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Biofuel: To blend or not to blend

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ISSUE 7
Volume 3 Issue 7 May 2013 Hyderabad Your guide to Renewable Energy

Target 2017: Racing

against time
The growing need for
low-carbon transport fuel
is making biofuel an increasingly
sought-after source. The challenge
before India is to make clean fuel
available and popular without
threatening the food supply

May 2013

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 VOLUME 3 ISSUE 7 MAY 2013

In this Issue w w w . e n e r g y n e x t . i n

Cover Story
12 Editor-in-Chief Debashish Majumdar

Publications Director R Ramprasad

Head – Content Keshav Chaturvedi

Associate Editor Rosy Mishra

Associate Editor Sapna Gopal

Assistant Editor Upendra Singh

Target 2017: Racing Assistant Editor Sayantani De

against time Sr Designer Mahesh Malekar

Head – Business & Events Anupam Daftuar

The growing need for low-carbon
Marketing Manager Abhinav Dutta
transport fuel is making biofuel an
increasingly sought-after source. The Manager – Research Anup Kumar
challenge before India is to make clean
fuel available and popular without
threatening the food supply For the latest Renewable Energy news,
log on to www.energynext.in

Waste-to-Energy Energy Next is printed by R Ramprasad and

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 In this Issue

33 R&D

Pursuing the algae dream

A look at the prospects for algae-based fuels
in India amidst persisting doubts over the
reliability of first-generation biofuels

36 Green Crusaders Energy Efficiency

41
Working for a cleaner future
At a time when nations across the globe are snapping
Switch by choice
supply lines crucial for RE promotion, a group of MPs is
The last couple
working to keep the industry alive and kicking
of years have
witnessed a
conscious shift
to LED lighting
with companies
realising that
these fixtures can
help them slash
operation and
maintenance costs

53 World View IREDA Corner

62
Financing Trends
A comparison between IREDA’s loan sanction reports
of 2011-12 and 2012-13 presents a robust picture of
renewable energy expansion in India

Sands of change
A review of proposed plans
laid out by some of the
GCC countries reflects
the strategic importance
that is being attributed to
renewables
 From the Editor-in-Chief

Taking biofuels to the next level

It was as early as 1917, that the great scientist and inventor Alexander Graham Bell shared his bold ethanol vision with the
world. “We need never fear the exhaustion of our present fuel supplies so long as we can produce an annual crop of alcohol
to any extent desired,” he wrote in his article for the National Geographic magazine. Bell wasn’t the only one to think that corn
stalks and other biomass might play an important role in the future energy scene. Rudolf Diesel designed his compression
engine to run on peanut oil and Henry Ford not only ran his Model T Ford first on bioethanol, but also owned an ethanol plant.
Since then, much water has flown under the bridge. Today, biofuel is looked upon not only as a key means of cutting GHG
emission, but also as one of the possible solutions to the looming energy crisis. Companies around the world are working to
develop and deploy advanced biofuel technologies that feature different raw materials, pre-treatment methods and conversion
processes. Every possible organic resource on the planet – from plant cellulose to algal lipids to animal excreta – is being
examined in the hope of finding a sustainable source of
biofuel. Governments are contributing significant portions
of their budgets to support research and development in
their countries.
Going further, several countries such as the US, Germany,
Brazil and China are using bioethanol to reduce
consumption of petroleum. India, too, has set a target of
20 per cent blending of biofuels, both for bio-diesel and
bio-ethanol, by 2017. The country aims to mainstream
biofuels and envisions a central role for them in the energy
and transportation sectors in the coming decades.
Moreover, the implementation of biofuel blending
mandates and targets in many countries along with
financial support measures such as tax incentives has
driven biofuel production over the last decade. The
European Union and the United States are among the few
regions to have provided financial support for advanced
biofuel production facilities.
The global aviation industry is also eyeing biofuel to
reduce their carbon footprint. Major airlines like Boeing, Virgin Atlantic and Lufthansa have already begun experimenting with
biofuel-powered commercial flights.
Even though these persistent efforts have yielded significant results, leading to a sevenfold increase in global biofuel
production since 2000, sadly, this is still way below what is needed to meet the total liquid fuel demand. The IEA, in its annual
report – Tracking Clean Energy Progress 2013, emphasises that commercial deployment of advanced biofuel conversion
technologies will be needed to reach the 2 degree Celsius scenario (2DC) objectives, while improving conversion efficiency,
cost and sustainability of conventional biofuels.
The IEA, in its role as the global energy watchdog, further suggests dedicated
policy support and additional government funding for research and
production as some of the measures necessary to ensure large-scale
market deployment of advanced biofuels.
While biofuel is expected to play a key role in our ability to meet the emission
reduction targets, many have expressed serious misgivings about its environmental
efficacy, not to forget the long-standing doubts over its viability and concerns
over its possible impact on food security and biodiversity. So, it is important to
recognise that beside the many benefits, biofuel carries risks as well. Policies
should be framed in a way that helps us secure the benefits while managing the
risks. And, in order to establish the marketability, and the physical, economical
and environmental sustainability of biofuels, there needs to be a series of carefully
planned and coordinated efforts so that they are not at cross-purposes and
ensure learning gains.
Let’s hope it’s not long before biofuels find their place in the
grand scheme of things.

Debashish Majumdar
Chairman & Managing Director, IREDA
 news
Energiser India commissions 290MW Solar PV
The Odisha Solar photovoltaic (PV)
government power plants with an installed
will provide capacity of 290 MW have been
solar lanterns commissioned as of April 15,
to 40,500 2013 under Phase I Batch 2
weaver of India’s Jawaharlal Nehru
families in National Solar Mission (JNNSM),
next four according to Union Ministry
years at an for New and Renewable
estimated Energy (MNRE).
cost of However, three solar PV plants
`17.20 crore. with a cumulative capacity of
50 MW under Phase I Batch 2
of the Mission are yet to be
commissioned. They include a
10-MW plant in Rajasthan, a
20-MW each in Andhra Pradesh
and Maharashtra.
According to official sources,
during Batch 2, Rajasthan
emerged as the leading state
with a majority of projects
coming up there. Out of the
total commissioned projects
under this batch, only one
project of 5 MW came up in
Maharashtra while the rest
DoT mulling viability gap funding for telecom
The Department of
Telecom (DoT) is looking at
the possibility of allowing
viability gap funding (VGF)
to telecom tower firms, so
as to speed up adoption
of renewable energy for
powering the towers.
Financial support is likely to
be provided either from the
Universal Services Obligation
fund or other schemes under
the Ministry of New and
Renewable Energy (MNRE).
As per estimates of the
Tower and Infrastructure
Providers Association
(TAIPA), the telecom
companies would need
around `33,000 crore
to meet the DoT’s green
initiative targets. According
to the directive, the telecoms
are supposed to power
50 per cent of their rural
towers and 20 per cent of
04 | Energy Next | May 2013
were in Rajasthan. All the
above mentioned plants
were commissioned between
December 24, 2012 and March
26, 2013. However, four solar
plants of 10 MW which are
reported as commissioned, are
still awaiting certificates.
Apart from the MW scale
power plants, India also
installed 88.8 MW of solar
urban towers by hybrid power
(renewable energy + grid
power) by 2015. Thereafter,
a minimum of 75 per cent of
rural towers and 33 per cent
of urban towers will have to
be powered by hybrid power
PV plants in rooftop PV
and Small Solar Generation
Program (RPSSGP) category,
besides 48 MW through the
migration scheme. Unlike
the MW scale projects, the
distribution of RPSSGP is
more diverse, covering 12
states. Here, Jharkhand leads
the list with 16 MW followed
by Rajasthan (11 MW and
Andhra Pradesh (9.75 MW).
systems (by 2020). In order
to cut down the emissions
of carbons and growing cost
of diesel, private telecom
companies have undertaken
pilot proects to run their
towers on renewable energy.
Pune-based Creative Mark
Engineering Solutions as
well as Mahindra & Mahindra
have been selected by several
companies for supplying
renewable energy.
Under this project, the
renewable energy service
company (RESCOS) will set
up off-grid power plants
near telecom towers and sell
it to the telecom company at
a pre-determined cost on
pay-per-use model.
However, the additional
power, if generated, can also
be sold to commercial users
in areas where the power
plants are located.

Infrastructural challenges for RE
Though India has aggressive
renewable energy targets and
industry energy efficiency
policies, it continues to face
significant infrastructure
challenges, which may derail
an otherwise good policy, a
recent report by Climate Policy
Initiative (CPI) states.
Titled ‘The Policy Climate’,
it reveals that the
implementation of policy
relevant to climate change and
its impact, accelerated over
‘Effective grid integration of RE essential’
Over the last decade,
renewable energy
technologies have
leapfrogged at the global
level and a series of policy
initiatives and technology
improvements have helped
create a substantial supply
base for the sector, Minister
for New & Renewable Energy,
Dr Farooq Abdullah said
recently.
Elaborating on grid
balancing issues, he stated
that presently, most of
the renewable electricity
generated within a state
have to be absorbed within
that state and grid balancing
issues limit addition of
more renewable electricity
beyond a certain limit.
Therefore, evacuation from
resource rich states to other
parts of the country where
load centres are located, is
needed for further growth of
the last decade globally, despite
the slow pace of international
climate negotiations. The
report notes that despite
challenges, the past decade saw
a huge growth in the country’s
renewable energy generation –
especially wind, which grew by
1250 per cent from
2000-2010.
The report
presents three
decades of
evidence from five
key economies
– India, China,
Brazil, the EU, and
the US — which
together contain
slightly more
than half of the
world’s population
and account for nearly two-
thirds of global greenhouse gas
emissions. The report offers
lessons and insights from
each region, China, Brazil, the
European Union and the US.
renewable power.
The emergence of large
amounts of renewable
electricity around the country
is creating new challenges
for both the transmission
and distribution sectors.
In a report titled- ‘Green
Energy Corridors’- the Power
Grid Corporation of India
has estimated that around
`43,000 crore or around
US$ 8 billion would be
required to strengthen and
develop renewable power
evacuation and transmission
infrastructure for the planned
renewable power capacity
addition in next five years.
“We are looking at various
options to raise financing for
implementing this important
report, including through
public-private partnership.
We look forward to learning
from international experiences
and targeting international
national
Energiser
“In spite of a stalemate at
the global level, there have The students
been real climate policy of Caarmel
accomplishments at the Engineering
national and sub-national College,
levels, particularly in the Perunad,
last decade,” said Thomas Kerala, have
C. Heller, Executive Director made a
of Climate Policy Initiative. solar-powered
He stressed on the need for wheelchair for
learning from past experience the blind.
and building henceforth.
Policy deployed across
the world at the national,
provincial and local levels
provides immense experience
for policymakers to use
this in programmes to
tackle climate change.
While there is ample
experience to help guide
further policy development
in land use, renewable
energy, and energy efficiency,
the report identifies a
particular need for more
policy which can support
innovation globally.
collaboration in the areas
of renewable energy grid
integration and energy
efficiency,” he added.
On plans for the renewable
energy sector, he revealed, “Our
12th five year plan proposals
for the period 2012-2017 seek
a capacity addition of 30 GW. A
federal outlay of around US$4
billion has also been earmarked
for undertaking renewable
energy activities during the
next 5 years.”
May 2013 | Energy Next | 05
 news

Energiser Solar makers seek anti-dumping duty on imports

In a bid to provide level
Rajasthan has playing field to the Indian solar
become the PV manufacturing industry,
second state the Indian Solar Manufacturers
to have an Association (ISMA) has urged
operational the government for imposition
solar power of anti-dumping duty on cheap
capacity solar imports.
of over
At a media roundtable held in
500 MW.
New Delhi recently, ISMA sought
the help of the government
in creating a conducive
environment for the domestic
solar manufacturers on the
lines of several other countries.
Ajay K. Goel, CEO, Tata Power
Solar, said that the dilution of
domestic content requirements
(DCR) of the Jawaharlal Nehru
National Solar Mission (JNNSM)
sets up perverse behaviour in
the marketplace. “There is a lot
of dumping of solar products
in India and in order to help
domestic solar manufactures,
an anti-dumping policy is
required,” he added.
Global overcapacity and the
widespread influx of solar
panels in the country from
China, Taiwan, Malaysia and
the US have made things tough
for the solar industry in India.
Also, the DCR clause, meant
to safeguard the interests of
the domestic manufactures,
couldn’t attain its goal due to
certain loopholes. It left out
thin film technology from
the clause, which resulted in
Indian developers going for
cheap thin film imports. As
of now, thin film takes over
70 per cent of total installed
solar power capacity purely
due to subsidised financing
from foreign financial
institutions.
Commenting over the
situation in India,
S Venkatramani, ISMA’s
General Secretary and CEO
of Indosolar, said, “Today,
the Indian solar manufacturing
industry is in doldrums. The
cheap solar import is killing
domestic manufacturers.”
DCR in India was a failure
during Phase I of JNNSM and
in order to make it an efficient
tool to safeguard the interests
of the domestic manufacturers,
there is a need to restructure it,
he suggested.

India files complaint against US

India recently filed a
complaint against the US with
the World Trade Organization
(WTO) on the renewable
energy (RE) sector. It alleged
that the US, both at the federal
and state levels, is subsidising
programmes in the RE sector
for local content requirements,
therefore, breaching global
trade rules and making the
entry of Indian companies
difficult.
difficulties in penetrating
the US market mainly due
to the support given to the
domestic manufacturers
there. Tata Power Solar CEO
Ajay Goel was quoted in the
media as saying that the US
offered incentives to local
companies to protect them
from foreign competitors.
“Preferential treatment is given
to US manufacturers. Due to
this, we have not been able to
make much inroads, we have a
bunch of investments on hold,”
he said.

In a report to the Subsidies

and Countervailing Measures
Committee of WTO, India
stated that in four US states —
Connecticut, Massachusetts,
Delaware and Minnesota —
such a programme is on to
promote local firms. Such
subsidy programmes, India
argued, violates TRIMS (Trade
Related Investment Measures)
agreement by WTO.

In fact, many leading

Indian solar PV module
manufacturers have voiced

06 | Energy Next | May 2013


Suzlon completes implementation of CDR
Suzlon Group, India’s
largest and the world’s
fifth largest wind turbine
manufacturer, has
successfully completed the
implementation of its CDR
package with the signing of
the Master Restructuring
Agreement (MRA), and the
preferential allotment of
equity shares to its lenders.
Under India’s CDR
mechanism, in October
2012, Suzlon had announced
restructuring of its debt. In
January this year, a package
of `9,500 cr /US$ 1.8 bn was
formally approved by the
company’s domestic lenders,
a consortium of 19 banks.
The package covers a
10-year door-to-door
back-ended repayment
plan, reduction in interest
rates by approximately
three per cent, a two year
moratorium on principal
and term-debt interest
payments, enhancement of
working capital facilities and
Create separate window for RE, says FICCI
In a bid to give the domestic
solar energy projects a push,
there is need for creating a
separate window for easy
access to finance under
the National Clean Energy
Fund (NCEF), industry body-
Federation of Indian Chambers
of Commerce and Industry
(FICCI) said recently.
A FICCI White Paper which has
been sent to the government
for consideration, urges for the
creation of a separate window
for financing renewable energy
projects, more so solar, so that
the cost of such projects can
be brought down.
“Given the challenges faced
by the solar industry in
India due to the high cost of
finance, the government’s
decision to extend an interest
subsidy from the National
equity allotment to the CDR
lenders. The first phase of the
allotment, for `30.24 crore
shares at an issuance price
of `18.51 per-share to CDR
lenders, has been completed.
The new shares issued will
be subject to a lock-in period
of one year from the date of
allotment.
“We are pleased to report the
implementation of our CDR
package,” Kirti Vagadia, Group
Head – Finance, said. “We
are sincerely grateful to our
lenders for their confidence in
the company and our business
plan by extending incremental
working capital support,
Clean Energy Fund for enabling
lowering the cost of finance for
renewable energy projects is a
commendable step,” a statement
by FICCI said.
Citing the high cost of financing
from domestic financial
institutions, FICCI’s White Paper
has also suggested setting up
innovative models for sharing
and distribution of risk and cost
national
Energiser
The renewable
energy sector
in India is
seeing a
rebound in
investment
with around
five deals
worth
approximately
` 3,000 crore,
speedily implementing the
being sealed
package, and participating in
in 2013.
equity,” he added.
Vagadia expressed his
gratitude to the company’s
lenders and stakeholders in
their support to Suzlon during
this critical phase. Suzlon
is now completely focusing
on normalising its business
operations to come up with
a healthy performance in
2013-14. In order to enhance
the company’s performance,
efforts will be made in
driving results from project
transformation and focusing
on the execution of its US$ 7
billion order book.
of financing through the NCEF.
It has recommended that
the subsidy should be made
available and routed through
the lenders to eligible project
developers so that they can
get lower interest rates for
the loans. The easy financing
route, suggested by FICCI, will
help provide a much-needed
boost to the RE sector in India.
May 2013 | Energy Next | 07
 news

Energiser Large-scale grid-integration of RE possible

BMW’s Large amounts of renewable
sustainable energy can be integrated
mobility- into utility systems reliably
focused while producing significant
sub-brand benefits for consumers and the
BMW i will environment, a recent study
has revealed.
collaborate
with German Titled “Meeting Load with a
photovoltaic Resource Mix Beyond Business
firm as Usual”, it builds on the work
SOLARWATT by groups which indicated
GmbH to that such a transition to clean
supply energy would reduce consumer
consumer- energy costs by $83 billion,
friendly while greatly reducing air
solar-powered pollution and use of water.
carport Prepared by Synapse Energy
and rooftop Economics for the Civil Society
charging Institute, it used wind and
systems to solar output data developed
future i3 and i8 as part of the Eastern and
Western renewable integration such as demand response electricity on the power
owners. system. It also explained that
studies by the National and renewable energy
Renewable Energy Laboratory forecasting, the study proved transmission is a critical tool
(NREL), to gauge how the that electric reliability would for making power systems
power system would operate be maintained at current flexible and that the so-called
with a cleaner fuel mix in levels in all hours throughout ‘baseload’ resources are
2030 and 2050. the year in the scenario of typically highly inflexible and
wind and solar providing make renewable integration
Without using technologies around 37 per cent of the more difficult.

EU solar makers oppose import duty on Chinese modules

The European Union’s (EU)
proposal to impose import
duty on Chinese solar panels
has met with opposition from
the domestic industry who
argue that such a move may
affect the industry. Over 1,000
companies across the industry
have conveyed to the European
Commission against the
latter’s likely move, anticipated
as a consequence of the
anti-dumping and anti-
subsidy investigation
against Chinese solar
manufacturers and
complaints by European
solar manufacturers
alleging that the Chinese
were benefitting from
subsidies.
Speculations are
mounting that the
EU may follow in the
footsteps of the US
imposing import tariffs
on Chinese solar panels, at the
same time pursuing a complaint
to the World Trade Organisation
(WTO) about Chinese subsidies.
Reportedly, the European
and the US solar technology
manufacturers may welcome
such an action. However,
installers and prospective
purchasers of solar technology
are concerned that such a
move will increase the cost
of solar panels and may
slow down the deployment
triggering job losses across
the industry.
The Alliance for Affordable
Solar Energy (AFASE), a
coalition of more than 350
companies, opposed the
introduction of
import tariffs. The
letter, addressed
to European Trade
Commissioner Karel
De Gucht, states that
the problems faced
by manufacturers
in Europe are more
as a result of over
capacity in the
global solar market
by the economic
slowdown than
competition
from China.

08 | Energy Next | May 2013


Africa’s largest solar PV plant launched
The largest solar photovoltaic
(PV) plant in Africa was
inaugurated by the Government
of the Islamic Republic of
Mauritania and Masdar, the
renewable energy company of
Abu Dhabi, the United Arab
Emirates (UAE). Located in the
capital city of Nouakchott, at 15
MW, the solar PV facility is the
largest solar PV plant in Africa.
It is believed that this plant
will account for 10 per cent of
Mauritania’s energy capacity,
displace approximately 21,225
tonnes of carbon dioxide
emissions annually and supply
energy to almost 10,000 homes
in Nouakchott.
Till now, Mauritania’s electricity
grid, like many in Africa and
the world over, has been
dependent on expensive diesel
generators and exposed to
price volatility, energy security
and sustainability issues. To
add to this, the nation’s
demand for energy grew by an
estimated 12 per cent in 2012,
compounding the pressure
on their 144-MW of installed
capacity and resulting in
severe energy shortage.
The International Renewable
Energy Agency (IRENA)
international
Energiser
expressed its delight over IBM is
the project’s commissioning. developing an
Commenting over the feat, Adnan
affordable High
Z. Amin, Director-General of
Concentration
IRENA said, “Globally, renewable
energy has tremendous potential PhotoVoltaic
to meet our growing energy needs, Thermal
and with the business case for (HCPVT)
renewables improving rapidly, system using
the time has never been better for cooling
renewables. We are encouraged technology from
to see one of our early members, supercomputers
Mauritania, beginning their to harvest
transition to an affordable secure solar energy
and sustainable energy system.” and produce
During the inauguration of the drinking
solar plant, Mauritania President water.
Mohamed Ould Abdel Aziz said,
“Energy access is a pathway to
economic and social opportunity.
Electrification, through
sustainable sources of energy, is
critical in ensuring that our people
have access to basic services and
is a step towards improving our
infrastructure and long-term
economic development.”

VC funding in wind sector robust in first quarter of 2013

Venture capital (VC) in the
wind energy sector rebounded in
the first quarter of 2013, raising
$16 million in three deals after
the previous quarter saw just
one $500,000 VC deal, the
latest report by global clean
energy communications and
consulting firm, Mercom
Capital Group said.
Mercom released its report on
funding and merger
and acquisition
(M&A) activity for the
wind sector during
the first quarter of
2013 which reveals
that most of the
funding activity this
quarter went towards
project funding. The
announced project
funding in Q1 2013
came to $6.2 billion
in 29 deals with some
large transactions
recorded this quarter.
Large-scale onshore
wind projects received
over $3.42 billion in 26
deals while offshore
wind projects received over $2.74 of the Polish onshore wind
billion in three deals. In the US, business of Dong Energy,
wind became the most installed a company involved in
energy generation source in 2012 procuring, producing,
and has continued that momentum distributing and trading in
in the first quarter of 2013. energy and related products,
by two Polish power utilities
There were four M&A transactions
Polska Grupa Energetyczna
in Q1 2013, amounting to $543
(PGE) and Energa, for
million, out of which three were
$314 million.
disclosed. The top M&A transaction
this quarter was the acquisition There was strong project
acquisition
activity this
quarter with
17 transactions
amounting to
$1.4 billion. The
largest project
M&A transaction
by amount
was UK-based
renewable
energy investor
and developer
Blue Energy’s
acquisition of
the 177 MW
RidgeWind
portfolio from
HgCapital for
$392 million.

May 2013 | Energy Next | 09

 news
Energiser Nepal to improve energy access in hilly areas
Dutch With its recently-adopted
researchers policy to subsidise
have renewable energy,
developed the Himalayan country Nepal
Electrostatic is now planning to electrify
WInd energy deprived areas.
CONvertor More than half of Nepal’s
(EWICON), households in urban and
a bladeless semi-urban areas receive
windmill with power from the national
no moving electricity grid. However,
parts which around 80 per cent
produces population of the country
electricity stays in rural
by pushing areas where less than
charged water one-third population has
droplets into electricity. Since extending
the wind. the grid to the hilly areas
is expensive, officials
are looking into off-grid
alternatives based on
renewable energy sources.
“Renewable, off-grid energy
solutions are the only
realistic way to provide
energy in parts of the
country,” Nepal’s National
Desertec releases criteria for large solar projects
After several years of
development, the Desertec
Foundation has released a
set of criteria that ensure
the social and environmental
responsibility of large solar
projects in desert regions. With
this, the foundation offers
practical measures to achieve
one of the cornerstones of the
Desertec Concept: ensuring
that locals benefit from the
development of concrete RE
projects.
These criteria provide
governments and investors
of public and private
funds with tools and
clear guidelines for the
design of environmentally
and socially responsible
energy projects in desert
regions by ensuring the
participation of local
people in projects’ planning
process and their economic
benefits. In the long-term,
10 | Energy Next | May 2013
Rural and Renewable Energy
Programme (NRREP), a five-year
national framework launched
last year, states. It adds that
funds for technologies to
harness hydropower, biogas
(a mixture of methane and
carbon dioxide produced by
fermenting organic matter) and
solar as well as wind, will also
be arranged.
Despite the country’s potential
in solar and hydropower,
these criteria will also improve
planning and investment security
for investors.
“Political participation and
environmental responsibility
play a clear and key role in
the European transition to
renewables. This must also
be the standard approach for
international projects and the
global transition to renewable
energy,” said Dr Thiemo
Gropp, Director of the Desertec
Foundation.
At the core of these criteria are
the highest after Brazil, and
decades of research, developing
renewable energy has not kept
pace with population growth.
Moreover, the harnessed
renewable energy is poorly
distributed, mainly
due to an insufficient
upgradation of infrastructure.
Currently, most of Nepal’s
energy needs are met with
biomass – majorly firewood,
besides agricultural residues
and animal waste.
basic principles to be applied
to large-scale sustainable
energy projects. They consider
economic viability and energy
security alongside environmental
impacts and social development.
For instance, by maximising
economic benefits for the local
population, encouraging the
participation of different interest
groups in the development of
renewable energy power plants
and ensuring the transparency of
the entire process.
The Desertec Foundation
released these criteria for the
first time after having used
them in 2012 and this year
to evaluate the concentrating
solar thermal power project,
TuNur. These sustainability
criteria will continue to be
developed on the basis of
experience gathered by these
projects and through an
ongoing dialogue with all key
stakeholders.

More solar energy workers than coal miners in US
Despite solar energy
being a nascent sector
and even termed as
unreliable, recent data
suggests that it has huge
potential for creating
employment. Last month
saw history being created
when new solar power
capacity represented 100
per cent of new energy
on the US grid. In the
first quarter of 2013, the
new capacity addition in
solar energy was around
537 which accounted to more
than double the solar power
additions the previous year.
Amid falling prices of solar
technology worldwide, the
solar energy industry has
gained momentum in recent
times and the US solar
industry seems to be on
the right track. According
to Rhone Resch, president
and CEO of the Solar Energy
Global RE investment to triple by 2030
Global annual investment in
renewable energy is expected
to triple by 2030 accounting
for 70 per cent of new power
generation capacity between
2012 and 2030, a report by
Bloomberg New Energy Finance
(BNEF) stated.
It reveals that renewables will
account for around 69 to 74
per cent of new power capacity
addition globally by 2030.
According to the report, the
clean energy sector is likely to
witness a spur in investment
from two-and-a-half times
to more than four-and-a-half
times between now and 2030.
Compared to last year’s 28
per cent, by 2030, renewables
will account for half of the
generation capacity globally.
This finding is in contrast
with the tough conditions
which affected the global
renewable energy market in
2012 when a number of solar
and wind power manufacturers
suffered huge losses, some
Industries Association, the
strong performance of solar
energy in the US could be
attributed to the efforts
over the past several years
in bringing down costs and
ramping up deployment.
Besides creating opportunities
for investment and clean
energy generation, the industry
has performed significantly
in creating job opportunities.
Recent studies have revealed
even going bankrupt.
BNEF calls this renewable
energy market outlook the
“New Normal” which will see a
jump of 230 per cent, to $630
billion per year by 2030. This
has been possible mainly due
to continuous improvements
in the cost-competitiveness of
solar and wind technologies,
aided by an increase in the
roll-out of non-intermittent
international
Energiser
that the count of solar Cooking waste
energy workers in
from thousands
Texas is more than
of London
that of the ranchers,
whereas in California, restaurants is
they have outnumbered likely to help
actors. According run the world’s
to data from the biggest
Solar Foundation, an fat-fuelled
independent non-profit power station
solar research and that will
education group, the produce 130
solar power industry in GWh a year
the US employs around of RE.
119,000 jobs which
account to more than the
number of coal miners.
The employment in the
solar industry in 2012 saw
an increase of 13.2 per
cent when compared to the
previous year- which is one
of the fastest growth rates
for any industry. Most jobs in
solar energy in the US are in
installation and pay around
$38,000 a year.
renewable energy sources
like biomass, geothermal
and hydro.
According to BNEF chief
economist Guy Turner, this
is a strong forecast, and
at the same, believable. “It
represents a compound
annual growth of 6.7 per cent
and many industries have
grown faster than that at this
stage of their development.”
May 2013 | Energy Next | 11
 Cover Story Biofuels

Target 2017:
against time

India’s National Biofuel Policy aims at 20 per cent

blending of biofuel by 2017. However, the country
has been able to blend only 5 per cent till date,
having missed the 2012 target of 10 per cent.
As production remains low and any significant
increase in it may disrupt India’s
food supply, the challenges
are many. Sayantani De takes a look

A
n aspiring superpower,
India is one of the top five
primary energy consumers
in the world, and needless to say, a
sizeable amount of this is used by
the transport sector. The sector is
the lifeline of the Indian economy;
however, it is also a major contributor
of greenhouse gases, and therefore,
the fast-changing climate patterns.
When India introduced its National
Policy on Biofuels in 2009, the
government wanted to ensure
mitigation of pollutants emitted by
locomotives – it began by directing
the state governments to implement
the blending of 5 per cent biofuel with
conventional ones, increasing it to
10 per cent by 2012 and 20 per cent
by 2017.
The first target has clearly missed the
mark, with only a handful of states
somehow managing to blend 5 per
cent ethanol with petrol in order to
offset the impact of volatile fuel prices
as well as carbon emission.
And since 10 per cent blending

12 | Energy Next | May 2013

Racing years ago. And going by the statistics
from automakers, 20 per cent
blending of biodiesel can pose a
formidable challenge to India. In its
aim to achieve 20 per cent blend of
biodiesel in locomotive fuels, India
has to step up its production by
10-12 folds, according to industry
watchers. With an annual rise of
7 per cent domestic demand for
diesel, India will require around 1.60
million tonnes biodiesel in 2017 to
supplement nearly 6.4 tonnes of
diesel. And that is no mean feat since
the present production of the
country is at an inscrutable
0.1 to 0.15 million tonnes.
“India’s focus on biodiesel has to be
greatly improved to make its national
biofuel policy practically a success.
Crops like Jatropha have to be
evaluated properly on scientific and
social basis to better understand their
real potential for biodiesel production
to satisfy India’s biofuel targets

will not only require added efforts,

it will also require increased
biofuel production which might
clash with food crop cultivation,
experts are keeping a close
watch as to how India can
prevent 2017 from becoming
another missed deadline.
Is India on track?
Of the two kinds of biofuel, India
mostly produces bioethnol – mainly
from molasses. Experts feel ethanol
is relatively closer to the 20 per
cent blending target. According to
the Ministry of Road Transport and
Highways, given a ‘business-as-
usual’ scenario, India has witnessed
the growth of road freight traffic
at 7.3 per cent per annum for the
period 2001-02 to 2010-11. While
the demand for petrol in India is
expected to rise from 1.3 to 1.8
million tonnes by 2017, a dedicated
allocation of 450-500 million
litres of bioethanol from a total
production of 2200 million litres
may allow India to operate its
vehicles with 20 per cent blend.
Ironically, the Indian consumers
are fonder of the smoky diesel
cars as it is cheaper – diesel cars
command a straight 58 per cent
share of the passenger car market,
up from a mere 32 per cent two

May 2013 | Energy Next | 13

 Cover Story Biofuels
in2017. However, other key issues
like ethanol pricing formula and
procedural delays by various state
governments must be addressed to
avoid a lag,” Narasimhan Santhanam,
Director, Energy Alternatives India,
tells Energy Next.
According to a report by the Global
Agricultural Information Network, the
total ethanol supply for the blending
programme during the fiscal year
2011-12 was anticipated to be just
sufficient to meet the 2 per cent
blending mark while production
of biodiesel from Jatropha in India
is commercially insignificant. This
stands in contrast to the National
Policy on Biofuels, which aims to
replace 20 per cent of
petroleum consumption
with biofuels by the end
of the 12th Five-Year Plan
(2016-2017).
Sharing the sentiments
and identifying that the
Oil Marketing Companies
(OMCs) responsible for
procurement and blending
of biofuels failed to meet
any of the targets so far,
Dr Shinoj Parappurathu
of the National Centre for
Agricultural Economics and
Policy Research (NCAP), New Delhi,
says commercial blending of diesel
remains a complete non-starter. “The
reasons for such underperformance
are under-production by farmers
due to shortage of feedstocks, lack
of consensus among stakeholders
on Minimum Purchase Price
(MPP), strong demand pull for
biofuels from alternate players like
beverage industry, pharmaceutical
manufacturers, etc.,” he tells
the magazine.
“The sheer volume of biofuels
required to meet the targets
itself speaks of the impracticality
involved in realising them. A recent
study by NCAP shows that for a
complete 20 per cent blending,
approximately 5475 million
litres of bioethanol will be required
by 2017. This is against the present
14 | Energy Next | May 2013
level of annual ethanol production
of 1500-2300 million litres. In
other words, after meeting the
demand from beverage and other
industrial sectors, the present level of
production would not support even 2
per cent of blending,”
Dr Parappurathu explains.
The senior scientist says the case
of biodiesel is even more appalling.
While the demand for biodiesel
would be nearly 25 million litres by
2017 to meet 20 per cent blending,
its commercial production remains
highly insignificant in India. He adds
that given the unsustainability and
unviability of molasses-based ethanol
and Jatropha-based biodiesel,
the “mandated blending targets
remain highly unlikely to be met” as
envisaged under the policy.
Recently, India announced that it
would issue its first global tender
to import ethanol for blending
with gasoline as the local tender
managed to procure only half of the
1 billion litres of ethanol required.
India has consumed about 15 million
tonnes of gasoline in the fiscal year
ending March 31, 2012, according to
government data.
R&D: The deed and the need
However, the industry – both
private and public sector companies
are hopeful about India meeting
the mandated targets amid reports
that the government has mandated
OMCs to sell petrol blended with
5 per cent ethanol from this July.
However, the produce remains
insufficient to meet the demand,
both current and future. One of
the reasons is the case of R&D that
experts feel lag in innovation and is in
need of investment.
“Despite the strong emphasis given
by the policy on R&D of second
and third generation biofuels,
investment in this sector remains
abysmally low. Presently, the main
focus is on developing commercially
viable lignocellulosic ethanol from
feedstocks such as rice and wheat
straw, corn stover, saw dust, wood
chips, bagasse, grass clippings,
waste paper, other agro residues,
etc. Technologies for converting
lignocellulosic biomass to ethanol
are under preliminary stages
of development and needs
extensive R&D to produce
perceivable results,” Dr
Parappurathu says.
The scientist, who has
written a number of papers
on biofuels and its related
aspects, says substantial
efforts are required to
standardise protocols for
pretreatment of biomass,
enzymatic saccharification
as well as fermentation
of sugars released after
saccharification. And, even if these
technologies get mature enough, the
limited availability of crop residues on
account of their alternative demand
for feed, fodder and domestic fuel
would still remain a major limiting
factor.
The other challenge India faces is to
have sufficient feedstock to produce
the required amount of biodiesel.
The area dedicated to Jatropha
cultivation is less than 5 lakh hectares,
whereas the Planning Commission
Report on Development of Biofuels
(2003) envisaged to cover an area
of 13.4 million hectares by 2011-12.
The under-developed distribution
channels for both bioethanol and
biodiesel also remain a raw nerve –
the ethanol distilleries find it more
remunerative to supply ethanol to
industrial units than to OMCs, citing
better price realisation from the
former. The biodiesel processing
units, on the other hand, find it
difficult to operate at optimum
economies of scale due to lack of
proper backward integration with
farmers as well as forward integration
with distributers/end users.
The way out is in exploring better-
yield biofuel sources through
enhanced and substantial R&D.
“Instead of depending too much
on molasses-based ethanol and
Jatropha-based biodiesel, India has
to move forward to take advantage
of other promising feedstock crops.
Sweet sorghum and tropical sugar
beet have good prospects in the arid
tracts of the country. Substantial R&D
investment is required for developing
cost-effective second and third
generation biofuels. Simultaneous
thrust is necessary to strengthen
the processing, marketing as well
as distribution channels as well as
setting realistic targets, considering
the available resources so that
they are met as planned,”
Dr Parappurathu states.
Companies have ramped up their
efforts to get better strains of biofuel
sources so that the yield increases.
A senior official of the state-owned
Indian Oil Corporation (IOC)
highlighted how the company has
been using thousands of hectares
of wasteland in Chhattisgarh,
Madhya Pradesh and Uttar Pradesh
for growing an improved strain of
Jatropha and is awaiting a possible
better yield.
“We are cultivating a total of
7000 hectares of wasteland in
Chhattisgarh, Uttar Pradesh and
Madhya Pradesh with Jatropha –
5899 hectares in Chhattisgarh,
293 hectares in Jhabua, Madhya
Pradesh, and the rest is in Uttar
Pradesh where it is following a
Public-Private Partnership (PPP)
model. Since Jatropha takes a longer
time to give results, we are awaiting
the results of the technical trail of
the strain,” the official says, ruing that
they have not received any incentive
from the government for their develop the best technology to
researches. make maximum impact on the
market.” The Honeywell subsidiary
In India, the focus remains on ethanol
has collaborated with a number
and Jatropha-based biodiesel while
of entities in India – it signed a
the world has gone far ahead. A case
memorandum of understanding with
in point is an entirely algae-based
IOC several years ago and continues
fuel-powered building constructed
to help evaluate and develop new
by German company Arup. As far as
technologies for biofuels in India.
advanced biofuels are concerned,
premier Indian institutes like The The scientific community, however,
Energy and Resources Institute hinges on algae, seen as one of the
(TERI) have undertaken pioneering most promising source of biofuel
works. A number of other research at present. “Compared to other
organisations, too, have been working feedstocks, algae can provide a high-
on second and third generation yield source of lipids, which can then
biofuels in India. The Defence be converted to biodiesel, ethanol
Institute of Bioenergy Research or even aviation fuels and that too
(DRDO), Pithoragarh, DBT-ICT Centre without compromising food supplies,
for Energy Biosciences, Mumbai, destruction of rainforests or use of
National Institute of Interdisciplinary arable land,” Dr DK Tuli, Executive
Science and Technology (CSIR), Director & Centre Coordinator, (DBT-
Trivandrum, Indian Agricultural IOC Advanced Bio-Energy Research
Research Institute (ICAR), New Delhi, Centre), Faridabad, tells Energy Next.
are some of them.
Food vs. fuel: A myth or impending
Dr James Rekoske, Vice President crisis?
& General Manager, Renewable
India’s over-dependence on Jatropha
Energy and Chemicals, UOP, a
may lead to land issues, some feel,
Honeywell Company, tells the
and one of the main reasons for
magazine, “Advanced biofuels
India’s under-performance in meeting
can be developed from a variety
blending targets is the failure to
of sources and it is important to
develop a system for a viable biofuel
Hurdles in expansion of energy crop cultivation
• With increase in market scope of energy crops, farmers may prefer
cultivating them over food crops, leading to land scarcity and price
increase of food stuffs.
• An expansion of energy crops may trigger legal issues like land-
grabbing on an extensive scale by plantation developers against
marginal landholders. For instance, in Indonesia, the establishment
of large palm oil plantations has been associated with alleged land
grabbing and human rights abuses.
• Demand for mono-culturing of energy crops may lead to destruction
of existing forests and biodiversity, especially in densely populated
countries like India and China as the land in use is precious to urban
and agricultural purposes. The scenario may be quite different in
forest-rich countries of Latin America and Africa.
• In extensive energy crop cultivation, livestock may even be deprived of
fodder due to loss of forests and pasture lands.
• India has 30 million hectares of wastelands, generally considered
Common Property Resources (CPR) where the land will be used as a
source of food, fuel, fodder, timber, and thatching for the poorest. So
a sudden shift in non-edible energy crops cultivation will interfere with
rural people’s demands.
Source: EAI
May 2013 | Energy Next | 15
 Cover Story Biofuels

value chain – to begin with, the the focus on development of distort the balance between food and
produce is insufficient. Besides, too biofuels is from non-arable lands fuel crops. “Certainly MSP, MPP will
much dependence on such sources in India, it would probably be an encourage the farmers to do energy
may also put a strain on the natural issue to convert edible sugars for crop cultivation,” says Santhanam.
resources of India – crops such as ethanol production in breweries in But in case of improved incentives
sugarcane are highly water-intensive. a dedicated way even under surplus for food crops, “there will be a shift in
supply of sugar cane from agricultural cropping pattern”, especially against
With a growing population and
lands... So a clear line of separation sugarcane farming where
shrinking land, it will be a challenge
on the basis of land origin of crops, land owners have to put up with
for India to ensure a steady supply
especially for agricultural energy lack of incentives and depleting
for both biofuels and food grains.
crops has to be maintained in biofuel labour force at present. He adds,
Experts opine the country is lacking
production,” he says. “Centralised oil seed processors,
in technology and infrastructure to
declared as bodies for payment of
derive perceivable advantage Support mechanisms such as
Statutory Minimum Price (SMP) in the
out of direct conversion of Minimum Support Price (MSP) and
biofuel policy would encourage a
sugarcane juice to ethanol mainly Minimum Purchase Price (MPP) are
large number of farmers to cultivate
due to the high demand for sugar. in place for non-edible feedstocks
energy crops like Jatropha. This
The provision in the policy to divert to encourage the sector and given
scenario on operation may trigger
sugarcane juice for producing ethanol the perennial nature of biofuel crops,
increased incentives for food crops to
therefore is not an option. “During such mechanisms are essential to
restore balance.”
periods of excess production, certain sustain the interest of the farmers.
distilleries already convert sugarcane However, such tools are not Experts also do not rule out a
juice into ethanol. However, using favouring their cultivation – scenario of using sugarcane juice for
sugarcane for fuel beyond a limit the farmers consider these crops producing ethanol. Such a possibility
would be highly unsustainable in the as supplementary option for cannot be totally ruled out in cases
long run given its high requirement augmenting their income and of uncontrolled petroleum price
for water and other inputs,” Dr employment, according to spirals in future, according to Dr
Parappurathu says. He compares Dr Parappurathu. “Due to under- Parappurathu. Under such a scenario,
India with Brazil where sugarcane developed processing infrastructure not only the sugar production in the
ethanol is used as transport fuel, and poorly defined distribution country would be hit, but it would
saying India lacks in the farm yield channels, a proper biodiesel value also lead to an unhealthy shift of
or the juice-ethanol conversion chain is not taking shape in the land and resources towards this
efficiency and its large-scale use as country. Barring some commercial sector. “Therefore, the policy should
fuel is a difficult proposition. ventures, the state of affairs with sufficiently address this possibility and
biodiesel feedstock cultivation is preemptive legal provisions should be
For Santhanam, using sugarcane
not very bright right now. Therefore, put in place to avoid such food vs fuel
juice for producing ethanol is
there is no immediate threat from this faceoff in the future,” he emphasises.
very much against the policy’s
sector for food crops,” he assures.
emphasis on using wasteland As the market for biofuels
for biofuel production. “Since But there is a worried lot too, who evolves and becomes lucrative, there
the biofuel policy clearly states think that the MSP and MPP may is every probability that resources
(land, water, and other inputs) would
be diverted towards feedstocks. Even
What India must do to expand biofuel production though to a lesser extent, 2nd and 3rd
generation feedstocks are also not
• Biomass/oilseed production efficiency has to be improved on per unit totally free from this threat. This has
area basis for increased production of biofuels. already happened in several countries
• Efforts have to be made for use of byproducts like leaves from energy like the US, the European Union,
crops for fodder purposes to increase their area expansion. Japan, etc., thereby pushing food
prices far too high than otherwise.
• Since the energy crop yields achieved on degraded land are relatively Biofuels evidently had a major role in
lower, substantial government support is required for improving the 2008 episode of global food price
biomass/oilseeds production, transport and cultivation costs. inflation.
• To realise the benefits of biofuel production, there should be clear Advocates of biofuels cite the
and well- enforced land-use regulations, particularly in countries with prospective rural employment
tropical forests where small land owners are at risk of conversion to
generation opportunities arising out
other land uses.
of the cultivating energy crops. But
Source: EAI
16 | Energy Next | May 2013
researches in the field have presented
details that oppose the perception.
Though India’s policy is designed
to minimise resource diversion
impacts, several negative externalities
arising out of large-scale feedstock
cultivation were reported in recent
studies which show how the crops
were promoted with resource-rich
farmer bias, and reinforced the
existing marginalisation of small
farmers. “In the garb of acquiring
degraded land for cultivation
of biofuel crops, several private
companies are amassing large
stretches of lands and converting
them into real estates. In many areas,
biofuel crops were turning out to be
unsuitable for cultivation in relation to
the ecological and socio-economic
conditions of the locality. Such
unscrupulous plantings also resulted
in loss of diversity of these
otherwise multi-functional
lands, thereby negating the
local needs of people for
fodder, fire wood, cattle
grazing, etc. In this context,
special care is needed
to reorient national and
regional policies to address
the possible negative
socio-economic and
ecological consequences,”
states a study called
‘Biofuels in India: Potential,
Policy and
Emerging Paradigms’.
Learning from the leaders
Countries such as the US and
Brazil are leading in using biofuels
to contain carbon emissions. In
fact Europe went to the extent of
imposing a carbon tax on non-
European aircraft flying into
its sky limits, although it recently
decided to temporarily defer
the enforcement of the tax. At the
same time, it’s debatable whether
such a measure or a possibility
thereof can make any impact on the
uptake of biofuels. What comes out
clearly is that economies, whether
developed than India or at par,
are taking significant strides in the
direction and there are chances of
learnings India cannot afford to miss.
“India being the second largest
producer of sugarcane in the world
after Brazil should observe Brazil
National Alcohol Programme,
PROALCOOL of 1970s to promote
biofuels development. It should also
encourage production and sale of
fuel flex vehicles with tax incentives
to run with renewable fuels. Besides,
government investment in breweries
infrastructure development is needed
to make bioethanol economically
viable. Improved subsidies for
sugarcane cultivation can also boost
local production of bioethanol,” says
Santhanam.
Dr Parappurathu says once the
transformation to blended fuel gains
momentum, it will be a challenge to
monitor the level of conformity to
the Bureau of Indian Standard (BIS).
“In this regard, the Brazilian system
is worth emulating. The Flex Fuel
Vehicles (FFVs) that comprises of 70
per cent of new car sales in Brazil and
run on higher levels (>20 per cent) of
blended fuels have come with special
computerised systems that monitor
ethanol-petrol ratio of the fuel.
Though the present levels of blending
in India does not mandate any engine
modifications of vehicles, such
innovations can be thought of in the
future, if the country progresses to
greater levels of blended fuel regime.”
A comparison of blending capacities
of India and Brazil comes naturally
– Brazil has set up an economically
competitive national biofuel sector
largely based on sugarcane with
blending levels as high as 25 per
cent supported by the superior
yield of sugarcane in Brazil (80 t/ha)
and a cost-effective technology of
converting sugarcane juice directly to
ethanol. The bioethanol yield in Brazil
is around 5,500 litres /ha (75 litres /
tonne of sugarcane), higher than that
of any other country.
In India, the yield of sugarcane is
relatively low (65-70t/ha) and the
yield of ethanol is only 700-800
litres per hectare. Ethanol recovery
from molasses is much lower than
sugarcane juice. Even with direct
conversion of sugarcane juice to
ethanol, Indian distilleries are not on
par with Brazil in terms of efficiency
in recovery, experts
feel.
“India has to look for
improved technology
and management
practices to maximise
the efficiency from the
existing feedstocks.
Lower plant capacity,
use of batch process
technology, inefficient
byproduct and effluent
management practices,
etc. are among the
major technological
constraints faced by
the ethanol industry
currently that are to be addressed.
Long-term technological targets
like biotechnological applications
to increase the sugar content of
feedstock crops, commercial use
of microbes and membranes, etc.
should also be devised to improve
efficiency. A shift in the focus of
research towards developing lower-
cost second and third generation
biofuels is needed along with
sufficient (and sustained) political
resolve to make the adequate
investments in this area. The
government should also make efforts
to reflect the changing priorities in its
policies,” Dr Parappurathu says.
May 2013 | Energy Next | 17
 In Conversation Dr DK Tuli

‘Biofuels can solve oil crisis

overcome technological
Dr DK Tuli is the
Executive Director
and Centre
Coordinator
(DBT-IOC Advanced
Bio-Energy Research
Centre), Faridabad,
and a well-known
biofuel expert
with an experience
spanning over
a decade. In
an interview to
Sayantani De, he
speaks about how
ongoing research
in India is exploring
new avenues to
find a sustainable
source of biofuel and
why technology is
important in doing so

The National Policy on Biofuels
aims to bring biofuels into the
mainstream with a target of 20 per
cent blending with conventional
fuels by 2017. How do you think this
can be achieved?
India has huge potential for a biofuel-
based energy sector in terms of
biomass availability. The development
of biomass-based energy would
ensure that new technologies are
available to keep pace with society’s
need for clean and viable alternatives
for the future. Biofuels have an
added advantage as they can be
introduced into the existing fuel pool
infrastructure easily and can comply
with multiple policy objectives.
To transform this vision into reality,
the Government of India has
formulated a roadmap for achieving
the goals by framing a National Policy
on Biofuels, where the focus is on
mainstreaming of biofuels and their

18 | Energy Next | May 2013

only if we
challenges’
role in the energy and transportation
sector of the country in the
coming decades. The goal of the
policy is to ensure that biofuels may
be made available in the market
to meet the demands of blending
of 20 per cent biofuels (both
biodiesel and bioethanol) by 2017.
In order to prepare the country for
making biofuels available within the
prescribed time frame, necessary
effort needs to be made – to put in
place technologies which can come
in handy for achieving the targets.
In the absence of very large
coordinated efforts, we are surely
going to miss this target.
Second-generation biofuels such as
lignocellulosic ethanol and algae-
based biofuels can make a definite
contribution to the transport fuel pool
and this area is currently under sharp
focus of research laboratories and
industrial R&D labs in India.
To what extent can biofuels help
India achieve its carbon emission
reduction targets?
The contribution of different biofuels
in reducing fossil-fuel consumption
varies widely when the fossil energy
used as an input in their production
is also taken into account. The
fossil energy balance of a biofuel
depends on factors such as feedstock
characteristics, production location,
agricultural practices and the source
of energy used for the conversion
process. Different biofuels also
perform very differently in terms
of their contribution to reducing
greenhouse gas emissions.
Blending of ethanol into motor
gasoline not only provides
sustainability and carbon dioxide
reduction, but also improves
the combustion properties of
the gasoline by increasing the
octane of the blend. Similarly,
microalgae which are capable of
performing photosynthesis produce
approximately half of the atmospheric
oxygen and simultaneously use the
greenhouse gas carbon dioxide
to grow photoautotrophically.
Hence production of biofuels from
lignocellulosic ethanol and algal
sources will definitely help India
achieve its carbon emission
reduction targets.
Countries like the US and Brazil have
been blending 10 per cent ethanol
with gas regularly. Can biofuel
be the answer to the impending
petroleum crisis?
At present, biomass contributes
around 10-14 per cent of the world’s
energy supply and is the fourth
largest after coal, petroleum and
natural gas, but the main use has
been direct combustion, and that,
too, in mostly poor rural areas.
The biomass may be converted to
transport liquid fuel like ethanol,
butanol, biodiesel, and biogas. The
first commercial use of biomass for
liquid transport fuels has been the
production of ethanol for blending
into motor gasoline. While the US
and Europe used corn for ethanol
production, countries like Brazil and
India having significant sugarcane
plantations used molasses for
producing ethanol. Brazil introduced
commercial gasoline with ethanol
content of about 25 per cent and
also introduced specially designed
fleet of vehicles which were able
to use 85 per cent ethanol. The US,
which is the largest user of gasoline,
Second-generation
biofuels such as
lignocellulosic
ethanol and algae-
based biofuels can
make a definite
contribution to
the transport fuel
pool and this area
is currently under
sharp focus of
research
labs in India
introduced gasoline with 10 per cent
ethanol content. A similar trend was
observed in several other countries,
including India. However, this large-
scale production and use of ethanol,
mainly from the primary crops like
sugarcane and corn threw up another
problem as the prices of corn and
its availability as a food source got
seriously affected. This started a
new debate on “food versus fuel”,
leading to serious thinking on looking
for alternate non-food, bio-based
sources for ethanol production.
In India, till now, ethanol has been
produced from molasses which is the
by-product of sugar production and
hence the availability of ethanol for
gasoline blending is directly linked to
sugarcane production. As is well-
known, sugarcane production in
India is cyclical in nature and is linked
to the purchase price of the cane.
This has led to serious disruptions in
fulfilling the government mandate
of blending 5 per cent ethanol into
gasoline. Although efforts are on to
allow up to 10 per cent ethanol in
gasoline, there are serious concerns
about the uninterrupted supply
of ethanol. Therefore, the Indian
scientific community has a challenge
to develop alternate bio-based
sources like lignocellulosic materials
for ethanol production. Biofuels can
become the answer to petroleum
May 2013 | Energy Next | 19
 In Conversation Dr DK Tuli
crisis only if we are able to overcome
the technological challenges.
What are the challenges of the
biofuel market in India? Has it
developed according to its
potential and as envisioned?
Biomass is abundantly available
in India in the form of agricultural
wastes which can be utilised for
fuel production. However,
much work needs to be done
in the areas of biomass feedstock
improvement, technologies for
pretreatment, fractionation of
lignocellulosic biomass to cellulose,
lignin and hemi-cellulose, and their
conversion to sugars and finally
to alcohol and other value-added
products. The overall technology
comprising multiple steps is still
far from being economically
and ecologically sustainable and
attractive. Any resultant technology
will need to be a complete,
cost-effective as well as
eco-friendly technology.
A number of initiatives have been
taken over the last one decade, by
different ministries through various
scientific promotion agencies
in promoting development of
20 | Energy Next | May 2013
components of a potentially viable
lignocellulosic ethanol technology.
There have been programmes
funded by DST, DBT and CSIR.
However, the overall investment
hasn’t been more than US$ 20 million
which is small compared to billions
of dollars being spent by the US and
European countries.
The Department of Biotechnology,
Government of India, has started
a major initiative to develop
cellulosic ethanol technology base
in the country. Three dedicated
bio-energy research centres have
been established at ICT (Institute
of Chemical Technology) Mumbai,
IOC (R&D), Faridabad, and at ICGEB
(International Centre for Genetic
Engineering and Biotechnology)
in Delhi. These centres will work
on different processes like pre-
treatment, enzyme development and
fermentation technology and will
network in order to arrive at the most
workable technology platform.
The ICT-DBT centre has developed
a pilot-scale technology and has
recently established a 10 tonnes-
per-day pilot at India Glycols limited,
Kashipur. IOC (R&D) has also set
up a multipurpose pre-treatment
pilot plant of 0.25 tonnes per day
with assistance from the National
Renewable Energy Lab, DOE of the
US. The ICGEB centre mandate is to
concentrate on the development of
cellulases for enzymatic treatment.
All these coordinated efforts are
aimed at developing a technology
package for lignocellulosic ethanol
production which is best suited to
Indian conditions.
Which are the prospective areas
where biofuel can be used and are
they being explored properly?
The demand for biofuels is growing
rapidly all over the world. The
US recently revised its national
biofuels target from 7 billion
gallons to 17 billion gallons by 2017,
or approximately a 20 per cent
replacement of transportation fuels
in the next 10 years. In China, India,
Brazil and Europe, economic and
environmental security concerns
are giving birth to new government
targets and incentives, aimed at
reducing petroleum imports and
increasing the consumption and
production of renewable fuels.
Europe, Brazil, China and India, each
of them aims to replace 5 per cent
to 20 per cent of on-road gasoline

consumption with ethanol. Due
to the increasing demand, Brazil is
expanding its role as the preferred
supplier of ethanol to the US,
Europe and Asian countries. The
global demands are also driving new
investment into cellulosic ethanol
R&D and maturation.
The global market for algal biofuels
is poised for rapid growth and
expansion over the next decade.
Algae are attracting increased
investment and interest from biofuel,
aviation and petroleum companies.
The Algae 2020 study has found
that the US and Europe cannot
grow enough corn, soy or rapeseed
to meet their biofuel targets. Fast
growth in the US and European
biodiesel markets from 2007-2012,
has lead to increased biorefining
capacity but a shortage of feedstocks.
The market demand for feedstocks
from biorefineries in the US and
Europe is expanding faster than what
the soybean, corn and rapeseed
feedstock producers can supply
them with. The demand for biofuels
in the US, the EU and Asia will create
new opportunities for algae and
other non-food feedstocks to meet
ambitious targets for biodiesel,
ethanol, and next-generation
renewable fuels.
What is the way forward for
second and third-generation biofuel
sources in India? Which are the
potential sources of biofuel India
should focus on?
Second and third-generation sources
of biofuels in India are mainly fuels
generated from lignocellulosic
biomass and algal sources.
Agriculture at massive scale in India
produces considerable amounts
of non-food and non-fodder class
of lignocellulosic biomass waste, a
significant fraction of which is today
inefficiently burnt in open air at
great expense to the environment.
The surplus lignocellulosic biomass
generated from agriculture and
forest has the potential to become
a significant renewable source
of biofuel or bioenergy. Several
reports (e.g. prepared by TIFAC,
DST) suggest that the quantum of
‘available’ lignocellulosic waste in
India is in the range of 300 to 500
million metric tonnes a year. All of
this biomass if converted to, say
bioethanol or hydrocarbon fuel, can
provide a minimum of 70 million
tonnes of biofuel that can potentially
fully replace gasoline and diesel
consumption today in the country,
if made available at a competitive
price through a commercially and
ecologically sustainable technology.
Compared to other feedstocks,
algae can provide a high-yield
source of lipids, which can then
be converted to biodiesel, ethanol
or even aviation fuels and that too
without compromising food supplies,
destruction of rainforests or
use of arable land. Algae are one
of the fastest-growing
micro-organisms known to us.
Like any other plants, they use
photosynthesis to harness sunlight
and carbon dioxide as a carbon
source. For biofuel markets, algal
strains with high oil content will
help to bring the much-needed
feedstock to biodiesel production
plants worldwide. To meet this
massive demand, several algae R&D,
universities, labs are working in India
on pilot scale and demonstration
projects to turn algae into biocrude
that can be refined into biodiesel,
renewable diesel, renewable gasoline
and aviation and drop-in fuels.
Despite considerable R&D underway
globally and several entrepreneurs
working in the sector, why isn’t the
biofuel sector picking up
in the country?
That’s because the overall technology
comprising multiple steps is still
far from being economically
and ecologically sustainable and
attractive, both in the case of
lignocellulosic ethanol and algal
biofuels. We started very late in this
area and the coordinated efforts
put up by DBT was the only major
initiative. However, we are closing
the research gaps very fast.
The overall
investment hasn’t
been more than
US$ 20 million
which is small
compared to
billions of dollars
being spent by the
US and European
countries
Sources of biofuel, e.g. bagasse
are often also used by other
industries and chances of shortage
of raw material/feedstock cannot
be ruled out. How do you think this
can be tackled?
All agricultural, forest and plant
wastes are classified as lignocellulosic
materials and these are rich in
carbon, hydrogen and oxygen. Due
to their extreme abundance and
relatively lower costs, there is intense
activity going on around the world
for development of technologies for
conversion of lignocellulosic biomass
to liquid or other forms of fuel. In
the Indian context of small farmland
holdings, diverse crop patterns,
biomass collection logistics at the
scale required, and transportation
of the low bulk density biomass to a
single large plant site would all make
the feedstock availability not only
difficult but also expensive for
viability of a mega-scale biomass
biofuel refinery.
Biomass sources like bagasse
and wheat straw are often also
used by other industries or as cattle
feed, so chances of raw material/
feedstock shortage cannot be
ruled out. Hence there’s a need to
develop a technology platform for
non-fodder, non-industry crops
such as cotton stalk, rice straw, etc.
which can be used for generation
of biofuels. Also, technology will be
developed to take multi-feed at one
location, as there may be limited
availability of one feedstock due to
seasonal changes.
May 2013 | Energy Next | 21
 Waste-to-Energy Nisargruna Technology

Tackling the
waste challenge
A zero-garbage,
zero-effluent
method
for waste
management,
developed
by premier
research centre
BARC, has
proved to be
remarkably
T
oday, India is facing a very huge intervention, it is a pity that there has
problem in the form of solid been no significant progress at the
successful and waste – generated on a daily national level.
basis. Many urban local bodies (ULBs)
is increasingly are finding it increasingly difficult to
In our cities the waste is generally
not weighed but measured
being adopted deal with this problem. Most of the
ULBs collect and throw the waste on
by volume to determine the
by many dump yards, thereby polluting the
disposed quantity of waste.
The quantity of waste generated is
municipal environment and wasting precious
resources by making them non-
normally in the range of 0.2 to
0.5 kg/capita/day. In metropolitan
corporations in available for future generations.
cites, this may be little higher.
Despite the Supreme Court’s
the country.
Dr SP Kale Changing Urban Scenario in India
explains Parameter 1991 2004 2010
what makes Total population 84.6 cr 108 cr 118 cr
Nisargruna Total urban population 21.7 cr 35 cr 45 cr
such a Total number of
municipal bodies >3700 >3700 >3700
sought-after
Number of cities having
technology 10 lakh or more population 23 48 60

22 | Energy Next | May 2013

Mumbai generates about 7000 TPD
waste and has a population of about
12 million. Mumbai is only one of the
metropolitan cities in our country.
The population of the country is not
only increasing but a major shift from
rural to urban is taking place at a very
fast rate.
This scenario would certainly put
more stress on resources due to
different lifestyles of urban and rural
sectors. The increased consumerism
in the urban sector generates more
solid waste materials and prevents
its effective management due to
constraints in available space for
the purpose. Therefore, the stressed
municipal corporations try to opt
for bigger dumping yards in remote
places. As soon as solid waste
material is beyond the sight and
limits of the urban local bodies,
administrators’ concern about
the processing of such materials
ends. The increased costs towards
transportation of these materials
to dumping yards are accepted as
inevitable and more infrastructures
are provided to improve these
facilities. However we tend to
overlook the basic cause of the
problem. Decentralised material
management will be an effective
solution to this problem. The
Nisargruna concept puts more stress
on developing decentralised resource
processing stations and reduction in
dumping yards.
The decentralised approach can
be achieved through four simple
stages. First, the waste should be
segregated at the source, followed
by the collection of the segregated
waste resources separately; then,
decentralised facilities have to be
developed to process the bio-
degradable waste resources; and
finally, the dry waste resources will
have to be recycled.
Mass public awareness campaign
at the national level involving
environmentalists, citizens and
students for handling these waste
resources would be helpful.
Decentralised facilities need to
be created to process the bio-
degradable waste resources. Rag-
pickers would play a significant role
in this process. A large section of our
society depends to a great extent for
their livelihood on waste resources. If
we can effectively use this work force,
we will be able to achieve the goal
of waste management in the coming
few years.
The Bhabha Atomic Research Centre
in Mumbai is a premier research
and development organisation of
our country. The Centre developed
a Nisargruna biogas plant for
processing bio-degradable waste
resources in a decentralised manner.
Several ULBs in Maharashtra and
Kerala have adopted this technology
and put up Nisargruna plants of
0.5MT/day to 5 MT/day capacities in
the last eight years. In Maharashtra,
about 40 ULBs have put up these
plants. Matheran Municipal Council
in Maharashtra is running a 5 MT/day
plant for the last 5 years successfully
and has been awarded ISO 9001
2008 certification for this plant.
Municipal Councils of Kalameshwar,
Katol, Alibag, Dapoli, Roha, Rahuri,
Satana and many others are running
these plants. Municipal corporations
of Pune, Kalyan and Mumbai also
have put up pilot plants in their
premises. It is encouraging to note
that many private sectors also have
adopted this technology to process
the bio-degradable waste resource
generated in their premises. There
are about 150 plants running in the
country and together they have
processed more than 50000 MT of
bio-degradable waste so far.
The first Nisargruna plant was put
into action at BARC in June 2001.
The capacity of this plant was 0.5
MT/year. It was a crude prototype
with a minimum of infrastructure. It
was only an idea which was put into
action. After seeing the success of
this idea, we were encouraged to
develop more plants. Then we started
facing difficulties as the process
started to show internal errors and
problems in the system. The aeration,
for example, proved to be a crucial
factor for the success of the plant.
The design was inadequate to handle
the aeration for bigger capacity
plants. Once the aeration design was
improved the process was fairly under
control. Many gadgets were added
in the design of the plant. In the
present design of the plant, the basic
scientific process has not changed at
all from what was used in 2001.
Design of the first Nisargruna plant (Source: BARC)
Principle behind Nisargruna
Based on the processes of aerobic
oxidation and biomethanation,
May 2013 | Energy Next | 23
 Waste-to-Energy Nisargruna Technology
organic manure (soil conditioner) and
Nisargjyoti (biogas) are produced.
The organically rich bio-degradable
portion of solid waste is mixed with
recycled (depending on availability)
or fresh water to form slurry. The
slurry is then aerobically digested
in the pre-digester, where organic
matter is converted to organic acids.
The pre-digestion is accelerated by
addition of hot water and intermittent
aeration. Pre-digestion reactions are
exothermic and the temperature rises
to 40ºC by itself. Hot water obtained
using solar energy is added to
raise the temperature to
42-43ºC. If sunlight is not sufficient
especially during winter, provision
can be made to use part of the
Nisargjyoti generated to heat the
required quantity of water using
methane stoves. Their main role is
to digest proteins and low molecular
weight carbohydrates to produce
volatile fatty acids.
The smaller molecules like proteins
and simple carbohydrates are
degraded during pre-digestion. The
pH of the feed slurry to pre-digester
is around 7-8. The retention time
(Hydraulic time) in the pre-digester
is four days. After the pre-digestion
the pH reduces to 4-5. The pre-
digested slurry is further digested
under anaerobic conditions for
24 | Energy Next | May 2013
about 15 days. The process of
methanogenesis takes place in this
digester. Methane and carbon dioxide
are the terminal products of this
process. Methane is produced from
two primary substrates, viz, Acetate
and Hydrogen/ Carbon dioxide
(Formate). At this stage the organic
acids are converted by consortium of
methanogenic bacteria to methane
and carbon dioxide.
The undigested lignocelluloses and
hemicelluloses then flow out as high
quality organic manure slurry. The pH
of this slurry ranges from 7.5-8. Since
the waste is processed at higher
temperature, weed seeds are killed
completely and the manure
becomes weed free.
The three steps of Nisargjyoti
production are Hydrolysis,
Acidification and Methanogenesis.
Various bacteria are involved
in these processes.
The Nisargjyoti (biogas) burns with a
blue flame and is ideal for cooking.
Alternately, it can be used to produce
electricity in a dual fuel Nisargjyoti
(biogas) engine.
The processing of bio-degradable
waste resource in Nisargruna
biogas plant achieves the following
important results:
Present design of the Nisargruna plant (Source: BARC)
• Reduction of volume of waste to
the extent of 90 per cent
• Reduction of bio-degradable
component reaching dumping
yard
• Reduction in need of space for
dumping yard
• Reduction in transportation
• Recycling of elemental resources
for sustainable future
• Improvement of environment
in the premises of ULB and
reduction in onset of epidemic
diseases
• Processing of bio-degradable
waste results in generation of
manure and biogas which can
be used effectively to generate
revenue. Every metric tonne
(MT) of bio-degradable waste
processed would generate about
20-30 lg methane and 60-80
kg manure. Manure can be used
for gardening purposes in the
premises of ULB. Biogas can
be effectively used for cooking
purpose wherever possible. It
may be supplied on commercial
terms to bulk user by entering
into a contract. ULB can supply
it for houses below poverty
line free of cost also by passing
necessary resolution. Where
such use is not possible, it can
be converted to electricity and
used for either street lighting or
supplied to government schools
or hospitals free of cost.
Nisargruna plant and the
challenges ahead
A 2MT/day capacity Nisargruna biogas
plant was installed on the premises
of Kalyan Dombivli Municipal
Corporation (KDMC) in Maharashtra
and started functioning in June 2010.
The plant is meant for processing
mainly the abattoir waste generated
in the city and some kitchen waste.
Since this is one of the plants in
public domain, the case study will be
useful to understand the problems
and challenges involved in solid
waste management. The plant is gardens. There are several reasons contracts. The Honorable Supreme
located at dumping yard in Kalyan. for this discrepancy and a good Court guidelines in implementing
It is commendable that the plant is understanding of the concept would rules for segregation and collection
operated sustainably by the operators help in increasing the efficiency of in segregated manner need to be
in an undisturbed way for the last 31 the by-product utilisation. adhered to strictly. It would take
months. The overall efficiency of the some years but we should be patient
plant for waste processing is around Lessons learnt from Kalyan and keep on pursuing the matter.
65 per cent. This is expected as Dombivli plant
The concept of Nisargruna biogas
initially it takes about 4-6 months for There is difficulty in getting plant is to process the waste and
build-up of efficient bacterial cultures segregated bio-degradable waste make these resources available
in the pre-digester and main digester. at the plant site. Many plants in for the next generations. The first
The efficiency of waste handling the premises of various municipal parameter to determine the success
of this plant in the last year is more premises have this difficulty. Kalyan rate therefore should be the quantity
than 90 per cent and is expected Nisargruna plant has overcome this of waste processed. If the plant is
to remain constant in future. The difficulty because the contract for functioning at 90 per cent efficiency,
utilisation of biogas is not done maintenance of the plant includes it would be called reasonably
to the fullest extent. The manure waste collection. The onus is on successful.
generated is used for beautification of operator to run the plant efficiently.
the plant area and partially by KDMC This clause must be included in the There are some plants (in the
premises of Matheran, Pune, Baddi)
Quantity of bio-degradable waste processed at 2MT/day Nisargruna biogas which have show a very high
plant at Kalyan Dombivli Municipal Corporation, Maharashtra efficiency in utilizing biogas. 2MT/
day Nisargruna biogas plant at Baddi
Month Waste Efficiency of Generator Units Units (Himachal Pradesh) has registered
processed waste handling working hour generated used use of more than 40000 m3 of
Jun - 10 2810 4.68 0 0 0 biogas which is equivalent to 1000
Jul - 10 3600 6 0 0 0 commercial sized LPG cylinders
Aug- 10 12450 20.75 60 450 114 in 2 years. Such plants need to be
Sep - 10 12840 21.4 110 825 224 observed carefully and efforts may
Oct - 10 25530 42.55 129 967.5 276 be taken to increase this utilisation.
Nov - 10 23260 38.77 21 157.5 62 It would substantially improve the
Dec - 10 45075 75.125 168 1260 338 output economically. The increase
Jan - 11 42250 70.42 212 1590 467 in prices of LPG have underlined the
Feb - 11 33225 55.37 56 420 176 more and more need of biogas which
Mar - 11 35365 58.94 49 367.5 74 otherwise is lost in the environment.
Apr - 11 44375 73.96 103 772.5 162 The same holds true for manure
May- 11 50600 84.33 135 1012.5 230 utilisation.
Jun - 11 28690 47.82 71 532.5 155
Jul - 11 42450 70.75 23 172.5 54 The sustainability of the plants is
Aug - 11 49140 81.90 0 0 0 another aspect which needs to
Sep - 11 44678 74.46 19.2 144 300 be highlighted while selecting the
Oct - 11 55428 92.38 54 405 517 technology. The first plant which was
Nov -11 52930 88.22 38.5 288.75 78 put in Anushaktinagar (Mumbai) has
Dec- 11 56981 94.97 0 0 0 been functioning for the last 10 years.
Jan -12 55366 92.28 0 0 0 Several plants are now 5-7 years old
Feb -12 52000 86.67 0 0 0 and functioning without any major
Mar -12 58020 96.70 0 0 0 maintenance issues.
Apr -12 55761 92.94 31 232.5 32 The author is Head,
May -12 56879 94.80 196 1470 387 Technology Transfer
Jun -12 51160 85.27 25 187.5 27 and Coordination
Jul -12 45250 75.42 51 382.5 57 Division, at the
Aug -12 56358 93.93 64 480 61 Bhabha Atomic
Sep -12 52595 87.66 117 877.5 138 Research Centre
Oct -12 52345 87.24 119 892.5 183 (BARC) in Mumbai
Nov-12 58610 97.68 90 675 169 (The views expressed
Dec-12 46750 77.92 117 877.5 123 by the author are
personal)
Total 1302771 65.26 2058.7 9365.25 4404

May 2013 | Energy Next | 25

 Study Biofuel

To blend or
not to blend
“C
ontinued economic growth vis-a-vis conventional fuels.” It adds that
A recent in India is driving the need for “adopting a uniform 10 per cent ethanol
increased transportation of blending regimen for gasoline and a 5 per
report, titled goods and people and hence increased cent biodiesel blending regimen for diesel
‘Cost- vehicle sales. While this growth is spurring
the Indian economy, it is also associated
could potentially reduce CO2 emissions by
3 to 4 per cent, creating a total abatement
effective with the challenge of minimising of 10 million to 12 million tonnes of C02e.”
environmental impact,” a recent report by
green CII and Kearney states. It goes on to add “Since biofuels are likely to be a more cost-
effective source of energy than gasoline
mobility’, that “this challenge raises some important
questions: How can India minimise the or diesel, an effective blend regimen could
found that environmental impact caused by the also deliver annual economic savings of
`8,000 to 10,000 crore to the nation.”
blending transportation sector without impacting
the country’s growth momentum? Biofuel blends have multiple advantages
biofuels, Which green technology options and over conventional fuels and are a viable
infrastructure upgrades should be
10 per cent adopted?”
alternate fuel solution for India because
of their impact on the entire vehicle
with petrol To answer these very questions, a joint population on the roads today and their
cost effectiveness vis-à-vis conventional
and 5 per study was undertaken by A T Kearney and
CII to identify and prioritise key actions for fuels. “In fact, they can be a more cost-
cent with cost-effective green mobility. effective source of energy than gasoline or
diesel, and an effective blend regime could
diesel, can According to the report by CII and deliver annual economic savings of `8,000
Kearney, with regards to biofuel blending, to 10,000 crore to the nation. Additionally,
save the “In our study, biofuel blends emerge as a adopting a uniform 10 per cent ethanol
exchequer potential alternate fuel solution for India
because of their impact on the vehicle
blending regimen for gasoline and a 5 per
cent biodiesel blending regimen for diesel
anything population and their cost-effectiveness could potentially reduce carbon dioxide
from `8,000
crore to
`12,000
crore. But
how viable
a proposition
is this?
Sapna Gopal
tries to find
the answers
Source: Cost-effective Green Mobility, A Joint CII-A T Kearney Report

26 | Energy Next | May 2013

emissions by 3 to 4 per cent, creating
a total abatement of 10 million to
12 million tonnes of carbon dioxide.
Furthermore, biofuels also have the
advantage of improving the country’s
energy security and reducing our
overall fuel bill,” explains Ram
Kidambi, Principal, AT Kearney.
Challenges India may face
However, the process could also
mean some pressing concerns which
the country is likely to face if and
when it decides to adopt this method.
“Quite a few challenges need to
be overcome to achieve the above
mentioned savings,” warns Kidambi.
Firstly, significant effort must be
directed toward ensuring an adequate
supply of biodiesel and ethanol, either
through enhanced production from
existing feedstock or from alternate
biofuel feedstock. Also, adequate
care would be needed to ensure
proper blending of biofuel with
conventional fuel to mitigate possible
damage through corrosion caused by
inconsistent blending. The potential
damage to older-generation two–
wheelers as a result of 10 per cent
ethanol blending should be addressed
through proper phasing of the
transition to E-10 fuel and ensuring
availability of regular gasoline in the
interim. Finally, any change in land
use that converts forests or grazing
lands for biofuel cultivation could
have a significant adverse effect on
overall CO2 emissions, and so every
effort should be made to avoid such
a scenario, he advises.
Source: Cost-effective Green Mobility, A Joint CII-A T Kearney Report
Despite the talk of savings, the
problem of land is likely to be a
daunting task, more so for forest
lands and the ones that are useful.
Kidambi feels that every effort
must be made to ensure there is
no change in land use patterns or
diversion of land for the cultivation of
biofuel stock. As biofuels are usually
produced directly from cultivated
crop feedstock, a true life-cycle view
of CO2 emissions needs to include
the effect of change in land use. If
the area used to cultivate biofuel
feedstock is deforested or converted
grazing land, the emissions from
land-use change can be as high as
1,000 g-CO2e/ MJ of biofuel. By
way of comparison, conventional
petro-diesel releases only around
85 g-CO2e/MJ of fuel burned. As a
result, any land-use changes that
convert forests or grazing lands for
biofuel cultivation are likely to have a
significant adverse effect on overall
CO2 emissions,
he elaborates.
Contradictory to popular perception,
according to him, food grain
availability in India or threat to
forest land is not because of limited
availability of land for alternative
purposes, but more to do with
distribution side inefficiencies in food
grains, ineffective price regimes for
feedstock that artificially support
other demand sectors like alcohol
and chemicals, and not investing in
Jathropa alternatives or failing to
increase Jathropa yields, etc.
He firmly believes that the effective
management of food grains can
Biofuel blends have
multiple advantages
over conventional
fuels and are a
viable alternate
solution for India
because of their
impact on the
vehicle population
on the roads
today and their
cost-effectiveness
vis-à-vis
conventional fuels
release enough land to support
cultivation of these types of cash
crops as well.
Significance of policy
While it is believed that the
government has begun taking steps
in the right direction, for instance,
a gradual elimination of artificial
support prices for raw material
feedstock, they can do more.
Specifically, it can support this
initiative in three specific ways:
• It can incentivise R&D efforts for
increasing yields from crops like
Jathropa or other alternatives
that can essentially lessen the
dependence on land.
• Eliminate some of the supply side
constraints for the availability
of ethanol by reducing import
restrictions for this commodity.
• Incentivise setting up of
eco-systems for the sale and
distribution of ethanol and bio-
diesel products in the marketplace.
However, this move may not really
reduce people’s dependence on
petrol and diesel altogether. While
the introduction of ethanol and
biofuel blends will lower the
requirement of petrol and diesel, they
will still remain the dominant fossil
fuels as there will only be 5 to 10
per cent blending and not flex fuel
vehicles, feels Kidambi.
May 2013 | Energy Next | 27
 Expert Speak Dr Jonathan Trent

India has great potential for

developing OMEGA systems
He’s passionate about
algae, he’s passionate
about the oceans, he’s
passionate about the
environment, and above
all, he’s passionate about
finding a sustainable,
carbon-neutral energy
supply and believes
algae can be part of that
supply. NASA scientist
and biofuel guru
Dr Jonathan Trent,
in an e-mail interview
to Rosy Mishra, talks
about the OMEGA
method that he invented
to grow algae for biofuel,
and why he feels that
there will be OMEGA
deployments
somewhere in the
world in the next
few years

28 | Energy Next | May 2013

Amid growing scepticism about the
viability of biofuels as a long-term
alternative to fossil fuels, how can
we make a convincing case for algal
bio-fuels and persuade governments
around the world to spend more on
R&D projects like OMEGA?
There is no doubt that biofuels could
be a long-term, even sustainable,
alternative to fossil fuels, if they can
be produced in sufficient quantities
to meet the demand. In fact, I think
it’s this issue of scale combined with
the question of economics that are
at the root of the growing scepticism
about biofuels. (There are also some
people who worry about the issue
of “food vs. fuel,” but that is at the
The OMEGA system consists of flexible plastic tubes floating offshore, filled with wastewater and
CO2 from near-shore sources that provide nutrients for microalgae, which produce biofuels,
fertilizer, and food. The surrounding seawater assists with mixing and controls temperature of
the algae culture. The algae in wastewater are freshwater algae, which means the surrounding
salt water provides containment, i.e., the algae that escape from the OMEGA system do not
thrive in salt water and will not become invasive species in coastal waters.
root of a kind of cynicism rather than
scepticism).
Algae or rather microalgae are the
best producers of oil and among the
fastest growing plants for biomass
production. Furthermore, they can
be grown on wastewater from cities to build new plants. I developed
to avoid competing with agriculture OMEGA as the solution for coastal
for water and fertilizer. Although cities, which dump their wastewater
algae may produce as much as 100x offshore.
more oil per hectare than soya, we
OMEGA is an acronym for Offshore
still need to grow millions of hectares
Membrane Enclosures for Growing
of algae to meet the current demand.
Algae. There are a lot of other
If you do the calculations of energy
benefits from the OMEGA system
returned on energy invested, taking
that I present in my TED talk (http://
into account the amount of solar
www.ted.com/talks/jonathan_trent_
energy that reaches the Earth and
energy_from_floating_algae_pods.
photosynthetic efficiency, it’s clear
html) and in previous publications
that to produce more energy than
(http://www.future-science.com/
is needed to grow the algae, the
doi/abs/10.4155/bfs.12.53 ). There
system has to be energy efficient
is technical information about the
and it will not be possible to pump
OMEGA system we built in an open
water great distances. In other
access paper “Wiley et al.” at: http://
words, if wastewater is going to be
www.scirp.org/journal/jsbs/.
used, the algae cultivation system
I appreciate the opportunity to
introduce your readers to the
Image by T. Exposito and J. Trent
OMEGA concept and I hope they
will investigate it further. We need as
many people working on OMEGA as
possible, because I don’t think it will
be an easy way to produce all the
fuels we need, but I do think it is the
best system for making liquid fuels
that is truly scalable, sustainable, and
environmentally responsible.
Microalgae offer great potential
for the production of biofuel, but
the process is still said to be some
way from being carbon-neutral or
commercially viable. How is the
OMEGA system poised to deal with
these issues?
The question is how can we make
algae biofuels carbon-neutral or
better still, carbon negative and
commercially viable?
Algae use carbon dioxide along with
sunlight, water, and nutrients to grow,
which means algae are a sink for
carbon. Keep in mind that the fossil
oil we are burning today was formed
by algae that lived millions of years
ago. The question of “carbon neutral”
or “carbon negative” has to do with
the rates of carbon capture by algae
must be close to the wastewater and other plants versus the rate we
burn those plants or their
treatment plant. The problem is
that most treatment plants are by-products and turn them into
surrounded by urban infrastructure green-house gas.
and it’s impossible to build typical If we make biofuel from the oil
algae-growing ponds around existing produced by algae grown last month
treatment plants and it’s impractical and burn that oil, that would be
May 2013 | Energy Next | 29
 Expert Speak Dr Jonathan Trent
carbon-neutral because we capture
the carbon in algae and then put it
back into the atmosphere in a short
cycle; assuming we don’t use a lot of
other carbon-based energy to grow
the algae. Better still, if the algae oil
is 40 per cent of the algae biomass
and we turn the other 60 per cent of
the algae biomass into a stable form
of carbon, such as biochar, then we
can make the algae system carbon
negative. This is true for all biofuels
systems, not just OMEGA.
I address the question of economics
in the next question.
Can the OMEGA system be
connected with renewable energy
infrastructure such as wind or solar
to improve its financial viability?
My graduate student, Brandi McKuin,
has been doing a techno-economic
analysis of the OMEGA system and
the economics for OMEGA improve
considerably if it’s combined with
solar and wind, as well as wave
energy generation and aquaculture.
Here’s an example, of her
calculations, using the San Francisco
Southeast Wastewater Treatment
Plant in her techno-economic
model and assuming a 10 per
30 | Energy Next | May 2013
An artist’s conception of the OMEGA system with the green algae in floating photobioreactor
tubes, the offshore infrastructure with photo-voltaic cells provides access to wave and wind
generators, as well as aquaculture underwater (foreground).
cent profit margin. An OMEGA
system making only renewable
biofuels would produce fuel at a
cost of $6.67/L. If however, the
OMEGA system makes biofuels and
simultaneously treats wastewater, the
cost of biofuels would be reduced
13 per cent to $5.80/L. If the system
makes biofuel, treats wastewater,
and produces renewable electricity
from solar, wind, and wave energy,
the cost of biofuel would be reduced
24 per cent to $4.20/L. If the system
does all of the above and the
OMEGA offshore infrastructure is
used for aquaculture (e.g., growing
mussels), the cost of biofuels
would be reduced 41 per cent to
$1.43/L. In other words, if OMEGA is
integrated into a system that takes
advantage of associated services
and products, its financial viable
improves considerably. This “ecology
or technologies” is an obvious way to
make OMEGA competitive with even
a seemingly inexpensive commodity
like petroleum. Fossil petroleum is
Image by T. Exposito and J. Trent
not really inexpensive, if we consider
its true costs, which in my mind
include government subsidies in
various forms (such as waging wars
to protect access to oil fields), and
the environmental consequences
of its continued use (such as global
warming and sea level rise).
What are the biggest obstacles
you have been dealing with in
getting the OMEGA system into full
deployment?
There are a lot of technical and social
“obstacles” and the “biggest” one
is the one I’m confronting at any
given time. The good news is that
technically OMEGA is not breaking
any laws of physics or chemistry;
i.e., OMEGA has no fundamental
problems to overcome like, for
example, cold fusion. Some of the
social obstacles, like getting permits
for offshore deployments or raising
money, seem pretty daunting. (You
know the old saying: “People want
everything to stay the same and get
better”). These social problems are
site-specific and time-dependent
and I think they are all tractable with
patience and perseverance.
Basically, it seems to me that OMEGA
is an idea whose time has come.
I predict that there will be OMEGA
deployments somewhere in the world
in the next few years; whether I’m
involved in the deployment or not.
Are you in talks with any
organisation to assist you in a
scaled-up demonstration of the
system?
I have just completed a $10.8 million
feasibility study funded by NASA and
the California Energy Commission
and I’m working on a series of
technical papers to share the results
with everyone interested. There
is not currently any organization
funding my interest in doing a
scaled-up demonstration of an
OMEGA system, but I’m talking to
lots of people in various countries
and I’m optimistic that I may be part
of further developments in OMEGA.
What’s important is that someone
starts, somewhere, so others will have
a model to follow!
What would you say are the major
improvements needed to make this
The cost of biofuels (US$/litre) decreases as the OMEGA system includes revenue from
wastewater treatment (WWT), electricity generation (Elect) from solar PV, wind turbines,
and wave generators; and aquaculture.
system a more refined and effective
solution?
Algae or rather
It’s hard to say what universal
“improvements” will be needed for microalgae
OMEGA because each deployment are the best
site will have its own challenges
and advantages. OMEGA and large- producers of oil
scale algae production in general, and among the
would benefit from developments in
algae-strains, culturing techniques,
fastest growing
photobioreactor materials, pump plants for biomass
efficiency, fluid dynamics, monitoring production.
and control systems, and most
importantly significant developments Furthermore, they
in people’s respect for planet Earth can be grown on
and support for sustainable systems.
wastewater from
When do you expect to have the
perfect system with you?
cities to avoid
competing with
We now know how to make
functional OMEGA systems. What agriculture for
we need to “perfect” the systems water and fertilizer
is to start building them in various
locations to find out what we don’t
know that we didn’t know. Once we
aquaculture, will be in full operation
build systems in various sites, each
before 2020.
system will evolve and quickly adapt
and improve. The world is so What do you think of the current
inter-connected now that technology efforts around the world to
develops fast. I’m optimistic that fully replace fossil fuels with clean and
diversified OMEGA systems producing sustainable fuels? Are we going
biofuels, electricity from solar or wind about it as seriously as we should?
or waves, and producing food from Can we bring the much-needed
change in the next 5 to 10 years?
Most people are focused on their
Data from B. McKuin and J. Trent; graph by T. Esposito
day-to-day problems and
not paying attention to the
big-picture—5 to 10 years ahead.
This is understandable for the
general population, but I’m
disappointed the scientific
community is not mobilizing itself
more effectively. We have plenty
of people pointing to the current
predicament (there is a good
video on the Internet that summarizes
the situation at: http://vimeo.
com/39048998); what we
obviously need now is a lot more
scientists and engineers turning
their attention to basic problems
of food, clean water, and
environmentally compatible
energy supplies. Our children and
the “children” of many species
are dependent on our role in the
development of sustainable and
acceptable human lifestyles.
May 2013 | Energy Next | 31
 Expert Speak Dr Jonathan Trent
Photo by J. Trent
Prototype OMEGA system in seawater tank at the San Fransisco Southeast Wastewater Treatment Facility. The
algae in wastewater circulate through the floating tubes with dissolved gas and pH controlled by the partially
submerged column to the left of the people (for details see: Wiley et al. http://www.scirp.org/journal/jsbs/).
Of all the known renewable energy
resources, which one would you
describe as the most promising
solution to the looming global
energy crisis?
From an energy perspective,
I don’t believe there is “one”
technical solution to the “looming
global energy crisis;” there are
many solutions. They start with
conservation, and depending
on the location, they can
include solar PV, wind, and various
forms of waste conversion with
OMEGA being one of them.
At some point we have to realize
that “waste” is ONLY A VERB and
that most of what we now consider
“wastes” are resources that we are
currently wasting. You already
know this in India, but what scares
me is that people in India are
trying to emulate the lifestyle in the
USA. This is scary because the USA
represents only about 4 per cent of
the world’s population that uses over
20 per cent of the world’s resources.
If everyone in India (17 per cent
of the world’s population) lived like
people live in the USA, India alone
would use 85 per cent of the
world’s resources; if India and
China did this, it would require the
resources of 1.8 planet Earths! The
key to sustainability is to develop
32 | Energy Next | May 2013
a lifestyle that combines the best or in outer space, you have to think
features of different cultures that is hard about how to cope with very
sensitive to the needs of limited resources to maintain
future generations. what’s called “life-support systems.”
In my opinion, one of the most These places off Earth are alien,
important things we have learned desolate, and dangerous. In outer
from space exploration is the space there are none of the life-
kind of radical parsimony that supporting resources that we
the world needs to consider take for granted on Earth—like air
seriously. Think about putting or water or food or gravity. Thinking
people on Mars or on the Moon about going to such inhospitable
places makes us think hard about
everything we need, everything
we use, and everything the local
environment can provide…
What we obviously The OMEGA system emerged
need now is a lot more from that kind of thinking.
We looked at cities on Spaceship
scientists and engineers
Earth and thought about
turning their attention waste-streams, under-utilized
to basic problems of spaces, all conceivable energy
food, clean water, sources; we thought about how to
and environmentally optimize and integrate activities and
resources. We even considered how
compatible energy OMEGA could take advantage of
supplies. Our children future sea-level rise.
and the “children”
I think India has great potential for
of many species are developing OMEGA systems and I
dependent on our role want to encourage your readers to
in the development consider this technology, keeping in
of sustainable and mind that “we are not passengers on
Spaceship Earth, we are the crew!”
acceptable human
(The views expressed here are solely those of
lifestyles Dr Jonathan Trent in his personal capacity as a
scientist and professor and do not in any way
reflect the views of NASA or the US government.)
 R&D India Focus

Pursuing the
algae dream
As the reliability of first-generation biofuels
remains questionable, algae-based fuels
seem to be emerging as a promising
alternative. Rosy Mishra discusses the
possibilities and the ongoing R&D efforts in
India to find the most scalable technology

A
lgae as a source of alternative energy, or rather a replacement for
petroleum has interested many a brilliant mind over the years, setting off
many bold ventures, but things have never looked as promising as they
do now. The past was, for the most part, mired in indecision with respect to
policy and investment. But today, exploding global demand for transportation
fuels and increasing impacts of atmospheric CO2, dwindling oil reserves and
calls for energy security, and the subsequent search for alternative, sustainable
and clean sources of energy have rekindled interest in algae.

May 2013 | Energy Next | 33

 R&D India Focus

Why Algae? ideal solution for India’s looming fuel

crisis, considering its geographical
l Far more productive than traditional crops features and natural resources. “India
being a tropical country is well-suited
l Non-food resource
for algal production and has a great
l Use otherwise non-productive land diversity of algae both micro and
l Can utilise saline water and waste CO2 streams macro. India has a very long coastline
l Can be simultaneously used for biofuel production and waste water (7600 km) and a possibility of using
treatment coastal areas and also sea for marine
algal cultivation,” says SR Meena,
l An algal biorefinery could produce oils, protein, and carbohydrates Senior Scientific Officer (Biofuels)
l Cost-effective culture systems using shallow ponds stirred with paddle with the Ministry of New & Renewable
wheels in areas of high solar insolation Energy (MNRE), Government of India.
l More intensive cultivation systems becoming available Meena adds that for growing
l Has potential for culture in areas not used for crop production like desert, freshwater algae, too, India has
land and ocean “enormous wastelands and waste
l Require land, sunlight, water, CO2 and macro-and micronutrients water from sewage and industries
which could be utilised for biomass
production. CO2 /flue gas is
available in tonnes from industries all
Moreover, persisting doubts over the production of biogas (methane being over India”.
viability of first-generation biofuels the main ingredient).
production owing to its possible Rao, however, thinks otherwise.
clash with food supply and impact Besides, algae do not compete with “Honestly speaking, I don’t think it
on biodiversity have added to the agriculture for water, fertilizer or is a viable option for India, as it has
growing appeal of algae. Advances in land. It can grow in places away from to be cultivated in huge areas and
biotechnology such as the ability to forests, hence minimising the harm our land mass being mostly agro-
genetically engineer algae to produce caused to the eco-and-food chain based, it is difficult to get hundreds
more oils and convert solar energy systems. And yet doubts abound of acres of land required to grow
more efficiently have also opened up about the viability of algae-based algae for a viable production profile.
new possibilities. biofuels. The high water requirement will be
According to TR Rao, Director another deterrent for the growth of
The algae advantage algae. The cost of fertilizers needed
of Mumbai-based Sustainable
Some experts believe that algae is set Technologies and Environmental for a robust growth will create more
to outdo all other feedstocks as the Projects Ltd. (STEPS), “For large- pressure on the already existing
cheapest, easiest, and most eco- scale production, large tracts of land subsidy-supported fertilizer industry,”
friendly way to produce liquid fuel. are required. Typically when algae he reasons.
The unicellular organisms only need grow, it is approximately 1 per cent The country’s enormous diversity,
sunlight, water and carbon dioxide of the total volume you use. So, to vast coastal region, tropical climate
to grow. They can multiply very fast, produce high quantity of algae, you and an abundance of solar energy
and they help remove carbon from have to have huge water bodies. may make it appear perfectly
the air and nitrogen from wastewater, Also, the water needs to be properly equipped to cultivate algae on a large
another environmental benefit. maintained which means, more scale, but in order to take advantage
Interestingly, some algae strains or expenses in the maintenance of of these resources, there needs to be
variants contain up to 50 per cent water quality. Again, the wet algae substantial efforts on the part of the
lipids, making them very suitable for produced have to be separated from government and the industry.
the production of liquid fuels. One water and dried.”
acre of algae can produce enough “In India, it is possible to grow algae
oil to make 19,000 litres of biodiesel “A practical problem is processing the in large quantities using waste water
in a year. By comparison, an average algae and converting the same to oil. from different sources which is
acre of corn produces 1,600 litres Each individual unit for cultivation of rich in nitrogen and phosphates.
of ethanol per year, and an acre of algae must have its own algae-to- However, this has to be an exercise
soybeans yields just 265 litres of oil conversion plant without which involving the government, local
biodiesel per year. the transportation costs will make municipal bodies and other statutory
the entire exercise unviable,” Rao authorities,” explains Rao whose
Algae can be a source of biodiesel, emphasises. company’s algae-to-bio-diesel
bioethanol and biobutanol, and it can technology won the prestigious
also be used for the production of Advantages for India
Lockheed Martin India Innovation
hydrogen (for use in fuel cells); and Some experts believe algae can be an Growth program Gold Medal in 2009.

34 | Energy Next | May 2013

R&D activities
Many firms across the world are
working on cultivation and harvesting
of algae biomass and scores of
companies – in both developed and
developing nations – are racing to
unlock algae’s energy potential. In
India, several laboratories/institutions/
universities are engaged in intense
research to find the most efficient
and cost-effective way to make oil
from algae.
Researchers are trying to figure
out how to grow enough of the
right variants of algae and how
to extract the oil most efficiently.
According to Meena, India is having
a “very good base for jumping into
commercialisation” of algae-based
biofuel production technology.
Various groups across the country
have developed algae culture
collection centres and identified
some of the robust algae strains that
can be successfully employed for
large-scale biofuel production.
Institutes like IMMT Bhubaneswar,
NIIST Trivandrum, CSMCRI Bhavnagar,
and NIOT Chennai have developed
capabilities to grow microalgae on a
large scale and have also developed
techniques for nutrients supply and
harvesting. IIT Karagpur and NCL
Pune have developed effective
harvesting technologies which are
being patented now.
The International Centre for
Genetic Engineering and
Biotechnology (ICGEB), New Delhi,
is working on genetic manipulation
of microalgae for improving
productivity and oil content, but it is
in a preliminary stage.
The DBT-ICT- Centre for Energy is
working on multiple projects related
to biofuel production from algae.
The objectives of the current projects
include development of microalgae
as a feedstock for biofuels, improving
the algal feedstock yield by media
engineering /consortia development,
improving photosynthetic efficiencies
of promising algal feedstock. The
Centre has a state-of-the-art facility
for growing algae under varying
natural environmental conditions.
This platform facilitates translating
laboratory studies to open culture
systems-raceway ponds.
“The group is also involved in
modification of algal production
system wherein raceway ponds are
being designed that provides the
growing algal cells with the required
dynamic light environment; power
efficient mixing and achieves three
times surface productivities per
unit area. Besides these activities,
the Centre is also focused on
development of algal genetic
manipulation tools and genetic
engineering of model as well as
non conventional algal species for
biofuel,” says Professor Arvind M. Lali,
Centre Coordinator and professor
of Chemical Engineering, DBT-ICT
Centre for Energy Biosciences,
Mumbai.
The Centre also plans to initiate
work on the macroalgal front
in collaboration with CSMCRI,
Bhavnagar. “Attempts will be made in
mining for novel enzymes towards
efficient scarification of macroalgal
biomass and fermentation strategies
to obtain biofuel,” according to
Professor Lali.
The Mumbai institute is also
collaborating with some foreign
universities for research on algae-
based biofuels technology. Some
of them are Queensland University
of Technology, Brisbane, School
of Biological Sciences, Queen’s
University, Belfast, and Department
of Biochemistry, University of
Cambridge, UK.
Moreover, the Central Salt &
Marine Chemicals Research
Institute (CSMCRI) is one of the
leading institutes working on
commercialisation of macroalgae,
and it has successfully demonstrated
microalgae cultivation in salt pans for
biofuel production purpose, although
the technology needs “fine-tuning”,
says Meena.
According to him, the Ministry of New
and Renewable Energy (MNRE) has
supported two R&D projects. One at
the CSMCRI in Bhavnagar for techno-
economic feasibility of large-scale
seaweed cultivation integrated with
bio-fertilizer and ethanol production;
and another at the Phyco Spectrum
Environmental Research Centre in
Chennai for the development of
hybrid bio-reactors – open pond
cultivation systems integrating
sinusoidal magnetic fuel technology
to enhance the qualitative and
quantitative efficacy to algal biomass
production.
Premier research organizations like
The Energy and Resources Institute
(TERI), Defence Institute of Bioenergy
Research (DRDO), Pithoragarh,
and Indian Agricultural Research
Institute (ICAR), New Delhi, have also
undertaken pioneering works in the
field of algal biofuels.
Chennai-based company Sea6
Energy is developing technology
to grow and convert seaweeds,
technically known as macroalgae,
into biofuel.
May 2013 | Energy Next | 35
 Green Crusaders Climate Parliament

Working for a
cleaner future
At a time when nations across the
globe are snapping supply lines crucial
for the promotion of renewable energy,
a group of legislators is working to keep
the industry alive and kicking.
Sayantani De details its success
and future plans

R
enewable energy, even decades after being accepted as an
eco-friendly source, is struggling to garner the kind of support
it should have. Going by the trends worldwide, renewables are
indeed having a tough time competing against conventional
fossil-based energy sources, not only in terms of cost or acceptance,
but more importantly, owing to the lack of political will.
And there are evidences galore – several countries, especially in
Europe, are making renewables their first choice when it comes to
adjustments to accommodate the economic slowdown; countries
like Germany and Spain, once setting cleantech milestones in the

36 | Energy Next | May 2013

region have of late grabbed headlines
for reducing, if not withdrawing
incentives provided to renewables.
Experts fear that the emergence of
cheaper and apparently ‘clean’ fuel
sources such as shale gas can further
cut through the renewables market
across the globe, if the governments
don’t stick to effective policies
to support it.
Therefore, the role of policymakers
has become as important as that
of a technology expert or a facility
developer; the sheer push of an
enabling and effective policy can
be the game changer. Across the
globe, like-minded policymakers
are therefore connecting with each
other to bring in legislations that
help renewables thrive even in the
face of stiff competition. One such
group is Climate Parliament where
legislators from various countries
– both developed and developing –
have joined hands to promote clean
energy sources.
In a developing country like India,
the growth of renewable energy
is closely related to the overall
development in the country.
As the vision statement of UN’s
flagship ‘Sustainable Energy for All’
says, energy can lead the way in
connecting the dots between growth,
energy, water, and food security,
poverty, climate change, biodiversity,
health, and women’s empowerment.
Being the largest democracy in the
world, Indian parliamentarians can
play an important role in addressing
climate change – by focussing on
the development of renewable
energy. And by linking up concerned
parliamentarians, Climate Parliament
highlights the sector through
organising national parliamentary
groups and international meetings to
push for transition from fossil fuels
to renewable energy. Besides, the
group advocates for higher public
and private investment to switch the
world’s power supply to renewables.
The group has been concentrating
on five essential policy areas for
the transition to a sustainable
energy future – new grids, new
incentives, new investment, new
energy efficiency measures, and new
assistance for the poor. “We have
been advocating for increase in the
share of renewable energy to 15 per
cent in the electricity mix and the
government’s move in this direction
is a positive outcome,” Mukul Sharma,
the South Asia Regional Director of
the group tells Energy Next.
Sharma praised the efforts India
has undertaken in recent years
to arrest climate change
and promote renewable
energy – National Action
Plan on Climate Change
(NAPCC), feed-in-tariff for
renewable energy-based
electricity, capital subsidy
for some off-grid RE
systems, incentives like
accelerated depreciation
and GBI for wind
and solar energy and
initiation of the RPO
and the REC market.
Although it is heartening
to see that in India,
private sector investment
has formed the major
contributor towards RE
development, there is a
lot more to do. “Policy
stability is very essential
for maintaining investor
confidence in the renewable
energy sector. There is also
a need for a long-term and
comprehensive renewable energy
law as well as definite long-term
incentives for the sector,” he says.
As reports of a majority of the states’
failure to meet renewable energy
obligation (RPO) targets pour in,
Sharma says implementation of
central government policies at state
level has to be effectively monitored.
May 2013 | Energy Next | 37
 Green Crusaders Climate Parliament

Climate Parliament’s India plans group of legislators in Parliament of

India, both in Lok Sabha and Rajya
Sabha, who are tirelessly promoting
• Pursuing the government for following Estimates Committee
solar, wind, hydro and biomass
recommendations for increasing the budget allocation for MNRE to
energy at all levels. Members from
1 per cent of the total Union Budget allocation.
all the major national and regional
• Ensuring government commitment towards the NAPCC-suggested political parties, as part of Climate
renewable energy target of 12 per cent by 2017 and 15 per cent by 2020 Parliament India, can claim to have
as well as ensuring co-ordinated efforts towards this from all related played a role in increasing India’s
central and state government agencies. 2020 renewable energy target from
• Pursuing the government for setting up a comprehensive time-bound 6 per cent to 15 per cent; now
plan for establishment of transmission and evacuation facilities for they are pressing for an increase
renewable energy; special viability gap funding provisions for renewable in the MNRE budget to make
energy related projects can prove instrumental. it 1 per cent of the total union
• Development of decentralised renewable energy projects and off-grid budget since December 2011,
applications in rural areas – providing energy access as well as meeting following the Estimates Committee
other developmental objectives. recommendation that the
government should allocate 1per
• Promoting use of renewable energy in hospitals, schools, ICTs and cent of the national budget towards
other commercial applications through coordination between different renewable energy for 2012-13. The
ministries and organisations. group also advocated for priority
• Advocate for increased use of renewable energy in other sectors and sector lending for renewable energy
industries - solar pumps in agriculture, storage in food processing sector and considers the revised
industries, powering railway stations through wind and solar energy,etc. guidelines of RBI for including
• Focus on renewable energy financing – would require initiatives such certain off-grid renewable energy
as separate sectoral exposure limit for RE projects, long-term financing, systems in priority sector lending a
priority sector lending, soft loans by increased number of banks, etc. major step in this direction.
• There should also be effective and efficient utilisation of funds available Last year, the legislators of the group,
– other instruments such as re-financing, tax-free bonds, partial risk including Opposition party’s Rajiv
guarantee mechanism, etc. Besides, the government has access to Pratap Rudy, met the Prime Minister
international funds such as Green Climate Fund, the Clean Technology and also wrote to the Finance
Fund, etc. It should allocate a portion of resources available from these Minister about their concerns over
funds for renewable energy projects. the potential roadblocks to the
• Encouraging regional cooperation for renewable energy development development of renewable energy in
in South Asia – countries in the region need to promote cross- India. The Prime Minister stated that
country renewable energy/power trading and invest in long-distance he would maintain keen interest in
transmission infrastructure as well as co-operate on areas of regional the implementation of the NAPCC
resource mapping and research and development for renewable energy and ensure that various targets,
technologies. including an increase in the share of
new and renewable energy
to 15 per cent by 2020, are
“Although the NAPCC prescribes energy can significantly improve successfully met. The MPs of the
RPO targets for the states, most of the availability of credit for investors. India group also sent a
the states have set lower targets, and There were recent talks about memorandum to the Finance
are also not on track for meeting a special window for lending to Minister suggesting a series of
these targets. Also, there is a need renewable energy projects in public financial measures that could be
for fast-paced development of sector banks – this can prove to instrumental in the development
grid infrastructure for integrating be a very positive initiative in this of renewable energy in the country
the increasing renewable power direction. Also, there is a need for the and could also be incorporated in
generation in the country. It can thus Ministry of Finance and the Planning the national budget 2013-14. This,
be considered to allot MNRE certain Commission to consider allotting the group claims, “influenced the
grants for working on renewable more funds to MNRE so that it is government’s decision to increase
energy transmission as well.” able to efficiently implement focus on renewable energy in the
programmes for renewable energy 12th Five-Year Plan and the
Stressing the need for a robust development and meet the targets current budget.”
financing mechanism to promote set in the National Action Plan on
the sector, Sharma said, “Priority Climate Change.” In the 12th Plan, renewable energy
sector lending and separate sectoral has received special focus with a plan
exposure limit for renewable Climate Parliament has an active to add grid-connected capacity of

38 | Energy Next | May 2013

30,000 MW and a proposed outlay for
MNRE of about `33000 crore (GBS of
`19113 crore and IEBR of `13,890
crore). In the budget 2013-14,
renewable energy has been given
more importance compared to
previous ones, with initiatives such as
allocating `800 crore for wind sector
for reintroducing generation-based
incentive (GBI) scheme, allotment
of National Clean Energy Fund
(NCEF) funds to IREDA to facilitate
low costs financing to renewable
energy projects, and programmes to
reuse municipal solid waste (MSW) to
generate energy.
“This budget can be considered
a step in the right direction. The
proposed budgetary allocation for
MNRE in the Union Budget 2013-14
includes a GBS of `1521 crore, which
is an increase of approximately
32 per cent over the last year’s
budget allocation (revised estimates).
This can be considered a sign of the
government’s growing realisation
of the importance of the renewable
energy sector. Yet whether this
marginal increase will suffice in
meeting the ambitious target set in
the 12th FYP is a concern,”
Sharma says.
“It can also be highlighted that since
MNRE has received a GBS of `19113
crore in 12th FYP, the budgetary
allocations to MNRE for the first
two years do not correspond with
this high increase in the FYP outlay.
According to this, more than `16000
crore would have to be granted to
MNRE and be utilised by it in the next
three years,” he adds.
Issues unattended in the budget
also worry the climate crusaders.
“Key issues like the transmission
and distribution infrastructure
of the power sector, especially
with respect to renewable energy
projects, the budgetary support for
the second phase of the National
Solar Mission in spite of a successful
first phase were not attended to. In
general, the previous budget placed
much more importance on the
implementation of the eight
NAPCC missions than this one,”
Sharma notes.
However, he agrees that the dire
need for finance and investment,
including the financial losses borne
by the power utilities, are major
impediments to the development of
sustainable grid infrastructure in India,
crucial for the uptake of the planned
capacity addition. “In addition to the
woes of the conventional power
sector, transmission and distribution
is also a concern for renewables. The
government needs to pay immediate
attention to improving the grid
infrastructure for renewable energy.
With the current grid infrastructure,
the country runs a huge risk of
rendering the upcoming 30,000MW
of RE power by the end of 2017,
useless,” Sharma warns, adding that
A recent meeting of Climate Parliament Group of MPs with the Prime Minister of India.
such a situation will also affect the
private sector sentiments gravely.
Incidentally, the Power Grid
Corporation of India carried out
a study under CERC and MNRE
to study and identify transmission
infrastructure for renewable
energy and the findings indicated
that an investment of a whopping
`42,557 crore would be required for
development of both inter-state and
intra-state transmission infrastructure
for renewable energy capacity
addition during the 12th Plan period
– something that would require
significant funds from both private
sector and public sector.
“Fast paced grid infrastructure
development also requires
increased coordination between
the central and the state governments
and grid operating agencies.
Mobilisation and co-ordination
between multiple ministries like the
Ministry of Power, the Ministry of
New and Renewable Energy, the
Ministry of Communications and
Information Technology, the
Ministry of Environment and
Forests, etc. is also essential. There
is also need for rapid technology
development and dissemination.
Especially in case of smart grids
that could prove to be an effective
solution for grid integration issues
of increasing renewable power
generation,” he says.
About the government‘s plans to
Photo: Climate Parliament
May 2013 | Energy Next | 39
 Green Crusaders Climate Parliament

Global initiatives with neighbouring countries will be

a concern. Moreover, within India,
l In December 2012, the Industry and Energy (ITRE) and Transport (TRAN) coordination between the Centre
committees of the European Parliament jointly adopted an amendment and the states and between different
tabled by the Climate Parliament group of MEPs (Member of European states would also be a challenge,”
Parliament). This amendment earmarks 75 per cent of a significant new Sharma points out.
EU budget line for electricity infrastructure. “Implementing a Desertec-scale
l At a parliamentary hearing in Sri Lanka, held in December 2012, a cross- project would require long-
party group of MPs from Bangladesh, India and Sri Lanka signed a joint distance transmission through
declaration calling upon their respective governments to open the way HVDC; transmission is already a
to cross-border renewable energy trading in the region. The declaration big bottleneck in the case of India’s
was presented to the Indian prime minister on December 9, 2012, by renewable energy development.
Climate Parliament members in the Indian Parliament. Therefore, although conceivable,
yet the grounding of the Desertec
l MPs of Climate Parliament group in Uganda have initiated a new national concept in our country and the
Energy Fund with 70 per cent of the funds going to renewables. The region may take a considerable
Energy Fund has already spent more than US$150 million on renewable amount of time and it does not
energy projects. seem to be an initiative that
would materialise in the immediate
`92 crore of viability gap funding future,” he says.
introduce the Viability Gap Fund
(VGF) mechanism, Sharma thinks from the government of India,” The Climate Parliament group has a
it could play an effective role in he says, citing successes the significant presence in the European
increasing the pace of development mechanism can achieve. parliament as well. “As part of
of the renewable energy transmission As an international advocacy group, our three-year collaboration with
infrastructure, despite the detractors collaborative efforts remain high the United Nations Development
crying foul over the possible on Climate Parliament’s agenda. Programme, we are giving particular
irregularities and failure of such Since India has several renewable attention to 10 countries which
mechanisms in other schemes. VGF energy resources-rich zones, a vast include Bangladesh, Congo, India,
was devised for financial support to desert and other suitable sites for Jordan, Lebanon, Morocco, Senegal,
Public-Private Partnerships (PPPs) in solar thermal energy generation, a South Africa, Tanzania and Tunisia
the infrastructure sector and provides Desertec-like idea is plausible, it feels – the Renewable Tigers who will
support to PPP projects – of up to – Desertec is an innovative concept together take a leadership role
20 per cent of the total project Cost and if implemented properly, can on renewable energy, working to
(TPC). “In the case of projects related prove to be a significant solution for turn clean energy into an engine
to renewable energy, the quantum energy security, development and of economic growth,” Sharma
of support can be increased and climate problems in the region. emphasises.
the eligibility criteria can be relaxed. “Yet implementing of any such So far the group has organised
India’s first viability gap-funded, concept would be a very tedious 24 international parliamentary
99-km power transmission line task. Firstly, this would require committee hearings, wherein MPs
project has been recently inaugurated tremendous political will and question leading experts on various
in Haryana. The 400-KV double- mobilisation of different national issues related to the sector. Each
circuit Jharli-Kabulpur-Rohtak line governments. Issues like national hearing has brought together
has received approximately energy security and political relations Members of Parliament (MPs) who
are serious about changing policies
Photo: Climate Parliament

and budget priorities. These MPs

pursue their national governments for
setting up higher renewable energy
targets, and for budgets and policies
to address climate change.
In India, Climate Parliament vows to
continue its effort of pursuing the
government for increasing the share
of renewable energy in the energy
portfolio of the country with a broad
aim to promote initiatives/policies for
clean energy, energy access in rural
Meeting of Climate Parliament Bangladesh Group in Dhaka areas and energy security.

40 | Energy Next | May 2013

Energy Efficiency Industrial Lighting
The last couple of years have
witnessed a conscious shift to LED
lighting with companies realising that
these fixtures can help them slash
operation and maintenance costs
compared to traditional HID sources,
generating employment for other
projects, writes Pieter Zijlmans
T
here’s no doubt that LED lighting
is gaining traction now with global
organisations that are serious in
their ambitions to be more sustainable,
but it’s not just the environmental
benefits that persuade them to make
the switch to LED.
Industrial lighting is costly to operate
and a major drain on maintenance
resources. In many industrial
environments, especially those classified
as hazardous areas such as refineries
or petrochemical plants, lighting
maintenance is often entrusted to a
highly paid electrician and can incur the
need for hot permits, gas detectors,
May 2013 | Energy Next | 41
 Energy Efficiency Industrial Lighting

specialist rope access, safety officers resource efficient, and also more

Photo : Saint Gobain

and more. Productivity can be
seriously disrupted by the frequent
bulb changes required of HID lighting
fixtures, so maintenance reduction
has many attractions.
Plant managers are now recognising
that LED fixtures can enable them
to slash operating and maintenance
costs compared to traditional
High-Intensity Discharge (HID)
sources while freeing up precious
manpower for other more important
projects. Here are two examples of
global companies seeing multiple
benefits from industrial LED lighting.
LANXESS showcases
LED lighting
LANXESS, a leading specialty
chemicals company, has invested
in a new butyl rubber plant on
Jurong Island, Singapore. Sitting on
a 200,000 square metre plot of land,
the new facility will process 100,000
tonnes per annum and LANXESS has
allocated a record amount of EUR
400 million for this investment.
Its key objectives for the butyl
plant were to be more energy and
environmentally friendly, recognising
at the outset that the lighting solution
would play an important role in
achieving these objectives.
The challenge was to find suitable
light fixtures that were certified for
use in the hazardous environment,
would deliver reliable lighting in
normal and emergency mode
operation, and meet the
requirements for reduced energy
consumption and reduced
maintenance.
In addition, the lighting had to meet
the Singapore Standard SS 531 which
recommends lux levels for different
areas within a facility, and the Green
Mark requirements in SS 530 which
define the power consumption per
square metre that must be
achieved in order to be considered
Energy efficient lights in Saint-Gobain’s
energy efficient. Verallia glass packaging plant
The original design for the facility
featured a mix of fluorescent T8s
and metal halide fixtures, but when immediately became apparent.
LANXESS gave UK/US manufacturer A lighting design to convert the
Dialight the opportunity to propose conventional lighting for indoors
a new lighting design featuring its and outdoors areas to LED products
LED lighting technology, the benefits for both non-hazardous and
hazardous application were provided,
enabling LANXESS
Photo : LANXESS

to save a significant amount of

LANXESS, which will use energy efficient
lights at its new butyl rubber plant on
Jurong Island, Singapore
energy while complying with the
SS 531 and SS 530 specifications.
The decision to use LED lighting
throughout the five major
production areas of the facility
was made simple with the 5-year
performance warranty which would
result in eliminating the burden of
maintenance.
The low operating temperature of
the LED fixtures was also a health
and safety benefit, as it removed
the risk of burn injury common with
metal halides. Additionally, the LED
benefit of built-in surge protection
is an important advantage during
the rainy season in Singapore
when lightning strikes can cause
surges, resulting in the burnout of
unprotected fluorescent ballasts
and the consequential expense of
maintenance.
By converting to 2,370 LED lighting
fixtures throughout the plant,

42 | Energy Next | May 2013


LANXESS saw its energy
consumption and carbon emissions
reduce by 55 per cent (811 metric
tonnes CO2 emissions avoided
annually), making annual power
savings of 1,150,000kWh / SGD
241,500. Taking maintenance
savings into account, this delivers
ROI in 1.5 years for 24 hours operated
fixtures and ROI in three years for
12 hours operated fixtures.
LEDs pay for themselves
at Verallia
Saint-Gobain’s Verallia glass
packaging plant is another to
switch to LED. With more than
15,000 people working at 58
manufacturing sites worldwide,
Verallia is a worldwide leader,
specializing in high quality glass
containers for baby food and many
other sectors of the food and
beverage industry. When the time
came to renovate a quality control
and packing hall at its Neuburg plant
in Germany, Verallia was looking
for a more efficient lighting
solution to replace its ageing
250W HPS high bays that were
actually drawing 300W.
The glass melting process is in
continual operation 24/7 and
likewise the packaging process
where the lights are installed, so
a high degree of availability and
reliability is required. Moreover,
the old HPS high bays needed
replacement every 8000 hours
and this process involved the
regular expense of bringing in a
scissor lift and specialist
maintenance personnel.
It was also essential that the new
lighting solution would be robust
enough to comply with the plant’s
HACCP certification which is very
strict about food safety and the
elimination of the risk of any foreign
objects in products.
Verallia tested two alternative LED
high bays for three months before
choosing Dialight’s DuroSite® Series
150W LED High Bay on the basis of
its robustness and price. They also
preferred its ease of installation,
which can be achieved with a single
Photo : LANXESS
The low operating
temperature of
the LED fixtures
was also a health
and safety benefit,
as it removed the
risk of burn injury
common with
metal halides
cable, and proceeded to replace all
the HPS fittings with dimmable LED
high bays on a one-for-one basis.
The 150W LED high bays delivered
a 50 per cent reduction in energy
needs and the same reduction in CO2
emissions. With the ability to dim the
LED high bays, the energy savings
will increase further as daylight hours
extend with the approach of summer.
Owing to the 5-year continuous
performance warranty, maintenance
has been eliminated. With this and
the LEDs’ expected lifespan of
ten years, it’s likely that they will
pay for themselves several times
over during their lifetime.
Matthias Maile of Verallia said,
“Our forklift drivers like the LED
light - it’s now delivering up to
190 to 250 lux at floor level.
This is the first German plant in
the Verallia Group to have LEDs
installed and I’ll be discussing this
experience with the electricians from
our other plants in Germany, as I’m
already planning to replace all our
lights with LEDs.”
With global customers like these
becoming LED evangelists, the rest of
the world will soon be getting
ready to make
the switch.
The author is
General Manager
Middle East at Dialight,
for hazardous area and
industrial LED lighting.
(The views expressed
by the author are
personal)
May 2013 | Energy Next | 43
 Global Voice Scott Wiater

‘Buildings the key to

energy efficiency’
In 2009, Standard Energy Solutions used to offer energy efficiency
improvements through in-depth energy audits and retrofits to better
performance. In January this year, it progressed towards providing home
solar, energy efficiency and energy management services throughout
the Mid-Atlantic region. Attributing this to households needing much
more than what they did earlier, Scott Wiater, President, Standard Energy
Solutions, speaks to Sapna Gopal on the changing trends in the energy
efficiency sector and its significance
What is the relevance of energy efficiency the world over?
Are more countries now adapting to this concept?
According to the International Energy Agency 2012
Annual Report, “A country that uses less energy to achieve
the same or better results reduces costs and pollutions,
creating a stronger, more competitive economy… energy
efficiency has played a major role in the economies of
developed nations for decades…” The relevance of energy
efficiency the world over is that not only are developed
countries realising the environmental and economic
impact, but developing countries are realising it as well.
Instead of taking a reactive approach, we have the ability to
share our successes with these developing countries and
to take a proactive approach in developing programs that
achieve efficiency. It is now not only developed countries
realizing this, but developing countries, as we have served
as a model of what impact this can have.
Buildings are believed to be the key to energy efficiency.
What do you feel? What is their role and contribution to
energy efficiency?
I agree that buildings are the key to energy efficiency and
if you look at historical, present, and future forecasts, this
holds true. I believe that benchmarking, scoring, and policy
will direct this on a global level. We have the ability with
buildings to create a sort of “laboratory” whether it is new
residential, or commercial and industrial or retrofitting
residential or commercial and industrial. There are many
controlled variables that can be manipulated to determine
the best practices and many cities, including Washington,
DC, Philadelphia, Pa., New York City, are driving this

44 | Energy Next | May 2013

initiative on the commercial and
industrial sector, as well as in our
backyard in residential with EmPower
MD’s home Performance with Energy
Star program. This data that we have
seen is driving huge impacts on
reducing demand and consumption.
Global CAFÉ standards also play an
important role.
According to the US Energy
Information Administration, homes
built in the last decade in the US,
despite being 30 per cent larger than
older dwellings, consume only 2 per
cent more energy on average. Why
do you think this is happening?
This is due to collaborative efforts
with renewable energy, energy
efficiency, and increased guidelines
on building practices that are
requiring minimal standards. For
instance, as per the most recent
IECC Building Code, most states
have adopted or are in the process of
adopting, puts in place high efficiency
lighting, air-sealing and insulations
efforts on the building envelope.
Some companies have been eyeing
Indian markets for energy efficient
products. For instance, Germany
based Refusol, a manufacturer
of solar inverters has set up a
manufacturing unit at Lonikand near
Pune, Maharashtra, India. Why is this
so? Is this likely to continue?
This is interesting, because India’s
electricity grid is so unpredictable
that many manufacturing plants
have been forced to put in place
large back-up generators that are
run by costly diesel fuel, but in the
same breath, this is creating huge
potential for organisations including
Refusol for a domestic market.
Not only can they manufacture
domestic products to help solve the
grid imparities, but they also have the
ability to scale labour and costs for
exporting products to countries like
the US and remain competitive in a
global market. This will continue as
India grows globally and domestically
in terms of economics and needs.
Over the years, do you think there
has been a conscious decision to
switch to energy efficiency, by the
policy makers and companies?
Initially, there was resistance by
policy makers and companies, but
with awareness, education, and
a little ingenuity, there was the
realisation that in the long-term,
the improvements that needed to
be made to become more energy
efficient, would pay for themselves in
a very short period of time.
Are energy efficient products likely
to replace conventional ones, in
times to come? Or will they
co-exist?
Yes. Efficiency means innovation
and conservation, and this means
that we can create a product
that performs the same as what
it replaces, and the outcome is
reducing the overall impact of
energy. This can be seen in LED
lighting and light output, light
temperature, and aesthetics of the
luminaire or fixture.
In economies such as India,
where is energy efficiency headed?
What is its significance?
India recognises that energy
efficiency not only represents
less consumption of energy,
but it also represents a “…
cost-effective … massively
underutilized energy resource”
(International Energy Agency 2012
Annual Report). Energy Efficiency
in India, as discussed, based on grid
disparities and the limitations of
electricity output, has had to adapt to
current conditions. In a way, India’s
energy efficiency is the norm and is
starting in the right direction, instead
of reacting, as they become a more
developed country.
May 2013 | Energy Next | 45
 Analysis RPO Compliance

Less than 25% states

pass the test

RE report card for the states (Source: Infraline and Greenpeace Analysis)
Meghalaya 564%

Tamil Nadu 213% “Only 7 States have achieved

Nagaland 190% there RPO targets since 2009 “
Uttarkhand 134%
“Bihar, being the only state showing
Karnataka 122% lot of interest in off-grid investments”
Himachal Pradesh 105%
“Delhi, 0% achievement places the capital
Rajasthan 102%
in the last ranks. This shows lack of
Gujarat 93% political commitment as well “
Mizoram 92%

Chhattisgarh 91%

Kerala 77%

Haryana 68%

Andra Pradesh 66%

Maharashtra 51%
A recently released report
Uttar Pradesh 43%
presents a gloomy picture of
Odisha 41%
RPO compliance in the country
Bihar 40% where 22 out of 29 states failed
Punjab 37% to meet their targets. Upendra
Madhya Pradesh 33% Singh brings you the details
West Bengal 10%

I
n the past few years, the government has introduced
Assam 4%
some specific regulations and schemes to boost the
Delhi 0% renewable energy (RE) industry in order to achieve
the National Action Plan on Climate Change (NAPCC)
Jammu and Kashmir 0% target of 15 per cent of electricity from RE sources by
0%
2020. And one of the most essential components in the
Jharkhand
value chain towards the accomplishment of this goal is
Manipur 0% Renewable Purchase Obligation (RPO). Although most
of the states have declared both solar and non-solar
JERC (Goa & UT) 0% targets through state RPO regulations, many states have
Tripura not complied with these targets. Delhi for instance, is
0%

46 | Energy Next | May 2013

Leader and laggard states as per the
current performance scenario
one of the worst-performing states
in the country when it comes to
meeting renewable energy targets,
according to a report by Greenpeace
and Infraline Energy. Despite having a
per capita consumption that is almost
twice the national average, Delhi
met 0 per cent of its RPO in the year
2012, which puts it in the bottom of
the league, thereby raising questions
about the effectiveness of RPO. The
report called – Powering Ahead on
Renewables: Leaders and Laggards
– tries to assess the efficacy of the
existing RPO policy mechanism
with regard to national renewable
energy targets, and takes a look at
the performance of all the states in
meeting those targets.
Role of renewables
The issue of energy has acquired a
priority status in India thanks to the
Source: Greenpeace
current power situation. Today, India’s
total installed power capacity stands
around 210 GW, and according to a
rough estimate, the total demand for
electricity in the country is likely to
cross 950 GW by 2030. As a result, it
becomes a key area of focus for the
government. It is in this context that
the role of renewable energy needs
to be seen. In recent times, the RE
industry has been recognised as a
potential means to address the issue
of energy security, and it has become
an important component of India’s
energy planning process.
India has an abundance of renewable
energy resources that include a large
land mass that receives the highest
solar irradiance of 5 trillion kWh/
yr, a large coastline of 7500 km
for realising onshore and offshore
wind potential, significant annual
production of biomass, and small
hydro power potential. The clean
energy is currently experiencing
increasing vibrancy across all sectors
of the economy and the Ministry for
New and Renewable Energy (MNRE)
has initiated numerous systematic
programmes to harness the potential.
Vigorous efforts during the past two
decades have started to bear fruits,
as people in all walks of life are more
aware of the benefits of renewable
energy today. However, a lot still
needs to be done to bring
renewables into the mainstream,
and RPO, if applied diligently, has the
ability to do so.
RPO regulation
The RPO regulation came into
existence mandating power
distribution utilities with a fixed
percentage of power purchase
through renewable energy sources as
per section 86 (1) (e) under Electricity
Act, 2003. Further, renewable energy
was promoted under sections 61 (h)
wherein promotion of cogeneration
and generation of electricity from
renewable energy was made the
explicit responsibility of the State
Electricity Regulatory Commissions
(SERCs). The guidelines issued
in 2010 by the Central Electricity
Regulatory Commission (CERC)
recommended a standardised RPO
target of 5 per cent in every state with
linear increase of 1 per cent annually
till 2020 to achieve the NAPCC target
of 15 per cent.
A National Tariff Policy also stipulated
that SERCs need to fix a minimum
percentage of purchase from
such sources, taking into account
availability in the region and its impact
on retail tariffs. Consequently, various
SERCs came out with their individual
RPO-based targets, in accordance
with the state renewable energy
potential and expected capacity
addition. In 2011, India also launched
the renewable energy certificate
(REC) mechanism as a means to help
reach the targets already set in a
cost-effective manner.
Current state of compliance
The Greenpeace report presents a
gloomy picture of RPO compliance in
the country where 22 out of 29 states
May 2013 | Energy Next | 47
 Analysis RPO Compliance
failed to meet their RPO targets. The
report lauded states like Tamil Nadu,
Karnataka, Rajasthan, Gujarat and
Bihar who have made serious efforts
to boost renewable energy uptake
in their energy mix. Tamil Nadu has
not only been able to meet its RPO
targets, but has also generated over
and above the targets. It generated
213 per cent of its RPO target largely
due to policy support and investment
in wind energy. On the other hand
there are states like Maharashtra,
Punjab, Madhya Pradesh, Andhra
Pradesh and Delhi that have set
targets, but no real effort could be
seen on the ground.
The report presents a startling picture
where it says that only 7 out of the
29 states have been able to fulfill
their set RPO targets, with majority
of states lagging behind or not even
off the block. The report also looks
into developing a new differential
RPO mechanism based on three
criteria — renewable energy potential,
consumer profile / consumption
pattern and purchasing capacity
of each state to make the RPO
mechanism far more rationalised and
realistic. “This report is an indictment
of the whole policy framework
around renewables and the dismissive
attitude of the government towards
it. RPO mechanism could have been
a tool to bridge the demand-supply
gap in the energy sector across the
country. But the toothless mechanism
combined with unambitious targets
has failed to give any impetus to
renewables in India,” says Abhishek
Pratap, Senior Energy Campaigner,
Greenpeace India, and lead
48 | Energy Next | May 2013
author of the report.
“Only 7 out of 29 states managed
to fulfill the RPO targets and
performance index. This resulted in
a deficit of around 25 per cent of
electricity that was expected to be
generated from renewable sources in
2012,” notes Anand Prabhu Pathanjali,
Energy Campaigner at Greenpeace
India, and co-author of the report.
He further explains that compliance
mechanism is a key barrier to why
RPO is not taking off in the country.
The overall cumulative target set by
various state regulators was
5.44 per cent, whereas the national
target was 7 per cent, resulting in a
deficit of 1.56 per cent points.
Deficiencies and possible remedial
measures
The RPO targets set by states vary
greatly – from a meagre 0.05
per cent to as much as 10.2 per
cent. As is evident, there is a great
disparity in the formulation as well
as achievement of RPO targets
across various states of the country.
One thing that stands out in the
progressive states is the formulation
of specific policy in the form of
financial incentives. The presence
of different state policies with
different approaches to renewable
energy development and multiple
financial measures has created a
chaotic scenario and sends mixed
signals to investors.
Pathanjali says that the inadequate
financial measures, ineffective REC
mechanism and state-level policies
not in alignment with national targets
The presence of
different state
policies with
different approaches
to renewable energy
development and
multiple financial
measures has
created a chaotic
scenario and sends
mixed signals to
investors
are hampering the RPO compliance
immensely. Therefore, it becomes
imperative to develop state-specific
RPO mechanisms, in alignment with
the national targets and aided by
certain financial incentives.
Another aspect that is seen as a major
roadblock to RPO compliance is the
setting of RPO target on the basis
of renewable potential of the states.
For example, the Delhi Electricity
Regulatory Commission (DERC) has
formulated a very conservative RPO
target with a meagre 10 per cent
achievement. The non-availability of a
state-level specific renewable energy
policy is not helping the matter either.
“If states with low renewable energy
potential are given low targets,
then how is the purpose going to
be served?” says a concerned Rohit
Khatri from Infraline Energy, which
was involved in the research for the
Greenpeace report.
The report has called for reassessing
the RPO target set for the country.
Instead of the 15 per cent target, the
country should have an aggregate
target of 20 per cent by 2020. It has
also demanded that the renewable
energy industry be declared a priority
lending sector; off-grid renewables
be included in RPO targets; long-
term trajectory of RE generation, and
a penal provision to ensure timely
achievement of targets by state
utilities and obligated entities. There
is also need for developing the REC
mechanism as an enabling tool to
encourage RPO compliance.
 New Development Advanced Jatropha
Energy booster for
Indian biofuel sector
A bio-energy solutions
company has come
up with genetically
improved varieties of
Jatropha ideally suited
for Indian conditions.
Energy Next finds
how this could impact
the biofuel sector in
the country
I
ndia’s biofuel sector is set to get a
big boost from newly-developed
varieties of Jatropha suited for its
unique climate and environment.
The elite hybrids, developed by
SG Biofuels (SGB), an energy crop
company delivering bio-energy
solutions for the renewable fuel,
biomass and chemical markets, are
said to be more resilient and more
productive, thereby increasing the
viability of the crop. The new varieties
are expected to deliver 5.5 metric
tonnes of seed per year and
possess the critical plant attributes
necessary to ensure yield
preservation and the crop’s economic
viability in the country’s challenging
growing environments.
SGB’s hybrids have been developed
following five years of research,
drawing from a diverse germplasm
library including more than
12,000 unique genotypes. The
germplasm collection contains
more than 2 million individual
genetic markers, which confirms
that Jatropha has a genetic diversity
comparable to corn and other
domesticated crops. This diversity
will enable SGB breeders to maximise
hybrid vigour, also known as
heterosis, which ultimately results in
higher yields, improved plant health
and increased stress tolerance.
“SGB’s hybrids open a new era
for Jatropha in India, based on
plant science and proven
agronomics, and will pave the way
for large-scale commercial expansion
and the establishment of the crop
as a viable source for biodiesel,”
says Kirk Haney, President & Chief
Executive Officer of SGB.
These hybrids have undergone testing
and validation through the company’s
global network of 15 Jatropha hybrid
trial and agronomic research sites,
with local results validated at six
centres located in India – three in
Chhattisgarh, one in Uttar Pradesh,
one in Andhra Pradesh and one in
Odisha. The trials have revealed
that SGB’s hybrids possess
key yield preservation characteristics
that ensure the genetic potential of
the crop is realised under a range
of the country’s difficult growing
conditions.
“Through the hybrid trials and
agronomic studies in India, we have
looked at a wide range of factors that
drive project economics and success
to create hybrids and agronomic
solutions that are truly adaptive to
the country’s challenging growing
conditions,” Kirk explains. Tests
were carried out last year during
the scorching summer months,
with temperatures consistently
exceeding 45 degrees Celsius for
more than four weeks, and several
of the hybrids thrived, raising hopes
of a good yield even during the
extreme heat wave conditions.
Impact on sector
“As with other regions, the historical
performance of Jatropha in India
has suffered due to a significant
May 2013 | Energy Next | 49
 New Development Advanced Jatropha
bottleneck in genetic diversity,” says
a scientist of the SGB’s Science &
Biotechnology Team. He explains
that the spread of a few Jatropha
cultivars from the crop’s centre of
origin in Central America resulted
in a restricted germplasm base,
limiting the success of those
attempting genetic improvement
through traditional breeding. Early
projects failed largely due to a lack
of improved planting material that
did not deliver the economics or
minimum yields required to sustain
these projects.
For India, SGB has established and
evaluated hundreds of pre-screened
hybrids with a multitude of key plant
attributes in the varied growing
conditions of the country. This,
coupled with locally-developed
agronomic solutions and practices,
provides far superior yields as
well as consistent performance
under adverse growing conditions,
driving increased productivity and
profitability for growers and project
developers in India.
These hybrids have demonstrated
50 | Energy Next | May 2013
a far better performance, delivering
significantly more plants with flowers,
greater fruit yield per plant and
significantly higher average seeds
per plant. Hence the growers in India
stand to benefit from these hybrids,
as they tend to reduce the attrition
rate at plantations, minimizing the
need to repurchase and replant as
projects scale.
Response in India
This Jatropha technology has got
positive response from the Indian
industry as well as other stakeholders.
Commenting on the response in
India, Kirk, says, “The response from
Indian industry and government has
been extremely positive. We see
a strong desire from both sectors
to develop Jatropha as a viable
source for biodiesel and equally
strong recognition that this will only
happen through the development
of improved planting material and
a better understanding of proper
project agronomics.”
Kirk notes that the results of hybrid
evaluations in India continue to
validate the superior performance
of SGB’s genetic material both
in terms of fruit productivity and
expression of key plant attributes.
“The early flowering, stress
resistance and subsequent
fruit productivity, compared to
commercial checks, is consistent
with the high performance of SGB’s
material under a range of similar
high-stress environments in
Central America and Brazil.”
The hybrids open
a new era for
Jatropha in India,
based on plant
science and proven
agronomics, and
will pave the
way for large-
scale commercial
expansion and
the establishment
of the crop as a
viable source for
biodiesel
The hybrid varieties are likely to
reach the crop growers in a few
months from now, as the company
has already started commercial
deployment. During the trial phase
of the elite hybrids, SGB entered into
direct collaborations with a number
of customers in the private and the
public sectors, and now work has
started to intensify its deployment
at the ground level. “Based on
the positive results, we are now
transitioning these trials into large-
scale commercial deployments and
expect to begin deploying these
projects within the next 6 to 12
months,” the SGB CEO says.
Although biofuel is seen as a
promising source of alternative
energy for the future, the Indian
biofuel sector is beset by many
challenges, the major ones being
food security issues, feedstock
and high costs – issues mostly
related to processing. The advent
of the elite Jatropha hybrids, with
significantly greater yields and
profitability compared to the existing
commercial material, may help
the sector to move in the desired
direction. According to Sandeep
Chaturvedi, President of the Biodiesel
Association of India, Jatropha
hybrids from SGB have shown
unprecedented results and provide
significant confidence that India has
the right platform in place to make
Jatropha a viable energy crop.
Project Monitor Lighting rural Bihar

Solar-driven prepaid system

powers village households
W
A renewable energy organisation is
bringing change in the lives of hundreds
of villagers in the remote corners of
Bihar through solar microgrids.
Energy Next reports
hile the decentralised model
of energy delivery is gaining
favour in rural areas of the
developing nations, the successful
implementation of such systems
requires a profound understanding of
local energy needs and preferences,
sensitivity to the local cultural
and economic realities, and an
understanding of the technology
for decentralised renewable energy.

Photo: Kuvam
With a vision to improve the quality
of life in rural areas of India, Kuvam
Energy Pvt. Ltd. has come up with a
novel idea of bringing light to rural
households, the green way. The
company has been actively involved
in providing electricity to the remote
and deprived areas of the country
through solar power.
Making a difference
Founded in 2010 to improve the
quality of life in rural areas, Kuvam
has been engaged in the process
of spreading residential electricity
generated from solar photovoltaic
(PV) systems to rural households
and village markets via localised
microgrids. The company has
installed several solar microgrids
to bring light to the villages of
Bihar’s West and East Champaran
districts which were devoid of
grid connectivity. Currently, these
localised microgrids are providing
electricity to over 400 households.
Solar PV plants pump power
into the local microgrids, giving
affordable electricity to villages which
historically have never had electricity.
The electricity from the microgrids
is distributed to houses by setting up
distribution infrastructure (pre-paid
meters, poles and wires). When a
household signs up for the electricity
connection, Kuvam’s team installs
the wires and pre-paid meters in the
house. People pay for the service and

May 2013 | Energy Next | 51

 Project Monitor Lighting rural Bihar
accordingly get the stipulated amount
of electricity. The electricity is stored
in batteries so that each household
has electricity for full day and can be
used as and when needed. The user
just has to tap a switch to get the light
and can even charge mobile phones
from the prepaid meter.
The cost of setting up localised
microgrids varies from project to
project. There are various factors
that are taken into account while
setting up a project. These include
the number of households, the
electricity requirement, the location
of the site and the transmission
52 | Energy Next | May 2013
Solar microgrids being installed in a
Bihar village
infrastructure. This rural
electrification programme through
off-grid solar PV installations is
getting tremendous response. The
success could be attributed to the
company’s ability to leverage
indigenous resources and
knowledge by involving the local
village community in training and
implementation.
Sustainable lighting
The company is also bringing
energy efficient electronic products
for microgrid users. In a bid to make
solar energy more sustainable, the
Photos: Kuvam
villagers are provided India-made
LED bulbs that use electricity
efficiently, and last longer. Under
the brand name ‘Kuvam Urja’, the
company is involved in developing
innovations in LED technology and
consumer electronics to help its
customers replace traditional lighting
and energy-guzzling equipment in a
clean and sustainable manner.
According to a senior official of the
company who is involved in the
project, Kuvam’s objective is to “bring
sustainable light solutions within
reach” and the core philosophy
of the company revolves around
the concept of sustainability. He
adds, “Using this approach, we
are developing innovations in LED
technology. By creating supply chain
efficiencies, we can ensure a much
larger penetration in the market.
This makes the products more
cost-effective for the end consumer.”
Future plans
The company aims to establish
1000 micro-grids by the end of
2013, which would be able to provide
electricity to around 50,000-75,000
households. “We have initially set up
solar PV power plants in Bihar,
and now we want to expand our
models to other villages in need
of electricity in India. Our focus
will be primarily on Bihar and the
North-Eastern states,” says Jyoti Dar,
Director of Kuvam Microgrid.
 World View Middle East
Sands of change
In 2010, less than 4 per cent of the
total electricity generated in the
Middle East was from renewable
sources. However, all that is likely
to change in the next decade. While
Egypt, Morocco, Algeria, Syria and
Lebanon have been at the forefront
of renewable energy development,
political and social instability in these
countries raises doubts over the
implementation of these targets. In
such a scenario, the GCC countries
are expected to be a balancing force
in the region with an increasing level
of interest in renewable energy,
writes Abhay Bhargava
T
oday, the Middle East is host to
approximately 160 Gigawatts
(GW) of installed power
generation capacity, with the Gulf
Cooperation Council (GCC) amounting
to approximately 54 per cent of that.
An Arab Petroleum Investments
Corporation (APICORP) report
forecasts that this installed capacity in
the Middle East is set to grow at a rate
of 7.7 per cent between 2011 and 2015,
resulting in over 36 GW capacity being
added in the GCC, and 80 GW being
added in the Middle East for the period
2010 – 2020. According to Frost &
Sullivan estimates, the GCC alone will
invest $110 to 120 billion in this period
to build up power generation and
Transmission and Distribution (T&D)
capability. Frost & Sullivan’s analysis
details that the major investments in
the next 10 years would be in Saudi
Arabia, Iraq, Egypt and the UAE.
Based on plans for economic
diversification, the GCC countries have
seen significant investments being
made in industrialisation, infrastructure
development, water treatment, and
petrochemicals – all energy-intensive
developments. The recent Arab spring
and global economic recession have
further strengthened the resolution of
GCC and many other Middle Eastern
nations to enhance their infrastructure,
and generate long term employment
opportunities for their citizens, all of
which have a direct bearing on power
generation.
On the other hand, it is estimated that
fuel supply will not be able to keep
pace with the accelerating demand,
owing to declining reserves and export
obligations. Hence, the demand-supply
May 2013 | Energy Next | 53
 World View Middle East
equation for power has shifted,
leading to an energy deficit in a
number of countries, and reduction
in margins for others. This was clearly
visible in Saudi Arabia, Sharjah (the
UAE), and Bahrain in the recent past.
This is where we see renewable
energy playing a significant role. In
2010, less than 4 per cent of the total
electricity generated in the Middle
East was from renewable sources.
Low oil prices, recession, and
absence of a framework conducive
54 | Energy Next | May 2013
for investments have primarily
contributed to the delayed progress
of the renewable energy sector. The
situation, however, is set to undergo a
rapid change over the next 10 years.
Egypt, Morocco, Algeria, Syria
and Lebanon have all been at the
forefront of renewable energy.
Each of these countries has
announced targets/mandates for
the next 10 to 12 years that would
pave the way for new projects. The
current political and social instability
in these countries, however, raises
doubt over the implementation plans
for these targets.
The GCC countries are expected to
be a balancing force in the region
with an increasing level of interest
in renewable sources of energy,
specifically solar energy. The GCC
has been active in announcing plans
for adoption of renewable energy.
Based on the current announced
plans, there is 25-GW solar energy
potential in the GCC up to 2020.
Some projects are already underway,
as part of implementation efforts to
attain these goals.
UAE is leading the way with the
following schemes:
• The Abu Dhabi Shams and Noor
projects for 200 MW;
• Establishment of the
pioneering Masdar city and the
Masdar initiative;
• Abu Dhabi adopting a target of
achieving 7 per cent of electricity
generation from renewable
sources by 2020, amounting
 to nearly 1,500 MW of power
from renewables to be achieved
over the next nine years, with an
expected investment of $7-10
billion in these projects;
• The Mohammed bin Rashed Solar
Park in Dubai with a proposed
capacity of 1,000 MW by 2030.
Qatar’s recent success in bidding
to host the 2022 World Cup is
expected to boost the penetration
of renewables in the country,
attributable to declared plans to cool
stadiums using solar power, and
utilise other measures to manage
carbon emissions.
Kuwait’s 60 MW Al Abdaliyah
Integrated Solar Combined Cycle
Saudi Arabia, in spite of its massive
proven oil reserves, faced power
shortages last year, and is investing in
alternate energies, as listed below:
• A 3.5 MW power plant to be built
by Aramco, tendered in 2011;
• Using solar power for powering
control panel devices to fend off
pipeline corrosion;
• Trials to power a village and
a school already underway
using solar power;
• Upcoming polysilicon production
facilities in the country;
• The 100 MW solar Makkah
project;
• The 600 MW Dibba 1 IPP project,
which would be the Kingdom’s
first Concentrated Solar Power
integrated combined cycle plant.
In fact, the adoption of renewables is
expected to yield multiple benefits for
the GCC.
• Generate skilled jobs: For
the GCC, with a fast growth
youth segment and relatively
high unemployment rates,
the potential of renewables to
generate skilled jobs is a highly
valued benefit
• Free up fossil fuels: Currently,
the GCC is burning up expensive
Oil and Gas at highly subsidised
rates to generate power. With
renewables, this fuel can be freed
up for potential export at market
rates, allowing for a windfall.
• Industrial development: A review
of proposed plans laid out
by some of the GCC countries
reflects the strategic
importance that is being
attributed to renewables. Some
countries, especially, Saudi Arabia,
are pushing for the development
of a localised value chain,
including both services as well
as products. Considering the
domestic demand and export
potential, this could result in the
To capitalise on
the opportunities
in the Gulf, Indian
organisations will
need to approach
the geographic
expansion process
in a structured
manner and work
professionally
towards gaining
visibility,
establishing
partnerships with
local players
development of an entirely new
industry in the GCC.
For Indian manufacturers, this can
open up a tremendous market
opportunity, especially considering
the historical supply linkages existing
between the GCC and India with
reference to power generation
and T&D equipment and the non-
existence of a domestic supply
chain. However, there is a complex
network of organisations involved
in the decision-taking process
(utilities, municipalities, oil and
gas companies, EPC contractors,
regulators, standardisation Bodies,
and ministries). To capitalise on
the emerging opportunities, Indian
organisations will have to approach
the geographic expansion process
in a structured manner and work
professionally towards gaining
visibility, establishing partnerships
with local players (especially
considering the localisation
requirements in the region),
educating the market, and building
confidence with the stakeholders.
The author is Head, Energy
& Power Systems Practice,
Frost & Sullivan, and is
responsible for Middle East
and North Africa regions.
(The views expressed by the
author are personal)
May 2013 | Energy Next | 55
 Perspective Global Cooperation

Of agenda and

Drawing from experiences at the recently-held Clean Energy Ministerial,

Dr PC Maithani describes his inferences as to what actually the rationale
behind such conferences is and whether the implications of such
meetings are appreciated in the context of a developing nation like India

R
ecently, India played host to the
fourth Clean Energy Ministerial
(CEM-4), a global forum to
address issues of common concern
regarding clean energy development,
albeit without any formal treaty
structure.
The first Clean Energy Ministerial
(CEM) was announced in December
2009, by US Secretary of Energy
Dr Steven Chu at the United
Nations Framework Convention
on Climate Change conference of
parties in Copenhagen, where the
US witnessed major developing
economies like China and India
entering into the ‘voluntary
commitment fold’. The CEM put
together 23 countries and created a
platform for discussions for ministers
and high-level officials from the
world’s major economies. Instances
of similar US moves can be drawn
from the past, too.
During the Bush regime, the
US had rejected the Kyoto
Protocol and launched the Asia
Pacific Partnership on Clean
Development and Climate (APPCC)
as a parallel process. While this
attracted loud opposition from the
European Union (EU), India adopted
a dual approach of committing to the
Kyoto Protocol as well as partnering
with the US in the APPCC. A close
look at the objectives of the CEM
and the APPCC reveal that there
isn’t much difference between
the two. However, a larger group
of countries joined the CEM
than the APPCC. In other words,
the CEM could be seen as
performing the role of global energy
governance under a US-centric
multilateralism.
Global energy governance can be
interpreted as collective international
efforts to manage and distribute
energy resources and provide energy
services, and offer a framework for
assessing energy-related challenges.
Generally, such tasks are performed
under the UN framework as is the
case with climate change. The main
issues linked with the growth of clean
energy are technological transition,
access to inventions and intellectual
property. Yet the CEM does
not provide a forum to discuss
these issues.
Clean energy supply has successively
remained a major theme of the
CEM deliberations. There are
four working groups, one each in
the area of bio-energy; solar and
wind; sustainable development of
hydropower; and carbon capture
and storage. These working groups
primarily focus on atlas preparation
by way of potential analysis; and
capacity-building. Strangely, in all
these discussions or frameworks,
there is neither a reference of
technology networking and
benchmarking nor of technology
collaborations. Capacity-building
exercises are generally undertaken
under the USAID-supported
programmes. All these efforts
ultimately lead to the creation of

56 | Energy Next | May 2013

achievements...
policy regimes which lead to market
creation or opening up of market for
clean energy systems and devices.
At the CEM-4, the World Bank
launched the South-South-North
Knowledge Exchange Facility on
Clean Energy. This facility is stated
to support learning networks and
communities of practice, study
tours and field visits, and also policy
dialogue. Now, it is for energy
practitioners to assess whether such
a facility could make any difference to
India. A group of leading businesses
and organisations also announced
the expansion of India’s Green Power
Market Development Group for
transforming energy markets.
Another area of intense debate
at the CEM-4 was energy access.
There was a round table conference
on mini-grids. Discussions were
limited to reiteration of issues and
a few success stories, whereas the
real challenge lies in identifying and
quantifying a benchmark that would
define the basic energy service
bundle at household level -
knowing that energy access,
undoubtedly, has a positive
impact on development.
The meaning of basic energy services
varies not only across countries
but also across regions within a
country. Had there been a case of
uniform solution, and renewable
energy options were cheaper than
alternatives, or their adoption had no
barriers, societies could have adopted
such options on their own (at least in
the Indian context). Over the period,
the World Bank, the ADB and other
multilaterals have created specific
desks on the subject, viewing it as a
prospective area for enhancing loan
portfolio to the developing nations.
Barring a few cases, energy access
efforts have so far remained country-
driven in terms of technologies
and investments. The availability
of incremental investment that is
required is possible only if developed
nations honour their commitments
to increase official development
assistance (ODA) to 0.7 per cent of
their gross domestic product (GDP);
and make it a process under the
Green Climate Fund to fund around
US$100 billion per year by 2020.
On the UN front, sustainable energy
was central to the implementation
of the Johannesburg Plan of
Implementation 2002. The emphasis
was on Track-II approach and for
the purpose a number of clean
energy initiatives/organisations
such as IREC, REN, JROC, REEEP,
Source: CEM Secretariat
etc. were launched. All these were
captive in nature and originated
from EU member countries.
Hence in order to create a more
acceptable organisation, the
German government shaped the
International Renewable Energy
Agency (IRENA) – broadly seen
as one of the several efforts to
decouple the clean energy debate
from the UN system, particularly
under climate change negotiations.
IRENA was officially established in
Bonn in January 2009, and has been
acting as a parallel to the UN body,
even though it neither has a defined
mandate nor the adequate financial
resources. Its present efforts are
to get associated with developing
nations’ on-going programmes and
generate reports. The CEM process
has helped in providing a forum to
such organisations.
At the 2010 UN Climate Change
Conference in Cancun, countries
agreed on a new technology
mechanism to improve the transfer
of climate-related technologies,
encompassing renewable energy,
energy efficiency and other fields.
The final result was the establishment
of a Climate Technology Centre and
Network at the UNEP that aims at
accelerating the transfer of climate-
May 2013 | Energy Next | 57
 Perspective Global Cooperation
related technologies and expertise to
the developing nations. It is expected
to provide data, reports, and other
resources to address the specific
needs of the developing world.
Its focus is on soft options only,
and not expected to make available
cutting-edge clean energy
technologies. It will certainly have
relevance for countries in the
Sub-Saharan Africa region and also
some island nations. The CEM has no
explicit synergy with such efforts.
Let us look at the recent
developments in the field of solar
energy. On the one hand Germany,
the US, and now China, too, have
built massive capacities and also
have a technological edge over
other countries. But, on the other
hand the Global South, of which
India is a part, is having better solar
resources, and therefore, should
have natural leadership in this area.
In 1994, countries from the Global
South constituted the World Solar
Commission under the chairmanship
of Robert Mugabe, President of
the Republic of Zimbabwe, and
with memberships from the heads
of governments of Austria, China,
Costa Rica, Georgia, India, Indonesia,
Israel, Jamaica, Malaysia, Pakistan,
Senegal, Spain, South Africa and the
Palestinian Authority. The World Solar
Commission launched the World
Solar Programme 1996-2005 (WSP)
as an open-ended attempt through
broad partnership and co-operation
of governments. It was perceived
that the WSP would set the world
on the ‘solar highway’, leading to
sustainable development. However,
58 | Energy Next | May 2013
the complete lack of enthusiasm and For India, clean
effort on the part of the developed energy is a strategic
nations and also of the multilateral
bodies such as the World Bank agenda. There
brought the initiative to an abrupt end. are lessons from
So, the moral of the story is: China, particularly
success cannot come by merely on creating
having the renewable energy
resources; but only when those with
an indigenous
the technologies and the necessary manufacturing
financial resources to utilise them, ecosystem. In the
have a proper plan in place, and more
importantly, the will to make things
long term, our efforts
happen according to that plan. would need to be
Lessons can be drawn from past focused towards
experiences. The key is to close this end
the ‘technological gap’, prioritising
options by creating the internal pre-competitive research and to set
capabilities. Market creation through up an undistorted internal energy
policy instrument is not going market. CEM is a good opportunity
to help. Technologies, inventions, to learn about what others are doing,
etc. are not in the public domain but it has to be followed by
and they come at a price. The necessary action to reduce our
options that form part of the CEM dependence on others.
agenda cannot help in getting truly
valuable technologies and solutions. For India, clean energy is a strategic
It may help in reducing information agenda. There are lessons from
asymmetry, but then again, whatever China, particularly on creating
little gains are made are nullified by an indigenous manufacturing
the kind of policy advocacy we are ecosystem. In the long term, our
subjected to. Notably, the innovation efforts would need to be focused
pavilion set at the CEM-4, frequented towards this end. The World Resource
by those from the IFC, the USAID, Institute’s ‘State of World 2013’ has
energy exchanges, etc., was, for the rightly observed, “Energy is perhaps
most part, a disappointment. the most daunting challenge before
At the Tata Power Solar stall, I came us. In a real sense, fossil energy is
to know that they were producing the author of modern civilization-
only about 20 per cent of their but now threatens to destroy
capacity and market. it. The only solution is to take a
true precautionary approach and
In this context, it must be realised that leave fossil fuels in the ground by
in order to gain a competitive edge, ’delegitimizing’ them, as happened
it’s important to create space for with slavery and smoking.” It’s
certain that our energy appetite will
grow over the years and in order to
Source: CEM Secretariat
make the most of the alternatives,
we will have to redirect our policies
and finances. Although there is an
increasing room for cooperation,
including through CEM-like forums,
it is our home-grown capabilities –
technological as well
as financial – that will
make a difference.
The author is Director,
Ministry of New and
Renewable Energy.
(The views expressed by the
author are personal)
Event CEM 2013

To greener
pathways...
It is the only
I
n order to promote information 1,500 MW has already been installed,
exchange and identify possible by the end of the Five Year Plan,
meet of energy areas of collaboration, there is a an additional 10,000 MW will be
ministers at which need for inter-country consultation
and discussion in clean energy,
installed. It can help serve remote
rural areas since grid expansion is
they exclusively Prime Minister Manmohan Singh said
recently, adding that the CEM has
useful. Even the wind potential is
larger than what was expected.”
discuss clean contributed majorly towards such
Elaborating on the country’s plans
discussions.
energy. In short, Revealing how the expanded zone
in the clean energy sphere, he said,
“We are interested in raising fuel
the Clean Energy of clean energy, traditional sources efficiency and 5 per cent blending of
and renewable energy, as also the ethanol. Also, India has launched the
Ministerial is a full exploitation of idle power has National Mission of Electric Mobility
been India’s goal, he stated, and is joining EVI.”
global forum to “Non-conventional clean energy
Stating that green energy is not viable
sources such as solar and biomass
promote policies generated 25,000 MW in 2012, and the
without incentive, he added as to
how market forces alone will not
which advance number is expected to touch 55,000
MW in 2017. While solar capacity of
provide sufficient impetus.
clean energy
technology, to

Source: CEM Secretariat

share lessons
learned and to
encourage the
transition to a
clean energy
economy.
Sapna Gopal
details on what
the fourth CEM
meet in Delhi
deliberated and
the issues it raised
May 2013 | Energy Next | 59
 Event CEM 2013

Taking his point a step ahead and

stressing on action, former US
Secretary of Energy Steven Chu
explained that while deliberations
have been a practice, nations have
realised that unless this is backed
by implementation, very little can
change. Mentioning how the cost
of clean energy is changing rapidly,
Chu added as to how the cost
of electricity is competitive with
the generation of electricity. “For
instance, a nuclear plant is more
expensive than a wind turbine. The
challenge is how do we prepare for
the next ten years? Transmission and
generation, which can tap all these
systems and sharing best practices is

the need of the hour.”

Stressing on the role of governments, IEA
Executive Director Maria van der Hoeven
told the CEM, “Together, governments
have the power to set the clean energy
transition in motion and now, it is time for
them to use it. They are responsible for
regulation and investment climate.”
Throwing light on how the RE sector is
poised worldwide, she detailed on how
from 2010 to 2012, solar power had grown
by 40 per cent and wind had grown by 9
per cent. “There has been a huge growth
in wind and solar. Markets are expanding in
Brazil, India and China.”
Lamenting however that the “drive to clean
up the world’s energy system has stalled,”
she added, “despite talk by world leaders
and a boom in RE over the last decade, the
average unit of energy produced today is
basically as dirty as it was 20 years ago.”
On the dependency on oil and gas and on
coal imports, she said, “We need to look
into different solutions, and on the more
efficient use of coal. If India and China
continue to do what they are doing now,
then there will be import dependency,
just like what has happened in Korea and
Japan.”
What India garnered
For India too, the fourth CEM proved
significant as it launched the Super Efficient
Equipment Program (SEEP) to bring to

60 | Energy Next | May 2013


market ceiling fans that are twice as
efficient as currently available. Fans
account for about 12 per cent of
residential electricity consumption in
India today. Once fully implemented
in 2016-17, SEEP will annually save
almost as much electricity as used by
the state of Delhi in one month.
The Super-efficient Equipment
and Appliance Deployment (SEAD)
initiative announced the launch of
the SEAD Global Efficiency Medal
completion for electric motors. On
efficient lighting, SEAD announced
support for the establishment of
a Street Lighting Consortium in
and the CEM to develop this online
Source: CEM Secretariat
database and provide summaries in a
clear format.
India and Mexico are implementing
action plans for deploying cool roof
technologies through support from
Global Superior Energy Performance.
The EV City Casebook was released
and the World EV Cities and
Ecosystems web portal was launched
to accelerate the push towards
cleaner, electrified transportation.
It features a compilation of
deployment case studies from
16 cities and regions across nine
countries and three continents,
which account for about 30 per cent
of EVs on the road to date.
SSNKE facility
India which will serve as a resource In support of the 21st Century
for technical and market related Power Partnership, the World Bank
information to street lighting announced the launch of a South-
purchasers. The Indian government South-North Knowledge Exchange
announced the first ever database (SSNKE) facility at the CEM. It will
featuring national and state clean enable exchange of ideas and
energy and energy efficiency policies experiences in clean energy among
and incentives in India. The Indian members of the CEM, a high level
Renewable Energy and Energy global forum to advance clean energy
issues. A collaboration between the
Efficiency Policy Database (IREEED)
Planning Commission, Government
will disseminate RE and energy
of India and the World Bank, it also
efficiency policies, regulations
includes other CEM partner countries.
and incentive programmes for
project developers, businesses and Global Energy Assessment
consumers. Also, the MNRE and US
Anand Patwardhan, currently
Department of Energy collaborated
co-Chair of the Executive
under the US-India Energy dialogue
Committee of the Global Energy
Assessment, spoke on how they were
motivated by the desire to secure
pathways for a sustainable future.
“The key ideas were the
development of pathways
which address multiple energy.
Challenges are energy access,
energy security and climate
protection. There are many such
visible pathways with different
combinations of energy supply
and demand option. A rapid increase
in RE technology and energy
efficiency are common elements
in all pathways. Early action is
important for energy efficiency
and RE technology. Also, policy
integration enables multiple entry
points for change,” he said.
May 2013 | Energy Next | 61
 IREDA Corner Financing Trends
Wind dominates loan approval
A comparison
between IREDA’s loan
sanction reports of
2011-12 and 2012-
13 presents a robust
picture of renewable
energy expansion in
India. Energy Next
brings you the details
D
uring the financial year 2011-
12, a total of `340595 lakh
was approved for projects
that varied from energy efficiency to
wind farms. Wind stood out with 16
projects and a total loan sanction of
`164353 lakh. Hydro power was a
distant second with 14 projects and
a sanction of `77293 lakh. Biomass
power and cogeneration projects
came third with 7 projects, bagging
`49965 lakh. Solar off-grid and solar
grid projects together got a loan of
`34480 lakh. A major portion of the
money, more than `30,000 lakh,
was for grid-connected solar
projects. Even energy efficiency
projects that find it difficult to get
bank loans were offered financial
help. Two such projects were
given `14113 lakh.
Debashish Majumdar, CMD, IREDA, receives the Scope Meritorious Award on behalf of the
company, for the Best Managed Bank, Financial Institution and Insurance Company category.
62 | Energy Next | May 2013
Sectors/ Annual
allocation (Rs in lakhs) 2010-11 2011-12 2012-13
Wind 149563.34 164353.50 179217
SHP 98451 77293 91446
Biomass & Cogen 32835 49965.45 71111.97
Solar Grid 3939 30820.55 32151
Solar off grid 3660 00
Energy Efficiency 26155.54 14113 00
Waste to Energy 1698 390 810
Compared to the financial year
2011-12, the year 2012-13 again
saw wind dominating the renewable
energy landscape. A similar number
of projects (16) witnessed a greater
amount of loan being approved. A
total of `179217 lakh was sanctioned,
which was an addition of `14863 lakh
with respect to the previous year.
This was due to the bigger size of the
projects that were being set up by
independent power producers.
Hydro power again ended up being
second. While the number of projects
came down marginally from 14 to
11, the total loan sanction went up
as IREDA ventured into supporting
bigger hydro projects, too. During
the year 2012-13, loans worth `91446
lakh was sanctioned, a difference
Photo: IREDA
more than `14000 lakh, compared to
the previous year. Biomass power and
cogeneration also received higher
loan sanctions. They rose from
`49965 lakh to `71111 lakh.
In solar grid-connected projects,
the sanction for the year 2012-13
was higher than the previous year
and stood at `32151 lakh. In terms of
disbursement, too, the year 2012-13
registered an increase of more than
13 per cent and stood at `212550 lakh
as against `185504 lakh during the
previous year.
The trends have been consistent
in the last two years of the 11th
Five -Year Plan. During the year
2010-11, wind led with 12 projects
and a total loan sanction of a little
over `149563 lakh. Small hydro
came second with 13 projects
and loan sanction of `98451 lakh.
Biomass and cogeneration projects
were allocated `32835 lakh for
7 projects. Surprisingly, that year
energy efficiency projects got huge
allocations. Though the number of
projects was 3, the total allocation
was more than `26155 lakh. During
the financial year 2010-11, there were
no solar off-grid projects that sought
or got IREDA loan while the grid-
connected projects got `3939 lakh.
Overall, the total loan sanctioned in
all categories stood at a little more
than `312641 lakh.
 Upcoming Events

May
World Biomass May RENEWTECH May Maghreb RE
15-17 Power Markets 16-18 India 2013 21-22 Congress

T his is one of the

biggest and renowned
renewable power events
dealing with the biomass
power, co-firing and solid
Amsterdam, waste-to-energy sectors.
Netherlands The event will provide
platform to the industry’s
leading business people,
researchers, experts and
policy makers to deliberate
upon prospects and
challenges of the biomass
sector.
R ENEWTECH India is a
premier conference &
exhibition that bring industry
T he event brings
together North Africa’s
leading solar and wind
and business professionals power conferences-
on a common platform Solar Maghreb and Wind
Pune, India to share the knowledge Rabat, Maghreb exclusively
about RE and emerging Morocco focusing on the solar and
technologies. The 6th wind power industries
edition aims will be a suitable respectively. The event
platform to showcase aims to review the
products and latest tech current financial situation,
innovation solutions, build regulatory landscape and
brand awareness and the current policy updates
networking for business and try to address the
development. issues for the growth of
the renewable

www.greenpowerconferences.com/BP1305NL http://www.renewtechindia.com/about.html www.greenpowerconferences.com/MREC

May May May

All-Energy UK Mexican Int’l SEE Solar
22-23 29-30 Renewable Energy 29-31

U K’s one of the largest

renewable energy event
showcasing complete range
of renewable energy and
sustainable technologies,
Aberdeen, UK with a world-class
multi-stream conference
alongside. It brings together
all sectors and elements of
the renewable/sustainable
energy industry and
provides the best platform
for various stakeholders.
T he 2nd annual event
is one of a kind in the
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S outh-East Europe is
a considerable part
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the renewable energy solar radiation and the
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policy makers and high level the conference intends
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will enlighten about the technologies and their
current scenario and future application in the region.
course of action.

http://www.all-energy.co.uk/ www.greenpowerconferences.com/MIREC2013 http://www.eeandres.viaexpo.com/en/seesolar

June

June June
European Biomass Intersolar
03-07 Conference & 17-21 Europe 2013
Exhibition 2013
Copenhagen,
Denmark T he 21st edition of the pioneer event
in the biomass sector aims to cover Munich,
I ntersolar Europe is the
world`s largest exhibition for
the solar industry and central
all aspects of the sector from research Germany platform for industry players.
to industry and markets. The concurrent The exhibitors at the expo
exhibition brings together the engineers attract new customers and
and scientists working in the development strengthen existing contacts in
of the biomass power technology to countries all over the world.
interact with the industry.

http://www.conference-biomass.com/ http://www.intersolar.de/en/intersolar.html

64 | Energy Next | May 2013

RNI NO.: APENG/2010/38296 POSTAL REGISTRATION NO.: HD/1153/2011-13 Analysis: RPO Compliance
IN CONVERSATION EXPERT SPEAK PERSPECTIVE
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Biofuel: To blend or not to blend

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Volume 3 Issue 7 May 2013 Hyderabad Your guide to Renewable Energy

Target 2017: Racing

against time
The growing need for
low-carbon transport fuel
is making biofuel an increasingly
sought-after source. The challenge
before India is to make clean fuel
available and popular without
threatening the food supply

May 2013

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