastructure and knowledge barriers Political, institutional and legislative barriers

Leadership Labour Land

E

L

Honesty Habits and Customs Hybrid Systems

E

P

H

Economic Feasibility Energetic Viability Environmental Sustainability Equity Education Employment Experience Sharing

Availability of Resources Appropriateness of Technology Anthropological Issues National Priority/Goals Need satisfaction

A

N

T

Technology Transfer Traditions

Perceived Needs Purchasing Power Peoples Participation

THANK YOU FOR YOUR INPUTS

Experience Curve: Reasons for Decline in Marginal Cost • Changes in Production: Process innovation, learning effect, economies of scale • Changes in the Product: Product innovation, product redesign, product standardization • Changes in input prices

Green House Gas Mitigation Benefits • Increasing concern for environmental sustainability in selecting energy resource technology combinations. • Most of the renewable energy options are relatively much less GHG emitting (often, only embodied emissions). • Credits under CDM can help make them more attractive.

PURCHASING POWER AND MOTIVATION TO USE SOLAR ENERGY Monthly repayment installment (MRI) depends upon total cost Co of the system fraction ( f ) of the capital cost provided as loan loan repayment installments (N) effective interest rate per period (de) MRI

=

N  d e (1 +d e )   f Co   N  (1 +d e ) −1  

Gross income > n [ MRI ] where n is a specific multiplying factor depending upon the country/specific location

Annual Income vs. Number of Households in India 100

90 80 70 60 50 40

Number of households (million)

Number of households (million)

100

30 20

90 80 70 60 50 40 30 20 10 0 20000

30000

40000

60000

70000

80000

90000

Annual income (Rs)

10 0 20000

50000

30000

40000

50000

60000

Annual income (Rs)

70000

80000

90000

FUEL PURCHASE vs. FUEL GATHERING Use of non-commercial fuels Fuelwood Agricultural residues Dungcakes at ZERO PRIVATE COST to the user Negligibly small opportunity cost of the fuel saved by solar energy technologies Little motivation to invest in solar energy technologies

DIFFUSION CRITERIA ◆Resource availability ◆Technological appropriateness ◆Energetic feasibility ◆Socio-cultural acceptability ◆Environmental sustainability ◆Financial and economic viability

Photovoltaic Applications End Use Domestic Lighting SHS Lantern Mini-grid Street Lighting Water Pumping Grid-connected Power Generation Communication Kiosks Light Houses Fencing Battery Chargers

Priority Assigned

Remarks

Niche areas and Utilization Potential (A) Solar Home Systems /PV Lantern Desirable Characteristics of Niche Areas • Remote un-electrified households

Factors to be Used in Estimating Utilization Potential (maximum) • Total number of households in unelectrified areas

• Households in areas suffering from • Factor for solar radiation availability frequent power cuts • Daily solar radiation availability of more than ------- kWh/m2 • Annual income of more than------

• Factor for purchasing power • Factor for propensity to use solar systems • Factor for availability of cheaper alternative option(s).

Niche areas and Utilization Potential (A) Solar Home Systems /PV Lantern (continued…) Desirable Characteristics of Niche Areas

Factors to be Used in Estimating Utilization Potential (maximum)

Niche areas and Utilization Potential (B) PV Pumps for Irrigation Water Pumping Desirable Characteristics of Niche Areas • Un-electrified villages • Villages suffering power cuts

from

frequent

• Daily solar radiation availability of more than ------- kWh/m2 • Annual income of more than------

Factors to be Used in Estimating Utilization Potential (maximum) • Total number of landholdings of size larger than -------- hectares in unelectrified areas • Factor for solar radiation availability • Factor for purchasing power • Factor for propensity to use solar systems • Factor for availability of cheaper alternative option(s).

Niche areas and Utilization Potential (B) PV Pumps for Irrigation Water Pumping (continued….) Desirable Characteristics of Niche Areas

Factors to be Used in Estimating Utilization Potential (maximum)

Potential Causal Factors and Possible Strategies (A) Solar Home Systems /PV Lantern Potential Causal Factor

Possible Approach for Enhancing Dissemination

• Decentralized low capacity utilization

• Innovative financing mechanisms

• High capital cost

• Financial/Fiscal incentives to the users and/or Production incentives to the manufacturers

• Lack of promotional and after-sales services • Poor system design, site selection

• Carbon benefits internalized • Promotional campaigns in niche areas • Entrepreneurship training in niche areas • Business development meets

Potential Causal Factors and Possible Strategies (A) Solar Home Systems /PV Lantern (continued…) Potential Causal Factor

Possible Approach for Enhancing Dissemination

Additional Issues • Progress towards development of low cost solar cells • Operation in ESCO mode • Linking income generation with improved and additional illumination • Benefits of programmatic CDM • Quality Control • Auxiliary/Back up arrangements

Thank You for your inputs