Promoters Khandelwal Solar Power Ltd., India

Global Scenario

With escalation in energy prices, shortages, concerns over pollution, environmental degradation and resource depletion, the awareness about solar energy has dramatically increased.

With the assent of Russia to the Kyoto Protocol, it has received adequate backing for implementation and hence a major thrust is in the offing for renewable energy sources. Many European countries have already passed Renewable Energy laws and countries like Germany are now scouting for partners/manufacturers worldwide to source photovoltaic panels and cells for meeting the growing demand in Germany and other western countries.

All over the world there is a shortage of solar cells and modules and manufacturers are fully booked till 2007.

Policy Framework

The Kyoto Protocol is an amendment to the United Nations Framework Convention on Climate Change (UNFCCC), an international treaty on global warming. Countries which ratify this protocol commit to reduce their emissions of carbon dioxide and five other greenhouse gases, or engage in emissions trading if they maintain or increase emissions of these gases, which have been linked to global warming.

The industrialised countries will be required to reduce their greenhouse gas emissions from 1990 levels by an average of 5% over the period 2008-2012. A Directive to promote electricity generation from renewables and agreements with car manufacturers on vehicle fuel efficiency are examples of measures that have already been adopted by the EU to achieve this goal. This creates obvious conditions for adoption of PV as the future energy source.

Carbon trading allows industries in developed countries to off-set their emissions of carbon dioxide by investing in reforestation and clean energy projects in developing countries. India is a ready option in such a scenario. Carbon credits are currently quoted at US $ 30 per ton and are constantly rising.