Tuesday, November 17, 2009

Strategy Challenges of solar energy players

hi Friends
I am sharing the link of my white paper done in the course of my MBA at Hult International Business School ( www.hult.edu) and Harvard ( www.harvard.edu).

Appreciate it, if you come up with valuable suggestions/comments
http://www.slideshare.net/kpranay007

Suryanamaskar ( Sun Salutations)
pranay

India's ambitious solar program

hi Friends
Writing after a long time. I have just finished reading India's national solar mission. Its a very comprehensive and detailed document. The only dampener ,I see right now, is lack of accelerated depreciation program and no capital subsidy for solar energy players in segments other than solar heating.

Here is a link of the pdf file by Greenpeace. Hope the enthusiasts and people having even a passing interest would comment/feedback on it, on my blog. Would actually appreciate the comments.
http://www.greenpeace.org/international/assets/binaries/national-solar-plan

There is an article in New York Times ( NYTIMES) , link of which is also posted below.
http://greeninc.blogs.nytimes.com/2009/06/05/could-india-become-a-solar-leader/

There have been some contrary developments in terms of technologies coming up. There has not been many enthusiastic states, which have come up with their own solar incentives , specially in commercial and residential ( mostly PV based ). But solar thermal ( Concentrated Solar Power or CSP ) is beginning to pick up in states like Gujarat, Rajasthan and even West Bengal.

I will discuss each of the issue and technology in following blogs/articles in coming weeks

Until then,
Surya Namaskar ( Sun Salutations)
Pranay

Thursday, April 16, 2009

Solar energy, Sustainability and Economic poverty

According to World Energy Outlook 2008, an annual report published by International Energy Agency (http://www.iea.org/), China and India would account for around 50% of increase of total world primary energy demand. This is based on the reference scenario ( we would discuss the assumptions of the reference scenario in another article) of IEA.
The reference scenario's main assumptions are
1) world energy demand grows at 1.6%/p.a. from 11, 730 Mtoe to 17010 Mtoe ( million tons of oil equivalent),
2) Cumulative investment of 26 Trillion USD ( at 2007 USD rate)
3) World supply to rise to 106 million barrel/day from 84million barrel/day4) Oil import price ( at 2007 real USD ) at 100 USD between 2008-15 and 120USD ( reflecting the supply constraints) between 2015-2030
If we rely on this scenario, the two largest nation ( population wise), which are nowhere near the developed countries' per capita consumption of energy, would be the largest consumers of world's energy and the largest contributor to the rise in green house gases ( GHGs).

What this has to with sustainability and poverty? Lets take an example from India.

One woman in village not far from a metropolis in India, sometimes has to go as far as 10 miles to collect wood and sometimes miles to get clean ( supposedly) water for the family's daily requirement. Even in a town having water pipelines, people have to waste time to either wait for 30 mins of water supply in a day or get diesel generated pumps to draw water from underground ( also reducing each year the ground water level, which further increases the energy usage for pump).



So people are either using time or fossil fuel energy to just get the basic requirements of their daily need. So the opportunity for the woman, who could have either gone for education and increase her prospects of earning or better her earnings, is lost. She is stuck with her economic status and her social standing too.
The person from the town is spending money and time for meagre fulfillment of daily water needs.
Now lets consider a megalopolis like Shanghai. Rapid pace of development all using conventional energy, adding to the cost and pollution of that city. The heat generated in development adds further to the urban heat phenomena, prompting an increased usage of electricity for cooling. This also increases pollution from coal generated power ( China heavily relies on coal) somewhere in the countryside. This cycle is vicious.
An individual and a city loses money, loses time, increases pollution. Further to contain and reduce pollution more money is spent.
To sustain the growth, countries like USA enters into needless wars and spends billions, which could have been used in development of infrastructure and education. With war comes further deterioration of of economic and social misery, which adds to the cost of the oil.
Hence, cost of pollution, war, diseases and socio-economic strife should be added to the cost of fossil fuel, specially oil to determine the "real" cost of oil.
Now lets take an alternative way of producing the same energy. Solar energy. Available in most parts of the world, becoming cheap every year, clean, pollution free and promotes cooperation amongst nation rather than wars. Look at the companies and policies of major nations in renewable and solar energy. The companies are spread across the world, China, Germany, India, USA, Spain, Australia, Japan.

Solar energy in particular can be used independently, saving billions in transmission losses and fulfilling the basic needs of people without electricity. Its sustainable too, requiring no wasteful resources. Besides that potential for clean water consumption also increases ( reducing water borne diseases and saving precious lives). Water borne diseases like diarrhoea are common cause of disease and death. Water can be drawn from underground as in countryside of Turkey, India or China or purified from desalinisation process in cities like Chennai, India.

Fulfilling the basic needs families and individuals and finally societies and countries can concentrate on development and bettering the lives of billions as in Africa or Bangladesh.
World would find new possibilities and a more equitable and sustainable way of living.

Thus solar energy would contribute to a sustainable living for vast majority of billions, reduce poverty thus socio-economic conflict and focus on development issues. So what are we waiting for ? Oil or our inertia towards change?
Note:More quantitavive version of above would be discussed in another article later.
Sun smile Pranay

Saturday, March 28, 2009

Kuhn's paradigm shift, Christensen disruptive innovation and solar energy

Solar energy ! These two words spark energies in supporters & proponents and opponents alike.

Some say, it has come of age and some believe the technology ( or rather technologies ) has yet to prove itself.

Looking at Kuhn's paradigm and the recent Clayton Christensen's disruptive technology, we can attempt to analyze the case.


Kuhn's paradigm states that when a present model which has been governing the system ( here energy consumption and industry) starts to fail , there is a drift away from it and a crisis develops. This crisis leads to a revolution in model and finally there is a change and a new model.

Its like when Copernicus and Galileo's theories challenges the incumbent model ( of Church being the supreme authority in society). Same happened when Hinduism was challenged by rising wave of Buddhism and its centrality of non violence and equity in society.


In technological arena the information gathering and delivery was challenged by Google's search model. Cellular phones challenged landlines.

Clayton Christensen a professor at Harvard Business ( http://www.hbs.edu/) School ( http://www.claytonchristensen.com/disruptive_innovation.html ) propounded the disruptive innovation theory. It states that by sustaining innovations industry/company open doors to disruptive innovation. Note that the innovation is called disruptive in retrospect ( when it has proved itself as acceptable by the intended target/market ).


Combining these theories for solar energy technologies and innovations, lets look at whats happening in present and what drove the past.

Energy forms the center of our lives as electricity and fuel. If we notice wood was used for centuries as a fuel source until coal was discovered in 18th century and through sustainable innovations continued to meet the needs of people. Sustainable innovations in mining methods and machinery caused the cost to go low then it was adopted by the masses. Thus adoption by masses created disruption in use of wood as primary source of fuel.
In mid 19th century oil did the same with coal, what it had done with wood. Fossil fuels sustainable use has come into question; due to pollution, rising demand and depleting supply.Nuclear energy has not been able to dislodge the fossil fuel as a model source of energy. So there has been a model crisis ( look at the Kuhn's model above) and that led to a model revolution in form of renewable energy ( specially Wind and Solar ). But renewable energy has yet to establish itself as a sustaining model of energy and accepted by the masses by driving down the cost.
Inside of solar energy industry, specifically the model drift has started to develop as efficiency and of some technologies have been challenged. This has happened as not every business model and technology is in a position to drive the cost down and be adopted by the masses. So what would happen is there would be a mergers and acquisitions amongst companies and industry would have to choose , which technologies work best. Other companies and technologies would fade away or remain in margins.
There has been a new model in recent times , which challenges the conventional thinking of Kuhn's paradigm itself. This theory of analytical activism ( http://www.thwink.org/sustain/manuscript1/index.htm ) suggests a new path to circumvent model revolution stage to quickly reach the paradigm shift to become the disruptive innovation.
This model charts a path of problem identification, understanding of the problem, solution and eventual implementation to reach paradigm shift.
Taking this into account, renewable energy players have to look at present challenges like efficiency (like in PV,Thin films and organic-inorganic hybrid ), limitations of each technology ( geographically and willingness to pay) and grid and off grid adaptability inside and outside of government incentives and programs.
The game has just begun and world is a bit confused over the changes, as happens in any creative work coming out of chaos, so lets wait ,watch and contribute ( after all we all are end users and customers too).
Until then let the Sun Rise on renewable energy !
Waiting for your feedback and comments
cheers Pranay

Wednesday, March 25, 2009

Edison: Earliest Electric cars, Plug-ins,Solar energy and Windmills

"I'd put my money on the sun and solar energy. What a source of power." Thomas Alva Edison, 1931 just before his death.The prophetic words of this innovator and entrepreneur par excellence is coming true, though it took time, almost a century. Renewable energy is making strides in efficiency and cost reduction and is close to reaching grid par parity ( cost of power equivalent to that produced by fossil fuels without subsidies ) within a decade.



General Photographic Agency/Getty ImagesThomas Edison holding one of the batteries used to power his early electric car, the Baker


An article in Atlanta Constitution in 1901, summarizes how he dreamt of powering a cluster of houses in rural area with wind mills. In 1911 he build drawings of windmills and encouraged manufacturers to build a prototype. Joining hands with Henry Ford he also developed electric cars ( like Teslas and Revas of these days) which would be affordable and practical. The article also discuss plans for plug-ins ( like Better Place of today) along the trolley lines and recharging of batteries using wind energy.


In 1912, his ingenious brilliance and entrepreneurial spirit drove him to design a completely energy sustainable house, completely offgrid, with amenities like heating and cooling, washing machine, electric cooking range and light bulbs. The charge came from 27 batteries in the basement and he was thinking of charging them through windmills later.The NewYork Times described the model experiment in NJ as "utterly and for all time independent of the nearness or farness of the big electric companies".


His dream of providing electric at failed at that time, maybe because for large gas and electric companies it was a threat as it is now too.


I started this blog with this conversation because Edison's spirit represents in all companies involved in renewable energy, transforming the world with clean, affordable energy, which also changes the dynamics of social reality and helps inching towards social equity ( more of it on www.sing-onlypossibility.blogspot.com, my blog on socio economic issues and life as a possibility ).


Cheers ! Pranay

Courtsey: Heather Rogers,New York Times, June 3rd 2007.