Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Tuesday 14 March 2017

How Cheap can it get ?



If you ask Tony Seba , how cheap can Solar power get , he would say :


Interest rate of the capital investment in a Solar Power plant


His reasoning :


·          There is no fuel cost ( sunlight is free )

·          Very little maintenance cost ( occasional washing of the panels )

·          No transmission costs ( if it is a roof-top plant )



In his book ( Clean Disruption ) , he writes :


·          Solar panel costs have dropped from $ 100/W in 1970 to $ 0.65 / W in 2013....Every time industry capacity doubles, costs drop by 22 per cent


·          Should solar PV continue to grow at 43 per cent annual clip, the solar capacity installed base will be 56.7 TW by 2030


·          The cost of fuel ( the Sun ) is zero . The on going costs of operations and maintenance ( O&M ) are close to zero


·          CONSEQUENTLY, THE COST OF BORROWING THE CAPITAL ( THE INTEREST RATE ) CONSTITUTES MOST OF WHAT A SOLAR USER PAYS FOR SOLAR ENERGY


·          For Lancaster ( a county in USA ) , the cost of Solar Power ( cents per kwh ) was 7 cents at interest rate of 10 % ( on capital employed ) . It dropped to 3.5 cents per kwh , when interest rate dropped to 1 % "



·          SO , IT IS CLEAR THAT THE " TRICK " LIES IN BRINGING DOWN THE INTEREST RATE FOR SOLAR POWER PLANTS, TO 1 %  OR LESS !
           


So , how cheap can Solar Power get if the interest rate drops to 0.25 % ?


Could it possibly drop to 1 CENT ( 68 paise ) per kwh ?  Only time will tell


But here is the good news ( Business Line / 15 March 2017 ) :


“ The World Bank has agreed to provide loan to develop internal transmission arrangements of the upcoming Rewa Ultra Mega Solar project in Madhya Pradesh, a state government official said on Tuesday.
“The World Bank has agreed to provide loan to develop internal transmission arrangements of the Rewa project. It will provide 25 per cent of the loan amount under its Clean Technology Fund , where the money will be provided at an interest rate of only 0.25 per cent,” a state Public Relations Department official said.
This would be the first solar power project of the country to receive a loan under CTF, official said.


To understand how Solar Power will disrupt fossil fuel power ( coal / oil / gas ) and the transport ( petrol / diesel cars ) , read :

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As far as the Solar Power’s potential for generation of JOBS is concerned , I request you to look up :


15  March  2017




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