Why is EPC Stepping in the Solar Power Race?
As per the research analyst, Indian solar energy market is all set to clique billion dollar space, as ecosystem seems to be stable. On 31st July 2016, with an aggregate installed grid-connected solar power capacity reaching around 8.1 GW, solar has taken its momentum. Moreover, the result of Indian Solar manufacturing capabilities seeding might not see much impact on the Indian solar run. Enterprises are supporting the developers and manufacturers to bring down the capital cost at favorable rates, for further providing solar energy at reasonable prices. And yet all the initiatives seem to encourage solar; seemingly storage towers the system integrator and engineering, procurement and construction (EPC) service provider.
The critical elements of a solar power plant implementation and planning of the project are engineering and system integration. One of the essential components of system engineering is the process of accumulating energy from each module of the plant in an efficient manner through a network of cables. While optimizing the plant layouts, selection of the equipment has to be done from its performance over the project life cycle. Subsequently, EPC service providers make sure about the performance of the optimal plant during the entire life cycle, as the fundamental issues are already addressed at the time of detailed engineering of a project.
Few Indian EPC service providers have developed the soft skills of periodically carrying out the audits of the plant and take remedial measures through their engineering capabilities, supplemented by collaboration with globally reputed companies. In the current scenario, these skills might prove to be beneficial where there is less time for executing the project. With the government reducing the traffic and imposing a restriction on Domestic Content Requirement, on the other hand, EPC service providers are driven by low margins and critical risks.
You can also read more EPC Solution related blogs here:
- The Role Of EPC Contractors In Solar Energy Development
- How Indian Solar Sector Can Overcome the EPC Challenges Effectively?
Another critical area in the solar EPC companies is financing, where looking at the past performance of the solar power sectors, banks are the least concern and less liberal. However, to solar power sector government has allotted a priority sector where banks do hesitate to give them nonrecourse finances. As banks such as IREDA, IDFIs and many more are issuing green infra bonds to fund the solar projects, Solar EPC companies can stay tension free.
Apart from developers, EPC industries also toil for the availability of unused and non-agriculture land at a good irradiance geographic location. According to the increased efficiencies of solar panels, conventionally, for a 1 MW of solar power plant, it dedicatedly requires 5 acres of land. The phase-wise analysis acquisition is also a significant glitch as the area has multiple division that includes various landowners and improper records. As a result, the following phase needs a check if it is free of waves and trees.
States are responsible for land acquisition and identification, as Ministry of New and Renewable Energy or MNRE foreseen setting up of solar parks of capacities of more than 500 MW. Troubles follow or come along with bureaucracy and local politics. Therefore, as reports assert that strong domestic security is of high challenge, primary concerns are related to security, poor infrastructure, and connectivity.
Nevertheless, India can attain technology leadership in rooftop solar PV, by building consumer awareness about collaborative goals, Research & Development, technology, its economics and right usage. Still, the chance of growth and opportunity in this sector is colossal, regardless of all the above circumvent. Hence, with Government assistance and unifying business processes of the EPC industries will help to come out of the deliverable turmoil and focus on growing the green demand across the country.
SaveGeo – a well-known solar EPC company based in India, assures your turnkey end-to-end solar power solution at every stage of the solar process. From the analysis, design, and engineering to implementation, financing, and long-term service and maintenance; their customer-centric engagement model with technical expertise offers the best in class customized end-to-end solar power solution.