Listen To The High Winds : Your Guide To Renewable Energy

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O.: HD/1153/2011-13 In Conversation Budget 2013-14 Perspective Moving Ahead: Small wind, big potential
S Padmanaban Industry Speak Anil Kakodkar Energy & Development: DSDS 2013
p22 p29 p33
Opinion: Beating the odds
VOLUME 3
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www.energynext.in
Volume 3 Issue 5 March 2013 Hyderabad Your guide to Renewable Energy
Listen to the
high winds…
march 2013
India’s potent wind energy sector has been wavering of late,

yet there are reasons to believe that the rough weather will
only make it grow stronger and faster
VOLUME 3 ISSUE 5 march 2013
VOLUME 3 ISSUE 5 March 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
Listen to the Publications Director R Ramprasad
high winds…
Head - Content Keshav Chaturvedi
Associate Editor Rosy Mishra
Associate Editor Sapna Gopal

India’s potent wind energy sector has been
wavering of late, yet there are reasons to Assistant Editor Upendra Singh
believe that the rough weather will only make Assistant Editor Sayantani De
it grow stronger and faster
Design Rahul Awasthi
Head - Business & Events Anupam Daftuar
Marketing & Circulation Nidhi Dutta
Manager - Research Anup Kumar
For the latest Renewable Energy news.

log on to www.energynext.in
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33 Anil Kakodkar
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In this Issue
42 Green Tracks
Better
service
Wind of Change
45
with less
energy
The Metro is
contributing big
time to electricity-
saving efforts in
Delhi by undertaking
a number of Breathing
new life into old turbines
initiatives
India has good potential for repowering with higher

capacity turbines to increase yield; however, favourable
policy guidelines are needed to make this possible
50 State Initiative
TN empowers
poor through RE
A solar-powered green house
scheme is going to make a
lasting positive difference to
the lives of people in the most
deprived areas
55 Global Voice IREDA Corner

60
Milo Sjardin Gauging
Head of Asia Pacific at
Bloomberg New Energy
carbon
Finance Milo Sjardin footprint
speaks on the trends
that will influence the A move by the financial
clean energy sphere in institution to count
the near future its carbon footprint
reasserts its leadership
in the Indian cleantech
movement
From the Editor-in-Chief
Making the most of the wind

F
or several years now, wind power has been one of the fastest-growing sources of clean and renewable energy
around the world and the year 2012 did not disappoint either.
According to the Global Wind Energy Council (GWEC), the wind energy market in 2012 had an annual growth
of almost 10 per cent. Although the Chinese market slowed a bit, possibly due to short-term issues like market
consolidation and rationalisation, for the US, it proved to be the strongest year with a record level of installations.
European markets, too, did exceptionally well.
Wind’s rapidly rising power generation capacity is making it increasingly cost-competitive with conventional fuels in
a growing number of countries. For instance, in Australia, which has some of the world’s best fossil fuel resources,
building wind farms is now cheaper than building new coal or gas power stations, says a study by Bloomberg New
Energy Finance.
In India, wind is already cost-competitive with heavily subsidised fossil fuel based energy in several states. The
International Renewable Energy Agency (IRENA) says one of the reasons that wind power has become competitive
with fossil fuel-fired electricity is that wind turbine prices have started to fall again after a temporary spike. That trend
is likely to continue as low-cost manufacturers from emerging economies enter the global market. A few years ago, a
similar trend was witnessed in the solar energy market, too, when Chinese manufacturers started manufacturing large
quantities of panels quickly and cheaply, causing the prices to head south.
The story of wind, however, is a little different. Here, technology has played a more effective role. Improved designs,
including bigger blades and taller towers have all led to enhanced efficiency. Wind farm designs have also changed for
the better.
Established technology has led to big investments in wind sector in India, too.
The country is emerging as a major wind turbine manufacturing hub today. Indian
companies now export locally manufactured wind turbines and blades to Australia,
Brazil, Europe, USA and a few other countries. Some of the international companies with
subsidiaries in India are sourcing much of their components from Indian manufacturers.
The recently announced Union Budget 2013-14 has provided further impetus to the
wind sector through the reintroduction of the Generation Based Incentive (GBI). Not
only that, the new budget has also earmarked a sum of ` 800 crore for this purpose,
reaffirming the government’s commitment to the growth of clean energy in the country.
In terms of power generation from wind, India ranks fifth in the world and has a total installed capacity of almost 18,000
MW. This will only improve over time – with fresh policies and more investments coming in, say experts. Exploring new
avenues like offshore and repowering will add to the strength.
The speedy growth of the wind sector will lead to higher demand for trained manpower,
and therefore, creation of more jobs. The sector could employ millions across the
world over the next decade.
So, the wind industry looks certain to play a major role in our energy future and in
our efforts to combat climate change. Its brisk pace is bound to force the pace
of sustainable development all over the world. All it needs is the assurance of an
unwavering policy and regulatory system. As British Prime Minister David Cameron
says, green technologies like wind power are “a growth item” that can increase
economic growth and must be promoted in the face of opposition. “This is a battle
we must win.”
Debashish Majumdar
Chairman & Managing Director, IREDA
news
Energiser
India’s first
offshore wind
energy project
in Gujarat
has been
included in
the provision
made by the
state in the
budget with
an aim to
raise energy
generation by
3,665 MW.
04 | Energy Next | March 2013

national
Energiser
Tata Power
got its third
RE power
plant, its
50.4 MW
wind project
at Samana
in Gujarat ,
registered
under CDM
programme
by UNFCCC
- the other
two being
the 50.4 MW
wind project
at Khandke,
Maharashtra
and 25 MW
solar project
at Gujarat’s
Mithapur.
March 2013 | Energy Next | 05

news
Energiser
Odisha will
soon set up
a dedicated
public sector
company,
Green Energy
Development
Corporation,
with the aim
of developing
small hydro
power
projects in
the state.

national
Energiser
The UP
govt has
announced
that Agra
is set to
become the
country’s first
‘solar city’.
A Detailed
Project
Report (DPR)
has been sent
by the Agra
authorities to
the Centre.

news
Energiser
The Energy
Technologies
Institute is
launching a
project with
Pelamis Wave
Power to
boost the
cost-
effectiveness
of large-scale
wave energy
converter
arrays in the
UK.

international
Energiser
Libya is
capable of
generating
approximately
five times
the amount
of energy
from solar
power than
it currently
produces
from crude
oil, a recent
research by
Nottingham
Trent
University
shows.

news
Energiser
Geothermal
power
generated in
Iceland will
now be used
by European
cars. As per a
deal between
Reykjavik’s
Carbon
Recycling
International
(CRI) and
Dutch oil
company
Argos, CRI
will provide
methanol
which Argos
will add into
gasoline.

international
Energiser
Thailand
unveiled
the largest
wind farm
in ASEAN
recently.
The West
Huay Bong
2 - West
Huay Bong
3 project
in Nakhon
Ratchasima
province is
expected
to generate
almost 1,200
MW in eight
years.

Cover Story India’s Wind Power
Listen
to the
high
winds...

T
he global wind energy market,
India is already one of despite going through tough
times, witnessed a capacity
the world’s major wind addition at an annual growth of
power producers and 10 per cent, according to the
has the potential to Global Wind Energy Council

(GWEC). Global investment in renewable energy
assume a bigger role in fell by 11 per cent in 2012, yet it proved to be the
the global energy scene second most successful year ever for the global
wind energy market. According to GWEC’s 2012
in the future, but in the market statistics, the global wind power sector
last one year, the sector installed 44.7 GW of new wind power capacity as
has slowed down a bit compared to 40.6 GW installed in the previous

year.
owing to an environment The United States (US) had an impressive year
of ambiguity. which saw an installation of over 8 GW capacity
in the last three months of 2012 alone, largely to
Upendra Singh takes a thrash an anticipated end of the US Production
look at the barriers that Tax Credit (PTC). However, the same couldn’t be
said about the Indian wind industry which has
need to be addressed to struggled to maintain the momentum gained in
bring the sector back 2011 in the backdrop of sudden reduction in tax
on track incentives by the government. Today, while India’s
renewable energy sector enjoys the support of
various policy initiatives taken by the government
in recent times; the wind industry is faced with the
challenge of living up to the expectations in the
wake of incentive withdrawal.
Industry and AD, GBI

According to the third edition of the report
“India Wind Energy Outlook”, jointly published
by WISE, IWTMA and GWEC, India is one of the
global leaders in wind power, and has a key
role in fuelling the country’s growing economy,
by delivering substantial amounts of clean
energy. However, despite all the progress and
achievements, the Indian wind industry is still
heavily dependent on tax incentives to attract
a specific category of investors. Much to the
agony of the Indian wind power players, the
Finance Ministry announced that it was ending the
Accelerated Depreciation (AD) incentive which had
been in force for a decade.
The AD was a mechanism whereby 80 per cent of
the capital cost qualified for tax break in the first
year itself, which attracted a lot of investors. At the
same time, the suspension of Generation Based
Incentive (GBI) scheme didn’t help the cause
either, forcing strong reactions from the industry.
AD was instrumental in encouraging companies
to erect most of India’s wind power capacity till
March 2013; however, several experts were critical

of the fact that this addition was to the wind energy sector.
done merely to gain tax incentives
and without any serious motive to Performance in 2012
The India generate electricity efficiently. At the time of the withdrawal of
AD and the suspension of GBI, the
Wind Energy Contrary to this perception, DV Giri, industry had said that the rapid
Outlook 2012 Secretary General of Indian Wind advances made by the wind sector
Turbine Manufacturers Association in recent times would be lost. The
report predicts (IWTMA), says it is “unfortunate that Indian wind power industry installed
installation of 89 GW AD is seen in a negative manner”. He a record 3,196 MW of new capacity in
terms the situation paradoxical as the year 2011, driven primarily by AD
of wind power in the high-efficiency coal boilers, despite and GBI. However, the sector seems
country by 2020, up causing pollution, enjoys AD, whereas
the non-fossil fuel and pollution-free
to have lost the momentum after the
two government incentives expired in
from almost 18 GW in wind power does not. March 2012.
Giri goes on to say that there is no
August 2012 difference in the performance either Since April 2012, Indian wind power
of GBI or AD which the industry has been struggling to come to terms
has mapped since 2006. “AD is a following the removal of the incentive
tax deferral and not a subsidy and schemes. This has not only made
an encouragement to the private the existing players circumspect,
sector for profit-making companies but the prospective investors in the
to deploy their funds into renewable sector are waiting for favourable
energy. We cannot forget that fossil conditions before putting in money.
fuels are not going to last forever and During the first six months of the
there is an urgent need for a judicious FY 2012-13, March-September, the
mix of various energies to achieve country managed to add just 844
energy security,” he emphasises. MW as compared to 1,400 MW
added during the same period a year
The Ministry of New and Renewable back, and by the end of the year, the
Energy (MNRE) was instrumental in total installation of new wind power
getting the AD extended for another capacity reached 1,020 MW. Even if
three years, from 2009 onwards. The an additional installation of 600-700
ministry even made a representation MW is achieved by March 31, 2013,
to the Finance Ministry for the the total addition for the year would
continuation of the scheme even be 1,700-1,800 MW which accounts
after March 31, 2012. On the contrary, for a deficit of around 40 per cent.
it is believed that the Finance Ministry Giri goes even further while
went by the observation of the predicting the consequences of the
Integrated Energy Policy Committee discontinuation of AD by saying that
of Planning Commission which the withdrawal of AD coupled with
opined that the incentives for the the non-availability of GBI from 1.4.12
wind sector should not be based on will result in almost 50 per cent drop
installation but they have to be based in installation between 2011-12 (3126
on generation. Some experts say that MW) and an expected 1500 – 1600
it is quite baffling that AD has been MW in 2012-13.
discontinued for the wind sector
while other forms of renewables still Manufactures feeling the brunt
enjoy that benefit. The industry is As per the India Wind Energy 2012
looking forward to the restoration of report, India is on way to becoming
AD and/or GBI. a wind turbine manufacturing hub,
as global and domestic majors are
However, as per the latest available beefing up their operations in the
reports, GBI has been restored in country. The report says, “Established
the new budget, but the struggle and proven wind turbine technology
to get AD back is still on. Reacting in India led to huge investments in the
to the news, Chairman of Indian sector. Increased domestic demand
Wind Turbine Manufacturers’ in the recent years and expansion
Association, Ramesh Kymal, said the of the in-house manufacturing
announcement brought “some relief” capacity of the Indian wind industry

is not only affected by AD, but also
the absence of a policy on GBI as
well”. He adds that the supply chain
management in the wind industry
which is a capital goods industry
is extremely sensitive and critical
components are tailor-made and are
long lead items with annual contracts
to ensure continuous and regulated
supplies.
Demand for restoration of

incentives
The incentives - both AD and GBI
- enabled companies to accelerate
their technological innovations,
in combination with customers in
realising the longer-term goal of
achieving parity with conventional
energy sources without the need for
subsidies and incentives. Industry
experts view the incentive withdrawal
coupled with a tough global
economic situation as the main
has resulted in attracting many
new manufacturers into the fray.”
The wind reason for the wind sector in India to
have performed below expectations.
However, the discontinuation of the energy sector Ever since the withdrawal of the
twin incentive schemes have kept
capacity addition lower in the current
in India is incentive schemes, the industry has
been demanding their restoration for
fiscal against that achieved in the last a major at least some more time so that the
fiscal, which has led to an adverse
impact on the balance sheets of the contributor in the sector can stand on its own and the
growth trajectory is achieved. “Failure
turbine manufacturers that dominate renewable energy to maintain the incentive schemes
the Indian wind power industry.
The growth of the Indian wind power industry and has the will significantly hamper the growth
and progress made until now,” says
industry took a giant leap with the
introduction of incentive schemes
potential to help attain Leo Schot, CEO, LM Wind Power.
He adds, “It will have significant
such as Accelerated Depreciation. the goal of 15 per cent consequences in terms of loss of
The wind turbine manufacturers in
the country played an important
share of renewable environmental gains from more
clean energy supplies, loss of the
role in the growth of the sector by power in the country’s tax and exports and loss of valuable
doubling up as developers alongside
manufacturing turbines. On the one
energy mix by the end employment.”
The India Wind Energy Outlook 2012
hand the manufacturers benefitted of this decade report predicts installation of 89
by assuming the role of developers,
but on the other hand the potential GW of wind power in the country
investors in the sector stood of discontinuing the incentive by 2020, up from almost 18 GW in
benefitted by AD. Major wind turbine schemes. The association feels August 2012. However, to achieve
manufacturers like Suzlon, Vestas, that the restoration of AD and GBI that target, current policy scenario,
Gamesa, Enercon, and LM Wind will help in reversing the fortunes renewable project obligation in
Power are feeling the pressure, and of the wind power industry, as the various states, need to be a way
therefore, calling for restoration of the initiative would instil confidence in for the government. The MNRE
tax incentives. the investors who are planning to has also echoed the sentiments
make an entry into the market. Giri of the wind industry and has even
The Indian Wind Turbine says the withdrawal of AD has had promised support in getting at least
Manufacturers Association (IWTMA), “serious consequences” on Indian GBI restored for the sector. On
the umbrella body of leading wind manufacturing companies, in buildup another front, the Indian Wind Power
turbine manufacturers in India, of inventories, delay in supply chain Association (IWPA) has rallied behind
has been continuously urging the activities and working capital lock-up restoration of AD, and its Chairman, K.
government to revisit its decision as everyone is aware that the “market Kasthoori Rangaian even met Union

Finance Minister P. Chidambaram reassessed the country’s wind power

to apprise him of the facts through potential at 102,778 MW at 80 metres In 2011, the
a presentation which said the height at 2 per cent land availability.
‘Accelerated Depreciation’ was only a This estimate was up from the earlier
state-run Centre
revenue deferral, and not sacrifice to estimate of approximately 49,130 for Wind Energy
the government. MW at 50 metres, also at 2 per
cent land availability. Going further, Technology
Challenges
Besides the difficulties caused by
the Lawrence Berkeley National (C-WET) reassessed the
Laboratory predicted India’s wind
the removal of the twin incentive power potential to be 30 times higher country’s wind power
schemes, the wind energy sector
has several other barriers to address
than actually estimated. potential at 102,778 MW at
– one of the major issues being the Wind power generation has grown 80 metres height at 2 per
absence of adequate transmission at a rapid speed in the country over
infrastructure. Tamil Nadu, the leader the recent years, especially in 2011, cent land availability
in India in wind turbine installation, only to be jerked in the financial year
with an installation of over 7,100 2012-13. The wind energy sector in
MW, is currently losing out due to India is a major contributor in the
insufficiency of evacuation lines. DV renewable energy industry and has
Giri sees this as a nemesis for new the potential to help attain the goal of
investors in the state. “Tamil Nadu 15 per cent share of renewable power
still holds Number 1 position in wind in the country’s energy mix by the
turbine installations totalling 6987 MW end of this decade, a target set under
up to 2011-12 and installed another the National Action Plan on Climate
163 MW up to December 2012. The Change (NAPCC).
problem of evacuation is definitely a
challenge in Tamil Nadu,” he says. However, to help the sector realise its
true potential, and to keep it moving
Then there is the issue of finance, as in the right direction, there needs
the financial institutions and banks to be a decisive intervention by the
are becoming increasingly reluctant government. The industry and the
in the absence of payment security. experts want the Indian government
Also, the removal of incentive to come with a comprehensive
schemes has not helped the case, renewable energy law at the national
as the banks feel that their money level, devise preferential tariffs,
couldn’t be recovered on time. In the incentives for repowering of older
absence of attractive incentives and farms, creating evacuation and
feed-in-tariffs, wheeling, transmission transmission infrastructure, grid
and other charges are making the integration, accurate forecasting
wind power projects not so viable for mechanism, streamlining of supply
captive and group captives. chain, etc.
Blessing in disguise?
There have been suggestions for a
Amid the subdued market, and business
‘National Mission for Wind’ on the
witnessing a downfall, there are those
lines of the Jawaharlal Nehru National
optimists who see the removal of these
Solar Mission (JNNSM) to give the
incentive schemes as a blessing in
wind energy industry more visibility
disguise for the wind energy sector in
to the financial sector. “The extension
the country. They are of the opinion that
of the Indian government’s visionary
with the number of installations coming
measures like GBI and AD or other
down in the wake of non-serious players
similar incentives can help achieve
opting out, the extravagant demand for
that target,” asserts Schot. He says
land may also ease a bit bringing down
the government initiatives will enable
the exaggerated prices, thereby bringing
companies in the wind industry to
down the cost of the entire project
bring environmental, economic
substantially.
and social benefits, and tax and
Looking to the future export revenues besides high-quality
In 2011, the state-run Centre for employment for talented people in
Wind Energy Technology (C-WET) the country.

‘Wind has potential for
further growth in India’
Q: It is going to be a year since the
In an interview to AD was discontinued and the GBI
suspended, and the wind power
Energy Next, MNRE industry in the country wants them
back. Do you think it was the right
Joint Secretary time to do away with the incentive
Alok Srivastava schemes for a growing sector?
speaks about the A: It was not all of a sudden that
the Accelerated Depreciation (AD)
state of India’s and generation based incentive
wind sector and (GBI) schemes were discontinued.
According to a Cabinet decision of
the government’s 2009, AD was to be withdrawn at
the introduction of the Direct Tax
plans to exploit Code (DTC) or the completion of
its full potential 11th Five Plan period - whichever
happened first. While DTC has not
been introduced yet, the 11th Plan
period ended on March 31, 2012, and
accordingly the AD benefit stood
withdrawn on March 31, 2012. GBI
was also started in pursuance of the
same Cabinet decision which was
to run during the remaining period
the 11th Five Year Plan. The wind
power industry was well aware of this
cabinet decision. Subsequent events
have shown that the wind power
sector does require these benefits
for further period for adequate
investments and development of
grid-connected capacity addition.
Q: Do you think that AD was
impacting the Indian wind energy
sector in a negative way?
A: The development in the wind
sector has been almost entirely
through AD from the beginning
till December 2009 when the GBI
scheme was started. Of course, a
developer could avail of either one
of the AD or GBI benefit during
the period December 2009-March

2012 when both the schemes were transmission infrastructure in the

operative. Hence it would not be country essentially to take care of
correct to say that the industry has not further addition of renewable energy
developed due to AD. The wind sector capacities in India. The report- Green
attracted investors in good numbers. Energy Corridors Report- estimates
Today, while the wind sector does not a requirement of around Rs 43,000
receive the AD benefit though other crore to extend the existing lines as
renewable energies get this benefit. well as develop new evacuation and
Data from Central Electricity Authority transmission infrastructure for RE
(CEA), an independent authority under projects. Under this programme,
the Ministry of Power, shows that the development of inter-state corridors
overall Capacity Utilisation Factor and intra-state transmission will
(CUF) from wind power projects right become possible so that power
from their inception is in the range generated at the good renewable
of 21-22 per cent which is very good energy sites could be added in the
in view of the moderate wind speeds grid. The Energy Management Centres
prevalent in our country. Moreover that are proposed in the report would
power utilities would not pay the effectively integrate the renewable
wind power generators if they don’t energies in the grid, taking care of
generate electricity. their variable nature.
Q: So, you want to say that AD Q: What is being done at the govern-
helped the wind sector in India to ment level to address the issue?
grow rather than the perception of
A: The MNRE, Ministries of Finance
the critics that non-serious players
and Power and the Planning
took advantage and entered the
Commission are working together to
sector?
tackle this issue. Concerted action is
A: Wind power sector has proved being taken so that the evacuation,
that it has potential and has shown transmission and grid integration
consistent growth in the last decade programme becomes a reality. Plans
and a half. As I have mentioned are afoot to explore sources of
electricity generation figures from finances through various means such
Central Electricity Authority (CEA) as the National Clean Energy Fund,
show that the wind farms in our Viability Gap Funding, and soft credit
country have performed at a CUF of from bilateral and multi-lateral
21-22 per cent. Even today, there are funding institutions
investors who want to invest in the period of five years (2012-17). We feel Q: Do you think that wind energy has
sector and it is good that investors are that with some incentive mechanism the potential to help realise the goal
showing interest. in place, capacity addition will of energy security in the country?
Q: Trends show that the installation increase and we will be able to
achieve our target for 2012-13. A: It is quite clear as a result of various
in the current fiscal will fall around
resource assessment studies that
40 per cent as compared to last year. Q: One of the major issues, apart wind energy has the potential for
What is MNRE doing to instil faith in from incentives, is the unavailability further growth in the country. As I
the investors? of adequate evacuation and mentioned earlier a lot of emphasis
A: Over the last 10 months, there has transmission infrastructure in the is on wind power capacity addition in
been reasonably good country that is hampering the the 12th Plan. It is an industry which
capacity addition in the wind power growth of the wind energy industry. has developed almost entirely through
sector even though it is not at the What is your opinion? the participation of the private sector.
same level as it was for the same A: MNRE is quite aware of these The problems and issues of the
period of last financial year. Yet we issues. The evacuation and industry are being addressed in the
are confident that wind energy will transmission infrastructure has to be best possible manner. MNRE is very
continue playing a major role for strengthened to derive maximum positive about attracting further
development of renewable energy benefits of further addition of investments in the sector, and
sector in the country. Even in the 12th renewable energy capacities. The indications point towards a
Five Year Plan we have pinned hope ministry commissioned a study bright future.
on wind sector that will contribute through the Power Grid Corporation
15000 MW out of a total of 30000 of India on the status and (This interview was conducted before the
MW of capacity installations over a requirements for strengthening the announcement of Budget 2013-14)

Opinion Wind Trail
Top 10 new installed capacity jan-dec 2012

Italy** Spain** Brazil**
1,173*** 1,122*** 1,077***
2.8**** 2.5**** 2.4****

Germany** Canada**
2,439*** 935***
5**** PR China** 2.1****

13,200***
30**** Romania**
6,385***
2.1****
USA**
13,124***
UK**
29**** 1,897***
4.2****
Rest of the
world**
6,385***
14.3****
India**
** Country, *** MW, **** % Share 2,336***
5****
Beating the odds

Despite a climate of uncertainty due to policy issues and lack of stable investments,
the wind sector has managed to emerge a winner. Shruti Shukla discusses in detail
how the sector is faring in India and abroad
L
ast year saw the continued US installations with 13,124 MW and America a close second, and Europe
expansion of the global wind a slower than usual market in China not far behind. However compared
market, with an annual market with 13,200 MW, leading to the two to 2011, while China slowed down
growth of almost 10 per cent and countries all but tying for the top spot a bit, both the North American and
cumulative capacity growth of about in 2012. Asia still led global markets European markets had exceptionally
19 per cent. It was a record year for in the regional tally, but with North strong years.

Opinion Wind Trail
The wind scenario in India

Top 10 cumulative capacity dec 2012
India is a key market for the wind
industry, presenting substantial
opportunities for both the France** UK** Italy**
7,197*** 8,445*** 8,114***
international and domestic players.
In 2012, the Indian wind sector
experienced slower than expected
2.5**** 3**** 2.9****
annual growth, with 2,336 MW of
new installations. (See graph showing
the cumulative installed capacity in
India between 2000 and 2012.)
Traditionally, balance sheet financiers

have driven wind power development
PR China**
in India. Last year saw a drastic 75,564***
reduction in the rate of one of the
two key incentives called accelerated 26.8****
depreciation (AD) from 80 per cent to
15 per cent in April 2012. Today, the
total depreciation benefit available
in the first year (effective from April
2012) comprises of 15 per cent USA**
normal depreciation and 20 per cent 60,007***
additional depreciation, which is
available for all power sector projects.
21.2****
Germany**
This drop in AD benefit has had a 31,332***
significant impact on the growth of
the market in 2012 and is likely to
Rest of the
11.1****
affect the growth prospects in 2013
as well. world**
39,853***
REC Registry as of mid-February 2013
issued over 4,869,000 non-solar 14.1**** Portugal**
4,525***
(Source: GWEC )
RECs. Wind power made up 56 per
cent of the registered generation
capacity. The market clearance price India** Spain**
Canada**
6,200*** 1.6****
for non-solar RECs ranges between 18,421*** 22,797***
2.2****
Rs 1,500 to 3,300 (~ EUR 21 to EUR
45) per certificate. However, due to
6.5**** 8.1**** ** Country, *** MW, **** % Share
poor enforcement and monitoring of
the Renewable Purchase Obligation
(RPO) by the states, the demand for industry is likely to see investments over 179,000 people in the sector and
RECs seems to be declining and a of almost $6.8 billion per year, $ 9.2 saving almost 131 million tonnes of
majority of RECs are selling at the billion per year by 2020 and $10.6 carbon emissions each year. By then,
floor price, as per GWEC, 2013. billion per year by 2030. Employment investment would have reached over
Scenario for 2020 and 2030 in the sector would grow from the $16.5 billion per year.
currently estimated 47,500 jobs
Under the latest Global Wind Energy to over 98,000 by 2020 and over With an acute need for electrification
Outlook (GWEO), it is expected that 126,000 jobs ten years later. and higher energy production in
as per the GWEO Moderate scenario, the country, wind energy is going to
the total installed capacity would Nevertheless, the GWEO Advanced provide an increasingly significant
reach almost 31.4 GW by 2015, and scenario shows that the wind share in the renewables based
this would go on to grow to 59 GW development in India could go capacity. By 2030, wind power would
by 2020 and 124 GW by 2030. much further. By 2020, India could be generating nearly 504 TWh/year
have almost 89 GW of wind power and be avoiding the emission of 304
According to Global Wind Energy in operation, supplying 219 TWh of million tons of CO2 each year.
Outlook 2012, by 2015, the wind electricity each year, while employing Wind energy can be a technology of

choice for meeting India’s national record. However, on-going sovereign
debt crises mean that the outlook for
electricity generation target. It has
minimal water footprint and helps to the 2013 market is uncertain, although INDIA: CUMULATIVE
mitigate the environmental impacts. If Europe’s framework legislation and its POWER CAPACITY
the existing range of policy measures 2020 targets ensure a degree of stability. IN MW
and incentives are implemented fully Europe also continued to lead offshore 200,000 New Policies scenario
supported by a long-term target with markets, with a 1,166 MW installed,
Moderate scenario
comprehensive grid and transmission more than 90 per cent of total offshore
installations of 1,293 MW in 2012. Moderate scenario
improvements, the wind sector in 150,000
India can become a 5 to 6 GW annual
market by 2015. Latin America
Brazil led an otherwise relatively 100,000
Just like India, globally too, the
quiet Latin America market with
performance of the wind sector has
1,077 MW, to bring its total installed
been impressive. Here’s a look at how 50,000
capacity to just over 2,500 MW and
it fared worldwide:
Australia accounted for all of the new
Asia installations in the Pacific region, with
0
Both the Chinese and Indian markets 358 MW of new capacity in 2012 for a
slowed somewhat in 2012, with their cumulative total of 2,584 MW. 2011 2015 2020 2030
annual installations coming in at 16,084MW 23,784MW 32,933MW 66,400MW
Middle East and Africa
13.2 and 2.3 GW respectively. Market 16,084MW 31,499MW 59,351MW 124,826MW
The MENA region had another quiet
consolidation and rationalisation 16,084MW 37,436MW 82,299MW 191,711MW
year, with only one 50 MW project
in China, and a lapse in policy in
completed in Tunisia, but
India were the main reasons for this
slowdown, but these conditions are
expected to be short-lived and Asian
dominance of global wind markets is
expected to continue. INDIA:
CUMULATIVE WIND
North America
In a last minute rush due to the
INSTALLATION(MV) (Source: GWEC )
anticipated expiration of the US’

Production Tax Credit at the end of
sub-Saharan Africa’s first large
December, the US industry installed
commercial wind farm came on line
more than 8,000 MW in the fourth
in 2012, a 52 MW project in Ethiopia.
quarter of 2012, ending up over 13.1
This is just the beginning of the wider
GW for the year, for all practical
African market. With construction
purposes tied with China. The last
started on 500+ MW in South
minute extension of the tax credit
Africa, GWEC expects Africa to be a
means that although the US market
substantial new market, where clean,
will slow substantially in 2013, it is
competitive energy generated with
unlikely to be as much of a slowdown
indigenous sources is a priority for
as was expected and the nature of
economic development. Morocco is
the extension bodes well for the 2013
moving towards construction of over
market.
800 MW of new capacity in the next
Canada had a solid year and Mexico
two years.
more than doubled its installed
capacity, installing 801 MW for a The author is the Senior Policy
total of 1,370 MW, joining the list of Advisor in the Global Wind
countries (now 24) with more than Energy Council (GWEC). With
1,000 MW of wind power capacity. over 8 years of experience in
Europe clean energy, she has authored several
European markets, led by Germany and publications on renewable energy and
the United Kingdom, with surprising the history of wind policies in global
markets
16,084
10,926
13,065
18,421
contributions from ‘emerging markets’

4,430
3,000
6,270
1,456
9,655
7,845
1,702
2,125
1,167
in Sweden, Romania, Italy and Poland, The views expressed by the author are
2000 2012
accounted for 12.4 GW last year, a new personal

In Conversation S. Padmanaban

‘South Asian
nations are faced
with an energy
security dilemma’
S. Padmanaban has worked with Q: Renewable energy and energy
efficiency are two important
USAID/India for over a decade, components for achieving low
and is Senior Energy Advisor carbon economy. India has made
huge strides in this direction. How
to the organisation. He is also and in what role does the United
the Director of the South Asia States Agency for International
Development (USAID) foresee itself
Regional Initiative for Energy in India’s march towards clean
Integration (SARI/EI). His career energy?
spans over 30 years of service A: The focus really began in the

early 1980’s on renewable energy
as an energy specialist with when USAID supported a bilateral
multilateral, bilateral, and programme called Technologies
for the Rural Poor where scientific
semi-governmental organisations institutions in India were partnered
with counterparts in the US to
in Asia and North America. research and develop renewable
In conversation with Keshav energy technologies, particularly solar
technologies – medium temperature
Chaturvedi, he discusses in detail solar thermal and solar power
the role of US assistance in India’s generation through photovoltaic
systems. In keeping with those times
transition to a high-performing, the agenda was left to the scientists
low-emissions and energy-secure to decide. Though many of the
technologies did not make it to the
economy and the possible role of market place, I think they actually
renewables in the energy mix of provided the foundation for some of
the early scientific developments in
South Asian countries renewable energy in India.

USAID involvement in energy as Maharashtra State Electricity leading industry association in India
efficiency dates back to early Distribution Company Limited and and the U.S. Green Building Council,
2000, working with the Bureau Bangalore Electricity Supply Company which helped India to establish
of Energy Efficiency (BEE) in the Limited. the second largest green building
Ministry of Power. Following the footprint in the world. So these
Today and into the future, USAID
Energy Conservation Act (ECA) of two examples clearly show the key
sees its role as equal partners with
2001, we worked with them as they role the private sector could play in
Indian stakeholders in catalyzing
designed and promoted India’s both directing investments in energy
market-driven innovations that drive
energy conservation building code; efficiency and renewable energy, as
businesses to develop and offer
developed capacities in the country well as deploying them at scale. In
sustainable clean energy solutions,
in energy audit; worked with several both these areas, as well as others,
technologies, and services.
leading financial institutions to the private sector has a key role to
mainstream energy efficiency as a Q: USAID attaches a lot of play and we are quite privileged to
part of their investment portfolio; importance to leveraging private have worked with the Indian private
and more recently we are looking financers in developing clean energy. sector.
at promoting the development of What have you achieved in this field
Q: Off-grid is touted as an important
specific industrial energy efficiency and what has been your learning
element in rural electrification and
technologies. A fruitful partnership while dealing with the private sector
achieving energy access to all. What
was with the Ministry of Power on the in India?
are your views about it?
Distribution Reforms, Upgrade and
A: USAID recognises that the private
Management Programme (DRUM). A: I couldn’t agree with you more.
sector, especially investors, plays a
Access to energy is critical for a
Together, we believed that one key role in developing the energy
country’s economic growth and
of the reasons for the indifferent sector in the country. The pace and
development. It improves the
performance of the power sector direction of the sector’s growth,
quality of life and helps meet basic
were the losses that were taking place particularly in the clean energy
lighting, cooking, transport, and
in electricity distribution particularly space is being led by public-private
telecommunication needs. Over the
in the “last mile distribution”, and partnerships. And we have had
past decade, India has embarked on
the DRUM programme sought to several interesting and important
several initiatives to provide energy
showcase models for demonstrating collaborations with the Indian private
access to all, especially in rural areas.
energy efficient systems in some sector. Let me name just two as
As in many countries, there is still
of the distribution companies in examples of working with the Indian
work to be done to close the energy
Karnataka, Maharashtra, Gujarat, and private sector to test, demonstrate,
access gap.
here in Delhi. At the same time, we and validate both renewable energy
recognised that distribution reforms and energy efficiency programmes. There is a close correlation between
need to be inculcated as part of One was in the early 1990s when income levels and access to modern
the human resources development USAID worked with the Indian private energy. In such places, there is
function in utilities. We therefore sugar industry in Tamil Nadu to typically a low electrification rate with
partnered with a nation-wide network establish India’s first cogeneration a high dependence on traditional
of training institutions that have, system with sale of cogenerated biomass for meeting energy needs.
thus far, trained more than 35,000 power to the state power grid. This As incomes rise, access to electricity
distribution professionals in various experience was noteworthy in that increases at a faster rate since
aspects of distribution reforms: several states, the Ministry of New governments give higher priority
in the management, commercial, & Renewable Energy, and financiers to electrification as it provides high
and technical operations of took the lead in making significant developmental benefits. Distributed
efficient and reliable power delivery policy changes and encouraging the generation renewable energy
systems. One of the highlights of deployment of such systems. (DG/RE) systems that can deliver
the DRUM programme was the electricity through mini-grid/off-grid
professional partnership that was The other experience USAID had networks can play a significant role in
created between a number of U.S. with the private sector was in the influencing such human development
electricity cooperatives under the establishment of the national green outcomes.
U.S. Department of Agriculture’s building movement in the early
Rural Utility Service and a few 2000s. Under this movement, we While there is a broad recognition
Indian distribution companies such supported a partnership with a that lack of access to modern

There are very
few business
models in
developing
countries that
demonstrate and
validate off-grid
renewables

energy has major implications for to significant savings. Technologies

development, the energy access gap like tri-generation, high and low
is also a potential market. Business temperature waste heat recovery,
opportunities that use low-cost local advanced micro-processor based
renewable resources to bridge the control systems, and other cutting-
gap are increasing. edge technologies need to be
introduced.
There are, however, very few business
models in developing countries that In the case of renewables, the major
demonstrate and validate off-grid driver is the regulatory and policy
renewables. There are very few climate, which is evolving and quite
groups working in this area and, positive in India. Since the onset of
most importantly, the gap lies in the the Renewable Portfolio Obligation
absence of institutional alliances (RPO) mechanism in India we are
among different stakeholders beginning to see the aggregation of
cooperating to deliver solutions renewable power portfolios in several
in the off-grid renewable space. parts of the country. To increase
There is a need for such an alliance implementation of RPO obligations,
because off-grid by definition Most ESCOs are either too small or one idea is to expand the definition of
is a decentralised issue since it under-capitalized with performance RPO to include energy efficiency as
involves multiple stakeholders: contracts that are generally deemed part of the RPO strategy. If we can,
local governments, villagers, NGOs, as risky. So we need to ensure that for instance, look at power generation
utilities, technology providers, venture financing is available to ESCOs to from waste heat and consider that as
capitalists, institutional investors, perform and develop acceptable a contribution to a region’s RPO, then
donors, and so on. performance contracts, under which that particular region might be better
they could share the ensuing energy positioned to meet its targets.
Q: The USAID website talks of
savings with their end-user clients in
reducing market-related barriers for
proportion to the risks assumed by Q: Energy efficiency retrofitting is a
promoting clean energy. What in
both parties. Finally, there is a great huge business opportunity, but there
your opinion are the barriers which
deal of opportunity in what I call is distinct unwillingness among
are withholding the true potential
“public use of energy,” which covers institutions to go for it because of
of energy efficiency and renewable
energy consumed in municipalities, maybe lack of awareness or they
energy in India?
water pumping, street lighting, are in their comfort zone. So how
A: When it comes to energy agricultural ground water irrigation you think this problem can be
efficiency, one must recognise the pumping, and so forth. In this tackled because the biggest business
satisfactory progress made over the “public use of energy” sector, energy opportunity lies in this segment?
past two to three decades in the wastage in developing countries is
unacceptably high – more than 50- A: Retrofitting is certainly an
country. Large organised sectors
60 per cent in some cases. So, we important energy efficiency business
of Indian industry have been able
need to address the opportunities in opportunity for buildings and industry.
to successfully introduce energy
energy savings in all these areas. Devices and systems, which enable
efficiency as part of their corporate
one to save or recycle energy back
strategy. There are also great
There is another point that I wish to into the primary process, are a good
opportunities in small and medium
make as far as barriers are concerned. example of retrofitting. In most
scale industry, and it is here that one
Some areas in developing countries’ developing countries industry’s ability
needs to be innovative in terms of
industrial sector have not moved to retrofit technologies has been
designing, developing, and delivering
beyond what I call “quick hits” or hampered somewhat by the fact that
energy efficiency solutions and
“first aid measures” in implementing they have been reluctant to assume
programmes. There are significant
energy efficiency measures that the risks associated with the delivery
barriers in all developing countries
typically require a fair amount of of energy savings. Unfortunately,
that should not be underestimated.
investments with simple returns of we do not have a meter that can
Barriers of lack of awareness, lack of
2-3 years. Most of them, save a few, measure “energy savings” since it
appropriate technologies and, more
have not done enough to introduce can never be measured, but can
importantly, the lack of financing. So
transformational technologies that only be computed. The general
these need to be addressed vis-a-vis
would bring about a dramatic savings absence of a monitoring and
the small and medium industries.
in energy. Today, major energy verification (M&V) system in industry
We also have to also understand that efficiency goals can be met only if has rendered capital investments
the Energy Service Company (ESCO) all were to take a greater risk in the in retrofits difficult to justify since
concept in most Asian countries has introduction of technologies that are managements are not entirely
been relatively slow in its acceptance. truly transformational and can lead assured that these investments will

lead to actual savings. Thus, the developed so far? Today we have an and innovative design practices.
lack of M&V systems, I think, is one indigenous rating system GRIHA. In There is a need in any green-
of the constraints, but not the only your opinion do GRIHA and LEED gel building industry for performance
constraint. One way to address and what have they done to further evaluation of buildings not only at
that constraint, I think, is to make the cause of green buildings in India? the design stage where a building
monitoring and verification protocols can be termed as green based on its
A: We at USAID have been privileged
mandatory to follow just as we have design characteristics, but also at the
to assist the green building movement
made energy audits mandatory. Just post occupancy stage. A building
in India, in partnership with the CII-
as any given country has a number anywhere in the world can turn from
Green Business Center in Hyderabad,
of energy audit engineers, it should green to grey to black very quickly
whose modest 20,000 sq. ft. building
also have certified energy monitoring if one were to allow the operating
was India’s first platinum rated LEED
and verification professionals, standards to slip and, therefore, it’s
building. This building created the
perhaps mandated under the Energy very important that buildings are
momentum for the establishment of
Conservation Act. If one were to do continuously monitored to evaluate
the Indian Green Building Council
that, then the kind of investments that their performance. The movement
(IGBC) in 2003. India, with more
are required for energy retrofits will has reached an authoritative
than 1.24 billion square feet of green
automatically follow. footing and with the association
building space, is today one of the
of GRIHA, LEEDS-India, and other
There is however, a broader world leaders. The IGBC has over
rating systems, I think it will go from
constraint that needs to be 1,500 members and 16 offices in India
strength to strength.
mentioned and that is, energy and has over 1,750 LEED registered
efficiency is still seen as a boiler room buildings in the country. LEED-
Q: PACE is an important initiative of
subject and not a boardroom subject. India is a recognised brand name
the U.S. and Indian governments.
One needs to make energy efficiency and covers many building types
What has been its high points
a boardroom subject by ensuring –commercial, residential, core and
and have they evolved some best
that it has important implications on shell facilities, and factories.
practices that can be replicated by
the productivity of a company, on its In large countries like India with Indian industry?
bottom line, and at a strategic level various climatic zones and multiple
on a country’s energy security. At A: PACE stands for the Partnership
design, engineering and architectural
a strategic level, energy efficiency to Advance Clean Energy and was
practices, there is a need for more
could help in reducing a fiscal deficit. conceived when the Indian Prime
than one green rating system.
Let me take a moment to explain that. Minister Singh visited the US in
GRIHA is playing that role and I
Major contributors to fiscal deficits November 2009. An MoU creating
think that GRIHA and LEED-India are
in some countries are the subsidies the PACE Programme was signed
complementing each other in a very
provided to cover the loss of revenues between U.S. Secretary of State
positive manner.
on account of low tariffs paid by the Hillary Clinton and India’s Minister
agricultural sector. These low tariffs, The green building movement is of External Affairs Mr. S. M. Krishna.
driven by social and political realities, poised to grow quickly, largely PACE is a collaborative effort
have resulted in a major revenue gap because there are opportunities in that brings together the skills and
for some power sectors. Countries innovative green building materials resources of many different USG
attempt to bridge this gap using a agencies including USAID, Dept. of
combination of cross subsidies from Commerce, Department of State, U.S.
the relatively well-off customers Dept. of Energy, U.S. Export Import
such as industry and a direct subsidy Today, major Bank, Overseas Private Investment
from the state exchequer. An energy Corporation and the U.S. Trade and
efficiency strategy aimed at reducing
energy Development Agency in cooperation
energy losses in the agricultural efficiency with their Indian government
sector would reduce power demand counterparts.
and result in lower subsidy payments. goals can be
PACE has two interlinked
Energy efficiency has implications met only if components: a Research Component,
not only at the industrial board-room
level to improve the competitiveness all were to take a greater known as PACE-R led by USDoE and
a Deployment Component, known as
of industry, but also has a much risk in the introduction PACE-D led by USAID. PACE-R and
broader relevance at a regional level
PACE-D both focus on supporting,
by favorably impacting the fiscal of technologies that are creating and nurturing innovations
deficits.
truly transformational via public private partnerships,
Q: USAID also helped start the innovative financing mechanisms
green building movement in India in
and can lead to and cutting edge technology.
2002 as you mentioned. What has significant savings The PACE-R programme is under

Programme with India to promote

together the development of the
clean energy market.
As we move along, PACE-D will
work collaboratively with the Indian
government as India advances both
the pace of renewable energy and
energy efficiency deployment at scale
in the country.
Q: You have been associated with
the energy efficiency sector for the
last 37 years and have also worked
closely with the renewable energy
sector. What future do you foresee
for both the sectors in India and
elsewhere?
A: It’s clear that both energy efficiency
The general absence of a monitoring and renewable energy are going to
be key resources in the energy mix
and verification system in industry has of the South Asian countries. The
long-term energy security in the
rendered capital investments in retrofits region is critically dependent on how
difficult to justify since managements the countries of South Asia are able
to meet their energy demand through
are not entirely assured that these cost effective and environmentally
investments will lead to actual savings sustainable ways. It is in this context
that energy efficiency and renewables
will play a key role. The countries in
implementation and under it three HVAC systems and so on. The South Asia are faced with an energy
areas have been identified: building programme will also assist in the security dilemma, which essentially is
efficiency, solar energy and advanced design and deployment of smart grid quite simple to describe. If they are
biofuels. PACE-R awards totaling $ technologies in select Indian utilities to grow at a rate of 6-9 per cent or
125 million of public-private funding that would lead to reduction in beyond, they are certainly going to
have been recently conferred to Aggregate Technical and Commercial accentuate the energy demand and
several Indo-U.S. consortiums in Losses (AT&C) losses, demand- supply gap even further because all
the aforementioned three areas side response programmes and the countries in South Asia except for
of research. As far as PACE-D is the introduction of grid interactive Bhutan suffer from chronic energy
concerned, it is still at its early stages renewable energy systems. We shortages.
of implementation. USAID has an will also work with micro-financing
institutional contractor in place institutions to support the design, On the other hand, if they do not
here in Delhi who has developed development and financing of off- grow at 6 to 9 per cent, then they are
partnership agreements with Indian grid renewable energy systems to going to accentuate the poverty gap,
as well as U.S. sub-contractors. The advance rural energy access. impacting the standard of living of
programme, when fully rolled out, will millions of people. This is what I call
Since PACE’s inception in 2009, the
work with both the Ministry of New the energy security dilemma.
U.S Overseas Private Investment
& Renewable Energy and the Ministry Corporation (OPIC) has approved The only long-term energy security
of Power in the areas of renewable or committed $741 million to clean of the region lies in the ability of
energy, energy efficiency, and cleaner energy projects. Since January 2011, these countries to harmonize their
fossil. The programme will partner the U.S. Export-Import Bank has energy markets and advance cross-
with the Bureau of Energy Efficiency approved nine solar energy financings border energy trade from renewable
to advance the energy conservation with an aggregate value of over US energy and energy efficiency, such
building code and help introduce $ 300 million, supporting 238 MW as solar energy or the hydro-power
certain innovative technologies in of solar energy generation. The U.S. abundantly available in the Himalayan
Indian industry such as waste heat Trade and Development Agency has kingdoms of Nepal and Bhutan, and
recovery technologies, high efficiency established the Energy Cooperation North Eastern India

Budget 2013-14 Industry Speak
BOOST FOR
WASTE-TO-ENERGY
The FM also proposed
a scheme to encourage
cities and municipalities to
encourage waste-to-energy
projects in PPP mode. For
promoting energy generation
through garbage, he said,
“I propose to support
municipalities that will
implement waste-to-energy
projects through different
instruments such as viability
gap funding, repayable grant
and low cost capital.”
Observing that “India tosses
out several thousand tonnes
of garbage each day”,
he said, “We will evolve
a scheme to encourage
cities and municipalities to
take up waste-to-energy
projects in PPP mode which
would be neutral to different
technologies.”
HOPE REIGNS
It’s one of the most keenly awaited events in the country – the announcement
of the annual Budget. This year was no exception. When the Finance Minister
declared the allocation of funds for the clean energy industry and the
reintroduction of GBI for the wind sector in particular, it sure was a reason to
cheer. But, what exactly does Budget 2013-14 entail for RE in India?
Sapna Gopal reports on what some of the industry majors have to say
F
or the renewable energy
in India, said that it would help
industry, this year has surely P P Gupta, companies to pass on the lower
begun on a positive note. One MD, Techno financing cost to end users. “The low
of the most significant developments Electric and cost of finance shall improve project
being the announcement of low Engineering viability as India is left with low energy
interest bearing funds provided by the
yield sites.”
National Clean Energy Fund (NCEF),
which will be given to the Indian interest bearing funds from the Concurring, P.P. Gupta, Managing
Renewable Energy Development NCEF to IREDA for renewable energy Director, Techno Electric &
Agency (IREDA) for five years. In his projects.” Engineering Co Ltd, stated, “It will
Budget speech, Finance Minister help in lowering the interest cost
P Chidambaram said, “In order Reacting to this move, Hemant which will ultimately benefit the
to provide low cost finance, the Kanoria, chairman, DPSC Ltd, one of customer. The initiative on renewable
government would provide low the oldest power utility companies energy will also lower the coal import

Shruti Shukla
Senior Policy
Advisor, GWEC
bill which has been one of the main

reasons for high Current Account
Deficit as highlighted by Finance
Minister.”
Since there will be financing from
IREDA, extra financing would be
available, added Sumant Sinha,
Chairman and CEO, ReNew Power.
Shruti Shukla, senior policy advisor
in the Global Wind Energy Council
(GWEC), felt that this will offer
some respite and help ease the high
costs of borrowing for wind farm
“Clean and green energy is a priority
developers in India. of the government. However, despite
Making cheaper funds available for cost advantage in labour, land and
renewable energy projects through construction, consumer pays a high price
clean energy fund is a commendable
initiative, reasoned Shubhra Mohanka, for renewable energy. One of the reasons is the
Director, Solid Solar. “Given the high cost of finance.” – P Chidambaram
limited reach of IREDA, it should
now evolve a mechanism that it can
“It has been in the works for some
further on lend through banks. It can Sumant
also work with banks that are willing time, we were expecting and it and
to provide equivalent amount of planning in accordance with that,” Sinha
additional funding for such projects. admits Sinha. Chairman &
This will make a larger pool of funds CEO, ReNew
As Prof K Kasthoori Rangaian, Power
available for clean energy projects.”
Chairman, Indian Wind Power
However, she suggested that it would Association (IWPA) too confesses,
with such a positive policy in place, to encourage not only domestic
have been helpful if funding to such investors but also foreign investors,
projects would have been classified wind energy investment in 2013-14
would revive. “Those investing more who will recognise wind as a potential
under priority sector thus making investment opportunity.”
more funds available at a lower cost than ` 100 crore in the infrastructure
to such projects. sector will get 15 per cent of Agreeing, Shruti Shukla adds, “India
investment allowance, according to has consistently been in the top-five
Reintroduction of GBI the budget. This is a good move and rankings for wind energy installations
Yet another notable announcement we hope that large investors in wind since 2004. It had a stellar year in
was the reintroduction of the generation will also opt for such an 2011 (3019 MW). Subsequently in
Generation-Based Incentive (GBI) investment.” 2012, the industry was significantly
for wind energy projects. “The non-
The IWPA chairman hopes that impacted by the removal of AD and
conventional wind energy sector
adequate allocation for wind is made GBI and witnessed an over 22 per
deserves incentives. Hence I propose
out of it, especially to finance small cent drop in installations. With the
to reintroduce ‘GBI’ for wind energy
self consuming investors. reintroduction and revision of the
projects and provide ` 800 crore to
GBI, we once again see the prospect
the Ministry of New and Renewable
For companies like Mytrah Energy of rising investments in the wind
Energy for the purpose,” the Finance
(India) Ltd, which have fared well, sector in 2013 with the prospects of a
Minister said.
despite problems last year in the wind full recovery by 2014. GBI will add to
Wind industry majors believe that this energy sector, this is a great boost. the attractiveness of the Indian wind
spells good news for the sector in Confesses Vikram Kailas, MD, Mytrah market to both foreign and domestic
India and will have a positive impact. Energy (India) Limited, “This is sure investors, however, we look forward

to more clarity on how the scheme
WHERE TN STANDS
will be rolled out.”
According to Prof K
But there are concerns too which are
Kasthoori Rangaian,
likely to be raised, till this is approved
Chairman, IWPA, in 2011-
by the Cabinet. As Sinha explains,
12, investment in the wind
“We do not have the details yet, as
sector in India was 3,200
to whether the structure is the same
MW with an investment
or it will be different. Also, it needs
to the order of ` 19,200
to be approved by the Cabinet.
crore. After the withdrawal
Moreover, what the wind sector
of AD and GBI, investment
needs to know is whether it is going
in windmill installation fell.
to be reintroduced from April 1, 2012
“We had an installation of
onwards. That is something which we
1,200 MW up to end of
are not clear about, as yet.”
Jan 2013. In fact, in 2012
He believes that while some of the -13, we may end up with
minor issues have been positively a installation of 1400 MW,
impacted, with the fiscal deficit going resulting in a loss of 1800
down and the RBI reducing interest MW of installation and
rates, issues such as enforcement vanishing of ` 10,800 crore
of RPO and tariffs in different states in investments.”
are pressing concerns for the wind Now that ` 800 crore has
industry. “As far as the wind industry been allocated to MNRE
in India is concerned, it all now for GBI, it would be for
depends on the tariff mechanism in the Group of Ministers
states, the state DISCOMS and also (GOM) Finance, Power
the RPO enforcement.” and MNRE to finalise
modalities of providing GBI
On the whole though, the move has for wind investors. At such a
been hailed even by those who are meeting, the GOM may also
not a part of the wind industry. As have to bring back AD. In
Siddharth Malik, Managing Director, Shubra 2011 -12 out of 3200 MW,
Megawatt Solutions Pvt. Ltd reasons, 1000 MW opted for GBI,
“The reintroduction of GBI in wind
Mohanka
Director, the rest was through AD.
sector might have some impact “If the AD route, which is
on solar projects, given that each Solid Solar
not a dole or a subsidy but
investment dollar has an opportunity only a deferral in collection
cost.” of revenue for government
Nehru National Solar Mission. The is also brought back by
Adds Hemant Kanoria, chairman, plan of the Ministry of New and
DPSC Ltd, “This is a major incentive GOM for plan period – (for
Renewable Energy (MNRE) was to which we, a 1,400 member
announcement for the RE sector. engender creation of 750 MW of solar
The GBI reintroduction will help investor strong wind power
photo voltaic capacity in 2013-14 by association will appeal for),
the sector in terms of motivation providing viability gap funding.
for installing additional capacity possibly the growth in wind
and reducing power deficit of the Some like Shubhra Mohanka, energy will be back on
country.” Director, Solid Solar, feel that track.” Additionally, 2013-14
the Finance Minister could have may see an installation of
What of solar? supported the domestic solar industry 4,000 MW and 5,000 MW in
As far as the solar sector is by increasing the budget outlay for 2014-15. In fact, AD will
concerned, status quo has been solar energy and imposing duties on enable small investors
maintained, there being no customs import of solar products. “Currently, to get margin money
duty on solar cells and modules, as there is an inverted duty structure on for investment and all
has been demanded by domestic solar products, meaning it is cheaper consumers like SSI will
manufacturers, according to a report to import finished product than raw be back to investment in
in Business Line. It adds that the materials.” windmills.
Budget does not set apart any sum
for providing ‘viability gap funding’ Stressing on the significance of this
to the projects that would be set up sector, she adds, “Being a growing
under the Phase II of the Jawaharlal economy, India has very crucial

India plans
to add
3,000 MW
of capacity
from wind, small
hydro, biomass,
industrial
waste-to-energy and
solar power plants Prof. K.
Vikram Kailas Kasthoori
MD, Mytrah in the year to March
Rangaian
Energy 2014, as per the Chairman, Indian
budget documents Wind Power
Association
energy needs. With coal and oil cost of imported steam coal, which they want to promote renewables.
becoming scarce and nuclear can impact the unit cost of electricity Lastly, the rural sector has been in
being dangerous, solar remains the by up to 10 paise per unit. This does the limelight, which off-grid players
only viable option for future. In the reinforce the business case for in renewable industry can benefit
current stage of evolution, it requires renewables in the long-term energy from. Reacting to the power sector’s
huge support from government but mix in the context of grid-parity, proposals, Kanoria states that the
there was virtually no mention of a measure of competitiveness of Finance Minister’s announcement
solar in this budget.” renewable energy.” in the Union Budget for 2013-14 to
extend tax holiday up to March 2014
However, Malik is of the firm There is also a recommendation is a welcome move for the power
belief that solar is here to stay. “It for low interest bearing funds being sector, which has been facing many
is the cornerstone of long-term made available for renewables, bottlenecks in recent past. “However,
sustainability in the Indian economy.” which will be a key growth driver. the announcement to impose 2 per
The larger call to state power cent customs duty on coal import
Favouring RE?
utilities to implement prudent is disappointing as many power
Malik feels that the budget
financial restructuring is significant projects in the country are suffering
impact on renewables at large is
too, since states eventually have from fuel linkage issues”
interesting. “The hike in customs and
to take a call on how aggressively he laments.
countervailing duty will increase the

Perspective Anil Kakodkar
Q: The Solar Energy Corporation

of India (SECI) has taken over from
NTPC Vidyut Vyapar Nigam Ltd.
(NVVN) as the nodal agency for
JNNSM Phase-II. How does SECI
plan to manage this enormous
exercise?
A: SECI is a vehicle to implement
the mission; you’ll have to look
at a variety of options. Due to the
strategy of competitive bidding and
international market conditions,
solar power is fast becoming
competitive and expected to achieve
grid parity. The question is how to
accelerate the implementation of this
programme in such a scenario and
at the same time, do it in a manner
that the implementation remains
stable. In order to deliver energy in
a competitive economic condition,
it has to be at an optimum overall
cost. This is something which needs
constant evaluation – that is one part.
The second part is, the bundling of
power which was the route adopted
earlier. We can still continue on
that route wherever possible but
we could reach a limit. The other
incentive or driver is the regulators’
insistence on minimum renewable
purchase obligation (RPO) on part of
the discoms – some states are very
aggressive and some are not. Yet,
there is a third mechanism – we need
to explore direct links with potential
‘DCR is a saving
buyers. For example, there are people
who buy merchant power which is
expensive at times. We can’t control
the time of the day when energy
grace for Indian

can be supplied, but there may be
opportunities to still explore that
way. There are renewable energy
certificates as well – they have just
manufacturing’
begun and one has to wait and
watch as to how it transforms. If that
becomes an attractive option, it can
become a potential route. There are
different routes possible and as things
unfold, we can explore more.
Eminent nuclear scientist and Chairperson of the
The other aspect is to address some
Solar Energy Corporation of India, Dr Anil Kakodkar, of the key technology issues. For
in an interview to Sayantani De, shares his thoughts example, now there is possibility to
connect solar power to grid even at
on the future of the country’s solar power industry a very low level of generation, like
and plans for indigenous development of solar rooftop may be connected to the
grid. Now the question is how to use
technologies and components that as a major incentive? There

should be a decentralised investment India has an industry for assembling

in rooftop and even if it is used at
household levels, that much power and that is also in difficulty, primary
from the main electricity grid offsets.
manufacturing is hardly anything. That
Now, if we address all these
technology issues, for example, we
is a major challenge; there is a need to
produce spcolar energy and integrate take a strategic view
into the grid – this will again bring
in the question of efficiency, do we
have the most efficient conversion
technology? There is the question
of generating very large capacity
of power through solar thermal.
Today, there is perception that solar
thermal technology is very expensive.
So what needs to be done to bring
that cost down? We may do some
exercises in terms of developing
and demonstrating technology of
solar thermal, so that one can make
sufficiently informed investment
decisions. There are issues like
domestic supply chain – we are quite
weak in that. power-driven pump disconnected measures have been taken to
from the grid attractive as compared encourage them?
There is a whole set of opportunities to grid-power driven pump. The grid
available based on the policy A: Unfortunately, as far as solar is
power is subsidised by the industrial
announcements by the governments concerned, today things are mostly
consumers – they pay higher tariff
– both central and state. There imported which is not a good
so the agricultural consumers can
are different players and SECI is thing. The world of photovoltaic is
get subsidy. If the proportion is
one of them, while we complete over capacitated today; the costs
brought down, the amount that
the assigned task, we also need are going down and dumping is
industrial consumers have to
to create some questions, on the taking place, it is creating fair bit of
subsidise out of their consumption
basis of which we can work. We difficulty. India has some industry
would come down, which in turn
also need to develop a number of for assembling and they are also in
would mean that the tariff would
new products such as rooftops, difficulty, primary manufacturing
become cheaper. That actually is a
mini-micro grids along with solar is hardly anything – a few may be.
big boost to the economy. I think
photovoltaic and may be hybrid PV That is a major challenge; there is a
paying extra attention to solar- need to take a strategic view. While
that can deliver energy for a longer driven agricultural pumps to make
period of time – hybridised with wind setting up a solar manufacturing
them attractive makes immense unit, on the face of it, it may appear
or biomass. Developing solar lights sense, not only from the point of
can be another area – I personally that it may not become commercial
delivering energy for pumping but because the cost of production is
believe developing niche areas like also making the whole economy higher than the rates in which one
solar lights should be developed healthy. The pumps used are AC can buy from outside. If it goes on
in rural areas where today most pumps and solar energy produces like that, it makes us vulnerable to
of people use kerosene that has a DC power. Now the question is can supply shortage. There are other
huge subsidy; making solar lights we develop DC motors which are technology challenges in terms
popular would help government as cost-competitive as AC ones? In of finding materials that may help
save on kerosene subsidy as well as terms of efficiency, they’ll be always enhancing reliability of solar and
avoid use of kerosene there. One better. These are a few directions that making it cheaper. Today, one should
could do this in a manner so that will not only promote growth of solar have enough capacity on solar cells,
you have good branded products, energy but it will also create very LED and glass for variety of purposes
but at the same time it also serves substantial collateral benefits either including other reflector materials for
as cottage industry – lot of people in terms of savings on kerosene or solar cells.
in villages will assemble them. With making industries more efficient.
this, a new way of livelihood in One way of addressing it is to getting
villages can be created. There can Q: What is the status of indigenously the industry and R&D labs to work
be growth in agricultural pumping developed renewable energy together and develop products on a
also – farmers find stand-alone solar technologies in India? What policy competitive rate. If you just leave it

to industry then they get technology projects, especially by Indian that; we are in transition. In any case,
from somewhere, some industries lenders such as banks and financial we expect grid parity pretty soon; I
do their own in-house R&D, but institutions remain a challenge. think in another 3–5 years if solar can
otherwise the technology becomes be brought into the domain of cost-
A: They all see this as a ‘not-safe-
stale over the period of time and competitiveness, the question of RPO
enough’ investment. There is priority
uncompetitive. If we do it purely in will not arrive at all. The thrust should
sector lending; I think some of these
R&D lab, we can’t drive the way the be to drive costs down, both by
should be brought under this. From
industry can drive. It is better we scale-up as well as technology and in
the banks perspective, their risk
create craftsmanship in the sense doing that you have to cash in on the
perception about solar projects has
that development should be done initiatives and opportunities.
to be minimised. We also need a
with the help of both industry and
lending mechanism where interest We would like to benefit from RPO
laboratory. The government can also
rates are low, repayment periods mechanism and I think government
set up laboratory to carry out long-
are long – there should be some would do something about it. The
term development.
such mechanism for developmental state regulators should impose
Q: The clause of domestic content objectives. At this moment, we are penalty for non-adherence to RPO;
requirement during the JNNSM not a player in solar large enough the point is that regulation has
Phase-I was criticised by industry on an international level. Therefore, to be effective, but there may be
and experts. Even internationally, the solar business in India is subject state regulators who may not be as
such provisions have attracted to risks arriving from external enthusiastic as others and may not
adverse reactions from countries, parameters. We plan some business put obligation at a reasonably higher
prompting them to lodge and then something happens in China level. Some have RPOs, some have
complaints with WTO. Do you think and the whole business haywire. solar specific SPOs – that is a part
DCR promotes protectionism and Obviously, this makes lenders feel of the state policy. Certainly, there
amounts to unfair trade practice? that this is risky. So it’s an egg-and- should be dialogue between central
chicken problem. On the other hand, and state government on this. I
A: In a situation where Indian
you want solar energy in a big way, would personally like to see as much
manufacturing is suffering so much, I
think domestic content requirement
is a saving grace. The answer lies in
creating capacity for those and insists Public perception sees solar and nuclear
on domestic content requirement so in contradiction to each other and that
that you can protect that. We cannot
take an extreme view of anything. If is the whole problem
solar energy has to grow, you need
investment and finance. We want
Indian manufacturing industry to benefit derived out of this. However,
why can’t we do things in a manner
grow hand in hand, if not anything the larger picture is, the gap is
else, why should so much of value that helps in it, and avoid conditions
like supply shortage; if that happens, narrowing down –solar power can’t
addition opportunities should be get subsidy in perpetuity, so why not
given to others, it should be here. If the lenders will see it as risky.
hasten the process. Our objective is
that has to be done, then you have to Q: RPO implementation in India is to have larger penetration of solar
create conditions that the domestic in a shambles in a way due to the power. More targets as a result of
manufacturing remains competitive; poor economic health of the state solar policy at national and state
for some uncontrollable reasons, if discoms among others. What do you level will ensure it as generation is a
that doesn’t remain competitive then think should be done to improve the concurrent subject.
there has to be some measures like situation?
giving preference to domestic sector. Q: One of the objectives of JNNSM
I think it has to be a mixed basket A: That’s an action at the government Phase-II is to “encourage solar park
– if you insist on one pattern, you’ll level, purely. An example from cluster development”. How does
always have some difficulty or the nuclear can explain it probably – the government plan to ensure the
other. If you say everything has to be there was a time when everybody land required for these parks?
domestically produced or supplied and was criticising the nuclear projects as
expensive and people were refusing A: You have to find out required land
if that doesn’t create any difficulty in
to sign PPAs. I kept them aside and depending on how many megawatts
accessing financial resources, it’s okay.
went on with the plants. The moment to be produced. But, it has to be
But if it doesn’t allow access to financial
they completed, people came in for done in a manner where it doesn’t
resources, then what good will happen?
their power demand. In fact, several get into conflict with other land
The dynamics should be not to give
chief ministers called me at that time requirements – agriculture, habitat
away but to exercise optimisation.
despite giving me letters refusing and other developmental projects.
Q: But financing renewable energy nuclear power. Solar, I think, is like Rooftops are a good idea as well as

that transition is of around 5000

kWh, which means that if you want
to get at the highest HDI, you have
to reach that electricity supply, at
least. The average consumption of
OECD countries is at 10000 kWh
while developed countries have
15000 – 20000 kWh consumption.
If India is to become an economic
superpower, it has to increase
the energy supply. That, coupled
with India’s growing population,
corresponds to ten times the
using the land that comes under the Q: The policy document for electricity we produce today.
barren and uncultivable segment. Phase-II has a provision for solar The incremental energy that we
Such lands away from cities and resource monitoring and assessment, would require in coming days will
human habitat should be targeted do you think India has adequate correspond to 40 per cent of global
for large capacity generation. But expertise in finding out right places electricity supply today.
there is a technology challenge for projects? In the context of the huge energy
there –if that land happens to be challenge, nuclear and solar are
A: On a macro scale, if one-fourth
in desert or in mountains, then the the only sources which have some
of the total barren and uncultivable
technology should be fit to survive the substance, although other sources
land away from the human habitat
environment there and that’s what I should be tapped as well. I think
is devoted to solar, it can generate
meant when I said creating products. most of them are living in a fantasy
enough power to meet India’s
I have myself started working on such world, they are not realising the
demand in 2050. It requires a proper
products but it will take time. challenge. Nuclear, as it is today
planning – the grid has to transport
with Uranium, is not going to meet
Q: Rooftops, as you said, are a good power and other related issues
the requirement coming up and
option and are said to have immense have to be taken care of – all that
elements like uranium and thorium
potential. What is the reason that investment has to be made. It may
have to be recycled. Solar energy is
they are yet to take off in a big way become an issue like inter-connecting also in that category, it can address
in India? of rivers. the challenge, provided the right
A: It is taking off, certainly. So far, You have to build the infrastructure technologies are developed. This
there was the issue of grid connection suitable for it– when large-scale sector’s rapid growth is going on due
– normally unless the installation is capacity addition is planned; one has to policy and market push; I would
larger than a particular capacity, it was to take care of these. Whoever is in also like to ride on that momentum.
the business of grid has to run it in a The focus has to be to drive it
not possible to connect to the grid.
way which is viable. Now if there are in terms of technology which is
But now, there are changes in the
grid issues in areas where wind energy appropriate and relevant to India.
offing where even smaller capacity
rooftop generation can be connected. is generated, one has to see if the
Public perception sees solar
Once that becomes possible, it will wind farms are able to give the grid a and nuclear in contradiction to
of immense help. It is a cost-effective viable business. It has to be checked each other and that is the whole
solution and should become more whether only wind is sufficient or a problem. Both are clean energies,
popular in coming days. For large combination of sources is required. but they come from two different
installations such as workshops, Q: Does your expertise in nuclear ideologies, mainly from social
the tariff may at times depends on technologies align with your current activists’ perspective. Any technology
the connected load. The electricity responsibilities as SECI chairman? produces waste and therefore comes
consumption may be actually much with waste disposal mechanisms;
lower, but since my connected load is A: I am an energy person and if nuclear radioactive waste decays
higher, the cost increases. If there is a you take a long-term view of the while that produced by solar
solar rooftop installation, one can cut energy scenario in India, nuclear manufacturing doesn’t. As the
down or add the amount of connected and solar are the only two sources segment is yet to develop in India, we
load as required and will hardly require which can supply electricity at a level have to find out suitable mechanism
depending on the grid for power that India would require. Today the for waste disposal. Regulations must
and save a substantial part of tariff as consumption is at 700-800 units be proper and if people don’t adhere
well. There are instances where the per capita; if you look at the Human to them, they should be forced to
investment was paid off in two years. Development Index (HDI) vis-à-vis follow the rules along with strict
I am sure that such niche areas will per capita consumption of electricity, monitoring and imposition of penalty
definitely grow. it sharply rises and then plateaus – for violations.

Solar Trade War PV Tech
The curious case of

The US complaint DCR and
US grouse
to the WTO over
India’s domestic
content condition
in its National Solar
Mission not only shows
I
ndia is in the process of finalising The current manufacturing capacity
signs of rising trade the contours of the second phase of the country is only of 15MW
of its Jawaharlal Nehru National ingots and wafers, 850 MW solar
tensions between the Solar Mission (JNNSM). According cells and around 2000 MW modules.
two countries, but to the draft policy document posted Even if we assume that the entire
on the website of the Ministry of quantity of modules required would
also highlights the New and Renewable Energy (MNRE), be domestically manufactured,
increasing importance “National Solar Mission envisages considering that approximately 60
per cent of the cost is on account of
installation of around 10 GW utility
of renewable energy as scale and 1 GW off-grid solar power wafers /ingots, and only 7 GW target
is met through solar PV route, the
the new battleground projects by the end Phase-II. … It
import bill would be of nearly US $7
is envisaged that out of this 10 GW
in global trade. Dr PC target, 4 GW would be developed billion.
Maithani explains why under central scheme and 6 GW One of the important objectives
under various State specific schemes.” of JNNSM is to promote local
India should leave no The 10 GW target will create market manufacturing. So, the developers
and economic opportunities of the are expected to procure their
stone unturned in its order of Rs 80,000 crore or around project components from domestic
fight to win the case US$ 16 billion, as per broad estimates. manufacturers, as far as possible.

provide less favorable treatment

to imported solar cells and solar
modules than that accorded to like
products originating in India;
Article 2.1 of the TRIMs Agreement
because the measures appear to be
trade-related investment measures
inconsistent with Article III of the
GATT 1994;
Articles 3.1(b) and 3.2 of the SCM
Agreement ( read Subsidies and
Countervailing Measures) because the
measures appear to provide a subsidy
contingent upon the use of domestic
over imported goods; and
Articles 5(c), 6.3(a), and 6.3(c) of
the SCM Agreement because the
measures appear to cause serious
prejudice to the interests of the
United States through displacement
or impedance of imports of U.S. solar
During Phase-I of the Mission, the Achieving cells and solar modules into India and
domestic content requirement (DCR)
condition that projects based on indigenous through lost sales of U.S. solar cells
crystalline silicon (c-Si) PV technology and solar modules in India.
should use modules manufactured
manufacturing
in India, was comfortably bypassed in solar in As India has not appropriately notified
through thin film solar cell imports. these measures, India appears to have
The US companies had a major
particular and renewable failed to comply with Article 25 of the
market share in JNNSM Phase-I. energy in general is of SCM Agreement.
Thin-film PV technologies, mostly
First Solar cadmium telluride PV, strategic importance for India’s measures also appear to nullify
or impair the benefits accruing to the
comprise the majority of US exports our country United States directly or indirectly
to India. Around two-third of the
panels installed in India is thin-film, under the cited agreements.”
while globally its share is in the range
India on certain measures related to DCR: Bone of contention
of 10-15 per cent.
domestic content requirements for India has been a WTO member since
The US Exim Bank and the Overseas solar cells and solar modules under 1 January 1995. As per the WTO
Private Investment Corporation the Jawaharlal Nehru National Solar charter, the request for consultations
(OPIC) offer low rates of interest Mission. formally initiates a dispute in the
(about 3 per cent) and a long WTO. Consultations give the parties
In a typically American move, the an opportunity to discuss the matter
repayment schedule (of up to
present petition in WTO is pre- and find a satisfactory solution
18 years) to Indian solar project
emptive in nature, eyeing the without proceeding further with
developers, provided they buy
country’s own business interests and litigation. If this doesn’t work even
thin-film panels manufactured by
chasing markets and profits. fail after 60 days of consultations, the
US companies. This has distorted
the market completely in favour of US contention complainant may request adjudication
US companies. Such protective and The US request for consultation by a panel. The point in question is
promotional measures of the US, says: “… it appears India requires solar that a country should not discriminate
coupled with low-priced Chinese power developers, or their successors between its trading partners and
solar cells have led to the forced in contract, to purchase and use solar between its home-grown and
closure of almost the entire domestic cells and solar modules of domestic foreign-made products, services or
solar industry. origin in order to participate in the nationals. Further, foreign companies,
NSM … India’s measures appear to be investors and governments should be
The United States, on 6 February certain that trade barriers should not
inconsistent with:
2013, notified the World Trade be raised arbitrarily. For, a stable trade
Organization (WTO) Secretariat of Article III: 4 of the GATT 1994 environment encourages investment,
a request for consultations with because the measures appear to and hence creates opportunities for

employment, and consumers can services. With effect from 1 January In Brazil, the Proinfa wind feed-in
fully enjoy the benefits of competition 2011, that proportion has gone up to tariff programme, which was replaced
in terms of choice as well as lower 60 per cent. last year by a tendering system, also
prices. stipulated 70 per cent local content,
The first country to use local content but the requirement was later
The competition for increased rules to tilt the playing field in dropped - at least for 1.5MW-plus
renewable energy market share has renewables was China. Soon after turbines, after it became clear that
resulted in a number of trade disputes. the introduction of its first renewable the capacity of the local factory was
Over the years, policy initiatives have energy law in 2005, it demanded not sufficient to meet the programme
spurred renewable energy growth that a certain proportion of the target.
in many countries, including India value-add of wind turbines had to be
– JNNSM is one of the examples. In produced in China in order for them Procurement of photovoltaic devices
fact economic activity linked with to qualify for the national wind tender for defense purposes in US is covered
manufacturing of renewable energy programme. At one point in 2007, under Buy American Act, i.e. local
systems and components, and the local requirement reached 70 per manufacturing condition, with certain
associated spillovers such as local cent. exceptions.
employment, etc. are becoming
increasingly important components
for policymakers. At the same time,
this has become an increasingly
contentious issue at the international
level. In the recent past, trade
disputes were witnessed between
the United States and China over
solar PV, and Japan and Canada for
renewable energy support policies.
US manufacturers contended
that allowing Chinese companies
to produce and sell products at
artificially low prices and dump them
on the US market is a challenge to
US manufacturers. Consequently,
it became very difficult to keep
their production cost-competitive
with cheap Chinese imports. Solar
manufacturing company Solyndra’s Market access
bankruptcy is primarily attributed to The When one country allows another
cheap Chinese imports. This led to renewable country’s entity to do business in
the imposition of tariffs on Chinese its own territory on equal terms, it
solar PV and also the creation of a energy is called market access. Reserving
trade enforcement unit to protect programmes the entire or certain percentage of
domestic manufacturers. market to domestic entities (or to
supported by the entities from favoured nations)
So, with faster growth of renewables,
there will be more money at stake governments are amounts to restricting market access
or putting trade barriers. In the case
and more disputes to deal with. not going to go of renewables, the market access
Providing support to the domestic away anytime soon, issue has become pertinent for two
renewable energy industry is not an reasons: a) fast growing deployment;
isolated case. Around the world, many but the outcome of b) unilateral flow of products and
countries have been doing the same. international disputes services from technologically superior
countries.
Some examples are enumerated
below: could significantly
From the national perspective,
In 2009, the Canadian province of affect the tools they the domestic content condition is
Ontario introduced a rule that its have at their disposal justified on many counts. The Indian
generous feed-in tariff for solar PV solar industry is lacking in terms of
projects of more than 10kW would for promoting their a complete value chain and almost
only be available for developers using the entire demand for solar cells is
modules with at least 50 per cent of
countries’ renewable met through imports. Lack of level-
their cost based on local goods and energy sectors playing field with competing nations

Steering a course
The renewable energy programmes
supported by governments are not
going to go away anytime soon, but
the outcome of these international
disputes could significantly affect the
tools they have at their disposal for
promoting their countries’ renewable
energy sectors. However, in a country
like India, which is strategically placed
with both demand and supply of
renewable energy co-existing, all
we need is to concentrate on the
big picture. And one of the most
significant efforts required would be
to design an innovative policy that
can support the industry directly
and substantially to reduce input
and other transaction costs and
encourage the development of
on account of their subsidies and measure for creating an indigenous knowledge, skills and entrepreneurial
other incentives and also several manufacturing eco-system cannot be resources while having an eye on the
domestic disadvantages such as justified. global market instead of just catering
high cost of finance and power, to the domestic market. To make
infrastructure bottlenecks, etc. have The JNNSM is in fact seen as
this possible, we should first get our
compounded the problem of solar an opportunity to develop the
priorities right, not only in terms of
cell manufacturing in the country. domestic manufacturing base for
our targets for attaining the necessary
Besides, inadequate investments the entire solar cell value chain.
deployment levels, but there also
in this vital sector, as there is no The domestic content condition
needs to be a balance between
protection from imports in the provides equal opportunities to
support towards deployment and
form of import duties has rendered both national and international
manufacturing. It is logical for the
the country unable to match the developers for investment in setting
country to support the development
incentives offered - both direct and up manufacturing units. Therefore,
of domestic manufacturing capacity
indirect, by other countries. As a it is aimed at acquisition, gaining
in solar technology hand in hand with
result, the solar cell technology, its expertise, diffusion and indigenisation
market creation.
huge potential notwithstanding, has and absorption of knowledge,
become more or less a module- technology and skills by local actors There is another dimension to
assembling sector with little value in India. the whole issue that demands
addition at the domestic level. attention. The duty structure of
Achieving indigenous manufacturing
the components that go into the
in solar in particular and renewable
manufacturing of solar cells and
India’s likely position energy in general is of strategic
modules is higher than the final
India is not a signatory to the importance for our country. Lessons
product, i.e., solar cell and modules.
Government Procurement from JNNSM Phase-I suggest that
It makes solar PV manufacturing
Agreement (GPA) of WTO. India’s conditionalities for deployment
unattractive in India. Such a situation
WTO member status alone does not systems and devices (read domestic
needs to be reversed.
prevent incentives being provided to content) alone cannot boost
government procurement. JNNSM manufacturing in India. There are In any case, India cannot afford to risk
is a government policy-driven lessons within the country itself. the fallout of the US trade complaint
programme and contains very high The electronics industry is a case in over its national solar programme. So it
levels of government subsidies. point where initial efforts to create an would be in the nation’s best interests
Assuming an additional expenditure infrastructure for manufacturing failed to fight and win the case and retain its
of `3 per kilowatt incurred on and according to some projections domestic content condition.
procuring solar electricity, over electronics import alone could soon
and above the marginal cost of the rival the crude oil import bill. Given The author is Director,
baseline electricity, the government the surge in expectations from the Ministry of New and
is incurring an additional expenditure renewables industry, a situation Renewable Energy
of around `500 crore per year for similar to electronics industry could
The views expressed by the author are
each 1 GW installation. Providing such be witnessed unless there’s proactive
personal
a high level of support without any action on the government’s part.

Reality Check Wind Potential
you consider all of the real-world

constraints,” Keith said. “The real
punch line is if you can’t get much
more than half a watt out, and you
accept that you can’t put them
everywhere, then you may start to
reach a limit that matters.”
(Source: Harvard School of Engineering and
Research contests Applied Sciences)
generation at
large wind farms Statement about ownership and other
particulars about Energy Next required to be
New findings suggest the published under rule 8 of the Registration of
Newspapers (Central) Rule 1956.
potential for wind energy
Form IV
could be a lot less than (See Rule 8)
Place of publication : Hyderabad
previously thought Periodicity of publication : Monthly
Printer’s Name : R. Ramprasad
Whether Citizen of India? : Yes
Address : No. 407, 5th Floor, Pavani Plaza,
L
arge-scale wind farms have contribute on the scale of terawatts in Khairatabad Hyderabad – 500 004
played a crucial role in scaling the next half-century or less,” Keith said. Publisher’s Name : R. Ramprasad
up wind energy potential across Whether Citizen of India? : Yes
the globe. However, a new study by a Co-author Amanda S. Adams, assistant
professor of geography and Earth Address : No. 407, 5th Floor, Pavani Plaza,
Harvard physicist contests the idea that Khairatabad Hyderabad – 500 004
the generating capacity of wind farms sciences at the University of North
Carolina at Charlotte said, “One of the Editor’s Name :Debashish Majumdar
is directly proportionate to its size.
inherent challenges of wind energy is Whether Citizen of India? : Yes
Harvard applied physicist David Keith’s that as soon as you start to develop Address : 1085, Vasant Kunj,
research shows that the generating wind farms and harvest the resource, New Delhi – 110 070
capacity of wind power installations you change the resource, making it Names and addresses of individuals who own
which are larger than 100 square difficult to assess what’s really available.” the magazine and partners or shareholders
kilometres may peak at between holding more than one per cent of the total
capital:
0.5 and 1 watt per square meter. He said if the entire Earth is covered
C. Sasidhar
However, previous estimates had put with wind farms, “the system could
that figure at between 2 and 7 watts potentially generate enormous Plot No 550/A, Road No. 92, Jubilee Hills
Phase – III,
per square meter as they ignored the amounts of power, well in excess Hyderabad - 500 034
turbines’ slowing effect on the wind. of 100 terawatts, but at that point
Chinta Sridhar
The latest research conducted on my guess, based on our climate
the basis of mesoscale atmospheric modelling, is that the effect of that H.No.9-29-24/A, Balaji Nagar, Siripuram,
Visakhapatnam- 530 003
modelling and published in the on global winds, and therefore on
Neeraj Daftuar
journal Environmental Research climate, would be severe – perhaps
Letters says that each wind turbine bigger than the impact of doubling A 53 / 1, DDA SFS Flats
Saket, New Delhi - 110 017
creates a “wind shadow” behind it CO2”, adding: “Our findings don’t
where the air slows down by drag on mean that we shouldn’t pursue wind Anupam Daftuar
the turbine’s blades. power, but these geophysical limits A 53 / 1, DDA SFS Flats
may be meaningful if we really want Saket, New Delhi - 110 017
An ideal wind farm accommodates to scale wind power up to supply a I, R. Ramprasad hereby declare that the
as many turbines as possible while third, let’s say, of our primary energy.” particulars given above are true to the best
maintaining the space among them, of my knowledge and belief.
enough to reduce the impact of these “It’s clear the theoretical upper limit Date: 28 February 2013
shadows. As the farms grow larger, the to wind power is huge, if you don’t
(Sd/-)
blades start interacting. “If wind power’s care about the impact of covering R. Ramprasad
going to make a contribution to global the world with wind turbines. What’s Publisher
energy requirements that’s serious, 10 or not clear is that what is the practical
20 per cent or more, then it really has to limit to wind power would be if

Green Tracks DMRC
Bombardier coach being

used by DMRC
(Photo: Bombardier)
Aiming quality
service with
less energy
The Delhi Metro Rail Corporation is contributing big time to electricity-saving
efforts in the city by undertaking a number of initiatives. Besides, it has plans of
adopting solar energy in order to minimise dependence on the existing power
supply mechanism. Sayantani De brings you the details

T
here was a time when travelling
in Delhi used to be a nightmarish
experience with irregular,
crowded buses and wayward auto-
rickshaw-wallahs ruling the roads. But
as the millennium dawned, the city
witnessed a drastic development in
its public transport system with the
advent of Metro, a world-class service
for the capital of a country which
is poised to become an economic Rail yard rooftop potential up
superpower. to 2.5 MW
(Photo: ComSolar, GIZ India)
All through its journey in the past 11
years, the Delhi Metro Rail Corporation
(DMRC) has been lauded for many
firsts and brining in innovations in The of the trains are its sustainability and
its day-to-day operations. Not only eco-friendliness of the technologies
that, those seemingly unending traffic regenerative used – the MITRAC propulsion system
snarls are no longer a common sight, with regenerative braking which
on Delhi’s roads and a lot can be
braking creates up to 30 per cent in energy-
attributed to the Metro service. It has process allows savings.
made travel safer for the city’s women
also. However, a much bigger credit DMRC to produce 30- Delhi Metro is also a member of the
NOVA group of Metros, a programme
probably lies in its efforts to reduce 35 per cent of power of international railway benchmarking
energy needs and being environment-
friendly – Delhi Metro is the first that contributes to our that comprises many international
small to medium-sized Metros across
Railway project in the world to be energy-saving initiatives the world and strives to maintain
registered for carbon credits by the
United Nations Framework Convention world-class services. “The main
on Climate Change (UNFCCC). other accelerating trains in the same efficiency measure is installation
service line, therefore saving overall of energy- efficient VRV (variable
Energy-saving initiatives energy consumption during train refrigerant volume) type chillers in
For an energy-intensive sector like the operations. Phase-II, whereas in Phase-I, Split
railways, reducing energy consumption Chillers were installed. The energy
is a huge challenge, considering that “The regenerative braking process efficiency project also involves
all aspects of operation of running of allows DMRC to produce 30-35 per other measures to improve energy
trains, air conditioning of underground cent of power that contributes to efficiency through efficient lighting
stations, lighting of stations, lifts, our energy-saving initiatives as well,” system and more efficient building
escalators, etc. require heavy electric Kumar says, adding that a host of architecture, resulting in maximum
energy usage. “While traction for train careful measures taken by the mass utilisation of daylight and reduction
operations accounts for 55 per cent rapid transit connoisseur has been in cooling requirement. The project
of our total energy consumption, the effective in bringing energy efficiency also contributes to sustainable
rest is required for other aspects such in its day-to-day operations. The train development for the well-being of
as air conditioning and ventilation coaches, supplied by Bombardier, also the country in terms of environment,
in stations,” Satish Kumar, Director play an important role in reducing socio-economic benefits. Since the
(Electrical), DMRC tells Energy Next. energy requirements of DMRC – the project is more energy-efficient as
lightweight coaches made of stainless compared to Phase-I of Delhi Metro,
It was an innovative energy recovery steel require far less power to operate. it consumes less electricity and thus
mechanism that generated energy While other coaches consume 80 units results in reduction of carbon dioxide
even as the trains prepare to halt at the of electricity, DMRC coaches require emissions,” the organisation states.
stations. Termed as the regenerative around 50 units of power to run.
braking process for which DMRC “The DMRC saved 1, 12,500 megawatt
earned carbon credits, as trains apply The modern, high-capacity MOVIA hours of power generation by
brakes, traction motors install ed vehicles by Bombardier are designed restricting and reusing power on its
on these trains act as generators to to accommodate 1,480 passengers trains through regenerative braking,
produce electrical energy that is fed per four-car train set which can be thus saving the emission of 90,004
into the Over Head Electricity (OHE) increased to 2,220 passengers per tonnes of carbon dioxide into the
lines. This regenerated electrical six-car set and 2,960 passengers per atmosphere from 2004 to 2007. It is
energy supplied to the OHE is used by eight-car set. Some of the key features estimated that in 2008, 39,000 tonnes

Green Tracks DMRC
Moreover, there are advantages for

DMRC of going solar. “Diversification
of energy supply and revenue sources,
attractive investment, long-term
hedging of electricity supply costs and
environmental benefits” are some of
them, according to Herzog.
Financially, the most attractive option
for DMRC would be of feeding the
generated electricity to the grid; leasing
of roof space, advertisement and
e-vehicle charging were also identified
as potential models, according to
ComSolar, which adds that another
Solar panels at the terrace of DMRC lucrative option for DMRC can
office in Connaught Place, New Delhi. evolve under the Renewable Energy
(Photo: DMRC) Certificates mechanism (REC), a
market-based instrument to promote
harness the sun power. After detailed power from renewable energy sources.
of CO2 were prevented from being
emitted and this figure will increase study of the sites such as Indraprastha
Building it green
to over 100,000 tonnes per year once station, Yamuna Bank yard and
Green building is another area where
Phase-II of the Metro project is fully Karkardooma station, it was found
DMRC has been focusing in recent
operational. DMRC can claim 400,000 that the stations and yards of DMRC
years. The main office of the Delhi
carbon credits for a 10-year crediting offer huge open spaces which can
Metro is an 11-storey tall edifice with a
period beginning December 2007 be utilised for solar PV systems with
number of relevant technologies and
when the project was registered by a capacity between 90 to 2.500 kWp,
sufficient exposure to natural light.
the UNFCCC,” a statement by the thereby generating 400 to 10.000 kWh
All the lighting fittings at the Metro
of electricity daily. The total potential
organisation says. Bhawan are intelligent fixtures with
for generation capacity of PV systems
built-in sensors that automatically
Various energy-saving measures at on all existing and planned DMRC sites
gauge the amount of sunlight available
the Metro stations too are crucial (Phase-I, II and III completed) would
in the room and adjusts the brightness
in implementing energy efficiency be around 52 MW, equaling annual
on a scale of 3 to 100. Besides, they
measures. Sensor-powered potential emissions savings of around
are sensitive to the occupants in the
escalators, chiller systems to maintain 60,000 ton CO2 equivalent.
room as well and automatically switch
a comfortable temperature at
“GIZ is supporting pilot PV rooftop off when the room is empty. The
underground station and constant
projects as a facilitator. It conducted orientation of the building towards
monitoring of facilities are some of
a feasibility study, prepares the initial north and south helps cut down
them. In a pilot project at Naraina
detailed project report, including temperature, while keeping glazed
Metro station, Delhi Metro aims to
suitable business scenarios for DMRC windows under shades further cools
reduce energy consumption by 15-20
and will support execution of the first the interiors, and installation of extra
per cent by using a thermal energy
three pilot projects with an estimated sunshades of lightweight stainless steel
storage system that will chill water
potential of 2.5 MWp. Based on the creates a protective girth around the
overnight, when power rates are low,
results of the pilot projects, DMRC will north-south perimeter of the complex.
and use it during the day to cool the
decide on its further solar strategy – The DMRC building also has rainwater
underground station.
one option would be to equip all new harvesting system.
Adopting solar energy DMRC overground stations with PV
systems,” Timon Herzog, Technical The magnificent HUDA City Centre
As a means to minimise its
Expert, ComSolar Project, GIZ India, station in Gurgaon is the first
dependence on the existing power
tells Energy Next. “…generating all the green station of the Delhi Metro
supply mechanism, DMRC plans to
adopt solar energy. While the Metro electricity needed for operation of Rail Corporation (DMRC), with
Bhawan – the main office building of the Metro system is not intended. The Green Rating for Integrated Habitat
the organisation at the heart of New electricity generated on the roofs of Assessment (GRIHA) certification.
Delhi houses a 2kw solar plant on its the various DMRC sites can contribute The design of the building helps in
terrace, plans are on to install solar to cover the load of the stations but exploiting climatic factors like wind
panels in Metro stations apart from as well be sold to the grid. The final loads, use of solar energy and air
those already installed at the parking solution will depend on the results of movement patterns besides ample
areas. In collaboration with GIZ, it the techno-commercial optimisation,” natural light that minimises the use of
is exploring more opportunities to he adds. electricity for lighting purposes.

Wind of Change Repowering
Breathing new life
into old wind

turbines
With most of the high wind sites currently occupied by low capacity turbines,
India has a good potential for repowering with higher capacity turbines to
increase yield; however, to make this possible, favourable policy guidelines are
needed, writes Upendra Singh
W
ind energy, considered as an Plan on Climate Change (NAPCC). technology. Repowering has been in
efficient and reliable source of With time, several new and more practice for almost two decades, and
clean power, has completed efficient technologies arrived on since 2003, the market for repowering
more than two decades of its existence the scene, giving rise to a lucrative got boosted primarily in Denmark,
in India, and is ready to go to the next opportunity called ‘repowering’ – of Germany, the Netherlands, the UK and
level. During these years, the wind old wind turbines for better output. the US. However, the industry has not
power industry in the country has The term ‘repowering’ in wind energy been able to gain as much steam as it
undergone many changes – from being primarily refers to the measures taken should have by now.
a clean alternative energy to becoming to increase the productivity of the older
a potential player in the efforts towards machines. The purpose is to efficiently Benefits
realising the goal of having 15 per cent enhance the operations of existing wind Repowering not only steps up the
renewables in the country’s total energy farms, built more than a decade ago, efficiency of an older wind farm, but
mix by 2020, under the National Action by adopting modern and improved presents with a host of other benefits

Wind of Change Repowering
also, which makes it even more Disposal of old turbines is a major issue
desirable. Besides replacement of
older and outdated wind turbines with which might have an impact on the
high-performance modern turbines, environment. This can, however, be
repowering also leads to streamlining
wind farm locations and addressing
turned into an advantage by selling the
the land requirement issues for newer old turbines to countries where the
machines to an extent. wind sector is in initial stages
Explaining the benefits of the concept of
repowering, DV Giri, Secretary General prospects of repowering in India, Alok Experts feel that other than technical
of Indian Wind Turbine Manufacturers Srivastava, Joint Secretary, MNRE, says, issues, one of the major roadblocks
Association (IWTMA), says, “Land is a “Repowering is a good way to enhance for the repowering industry in India
finite source and we need to maximise the energy output of older turbines by is the lack of incentives and policy
generation. Repowering is a must to replacing them with new and modern guidelines. As a result, the industry has
replace not so efficient turbines which machines. Many wind farms, especially approached the MNRE for a policy on
have served beyond 10 to 15 years with in Southern Indian states, present the repowering.
efficient and larger turbines with higher opportunity for repowering. However,
hub heights and larger rotor diameter.” there are a number of issues that need One of the states with ample
to be addressed. Some are technological opportunity for repowering is Tamil
With good operating conditions and Nadu, the leader in wind power
maintenance, the second-hand plant issues while some have financial
implications.” installations in the country. It has
could work for more than 10 years. several sites with sub-megawatt
At the same time, there would be no turbines that were installed 10-15
Challenges and the way ahead
need to set up new evacuation lines years ago with low hub heights. DV
Despite presenting a profitable
for repowered plants as in case of new Giri suggests that the state could be
opportunity for worn-out windmills, in
machines installed at a new site. an ideal place to initiate a pilot project,
India, repowering is faced with several
The replacement of old wind turbines challenges, one of the major being the with the land mostly privately held.
with modern turbines leads to reluctance on the part of the windmill “Tamil Nadu will be the best state to
improvement in the capacity utilisation owners who had erected the machines initiate a pilot project for repowering,
factor (CUF) and reduction in the to garner tax benefits. Other issues like say for 300 to 500 MW as cooperative
operation and maintenance (O&M) multiple owners of a single site, the wind farming with multiple
costs. existing power purchase agreements stakeholders which would include the
(PPAs), reluctance in investing more land owners who are giving up their
Repowering in India money for advanced machines, and land and their old turbines,” he says.
The development of wind energy in various legal and technical problems
India began way back in 1986, but it have acted as barriers. “Repowering has It’s high time for the country to get
was only miniscule before the sector its own challenge in terms of willingness its energy policy right with the twin
picked up in the 1990s. Today, India is of the existing owner to give up the land, challenges of energy security and
among the leading nations of the world evacuation facility to accommodate the climate change looming large. The
in wind turbine installations. As far as larger turbines and willingness of the Indian industry could take heart from
repowering is concerned, India provides DISCOMs to enter into a new PPA with the fact that MNRE is in the process
huge opportunity, as many of the current feed-in-tariff,” explains Giri. of developing an exclusively policy
country’s best wind sites are occupied for the repowering business. “The
by low-capacity wind turbines that were Disposal of old turbines is another major power purchase agreements (PPAs)
installed more than a decade ago. The issue which might have an impact on that were signed for a span of 20 years
World Institute of Sustainable Energy the environment. This can, however, be or more have to be given a closure
(WISE), in its report for the Ministry of turned into an advantage by selling the before going for repowering. Keeping
New and Renewable Energy (MNRE), old turbines to countries where the wind all these issues in mind, the MNRE
estimated India’s repowering potential sector is in initial stages or where low is in the process of coming out with
to be around 2760 MW, which means capacity turbines could come in handy guidelines on repowering,” says Alok
old wind turbines worth 1380 MW could for start-up wind power projects at low Srivastava.
be repowered to achieve 2760 MW costs. Giri says India could consider
capacity. exporting them to SAARC, Latin America Hopefully, the proposed policy on
and South African countries that are on repowering would bring about a
There have been a few instances of start-up programmes of Class I and II significant change in the Indian wind
repowering in India, but the idea is still turbines falling between the 250 KW to energy landscape by refurbishing its
in its infancy. Commenting over the 500 KW range. older wind farms.

Energy & Development DSDS 2013
RE, the
It witnessed a number of
deliberations and in the
process, myriad issues were
raised on the consequences of
driving
climate change. Conclusively
though, what emerged from
these talks was that clean and
renewable energy is becoming
force
an inevitable part of our lives.
Sapna Gopal reports on the
three-day summit held in New
Delhi recently
W
hen Nobel Laureate Carlo The theme for next year’s DSDS meet in
Rubbia, Scientific Director,
Institute for Advanced Feb 2014 will be “Attaining energy, water
Sustainability Studies, Germany, said
at the DSDS that “just like nuclear
and food security for all”
energy, renewable energy is also
forever”, he was probably voicing
what the world has largely come to every single aspect of our lives and Obama has come up with a clean
believe and accept. makes good business sense, why energy agenda. But how much of it
can’t businesses take it up?” translates into action, remains to be
Prior to the event, at a media seen, the experts Dr Jonathon Porritt
colloquium, addressing a group Some of the other issues raised were and Dr R K Pachauri added. While
of journalists, Dr Jonathon Porritt, the conflict over resources, how we Porritt stated that some economies
Founder Director & Trustee, Forum can garner electricity in an economy were entirely dependent on diesel
for the Future said, “What we need is which is coal based and how coal fuel, Pachauri added that doing away
more value from less inputs. Also, we mining is now a huge issue. Global with diesel subsidies could be a
must use resources more efficiently. challenges in the energy sector also possible solution to the problem.
The demand for food is growing and came up for discussion. While North
the challenge is to meet that in the China has now run out of water Stressing that knowledge and
times to come. Since RE touches for coal mines, in the US, President information should be the driving

Energy & Development DSDS 2013
force for action, Pachauri said that

the World Bank is now focusing on RE
and energy efficiency. For instance,
Philipines has more or less become
energy secure, since it has become
a RE resource. Biomass is producing
power from forest and agriculture
waste.
While the duo agreed that pricing is
important, the mindsets needed to
be changed as well. “Coal is the most
problematic fossil fuel. Japan is four
to five time more energy efficient
than China. Thus, China needs to
think about energy consumption.
At a time of recession, one needs
to innovate, about RE and its From Left to Right: TERI Director-General Dr RK Pachauri, Indian Minister of State for Environment and
Forests Jayanthi Natarajan, Guyana’s President Donald Ramotar, Prime Minister of India Dr Manmohan
applications.” Singh, President of Kiribati Anote Tong and Indian Minister for New and Renewable Energy Dr Farooq
Abdullah, and Chairman Governing Counsel TERI Arcot Ramachandran, at the launch of the 13th DSDS,
Dr Pachauri informed that TERI had organised by TERI at the Taj Palace Hotel in New Delhi
initiated a programme with China
which will focus on low carbon There is a huge gap between demand
development and GDP growth. and supply. We need to increase
Stressing on sustainability power supply by 3 to 4 times and
At the 10th World CEO Sustainability heighten electricity generation. Apart
Summit, 2013, on the theme, from R&D, purchasing and service
“Resource revolution: a global recycling, we need to look at the
imperative and how businesses can entire value chain.”
shape it”, Arun Maira, a member of He also spoke on Ecovision, an
the Planning Commission, spoke initiative of the company, which
on how businesses should be about Nobel Laureate Carlo Rubbia at the meet focuses on people, planet and
winning the trust of people. profits. Sahay added that in India,
stations, we intend to have another 50 there is work on solar, solar and
In his inaugural address, Minister for stations in a year, so we know the sun/
New and Renewable Energy, Dr Farooq LED and in the case of Tamil Nadu,
wind intensity, he added. street lighting. “We are also working
Abdullah said that as of now, India’s
biggest challenge is energy. “Our own On the issues that the RE sector faced, on lighting controls such as dim
energy is possible only if we look at RE. with regards to finance, he admitted lights and occupancy sensors. He
Fossils have created problems for all of that there have been problems with stressed on the need for energy
us. Thus, we need sustainable energy. “ banking, since they are not sure if efficiency and clean solutions.”
energy is workable. Rakesh Bhargava of Shree Cement
Stating that man has created tragedy
for this Earth, he spoke on the need for Citing the instance of Seychelles, he spoke on energy efficiency in
energy for all. “First it was 8 billion, now said, “They have realized that they need power plants and said that fly ash
it is 48 Billion. So, the expenditure has energy which they can call their own.” generated from power plants is
gone up on an annual and yearly basis.” used to produce cement. Prosanto
A lot remains to be done and it is Pal of TERI revealed how industrial
The JNNSM was launched in 2010 and on your (the people’s) shoulders, he energy efficient solutions are
by the end of 2013, we are likely to mentioned. On the occasion, two offered by TERI. “We need to tap
generate 1,300 MW of solar energy. He reports were released, one on the the energy saving potential. It is 5 to
informed that through JNNSM, 4,000 electric vehicles in India and the other 15 per cent in large scale industries
to 10,000 MW of power had been on power for the planet, sustainability and 20 to 50 per cent in MSM
generated. He assured that prices will development in the power sector. enterprises.”
come down further. “We need to create
a hub for this energy,” he stressed. Energy efficiency TERI, he added, has detailed energy
At one of the sessions on “The Why audits and energy assessment of
The challenge for us now is how do we and How of Mainstreaming Energy the industrial sectors. “We have also
store energy for a longer time? As of Sustainability”, Nirupam Sahay, undertaken international ventures
now, of the 26,000 MW of power, over Lighting, Philips India, said, “India is such as those in Africa, Indonesia,
18,000 MW is from wind. We have 60 the sixth largest consumer of energy. Malaysia, Singapore and Maldives.”

RE and the challenges The Summit saw representation from
Notable among the discussions was
the one thrown up by Nobel Laureate Bhutan, Guyana, Pakistan, Congo,
Carlo Rubbia, Scientific Director, Nigeria, France, Switzerland, Sweden,
Institute for Advanced Sustainability Maldives, Norway, Poland, Quebec, UAE,
Studies, Germany, who said that
natural gas is a fuel for the future. The Denmark, Phillipines, Canada, Belgium,
RE sector, be it sun, wind or biomass, Kiribati, Seychelles, Indonesia, Japan, Mexico,
it has made remarkable progress, Djibouti, Cape Verde, Ethiopia, Australia, the UK, the
but the question is, will it be able to
bridge the gap? US and India, besides distinguished thought leaders
Elaborating on the challenges of RE, Elaborating on CSP, he added that it is a powered by RE, he added, “We no
he said, “Firstly, the cost problem fundamental step forward. “Solar energy longer can segregate energy and water
needs to be tackled, also, it has to be is abundantly available. Nature offers it issues. They are interlinked.”
reduced. Also, it should be available, as a solution. Around 300 million people
whenever needed. In other words, in India have no power, so solar is a Donald Ramotar, President of Guyana,
energy should be available when it is good asset. Cheapest energy has to be spoke on how inequality has created
needed and not where it is generated. the best energy. People are thinking and poverty in many parts of the world.
now relooking at the solar sector. CSP “What we need is a low carbon
A coherent energy policy is needed, development strategy. We are trying
will be a winner. The only question is,
since it plays an important role. Also, to preserve 99 per cent of our forests.
how long will it take.”
resource efficient growth is necessary. Thus, we will need to develop a model
On the relevance of waste to energy in with Norway. They are paying us for the
“Nuclear energy has an important
a country like India, the Nobel Laureate carbon services that we will provide.”
role to play in the distant future. The
said, “In India, even a small amount of
present state of nuclear energy, 70 per Adding further, he said, “We recognise
electricity will make a huge difference.
cent, is not the solution for the supply our responsibility that we realize to fight
It is a modest amount of electricity, but
of energy. Different nuclear sources climate change. More importantly, we
makes an enormous difference for India.
are the answer to the future. It has a need to go into clean and renewable
Waste to energy is an important solution.
great advantage and is forever.” energy so that it furthers economic
We need to look at things which are
Explaining how hydropower has been development.” In a discussion on
simple, but still make a difference.”
a success and Germany, he said, “It ensuring energy, water and food
Sultan Ahmed Al Jabel, UAE’s envoy
meets 3 per cent of its power needs security, Arvinn Eikeland Gadgil spoke
for energy said, “The close relationship
from this source. However, a large on how mere good governance is
between food, water and energy has
amount is not produced.” not enough, fair governance is also
been undermined.” Jabel, who has also
won the Zayed Prize, added, “Forty per required. “We need to improve the
“Most of the RE is electric in nature,
cent more energy will be needed by policy.”
for instance CSP. In CSP, we are
accumulating energy in the form the planet.” He lamented that there is On the concluding day, Montek
of heat and preserving it. The key a lot of talk, but nothing is being done Singh Ahluwalia, chairperson of the
however, in RE, is storage. Only when in an inclusive manner to address Planning Commission of India, said
we can identify storage, will it help.” the challenges. We are not taking the the government must avoid subsidies
right measures. What we need to do of all kinds. “Many people think
Explaining about the hydrogen fuel is address income related challenges that subsidising renewable energy
cell, he said, it is gigantic, but not a and look at opportunities in rural equipments is good for the economy.
final product. The substitute of oil areas around the world. Informing of They think only the fossil fuel subsidy
is going from a liquid material. The three pilot programmes in UAE, three is bad. They are wrong. If India wants
future for hydrogen fuel cell is bright. water desalination plants that are fully to attain green growth, it has to stop all
subsidies” and ensure businesses pay
their fair share of taxes.”
Prime Minister Manmohan Singh, who inaugurated the meet, said that
the theme of this year’s sustainable Summit, “The Global Challenge Peter Bakker, president of World
of Resource-Efficient Growth and Development”, has a particular Business Council for Sustainable
resonance. “Humanity has traditionally put its faith in advances of Development, a Geneva-based
technology to resolve problems of resource scarcities. However, there organization which encourages
is now a growing realisation that there may be no easy alternatives investment in sustainable business
for some resources, particularly environmental resources. Resource- models, said, “India needs to support
efficiency is, thus, a necessary condition for sustainable development, and promote a popular movement
and a key element of the economic pillar of sustainability.” toward renewable energy as a sensible
and sustainable choice.”

State Initiative Solar Lighting
TN empowers
poor through
green energy
In a first-of-its-kind project in the country, a solar-powered green house
scheme for the benefit of the poor in rural areas is underway in the state.
Energy Next has the details
T
he government of Tamil consisting of a 100Wp solar photovoltaic Conditioning Unit in the system allows
Nadu has launched the (SPV) panel and five 9W CFLs, come at the battery to be charged from grid
country’s largest solar an estimated cost of ` 180 crore that during rainy or cloudy days when solar
rooftop programme under includes financial assistance of ` 42.6 power is not sufficient to fully charge the
the Chief Minister’s Solar Powered crore from the Ministry of New and battery. The intelligent algorithm permits
Green House Scheme (CMSPGHS). Renewable Energy (MNRE). charging from grid only between 10
The target is to power three lakh rural am and 6 pm. This has been done to
houses with solar lighting systems over The CFLs can be kept on for five hours prevent charging during night (which
a period of five years from 2011-12 to a day. The solar home lighting system would leave the battery fully charged
2015-16. Under the scheme, 60,000 has an innovative design with storage when the sun shines in the morning)
houses will be electrified every year. facility for just a day and provision of and has also excluded charging during
The solar home lighting systems, each grid backup. The Smart Hybrid Power morning peak. The reduction in

crore from the Ministry of New and
A solar module installation
(Photo: TEDA)
Renewable Energy (MNRE).
This scheme is a first of its kind in

the country, as the existing street
lights that were so far being powered
by grid supply are now powered by
solar energy in clusters of 10 with the
provision of grid backup. The existing
street lights with 40W tube lights and
filament lamps are replaced with 20W
LED lights. Similar to the home lights,
comprehensive Enterprise Resource
the Smart Power Conditioning Unit
Planning (ERP) system. Manufacturers
in the system allows the battery to be
submit the lots online through their
charged from the grid only between
login, the PDI agency logs in and
10 am to 6 pm during rainy or cloudy
receives the random sample numbers
days when not enough solar power is
of the components to be inspected
available to fully charge the battery.
and then submits the inspection
report. Similarly, installation report is A remote monitoring unit is provided
submitted online by the vendors. in each power plant in order to
autonomy has resulted keep an eye on the performance of
in considerable reduction This enables the third party inspection
in capital investment (TPI) agency to inspect and submit
on additional battery its report online. All reports are
and SPV panel capacity processed automatically by the ERP
required for higher autonomy system for acceptance or rejection.
(usually three-day autonomy TEDA’s district engineers then do
is provided). Since Tamil Nadu super-check inspections of the 5 per
has more than 320 sunny days, no cent random numbers generated by
autonomy is provided. The system ERP. Payment is automatically made
comes with a five-year replacement for each batch of 60 installations.
A battery and an inverter
warranty (20 years for SPV panel) and A state-of-the-art call centre is (Photo: TEDA)
will be maintained by the suppliers being established through CMC for
for five years. Quarterly servicing is receiving complaints and monitoring
mandated. rectification by the suppliers. The the street lights from the office of
vendors selected are Tata Power Tamil Nadu Energy Development
Third-party agencies have been
Solar and Shandong. QSS is the pre- Agency (TEDA) as well as from
appointed for 1 per cent sample pre-
dispatch inspection agency and TUV each district. A daily fault report is
dispatch inspection (PDI) at factories
and SGS are the third party inspection generated and sent to the suppliers
and 100 per cent post-installation
agencies. The proposal for LED- for rectification within two days.
inspection and certification.
based DC SPV home lights instead Any tampering of panel, battery and
The entire project runs on a
of CFL-based AC system is under inverter housing is also monitored
consideration for the coming years. with the help of tamper alarm and
Under this scheme, rooftop SPV SMS. To save energy, one-third of the
modules totalling 20-30 MW would full brightness of every street light is
be installed in five years. dimmed from 10 pm to 5 am.
Tamil Nadu has also launched the The system comes with a five-year
unique scheme of energising existing replacement warranty (20 years for
street lights with solar power in SPV panel) and will be maintained by
clusters through centralised solar the suppliers for five years. Monthly
power plants. One lakh street lights in servicing is mandated.
village panchayats are targeted over
a period of five years – from 2011 to The vendors selected are Tata Power
2016. For the year 2011-12, 20,000 Solar and Sukam. QSS is the pre-
street lights have been remodelled at dispatch inspection agency and
A house with solar home
lights (Photo: TEDA) an estimated cost of ` 50.5 crore that Salzer is the remote monitoring and
includes financial assistance of ` 8.1 third party inspection agency.

Moving Ahead SMWT
Small wind
can make
large strides
Small-scale wind power may not be the first solution that comes to mind when
thinking about rural electrification, but small and medium wind technologies
offer excellent solutions for this purpose. Marcus Wiemann discusses the
mid-term findings of an information campaign in developing countries
S
mall and Medium Wind Turbines (SMWT) offer the
most environmentally friendly and cost-competitive
technology for rural electrification in developing
countries. Yet, they are often left out of the energy
solution options by decision makers and project developers.
Here, we bring up some of the facts about SMWT and its
promising market that cannot be ignored.
The global market for SMWT is estimated to double between

2010 and 2015, especially in developing and emerging
markets, reaching US$634 million.
These technologies already have a track record of success

in rural electrification projects. For instance, in China, the use
of SMWT began in 1980, and by 2010, there were 400,000
systems reported.
The price of small wind ranges between US$0.15-0.35

per kWh over the lifetime of the system, making it, under
favourable conditions, cheaper than small PV, small hydro and
other renewable and non-renewable solutions, such as diesel
or kerosene.
Furthermore, small wind can be easily integrated into hybrid

systems with solar energy or diesel. Such hybrid systems offer
a more sustainable, higher-quality and lower-costs solution
than diesel-only systems.
So why aren’t these technologies used more widely, especially

in developing countries where cost is such a big issue? Despite
the lack of market information on SMWT in these areas, there

There is a widespread lack of
quality standards and certifications
for both the technologies and the
installation process, which would
guarantee the reliability and safety of
the systems and avoid the production
of low-quality products that damage
the image of the technology.
In order to tackle these barriers, the

Alliance launched a year-long Small
Wind Campaign in June 2012.
One of the common elements in the

barriers identified was the lack of
information/awareness on the part
of energy decision makers. Without
proper knowledge and with such a
small amount of small wind systems
installed in developing countries, it
is very difficult for those responsible
to create a suitable legal framework
for fostering SMWT. Therefore, the
first step of the campaign was to pass
on reliable, transparent, relevant and
tailored information about SMWT.
The approach favoured mainly small

groups and personal meetings, and
the content focused on real-life
projects with challenges that the
audience could relate to and apply in
their own communities.
The pillar of the Small Wind

Campaign is the position paper “The
is the general agreement that they are framework covering SMWT). The potential of small and medium wind
only a small percentage of the off- knowledge and the level of experience energy in developing countries”
grid market. with small wind turbine remain rare (available for free download at
amongst practitioners from the public ruralelec.org), which does not just
The answer is blowing in the wind
and the private sector. describe the technology, but also
With this question in mind, at the
beginning of 2012, the Alliance for includes recommendations and
The production of SMWT is highly policy tools. The challenge of the
Rural Electrification (ARE) asked its concentrated in developed countries.
members to identify the barriers they initiative was to create opportunities
More than a third of companies for contact in a market that remains
have faced while doing business manufacturing wind turbines are
in developing countries. The main an extremely fragmented sector.
located in the USA and the United
conclusions are as follows: Kingdom. Six months into the project,
activities included online webinar
SMWT remains relatively unknown Determining a proper setting sessions, a side event during the 1st
to decision makers in developing and location for the wind systems International Off-grid Renewable
countries. Through regulation, is essential to maximise the energy Energy Conference and Exhibition
governments are directly responsible production, so an exhaustive on-site (IOREC), held in Ghana, visit by a
for the growth of the market and wind resource assessment is key to the business delegation to Ivory Cost
the performance and safety of project’s formulation. Unfortunately, and several virtual and physical
the systems, but they are not fully collecting this data is often too workshops throughout the
aware of the potential of wind (as expensive and the study’s duration developing world.
demonstrated by the very limited is simply too long for developing
number of countries with a well- countries to invest, especially in such The initial contact has been made,
established policy and regulatory small-scale projects. and the basics about SMWT delivered

Moving Ahead SMWT
One of the
common
elements in
the barriers
identified was
the lack of information/
awareness on the part
of energy decision
makers. Therefore, the
first step of the campaign
was to pass on reliable,
transparent, relevant
and tailored information
about SMWT
to an estimated 100 stakeholders

from developing countries.
For the Alliance and its members, it price of fossil fuels, the increasing Development Bank. A virtual business
was an opportunity to assess first- electricity needs in off-grid areas delegation covering Asia and the
hand the real situation of SMWT in and even the increasing international Pacific, and several webinars are
these largely unknown markets. financing for renewable energies, already in the works. And, since
environment and climate change as the energy storage sector is facing
Although the ultimate objective well as energy access. similar barriers in developing markets,
of the campaign was the creation the Alliance is already planning the
of partnerships and business With the Alliance’s Small Wind launch of the Battery Campaign in
opportunities, from very early on, it Campaign, the foot is in the door – June 2013, in order to ease the path
was clear that a step backwards was so how to move forward and what of a technology that ensures the
needed in order to fill the basic gaps challenge to approach next? provision of reliable electricity service.
in information.
Balthasar Klimbie, the Director of During its first six months, the Small
Aspects such as how to evaluate Dutch Small Wind Turbines, and Wind Campaign has walked a few
whether the technology is suitable one of the participating members, steps towards reaching its very
for a specific area, how to maintain suggests, “In my opinion, this first step ambitious goal, and although its
it in the long term, how to choose was quite good for raising awareness. impact may seem like a drop of water
the most suitable product, and most Next we should try to work on in the ocean (especially compared
importantly, how to make realistic training and capacity building. Only to the 1.3 billion people without
expectations, became the core of the through passing on knowledge to the electricity today), if the enthusiasm
presentations during the beginning local communities can we ensure the and belief of the people involved
of the campaign. In the next six sustainability of the systems. We need shows anything, it is that we are on
months, the Alliance will build on this to make sure that decision makers the right track.
first stage to include other essential know how to deal with this issue.
elements to its campaign. There is a long way to go.” The author is Secretary
General of the Alliance for
A long way to go Taking into consideration the
Rural Electrification (ARE),
The good news is that decision conclusions and information needs
an international business
makers in developing countries have detected during the first part of
association focusing on the promotion
shown interest and curiosity about the campaign, new efforts will also
and the development of off-grid
renewable energies in general and address the financial side of projects.
renewable energy solutions for rural
wind in particular. Renewables seem For some of the next online and
electrification in developing countries.
to tick all the boxes of their particular in-person meetings, the Alliance
energy needs: the decreasing will partner with international The views expressed by the author are
renewables’ costs and the rising organisations such as the Asian personal

Global Voice Milo Sjardin
‘Re will gradually

need fewer
subsidies’
A recent report revealed that as far
as clean energy was concerned,
the US, Italy, Spain and India were
among the biggest decliners while
Japan and South Africa led the
charge of “new markets”. This has
been attributed mainly to regulatory
uncertainty and policy changes in
these countries. Milo Sjardin, Head
of Asia Pacific at Bloomberg New
Energy Finance, speaks to
Sapna Gopal on the trends that will
influence the clean energy sphere
Q: Clean energy investment apparently declined
by 11 per cent last year. What does this mean for
other countries, more so India?
A: Investments in clean energy declined globally
for the first time since we started tracking the
market in 2004. This was primarily due to political
uncertainty and subsidy declines across Europe
and North America with 20 per cent and 27 per
cent declines respectively. Asia, on the other
hand, posted another year of strong growth with
investments at $111 billion in 2012, up by 13 per
cent from 2011 levels. China and Japan led the
pack as their solar sectors boomed on the back
of attractive subsidies. India posted the highest
growth figure in 2011, but almost fell by half in 2012
to $6.9 billion due to the expiry of key subsidies.
Q: Figures reveal that unlike 2011, global
investment in clean energy has reduced
considerably. Why do you feel this has
happened? Are things likely to improve in the
coming year?

In 2012, the total amount invested in clean

energy was a record $67.7 billion outlay by
China, up by 20 per cent from 2011, due to
a surge in its solar sector
A: This year is likely to see very

similar investment levels as in 2012.
Since the cost of maintaining high
subsidies for renewables increases
and the price of renewables gradually
declines, there will be more pressure
to withdraw subsidies from the
sector. This will therefore result in
further subsidy cuts this year, at least
across Europe. However, this decline
will largely be offset by continued
growth in China, Japan as well as
many smaller countries that will see
increased renewable deployment.
The number of countries in which
renewables are deployed on a large
scale has doubled over the past few
years.
Q: How has policy impacted the

growth of clean energy in countries
such as US, Spain and India?
A: Policy is still the key driver of

renewable deployment and any
change therefore brings about a be attributed to this rise? What will attractive subsidy and being one of
very different investment climate. it mean for the clean energy sector the easiest and quickest generation
The US, Germany, Italy, the UK, in these countries? technologies, it received most of the
India, France and Spain all reduced development money. South Africa
their subsidies for renewables, A: China has been a great
attracted large investments too, with
resulting in a decline from 68 per proponent of renewable energy
its solar and wind tenders.
cent to 51 per cent in investments since 2005 when it first started
year-on-year. Although the near- to incentivise wind projects. In Q: Why have Mergers and
term effect is large, renewables will 2012, the biggest change came Acquisitions suffered such a
gradually require fewer subsidies from solar as prices had dropped setback? What can be done to
in order to compete with fossil precipitously, the government reverse the trend?
fuels as their costs are coming pushed for more development and
down rapidly. In particular, solar the large equipment oversupply A: M&A activity saw a 31 per cent
costs dropped by 60 per cent over caused manufacturers to invest in drop to $51 billion in 2012. The
the last two years. In Australia, downstream operations. Japan’s decline was large and caused entirely
renewables are competitive with rise was also driven by solar, but for by a drop-off in corporate mergers
fossil fuel generators now that it has different reasons. After the Fukushima and acquisitions. This is reflective
implemented a carbon price. disaster and the shutdown of its of broader trends in the global
nuclear plants, it was faced with a corporate M&A space. With respect
Q: China, Japan and South African power shortage and put in place to renewables, a few conditions
have posted an impressive growth. very attractive incentives to boost are largely to blame. Both the solar
Any particular reasons which can renewables. Solar was given a very and wind markets are struggling

In contrast, the market for
acquisitions of renewable power
projects remained in quite good
health. With more operating
renewable assets to choose from and
large investors looking for low-risk
assets with a solid revenue profile,
this market will likely remain healthy
and could possibly increase this year.
Q: While sectors such as solar,

wind, biomass, energy efficiency
and geothermal energy have
witnessed a growth but not as
much as earlier, the small hydro
sector has done well. Any reason
why? Is this true for India as well?
A: Small hydro is a technology which
has not seen significant growth, but
investments have consistently been
around $4 to 7 billion during the past
eight years. Last year, the activity was
up by around 17 per cent, but this
was mostly because of European
projects. In Asia, investments have
broadly stayed the same. The sector
does provide good opportunities for
growth, however; it is established,
predictable and there is sufficient
resource potential left. Especially in
countries such as China, India and
Southeast Asia, there will be more
and more projects being developed
though there will not be a significant
acceleration in activity.
Q: What are the key factors which

with consistent oversupply that is you feel could help in bettering
unlikely to be resolved within this the prevailing clean energy sector
year. Subsidies in traditional markets across the globe?
such as Europe and North America
are likely to be scaled back further A: A number of factors could greatly
and we have not yet seen significant benefit the industry as a whole. First,
production capacity reductions the realization that renewables have
across the globe. M&A activity is become increasingly competitive
therefore focused on technology or with more established technologies
market access rather than achieving and will become even more so over
scale as evidenced by the few deals time, should be more widespread.
that did take place in 2012. Renewables will have to be judged
on their own merit rather than on the
Whether the M&A market will subsidies they bring, as these will be
pick up again this year remains its renewable industries, in particular gradually phased out.
to be seen, but we will certainly solar. We are therefore likely to
see further acquisitions to obtain see further activity in that country Secondly, renewables are already
access to specific technologies, throughout the course of 2013, spreading to almost every country
new geographies, or to expand especially now that the government in the world, but it is imperative to
downstream in the case of is ensuring continued demand for ensure significant local company
manufacturers. For example, China wind and growing demand for solar involvement. This will come with
is still looking to further consolidate projects. experience, but will ensure that

finance costs come down and competing business priorities, and

development expertise goes up. the landlord-tenant problem. There
is significant scope for increasing
Research by Third, policymakers will need to energy efficiency in Asia across
deal with a fundamental shift from
Bloomberg New a centralized to a decentralized
all segments of the economy,
particularly in a country that has high
Energy Finance electricity system. This will require energy intensity such as India.
opening up the power sector to
reveals that overall small players – from independent As assets get replaced, there will
global investment power producers down to the level automatically be an improvement
of individual households –as well as in efficiency. But this is not enough.
in 2012 was $268.7 ensuring hassle-free access to the Policy is required to provide a push
billion, down from grid without incumbents putting up to the sector. The most effective way
barriers to protect their traditional has generally been through traditional
a revised figure of business. command-and-control measures
$302.3 billion in Q: How has energy efficiency fared
such as efficiency standards
for compliances and industrial
2011. However, the overall? Is there scope for this
equipment. However, many different
sector in a country like India?
2012 investment policies exist including voluntary
A: Energy efficiency remains one agreements, efficiency targets and
total was the of the lowest cost opportunities to certificate trading. An added benefit
second highest ever, reduce energy consumption and of focusing on energy efficiency
carbon emissions. It should also be policies is that lower energy intensity
and five times that one of the easiest to achieve, but should ultimately put the country in
of 2004 its development is generally held a good position with regard to global
back due to a lack of awareness, economic competitiveness.

Why IREDA?
Interest rate as low as 11.5%
Maximum repayment period up to 10 years
Financing up to 75% of the project cost
Moratorium up to 12 months from the date
of commissioning
Come to IREDA with your concept & project
and get it nanced for a sunny future.
*Conditions apply
Indian Renewable Energy Development Agency Limited

(A Government of India Enterprise)
Corporate Ofce: 3rd Floor, August Kranti Bhawan, Bhikaiji Cama Place, New Delhi - 110066
Telephone: +91 11 26717400-12 Fax: +91 11 26717416
E-mail: cmd@ireda.in Website: www.ireda.gov.in
IREDA_AD.indd 1 10/3/2012 8:32:18 PM

IREDA Corner Green Quotient
I Gauging
REDA conducted an internal
carbon
assessment in 2012 to determine
its own greenhouse gas (GHG)
emissions. Globally, the most widely
used standard for carbon accounting
by organisations was also employed by
footprint
the organisation. This mechanism is the
Greenhouse Gas Protocol, developed
by the World Business Council for
Sustainable Development (WBCSD).
The GHG Protocol is a building block

which has been used as a reference
to create many other standards and
calculators such as Carbon Trust
Standard, Carbon Disclosure Project, The Indian Renewable
ISO 14064 Standards, etc.
Energy Development
As business operations can vary in their Agency (IREDA) plays
legal and organisational structures
the GHG Protocol uses two distinct
a key role in funding
approaches to estimate facility-level GHG renewable energy
emissions. They are: the equity share
approach and the control approach.
projects throughout
Under the equity share approach, a India. As a member of
company accounts for GHG emissions the global community
from operations according to its share
of equity in the operations. In case of the with a mission to
control approach, a company accounts for encourage people to
100 per cent of the GHG emissions from
operations over which it has control. embrace an eco-friendly
IREDA decided to use the latter concept items, etc., were lifestyle, IREDA set out
and earmarked its Corporate Office and consulted to create to lead by example.
Registered Office, both located in New a comprehensive
Delhi, and branch offices (2) and camp data picture. Extensive
Energy Next reports
offices (2). use of IT was made to consuming glass, harvesting daylight,
capture data as available decked insulation of roof for reducing
As emissions result from a variety of in the intranet. Information HVAC load, the use of LED, T-5 and CFL
activities, IREDA took the sources pertaining to daily office lamps, etc.
mentioned under all the three Scopes commuting was obtained by way
of GHG Protocol – Scope 1, 2 and 3so of a computer application hosted Moving forward, IREDA aims to reduce
as to measure its footprint. Scope 1 on the intranet, wherein, the employees its emissions further by way of some
covers emissions from company owned were asked to provide in their details. low-cost and easy to adopt measures by
resources; Scope 2 covers emissions The total greenhouse gas emissions sensitizing employees to follow a low-
from purchase of grid electricity; Scope of IREDA have been estimated at carbon lifestyle. This includes switching
3 covers indirect emissions sources 774-tonne CO2e (Equivalent Carbon off lights and computer systems when not
including business related travel, dioxide), resulting in a per capita in use, promoting use of public transport,
employee commuting, use of stationery emission level of 5.95 Tons CO2e. The use of coffee mugs in place of paper
items, courier and shipping services and largest share is from Scope2 emissions cups, encouraging video conference
usage of tea/ coffee paper cups. (62 per cent), followed by Scope3 facility for communicating with
Further, 2012 was taken as the base year. emissions (37 per cent). customers (to obviate physical travel) and
To make the exercise more authentic, recycling of paper by waste segregation.
the emission factors were obtained from Even before the baseline establishment
reputed research agencies including of its carbon footprint, IREDA initiated Last but not least, IREDA has purchased
CEA, CPCB, IPCC and Carbon Neutral. several measures to reduce its impact 100 Renewable Energy Certificates
on the environment and shift towards (REC) to show its leadership in the
The data sources that included log a sustainable way of working. Such Indian cleantech movement as a true
books, electricity bills, rail and air ticket measures included the use of nano- harbinger of Green energy revolution in
bookings, purchase bills for stationery coated double insulated low energy- the country.

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INTERVIEW
RES TRADE WORLD VIEW FEATURES
FEATU
TECHNOLOGY g a dream
Shashi Shekhar Wind energy European
s: Assansol: Powerin Perspective: NGOs in renewable energy
WORLD VIEW Monitoring asset or Joint Secretary
GST: Winds of
change woes p46 waste-to-energy Market Watch: Solar energy development
INTERVIEW the cost: monit
1/1/2010-TC llah: Playing down GIS can help MNRE p30
IREDA: Holding
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energy markets not only in the

APENG03201/0 Farooq Abdu ers PV
the Solar Manufactur able remote solar AP: Spoiled game Project Monitor: Okhla waste-to-energy plant
Renewing at working on afford systems
p51
roots p26 ways p55
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VOLUME 1
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ISSUE 1
EnergyVolume 1 Issue 7 May 2011 Hyderabad Your guide to Renewable Energy

Your guide to Renewable
Hyderabad
1 November 2010
Volume 1 Issue
It is a platform for government

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winning
and private sector leaders to
tale Inaugural
The wind
Issue
turbine
discuss the opportunities and

manufacturing
industry in
India is flying
high, thanks to
challenges of the rapid and global

the rapid pace
at which the
wind energy
sector is
deployment of renewable energy.

growing
learnt,
Lessons well-
nced and
experience enha
supportive
backed by a
policy, a new,
is
energised India
er
springing to bolst
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Event Coverage WFES 2013
Preparing for the

challenges ahead
Each year, it witnesses
world leaders,
international policy
makers, industry leaders,
investors and experts
deliberate sustainable
solutions for future energy
challenges. This time too,
the World Future Energy
Summit was host to a
summit, an international
exhibition, the Project &
Finance Village, the Young
Future Energy Leaders
programme, corporate
meetings and social
events. Energy Next looks
into what transpired
T
he sixth edition of the World
Future Energy Summit (WFES),
held in Abu Dhabi from January
13 to 17, 2013, witnessed
over a 1,000 conference delegates The event is (ADIREC), also hosted by the World
Future Energy Summit, 165 speakers
deliberating on the need for greater
support from governments with regards
dedicated to led the discussions and this set
to policy development, investment and advancing the global future energy agenda
for the next decade. Moreover, it
collaboration.
future energy, also provided a solutions blueprint
The link between water and energy for the 120 countries which have
was apparent when Masdar, host of
energy efficiency and already set renewable energy targets.
the WFES, announced an ambitious clean technologies Innovation was a key focus of the
long-term goal to develop large-scale ADIREC programme and included
commercially-viable desalination plants sessions on how technology and
Renewable Energy Conference in Abu
that are fully powered by renewable innovation will shape the future and
Dhabi (ADIREC) which coincided with
energy sources by 2020. Titled drivers of innovation in future energy
the third annual session of the Assembly
‘Powering Future Energy Innovation’, technologies. Leading experts were
of IRENA.
WFES 2013 was co-located with the first on panels during parallel sessions
International Water Summit, and the During the International Renewable on solar energy, wind, geothermal
host venue for the biennial International Energy Conference in Abu Dhabi energy, energy storage, innovation

Thousands of visitors thronged the 40,000
square metre gross exhibition space at
WFES 2013 to see the latest technologies
and solutions in areas such as energy
efficiency, solar energy and electric transport
and entrepreneurship, sustainable replicable to get off the ground,” IRENA’s Dhabi’s multi-faceted renewable energy
transport and the evolution of Deputy Director-General, Frank Wouters company, was staged at the Abu Dhabi
hydropower. said. “By making such projects bankable, National Exhibition Centre and brought
we believe we can create substantial together project owners and solution
The REN21 Renewables 2012 Global growth opportunities for renewables in providers with investors and buyers from
Status Report, the sister publication of energy-poor countries,” Wouters added. both the public and private sectors.
the Renewables Global Futures Report
which was launched during the WFES, As per the World renewable energy Around 650 companies from 40
reveals that over US$257 billion were agency, GCC countries can achieve up countries showcased their products to
invested in renewable energy in 2011. to $200 billion in returns by 2030. The an eager audience, including 70 new
Globally, 200 million homes now collect Project & Finance Village at the sixth product launches. The Zero Tracer, an
solar hot water and there are 5 million World Future Energy Summit (WFES) enclosed electric motorbike which can
jobs created in renewable energy in Abu Dhabi also provided an avenue reach speeds of around 250 kmph,
industries. for investors to evaluate new projects. attracted a number of curious visitors,
Encouragingly, there was an increase in while the Estidama-compliant home
During the event, the International the number of international cleantech in the new Sustainable Living area was
Renewable Energy Agency (IRENA) and renewable energy projects on the centre of attention for developers,
allotted an initial US$350 million funding display at the village. engineers and architects, who were
cycle in conjunction with the Abu looking to incorporate the latest in
Dhabi Fund for Development (ADFD). Showcasing energy efficiency energy efficiency in their projects.
According to officials, the two Abu WFES 2013 saw the introduction of the
Dhabi-based institutions are working Sustainable Living Area, incorporating “We also want to keep up with the
together to incentivise innovative the WFES Eco-Home endorsed by current trends in the renewable energy
renewable energy projects in developing Estidama and the energy efficiency industries and support the sector as it
countries. pavilion. The WFES Eco-Home is a real becomes more important to the global
size, walk-in house featuring green economy,” Naji El Haddad, Show Director
“This financing from ADFD, administered and eco-friendly elements, complying for WFES 2013, was quoted as saying.
with the support of IRENA, will help with the Estidama Pearl Rating System. Next year, the event will be held at
projects which are innovative and The exhibit, hosted by Masdar, Abu ADNEC from January 21-23.

Upcoming Events
Mar
CSP Today Mar Offshore Mar CISWIND-
12-13 India 2013 20-21 Wind 28-29 2013
Developer
New Delhi,
India T he two-day event is
a unique platform to
provide the stakeholders
Supply Chain
Forum 2013
Kyiv,
Ukraine T he event is an important
international conference
& exhibition in the wind
with the exact information energy industry of the
that is needed to win CIS and Eastern Europe
business, develop projects
and make CSP viable in the
London,
United
Kingdom
T he event is Europe’s one
of the most important
supply chain focused
region. It is an important
meeting point for policy
Indian context. The event makers, business leaders
event on the off-shore
will try to shed light on and other stakeholders of
wind energy market. The
various issues and discuss the wind energy market
conference will provide
about ways to increase in charting roadmap for
an opportunity to get an
CSP’s market share in India the development of the
insight into various topics
and boost business. industry in the emerging
of importance such as new
markets in Eastern Europe
technology, lead times,
and CIS countries.
contracting and alliances
and the emerging markets.
http://www.csptoday.com/india/index.php http://www.windenergyupdate.com http://rencentre.com/en/ciswind
Mar Apr Apr

National Wind O&M Wind Farm
30 th
Conference on 8-10 Summit USA 10-11 Development:
Green Energy 2013 European
(NCGE- 13) Offshore 2013
Dallas,
Texas, USA T he event serves the
purpose of being a
Chennai,
Tamil Nadu,
India
T he NCGE is a forum
for the presentation of
technological advances
definitive commercial
networking forum for the
Edinburgh,
United
Kingdom
A dedicated event for
the off-shore wind
energy sector aimed at
wind power project owners
and research results in the and developers in the US. enhancing networking
fields of Green Energy. The conference aims to and business development
The conference will address the O&M issues opportunities for the
bring together leading of the wind farms with stakeholders. The event
researchers, engineers an in-depth focus on the will witness participation
and scientists on a single technology, post-warranty from key industry players
platform for discussing maintenance strategies, and decision makers who
future road map of the solutions and partnerships to will throw light on the
green energy sector. ensure profitability. development and future of
the sector.
http://www.rmd.ac.in/NCGE13 http://www.windenergyupdate.com http://www.wplgroup.com/aci/conferences
Apr Apr
APRIL
Solar energy in the CIS Vega solar

11-12 and Eastern Europe- 12-14 India 2013
CISOLAR-2013
Moscow,
Russian
Federation
T he 2nd International Conference
& Exhibition is one of the most
important interactive platforms for
Hyderabad,
AP T he event aims to provide a
platform to the global leaders
in solar power industry together to
the solar power players in the CIS and support the growing solar Industry in
Eastern Europe region. The event is India. The show will connect industry
likely to have participation of delegates to the entrepreneurs, experts, policy
from over 25 countries discussing makers, consultants, professionals and
commercial opportunities of the solar corporate and work towards taking
power project development in the the solar power industry towards
emerging markets of the region. glory.
http://rencentre.com/en/cisolar http://www.vegasolarindia.com/

VOLUME 3 ISSUE 5 march 2013
RNI NO.: APENG/2010/38296 POSTAL REGISTRATION NO.: HD/1153/2011-13 In Conversation Budget 2013-14 Perspective Moving Ahead: Small wind, big potential
S Padmanaban Industry Speak Anil Kakodkar Energy & Development: DSDS 2013
p22 p29 p33
Opinion: Beating the odds
VOLUME 3
` 100 $ 5 € 3
ISSUE 5
www.energynext.in
Volume 3 Issue 5 March 2013 Hyderabad Your guide to Renewable Energy
Listen to the
high winds…
march 2013
India’s potent wind energy sector has been wavering of late,

yet there are reasons to believe that the rough weather will
only make it grow stronger and faster

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RNI NO.: APENG/2010/38296 POSTAL REGISTRATION NO.

Volume 3 Issue 5 March 2013 Hyderabad Your guide to Renewable Energy

India’s potent wind energy sector has been wavering of late,

Listen to the Publications Director R Ramprasad

Associate Editor Rosy Mishra

Associate Editor Sapna Gopal

Head - Business & Events Anupam Daftuar

Marketing & Circulation Nidhi Dutta

Manager - Research Anup Kumar

For the latest Renewable Energy news.

Editor-in-Chief: Debashish Majumdar

Advertise Nidhi Dutta

India has good potential for repowering with higher

55 Global Voice IREDA Corner

Making the most of the wind

04 | Energy Next | March 2013

March 2013 | Energy Next | 05

06 | Energy Next | March 2013

March 2013 | Energy Next | 07

08 | Energy Next | March 2013

March 2013 | Energy Next | 09

10 | Energy Next | March 2013

March 2013 | Energy Next | 11

12 | Energy Next | March 2013

has the potential to Global Wind Energy Council

has slowed down a bit compared to 40.6 GW installed in the previous

Industry and AD, GBI

March 2013 | Energy Next | 13

14 | Energy Next | March 2013

Demand for restoration of

March 2013 | Energy Next | 15

Finance Minister P. Chidambaram reassessed the country’s wind power

16 | Energy Next | March 2013

March 2013 | Energy Next | 17

2012 when both the schemes were transmission infrastructure in the

18 | Energy Next | March 2013

Top 10 new installed capacity jan-dec 2012

2.8**** 2.5**** 2.4****

5**** PR China** 2.1****

Beating the odds

March 2013 | Energy Next | 19

The wind scenario in India

Traditionally, balance sheet financiers

20 | Energy Next | March 2013

anticipated expiration of the US’

contributions from ‘emerging markets’

March 2013 | Energy Next | 21

22 | Energy Next | March 2013

spans over 30 years of service A: The focus really began in the

March 2013 | Energy Next | 23

24 | Energy Next | March 2013

March 2013 | Energy Next | 25

energy has major implications for to significant savings. Technologies

26 | Energy Next | March 2013

March 2013 | Energy Next | 27

Programme with India to promote

28 | Energy Next | March 2013

March 2013 | Energy Next | 29

2.8 2.5 2.4

5 PR China 2.1**