Well articulated with appropriate diagrams. I have a basic question, if we compare the current value chain Vs Solar - whether Transformers will become obsolete in the Solar value chain. In addition to this what will happen with other parts such as generators, motors. Would like to know your thoughts.
Hard to say what will happen to generators, motors etc. As micro grids take off, demand for those will definitely reduce but wouldn't become extinct.
Transformers are used to convert Direct current to Alternating Current and back to direct current.
Solar produces electricity in direct current. So for the immediate term (next 10 or so years) transformers and high transmission lines wouldn't go away. As microgrids take off (still 10 years or so away) demand for across state and national transmission lines may go down as well.
No, there is never a single tech or pattern that wins the entire market.
Community solar plants will probably arrive much later and even when they do, a large part of electricity may still be traded over the exchange to feed industrial needs or move energy from areas of abundance to areas of scarcity. I also believe electricity will become an export commodity similar to how oil is exported around the world today.
Singapore already is importing solar energy from solar plants in Australia. That type of market areas, IEX will still stay relevant.
Very interesting... Thanks. On the same note, I recall reading somewhere that IEX has role to play in power export to Nepal and Bangladesh.
With India poised to be power surplus country, will it still make sense to invest with solar power generators? I am thinking that it will be a buyer's market. Agree that IEX will still have its role intact.
Thank you Tariq for such an educating article. I have a question regarding the entering of Big players like Reliance into Solar PV modules with acquisition of S&W for manufacturing as well as incorporation of latest technology by acquiring stakes in a European research company. Do you think such acquisition could give an opportunity for the investors where giant companies like Reliance acquire them with the aim of become important global manufacturer of Solar PV modules?
Also could you shed some light in Hydrogen sector esp. the Green Hydrogen which have recently caught interest of again big giants like Reliance, Adani etc.
This was a fantastic read!! Do you have any general tips for researching a sector, anything related to the general data sources that you use to the questions you start with can prove to be helpful. Thank you.
Hi Avinash, thank you! I refrain from advising on individual companies. As disclosure, I personally have invested in Borosil Renewables from lower levels and continue to hold that investment. Please do not consider this as investment advice.
What an interesting insight in renewables. A ton thanks for such effort. 👏
Very nicely written Tariq. Keep educating us. Many thanks.
Thank you
Well articulated with appropriate diagrams. I have a basic question, if we compare the current value chain Vs Solar - whether Transformers will become obsolete in the Solar value chain. In addition to this what will happen with other parts such as generators, motors. Would like to know your thoughts.
Hard to say what will happen to generators, motors etc. As micro grids take off, demand for those will definitely reduce but wouldn't become extinct.
Transformers are used to convert Direct current to Alternating Current and back to direct current.
Solar produces electricity in direct current. So for the immediate term (next 10 or so years) transformers and high transmission lines wouldn't go away. As microgrids take off (still 10 years or so away) demand for across state and national transmission lines may go down as well.
Interesting... so we have limited runway for IEX? Saying this, as probably solar energy genertaion would be very much localized.
No, there is never a single tech or pattern that wins the entire market.
Community solar plants will probably arrive much later and even when they do, a large part of electricity may still be traded over the exchange to feed industrial needs or move energy from areas of abundance to areas of scarcity. I also believe electricity will become an export commodity similar to how oil is exported around the world today.
Singapore already is importing solar energy from solar plants in Australia. That type of market areas, IEX will still stay relevant.
https://renewablesnow.com/news/planning-deal-signed-for-massive-australia-singapore-solar-power-link-729489/
Very interesting... Thanks. On the same note, I recall reading somewhere that IEX has role to play in power export to Nepal and Bangladesh.
With India poised to be power surplus country, will it still make sense to invest with solar power generators? I am thinking that it will be a buyer's market. Agree that IEX will still have its role intact.
Excellent narration, articulation and execution of ur arguments in a coherent and understandable way.
Great...
Thank you Tariq for such an educating article. I have a question regarding the entering of Big players like Reliance into Solar PV modules with acquisition of S&W for manufacturing as well as incorporation of latest technology by acquiring stakes in a European research company. Do you think such acquisition could give an opportunity for the investors where giant companies like Reliance acquire them with the aim of become important global manufacturer of Solar PV modules?
Also could you shed some light in Hydrogen sector esp. the Green Hydrogen which have recently caught interest of again big giants like Reliance, Adani etc.
Thank you again for such a detailed information
This was a fantastic read!! Do you have any general tips for researching a sector, anything related to the general data sources that you use to the questions you start with can prove to be helpful. Thank you.
Hi Tar,
Nice article! Would the investment in Borosil Renewables is good for long term perspective?
Thanks!
Hi Avinash, thank you! I refrain from advising on individual companies. As disclosure, I personally have invested in Borosil Renewables from lower levels and continue to hold that investment. Please do not consider this as investment advice.