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Chinese Solar Energy Companies Encounter Obstacles in India

By Joanna Law (People's Daily Online)    06:23, August 20, 2015
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Chinese renewable energies corporations are facing difficulties when it comes to their business expansion into India, as local people and some government officials view solar panels as “aliens”.

It is believed that Chinese companies need to overcome dozens of obstacles to see India to become a country in which solar energy thrives.

India, the second largest populated country that relies heavily on coals for energy resources, has vowed to shift the energy focus to solar power under the Modi’s administration. However, while the idea was good, challenges and obstacles remain.

Last year, the prime minister of India Narendra Modi launched an ambitious solar power plan, aiming to install 100GW solar projects by 2020. That is around 30 times of India’s current solar power capacity. The goal of the plan: To catch up with the pace of its neighboring country China.

According to a report by the Institute for Energy Economics and Financial Analysis (IEEFA, a Cleveland-based researcher, and Equitorials, it is reckoned that India has the potential in increasing its solar power installations, just like China.

However, despite numerous optimistic reports out there, solar power developments in India have been surprisingly slow and even disappointing.

According to a report called “India’s Electricity Sector Transformation”, up until June this year, India has merely had 4GW of installed projects. India still has seven years to hit its 100GW by 2022. Such data immediately halted many Chinese investors who were interested in the renewable energy developments in India: While it is true that one should not miss the opportunity of this solar power zest under Modi’s plan, it is also paramount to act prudently.

According to Jasmeet Khurana, head of market intelligence at Bridge to India, it is estimated that, by 2022, India can reach half of its original goal in terms of solar installation. There are many factors that could affect the plan, Khurana said.

Apart from the center-state coordination, there are concerns over land shortages and financing issues. Besides, the department of energy in India also needs to reform. 

Another challenge is local people’s superstition and insufficient understanding about solar panels. Many villagers in India believe that solar panels cast ill omen towards their sacred cattle and could eventually kill them. They view this solar hardware as “aliens”, and they pose a danger to their gods. 

Elevating public’s knowledge and winning their trust are therefore one invariable step that the Indian government needs to deal with, before investors can gain confidence in this sector, an executive director from India’s Welspun Energy Corporation said. 

(For the latest China news, Please follow People's Daily on Twitter and Facebook)(Editor:Tian Li,任建民)

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