The Bangalore-based Indian chapter of Semiconductor Equipment and Materials International (SEMI) is optimistic that by 2012-13, India will witness a solar power capacity installation of 1,100 Mw. The apex body, which represents solar, photovoltaic and semiconductor manufacturers in the country, made the forecast based on investments made by members in this sector. According to Sathya Prasad, president of SEMI, while individual project sizes will be 5 Mw to 10 Mw initially, they will be followed by medium- and large-scale projects. Cost per Mw is also expected to be reduced 10 per cent to 15 per cent, and installation will take about 12 to 18 months.

Expressing confidence about the domestic growth of the industry, Prasad indicated that strong domestic demand spurred by the ambitious Jawaharlal Nehru National Solar Mission (JNNSM) would provide the much-needed thrust to the industry. Announced in November last year, the JNNSM proposes to generate 20,000 Mw of electricity from solar power sources by 2022. Guidelines and incentives for this project are likely to be announced next month.

Success of the mission will depend on connectivity to the grid. The implementation procedures and guidelines are expected to provide clarity about the sale of solar electricity generated, rates and connectivity. Several public-sector banks, financial institutions and equity firms, including the State Bank of India, Mauritius-based Helion Venture Partners LLC and IFCI Ltd, have expressed interest in participating in this sunrise sector. However, these companies are seeking clarification about funding and return on investments. Prasad indicated that a panel of experts might be constituted to assist investors with funding procedures.

Prasad was optimistic that with cost-effective products and solutions and economies of scale in production, India can become a global multi-million dollar manufacturing base for solar power. Presently, India exports solar power equipment and technologies to the US and Europe.

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