Challenges Faced During Execution of Solar Projects – How to Overcome Them?
4PEL Staff
October 2024
Rise of renewable energy is a global phenomenon that is being used to combat climate change and help preserve the planet. In India alone, renewables is growing at a rapid pace, with a target of 500 GW clean energy by 2030 and a current installed base of ~200 GW. Amongst RE, Solar is witnessing the fastest growth due to ease of adoption and installation.
However, execution of these projects, especially on a larger scale for open access, comes with its fair share of challenges. This blog explores the key challenges faced on site during solar project execution and how to address then effectively – while also focusing on a real-time example from FPEL.
Challenges Faced During Solar Project Execution
1. Green Financing: Securing Adequate and Stable Project Finance
One of the primary hurdles in developing solar projects is securing sufficient financing. The high upfront costs and long payback periods deter many investors. Strategies to overcome this challenge include leveraging government grants, attracting private investors through green bonds, and forming public-private partnerships to share costs and risks.
2. Regulatory Processes and Navigating Permits
Navigating the complex regulatory framework for solar energy projects in India is another challenge. Regulations vary from state to state, creating delays in obtaining necessary permits. To overcome these hurdles, engaging early with regulatory authorities and hiring experts familiar with local regulations is critical. A proactive approach to compliance ensures that projects remain on schedule.
3. Land Aggregation & Acquisition
Finding suitable, non-arable land for solar projects can be a lengthy process, especially in densely populated regions. Site assessments must consider environmental impacts and community involvement to secure approvals. Streamlining the land acquisition process is crucial to avoid project delays. Community engagement from the outset also helps to build local support and address any concerns.
4. Overcoming Technical Challenges
The integration of solar systems with existing grid infrastructure poses a range of technical challenges. Ensuring grid stability while incorporating renewable energy requires advanced technology and close collaboration with grid operators. Continuous monitoring and real-time adjustments are necessary to maintain efficient operations.
5. Managing Stakeholder Expectations
Effective communication with stakeholders—including government bodies, investors, and the local community—is essential to maintain project momentum. Addressing concerns about the visual and environmental impact of solar installations through mitigation measures fosters goodwill and ensures long-term support for the project.
6. Sourcing Reliable Equipment
Sourcing high-quality and reliable equipment is another key challenge. Companies must ensure that the technology used is not only cutting-edge but also reliable and cost-effective. Thorough supplier vetting and securing competitive pricing through bulk purchasing agreements can mitigate this risk.
Real-Time Example: FPEL's Challenge with Cable Routing
A specific challenge faced by FPEL during the execution of a solar project involved changes in cable routing. Clients often request alterations to the planned cable routes, which can significantly increase the length of cables required, leading to higher material costs and potential delays in project timelines.
Addressing the Challenge
FPEL has adopted several strategies to manage this challenge effectively:
- Proactive Communication with Clients: FPEL maintains close communication with clients throughout the project lifecycle, ensuring they are aware of the cost implications of design changes. Encouraging clients to finalize routing plans early helps prevent last-minute adjustments.
- Contingency Planning: During the design phase, FPEL incorporates contingency plans to accommodate potential cable routing changes, enabling quicker adjustments without delaying the project.
- Real-Time Project Management Tools: Utilizing real-time project management software allows FPEL to recalculate material and labour requirements immediately when changes occur, ensuring swift communication with procurement and installation teams.
- Flexible Supply Chain Management: FPEL's strong relationships with suppliers facilitate quick modifications to material orders, ensuring that additional cable requirements can be met promptly.
By implementing these solutions, FPEL effectively navigates the challenges posed by unexpected changes in cable routing, ensuring timely project execution while controlling costs.
Conclusion
The renewable energy sector in India is poised for significant growth, but it comes along with various challenges during project execution. By understanding these challenges and implementing strategic solutions, companies like FPEL can navigate the complexities of solar project development. As India aims for ambitious renewable energy targets, the experiences and lessons learned from such projects will be invaluable in shaping a sustainable energy future.