It is possible that business priorities might be revised in the post-Covid-19 era, but the need for improved execution and O&M will still hold good, irrespective.
New Delhi: Renewable power has steadily grown in importance over the past decade or so in almost all countries around the world, including India. Solar power constitutes the biggest percentage of the envisioned energy mix for the future. According to data shared by India’s Ministry of New and Renewable Energy, there is about 32.53 GW of installed solar power capacity in the country, while 25.05 GW capacity is under implementation and 25.78 GW has been tendered. India’s progress towards its solar energy targets recently faced a setback when the Covid-19 pandemic struck.
There has undeniably been a short-term impact, but there have been some positives too
The disruptions in global and domestic supply chains have posed a serious concern for solar developers and solar equipment manufacturers in the country, at least in the short-to-medium term. Moreover, the pandemic has impacted the execution of ongoing projects. According to CRISIL, projects worth Rs 160 billion, totalling 3 GW of solar power capacity, could be hampered by delays. Some news reports suggest that India could add only about half the expected solar power capacity in the first quarter of 2020. This short-term impact, however, is mild compared to the grim outlook for the next few years, which is likely to be characterized by reduced power demand, financially stressed discoms, and constrained financing.
Nevertheless, there are some silver linings amidst the gloom. For one, the lockdown witnessed an increase in solar generation in the country – a phenomenon that can partly be attributed to the clear skies and low levels of pollution during this period. Secondly, the industry slowly seems to be breaking free of the pandemic-induced inertia. One of the country’s biggest conglomerates has announced plans to build 8 GW of photovoltaic solar power capacity over the next five years and establish 2 GW of solar cell and module manufacturing capacity. We need many more such initiatives to meet our renewable targets and rapidly ramp up domestic capacity for manufacturing solar equipment.
Launching solar power projects, however, is only the beginning of a big, ongoing task – executing it flawlessly and optimizing its subsequent operation and maintenance (O&M).
Cost-efficiency and resource allocation is the key to successful execution
In India, solar projects are generally executed using either the EPC (Engineering, Procurement, Construction) or the package model. The former is preferable if there aren’t as many skilled resources available as are needed to manage the project. The package model, on the other hand, allows companies to deploy large teams for the project in a cost-efficient manner.
Any optimization of the plant design that needs be done must be in accordance with the capex indicated in the winning bid. Optimizing plant capacities and using private investments to minimize cost of capital can help in creating generation assets with low unit cost. If the project involves the construction of a transmission line or a sub-station, it is advisable to have a dedicated team in place from the outset to look into issues pertaining to right of way.
Leveraging technology in O&M yields better efficiency, productivity, and cost-effectiveness
With competitive bidding becoming the norm for the solar power sector, there is more emphasis than before on achieving cost-effectiveness and portfolio consolidation. The O&M of a project is no longer an afterthought but one of the prime considerations for the project developer, as it has a direct bearing on the competitiveness and the efficiency of the project. As the size of the project increases, so do the O&M costs. It has thus become necessary to re-look at conventional O&M approaches, and leverage technology for better outcomes.
For instance, remote solar photovoltaic monitoring systems that track power output real-time can be used to ascertain whether the solar panels are working properly or not. One can employ thermal imaging techniques with the help of drones to monitor the health of the installed solar modules. Drone surveys can also provide information on vegetation growth and boundary condition around the solar farm. Solar power companies can, and should, move from preventive maintenance to predictive maintenance by employing artificial-intelligence-based tools; this will make plant management more efficient, more productive, and more cost-effective.
It is possible that business priorities might be revised in the post-Covid-19 era, but the need for improved execution and O&M will still hold good, irrespective. It is time to resume chasing business and national targets with a sharper eye out for new, domestic opportunities and with better use of technology.
[This piece was authored by Ashish Jain, Vice President, India, Projects and Assets Management, Fortum India]
[Disclaimer: The views expressed are solely of the author and ETEnergyworld.com does not necessarily subscribe to it. ETEnergyworld.com shall not be responsible for any damage caused to any person/organisation directly or indirectly]
Source: energy.economictimes.indiatimes
