term paper 01-10-2012 chandra

7/30/2019 Term Paper 01-10-2012 Chandra

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Socio-economic and Policy Aspects ofEnergy and Environment:

Case of Solar-Energy and Carbon Footprint

A Term paper Prepared and Submitted byChandramauli Chaudhuri

M.Sc. Economics

As a part of Course Work onSocio-economic and Policy Issues in Energy and Environment

Offered by

Prof. Vinod Kumar Sharma

Indira Gandhi Institute of Development Research, Mumbai

July-Dec, 2012

Formatted: Font: 14 pt

Comment [u2]: Let us discuss to finalise thetopic

Comment [u1]: U need to add social, economand environmental (SEE) aspects of both issues

Formatted: Font: 14 pt

Comment [u3]: Carbon foot print of what? Uneed 2 mention product/ process or services here


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ABSTRACT

JEL Classification: Q42

Keywords: solar energy; renewable energy economics and policies; climate change

Cover-photo: The Blythe Solar Power project, USA.Source: US Government Approves World's Largest Solar Plant by Timon Singh,

Comment [u4]: Discuss this with me


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27th November, 2010.

ACKNOWLEDGEMENT


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Table of Contents

ABSTRACT ----------------------------------------------------------------------------------------------------------------- 2ACKNOWLEDGEMENT ------------------------------------------------------------------------------------------------- 3TABLE OF CONTENTS -------------------------------------------------------------------------------------------------- 4

SECTION-I SOLAR ENERGY ------------------------------------------------------------------------------------------- 5I.1. INTRODUCTION ----------------------------------------------------------------------------------------------------- 5I.2. OBJECTIVES OF THE STUDY ------------------------------------------------------------------------------------- 6I.3. SOLAR ENERGY ----------------------------------------------------------------------------------------------------- 7

I.3.1. Background -------------------------------------------------------------------------------------------------------- 7I.3.2. Applications of Solar Technology ------------------------------------------------------------------------------ 8I.3.3. Energy Storage -------------------------------------------------------------------------------------------------- 10I.3.4. Development and Deployment -------------------------------------------------------------------------------- 10

I.4. LITERATURE REVIEW ------------------------------------------------------------------------------------------- 11I.5. SOCIO-ECONOMIC AND ENVIRONMENTAL ASPECTS ------------------------------------------------- 14I.6. INDIAN SCENARIO ------------------------------------------------------------------------------------------------ 15

I.6.1. Current Developments ------------------------------------------------------------------------------------------ 15I.6.2. Incentive for Further Developments -------------------------------------------------------------------------- 18I.6.3. Barriers ----------------------------------------------------------------------------------------------------------- 18

I.7. ECONOMIC & TECHNOLOGICAL CHALLENGES --------------------------------------------------------- 19I.7.1. Financial and Market Barriers to Solar technology --------------------------------------------------------- 19I.7.2. Lack of System Integration and Incentives ------------------------------------------------------------------ 19I.7.3. Reliability -------------------------------------------------------------------------------------------------------- 20I.7.4. Infrastructure and Institutional Challenges ------------------------------------------------------------------ 20I.7.5. Non-Technical Barriers ----------------------------------------------------------------------------------------- 20

I.8. POLICY RECOMMENDATIONS -------------------------------------------------------------------------------- 21I.9. CONCLUSION ------------------------------------------------------------------------------------------------------- 23

SECTION-II CARBON FOOTPRINTS ------------------------------------------------------------------------------- 24II.1. INTRODUCTION--------------------------------------------------------------------------------------------------- 24II.2. OBJECTIVES OF THE STUDY ---------------------------------------------------------------------------------- 25

II.3. CARBON FOOTPRINTS ------------------------------------------------------------------------------------------ 26II.4. LITERATURE REVIEW ------------------------------------------------------------------------------------------ 27II.5. SOCIO-ECONOMIC AND ENVIRONMENTAL ASPECTS ------------------------------------------------ 28II.6. INDIAN SCENARIO ----------------------------------------------------------------------------------------------- 29II.7. ECONOMIC & TECHNOLOGICAL CHALLENGES -------------------------------------------------------- 30II.8. POLICY RECOMMENDATIONS ------------------------------------------------------------------------------- 31II.9. CONCLUSION ------------------------------------------------------------------------------------------------------ 32

REFERENCES ------------------------------------------------------------------------------------------------------------ 33


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SECTION-I SOLAR ENERGY

I.1. INTRODUCTION Comment [u5]: It cab just 1 (and not I.1)-becusae of two separate sections already defiiend


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I.2. OBJECTIVES OF THE STUDY


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I.3. SOLAR ENERGY

I.3.1. Background

Solar energy consists of electromagnetic radiations coming from the Sun, which we receive it in the form ofheat and light. The Earth receives about 174 peta-watts (PW) of incoming solar radiation (insolation) at theupper atmosphere. Approximately 30% is reflected back to space while the rest is absorbed by clouds, oceansand land masses. With the help of technology available today, we can capture this radiation and turn it intousable forms of solar energy for the purposes of heating or electricity generation.

The amount of sunlight available at a particular place is one of the key factors to consider when estimatingthe usage of solar energy. There are also a few other factors which need to be considered when determiningthe viability of solar energy at a given location. These are:

Time of the day Geographical position Season Local landscape

Local weather

Scientists measure the amount of sunlight available in specific locations during different times of year. Thenthey are able to approximate the amount of sunlight which falls on similar regions at the identical latitudeswith similar climatic conditions. Radiation for solar electric systems may be expressed in terms of kilowatt-hours per square meter (kW-h/m2). Direct estimates of solar energy are represented in watts per square meter(W/m2). Radiation data for water and space heating mechanisms are usually represented in British thermalunits per square foot (Btu/ft2).

Figure I.3.1 shows the average insolation across the land surface (represented by black dots) required toreplace the world primary energy supply with solar electricity. Insolation for most people range from 155 to305 W/m2 or 3.5 to 7.5 kWh/(m2day).

Figure I.3.1. Distribution of Solar Energy across the globe

Source:http://en.wikipedia.org/wiki/File:Solar_land_area.png

Comment [u6]: Where ever any such data isgiven ref is a must

Comment [u7]: Potential production?
http://en.wikipedia.org/wiki/File:Solar_land_area.pnghttp://en.wikipedia.org/wiki/File:Solar_land_area.pnghttp://en.wikipedia.org/wiki/File:Solar_land_area.pnghttp://en.wikipedia.org/wiki/File:Solar_land_area.png


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temperatures reaching 150 C and then used for process heat in the kitchen. Scheffler reflectors, developed byWolfgang Scheffler in 1986, are flexible parabolic dishes that combine aspects of trough and power towerconcentrators. The world's largest Scheffler reflector system in Abu Road in Rajasthan, India is capable ofcooking 35,000 meals a day.

Solar lighting:Day-lighting systems collect and distribute sunlight to provide interior illumination. The passive technologydirectly reduces energy usage through replacement of artificial lighting and indirectly decreases non-solarenergy use by lowering the requirement for air-conditioning. Hybrid solar lighting is an active solar methodof providing interior illumination. These systems collect sunlight using mirrors which detect the trajectory ofthe Sun and use fiber-optics to transmit it inside the building to supplement the usual lighting.

Water treatment:Solar distillation can be used to make saline or brackish water potable. The first recorded instance of this wasby 16th century Arab alchemists. Solar water disinfection (SODIS) involves exposing water-filled plasticpolyethylene terephthalate (PET) bottles to sunlight for several hours. Exposure times vary depending onweather and climate from a minimum of six hours to two days during fully overcast conditions. It isrecommended by the World Health Organization as a viable method for household water treatment and safestorage. Over two million people in developing countries use this method for their daily drinking water. Solar

energy may be used in a water stabilization pond to treat waste water without chemicals or electricity. Afurther environmental advantage is that algae grow in such ponds and consume carbon dioxide inphotosynthesis, although algae may produce toxic chemicals that make the water unusable.

Solar power:Solar power is the conversion of sunlight into electricity, either directly using photovoltaics (PV), orindirectly using concentrated solar power (CSP). CSP systems use lenses or mirrors and tracking systems tofocus a large area of sunlight into a small beam. PV converts light into electric current using the photoelectriceffect. Commercial CSP plants were first developed in the 1980s. Since 1985 the eventually 354 MW SEGSCSP installations, in the Mojave Desert of California, is the largest solar power p lant in the world. Otherlarge CSP plants include the Solnova Solar Power Station (150 MW) and the Andasol solar power station(100 MW), both in Spain. The Agua Caliente Solar Project, in the United States, and the 214 MW CharankaSolar Park in India, are the worlds largest photovoltaic plants.

Concentrated solar power: Concentrating Solar Power (CSP) systems use lenses or mirrors andtracking systems to focus a large area of sunlight into a small beam. The concentrated heat is then used as a

heat source for a conventional power plant. A wide range of concentrating technologies exists; the mostdeveloped are the parabolic trough, the concentrating linear Fresnel reflector, the Stirling dish and the solarpower tower. Various techniques are used to track the Sun and focus light. In all of these systems a workingfluid is heated by the concentrated sunlight, and is then used for power generation or energy storage.

Photovoltaics: A solar cell, or photovoltaic cell (PV), is a device that converts light into electriccurrent using the photoelectric effect. Solar cells produce direct current (DC) power, which fluctuates withthe intensity of the irradiated light. This usually requires conversion to certain desired voltages or alternatingcurrent (AC), which requires the use of inverters. Multiple solar cells are connected inside the modules.Modules are wired together to form arrays, then tied to an inverter, which produces power at the desiredvoltage, and for AC, frequency/phase. Many residential systems are connected to the grid wherever available,especially in the developed countries with large markets. In these grid-connected PV systems, use of energystorage is optional. In certain applications such as satellites, lighthouses, or in developing countries, batteriesor additional power generators are often added as back-ups, which form stand-alone power systems.

Solar chemical:Solar chemical processes use solar energy to drive chemical reactions. These processes offset energy thatwould otherwise come from a fossil fuel source and can also convert solar energy into storable andtransportable fuels. Solar induced chemical reactions can be divided into thermochemical or photochemical.A variety of fuels can be produced by artificial photosynthesis. The multi-electron catalytic chemistryinvolved in making carbon-based fuels (such as methanol) from reduction of carbon dioxide is challenging; afeasible alternative is hydrogen production from protons, though use of water as the source of electrons (asplants do) requires mastering the multi-electron oxidation of two water molecules to molecular oxygen. Somehave envisaged working solar fuel plants in coastal metropolitan areas by 2050- the splitting of sea water


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providing hydrogen to be run through adjacent fuel-cell electric power plants and the pure water by-productgoing directly into the municipal water system.

Hydrogen production technologies were a significant area of solar chemical research since the 1970s. Aside

from electrolysis driven by photovoltaic or photochemical cells, several thermochemical processes have alsobeen explored.

Solar vehicles:Australia hosts the World Solar Challenge where solar cars like the Nuna3 race through a 3,021 km (1,877mi) course from Darwin to Adelaide. Some vehicles use solar panels for auxiliary power, such as for airconditioning, to keep the interior cool, thus reducing fuel consumption. In 1975, the f irst practical solar boatwas constructed in England. By 1995, passenger boats incorporating PV panels began appearing and are nowused extensively.

I.3.3. Energy Storage

One of the major setbacks for solar energy systems is that the Sun doesn't provide a continuous source ofenergy. On cloudy days or at night, in absence of sunlight, the amount of energy our systems receive isreduced, making energy storage an important aspect in order to provide the constant supply of energy. The

Institute for Solar Energy Supply Technology of the University of Kassel tested a combined power plantinterconnecting alternate sources like solar, wind, biogas and hydro-storage to provide load-following poweraround the clock. Both wind power and solar power are intermittent energy sources of energy and aresomewhat complementary, as there tends to be more wind in the winter and more sun in the summer.However on days with no sun and no wind the low generation of energy needs to be made up through someother alternatives.

Using molten salts, solar energy can be stored efficiently at high temperatures. Salts are suitable storagemedium because they are low-cost, have a high specific heat capacity and can deliver heat at temperaturescompatible with conventional power systems. For homeowners generating solar electricity through the use ofthe PV system, there are two primary methods of energy storage with a photovoltaic solar power system,namely, Battery Banks and Grid Inter-Tie. One way solar power storage can be accomplished is by using abattery bank to store the electricity generated by the PV solar power system. A battery solar power storagesystem is used in a grid-tied PV system with battery backup and stand-alone PV systems.

Off-grid PV systems have traditionally used rechargeable batteries to store excess electricity. With grid-tiedsystems, excess electricity can be sent to the transmission grid. Net metering programs give these systems acredit for the electricity they deliver to the grid. This credit offsets electricity provided from the grid when thesystem cannot meet demand. Pumped-storage hydroelectricity stores energy in the form of water pumpedwhen surplus electricity is available, from a lower elevation reservoir to a higher elevation one.

Artificial photosynthesis involves the use of nanotechnology to store solar electromagnetic energy inchemical bonds, by splitting water to produce hydrogen fuel or then combining with carbon dioxide to makebiopolymers such as methanol. Many large national and regional research projects on artificial photosynthesisare now trying to develop techniques integrating improved light capture under a variety of atmosphericconditions.

I.3.4. Development and Deployment

As of July 2012, the largest individual photovoltaic (PV) power plants in the world are Agua Caliente SolarProject, (Arizona, over 200 MW connected - to increase to 397 MW), Golmud Solar Park (China, 200 MW),

Perovo Solar Park (Ukraine, 100 MW) and Sarnia Photovoltaic Power Plant (Canada, 97 MW). The earlydevelopment of solar technologies was driven by the fact that the depleting resources of fossil fuels aroundthe world may soon run out. Between 1970 and 1983 photovoltaic installations grew rapidly, however fallingoil prices in the early 1980s moderated the growth of photovoltaics from 1984 to 1996. Since 1997, PVdevelopment has accelerated due to supply issues with oil and natural gas, global warming concerns, and theimproving economic position of PV relative to other energy technologies. Photovoltaic production growthhas averaged 40% per year since 2000 and installed capacity reached 39.8 GW at the end of 2010, of them17.4 GW in Germany.


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I.4. LITERATURE REVIEW

Over the years various researches have shown that solar energy technologies such as photo-voltaic panels,

solar power stations built with mirrors and solar cells could provide almost one- third of the worlds energyneeds by 2060 if people commit to limiting the climate change. The energy from the sun can play a key rolein de-carbonizing the global economy alongside improvements in energy efficiency and imposing costs ongreenhouse gas emitters. According to the International Energy Agency reports in 2011, "the development ofaffordable, inexhaustible and clean solar energy technologies will have huge longer-term benefits. It willincrease countries energy security through reliance on an indigenous, inexhaustible and mostly import -independent resource, enhance sustainability, reduce pollution, lower the costs of mitigating climate change,and keep fossil fuel prices lower than otherwise. These advantages are global. Hence the additional costs ofthe incentives for early deployment should be considered learning investments; they must be wisely spent andneed to be widely shared".

Arvizu et al. (2011) argued that the expansion of solar power utilization depends on global climate changemitigation projections. The general perception among climate-scientists is that the deployment of solarenergy in 2050 would vary from 1 to 12 EJ/year in absence of any climate change mitigation policies. In themost ambitious projection for climate change mitigation, where CO2 concentrations remain below 440 ppmby 2100, the contribution of solar energy to primary energy supply could reach 39 EJ/year by 2050.

An analysis of the solar-power feasibility in the US market was brought forward by William T. Coyle,Fumiko Yamazaki and Mechel S. Paggi (December, 2010) in which they state that the growth of U.S. solar-generated electricity both from photovoltaic (PV) and solar thermal projects has been rapid in the last 5 years.However it should be noted that the share of total U.S. electrical generation capacity and production is stillminuscule, less than one percent. Even when evaluated on a regional basis, the technical potential of solarenergy in most regions of the world is many times greater than current total primary energy consumption inthose regions (de Vries et al. 2007). The principal barrier to its broader use is its high relative cost. PV costsare high mainly because of the characteristic low capacity factor of solar power, constrained by limited hoursof sunlight. The high capital costs are, thus, spread across fewer productive hours compared to other energysources.

Figure I.4.1 compares the technically feasible potential of different renewable energy options using thepresent conversion efficiencies of available technologies.

Figure I.4.1. Technical Potential of renewable energy technologies

Data source: UNDP (2000), Johansson et al. (2004) and de Vries et al (2007)

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

Solar Wind Geothermal Biomass Hydropower Ocean

UNDP(2000), Johansson et al

(2004)

de Vries et al (2007)


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The European Photovoltaic Industry Association (EPIA) represents members active along the whole solar PVvalue chain in the European Union. EPIAs mission is to give its global membership a distinct and effectivevoice in the European market, especially in the EU. During 2010, the European solar energy yield wasapproximately 17.3 TW-h and an annual turnover of 2.6bn. The turnover was concentrated in local, small

and medium businesses. In Europe, 21.9 GW of photovoltaic systems were connected to the grid in 2011.Currently the annual turnover of the European Photovoltaic market is of approximately 36 billion.

Until now, mainly Germany and the US provided the market for solar technology. Germany has an installedsolar power capacity of 29,000 MW. It is expected to add 7,300 MW this year. The US is projected to add3,500 MW in 2012. Even Asian countries like China, South Korea and Japan have now started taking solarpower technology with a note of seriousness. The recent takeover of the well-known German solar cellmanufacturer, Q-Cells, by a less-known South Korean company, Hanwha, is symbolic of the recent trend thathas been in evidence in the last couple of yearssolar manufacturing shifting from the West to Asia. Thistrend has essentially been driven by Chinese companies and has had a disruptive effect on the market,causing around 40 companies in the US and Europe to close down. According to M.Ramesh in the BusinessLine (The Hindu), September, 2012, the Chinese Government has raised its long-term installation target from20 GW to 50 GW by 2020. IMS Research forecasts that 10,000 MW will be installed in China in the next twoyears. Chinas GCL-Poly has begun construction of a 340 MW project in Dantong, which will be among thelargest single-unit solar farms in the world.

Japan is the fourth largest energy consumer in the world in spite of the small population of 120 million thatoccupies only 2.1% of world population. After the Fukushima disaster, it has begun looking at solar as analternative to nuclear sources for meeting its energy demands. Till 2011, Japan had installed solar capacity of1,300 MW. But the country is expected to end 2012 with 4,700 MW. A major driver is the 53-cent per unitfeed in tariff (FiT) announced by the Japanese government. It is expected that Japanese companies will

invest $9.6 billion in solar projects.

India, which got into solar power generation much earlier, has today a little over 1,000 MW of installedcapacity. Around 650 MW of this came under Gujarats Governments FiT -based program. In July 2009,India unveiled a US$19 billion plan to produce 20 GW of solar power by 2020. Under the plan, the use ofsolar-powered equipment and applications would be made compulsory in all government buildings, as well ashospitals and hotels. On 18 November 2009, it was reported that India was ready to launch its National SolarMission under the National Action Plan on Climate Change, with plans to generate 1,000 MW of power by2013. From August 2011 to July 2012, India went from 2.5 MW of grid connected photovoltaics to over1,000 MW. Recently the Jawaharlal Nehru National Solar Mission (also known as the National Solar

Mission) has been a major initiative on the part of the Government of India and the state governments toaddress ecologically sustainable growth while also considering the challenges India face in the field of energysecurity. It will also constitute a major contribution by India to the global effort to meet the challenges ofclimate change. The mission is one of the several program initiatives that are part of National Action Plan onClimate Change.

However, behind this recent trend of growing significance, solar energy technology has a long history.Between 1860 and the First World War, a range of technologies were developed to generate steam, bycapturing the suns heat, to run engines and irrigation pumps (Smith, 19 95). Solar PV cells were invented atBell Labs in the United States in 1954, and they have been used in space satellites for electricity generationsince the late 1950s (Hoogwijk, 2004). The years immediately following the oil-shock in the seventies sawmuch interest in the development and commercialization of solar energy technologies. However, thisincipient solar energy industry of the 1970s and early 80s collapsed due to the sharp decline in oil prices anda lack of sustained policy support (Bradford, 2006). Solar energy markets have regained momentum sinceearly 2000, exhibiting phenomenal growth recently. The total installed capacity of solar based electricitygeneration capacity has increased to more than 40 GW by the end of 2010 from almost negligible capacity inthe early nineties (REN21, 2011).

Kurokawa et al. (2007) estimated 4% of the surface area of the worlds deserts may produce enoughelectricity to meet the worlds current energy requirements. A similar view is observed in EPIA (2007)estimates that just 0.71% of the European land mass, covered with current PV modules, will meet thecontinents entire electricity necessities. In many regions of the world one square-Km of land is sufficient togenerate more than 125 GW-h of electricity per year through CSP technology. In China, 1% (26,300 km2) ofthe wastelands located in the northern and western regions, where solar radiation is among the highest in thecountry, can generate electricity equivalent to 1,300 GWabout double the countrys total generation


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capacity projected for year 2020 (Hang et al, 2007). Figure I.4.2 shows the total photovoltaic peak powercapacity (MWp) across 12 countries from years 2010 and 2011.

Recently, using comprehensive data sets from NREL, the U.S. Energy Information Administration, CAIT

8.0, UN Energy Statistics Database and CIA World Fact-book, Climate Change SOS demonstrated how wecan meet our projected energy demand many times over Brazil 67 times over, Canada 68 times over, theU.S. 5 times over, Russia 20 times over, China 2 times over, Australia 54 times over.

Figure I.4.2. Top 25 nations ranked according to solar and wind energy potential

Data source:http://en.wikipedia.org/wiki/Solar_power_by_country

Table I.4.1 presents regional distribution of annual solar energy potential along with total primary energydemand and total electricity demand in year 2008. As can be easily seen from the table, solar energy supply issignificantly greater than demand at the regional as well as global level.

Region

Minimum

technical

potential

Maximumtechnical potential

Primary energydemand (2008)

Electricitydemand (2008)

North America 4,322 176,951 2,731 390

Latin America & Caribbean 2,675 80,834 575 74

Western Europe 597 21,826 1,822 266

Central and Eastern Europe 96 3,678 114 14

Former Soviet Union 4,752 206,681 1,038 92

Middle East & North Africa 9,839 264,113 744 70

Sub-Saharan Africa 8,860 227,529 505 27

Pacific Asia 979 23,737 702 76

South Asia 907 31,975 750 61

Centrally Planned Asia 2,746 98,744 2,213 255

Pacific OECD 1,719 54,040 870 140

Total 37,492 1,190,108 12,267 1,446

Table I.4.1. Regional distribution of annual solar energy potential

Data Source: Johansson et al. (2004); IEA (2010)

Note: The minimum and maximum technical potential reflect different assumptions regarding annual clearsky irradiance, annual average sky clearance, and available land area.

0 5,000 10,000 15,000 20,000 25,000 30,000

Germany

Japan

United States

France

China

South Korea

Australia

Brazil

Canada

India

United Kingdom

Ukraine

Total photovoltaic peak power

capacity (MWp) Total 2010

Total photovoltaic peak power

capacity (MWp) Total 2011
http://en.wikipedia.org/wiki/Solar_power_by_countryhttp://en.wikipedia.org/wiki/Solar_power_by_countryhttp://en.wikipedia.org/wiki/Solar_power_by_countryhttp://en.wikipedia.org/wiki/Solar_power_by_country


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I.5. SOCIO-ECONOMIC AND ENVIRONMENTAL ASPECTS Comment [u9]: SEE aspects are most importfor your TP


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I.6. INDIAN SCENARIO

States/UTs Small HydroPower

WindPower

Bio-Power

Solar Power(MWp)

Total CapacityBiomass

Power

Waste to

Energy

Andhra Pradesh 192.63 213 363.25 43.16 15 827.04

Arunachal Pradesh 79.54 - - - 0.03 79.57

Assam 31.11 - - - - 31.11

Bihar 61.3 - 15.5 - - 76.8

Chhattisgarh 20.25 - 249.9 - 4 274.15

Gujarat 15.6 2707 20.5 - 291 3034.1

Haryana 70.1 - 35.8 - 4.8 110.7

Himachal Pradesh 501.59 - - - - 501.59

Jammu and Kashmir 130.59 - - - - 130.59

Jharkhand 4.05 - - - 2 6.05

Karnataka 901.25 1856 441.18 1 9 3208.43

Kerala 143.17 35 - - 0.03 178.2Madhya Pradesh 86.16 330 1 3.9 0.1 421.16

Maharashtra 281.33 2607 600.2 5.72 20 3514.25

Manipur 5.45 - - - - 5.45

Meghalaya 31.03 - - - - 31.03

Mizoram 36.47 - - - - 36.47

Nagaland 28.67 - - - - 28.67

Odisha 64.3 - 20 - 4 88.3

Punjab 154.5 - 90.5 9.25 4.32 258.57

Rajasthan 23.58 1856 81.3 - 133.65 2094.53

Sikkim 52.11 - - - - 52.11

Tamil Nadu 111.69 6713 532.7 5.65 8.05 7371.09

Tripura 16.01 - - - - 16.01

Uttar Pradesh 25.1 - 644.5 5 2.38 676.98

Uttarakhand 170.82 - 10 - 2.05 182.87

West Bengal 98.4 - 16 - 1.05 115.45

A & N Islands 5.25 - - - 0.1 5.35

Delhi - - - 16 2.14 18.14

Others - 4 - - 0.81 4.81

India 3342.1 16321 3122.33 89.68 505.29 23380.4

Table I.6.1. State/Source-wise Cumulative Grid Interactive Renewable Power Installed Capacity in

India

Source: Lok Sabha Unstarred Question No. 2910 (www.indiastat.com)

Figure I.6.1. Source-wise Cumulative Grid Interactive Renewable Power Installed Capacity across the

major states in India

Comment [u10]: What does this mean
http://www.indiastat.com/http://www.indiastat.com/http://www.indiastat.com/http://www.indiastat.com/


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I.6.1. Current Developments

StatesFunds Released

(Rs. in Lakh)

Andhra Pradesh 75.95

Arunachal Pradesh 404.96

Assam 59.34

Haryana 822.51

Himachal Pradesh 1841.57

Jammu and Kashmir 2224.8

Jharkhand 58.4

Kerala 92.42

Madhya Pradesh 376.08

Maharashtra 2.69

Manipur 118.31

Meghalaya 334.66

Punjab 89.24

Rajasthan 1124.39Sikkim 971.63

Tamil Nadu 5730.75

Uttar Pradesh 2933.49

Uttarakhand 5109.86

Others 212.6

India 22583.65

Table I.6.2. Selected State-wise Funds Released

for Solar Lighting Systems under JNNSM in

India (2010-2011 and 2011-2012)

Source: Lok Sabha Starred Question No. 151,

dated on 23.03.2012. (www.indiastat.com)

Figure I.6.1. Selected State-wise Funds

Released for Solar Lighting Systems under

JNNSM in India (2010-2011 and 2011-2012)

States/UTs 2009-10 2010-11 2011-12

Andhra Pradesh 29.23 626.28 -

Arunachal P. - - 2

Assam 15.55 - -

Bihar - 3.45 64

Chandigarh 4.88 3.98 -

Chhattisgarh 36.84 93.43 -

Delhi 0.55 31.55 -

Gujarat 131.7 181.08 200

Goa 4.05 - -

Haryana 59.97 164.37 128.6

HP 12.13 69.2 111.1

J &K 16 103 587.8

Karnataka 16.6 113.73 586.0

Kerala 5.12 4.96 58.07

Meghalaya 1.44 25 -

Lakshadweep - - -

Madhya Pradesh 8.82 55.41 48.28

Maharashtra 157.2 117.17 326.7

Manipur 4.27 25 1

Mizoram - - 15.61

Nagaland 3.48 25 -

Orissa - - 11.65

Puducherry 2.03 1.81 -

Punjab 15.3 50.92 201.4

Rajasthan 6 29.53 104.4

Sikkim 5.37 2.88 -

Tamil Nadu 24.93 91.56 -

Uttar Pradesh 33.46 59.46 -

Uttarakhand 28.05 132.8 250.8

West Bengal 15.92 0.46 22

Tripura 2.88 54.44 -

IREDA/Bands 671.4 1193 347.4

AIWC/WEC 2.4 - -

Misc 27.08 - 207.0

India 1342 3259.4 3274

Table I.6.3. State-wise Expenditure on

Development of Solar Energy (Including

Research and Development) under Solar

Thermal Energy Program in India (2009-2010

to 2011-2012-upto 31.10.2011)Data Source:www.indiastat.com
http://www.indiastat.com/http://www.indiastat.com/http://www.indiastat.com/http://www.indiastat.com/http://www.indiastat.com/http://www.indiastat.com/http://www.indiastat.com/http://www.indiastat.com/


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States/UTs

Solar Photo Voltaic System Power Plants

Numbers

Stand Alone(KWp) Grid Connected(MW)LanternsHome

Light

Street

LightPump

A & N Islands 6296 405 358 5 167 0.1

Andhra Pradesh 38544 1998 4186 613 731.1 3.1

Arunachal Pradesh 14433 10349 1071 18 17.1 0.025

Assam 1211 5870 98 45 210 0

Bihar 50117 6471 955 139 775 .6 0

Chandigarh 1675 275 898 12 0 0

Chhattisgarh 3192 7233 1923 226 2500 4

Delhi 4807 0 301 89 82 2.142

Goa 1065 362 707 15 1.72 0

Gujarat 31603 9231 2004 85 374.6 92.4

Haryana 73116 49668 20074 469 676.05 2

Himachal Pradesh 22970 16848 4072 6 1.5 0

J &K 43822 23083 5806 39 308.85 0

Jharkhand 16374 7312 620 0 235.9 0

Karnataka 7334 37348 2694 551 225.41 6

Kerala 54367 32326 1735 810 47.7 0.025

Lakshadweep 5289 0 1725 0 100 0.75

Madhya Pradesh 9444 2917 6138 87 575 0.1

Maharashtra 68683 3434 8420 239 905.7 18

Manipur 4787 3865 928 40 28 0

Meghalaya 24875 7840 1273 19 50.5 0

Mizoram 8331 5395 431 37 109 0

Nagaland 6317 868 271 3 72 0

Odisha 9882 5156 5834 56 84.515 4

Puducherry 1637 25 417 21 0 0.025

Punjab 17495 8620 5354 1857 121 4.325

Rajasthan 4716 91754 6852 283 3430.8 44.65

Sikkim 5200 4640 242 0 17.73 0

Tamil Nadu 16818 7536 6350 829 150 7.05

Tripura 42360 26066 1199 151 25.57 0

Uttar Pradesh 60188 147546 91727 575 2943.72 0.375

Uttarakhand 64023 91307 8568 26 180.03 0.05

West Bengal 17662 130901 8076 48 775 1.05

Other 125797 24047 9150 0 528 0.81

India 864430 770696 210457 7393 16451.095 190.977

Table I.6.4. State-wise Cumulative Installation of Solar Photo Voltaic (SPV) Systems in Indi

Source: Rajya Sabha Unstarred Question No. 1353

Data Source:www.indiastat.com
http://www.indiastat.com/http://www.indiastat.com/http://www.indiastat.com/http://www.indiastat.com/


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I.6.2. Incentive for Further Developments

I.6.3. Barriers

Comment [u11]: Both these are important

Comment [u12]: Both these are important


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I.7. ECONOMIC & TECHNOLOGICAL CHALLENGES

I.7.1. Financial and Market Barriers to Solar technology

In this section we aim to summarize the importance of project financing for solar energy technology and thenecessity to analyze the market acceptability and entry barriers to the clean technology. The financial aspectsinclude:

Risks associated with financing solar energy generation projects:Creditworthiness risks: concern by lenders about projects ability to service debt from thefuture cash flows; lack of maturity of company and technology, and lack of proven acceptancein the marketplace Technology risks: concern that the technology will underperform or become obsoleteprematurely; lack of information/experience to make comparisons with other energytechnologies Market competition risks: concern by financiers about high capital costs of solar energyprojects and the low cash flows compared with other traditional sources of energy Revenue security risks: need for revenue security to pay back the capital investment

Dis-economies of scale and other cost issues: competitive disadvantage of the energy projectsbecause of small-size production as compared to traditional energy projects, resulting in dis-economies of scale and higher transaction costs much greater on the smaller projects

In addition to the above mentioned factors we may also state a few reasons behind the market failure andnon-market failure barriers that hinder energy efficiency implementation.

Market failures:

Misplaced incentives: energy decisions made by an agent may not be in the best interest of theconsumer. For e.g., a landlord may not install energy-efficient appliances because the renterpays the energy bills

Distortionary fiscal and regulatory policies: policies remove incentives for energy efficiency.For e.g., not setting energy prices based on time-of-use discourages consumers from usingenergy more efficiently during high-price periods

Social costs: not considering the negative impacts of energy usage on the society into its cost.For e.g., the effects of air pollution from fuel combustion

Social benefits: not considering the social positive impacts of efficient energy usage into its. Fore.g., the reduced air pollution due to cleaner energy production

Insufficient and inaccurate information: consumers not informed about energy. For e.g.,electricity bills do not detail the energy consumption of specific end uses

Market barriers:

Low priority of solar energy: although conventional energy is still relatively cheap, howeverconsumers typically do not understand negative externalities of conventional energy

Capital market barriers: limited access to capital and high interest rates inhibit energy efficiencyimprovements

Incomplete markets for energy efficiency: energy efficiency is an inseparable part of manyproducts, limiting consumer choice (e.g., fuel economy is not a separate option for automobiles)

I.7.2. Lack of System Integration and IncentivesAcross the world, fossil fuel interests have historically received subsidies and continue to obtain Research &Development support. However renewable energy lacks equal assistance. In most of the countries, technicaland electricity market barriers inhibit distributed electricity generation such as provided by renewable energysources like solar power. In addition to this according to H. Sozer and M. Elinimeiri, 2003, lack of integrationof with typical building process, including lack of integration with building materials, the building designprocess, codes and standards, the organizational structure (i.e. lack of awareness of PV by architects,engineers, contractor, facility manager, and owner), and building components (constructability, aesthetics,service/performance, and cost) acts as a major setback. Also, developing an economic case for building-


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integrated PV is hindered by lack of complete financial and technical data, including cost-reducing factors(e.g., energy cost savings, tax credits, and increased rents) and hard-to-quantify benefits (e.g., enhancedpower reliability, improved public image, and improved visual impact).

I.7.3. Reliability

Weather and geographic location can affect the reliability of solar power. Clouds, rain and snow can obstructthe collection of solar power. Solar panels must be cleaned and cleared of dirt, snow and other debris tooperate at top efficiency, and solar batteries require ongoing maintenance.

I.7.4. Infrastructure and Institutional Challenges

The paper The Diffusion of Renewable Energy Technology: An Analytical Framework and Key Issues forResearch by S. Jacobsson and A. Johnson provide an analytical framework for studying how new

technologies may transform the energy sector. It also outlines issues that must be researched to understandthe transformation of the energy system into one that employs more renewable energy. They may besummarized as follows:

Poorly articulated demand: consumers unable to articulate price/performance demand duringearly stage of technology diffusion

Local search processes: companies tend to build on their existing technological base whenmaking improvements instead of pursuing new, less-known technologies

Networks: Poor connectivity: companies are not well connected to other companies with an overlappingtechnology base Wrong guidance about future markets: individual companies are guided by the network inwrong directions, or the network fails to share required knowledge among companies

Institutions: Legislative failures: legislation creates bias toward established technologies Educational system failures: educational system supports current technologies over potentialnew technologies or fails to react quickly enough to emergence of new technologiesSkewed capital market: supply of capital does not emerge spontaneously in response to needsof emerging technologyUnderdeveloped organization and political power of new entrants: including lack of industry

organizations and ways to share information

I.7.5. Non-Technical Barriers

A list of the most frequently recognized non-technical barriers to use of solar energy technology has beenidentified by R. Margolis and J. Zuboy in their paper Non -technical Barriers to Solar Energy Use: Review ofRecent Literature. According to their study the most common economic and non-technical factors thathinder the growth of the solar energy sector are:

Lack of government policy Lack of information dissemination and consumer awareness about energy usage and

environmental degradation Lack of credibility: need credible endorsements of Photovoltaic technology (PV) to instill

consumer confidence; implicit endorsements include utility PV programs and government taxcredits

Inconsistent inspection process: inspection process varies by community and should bestreamlined to reduce delays High cost of solar technologies compared with other conventional sources of energy Difficulty overcoming established energy systems Inadequate financing options for projects Failure to account for all costs and benefits of energy choices Inadequate workforce skills and training Lack of adequate codes, standards, and interconnection and net-metering guidelines Poor perception by public of renewable energy system aesthetics Lack of stakeholder/community participation in energy choices and projects


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I.8. POLICY RECOMMENDATIONS

Energy is the driving force behind the world economy. With increasing energy demands, especially in

developing countries, and diminishing fossil fuel reserves and supplies, energy prices have been on the risethrough most of the last decade. High prices along with concerns about energy security and fossil fuelimpacts on the environment has spurred a renewed and more intensive effort to develop and commercializealternative energy resources, including the generation of electricity from solar energy. Solar as well as otheralternatives is vying for a more mainstream role in the global energy market.

According to Shi Zhengrong, the founder, chairman and CEO of SunTech Power, as of 2012, unsubsidizedsolar power has already entered a competitive zone with fossil fuels in India, Hawaii, Italy and Spain. "Weare at a tipping point. No longer are renewable power sources like solar and wind a luxury of the rich. Theyare now starting to compete in the real world without subsidies". He opines "Solar power will be able tocompete without subsidies against conventional power sources in half the world by 2015".

The future viability of solar energy projects will however be determined by a number of factors. Thenecessary policy recommendations that maybe suggested need to satisfy the priorities of increased economicdevelopment, poverty reduction and improved environmental protection. However, it is almost impossibleforany recommendation to satisfy all three goals, as the needs of one area can conflict with the needs of

another. Therefore the concept of sustainable development involves balancing the achievements in each area.Specifically, the recommendations are required to balance the following objectives:

Socially EquitableAffordableAccessible Acceptable

Environmentally Sustainable Minimise negative environmental impacts Minimise negative health impacts Safe

Economically Stimulating Competitive Reliable and efficient

If effective support policies are put in place in a wide number of countries during this decade, solar energyin its various formssolar heat, solar photo-voltaic, solar thermal electricity and solar fuelscan makeconsiderable contributions to solving some of the most urgent problems the world now faces: climate change,energy security, and universal access to modern energy services.

International Energy Agency, 2011.

The effectiveness of the policy recommendations, if implemented, will be contingent upon the properenforcement of regulations, monitoring, and evaluation of related actions. Lowering of production costs,higher electricity generation rates and the availability and proper utilization of sunlight are the principalchallenges that should be taken into consideration. Sustained policy support will be necessary to assure thefirst two trends continue. Technological advances will be the key catalyst in the decline in the cost ofproduction and the rising fossil fuel prices which will make solar power economically more attractive to theconsumers. The availability and amount of sunlight, although not always critical (success of Germany andJapan), does contribute in raising productivity of the system and lowering production cost. There are twomajor options for solar electricity: distributed systems, in which production is close to or at the point ofconsumption, and centralized systems that are distant from the center of demand. Most distributed systems

use photo-voltaic, either crystalline silicon cells or thin film. A variety of factors favor distributed PV overcentralized PV or thermal options: low or no siting costs, lower maintenance and operating costs, notransmission costs, no water requirements, easily integrated with current infrastructure, and smallenvironmental impacts. All the centralized PV and solar thermal projects occupy large tracts of land and willhave a variety of impacts on water, land, wildlife, and transmission costs. Centralized systems on the otherhand enjoy a comparative cost advantage from economies of scale and allow far more rapid and certaingrowth in capacity toward meeting the standards of renewable portfolio.

Comment [u13]: Just recommendation is finas u r not investigating here with your primary dacalculations .


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The governments of many states over the years have created these various financial incentives to encouragethe use of solar power, such as feed-in tariff programs. Renewable portfolio standards impose a governmentmandate that utilities generate or acquire a certain percentage of renewable power regardless of increasedenergy procurement costs. RPS goals has been achieved by a combination of solar, wind, biomass, landfill

gas, ocean, geothermal, municipal solid waste, hydroelectric, hydrogen, or fuel cell technologies. In totality abroad range of policies will be needed to unlock the considerable potential of solar energy. These includeestablishing incentives for early deployment, developing public-private partnerships, removing non-economicbarriers, subsidizing research and development and developing effective support for innovation. Newbusiness and financing models are required, in particular for up-front financing of off-grid solar electricityand process heat technologies in developing countries. The number of governments at all levels who considerimplementing policies to support the development and deployment of solar energy is growing by the day.However, few so far have elaborated comprehensive policy sets. Public research and development efforts arecritically needed, for example, in the area of solar hydrogen and fuels. Policies to favor the use of direct solarheat in industry are still very rare. Principal-agent problems continue to inhibit the solar power generatedelectricity mechanisms to be implemented in buildings, obstacles to grid access and permitting hamper thedeployment of solar electricity, financing difficulties loom large. The recent growth in installment isconcentrated in too few countries.

Support policies include a significant part of subsidies as long as solar technologies are not fully competitive.

They must be adjusted to reflect cost reductions, in consultation with industry and in as predictable a manneras possible. Incentive policies must not be abandoned before new electricity market design ensuresinvestments in competitive solar energy technologies, grid upgrades, storage and balancing plants.

The development of affordable, inexhaustible and clean solar energy technologies will have huge longer-termbenefits. It will increase countries energy security through reliance on an indigenous, inexhaustible andcostly import-independent resource, enhance sustainability, reduce pollution, lower the costs of mitigatingclimate change, and keep fossil fuel prices lower than otherwise. These advantages are global. Hence theadditional costs of the incentives for early deployment should be considered learning investments; they mustbe wisely spent and need to be widely shared. With a view on the recent success of these strategies we mayalso take into consideration the following policy measures for the future development of solar energygeneration:

Renewable energy equipment should be exempted from sales and property taxes:Homeowners and businesses that install new solar energy systems should be rewarded for being earlyadopters. Exemption of renewable energy equipment from sales and property taxes will reduce the time

period for solar energy investments to pay for themselves.

Standards for solar in all state facilities and guidelines for solar in major constructions:The state should take the lead and set standards by which state buildings are to utilize solar energytechnologies to reduce energy consumption and reduce their exposure to the increasing costs of energy.Although the initial equipment costs are high, the energy produced is free. Once state standards are set, theycan be adapted, as appropriate, and used as guidelines for all new construction throughout the state.

Statewide guidelines for solar installations to streamline permitting and inspections:Building and planning department inspectors need to know the technical details of the new solar technologybeing installed in order to effectively permit and inspect newly installed systems. A set of comprehensiveguidelines for both solar electric and solar thermal can outline those areas which the solar industry feels aknowledgeable inspector should understand to adequately inspect a newly installed solar system.

State tax credit for residential and commercial solar thermal heating and solar electricsystems:

The tax credits not only financially help people who want to install solar energy technology but also help todraw businesses, along with the associated jobs, into the area to manufacture the equipment needed to supportthe solar industry.


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I.9. CONCLUSION


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SECTION-II CARBON FOOTPRINTS

II.1. INTRODUCTION Comment [u14]: Spee d up writing this sectiotoo


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II.2. OBJECTIVES OF THE STUDY


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II.3. CARBON FOOTPRINTS


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II.4. LITERATURE REVIEW


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II.5. SOCIO-ECONOMIC AND ENVIRONMENTAL

ASPECTS


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II.6. INDIAN SCENARIO


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II.7. ECONOMIC & TECHNOLOGICAL CHALLENGES


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II.8. POLICY RECOMMENDATIONS


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II.9. CONCLUSION


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REFERENCES


International Energy Agency, 2011.Solar Energy Perspectives: Executive Summary. IEA, (2011). 2009 Amendment of the Renewable Energy Sources ActEEG. Global

Renewable Energy, Policies and Measures. REN21 (2005 to 2011 Issues). Global Status Report. Paris: REN21 Secretariat. Brown, M.A. (November 2001). Market Failures and Barriers as a Basis for Clean Energy

Policies. Energy Policy (29:14); pp. 11971207. Dymond, C. (October 2002). PV Focus Group Report. Portland, OR: Energy Trust of Oregon. Goldman, D.P., McKenna J.J., Murphy, L.M. (October 2005). Financing Projects That Use

Clean-Energy Technologies: An Overview of Barriers and Opportunities. NREL/TP-600-38723. Golden, CO: National Renewable Energy Laboratory.

Jacobsson, S.; Johnson, A. (July 2000). The Diffusion of Renewable Energy Technology: AnAnalytical Framework and Key Issues for Research. Energy Policy (28:9); pp. 625640.

Sozer, H; Elnimeiri, M. (2003). Identification of Barriers to PV Application into the BuildingDesign. Proceedings of the 2003 International Solar Energy Conference; March 15-18, 2003,Kohala Coast, Hawaii. New York, NY: American Society of Mechanical Engineers; pp. 527-

533. Bradford, T. (2006). Solar Revolution. The Economic Transformation of the Global Energy

Industry. Cambridge, MA: The MIT Press. de Vries B. J. M., van Vuuren, D. P., and Hoogwijk, M. M. (2007). Renewable energy sources:

Their global potential for the first-half of the 21st century at a global level: An integratedapproach. Energy Policy, 35, 2590-2610.

Timilsina, G.R.; Kurdgelashvili, L.; Narbel, P.A. (2011). A Review of Solar Energy: Markets,Economics and Policies. The World Bank, Development Research Group, Environment andEnergy Team.

EPIA/Greenpeace (2008). Solar Generation V2008. Greenpeace and European PhotovoltaicIndustry Association.

Singh, T. US Government Approves World's Largest Solar Plant, 27th November, 2010.SECTION-II CARBON FOOTPRINTS

Websites:


Indiastate (2012): Website of India State (www.indiastat.com) accessed on (write date or duration )

www.energytrust.org/Pages/about/library/reports/02_PVFocusGroup.pdfwww.nrel.gov/docs/fy06osti/38723.pdfwww.thehindubusinessline.com/http://www.webcitation.org/http://www.dailykos.com/blog/Kosowatt/http://en.wikipedia.org/wiki/Solar_power_by_countryhttp://en.wikipedia.org/wiki/File:Solar_land_area.png

SECTION-II CARBON FOOTPRINTS

Comment [u15]: Check this example for howirte the weibsite reference

Comment [u16]: Check this example for howwirte the weibsite reference
http://www.indiastat.com/http://www.indiastat.com/http://www.indiastat.com/http://www.energytrust.org/Pages/about/library/reports/02_PVFocusGroup.pdfhttp://www.nrel.gov/docs/fy06osti/38723.pdfhttp://www.webcitation.org/http://www.dailykos.com/blog/Kosowatt/http://en.wikipedia.org/wiki/Solar_power_by_countryhttp://en.wikipedia.org/wiki/File:Solar_land_area.pnghttp://en.wikipedia.org/wiki/File:Solar_land_area.pnghttp://en.wikipedia.org/wiki/Solar_power_by_countryhttp://www.dailykos.com/blog/Kosowatt/http://www.webcitation.org/http://www.nrel.gov/docs/fy06osti/38723.pdfhttp://www.energytrust.org/Pages/about/library/reports/02_PVFocusGroup.pdfhttp://www.indiastat.com/

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