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The potential of any successful project cannot be realized without effective and efficient expert management. An engineering, procurement, and construction (EPC) company comes into play there. An EPC company can be very instrumental in a large infrastructure project or even in improving your operations. In this blog post, we shall discuss some of the advantages that a business can gain from engaging an EPC firm in any industry whatsoever. Cost-effectiveness, efficient project management, and access to advanced technologies and resources. Prepare for what success lies in collaborating with an EPC company. Therefore, moving on to the benefits you stand to gain by collaborating with these specialists in the respective field. 

What is an EPC company, and what do they do?

An EPC company, short for Engineering, Procurement, and Construction, is a comprehensive service provider that offers end-to-end solutions for various projects. They play a pivotal role in managing the entire project lifecycle – from concept design to construction and commissioning. 

With their expertise in engineering disciplines and vast industry knowledge, engineering, procurement, and construction companies bring together diverse teams of professionals who specialize in different areas such as civil engineering, electrical engineering, mechanical engineering, and more. This multidisciplinary approach ensures that every aspect of the project is meticulously planned and executed.

The procurement aspect involves sourcing materials and equipment required for the project at competitive prices without compromising on quality. From negotiating with suppliers to ensuring timely delivery of materials to the construction site – an EPC company handles it all.

When it comes to construction management, an EPC company takes charge of overseeing the actual implementation of the project. They coordinate with contractors and subcontractors while adhering to strict timelines and safety standards.

In essence, an EPC company acts as a single point of contact responsible for managing all aspects of a project – from design optimization to cost control – resulting in streamlined operations throughout the entire process. Their aim is to deliver projects efficiently while minimizing risks and maximizing value for their clients.

How does working with an EPC company benefit businesses?

Cost-effectiveness and efficiency

Cost-effectiveness and efficiency are two key benefits of working with an EPC company. By entrusting your project to professionals who have expertise in engineering, procurement, and construction, you can achieve significant cost savings without compromising on quality.

One of the ways that leading EPC companies in India help businesses save costs is through their extensive network of suppliers and contractors. They have established relationships with trusted vendors, enabling them to negotiate better prices for materials and services. This translates into lower costs for the client.

Moreover, EPC companies are skilled at optimizing project schedules and resource allocation. They carefully plan each phase of the project to ensure smooth execution within the stipulated time frame. Their experience allows them to identify potential bottlenecks early on and take proactive measures to avoid delays.

Streamlined project management

Streamlined project management is one of the key benefits of working with an EPC company. With their expertise in handling complex projects, these companies are adept at ensuring that every aspect of the project runs smoothly and efficiently.

One way they achieve this is through effective planning and organization. EPC companies have a systematic approach to project management, which includes defining clear objectives, setting realistic timelines, and allocating resources effectively. This helps to minimize delays and keep the project on track.

Another aspect of streamlined project management is effective communication. EPC companies understand the importance of regular communication between all stakeholders involved in the project – from clients to contractors to suppliers. They ensure that everyone has access to relevant information, updates, and instructions throughout the entire process.

Expertise and experience in diverse industries

When it comes to working with an EPC company in India for power, one of the key benefits is their expertise and experience in diverse industries. These companies have a deep understanding of various sectors, ranging from oil and gas to power generation, infrastructure development to renewable energy.

With their extensive knowledge and exposure to different industries, EPC companies bring valuable insights and best practices that can greatly benefit businesses. They are equipped with the skills and know-how necessary to navigate complex projects within specific sectors. This means they can provide tailored solutions that meet industry-specific requirements and regulations.

Access to advanced technology and resources

Access to advanced technology and resources is another significant benefit of working with an EPC company. These companies are constantly investing in the latest technologies, tools, and equipment to stay at the forefront of their industry. By partnering with an EPC company, businesses gain access to these cutting-edge technologies and sustainable development processes without having to make substantial investments themselves.

One advantage of this access is improved efficiency. Advanced technology can help streamline processes and increase productivity. For example, EPC services often utilize sophisticated project management software that allows for real-time collaboration and tracking of tasks. This not only speeds up project timelines but also ensures better communication and coordination among team members.

Furthermore, EPC companies in India for infrastructure often have well-established relationships with engineering firms and manufacturers around the world. This enables them to source high-quality equipment at competitive prices for their clients’ projects.

Conclusion

Collaborating with us, an EPC company in India with a commitment to innovation is undoubtedly advantageous for any business looking for comprehensive support throughout the entire project lifecycle. The combination of cost-effectiveness through consolidated contracting arrangements alongside streamlined project management practices ensures successful outcomes while allowing organizations to focus on what they do best – growing their core business activities!

The EPC or turnkey contract is proposed for businesses that intend to undertake large-scale infrastructure projects. This contract will specify that the hired company will be responsible for covering the planning, engineering, procurement, construction, and all other aspects necessary for the successful completion of the project.

Hence, choosing the right EPC (Engineering, Procurement, Construction) company becomes essential. Without it, the businesses will find it difficult to meet their quality expectations from the project. 

Therefore, to help you decide better upon hiring a contractor with the right expertise, this article will educate you on some of the crucial factors to consider when choosing an EPC company.

Factors to consider when choosing an EPC company

Some of the factors that you must count on while choosing an EPC (Engineering, Procurement, Construction) contractor or company are:

• Transparency

The company or contractor you hire should exhibit utmost transparency at all stages of implementing the project. They should keep you updated with all sorts of progress, problems, or halts concerning project bidding, consulting, reception, planning, warranty, implementation, or handover. 

All forms of financial plans associated with the contract should be disclosed openly without any hidden charges or attributes. In case there is any variation in it, the contractor or company must talk about it prior to implementing the changes. 

• Quality Standards

The EPC engineering company you hire should focus on deriving quality as a priority. They should take responsibility for ensuring that all the requirements and expectations of the clients are met on priority. You must also take note of what approaches they take in order to achieve the end goals as specified by you. 

For an EPC contractor to adhere to the quality standards, it is important for them to have a proper quality control strategy within the operational efforts. For instance, they should emphasise adding more inspection procedures and meticulous testing. 

As per Government compliance regulations, different EPC projects are meant to implement ISO 9001 as their optimal QMS (Quality Management System). This system will outline the overall processes and procedures for deriving the utmost quality in executing all the projects.

• Optimal Project Management

It is quite crucial for the EPC contractor to have outstanding project management capabilities alongside an experienced and qualified team. Upon handing over your construction project to them, they should take charge of establishing a clear plan of approach with different milestones and specific deadlines. 

Moreover, they must be proficient enough to identify critical risks/challenges that might hinder the commencement of the project and address them. Adequate project management will help you be at peace and be assured that the progress is being supervised by the right team or individual. 

• Cost Optimization

One of the biggest factors that you must consider while hiring an EPC contractor is their cost optimization capabilities. It means they should have the ability to keep the construction expenses within the budget specified and help scale the returns associated with it. 

For almost all EPC projects, cost optimization is the key to identifying potential opportunities where the costs can be minimised. Such expertise is very important for any EPC contractor to possess in order to settle the costs in favour of the client through proper negotiation with suppliers or by choosing cost-effective materials. 

Tips for Choosing the Best EPC Company

Beyond the important factors, here are also a few tips for choosing the best EPC company for your project needs:

1. Define the scope of your project clearly and use it for making accurate project bids for the facility construction. 
2. Experience is the key. Even if the EPC contractor stands out on all these pointers but has a poorly experienced team, then it won’t work well for you. So, do study the overall experience of the team while assessing the EPC company as a whole. 
3. The EPC company you hire should emphasise promoting sustainability in all areas possible. If you want your project to be part of a movement where adverse environmental impacts are reduced, seek a contractor who adopts sustainable practices and resources. 
4. The contractor should not cut corners associated with safety just for the sake of completing the work within a specified time and budget. 

HARTEK: The Ultimate EPC Company of India with Utmost Expertise & Proficiency

Finding the right EPC company for your needs might seem like a challenge, but when you take note of the factors and tips stated above, it will be easier for you to tone down the list and filter the one that would meet your needs and requirements associated with your project. 

HARTEK, one of the leading EPC firms in India with an expertise of over 30 years, has been offering impeccable services to diverse clients. So far, we have established our service proficiency in more than 21 states of the country. The company is evolving on the scale of adopting modern technologies, which assists us in building powerful and futuristic cities in the nation. 

If your project intends to contribute to this mission of the nation, HARTEK can be your one-stop hub to help meet your quality, proficiency, and deadline requirements. 

Conclusion

As you have reached the end of this article, you are already aware of what factors or pointers to take note of while choosing an EPC contractor. Well, in the cosmos of multiple players in this industry, your intent should not just be to hire the most affordable contractor in the business but to hire the one that is the most proficient among all. In this way, you will be able to build a successful relationship with an EPC company. 

Considering this, HARTEK has been proving its proficiency in the EPC sector for a long time now and has all the right tools & expertise to take on almost all kinds of complex projects. If you are in need of more information or a price quotation, you can connect with us anytime, as our consultants await your service requests. 

EPC or Engineering Procurement Construction is a type of contracting agreement within the construction sector. The EPC sector is considered the second largest segment in the Indian Economy, which is playing a big role in introducing more employment opportunities in the nation. 

EPC contractors have experienced staff members who are experts in multiple engineering domains to take up complete responsibility for clients’ construction projects. Over time, EPC companies have evolved their work approaches and have filled the gaps to ensure better project executions. 

If you want to learn more about EPC companies driving India’s infrastructure revolution, let’s explore their purpose a bit more in-depth and understand the role of EPC contractors or firms towards infrastructural developments in India. This article gives you clarity on different areas where EPC companies have marked their presence as a strong contributor toward promoting growth for individuals, businesses, and the nation as a whole. 

What is the Contribution of EPC Companies for Diverse Infrastructure Advancement Aspects?

To help you understand the future or sustainability of the EPC industry in the nation, here are some domains where this sector is accountable as a great team player for achieving the end goals:

1. Smart Cities

EPC companies and India’s smart city mission are connected to help the nation reap outstanding benefits. India is putting up a very fast-paced call for boosting urbanisation and taking it to the next level through the introduction of smart cities. Such approaches involve the construction of modern infrastructure, which requires a certain level of expertise.

EPC firms have the right tools, resources, and expertise in order to be the pivotal support system for creating sustainable or technologically advanced urban infrastructure. With the use of the latest IoT or connected technology solutions in smart city development projects, economic growth for the country can be facilitated. 

Moreover, the EPC sector evolution in India also indicates improvements for the environment, optimisation of the transportation systems, and reduction of the costs associated with managing public assets. All of it and more are part of the smart city development projects. 

2. Renewable Energy Sector

India has a core commitment to promoting the use of renewable energy, which presents a substantial growth rate for the Engineering, Procurement, and Construction (EPC) sector. The country has a goal to achieve a specified rate of renewable energy share, and EPC firms can take this opportunity and make investments in wind, hydropower, and solar projects. 

EPC companies and India’s renewable energy sector, when combined, ensure the utmost flexibility in terms of easy project management and quality executions. The professional technicians and engineers are all dedicated to using high-quality materials and providing reliable installations. 

With the pace at which the top EPC companies are delivering their projects, soon, a bigger part of the nation will be running mostly on renewable energies, promoting immense sustainability without much carbon emissions. 

3. Global Expansion

EPC companies and India’s global competitiveness are quite aligned in a systematic pathway. The Indian EPC firms or contractors have the potential to enter international markets to boost industrial growth. 

Since EPC firms have highly skilled personnel, specialized equipment, extensive capabilities, reasonable price brackets, and extensive experience, it will be easier for them to participate in diverse projects of all the other developing countries around the world. Thus, this shall contribute further to the scale of the economic diplomacy of India. 

EPC companies pay special attention to analysing the potential of the market within the country for cooperating with the long-term or short-term returns associated with the organisation. The government is readily supporting the growth of EPC companies in accordance with international expansion. 

4. Risk Mitigation

EPC companies have been implementing outstanding risk management strategies for addressing issues such as cost overruns, regulatory uncertainties, and project delays. They have been adopting diversification of the project portfolios and are conducting due diligence to help mitigate any possible risks in respective approaches. 

Due diligence is the approach where EPC companies validate the capabilities of the suppliers to ensure that they are competent enough to deliver the required services and products. In short, due diligence will help EPC companies evaluate the quality control approaches, past performances, and financial stability of the suppliers before they are onboarded to the project. 

Moreover, the EPC contractors connect or collaborate with the stakeholders to prepare an efficient, comprehensive risk assessment & management plan. Following that, these companies also make use of technology solutions such as AI, blockchain, and data analytics to gain comprehensive visibility into the project’s supply chain and detect potential risks as soon as possible. 

Conclusion

The innovation-driven EPC services are booming at a rapid state and have surpassed a lot of challenges to be in a thriving position today. From funding constraints to the regulatory hurdles, things have been very complex for EPC companies in the past. But as of today, EPC companies are the critical drivers of India’s infrastructure development and economic growth. 

HARTEK, being one of the contributors in the EPC sector, has a strong foot forward in helping the nation move forward with fast-paced, smart city projects, renewable energy projects, and global expansion. May it be clients or the country as a whole, HARTEK has never backed down from delivering quality services on priority. 

Whether it’s meeting deadlines or supervising the progress of the project at every stage, we have experienced team members to adhere to every condition in the contract. To learn more about EPC and the growth pace of this sector, connect with us right away! 

Meeting the ever-growing demand for energy to fuel the requirements of a burgeoning economy poses a major challenge for Indian policymakers. Given the considerable economic and environmental cost of producing every unit of electricity, energy-efficient buildings with sustainable practices have emerged as the focus of attention.The effort will be really worth it when you come to think that buildings account for the highest electricity consumption worldwide, estimated to be 40 per centby the International Energy Agency.

As we embark on rapid urbanisation, the unprecedented upsurge in the number of new constructions will be accompanied by a manifold increase in demand for electricity.The impending situation calls for designing and developing buildings of the future by incorporating energy-efficient features and sustainable practices. The construction cost of energy-efficient buildings may be higher, but they turn out to be cheaper in the long run as they consume less than half the energy in comparison to conventional buildings.A study conducted by TERI to investigate the financial feasibility of green building investments by evaluating the economic impact of incorporating energy-efficiency strategies in commercial buildings revealed that the incremental capital investment for a green building is recovered with paybacks of one to three years.

Besides a zero energy/passive solar building design and low-energy building materials, green buildings typically involve components like energy-efficient equipment and integration of renewable energy technologies for various applications.While low-energy buildings require little energy for space heating/cooling, efficient power supply depends on a robust transmission infrastructure, which is characterised by smart grid applications like Supervisory Control and Data Acquisition (SCADA). A smart grid entails a variety of operational and energy efficiency measures like smart meters and smart appliances.

Whereas conventional buildings rely on multiple systems for lighting, heating and other functions with each one operating independently of the other, as if in silos,green buildings promise to improve energy efficiency by connecting these systems, thus leading to an appreciable reduction in operating costs.An energy-efficient building balances all aspects of energy use in a building like lighting, space-conditioning and ventilation by providing an optimised mix of passive solar design strategies, energy- efficient equipment and renewable sources of energy.

While state-of-the-art engineering and architectural techniquesnot only add to the strength and stability of the structures but also reduce maintenance charges,optimisation of space design, characterised by features like large window openings for natural lighting and cross-ventilation, enhances the flow of energy. The linear design, for instance, significantly brings down the construction and maintenance cost by aligning the water supply pipes, sewerage lines, electrical conduits and HVAC ducts in a straight line with a single duct system put to multiple uses.The buildings are designed and aligned in such a way that the sunrays do not fall perpendicularly on top of the building, thus reducing the heating up of the structures and cutting down on the use of air-conditioners.

Spelling out the minimum requirements and guidelines for energy-efficient buildings, the Bureau of Energy Efficiency had introduced the Energy Conservation Building Code (ECBC) for new commercial buildings in May 2007. While the target for the 12th plan is to make 75 per cent of all new commercial buildings ECBC-compliant, it is up to state governments and local bodies to enforce the code after modifying it as per their requirements.Only seven states and one union territory have notified and adopted ECBC, whereas the remaining are still in various stages of implementing it.

Though India aims to reduce the emissions intensity of its GDP by 33–35 per cent by 2030 from the 2005 levels, it is easier said than done. We have a long way to go as the stock of energy-efficient buildings in India comprises just 1 per cent of the total building stock. It is projected that by 2050, India will see an unprecedented 400% escalation in floor area. But energy efficiency in the residential segment has not been a priority so far. We cannot achieve a significant scale unless standard is efficiency measures for residential buildings, which make up for 75% of India’s construction market. Let’s put things on a fast track by overcoming the financial barriers hindering the adoption of energy efficiency measures for buildings through relaxations in duty, incentives, tax benefits and attractive financing schemes.

In 2018, the solar power industry saw a 24% increase in its y-o-y capacity additions, while hydropower saw 2% and wind energy saw a 10% increase. Although a majority of the solar capacity additions were dominated by Asia, new markets like Brazil, Saudi Arabia, Egypt, Spain and Latin America saw considerable growth.

The remarkable upsurge in private participation in the power sector in India and the government’s thrust on renewable energy is in sync with the country’s solar overdrive in pursuit of the 100-GW target for solar projects, there are impeding issues like tender cancellations of mega projects. China’s policy shift, feed-in-tariff cut in Japan, and policies levying of taxes and duties on solar energy industry in India limited solar sector growth in 2018, but the solar sector is expected to bounce back in 2019.

With the tender process picking up pace in FY 2019-20, we have a lot to look forward to this year. Pursuing a 40-GW target, the government is also all set to give a big push to the rooftop segment through favorable policies like net metering.

Solar Power is India’s Green Future as it presents a great opportunity to phase out fossil fuel and its growing expenses while transforming the country with industrial, social, and economic growth. The future of solar energy in India largely depends on achieving the ambitious solar power generation target of 100 GW by 2022. With the cumulative solar capacity going up to 36.36 GW, as on June 30, 2019, the market sentiment is upbeat because of the record number of installations.

We believe that by 2030, India’s solar industry is poised to grow phenomenally. The country will need $250bn in green energy funds from 2023 to 2030. Investment opportunity for over $30bn per year is expected to come up in the next decade, according to the Economic Survey.

Significantly, India is running the world’s largest renewable energy programme. Solar power generation holds the key to the unprecedented growth India needs to register to get to the magic figure of 100 GW. Fuelling the ever-growing needs of practically all the other key sectors, the power sector forms the backbone of our rapidly expanding economy. Since sustainability is at the heart of all development efforts directed towards building a New India, the country is aiming at increasing the share of renewables in the total installed power capacity to 50% by 2030 with a major chunk coming from solar energy. This is in tune with another dimension of Vision 2030 which foresees India as a pollution-free nation with green environs and blue skies. Renewable sources in general and solar power in particular can make all the difference here as a major source of energy supply.

It is pertinent to mention here that about 40 per cent of the power capacity installed in India this year is solar. All-out efforts at transforming the energy mix are under way. In the Indian solar market, almost every passing tender has promised to deliver cheaper electricity. The solar industry is entering a period of cost efficiency, thanks to advances in technology and competitive bidding. Solar power tariffs in India have plunged to a record low of Rs 2.44 per unit, which will push demand in a big way.

The solar industry has witnessed rapid growth in the last few years and is expected to grow even more in coming years. To encourage the shift from environmentally detrimental sources of energy to cleaner alternatives, the government has been playing an active role by introducing several incentives, such as GBIs, capital and interest subsidies, which are likely to reduce the dependency on conventional energy and increase adoption of solar power.

These measures involve setting up several small solar projects on barren land and introducing solar water pumps.

To further encourage the adoption of solar power, a slew of welcome initiatives has been recently introduced by the government, which have been welcomed across the industry. This includes the imposition of BIS standards on solar imports, besides ensuring adherence to the quality of products instead of mere price benefits. Another welcome step in the concept notes released by the MNRE proposes the development of 10 GW of manufacturing capacity over a period of five years, which focuses on both polysilicon and wafer manufacturing to create integrated silica-to-modules packages and intermediate standalone packages or combinations.

One of the biggest advantages of solar power is the ability to avoid the politics and price volatility that is increasingly characterising fossil fuel markets. While the prices of fossil fuels have increased, the per watt price of solar energy production has more than halved in the past few years and is set to become even cheaper in the near future as better technology and economies of scale come into effect.  The first benefit of using solar panels to generate electricity is that they do not produce any environmentally detrimental greenhouse gases.

Renewables account for a sizeable share of the power capacity additions, highlighting the significant investment flowing into the solar sector in particular. No wonder, India has emerged as the third largest solar market globally. But we still have a long way to go to become a global solar superpower like China and US.

To achieve the target, India needs heavy investment in coming years. A major part of it has to be raised within the country, as the renewable sector could so far only attract a foreign direct investment (FDI) worth $7.5 billion in the last 18 years (2000-2018), according to a report by the India Brand Equity Foundation.

The solar sector can accelerate its growth by focusing on manufacturing and supporting domestic solar panel manufacturing industry with sizeable investments. This will help India scale greater heights like China, which penetrated foreign markets by undercutting their market prices. By working overtime on its solar panel manufacturing capacity, China was able to support its own solarisation, ring in revenues from exports and create jobs. India needs to follow a similar roadmap.

We need to pick up on the domestic manufacturing front. Various efforts by the Solar Energy Corporation of India (SECI) to attract bids for the development of the inter-state transmission system for solar power evacuation have gone in vain. Solar power generation has to be in sync with the growth in transmission capacities owing to evacuation challenges, otherwise we may be in for a slowdown.

Though rooftop solar is the fastest growing renewable energy segment in India, the installation capacities must rapidly increase if the nation is to meet its ambitious renewable energy target by 2022. Conducive policies, financial support and consumer awareness should form our focus of attention.

Around 70 per cent of the market growth in rooftop solar is driven by commercial and industrial consumers. The residential segment is lagging owing to lack of policy initiatives. The 20-40 per cent financial subsidy for new residential rooftop solar installations should accelerate the pace of growth. But India needs a more comprehensive approach in order to achieve the 2022 target. 

The industry needs to be steered in the right direction to take us closer to the 100-GW goal. We need integrated energy planning, favorable policies and investments across the value chain. Release of RTC tenders and incentives for OA charges are critical. RTC supply is one alternative to ensure predictability in supply, thereby ensuring grid stability and offtake guarantee by discoms under all circumstances.

While on one hand we need to promote solar projects based on domestic manufacturing capacities to make ourselves self-sufficient, the Central and state governments should take care not to put the auction process on hold in the expectation of a further drop in prices. We also direly need a universal anti-dumping policy and incentives to instill confidence in Indian companies. Investing in domestic manufacturing can help build the supply chain, control prices and earn foreign exchange through exports. It will also create jobs, enhance the country’s GDP and correct the adverse balance of payments.

India should leverage its position in the 121-nation International Solar Alliance by assuming a leadership role to make way for greater growth through favorable policies and coordinated efforts. As a global solar superpower in the making, we ought to wrest this initiative. With a proactive approach driven by all these factors, India’s solar Power will usher a green and sustainable future.

Indian solar sector booming, but now comes the real test.

Lack of an efficient and reliable T&D infrastructure that can handle the kind of solar power being injected into the grid poses a major challenge in the way of realizing the country’s solar potential

The power sector is growing like never before to cater to the ever- increasing needs of a rapidly developing economy, and it is solar energy which has emerged as a pacesetter. Registering a phenomenal 32-fold growth in generation in just six years, the Indian solar industry has really risen to the occasion. In fact, it is poised to grow by leaps and bounds the way so many developers are lining up one mega solar power project after another. Up against a tough target of 100 GW by 2022, India’s installed solar capacity is 16 GW now. The impressive growth notwithstanding, challenges remain.

One of the biggest hurdles in the way of realising India’s solar potential is lack of an efficient and reliable transmission and distribution (T&D) infrastructure that can handle the kind of solar power being injected into the grid. Solar in India would have everything going for it had the transmission system been growing in sync with the increase in generation. But the fact remains that our transmission lines have not been upgraded adequately to withstand this additional load of electricity. If ignored for long, this widening gap will put immense pressure on the existing transmission lines, which may even result in system collapse. The stakes in the solar sector are so high that we cannot afford to have any breakdowns. We have to be constantly at it by upgrading the grids and coming up with new ones to match the outflows created by new solar projects, just as Andhra Pradesh is doing. As and when the Andhra Pradesh government formulates a plan for a new solar project, it has a parallel plan on T&D going. Apart from encouraging private investment, we should rope in utilities and enable them to acquire the financial firepower to invest heavily in grid infrastructure and make large-scale green electricity purchases.

Upgrading transmission and distribution lines assumes utmost importance. The way the solar sector is growing, all states should take it upon themselves to upgrade their T&D system in accordance with the increase in installed capacity. If they fail to do so, they could find themselves in a difficult situation like Punjab. Cashing in on the solar overdrive, Punjab is poised to achieve an installed solar capacity of 1 GW soon. But the T&D network in the state has not been upgraded adequately to evacuate this additional electricity. Though the government has asked the Power Grid Corporation of India Ltd (PGCIL) to build separate transmission lines in the form of National Green Energy Corridors to evacuate renewable energy, the PGCIL is likely to put up only inter-state transmission lines, at least in the initial stages. States governments will be required to invest in capacities on their own.

Bogged down by grossly deficient transmission capacities, we lose millions of kilowatt hours of electricity to inter-state transmission congestion. High T&D losses can make solar power a highly unfavorable proposition. Though the government, in association with the National Thermal Power Corporation (NTPC) and the PGCIL, is doing its bit to upgrade its substations and T&D lines to reduce T&D losses, the efforts need to be redoubled. We cannot afford to operate with this redundant network of transmission lines. We should gradually upgrade our grid ring system from 440 KV to 765 KV, and then to 1,200 KV, so that electricity can be optimally transferred to the central ring and suitably distributed among power-deficient areas of the country. The process of upgrade from 66 KV to 132, 220 and 440 KV should take place simultaneously. We must ensure that each unit we generate reaches its rightful destination. The entire exercise will prove to be a wasted effort if we are not able to upgrade our grid infrastructure in consonance with the growth in solar generation capacity.

When it comes to providing grid connectivity to solar projects, the rooftop segment, which accounts for 40 GW of the 100-GW target for 2022, presents no problem as rooftop solar power is distributed smoothly in a well-defined network. It is the 60-GW ground-mounted solar projects which pose a major challenge as these projects will eventually be connected to the grid. When we talk of grid connectivity for solar projects, the one thing that we find lacking is consistency of flow. Be it thermal, nuclear or hydel power, there is a certain consistency of electricity flow round the clock. In power plants using conventional sources of energy, the flow of electricity, design and T&D network are all planned as per the estimated outflows from these plants. Thermal power plants can easily burn more or less coal to generate power as per the demand. But this is not the case with solar. While the T&D infrastructure for solar power is designed to withstand peak loads, the inconsistency in flow at different times of the day leaves the potential grossly underutilised and makes power systems prone to breakdowns and volatile fluctuations. This may be a bigger issue for larger solar projects, potentially leading to problems during peak usage periods.

Solar energy is intermittent. It cannot provide the same amount of power throughout the day. While solar power generation can falter on a cloudy day, we can, on the contrary, have more solar electricity on a bright and sunny day than is actually needed. This disparity in the flow of power poses one of the biggest challenges and calls for massive upgrades or even redesign of the grid infrastructure. Since solar energy cannot be stored at this point of time, how we manage the power generated at a specific point presents an equally stiff challenge. Maintaining grid stability can become a major challenge when a large amount of intermittent solar power is injected into the grid. This problem can, however, be overcome with modern technological breakthroughs and advancements like smart grids and solar energy storage solutions.

But the situation can become even more challenging when the share of renewable energy in total power generation goes up in due course of time, and yet the constant flow of electricity is lacking. While 10% is a challenge, it is still manageable. Beyond that, the task is increasingly difficult. Since many large solar facilities are in remote locations such as deserts where grid infrastructure doesn’t exist, we need to find a viable way to connect to and store solar energy, as and when needed.

Lack of storage poses one of the biggest challenges in the solar sector. We will have to create batteries so that whatever power is generated can be stored and distributed 24×7 as per the requirement. There has to be consistency in the flow of power to the grid to keep volatile fluctuations to a manageable extent. With the integration of storage facilities, we will also be able to use solar energy at night and regulate its supply during the day. The US and some European countries are working on solar batteries to address the problem of storage. We may have a solution in a couple of years with research going on at a furious pace in these countries.

Containing costs through R&D is another formidable challenge. Costs will go down if indigenous R&D is encouraged. But India lacks in R&D. It has a long way to go. Let’s pump enough money into R&D and create a mindset for research. Why can’t India develop its own technologies and export them to build foreign reserve rather than depending on imports and foreign capital? Collaborative and outcome-based R&D can make India a world leader in PV technologies, but we also need closer industry-government collaboration for these technologies to achieve scale.

One more area that we need to work on is reducing the costs of modules and inverters and enhancing their efficiency. As the costs of modules and investors are going down, so are the bidding prices. Though production costs have declined on account of cheaper capital, technological innovations and falling prices of equipment, inefficiency continues to be a major hurdle before the solar industry. While the best panels in the market convert at the most 35% of sunlight into energy, most modules have an efficiency rate of just 15%. Many companies are working on more and more compact modules and inverters to make them more efficient.

Solar developers also need to guard against the tendency of depending too much on grants, especially if they are looking at commercially viable ventures. Though the solar industry is supported by government incentives like lower duties, tax concessions and guaranteed purchases by state utilities, these concessions can be withdrawn as and when the government’s financial considerations get the better of its commitment to clean and green energy. Facing severe fiscal deficit, the central government may not stick to its obligation to fund mega-projects, leaving cash-starved state governments in no position to buy power from either the Centre or private developers. To counter this situation, solar developers should do everything to make their businesses commercially sustainable without depending overly on grants.

State utilities, too, should take responsibility and rise to the occasion. The surge in production of solar power should be matched with large-scale guaranteed purchases from state utilities despite the drain this costlier source of energy puts on their finances. In the long term, the answer lies in transforming state utilities into financially robust profit- making enterprises through power reforms. On a positive note, the gap in the cost of conventional and renewable energy is gradually narrowing down, thanks to technological breakthroughs and economies of scale.

Last but not the least, fast-paced advancements pose another big challenge. Every two- three year we have a new technology, which makes the old one obsolete. This is what big developers are doing to stay ahead of competition. Blessed with abundant sunshine and vast tracts of non-cultivable land to run solar projects, India—given the conducive business environment and favorable government policies—can virtually become a global solar superpower if it takes these challenges head on.