Instilling life into Power - EnergynextInstilling life into wind power India is among the top five nations in installed wind power capacity and owing to its huge potential, it could

VOLUME 4 ISSUE 5

energy nextM

ARCH 2014

WindPower

Instilling life into

Other Stories

Curing power malady at hospitals! Pg35solar, wind, biomass to power goa Pg44balanCing environment, energy Pg56

achiever: Nikhil Jaisinghani helps light up livesPg 42

global voice: Adnan Z. Amin on why

the case for RE is strong Pg 32

event, round table ConFerenCe

A voice to SHP Pg 38

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Your guide to Renewable EnergyDate of Publication: 08/03/2014

Pioneer in setting up small hydro power project in himalaya region

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In a first of its kind initiative, Energy Next organised a CEO Roundtable to address the issues of tariff in the small hydro power sector. The event brought policy makers, regulators and project developers on a single platform to deliberate over the challenges and arrive at possible solutions

A voice to SHP

Instilling life into wind power

India is among the top five nations in installed wind power capacity and owing to its huge potential, it could be the real game changer in addressing the challenges of energy security. However, the growth of the sector in the country has slowed down over the last two years. What are the challenges and what is the role which the proposed Wind Energy Mission could play in bringing the sector back on track?

16Cover Story

Economic case for renewables getting stronger

The International Renewable Energy Agency (IRENA) supports countries in their transition to a sustainable energy future and promotes the widespread adoption of all forms of RE. Its Director General, Adnan Z. Amin, speaks on why the case for RE is getting better by the day

32Global Voice

Energy Efficiency

Trading

With the Bureau of Energy Efficiency introducing enhanced norms, consumers will now have to pay more for frost free refrigerators, single-phase split and unitary air conditioners

Renewable energy, energy efficiency and carbon trading markets are in a state of dilemma regarding the fungibility of RECs, energy saving certificates and certified emission reductions. A recent study analyses the extent of fungibility possible among the financial products of 3-carbon saving mechanisms prevalent in India

Cooling to cost more

Interchangeability of energy certificates

26

29

IN THIS ISSUE VOLUME 4 | ISSUE 5 | March 2014

w w w . e n e r g y n e x t . i n

Event/Energy Next Round Table Conference

March 2014 | Energy Next | 3

IREDA Corner

62

Renewable energy and energy efficiency projects in India received a much needed boost after the European Investment Bank approved the line of credit (LoC) of €200 million to IREDA

EIB approves €200 mln to IREDA

Lighting LivesUp until now, darkness would engulf most hamlets in the villages of Uttar Pradesh. However, things began changing when Nikhil Jaisinghani designed a micro grid based on solar power. Apart from being cost-effective, he also ensured that he had built a strong customer-oriented business model around it

42Achiever

State Focus

India’s tourist hub is striving to make optimum use of renewable energy so as to make the state self-reliant in power. Dr Pramod V Pathak, member secretary of the Goa Energy Development Agency (GEDA), speaks about the growth of the RE sector in the state, the hurdles faced and the future course of action

Solar, wind, biomass to power Goa

44Innovation

The 12th Auto Expo 2014 was witness to India’s first biogas-fuelled passenger car, paving the way for sustainable transport. What went into the making of this green vehicle, under the guidance of Prof Virendra Kumar Vijay of IIT Delhi, and his team, along with the Biogas Development and Training Centre?

Driving on biogas!

46Case Study

The Kadamane Mini Hydel project’s vision is all about the principle of inter-generational equity and the company’s endeavour to protect and preserve the environment. A look into what this unique initiative has helped achieve

Balancing environment, energy

56

4 | Energy Next | March 2014

In tHIS ISSuE

SuRGInG AHEAD

KS PopliChairman & Managing Director, IREDA

The Renewable Energy sector is treading back on the path of resurgence after experiencing a dip in the last year, both

domestically & globally. The recent developments borne testimony to the same; prominent among them was the enthusiastic response to the bidding held under the Second Phase of the Jawaharlal Nehru National Solar Mission (JNNSM) and the commissioning of the largest Solar Photovoltaic project in India and the largest Solar Thermal project plant globally.

The country’s sunrise sector, witnessed an encouraging response for bidding of the Solar Power projects under the first batch of Phase-II of the JNNSM, where 120 projects saw bidding from 68 companies, with the entrepreneurs committing ` 5,000 Crore for the development of Solar Power projects aggregating to 750 MW capacity. This shall provide the much needed impetus to the Solar Sector in the country.

Another landmark was the commissioning of a 150 MW solar project in Neemuch district of Madhya Pradesh. Apart from powering 6,24,000 homes in the state, it will help mitigate over 2 lakh tons of carbon emission annually.

Additionally, the Round Table Conference on Small Hydro Power, recently organised by Energy Next and supported by the MNRE and IREDA, witnessed extensive interactions and deliberations amongst the stakeholders. The inference drawn was that there is an immediate requirement for a repository and the need to create a

databank. The august presence and guidance of the MNRE Secretary, Dr. Satish Balram Agnihotri, at the conference provided the much needed guidance and encouragement to the industry.

Things are likely to look up in terms of providing long term finance to the clean energy projects as multilateral and bilateral agencies are in discussion with IREDA and other FIs. The European Investment Bank (EIB) has recently signed a loan agreement for providing long term finances of EURO 200 Million to the Indian Renewable Energy Development Agency (IREDA).

Speaking from a global perspective, another feat was the commissioning of the world’s largest Solar Thermal plant, the Ivanpah Solar Electric generating system. What was till recently, a windy stretch of the Mojave Desert, inhabited by tortoises and coyotes, is now capable of producing nearly 400 MW of clean power and powering almost 140,000 homes. Owned by NRG Energy Inc., Google Inc. and Bright Source Energy, the $2.2 billion project sprawls across roughly 13 sq. kilometers of federal land near the California-Nevada border. This also gave indication of growing interest of the new age information technology companies in the area of clean energy technologies.

Even as this enormous plant made headlines, news of its counterpart, wind, was stimulating as well. A report from research and consulting firm ‘The Authors’, mentioned that the wind

turbine towers market is expected to increase from $12.1 billion in 2013 to $19.3 billion by 2020.

Ocean energy managed to make waves too, with Lockheed Martin announcing that it had signed a contract with Victorian Wave Partners Ltd. to develop the world’s largest wave energy project. The 62.5 MW peak power wave energy generation project will be built off the coast of Victoria, Australia, using Ocean Power Technologies’ (OPT) PowerBuoy wave energy converter technology. Besides contributing to Australia’s goal of 20 per cent renewable energy by 2020, it is expected to produce enough energy to meet the needs of 10,000 homes.

The developments at domestic and global level reassure us that clean energy technologies will help us in growing in a sustainable manner.

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Prof Rangan BanerjeeIIT-Mumbai

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Wind World (India) Ltd

Future belongs to RE

Significance of wind The recent consultation meet on the National Wind Energy Mission in New Delhi is an indication of the sector’s significance. Also, it showcases the seriousness on the part of the government to make optimum use of this resource. This move will help address the concerns of the industry, more so in the wake of the withdrawal of incentives such as accelerated depreciation. ll Shachi Chawla, New Delhi

More articles on biogass, Being a regular reader of Energy Next, I would

request you to feature more stories on the developments that are taking place in the field of geothermal energy as well as biogas. Though solar and wind are hogging the limelight, it is important not to ignore other spheres of the renewable industry.ll Mehran Zaidi, Noida

Products to watch out for Mobile phones have become an integral part of one’s life and so have the chargers. However, in the wake of erratic power supply, the solar charger

has come as a huge relief for the consumer and will continue to come in handy.ll Amrit Mann, Chandigarh

Global perspective on RE in India It is heartening to see that international leadership is so buoyant about the RE sector in India and sees the market as one where there is tremendous scope for growth. After reading the interview of Dr Pascal Stork, one can decipher that the international community is paying heed to the growing demands of renewables. ll Amit Kanojia, Kanpur

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The various uses of renewables serves as an eye-opener for the reader as one gets to know about their importance in different areas such as the usage of solar in operating automated teller machines, in the telecom, textile as well as the transport sector. These are relevant for the reader as well, since in the near future, we will have to rely on renewable energy in our daily lives, owing to the depletion of fossil fuels as well as conventional sources of energy. ll Kanika Gupta, Mumbai


LEttERS tO thE EDItOR

Energiser

The country plans to add at least 30, 000 MW of power

generation capacity from renewable energy sources by 2016-17, B K Chaturvedi, Planning Commission Member (Energy) said. Plans are on to add around 20,000 MW of wind and 10,000 MW of solar capacity over the stipulated time period, he added. Currently, under the Jawaharlal Nehru National Solar Mission (JNNSM), the government is looking at installing 20,000 MW of solar power capacity to the National Grid by 2022.

Elaborating on clean technology, Chaturvedi said that the government is looking to promote efficiency measures in 600 power guzzling industries, which include fertilizer, oil refineries, steel plants and paper mills.

According to estimates made by the Lawrence Berkeley National Laboratory (USA), while the potential for solar energy in India is as high as 20 lakh MW, for wind it is 10 lakh MW.

Chaturvedi also said that the country presently has renewable energy source of 30, 00 MW, out of which 20, 000 MW is wind energy, a large portion is bio energy, which primarily comes from the sugar factories and is co-generated, while the remaining is solar.

four large size solar power projects, each with a capacity of over 500 MW. These will be a part of the Jawaharlal Nehru National Solar Mission (JNNSM) which has a target of installing 20,000 MW of solar power capacity in the country by 2022.

According to Tarun Kapoor, Joint Secretary at the Ministry of New and Renewable Energy (MNRE), Rajasthan and Gujarat will have one solar PV plant each, while the remaining two power plants will be built in Jammu and Kashmir. Earlier, in January 2014, the government had announced setting up of a 4,000-MW solar plant at Sambhar in Rajasthan in joint collaboration with six public sector units.

India plans to set up four ultra mega solar power projects in

2014-15 in order to give a boost to the renewable energy sector. This was announced by Finance Minister, P Chidambaram, during his speech while presenting the interim budget passed in the just concluded winter session of the Parliament.

Chidambaram said that the government proposes to take up

per cent. In the event of a failure to comply with the new norms, one would be severely penalised.

According o the Energy Conservation Act, 2001, car makers, who fail to meet carbon emission norms, will be fined ` 10 lakh initially and asked to pay a penalty of ` 10,000 a day till their car models meet the norms. It is projected that CO2 emissions by vehicles, after the implementation of the new norms, are likely to come down from 142gm per km in 2010-11 to 129.8gm by 2021-22 and 113gm from 2022 onwards.

The Bureau of Energy Efficiency (BEE) recently introduced new

fuel economy norms that are likely to result in the escalation of the cost of vehicle production. Following its implementation, there would be considerable reduction in the carbon footprint of the automobile industry. As per the new norms, the industry would have to ensure that the mileage of the cars on Indian roads improves by at least 10 per cent by 2021.

However, the government has not specified any deadline and it is likely to begin from 2022. The target is to improve fuel efficiency by 30

India plans 4 mega solar projects India to add 30 GW of RE by 2016-17

New fuel norms to escalate cost of automobiles

news

The Indira Paryavaran

Bhawan, India’s first “zero-

net energy” building,

inaugurated recently, has a

rooftop solar system, with the electricity

being fed to the local grid.

It also has an innovative

energy efficient air-conditioning

system


Energiser

The Indian Railways has received accolades for its

initiatives in preserving the environment by relying on energy efficiency and increasing the use of renewable energy, Railway Minister, Mallikarjun Kharge, said while presenting the interim railway budget of 2014.

The Railway Energy Management Company has become operational and currently, is engaged in setting up windmill plants, solar power plants, with about 40 per cent subsidy from the MNRE. In the initial stage,

200 railway stations, the roof tops of 26 buildings and 2,000 level crossing gates would be covered.

Kharge announced that they would also create ‘Green Curtains’ on a pilot basis at the Agra and Jaipur stations. The aim is to build a RCC boundary wall of suitable height along the railway boundary at an adequate distance, landscaping from the track to the wall and within the station’s circulating area, while making arrangements to keep a watch to prevent defecation in the open and littering.

companies that were successful in bagging projects include Tata Power Renewable Energy (35 MW), IL&FS Energy Development (40 MW), Solairedirect Energy India (30 MW), Gujarat Power Corporation (10 MW), Hero Solar Energy (20 MW) and Today Homes and Infrastructure (40 MW).

The winners will be given a month’s time to sign power purchase agreements (PPAs) and the solar projects would have to be completed within 13 months from the date of signing of the PPAs.

Ltd, Sambhar Salt Ltd, Rajasthan Electronics and Instrumentation Ltd, Solar Energy Corporation of India and Satluj Jal Vidyut Nigam Ltd, signed a memorandum of understanding (MoU) for setting up the world’s largest solar plant till date. The MoU was signed on January 29, 2014 in New Delhi, in the presence of Union Minister for Heavy Industries and Public Enterprises, Praful Patel and MNRE minister Dr Farooq Abdullah.

Initiated by the Ministry of Heavy Industries and Public Enterprises, the project will be set up in collaboration with the Ministry of New and Renewable Energy (MNRE) and Ministry of Power. It will come up on 19,000 acres of land and will be developed in different phases. The first phase of 1,000 MW is likely to be set up in about three years.

Private project developers such as SEI, Azure Power India and ACME

have been able to bag most of the solar power projects that were auctioned under the first batch of Phase-II of the Jawaharlal Nehru National Solar Mission (JNNSM). Bids for the 750 MW capacity of solar projects were opened recently. The response for the second phase of the Mission has been very encouraging, as more than 120 projects saw bidding from 68 companies.

Both SEI and Azure won 100 MW each, while a project with a capacity of 80 MW was won by ACME. Other

Turning a new leaf in the Indian renewable energy sector, six

public sector undertakings (PSUs) have joined hands to build a 4-GW capacity ultra mega solar power plant at Sambhar in Rajasthan.

The six PSUs; Bharat Heavy Electricals Ltd, Power Grid Corporation of India

Phase-II projects get good response Indian Railways on a green drive

SoPro to promote solar process heat installations

national

Work is on to develop wind farms in the

ocean, which are likely

to generate power for 300 days in a year,

Shailesh Nayak, secretary,

Union Ministry of Earth

Sciences, said. The coastal

areas of Tamil Nadu and

Gujarat are being studied

for the purpose


Energiser

India can play an important role in combating the adverse

effects of climate change, as it tops in renewable energy potential, former US secretary of commerce, John Bryson said recently.

Bryson, now head of the Bryson Climate Initiative (BCI), said that the potential of renewable energy in India is huge, more so solar energy, since it can be used to address the issue of climate change to a greater extent. As 27 per cent of the country is affected by climate change, it is time to address the issue before it gets too late, he added.

There is a degradation of natural resources and the world is burning fossil fuels much more than what it was burning 100 years ago, he stated. Bryson added that climate change should not be looked upon only as an environmental problem, as there are “also huge economic costs associated with it.”

The former US secretary of commerce was in Gujarat and visited the Charanka Solar Park which houses more than 200 MW of solar projects. The Bryson Climate Initiative is currently trying to find ways to mitigate climate change effects over the next decade, with its current focus on India, China and the United States.

the need is to pay attention on it globally and generate energy in an efficient way. Creating clean energy infrastructure will, in turn, help create employment opportunities for people, healthy competition in the market and the community at large will benefit in several ways.”

Adding, Shivraj Singh Chouhan, stated, “Climate change is generally accepted as being the greatest environmental challenge facing our world today. Together with the need to ensure long-term security of energy supply, it imposes an obligation on all of us to consider ways of reducing our carbon footprint and sourcing more of our energy from renewable resources. The government has responded by setting legally binding targets to reduce carbon dioxide emissions by 2020 and such projects will help achieve those targets. This is a milestone project in MP that sets the standard for other industry players to develop such large scale projects across the nation.”

Apart from powering 6,24,000 homes in Madhya Pradesh, the project will also help mitigate 2,16,372 tonnes of carbon emission annually.

The 151 (DC) MW solar project in Neemuch district

of Madhya Pradesh, was formally inaugurated by chief minister of Gujarat, Narendra Modi, along with chief minister of Madhya Pradesh, Shivraj Singh Chouhan.

On the occasion, Modi said, “Our nation has set ambitious goals to achieve energy security through renewable sources. Projects like these are a perfect example of what should be done to achieve these goals. Using clean energy in the present will help secure a greener world for the future generations – and this is a priority for us. With the ever increasing power crisis and rising prices of coal and gas, we must tie together the power of wind and sun to produce electricity for the commercial and household use. These methods are already in use by the people, but

India can mitigate climate change with RE

Largest solar project inaugurated in MP

fee for the issuance of the certificate would be ` 4 as compared to the earlier fee of ` 10. There would be no other changes in the charges and fees related to the REC. In order to be part of the REC mechanism, eligible entities have to spend some money for one-time registration, annual as well as transaction fee, charges for issuance and those for dealing in the certificate.

Currently, the one-time processing fee is ` 1,000, one-time registration charges are ` 5,000, while the annual charges are ` 1,000. On completion of five years of registration, the entity would have to pay ` 5,000 for revalidation.

CERC reduces issuance fee for REC

The Central Electricity Regulatory Commission (CERC) has

reduced the fee which they charge for the issuance of renewable energy certificates (REC). The decision comes at a time when the demand for such certificates is on the wane.

With effect from April 1, 2014, the

news

The scientists of Snow and

Avalanche Study Establishment

(SASE), Neeraj Sharma,

Jimmy Kansal and director

Ashwagosha Ganju, have developed a

wind-powered hybrid energy

system for Nubra Valley near

Siachen Glacier. It will help save

over 33,000 litres of diesel a year


Energiser

In a bid to curb the use of fossil fuel, the Indian government is planning to

replace 26 million groundwater pumps powered by diesel or grid-connected power with solar-powered ones, according to Bloomberg. These water pumps would be used by farmers across the country for irrigation. Switching to solar-powered pumps would result in bringing down the huge consumption of diesel or grid power, primarily generated from fossil fuels.

According to Pashupathy Gopalan, the regional head of SunEdison, around 8 million diesel pumps can be instantly replaced. The Ministry of New and Renewable Energy (MNRE) estimates that another 700,000 diesel pumps, bought in India every year, could be replaced as well. Tarun Kapoor, joint secretary, MNRE, feels that the huge potential of irrigation pumps could turn out to be the single largest application of solar in the country.

As of now, in some states, “the government funds as much as 86 per cent of the cost of solar pump systems that in the long run save money, because they eliminate $6 billion in annual farm diesel and electricity subsidies,” Kapoor adds. “That aid helped nudge India’s current-account deficit to a record last year.”

If the project is successful, crop production is likely to rise in India, since farms often have to face problems such as erratic power supply, shortage of power and volatile fuel costs. Moreover, it will also help in saving about $6 billion a year, with regards to power and diesel subsidies.

an action plan for commercial use of renewable energy in five states; Odisha, Madhya Pradesh, Meghalaya, Assam and Jharkhand.

The team has also got monetary assistance of ` 16 lakh from GIZ - a German international agency which has devised a rating system for cooking stoves, which are used on a large scale. The action plan will help in increasing the productive activity of RE for commercial purposes, such as using solar-powered boats and rickshaws. The Ashden UK Trust will provide technical assistance as well.

Work has already started and the action plan will be submitted to the MNRE. Dr S B Agnihotri, MNRE secretary, recently visited Kolkata and discussed the issue with Gon Chaudhuri and his team.

consultations with India concerning DCR. It (the US) alleged that DCR was discriminatory and against international norms, including WTO laws. India has dismissed the US’s concerns of discrimination against its companies and has made it clear that it would defend its stand.

Rajeev Kher, the Commerce Secretary, informed that both US and India had a consultation on DCR for solar projects and India is ready to participate in the second round of consultation as well. The country’s policies are WTO compliant, he added.

The United Nations Development Programme

(UNDP), is providing financial assistance worth ` 40 lakh to Ashden India Collective, a team comprising of Ashden awardees from India, headed by solar power expert, S P Gon Chaudhuri, for formulating

In response to US’s allegations of favouring Indian solar equipment

manufacturers, India has contested that its policies under the Jawaharlal Nehru National Solar Mission (JNNSM) were WTO compliant and not violating international norms.

The US had condemned India’s domestic content requirement (DCR) clause where project developers need to source a certain per cent of solar modules that are domestically manufactured. The US has dragged India to WTO and notified the WTO Secretariat of a request for

UNDP’s aid for green energy action plan India to launch 26 million solar water pumps

India rejects US allegation on favouritism

national

Two special purpose vehicles

are being set up to boost

RE; while the first one will be headed by Oil

and Natural Gas Corporation,

for installation of large scale

grid connected power generation plants based on

RE, the other, led by Indian

Oil Corporation, would be for

setting up RE off-grid projects


Energiser

news

The power woes of the people of Uttar Pradesh (UP) may

soon be addressed as the state government is planning an investment of ` 880 crore in solar power projects, totalling 110 MW.

It was in 2013 that the UP government had inked power purchase agreements (PPAs) with the developers in the range of ` 8.01 per unit to ` 9.33 per unit. Some of the prominent developers who will be generating power in the sector are Essel Infraprojects, Moser Baer Clean Energy, Azure Surya, Refex Energy, DK Infracon and Jackson Power.

Currently, in UP, there is a demand-supply gap of at least 20 per cent and the government is taking all possible steps to meet the rising energy demands by upgrading its power generation, transmission and distribution infrastructure. Recently, UP minister of state for alternative energy, Vijay Kumar Mishra, had ordered the companies to finish their land related formalities by March 31.

UP New and Renewable Energy Development Agency is also taking steps to promote clean energy by developing the wind and the hydro sector. It is estimated that a hydro power project required ` 7-8 crore per MW as compared to thermal.

other groups, the utilities have to meet mandatory targets as compared to the original plan where the consumers had to meet the solar power targets.

Tamil Nadu state utility company Tangedco will now have to ensure that they are able to meet the requirement, of using 2 per cent solar energy for 2014-15. Experts from the industry feel that the changes in the plan have cleared the legal hurdles for solar energy.

In the plan, prepared earlier, major power consumers had to steadily use solar power to provide a portion of their energy needs. For 2013, the target was set at 3 per cent, before it was doubled to 6 per cent in 2014.

the individual as well as private parties can set up solar plants up to 5 KW and wheel back excess solar power to the grid after meeting their own requirements.

Due to heavy consumption of power in the morning and evening hours, it was felt that there was a need to increase the usage of solar power for varying purposes, including cooking. The installation of solar power units was made compulsory for all constructions on plots which are 30’x40’ or bigger in different parts of the state.

The Tamil Nadu State Electricity Regulatory Commission (TNERC)

modified its solar energy plan. Initially, it had called for 3 GW of solar power capacity by 2015. In the wake of this change proposed by the Tamil Nadu Electricity Consumers’ Association and

The southern state of Karnataka is taking all possible steps to address

power issues by harnessing power through renewable energy sources. Currently, it produces 4,332 MW of power from renewable sources, wherein the contribution of wind energy is 53 per cent and that of sugar factories is 17 per cent. The state is a leader in small hydro power generation and has aggressive plans to harness solar energy. It had also proposed ` 7.20 per unit to those who give back solar energy to the grid. Both

TN amends 3 GW solar plan UP to invest ` 880 cr in solar energy

Karnataka promoting RE generation

The Odisha government will

install energy efficiency

devices in office buildings, official

residences and street lighting

system to save energy.

Also, the Grid Corporation of Odisha Limited

(Gridco) and the Odisha Power Transmission

Corporation Limited (OPTCL) have been asked to initiate similar

measures


Energiser

The Nagpur Municipal Corporation (NMC) will

provide 3,450 solar water heaters as part of the Model Solar City Project. Each solar water heater will help in saving more than 90 units per month. The beneficiaries will get a solar water heater with a capacity of 125 litres per day for only ` 7,400, since 50 per cent subsidy and monetary assistance will be provided by the Central government.

Once the tendering is complete, the NMC electrical department will select three companies, which will provide the solar water heaters. The rate for each unit has been fixed at ` 14,800. The NMC, with the aid provided by the MNRE, would provide the remaining 50 per cent amount, and at least 3,450 citizens will benefit from it.

According to sources at NMC, an amount of ` 18.67 lakh has already been received from the government for the Model Solar City Project and an additional ` 1.92 crore has also been approved.

Power Ministry, has approved the plan under which new and renewable energy sources would be used for lighting up villages, ones which are not electrified or partially electrified.

2011-12 within two months.In recent court proceedings, a

penalty of ` 20,000 was imposed upon UPCL for its non-compliance with the RE Regulations, 2010 and RPO Regulations, 2010.The Commission observed that inspite of the numerous opportunities provided to it to mend its affairs, the UPCL has been non-compliant of the directions issued to it.

Even as the solar projects developers have welcomed the initiative, they feel that more stringent actions need to be taken.

The Madhya Pradesh (MP) government will provide solar

power to 44 Naxal-hit villages, in the districts of Umaria, Sidhi, Balaghat, Shahdol and Singrauli. Under the plan, 762 kW of power will be produced and the programme is likely to benefit 4,437 families residing in the villages. Each house in the village will get an 11 or 18 watt CFL and a 60-watt power point will be set up. For commercial use, a flour mill and a community centre in each village will be powered. As part of the scheme, solar-powered street lights will also be installed in the villages.

The Centre’s Rural Electrification Corporation (REC) under the

National solar power and renewable energy

developers and EPC companies have welcomed the move of the Uttarakhand Electricity Regulatory Commission (UERC) against the violators of state RPOs, starting with Uttarakhand Power Corporation Ltd (UPCL).

UERC initialised the process with an order dated September 11, 2013, directing UPCL to procure Renewable Energy Certificates (RECs) for an unmet RPO of 59.12 million units (MUs) of non-solar sources for FY

Naxal-hit villages to get solar power in MP SWH to save power in Nagpur

Investors praise Uttarakhand govt’s move against UPCL

state

Karnataka’s policy on biofuel

is likely to be taken up as a

model for other developing

countries in Asia and Africa. A.K. Monnappa, MD of the Karnataka

State Biofuel Development

Board, said the UN body

in Nairobi had commissioned

a study in Karnataka and the model was

likely to be presented in

Mozambique


Energiser

news

If adequate policies are formulated and there is an

improvement in energy efficiency, then 80 per cent of China’s electricity requirement could be met from renewable sources, according to a recent report by the World Wildlife Fund (WWF).

The report mentions that China’s carbon emission from power generation could be 90 per cent less than the present projected levels in 2050. It also states that it was important for China to take adequate steps with regards to addressing energy issues so as to secure future generations.

WWF’s China Climate and Energy Program director, Lunyan Lu, said that despite rapid economic growth witnessed by China in the last three decades, its future is uncertain owing to the rise in environmental pollution as well as global climate change. He stressed the need for political will to address this issue of energy scarcity.

The report said that it was important that China placed a cap on coal as such a decision would prove advantageous for the country’s economy.

that can generate 392 MW, enough to power 140,000 homes. Recently commissioned, the Ivanpah project is a joint effort between NRG Solar, Google, and BrightSource Energy.

Spread across an area of 13 square kilometers, this $2.2 billion project, also the world’s largest concentrated solar power (CSP) project, has now begun feeding power to customers in California.

Rhone Resch, president of the Solar Energy Industries Association, a trade group, hailed the commissioning of this project as “the dawn of a new era in power generation in the US.” The country, he added, would soon become a global leader in solar power generation.

installed in 2013, reaching a massive market share of 47.4 per cent. It was followed by the US, India and Canada with respective shares of 7.5 per cent, 6.5 per cent and 5.8 per cent.

In fact, the global wind power cumulative capacity is expected to more than double over the forecast period, jumping from 322.5 GW in 2013 to 688 GW in 2020. However, the lack of sufficient grid infrastructure around the world could impede further wind energy growth in the medium term.

The Mojave Desert near the California-Nevada border

in the United States (US), once inhabited by tortoises and coyotes, is now home to the world’s largest solar power plant- the Ivanpah Solar Electric Generating System. It houses 450-foot high towers surrounded by 173,500 heliostats

In the backdrop of increasing popularity and institutional

support from across the world, the wind turbine towers market is expected to increase from $12.1 billion in 2013 to $19.3 billion by 2020, according to a report by research and consulting firm, GlobalData.

The report says that the market is likely to grow at a Compound Annual Growth Rate (CAGR) of 6.9 per cent during this period. China had the largest amount of wind turbine towers

World’s largest solar plant operational Renewables to power China’s energy needs

Wind turbine towers market to reach $19.3 bn

Masdar recently signed a MoU with the Japan

Bank for International Cooperation,

with an aim to identify, finance

and execute RE projects. The two will explore the

co-development of commercially

viable RE projects; including

wind, solar power, water desalination,

carbon capture, use and storage technology and sustainable city

development


Energiser

In a study undertaken by researchers at the Imperial

College Business School in England, it has been found that in the next 25 years, wind turbines are likely to play a pivotal role in producing power. The researchers carried out a detailed and nationwide analysis of the fleet and included in their study, the data of at least two decades. They found that old turbines, which were constructed in 1990, still produced three-quarters of their original output 19 years later.

The preceding study found a lower lifespan took a far less granular approach, as it took into account average estimates of nationwide wind speeds.Dr Iain Staffell, another co-author and a research fellow at the Imperial College Business School, said that the study provides certainty to the investors, since they are assured of wind farms being an effective long-term investment.

Currently the United Kingdom has 4,246 individual wind turbines across 531 wind farms.

environment friendly manner. At a community power

conference held in Fukushima recently, a coalition of green energy groups welcomed the decision of switching completely to renewable energy. Currently, 22 per cent of Fukushima’s energy demand is met from renewable sources.

at a speed of 70 kms per hour. Borshberg informed that the aim of

using solar energy to fly the aircraft is to showcase the advances made in the technology. There was a need to use more of renewable energy on the ground such as in buildings and cars, he added.

In the coming months, the aircraft will be showcased and it will also exhibit the latest technology, the Switzerland-based company, Solar Impulse, was reported as saying.

Fukushima in Japan has set an ambitious target, of sourcing the

province’s total energy requirements from renewable energy by 2040. The electricity will be generated locally through community initiatives and used to meet the region’s energy requirements.

The mayor of Fukushima is optimistic about the positive change and hopes that the region will completely get rid of fossil fuel in just over 25 years.

Post the nuclear power plant disaster in 2011, Fukushima has embarked upon an aggressive programme, of harnessing power from renewable sources. It has turned the disaster into an opportunity, one which aims to tackle climate change by generating power in an

The first solar powered aircraft, Solar Impulse, will begin its

world tour in 2015 and its first destination will be India. The around-the-world sojourn will be for three months, with the total flight time being 20 to 25 days and nights.

Andre Borshberg, the company’s CEO, said that the aircraft would be able to fly round-the-clock by collecting energy from the sun. The aircraft weighing 2,740 kg, will be powered by 12,000 solar cells and is capable of flying

Fukushima to rely on 100 per cent RE Wind turbines durable, finds study

Solar plane on world tour

international

Stanford University

scientist Mark Jacobson has

developed a 50-state

roadmap for transforming the US from dependence

on fossil fuels to 100 per cent RE

by 2050. He unveiled the plan at the annual meeting of

the American Association

for the Advancement of Science in

Chicago


CoVER StoRy


Recently, the wind power industry in India attained a new milestone when the cumulative installed capacity crossed the 20,000 MW mark. It

is over a period of almost three decades that the wind power industry in the country has evolved and today, India finds itself among the top five world leaders in the sector. John Bryson, former US Secretary of Commerce, on his recent visit to India, said that “India can play an important role in combating adverse effects of climate change with its huge renewable energy potential.”

Estimates show that power generation in the country has to increase to almost 3,500 Billion kWh by 2030 in order to support a desired economic growth rate and enable sufficient access to electricity. In that regard, wind energy not only has a crucial role to play in mitigating climate change issues, but also in fuelling the

country’s growing economy by delivering considerable amount of clean electricity.

Also, it is a major source of clean energy that has the potential to help the country achieve the target of 15 per cent of renewable energy in the total energy mix by 2020, set under the National Action Plan on Climate Change (NAPCC). Additionally, wind energy can help in bringing down fuel price risk, trade deficit and attaining energy security without having an adverse impact on the local environment.

ll Journey so farThe wind energy programme kicked off in India in the 1990s and with the help of a market-oriented strategy adopted by the policy makers, wind energy technology has evolved as a successful commercial model. Among all the renewable energy sources in the country, the

India is among the top five nations in installed wind power capacity in the world and owing to its huge potential, it could be the real game changer in addressing the challenges of climate change and energy security. However, the growth of the sector in the country has slowed down over the last two years due to various reasons. Upendra Singh looks at the prevailing challenges and the role which the proposed Wind Energy Mission could play in bringing the sector back on track

InStILLInG LIFE Into

wInD PowER

wInD EnERGy


ll Troubled TimesWith a total installed capacity of over 20 GW in India and more rapid growth predicted by several global agencies, wind energy technology is on its way towards attaining maturity. Today, wind energy is also the greatest propeller of renewable energy in India. However, despite all the advances and milestones achieved, the industry still relies heavily on tax incentives. This could be discerned in the fall in capacity addition over the last two years when incentive schemes like AD and GBI were withdrawn. Though GBI was restored in the Budget (for Financial year 2013-14), its late implementation has not helped the cause as was expected.

“The withdrawal of AD and delayed reinstatement of GBI did have an impact of around 1,000 MW of projects not coming through in last one year,” avers Sunil Jain, CEO&ED- Hero Future Energies Pvt Ltd and President of Wind Independent Power

record installation across the country. The new wind power capacity addition in the year was 3,300 MW. However, this momentum couldn’t be maintained, as the industry witnessed a shortfall of around 40 per cent with the withdrawal of AD and GBI from April 1, 2012. Consequently, the capacity addition in 2012 and 2013 dipped considerably.

The Indian wind power industry witnessed a distinct change in 2007-08 when IPPs came into the picture. Before that, the industry was primarily driven by the wind turbine manufacturers who not only manufactured machines, but also doubled up as EPC contractors. The entry of IPPs in the wind sector was a game changer for the industry, as they started all the operations on their own, except for the procurement of turbines. Encouragingly, the wind energy sector is maturing and is all set for a quantum leap.

wind power industry, driven primarily by the private sector, has been the fastest growing one.

As of December 31, 2013, the cumulative wind power installed capacity in India stood at 20,149 MW, which accounted for close to 70 per cent of the total renewable energy mix. Moreover, it has played an important role in developing and propelling the renewable sector in the country. The states of Tamil Nadu, Gujarat, Karnataka, Maharashtra and Rajasthan account for majority of the installation.

Wind turbine manufacturers and project developers from across the world too have shown an interest in the Indian market, thanks to the presence of a conducive regulatory environment. Both the Central as well as the state governments have been providing financial support and lucrative incentives which have helped in the significant growth of the industry.

During the 11th five-year Plan, the wind energy sector got a real boost, due to the launch of various ambitious programmes and subsidy schemes. The two most prominent ones that led to significant growth of the sector were accelerated depreciation (AD) and generation based incentive (GBI).

AD was a mechanism where 80 per cent of the capital cost qualified for a tax break in the first year itself. In fact, it was a tax deferral that encouraged the private (profit making) companies to invest their funds in renewable energy. A large part of credit for immense capacity addition during the five-year plan goes to AD. On the other hand, GBI was introduced by the government to encourage independent power producers (IPPs) to scale up wind power development.

Accordingly, wind energy development gained tremendous momentum during the 11th period, especially in 2011 when there was

sTaTe-wise insTalled wind energy in india (in mw)

471.5

3196.58

2148.9

54.8 395

3107.452721.2

7162.88

5Andhra Pradesh

Madhya Pradesh

Tamil Nadu

Karnataka Rajasthan OthersMaharashtraGujarat Kerala

Sour

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WTM

A

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Producers Association (WIPPA). Concurring, Dr K Kasthurirangaian, chairman of Indian Wind Power Association (IWPA), says that the withdrawal of AD and GBI were the main reasons for fall in capacity addition in the country for the last two years. He goes on to state that though GBI was restored in the Budget, the wind industry was still looking for the AD to be reinstated.

Jain terms the uncertainty in policy as one of the biggest reasons for the investment not coming up as expected. “The key problems being faced by the IPPs is the policy uncertainty across states. There is no long-term policy defined in different wind states and therefore, the investors have to grapple with various rules and regulations across states,” he exudes.

Besides policy and regulatory uncertainties, there are other issues that are impacting the wind industry. These include inadequate evacuation and transmission facility, land

acquisition, non-availability of easy finance, high interest rates and multiple targets set under various programmes. Currently, Tamil Nadu is leading in installed wind power capacity in India with more than 7,000 MW to its credit. However, wind farm developers in the state are feeling the pinch, as the power generated at the sites are not being evacuated.

Commenting over the recent challenges in the wind industry, Dr Alok Srivastava, Joint Secretary, Ministry of New and Renewable energy (MNRE) says, “It is true that the Indian wind power industry has struggled to meet the envisaged target over the last two years. This has been mainly due to the withdrawal of incentive schemes viz. AD and GBI at the end of the 11th Plan. The GBI has since been restored, and the MNRE is trying for reinstatement of AD.”

In 2012, a total of 12,300 million units (MU) of wind power was evacuated from the wind farms. However, with increased capacity, the

power evacuated in 2013 was around 2, 300 million units less than the previous year. Such issues are deterring investors from putting their money in the sector and it is these hurdles which need to be removed as soon as possible.

ll manufacTuringThe wind turbine manufacturing industry in the country, both domestic as well as foreign players, have played a crucial role in the development of the sector, and today, India is regarded as one of the leading manufacturing hubs. Encouragingly, there has been a huge technological innovation over the years, which has led to the Indian wind manufacturing industry taking a quantum leap.

According to the India Wind Energy 2012 report, established and proven wind turbine technology in the country has led to greater investments in the sector. It states that increased domestic demand in recent years and an expansion of the in-house manufacturing capacity of the domestic wind industry has attracted several new manufacturers into the fray. Presently, indigenous manufacturing contributes around 70 per cent to the domestic wind energy sector.

The fall in wind power installation in the country over the last two years has also taken a huge toll on the manufacturers. A decrease in capacity addition has adversely impacted the balance sheets of the turbine manufacturers, as it has been difficult for them to go ahead with their routine activities. “The manufacturing industry has not fared well in the last two years. Having done 3,200 MW in 2011-12, it came down to 1,700 MW in 2012-13 and perhaps, a repetition is likely in 2013-14. We are in the capital goods sector and procurement of components which are tailor made and long lead in a slowing down market is not a good atmosphere to work in,” stresses D V Giri,

the key problems being faced by IPPs is the policy uncertainty across states. there is no long-term policy defined in different wind states and therefore the investors have to grapple with various rules and regulations across statesSunil Jain, CEO & ED, Hero Future Energies

wInD EnERGy


secretary general of the Indian Wind Turbine Manufacturers Association (IWTMA).

Today, even as India is emerging as a major wind turbine-manufacturing hub, there are certain challenges which need to be addressed. The manufactures, who are facing issues with regard to availability of raw material, inconsistent fiscal/tax incentives and lack of skilled manpower, now want the government to address them so as to help the industry attain newer heights. “The manufacturing industry has no issues in the production of turbines with a capacity of 9,500 MW. It is the state-of-the-art-technology ranging from 250 KW to 2.1 MW. Nineteen manufacturers offer over 40 to 50 models of various sizes, hub heights and blades with various lengths,” affirms Giri. The manufacturing industry, he explains, needs conducive investor friendly policies to reach a year-on-year addition of 4,000 to 5,000 MW per annum and quickly reach the NAPCC targets, which would require 7,000 to 8,000 MW between now and 2020.

ll mission To The rescueAmidst the uncertainty in policy, the wind power industry is looking for a mechanism wherein a favourable policy environment is created so that apart from helping in attracting new investors, it will also instill hope in the existing players. The introduction of GBI and AD, it is believed, will aid the wind industry in capacity addition. However, these are just some of the short-term measures. In order to give a boost to the sector and lead it towards a stable growth trajectory, the need of the hour is a long-term visibility in policy and tariff.

Gauging the current situation, the MNRE intends to come out with a National Wind Energy Mission (NWEM) with an aim to address various issues and challenges which are impacting the industry. “The Wind Energy Mission aims to address the challenges that the

wind power sector is faced with, and pave way for a smooth and consistent growth. There is need to ensure long-term stable policy and regulatory environment to keep the investor interest intact,” informs Dr Srivastava.

Besides policy uncertainty, other issues impacting the wind industry that need to be addressed include land allocation, tariff fixation, incentive schemes, adequate transmission infrastructure, manufacturing policy and managing intermittency. There are a number of initiatives at the state level too. Dr Srivastava stresses that a strong co-operation among central and state governments, availability of low-cost financing and creation of adequate evacuation and transmission facility and ensuring grid integration are also necessary for the growth of wind power in the country.

The Mission needs to take into account the requirements of all the stakeholders for a holistic development of the sector. There has to be a consensus among various stakeholders on targets, objectives, implementation approach and cost sharing--and that is where the essence of a good Mission lies. “The biggest expectations would

be to align all stakeholders in the wind industry including state governments, state regulators, Power Ministry etc. What has so far happened is that central policies have not been subscribed by the states due to power being a concurrent subject,” Jain reasons.

Giri, on the other hand, is happy about the government’s plan to come out with a National Wind Mission. He suggests the creation of public awareness on the urgent and critical requirement of wind power in the total energy mix of the country to achieve energy security. “The myths and perceptions by many are misunderstood, that wind power projects are for the rich and not for power generation. Also, the Mission should encourage R&D efforts of OEM as interest free capital towards creating prototype which is lacking in the country.” He also stresses on the need for a clear ‘political will’ to achieve targets of NAPCC of 15 per cent through RE by 2020.”

ll opporTuniTy beckonsInitially, India’s wind power potential was estimated to be at 50 metres hub height with 2 per cent land availability. In 2011, the state-

the manufacturing industry has no issues in the production of turbines with a capacity of 9,500 Mw. It is the state-of-the-art-technology ranging from 250 Kw to 2.1 Mw. nineteen manufacturers offer over 40 to 50 models of various size, various hub heights, blades with various lengthsDV Giri, Secretary General, IWTMA

CoVER StoRy


Institutional StructureTo coordinate with: • Ministry of Power and its agencies • Planning, regulatory and development agencies • States • Financing and research institutions • Review progress

Long term goals / targets• On shore wind • Off shore wind • Small wind

• Manufacturing • Research & development

Clarity on policies for long term• On shore / repowering / off shore / small wind • Incentives / subsidies / tariffs / competitive bidding • Open access / captive / banking / utility led • Financing aspects – long term / low cost • Balancing power and cost sharing mechanisms

Deployment frameworks towards cost optimisationInvestment grade wind zone development – Ultra mega wind projects • Transmission planning – inter and intra state • Grid integration aspects including forecasting / scheduling • Project / land allocation mechanisms

scope of naTional wind mission

run Centre for Wind Energy Technology (C-WET), re-assessed it at 102,778 MW, 80 metres height, with 2 per cent land availability. This was way above the earlier estimation of 49,130 MW at 50 metres and 2 per cent land availability.

The Lawrence Berkeley National Laboratory estimates the country’s potential to be almost 984,000 to 1,549,000 MW, while a study by The Energy and Resources Institute (TERI), assesses the potential to be more than 1,000,000 MW. Most of the reassessed wind energy potential is concentrated in the Southern and Western regions of the country.

Apart from this huge onshore potential, there is the untouched segment of off-shore wind power development. With a huge coastline of 7,600 km, studies have estimated a potential of around 350 GW. Since wind is cost-effective, it can be a very essential component in the country’s energy mix and play a significant role as far as meeting energy security and low carbon inclusive growth are concerned.

The NWEM proposes a target of 100,000 MW of wind power capacity by 2025, which

the wind Energy Mission aims to address the challenges that the wind power sector is faced with, and pave the way for consistent growth. there is also a need to ensure long-term stable policy and a regulatory environment to keep the investor interest intactDr Alok Srivastava, JS, MNRE

means that there is a need to add 80,000 MW of new wind power capacity over the next eleven years. The 12th Plan period has already set a target of 15,000MW. However, Sunil Jain is not too optimistic about achieving this figure. “The 15,000MW target looks ambitious as we talk today because the first two years would have added only 3,700 MW. Adding 3,700 MW every year for the next three years would be challenging,” he reasons.

Since China and the US have been able to meet robust targets over the last decade, India too can achieve its targets provided a proper policy and regulatory framework is in place. Therefore, the need of the hour is a long-term visibility in terms of policy and tariff. It is believed that the National Wind Energy Mission will turn out to be a game changer and help achieve Vision 2020. Jain expects the Mission to address key issues like evacuation infrastructure and wind resource assessment across the country. Incentives at the central level, he believes, will help in the promotion of wind energy.

The manufacturing industry too

wants good and stable policies, easy land procurement, evacuation, open access and a bankable preferential tariff policy for the wind sector to attain new heights. Giri states, “The MNRE has played a very vital role along with the State Nodal Agencies to achieve 20,000 MW wind power and making it fifth in the world, which is not a mean achievement, but our eyes need to look at the targets of NAPCC and the overall potential of 400,000 MW for on-shore alone.”

Challenges abound, but so do opportunities. Even though India has a substantial wind resource and the cost of wind power has achieved grid parity, only 20 GW has been exploited till now. Also, till recently, the wind energy market has been driven primarily by the private sector. Through the National Wind Energy Mission, the government intends to instill confidence in the investors by fostering an enabling environment. “We hope the Mission will enable us to realise the targets fixed under various programmes and help us in addressing the issue of energy security through growth of renewable energy,” concludes Dr Srivastava.

wInD EnERGy


wind Mission is a great idea

as chairman of the indian wind Turbine manufacturing association

(iwTma), what are your plans for the wind turbine sector? The Association has decided to focus on core issues for the development of the sector which include sufficient funding to be made available for GBI, reintroduction of accelerated depreciation, infrastructure development, particularly grid infrastructure for wind energy, a realistic solution for wind forecasting, RRF mechanism and the implementation of RPO. It is possible to achieve 3,000 to 4,000 MW per year capacity addition if focused efforts are made for the sector. We have also decided to develop more cooperation among all stakeholders like manufacturers, IPPs, component suppliers, etc., through an umbrella body to take up all common issues for development of the sector.

how has the wind turbine manufacturing industry fared in india in the last two years?There is approximately 10,000 MW per annum high quality and technology manufacturing capacity available in the country along with very high indigenous content. Many of the manufacturers are also exporting its products to global markets.

In 2012-13, total installation of 1,700 MW was achieved and in the current year, 2013-14, almost similar capacity addition is expected. The industry is running at less than 20 per cent of its capacity. Most of the manufacturers are incurring huge losses after having invested substantial capital in world class manufacturing facilities.

The last two years in particular have been very bad for the sector and for the industry. We hope to see good growth in the coming years.

what are your thoughts on the proposed wind mission? The Wind Mission is a great idea. We have seen the results of the awareness created by the Solar Mission. All credit goes to the Secretary, MNRE and particularly to Joint Secretary Dr Alok Srivastava. In my view, we have to remain focused on the objective of the Mission rather than involving too many issues in the Mission. In my opinion, meeting the NAPCC target for the country should be the core objective of the Mission. To achieve the NAPCC target, a capacity addition of 6,000 to 7,000 MW needs to be added year on year till 2020. All initiatives and acts should be focused in that direction, whether it is implementation of RPO, supporting GBI and reintroduction of accelerated depreciation. Also, a focus on grid infrastructure development is the most important part to achieve growth for the wind sector. according to you, what are the policies which will help the wind energy sector and the manufacturing industry? There is an interest and willingness by IPP investors to invest in the Indian wind energy sector. India offers the lowest per MW installed cost and per KWHr cost for wind energy in the world. From that point of view, India is the most attractive destination for investors as we have good wind potential and need for energy. For IPP projects, a long term feed-in-tariff policy by states with 5 to 10 years plan is most important. The state of Madhya Pradesh has made a good beginning. Also, long term PPA, wheeling, banking, third party sale, etc., are some other policy initiatives required for growth of the sector. A 50 to 100 MW wind farm project requires a minimum of 18 to 24 months for implementation and commissioning, hence year on year tariff

Recently, Madhusudan Khemka took over as chairman of the Indian Wind Turbine Manufacturing Association. In this interview with Energy Next, he speaks on issues concerning the wind energy sector, steps which can be taken to better its prospects and how the Wind Energy Mission would help this industry a great deal

policy by states is a deterrent in decision making by investors. Strict implementation and enhancement of RPO is also the key for sustained growth in the sector.

Long term funding for investors at economical interest rates will support the growth. For the manufacturing sector, there should be special incentives on exports and encouragement to higher indigenisation content. Working capital availability for the manufacturers to meet long term project development requirements will help the sector in sustainable growth. in what way has the reinstatement of generation based incentive (gbi) helped the wind energy sector? what are your thoughts on accelerated depreciation (ad)? GBI is very important as an incentive to give the additional protection on wafer thin margin between a viable and an unviable project. It also gives a comfort to investors about the government’s commitment towards promotion of this sector. The overall revenue goes up by 5 to 6 per cent in the first 10 years, which is the most crucial period to meet debt commitment of the project. The GBI scheme must be supported with adequate allocation of funding by Finance Ministry through MNRE as there is no clarity about the future of GBI.

Regarding accelerated depreciation, we have seen the fate of the sector after AD was withdrawn couple of years back. To meet the country’s renewable energy and wind energy targets, we must have different streams to add into the overall growth of wind energy in the country. Accelerated Depreciation will attract investors from the Indian corporate sector & GBI will attract more IPPs including international investors. This will help the government to achieve its targets for the current plan period.

CoVER | INtERVIEW


The Global Wind Energy Council (GWEC) released its 2013 market statistics recently, with cumulative global capacity reaching a total of 318,137 MW, an increase of nearly 200,000 MW in the past five

years. However, the annual market dropped by almost 10 GW to 35,467 MW, attributable to the precipitous drop in US installations due to the policy gap created by the US Congress in 2012. While 2013 marked another difficult year for the industry with ‘only’ 12.5 per cent cumulative growth, the prospects for 2014 and beyond look much brighter.

“Outside of Europe and the US, the global market grew modestly last year, led by China and an exceptionally strong year in Canada. While the policy hiatus in the US hit our 2013 figures hard, the good news is that projects under construction in the US totalled more than 12,000 MW at year end, a new record. European installations were off by a modest 8 per cent, but with an unhealthy concentration of the market in just two countries - Germany and the UK”, said GWEC Secretary General Steve Sawyer.

GWEC welcomed the strong installation figures from China, noting that the consolidation phase for the Chinese industry which began after the peak year of 2010 seems to be over. “China is a growth market again, which is good news for the industry. The government’s commitment to wind power has been reinforced once again by raising the official target for 2020 to 200 GW, and the industry has responded”, continued Sawyer.

India has a new national ‘Wind Mission’, Brazil booked 4.7 GW of new projects in 2013, and Mexico’s electricity sector reform is set to ignite the market in the coming years. While only chalking up 90 MW in installations in 2013, Africa is set to boom with new installations in 2014 led by South Africa, Egypt, Morocco, Ethiopia, Kenya and Tanzania.

“Non-OECD markets are pretty healthy on the whole, and there is a steady stream of new markets emerging in Africa, Asia, and Latin America. With the US apparently back on track, at least for the next two years, the main challenge is stabilising the European markets, both onshore and offshore, which have been rocked by political dithering over the past few years”, said Sawyer.

GWEC expects 2014 installations to at least return to 2012 levels, and probably surpass them, although its annual 5-year forecast (2014-2018) will be issued in April.

wind grows by 12.5% CoVER | GlObAl SCENARIO

Data source: GWEC


how do you evaluate the relative merits of ad vis-a-vis gbi?

Accelerated Depreciation (AD) is a tax-induced incentive scheme which enables relatively small investors including captive power consumers, to invest in wind energy projects by claiming higher depreciation of 80 per cent during the first year of operation, thereby recovering part of the equity investment during the first year by offsetting profits with upfront depreciation from other businesses in the same books. Besides, it creates an asset on books and increases net worth, which potentially aid small-scale industries in raising a higher level of working capital for the business.

On the other hand, Generation Based Incentive (GBI) is a productivity-linked revenue enhancement scheme, wherein the Central Government provides direct generation based subsidy to generators with an objective to provide a level playing field to large sized investors, primarily Independent Private Producers (IPPs), by providing an incentive that is equivalent to the benefit of AD as well as to an extent, provides a viability gap which exists in current feed-in-tariffs

offered by most of the states. Such investors usually invest in wind project through project finance and hence cannot avail AD benefits.

do you think competitive bidding would be an “incentive” in ensuring grid discipline?We need to understand how the wind power sector has developed over the past two decades. Wind power unlike other sources of power, is very site specific and hence availability of good sites with a handful of investors/IPPs may provide undue advantage to such parties, thereby limiting the competition. Hence, competitive bidding in its current format comes as a limited case, though project development through an appropriate PPP route needs to be structured and demonstrated. As far as grid discipline is concerned, that is

Vivek Sharma, Director- Energy & Natural Resources at CRISIL Risk and Infrastructure Solutions Limited, speaks to Energy Next about the multiplicity of tax based incentive schemes for the wind sector and its significance. He also proposes certain measures for an ideal incentive and feels it can provide the much needed boost to the sector

wind energy sector needs incentives

required to unfold in the sector irrespective of the procurement method, whether through competitive bidding or not.

what are your views on multiplicity of incentives, such as the co-existence of ad and gbi and tax breaks?If one looks at the trend of wind capacity additions over the last 2 years, it has declined drastically from 3,197 MW in FY 11-12 to 1,699 MW in FY 12-13. Such a downfall in capacity addition is due to discontinuation of AD scheme and uncertainty over implementation of GBI scheme during FY 12-13. However, the revised GBI scheme, which was announced this year, will be able to promote capacity additions of approximately 1,700 MW only in FY 13-14 as against

GBI is a productivity-linked revenue enhancement scheme, wherein the Central Government provides direct generation based subsidy to generators with an objective to provide a level playing to IPP

CoVER


the target of 3,000 MW. Here, we need to acknowledge that incentives schemes like AD & GBI cater to a different set of investors.

While the AD scheme is more for relatively small investors/SME sector, GBI’s aim is to incentivise IPPs by providing a viability gap which exists in current feed-in-tariffs offered by most of the states. Hence, there is a case for implementing both these schemes, but with well-defined riders/caveats to avoid any possible misuse of any of the schemes. For instance, to ensure that capital cost does not escalate, the AD could be linked with a capped CERC notified capital cost. Similarly, AD scheme could be allowed for projects only with a certain minimum expected CUF as per wind resource assessment report/s to assure projects delivers minimum efficient generation.

do you think the ncef is transparent enough in its administration and justifiable of the pith and substance of the reason of its existence, which is funding new clean energy technologies? what can be done to make the functioning of the ncef better? should it be housed in the mof or in the mnre?The National Clean Energy Fund (NCEF) was constituted for promoting investments in entrepreneurial ventures and funding research in the field of clean energy technologies.

However, three years since its creation, there have been a few areas of concern related to NCEF in terms of its underutilisation, appraisal process and evaluation framework, monitoring mechanism and non-alignment of guidelines with objectives of the fund.

There is a need to identify a well-defined mechanism for prioritising project selection and engage in regular consultations with various stakeholders. Taking into consideration the substantial investments required in R&D, it is of utmost importance to use NCEF for providing support to development of renewable/clean energy projects as well. Apart from this, a part of NCEF can be utilised to reduce cost of capital, to finance big-scale projects such as green corridors for transmission and to implement integrated forecasting measures for renewable energy.

A recent update on NCEF is that the Cabinet Committee on Economic Affairs has approved the proposal to amend the guidelines for appraisal and approval of projects eligible for financing under NCEF, by which existing and eligible appraised and approved schemes/programmes for renewable energy sector will get financing from the NCEF. This will allow “Grid Interactive and Distributed Renewable Power” and “Research Design, Development in Renewable Energy” programmes of MNRE to be financed by the NCEF.

what should the salient features of an ideal incentive be?An ideal incentive should be transparent, easy to access and provide long term certainty to investors. For example, GBI in its primitive form, was not able to attract as many IPPs as envisaged, since the incentive was not adequate or at par with the fiscal benefit offered under the AD scheme. Besides, the process for claiming GBI was difficult. However, the latest version of GBI is more attractive in terms of incentives provided per MW. Similarly, certain important alterations in the AD scheme can be proposed to assure it is not misused and is more transparent, if reintroduced.

do you think that the wind energy installation targets set for the 12th five-year plan period will be achievable? what are your suggestions for aggressive deployment of re in the country?Even though last year’s capacity addition throws a grim picture, the targets set for the 12th Plan period are achievable, especially considering a record capacity addition of over 3 GW achieved in FY 11-12. However, this will require long term certainty on incentive structure, including co-existence of both the GBI and AD scheme. A specific investment in green corridors is important to overcome transmission/grid bottlenecks in Tamil Nadu, Gujarat and Rajasthan. The recent integration of the national grid is likely to benefit RE development, especially in the Southern region. On the other hand, long term clarity on the REC market and prices is essential to revive the former. However, the most important aspect to consider still remains to be the strict adherence/enforcement of RPO targets by respective states. Lastly, the appropriate implementation of Renewable Regulatory Fund (RRF) along with forecasting in the sector is likely to open up avenues for inter-state sale of power, thereby expanding the market for wind energy projects.

EXPERt SPEAK


EnERGy EFFICIEnCy

With the Bureau of Energy Efficiency introducing enhanced norms, consumers will now have to pay more for frost free refrigerators, single-phase split and unitary air conditioners. Richa Kapoor looks at the impact the new norms will have on the market and helps consumers understand them better

Cooling to cost more

R oom conditioners and frost free refrigerators are major consumers of power. And, with the introduction of

star labelling by the Bureau of Energy Efficiency (BEE), the prices of such products are likely to go up by 8 to 10 per cent. The implication of the new norms of

the BEE, the statutory energy conservation body under the Power Ministry, is that an existing five-star AC — which is the most energy-efficient now —will become four-star and a five-star refrigerator will become three-star, and so on.

BEE’s “star rating”, means the grade of energy efficiency displayed on the label

of the room air-conditioner. It is based on the energy consumption standard notified under Clause (a) of Section 14, to denote the energy efficiency of the air-conditioner. The available stars are between a minimum of one and a maximum of five shown in one star interval. The star level of the room air-


StAR LABELLInG

conditioners shall be determined by the Energy Efficiency Ratio, which is meant for the unitary type of air-conditioners.

The tables provide for the value of the various star rating bands for a particular model. The star rating chosen for the model will be based on the lower and the upper limits of each star rating band. Meanwhile, when the new star rated products hit the market, there would be no tolerance for the star rating bands. All tested products will have to meet the minimum threshold for each star rating band. The scope for manufacturing tolerance and other variations shall be accounted for when determining the star rating.

According to Saurabh Diddi, an energy economist at the BEE, the decision has been well-received by the industry as the newly rated air-conditioner will now be eight per cent more energy-efficient. Owing to a reduction in the electricity bill in the long run, the consumer will save more energy and will no longer have to face the brunt of the increased cost of the product. The cost of the product, he added, is not merely increasing due to the BEE label, but also due to a depreciation in the value of the Rupee. Attributing the presence of a grey market to taxation, he ruled out its re-emergence.

The industry, on the other hand, has expressed mixed views over the new star labelling of the air-conditioners as they

ENErgy EfficiENcy ratio (Watt/Watt)

Star lEvEl MiNiMuM MaxiMuM

1 Star * 2.50 2.69

2 Star ** 2.70 2.89

3 Star *** 2.90 3.09

4 Star **** 3.10 3.29

5 Star ***** 3.30

sTar level valid for spliT Type air condiTioners(froM 01-01-2012 to 31-12-2013)

sTar level valid spliT Type air condiTionersfroM 01-01-2014 to 31-12-2015



1 Star * 2.70 2.89

2 Star ** 2.90 3.09

3 Star *** 3.10 3.29

4 Star **** 3.30 3.49

5 Star ***** 3.50

sTar level valid for uniTary Type air condiTionersfroM 01-01-2014 to 31-12-2015



1 Star * 2.50 2.69

2 Star ** 2.70 2.89

3 Star *** 2.90 3.09

4 Star **** 3.10 3.29

5 Star ***** 3.30

claim that the only reason for the rise in the cost of the product is due to the upgradation of the technology.

In order to predict the cost effectiveness, it is important to understand the relationship between equipment prices and efficiency. The methodologies used to characterise cost-effectiveness, include the lifecycle cost, the payback period and the cost of conserved energy.

The national energy savings help in the formulation of policy and evaluation, apart from making an assessment of how accurate the efficiency targets are, in terms of affecting individual consumers. At the same time, it helps them find out about the steps that need to be taken for improvement.

The sampling of the air conditioners will be done by the BEE or its designated agency for testing as per the following sampling plan--One sample will be picked up at random from the manufacturing facility or warehouse and one sample will be picked from a retail outlet. Three units of each type shall be picked up for each test and the tests would be conducted on two of the three units. The third shall be kept as an alternative in case one of the units is damaged or cannot be tested properly for any other reason.

In the guidelines, BEE has said that all air-conditioners must display the label at the point of sale. The label shall be adhered, or attached as a swing tag, on

Source: BEE


EnERGy EFFICIEnCy | StAR lAbEllING

the front of the unit or display front. For units not on display, the label may be attached on the exterior of the packaging or attached to the unit when the unit is removed from its packaging or the label may be included as part of the documentation given to the customer/user.

ll labelling for frosT free refrigeraTors Apart from the labelling of air-conditioners, BEE has also introduced star labelling for electric mains powered frost free (no-frost) refrigerating appliance of the vapour compression type intended for households and similar use being manufactures, imported, or sold in India. The Energy Consumption of the Frost-Free (No-Frost) refrigerator will be tested as per IS 15750:2006.

BEE defined a household refrigerator appliance as one in which “all frozen food storage space is cooled by a frost-free system. Unfrozen food storage space may or may not be cooled by a frost-free system, but all storage spaces in the appliance whether frozen or unfrozen, are automatically defrosted with automatic disposal of water.”

In a frost-free system, cooling is provided by forced air circulation. The system is automatically operated to prevent permanent formation of frost on all refrigerated surfaces and no accumulation of ice or frost forms on stored food.

The table provides for the value of the various star rating bands for a particular model of the refrigerator. CEC will be compared to the lower and the upper limits of each star rating band. The star rating corresponding to the band whose lower rating is less than CEC and upper limit is greater than or equal to CEC, will be assigned to the model.

According to Diddi, in the case of refrigerators, at least 36 per cent of the power would be saved. Meanwhile, Director General, Bureau of Energy Efficiency, Ajay Mathur, said that the upgradation of the standards helps to provide cost-effective solutions and they capture the technological innovations that have occurred. He added that owing to the competitiveness of this programme, one would get to see better quality of products hitting the market.

With more and more consumers buying such products, the prices would gradually decline and the payback period remains 3 to 5 year depending upon what star of product you buy.

As far as the manufacturers are concerned, a senior manager in the research and development section at LG, Inderjeet Singh, said that the newly introduced norms would prove beneficial for the consumer as he would save energy in the long run. The industry had to increase the cost of the products due to a decline in the value of rupee. He added that there would definitely be a decline in the sale of five star products. However, big players like LG will be able to survive this change, but the smaller players, who manufacture one, two, three star products will have to face the brunt.

A paper presented by Michael A. McNeil and Maithili Iyer of Lawrence Berkeley National Laboratory, mentioned that the sale of the refrigerators will increase from 18 per cent in 2009 to 30 per cent by 2030. It also spoke on electricity consumption and savings in 2020 and 2030.

The Bureau of Energy & Efficiency is taking all possible steps to ensure that the products that hit the market are energy efficient and hence they introduced the star labelling for Domestic Gas Stoves using Liquefied Petroleum Gas being manufactured, imported, or sold in India.

The domestic gas burning appliance, consists of single or

Star Rating Thermal Efficiency (As per IS 4246:latest)1 star If Thermal efficiency ≥ 68% &<72%2 Star If Thermal efficiency ≥ 72% &<75% 3 Star If Thermal efficiency ≥ 75% &<78% 4 Star If Thermal efficiency ≥ 78% &<81%5 star If Thermal efficiency≥ 81%

The Thermal Efficiency of each burner of Domestic LPG Stove shall not be less than as specified in the below mentioned table.

Under the check/challenge testing process (as given in Scheme), the LPG stoves shall be tested for thermal efficiency only, while no Negative Tolerance is applicable and the schedule applies to all sizes of domestic gas stoves and not limited to any preferred size.

All Domestic Gas Stoves using Liquefied Petroleum Gas must display the Energy Efficient Star label at the point of manufacturing. The Star label shall be adhered/ transfixed / aluminium anodized label, on the front of the unit or display front. The Star label may also be printed on the exterior of the packaging of the equipment.

multiple burners, injector jets, gas taps, burner pan supports, piping and fitting intended for use with Liquified Petroleum Gas at 30 gf / cm2 gas inlet pressure. Pressure regulator is not included as part of the stove. The gas stove may also be marked with the Standard mark governed by the provisions of the Bureau of Indian Standard Act 1986 and the rules and regulations made there under.

star labelling requirements for domestic gas stoves

The sTar raTing levels for labelling programme for domesTic lpg sToves will be as given below


Interchangeability of energy certificates

tRADInG | StuDy

It has been continuously debated among the renewable energy and energy efficiency communities as to whether the renewable energy certificates (RECs)

should be treated as equivalent to energy savings certificates (ESCerts) and certified emission reductions (CER) and whether there could be a possibility of fungibility/ interchangeability of RECs with them.

Fungibility can be defined as goods’ or assets’ interchangeability with other individual good or asset of the same type in discharging a debt or obligation. A very strong point

presented in favour of fungibility of RECs is that the generation of electricity by a renewable facility, such as a wind turbine, avoids or displaces generation to that extent from a fossil fuel-fired power plant.

Although all the above-mentioned mechanisms exist for appealingly different goals; the ultimate aim of all the three is reduction of carbon footprints.

Currently, all these three mechanism are under a state of dilemma regarding their fungibility, warranting a mechanism to address the issues.

ll The cerTificaTe mechanismsrec: The renewable energy certificate (REC) mechanism was established by the Central Electricity Regulatory Commission (CERC) to enable states to cost-effectively meet their renewable purchase obligations (RPOs) set by respective state electricity regulatory commissions (SERCs). The mechanism provides flexibility for distributors in states that do not have adequate renewable sources to meet their RPOs, by establishing a market based trading mechanism in renewable energy

Renewable energy, energy efficiency and carbon trading markets are currently in a state of dilemma regarding the fungibility of renewable energy certificates, energy saving certificates and certified emission reductions. Sarita Nisha, Rakesh Shah and Dr BSK Naidu have carried out a study to analyse the extent of fungibility possible among the financial products of 3-carbon saving mechanisms prevalent in India


tRADInG

certificates. REC is issued to the RE generator for each MWh of electricity injected into the grid from renewable energy sources besides the tariff realized.

escerT: One of the recent developments in the energy market has been the introduction of energy saving certificates for improving the overall energy efficiency prospects in energy intensive industries. It acts as an instrument for reducing the energy loss in the high-energy intensive industries in the light of Energy Conservation Act, 2001 and Perform Achieve and Trade (PAT) scheme under National Mission for Enhanced Energy Efficiency (NMEEE). The scheme covers 478 designated consumers (DC), and each DC is given specific energy consumption (SEC) target to meet over a period

of 3 years. Any additional saving will qualify for earning ESCerts, which could be traded.

cer: The certified emission reduction, aims at bringing down the emissions of green house gases, particularly carbon dioxide. Emission offsets represent the avoided release of a unit mass of a pollutant to the atmosphere. Offsets offer buyers an alternative to reducing their own emissions, which they may be unwilling or unable to reduce at a lower cost. One certified emission reduction (CER) represents the reduction of one metric ton of carbon dioxide or its equivalent in the family of greenhouse gases. Kyoto Protocol to UNFCCC came to existence in 1997 that commits developed & developing countries to achieve emission reduction targets through CDM. Annex 1 Parties (developed

countries), agreed to reduce their overall emissions of six greenhouse gases by an average of 5.2 per cent below 1990 levels between 2008-2012 (the first commitment period) with specific targets varying from country to country. Developing countries like India and China were mandated to take measures for GHG reductions but without caps.

ll need for fungibiliTyFungibility or interchangeability of RECs with ESCerts and CERs is required to enhance and create harmony in the national and international environment and energy trading market. Since both RECs and ESCerts are traded on Indian Energy Exchange (IEX) and Power Exchange India Limited (PXIL), it gives a space for exchangeability thinkers to take forward the very idea of fungibility. As the projects under REC, perform, achieve and trade (PAT) and CDM mechanisms ultimately tend to reduce carbon footprints; they can provide a common platform for fungibility among the three. Also, in case of surplus RECs in the trading market, fungibility can help in clearing them.

It is clear that the aim of RECs, ESCerts and CERs is the reduction of carbon footprint. Thus for different mechanisms having different paths but same goal, fungibility becomes relevant. In order to create harmony in the environment-energy trading market and to expand the horizons of the market for better trading opportunities fungibility amongst the 3-products is very important and should be implemented soon by the concerned authorities through suitable interventions.

ll analysisThe present study has been done using two instruments- the price equivalence and the energy equivalence. After this proper multiplication factors have been derived to draw conclusions with regard to the extent of fungibility possible among the carbon saving mechanisms prevalent in India.

ll fungibiliTy of recs wiTh escerTs Through price equivalence wayThis is done by calculating the price of 1 ESCert and then finding out a multiplication factor as to how many RECs can be bought to match the price of 1 ESCert. Price of an

Country target against1990**LeveL

Eu-15*, Bulgaria, czEch rEpuBlic, EStoNia, latvia, liEchtENStEiN, lithuaNia, MoNaco, roMaNia, Slovakia, SlovENia, SWitzErlaNd

-8%

uS*** -7%

caNada,**** huNgary, JapaN, polaNd -6%

croatia -5%

NEW zEalaNd, ruSSiaN fEdEratioN, ukraiNE 0

NorWay +1%

auStralia +8%

icElaNd +10%

emission reduction TargetsList of Annex 1 countries with legally binding emission reduction targets according to Kyoto Protocol for the first commitment period 2008-2012

* The 15 States who were EU members in 1997 when the Kyoto Protocol was adopted, took a stand that 8% target will be redistributed among themselves. The EU reached an agreement on how its targets will be redistributed.** Some EITs (Economies in Transition) have a baseline other than 1990.*** The US has indicated its intention not to ratify the Kyoto Protocol.**** On 15 December 2011, the Depositary received written notification of Canada’s withdrawal from the Kyoto Protocol. This action became effective for Canada on 15 December 2012.

As seen in the above table, EU has to decrease its emissions level to 8 per cnet below its 1990 level whereas Norway could afford to go 1per cent beyond its 1990 emissions level for the commitment period 2008-2012.

The first compliance period of 2008-2012 has already passed without any major emissions reduction targets met. Hence new emissions target for the year 2020 has now been set for the Annex 1 countries. It is to be seen how far these commitments are met.

Source: Kyoto Protocol Reference Manual on accounting of emissions and assigned amount


StuDy

ESCert or 1 mtoe can be determined by the formula- P = Wc × Pc + Wo × Po + Wg × Pg + We × Pe (where-‘P’ is price of one metric ton of oil equivalent (1mtoe) or 1 ESCert; ‘Wc’ is weightage of coal; ‘Pc’ is average price of delivered coal; ‘Wo’ is weightage of oil; ‘Po’ is price of fuel oil as declared by Indian Oil Corporation Limited; ‘Wg’ is weightage of gas; ‘Pg’ is price of gas as declared by Gas Authority of India Limited; ‘We’ is weightage of electricity ‘Pe’ is average price of one unit of electricity for industrial sector in the States of Chhattisgarh, Gujarat, Maharashtra, Madhya Pradesh and Tamil Nadu as specified by the respective SERCs. All prices shall be as on 1st April of the year for which value of energy is being specified).

Calculating the current (2013-14) value of per metric tonne of oil equivalent (mtoe) or the price of 1 ESCert using the above formula for a few major industries according to their specific energy consumption (SEC) across the 8 sectors, the value of 1 ESCert comes out to be ` 11,026. Taking into consideration the value of 1 non-solar REC being ` 1500, approximately 7 RECs can be bought in place of 1 ESCert.

ll fungibiliTy of recs wiTh escerTs Through energy equivalence way:Since 1 REC is equal to 1 MWh and 1 ESCert is equal to 1 mtoe; an appropriate conversion factor needs to be determined the fungibility by finding the relationship between mtoe (energy component) and MWHr (electricity component). For ex- 1 mtoe= ‘n’ MWHr hence

1 ESCert= ‘n’ RECs. Since 1 mtoe is equal to 11.67 MWh, the value of 1 ESCert will be 11.67 REC. Therefore, any energy efficiency project under the PAT mechanism can claim 11.67 RECs in place of 1 ESCert if fungibility of REC with ESCert is allowed. Since price of 1 REC is ` 1,500, the value of 1 ESCert will be ` 17,505.

However, the value of 1 ESCert calculated according to the formula (P = Wc × Pc + Wo × Po + Wg × Pg + We × Pe) comes out to be ` 11,026. This gives a differential of ` 6,479, which makes fungibility between ESCert and REC unworkable as of now through the ‘energy equivalence’way. Considering the fact that the price of 1 ESCert depends on prices of coal, fuel oil, gas and electricity, which are going to increase in the future until 2015 when the ESCert will be on hand for trading, one can assume that the price of 1 ESCert and price of 11.67 REC will become more or less equal and ESCert will become fungible or interchangeable with RECs.

ll fungibiliTy of recs / escerTs wiTh cers:Fungibility between CERs and RECs/ESCerts as of now seems difficult because the CERs are facing a huge shortage of demand because of which the price of a CER has hit life time low. Since the pricing of CERs are based on the discretion of buyers and sellers and also on the international energy market trends, one can hope that the price of CER will bounce back. On the other hand, the floor price of REC may be reduced from ` 1,500 once the grid parity between conventional and new renewable

energy sources is achieved. Thus, the fungibility between RECs and CERs is seen as a future possibility for harmonising and incentivising the international and national energy-environment trading markets.

ll conclusion:Fungibility amongst the three mechanisms through the ‘price equivalence’ way appears more practical, dynamic and sustainable over the years than the ‘energy equivalence’ way.

Synchronisation among various bodies viz. CERC, Bureau of Energy Efficiency (BEE) and Designated National Authority (DNA) for CDM projects-Ministry of Environment and Forest (MoEF) is required for proper implementation of fungibility. The CERC and the BEE can act as the coordinating bodies looking after the exchangeability issues, where the latter could come out with a proper multiplication factor every year for the ease of fungibility and also a cap should be put on the extent of fungibility.

Since the trading of ESCerts will begin only after 2015 once the first compliance period of PAT mechanism ends, there can be a situation which could result in shortage of ESCerts since meeting the tough energy efficiency targets remains a difficult task. At that point RECs could fulfil the shortage of ESCerts through fungibility and ultimately renewable energy production will be promoted if demand for RECs increases.

Rakesh Shah is Advisor (RE), CERCSarita Nisha is PGPM (Energy) Final Yr, GLIMDr B S K Naidu is Chairman Emeritus, GLIM, Gurgaon(The views expressed by the authors are personal)

paT scheme cdm


Q what, according to you, are the positives that have emerged for the re sector

in the last decade?Renewable energy is an important step towards a sustainable and secure energy future. It is abundant and inexpensive, and as prices are expected to fall even further, it is becoming even more cost competitive. Today, RE sources such as wind and solar are in many geographies cost competitive with, or cheaper than fossil fuels. Hydropower and geothermal are already the cheapest sources of power globally. Recent

renewables are democratising the energy system. Everybody can become an energy producer. In Germany, for instance, half of all renewable energy is owned by private citizens and farmers. So, the case for RE is pretty straightforward. Energy needs to be affordable, sustainable and secure, and renewables deliver on all three of these goals.

do you believe that the real change in terms of scale for re investment is going to come from the private sector?Markets and policy makers both play crucial roles in the global energy transition. Markets provide affordable solutions, but a sustainable future requires policy guidance. Policies must enable investments and stimulate market growth and transformation, with a focus not only on short-term gains, but also on long-term impact. This is where markets are sometimes inefficient. Effective policies must take into account the system and infrastructure issues, such as biomass supply and demand, electricity generation capacity and the transformative value of smart grids. Market forces play a key role in finding efficient solutions and scaling up the best practices.

It promotes the widespread adoption and sustainable use of all forms of renewable energy, in the pursuit of sustainable development, energy access, energy security and low-carbon economic growth. In short, the International Renewable Energy Agency (IRENA) supports countries in their transition to a sustainable energy future. Adnan Z. Amin, Director-General of IRENA, speaks to Sapna Gopal on just why the case for renewable energy is so strong the world over and getting better by the day


auctions in South America, for instance, priced wind energy lower than natural gas at below USD5ct/kWh in Brazil and both solar and wind far below $ 0.10/kWh in Uruguay. In South Africa, wind is cheaper than coal.

In addition to mitigating environmental degradation and reducing CO2 emissions, which makes a very strong case for RE, it also has a very positive socio-economic impact. One of IRENA’s recent reports, Renewable Energy and Jobs, shows that there are already 5.7 million jobs in RE worldwide, and that this figure is expected to grow to about 16.7 million by 2030. These numbers prove that RE is a serious economic factor, and growing. But the socio-economic benefits go beyond that. Renewables can help to address developmental challenges such as energy access for communities that are currently lacking, modern energy services, and provide energy security by cutting fuel imports.

Last, but not the least, renewables are also changing the dynamics of the global energy system and creating new business opportunities. Distributed generation from renewable sources is creating new market players, putting pressure on established utilities and power producers. In a sense,

It promotes the widespread adoption and sustainable use of all forms of renewable energy, in the pursuit of sustainable development, energy access, energy security and low-carbon economic growth. In short, the International Renewable Energy Agency (IRENA) supports countries in their transition to a sustainable energy future. Adnan Z. Amin, Director-General of IRENA, speaks to Sapna Gopal on just why the case for renewable energy is so strong the world over and getting better by the day



GLoBAL VoICEGLoBAL VoICE

practices from countries with a sound track record in RE auctions can be used to guide the development of new markets in other countries. Potential implementation pitfalls can then be avoided, which makes it easier and more likely to achieve national sustainability objectives. While auctions have proven to be effective in many contexts, IRENA’s policy team also continues to analyse other instruments, particularly feed-in tariff and feed-in premium schemes.

could you tell us about the renewables readiness assessment? how has it helped?IRENA supports countries in their transition to a secure and clean energy future. A major avenue for this has been the Renewables Readiness Assessment, which enables countries to identify the gaps and actions required to accelerate the deployment of renewables. It is a comprehensive tool for assessing the conditions existing in a country for the development and deployment of renewable energy, based on a country-owned stakeholder consultation process.

with regard to policies, how can governments play a significant role in furthering the re sector? IRENA’s recent “REmap 2030” study identifies five policy areas in order to accelerate the deployment of RE and double the global share of renewable energy by 2030.

We recommend, first, that every country should develop a realistic but ambitious transition pathway, e.g. a national roadmap for the deployment of RE, regular monitoring of progress and re-evaluation of targets, streamlined planning processes, and a focus on the human and institutional capacity to develop and sustain the transition to renewable energy. Second, we encourage countries to create what we call an “enabling business environment”. The private sector needs certainty to invest, so the predictability of the policy framework is crucial to de-risking investment; this includes a level playing field for renewable and appropriate international standards and certification. Third, countries should also focus on sharing and providing technological knowledge about renewables and their deployment. For instance, through publicly accessible data on technology costs, something IRENA is providing on a global scale. Fourth, the smooth integration of renewables into the existing infrastructure is an important area of policy action, for instance with “smart” transmission grids and interconnectors. In this context, issues such as energy efficiency, energy access, water and land use, as well as industrial development should be considered as well. Finally, we recommend focusing on innovation, including appropriate support mechanisms for emerging renewable technologies.

please tell us about the sustainable energy for all initiative. what does it aim at?The global focus on sustainable energy is reflected in an increasing number of initiatives and it includes the UN Secretary General’s Sustainable Energy for All (SE4ALL) initiative. This initiative, launched in early 2012, calls for doubling of the share of RE by 2030, and for universal access to modern energy services. IRENA has been designated as the hub for renewable energy within the initiative.

Our “REmap 2030” study, which I already mentioned, maps out the path to achieve the

goal, and also proves the strong economic case for the energy transition. The global renewable energy share can reach and exceed 30 per cent by 2030 at no extra cost and based on the technologies that are available today. Energy efficiency and improved energy access can even advance the share of renewables in the global energy mix by up to 36 per cent. When considering climate change mitigation, health impact and job creation, the transition practically pays for itself.

“REmap 2030” builds on the analysis of the energy supply and demand of 26 countries, which account for 74 per cent of projected global total final energy consumption in 2030.

you have stated that the focus is now on practical solutions for renewable energy. please elaborate.The renewable energy technology that is available today is mature, proven and cost-effective. All we need to do is deploy the best technology in the local circumstances. This is a practical question and we need practical solutions.

renewable energy auctions are an increasingly popular tool for governments to procure renewable electricity at moderate cost. countries like brazil, china, morocco, peru and south africa are good instances. do you feel this can be emulated in other parts of the world as well?Auctions have been gaining popularity because they minimise costs through a market-based price discovery. And, they allow regulating the volume of RE deployment. Best

Energy needs to be affordable, sustainable and secure, and renewables deliver on all three of these goals


ADnAn Z. AMIn

in what way has the global atlas project helped? what are the goals it has managed to achieve?The Global Renewable Energy Atlas is the largest ever initiative undertaken to assess RE potential on a global scale. It provides data on wind and solar, and will progressively include other renewable resources. Our intention is to raise awareness of technology opportunities as well as help investors find new markets. That’s why the Global Atlas provides high-quality resource maps from leading technical institutes and simplified models for evaluating technical potential. We see this as an entry point for investigating RE potential before initiating detailed national assessments and building human capacity.

recently, you stated that pacific countries should work together on scaling renewable energy. do you think this sector has become more relevant than before?Today, the Pacific Island countries predominantly use fossil fuels for transport and electricity. But increased fuel prices have led the fuel imports to represent on average close to 10 per cent of their gross national income. As the Pacific Island countries share similar sustainable development challenges, such as remoteness, small populations, small markets and an excessive dependence on international trade, the deployment of RE can address these problems and help secure their future energy.

IRENA conducts the Renewables Readiness Assessment in partnership with governments and regional organisations, and we assist countries directly in the translation of the findings into policy implementation.

has the global economic scenario impacted the re sector? what are the challenges that this sector has had to face in the last couple of years?We continue to be quite bullish about the economics of RE. Investment in RE has been growing consistently over the years. And, even if the total amount spent in 2013 was smaller than in 2012, the total capacity installed still showed healthy growth. So, we have seen more installations in 2013 than in 2012, at a lower cost. This is ultimately a good thing, because it shows that the economic case for renewables is getting even stronger.

do you think developing economies can leapfrog other countries in the renewable sphere?Unlike developed economies, developing economies are not facing an extensive energy transition from a fossil fuel based system to the future, sustainable system. Many developing countries have the great advantage that they can build up the future system pretty much from scratch without costly retro-fitting of existing but technologically out-dated infrastructure. So building the clean energy infrastructure based on new technologies not requiring expensive upgrades is somewhat easier.

how would you rate the progress of the renewable energy sector in countries like india? what can be done to further enhance this industry? India was one of the first countries to create a Ministry for New and Renewable Energy, reflecting the importance of the sector. The wind sector – both grid connected wind power and manufacturing – started in the early 1990s. India is ranked in the top five countries, as far as annual capacity installation is concerned. And recently, the solar sector has picked up with the launch of the country’s National Solar Mission in 2011. Grid connected solar power has been increasing steadily.

However, for a country like India, which still has a large population without access to modern energy services and has peak shortages in the range of 9 to 13 per cent, there is a huge opportunity for enhancing the share of RE in its overall energy mix. The thrust and scale provided by the National Solar Mission, in a global setting of declining technology costs, has led to a dramatic decline in tariffs. Wind, hydro and biomass power are already competitive and solar is rapidly moving towards being competitive.

This is also a tremendous economic opportunity for India. With nearly 400,000 jobs already created in this sector, it will continue to grow in importance for future job creation, as the sector continues to attract higher investments.

For a country like India, which still has peak shortages in the range of 9 to 13 per cent, there is a huge opportunity for enhancing the share of RE in its overall energy mix

GLoBAL VoICE | ADNAN Z. AMIN


CuRInG PowER MALADy At HoSPItALS! It’s a condition that is beginning to ail the hospital sector as well. In order to combat rising power woes and inflated bills, steps are now being taken to enhance energy efficiency. Is this then the panacea? Sapna Gopal looks into the current trend prevalent in the healthcare industry and what experts have to say about this.

At a glance, they look like a building any other. However, unlike conventional spaces, hospitals are no ordinary

buildings in that they work round-the-clock, handle emergencies and are in need of power much more than ordinary work areas. Therefore, adopting energy efficient measures not only makes critical sense, it also helps save an enormous amount of electricity.

According to the Ministry of Power, there lies a huge potential of energy saving in hospitals and healthcare institutions in the

country. Energy audit studies, conducted across various sectors, including hospitals, also indicate a huge energy saving potential.

Industry insiders agree that just like other sectors, energy efficiency is inevitable for hospitals too. Ramdas Shenoy, executive director, Marketing & Business Excellence at Green India Building Systems and Services (GIBSS), believes that presently, hospitals don’t have an option, but to look at addressing energy efficiency of buildings without impacting the hospital’s operational efficiency. The biggest dilemma for the

hospital sector, he adds, is to improve medical offering and patient care options, which improve on an ongoing basis, but at the same time, address the cost burden on both private and public investors.

Also, “the conscientious use of energy has become a global responsibility, more so at hospitals because of economic reasons. The biggest challenge for hospitals is to ensure energy at all times, but to also see to it that it doesn’t put burden on the wallet. In order to meet the ever-increasing energy requirements and also ensure comfort and profitability,

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energy efficient systems have to be integrated in the hospital building,” he reasons.

Concurring, Daljit Singh, president, Fortis Healthcare Limited, states that currently, a number of healthcare companies and hospitals value the importance of integrating energy efficiency models into their systems. They have tuned their operations in such a manner so as to reduce energy consumption and greenhouse gas emissions, becoming responsible partners in the rapid growth of the industry.

Elaborating further, he explains, “It has also been observed that better day lighting at green hospitals, access to views of good landscapes and improved indoor air quality helps patients heal faster. Investing in energy efficiency,

need for energy efficient measures in the healthcare sector. One such exclusive survey was undertaken by the CII Western Region Healthcare sub-committee along with S L Raheja (A Fortis Associate) Hospital and Schneider Electric. The aim was to share best practices on green hospitals, deliberate on the challenges and issues and present case studies on benefits and savings associated with green hospitals. Titled “Energy Efficient Hospitals---visiting the realities”, it lists the following factors, which drive high-energy use at healthcare facilities. These are: ll High Efficiency Particulate Air (HEPA) filtration is required to prevent the spread of disease in the ventilation system. HEPA

(and UV lights) for infectious isolation and the control of diseases.ll IAQ must be strictly regulated for temperature, humidity, and quality. This increases the need for proper heating, cooling, and fresh air intake.

On the other hand, GIBSS has identified the three main energy guzzlers viz. the air-conditioning systems, lighting systems and hot water systems that consume more than 80 per cent of the hospital’s total energy requirements. It has also been found that building hospitals with a proper north-south orientation, rain water harvesting, recycling of reusable products, efficient lighting and air-conditioning are among those measures that help save

hence, delivers significant benefits to all stakeholders and ultimately, the environment.”

Global factors have also been a likely factor in propelling these measures. As Shenoy reveals, “The recent global recession has led to losses for many for-profit hospitals and has squeezed margins in others. Energy efficiency projects can unlock trapped capital that can improve a hospital’s profit margin or be used to fund technological advancements, purchase medical equipment, or improve the patient experience.”

Studies in the area also support the

filters that achieve 99 per cent efficiency place greater electric demand on fans for proper air circulation. ll Stringent indoor air quality (IAQ) levels must be maintained, especially in operating rooms (OR), emergency rooms (ER), intensive care unit (ICU) and laboratories. These rooms require 20 to 30 air changes per hour. ll Certain types of rooms have special HVAC pressurization requirements. ORs, ERs, and ICUs, generally run over-pressure for protective isolation from airborne infection. Quarantine rooms require negative pressure

energy consumption by 15 to 25 per cent. Such initiatives help bring down operating and maintenance costs of hospital buildings by as much as 50 per cent.

Electrical lighting, Shenoy adds, accounts for 14 per cent of energy requirements in a conventional hospital and HVAC accounts for 35 per cent of the energy bills. With energy efficient solutions, it could bring savings to the tune of 60 to 80 per cent in the HVAC and lighting consumption. Further integrating energy efficient systems with building anagement systems, hospitals are


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efficiency. The Fortis Memorial Research Institute (FMRI) in Gurgaon and Fortis Hospital, Shalimar Bagh, New Delhi, have both been awarded a four-star and three-star rating respectively by Green Rating for Integrated Habitat Assessment (GRIHA). At the FMRI, there is a focus on energy conservation, via the use of low emissivity glass for the building envelope, deployment of solar energy for lighting and hot water and use of highly energy efficient fixtures.”

While the instances have been encouraging for the healthcare sector, Shenoy is quick to clarify: “The question is whether they are looking at the right measure. Just by addressing the supply side of energy and looking at trivial measures will not be sufficient enough to bring down energy bills. Looking at alternative energy or renewable energy options will also not be able to address the same, primarily because the energy requirement of a hospital will be far more than what these sources could produce.” The option, he suggests, is to address the demand side of energy in a building and looking at technologies, which could bring down the energy requirements of the buildings, thereby making the supply options more viable. The endeavour should be to make the equation of making the hospital building ‘Net Zero Energy’.

He concludes by stressing on why this is no longer a norm, but a necessity. “Increasing energy efficiency, reducing carbon emissions and saving costs is no more a fashion statement, but is a compulsion and part of the daily staff’s schedule. Furthermore, since hospitals are part of the service industry, managing the buildings efficiently calls for systems which are able to address all the needs of a complex structure like a hospital building.”

able to control energy bills and also reduce operating maintenance costs, he suggests. “GIBSS geothermal cooling systems for air-conditioning, hot-water co-generation solutions and LED lighting solutions can bring down energy consumption by 60 to 80 per cent and can create positive savings for the hospital buildings.”

In India, hospitals in major cities like Mumbai, Delhi, Bangalore, Hyderabad, Kolkata, Kochi among others are now looking at energy efficient measures. Also, the new hospitals commissioned by the Centre are being designed and constructed to attain an acceptable green rating.

Government hospitals in Hyderabad, for instance, will switch to solar power. K Srinivas, deputy general manager, New and Renewable Energy Development Corporation of AP (NEDCAP), told Energy Next that as of now, plans are on to install a total of 1 MW solar plants in three hospitals in the city. According to him, a 400 kW rooftop photovoltaic power system will be installed on Osmania General Hospital, 500 kw on Gandhi Hospital and 150 kw on Niloufer Hospital. A Delhi-based private power developer has been entrusted with the task of installing the required equipment at the three hospitals by March 31. The government is also in the process of selecting another developer for installing a 100 kW solar power equipment at the Fever Hospital.

It is believed that using solar will help these hospitals save up to ` 24 lakh a year. Apart from saving energy and money, it will also be a convenient option since emergency services in the hospitals can be carried out without a hassle, especially with erratic power cuts that

have become a norm in the city. However, whether more such hospitals

will adopt these measures still remains to be seen. According to Singh, “Most government hospitals are existing structures and in some cases, were built almost 50 to 60 years ago. Making structural changes to these hospitals may not always be possible, some of them have started adopting tailor-made energy efficiency measures.”

Shenoy, on the other hand, feels it is unlikely that governments will take on additional debt or raise taxes significantly to pay for the escalating costs. “All energy saving mandates is not the prerogative of private hospitals alone, but to run a government hospital too calls for energy saving measures and government hospitals too are definitely looking at energy saving measures.”

Private hospitals in India have definitely seen faster acceptance and adoption of energy efficiency norms. Citing the instance of Shalimar Bagh, Singh states, “The adoption of efficient lamps, luminaires, chillers and controls at Fortis Hospital, Shalimar Bagh, brought down the overall energy consumption by about 31 per cent over the GRIHA benchmarks and by about 48 per cent compared to a conventional hospital in 2010-11.”

Moreover, Fortis Hospital, Anandpur, Kolkata, created a benchmark in energy conservation by achieving a reduction of 25 per cent in the electricity consumed over the previous year, thereby helping save ` 65 lakhs. It was also awarded the Golden Trophy for Energy Conservation 2013, in the hospital category, by the President, Pranab Mukherjee.

Singh states, “Three of our hospitals have won awards for their efforts at energy

• Kohinoor City Hospital, Mumbai • Max Balaji Hospital, Delhi• ESI Hospital, Bangalore• Govt. Mohan Kumaramangalam Medical College & Hospital, Salem• Asian Health Care, Mumbai• Matushri Monghiben Ramji Savla Hospital & Research Centre, Mumbai• Medica Hospitals Pvt Ltd, Kolkata• Continental Hospitals Ltd, Hyderabad• Lazarus Hospitals Ltd, Hyderabad• Aster Medcity Hospital, Kochi

GoInG GREEn


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The inaugural CEO Roundtable, with the theme- ‘Issues in Determination of Tariff for Small Hydro Power in Hilly

Region’- was organised with the support of the Ministry of New & Renewable Energy (MNRE) and Indian Renewable Energy Agency (IREDA).

The conference was attended by officials from MNRE, IREDA, state regulatory bodies, state nodal agencies, independent power producers (IPPs), research institutes and energy experts.

A voice to SHP

Dr Satish Balram Agnihotri, Secretary- MNRE, who was the chief guest, lauded Energy Next’s initiative for inviting various stakeholders from the industry for deliberations.

He added that it was a suitable platform to discuss and find a solution to the core issues that are hampering growth of the SHP sector. “Over the last two years, the situation in the SHP sector is grim. I would like to know where the problems are and try to get solutions.”

Debashish Majumdar, CMD- IREDA and editor-in-chief of Energy Next, said, “When we

look at renewable energy, the lowest tariffs are for the SHP projects. The SHP is least infirm and most dependable among all the renewables, yet, the investments are not coming as expected.”

Giving a regulator’s perspective over the issue of tariff, Dr Pramod Deo, former chairman of Central Electricity Regulatory Commission (CERC), said, “There has to be a concrete mechanism, as the regulators are left with no option but to rely on various reports and suggestions while framing tariff for the projects.”

The event also saw active participation from

In a first of its kind initiative, Energy Next organised a CEO Roundtable to address the issues of tariff in the small hydro power sector. The event brought policy makers, regulators and project developers on a single platform to deliberate over the challenges and arrive at possible solutions. A brief report on what transpired at the event

Debashish Majumdar KS PopliDR Pramod DeoDr Praveen SaxenaDr Satish Balram Agnihotri

EVEnt CoVERAGE


project developers who highlighted the core issues which currently confront the sector. During the course of discussions, three major issues that came to the fore included correct estimate of capital cost, removing transmission charges for renewable energy and enforcement of RPO mechanism for propelling the REC market. K L Chugh, Chairman- Emiratus- ITC Ltd, urged policy makers for speedy action in this regard.

There was unanimous agreement on the lack of tactical data which leaves the policy makers with no option , but to rely on data provided in DPRs or through other sources. Dr Praveen Saxena, Advisor- MNRE, urged the developers to provide real data so that

“We should have an SHP Atlas like solar atlas and wind atlas. Data also has to be presented in a manner that it gives a clear picture to the project developers. The developers also need to provide specific data to the Ministry and IREDA”

Dr S B Agnihotri, Secretary, MnRE

“There are several issues in the SHP sector which need to be analysed carefully. We need to see how we can encourage investment and make the developers feel assured that when they invest in SHP, they will get returns”

Debashish Majumdar, CMD, IREDA

“If you look at the SHP tariff, it does not look very attractive. Maybe when the project starts, it feels that you will get the desired return, but it is not the case. We have seen a lot of projects, where we have to restructure it and the project goes on for 20 years and then they start getting returns”

K S Popli, Director (technical), IREDA

“Though renewable purchase obligation is mandatory, it lacks strict compliance. Give some power to the regulators and make them accountable, as today, they are not held accountable. There is also a need to increase the target of RE in the Five-Year Plan period and RPO must be in line with the set targets”

Pramod Deo, Former Chairman, CERC

“I would like to admit that CERC does see the numbers and they do come back to the ministry asking us what do we have to say about the cost. In our ministry we have given the numbers.”

Dr Praveen saxena, Advisor, MnRE

LEADERSVOICE

the Ministry and IREDA would take up the matter further with the central and state electricity regulators.

Expressing happiness over the initiative of Energy Next, the participants hoped that it gains momentum over time. The industry leaders stated that an independent forum provided by Energy Next is an apt platform for intellectual thought leadership.

K S Popli, Director (Technical), IREDA, assured delegates that this kind of an initiative will help in addressing issues of the renewable sector. The outcome of this Roundtable will help in coming out with solutions that will aid the SHP industry, he added.

EnERGy nEXt CEo RounDtABLE

Vikram Reddy K Seethayya Neeraj Sati


CAtCHInG IMAGInAtIon OF ShP bIGWIGS

“I find that Energy Next always takes some new initiative. SHP is passing through a difficult

phase and it is the most timely initiative taken by EN to revive the sector.”

Praveen Saxena Advisor, MnRE

This particular initiative taken by Energy Next saw all stakeholders on one platform

exchanging their views and the discussion was very focussed. Also, in the last three years, EN has provided rich content and increased its coverage as well, month after month.”

Debashish Majumdar CMD, IREDA

“I am very happy that this initiative of Energy Next, supported by IREDA, brought about a

focussed discussion on specific issues and it would definitely help in eliminating the problem of the sector. The magazine will become increasingly relevant once it carries more such reports.”

K S Popli Director (technical), IREDA

“This CEO RTC has been a very good initiative of Energy Next as it has helped in bringing to the

fore the problems of the small hydro power sector. This effort and initiative of EN is highly appreciable and we welcome such conferences as one got an opportunity to learn a lot of things. Energy Next magazine is doing a very good job in bringing out the issues taking place in the RE sector.”

Dr Arun Kumar Chair Professor, AHEC-IIt Roorkee

LEADERSVOICE


EVEnt CoVERAGE

The CEO Round Table conference focussing on ‘Issues in determination of tariff for small hydro power in hilly region’- organised by Energy Next, brought to focus the core issues of the sector and created a viable platform for solution. The participants appreciated the intensity of debate and the conference won accolades, since it brought together stalwarts of the industry.

EnERGy nEXt CEo RounDtABLE

“The CEO Roundtable is a marvellous initiative by Energy Next, and I am very happy that

a dedicated focused discussion on a subject of great urgency has taken place. I hope that EN will continue this endeavour on renewable energy and take on other sectors like solar, wind and biomass as well. But, first, make today’s conference successful by bringing about a change.”

K L Chugh Chairman, Emiratus- ItC Ltd.

“A wonderful gathering of everyone being here and talking about the problems of SHP. As

far as Energy Next is concerned, it would be a repository of a lot of data which is going to come and a lot of views that will come to the fore.”

Syed Javed Mohsin MD, Sikkim Power Development Corporation Limited

“This conference was much needed and if all the views are taken into account, then we

would be able to formulate the right kind of policy which will prove beneficial for the sector. Energy Next magazine is quite informative and is presenting issues well.”

uday Bhende Senior Vice-President & Head, Kirloskar

“The Round Table provided a useful forum for small hydro IPPs to bring their concerns

about tariffs to government stakeholders and explore pathways towards a more sustainable policy environment for the sector. The forum allowed participants to focus on solutions rather than being distracted by ancillary challenges. I look forward to the next in the series.” ”

Shannon Cowlin Energy Specialist,Asian Development Bank


withdraw these systems as the locals came back to them asking for more power at a lesser price.

Nikhil feels that there is a need to cut down on paper work when goods have to be transported from one state to the other and “MGP has demonstrated that social enterprise can be profitable and power could be provided to those who are deprived of grid connectivity.”

However, he adds that the hurdle posed by the government is that “the Employee State Provident Fund and Employee State Insurance are two underperforming initiatives. “This taxes BPL workers and companies that offer employment to the poor in order to generate low cost capital for infrastructure projects and disproportionately serve the urban rich. The government is planning on further broadening these taxes which will result in an even lower take-home pay for the employed poor and put

Dimly lit shanties, with smoke arising in spirals from wood fires were some of the initial sights that greeted Nikhil Jaisinghani

during his prior visits to villages in a state often described as India’s “heartland”. It was these very compelling images that led him to developing a system which would help in meeting the power requirements of the poor.

During the course of identifying the problems of villagers in Sitapur area, Nikhil discovered that the non-government organisations were at the mercy of donors. He said that “the products were so highly priced that it was difficult for the poor to purchase them.” Moreover, the extensive use of kerosene lanterns was not only taking a toll on the health of the people, it was also making a hole in their pocket.

So, when he decided to address the woes of

the locals, a service-oriented business model was developed and the focus was on off-grid lighting space. Consequently, Nikhil along with Brian Shaad, set up Mera Gaon Power (MGP), which provides solar-power microgrid service in Uttar Pradesh. Initially, MGP’s promoters provided financial aid for the pilot project in 2010 and 2011 and the first commercial facility was installed in December 2011. As of September 2013, MGP serves priority energy services to over 13,000 households in more than 500 villages.

ll challengesHowever, the journey was far from easy and the team found it difficult to work closely with the non-government organisations since they had little control over their field staff. Initially, the duo was in a fix as they negotiated power ceiling and price with the villagers. They were forced to

Up until now, darkness would engulf most hamlets in the villages of Uttar Pradesh. However, things began changing when Nikhil Jaisinghani designed a micro grid based on solar power. Apart from being cost-effective, he also ensured that he had built a strong customer-oriented business model around it. Richa Kapoor details the work of this young entrepreneur, his journey thus far and the challenges he has had to face

Lighting Lives

ACHIEVER


Moreover, children are now able to study in the evenings and at the same time, the villagers are able to earn more money by engaging in other businesses like weaving of bags and embroidery on saris. The biggest advantage is that the air inside the house is clean and there has been a visible decline in the number of people suffering from respiratory ailments.

On the difference made by Mera Gaon Power has been able to make difference in the lives of rural India. Natarajan, said “In the context of the state that they are operating in, where there are nearly 20 million rural households without access to electricity, MGP is doing exceptional work in delivering basic lighting services in districts of the state, which are worst affected in this regard.”

ll awards and accoladesWhile the White House highlighted MGP’s work at the Innovations for Global Development event in 2012, in the same year, the World Wildlife Fund (WWF) selected MGP as a Green Game Changer. Also, MIT Technology Review selected MGP’s micro grid design as one of the ten most important technological achievements of 2012.

ll fuTure plansCurrently, MGP is providing high quality electric lighting to 90,000 people in over 900 villages. They are now looking at lighting up 100,000 households with their solar service by 2015, which means installation of systems in 50 villages this year, thereby increasing to 1,000-2,000 over the next five years. The company also has plans to make an inroad to southern Nepal.

a greater burden on companies such as MGP which are creating jobs for the poor.”

The other hurdle faced by Nikhil and his team was that of training the local population with regard to operating the system. Yet another constraint they faced was the role of the villager turned collection agent, who was responsible for collecting the weekly fees.

MGP suffered losses as the collection agent did not disconnect the service to the house of those who had failed to pay the fees or were drawing the power all 20 hours, thereby causing damage to the batteries. Such was the gravity of the situation that Nikhil recollects a financial loss to such an extent that they “were on the verge of closing their company.”

However, monetary assistance worth $300 thousand from USAID under its Development Innovation Ventures (DIV) programme helped them to a great extent.

Even as Nikhil and his team brought about changes in the system so that the locals could charge their phone at home, they realised that the system still did not have the provision of providing power to run a television or a fan and placed additional burden on the customer. In order to arrive at a middle ground, Nikhil and his team developed a system wherein the customer would have to pay ` 25 to ` 30 every week and he would get enough power for two LED lights and one mobile-charging point.

The model of service which was developed costs ` 50, 000 and it can light up at least 25 households. The expenditure includes the cost of transportation, equipment and that of labour, while the electrification process can be completed within a short span of time with the help of just three to four people. Also, the facility is fully automated and there is a customised

database with pictorial interface for uneducated staff to enter payments.

Their efforts eventually paid off and in 2013, the company’s annual revenue was $163 thousand, while the operating cost was $40 thousand and the gross profit earned was $123 thousand. Also, in the same year, MGP raised $1 million in equity from Insitor Seed Fund and this will fund the company’s plan to provide power to 1,000 villages and 25,000 customer households.

Speaking about the sufficient policy support for entrepreneurs like Nikhil to succeed, Hari Natarajan, Sr. Technical Advisor, Renewable Energy Component (Indo-German Energy Programme) said, “Given that the mini-grid sector is very nascent in India, the policy framework is still evolving. Mini-grid operators such as MGP have to therefore operate in a difficult environment without significant policy support. Despite this, MGP has been the few mini-grid operators in India to have reached the scale of operations they have, currently providing services to around 18,000 customers.”

ll environmenT & social benefiTsElaborating on the environmental benefits of MGP’s microgrids, Nikhil states, “They are renewable powered and replace dirty kerosene in customer households. Also, they help in the reduction of kerosene consumption as well as carbon emissions. The removal of kerosene from the household creates a safe environment for the children who accidentally drink it.”

As far as social benefits are concerned, earlier, the villagers used to reside in dimly lit houses. However, once their homes were connected to the microgrids, they saved more money, which they would have otherwise spent on kerosene.

now, villagers are earning more since they are able to engage in other businesses like weaving of bags and embroidery on the sarees. Children too can study in the evening

nIKHIL JAISInGHAnI


Solar, wind, biomass to power Goa

For a state that does not generate its own power, the challenge lies in meeting the increasing demand. It is with this very intent that the Goa

Energy Development Agency (GEDA), the state’s nodal energy body, has been entrusted with the task of increasing the share of renewable sources, so as to be able to meet the overall energy demand as well as the renewable purchase obligation (RPO).

According to Dr Pramod V Pathak, member secretary of the Goa Energy Development Agency (GEDA), Goa currently draws about 500 MW from other states and this is insufficient to meet the rising demand for power. To combat the shortage, GEDA is increasing the use of clean and green power by tapping renewable forms of energy. Already, it has installed 20 hybrid systems of wind and solar together, of which 15 are operating efficiently.

Also, in the last three to four years, GEDA has achieved competence in operating hybrid

systems which generate energy. After one system was connected to the grid recently, GEDA has realised that a 10 KW capacity plant, comprising of wind mill and solar together, can also be grid-linked. Moreover, there are plans to set up 50 such systems all over Goa in the next three years adding up to 2 MW capacity. To be taken up in phases, these will help generate power and enable the development of manpower, which in turn can handle renewable energy projects.

ll solar power generaTionAccording to Dr Pathak, since the potential in Goa for the installation of wind power projects is limited, (a capacity of just 25 KW), the focus is on power generation from solar photovoltaic, solar thermal, solar-wind hybrid systems. An emphasis is also on the increased use of solar applications in the domestic and industrial sector and commercial roof top spaces.

As per GEDA’s policy on capacity, the

minimum project capacity of a solar power generation in case of Solar Photovoltaic (SPV) shall be 05 KW each and solar thermal would be 100 litres per day. The lower limit of non-solar power plants would be 05 KW.

The government of Goa is installing at least 50 to 75 thermal solar water heating plants every month in the state. The aim is to produce hot water of 1 million capacity through solar heating by 2020. Most of it would be used for the tourism industry, including big hotels. Currently though, 4,000 installations have been set up all over the state, including in domestic and medium scale hotels. This has not only helped in reducing the power requirement of the state, but the hotels are also able to provide hot water round-the-clock.

As far as solar photovoltaic is concerned, the government is looking at establishing roof top installations all over Goa. Connected to the grid, this would be a kind of distributive networking wherein locally, one can use roof tops of hostels, colleges, universities which have very a big campus and government offices etc. For a small State like Goa, the emphasis is now on shifting from power storage in batteries to grid linking.

ll wind farmsDr Pathak feels that in the current scenario, it is difficult to envisage the exact capacity of wind power potential as compared to solar. GEDA is however planning to set up a number of wind farms of 25 KW capacity along the coastal belt. “There is a need to design the wind mill farm capacity in a manner which would suit the

India’s tourist hub is striving to make optimum use of renewable energy so as to make the state self-reliant in power. Dr Pramod V Pathak, member secretary of the Goa Energy Development Agency (GEDA), speaks to Richa Kapoor about the growth of the RE sector in the state, the hurdles faced and the future course of action

StAtE FoCuS


topography,” he adds. As of now, three kinds of wind mill designs

are being explored. Prior to setting up the wind mills, a study of the local wind energy potential will be undertaken.

ll using open spacesIt has been found that in Goa, there are a lot of open spaces around the abandoned mines and it is unlikely that anything would come up there in the coming years. In the vast stretches of land, there lies a huge potential of setting up wind mills and solar panels. Combining wind and solar will help generate 10 MW of power in the abandoned mine areas. Developing this area will help in meeting a substantial amount of electrical power and power purchase from other states is also likely to reduce considerably.

ll opTing for biomass Any green land has immense potential for biomass. Since Goa meets this requirement, it can be used to make compacted biomass briquettes. It is known that biomass pallets/briquettes are eco-friendly, economical and non-polluting and can be used in the place of lignite, coal or wood in industrial boilers.

Moreover, they do not add to the carbon foot prints, are easy to transport, economically viable, offer a business potential and have the

capacity to provide jobs. In Goa, since the briquetting industry can operate throughout the year, GEDA is envisaging the idea of promoting biomass usage and simultaneously promote gasification. This is a long term process, which cannot be completed in just two to three years. Therefore, the strategy needs to be planned over a period of five years. Firstly, the aim is to promote pallet/briquette manufacture and after substantial quantity of briquetting is assured, projects on biomass gasification will be planned.

ll developing skilled labourIn order to overcome the problem of maintenance of the PV, wind and hybrid systems, it was felt that there is a need for skilled and trained technicians, such as renewable energy technicians or solar power technicians. The aim would be to orient them in all kinds of renewable agency resources so that they could maintain different types of set-ups. For this, GEDA has begun coordinating with the Industrial Training Institutes (ITI) and technical HSSC Board where courses are offered at the ninth to twelfth level so that one is able to acquire technical expertise at the earliest.

GEDA is also closely working with these two institutions and developing a

course for the ITI as well as for the HSSC Board. After the finalisation of the course and its execution, wherever new kind of projects come up, the trained workforce will be employed for handling equipments, maintenance and repairs.

ll supporT of mnreRenewable projects in the state are being supported by the Ministry of New and Renewable Energy (MNRE). This includes all 20 solar wind hybrid projects in Goa and the Small Area Development Programme (SADP). In the Raj Bhavan, four projects have been commissioned. At the Governor’s residence, the gardens are partially watered by solar pumps and solar power also helps light it up.

ll sTeps To aTTracT invesTorsGEDA also has plans to launch 10 more projects in the range of 100 KW to 1 MW. These will be located at vantage points and investors will need to come, install the equipments and feed power to the grid. As is the practice in other states, they will enter into an agreement with the state DISCOMs for long term co-operation. It is believed that for the next 20 years, the RE sector will have a potential growth of four to seven per cent annually.

GoA


Produced from anaerobic digestion of organic feedstock, biogas has assumed relevance as a potential vehicle fuel. In fact, upgraded biogas

is a highly versatile fuel which can be used for transport. These were also the factors that are likely to have helped in the creation of the biogas fuelled passenger car.

Developed by the team under Prof Virendra Kumar Vijay of Indian Institute of Technology (IIT) Delhi and supported by the Ministry of New and Renewable Energy (MNRE), this vehicle is an environment friendly one since emissions from the vehicle are far less than natural gas (CNG). The team successfully tested the compressed biogas on a regular CNG and the car covered a distance of 15,000 kilometres. Also, the innovation is considered a landmark since the existing CNG vehicles do not have to be modified to be compatible with the CBG.

Meanwhile, the water-scrubbing-based biogas upgradation and compression/bottling system is being patented by IIT Delhi, for enhancing the utility of biogas application in vehicles. Elaborating, Prof Kumar said, “It consists of a water scrubbing column and a methane-enriched biogas compression system. The commercial viability of biogas purification and bottling plant can be attained above 500m3/d capacity. Waste required for above capacity is around 20 ton/d of cattle

dung or 10 ton/d of pig, poultry or food waste. This plant produces approximately 200 Kg/d CBG & 3 ton/d of semi-dried manure. Its payback period ranges from one year to four years, depending upon the plant’s capacity, the cost of raw material for gas production and the selling price of CBG.”

With regards to mileage, there is a minor difference in the vehicle fuelled with Compressed Biogas (CBG) (24.11km/kg) as compared to CNG (24.38km/kg).

Highlighting the use of biogas for transportation, the Natural & Biogas Vehicle association (NGVA) unravelled statistics

The 12th Auto Expo 2014 was witness to India’s first biogas-fuelled passenger car, paving the way for sustainable transport. Richa Kapoor details as to what went into the making of this green vehicle, under the guidance of Prof Virendra Kumar Vijay of IIT Delhi, and his team, along with the Biogas Development and Training Centre

Driving on biogas!

mentioning the number of vehicles which run on natural gas in different parts of the world. l Worldwide, 12,000 vehicles are being fuelled with upgraded biogas and the number is likely to increase to 70,000. l In Europe, Sweden reports that more than half of the gas used in its 40,029 natural gas vehicles is biogas.l Germany and Austria have established targets of 20 per cent biogas in natural gas vehicle fuel. l In the United States, biogas vehicle activities have been on a smaller scale.As illustrated below, majority of natural gas vehicles are in developing countries.

Country no. of natural Gas Vehicles

% All nGVS in world

Biomethane share in nGV market (%)

Iceland 255 0.00 100

Norway 762 0.01 10.0

Sweden 40,029 0.28 59.1

Switzerland 10,228 0.07 21

Germany 96,215 0.66 6

France 13,500 0.09 3

Finland 985 0.01 3

global perspecTive

NGVs are being run on natural gas due to the availability of the natural gas grid in most areas. In these countries biogas production, upgrading and bottling is at an early stage and a small scale, hence grid injection or bottling of upgraded biogas is non-existent.

Source: Worldwide NGV Statistics

InnoVAtIon


assumed that 50 per cent of the total upgraded biogas contributes towards the transport sector. According to the Indian Petroleum and Natural Gas Statistics 2011-2012, this upgraded and bottled biogas can meet almost 43.4 per cent of the total transport sector’s demand.

After testing the biogas fuelled car at IIT Delhi, a regular CNG car was tested on CBG for more than 15,000km and it was noted that existing CNG vehicles need not undergo any modifications to be compatible to CBG as a fuel. The fuel economy and mass emission of the vehicle fuelled with the CBG with 93 per cent CH4 and CNG were evaluated. Emissions such as CO, HC and NOx are found to be marginally higher with the CNG than CBG with emission norms meet to the BS IV Norms. There is no significant change in mileage of the vehicle fuelled with the CBG (24.11 km/kg) as compared to CNG (24.38 km/kg).

The scope of utilising biomethane as a vehicular fuel in India can be gauged by the growth of CNG infrastructure in India. Since the means of conversion for using biogas is the same as that for natural gas, upgraded biogas can be easily substituted in the existing natural gas vehicles and infrastructure currently available in the country. Despite this, the response of the passenger car industry has been slow as it is largely driven by after-market conversion. Moreover, original equipment manufacturers (OEMs) have shown little interest as there is no regulatory mandate for cars.

On the positive side though, the auto industry has begun to show an interest in product diversification and majors including Toyota, Tata, Maruti Udyog Ltd and General Motors have announced more CNG models. This has been triggered largely by a growing consumer interest in CNG cars and the spurt in after-market conversion which followed the recent hike in petrol and diesel prices.

On how the biogas fuel would change the landscape of transportation in India, Prof Vijay explained, “It is more relevant to places where a large quantity of organic waste is available for biogas generation, such as STPs, sugar mills, distilleries, dairy, goshalas and entrepreneurs who are managing MSW, gobar bank etc. It is proposed that rural vehicles, tractors and cars run on it. There is a lot of potential for biogas in India since it can replace more than 30 per cent of the needs, but in a decentralised way.”

ll componenTs of biogasNormally, biogas consists of 50 to 70 per

cent methane, 30 to 45 per cent carbon dioxide, traces of water vapour and hydrogen sulphide (H2S) and the composition varies according to the feed material used. With a heating value of 20 to 24 MJ, the presence of methane renders biogas combustible, while carbon dioxide, besides being non-combustible, prevents its compressibility, thereby making it difficult to store in containers.

Therefore, raw biogas has to be upgraded to natural gas quality in order to be used in vehicles that are designed to use the latter. This means carbon dioxide (CO2), hydrogen sulphide (H2S), ammonia, particles and water (and sometimes other trace compounds) have to be removed so that the product gas for vehicle use has a methane content of more than 90 per cent by volume. This upgraded gas is generally referred to as bio-methane. This upgraded gas or bio-methane is bottled at a discharge pressure of 200 bar and is termed as Compressed Biogas (CBG). Further, using a CNG dispensing cable

and a nozzle to NZS standards, this CBG can be used for filling gas into the vehicles. The new biogas standard BIS:16087 (2013) has been developed by the Bureau of Indian Standards (BIS) for usage in vehicles.

On being asked as to how he sees the development of biogas-fuelled passenger car by the mainstream auto industry, Prof Vijay referred to the guidelines of the BIS under which biogas (bio-methane) may also be used for applications such as stationary engines or power generators. With regard to the supply of bio-methane, biogas (bio-methane) shall be stored and transported through cylinders which adhere to IS 7285. For automotive use, it shall be filled in cylinders conforming to IS 15490. The biogas would be transported through piped network or injected into the existing system of pipelines according to regulatory requirements.

ll poTenTial of biogasThe total potential of biogas from all sources has been estimated to be 48,382 Million m3/year. When this amount is upgraded, it can be

CLEAn MoBILIty


CLEAn tECHnoLoGy

VRooMInGAHEADAccording to figures released by the

Indian Planning Commission, energy consumption in India is increasing rapidly---it increased

by 64 per cent from 2001-02 to 2011-12 and is projected to grow at an additional 72 per cent by 2021-22. In such a scenario, it is not surprising that renewable energy is finding a heightened amount of takers in the country, which includes a number of companies, most of them in the automobile industry.

Those within this industry believe that companies opt for renewable energy sources to reduce energy cost and as part of its commitment towards environment. Sai Ganesh R, Assistant Manager, External Affairs, Hyundai Motor India states, “Renewable

energy sources like solar, wind power, hydro electrical power can be harnessed without release of pollutants and do not harm the environment or add to global warming. The increased use of renewable energy reduces the cost of utilities which in turn will help in controlling the cost of the end product and services. Also, increased usage will not only help in bringing down the cost but will also bring down import costs of crude oil and coal.”

The fact that renewable energy is cost-effective has also proved to be an advantage. “In the past, the technology was expensive, but over the years, due to improved technology, the price between renewable and non- renewable energy is narrowing and hence making it more viable,” he adds.

As a result, most automobile companies in India are now either opting for energy efficient or renewable energy practices or are foraying into the industry themselves. One of the most eminent one to make an inroad into the solar sphere is Mahindra. Since the company was founded in 2010, over 85 MW of rooftop and utility scale solar energy projects have been completed in India. Explaining the move, Parag Shah, Managing Partner, Mahindra Partners, elaborates, “Mahindra had been tracking the cleantech sector for a few years before entering the solar energy market industry. We believe that solar has a very high growth potential in the country due to the high solar insolation and favourable solar policies.”

Some of its other projects include plans to


With most industries in the country now graduating to energy efficient measures and adopting renewable energy in one way or another, the automobile sector has not been oblivious to the change either. Sapna Gopal tracks some of the companies that have switched gears and just why they are increasingly doing so

Auto companies in India are now either opting for energy efficient measures or renewable energy, or foraying into the industry themselves

build a 200 MW of utility scale solar PV plants over the next 2 to 3 years. Shah believes that the rooftop market in India is poised to grow at a much faster pace to match up the trends we have seen across the world.

Apart from solar and electric mobility, the company has intends to venture into wind as well. Shah reveals, “Our innovative DG-PV

hybrid solution (patent-pending technology) will be a game-changer for the industrial & commercial sectors that currently rely on expensive diesel for their power-intensive operations. We are currently solarising 1,000 telecom towers for leading telecom companies and will continue to grab a significant share of this market with our superior product & service

offering for this segment. We will continue to invest in technology & business innovations to maintain thought leadership in the Indian solar market across utility scale, rooftop and telecom tower segments.”

Additionally, Hyundai Motor India has also installed energy efficient light fittings, replaced conventional exhaust mechanisms with powerless wind ventilators, installed translucent sheets in walls and roofs to optimise natural light, installed solar heaters, solar street lights and high power factor is maintained to reduce overall energy consumption.

Yet another company, Maruti Suzuki India Pvt Ltd, has begun to take its initial steps in the RE sector. Currently, it is setting up infrastructure for a 1 MW solar unit at its Manesar facility. The installation began four months back and is likely to be completed in a couple of months, informs a company spokesperson, Maruti Suzuki India Pvt Ltd. Some of the main reasons to choose solar was that it is in ample supply, augments a fraction of the energy requirement and cars which are in the stockyard, are shielded, the spokesperson adds.

This apart, there are various energy-efficient measures being undertaken as well. According to Maruti Suzuki India’s sustainability report, (2012-2013), the company has taken several initiatives to conserve energy in its Gurgaon and Manesar facilities. These include installation of an energy efficient pumping system for the reverse osmosis plant at Gurgaon, installation of energy-efficient motors, air washers and boilers in Gurgaon and Manesar facilities, use of energy-efficient transformers for new shops, replacement of conventional tube lights with energy efficient lights in vehicle assembly shops and the Gurgaon plant, replacement of standard blades of cooling tower fans with aerodynamic energy-efficient fibre reinforced plastic blades. Moreover, new car models being launched by the company are light weight, fuel efficient and have lower emissions.

Apart from the automobile companies, those in the real estate and IT sphere are taking to the RE sector as well. Siddharth Mayur, whose company Mayur REnergy Solutions Pvt Ltd, is into clean, green, and renewable solutions for companies in India, feels that while large companies are into renewable energy practices, the mid-size ones are not so serious about it currently.


Auto CoMPAnIES

Another opportunity is in the area of financing at an affordable cost.”

Moreover, France has also expressed an eagerness to invest in India’s renewable energy sector. The Ambassador of France to India Francois Richier, was quoted as saying that his country is especially keen on partnering with Indian companies in solar energy and France will also consider financial instruments to encourage solar energy. Reports state that French companies have invested over $18 billion in India, an amount about equal to that of their investments in China.

Then, there was news of India and the United Arab Emirates (UAE) signing an agreement to boost cooperation in renewable energy, particularly in the areas of solar and wind power. The two countries are believed to have signed a deal in forming a working group for researches, exchange of man and technical power and available information.

“Real estate developers do use solar energy extensively, given the mandatory norms by the government, but they opt for the cheapest equipment. Then, there are the IT companies, who are serious about it, but when it comes to the capital proposal, queries such as why so much needs to be spent on say solar, are raised. They would rather invest in energy efficiency.”

“While the government is one of our largest customers, the lowest bidder ends up doing a sub-standard job. Also, as of now, finance is still a key issue, as far as adopting renewable energy is concerned,” he adds.

Those within the industry believe that the government can introduce several initiatives to encourage the use of renewable energy. As of now, the existing subsidy for solar power is I KW to 100 KW. “This slab can be increased up to 1000 KW/2000KW. The depreciation as per income tax act can be raised to 100 per cent instead of the current 80 per cent depreciation in the first year. Interest on bank loans can be reduced for initial capital investment. Also, duty exemptions (Like ED, VAT) for renewable energy and energy efficient products could be provided. These measures will provide an impetus to this industry,” stresses Ganesh.

ll global inTeresTEven as Indian companies make their moves to establish themselves in the RE sphere, there seems to be a growing interest from the international market as well. Very recently, a renewable energy delegation from Japan visited India to explore opportunities for partnership with Indian companies in the renewable energy sector. Smart grids, waste to energy and storage solutions clearly emerged as areas where both Japan and India could explore partnerships.

At the ‘Japan India Public Private Round Table on Renewable Energy’ organised by the Confederation of Indian Industry (CII) in partnership with the Ministry of New & Renewable Energy (MNRE) under the aegis of Japan-India Energy Dialogue in New Delhi, Dr Satish B Agnihotri, Secretary, MNRE, Government of India said, “Storage solutions is amongst the key renewable energy technologies that need to be evaluated. Within storage solutions, it is important to look at hybridisation, given the intermittent nature of solar and wind power. Hybridisation increases the combined capacity utilization factor thereby improving the financial viability. India also needs to leverage the Japanese experience in smart grid deployment and efficient appliances.”

Stressing on the importance of technology, Takeshi Yagi, Ambassador of Japan, said, “Expansion of technology innovation is extremely important in the renewable energy field. With both Japan and India witnessing a sharp increase in energy imports, renewable energy is a key component of the energy mix. There is a need to harness the huge potential of renewable energy through the development of new technologies and their application to society. It is also important to utilize the private sector’s know how in the areas of waste to energy, storage batteries and smart grids.”

Highlighting key areas that could be of interest for Indo-Japanese collaboration, Alok Srivastava, Joint Secretary, MNRE, Government of India said, “New areas of co-operation between India and Japan could be in developing cutting edge technologies.

those within the industry believe that the government can introduce several initiatives to encourage the use of renewable energy


CLEAn tECHnoLoGy | AutO COMPANIES

R ecently, automotive original equipment manufacturers (“OEMs”) have begun to invest in captive alternative

energy projects to autonomously electrify their facilities and power their operations. Both in India and abroad, OEMs have seen the economic imperative that solar power today presents – and as a subsidiary of Mahindra & Mahindra, Mahindra EPC (“MEPC”) understands this trend well.

In September of 2013, MEPC successfully commissioned two solar plants for a consortium of automotive component manufacturers in Tamil Nadu, which included a 2.12 MW plant for M.M. Forgings and a 1.06 MW plant for Super Auto Forge Pvt. Ltd. These two companies, along with I.M. Gears, the Rane Group, and Autotech Industries (India) Pvt., Ltd., comprise a consortium that has seen the dividends of captive solar and intends to further develop cost-effective solar assets over the coming years.

From a domestic perspective, the thesis behind captive solar is clear. India has abundant renewable energy resources and its territory lies on the world’s most favourable solar radiation belt. In addition, the country’s power situation is in need of repair; India has a peak power deficit that, though recently improved, remains stubbornly around 4.2 per cent. Ultimately, India’s power scenario has taken a considerable economic toll: according to a recent report from FICCI,

Auto companies are increasingly opting to install solar PV systems that will help manage their energy requirements in a sustainable manner, writes Basant Jain

Automotive oEMs & their investments in solar

shortages resulted in losses of more than ` 4 lakh crore (US $68 billion) in 2012 alone. Accordingly, as outages hurt output and high energy tariffs squeeze margins, firms have become increasingly focused on decoupling themselves from a reliance on the grid.

In order to maintain operations in light of load shedding and grid outages, many firms have invested in diesel generators (“DGs”), which deliver a consistent load – though at a higher levelised cost of energy (“LCOE”) than the grid, ranging from

` 12/kWh to ` 18 kWh (EUR 0.14/kWh to EUR 0.22/kWh) versus the national average industrial tariff of ` 9/kWh. Given the recent deregulation of diesel prices, the price of diesel is rising quickly and thus driving the LCOE of DG power ever higher.

However, such a trade-off between a high LCOE and a consistent source of power is today unnecessary. Given that the LCOE of megawatt-scale solar power is currently around ` 8/kWh (EUR 0.09/kWh), solar tariffs are competitive with


oPInIon | ENERGy AutONOMy

(Domestically, this mandate has also been adopted by leading Indian IT players, which are increasingly turning to captive solar systems to power their operations as well.) Accordingly, for reasons both economic and environmental, firms are keen to expand their renewable footprints while strengthening their bottom lines).

Solar investments by automotive OEMs, industrials, and power-hungry technology firms alike have helped promote clean, affordable, and secure sources of power to bolster output and mitigate exposure to the volatility of national electricity grids. By harnessing their often significant rooftop spaces (and even their car park areas), many such companies are now opting to install solar PV systems that will help manage their energy requirements in a safe and sustainable manner.

Between its dividends to energy security, peak demand constraints, power pricing, and the environment, solar will disrupt global power scenarios in the twenty-first century. Over the coming years, as PV technologies continue to charge toward grid parity, MEPC expects this trend to continue – and we look forward to helping our clients achieve energy autonomy both in India and globally.

Basant Jain is CEO, Mahindra EPC

(The views expressed by the author are personal)

industrial grid electricity tariffs – and certainly that of diesel generated power alone. In addition, there are various federal- and state-level policies that have further promoted the viability of solar in the Indian context. For example, generous accelerated depreciation benefits provided to solar projects have helped make such investments more attractive for OEMs and other industrial clients. Furthermore, when solar is hybridised – that is, paired with DG sets to mitigate diesel consumption on sunny days – solar DG hybrid solutions are able to lower captive power LCOEs and provide firms with reliable power. At Mahindra EPC, we strongly believe that solar DG hybrid technologies will be key to solving the power situation for many industries in remote areas – and we have championed our own patent-pending solar DG hybrid controller to help our clients do exactly that.

Internationally, the trend toward

captive solar usage is evident as well. In 2012, General Motors invested in a 300 kW solar PV system on its factory in Joinville, Brazil, which powers the plant’s lighting on manufacturing floors and administrative offices - an amount equal to the energy consumption of 285 Brazilian homes – and avoids 10 tonnes of CO2 emissions annually. In 2013, Volkswagen USA developed a 9.5 MW solar photovoltaic (“PV”) plant to power its manufacturing facility in Chattanooga, Tennessee, which remains the largest solar park in the state. Moreover, such captive solar projects are increasingly found in the sectors outside of heavy industry as well. For instance, several marquee technology firms, such as Google and Apple, have pledged to shift their 100 per cent of their power consumption to that which is renewable-generated – and they have collectively invested millions of dollars toward developing and acquiring renewable facilities to fulfill this goal.

Solar investments by automotive oEMs, industrials, and power-hungry technology firms alike have helped promote clean, affordable, and secure sources of power to bolster output and mitigate exposure to the volatility of national electricity grids

oPInIon | ENERGy AutONOMy


As India grows its energy and water infrastructure, we need to be mindful of the nexus of energy and water. To ensure the

sustainable provision of both, there needs to be greater awareness of energy and water’s inextricable relationship.

Water services are energy intensive and energy generation is water intensive. Water required in traditional forms of generation is mainly for cooling. Typically, 2,650 litres of water per MWh are needed for coal fired generation, and 2,271 litres per MWh for natural gas.

Wind and solar photovoltaic (PV) generation, India’s most common

renewables, have lower water requirements. Even with solar PV, however, water consumption needs to be considered. To operate efficiently, solar panels need to be clean. For large installations, this can require a lot of water. As a Ministry of New and Renewable Energy report noted, since solar PV installations are often in arid or semi-arid areas, this requirement may be a concern for communities with which they share a water source.

Energy utilities can use water recycling to tackle arid conditions. For example, in Bundamba - Queensland, Australia, long-term drought affected water availability for the Swanbank coal and gas-fired power

Meeting the government’s renewable targets necessitates an ability to combine expertise in energy and water infrastructure delivery, writes G. Sathiamoorthy

Renewables drive highlights energy, water nexus

stations. Joint-venture partners and Black & Veatch, designed and constructed an advanced water treatment plant to recycle municipal effluent, boosting supplies available for power station cooling. The plant was one of three which, together, produce 232 million litres of water per day.

Water utilities use most energy treating wastewater and transferring clean and wastewater. A study we undertook for UK Water Industry Research showed that on an average, water services account for 1 to 3 per cent of national energy consumption in Europe and 3 to 4 per cent in the USA.

In India, as elsewhere, the energy hungry nature of water and wastewater treatment can be exacerbated by inefficient, aging infrastructure. Reporting upon the Asian Development Bank’s recent US$400 million loan to improve sanitation in Kolkata, Business Standard noted that some of the city’s wastewater infrastructure is up to 90-years-old, and uses far more electricity than modern equipment. Use of energy efficient technology at the new treatment


oPInIon | ENERGy EFFICIENCy

in its 12th Five Year Plan, for the period ending 2017, has said an investment of US$26.5 billion is required to provide safe water to all Indians. Investment on this scale, especially where infrastructure is being created for the first time, means India has an opportunity to leapfrog countries with more mature asset bases and embrace more energy efficient technology and practices.

To take this to the next level is to consider the potential of water and wastewater assets as renewable energy sources. This, viewed in the context of the energy/water nexus - and coupled with energy efficient technology’s ability to cut water utilities’ energy demands - means the water sector has a potentially meaningful role in India’s energy landscape.

Domestic wastewater streams are excellent sources of renewable energy. Biogas produced during wastewater treatment can be processed to fuel combined heat and power (CHP) engines. These can help meet the treatment works’ energy requirements, reducing demand upon power companies.

The Ahmedabad Municipal Corporation recently approved a proposal to sell gas generated at Pirana wastewater treatment works (WwTW). Previously, the gas was flared off as a waste product. The recently

plants is one of the project’s goals.To give a global context, according to

Black & Veatch’s 2013 Strategic Directions in the US Water Industry report, roughly 90 per cent of respondents indicated their organisations are implementing or are interested in launching energy efficiency programmes.

Recognising which activities use most energy is important when seeking to cut consumption. Figure 1 shows energy use in the UK water sector. The data reflects water companies’ expenditure on energy for various elements of the water cycle.

Figure 1 aligns closely with energy consumption data across the world, which shows that pumping represents upwards of 80 per cent of drinking water energy demand and at least 30 per cent for wastewater. For wastewater services, the major energy demand is for aeration: up to 60 per cent, or more, of consumption. It also shows potential energy savings for each element of the cycle through interventions such as more efficient pumping and aeration equipment or management. The graph suggests activities with the greatest potential as sources of renewable energy.

The affordability of energy will drive efficiency improvements in the future. For asset planners, the design priorities should be linked not with current energy prices, but with estimates of future energy costs. An asset with a 50-year life should be assessed against energy cost estimates for, say, 25 years ahead. Capital costs are less than 10 per cent and energy costs are already more than 80 per cent of the whole-life cost of plant,

with higher energy costs this balance should be a major consideration for investment.

The nexus of water and energy means reducing the demands water services place upon the power generation sector, though energy efficiency measures can, in turn, have the potential to cut the power sector’s water consumption.

India is on the threshold of major investment in its water and wastewater infrastructure. Ernst & Young has cited a figure of around US$130 billion between 2011 and 2030. The Planning Commission,

Asian Development Bank funded sanitation improvements in Kolkata will support the installation of energy efficient treatment technology

Phot

o: B

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Gan

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A hydroturbine at Glencorse WTW, Scotland, generates 25 per cent of the works’ electricity


oPInIon

them the Scottish capital, Edinburgh’s, Glencorse water treatment works. This £130 million EPC project included the installation of a hydro turbine capable of meeting 25 per cent of the works’ electricity needs.

The landbank available to some water utilities has also allowed them to site small-scale solar PV and wind generation to augment their power needs, and sometimes export to other users. We have undertaken a study for the UK Environment Agency to assess the viability of renewable generation, including solar PV and wind, at some of their sites. On a much greater scale, Black & Veatch was engaged by the Regulatory Assistance Project, Climate Works Foundation and Shakti Foundation to assess India’s solar and wind resources. We have also supported solar generation schemes in Charanka, Gujarat and Jodhpur, Rajasthan.

Renewable generation currently delivers about 6 per cent of India’s energy. The government has proposed an increase of 12 to 15 per cent of the overall energy mix by 2020. The nexus of water and energy means traditional boundaries between the sectors, especially in the context of renewables, can become blurred. As a result, achieving the government’s targets will increasingly require companies expert in delivering both water and energy projects, and successfully combining insights from both.

inaugurated Kondli WwTW, built for the Delhi Jal Board, has the reported ability to generate 2 MW of power.

The advanced sewage sludge digestion techniques required to maximise the benefits of biogas generation on a large scale have been used extensively in the UK.

Hydro is another area in which water infrastructure can be used for the generation of renewable energy. Although hydro generation from water assets will be small-scale, it is potentially interesting against the backdrop of the government’s support for this source of power. Plans to make it mandatory for power distribution utilities to purchase a fixed amount of hydro power have been mooted. Similar

schemes already exist for other forms of renewable generation. The sixth task force on hydel power development, meanwhile, recently recommended that hydro projects be exempted from tariff-based international competitive bidding until 2022.

With water and wastewater treatment infrastructure, the opportunity to install hydro turbines exists at any point in the hydraulic gradient where energy has to be dissipated. For example, at the head of a treatment process; within distribution systems for pressure management; and at the end of effluent discharge pipes.

Water treatment projects around the world that encompass a hydro generation component include those in Scotland and Wales; among

6%

12%

67%

21%

48% 52%

54%

46%

24%

32%

10%28%

Abstraction & treatmentPumping gains: 10 - 20% Renewables: Turbines

water DistributionPumping gains: 5 - 10% Renewables: PM turbines

SeweragePumping gains: 5 - 10% Renewables: Turbines

Sewage treatmentPumping gains: 5 - 10% Aeration gains; up to 50%

Sludge treatment & DisposalPumping gains: 5 - 10% Renewables - CHP

Energy used in the uK water cycle, based upon data from water companies’ 2009 annual return to industry regulator ofwat (Energy Efficiency in the water Industry: a Compendium of Best Practice and Case Studies; GwRC)

the affordability of energy will drive efficiency improvements in the future. For asset planners, the design priorities should be linked not with current energy prices, but with estimates of future energy costs

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EnERGy EFFICIEnCy


Undoubtedly, the power sector plays a key role in the development of a nation and is considered a primary input to

raise the standard of living. At the same time though, it is essential to combine industrial development with environmental safety so as preserve a stable ecosystem for future generations. Thus, industrial development and environmental safety need to be balanced to obtain prolific results.

Cost to performance considerations and shorter delivery expectations make every small hydro project a unique endeavour. Technical ingenuity and far-sighted project management are also required to balance the constraints of excavation, aid in speedy project implementation, environmental legislation, discharge and head variations etc. In this regard, the management of Nagarjuna Hydro has not only gained outstanding project experience, but is also adept in facing all these challenges.

Located in Hassan district, Karnataka, the Kadamane Mini Hydel Scheme-2 (KMHS-2) has been constructed across Balekallu Hole, a tributary of river Netravathi, which flows into the Arabian Sea near Mangalore. It generates clean energy by using seasonal water diversion of the Balekallu Hole. Since the developer has given utmost priority to ecology and environmental safety, environment impact assessment studies

surge shaft and the power house, a number of alignments were studied with multiple selections of weir and surge locations for optimum utilisation of the catchment area as well as to preserve the environment. While finalising the tunnel’s alignment, an extensive geological study of the strata was conducted. A core sampling was carried out as well, throughout the length, considering 3 to 4 alignments.

When the project was being designed with engineering consultants, the developer took sufficient environmental measures. In order to minimise land acquisition, meticulous planning along with detailed geological studies and survey were carried out. Thus, the project was strategically designed and executed.

ll challenges faced Despite the care taken whilst designing the project, there were other challenges to be met. During the tunnel excavation of 1.6 km length of 3.15 meters diameter near the surge shaft, the civil team encountered soft strata to a length of 100 meters. The company had to be extremely careful in providing iron and concrete support to create a strong foundation for stability and reliability of HRT. Though this did slow down the work, nevertheless, the company put in tremendous effort through supplementary manpower and executed the project within the stipulated timeline successfully.

As we enter the power plant of Kadamane Mini Hydel Scheme-2, there is a huge signage which speaks about the company’s environmental commitment. The project’s vision is all about the principle of inter-generational equity and the company’s endeavour to protect and preserve the environment. Energy Next details this unique initiative

BALAnCInG EnVIRonMEnt, EnERGy

have been carried out through reputed agencies and it has been established that the project does not have any impact on the existing socio-economic conditions of the area. Encouragingly, the project has improved the socio-economic development of the local taluk by providing the much needed stability in terms of electricity generation and providing opportunities for employment.

ll feaTures The plant comprises a diversion weir, a 1526 meter head race tunnel, surge shaft, 400 meter steel buried penstock, tailrace pool and a tail channel, apart from other required electrical systems, control and instrumentation, civil and structural facilities.

Two horizontal Francis turbines from Andritz Hydro Private Limited have been installed at the plant and these are directly linked with the horizontal brushless synchronous generators supplied by WEG, Brazil. The company has also signed a Power Purchase Agreement with KPTCL and the clean power generated by the project is supplied to Karnataka Power Transmission Corporation Limited (KPTCL) Sakaleshpura sub-station, through a 22 km long 11/66 KV double circuit transmission line.

ll designBefore finalising the present location of the weir,

Srinivas. M Director, Nagarjuna Hydro Energy Pvt Ltd


CASE StuDy

maintaining high standards of work and business ethics. Also, the verification of ISO standards is under process for quality management, environment and safety management.

The KMHS-2 project offers several benefits, both at the regional and national levels. While the major advantage has been the generation of clean energy, the project also supplies clean power to 76,000 houses in Karnataka and contributes to the social well-being of locals by providing employment and business opportunities to regional stakeholders such as bankers, consultants, suppliers, manufacturers and contractors.

Demonstrating its commitment towards a clear environmental responsibility, so far, the project has planted and nurtured over 2,500 tress as part of its mission to conserve ecology and the environment. The company strictly abides by all the environmental statues of the land and the project continuously promotes ecological awareness amongst all the stakeholders, partners and employees.

In conclusion, the 15 MW Kadamane Mini Hydel Scheme – 2 Project, developed by Nagarjuna Hydro Energy Private Limited, is surely a unique paradigm for other small hydro power projects in terms of following the best practices of project management, perfectly balancing industrial development and environmental legislation.

Constructing a power house to the extent of 21.0 meter below the service bay level was a huge challenge for the developer and a major obstacle encountered was while dewatering the power house area during heavy rains. Further, the company had to protect slopes of the power house with adequate support through a solid concrete foundation, since it was located next to the stream. It also had to strengthen KPTCL’s existing line for (a length of) 37 kilometers in order to evacuate 15 MW of KMHS-2 power.

Moreover, it needed to strengthen the transmission line network between two district towns. Since this was the only feeder line between the two major towns, work had to be executed by taking line clearances on this feeder line and yet ensure that the line is returned for power evacuation on the same day by 4 pm. If the line works were not completed or not returned for any reason, the entire town would go without power for 24 hours. The challenge was to execute the given work on the given day and return power to nearby towns, as line clearances were available for only 2 to 3 days in a week.

Around 200 workers were deployed for the task and all the obstacles were overcome successfully through the management’s relentless, focused and mercenary approach to the problems encountered. The project is now

one of the first of its kind to be executed by a private developer in Karnataka on a 66 KV grid.

ll commissioning The project, funded by IREDA and L&T Infrastructure Finance, successfully began its commercial operations on July 1, 2010, and since then, has been generating clean energy. It not only fulfills the requirement of a green energy project, but also contributes to the reduction of 46,750 tonnes of carbon dioxide, equivalent to tCO2e per annum. Moreover, it is registered with UNFCCC under the Clean Development Mechanism (CDM) in July 2011.

Since the company gives utmost importance to train its personnel not just at the plant level, but externally too, well educated and experienced staff maintains the equipment thoroughly. The power plant is automated and equipped with all the safety systems and overall, it has been performing well except for 2012-13 wherein the generation was not up to the desired level due to a 23 per cent deficit rainfall in Karnataka. Yet, it successfully generated adequate internal resources to service its debt and other obligations. The operations and maintenance practices followed by Nagarjuna Hydro also played a key role in ensuring good performance during the monsoon period.

To its credit, the company has been


KADAMAnE MInI HyDEL SCHEME

In the wake of dwindling fossil fuel reserves and concerns of climate change, a shift has been witnessed across the globe, with people

embarking upon energy efficient measures, so as to minimise energy consumption in their daily lives. This has led to a surge in the demand for lights which are energy efficient. Moreover, the use of LED technology in the lighting sector has helped save power to a large extent. Here is a look at some of the LED lights currently available in the Indian market.

Efficient Lighting>> The white bulb consumes 7W

>> With a lumen output of 520Im, it gives out bright light efficiently

>> Safety performance is in accordance with specific standards

>> The warranty of the product is 1 year

>> It costs around ` 500

>> This bulb consumes 50 per cent less energy than CFL

>> The product is shockproof and vibration-proof

>> Rated lamp life is 1,500 hours

>> An extremely long life, due to LED technology

>> It costs around ` 1,000

>> Input voltage- 90-300V AC - 50 HZ

>> Delivers higher lumens per watt (lm/W), thereby saving significant amount of energy

>> High quality LED chips for enhanced colour quality rendering

>> 2 years full replacement warranty

LED CooL WHiTE BuLB-7W Moser Baer

LED BuLB- 10 WATT osraM WHiTE oPTiLED BuLB-6 W Lighto

SSK-LB-5W-D sYsKa LeD Lights

>> This white bulb is aesthetic and lightweight in design

>> With 80Lm/w, it provides compact and cool lighting option

>> It is energy efficient and comes with a long life

>> Cost of the product is around ` 700


PRoDuCt wAtCH | lED lIGhtS

(A Government of India Enterprise)Corporate Of ce: 3rd Floor, August Kranti Bhawan, Bhikaiji Cama Place, New Delhi - 110066

Telephone: +91 11 26717400-12 Fax: +91 11 26717416E-mail: [email protected] Website: www.ireda.gov.in

*Con

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pply

Why IREDA? Interest rate as low as 11.5% Maximum repayment period up to 10 years Financing up to 75% of the project cost Moratorium up to 12 months from the date of commissioning

Come to IREDA with your concept & project and get it nanced for a sunny future.

Indian Renewable Energy Development Agency Limited

IREDA_AD.indd 1 10/3/2012 8:32:18 PM

India, Argentina to collaborate in REIndia and Argentina are looking

at increasing co-operation in the renewable energy space. Minister for New and Renewable Energy,

Dr Farooq Abdullah, expressed India’s willingness to strengthen bilateral co-operation with Argentina during a meeting with Dr Antonio Bonfatti, the Governor of Santa Fe. Rosario Province.

Dr Abdullah met with a delegation headed by Dr Bonfatti in New Delhi on February 19 and discussed augmenting economic co-operation, especially in the field of renewable energy. Both leaders deliberated on the steps that need to be taken to collaborate in the field of bio–diesel.

On the occasion, Dr Abdullah apprised the visiting dignitaries about the National Policy on Biofuels which was announced in December 2009. It aims to bring about development and utilisation of indigenous feedstock for the production of biofuels. He spoke about India’s approach to biofuels as being based only on non-food feedstock to be raised on degraded or wastelands, not suitable for agriculture, or through the use of wastes and residues, thus avoiding a possible conflict of fuel and food security. He also informed the visiting delegation that the Ethanol Blended Petrol (EBP) programme is being executed by the oil marketing companies with the overall

objective of achieving an EBP of 5 per cent.On the prevailing energy situation in

India, Dr Abdullah said that the renewable energy sector was rapidly growing, while adding that the country was planning to add more than 30 GW of RE in the next five years. He spoke about the success of the wind programme as well as the reduction in the cost of solar energy through the Jawaharlal Nehru National Solar Mission (JNNSM).

ll focus on solar, says dr abdullah There is a need to focus on solar in order to abolish dependence on non-renewable forms of energy, Dr Farooq Abdullah, Union

MnRE nEwS


Dr Farooq Abdullah with Dr Antonio Bonafatti- Governor of Santa Fe, Rosario Province, Argentina

Workshop on India-Portugal Renewable Energy Cooperation

Minister for New and Renewable Energy, said at a roundtable discussion on the grid connected rooftop PV installations organised by the Solar Energy Corporation of India (SECI).

He added that if India wanted to be progressive and not a slave to petrol and coal producing countries, the focus has to be on solar energy. “In line with our national target, we are in the process of setting up diverse solar projects across the country. These include a 4,000 MW solar project close to the salt water lake in Rajasthan. In remote areas like Ladakh, transmission lines are being set up to take power generated from solar projects to various villages. We have also been running a pilot project to assess the viability of large scale grid connected rooftop solar projects and the run has been successful so far.”

The meet aimed at bringing together government authorities and industry players in order to discuss opportunities and issues related to grid connected rooftop PV installations across the country.

Dr Abdullah also applauded SECI for bringing the best minds of the solar sector in India on a common platform.

On the occasion, Vineet Mittal, president of Solar Power Developers Association (SPDA), said that with the ever increasing demand for electricity in India, the need of the hour was to ensure that both the government and private developers came together to address the issues in this sector.

ll indo-duTch Jwc on clean energyIndia and Netherlands are in the process of increasing cooperation in the renewable

energy sector and have decided to set up a joint working group (JWC) for the exchange of technical and institutional knowledge.A memorandum of understanding (MoU) was signed in New Delhi by Dr Satish Balram Agnihotri, Secretary of the Ministry of New and Renewable Energy (MNRE) and the Dutch Ambassador, Alphonsus Stoelinga. The meeting was presided over by MNRE minister, Dr Farooq Abdullah. The two countries aim to enhance collaboration in the wind, solar, biomass and smart grids sphere.

The Dutch Ambassador hoped that the MoU will enable co-operation not only at the official and governmental levels, but that leading Indian and Dutch private companies/research institutions would be benefitted by working closely.

ll workshop on india-porTugal re cooperaTionThe MNRE organised a workshop on India-Portugal renewable energy cooperation in New Delhi on February 7. The event aimed at determining specific areas of cooperation

woRKSHoP

between the two countries in the renewable energy sector.

The Portugese team of delegates and industry experts was led by Jorge Moreira da Silva, Minister of Environment, Spatial Planning and Energy. Silva, who stressed on the need to identify the focal points of collaboration between the two countries, said, “We can identify areas of partnership at different levels-- R&D, business development and regulatory planning. Both countries have a common objective, of harnessing renewable energy amid issues of climate change.”

Dr Satish Balram Agnihotri, Secretary, MNRE, stated that there were several areas of collaboration between the two countries, especially solar power and smart grid technologies. There was tremendous scope of working together not only in solar photovoltaic technology, but solar thermal as well.

Artur Trindade, Secretary of State of Energy, Portugal, applauded India’s progress in the renewable energy sector, especially solar energy. Portugal, he said, was focused on renewable development and the country had full integration of well proven policies to develop sustainability. “The discussion with India has been very fruitful. We would encourage our agencies and companies to come and invest in India’s renewable sector.”

Dr Alok Srivastava, Joint Secretary, MNRE, Tarun Kapoor, Joint Secretary, MNRE, former MNRE secretaries, V Subramanian and Deepak Gupta, Sunil Jain, CEO & ED, Hero Future Energies and Teresa Ponce de Leao were among the distinguished speakers at the workshop.


The proposed Framework Loan will be a multi-investment scheme which will bring about economic benefits to the region through the production of energy from renewable sources. This would help in the reduction of greenhouse gas emissions and other airborne pollutants. The project schemes will be identified and presented by IREDA.

The EIB will ensure that all projects are economically and financially viable, technically sound and in accordance with the Bank’s social and environmental standards and Guide to Procurement.

The aid from the EIB will strengthen the financial structure of the renewable energy and energy efficiency projects, as the development of this kind of investment requires substantial financing with long maturities, which are essential for the life of the project. The long-term loan will be reimbursed in several instalments over the next two decades.

The funding from EIB will cover up to 50 per cent of the total project cost. The financial aid is given by EIB to IREDA under the EUR

The Renewable energy and energy efficiency project in India have received the much needed boost after the European Investment

Bank (EIB) approved the line of credit (LoC) of €200 million to Indian Renewable Energy Development Agency Ltd (IREDA).

Recently the EIB loan agreement was signed by EIB Vice-President Magdalena Álvarez Arza and Chairman and Managing Director of IREDA, Debashish Majumdar in the presence of Hon’l Minister Dr. Farooq Abdullah & other Ministry Officials.

The objective of the loan is to address the twin problem of widening power deficits and mounting carbon emissions. EIB Vice-President Magdalena Álvarez emphasised that “the Framework Loan will make long-term loans available to support renewable energy and energy efficiency projects in India, a priority for the Bank’s lending activity” and highlighted “the excellent cooperation with IREDA in this operation.”

Ambassador of the European Union to India,

Dr João Cravinho, stated that the agreement would provide impetus to their relationship with India, and it would open new avenues of cooperation between the EU and India in a sector, which is of great interest for both. The private sector is the global engine of growth and the primary source of new investments and the EU is committed to encouraging such investments in India.

The agreement backs the government of India’s focus on a low carbon growth strategy for power generation in India. Development of renewable energy sources will not only help address environmental woes, it would also improve energy security and spur regional economic development.

The Framework Loan will help in strengthening the EU-India Strategic Partnership in the sphere of climate change, as well as foster development of renewable energy and the efficient use of energy. It will also help in the meeting the rising demand of energy and provide impetus to economic growth and development in India.

EIB approves €200 mln to IREDA

IREDA CoRnER


about ` 22,500 crores.The financing body has been responsible

for raising resources from various bilateral and multilateral agencies as well as from domestic sources through both taxable and tax-free bonds.

The line of credit is available to IREDA to draw in multiple currencies and with the option of fixed and floating rate of interest.

4.5 billion Energy Sustainability and Security of Supply Facility. EIB had commenced its operations in India in 1993 and it is its seventh operation. It is for the first time that EIB provide loan to IREDA.

The EIB is the long-term lending institution of the European Union (EU) and is owned by its Member States. It is responsible for providing long-term finance for sound

investment in order to contribute towards the accomplishment of EU policy goals.

On the other hand, IREDA, is the dedicated financing arm of the Ministry of New and Renewable Energy (MNRE) and has played a prominent role in the growth of renewable energy in the country.

It has cumulatively financed over 2,000 projects corresponding to a financial value of

Meet aims at reaching out to project developers

In order to reach out to project developers in different regions of India and to promote various sources of renewable

energy, IREDA is organising business meetings in different parts of the country. In this regard, K. Yeptho, Assistant General Manager (Technical) of the Solar Financing Group at IREDA, made a presentation in Chennai with a focus on solar power generation. He also spoke about financing terms of IREDA which are mentioned in the table.

IREDA has been actively involved in financing solar power projects in India as well as in the formulation of polices. It has financed 25 projects – under the Gujarat Policy, RPSSGP & GBI scheme of MNRE, JNNSM Phase -I Batch II, open access, as well as programme administrator and GBI disbursement for

RPSSGP projects. Additionally, it has also funded projects with a capacity from 1 to 15 MW, in various states, which includes Rajasthan, Jharkhand, Tamil Nadu, Punjab and Gujarat, among others.

As a development agency for renewable power, IREDA has always supported projects under different market models. It funded the first solar PV project under open access in Andhra Pradesh. Yeptho, in his presentation, also mentioned the perspective of the lenders, while making an assessment of the solar projects and showcased the expectations of borrowers. The concern of lenders, who are the main off-taker of power, he said, is the quality of equipment used and experience of the developers.

The business meet in Chennai was organised so as to target the southern

IREDA CoRnER

financing TermsSchemes:• Project Financing • Equipment Financing • Finance for Equipment Manufacturing• Structured Repayment Mechanism• Loan against Securitization of future cash-flows• Long Term Guarantee ( Non-Fund Product)

Lending terms: • Loan: 70% of Project Cost• Interest: 12.25 % to 13.00 % • Repayment: 10-12 Years• Moratorium: upto 12 months

region which is facing the brunt of acute power shortage. Since the region is the hub of various manufacturing units, the lack of power supply and its quality is affecting the profitability of manufacturers. In such a scenario, the development of solar power can provide a greener source of energy to the region. Moreover, Tamil Nadu is the next potential destination for solar power investors as the state has ample potential to harness this renewable source.

The meet also aimed at educating the prospective developers (captive and third party) regarding solar technology and the role of IREDA in funding these projects. Various consumer companies, solar power manufacturers and suppliers attended the workshop.


Power trading witnesses slowdown at IEX & PXIL The power trading data at the two exchanges-the Indian Energy Exchange (IEX) and the power Exchange India Limited (PXIL)-for the month of February 2014. The data presented shows the trend on every Monday across the month.


IEX wAtCH | POWER tRADING

With China aiming at 12 GW of solar photovoltaic deployment in 2014, the event will provide an opportunity for business development to various stakeholders in the industry from within the country and abroad. It is also a platform to interact and network with leading industry experts and decision makers.

Intersolar China 2014

South Africa’s first and most targeted wind energy summit aims to facilitate the smooth development of wind power market in the country. It will cover the most crucial aspects of the country’s wind energy sector and enable investors to become successful in the emerging market.

AprMar

Cape Town, South Africa

Beijing, China

wind Energy Summit South Africa

9-1025-28

www.windenergyupdate.com/south-africa

JUN

E 2

014

A premier event for the European offshore wind industry, it aims to focus on offshore wind energy market development in Europe with respect to technological enhancements, financing & insurance, grid connection & regulations and other related activities. The exhibition presents a perfect opportunity to showcase products and services to top decision-makers.

London, UK

offshore wind Conference

Apr

23-25

http://greenworldconferences.com/produkt_135_offshore_wind_conference.htm

www.intersolarchina.com/en/intersolar-china.html

An integrated event combining a regional symposium and an expo, it will feature the latest development in the renewable energy sector. Moreover, it will also provide an excellent opportunity to project developers, equipment manufacturers, policy makers and technology experts to deliberate upon various business opportunities and the future course of action.

June

Kuala Lumpur, Malaysia

Green Energy Asia10-12

www.greenenergyasia.org

The exhibition-cum-conference is one of the most comprehensive renewable energy events in India. Organised by TEDA and supported by MNRE, it will provide an opportunity for policy makers, power developers, manufacturers, financial institution, researchers and other stakeholders to chart the future course of action in the renewable sector.

June

Chennai, India

REnERGy 201412-14

www.renergyteda.com

The conference and exhibition is a premier event in the country’s renewable energy sector. Under the theme-Power, Key to India’s Future Growth, it will bring together decision makers, technical experts and professionals from leading companies involved in RE generation, transmission and distribution within the country and around the world.

May

New Delhi, India

Renewable Energy world India 20145-7

www.renewableenergyworldindia.com/ index.html#rewi_3

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Address : No. 407, 5th Floor, Pavani Plaza, Khairatabad, Hyderabad – 500 004

Publisher’s Name : R. Ramprasad


Address : No. 407, 5th Floor, Pavani Plaza, Khairatabad, Hyderabad – 500 004

Editor’s Name : Kuljit Singh Popli


Address : Block 11/1, Nehru Enclave East, Nehru Place, New Delhi - 110 019

Names and addresses of individuals who own the magazine and partners or shareholders holding more than one per cent of the total capital:

C. Sasidhar

Plot No 550/A, Road No. 92, Jubilee Hills Phase – III, Hyderabad - 500 034

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A 53 / 1, DDA SFS Flats, Saket, New Delhi - 110 017

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I, R. Ramprasad hereby declare that the particulars given above are true to the best of my knowledge and belief.

Date: 28 February 2014

(Sd/-) R. Ramprasad Publisher


EVEntS

Pioneer in setting up small hydro power project in himalaya region

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VOLUME 4 ISSUE 5

energy nextM

ARCH 2014

WindPower

Instilling life into

Other Stories

Curing power malady at hospitals! Pg35solar, wind, biomass to power goa Pg44balanCing environment, energy Pg56

achiever: Nikhil Jaisinghani helps light up livesPg 42

global voice: Adnan Z. Amin on why

the case for RE is strong Pg 32

event, round table ConFerenCe

A voice to SHP Pg 38

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Volume 4 Issue 5 March 2014 Hyderabad

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Your guide to Renewable EnergyDate of Publication: 08/03/2014

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Instilling life into Power - EnergynextInstilling life into wind power India is among the top five nations in installed wind power capacity and owing to its huge potential, it could