Although India's large-scale solar power plants the access grid strategy is a good idea, but should do next is the construction of small-scale power generation systems and smart grid. German project management and the advisory body iPLON responsible person SebastianC.Dürr said BusinessLine interview. SebastianC.Dürr renewable energy technology has a decade of experience, he talked about the global solar market and the potential for the development of India in this regard .

SebastianC.Dürr: I think solar power is still too expensive. In Germany, electricity purchased from the grid per kWh cost 25 cents, the average solar feed-in tariff at 30 euro cents (depending on the size of the power generation system different), there are between 5-10 cents difference. However, the cost of solar power is indeed dropped in 2004, when I first 1MW solar project development in Germany, the highest price per kilowatt-hour is about 5,500 euros, now only € 1900, so to say this is a huge step forward. Moreover, every time the government cut stimulus measures reduce the feed-in tariff, solar PV prices will decline.

Solar power is a self-regulating industry. Incentives remain high, no one will give you a good price. Therefore, a target of the Tariff Act is to gradually reduce the feed-in tariff, so the price of photovoltaic wind controller power generation will decline followed, like wind energy as photovoltaic power generation will achieve grid parity. Do not forget that the European energy prices continue to rise. Not only the price of renewable energy in the decline in the rise in the price of traditional energy. At some point soon strike a balance can be achieved in the next 2-5 years. Compared to three years ago, energy prices in Europe have expensive 30%, which is a huge number.

BusinessLine: 2009, PV module prices have fallen sharply, and then stabilized. What factors have led to lower prices? SebastianC.Dürr: I think the main reason is the Governments feed-in tariff cut result. In addition, more and more enterprises substantial expansion also contributed to a decline in component prices. As of the end of this year, the PV module production capacity will reach 50GW, the global installed demand Only 30GW. Therefore, the excess production capacity of nearly 100%, the price decline is the trend.

Enterprise production capacity in China and Taiwan accounted for a total of 60-65%, which means that the cost of production on a downward trend. 10 years ago, things are taking place in the electronics industry in today's photovoltaic industry. Production of PV solar panel is also maturing. For example, the process of cutting has become more precise, the waste of raw materials is not as serious as previously. Compared with five years ago, the same silicon ingot (or silicon rods) can create additional battery slice. However, the real regulation or feed-in tariff for PV module prices.

BusinessLine: extremely strong interest in the development of solar energy in India. View of the Indian companies do not have experience in this area, compared with Europe, they faced the risk of what? SebastianC.Dürr: If you ask this question from a German perspective, I will give you the same answer. Installation in Germany due to the impact of the many misconceptions far not reached the expected level. Sometimes slow and extreme weather conditions of the policy-making process, the installation time is long overdue. I do not think this is a risky industry, I often studied for developers to do the general contracting company.

In Germany, we have a tremendously popular, everyone wants a quick kill. Therefore, after consideration, they found a large project (such as 5MW) will be able to obtain a higher income. Before that, they had never tried a large-scale power plants. If you can effectively control the risks, solar power will become a very interesting investment opportunity. The most important thing is that you have to understand the importance of the rise and fall cycle management project to install future.