Thursday, May 23, 2013: India might be a country struggling with an endemic crisis in its power sector but rich demographics mixed with the strength of its burgeoning middle class has meant that it is a delectable option for solar companies looking makes their fortunes.
One such company is First Solar. An equipment maker, based in US, the company has announced its plans to make India a focus of its business, and is supposed to be scouting for partnership possibilities to expand its horizons in the country.
“India is a growing and is a big market (for solar power) in the long time to come,” says James A Hughes, CEO, First Solar. “Besides India, other markets that are lucrative right now include the United States and China,” he says. First Solar already has some presence in India and was an equipment supplier for over 360 megawatt installed solar energy capacity. “The cost of electricity in these markets (emerging) tends to be high relative to rest of the world. We think solar (energy) is very appropriate for markets and economies where much of the energy is imported, which again fits India. These characteristics make emerging markets, India in particular, attractive,” Hughes says. At present, First Solar has captured about 20 per cent of the relevant Indian solar power market.
The primary challenge according to Hughes with the solar energy offtake will be the fact that there is still a paucity of funds in the sector. “The single largest challenge in the Indian market is availability of capital, particularly debt capital. Our focus is to have broad financial relationships as possible,” he says.
Nevertheless, his company, he says is looking at the creation of an industry that allows open access contracts. Some of the new age technology that they are eyeing include industrial roof-top diesel replacement, and the off grid energy access.
