Sunlight Goes To Waste: India's Grid Failure

By Mahesh Bhave, Indian Institute of Management
02 August 2012   | 

 

India's recent electric grid failure on July 30 and 31 has been determined the world's largest blackout. This event will no doubt spur some movement toward efficiency and discipline. India requires new and innovative thinking and effectiveness through structural change. This is also the time to focus on renewable energy, particularly solar photovoltaics.

“India is the Saudi Arabia of renewable energy sources and, if properly utilized, India can realize its place in the world as a great power,” said Jeremy Rifkin, an economist and activist, in New Delhi in January, “but political will is required for the eventual shift from fossil fuels to renewable energy.”
Even if 10% of India’s energy needs can be met by solar, it would be a huge contribution in taking the edge off peak load on the existing grid.
Solar panel prices have dropped by over 50% during the past year, and those of the supporting hardware — including cables, connectors, inverters — will continue to drop at a slower rate. Overall, system prices now are practically at “grid parity” — the price per unit of electricity is comparable to the price of coal-based power. This is especially the case when the costs of greenhouse gas emissions from burning coal, an “externality” until now, are taken into account. And we are even closer to grid parity when the average price includes the unsubsidized cost of diesel-based generation, frequently used when power fails.