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In conversation: State Perspective Interview:

Varsha Joshi,
JS, MNRE on Wind Energy
Uttar Pradesh Sunil Sikka,
President, Havells India & ELCOMA
Pg 34 Pg 42 Pg 45
` 100 $ 5 € 3
www.energynext.in

Volume 5 Issue 7 May 2015 Hyderabad Your guide to Renewable Energy


RNI NO.: APENG/2010/38296 Date of Publication: 08/05/2015 Date of Posting: 10/05/2015

Soaring
High The first year of Modi government
puts India on world RE map

100 GW

60 GW

10 GW

5 GW
IN THIS ISSUE VOLUME 5 | ISSUE 07 | May 2015
RE Thrust
w w w . e n e r g y n e x t . i n

14 34
A year of In Conversation - Varsha Joshi

quantum
Cover story
Policy changes to
boost wind sector
jump

The wind energy sector is treading on


the path of growth, after witnessing
The past one year has been a tremendous year for the renewable energy slowdown in the past few years.
sector in India. The NDA government under Prime Minister Narendra Varsha Joshi, Joint Secretary at the
Modi has put the RE sector on growth path through a slew of measures. Ministry of New and Renewable
Energy talks about various challenges
The target for the sector has been scaled up to 175 GW, with assurance facing the industry and how the sector
from government of providing necessary policy and regulatory support is poised to attain envisaged goals
to the investors. The resounding success of the first Renewable Energy

38
Global Investors Meet & Expo clearly puts India on the Global RE map

Innovation- Students-
DMRC collaboration
26 Wheeling wind
Expert Speak power
Not by Gigawatts alone! A group of students at Kalindi College,
University of Delhi, took up a project
Dr Satish Balram Agnihotri, former secretary of under which they developed a wind
Ministry of New and Renewable Energy, talks turbine prototype, which could be
about the government’s ambitious programme of installed at underground Metro tracks
installing 175 GW of RE capacity by 2022, out of for generating power. The electricity
which 100 GW is from solar energy. He stresses on produced could be used for meeting
the need for innovation in the field of renewables power requirements at the metro stations
and presses for giving equal importance to all the
segments of the sector for inclusive growth

42
32
State Perspective-Uttar Pradesh

Sunny side UP
Collaboration- Hannover Meet Uttar Pradesh, the largest state in India
in terms of population, is gearing up to
Make in India! Don’t meet the challenge of rising electricity
miss the Bus! demand by tapping huge potential of
solar energy. The state government is
Lately, RE has come to acquire a great working towards creating conducive
deal of significance in India, and is seen environment for private sector
as a prospective vehicle to attain energy investment through enabling policy
security in a sustainable manner. Christoph measures. The ‘Solar Power Policy 2013’
Ernesti talks about the recent visit of Indian and the ‘Solar Rooftop Policy 2014’ have
Prime Minister to Germany and the market been enacted to increase solar power
potentials for RE in India explored by Indo- generation as well as consumption in
German Energy Forum at Hannover Messe the state

May 2015 | Energy Next | 3


In this issue

45
Interview- Sunil Sikka

LED: Effective future


lighting solutions
LED Technology is bringing about radical
changes in lighting across the world. With
the pro-active steps taken by the government,
Indian lighting industry is poised for an
unprecedented growth. Sunil Sikka, President
– Havells India Limited and currently
President of Electric Lamp and Component
Manufacturers’ Association of India talks about
the transformation that the lighting industry will
witness in the coming years

48 53 58
Success Story-Gujarat Perspective - REC MNRE News

State pioneers Electricity Amendment Piyush Goyal bats


in solar Bill to boost REC market for strong grid
The renewable energy certificate (REC)
market in India is struggling to find
momentum amid non compliance of
renewable purchase obligation (RPO)
targets by state utilities. KR Nair, Vice
President of IWPA stresses the need to
have a strong enforcement policy for
RPO to revive the REC market

D Jagatheesa Pandian and Dr


Omkar Jani discuss various The Minister of Power Coal,
initiatives and programmes that New and Renewable energy,
have resulted in making Gujarat a Piyush Goyal, while attending
leader in solar power generation the inauguration of Gridtech
in India. “Gujarat Solar Power 2015 stressed on the need to
Policy-2009” in January 2009 not have a strong transmission and
only targeted a solar installation distribution system in place,
capacity of 500 MW by 2014, but even as the country gears up for
also had many well-designed increasing the share of renewable
investor-friendly provisions energy in the total energy mix

61
IREDA Corner

IFC, IREDA partner to boost financing for RE


Recently, the Indian Renewable Energy Development
Agency Ltd. (IREDA) and IFC, a member of the World Bank
Group, inked the master cooperation agreement. The
two organisations will partner to provide much-needed
infrastructure financing for renewable energy projects in
India, which, in turn, will help boost growth and create jobs

4 | Energy Next | MAY 2015


FROM the editor

On A Positive Note
increase in cess on coal to `200 per metric
tonne are some of the measures taken in
right ernest.
The year 2014-15 saw an installation of
4,089 MW as against the target of 3,770 MW.
Though a small achievement, this is a positive
signal for the sector.
An important aspect that needs to
be kept in mind is the requirement of
funds for the renewable energy sector.
The government is striving for attracting
foreign investment by creating a liberal
environment for the investors. 100 per cent
Foreign Direct Investment in the renewable
energy sector is permitted.
During the Prime Minister’s recent visit
to Germany, France and Canada, a series
of agreements were signed in clean energy
sphere. In the joint statement issued by India
and Germany, the latter resolved to “support
India in its endeavour to install 175 GW of

R
Renewable Energy by 2022 by providing
enewed vigour shown by facilitating all the stakeholders to be on adequate technical and financial support.”
Government of India through board, especially the states. An MoU was also signed between the
its pragmatic policies and The first Renewable Energy Global Ministry of New and Renewable Energy
initiatives has enthused all Investors’ Meet & Expo (RE-INVEST), (MNRE), and the Ministry of Ecology,
stakeholders in the sector. While the held in February 2015 in New Delhi, was Sustainable Development and Energy,
government has set ambitious targets and able to attract huge attention of domestic Government of France to encourage and
has rolled out plans to attain them, the as well international players. The primary promote technical bilateral cooperation on
renewable energy industry has also shown objective of the event was to showcase new and renewable energy issues.
encouraging signs and is bullish about India as a global investment destination. Recent reports and trends are
fulfilling envisaged targets. RE-INVEST was successful in eliciting indicating towards a definite surge in
The government announced the target interest from developers, manufacturers renewable energy investment in the
of installing 175 GW of renewable energy and bankers in form of Green Energy country, however, to attain the ambitious
capacity in the country by 2022 that Commitment certificates. goals, all stakeholders need to work
comprises 100 GW from Solar, 60 GW from The government did its bit for the together and make renewable energy a
Wind, 10 GW from Bio-Energy and 5 GW renewable energy sector by offering a preferred source of energy.
from Small Hydro Power (SHP). Right from series of incentives, which restored the
scaling up the target to providing budgetary confidence of the renewable energy
support; creating enabling investment community. Restoration of Accelerated
environment to pledging 24x7 power to all, Depreciation (AD) scheme for wind
the government is taking necessary steps energy sector, reduction in the excise
that will take us nearer to the target. duty on raw materials for solar and wind
Today, renewable energy can no longer equipment, a 10-year tax break to power
be seen as a supplementary or secondary projects operational before March 31, 2017,
form of energy, but to be viewed as an
important component of India’s energy
mix and energy security. With renewable
energy becoming increasingly cost
competitive, the Central Government is
KS Popli
Chairman & Managing Director, IREDA

May 2015 | Energy Next | 5


letters to the editor

I am a small entrepreneur who is engaged in


Draw children’s the business of renewable energy in Unnao
attention district of Uttar Pradesh. Recently, I visited
Delhi and got an opportunity to see a copy of
Energy Next magazine. Though the magazine is Enabling Investment Environment
informative, I would request you to please carry
stories about how young children make use of Editor-in-Chief K S Popli
daily household products to develop renewable Publications Director R Ramprasad
energy or energy efficient products. This will Assistant Editor Upendra Singh
help in generating interest among the youngsters Assistant Editor Richa Kapoor
as they will learn about the importance of clean Head - Business & Events Anupam Daftuar
energy from a very young age. Design Flying Tusker Media
ll Gaurav Tripathi, Unnao Marketing Manager Abhinav Dutta
Manager - Research Anup Kumar

Good coverage to the Managing Director of Energy stories on what steps are being
For the latest Renewable Energy news.
states Efficiency Services limited, taken in the banking and
log on to www.energynext.in
After reading Energy Next, I am helped me understand the financial sphere. This will help
glad to know that the states in importance of LED lighting. a potential entrepreneur to
different parts of the country are I also understood that in the make an informed decision. Energy Next is printed by R Ramprasad and published
doing a lot of work in the field long run, it will help me bring ll Anand Mittal, Delhi by R Ramprasad on behalf of
Focal Point Media Services Pvt Ltd
of renewable energy. It seems down my electricity bill. Till
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that there is a lot of potential in now, when I was purchasing More News Pavani Plaza, Khairatabad,
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Moreover, it seems that the hill over to LED lighting. place in and outside India. The 1-1-60/5, RTC Cross Roads, Musheerabad Hyderabad
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6 | Energy Next | MAY 2015


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NATIONAL

RBI notifies RE under priority sector lending RE investment in


to farmers, small & medium enterprises India surges in 2015
(SMEs), exports, education and renewable
energy.
A new set of rules by RBI mandates
T he first quarter of 2015 has seen a
surge in the investment in India’s
renewable energy sector. This was revealed
banks to lend at least 40 per cent of their in a report released by research firm
net credit to the priority sector; in the case Bloomberg New Energy Finance (BNEF).
of foreign banks, those with less than 20 According to the report, the
branches will reach the target by 2020. investment in the country’s renewable
The renewable industry in India has energy sector shot up 59 per cent year-
welcomed the RBI’s decision of bringing RE on-year to $1.6 billion during January
sector under priority sector lending. Tulsi to March 2015. As per the current

T he Reserve Bank of India (RBI) has


revised the priority sector lending
norms and has accorded renewable energy
Tanti, CMD of Suzlon Group, said that the
notification by RBI will boost investments
from the SME sector in renewable space, as
trends, it is estimated that investment
in the RE sector in India may cross $10
billion in 2015, a first since 2011.
sector the priority sector lending status. the finance will be available at a competitive During the recently held Renewable
The apex bank came out with a new rate with bankers having separate allocation Energy Global Investors’ Meet &
set of rules for priority sector lending and priority for the sector. Expo (RE-INVEST) in New Delhi,
the RE community had pledged an
investment commitment of more than
Govt to award 10 GW of solar projects soon $200 billion for setting up of over 270
GW. However, BNEF states that despite

T he Indian government has


initiated work on ambitious target
of installing 100 GW of solar power
remaining would be at solar energy parks
in different states.
NTPC will build 3,300 MW of projects
positive trends, the overall investment
environment in the country is still far
from the level that was committed by
capacity by 2022. According to sources, on its own, while 3,000 MW worth of the investors.
the government will be awarding projects will be tendered under the
10,000-MW of projects in the coming bundling scheme.
Wind installation
months.
Under the plan, 6,000 MW of
On the other hand, SECI, which is a
fully owned subsidiary of the Ministry of
increases in 2014-15
capacity will be set up by NTPC Ltd
while 2,500 MW will be set up by
Solar Energy Corporation of India
New and Renewable Energy, will tender
out 2,000 MW of projects. A proposal in
that regard will be sent to the Cabinet for
2 014-15 witnessed a slight increase
in new wind energy installation in
India as compared to 2013-14. Against
(SECI). Approximately 2,500 MW will approval, and the tendering process will installation figures of 2,146 MW in the
be set up in Madhya Pradesh and the commence after the approval. previous year, the wind sector in the
country saw a marginal surge, adding
new capacity of 2,297 MW in 2014-15.
With the reinstatement of accelerated
depreciation (AD) scheme in the Budget
2014-15, it was expected that the wind
sector in India will see an installation of
over 3,000 MW. However, despite the
hopes, installation figures were only a
little better than the previous year.
The wind industry is, however,
optimistic that the yearly installations
will increase in the coming year.
According to Madhusudhan Khemka,
Chairman of the Indian Wind Turbine
Manufacturers’ Association, the new
capacity addition in the current fiscal will
cross the 3,000 MW mark.

8 | Energy Next | April 2015


NEWS

New tariff policy to boost renewable generation


T he Indian government has proposed an
amendment in the existing tariff policy
of 2005 to give a boost to renewable energy
The discoms will now be allowed to
purchase bundled solar power from existing
conventional power plants on a cost plus
sector. As per the amendment proposed basis to meet their RPOs. However, they can
by the Ministry of Power, promotion of RE continue to buy solar power by allocating
sources has now been added as the fifth capacity through competitive bidding route.
objective of the tariff policy. The mandate of at least 10 per cent of
The proposed amendment has several renewable power generation by coal-fired
features to boost solar energy generation, power plants, installed after a specified
including revising renewable purchase date, is a big boost for the sector. RE
obligation (RPO) target from 3 per cent by sources will now be exempted from inter-
2022 to 8 per cent by 2019. state transmission charges.

Policy revamp key to achieving RE targets in India Arun Jaitley bats for
greener technologies
I f India wants to accelerate implementation
of renewable energy projects and attain
desired results, there is need for policy
of incentives for solar projects by adjusting
the current policy.
In case of wind energy, the target of
revamp. This was revealed in a study released installing 60 GW by 2022 can be achieved with
by the US-based Climate Policy Initiative and minimal government financial support. As
Indian School of Business. per the report, wind energy in India is already
The analytical study ‘Reaching India’s cheaper than the power generated from a
Renewable Energy Targets Cost-Effectively’ calls new built imported coal plant.
for revamp of the existing policies to speed up
solar and wind energy deployment and bring
down cost of implementation.
The study advocates a
cost-effective policy
path to achieve
renewable energy
T he Finance Minister of India, Arun
Jaitley, in his intervention on Climate
Change Finance Ministerial organised by
targets, considering the World Bank on the sidelines of annual
the government’s Spring Meeting of the International
constrained budget. Monetary Fund and the World Bank,
The report suggests that the government said that in order to curb the menace of
can save huge amount of money in the form climate change, the global community
should develop greener technologies on a
war footing.
IFC, PFS collaborate to spur RE financing Jaitley stated that a warmer planet will
disproportionately affect poorer parts of the

I FC, a member of the World Bank Group,


and PTC India Financial Services Ltd.
(PFS) have entered into an agreement to work
local currency financing available in shorter
time-frames and reduce financing costs
for borrowers, thereby enabling quicker
world, including India, and efforts need to be
taken on an urgent basis.
He said that adopting renewable energy
together to promote renewable energy in India. commissioning of projects. sources will help clean the environment to a
The collaboration will provide a much- Hyun-Chan Cho, IFC’s Head of larger extent. Highlighting India’s ambitious
needed infrastructure financing for RE projects Infrastructure and Natural Resources – Asia programme for harnessing RE sources, Jaitley
in the country. The primary objective of this Pacific said that both IFC and PFS can now said that the target for installation of RE in India
partnership is to give a boost to the RE sector. work more efficiently with Indian companies has been increased significantly. He mentioned
With this, PFS becomes the first institution to spur private sector development by the solar target being increased from 20 GW to
in India to sign IFC’s master cooperation providing long-term risk capital where it is 100 GW by 2022.
agreement. The ultimate aim is to make needed most.

April 2015 | Energy Next | 9


State | News

AP to install 1.3 GW of wind, solar in this fiscal NDMC promoting


than the state’s ‘Power for All’ initiative. Earlier,
solar rooftop units
it proposed to install 800 MW of wind power
capacity in the state during the same period.
In solar energy, the state government awarded
619 MW of power purchase agreements (PPAs) to
private developers in December 2014. By the end of
2015, plants of less than 10 MW are to be finished.
The projects which are bigger than 10 MW capacity

A ndhra Pradesh (AP) is taking steps to


install more than 1,300 MW of wind and
solar power facilities in the fiscal year through
are to be commissioned by March 2016.
Recently, AP Eastern Power Distribution
Company Ltd and AP Southern Power
March 2016. The government is planning to Distribution Company Ltd signed a PPA with
complete 1,000 MW of wind and 300 MW of solar NTPC Ltd signed a PPA for 250 MW solar power
photovoltaic parks in the current fiscal. plant, the first phase of the 1,000 MW ultra solar
The planned wind power capacity is more power project being set up.

T he New Delhi Municipal Council’


(NDMC) is promoting the use of solar
Haryana to build canal-top solar power plants panels on roofs of buildings to reduce
stress on the distribution grid. NDMC’s

T he Haryana government is mulling over


to replicating Gujarat’s renewable power
generation model, under which canal tops
rooftop solar project is gaining pace, and
recently a solar rooftop power project was
inaugurated at a school in the area.
and canal banks can be used as potential solar Households interested in setting up
power plants. solar panels on their rooftops will be
The Haryana Renewable Energy given permission to link their units to
Department (HAREDA) has already the power distribution network under the
undertaken an exhaustive feasibility study in net-metering scheme.
various parts of the state for this ambitious efficient and cheap use of land, and they will The power produced from the household
project. Meanwhile, officials from the also prevent millions of litres of water from solar units will be bought and adjusted in the
irrigation department as well as from evaporation. monthly bill. Net metres will help to keep
HAREDA are undertaking surveys to find Haryana has a wide network of canals. This track of the amount of power that is sold.
suitable places to set up solar power grids. is an important part of their irrigation system. With an aim to ensure smooth generation
Experts are of the opinion that there are two The Ministry of New and Renewable Energy and transmission of solar power, the civic
major advantages of building solar plants on (MNRE) is playing a pivotal role in setting up body will undertake a feasibility check to
top of canals-- they will pave the way for an solar projects along the canals. find out whether the connection can be
linked to the NDMC grid.

Odisha seeks financial assistance to boost RE


T he Odisha government has urged the
Union Ministry of Power to provide
them with adequate monetary assistance
schemes for renewable energy sector.
The state is taking steps to woo private
developers with an aim to set up solar, biomass,
from the National Clean Energy Fund small hydro and co-generation power plants.
(NCEF) to implement renewable energy It has set up Green Energy Development
projects in the state. Corporation for execution of RE projects.
There are several renewable energy Steps are also being taken to identify
projects that have been set up in Odisha land to set up ultra-mega solar plants in
and require monetary assistance. The state the state. In order to prepare combined RE
government has also asked the government policy, the state government had appointed
of India to introduce subsidised financing World Bank as a consultant.

10 | Energy Next | April 2015


INTERNATIONAL | News

RE to transform BRICS economies Dubai aims to


accomplish RE targets
T he United Nations Environment
Programme (UNEP) executive
director Achim Steiner stated that the W ith an aim to accomplish the
renewable energy targets Dubai
renewable energy (RE) will play a pivotal has announced the third phase of solar
role in transforming the economies of energy plans. The objective is to work
Brazil, Russia, India, China and South towards making Emirate clean and
Africa (BRICS). green by 2021.
A report prepared by UNEP, stated that Dubai Electricity and Water Authority
the countries in different parts of the world renewable energy technologies. The green is looking forward to raise the share of
were investing a large amount of money in initiatives undertaken by the countries are RE to 7 per cent by 2020 and 15 per cent
renewable energy. The report mentioned helping to combat pollution that is related to by 2030. It is estimated that the share
that the developing nations invested $131.3 the industrial growth and are trying to keep of the renewables will increase as the
billion in green energy in 2014 and China pace with consumer demand. Mohammad bin Rashid Al Maktoum
was leading in this sphere. Steiner stated that approximately 700 million Solar Park, a photovoltaic plant will
According to Steiner, China is investing people in Africa do not have access to power, become functional by April 2017.
huge amount in the renewable energy sector and UNEP is aiming at making use of science The Dubai Integrated Energy Strategy
and have also reduced the price of the to overcome the rising challenges. 2030 also looks forward to broaden
the horizon of the energy sources. The
energy mix would include 71 per cent
Emerging markets give boost to wind sector globally from natural gas, 15 per cent from solar
energy, 7 per cent from clean coal, and 7

G lobal wind energy installations witnessed


a surge in 2014 led by emerging markets
The annual wind turbine installations
surpassed 50 GW mark and investment in
per cent from nuclear power.

in Africa, Asia and Latin America. This was


revealed in the Global Wind Energy Council’s
the sector grew by 11 per cent. Owing to the
growth in the wind energy sector, a lot of stress
Solar-powered
flagship report released in Istanbul. is being given to the sector in 2015. bicycle developed in
The report talked about the role played by Steve Sawyer, GWEC Secretary General Denmark
the emerging economies in the international stated that the growth of the wind power is
scenario, with China having installed 23 GW of
new wind capacity in 2014, thereby raising the
cumulative total to 114 GW.
driven by competitive pricing.
He further said that wind power is helping to
meet sustainable, clean and indigenous power
R enewable energy is fast making
inroads into various aspects of life,
and a solar-powered bike designed in
For the first time, Brazil made its way to sources in Africa, Asia and Latin America. Denmark is a testimony to this.
the top 10 cumulative rankings, placed at 4th The Global Wind Energy Council’s Designed by Jesper Frausig, the
position. The African wind energy market annual regional forecast predicts Asia ‘Solarbike’ consists of a torpedo-shaped
is also treading on the path of growth, while playing a dominant role followed by Europe battery container mounted in the front
Germany, Chile, Canada, and Turkey also had and North America. It is likely that Latin triangle of the cycle while the solar
good growth years. America will grow. panels are mounted on the disc wheels.
The solar cells on the wheels,
which are highly efficient and
‘shadow optimised,’ deliver clean
energy directly to the battery. The
solar cells charge the battery when
the bike is in a standstill position,
and when in motion the energy is
provided by the battery for the motor.
The bicycle can travel at a speed
of 50km/h and cover a distance of
around 70 km when the battery is
fully charged. The speed of the bike
can be easily adjusted as per the
requirement.

April 2015 | Energy Next | 11


INTERNATIONAL

China’s RE sector to bring down GHG emission Mexico revises


and prepared in association with experts renewable target
from the US and Denmark.
The report states that rapid growth
of renewable energy in China is
M exico has revised its target of
getting 5 per cent of its power
from renewables by 2018, from its
technologically and economically feasible, earlier target of 8.2 per cent. This
and the country’s coal use could peak in was mentioned in the draft policies
2020 and its GHG emission by 2025, five formulated last month.
years ahead of target. The target is part of the national
Experts are of the view that China has development plan that was formulated
to bring down its reliance on coal amid recently by Mexico’s energy secretary.
urgency to clean up its air and reduce The aim is to accomplish the country’s
GHG emissions. They feel that the country existing long-term target of generating

I n wake of rapid deployment of solar,


wind and bio-energy projects, China
plans to attain its target of reducing
should expedite RE projects and that
too at large scale so that the peak time is
achieved at the earliest. A lot of stress is
35 per cent of its power from clean
sources by 2024.
It is believed that the target was
greenhouse gas (GHG) emissions by 2025. being laid on financial and technological reduced as more money would be
This was revealed in a report led by the innovation besides policy reform to spent to reach the goal of 8.2 per cent
China National Renewable Energy Centre, achieve high renewable targets. in the next three years.
With a constitutional amendment
that was approved in December
Japan’s emphasis on smart grid technology for RE 2013, Mexico is working towards
transforming its energy industry. The

J apan has been increasing deployment


of smart grids in wake of country’s
encourage micro-grid development
in Japan. With a budget of $7 million
revised target is part of the reform.

emphasis on boosting energy efficiency provided annually for three years, this
and power generation from renewable programme makes funding available Global solar
energy sources. for independent demonstration market expected to
A report by research and consulting
firm, GlobalData, states that Japan
projects that include renewable energy
production & storage systems, and
grow in 2015
could soon become one of Asia-
Pacific’s top markets in smart grid
development. Japan was among the
energy efficiency optimisation.
Japan has been working to boost
the country’s energy efficiency and RE
G lobal solar power demand is
expected to grow up to 30 per
cent in 2015 compared to 2014,
first countries globally to invest in generation post Fukushima nuclear reaching 57GW, according to a
smart grid research and development disaster in 2011. RE accounted for only forecast released by IHS Inc. It states
in the early 2000s. 10 per cent of Japan’s total installed that the size of the solar PV industry
The Ministry of Energy initiated capacity in 2014 that is expected to in 2015 will be ten times the size of
a new programme in 2014 to grow to 19 per cent by 2025. the industry that was seven years ago.
The report states that China will
be the key market for the third
consecutive year as far as driving
the solar PV industry in 2105 is
concerned. The other top growth
markets are expected to be Japan, the
United States, United Kingdom and
India.
IHS also predicts solar PV inverter
market to return to growth. It is
estimated that revenue from PV
inverter sales will increase by more
than 10 per cent, from $6.6 billion in
2014 to $7.5 billion in 2018.

12 | Energy Next | April 2015


NEWS

South Korea, Columbia increase cooperation in RE sector


S outh Korea and Columbia
have signed a memorandum of
understanding to work together. The
energy sources such as solar, wind and
geothermal power. However, there are
several areas which are not connected to
MoU was signed by South Korean Trade- the state grid.
Industry-Energy Minister Yoon Sang-jick Recently pilot projects for electric
Colombia’s Mines and Energy Minister vehicles as well as energy self-sufficient
Tomas Gonzalez in Bogota. villages in the South American country
It is for the first time that the Korean were launched. Korea will go ahead with
government has inked a deal with a foreign a pilot programme so as to form self-
government for penetrating into overseas sufficient energy villages in Colombia’s
renewable energy market. energy-poor and isolated areas, which
There a large number of opportunities energy self-supporting model to Colombia, are not easily accessible by conventional
with regard to exporting Korea’s green as the country has large amount of renewable electricity grid infrastructure.

Off-shore wind gets off the block in US Tool to assess


geothermal potential
wind farm in Rhode Island.
The off-shore wind farm will be located
about 13 miles south of Rhode Island off the
coast of Block Island. The wind farm is being
developed by Deepwater Wind and is expected
to be commissioned in the fall of 2016.
The power produced from the 30 MW
wind farm will be used to power every
home and business on Block Island, which
has a population of just over 1,000. The
excess power will be supplied to Rhode
Island through undersea cables.
T he International Renewable Energy
Agency and the European Space Agency
have come out with a new tool to gauge

T he long awaited off-shore wind


energy development in the United
States finally got a kick start with the
The installed wind energy capacity in
the US is about 47,000 MW, however, the
off-shore wind development has taken
geothermal potentials around the world.
As geothermal energy exists underground,
it is extremely difficult to measure. So, the
commencement of construction work at considerably long to get off the block. new device, which is now available online,
can investigate the geothermal potential. This
new technique, using ‘Global Bouguer and
Jobs in Australia’s RE sector dips Free Air Gravity Anomaly Maps,’ enables
prospectors to assess geothermal potentials at

M ore than 2,000 clean energy jobs have


been lost in the past two years owing
to the political deadlock over the Renewable
panel manufacturing sector and hydropower
plants. However, the new data reveals that
employment in renewables has declined by 15
minimum risk and minimum cost.
The tool provides a short-cut for lengthy
and costly explorations and unlocks the
Energy Target (RET), according to the per cent since 2011-12, during which it had potential of geothermal energy. The maps use
Australian Bureau of Statistics report. touched almost 15,000 full-time workers. ESA satellite gravity measurements to look for
The report mentions that in the past year There is disagreement between the certain characteristics unique to geothermal
12,590 employees worked at wind farms, solar government and opposition over the renewable reservoirs, including areas with thin crusts,
energy target, under which it is made mandatory subduction zones, and young magmatic
that 20 per cent of all Australia’s energy should activity. This helps determine which areas are
come from clean sources by 2020. most likely to possess geothermal potential,
Owing to the uncertainty prevalent in the narrowing the search for prospectors.
market, investors are wary of investing in the The publication of these maps is a first
sector leading to loss of new employment step towards developing a comprehensive
opportunities. geothermal prospecting technique.

April 2015 | Energy Next | 13


Cover Story

A year of
quantum
jump
Prime Minister Narendra Modi led NDA government is on the verge of
completing one year in power. A year back, the renewable energy industry,
struggling to find the right momentum amid uncertainty, had pinned its
hope on the new government. Almost twelve months on, the government
has taken ambitious decisions for harnessing RE sources and has put plans
in place to attain them. Upendra Singh takes stock of the RE sector’s journey
over the last year, and casts a look at what lies ahead

“I
n my mind there is a poor last one year, be it in terms of increased to scaling up renewable energy targets,
man sitting in darkness, focus or a new and direct link with the the government has made right decision
and I want to utilise the country’s energy security. The National and created appropriate noises for a sector
resources available to us to Democratic Alliance (NDA) government that had been struggling to retain its
the optimum, so that they can be used under Narendra Modi came to power in momentum over the last few years.
to benefit him. We want to accelerate May 2014. From that moment on, the RE
the efforts and reach where we want to sector noticeably garnered unprecedented ll Round-the clock-power
reach and then beyond that. We have to attention and relevance in the Indian and to all
analyse the resources of energy to attain global renewable community. Right from One of the first and one of the most
our goals. The journey from megawatt clubbing the three important ministries, significant decisions of the NDA
to gigawatt in renewable energy is Power, Coal and New & Renewable Energy, government was the setting up of
very ambitious one, which will help
in realising our goal.” This statement, I am impressed with the government’s
made by Prime Minister Narendra Modi
during the first Renewable Energy Global
decision of dreaming big and promising
Investors’ Meet & Expo (RE-INVEST-15) 24x7 electricity to all households by
held in February 2015, clearly underlines
the intent and focus of the government
2022. We need to bridge the energy gap,
towards addressing energy security improve the quality of life for the rural
concerns with renewable energy.
The renewable energy industry in India
populace and enable inclusive growth
has witnessed a major transition over the K Subramanya

14 | Energy Next | MAY 2015


RE Thrust

“Advisory Group for Integrated


Development of Power, Coal and
Renewable Energy” to ensure 24x7
electricity to all households over the next
five years. In order to achieve this goal,
the government announced enhancement
of power generation, with special focus
on renewable energy sources. The priority
attached to the renewable energy sector
can be easily discerned in a statement by
Piyush Goyal, Minister for Power, Coal
and New & Renewable Energy when he
says that renewable energy in India is
no longer a supplementary or secondary
form of energy.
Appreciating the government’s vision
of providing round the clock power to all,
K Subramanya, former CEO of erstwhile
Tata BP Solar, says. “I am impressed with
the government’s decision of dreaming
big and promising 24x7 electricity to all
households by 2022. We need to bridge
the energy gap, improve the quality of
life for the rural populace and enable
inclusive growth. Our energy mix
should be judicious based on long term
perspective. We have to be a powerful
nation and be respected and counted.”

ll Raising the bar


The vision of Piyush Goyal to make
India a RE hub raised the bar for the
sector. The government announced the
target of installing 175 GW of renewable
energy capacity in the country by 2022,
comprising 100 GW from solar, 60 GW
from wind, 10 GW from bio-energy and 5
GW from small hydro power (SHP). The
government made its intentions clear by
inviting all the stakeholders to play an
active part in realising this goal.
“There has been a rush of positive
sentiment due to infusion of various
policy measures introduced by the
Modi government. The government has
favourably prioritised the RE industry,
keeping in view India’s generation
potential. The Prime Minister’s vision
has set the capacity target for 175 GW
of renewable energy by 2022, with
solar energy capacity accounting to
100 GW capacity. Intentions like these
from the government have set the ball
rolling for numerous initiatives,” states

May 2015 | Energy Next | 15


Cover Story

The first year as it pro


August 2014 October 2014
June 2014

• Directive to states • Off-shore wind:


for faster • Smart Cities: MoU for India’s first
sanction of RE projects Plan for 100 smart off-shore project.
• Amendment to cities. • JNNSM:
Electricity • Wind energy: MNRE announces
Act for steady To install 10 GW draft rules for 3,000
growth of RE capacity annually MW of solar PV
• 24x7 power to all • Landmark EE projects
households by 2019 initiatives for multi- • MNRE initiates work
storey buildings & on “Renewable
hospitals Energy Act 2015”

• Minister: Piyush Goyal • Budget 2014-15: • No anti-dumping


appointed minister for Bouquet of offerings for RE duties
Power, Coal and New • Re-instatement of AD on cheap solar imports
and Renewable Energy. scheme for wind energy • RE capacity
• Ministerial synergy: • Solar parks, ultra solar enhancement: 1 lakh
The three Ministries— projects, solar irrigation MW in 5 years
Power, Coal, New & scheme • Indo-US partnership
Renewable Energy-- • Ten-year tax holiday for on energy security, clean
under one minister for power sector energy & climate change
the first time in India. • NCEF: Doubling of clean • MNRE announces
energy cess on dates for
coal, peat and lignite RE-INVEST-2015
MAY 2014
September 2014
JULY 2014

Vineet Mittal, Vice Chairman, Welspun government organisations. Likewise, the been prioritising renewable energy. Their
Renewables. banks and financial institutions pledged commitment to renewables was signalled
The hosting of RE-INVEST 2015 was to support the renewable sector by strongly when they set the mammoth
a major step by the Ministry of New funding around 72 GW. target of a 175 GW of installed renewable
and Renewable Energy (MNRE) to energy capacity by 2022.”
showcase India as a hot renewable energy ll Big, Bold & Beautiful When the Jawaharlal Nehru National
investment destination to the global The Prime Minister’s vision of ‘big, bold Solar Mission (JNNSM) was launched
community. The objective behind staging and beautiful’ has been truly emulated in in 2010, the target of installing 20
of an event of such magnitude reaped the renewable energy sector. Praising the GW by 2022 was envisaged. In the
rewards which reflected in the huge Indian government, Dr Arunabha Ghosh, wake of negligible installed capacity
commitments made by investors from CEO at Council on Energy, Environment in the country, this was seen as an
India and abroad. Commitments of more and Water (CEEW), states, “The nearly overambitious target. Come 2015, and
than 270 GW were received from private one year old NDA government, under the target has been revised to 100 GW—
players, PSUs, manufacturers and other Prime Minister Modi, has systematically five times the original target set under

16 | Energy Next | MAY 2015


RE Thrust

gressed & continuing...


February 2015 April 2015
• RE-INVEST 2015:
December 2014 Organised in New Delhi • Piyush Goyal
from Feb 15-17 announces plans for
• Commitments: Govt new Financing models
• Solar Parks:
receives commitment • Indo-French
MNRE initiates
worth 266 GW agreement in RE
scheme for setting
• Banks/ FIs pledge • Govt to award 10 GW
up 25 solar parks
commitment of 69 GW solar projects in three
• RE target
• Budget 2015-16: months
enhancement:
`6,161 crore approved • Priority sector: RBI
Target to install 175
for RE sector proposes priority sector
GW by 2022
• NCEF: Clean energy lending status to RE.
• Solar project along
canals cess doubled to `200/
metric tonne

• Solar Energy: • RE Commitments • Govt releases


JNNSM target
increased to 1 lakh MW
from investors
• CERC revises
`957 cr towards GBI
for wind projects Target
• Prime Minister calls for
‘Global Virtual Centre’
price of solar RECs
• LED scheme:
PM launches
• Solar Funding:
Government to for 2022
for clean energy at G20 raise $3 bn
Summit scheme for LED bulb • Solar Plane: Solar Solar
• Indian Railways
announces plan to
increase RE footprint
distribution
• PM Modi & US
President Obama
Plane, Impulse 2, lands
in India
• Scheme to turn
100 GW
• Approval to raise agree to work on major ports into green WIND
clean energy goals
60 GW
authorised share capital ports
of IREDA • Govt plans to
raise $25 bn fund March 2015
for RE sector
BIO-ENERGY
November 2014
10 GW
Small Hydro
January 2015
5 GW

the JNNSM. A similar case is that of would go for the target. Experts are of the developing positively, there is nothing
wind energy. Despite being the largest opinion that this really ambitious target in current trend or in the government’s
contributor in the country’s renewable may not be achieved in such a short span. specific policies that suggests this can be
energy mix, the wind energy sector had However, on an optimistic note, there are achieved. Does that matter? Not really. If
been struggling since 2012 due to certain many in the government as well as in the India achieves even 50 GW of renewables
incentive issues. To instil confidence into industry who believe that in even the worst by 2022 it will present a vast market
the project developers and manufactures, case scenario, the capacity will be much opportunity and create a solid foundation
the target was set at 60 GW by 2022 from more than the originally envisaged targets for further growth.”
the current capacity of around 23 GW. in the solar and wind energy sectors. Right before the NDA came into
Is this merely a matter of over quoting Dr. Tobias Engelmeier, Director and power, the Commerce Ministry had
or are there measures and a roadmap Founder at strategic consulting firm, recommended imposition of anti-
in place to achieve the targets? Initially, Bridge to India, says, “The target of 175 dumping duty on cheap solar imports
after a lot of opposition and discussion, MW by 2022 is most likely not going from China, Malyasia, Taiwan and the
it was decided by the government that it to be achieved. While the market is USA. The Indian domestic manufacturing

May 2015 | Energy Next | 17


Cover Story

energy deployment provides ample


The Prime Minister’s vision has set opportunity for the manufacturing industry
the capacity target for 175 GW of in India. Both RE-INVEST and Prime
renewable energy by 2022, with solar Minister Modi’s ‘Make in India’ initiatives
have turned out to be ideal breeding ground
energy capacity accounting to 100 GW for almost all the segments and stakeholders
capacity. Intentions like these from the of the RE sector.
Additionally, the high requirement
government have set the ball rolling for of equipment of solar and wind energy
numerous initiatives projects is likely to drive demand for
locally manufactured equipment and
Vineet Mittal
create a more robust and competitive
industry had also been demanding the that the government has been able to market. Dr Ghosh states that the ‘Make in
imposition of these duties, so that they ally investors’ worries and the proposed India’ campaign is a positive signal for the
could be provided with a level-playing Renewable Energy Act will help in renewable energy sector, and can boost
field. However, to the utter surprise of the steadying a strong and long-term policy the domestic manufacturing market of
domestic manufacturers, the government environment. solar cells and modules, as well as of wind
decided to not impose the anti-dumping The required fund to set up the targeted turbines and balance of system parts.
duties in wake of larger interest of the potential of 175 GW will be anywhere “India’s renewable energy targets will pose
solar industry in India. This step, though a around $160 billion and requires a lot a great burden to the exchequer in case
harsh one for the domestic manufactures, of effort, especially considering the domestic manufacturing does not gain
was applauded by experts. current state of renewable financing. impetus,” he reasons.
“Doing away with the anti-dumping The government is looking forward to When one talks about 175 GW
duty was an instance where the immediate raising funds for the renewable energy capacity, it also creates a huge
need of solar generation was given sector and is accordingly inviting banks, employment generation opportunity. In
predominance. Since then the whole financial institutions, bilateral and multi- case of solar, to attain the target of 100
retinue of policy measures have been lateral agencies to help the cause. Public GW by 2022, there is a requirement of
announced which will attract investments sector entities like Indian Renewable close to 10 lakh efficient manpower to
into the sector while addressing some Energy Development Agency (IREDA), carry out various construction and other
of the key issues the industry has been Power Finance Corporation (PFC), operational activities. According to
facing,” states Mittal. Rural Electrification Corporation (REC), Bridge to India, the new job opportunity
IDBI Bank, India Infrastructure Finance in the solar sector would be around 6.8
ll Creating Opportunity Company Limited (IIFCL), YES Bank, lakh by the time the target of 100 GW is
The massive response from the global ICICI Bank, etc are being encouraged to achieved over the next 7-8 years.
renewable community indicates that issue green bonds for the purpose. Subramanya says that these landmark
the government’s aggressive approach To achieve the set targets, India requires initiatives in the renewable energy sector
will give a boost to the RE industry. huge amount of funding not only in the were long due, and t will catapult India
Consequently, India is now fast project development process, but also to to the top of the list of solar markets.
emerging as an attractive destination strengthen the manufacturing base in the He adds that several thousand jobs will
for investments. Industry experts feel country. The scaled up target for renewable be created in the solar sector alone, as
more and more investors from India and
overseas join the solar bandwagon.

ll Budget support
To make the announcements a reality, the
government has also tried to put aside
technical and promotional constraints
by providing adequate support through
budget provisions for the sector. The
NDA government had the opportunity
to present two budgets during this short
span, and both received good remarks
from the industry.
The first budget in July 2014 for

18 | Energy Next | MAY 2015


RE Thrust

the fiscal year 2014-15 bore the stamp to benefit the sector. government has been able to discuss
of Prime Minister’s vision of ‘Saffron renewable energy collaborations with
Revolution’ through renewable energy. ll Striking a chord on almost all the leading nations in the sector.
Finance Minister Arun Jaitley put forth global platforms “Our Prime Minister has been highlighting
a bouquet of offerings for the RE sector, India has made it clear on global renewable energy, especially solar, in all
including a 10-year tax break to power platforms that it is serious about his discourses during his visits to Japan,
projects operational before March 31, climate change concerns and in order United States, Australia, France, Germany
2017, reduction in excise duty on raw to curb green house gas emissions, it is and Canada,” states Subramanya.
material for solar and wind equipment, supporting aggressive renewable energy On Modi’s recent visits to France and
reduction in duties on machinery generation. Prakash Javadekar, the Germany, India entered into several
imported for solar, wind and biogas Minister for Environment, Forest and landmark agreements in the renewable
plants, increase in clean energy cess, Climate Change, during his speech at the energy and energy efficiency space. At
reinstatement of accelerated depreciation United Nations Environment Programme the Hannover Messe, world’s largest
(AD) scheme for wind, million solar Assembly meeting in Nairobi in June industrial trade fair, India was the partner
water pumps programme and 25 ultra 2014, made India’s point clear when he country and the enthusiasm shown by
mega solar parks. said that the government was working on leading companies from across the world
The Budget 2015-16, though was not a new roadmap for low-carbon growth in the Indian renewable industry is a
as robust as the earlier one for the RE with the help of renewable energy. testimony to India’s growing might in the
sector, but it was termed as visionary The Modi-led government has tried to clean energy space. Solar and renewable
by the industry experts and players. strengthen collaborations with respect energy collaborations were the priority
Finance Minister’s mention of 175 GW to R&D activities, technology transfer, areas in Hannover, and it is believed
of renewable energy target in his budget manufacturing and joint development that there could be a major agreement
speech underlines the importance given initiatives with other nations. The between India and Germany at the time of
to the RE sector. The doubling of clean
energy cess from `100 per metric tonne The NDA government has done a very
to `200 per metric tonne on coal was a
major boost for generating fund in the
good job in placing renewables at
National Clean Energy Fund (NCEF). the core of India’s energy future and
The Budget allocation to the RE sector
was increased to `6,161 crore. Provisions
their announcements have caught the
like powering 20,000 villages with off- attention of investors around the world.
grid solar, training 10,000 Surya Mitras,
support to R&D in RE and excise duty
Putting in place the details, however, is
exemption on specific raw materials for challenging
wind and solar were some other measures Dr Tobias Engelmeier

May 2015 | Energy Next | 19


Cover Story

Given the proactive


action taken by this
government in the
RE sector, it is safe
to presume that
renewable energy
in India is here to
stay and grow from
strength to strength
Dr Arunabha Ghosh
German Chancellor Angela Merkel’s visit the better is in the offing. Increased the grid infrastructure. The poor financial
to India in October 2015. number of renewable energy projects health of distribution companies poses a
“Prime Minister Modi has also will require related infrastructure in great threat to the scaling up of renewable
included RE in his foreign policy place and a proper allocation of money energy, as their inability to honour power
dialogues that have resulted in and resources. Ample opportunities purchase agreements not only creates a
agreements around technology transfer, will arise in construction, engineering, disincentive for RE power producers, but
joint research and development, foreign manufacturing, research, technological also makes RE projects less bankable for
investment in the Indian renewable innovation, supply chain & logistics, financiers. Equally on the supply side, there
energy sector and joint deployment. administration and operation. is need to invest in grid up-gradation, so
Given the proactive action taken by this “The NDA government has done a that the inclusion of renewables in the grid
government in the RE sector, it is safe to very good job in placing renewables at can be seamless. “The ground-level policies
presume that renewable energy in India the core of India’s energy future and their have to be streamlined to ensure that the
is here to stay and grow from strength to announcements have caught the attention appropriate incentives are in place to help
strength,” states Dr Ghosh. of investors around the world. Putting in the RE sector grow. The policy environment
place the details, however, is challenging,” should be in a phased manner, over the next
ll Way Ahead states Dr Engelmeier. He goes on to few years, allow the market to stabilise and
The initiatives taken by the government say that cutting diesel subsidies and eventually, allow market factors to drive the
are work in progress, and there is still a increasing power tariffs are important RE sector,” remarks Dr Ghosh.
lot more to be done. However, a positive achievements. “Renewable purchase On the other hand, making state
undercurrent is clearly visible in the obligations (RPOs), land reform, taxation, governments equal partners with the
Indian RE industry, and the industry skill development still need to be worked Central government should be of utmost
is optimistic that a transformation for on. In the end, if India becomes a well priority, as the projects will ultimately be
functioning economy with a healthy set up in states. Mittal applauds the role
power sector, there is no stopping of MNRE in creating a synergy with state
renewables. They just make too much governments. “Earlier this year, MNRE had
sense,” says he. requested respective state governments to
The target of installing 175 GW by come up with their own solar policies. This
2022 has definitely given the renewable is a welcome move as each state, depending
energy sector the much needed impetus on solar irradiation received, will draft
but needs to be supplemented by decisive conducive policies,” states he.
policy making, access to finance and The RE sector in India is witnessing
technological know-how. “There is an inevitable change, and the need of
need to create appropriate eco-system the hour is to press the right buttons.
for supporting RE entrepreneurs and The NDA government during its one-
stimulating growth is imperative. Active year tenure has shown intent for robust
steps also need to be taken to improve growth. The plan is afoot and the
the health of the energy distribution roadmap is being charted out. It remains
companies,” states Dr Ghosh. to be seen how the plan is implemented
He also stresses the need to strengthen on the ground.

20 | Energy Next | MAY 2015


Industry Speak | Wind

From words to action


In the wake of scaled up targets, the renewable energy industry and more
specifically the wind sector is upbeat. The wind industry is optimistic about
accomplishing the revised target by 2022. However, it needs the government
to take adequate measures to overcome the existing bottlenecks and work in
close coordination with the state governments. DV Giri hails the initiatives
taken by the government for the growth of the sector and hopes for their
proper on-ground implementation.
as promotion of wind and solar hybrid obligation (RPO) will help the renewable
systems, which will have combined success energy certificate (REC) market, which is
of the two large RE sources. currently going through a difficult phase. There
The re-introduction of the accelerated is need to find a way to make this successful.
depreciation (AD) and continuity of the Power needs to be treated as a
generation based incentive (GBI) has commodity and the government should
once again given a lot of impetus to the encourage ‘Open Access’ in the real sense
industry. Other initiatives, including inclusive of inter-state sale of power.
inter-state scheduling and forecasting, as The industry is concerned about the
well as re-powering, are equally welcome utterance of ‘competitive bidding’ in wind
by the wind industry. energy. Competitive bidding is a long-term
Now, the need of the hour is to make process, to be evolved with a policy. We
these commitments a reality. The have to consider the lessons that we have

T
investment is coming from the private learnt from other countries. Introducing
he wind power industry sector and mainly in the wind states. competitive bidding without a well
welcomes the Prime Minister While we appreciate that power is a thought out process and the involvement
Narendra Modi’s ‘MAKE concurrent subject, the industry requests of stakeholders would be as dangerous as
IN INDIA’ campaign, fully engagement of the Centre and the wind driving a luxury car without brakes.
supports it and is committed to it. states along with all the stakeholders to
The author is secretary general of Indian
The announcement of the National ensure that the targets are achieved. Wind Turbine Manufacturers’ Association
Democratic Alliance (NDA) government Mandating the renewable purchase (Views expressed by the author are personal)
to accomplish the target of 1,75,000
MW of renewable energy, out of which
1,00,000 MW has been alotted to solar
and 60,000 MW to wind, is a great
initiative and has given a tremendous
boost to the industry.
This was demonstrated at the first
Renewable Energy Global Investors’ Meet
& Expo (RE-INVEST), held in New Delhi
February 2015 and inaugurated by the
Hon’ble Prime Minister, Narendra Modi.
It is here that the investors submitted
their Green Energy Commitment
certificates with an aim to contribute
towards fulfilling this ambitious target.
It is heartening that the Prime Minister
of India, even at the International Forums,
has talked about renewable energy as well

May 2015 | Energy Next | 21


Industry Speak

An optimistic
outlook

There can be no doubt that solar energy is on a growth trajectory both in India as
well as globally. This is borne out by the double digit growth in USA in terms of
capacity addition, investment and employment generation in solar energy sector.
India too is on a growth spree, and the recent initiatives by the government aim for
new heights. Pranav R Mehta talks about the journey of solar in India and what lies
ahead in wake of measures taken by the NDA government

I
n India, Solar Energy saw an in 2010, the country has now reached a
impressive beginning, starting capacity of over 3,500 MW by 2015. A
with the first Ministry of New and significantly large part of this capacity was
Renewable Energy’s (MNRE) policy commissioned between 2011-2014.
of February, 2008, then the Gujarat policy However, in the last three years,
of January, 2009 and subsequently the beginning June, 2012, the solar power
Jawaharlal Nehru National Solar Mission growth momentum has suffered due
(JNNSM) of the Government of India in to policy uncertainties, inadequate
November, 2009. Subsequently, some other fund allocation and disbursal by the
states, notably Madhya Pradesh, Rajasthan, Government of India to MNRE, poor
Karnataka, Andhra Pradesh, Telangana, renewable purchase obligation (RPO)
Punjab and Tamil Nadu joined the race. enforcement, non bankability of renewable
While it started with near zero capacity energy certificates (RECs) and high Open

22 | Energy Next | May 2015


Solar

Access evacuation/grid related issues.


The NDA government under
ll Optimism Narendra Modi has not only
Despite the above mentioned setbacks in
the inter regnum, the country is set for a increased the JNNSM target five
quantum jump for renewable energy in
general and solar energy in particular.
times to 100,000 MW, but also
Prime Minister Narendra Modi-led followed it up by fairly good
NDA government has shown resolve and
determination in taking renewable energy
encouraging announcement
industry to new heights in the country. The and measures
target of 100 GW of solar power capacity by
2022 is an ambitious and aggressive step. India has a plan to install 100 GW ll Looking Ahead
Similar aggressive steps have also been by 2022, which means that it will have Despite existing challenges, the future for solar
taken by some states recently; notably by to install three times what Germany has energy sector in India is indeed very optimistic.
Telangana, Andhra Pradesh, Karnataka, achieved till date, and that too in the The NDA government under Narendra Modi
Haryana, Punjab, Madhya Pradesh and short span of seven years. The target is has not only increased the JNNSM target five
Tamil Nadu. A likely policy is also to be huge and so are the challenges. It is worth times to 100,000 MW, but also followed it up by
announced by Maharashtra. The aggressive mentioning that Germany could achieve fairly good encouraging ‘announcement’ and
approach adopted by states is in sync with this 37 GW target by higher solar tariff and measures. The government has taken many
the big plans of the Central government to the successful effort of Dr. Hermann Sheer, enabling steps such as 1,500 MW capacity
make India a global renewable energy hub. great grandfather “Bhishma Pitamah” of target given to NTPC for the next 5 years;
solar energy in the world. As a Member 1,000 MW to Coal India and similar steps for
ll Challenges of Parliament in Germany, he got a law other PSUs, Solar Park policy, investment in
Despite aggressive announcements and enacted which made it compulsory for strengthening transmission lines, Electricity
some enabling provisions by the Narendra “any green or renewable energy generated Act Amendment, a new Renewable Energy
Modi Government and some individual anywhere” to be taken by the grid. Act, etc.
states showing good signs of encouraging India also needs to have some effective A Solar Park Policy and Canal top Solar
solar energy growth, there are still huge mechanism that enables speedy growth of Projects Policy are some of the initiatives that
challenges and ground realities. In order the solar energy sector. will help boost capacity addition in quick
to realise those ambitious and aggressive Taking into account the journey of solar time. During the government’s mega event
targets set by the Government of India, energy in India, it may be observed that RE-INVEST 2015, a number of Indian &
it is appropriate and prudent that these with the best of entrepreneurship and International Banks/FIs pledged to finance
challenges and ground realities are funding, as well as favourable policies RE projects. State Bank of India committed to
better understood and evaluated, before available, no company, barring a few like provide `75,000 crore over the next five years
investment decisions are taken. Welspun and SunEdison, has succeeded in to support 15,000 MW of renewable energy.
Today, Germany is the leader in solar commissioning over 200 MW capacity in The Indian Renewable Energy Development
power capacity with more than 36 GW of the last 5 years. Those who succeeded had Agency (IREDA) also issued Green Bonds
installed capacity. the backing of a cash rich parent company. worth `500 crore and will continue to do so.
It is beyond any reasonable doubt that solar
Solar capacities of world’s is on a growth path globally as well as in India.
leading countries It can therefore be said that an approach of
cautious optimism needs to be adopted for
Countries Installed Capacity (GW) the growth of solar energy sector in India. As
Germany 36.3 discussed, there are hurdles and difficulties.
However, one can be prudently optimistic
China 18.3
in view of factors like the government’s firm
Italy 17.9 resolve, some enabling steps taken, individual
Japan 13.5 states taking bold initiatives and the readiness
USA 12 of the financial sector to support renewable and
solar energy sector projects.
Spain 5.34
France 4.67 The author is chairman, National Solar Energy
Federation of India
United Kingdom 3.4 (Views expressed by the author are personal)

May 2015 | Energy Next | 23


Industry Speak

Yet to get its due


For quite some time now, the biomass sector in India has been struggling
due to various policy and regulatory measures. Amitabh Tandon,
discusses the issues facing the sector today, the expectations that remain
unfulfilled and what the sector expects from the government in its
forward movement
biomass capacity established in the country and have received great attention from policy
towards closure and financial stress. makers with respect to future targets. On the
World over, the biomass sector is given other hand, in the biomass secto, not only has
maximum vantage and importance in the installed capacity been forced to close down
comparison to other RE sectors, simply due to continuous ignorance of its operation
because its operation requirement is different requirements, but there has also been hardly
from the others. In countries like Germany, any capacity addition in the last 3 to 5 years.
Sweden, and Finland, this has led to the Initially, there was hope from the biomass
biomass sector operating successfully. sector that the new government would look
Biomass has a variable cost in fuel, which into its problems and initiate suitable policy
changes due to various economic, financial measures for its revival and promotion.
and operational factors. Solar, wind and However, these expectations have not been
hydro do not have recurring fuel cost. met, and despite fitting into the ‘Make in India’
However, the entire fuel cost goes into rural philosophy and Prime Minister Narendra
economy. This is the biggest benefit of the Modi’s vision, the biomass sector has not been

I
biomass sector, and thus the sector needs able to attract the desired attention.
n its first year, the new government to be looked at and addressed separately by
arrived with hope and a renewed both regulators and policy makers. ll Waiting for better
desire for improvements. The list In India, policy makers and regulators have results
of expectations from each segment often overlooked the biomass segment and The only silver lining for the sector has
of the Renewable Industry was long, and that ignorance has hurt the real ‘Make in India’ been the ‘task force recommendation and
naturally, not every one of them could be met. sector. Wind and solar segments have made the amending of biomass regulation by the
Those who found that their’s wasn’t, were significant progress in the last 3 to 5 years, Central Electricity Regulatory Commission
disappointed. The biomass sector happens
to be one such segment, and today, it is
disappointed by the focus, or lack of, that it has
The disappointment stems more
received from the government in attending to from the fact that the biomass
its needs and operational requirements.
The disappointment stems more from
sector is complete and fits into
the fact that the biomass sector is complete the vision of ‘Make in India’. Its
and fits into the vision of ‘Make in India’. Its
operation provides strength and momentum operation provides strength and
to the rural economy by creating livelihood
opportunities for the rural people from its
momentum to the rural economy by
operations. If the biomass power plants creating livelihood opportunities.
are not able to operate properly, these
opportunities are also lost.
If the biomass power plants are
In the past, both policy makers and not able to operate properly, these
regulators have ignored the requirements
of the sector forcing the 1,250 MW odd opportunities are also lost
24 | Energy Next | MAY 2015
Biomass

(CERC)’. It has amended regulations including fluctuating due to various factors. In order to biomass sector. Our Regulatory system is
the ‘Fuel Price Fixing Mechanism,’ which has arrest the fuel price fluctuation and ensure overburdened and there is a need for policy
been the main hurdle for biomass operations the operation, GBI is needed for the biomass makers to look into it. The amount of time
and growth. CERC regulations are, however, sector in its operation and promotion. GBI is any matter takes in our current ‘Regulation
regarded only as guiding parameters on which already being provided to wind sector. system’ and process is very long. And biomass
the state regulators fix their regulations. sector where fuel has to be purchased every
The challenge is to provide a level playing l The revival of existing biomass day, any delay in correcting this disconnect is
operation condition for the biomass sector. The investment, which have all suffered losses only accumulating losses on a daily basis. It is
biomass industry is looking forward to certain due to disconnects in regulations and policy important for the government to introspect
policy measures to bring it back on track: measures and are in huge financial stress and analyse how this could be rectified.
through suitable policy initiatives measures The Ministry of Power must get an
l Implementation of the CERC amended from government. The sector and already independent report prepared on regulation
regulations for the sector by all SERCs. commissioned plants need a 3-5 year window processes and introspect how much time
CERC has amended some of the parameters of specific incentive to provide them with an it takes from the date the matter is filed to
based on a task force study, analysis and opportunity to recover their past losses. decision/ adjudication. Merely setting up a
recommendation, but there is still a struggle system and process of independent regulation
by SERCs to adopt the revised regulations. l Priority sector lending status to biomass system is not enough. It is important to
sector, since all biomass plants are located in ascertain whether the system is able to
l Initiation of suitable policy measures for rural backward areas of the country. The fuel perform its act properly for the process to
reducing the cost of funds for biomass sector it utilises is agriculture waste procured from deliver and if it is not doing that, then there
through interest subvention support from farmers and rural population, thus it enhances is a need to look into it and make necessary
funds allocation from Ministry/NCEF. A the income of farmers and provides livelihood changes and ensure its effectiveness.
similar scheme has been launched by IREDA in opportunity to the rural people. The biomass sector is optimistic and
support by Ministry from NCEF funds wherein is looking to the future with new hopes
30 per cent of the existing loan has been l The launch of the Biomass Mission for and interest , ready to contribute towards
converted to low cost interest of 2 per cent. The which the Ministry of New and Renewable realising the vision of government’s ‘Make in
biomass sector, which has been struggling to Energy (MNRE) has already prepared a vision India’ initiative. The sector requires specific
meet bank interest and repayment, requires a document. This is required to promote the focus for a period of 3-5 years to bring it
similar and specific scheme. sector and must be initiated at the earliest. back on track.
The government must make it its
The author is Secretary, Indian Biomass Power
l Generation based incentive (GBI) for priority to look into this disconnect, as the Association & MD, Transtech Green Power Ltd.
biomass sector, as the fuel cost keeps on biggest sufferer because of this flaw is the (Views expressed by the author are personal)

May 2015 | Energy Next | 25


cover

Not by Gigawatts alone!


India has set itself an ambitious target for generating solar power, which has
created a buzz in the green industry, visible at the recent Renewable Energy
Global Investors’ Meet & Expo (RE-INVEST). Dr Satish Balram Agnihotri
talks about the growing importance of renewables and calls for promotion of
innovation in this sphere
to a sizeable part of the subsidy burden in cent household use electricity as source for
two of our biggest subsidy guzzling sectors-- lighting is far less, compared to urban areas.
fertilizers (about `1 lakh crore per annum) These figures on access to electricity for
and petroleum products (about `60,000 lighting purposes do not reveal the story
crore). RE holds the key to considerable of the inequality in levels of electricity
inequality in the access and consumption of consumption. The relevant information is
basic energy as used in household lighting based on NSSO data in terms of levels of
and cooking, and the need for quality power electricity consumption in urban and rural
in rural industry. areas at an all India level and within a state.
But before looking at these RE specific One can clearly see that the energy
solutions, it is useful to take a look at the consumption in the household in the top rural
nature of these inequalities, and put the decile is comparable to that consumed by the
problem in perspective. household in the fourth urban decile.
Very interestingly, the divide between the
ll Access to electricity rural and the urban regions of a given state

T
for domestic lighting: tells one story, but there are also considerable
he leading lights of the India Inc, Most of us take electricity for domestic inequalities between states. The size of the
whether from the private sector, lighting as granted. In urban India this is two graphs has been kept proportionate to
public sector units or banks, a fair assumption. The number of districts the levels of energy consumed to give a ready
lined themselves up in placing with more than 85 per cent households using visual appreciation.
concrete pledges before the Prime Minister, electricity for lighting is high. However, our What these gaps clearly bring out is that a
committing themselves to the generation rural brethren may not be that lucky, given prosperous person in Jharkhand enjoys far
of green power. One must congratulate the that the number of districts where just 75 per less electricity compare to his counterpart in
Ministry of New and Renewable Energy
(MNRE) for the sheer magnitude, level and Percentage of households using electricity
reach of the event. for domestic lighting
It could not escape notice that the event
essentially became a Renewable Power Invest,
rather than Renewable Energy Invest. Even
within the power sector, the focus was almost
exclusively on the solar PV.
While there cannot be any dispute that
India should exploit its solar power potential,
MNRE needs to seriously ask itself whether it
has to remain just Solar MW centric, that too
grid oriented, or expand to other RE sources.
Does power availability in itself ensure access,
equity or efficiency? More importantly, does
it address the requirement of energy for >85% >75%
cooking, domestic lighting, industrial heating <85% <75%
and decentralized availability of power?
Ironically, renewable energy holds the key Data Source Census 2011

26 | Energy Next | May 2015


Expert Speak

economics becomes even more attractive and


saves subsidy and foreign exchange on import
of phosphetic fertiliser.
It is important, however, to introduce
innovations in the bio-gas technology. Two
efforts are worth mentioning. The first is the
recycling of the water after separation of the
slurry into semi-solids and the liquid portion.
This has been successfully tried out by the
Bharatiya Agro Industries foundation (BAIF)
using a small pump. The semi solid manure
can be phosphate enriched and sold.
A second promising innovation is in
the field of dry anaerobic fermentation at
higher temperatures, e.g. 48-50 degrees.
This has been tried out in the food waste
Haryana. In fact households in the second glaring in the use of fuel for cooking. digestion e.g. at Akshyayapatra Bangalore,
poorest deciles in rural Haryana enjoy better Even today, 63 per cent of the rural and and reduces the digestion time drastically
levels of electricity consumption compared 20 per cent of urban households continue to 17-18 days, thereby bringing down the
to households in the top prosperity decile in to depend on firewood with far lesser digester cost as well.
rural Jharkhand! combustion efficiency as compared to Bio MNRE needs to take serious cognizance
It is also important to notice that the lack gas or LPG. More disturbingly the LPG of such developments and promote these to a
of access to energy seems to affect specific penetration in rural areas is a paltry 11 per massive scale in tandem with the Ministries of
clusters. Let us take the example of lack of cent. Nearly two crore households depend Animal Husbandry and Fertilizer. The dairy
access to electricity for domestic lighting. upon cow dung cake as their fuel source. Yet, sector has come a long way and today the
Such households almost invariably use MNRE programmes on bio gas and improved Central ministry has a database of all private
kerosene for lighting. The map of India, shows cook-stoves are on the backburner! farms who have 50 animals or more.
the districts where 50 per cent or more rural Bio manure too represents the same story Likewise, the states have a database of
households use kerosene for this purpose. of a meritorious source being looked down all “Progressive Farmers” supported by the
Data from Census 2011 indicates that upon as subsidy. A 2 cubic meter bio-gas plant scheme of the Ministry to keep at least 10
there are about 8 crore households in the generates equivalent of about 80 kg of urea pedigree cattle. All these must be covered
country still using kerosene as a source for therefore saving about `1,000 of subsidy per with bio-gas plant on a saturation basis. For
lighting. A recent survey, done in the course annum based on urea subsidy of about `12 this, the MNRE needs to think in terms of
of IIT Bombay’s programme for providing per kg. If Department of Fertilizer provides scale and go for a tender-based approach
1 million solar lamps to students who study additional subsidy of `3,000 for a 2 cubic for installation of bio-gas plants in a lot of
using kerosene lamps (supported by MNRE), meter bio-gas plant they will start saving 50 or 100 plants with a 5 year O&M cost
showed that a household typically uses 30-35 `1,000 per annum, year on year from fourth being built in. This will lower cost, boost
litres kerosene per year for lighting purpose. year onwards. It is important to promote rural local employment and the use of
Government pays a subsidy of about `33/ bio gas on a massive scale and even allowing organic fertiliser. As the strategy for solar
litre effectively, giving a subsidy of `1,000 to bag digesters which may last only 10 years. PV has demonstrated, large and steady
`1,200 per family per annum. With the decision of promoting sale of the volume of orders does bring the costs down
If a onetime subsidy of `1,200 is given Phosphate Rich Organic Manure (PROM) and reduces, if not eliminates, subsidy.
instead to these households for a modest through the fertiliser industry, bio gas The lack of push to the improved cook-
solar home lighting system, the saving on the
kerosene subsidy for the next 5 years (which is
the battery life) will be `6,000 or a 400 per cent
RE holds the key to considerable
return on investment!! This one time home inequality in the access and
lighting subsidy is not, therefore, a charity. It is
an investment which must come from Ministry consumption of basic energy as used
of P&NG rather than from MNRE. It is also
worth noting that the annual subsidy bill on
in household lighting and cooking,
kerosene is around `30,000 Crores and the and the need for quality power in
MNRE annual budget is about `2,500 crore.
The Bharat – India divide above is equally rural industry
May 2015 | Energy Next | 27
cover

stove programme is another anomaly given Districts with>50% rural should have. A probable impediment is
that even today 10.5 crore rural and 1.5 crore homes using kerosene lack of standardisation and upgradation
urban households use firewood as fuel for of technology. Thanks to the stringent
cooking. This has a consequent impact on requirement of the telecom tower sector,
the environment and poses health hazard to gasifiers with improved specifications are now
mother and children. Use of other biomass available. All that the MNRE needs to do is to
like cattle dung and crop residue pose even create specifications, develop vendor base
bigger health hazards. Ironically, even in Delhi and offer a line of credit. It will be tragic if
over one lakh households use firewood. the sector does not take off.
MNRE has remained preoccupied We have not touched upon a huge sector of
with creation of standards and stringent generating Gigajoules through solar steam and
(some feel impractical) conditions on the hot water stored at high pressure for industrial
cook-stoves they want to support. What we and institutional usage. There is a need to
need is a nuanced approach. We need to address this need as the current practices involve
promote portable forced draft cook-stoves a sub-optimal use of fossil fuel. Besides, solar
wherever use of fire wood and availability thermal technology is much more compatible
of electricity coincide, like they do in hilly with the philosophy of ‘Make in India’ and
Source: Agnihotri and
areas, urban areas and the north eastern Maithani 2015 (ibid)) needs shorter loan tenures as it reduces carbon
states (Agnihotri and Maithani, 2015 ibid). footprint. But it is also a massive topic and need
Likewise, we need to push for chimneys to be debated separately.
using earthen chulha in coastal areas where economically viable. These applications To sum up, the excessive emphasis of grid
there is stagnant air or inversion condition. range from foundry, aluminum-based centric GW power generation primarily
The chimneys trap the smoke from industry, to biscuit, candle, perfumery through solar PV may not be the optimal
household chulhas. Even retrofits like iron making, sodium silicate and glass policy for the MNRE to pursue. It shifts the
grates and twisted tapes can, if optimized manufacturing and dyeing / silk reeling focus away from the much needed emphasis
for a local terrain, improve the efficiency of and the ubiquitous puffed rice making. In on issues of energy access, inequalities thereof
cook-stoves substantially. fact, in some cases, the payback period and the issue of efficiency.
We finally come to biomass gasifiers. without subsidy is claimed to be between To partly rephrase the great Urdu poet Faiz:
There is a huge scope for use of these 6-24 months. Biomass gasifiers also serve
‘aur bhi gham hain zamaane meiN Gigawatt
gasifiers at a small scale (typically from the purpose of boosting the manufacturing
ke siwa
10-500 KW). In the telecom tower sector sector, creating local skilled employment raahateiN aur bhi haiN faqat Grid ki raahat
itself, 4-5 lakh reliable, remotely controlled on a sustainable basis, saving fossil fuel and ke sivaa
and remotely monitorable bio-mass gasifiers paving the way for decentralised energy for mujh se zid kar ke Megawatts, mere mehboob,
could replace diesel gensets. Furthermore, villages where the grid has not reached. na maaNg’
for rural industrial applications, bio- It is ironical that these gasifiers have The author is former secretary, MNRE
mass gasifiers of less than 1 MW size are not been taken off on the scale that they (Views expressed by the author are personal)

Source: Agnihotri and Maithani 2015 (ibid)

28 | Energy Next | May 2015


Manufacturing

Needs to match
global standards
The NDA government intends to make India a manufacturing hub in the RE
sector. With a lot of focus being given to solar energy generation, the need for
creating a robust manufacturing base is of utmost importance. A report on the
current scenario of Indian solar manufacturing industry and the road ahead

P
rime Minister Narendra Modi’s Goyal, Minister for Power, Coal and News & installing 100 GW over the next seven
“Make in India” campaign attracted Renewable Energy, recently said in Parliament years under the Jawaharlal Nehru National
global attention at the recently that the government intends to make India a Solar Mission (JNNSM). “The ‘Make in
concluded Hannover Messe- the hub for renewable energy manufacturing. He India’ initiative is critical to India’s energy
world’s leading trade fair for industrial said that the Ministry of New and Renewable security. We missed the semiconductor
technology. It was heartening to see India Energy (MNRE) has been promoting private manufacturing revolution. We should not
striking a positive chord with the global investment in the sector through an attractive miss solar. Look at China; they have taken
investors, especially in the renewable energy mix of fiscal and financial incentives. giant steps and made rapid strides, and we
sector. Prime Minister’s call for making India It is important to mention that the should do the same,” states Subramanya,
a manufacturing hub reverberated across solar energy sector has been accorded solar expert and former CEO of erstwhile
the fair. A lot of enthusiasm was seen at the the maximum attention with a target of Tata BP Solar.
Indian pavilion, especially at the solar PV
manufacturing pavilion.
As the Government of India has The ‘Make in India initiative is
announced ambitious plans for the renewable
energy sector, the manufacturing segment
critical to India’s energy security.
automatically attains significance. To fulfill We missed the semiconductor
equipment and technological demands for
scaled up targets, the domestic manufacturing
manufacturing revolution. We
industry has to wake up to the occasion. Piyush should not miss solar
30 | Energy Next | MAY 2015
Solar

ll Battling for survival facility in Gujarat with an investment of opportunity and relatively increased ease
The objective of the JNNSM was to establish `25,000 crore ($4 billion). The other big of doing business. Experts feel that the
India as a solar energy hub, which not only players in the fray are China’s Trina Solar and government should encourage local sourcing,
talked about project development but also US-based First Solar, that are planning to set up adequate R&D activities, conducive policy
of creating favourable conditions for solar manufacturing facilities in India. This will also regime and create a mechanism where disbursal
manufacturing capabilities. A pertinent question boost the domestic Indian manufacturers to of incentives is done on a timely basis.
arises—do we have enough manufacturing wake up to the task. Subramanya says, “Government should
support/capabilities at the moment to fulfill the create focused manufacturing clusters and
demand? The answer is a big no! ll The Way out make it easy for entrepreneurs to establish
The Indian domestic manufacturing A number of manufacturers as well as ISMA manufacturing entities. We need big, medium,
industry performed well till 2010, before have voiced their concerns over the lack of small and industries of all hues. There should
the prices crashed down due to oversupply incentive provided to the Indian equipment be no negative bias against anyone. In fact there
in the European and Chinese markets. The manufacturers. They say that Indian solar could be positive bias for all.”
Indian manufacturers couldn’t stand up manufacturing is competitive but suffers due The government has made its intentions
to the stiff competition from these foreign to lack of incentives that are provided to solar clear for a robust solar growth, both in project
players with respect to quantity as well as cost. manufacturers in other nations. development and manufacturing segments.
Industry estimates show that India’s module Dr Tobias Engelmeier, Director The ‘Make in India’ initiative aims to create an
manufacturing share has continuously declined and Founder, Bridge to India, bats for environment that has a mix of both the domestic
since 2010. At present, the solar PV cell competitiveness rather than protectionism. and international flavours. The initiatives
manufacturing capacity in the country is close He states, “Indian manufacturers have to are work in progress, and there is a positive
to 1,200 MW, while in case of modules it comes show a credible strategy to become globally perception that transformation will happen.
to around 2,300 MW. competitive. That means becoming cost and On its part, the government has been
A ‘White Paper on Solar Manufacturing innovation leaders in their fields. If that is the trying to provide the best offerings to the
Sector’ brought out by KPMG in collaboration case, it is worth supporting them in their initial investment community. The stage is set for
with Indian Solar Manufacturers’ Association growth phase. If not, India is better off buying a major leap and it becomes imperative
(ISMA) in 2014 highlighted the need for cheaper and better equipment elsewhere.” for the manufacturing industry to respond
a holistic policy to encourage domestic This approach was evident when the NDA in adequate measure. They need to invest
solar manufacturing. It said that the solar government under Prime Minister Narendra massively, employ modern technology,
manufacturing industry was facing challenging Modi decided against imposing anti-dumping innovate and invest in R&D. They should keep
times due to various factors, including lack of a duties on cheap imports from certain on innovating rather than following short cuts
level playing field and various global factors. countries. Rather than imposing duties, it for profit-- think long term while delivering
In the wake of scaled up solar energy decided to scale up targets and also kept short term. “Strengthen quality standards and
goals, there is need to create a conducive aside some capacity to be built by sourcing formulate monitoring mechanisms. Product
environment for solar manufacturing industry, domestically manufactured modules. and project bankability are key factors.
with the involvement of both domestic and On the policy front, the investors would Showcase success stories, relish competition
foreign players. Earlier, in an interaction with like to see long-term stability, ample business and fear none,” concludes Subramanya.
EnergyNext, Tarun Kapoor, Joint Secretary
at the Ministry of New and Renewable
Energy (MNRE), had said that domestic solar
manufacturing in India was under stress due
to low prices in the international market and
competition from cheap foreign imports.
However, on an optimistic note he said that the
up-scaling of solar target to 100 GW by 2022
would infuse confidence in manufacturers,
as they can now expand capacities to attain
economies of scale.
A lot of enthusiasm has been noted in
recent times from foreign companies to set
up manufacturing units in India. US-based
SunEdison has been one of the first players
to grab the huge manufacturing opportunity.
It entered into an agreement with Adani
Enterprises to set up a solar PV manufacturing

May 2015 | Energy Next | 31


Collaboration

Make in India! Don’t


miss the Bus!

Photo: IGEF/S.Trappe
Lately, renewable energy has come to acquire a great deal of significance in India
as it becomes clear that it will help meet the rising energy demand in the country.
Germany is playing a pivotal role in helping India set up various renewable energy
projects as well as the green energy corridor. Christoph Ernesti talks about the
recent visit of Indian Prime Minister to Germany and the market potentials for RE
in India explored by Indo- German Energy Forum at Hannover Messe

I
ndian Prime Minister Narendra Modi he got support from his German colleague, welcomed spring in Germany with a yellow
came to the world’s largest industrial Chancellor Dr. Angela Merkel. costume. The atmosphere was friendly and
fair in Hannover Messe with a large In a joint statement, they pointed open, driven by mutual respect. The German
high rank business delegation to make out that their common objective is “to chancellor ended her speech with a friendly
a clear statement regarding the Indian market: encourage greater synergies between German reference to the Indian lion. So what has the
“Don’t miss the bus!” The “Make in India” engineering, experience in sustainable Indian lion to offer?
campaign intends to transform the country development, innovation and skills, and the Following Modi, the last big domestic
into a global manufacturing hub and to attract new opportunities available in India through market with more than 1 billion consumers
foreign investment from all over the world. ‘Make in India’, ‘Clean India’, Digital India’ and is waiting to be explored. India has one of the
You couldn’t miss out on “Make in India” in other initiatives towards achieving economic youngest populations in the world with a high
Hanover: there were billboards all over the growth and sustainable development”. Both motivated workforce willing to learn. Modi
place and even stickers on taxis and public were also special honourable guests at the assured every one of his personal support and
buses. India was the exclusive partner country “Indo-German Business Summit” on April 23, the support of his government. Due to Modi,
of the “Hannover Messe” and the Indian Prime the first day of the fair. Modi, usually dressed his government is on the way to rolling out
Minister was willing to win the hearts and in Indian ethnic wear, had put on a casual a red carpet for potential investors as he also
minds of German industry bosses. Therefore business suit, and the German chancellor knows that opportunities can become a threat

32 | Energy Next | MAY 2015


Hannover Meet

and that he has to create at least 10 million


new jobs each year for the young workforce he
Following Modi, the last big domestic
described so brilliantly before. market with more than 1 billion
So, the Indo-German Energy Forum (IGEF)
took up the chance to look more deeply into
consumers is waiting to get explored,
the market potentials for Renewable Energy
(RE) and Energy Efficiency (EE) in India. On
India has one of the youngest
April 14, IGEF offered in close collaboration populations in the world with a high
with the German Federation for Renewable
Energies (BEE) and the umbrella organization
motivated workforce willing to learn
of the Indian industry FCCI, a one-day manufacturers Centrotherm AG and Meyer faster and much bigger. Germany expressed
conference session on “Market Potentials and Burger Global AG. its willingness to further support India on her
Business Applications for Renewable Energies Another MoU was signed between the ambitious path into a green future by signing
& Energy Efficiency in India”. This allowed Indian IPP Welspun Renewables and the a Letter of Intent regarding an “Indo-German
German companies the opportunity to gain German iPLON GmbH on a 550 MW Solar Partnership”.
firsthand information about the Indian market solar project inclusive plant monitoring. MNRE Secretary Upendra Tripathy,
on RE and EE. Dr. Wolfram Klein, Director of the Federal and Director General Andreas Gies (BmZ)
The conference with high representatives Ministry for Economic Cooperation and jointly signed the document which says that
from German and Indian ministries and also Development (BmZ) gave a report on the Germany is willing to finance through KFW
the private sector offered a good opportunity progress of the Green-Energy-Corridors- a nationwide PV solar rooftop program. The
to build up new relations, both business to Project financed with a credit line of more final document shall be signed in October
business and business to government. “Don’t than 1 billion Euro by KFW, the German when Chancellor Merkel arrives in Delhi for an
miss the bus!” was also the message of Upendra Development Bank. official visit.
Tripathy, Secretary of the Indian Ministry for Like in Germany, the hot spots of renewable Of most interest for representatives from
New and Renewable Energies (MNRE) who energy generation in India are mostly wind the business sector were the two industry
opened the session together with Thorsten and solar, usually far from the centers of panel discussions during the day. High ranked
Herdan, Director General of the Federal demand. Therefore, new inter and intra state representatives of the Indian and German wind
Ministry for Economic Affairs and Energy transmission lines must be built. The overall and solar industry discussed the opportunities
(BMWi). Ivan Saha, President of Vikram Solar estimation of necessary investment for these of “Make in India”, with a special focus on
showcased what Indo-German cooperation Green Energy Corridors was about more manufacturing RE technology in India and
means directly after the start of the session. He than 5 billion Euros so far. But, as the Indian possibilities of cooperation between German
used the opportunity to sign MoUs between Government has set itself very ambitious and Indian companies regarding project
his company and the Fraunhofer-ISE-Institute targets with 100 GW solar and 60 GW wind investment. Most interesting for the German
as well as the German production equipment already by 2022, the grid too must grow even industry were the very positive statements by
most Indian green energy entrepreneurs. They
underlined the fast growth of the Indian solar
and wind market and showed their big interest
for cooperation on all levels of the value chain.
They were also convinced that the Indian RE
market is still in an early stage of development
and big enough for a lot of new players. The
Indian business community also expressed its
strong belief in PM Modi and his government.
The Modi government means growth to them
and they are expecting that existing barriers for
foreign investment or administrative obstacles
will be removed soon.
Over the whole day the session was well
attended. In the end, Welspun Renewables
hosted a reception which gave more room for
direct dialogue and exchange.

The author is Co-Director, Indo- German Energy


Forum Support Office
Upendra Tripathy, Secretary MNRE with Thorsten Herdan from the German Federal Ministry of Energy (Views expressed by the author are personal)
Photo: IGEF/S.Trappe

May 2015 | Energy Next | 33


In Conversation

Policy changes to
boost wind sector INVEST), when we asked about investment
plans and commitments of all the companies,
we received commitments worth more
than 36 GW from the developers. We also
received similar commitment from turbine
manufacturers.
In short, it appears that the capacity to
produce 60 GW of wind power by 2022 is
very much there. I am very optimistic that
we would be able to accomplish the target.
However, it is not sufficient to have the
money and the turbine, we also need to have
the buyer; we need to have the market to
purchase the wind power. We need to have
policies in place that will help in absorbing
the wind power into the grid.

Do you think that India is well


equipped to absorb the envisaged
power to the grid?
Absorption of wind power has to be from the
purchase point of view as well as from the
grid point of view. Basically, there are three
ways by which wind can be absorbed as far as
the market is concerned. One is that the state
The wind energy sector in India is gearing up to the where wind power is being produced, that
state’s renewable purchase obligation (RPO) is
task of achieving the target of installing 60 GW of being met by the wind. More or less, on a ‘must

cumulative capacity by 2022. Despite some tough run basis’ the entire wind power produced at
wind farms is being absorbed by that particular
phase over the past few years, the sector is looking state. This is one model in which things have
been working.
forward to a positive future. Varsha Joshi, Joint In high wind states such as Gujarat and
Secretary, Ministry of New and Renewable Energy Tamil Nadu, where the grid penetration
of wind is high and it is a substantial
speaks to Energy Next on various challenges and percentage of the total load, it is really

how the sector is poised to attain envisaged goals causing difficulty. In case of Tamil Nadu,
where the total requirement is hardly 11,000
to 12,000 MW, out of which 7,000 MW is

Q
The government has India has already installed around 23 GW wind and which is extremely variable, then
enhanced the installation of wind power capacity. So, what we are it will cause problem in the grid. Similar
target for the wind energy really talking about is an additional 37 GW situation is prevalent in Gujarat.
sector to 60 GW by 2022. What is of capacity by 2022. During the Renewable On the other hand, wind is a precious source
the plan of action to achieve it? Energy Global Investors` Meet and Expo (RE- of renewable energy and we cannot just do

34 | Energy Next | May 2015


Varsha Joshi

away with it by saying that it is a variable source the National Load Dispatch Centre (NLDC), to be state wise Supervisory Control and Data
or intermittent in nature. This approach cannot SLDC, or even the project developers. Acquisition (SCADA); and all wind project
be adopted, and we need to find a way so that I am very happy to say that at this stage we developers must agree to provide data. The
wind energy can be absorbed not only by that are in a situation where we know the kind of SLDCs will have to be equipped with the
state but also by other states. Hence, wind requirement that scheduling and forecasting forecasting facility and with enough capacity
power can be sold firstly through the state level will have. We have a good idea of what kind building they will be able to generate the
RPO limit by the state distribution companies; of results we can expect from it. The Central schedule properly.
then through open access within the state and Electricity Regulatory Commission (CERC) Thus, we see that Gujarat has a great model
outside the state; and finally for fulfilling RPO is also coming up with an alternative scheme and with the Tamil Nadu experiment, we hope
targets of other states. for inter-state transmission and more or less to set up a sustainable model which other states
Fulfilling the RPOs of other states could in the market, you would not find a developer can also replicate. Almost all the states are now
be through the renewable energy certificate who can say that he cannot schedule or forecast willing to come on board.
(REC) route or through the actual purchase of or ‘I am not willing to do it’. The SERCs will
electricity as well. Now that the ‘Green Energy hopefully bring similar regulations for intra- Are we seeking any international
Corridor’ is coming up, we would expect that it state transmission. assistance from the perspective
should be more and more feasible for the inter- So, now it is a matter of getting all the of scheduling and forecasting?
state transmission to happen and open access threads together and getting things started. A part of the Green Energy Corridor (GEC)
and inter-state sale of wind power to discoms We are also getting a pilot started with the project is under the GIZ and they have
of other states should be more practical. Indian Wind Power Association (IWPA) in prepared a detailed report after visiting states
which all the wind stations of Tamil Nadu where this will be set up. We have some
There has been a lot of talk about will be covered. This will be a joint effort of of the most prestigious institutions in the
scheduling and forecasting of National Institute of Wind Energy (NIWE), world related to scheduling and forecasting.
wind energy for stability of grid. which will provide the forecasting services, Participating in the scheduling and
What is the government doing in the Tamil Nadu Generation and Distribution forecasting is the Fraunhofer Institute,
that respect? Corporation Limited (TANGEDCO), which University of Oldenburg, and Ernst and
The most important thing without which at houses the SLDCs and the IWPA will do the Young. They are providing their expert
this stage nothing can happen is scheduling bulk of financing of the requirements. advice on the matter, and their technical
and forecasting. We are putting all our efforts Gujarat has already proved over the assistance will help us make use of the
to push towards a regime where scheduling last couple of years that scheduling and latest technology. NIWE has tied up
and forecasting is physically possible and fully forecasting is very much possible but the basic with Vortex of Spain for developing a
accepted by all the stakeholders, whether it is infrastructure needs to be in place. There has forecasting Model for India.

May 2015 | Energy Next | 35


In Conversation

Wind is a precious source of renewable In the Budget 2014-15, AD was


reinstated; however, it has
energy and we cannot just do away with been observed that there has
only been a minor increase in
it by saying that it is a variable source the installation figures. Why is
or intermittent in nature that so?
AD came in really late, around the month
What steps are being taken in-tariff (FiT). All three of them have of September 2014, and by then people
to ensure that the power a certain incentive attached to them. must have made their investment plans.
produced from wind energy However, AD is something which is given This can be one reason why it did not
and other RE projects is fed to such a huge list of components in cause difference either way. I probably feel
into the grid and not wasted? industries across the board, and is not only some impact of it will be felt next year.
The GEC project is one of the top priorities. related to the power sector. So, AD is a More importantly, I feel that rather than
We are certainly hopeful that National very general thing and we should not call it the incentive of the Government of India,
Clean Energy Fund (NCEF) clearances as an incentive which is only specific to the it is the policy of the state governments
happen quickly. From KfW side we are wind energy sector. Despite the fact that and the situation of the industry itself,
getting a lot of support and the projects are it has provided boost to the wind energy which drives the growth of the industry.
all ready from the side of the states. Apart sector, there was a time when there was The states which have had more conducive
from the states, the PGCIL is taking up a lot neither AD nor the GBI. There was decline policies got more investment in wind
of transmission related activities. It may be in wind installation but it did not stop. It power. Today, we see that Madhya Pradesh,
a temporary problem for a year or two, and was not that it would completely fall down Andhra Pradesh, Rajasthan have more
I do not expect evacuation and transmission or go away without incentives. hot destinations for wind power. It is the
to be a major problem. Scheduling and Also if we talk about FiT as an incentive, combination of the two, which is more
forecasting is absolutely crucial for wind then Tamil Nadu provides the cheapest important than purely the incentives.
power and we are working towards it. This power at `3.50. So, we cannot say that FiTs
angle will be well taken care of. are necessarily a huge favour which the In order to achieve the target
government is doing to the industry because of installing 60 GW of wind
The Indian wind energy sector it is basically a cost plus calculation and all capacity by 2022, there is
has primarily been an incentive of us are aware about it. GBI is also a limited need to install more than 5GW
driven industry. Don’t you think incentive. It is not something that it adds capacity every year. Are you
that it is high time that the up to a huge proportion per developer. I optimistic that the target will
industry becomes sustainable would say that wind energy to a great extent be achieved?
on its own? already stands on its own and once the RPO The transmission infrastructure takes
It is an incentive driven industry to enhancement happens and the open access much longer to be set up as compared
the extent that we are providing the becomes more feasible across the states, the to the wind farms. The Power Ministry
accelerated depreciation (AD), we are dependence on government incentives will has been chasing us to give them the
giving the generation based incentive reduce. I am confident that wind energy in transmission plan so that they can set up
(GBI) and we are providing the feed- India will stand by itself after a few years. the infrastructure at the earliest. In that

36 | Energy Next | May 2015


Varsha Joshi

context, the state governments have given to create a synergy between projects. Studies are being undertaken.
their respective wind installation targets. Central and state governments The off-shore policy is almost ready and
The states have the land, they have the to accomplish ambitious RE it will soon go to the Cabinet for the
capacity, evacuation is going to come up goals? approval. It is likely that by the middle of
and it is now really the question of how the Developing a synergy between the Centre next year we should be in a position to
wind is really going to be sold rather than and the states was discussed at length know how we are going to bid. At least the
anything else. at the recently concluded conference of basics should be in place by then.
power ministers in Guwahati. A lot of
It has been observed that side dialogues also took place with regard Do you think that RE-
a number of state utilities to resolving issues of the states. We have a INVEST-2015 has changed
are reluctant to sign power new body called Association of Renewable the perspective of the global
purchase agreements with Energy Agencies of States (AREAS), which community towards the Indian
the wind project developers, is the forum on which more dialogues wind energy sector?
giving out wrong signals to can take place. The states are trying to It goes without saying that RE-INVEST
prospective investors. What is talk to each other more and I am trying was a huge success and a phenomenal
government doing to address to personally visit each and every state to experience. It has given very huge visibility
that issue? find out what the issues are so that we can and the main thing is that it brought in
We are aware of the fact that the resolve it. new players. Wind already has a large
distribution companies (DISCOMS) are number of players in India and the kind of
not in very good shape so every state India announced its first off- expansion that we are looking at, we need
government is under pressure to meet shore demonstration project more players. I think on the whole RE-
the renewable energy targets as well as a few months back. What are INVEST encouraged more players to come
protect the finances of the DISCOMS. It government’s plans for the off- forward. We are looking forward to give
is ultimately the dialogue between the shore wind energy development them full policy support.
developers and the states which will in the country?
resolve the issue. However, we are doing We are trying to reach a situation as far How do you foresee the Indian
our best to facilitate the dialogue wherever as off-shore is concerned so that we can wind sector in the coming
it is possible. go in for bidding. While it is the very first years?
project, it should not be a very tiny pilot We are in the process of revising the
How do you rate the initiatives because the technology is already well wind potential and it is expected to be
of the state governments so proven. It is a matter of adapting, and completed soon. Everyone knows that
far, and what is MNRE doing we are likely to go in for medium-sized the potential is very high since we are
now going at 100 to 120-metre level. We
are expecting that the wind potential
report would give a lot of clarity about
the potential which will be mapped onto
the land. We are hoping to develop a
more precise data and the cost to the
government. I am hoping that this study
will also make a huge difference to the
overall setting up of the wind energy
projects.
We are also exploring the possibility
of solar-wind hybrid projects. The wind
potential report is also going to give us
some idea where the solar-wind hybrid
potential is higher. We expect it to be
better not only from the grid stability
point of view but round-the-year energy
generation will also be more stable. This
will help in improving grid stability and
give better output per unit of land. A lot
of states are showing interest in setting up
solar-wind hybrid projects.

May 2015 | Energy Next | 37


Innovation

Wheeling wind power


It is often said that necessity is the mother of invention. The students of Kalindi
College of University of Delhi mooted the idea of tapping wind at the underground
Delhi metro stations, after they witnessed the gush of wind from a metro train that
passed while they were standing on the platform. Richa Kapoor takes a look at the
project, which also saw the involvement of Delhi Metro Rail Corporation

W
hile waiting for a train the sides of highways and then on the side of requires the use of petroleum products or coal
at the platform of an the railway tracks. However, we realised that and generates unwanted heat for the production
underground metro station neither would installing them on the side of the of energy. This also leads to the emission of
in Delhi, one feels the railway tracks was safe nor was the frequency various toxic gases and waste products, causing
strong gust of wind blow over one’s face as soon of the trains too high. It is only when, one day harm to the environment. Environmentalists
as the train arrives. However, did we know that while returning from college, we noticed that are of the view that at the present level of
this wind has the potential to generate green the wind at the underground platform of the exploitation, the coal deposits will last till
power at the metro stations? metro station was blowing at high speed that 2080. Whatever will be left over will be coal of
It is this option that a few students from we thought of utilising it to produce power.” poor quality with less than 40 per cent carbon
Delhi University’s Kalindi College decided to On how they chose the place to set up content—unsuitable for electricity production.
explore— the potential to convert the energy the turbines, Dr Punita Verma, Principal However, wind turbines are power
of these high velocity winds into electricity by Investigator of the project, said, “We generating machines which use wind as the
making use of a wind turbine. They arrived at surveyed different metro tracks and found source of energy to generate green power and
the idea of installing small wind turbines on the that an underground metro would be the hence green electricity.
side tracks of underground route in order to best place to install the turbines as the wind S A Verma, Additional General Manager-
tap the wind produced from fast moving trains speed was highest there with respect to Environment at the Delhi Metro Rail
and convert it into electricity. elevated metro tracks.” Corporation (DMRC), played a pivotal role
Speaking about the idea, Tulika, one of the in guiding the students as they undertook the
students involved in the project, said, “Initially ll Context project. “The fast blowing wind at the metro
we thought of installing wind turbines on both The conventional way to generate electricity station can be used to rotate the turbine,

38 | Energy Next | MAY 2015


students -DMRC collaboration

which turns the magnet inside a coil (a type


of generator). The wind has kinetic energy
(energy possessed by any moving body)
which is converted into mechanical energy
by the blades of the turbine. The turbine
then turns a generator which transforms the
mechanical energy into electrical energy. The
turbine is usually connected by a gearbox to
help control the speed with which it turns the
generator”, he said.

ll Objective
The objective of the project was to study the
feasibility of utilising the high velocity wind
that blows in the underground Delhi Metro
stations to generate electricity by using a wind
turbine and a generator or a battery for power
storage. The other objective is to perform
computer simulations for the amount of
power generated (in kWh per day per turbine)
from fast running Delhi Metro trains and the
involved costs.
Finally, the aim is to tap the power produced
for making the metro station/s self-sustainable
with regards to electricity.

ll Challenges
While undertaking any project, one is bound
to face various problems. However, hurdles did
Students of Kalindi College with wind turbine prototype
not deter these students from accomplishing
their task. Karishma Thakran, Madhuri Ganguly, Rashmi i.e in 2012, University of Delhi provided
According to Dr Verma, the biggest Jha, Ruchika Gupta, from the department of financial assistance worth `10 lakh. Then
challenge faced by the team was paucity of Physics of Kalindi College. `5 lakh was provided from November 2013
space. “The students were asked to use the None of the wind turbine companies were to March 2015. While there was sufficient
computer lab only after college hours, which willing to provide a customised turbine for money in the first year, there wasn’t enough
was not sufficient for the Herculean work the project. The students did not let their in the second. Dr Verma further opined,
involved. The internet facility was available enthusiasm die, working even harder to also “All expenditures have to follow general
for a limited time only and not where the build the turbine they required themselves. financial guidelines of the government which
computers were available in the department. Vernica, who was involved in the project, ties the hands of a scientist, hampering free
We had only one laptop and that too only in stated, “When we asked the vendors to send research or delaying it to an extent which is
the second year. Work progressed slowly on us turbine as per our need, we were not able to not conducive for the progress of science.”
personal computers and mostly at our homes. get it. So we bought a turbine on our own and
We also faced a paucity of space regarding redesigned it as per our requirement.” ll Execution of the project
all the material related to the project such The other challenge was the funding of the The road to the project’s execution was not
as stationery, models, research files, etc.” she project. During the first year of the project, easy. The entire project involved the study of
further added.
The point of having less space to execute
the project was reiterated by Tulika, Vernika, The fast blowing wind at the metro
Sanya and Sakshi, who worked on the project
day in and day out along with their other
station can be used to rotate the
principal investigator Dr Savita Roy. The other turbine, which turns the magnet
team members who also put in their heart and
soul in the project are Abha Sharma, Charul inside a coil (a type of generator)
Goel, Geeta, Himanshi Bansal, Kanika Tyagi, S A Verma

May 2015 | Energy Next | 39


Innovation | students -DMRC collaboration

turbines are not suitable for this place. So,


the students designed a turbine with the
following features:-
i) Light weight Rotor.
ii) Multiple blades.
iii) Cut in velocity 1.5 m/s at that particular site.
The most important aspect of the project
was to get adequate support from the
DMRC. According to the students of
Kalindi Kunj, initially there was reluctance
on the part of the DMRC to allow the
execution of the project. However,
after a period of time, DMRC decided
to support the project. Verma, a senior
official at DMRC, opined, “DMRC agreed
A 500 watt Horizontal axis wind to place the turbine on experimental
basis after assessing the risk. DMRC
turbine (HAWT) was procured after provided guidance on the placement

examining different types of wind where maximum wind energy is found


without compromising the safety of train
turbines which were available in operations. It provided other logistics and
support throughout the experimental stage.”
the market On an experimental basis, the wind
turbine was installed at the Chawri Bazar
different types of wind turbines, shapes and material cost: using suitable material, weight metro station. All data related to rolling
sizes of blades, optimal velocity of trains for minimization had to be carried out. The mass stocks, tracks, tunnel dimensions, wind
best results, type of battery required for power and fabrication of cost of blades depends on velocity and other technical parameters
storage, etc. An extensive literature survey parameters such as the amplitude of blade were shared with the students. Other than
was conducted to investigate the parameters vibrations. In order to increase the efficiency, the mentor, two experienced DMRC
influencing electricity generation from wind there was need for local and global stability of engineers were associated throughout
and the relevant data was collected. the blade structure and this could be ensured the experimentation stage to provide
Delhi Metro tracks and platforms were only if the weight was maximised. valuable inputs during the experiment.
surveyed. Wind velocity at different Delhi It was imperative to meet the strength Dr Verma of Kalindi College accepted the
metro stations was measured using an requirement of the blade structure. fact that adequate support was given to them
anemometer. After careful investigations, To meet the strength requirements of by DMRC which has also assured assistance
the length of the blade required for a wind structure, the optimisation of maximum in the near future. She stated, “Extensive
turbine was proposed to be 30 cm and the displacements of the blade in transverse support has been promised by DMRC in
power generated was calculated theoretically direction had to be carried out with the the future as regards engineering know
using the same. limiting condition that permissible stress not how, collection of further data and testing at
The choice of blades and their design were be exceeded. metro stations is concerned.”
decided keeping in mind that there should After the students undertook the survey Dr Verma, along with her team,
be minimisation of vibrations in blades to of Delhi metro trains, platforms and tracks, expressed their gratitude to their Principal
ensure efficient and appropriate designing they arrived at two possible positions for Dr Anula Maurya for extending support to
of blade structure. This would help in the the installation of wind turbines. A 500 the whole team.
reduction of losses due to vibrations. It would watt Horizontal axis wind turbine (HAWT) If the project is executed on a large scale
also contribute towards low cost and high was procured after examining the different in the coming days, it will not only lead to
stability. The natural frequency of blades had types of wind turbines which were available substantial reduction in fuel consumption and
to be different from the harmonic vibrations in the market. It was installed at one of environmental pollution but will also cut down
associated with rotation of the rotor. This was the underground metro stations under the electricity bill.
essential to avoid resonance. DMRC’s supervision. It was found that the It is worth mentioning that the project
The objective was to maximise the output blade length was too small to tap sufficient of the students was selected as the “Best
power generated, which in turn depended on wind to make the rotor move. The three Innovative Idea” by industrialists at
the optimum shape of the blades. bladed systems which are the most efficient ANTARDHWANI 2015, the annual cultural
There was a need to minimise the blade configuration in an open area of large wind festival of University of Delhi.

40 | Energy Next | MAY 2015


Event | Earth Day

For a sustainable cause!


ll PM Modi calls for various parts of the world at the Global the Creator: the Earth is an environment
protecting Earth Citizen 2015 Earth Day event on the to be safeguarded, a garden to be
On the occasion of Earth Day, Prime US National Mall, in Washington DC. cultivated.”
Minister Narendra Modi in his tweets The Global Citizen 2015 Earth Day was Francis added, “The relationship
to the nation said: “Caring for the organized by the Earth Day Network and of mankind with nature must not be
environment is an integral part of our Global Poverty Project to educate and conducted with greed, manipulation and
ethos. India can truly show the way to the energise people to support development exploitation, but it must conserve the divine
world in mitigating climate change.” and environmental issues. harmony that exists between creatures and
“Earth Day is the perfect occasion On the occasion, musicians from China Creation within the logic of respect and
to reaffirm our commitment to keep and US performed an original score to a care, so it can be put to the service of our
our planet clean, green and focus on multimedia presentation. The objective brothers, also of future generations.”
sustainable development,” Modi said, was to convey the message that there is
adding that “We belong to a culture” that need to bring an end to pollution so that ll NASA celebrates Earth Day
believes in the mantra – “earth is our people could lead healthy life. On the occasion of Earth Day, the US
mother and we are her children. Caring space agency NASA, released some of the
for the environment is an integral part of most FANTASTIC images and a stunning
our ethos. India can truly show the way to ll Pope urges to safeguard Earth video of planet Earth as captured from
the world in mitigating climate change,” On the occasion of the 45th Earth Day, the International Space Station (ISS).
Modi said. Pope Francis said at the General Audience The US space agency urged the people
in St. Peter’s Square, “ “I exhort everyone to send them videos, messages, instagram
ll Ban Ki-moon bats for to see the world through the eyes of God pictures celebrating our world, with
sustainable future the hashtag #NoPlaceLikeHome. NASA
UN Secretary-General Ban Ki-moon created a Facebook page dedicated to
called on the global community to “build the #NoPlaceLikeHome project and also
a sustainable and resilient future” on provided full coverage on its redesigned
International Mother Earth Day web site.
Wednesday.
“We can never outgrow ll Suzlon marks Earth Day
our reliance on Mother Suzlon marked the
Earth,” said Ban in International Earth Day
a message to mark to increase awareness on
the day. “This protecting the planet
dependence makes and appreciating Earth’s
it all the more natural environment.
astonishing that Speaking on the
we have allowed occasion, Tulsi R Tanti,
rapid and often Chairman, Suzlon
unwise human Group said, “We believe
development to that environment
disrupt so many of sustainability is the
the delicate systems only way to shape and
that have functioned protect our future. The
harmoniously for initiatives on the occasion
millennia.” of International Earth Day
are small steps to encourage
ll Musicians celebrate our employees to come together,
Earth Day towards building a sustainable and
Government officials from different favourable ecosystem to provide better
countries joined top musicians from world to our children.”

May 2015 | Energy Next | 41


State Perspective

Sunny side UP
To fight acute power shortages and meet the increasing
power demands, the Uttar Pradesh government has
embarked on a renewable energy drive, with special focus
on solar energy. The state is working towards creating
conducive environment for private sector investment.
Energy Next reports

A
t the Hannover trade fair in meet its increasing power demand. The state adds a further impetus to the whole initiative,
Germany, the Uttar Pradesh is among the top consumers of electricity calling for setting up of rooftop solar PV
(UP) representatives, led by per annum, and the demand is increasing systems for self consumption, the surplus
Chief Minister Akhilesh Yadav, at an average rate of 12 per cent. In order to power from which can be fed into the grid.
promoted the cause of solar and other forms address acute power shortage and bring down Uttar Pradesh New and Renewable Energy
of renewable energy in the state. The Chief reliance on fossil fuel based power generation, Development Agency (UPNEDA) is the
Minister’s visit to the solar PV manufacturing the government has decided to harness solar designated nodal agency for setting up solar
pavilion at the meet clearly reflects the state’s power potential. power projects in the state.
intentions for solar power development. Uttar Pradesh has vast potential for
Yadav cited the state’s Solar Policy 2013 harnessing solar energy. Most parts of the ll Grid-connected projects
and Solar Rooftop Policy 2014 as potential state receive good solar radiation throughout under Solar Policy
vehicles to propel solar energy in the state. He the year with an average daily radiation The ‘Solar Policy 2013’ in effect till March 31,
also added that the state government has set in the range 5.0 kWh/ square metre to 5.5 2017, aims to install 500 MW of solar power
aside `29,000 crore for the renewable sector. kWh/ square metre. According to data from capacity by 2017; a good target in wake of the
A major share of this amount has been set for the Ministry of New and Renewable Energy dismal performance in solar energy in the
solar energy development. (MNRE), the estimated solar power potential state. Solar power plants approved, installed
The state government had also made a in the state is around 23,000 MW. and commissioned during this period will
strong pitch for investment in solar energy The state government launched ‘Solar be eligible for benefits from this policy. The
during the first Renewable Energy Global Power Policy Uttar Pradesh 2013,’ which minimum capacity of solar project eligible for
Investors’ Meet & Expo (RE-INVEST-2015), offers numerous incentives to solar power incentives is 5 MW.
held in New Delhi from February 15-17, entrepreneurs and companies to set up In the first phase of bidding, a total of
2015. In the presentations made by the solar projects both in the grid-connected 130 MW capacity project were allotted to
senior officials, the emerging opportunities and off-grid space. The objective of the project developers through the bidding route
in solar energy were highlighted and solar policy is to augment solar power in August 2013. The Uttar Pradesh Power
investors were promised optimum support generation and consumption in the state and Corporation Limited (UPPCL) will buy the
from the government. contribute towards sustainable development. power generated at the solar power projects
It also intends to attract investments in at quoted tariffs that range from `8.01 per
ll Potential & opportunity manufacturing, research & development in unit to `9.33 per unit. The power purchase
Uttar Pradesh, the largest state in India as far solar energy sector. agreement (PPA) will be for a period of 12
as population is concerned, is struggling to Besides this, the ‘Solar Rooftop Policy 2014’ years and can be extended for another 13 years

42 | Energy Next | April 2015


Uttar Pradesh

on the willingness of project developers about `8.93 per unit to `9.33 per unit. As per potential using the unutilised space on
average pool price cost (APPC) prevailing in the proposal, these projects are also to be rooftops and wastelands around buildings.
eleventh year of agreement. All the allotted set up in the Bundelkhand region, with a The primary objective is to fight erratic
projects in the first phase are being developed commissioning deadline of September 2016. power supply by bringing down the
in the Bundelkhand region of the state, and it is reliance on grid power and doing away
estimated that around 90 MW of projects will ll Grid-connected rooftop with diesel gen-sets. This move will also
be commissioned by June 2015. solar lead to creation of skilled manpower and
In the second phase, a total of 105 MW The Solar Rooftop Policy 2014 aims to employment opportunities. It is proposed
capacity were allocated to five project harness the huge solar power generating that the solar rooftop systems up to 50
developers in January 2015, and PPAs kW will be promoted under ‘net energy
signed by UPPCL at the price range between metering’ mechanism and those above 50
kW will be promoted under the ‘net energy
billing’ mechanism.
Features of the The net-metering policy aims to promote
Solar Policy deployment of rooftop solar PV plants
 Targeted capacity installation of for captive/self-consumption purposes in
500 MW grid-connected capacity residential areas, government offices, state
by 2017. government owned or aided institutions.
 Single window clearance through The policy allows the solar rooftop owners to
nodal agency UPNEDA. integrate their rooftop systems with the grid so
 UPPCL to sign PPA with successful bidders for a period of 12 years. that the excess power left after consumption
 PPA’s extendable for further 13 years on prevailing APPC in the 11th year of PPA. can be fed into the distribution grid.
 13-month time limit for commissioning of projects up to 25 MW; and 18 months UPNEDA is the nodal agency for
for projects above 25 MW. implementation of grid-connected solar
 Nodal agency to facilitate allotment of suitable land/space in control of state
rooftop systems in the state. The nodal
government or its agencies.
agency will help avail subsidy from Central
 State to bear expenditure on construction of transmission line & substations.
 All incentives available under Infrastructure and Industrial Policy-2012. government as well as assist in empanelling
 Special incentive on case to case basis for solar farms where investment is more system integrators, identifying feasible
than `500 crore. sites/roofs, allotting solar power capacities,
recommending and specifying fee and

April 2015 | Energy Next | 43


State Perspective | Uttar Pradesh

The policies not only intend to promote


power generation from solar power proj-
ects, but also aim to promote local manu-
facturing facilities and support employ-
ment opportunities in the process
charges and obtaining approvals from programmes in the off-grid segment to provide
empowered committee. energy access in the rural and remote locations.
The government aims to achieve a target The programmes on solar street lighting
of installing 20 MW of cumulative capacity systems, solar power packs for poor families,
in the grid-connected rooftop solar segment solar pumping systems for irrigation, solar
by 2017, which happens to be the operative mini-grids, village electrification, etc have been
period of the policy. The target for public going on in the state.
institutions is 10 MW while equal capacity has According to government data, over 88,000 entrepreneurs. Battling with acute power
been earmarked to private institutions. The houses developed under Dr Ram Manohar shortage and erratic power supply in remote
target of 20 MW is termed by several experts Lohia Awas scheme for poor families have been and rural areas, the off-grid solar application
as a meagre target, however, the government electrified through solar power packs of 120 is turning out to be the best alternative for
has assured them of periodic revisions as and watt capacity each. Likewise, more than 1 lakh meeting the lighting and cooking needs of the
when required. solar street lighting systems have been installed people in an efficient manner.
in rural areas for community lighting.
ll Off-grid solar The off-grid/decentralised solar ll The road ahead
Besides aggressive plans to tap solar potential applications are not only vehicles of energy The primary objective of the solar grid-
in the grid-integrated space, UP is access in rural areas, but they also open up connected policy and rooftop policy is
also running several huge investment opportunities for technology to promote generation and use of solar
providers, product manufacturers and social energy through an appropriate investment
climate which could stimulate private sector
participation. The policies not only intend
Features of Rooftop to promote power generation from solar
power projects, but also aim to promote
Solar Policy local manufacturing facilities and support
 Policy to remain in force till 2017. employment opportunities in the process.
 Targeted capacity is 20 MW by 2017. The state government is trying to address
 Public institutions & private institutions to the energy security concerns by using the
contribute 10 MW each.
vast solar potential that exists across the state.
 Rooftop PV systems to be integrated with
The respective policy initiatives in the grid-
distribution grid.
 Net energy metering for systems up to 50 kW. connected, rooftop and off-grid segments are
 Net energy billing for systems above 50 kW. a means to enable capacity building activity
 UPNEDA to facilitate deployment of projects. with optimum utilisation of solar technology in
generating clean and sustainable power.

44 | Energy Next | April 2015


Interview | Sunil Sikka

LED: Effective future


lighting solutions
With pro-active steps taken by the government, Indian lighting industry
is poised for an unprecedented growth. Sunil Sikka, President – Havells
India Limited and currently President of Electric Lamp and Component
Manufacturers’ Association of India, speaks to Energy Next about the current
status and future of LED lighting in India
India so far? government has taken everyone by surprise.
Consumers understood the importance Under the leadership of Prime Minister,
of energy efficiency and India became the Narendra Modi, the Government has initiated
second largest manufacturer of CFLs in the a large scale programme on 5th January, 2015
world after China. LEDs have entered the which entails replacing GLS lamps with LED
market 2-3 years back but we can already retrofits and replacing them with LED street
see clearly that they shall not only drive and light fittings in a phased manner.
dominate the lighting market but also help in With this initiative the demand has been
growth of the market significantly by 2020. created, while the Industry has yet to gear
LEDs are going to marginalise all other light -up to meet the enhanced demand.
sources and become synonym of lighting in
the next five years. How do you rate the LED
I think the change came too briskly and manufacturing in India as
caught the industry napping while most compared to other global

Q
How do you see the of the manufacturers were stuck on with markets?
evolution of lighting conventional lighting. Pro-active action by A retrofit LED lamp can be divided in three
industry in India? Do you
think that the LEDs are the real
lighting solutions for future?
Solid State Lighting has been evolving over
the years. However, application in general
lighting has found acceptance only 3-4
years back. This happens to be disruptive
technology as it scores over the conventional
lighting both in efficiency and longevity.
The pace of change all over the world has
been higher than what was expected initially.
You would recall that in the 1990s, Compact
Fluorescent Technology came into being all
over the world. However, it became popular
in India ten years later when the Indian
Lighting Industry geared up its manufacture
of quality lamps and restriction were
imposed against low cost Chinese imports.

How satisfied are you with the


development in LED lighting in

May 2015 | Energy Next | 45


Interview

major parts. First part is LED Chip, Lens & domestic market, as well as export potential should be compulsory rather than voluntary.
Optics. While second part is housing/heat due to our devalued currency.
sink, which dissipates the heat generated, the The cheap LED imports,
third part is the driver which is an electronic The light market is estimated to especially from China, are
circuit, heart of LED. grow to `21,000 crore by 2020, perceived as deterrent to the
Chip manufacturing is cost prohibitive where LED market will have a Indian LED industry. How do you
and is IP protected. Only a handful of share of around 60 percent. To assess the situation?
international companies are into chip achieve that target, what policy Once standardisation is in place, I am told
manufacturing, which contributes to initiatives are you looking that Bureau of Indian Standards has already
twenty per cent of the raw material cost forward to? released standard specification for LEDs
of a retrofit LED Lamp. Balance cost is Government is already working proactively in both for safety and performance. This
divided between housing, driver and optics. creation of demand, which is a very healthy is the first step; now we have to ensure
India can develop adequate competency sign. Understanding the need of Energy manufacturer/importer follow the set norms.
in manufacturing these items and can Efficient products, government should The Department of Electronics and
contribute over fifty per cent value addition encourage production by levying least GST Information Technology (DEIT) has
under `Make in India’ norms. and taxation to encourage Entrepreneurs/ also issued guidelines for registration of
If, the scale is right, there shall be Industry and ultimately consumers. manufacturing in India and abroad as
no comparative disadvantage to India mandatory requirement. I feel that this is again
manufacturing. We shall be as competitive What according to you are the a step in right direction to ensure quality.
as any other country. major bottlenecks in the growth of The need of the hour is to make these
the Indian LED lighting industry? standards for the country mandatory so that
Do you think that the `Make in The only temporary bottleneck that I see only quality products find their way to market.
India’ initiative will help the LED is that industry is behind the time lines
industry scale new heights? in terms of gearing up production and The Bureau of Energy Efficiency
I see no reason why it can’t. Our country has now that the Standards for Quality are in (BEE) is planning for star
the basic infrastructure of manufacturing, place, industry should ensure right quality labelling for LED lights.
availability of low cost skilled manpower and production and adherence to standards to However, it is yet to be decided
growing demand for the next five years from get best value of savings. Standardisation whether the programme would

I think the change


came too briskly
and caught the
industry napping
while most of the
manufacturers
were stuck up
with conventional
lighting. Pro-
active action by
government has
taken everyone
by surprise under
the leadership of
Prime Minister,
Narendra Modi Prime Minister Narendra Modi launching the scheme for LED bulbs in New Delhi

46 | Energy Next | MAY 2015


Sunil Sikka

be on a comparative level or amongst different stakeholders before all metropolitan towns for decision makers
endorsement level. What is the releasing this document. - Architects, Consultants and Builders, as
industry’s preference? well as spreading awareness about LED
To my mind, there are two ways to go about Havells India has forayed into products and advantages over conventional
it, if BEE can find a significant differentiating solar product manufacturing by light sources. Most of our members are
factor, which is measurable without any dispute acquiring stake in LED and solar advertising through media accelerating pace
then we should go in for comparative labelling product manufacturer Promptec of change, user experience and penetration
programme. If the difference is minute, then Renewable Energy Solutions. gradually would spread awareness further.
we should opt for endorsement labelling. Just What are company’s future plan
for instance, if there is a LED Lamp which in RE Sector? What role do you foresee for
gives light output of eighty lumen per watt and In terms of manufacturing capabilities, solar your company in the India LED
there is another lamp which gives hundred is something which is new to us. Promptec Industry by 2020?
lumen per watt, while there is third lamp is a company which is into solar lighting Havells is essentially a manufacturing
which is giving one hundred ten lumen per and they have been supplying equipment to company in Low Voltage Electricals and
watt, we should go in for comparative labelling. companies like, TATA BP Solar. They have Lighting. We have eleven plants in India
However, if all the lamps are between ninety also undertaken projects in street lighting on besides five plants in Europe and Latin
to hundred lumen per watt, endorsement a large scale in state of Gujarat, Maharashtra America. More than ninety five per cent
labelling makes better sense. and Kerala. products sold by us internationally are
They have adequate competency in manufactured in these plants. We have
The Indian Lighting Industry making LED fixtures and solar modules. set up two green field facilities in the
plans to bring down energy Hence, investment in Promptec has strategic space of LEDs. One at Neemrana for
consumption from the current intent to get access to right technology and manufacturing LED lighting fixtures and
18 percent of total consumption experience to be leveraged through large another in Noida for making drivers and
to 13 percent by 2020. How distribution channel of Havells. LED lamps. Besides this, we have bought
optimistic are you about this majority stake in a manufacturing company
target? Do you think there is enough in Bangalore which is into manufacturing
I am quite optimistic about it provided as an awareness about LED lighting in of LED’s and solar lighting. We are going
industry we are able to stop manufacturing India? What is ELCOMA doing to to use these manufacturing facilities for
energy inefficient products in a phased increase knowledge and usage domestic consumption as well as exports.
manner. The white paper has already been of LED lights? Philosophically, we want to use India
prepared by ELCOMA under vision 2020. With the help of members, we are manufacturing for efficient lighting solutions
There has been lots of brain storming organising symposiums/talks/exhibitions in internationally.

May 2015 | Energy Next | 47


SUCCESS STORY

Photo: Germi

State pioneers in solar


India, owing to its sporadic success before 2009, would have never imagined
‘Solar energy’ to be as its mainstream as in the present time. Hence, the
Government of Gujarat launched the “Gujarat Solar Power Policy-2009” in
January 2009. D Jagatheesa Pandian and Dr Omkar Jani talk about the
various initiatives that have been taken for the growth of solar energy

T
he Centre and many state
governments were exploring how
to scale up the green technology to
meet their objectives. The drivers
were many (i) developing a new and potentially
vast technology for energy generation to
reduce the country’s energy deficit, (ii) striving
towards energy security for the country, and
in the process, (iii) reducing greenhouse gas
emissions for a cleaner environment.
In early 2008, Gujarat too had identified
solar energy as a major thrust area to tap its
abundant solar resource and introduce its
marketability. Hence, the Government of
Gujarat launched the “Gujarat Solar Power

48 | Energy Next | MAY 2015


GUJARAT

Policy-2009” in January 2009. This policy not of farmland to be acquired from multiple 2,500 acres with an infrastructure to host
only targeted a solar installation capacity of 500 farmers. As not all the project developers multiple solar power plants aggregating to a
MW by the year 2014, but also had many well- were large corporate houses with infinite local capacity of 500 MW.
designed investor-friendly provisions. reach, and the process of land acquisition Not only was the concept of the ‘Solar Park’
For instance, Gujarat Energy Transmission being very local in nature starting from idealistic but also breathtaking since within
Corporation Limited (GETCO) bagged the negotiating with the farmers, this bridge had a short time span of 13 months , emerged an
complete responsibility of laying including to be gapped immediately. entire infrastructure guided by government
cost of power evacuation infrastructure One unyielding farmer with a miniscule agencies in parallel with 21 individual solar
(i.e. Transmission lines) from the solar parcel of land in the middle of a prospective projects totaling to 214 MW resulting into
developers due to their better preparedness project site meant either an infinite delay or ‘Asia’s largest Solar Park’.
to execute the project. relocation of the entire project. Further, as one Solar policies are incomplete without an
Above all, the tariff of Rs 15 per unit for would want solar projects to be on cheaper emphasis on development of human resource
the first 12 years and Rs 5 per unit for the next land without much agricultural prospects, it is and fostering employment generation. Gujarat’s
13 years (amounting to a levelized tariff of Rs likely that such land would be found in remote policy had it too. Not initiating any activity
12.54 per unit for 25 years) was aptly designed locations with limited infrastructural support. towards achieving such an objective remains
by front-loading it, to propagate project Hence, without a blink the Government of an option since someone at some level will
developers to pay off their loans. Under the Gujarat resolved to establish a ‘Solar Park,’ a be employed locally and the objective would
policy, power utilities of Gujarat signed power unique concept where it would establish and be fulfilled. However, the perspective was
purchase agreement (PPA) with 84 project provide developers with the required amount different. This first set of projects coming
developers in May and November 2010 to a of land including basic infrastructure such as through this policy was only a beginning, and
total capacity of 968.5 MW. road connectivity, electrical evacuation facility, the intention was to learn rather than achieving
However, above all it was the facilitation of water, drainage and various other services. a target. Hence, human resource development
the policy and the realisation that the devil lies Also, this was advantageous to the state as it and technology adaptation were treated as the
in the details that was going to be the key to would use unproductive wastelands as well foremost objectives in Gujarat’s case.
successful implementation. Many stakeholder as optimally use resources by establishing a Governments are not experts in technologies.
consultation meetings between project common infrastructure for multiple projects. On the other hand, technology providers and
developers were held, headed by the Energy Gujarat Power Corporation Limited, consultants are always received with a pinch
and Petrochemicals Department of Gujarat, a state government undertaking, was of salt by the governments. Hence, again, an
where the status of the projects were regularly selected as the implementing agency for the appropriate bridge was required between the
reviewed one-on-one including the challenges ‘Solar Park’. Most of the land for this park state government and technology providers to
coming their way. identified in the outskirts of Patan district advise the government and suggest terms that
A proactive effort was made by the state near a remote village called Charanka, would encompass the overall objectives so much
government to bring all administrative around 50 kilometers from the Indo-Pak so that to include sharing of risk.
stakeholders representing the state utilities, border, was government wasteland; while the Gujarat Energy Research and Management
revenue department, and infrastructure board private farmlands purchased there were also Institute (GERMI), which was created through
and so on to resolve the issues. The state barren and couldn’t be used for agriculture. a Memorandum of Understanding (MoU)
government also realised through the project The area earmarked for the park was about during the Vibrant Gujarat Summit of 2003
developers that substantial confidence needed
to be instilled among the Indian bankers. The
bankers viewed solar technology with a sense
of skepticism, contemplating on how a plant
without any moving parts and no apparent
fuel could keep generating power consistently
for 25 years! It was through numerous
meetings, knowledge dissemination and
assurances to the bankers that they opened
doors to financing the projects.
Similarly, through such stakeholder
consultations, the Energy and Petrochemicals
Department also realised early on that the
subject of ‘land’ was going to create issues
if not tackled proactively. A typical solar
plant of 5 MW would require about 25-35
acres, which translated into large numbers Photo: Germi

May 2015 | Energy Next | 49


SUCCESS STORY | GUJARAT

only did this model ensure sustainability of the


solar systems, but a whole new level of techno-
commercial sophistication was witnessed
due to the large volume stake of the Project
Developers. This model is currently being
replicated in other cities of Gujarat as well as
other states.
Another experimental idea of the then Chief
Minister of Gujarat, Narendra Modi, to tackle
two challenges, land and water, prompted the
state to engineer a demonstration solar plant
on one of the branches of Narmada Canal
Charanka solar park at Patan Photo: Germi
through its power generation company –
along with Pandit Deendayal Petroleum GERMI, which developed the curriculum for Gujarat State Electricity Corporation Limited
University (PDPU) took charge of the technical the study, got the curriculum approved by the (GSECL). This plant utilises the area on top
backstopping. A dedicated School of Solar approving council, trained 18 ITI teachers, and of the canal, thus saving land. Additionally,
Energy was established at PDPU to develop a set up the ITI laboratory; all this in 1 month, it would also drastically reduce evaporation
cadre of professionals towards understanding and that too during the month of Diwali! This of water due to the shade created by the solar
the technology through fundamental research curriculum is taught in 6 ITIs of Gujarat, which modules on top. A typical 1 MW solar plant on
and its associated master’s and doctoral are continually generating skilled manpower, a canal, which would span a length of around
programmes. One of the first milestones who are also exported to other states. 1 kilometer, would avoid evaporation of about
GERMI-PDPU achieved was to establish The criticality of land availability and its 90 lakh liters of water per year. Gujarat itself
a multi-technology 1 MW photovoltaic associated bottlenecks are well understood. has a canal network of 19,000 kilometers and
power plant for themselves to gain first-hand Hence, since day one, the state government had growing, while the aggregate number in India
knowledge on the nitty-gritties of setting up been exploring ways to utilise the already- is enormous. This plant is visited by experts
such a solar power project. This project was available area on rooftops to harness solar from not only the country but from all over the
established in the record time of 105 days and energy. Another advantage of generating world, and is also in the process of replication
served as a tremendous confidence-booster for electricity on rooftops is that the generated at other places all over the country.
all solar project developers. energy can be consumed directly at or around At the end of the exercise, Gujarat clocked
Today, the research at GERMI and PDPU the place of generation, thus avoiding the an aggregate of 605 megawatts of solar
is cutting-edge and in a short time they associated transmission and distribution installations by its first tariff deadline of 28
are already gaining global recognition. losses accrued over long distances as in the January 2012. To summarise, a 5-year target
GERMI provided the hands-on support conventional case. For the rooftop solar was achieved in 3 years! This was three times
ranging from conceptualising projects programme, a fundamental approach was of the total installed capacity of the rest of the
to comprehensive project management taken where it was decided to invite private country at that time.
to training of professionals both in the investments rather than utilising government Today Gujarat still leads the tally at
government and the private sector. GERMI funds. Hence, GERMI designed a public around 890 megawatts (compare this to
also provides policy and regulatory private partnership (PPP) model where the the total capacity of approximately 2,200
support to Gujarat, and is now starting to Project Developer would own multiple rooftop megawatts installed in India), the lead
extend its support to other states as well. solar plants on government and commercial which is mainly attributed to the initial
Such an arrangement of readily available buildings as well as private homes; pay a boost, enthusiasm and approach taken by
and dedicated knowledge pools meet rent to the building or home owner; and all stakeholders of the state at that time. The
the government’s requirements in record recover its investments by directly selling the learning from Gujarat’s initiative has played
turnaround times; in many cases, much solar-generated electricity to the distribution a vital part in the cost reduction of solar
less than the time a typical government company at a competitively-determined feed- projects in India, which stands at around
organisation would take to even select a in tariff. An innovative mechanism to ensure `6-7 crore per MW today. Above all a strong
consultant to start the work. the building or home owner’s commitment was foundation was established, the benefits of
One such example of quick turnaround is to offer them a generation-based rent rather which will be reaped by the entire country
the response to the request of the Directorate than a fixed rent. for a much longer time to come.
of Employment and Training of the state This model, which started out as an
D Jagatheesa Pandian is Chief Secretary,
government to establish its first Industrial experiment, turned out to be extremely Govt of Gujarat
Training Institute (ITI) at Patan to develop successful, was recognised among the Dr Omkar Jani is Principal Research Scientist
skilled workforce for constructing photovoltaic top ten PPP models of Asia Pacific by the at GERMI

power plants in that area. This task was given to Infrastructure Journal of the World Bank. Not (Views expressed by the authors are personal)

50 | Energy Next | MAY 2015


Bilateral Cooperation-Renewable Energy

RE-Newed vigour
The recent visit of Indian Prime Minister Narendra Modi to France, Germany
and Canada saw the signing of a series of memorandum of understandings and
other agreements, giving boost to the renewable energy and energy efficiency
sectors in India. Energy Next reports

P
rime Minister Modi is striving ll Germany of who will buy the power. We need to
hard to make India the leader in India, a partner country at the fair, organised bring down the cost of power, the cost of
the field of renewable energy as a renewable energy event on “Market input, cost of finance, cost of evacuation
well as provide 24x7 power to all Potentials and Business Applications for and transaction. RE-Invest 2015 was an
households. Renewable Energy and Energy Efficiency eye opener as it generated 273 GW of
Renewable Energy will play a pertinent in India” at Hannover. During the event, commitments in renewable energy, and a
role in addressing the energy security issues which was organised by Federation of huge interest from the private sector.”
of the country without adversely affecting Indian Chambers of Commerce and Thorsten Herdan from the German
the climate. Presently, India ranks fifth in the Industry (FICCI), Ministry of New Federal Ministry of Energy, while
world in the overall renewable energy capacity and Renewable Energy, Government speaking at the event, said, “We see a new
installations with 32,425 MW installed. of India and the Indo German Energy wave of change in India. RE-Invest 2015
However, the government of India has Forum, the German Federal Ministry demonstrated industry’s commitment to
set an ambitious target of achieving 175 of Energy (BMWi) and the German the Prime Minister’s goal of 24x7 energy.
GW of renewable energy by 2022, thereby Renewable Energy Federation (BEE), four We need to reshape the IGEF to meet
requiring a minimum investment of USD memorandum of understandings were signed. the needs of the new renewable energy
20 billion every year. Addressing the gathering, Upendra targets. Learning from each other’s
Germany, France and Canada are Tripathy, Secretary, Ministry of New and experiences will help in delivering the
looking at India as a promising market Renewable Energy, Government of India solutions to meet the targets set.”
for renewable energy development and an said “we can learn a lot from Germany. During the two industry panel discussions
answer to energy security issues. The challenge in India is the question – one on ‘Make in India’ for renewable

May 2015 | Energy Next | 51


Bilateral Cooperation-Renewable Energy

(i)Extension of credit facility by Agence


Française de Développement for India’s
Energy Efficiency Services Limited
(EESL) promoting use of LED lighting in
select Indian municipalities;

(ii)Arrangement on renewable energy


cooperation between the Indian Ministry
of New and Renewable Energy and the
French Ministry of Ecology, Sustainable
Development and Energy.

ll Canada
During his historic visit to Canada,
Prime Minister Narendra Modi met
his Canadian counterpart, Stephen
Harper. Both the leaders discussed the
need to increase bilateral trade and
energy and the second on Investment Sustainable Development and Energy. investment in the field of renewable
Opportunities in Renewable Energy, stress France is looking forward to cooperating energy. The two leaders appreciated the
was laid on bringing the small and medium with India in a big way in the field of solar steps that are being taken to strengthen
enterprises from Germany to India with an energy. Presently, the French firms are cooperation in the field of energy through
aim to give boost to the supply chain for engaged in the production of 10 per cent the Canada-India Ministerial Energy
the wind industry in India. Manufacturing of the solar electricity output in India. Dialogue as well as other mechanisms.
turbines and balance of systems is a big French President Hollande confirmed the The prime ministers of both nations
opportunity for collaboration in the wind target of AFD credit line of 1 billion euros agreed to further collaborate in areas
energy in India. Suggestions were made with over the next three years for sustainable such as energy efficiency and innovation,
regard to extending the potential of Indian infrastructure and urban development exchange of regulatory best practices and
renewable energy sector to technology in India and conveyed the commitment renewable energy,
development as well as training of manpower of France to partner with India in The Prime Ministers welcomed the
for renewable energy sector in India. implementation of the following projects convening of the next Ministerial meeting
The German speakers accepted the fact that launched by India for development of of the India-Canada Energy Dialogue by
India is one of the most attractive markets for renewable sources of energy: the end of 2015.
German companies and called for measures
to overcome regulatory and policy hurdles
that are posed by the state governments.

ll France
Prior to his visit to Germany, PM
Narendra Modi visited France, where the
leaders of the two countries discussed
steps to increase cooperation in the
sphere of renewable energy.
France lauded the ambitious target set by
the Indian government in terms of energy
access to all and the growth of renewable
energy. France is extending support to
India in harnessing solar energy. New Delhi
hailed the target set by French companies
aimed at developing 8 to 10 GW of solar
energy in India by 2020-2022.
The memorandum was signed between
the Ministry of New and Renewable
Energy and France’s Ministry of Ecology,

52 | Energy Next | MAY 2015


Perspective | REC

Electricity Amendment
Bill to boost REC market
Due to the lack of enforcement of renewable purchase obligation (RPO) and
reluctance of the obligating entities to purchase it, the Renewable Energy
Certificate (REC) market, particularly the non-solar one, has not had much
respite. KR Nair takes a look at the steps that have been initiated to ensure
compliance of the RPO
any year, the Commission may direct the forums that under the Electricity Act, 2003,
obligated entity to deposit into a separate fund the SERC had no authority to issue directions
such amount as the SERC may determine to non-licensees like CPP and OA to purchase
on the basis of shortfall in the RPO at the energy from renewable sources, and that only
forbearance price determined by the CERC. distribution licensee is obliged for RPO.
As notified by the SERCs, these regulations There are cases pending before some High
were already in place, but the reluctance of Courts and the Supreme Court, filed by the
the SERCs to strictly enforce it led to the CPP and OA consumers in this regard, as well
directions being given by the APTEL under as the amendment to the effect that “procure
Section 121 of the Electricity Act, 2003, which electricity from any market instrument
is binding on all the SERCs. representing renewable energy”, which
In the Electricity Act Amendment Bill, covers REC also in the Act. A higher penalty
2014, the “obligated entities” has been for non-compliance of RPO has also been
clearly defined as distribution licensee or provided in the amendment to the Act under
the consumer owning captive power plant Section 142, as per which, for non-compliance
(CPP) or the open access (OA) consumer, of RPO the generating company or licensee

T
which are mandated to “procure electricity may be penalised an amount not exceeding `1
he recent order of the Appellate from any market instrument representing the crore for each contravention and `1 lakh per
Tribunal for Electricity (APTEL), renewable energy sources”. This amendment day for each day the failure continues after the
directing all the State Electricity will overcome the arguments before certain contravention of the first direction. As against
Regulatory Commissions
(SERC) to fix the Renewable Purchase
Obligation (RPO) targets of distribution
licensees and comply with it, may give a
fillip to the REC market. As per the order,
the SERCs shall decide the RPO targets
before the commencement of the multi-year
tariff period, giving adequate time to the
distribution licensees to plan and arrange
procurement of renewable energy (RE) and
enter into a Power Purchase Agreement (PPA)
with RE project developers.
If the distribution licensee is not able to
tie up procurement of RE to meet the RPO
target, it may plan to purchase an REC to
meet its RPO target as per the provisions of
the Regulations. The order also says that if the
obligated entity does not fulfil the RPO during

May 2015 | Energy Next | 53


Perspective | REC

this, the present penalty on obligated entity is


limited to the amount of forbearance price of
REC for non-compliance of RPO.
The Bill for amendment to Electricity
Act was introduced in the Lok Sabha on
December 19, 2014, but was referred to the
Parliament Standing Committee on Energy
headed by Kirit Somaiya. The Standing
Committee sought comments from public
and the stakeholders. After getting the report
of the Standing Committee, the Amendment
Bill 2014 to the Electricity Act, 2003 would be
re-introduced and passed by the Parliament.

ll Renewable Generation
Obligation (RGO):
In the proposed Amendment to the Electricity
Act, it is provided that any new generating
company establishing coal and lignite based
thermal generating stations is also required The strict enforcement of the RPO as
to establish RE generation capacity of not
less than 10 per cent of the thermal power
well as RGO, with higher penalties for
installed capacity. This will be effective from
the date notified, after the amendment in the
non-compliance by the obligatory
Act. It also provides that any existing coal and entities, as provided in the amendment
lignite based thermal generating station, with
concurrence of the power procurers under the to the Electricity Act, 2003, will
existing PPA, chooses for setting up additional
RE capacity, which can be bundled, and the
certainly boost the REC market and
obligating entity which buys that power shall
be accounted towards their RPO. Though
develop more RE installations in India
for new thermal units, the setting up of of a motivated and vibrant industry, along for the entire Tamil Nadu Region. Once this
Renewable Generation Capacity is obligatory, with incentives and enabling infrastructure is model of forecasting is successful, it can be
for the existing thermal units, it is optional. required. There are also grid issues that result extended to other states, so that the backing
The RGO and the resultant generation in backing down of wind energy, particularly down of wind energy does not take place
of RE by thermal units, when purchased by in windy season. In Tamil Nadu, not much due to grid safety. However, a recent study
the Distribution companies will be counted investment in wind projects has taken place in presented by the Power System Operation
towards the RPO. There has been reluctance the last 2-3 years due to this backing down of Corporation (POSOCO) had shown that RE
on the part of discoms in the non RE states wind energy for reasons of grid safety. generation has not affected the transmission
to buy REC and they have maintained that This year, steps are being taken with the system as much as the variation in load and
they will buy only renewable energy when help of the MNRE, National Institute of Wind tripping of generation has disturbed the
it is made available in the state towards the Energy (NIWE) and Tamil Nadu Government grid stability. Hence, though wind energy
RPO. This will be a boon to such loss making to ensure forecasting and scheduling as an is infirm in nature, with proper forecasting
Discoms, in the non RE states, which are industry sponsored project, initiated by the and scheduling, and with setting up of the
otherwise required to buy REC towards the Indian Wind Power Association. ABT meters Renewable Energy Management Centres,
compliance of RPO. are being installed in all wind pooling sub- the entire wind energy generated can be
The strict enforcement of the RPO as well stations (around 136) along with modems integrated into the grid system.
as RGO, with higher penalties for non- with a central server at Chennai, enabling Earlier, many state discoms had argued that
compliance by the obligatory entities, as monitoring by a computer server located at they would purchase renewable energy only
provided in the amendment to the Electricity Tamil Nadu SLDC. This can procure first when it is made available in the state and not
Act, 2003, will certainly boost the REC market hand real-time wind generation data and RECs. The amendment proposed will take
and develop more RE installations in India. get the wind power forecasting to make care of the RPO and REC in the Act.
However, for achieving the ambitious RE effective scheduling and grid management
The author is VP, Indian Wind Power Association
targets set by the government, the presence during the windy season from June, 2015, (Views expressed by the author are personal)

54 | Energy Next | MAY 2015


Sectoral Watch | Solar

Grid-interactive solar
rooftop: A viable option
India has 124 GW of solar photovoltaic rooftop potential, and it would be key
to meet the government’s target of 100 GW solar capacity by 2022. However, the
potential can be harnessed only with the help of state governments who are coming
forward for the cause. Dr Arun Kumar Tripathi, talks about various aspects of the
solar rooftop system and its growing importance in the coming days
complex and the regulatory framework specified distribution losses
for respective States. These systems generate · Low gestation time
power during the day time which is utilized · No requirement of additional land
fully by powering captive loads and feed excess · Improvement of tail-end grid voltages and
power to the grid as long as grid is available. In reduction in system congestion with higher
case, where solar power is not sufficient due to · Self-consumption of solar electricity
cloud cover etc., the captive loads are served by · Local employment generation
drawing power from the grid.
ll Grid connected Rooftop
ll Capacity, roof area systems-Worldwide
required and cost Germany, USA and Japan are pioneers
The rooftop solar systems from 1 kWp upto in adopting grid-connected SPV rooftop
500 kWp or in combination can be set up systems. Germany has highest PV installed

G
on the roofs. About 10-12 sq.m roof area capacity of about 38.0 GW of which 71
enerating power in your own is required to set up 1 kWp grid connected per cent is in rooftop segment. Italy has
house was a wishful thinking rooftop solar system. The average cost of grid 13.0 GW PV installations with over 60
till a few days ago. However, connected rooftop solar systems is about Rs 75 per cent rooftop systems. In Europe of the
with the advent of solar rooftop per watt or Rs 7.50 crore per MWp capacity. total 51.0 GW PV installations, over 50 per
in India and with the government giving a cent is in rooftop segment. Feed in Tariff
lot of thrust to it, in the near future we can ll Advantages of Grid- is common norm in Europe while net-
hope that a system will be in place when Connected Rooftop Solar metering is popular in USA. In USA net
households would be able to produce power System metering is popular in 43 States but specific
from their respective houses. · Electricity generation at the consumption rules defer from state to state . Energy
Solar rooftop systems can be of two types center and hence savings in transmission and Policy Act 2005 of USA mandates all public
(i) solar rooftop system with storage facility
using battery, and (ii) grid connected solar
rooftop system.
In a solar rooftop system with storage facility,
solar electricity is stored in the battery and can
be utilized during night also when the sun is not
available. In grid connected rooftop or small
SPV system, the DC power generated from SPV
panel is converted to AC power using power
conditioning unit and is fed to the grid either
of 33 kV/11 kV three phase lines or of 440/220
Volt three/single phase line depending on the
capacity of the system installed at institution/
commercial establishment or residential

May 2015 | Energy Next | 55


Sectoral Watch

Under Grid Connected Rooftop and standards in this regard.


Category 2: Projects connected at LT level
Small Solar Power Plants Programme (400 Volts-3 phase or 230 Volts-1 phase)
The Projects with proposed installed capacity
against the total sanction of 356 MWp of less than100kW and connected of the grid at
LT level (400/ 415/ 440 volts for 3-phase or 230V
capacity, so far 45.0 MWp capacity has for1-phase) shall fall within this category.

been commissioned. ll Protection, if grid fails


electricity utilities to make net metering connectivity In case the grid fails, the solar power has
options available to all customers. California (iv)Concerned Electricity Distribution to be fully utilized or stopped immediately
has maximum installed onsite customer Company (DISCOM) agrees to allow feeding to the grid so as to safe-guard any
generated solar capacity of about 1000 MWp grid connectivity, replace meter with grid person/technician from getting shock
with 1over 1.0 lakh net metering consumers bi-directional meter and purchase the (electrocuted) while working on the grid for
from 115000 sites. electricity on feed-in-tariff or through net maintenance etc. This feature is termed as
metering arrangement. ‘Islanding Protection’.
ll Potential in India
According to a study conducted by TERI, a ll Grid connectivity levels ll Current status in India
potential of 124 GWp SPV Rooftop plants for rooftop systems Regulations
has been estimated in the country. This can The Projects fall within two broad categories The Central Electricity Authority (CEA)
be achieved through active supports from (i) the projects connected to HT voltage at has notified the (i)“Technical Standards for
the States. distribution network (i.e. below 33 kV) (ii) the Connectivity of the Distributed Generation
projects connected to LT voltage i.e. 400/415/440 Resources-CEA Regulations 2013” which
ll Requirements to set up volts (3-phase) as the case may be or 230 volts permits the grid connectivity of SPR rooftops
the system (1-phase). Accordingly, the projects may be and small solar plants with the grid and (ii)
To set up grid-connected rooftop solar systems: under the following two categories. Central Electricity Authority (Installation
(i) The shadow-free rooftop should be Category 1: Projects connected at HT level and Operation of Meters) Amendment
available (below33kV) Regulations, 2014 for standards and
(ii) The State should have conducive solar The Projects with proposed installed specification of meters.
policy to allow the grid connectivity. capacity of minimum 50 kW and upto 500 Twenty State/UT Regulators from Andhra
(iii) State Electricity Regulatory Commission kW and connected at below 33kV shall fall Pradesh, Chhattisgarh, Delhi, Gujarat,
has notified regulations for appropriate tariff, within this category. The projects will have Haryana, Karnataka, Kerala, Odisha, Punjab,
net-metering/feed-in tariff and the grid to follow appropriate technical connectivity Rajasthan, Tamil Nadu, Uttar Pradesh,

56 | Energy Next | MAY 2015


Solar

Uttarakhand and West Bengal, Andaman &


Nicobar, Chandigarh, Dadra & Nagar Haveli,
Department of Financial services has
Daman & Diu, Lakshadweep, Pondicherry
and Goa have so far issued these regulations
instructed to all Public Sector Banks
for net-metering/gross metering. to encourage home loan/ home
ll Inatallations
improvement loan seekers to install
Under Grid Connected Rooftop and Small
Solar Power Plants Programme against the
rooftop solar PV plants and include
total sanction of 356 MWp capacity, so far cost of system in their home loan
45.0 MWp capacity has been commissioned.
proposals
Incentives home loan proposals. So far, nine PSBs will be Rs 10 lakh per borrower. Rooftop
• MNRE is providing subsidy upto 15 per namely Bank of India, Syndicate Bank, also qualifies for such loans.
cent for selected categories of States and State Bank of India, Dena Bank , Central
consumers. Bank of India, Punjab National Bank, ll Executing Agencies
• Tamil Nadu and Andhra Pradesh Allahabad Bank, Indian Bank and Indian The programme is being implemented
have announced additional subsidy to Overseas Bank have given instructions to through multiple agencies for rapid
the individual beneficiaries. Haryana has extend loan for Grid Interactive Rooftop up-scaling in an inclusive mode.
made it compulsory to install 5 per cent of Solar PV Plants as home loan/ home These agencies are: (i) State Nodal
the connected load with Grid Connected improvement loan. Agencies(SNAs) (ii) Solar Energy
Rooftop Systems. Reserve bank of India has issued a Corporation of India (SECI) (iii) Channel
• Provision of concessional import duty/ notification(RBI/2014-15/573 FIDD. Partners including Renewable Energy
excise duty exemption for setting up of CO.Plan.BC.54/04.09.01/2014-15 April Service Providing Companies (RESCOs),
rooftop solar power plants. 23, 2015) which places Renewable Energy System Integrators, Manufactures of any
• Provision of accelerated depreciation and tax under Priority Sector lending Category. It component of the Solar Plants, Project
holiday for setting up of roof solar power plants. mentions about Bank loans up to a limit of developers, Vendors/ suppliers of solar
Rs.15 crore to borrowers for purposes like equipment, Reputed and relevant NGOs
ll Low cost Loans solar based power generators, biomass based etc. The Financial Institutions like
Department of Financial services has power generators, wind mills, micro-hydel National Housing Banks, Public Sector
instructed to all Public Sector Banks to plants and for nonconventional energy Banks Banks, Indian Renewable Energy
encourage home loan/ home improvement based public utilities viz. street lighting Development Agency (IREDA) etc. are
loan seekers to install rooftop solar PV systems, and remote village electrification. also coming forward in this sector.
plants and include cost of system in their For individual households, the loan limit The State Renewable Energy
Development Agencies, PSUs, autonomous
Chandigarh joins club of clean energy bodies, educational institutions, renewable
energy service companies, system
Aggregate capacity of 5.28 MWp Grid connected SPV Rooftop projects
have been commissioned on over 75 Govt Buildings including colleges, integrators, NHB, IREDA, SECI, etc. are
hospitals, schools, cycle stand, government offices etc. in Chandigarh. implementing grid-interactive rooftop
This has put Chandigarh on 3rd position overall in entire country among all solar systems on the country.
States & UTs in Rooftop Solar Plant installations. The entire 14 buildings
of Punjab Engineering College, Chandigarh have been solarised with Grid ll Future Plans
Connected Rooftop system. Government of India has proposed a target
Today, Chandigarh has joined the club of clean electricity producer in for 40 GW grid-connected solar rooftop
the country and is generating about 6.5 million units of Solar electricity installations in the country by 2022.
annually. All these plants are under net metering mechanism, so that, solar
energy generated is first used in the local building and excess, if any is sent
ll Conclusion
to grid. To ensure proper functioning, all projects have provisions for 10
Days are not far when every house will
year’s operation & maintenance support .
Chandigarh plans to add 5 MW aggregate capacity rooftop solar projects become a powerhouse, each commercial
in 2015-16. Joint Electricity Regulatory Commission for Goa & UT has entity will say a good-bye to the Diesel
notified a new Solar Tariff & Net metering Regulation 2015 wherein solar Generation set and every building will have
Tariff has been kept @ `8.52 per unit (kWhr). It is a very attractive tariff and the rooftop installations on its roof.
shall definitely motivate Private residents to go for solar rooftop plants.
The author is Director, MNRE
(Views expressed by the author are personal)

May 2015 | Energy Next | 57


MNRE NEWS

Piyush Goyal bats for strong grid RE & EE to


country, he has become more confident that
India will be able to achieve the target of 24x7
attain energy
power to all household by 2019. With respect
to grid infrastructure, Goyal said that he was
security
optimistic that India would never again face
the problem that occurred in August 2012.
Goyal informed the audience that the
government is expecting an investment of `3
lakh crore in the power sector over the next
four years. In an endeavour to provide power to
all households, the minister stressed that they
would ensure setting up of grid as well as micro
grids in every nook and corner of the country.
He stressed the government’s commitment of
increasing renewable energy generation in the D uring a recent visit to Indian
School of Business (ISB), Mohali,

P iyush Goyal, Minister for Power, Coal and


New & Renewable Energy, while attending
the inauguration of Gridtech 2015, stated the
country’s total energy mix.
The minister commended domestic and
international manufacturers and suppliers for
Piyush Goyal, Union Minister for Power,
Coal and New & Renewable Energy said
that in India today, around 280 million
need for India to set the transmission, sub- coming out with latest products and innovative people are devoid of basic electricity
transmission and the distribution system in technology. He specially acknowledged connections. The government’s dream of
place in wake of proposed increase in power the efforts of young entrepreneurs towards providing 24x7 electricity to all by 2019
generation capacity in the country. achieving Prime Minister Narendra Modi’s will help in addressing that issue.
The 5th edition of the international dream of providing 24x7 power to all Speaking at the graduation ceremony
exhibition and conference on new households by 2019. of ISB, the minister said that the problem
technologies in transmission, distribution, RN Nayak, CMD at PGCIL, endorsed is not related to the ability of generating
smart grid and communications was the government’s ambitious plan and stated power. The real problem, he added, is
organised in New Delhi by the Power Grid that it would require deployment of latest the non-availability of fuel, coal and gas.
Corporation of India Ltd (PGCIL) technologies in the field of transmission, This situation gets further complicated
The minister said that after seeing the distribution, intelligent devices, information when the power generated fails to be
capabilities of young entrepreneurs in the and communication technology. transmitted throughout the country.
The minister reiterated that the
government is not merely coining
No progress without green slogan about 24x7 power to all by 2019,

initiatives, says minister but is also taking concrete steps towards


realising that dream. He said that

P rime Minister Narendra Modi has


made it clear that there cannot be
any development by compromising the
24x7 affordable and high quality power
to every household and sector, and make
India diesel gen-set free by 2019. He said
renewable energy will play a great role
in country’s energy security, and that
he is looking forward to new financing
environment. Keeping with this idea, that the government has scaled up its models that may lead to decrease in
the government, is accordingly giving renewable energy target, with increased cost of renewable power. He hoped that
a lot of emphasis to renewable energy emphasis on solar energy. The target is India will become one of the world’s
generation. to install 100 GW of solar power capacity largest producers of renewable power,
Speaking at the conclusion of by 2022. and innovative financing models will
the two-day Conference of Power, The conference was organised to have to play a key role towards achieving
Renewable Energy and Mines in discuss major areas of concerns with that dream.
Guwahati, Piyush Goyal, Minister for respect to policy in the states. Apart from Stressing the need for adopting
Power, Coal and New & Renewable the minister, Upendra Tripathy, Secretary, energy efficiency measures, Goyal said
Energy, said that government is Ministry of New and Renewable Energy that his ministry is focusing on energy
promoting the generation of clean and also attended the conference and efficiency in a big way to bring down
environment friendly RE energy. discussed various issues pertaining to AT&C losses, which are as high as 25
The minister also stated that the aggressive deployment of renewable per cent.
government’s mission is to provide energy in states.

58 | Energy Next | May 2015


MNRE NEWS

Huge opportunity for grid-connected solar rooftop


A t a conference in New Delhi, Tarun
Kapoor, Joint Secretary, Ministry of
New and Renewable Energy (MNRE) said
regulators have issued connections and 17
states have issued policies with respect to
grid-connected solar rooftop installations.
that grid-connected rooftop solar power is Kapoor also added that the MNRE will
the most important single sector in India’s continue to work on options that will help
renewable energy plans, and also presents a consumers get cheap loans for setting up
big opportunity for all businesses. solar rooftop units.
The one-day conference was held Experts said that it would be interesting
to deliberate upon the challenges and to see how India becomes a global leader
strategies for the successful implementation in this sector without impacting climate
of the MNRE scheme for grid-connected change. Mohua Mukherjee, Senior Energy
rooftop solar power in India. The event Specialist at World Bank, said that they
was jointly organised by the MNRE and were interested in developing various
The Energy & Resources Institute (TERI). business models in India. Talking about
Indian government has an ambitious World Bank’s partnership with MNRE,
target of installing 40 GW of solar rooftop encouraged start-up businesses to come she said that the aim is to catalyse private
capacity by 2022. forward and invest in the sector. He funding through partnership with
In the keynote address, Kapoor informed the audience that 20 state commercial banks.

Solar parks to expedite India to chair


capacity addition IRENA Council
meet in Abu
P iyush Goyal, Minister for Power,
Coal and New & Renewable Energy,
Goyal stated that it would be the
responsibility of state governments to
Dhabi

I
while answering to a question in Lok make land available for setting up solar
Sabh, said that the scheme for developing parks. He added that the respective state ndia will chair the ninth meeting
solar parks will help in expediting governments will identify the land for of the International Renewable
installation of grid-connected solar the solar parks unless the implementing Energy Agency (IRENA) Council
power projects on a large scale. agencies have their own land. scheduled to be held in Abu Dhabi
The minister informed the Under this scheme, the Ministry of New in June. India has been nominated to
parliamentarians that the government and Renewable Energy will provide Central chair the meet on June 10-11, 2015.
has launched the scheme for Financial Assistance (CFA) of `25 lakh India is one of the founding
development of 25 solar parks in per solar park for preparation of detailed members of IRENA, which was
various part of the country over the project report, for conducting surveys, etc. founded in 2009 and is an inter-
next five to seven years. The solar Besides this, CFA of up to `20 lakh per MW governmental organisation with an
parks will have suitable developed or 30 per cent of the project cost, including objective to promote adoption and
land with all clearances, transmission grid-connectivity cost, whichever is lower, expansion of renewable energy in the
system, water access, road connectivity, will also be provided on achieving the member countries.
communication network, etc. milestones. The IRENA Council is the main
governing body of the agency
responsible for implementing various
decisions of the IRENA Assembly
that provides policy guidance.
Accountable to the Assembly, the
Council is composed of 21 members
who are elected on a rotating basis
with the view of ensuring the effective
participation of both developing and
developed countries.

May 2015 | Energy Next | 59


Book review | Energy Access

Achieving prosperity
through energy access
Almost 45 per cent of India’s rural population is devoid of access to modern
sources of energy, while over 85 per cent is dependent on biomass for its
cooking needs. In their book entitled ‘Achieving Universal Energy Access in
India- Challenges and the way forward’, Dr PC Maithani, Director MNRE,
and Deepak Gupta, ex-Secretary MNRE, attempt to look at the problems of
the present energy policy in so far as energy access is concerned and suggest
the way forward. A brief review

A
ccess to modern energy services is a prerequisite
for economic growth and human development.
The Johannesburg Summit on World Sustainable
Development in 2002 recognised this as the most
important component in achieving Millennium Development Goals.
The book is critical of the fact that there has not been much concrete
action globally with respect to energy access, especially considering
both its acknowledged importance and the scale of the problem.
The book highlights the enormous burdens caused by the lack
of energy access and directly links energy access to the Human
Development Index (HDI), supported by adequate data from
Indian as well as global perspective. The attempt of the authors is to
place energy access into the larger picture of empowerment and of
equitable and inclusive growth.
The authors discuss in detail the rural electrification scenario
in India- both in the context of electricity and cooking. The book
reviews the developments in the country’s electricity sector and
analyses the difficulties of grid supplies being able to fully resolve the
problem of electricity access, especially keeping in mind the losses in
rural supplies and the financial problems of the utilities. The authors
conclude that decentralised renewable energy solutions will be a
necessary part of the solution.
They then examine the efforts made through use of renewable
energy for providing electricity access and discuss various models
and the lessons learnt. It encourages the use of renewable energy as
an alternate medium, challenging the traditional power proponents.
Various challenges in attaining universal energy access have been About the authors
discussed in details and the way forward is suggested, including the Dr PC Maithani is director at MNRE.
availability of financial resources. Deepak Gupta is a former secretary of MNRE.
The book also highlights the relative neglect of the problem of Publisher & Price: Published by Sage India, the price
cooking energy. It stresses the need for the introduction of better of the book is `900 and can be purchased from
cook stoves. A road map is suggested. some of the famous online e-commerce portals.

60 | Energy Next | May 2015


IREDA Corner

IFC, IREDA partner to boost financing for RE

I
FC, a member of the World Bank Group, for lenders and borrowers. and Renewable Energy (MNRE).
and the Indian Renewable Energy “The partnership will help IREDA increase IFC’s master cooperation agreement was
Development Agency Ltd. (IREDA) its portfolio in financing renewable energy created in 2009 in response to calls for finance
will partner to provide much-needed projects, to support the government of India’s institutions to collaborate more closely to help
infrastructure financing for renewable energy plans to establish up to 175 gigawatts of meet shortfalls in private sector financing during
projects in India, which, in turn, will help boost renewable energy projects over the next seven the global financial crisis.
growth and create jobs. years,” said K S Popli, Chairman and Managing “Enhancing India’s power generation
IREDA, the financing arm of the Ministry of Director, IREDA. “Our clients will have capacity is critical to expand access to electricity
New and Renewable Energy, is now the twenty- access to global best practices including IFC’s and support domestic manufacturing and
seventh development finance institution globally environmental and social guidelines.” agribusiness sectors,” said Vivek Pathak, IFC’s
and the second in India, to sign IFC’s master Popli further said that the Ministry of New Director for Asia-Pacific. “Partnering with
cooperation agreement. This collaboration will and Renewable Energy (MNRE) is holding IREDA will enable developers to speedily
help standardize steps that lenders take when co- review meeting every month with the states commission renewable energy projects while
financing projects with IFC. The ultimate aim after the companies made a commitment at the having a positive environmental footprint and
is to make local currency financing available in first Renewable Energy Global Investors Meet & creating jobs.”
shorter time-frames and reduce financing costs Expo that was organised by the Ministry of New N P Singh, Adviser, MNRE, who was also
present at the signing in ceremony of the
agreement stated, “The estimated potential
in the solar energy sector is around 750 GW,
for wind it is 100 GW, 17GW for biomass and
20 GW for small hydro power. Presently, the
cumulative installed capacity is close to 36 GW.”
Hailing IREDA, Singh stated it is the only
financial body in the world, which is exclusively
for the renewable energy sector and lauded the
track record of IREDA.
Since the master cooperation agreement was
created, signatories have co-invested more than
$3 billion with IFC to support private sector
development across the world.
“IFC and IREDA will play a catalytic
role in private sector development by
providing long-term risk capital where
it is needed most,” said Hyun Chan Cho,
IFC’s Head for Infrastructure and Natural
Resources – Asia Pacific. “With this
partnership, we can respond more swiftly
to private sector financing needs and
boost job creation,” Cho added.

May 2015 | Energy Next | 61


Corporate Buzz

Welspun inks 550 MW MoU with iPLON at Hannover

W
elspun Renewables security and climate change.”
and iPLON recently iPLON will offer its power plant automation
announced the signing of system, plant analysis tools, telemetry systems
a 550 MW memorandum and central monitoring systems required by
of Understanding (MoU). The Independent Welspun Renewables to manage their large
Power Producer (IPP) has chosen iPLON portfolio of projects.
GmbH, a firm based in Schwaebisch Hall iPLON’s CEO Victor Thamburaj stated,
Germany, for supply, installation and “Through this venture we are making our
commissioning of Solar PV power plant in its vision of being the best Solar Project first investment in India with our operations
automation systems for its upcoming Developer in India. spreading across Tamil Nadu, Rajasthan,
projects in India. Commenting on the MoU, Vineet Mittal, Punjab, Madhya Pradesh and Gujarat. We are
The Partnership is an endorsement of Vice Chairman Welspun Renewables stated, effectively creating employment opportunities
the working relations shared by iPLON and “Welspun Renewables carries the responsibility and skill sets in the domain of India’s renewable
Welspun Renewables during the last 2 years. of bringing about low-carbon transition in the energy.It’s a proud moment for us to be able to
During this period iPLON has dedicatedly energy sector. We are taking concrete actions contribute to Prime Minister Modi’s ‘Make in
worked to support Welspun Renewables in solving India’s energy-related issues – energy India’ campaign.”

ACME signs PPA for 30 MW Solar Project with UP

A
CME, India’s leading green will be set-up at Mahoba District over 150 (State Nodal Agency) and Uttar Pradesh
energy player, recently inked acres of land. Power Corporation Limited (State Discom)
the power purchase agreement According to the terms and conditions for the opportunity given to us to partner
for 30 MW solar PV power of the agreement, ACME Group would with the state through green energy
projects with Uttar Pradesh Power provide approx. 50 mn units power generation. We look forward to helping
Corporation Limited. The power plant annually for a period of 12 years at a tariff the state bring down its power demand-
of `8.93/ KWh and thereafter, it would deficit and look forward to support from
supply power for further 13 years at the all stakeholders in making this state an
price of eleventh year Average Pooled ideal green state.”
Purchase Cost(APPC). This project would entail an estimated
Commenting on this momentous investment of approx $ 37 mm/ `225 crore.
occasion, Manoj Kumar Upadhyay, The work on the project shall
Founder & Chairman, ACME Group commence by November 2015 and will be
said, “We thank the Uttar Pradesh State commissioned by August 2016. This will
Government, Uttar Pradesh New and be evacuated by 132 KV line connecting
Renewable Energy Development Agency the power plant to the State grid.

Dr Rajib K Mishra takes over as Director (Mktg & BD) PTC

D
r Rajib K Mishra has joined NTNU, Norway under Norad Fellowship.
as Director (Marketing He has an experience of more than
& BD) of PTC India 30 years of working in the Government
Limited. He is an Electrical Power Utilities and has served NTPC
Engineer from NIT and Doctorate in and POWERGRID. He was Head of
Business Administration from AMU. He commercial, Business Development and
is handling Business Development and Marketing function of POWERGRID
Corporate Planning activities. Dr Mishra diversified business from 2006 to 2008
was accorded visiting scholar status by and GM (Corporate Monitoring Group)
University of Texas, Austin in 2008 and upto 2011. He has authored four books
also has done Post Graduation from and 24 papers.

62 | Energy Next | May 2015


EN-PTC market watch

Key Highlights of CERC Monthly Report on


Short-term Transactions: January, 2015
Share of different segments in total ST market in Jan’15 is as
shown below:
• Total volume traded in ST market –
8646 MUs (down 9% YoY and up 2%
MoM) – ~10% of total generation in
Jan’15. Market size touched 10%
mark after three months
• UI volume decreased 31% YoY but
increased 6% MoM. Excluding UI,
ST market contracted by 1% YOY and
expanded by 1% MoM

Percentage contribution of different segments in 6920 MUs


(Excluding UI):
Growth in
Component Absolute Terms
Monthly Yearly
Bilateral (Traders -5% 0%
+ TAM)
Bilateral (Direct) 4% -3%
Power Exchange 8% -3%
(DAM)

Percentage share of
different traders
(excluding cross-border,
including intra-state &
inter-state included)

• Price of electricity transacted through Ltd., Karnataka, Sterlite India Ltd. executed in Mar’15 were at higher
trading licensees (`4.39/kWh) was and UP and top 5 buyers – Rajasthan, prices and those for May’15 delivery
higher when compared to exchanges Jammu & Kashmir, Uttarakhand, are executed at lower prices
(IEX – 2.95/kWh and PXIL – `2.67/ Telangana and Kerala • Solar RECs: 30650 (up MoM) traded
kWh). Last month’s prices were: IEX – • The volume of electricity that could on IEX & 1490 on PXIL (down MoM) @
3.20, PXIL – 2.85 and Bilateral – 4.33. not be cleared due to congestion `3500/MWh i.e.floor price
• The gap between volume of sale and was about 8% and 10% of the • Non-Solar RECs: 393081 (up
buy bids placed through PXs shows respective actual cleared volume MoM) traded on IEX and 143928
that there was less demand in IEX in IEX & PXIL (congestion situation (down MoM) on PXIL @ `1500/
(1:0.75) and higher in PXIL (1:1.17) than worsened slightly from last month–6%) MWh i.e. floor price – REC
supply. The same was 0.90 and 1.28 • Increasing trend in forward prices volume increasing due to RPO
resp. last month. in Mar’15 and decrease in forward compliance at the end of
• Top 5 sellers – Haryana, Jindal Power prices in May’15 because contracts financial year

May 2015 | Energy Next | 63


IEX watch | Power trading

Price fluctuation at the


power exchanges
The power trading data at the two exchanges –the Indian Energy Exchange (IEX) and the
Power Exchange India Ltd (PXIL)- for the month of April 2015. The data tracks the trend of
power trading at both the exchanges on every Wednesday through the month

64 | Energy Next | May 2015


EVENTS

May POWER-GEN May Wind Farm Jun Renewable Energy


14-16 India & Central
Asia
20-21 Development:
European
2-4 & Green Technology
International
The event is one of the Offshore 2015 Conference
leading ones dedicated One of the premier events The three-day international
to conventional power, dedicated to off-shore wind conference is being organized
renewable energy and T&D energy development, it aims
London, Bali, to give a fillip to the
New Delhi, sector in the region. It to provide a platform for the
India UK Indonesia renewable energy industry
expects to see a gathering utility companies, wind farm in the region. It aims to
of decision makers, operators, engineers, wind farm provide a unique platform
influencers, technical developers, consultants, energy to researchers, professionals,
experts and professionals analysts and other stakeholders academicians, manufacturers
from India and around the to explore the opportunities and project developers to
world in the power sector within the off-shore wind share and generate forum of
to discuss current trends industry and discuss latest the latest renewable energy
and future plans. technology advancements to and green technology.
support recent growth.

www.indiapowerevents.com/index. http://v11.vuturevx.com/exchange-sites/Whitmore%20
www.reegetech.com
html#leftinheritedtop_tabs_1 Group/59/events-pdfs-eu/ewp5-mktg-agenda.pdf www.ewea.org/annual2014/

Jun Jun Jul


Intersolar Europe Solar South Intersolar North
9-12 19-21 13-16 America

The event is world’s An event dedicated to the The conference-cum-


leading exhibition solar energy, with an aim exhibition is a premier
cum conference of the to bring together project event of the solar industry
solar industry, which developers, manufacturers, in North America. The
Munich, focuses on the areas of Chennai, consultants, installation San Francisco, focus of the event is on the
Germany solar PV technologies, India experts, policy makers USA areas of photovoltaics, PV
energy storage systems and other stakeholders production technologies,
and renewable heating on a single platform. The energy storage systems
technologies. It has evolved concurrent exhibition and solar thermal and
as the most important will serve as a networking heating technologies. It
industry platform for opportunity for all the is a platform where solar
equipment manufacturers, participants to exchange leaders from around the
suppliers, distributors, ideas and knowledge about world and across the solar
service providers and the sector. value chain converge and
partners of the solar help in shaping the solar
industry. industry in the region.

http://www.intersolar.de/en/home.html http://www.solarsouth.in/ http://www.intersolar.us/en/home.html

Jul Jul
SolarTech Egypt ASES SOLAR 2015
28-29 28-30
The conference & exhibition has been Created by solar enthusiasts and
JULY 2015

designed to create a stable ecosystem professionals for solar enthusiasts and


for RE deployment in Egypt. This professionals, the event will discuss
year, the focus will be on project the emerging solar technologies that
financing options, recent technology can be put to use in shaping the future
Cairo, updates and commercial market State energy scenario. This year’s theme is
Egypt development in the solar sector. The College, ‘Expanding Horizons: Shaping the
exhibition will enable leading solar PA, USA New Energy Economy’ which will
technology companies to showcase embrace the story of the past, enrich
their technologies & solutions to the the communities of today, and reveal
industry leaders and buyers. the trends of the future.

http://greenworldconferences.com/
produkt_245_solartech_egypt.htm http://solar2015.ases.org/

66 | Energy Next | May 2015


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