Socio-economic and Policy Aspects of Energy and Environment: Case of Solar-Energy and Carbon Footprint

Comment [u1]: U need to add social, economi and environmental (SEE) aspects of both issues Formatted: Font: 14 pt Formatted: Font: 14 pt Comment [u2]: Let us discuss to finalise the topic Comment [u3]: Carbon foot print of what? U need 2 mention product/ process or services here

A Term paper Prepared and Submitted by Chandramauli Chaudhuri M.Sc. Economics

As a part of Course Work on Socio-economic and Policy Issues in Energy and Environment Offered by Prof. Vinod Kumar Sharma Indira Gandhi Institute of Development Research, Mumbai July-Dec, 2012

ABSTRACT

JEL Classification: Q42 Keywords: solar energy; renewable energy economics and policies; climate change

Comment [u4]: Discuss this with me

Cover-photo: The Blythe Solar Power project, USA. Source: US Government Approves World's Largest Solar Plant by Timon Singh,

27th November, 2010.

ACKNOWLEDGEMENT

Table of Contents
ABSTRACT ----------------------------------------------------------------------------------------------------------------- 2 ACKNOWLEDGEMENT ------------------------------------------------------------------------------------------------- 3 TABLE OF CONTENTS -------------------------------------------------------------------------------------------------- 4 SECTION-I SOLAR ENERGY ------------------------------------------------------------------------------------------- 5 I.1. INTRODUCTION ----------------------------------------------------------------------------------------------------- 5 I.2. OBJECTIVES OF THE STUDY ------------------------------------------------------------------------------------- 6 I.3. SOLAR ENERGY ----------------------------------------------------------------------------------------------------- 7 I.3.1. Background -------------------------------------------------------------------------------------------------------- 7 I.3.2. Applications of Solar Technology ------------------------------------------------------------------------------ 8 I.3.3. Energy Storage -------------------------------------------------------------------------------------------------- 10 I.3.4. Development and Deployment -------------------------------------------------------------------------------- 10 I.4. LITERATURE REVIEW ------------------------------------------------------------------------------------------- 11 I.5. SOCIO-ECONOMIC AND ENVIRONMENTAL ASPECTS ------------------------------------------------- 14 I.6. INDIAN SCENARIO ------------------------------------------------------------------------------------------------ 15 I.6.1. Current Developments ------------------------------------------------------------------------------------------ 15 I.6.2. Incentive for Further Developments -------------------------------------------------------------------------- 18 I.6.3. Barriers ----------------------------------------------------------------------------------------------------------- 18 I.7. ECONOMIC & TECHNOLOGICAL CHALLENGES --------------------------------------------------------- 19 I.7.1. Financial and Market Barriers to Solar technology --------------------------------------------------------- 19 I.7.2. Lack of System Integration and Incentives ------------------------------------------------------------------ 19 I.7.3. Reliability -------------------------------------------------------------------------------------------------------- 20 I.7.4. Infrastructure and Institutional Challenges ------------------------------------------------------------------ 20 I.7.5. Non-Technical Barriers ----------------------------------------------------------------------------------------- 20 I.8. POLICY RECOMMENDATIONS -------------------------------------------------------------------------------- 21 I.9. CONCLUSION ------------------------------------------------------------------------------------------------------- 23 SECTION-II CARBON FOOTPRINTS ------------------------------------------------------------------------------- 24 II.1. INTRODUCTION--------------------------------------------------------------------------------------------------- 24 II.2. OBJECTIVES OF THE STUDY ---------------------------------------------------------------------------------- 25 II.3. CARBON FOOTPRINTS ------------------------------------------------------------------------------------------ 26 II.4. LITERATURE REVIEW ------------------------------------------------------------------------------------------ 27 II.5. SOCIO-ECONOMIC AND ENVIRONMENTAL ASPECTS ------------------------------------------------ 28 II.6. INDIAN SCENARIO ----------------------------------------------------------------------------------------------- 29 II.7. ECONOMIC & TECHNOLOGICAL CHALLENGES -------------------------------------------------------- 30 II.8. POLICY RECOMMENDATIONS ------------------------------------------------------------------------------- 31 II.9. CONCLUSION ------------------------------------------------------------------------------------------------------ 32 REFERENCES ------------------------------------------------------------------------------------------------------------ 33

SECTION-I SOLAR ENERGY I.1. INTRODUCTION

Comment [u5]: It cab just 1 (and not I.1)becusae of two separate sections already defiiend)

I.2. OBJECTIVES OF THE STUDY

I.3. SOLAR ENERGY

I.3.1. Background
Solar energy consists of electromagnetic radiations coming from the Sun, which we receive it in the form of heat and light. The Earth receives about 174 peta-watts (PW) of incoming solar radiation (insolation) at the upper atmosphere. Approximately 30% is reflected back to space while the rest is absorbed by clouds, oceans and land masses. With the help of technology available today, we can capture this radiation and turn it into usable forms of solar energy for the purposes of heating or electricity generation. The amount of sunlight available at a particular place is one of the key factors to consider when estimating the usage of solar energy. There are also a few other factors which need to be considered when determining the viability of solar energy at a given location. These are: Time of the day Geographical position Season Local landscape Local weather

Comment [u6]: Where ever any such data is given ref is a must

Comment [u7]: Potential production?

Scientists measure the amount of sunlight available in specific locations during different times of year. Then they are able to approximate the amount of sunlight which falls on similar regions at the identical latitudes with similar climatic conditions. Radiation for solar electric systems may be expressed in terms of kilowatthours per square meter (kW-h/m2). Direct estimates of solar energy are represented in watts per square meter (W/m2). Radiation data for water and space heating mechanisms are usually represented in British thermal units per square foot (Btu/ft2). Figure I.3.1 shows the average insolation across the land surface (represented by black dots) required to replace the world primary energy supply with solar electricity. Insolation for most people range from 155 to 305 W/m2 or 3.5 to 7.5 kWh/(m2day).

Figure I.3.1. Distribution of Solar Energy across the globe Source: http://en.wikipedia.org/wiki/File:Solar_land_area.png

I.3.2. Applications of Solar Technology

The amount of solar radiation reaching the surface of the planet in one year is more than twice as much as will ever be obtained from aggregation of all of the Earth's non-renewable energy resources of coal, oil, natural gas, and mined uranium. Solar energy can be harnessed at different levels around the world, mostly depending on distance from the equator. Sunlight can be converted directly into electricity using photovoltaics (PV), or indirectly with concentrated solar power (CSP). PVs were at first used to provide power small or medium-sized projects, from the calculator powered by a single solar cell to off-grid homes powered by photovoltaic arrays. Solar technologies can generally be classified as either passive or active depending on the way they capture, convert, transmit and distribute solar power. Solar active techniques use photovoltaic panels, fans and pumps to convert sunlight into various outputs. Passive solar techniques involve selecting materials with favorable designing spaces and thermal properties that naturally circulate air, aswell as referencing the position of an establishment to the Sun. Active solar techniques increase the energy supply and are considered to be supply side factors, while passive solar technologies lower the requirement for alternative energy sources and are generally considered as demand side factors. Architecture and urban planning: Sunlight has had an influence on building design since the beginning of architecture. Advanced solar designs and urban planning were first employed by the Chinese and Greeks, who designed their buildings facing the south to provide light and warmth. The common features of passive solar architecture are orientation with respect to the Sun, compact proportion, shading pattern and thermal mass. The most recent approaches to solar design use computer modeling. Agriculture, horticulture: Agriculture and horticulture attempt to optimize the reception of solar energy in order to optimize plantproductivity. Applications of solar energy in agriculture aside from growing crops include solar irrigation technologies and pumping water. Greenhouses transform solar light to heat energy, enabling year-round production of special crops and other plants not suited to the local climate. These are an important part of horticulture today, and plastic transparent materials have also been used to similar effect in poly-tunnels and row covers. Solar thermal: Solar thermal technologies can be used for water heating, space heating and cooling and process heat generation. Solar hot water systems use sunlight to heat water. In low geographical latitudes (below 40 degrees) from 60 to 70% of the domestic hot water use with temperatures up to 60 C can be provided by solar heating systems. The most common types of solar water heaters are evacuated tube collectors (44%) and glazed flat plate collectors (34%) generally used for domestic hot water; and unglazed plastic collectors (21%) used mainly to heat swimming pools. In the United States, heating, ventilation and air conditioning (HVAC) systems account for 30% (4.65 EJ) of the energy used in commercial buildings and nearly 50% (10.1 EJ) of the energy used in residential buildings. Solar heating, ventilation and cooling technologies can be applied to reduce a portion of this energy usage. A thermal chimney is a passive solar ventilation mechanism composed of a vertical shaft connecting the interior and exterior of an apartment. While the chimney warms, the inside air is heated up resulting in an updraft that pulls air through the building. Performance of this technique may be improved by using thermal or glazing mass materials in a way similar to the greenhouses. Cooking: Solar cookers use sunlight for cooking, drying and pasteurization. Often panel cookers use a reflective panel to direct sunlight onto an insulated container and generate high temperatures comparable to box cookers. Reflector cookers use a number of designs (such as dish, trough, Fresnel mirrors) to focus light on the container. These cookers reach temperatures around 320 C but require direct light for proper functioning. The solar bowl is a concentrating technology employed by the Solar Kitchen in Auroville, Pondicherry, India, where a stationary spherical reflector focuses light along a line perpendicular to the sphere's interior surface, and a computer control system moves the receiver to intersect this line. Steam is produced in the receiver at 8

Comment [u8]: Need to give ref here as it is very interesting but strong statement

temperatures reaching 150 C and then used for process heat in the kitchen. Scheffler reflectors, developed by Wolfgang Scheffler in 1986, are flexible parabolic dishes that combine aspects of trough and power tower concentrators. The world's largest Scheffler reflector system in Abu Road in Rajasthan, India is capable of cooking 35,000 meals a day. Solar lighting: Day-lighting systems collect and distribute sunlight to provide interior illumination. The passive technology directly reduces energy usage through replacement of artificial lighting and indirectly decreases non-solar energy use by lowering the requirement for air-conditioning. Hybrid solar lighting is an active solar method of providing interior illumination. These systems collect sunlight using mirrors which detect the trajectory of the Sun and use fiber-optics to transmit it inside the building to supplement the usual lighting. Water treatment: Solar distillation can be used to make saline or brackish water potable. The first recorded instance of this was by 16th century Arab alchemists. Solar water disinfection (SODIS) involves exposing water-filled plastic polyethylene terephthalate (PET) bottles to sunlight for several hours. Exposure times vary depending on weather and climate from a minimum of six hours to two days during fully overcast conditions. It is recommended by the World Health Organization as a viable method for household water treatment and safe storage. Over two million people in developing countries use this method for their daily drinking water. Solar energy may be used in a water stabilization pond to treat waste water without chemicals or electricity. A further environmental advantage is that algae grow in such ponds and consume carbon dioxide in photosynthesis, although algae may produce toxic chemicals that make the water unusable. Solar power: Solar power is the conversion of sunlight into electricity, either directly using photovoltaics (PV), or indirectly using concentrated solar power (CSP). CSP systems use lenses or mirrors and tracking systems to focus a large area of sunlight into a small beam. PV converts light into electric current using the photoelectric effect. Commercial CSP plants were first developed in the 1980s. Since 1985 the eventually 354 MW SEGS CSP installations, in the Mojave Desert of California, is the largest solar power plant in the world. Other large CSP plants include the Solnova Solar Power Station (150 MW) and the Andasol solar power station (100 MW), both in Spain. The Agua Caliente Solar Project, in the United States, and the 214 MW Charanka Solar Park in India, are the worlds largest photovoltaic plants. Concentrated solar power: Concentrating Solar Power (CSP) systems use lenses or mirrors and tracking systems to focus a large area of sunlight into a small beam. The concentrated heat is then used as a heat source for a conventional power plant. A wide range of concentrating technologies exists; the most developed are the parabolic trough, the concentrating linear Fresnel reflector, the Stirling dish and the solar power tower. Various techniques are used to track the Sun and focus light. In all of these systems a working fluid is heated by the concentrated sunlight, and is then used for power generation or energy storage. Photovoltaics: A solar cell, or photovoltaic cell (PV), is a device that converts light into electric current using the photoelectric effect. Solar cells produce direct current (DC) power, which fluctuates with the intensity of the irradiated light. This usually requires conversion to certain desired voltages or alternating current (AC), which requires the use of inverters. Multiple solar cells are connected inside the modules. Modules are wired together to form arrays, then tied to an inverter, which produces power at the desired voltage, and for AC, frequency/phase. Many residential systems are connected to the grid wherever available, especially in the developed countries with large markets. In these grid-connected PV systems, use of energy storage is optional. In certain applications such as satellites, lighthouses, or in developing countries, batteries or additional power generators are often added as back-ups, which form stand-alone power systems. Solar chemical: Solar chemical processes use solar energy to drive chemical reactions. These processes offset energy that would otherwise come from a fossil fuel source and can also convert solar energy into storable and transportable fuels. Solar induced chemical reactions can be divided into thermochemical or photochemical. A variety of fuels can be produced by artificial photosynthesis. The multi-electron catalytic chemistry involved in making carbon-based fuels (such as methanol) from reduction of carbon dioxide is challenging; a feasible alternative is hydrogen production from protons, though use of water as the source of electrons (as plants do) requires mastering the multi-electron oxidation of two water molecules to molecular oxygen. Some have envisaged working solar fuel plants in coastal metropolitan areas by 2050- the splitting of sea water

providing hydrogen to be run through adjacent fuel-cell electric power plants and the pure water by-product going directly into the municipal water system. Hydrogen production technologies were a significant area of solar chemical research since the 1970s. Aside from electrolysis driven by photovoltaic or photochemical cells, several thermochemical processes have also been explored. Solar vehicles: Australia hosts the World Solar Challenge where solar cars like the Nuna3 race through a 3,021 km (1,877 mi) course from Darwin to Adelaide. Some vehicles use solar panels for auxiliary power, such as for air conditioning, to keep the interior cool, thus reducing fuel consumption. In 1975, the first practical solar boat was constructed in England. By 1995, passenger boats incorporating PV panels began appearing and are now used extensively.

I.3.3. Energy Storage

One of the major setbacks for solar energy systems is that the Sun doesn't provide a continuous source of energy. On cloudy days or at night, in absence of sunlight, the amount of energy our systems receive is reduced, making energy storage an important aspect in order to provide the constant supply of energy. The Institute for Solar Energy Supply Technology of the University of Kassel tested a combined power plant interconnecting alternate sources like solar, wind, biogas and hydro-storage to provide load-following power around the clock. Both wind power and solar power are intermittent energy sources of energy and are somewhat complementary, as there tends to be more wind in the winter and more sun in the summer. However on days with no sun and no wind the low generation of energy needs to be made up through some other alternatives. Using molten salts, solar energy can be stored efficiently at high temperatures. Salts are suitable storage medium because they are low-cost, have a high specific heat capacity and can deliver heat at temperatures compatible with conventional power systems. For homeowners generating solar electricity through the use of the PV system, there are two primary methods of energy storage with a photovoltaic solar power system, namely, Battery Banks and Grid Inter-Tie. One way solar power storage can be accomplished is by using a battery bank to store the electricity generated by the PV solar power system. A battery solar power storage system is used in a grid-tied PV system with battery backup and stand-alone PV systems. Off-grid PV systems have traditionally used rechargeable batteries to store excess electricity. With grid-tied systems, excess electricity can be sent to the transmission grid. Net metering programs give these systems a credit for the electricity they deliver to the grid. This credit offsets electricity provided from the grid when the system cannot meet demand. Pumped-storage hydroelectricity stores energy in the form of water pumped when surplus electricity is available, from a lower elevation reservoir to a higher elevation one. Artificial photosynthesis involves the use of nanotechnology to store solar electromagnetic energy in chemical bonds, by splitting water to produce hydrogen fuel or then combining with carbon dioxide to make biopolymers such as methanol. Many large national and regional research projects on artificial photosynthesis are now trying to develop techniques integrating improved light capture under a variety of atmospheric conditions.

I.3.4. Development and Deployment

As of July 2012, the largest individual photovoltaic (PV) power plants in the world are Agua Caliente Solar Project, (Arizona, over 200 MW connected - to increase to 397 MW), Golmud Solar Park (China, 200 MW), Perovo Solar Park (Ukraine, 100 MW) and Sarnia Photovoltaic Power Plant (Canada, 97 MW). The early development of solar technologies was driven by the fact that the depleting resources of fossil fuels around the world may soon run out. Between 1970 and 1983 photovoltaic installations grew rapidly, however falling oil prices in the early 1980s moderated the growth of photovoltaics from 1984 to 1996. Since 1997, PV development has accelerated due to supply issues with oil and natural gas, global warming concerns, and the improving economic position of PV relative to other energy technologies. Photovoltaic production growth has averaged 40% per year since 2000 and installed capacity reached 39.8 GW at the end of 2010, of them 17.4 GW in Germany.

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I.4. LITERATURE REVIEW

Over the years various researches have shown that solar energy technologies such as photo-voltaic panels, solar power stations built with mirrors and solar cells could provide almost one-third of the worlds energy needs by 2060 if people commit to limiting the climate change. The energy from the sun can play a key role in de-carbonizing the global economy alongside improvements in energy efficiency and imposing costs on greenhouse gas emitters. According to the International Energy Agency reports in 2011, "the development of affordable, inexhaustible and clean solar energy technologies will have huge longer-term benefits. It will increase countries energy security through reliance on an indigenous, inexhaustible and mostly importindependent resource, enhance sustainability, reduce pollution, lower the costs of mitigating climate change, and keep fossil fuel prices lower than otherwise. These advantages are global. Hence the additional costs of the incentives for early deployment should be considered learning investments; they must be wisely spent and need to be widely shared". Arvizu et al. (2011) argued that the expansion of solar power utilization depends on global climate change mitigation projections. The general perception among climate-scientists is that the deployment of solar energy in 2050 would vary from 1 to 12 EJ/year in absence of any climate change mitigation policies. In the most ambitious projection for climate change mitigation, where CO2 concentrations remain below 440 ppm by 2100, the contribution of solar energy to primary energy supply could reach 39 EJ/year by 2050. An analysis of the solar-power feasibility in the US market was brought forward by William T. Coyle, Fumiko Yamazaki and Mechel S. Paggi (December, 2010) in which they state that the growth of U.S. solargenerated electricity both from photovoltaic (PV) and solar thermal projects has been rapid in the last 5 years. However it should be noted that the share of total U.S. electrical generation capacity and production is still minuscule, less than one percent. Even when evaluated on a regional basis, the technical potential of solar energy in most regions of the world is many times greater than current total primary energy consumption in those regions (de Vries et al. 2007). The principal barrier to its broader use is its high relative cost. PV costs are high mainly because of the characteristic low capacity factor of solar power, constrained by limited hours of sunlight. The high capital costs are, thus, spread across fewer productive hours compared to other energy sources. Figure I.4.1 compares the technically feasible potential of different renewable energy options using the present conversion efficiencies of available technologies.

90000 80000 70000 60000 50000 40000 30000 20000 10000 0 Solar Wind Geothermal Biomass Hydropower Ocean
Figure I.4.1. Technical Potential of renewable energy technologies Data source: UNDP (2000), Johansson et al. (2004) and de Vries et al (2007) 11

UNDP(2000), Johansson et al (2004) de Vries et al (2007)

The European Photovoltaic Industry Association (EPIA) represents members active along the whole solar PV value chain in the European Union. EPIAs mission is to give its global membership a distinct and effective voice in the European market, especially in the EU. During 2010, the European solar energy yield was approximately 17.3 TW-h and an annual turnover of 2.6bn. The turnover was concentrated in local, small and medium businesses. In Europe, 21.9 GW of photovoltaic systems were connected to the grid in 2011. Currently the annual turnover of the European Photovoltaic market is of approximately 36 billion. Until now, mainly Germany and the US provided the market for solar technology. Germany has an installed solar power capacity of 29,000 MW. It is expected to add 7,300 MW this year. The US is projected to add 3,500 MW in 2012. Even Asian countries like China, South Korea and Japan have now started taking solar power technology with a note of seriousness. The recent takeover of the well-known German solar cell manufacturer, Q-Cells, by a less-known South Korean company, Hanwha, is symbolic of the recent trend that has been in evidence in the last couple of years solar manufacturing shifting from the West to Asia. This trend has essentially been driven by Chinese companies and has had a disruptive effect on the market, causing around 40 companies in the US and Europe to close down. According to M.Ramesh in the Business Line (The Hindu), September, 2012, the Chinese Government has raised its long-term installation target from 20 GW to 50 GW by 2020. IMS Research forecasts that 10,000 MW will be installed in China in the next two years. Chinas GCL-Poly has begun construction of a 340 MW project in Dantong, which will be among the largest single-unit solar farms in the world. Japan is the fourth largest energy consumer in the world in spite of the small population of 120 million that occupies only 2.1% of world population. After the Fukushima disaster, it has begun looking at solar as an alternative to nuclear sources for meeting its energy demands. Till 2011, Japan had installed solar capacity of 1,300 MW. But the country is expected to end 2012 with 4,700 MW. A major driver is the 53-cent per unit feed in tariff (FiT) announced by the Japanese government. It is expected that Japanese companies will invest $9.6 billion in solar projects. India, which got into solar power generation much earlier, has today a little over 1,000 MW of installed capacity. Around 650 MW of this came under Gujarats Governments FiT-based program. In July 2009, India unveiled a US$19 billion plan to produce 20 GW of solar power by 2020. Under the plan, the use of solar-powered equipment and applications would be made compulsory in all government buildings, as well as hospitals and hotels. On 18 November 2009, it was reported that India was ready to launch its National Solar Mission under the National Action Plan on Climate Change, with plans to generate 1,000 MW of power by 2013. From August 2011 to July 2012, India went from 2.5 MW of grid connected photovoltaics to over 1,000 MW. Recently the Jawaharlal Nehru National Solar Mission (also known as the National Solar Mission) has been a major initiative on the part of the Government of India and the state governments to address ecologically sustainable growth while also considering the challenges India face in the field of energy security. It will also constitute a major contribution by India to the global effort to meet the challenges of climate change. The mission is one of the several program initiatives that are part of National Action Plan on Climate Change. However, behind this recent trend of growing significance, solar energy technology has a long history. Between 1860 and the First World War, a range of technologies were developed to generate steam, by capturing the suns heat, to run engines and irrigation pumps (Smith, 1995). Solar PV cells were invented at Bell Labs in the United States in 1954, and they have been used in space satellites for electricity generation since the late 1950s (Hoogwijk, 2004). The years immediately following the oil-shock in the seventies saw much interest in the development and commercialization of solar energy technologies. However, this incipient solar energy industry of the 1970s and early 80s collapsed due to the sharp decline in oil prices and a lack of sustained policy support (Bradford, 2006). Solar energy markets have regained momentum since early 2000, exhibiting phenomenal growth recently. The total installed capacity of solar based electricity generation capacity has increased to more than 40 GW by the end of 2010 from almost negligible capacity in the early nineties (REN21, 2011). Kurokawa et al. (2007) estimated 4% of the surface area of the worlds deserts may produce enough electricity to meet the worlds current energy requirements. A similar view is observed in EPIA (2007) estimates that just 0.71% of the European land mass, covered with current PV modules, will meet the continents entire electricity necessities. In many regions of the world one square-Km of land is sufficient to generate more than 125 GW-h of electricity per year through CSP technology. In China, 1% (26,300 km2) of the wastelands located in the northern and western regions, where solar radiation is among the highest in the country, can generate electricity equivalent to 1,300 GW about double the countrys total generation 12

capacity projected for year 2020 (Hang et al, 2007). Figure I.4.2 shows the total photovoltaic peak power capacity (MWp) across 12 countries from years 2010 and 2011. Recently, using comprehensive data sets from NREL, the U.S. Energy Information Administration, CAIT 8.0, UN Energy Statistics Database and CIA World Fact-book, Climate Change SOS demonstrated how we can meet our projected energy demand many times over Brazil 67 times over, Canada 68 times over, the U.S. 5 times over, Russia 20 times over, China 2 times over, Australia 54 times over.

0 Germany Japan United States France China South Korea Australia Brazil Canada India United Kingdom Ukraine

5,000

10,000

15,000

20,000

25,000

30,000

Total photovoltaic peak power capacity (MWp) Total 2010 Total photovoltaic peak power capacity (MWp) Total 2011

Figure I.4.2. Top 25 nations ranked according to solar and wind energy potential Data source: http://en.wikipedia.org/wiki/Solar_power_by_country Table I.4.1 presents regional distribution of annual solar energy potential along with total primary energy demand and total electricity demand in year 2008. As can be easily seen from the table, solar energy supply is significantly greater than demand at the regional as well as global level.
Minimum technical potential 4,322 2,675 597 96 4,752 9,839 8,860 979 907 2,746 1,719 37,492 Maximum technical potential 176,951 80,834 21,826 3,678 206,681 264,113 227,529 23,737 31,975 98,744 54,040 1,190,108 Primary energy demand (2008) 2,731 575 1,822 114 1,038 744 505 702 750 2,213 870 12,267 Electricity demand (2008) 390 74 266 14 92 70 27 76 61 255 140 1,446

Region North America Latin America & Caribbean Western Europe Central and Eastern Europe Former Soviet Union Middle East & North Africa Sub-Saharan Africa Pacific Asia South Asia Centrally Planned Asia Pacific OECD Total

Table I.4.1. Regional distribution of annual solar energy potential Data Source: Johansson et al. (2004); IEA (2010)

Note: The minimum and maximum technical potential reflect different assumptions regarding annual clear sky irradiance, annual average sky clearance, and available land area.

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I.5. SOCIO-ECONOMIC AND ENVIRONMENTAL ASPECTS

Comment [u9]: SEE aspects are most importa for your TP

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I.6. INDIAN SCENARIO

Bio-Power States/UTs Small Hydro Power Wind Power Biomass Power 363.25 15.5 249.9 20.5 35.8 441.18 1 600.2 20 90.5 81.3 532.7 644.5 10 16 3122.33 Waste to Energy 43.16 1 3.9 5.72 9.25 5.65 5 16 89.68 Solar Power (MWp) Total Capacity

Andhra Pradesh Arunachal Pradesh Assam Bihar Chhattisgarh Gujarat Haryana Himachal Pradesh Jammu and Kashmir Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland Odisha Punjab Rajasthan Sikkim Tamil Nadu Tripura Uttar Pradesh Uttarakhand West Bengal A & N Islands Delhi Others India

192.63 79.54 31.11 61.3 20.25 15.6 70.1 501.59 130.59 4.05 901.25 143.17 86.16 281.33 5.45 31.03 36.47 28.67 64.3 154.5 23.58 52.11 111.69 16.01 25.1 170.82 98.4 5.25 3342.1

213 2707 1856 35 330 2607 1856 6713 4 16321

15 0.03 4 291 4.8 2 9 0.03 0.1 20 4 4.32 133.65 8.05 2.38 2.05 1.05 0.1 2.14 0.81 505.29

827.04 79.57 31.11 76.8 274.15 3034.1 110.7 501.59 130.59 6.05 3208.43 178.2 421.16 3514.25 5.45 31.03 36.47 28.67 88.3 258.57 2094.53 52.11 7371.09 16.01 676.98 182.87 115.45 5.35 18.14 4.81 23380.4

Table I.6.1. State/Source-wise Cumulative Grid Interactive Renewable Power Installed Capacity in India Source: Lok Sabha Unstarred Question No. 2910 (www.indiastat.com)

Comment [u10]: What does this mean

Figure I.6.1. Source-wise Cumulative Grid Interactive Renewable Power Installed Capacity across the major states in India 15

I.6.1. Current Developments

States Andhra Pradesh Arunachal Pradesh Assam Haryana Himachal Pradesh Jammu and Kashmir Jharkhand Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Punjab Rajasthan Sikkim Tamil Nadu Uttar Pradesh Uttarakhand Others India Funds Released (Rs. in Lakh) 75.95 404.96 59.34 822.51 1841.57 2224.8 58.4 92.42 376.08 2.69 118.31 334.66 89.24 1124.39 971.63 5730.75 2933.49 5109.86 212.6 22583.65 States/UTs Andhra Pradesh Arunachal P. Assam Bihar Chandigarh Chhattisgarh Delhi Gujarat Goa Haryana HP J &K Karnataka Kerala Meghalaya Lakshadweep Madhya Pradesh Maharashtra Manipur Mizoram Nagaland Orissa Puducherry Punjab Rajasthan Sikkim Tamil Nadu Uttar Pradesh Uttarakhand West Bengal Tripura IREDA/Bands AIWC/WEC Misc India 2009-10 29.23 15.55 4.88 36.84 0.55 131.7 4.05 59.97 12.13 16 16.6 5.12 1.44 8.82 157.2 4.27 3.48 2.03 15.3 6 5.37 24.93 33.46 28.05 15.92 2.88 671.4 2.4 27.08 1342 2010-11 626.28 3.45 3.98 93.43 31.55 181.08 164.37 69.2 103 113.73 4.96 25 55.41 117.17 25 25 1.81 50.92 29.53 2.88 91.56 59.46 132.8 0.46 54.44 1193 3259.4 2011-12 2 64 200 128.6 111.1 587.8 586.0 58.07 48.28 326.7 1 15.61 11.65 201.4 104.4 250.8 22 347.4 207.0 3274

Table I.6.2. Selected State-wise Funds Released for Solar Lighting Systems under JNNSM in India (2010-2011 and 2011-2012) Source: Lok Sabha Starred Question No. 151, dated on 23.03.2012. (www.indiastat.com)

Table I.6.3. State-wise Expenditure on Development of Solar Energy (Including Research and Development) under Solar Thermal Energy Program in India (2009-2010 to 2011-2012-upto 31.10.2011) Data Source: www.indiastat.com

Figure I.6.1. Selected State-wise Funds Released for Solar Lighting Systems under JNNSM in India (2010-2011 and 2011-2012)

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Solar Photo Voltaic System

Numbers

Power Plants Stand Alone (KWp) 167 731.1 17.1 210 775.6 0 2500 82 1.72 374.6 676.05 1.5 308.85 235.9 225.41 47.7 100 575 905.7 28 50.5 109 72 84.515 0 121 3430.8 17.73 150 25.57 2943.72 180.03 775 528 16451.095 Grid Connected (MW) 0.1 3.1 0.025 0 0 0 4 2.142 0 92.4 2 0 0 0 6 0.025 0.75 0.1 18 0 0 0 0 4 0.025 4.325 44.65 0 7.05 0 0.375 0.05 1.05 0.81 190.977

States/UTs A & N Islands Andhra Pradesh Arunachal Pradesh Assam Bihar Chandigarh Chhattisgarh Delhi Goa Gujarat Haryana Himachal Pradesh J &K Jharkhand Karnataka Kerala Lakshadweep Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland Odisha Puducherry Punjab Rajasthan Sikkim Tamil Nadu Tripura Uttar Pradesh Uttarakhand West Bengal Other India

Lanterns 6296 38544 14433 1211 50117 1675 3192 4807 1065 31603 73116 22970 43822 16374 7334 54367 5289 9444 68683 4787 24875 8331 6317 9882 1637 17495 4716 5200 16818 42360 60188 64023 17662 125797 864430

Home Light 405 1998 10349 5870 6471 275 7233 0 362 9231 49668 16848 23083 7312 37348 32326 0 2917 3434 3865 7840 5395 868 5156 25 8620 91754 4640 7536 26066 147546 91307 130901 24047 770696

Street Light 358 4186 1071 98 955 898 1923 301 707 2004 20074 4072 5806 620 2694 1735 1725 6138 8420 928 1273 431 271 5834 417 5354 6852 242 6350 1199 91727 8568 8076 9150 210457

Pump 5 613 18 45 139 12 226 89 15 85 469 6 39 0 551 810 0 87 239 40 19 37 3 56 21 1857 283 0 829 151 575 26 48 0 7393

Table I.6.4. State-wise Cumulative Installation of Solar Photo Voltaic (SPV) Systems in Indi Source: Rajya Sabha Unstarred Question No. 1353 Data Source: www.indiastat.com

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I.6.2. Incentive for Further Developments

Comment [u11]: Both these are important

I.6.3. Barriers

Comment [u12]: Both these are important

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I.7. ECONOMIC & TECHNOLOGICAL CHALLENGES

I.7.1. Financial and Market Barriers to Solar technology
In this section we aim to summarize the importance of project financing for solar energy technology and the necessity to analyze the market acceptability and entry barriers to the clean technology. The financial aspects include: Risks associated with financing solar energy generation projects: Creditworthiness risks: concern by lenders about projects ability to service debt from the future cash flows; lack of maturity of company and technology, and lack of proven acceptance in the marketplace Technology risks: concern that the technology will underperform or become obsolete prematurely; lack of information/experience to make comparisons with other energy technologies Market competition risks: concern by financiers about high capital costs of solar energy projects and the low cash flows compared with other traditional sources of energy Revenue security risks: need for revenue security to pay back the capital investment Dis-economies of scale and other cost issues: competitive disadvantage of the energy projects because of small-size production as compared to traditional energy projects, resulting in diseconomies of scale and higher transaction costs much greater on the smaller projects

In addition to the above mentioned factors we may also state a few reasons behind the market failure and non-market failure barriers that hinder energy efficiency implementation. Market failures: Misplaced incentives: energy decisions made by an agent may not be in the best interest of the consumer. For e.g., a landlord may not install energy-efficient appliances because the renter pays the energy bills Distortionary fiscal and regulatory policies: policies remove incentives for energy efficiency. For e.g., not setting energy prices based on time-of-use discourages consumers from using energy more efficiently during high-price periods Social costs: not considering the negative impacts of energy usage on the society into its cost. For e.g., the effects of air pollution from fuel combustion Social benefits: not considering the social positive impacts of efficient energy usage into its. For e.g., the reduced air pollution due to cleaner energy production Insufficient and inaccurate information: consumers not informed about energy. For e.g., electricity bills do not detail the energy consumption of specific end uses

Market barriers: Low priority of solar energy: although conventional energy is still relatively cheap, however consumers typically do not understand negative externalities of conventional energy Capital market barriers: limited access to capital and high interest rates inhibit energy efficiency improvements Incomplete markets for energy efficiency: energy efficiency is an inseparable part of many products, limiting consumer choice (e.g., fuel economy is not a separate option for automobiles)

I.7.2. Lack of System Integration and Incentives

Across the world, fossil fuel interests have historically received subsidies and continue to obtain Research & Development support. However renewable energy lacks equal assistance. In most of the countries, technical and electricity market barriers inhibit distributed electricity generation such as provided by renewable energy sources like solar power. In addition to this according to H. Sozer and M. Elinimeiri, 2003, lack of integration of with typical building process, including lack of integration with building materials, the building design process, codes and standards, the organizational structure (i.e. lack of awareness of PV by architects, engineers, contractor, facility manager, and owner), and building components (constructability, aesthetics, service/performance, and cost) acts as a major setback. Also, developing an economic case for building19

integrated PV is hindered by lack of complete financial and technical data, including cost-reducing factors (e.g., energy cost savings, tax credits, and increased rents) and hard-to-quantify benefits (e.g., enhanced power reliability, improved public image, and improved visual impact).

I.7.3. Reliability
Weather and geographic location can affect the reliability of solar power. Clouds, rain and snow can obstruct the collection of solar power. Solar panels must be cleaned and cleared of dirt, snow and other debris to operate at top efficiency, and solar batteries require ongoing maintenance.

I.7.4. Infrastructure and Institutional Challenges

The paper The Diffusion of Renewable Energy Technology: An Analytical Framework and Key Issues for Research by S. Jacobsson and A. Johnson provide an analytical framework for studying how new technologies may transform the energy sector. It also outlines issues that must be researched to understand the transformation of the energy system into one that employs more renewable energy. They may be summarized as follows: Poorly articulated demand: consumers unable to articulate price/performance demand during early stage of technology diffusion Local search processes: companies tend to build on their existing technological base when making improvements instead of pursuing new, less-known technologies Networks: Poor connectivity: companies are not well connected to other companies with an overlapping technology base Wrong guidance about future markets: individual companies are guided by the network in wrong directions, or the network fails to share required knowledge among companies Institutions: Legislative failures: legislation creates bias toward established technologies Educational system failures: educational system supports current technologies over potential new technologies or fails to react quickly enough to emergence of new technologies Skewed capital market: supply of capital does not emerge spontaneously in response to needs of emerging technology Underdeveloped organization and political power of new entrants: including lack of industry organizations and ways to share information

I.7.5. Non-Technical Barriers

A list of the most frequently recognized non-technical barriers to use of solar energy technology has been identified by R. Margolis and J. Zuboy in their paper Non-technical Barriers to Solar Energy Use: Review of Recent Literature. According to their study the most common economic and non-technical factors that hinder the growth of the solar energy sector are: Lack of government policy Lack of information dissemination and consumer awareness about energy usage and environmental degradation Lack of credibility: need credible endorsements of Photovoltaic technology (PV) to instill consumer confidence; implicit endorsements include utility PV programs and government tax credits Inconsistent inspection process: inspection process varies by community and should be streamlined to reduce delays High cost of solar technologies compared with other conventional sources of energy Difficulty overcoming established energy systems Inadequate financing options for projects Failure to account for all costs and benefits of energy choices Inadequate workforce skills and training Lack of adequate codes, standards, and interconnection and net-metering guidelines Poor perception by public of renewable energy system aesthetics Lack of stakeholder/community participation in energy choices and projects 20

I.8. POLICY RECOMMENDATIONS

Energy is the driving force behind the world economy. With increasing energy demands, especially in developing countries, and diminishing fossil fuel reserves and supplies, energy prices have been on the rise through most of the last decade. High prices along with concerns about energy security and fossil fuel impacts on the environment has spurred a renewed and more intensive effort to develop and commercialize alternative energy resources, including the generation of electricity from solar energy. Solar as well as other alternatives is vying for a more mainstream role in the global energy market. According to Shi Zhengrong, the founder, chairman and CEO of SunTech Power, as of 2012, unsubsidized solar power has already entered a competitive zone with fossil fuels in India, Hawaii, Italy and Spain. "We are at a tipping point. No longer are renewable power sources like solar and wind a luxury of the rich. They are now starting to compete in the real world without subsidies". He opines "Solar power will be able to compete without subsidies against conventional power sources in half the world by 2015". The future viability of solar energy projects will however be determined by a number of factors. The necessary policy recommendations that maybe suggested need to satisfy the priorities of increased economic development, poverty reduction and improved environmental protection. However, it is almost impossible forany recommendation to satisfy all three goals, as the needs of one area can conflict with the needs of another. Therefore the concept of sustainable development involves balancing the achievements in each area. Specifically, the recommendations are required to balance the following objectives: Socially Equitable Affordable Accessible Acceptable Environmentally Sustainable Minimise negative environmental impacts Minimise negative health impacts Safe Economically Stimulating Competitive Reliable and efficient

Comment [u13]: Just recommendation is fine as u r not investigating here with your primary dat calculations .

If effective support policies are put in place in a wide number of countries during this decade, solar energy in its various forms solar heat, solar photo-voltaic, solar thermal electricity and solar fuels can make considerable contributions to solving some of the most urgent problems the world now faces: climate change, energy security, and universal access to modern energy services. International Energy Agency, 2011. The effectiveness of the policy recommendations, if implemented, will be contingent upon the proper enforcement of regulations, monitoring, and evaluation of related actions. Lowering of production costs, higher electricity generation rates and the availability and proper utilization of sunlight are the principal challenges that should be taken into consideration. Sustained policy support will be necessary to assure the first two trends continue. Technological advances will be the key catalyst in the decline in the cost of production and the rising fossil fuel prices which will make solar power economically more attractive to the consumers. The availability and amount of sunlight, although not always critical (success of Germany and Japan), does contribute in raising productivity of the system and lowering production cost. There are two major options for solar electricity: distributed systems, in which production is close to or at the point of consumption, and centralized systems that are distant from the center of demand. Most distributed systems use photo-voltaic, either crystalline silicon cells or thin film. A variety of factors favor distributed PV over centralized PV or thermal options: low or no siting costs, lower maintenance and operating costs, no transmission costs, no water requirements, easily integrated with current infrastructure, and small environmental impacts. All the centralized PV and solar thermal projects occupy large tracts of land and will have a variety of impacts on water, land, wildlife, and transmission costs. Centralized systems on the other hand enjoy a comparative cost advantage from economies of scale and allow far more rapid and certain growth in capacity toward meeting the standards of renewable portfolio.

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The governments of many states over the years have created these various financial incentives to encourage the use of solar power, such as feed-in tariff programs. Renewable portfolio standards impose a government mandate that utilities generate or acquire a certain percentage of renewable power regardless of increased energy procurement costs. RPS goals has been achieved by a combination of solar, wind, biomass, landfill gas, ocean, geothermal, municipal solid waste, hydroelectric, hydrogen, or fuel cell technologies. In totality a broad range of policies will be needed to unlock the considerable potential of solar energy. These include establishing incentives for early deployment, developing public-private partnerships, removing non-economic barriers, subsidizing research and development and developing effective support for innovation. New business and financing models are required, in particular for up-front financing of off-grid solar electricity and process heat technologies in developing countries. The number of governments at all levels who consider implementing policies to support the development and deployment of solar energy is growing by the day. However, few so far have elaborated comprehensive policy sets. Public research and development efforts are critically needed, for example, in the area of solar hydrogen and fuels. Policies to favor the use of direct solar heat in industry are still very rare. Principal-agent problems continue to inhibit the solar power generated electricity mechanisms to be implemented in buildings, obstacles to grid access and permitting hamper the deployment of solar electricity, financing difficulties loom large. The recent growth in installment is concentrated in too few countries. Support policies include a significant part of subsidies as long as solar technologies are not fully competitive. They must be adjusted to reflect cost reductions, in consultation with industry and in as predictable a manner as possible. Incentive policies must not be abandoned before new electricity market design ensures investments in competitive solar energy technologies, grid upgrades, storage and balancing plants. The development of affordable, inexhaustible and clean solar energy technologies will have huge longer-term benefits. It will increase countries energy security through reliance on an indigenous, inexhaustible and costly import-independent resource, enhance sustainability, reduce pollution, lower the costs of mitigating climate change, and keep fossil fuel prices lower than otherwise. These advantages are global. Hence the additional costs of the incentives for early deployment should be considered learning investments; they must be wisely spent and need to be widely shared. With a view on the recent success of these strategies we may also take into consideration the following policy measures for the future development of solar energy generation: Renewable energy equipment should be exempted from sales and property taxes: Homeowners and businesses that install new solar energy systems should be rewarded for being early adopters. Exemption of renewable energy equipment from sales and property taxes will reduce the time period for solar energy investments to pay for themselves. Standards for solar in all state facilities and guidelines for solar in major constructions: The state should take the lead and set standards by which state buildings are to utilize solar energy technologies to reduce energy consumption and reduce their exposure to the increasing costs of energy. Although the initial equipment costs are high, the energy produced is free. Once state standards are set, they can be adapted, as appropriate, and used as guidelines for all new construction throughout the state. Statewide guidelines for solar installations to streamline permitting and inspections: Building and planning department inspectors need to know the technical details of the new solar technology being installed in order to effectively permit and inspect newly installed systems. A set of comprehensive guidelines for both solar electric and solar thermal can outline those areas which the solar industry feels a knowledgeable inspector should understand to adequately inspect a newly installed solar system. State tax credit for residential and commercial solar thermal heating and solar electric systems: The tax credits not only financially help people who want to install solar energy technology but also help to draw businesses, along with the associated jobs, into the area to manufacture the equipment needed to support the solar industry.

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I.9. CONCLUSION

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SECTION-II CARBON FOOTPRINTS II.1. INTRODUCTION

Comment [u14]: Spee d up writing this sectio too

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II.2. OBJECTIVES OF THE STUDY

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II.3. CARBON FOOTPRINTS

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II.4. LITERATURE REVIEW

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II.5. SOCIO-ECONOMIC AND ENVIRONMENTAL ASPECTS

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II.6. INDIAN SCENARIO

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II.7. ECONOMIC & TECHNOLOGICAL CHALLENGES

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II.8. POLICY RECOMMENDATIONS

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II.9. CONCLUSION

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REFERENCES
SECTION-I SOLAR ENERGY International Energy Agency, 2011.Solar Energy Perspectives: Executive Summary. IEA, (2011). 2009 Amendment of the Renewable Energy Sources Act EEG. Global Renewable Energy, Policies and Measures. REN21 (2005 to 2011 Issues). Global Status Report. Paris: REN21 Secretariat. Brown, M.A. (November 2001). Market Failures and Barriers as a Basis for Clean Energy Policies. Energy Policy (29:14); pp. 11971207. Dymond, C. (October 2002). PV Focus Group Report. Portland, OR: Energy Trust of Oregon. Goldman, D.P., McKenna J.J., Murphy, L.M. (October 2005). Financing Projects That Use Clean-Energy Technologies: An Overview of Barriers and Opportunities. NREL/TP-60038723. Golden, CO: National Renewable Energy Laboratory. Jacobsson, S.; Johnson, A. (July 2000). The Diffusion of Renewable Energy Technology: An Analytical Framework and Key Issues for Research. Energy Policy (28:9); pp. 625640. Sozer, H; Elnimeiri, M. (2003). Identification of Barriers to PV Application into the Building Design. Proceedings of the 2003 International Solar Energy Conference; March 15-18, 2003, Kohala Coast, Hawaii. New York, NY: American Society of Mechanical Engineers; pp. 527533. Bradford, T. (2006). Solar Revolution. The Economic Transformation of the Global Energy Industry. Cambridge, MA: The MIT Press. de Vries B. J. M., van Vuuren, D. P., and Hoogwijk, M. M. (2007). Renewable energy sources: Their global potential for the first-half of the 21st century at a global level: An integrated approach. Energy Policy, 35, 2590-2610. Timilsina, G.R.; Kurdgelashvili, L.; Narbel, P.A. (2011). A Review of Solar Energy: Markets, Economics and Policies. The World Bank, Development Research Group, Environment and Energy Team. EPIA/Greenpeace (2008). Solar Generation V 2008. Greenpeace and European Photovoltaic Industry Association. Singh, T. US Government Approves World's Largest Solar Plant, 27th November, 2010.

SECTION-II CARBON FOOTPRINTS

Websites: SECTION-I SOLAR ENERGY

Comment [u15]: Check this example for how wirte the weibsite reference Comment [u16]: Check this example for how wirte the weibsite reference

Indiastate (2012): Website of India State ( www.indiastat.com) accessed on (write date or duration ) www.energytrust.org/Pages/about/library/reports/02_PVFocusGroup.pdf www.nrel.gov/docs/fy06osti/38723.pdf www.thehindubusinessline.com/ http://www.webcitation.org/ http://www.dailykos.com/blog/Kosowatt/ http://en.wikipedia.org/wiki/Solar_power_by_country http://en.wikipedia.org/wiki/File:Solar_land_area.png

SECTION-II CARBON FOOTPRINTS

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