Solving India´s energy challenge with renewable energy

The Indian government’s ambition is to build a modern industrialized economy, to develop its rural areas and to triple the country’s GDP by 2035. Energy generation, distribution and supply will play a crucial role in this development, which is why the energy sector has been chosen as a main area of focus in the government’s current 15-year-plan. After all, the country’s energy consumption is set to grow faster than that of any major economy.

Energy consumption india – influence of urbanization
Source: iStock

However, India’s energy industry faces major challenges. Currently, the demand for energy cannot be met. The grid is affected by significant instability. Regular blackouts are an issue for industry and consumers alike.

The “Make In India” initiative and the recent GST implementation provides a good ecosystem for Indian PV companies to thrive.
Source: iStock

Demand, meanwhile is rising sharply, driven by several factors:

  • Electricity for rural areas: Today, 240 Million people are without electricity in India. It is the stated goal of the Indian government to provide electricity for all people of India in order to increase living standards and create economic growth*.
  • Rising consumer demand: With rising incomes and 580 million additional electricity consumers by 2040, electricity demand in the residential sector will increase more than fivefold. Furthermore, an additional 315 million people are expected to move to India’s cities by 2040*.
  • Industrial sector demand is equally growing: Until 2040, industrial energy demand is projected to increase by 4.4% annually, eventually accounting for more than 50% of final consumption.*

* Sources: Bloomberg New Energy Finance 2017 / India Energy Outlook 2015 - World Energy Outlook Special Report

Photovoltaics offer an answer to many of the country’s challenges

  • Electricity from photovoltaics allows for smaller and cheaper grids
    Solar energy can be produced and stored locally. India could therefore develop a wider decentralized energy network, allowing for cheaper local or regional grids.
  • Stable energy supply attracts foreign investment
    Smaller but more stable grids will increase India’s energy supply stability and limit the risks of blackouts. This will help attract more international investment to the country.
  • Renewable energies create huge job opportunities
    The clean energy sector will create around 300,000 jobs over five years. If India succeeds in reaching its target, more than one million employment opportunities could be created.
  • Electricity from photovoltaics does not create any CO2 emissions
    Opting for PV supports India’s commitment to the COP21 Paris agreement to decarbonize the world.

Electricity from photovoltaics is the cheapest source of energy in India

Products and services from Heraeus can support India’s quest to successfully manage this enormous growth.

Heraeus Photovoltaics` activities in India

For a long time, Heraeus has enjoyed close links to India; the company’s roots in India date back to the 1930s and our businesses have now been active in the country for over 55 years.

Heraeus can be an important development partner for the India’s photovoltaic industry. With a market share of around 20%, Heraeus Photovoltaics provides high quality and high efficiency silver paste to all local and international solar-cell and panel manufacturers.

We want to be as close to our customers as possible, developing new technologies together. With our Engineering Technology Center we have launched a new initiative in India which supports our new Delhi office. Together, these resources serve our Indian and SEA customers.

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