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Mapping Development Policy onto the Life-Cycle

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Rational Exuberance for Renewable Energy

Part of the book series: Green Energy and Technology ((GREEN))

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Abstract

Financial support and other incentive structures need to necessarily mirror the maturity of the industry segment under consideration. As a market matures, service provision and financing are likely to represent significant revenue opportunities while dwindling margins on module/equipment manufacture would expedite formation of vertically integrated energy service delivery chains. Following the discussion on the power of scarcity, and the role played by substitutes, we apply the product life cycle framework to analyze the impact of global trends on the photovoltaic industry and for the solar thermal/water heating sector. End-users would be required to pay for the power/service alone while energy service providers would own and operate the generation equipment, much as utilities own generation assets in centrally generated, grid-supplied power systems. The first part of this chapter discusses global trends in solar PV module production and attempts to chart a course for the Indian industry. The latter sections deal with appropriate financial support to help the transition from one stage in the life-cycle to the next, employing the solar thermal industry as an illustrative case.

You have to do your own growing no matter how tall your grandfather was.

Abraham Lincoln

16th President of the United States of America

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Notes

  1. 1.

    This chapter is largely based on Srinivasan, Sunderasan, “The Indian Solar Photovoltaic Industry: A Life Cycle Analysis,” Renewable and Sustainable Energy Reviews, Vol. 11, No. 1, Elsevier Ltd., January 2007.

  2. 2.

    MWp = mega Watt peak and kWp = kilo Watt peak.

  3. 3.

    Random events that are nearly impossible to predict; leaving huge impacts on our lives, once they occur.

  4. 4.

    http://mnre.gov.in/pdf/mission-document-JNNSM.pdf.

  5. 5.

    Assuming an annual increase in capacity of about 20% in line with global capacity expansion.

  6. 6.

    For an extensive discussion on the segments of the Indian PV market, please refer to Srinivasan [49].

  7. 7.

    Sufficient to ensure module offtake without management responsibility.

  8. 8.

    Wireless in Local Loop.

  9. 9.

    Information and Communication Technology.

  10. 10.

    This section is largely based on Srinivasan, Sunderasan, “Transforming Solar Thermal: Policy Support for the Evolving Solar Water Heating Industry”, ReFocus, Elsevier Ltd., March/April 2006.

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  1. Verdurous Solutions Private Limited, Navillu Road 7th Cross 145, Kuvempunagar, Mysore, 570023, Karnataka, India

    Srinivasan Sunderasan

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Sunderasan, S. (2011). Mapping Development Policy onto the Life-Cycle. In: Rational Exuberance for Renewable Energy. Green Energy and Technology. Springer, London. https://doi.org/10.1007/978-0-85729-212-4_5

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  • DOI: https://doi.org/10.1007/978-0-85729-212-4_5

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