EQ Magazine Jan 2023 Edition

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FEATURED

QOUTE ON CABINET CLEARS ₹19,744-CR NATIONAL GREEN HYDROGEN MISSION BY MR. GAUTAM MOHANKA, MANAGING DIRECTOR, GAUTAM SOLAR PRIVATE LIMITED

INDIA

UJALA SCHEME ON LEDS BRINGS ABOUT ENERGY REVOLUTION IN INDIA

19

FEATURED

SOLAX UNVEILED NEW X1-MINI G4 RESIDENTIAL STRING INVERTER

MR. AMIT AROKAR, Managing Director, ECE India Energies

HOW SOLAR ENERGY CAN CHANGE INDIA’S ENERGY SECURITY LANDSCAPE?

Founded in 2005, JA Solar is a manufacturer of high-performance photovoltaic products. With 12 manufacturing bases and more than 20 branches around the world, the company’s business covers silicon wafers, cells, modules and photovoltaic power stations. JA Solar products are available in over 120 countries and regions.

QOUTE ON CABINET CLEARS ₹19,744-CR

NATIONAL GREEN HYDROGEN MISSION BY MR. GAUTAM MOHANKA, MANAGING DIRECTOR, GAUTAM SOLAR PRIVATE LIMITED

Qupte by Mr. Gautam Mohanka, Managing Director, Gautam Solar Private Limited, “We genuinely welcome the Government of India’s much-awaited initial outlay for ‘National Green Hydrogen Mission’. India’s dependency on fossil fuels has been a matter of concern, given that our power consumption demands are likely to soar massively over the next twenty years.

The initial outlay of Rs. 19,744 crores will boost the production of green hydrogen in India and will eventually help the industrial, commercial, and residential sectors alike. Given that we currently import more than 80% of our national oil requirements, green hydrogen along with solar and wind could be the answer to the future, with this initial outlay being projected to curtail fossil fuel imports of over Rs. 1 Trillion by the year 2050.

Of these Rs. 19,744 crores, Rs. 17,490 crores is allocated for the SIGHT programme, which will not only provide a growth opportunity to the domestic manufacturing of electrolysers but also provide a boost to the target of production of 5 million metric tonnes of Green hydrogen by 2030 and making India a green hydrogen hub. This is our international commitment as well for becoming a zero emission nation. Hydrogen and Ammonia will help to further decrease the use of fossil fuels and is wished to be future fuels and will provide clean air to the future generation. Green hydrogen and green ammonia is the future of our country. The production of green hydrogen can rely on electricity generated by solar plants, and in a way, this is a boost to the renewable sector. Gautam Solar looks forward to empowering local players and businesses in using solar power for green hydrogen production and usage. We hope that the government will eventually make it mandatory for select industries to use green hydrogen and solar power to reduce the reliance on fossil fuels. We also see this as a prospect for the indigenous production of power components, panels, and parts.

We have previously applauded Honorable Prime Minister Mr. Narendra Modi’s commitment at the COP27 summit, and we believe that this initial outlay for ‘National Green Hydrogen Mission’ will propel the renewable energy sector in the right direction”

Centre approves ₹19,744 crore National Green Hydrogen Mission:The Union Cabinet approved the ₹19,744-crore National Green Hydrogen Mission with an objective to become a major exporter in the field and make India a global hub for the production, utilisation, and export of Green Hydrogen and its derivatives.

UNION MINISTER OF POWER AND NRE, SHRI R.K SINGH INTERACTS WITH STAKEHOLDERS REGARDING NATIONAL GREEN HYDROGEN MISSION

The National Green Hydrogen Mission will make India a leading producer and supplier of Green Hydrogen in the world. It would result in attractive investment and business opportunities for the industry. Will contribute significantly to India’s efforts for decarbonization and energy independence. Will create opportunities for employment and economic development.

The Mission will drive the development of the Green Hydrogen ecosystem in the country.

The targeted production capacity will bring over ₹8 lakh crore in total investments and will result in creation of over 6 lakh clean jobs.

The Mission will support pilot projects in other hard-to-abate sectors.

The Mission will also support R&D projects.

After the Cabinet approved the National Green Hydrogen Mission, Shri R.K. Singh, Union Minister of Power and New & Renewable Energy chaired an interaction with stakeholders. Shri R.K Singh informed the stakeholders that the Mission will make India a leading producer and supplier of Green Hydrogen in the world. The Mission would result in attractive investment and business opportunities for the industry, contribute significantly to India’s efforts for decarbonization and energy independence, and also create opportunities for employment and economic development. The Minister further stated that the Mission will drive the development of the Green Hydrogen ecosystem in the country through an array of measures towards demand creation, strengthening the supply side while working on regulatory framework, technology and innovation to enhance affordability of green hydrogen.

The Mission targets setting up of at least 5 MMT (Million Metric Tonne) per annum of green hydrogen capacity with an associated renewable energy capacity of about 125 GW by 2030. The targeted production capacity will bring over ₹8 lakh crore in total investments and will result in creation of over 6 lakh clean jobs. It was also informed that the Mission will support pilot projects in other hardto-abate sectors like steel, long-range heavy-duty mobility, shipping, energy storage etc. for replacing fossil fuels and fossil fuel-based feedstocks with Green Hydrogen and its derivatives. The Mission will also support R&D projects and develop a robust framework for Regulations, Standards and Certification.

RENEW POWER INSTALLS FIRST 3X PLATFORM WIND TURBINE GENERATORS IN INDIA

ReNew Power, India’s largest renewable energy company by operational capacity, announced the installations of India’s first-ever 3x platform Wind Turbine Generators (WTG) in Gadag, Karnataka. The WTGs have a nameplate capacity of 3.3-3.465 MW and are 128-140m in height. They offer significantly improved capacity over models installed in India to date, which typically have a nameplate capacity of 2-3 MW. The new WTGs will be a part of the country’s first ‘Round The Clock’ renewable energy project, combining wind, solar and a Battery Energy Storage System (BESS). This project will produce enough energy to power over 1 million households in India annually. In a national first for an Indian business, other than an OEM, the installations have been completely executed in-house wind EPC team – including land procurement, the construction of foundations, crane management for the WTG installations and transmission build-out. ReNew completed the on-site installations of the WTGs in 5 days each.

Sumant Sinha, Chairman & CEO, ReNew Power, said: “As an organization we are always pushing for the implementation and wide usage of renewable energy resources in India. We want a carbon emission-free India whose growth story is powered by clean energy. Renewable energy can enable Indian companies to expand in a manner that is pollution free. At ReNew, our aim is to further expand our wind power capacity to serve as many people as we can, as soon as we can. This installation brings us one step closer to our goal of boosting India’s economic growth by accelerating the clean energy transition.”

SOLARSPACE SHIFTS TOPCON SOLAR CELL FACTORY TO FULL CAPACITY

The second-phase launch of Solarspace’s $1.47 billion manufacturing facility brings its total global Production capacity of n-type solar cells to 35GW and solar modules to 6GW.

On 3 rd Jan 2023, Solarspace Technology, a leading solar energy manufacturer has announced the official secondphase launch of n-type tunnel oxide passivated contact (TOPcon) PV cell production at its factory in Chuzhou, China, with an annual capacity of 16 GW. The cell and module manufacturer announced the first phase of the $1.47 billion (CNY 10.5 billion) project in November, 2022 with an initial production capacity of 8 GW across 16 production lines.

Solarspace expects the average efficiency of its TOPCon solar cells to reach 24.8% to 25.3%, with the efficiency of the corresponding n-type solar modules reaching around 22.3%. The second-phase launch brings its total global production capacity for solar cells and modules to 35 GW and 6 GW, respectively.

Installs 3x platform Wind Turbine Generators (WTG) at Gadag, Karnataka. 1,500 MW of Wind Power Projects are under construction in Karnataka, Maharashtra, and Gujarat.

SINENG ELECTRIC TO SUPPLY SOLAR PROJECTS IN GREECE

Forging ahead and embarking on a zero-carbon journey, Sineng Electric brought its high-reliability solar PV solutions into the romance of Greece and felt proud to be part of the 54MW and 47MW solar projects, supporting the country to derive more of its power needs from newenergy.

With more than 250 days of sunshine per year, Greece is richer in sustainable energy potential compared to theNorthern European countries. Amidst the ongoing energy crisis, the local government has to cope with the sudden surge in gas prices and protect people from the unstable environment. Thus, the demand for affordable energy has rocketed, which also boosts Greece’s deployment of renewables. As per the European Union’s National Energy and Climate Plan (NECP), by 2030, Greece’s electricity mix tends to surpass 61% by new energy. And Greece’s new national energy plan mandates 7.7 GW of cumulative installed PV capacity at the end of 2030. In ordertoreachits 2030 renewables target, large clusters of PV stations in Greece have been put into operation and Sineng Electric supplies its 275kW high-current string inverter solutions to the projects.The SP-275K-H1 inverters, featuring maximum efficiency 99.0%, have been commissioned to power the 54MW ground-mounted solar plant in Anthili and the 47MW PV power station in MikroVouno, generating clean electricity and powering thousands of households.

With the advanced design such as IP66+C5 anti-corrosion protection, the inverters have superb adaptability towards complex and harsh environments. By virtue of 12 MPPTs, the inverters alsosecure the power station’s stable output by optimizing the match between PV panels and the utility grid. More importantly, the world-leading smart IV scan diagnosis technology, allows for rapid and accurate troubleshooting without the need for additional on-site experts. It greatly helps improve maintenance strategies. At the same time, the smart air cooled system ensures that the inverters won’t derate even under extreme temperatures, significantly guaranteeing the electricity generation and long-term benefits. In terms of efficiency, reliability, safety, high performance, and power quality, the inverters from Sineng Electric have become a preferred choice in this industry.Fully committed to providing solar solutions tailored for various scenarios, Sineng Electric will further contribute to green energy development and spare no effort to build a net-zero carbon future with its technological innovations in exploring the most efficient and cost-effective ways.

SOLAX UNVEILED NEW X1-MINI G4 RESIDENTIAL STRING INVERTER

In January, SolaX unveiledits newest single-phase residential on-grid inverter, X1-MINI G4 (0.6-3.3kW).This incredibly light product has an efficiency of 98% (96-97% for the European version), weighs only 5.2 kg and measures 297 x 206 x 120mm (width, height, depth) — smaller than an A4 paper sheet.

As one of the world’s well-known manufacturers in the photovoltaic industry, SolaX Power continues to break through technological barriers and innovatively launch new products. The most updated X1-MINI G4, which was released on Jan.9, is available in eight versions with power output ranging from 0.6kW to 3.3kW.This newproductimproves upon the previous generation, providing a number of fantastic features to truly meet customer needs.Itrepresents another significant stride forward for SolaX’s PV technology. Compared with the former generation, X1-MINI G4 is smaller and lighter. Its compact design makes it easy to handle with only one hand, and installation becomes simpler.

Besides, X1-MINI G4 comes with a refreshed look, while the machine is still white, the functional panels have been more stylish and neat. Despite being even smaller, X1MINI G4 delivers better performance.It has an efficiency of 98% (96-97% for the European version),a maximum MPPT input current of 16A, a MPP voltage range of 40550V (for 2.5kW, 3kW and 3.3kW) and supports 200% oversized DC input. It also features a built-in global MPP scan function for higher yield efficiency.The low starting voltage of 50 V ensures that X1-MINI G4 can generate electricity for a longer time, bringing more profit to customers.

In today’s market, product intelligence emerges as a vital trend and a key factor influencing the user experience. With SolaX Cloud, X1-MINI G4 can easily achieve remote maintenance updates and 24-hour monitoring of solar power generation, system data, load consumption, and other data at a glance. With 10s level interval of data update, customers can track the performance of the product and pinpoint the period of abnormal data more precisely.

In order to improve the user experience and further achieve smart living, X1-MINI G4 supports Modbus for the extendable parallel solutionas well as DataHub for mass management and extension solution.Additionally, X1-MINI G4 is compatible with a heat pump system and a home EV charger, and it also supports microgrids with energy storage inverters, ensuring that customers’ electricity supply demands and safety can still be guaranteed even if the external power grid fails.

X1-MINI G4 has also seen an upgrade in reliability to guarantee the safety of customers. It supports a built-in export control function, I-V curve diagnosis, AC/DC built-in Type II SPD (optional), optional ARC detection (AFCI), external Rapid Shutdown Device (RSD) and other safety detection and emergency protection functions to guarantee overall protection during operation.With a high IP66 Ingress Protection rating, X1-MINI G4 can operate reliably in most harsh conditions, including temperatures ranging from -25 ~ 60 °C or altitudes up to 4000 meters.

Founded in 2012, SolaX has always been committed to the R&D, production, and sales of PV systems and solutions, including on-grid inverters, energy storage inverters (with their accessories), batteries, and EV chargers.With branches in 6 countries, SolaX has around 2,500 global employees and sells products to more than 80 countries. Additionally,SolaX has been named the top brand ofPV inverter in many countries by EuPD Research, a famous research institute in the energy markets.To achieve a clean, sustainable future powered by renewable energy, SolaX Power keeps researching solar inverter technology and has been able to produce some of the most efficient solar inverters on the market today, enabling customers to harness more free, clean energy from the sun.

Being perhaps the smallest in its power range on the current market, X1-MINI G4 offers superior performance, which makes it outstanding. It features the most advanced technology of SolaX Power, representing that SolaX is moving forward steadily to improved efficiency, enhanced intelligence, in-depth compatibility, and strengthened safety. As a compact residential single-phase on-grid inverter, X1MINI G4 will provide clients with a more satisfying experience. RecentlySolaX also introduced X1-BOOST G4, which has an impressive performance as well. With nominal power ratings of 2.5 kW to 6 kW,X1-BOOST G4 is designed for residential applications and can reachesa maximum efficiency of 98% (97% for the European version).

MR. AMIT AROKAR Managing Director, ECE

India Energies

Icome from a middle class family. My father used to work in a bank. He was fond of collecting different types of electronics, electrical items and my inquisitive nature was itching to find out what was hidden inside those objects. My father encouraged this curiosity of mine. I think, the seeds of becoming an entrepreneur must have been planted in the mind since then. While studying engineering in Amravati I started a business of selling batteries and inverters. I would take advance amount from the customer and buy inverter from it. The business model was to buy batteries on credit from the seller and install them at the customer's house itself. Then the crisis of load regulation began to increase. Subsequently, business started to improve, money started coming in hand. But my father told me, “Don't look at the net profit, think about how your work will beneficial for people”. After getting money in hand, one should be able to recognize the difference between what is good and what is bad, these were his Sanskar. I was a student of computer science. After completing my engineering education, I received a well-paying offer letter from a renowned company, Infosys. However, we were determined to build an industry. As the demand for conventional energy is increasing in the country, non-conventional energy will soon become important alternative in the future. This urgency of the future was recognized. After completing my post-graduation in engineering, instead of going to Pune, Mumbai and getting a job, I thought of setting up my own business in my native land. For this, my friends Sameer Kale, Shrikant Tikhile, Aniket Tondare, Suraj Gawande tagged along. Dr. V. T. Ingole also guided us for our project.

Construction of Solar Energy Panel Manufacturing Plant was undertaken in 2018. The first solar energy signal light (solar blinker) for road safety was hence created. Seeing the quality of these signal lights, IRB awarded the contract to ECE India Company to manufacture the lights under their jurisdiction. The company then decided to manufacture the panels required for solar power generation. Due to the COVID-9 crisis, this project could not be started then. Production had to be resumed from July 2021 after the second layoff. The project has since then produced more than 50 MW of solar panels. There are 350 such companies across the country and 4 in the state. Interestingly, the Ministry of New and Renewable Energy under the Union Government has certified the ECE company and placed it in the 'ALMM' list of ten reputed companies in the country. So now the company is getting an opportunity to work across the country. It is resolved to generate 100 MW of energy per year. However, building this project was not easy. We had the will, the skills, the knowledge, the experience but, there was no capital. In 2018, we occupied space in the industrial estate of Amravati. The project was supposed to cost 8 crore rupees, but the capital raised by the 5 of us was not even 1 crore rupees. Then, we appealed to all our old customers, well-wishers, that we are setting up such a project and we need Rs.1 crore. Once we receive the loan, we will return your amount with interest. I am happy to say that only through this appeal, Rs. 1.5 Crores were collected in four days. Our confidence grew from there. At that time there was not a single industry manufacturing solar energy panels within a radius of five hundred kilometers in central India. There was no Marathi entrepreneur in such an industry. Those who were established entrepreneurs, had created the industry as an alternative business. We are proud to say that we are the first marathi solar energy panel manufacturers in the world. My friends who are company directors also belong to a middle class family like me.

So, we decided to take a loan from the bank to build this project. We reached out to the banks. Our propeties had to be mortgaged for the loan in the bank. The cost of the house for 5 of us was not more than 3 crore rupees. A problem arose again. No bank was ready to lend money in such a condition. But, Akola Urban Bank lend us a helping hand. Along with us directors, 3 of our fellow employees in the company had also mortgaged their houses. Even the bank directors realised that the employees were willing to mortgage their houses for this project. Finally, we got a loan of Rs. 8 crore for this project. Construction started in March 2019. The bank gave us 18 months for the construction of the project, but we stubbornly completed the work before that. The bank was also quite surprised with this.

The machinery was set up in August and actual production began in December. Solar panels require Bureau of Indian Standards approval. Without this approval this product cannot be sold in the market. This entire process requires 90 to 120 days. At that time there were only three laboratories approved by the Central Government in India. The product, shipped in December, received the Certificate of Competence in March 2020. But due to the COVID-19 crisis, layoffs came into force in this month. Since January, we had developed a product worth around two and a half crore rupees. We were going to sell it when the certificate came in March, but it all came to a standstill due to the pandemic.

After a month we tried to start everything, but it was also a difficult time. Many employees had gone back to their hometowns and it was not easy to bring them back. Then our colleagues called and persuaded the families of these employees and these employees returned. In June-July, the project work resumed. In one and a half years, the network of the project expanded to twenty states in India.

2500 solar panel businesses matched with our project. Our project has also won many awards. Percentage of marathi people is less in an industry sector. Our willpower was strong and that helped us overcome the difficulties. As a child, I had seen and handled the 'emergency lamp' brought home by my father. But I never imagined then that these lights would illuminate the path of many people throughout the industry. 350 people got employment in our company. The percentage of female employees is higher in the company. This industry has provided direct and indirect employment to around 2200 people. We have adopted a policy of giving preference to locals in the company. 99 percent of the employees here are locals.

With the feeling that we owe something to the society, we implement various social activities. We gift products produced by the Orphan-handicapped organization to the dignitaries who visit our project. These organizations get help through our initiatives. Many appreciate this concept. We also buy products from the entire Bamboo Center in Melghat.

Our company is working to provide all the necessary guidance to the local youth who want to create their own independent existence by setting up their business. It is expected that Marathi youth should start their own industry and provide employment to others without looking for a job. Everyone needs to contribute to make the country self-sufficient, the dream of a self-sufficient India can be realized only if local products are given importance.

HOW SOLAR ENERGY CAN CHANGE INDIA’S ENERGY SECURITY LANDSCAPE?

The Indian Government has set a goal of installing 500 GW of renewable energy by 2030, as part of its Nationally Deter mined Contributions (NDCs), the nation’s climate action plan to cut emissions and adapt to climate impacts.. If successful, India will become one of the leading producers of green en ergy in the world, surpassing even some developed countries.. The energy landscape in India has undergone significant changes over the years, particularly in the last decade, with a growing emphasis on renewable energy.

India has made impressive progress in its renewable energy sector, with over 120 GW of renewable energy installations already in place. Of this, 63 GW is in the form of solar installations. The country is witnessing the fastest growth rate in renewable energy capacity, with 1.97 times increase in overall capacity and an 18-fold increase in solar capacity. According to IEA, “Energy Security is uninterrupted availability of energy sources at an affordable price.” Improving energy security is a top priority for India, as it brings greater access to energy and creates more job opportunities. The Government is committed to ensuring a smooth transition while maintaining energy security. With supportive policies in place, India is accelerating its clean energy transition and ensuring greater energy security. The International Solar Alliance (ISA): ISA, an initiative proposed and launched by India’s Prime Minister Shri Narendra Modi at the UN Climate Change Conference in Paris in 2015 demonstrates India’s commitment to provide affordable and clean energy to its citizens. The collaborative platform focuses on increased deployment of solar energy technologies among sunshine countries. Due to proximity to the Equator, the country enjoys 300 sunny days in a year, making it possible to harness 5000 trillion kWh of energy each year.

The National Solar Mission (NSM): India launched NSM with the goal of reducing the cost of solar power generation and achieving grid tariff parity through long-term policy, large-scale deployment goals, outcome-oriented R&D and domestic production of critical raw materials, components and products.

BCD, ALMM, PLI : The implementation of Basic Customs Duty (BCD) and the Approved List of Models and Manufacturers (ALMM), has led to a boost of domestic manufacturing. A 25 per cent BCD is imposed on imported solar cells and a 40 per cent BCD on imported modules. The ALMM program lists eligible models and manufacturers of solar photovoltaic cells and modules that comply with Bureau of Indian Standards, encouraging local production. The Indian Government has allocated INR19,500 crore under its Production Linked Incentive (PLI) scheme to build an ecosystem for manufacturing of high efficiency solar PV modules in India and reduce imports.

The Ministry of New and Renewable Energy (MNRE): MNRE provides centralised financial incentives for the installation of solar streetlights, solar pumps, solar power packs and other solar applications. The Ministry of Electronics & Information Technology has launched Modified Special Incentive Package Scheme (M-SIPS), which provides 20-25 per cent subsidy on capital expense for construction of manufacturing plant. Additionally, MNRE’s Human Resource Development Programmes provide financial assistance to various academic and professional organisations for providing skill development and trainings, such as Suryamitra scheme.

Net Metering Incentives: The focus of Net-Metering policy is enabling consumers to self-consume the electricity they generate and sell any surplus to the local utility . Thus, net metering arrangement combine captive consumption and exchange of power with the utility. If a state has a net metering incentive policy in place and the consumer has a net meter installed on their rooftop, they can receive financial incentives for the generated power.

MR. Vineet Mittal Director & Co-Founder, Navitas Solar

For example, to increase adoption of rooftop solar, states have announced various subsidy schemes. Gujarat provides 40 per cent subsidy for residential rooftop solar from 1-3 kW and 20 per cent subsidy on 3-10 kW.

Accelerated Depreciation: For profit making companies, installing rooftop solar systems, can allow them to claim up to 40 per cent of the total investment as depreciation in the first year.

Renewable Energy Certificate (REC): REC is a market-based instrument designed to promote renewable energy and facilitate complying with the requirements of Renewable Purchase Obligations (RPO). Each REC is treated as equivalent to 1 MWh of renewable energy generation. Solar-RECs are issued to eligible entities that generate electricity using solar power. These certificates can be traded only in the Central Electricity Regulatory Commission (CERC)-approved power exchanges.

Power Purchase Agreement (PPA): The power distribution and purchase companies owned by state/central governments guarantee the purchase of solar power as and when it is produced. They offer high prices, equivalent to those of peak power, for solar power, which is typically a secondary and intermittent energy source on a daily basis, through Power Purchase Agreements (PPAs).

Viable Gap Funding (VGF): VGF is a type of grant that provides financial support to infrastructure projects that are deemed socially or nationally important but are not commercially viable. For bidding for the projects, the government sets a reference price, over and above which the companies would bid for VGF from the government.

The solar power produced will be sold to the purchasing DISCOMs/ State utilities/ bulk consumers at a pre-determined tariff set by the MNRE, based on the market conditions.

Energy Mix: It's important to understand that no single energy source, such as solar, wind, or coal, will be able to fully meet energy demand in India. Instead, a mix of different energy sources will be necessary. Our focus is on balancing the proportion of energy sources and reducing our reliance on fossil fuels.

The Airports Authority of India (AAI) and the Indian Railways are setting up solar power plants at various airports and railway stations to meet their electricity needs, based on technical feasibility and state policies. To achieve this goal, there is a need for increased capacity building in the solar industry, including professionals in solar business, finance, technology and regulations. Collaboration between policymakers, businesses, government officials at the national, state, district and taluka levels, youth, women and NGOs is necessary to successfully achieve the nation’s goal for solar energy. In addition, policies on innovative financing solutions (clean energy funds), incentive-linked loans, green bonds, investment in R&D, and effective procurement of critical minerals also need to be developed. It is the time for India to connect the dots and think on long-term visions, existing plans, implementation plans, roadmaps, cross-sector deployment of solar energy to make significant strides in clean energy, fight against climate change and create a sustainable future.

REC INKS THREE STRATEGIC MOUS IN BACKDROP OF MADHYA PRADESH GLOBAL INVESTORS SUMMIT 2023

Madhya Pradesh Global Investors Summit 2023 draws interest both at the national and international stage

REC inked first MoU with MP Power Management Company Limited (MPPMCL), to extend financial assistance of ₹15,086 crores

Second MoU with Rewa Ultra Mega Solar Ltd. (RUMSL) wherein REC will commit a sum of ₹1,000 crores as financial assistance for renewable energy projects

REC in partnership with World Bank has designed a financing facility for select state owned electricity distribution companies

The summit witnesses participation from more than 314 companies

REC Limited inked strategic MoUs in the backdrop of the Madhya Pradesh Global Investors Summit 2023. The first MoU was signed with the MP Power Management Company Limited (MPPMCL), to extend financial assistance of ₹15,086 crores for upcoming Sarani and Amarkantak thermal power projects, system improvement works, technology upgradation, renovation & modernization etc. The second MoU was inked with Rewa Ultra Mega Solar Ltd. (RUMSL) wherein REC will commit a sum of ₹1,000 crores as financial assistance for renewable energy projects covering the development of renewable energy parks/projects, and/or associated infrastructure including power evacuation. RUMSL has been designated as Solar Power Park Developer (SPPD) by the Ministry of New and Renewable Energy (MNRE) to develop large-scale solar parks in the state of Madhya Pradesh.

This project will be a key addition to realize the renewable energy targets of Madhya Pradesh. The state aims to generate 20% of its electricity through renewable sources by financial year 2024, 30% by FY 2027 and 50% by FY 2030. REC has the vision to become a leading financial services provider in the renewable energy space.

The summit has drawn interest both at the national and international stage and witnessed participation from more than 314 companies. Additionally, REC in partnership with World Bank has designed a financing facility for select state owned electricity distribution companies. As a part of this REC-World Bank program, the total volume of financing available shall be USD 1 Billion. Under this umbrella REC committed an amount of ₹5,000 crores been committed to MP DISCOMs to further strengthen the distribution reforms.

TELANGANA: SC CORP TO PROVIDE TRAINING FOR YOUTH IN SOLAR PANEL INSTALLATION

The training would be given to unemployed SC youth for a period of three months at the Rural Institute for Skill Empowerment training centre located at Madhapur

With renewable energy, especially solar energy, growing at a faster rate and the demand for solar panels on a rise in the State, the Telangana Scheduled Castes CoOperative Development Corporation Limited has taken up an initiative to train youth belonging to SC communities in solar panel installation. It has joined hands with the Rural Institute for Skill Empowerment (RISE) to impart skill development and training in solar system installation and computers. According to officials of the corporation, the training would be given to unemployed SC youth for a period of three months at the Rural Institute for Skill Empowerment training centre located at Madhapur. The entire cost of the training programme, including accommodation and food, would be borne by the corporation. The minimum qualification for getting into the training programme is 10th class or intermediate pass and the candidate should be between 18-25 years of age, the official informed.

During the training session, the youth would be trained on technical skills, soft skills and communication by expert and tenured trainers, an official of the RISE informed. “The training will have classroom sessions as well as hands-on training which is specially designed by RISE,” he said. With the solar energy sector gaining momentum rapidly, there would be great demand for skilled solar panel installers in the country, a senior SC Corporation official stated. “Those willing to start their career in this field need to have hands-on training and knowledge about the solar sector and its finer nuances only then he would be accommodated in good companies. Hence, we decided to train SC youth, ” he revealed.

The fresh batch of 35 candidates would undergo training from January 20. So far three batches have undergone training and most of them have found placements in private companies, the official stated.

Source: PTI

SOFAR REVEALS NEW BRAND IDENTITY AND WEBSITE REFLECTING ITS FOCUS ON A NET-ZERO FUTURE

In line withtwo offline venues, SOFAR also launches a live streaming to reach global audience, which has been rebroadcast by15media platforms. Through the combination of physical event and live streaming, SOFAR emphasizes its commitment toposing a positive impact on building a more sustainable and low-carbon planet, making renewables accessible and available for all.

Simplified from ‘SOFARSOLAR’ to ‘SOFAR’, the company endows its new brand name with new implications. Each letter is taken from a relevant word, ‘S’forsustainable, ‘O’for net-zero, ‘F’for future-proof, ‘A’foraffordable and ‘R’forreliable, which emphasizes its ambition on reshaping the future energy structure with advanced digital energy solutions.

The new wordmark has been modernized in both the color and the font. Adopting aurora green that stands for clean energyand cerulean blue thatrepresents digitalization, the new brand image demonstrates a deep integration of these two elements.

A FUTURISTIC-LOOK WEBSITE, FOR BETTER EXPERIENCE

SOFAR has upgraded its website with afuturisticlook which is optimized to offer visitors smooth, user-friendly and more interactive experience. Employing horizontal switch for the homepage, the new website (https://www.sofarsolar.com/) is able to provide users with a more creative interface. Apart from presenting a comprehensive ecosystem of future digital energy, the new website makes it possible for visitors to see the dynamic product deconstruction and have a more vivid understanding of SOFARsystem solutions.

MEET XIAOHANG, SOFAR’S NEW AVATAR

To everyone’s surprise, SOFAR also unveils its new brand avatar- Xiaohang. Endowed with the characteristics of being lively, enterprising, honest and knowledgeable, this new avatar embodies the spirit of integrity, exploration and consideration of SOFAR, which helps build a brand image with affinity. Stepping into the 10thanniversary of its rapid expansion, SOFAR leadsthePV &Storage technology revolution as one of global TOP5 Hybrid Inverter Suppliers. In 2022, SOFAR launched thepioneering all-in-one residential solar + storage system SOFARPowerAll, bolstering its leading position in PV and energy storage sector. By the end of 2021, SOFARshipped over 1 million inverters to more than 100 countries worldwide, empowering global customers on the journey towards a more sustainable and low-carbon lifestyle.

Upholding the mission of technology drives green energy, we are devoted to making contributions to green transition as the leading provider of digital energy solutions, said Guy Rong, Senior Vice President of SOFAR. “In the future, we will keep focusing on renewable energy technologies, making investmentin R&D and adhering to innovation-driven growth, thus bringing forth our sustainable, net-zero, future-proof, affordable and reliable solutions for more communities.” Rong concluded.

SOFAR, the global leading supplier of PV and energy storage solutionsreveals a new brand campaign in Shenzhen, China and Frankfurt, Germany, displaying the company’s commitment to innovationandits role in powering a net-zero future.

FEATURED

FARMERS WILL BE ABLE TO INSTALL SOLAR ENERGY GENERATION PLANTS ON THEIR LANDS TO INCREASE INCOME: UPPCL

In an effort to increase the farmers’ income, the Uttar Pradesh Power Corporation (UPPCL) has entered into a power purchase agreement with private developers to establish solar power generation plants of 7 MW on their barren lands in six districts as part of the Kisan Urja Suraksha evam Utthan Mahabhiyan (KUSUM) scheme.

On the directions of Chief Minister Yogi Adityanath, solar power generation plants will be set up in Bijnor, Hathras, Mahoba, Jalaun, Deoria and Lucknow, the UPPCL chief M Devaraj said. Under this scheme, farmers will set up solar power generation plants on their barren or uncultivable farmland with the assistance of various banks. Additionally, the government will provide subsidies for this, and by selling the electricity thus produced to the government or private power companies will enable the farmers to boost their income, the UPPCL chief said. Under the KUSUM scheme, the government gives 90 per cent of the total cost of the solar pump as a subsidy to the farmers, he said.

According to the scheme, 5 acres of land is required to set up a 1-megawatt solar plant. That is, one acre of land generates 0.2 megawatts of electricity. Through this scheme, farmers can also eliminate the problems related to electricity in their area, he said. Solar power generation plant of 1.5 MW will be set up in Vilaspur village of Bijnor, 0.5 MW (500 kW) in Mauhari of Hathras, 1 MW each in Mahoba’s Devgaon, Jalaun’s Khuksis and Deoria district’s Bariyarpur village while 2 MW solar power generation centre will be set up in Parseni village of Lucknow, said Devraj. It is noteworthy that this programme will provide farmers with two benefits. They will first be able to use solar-powered irrigation pumps instead of outdated diesel irrigation pumps. Second, by selling the electricity produced by the solar plant installed at their farms to the power providers, they can make an additional Rs 80,000 each year, he said.

Meanwhile, he also said that through WhatsApp messages, Uttar Pradesh Power Corporation (UPPCL) offers services to power users regarding their bills and other issues. At present, there are about 3.30 crore electricity consumers in the state, out of which 33 lakh have given their consent to avail of the facility of receiving messages, he added.

Source: ANI

MAHA GOVT SAYS NO MOVE, TO PRIVATIZE STATE-RUN POWER FIRMS; EMPLOYEE UNIONS CALL OFF STRIKE

Employees of three state-owned power companies in Maharashtra called off their strike, hours after they stopped work as part of a three-day agitation launched in support of their demands, following an assurance from the government that the utilities will not be privatized, fulfilling a key demand.

Maharashtra Deputy Chief Minister Devendra Fadnavis, who also holds the energy portfolio, held a meeting with trade union representatives and later said the government had no intention to privatize state-run power utilities. The decision to call off the stir was announced by Sanjay Thakur, president of the Subordinate Engineers Association, one of the unions participating in the 72-hour-long strike that started midnight over a host of demands, following the meeting with Fadnavis. Maharashtra State Electricity Distribution Company Ltd (Mahavitaran or MSEDCL), Maharashtra State Electricity Transmission Company Ltd (Mahapareshan) and Maharashtra State Electricity Generation Company Ltd (Mahanirmiti) are the state-owned power firms whose employees, numbering more than 80,000, had gone on the strike.

government. Krushna Bhoir, general secretary, Maharashtra State Electricity Workers’ Federation, told PTI the government has agreed to all these points. As per the statement, one of the points says there will be no privatization of the three state- owned electricity companies.

Fadnavis said a “communication gap” between the state government and agitating trade unions led to the stir. “If a meeting had taken place between the state government and trade union representatives earlier, the strike wouldn’t have happened,” he said.

The deputy CM said the state government doesn’t want any state-run company to be privatised. “One private company (belonging to Adani group) has applied for ‘parallel distribution licence’. I want to make it clear that we are not supporting privatisation of these (power) companies,” he said. “We will not privatize Mahavitran (state-run power distribution firm) on the lines of Odisha and Delhi. In case grant of parallel licence (to Adani group company) impacts MSEDCL’s finances, the government shall support MSEDCL in submission before (state power regulator) MERC to ensure their interests are protected,” said the Deputy Chief Minister.

In November last year, Adani Electricity Navi Mumbai Ltd, a subsidiary of Adani Transmission, had applied to the Maharashtra Electricity Regulatory Commission (MERC) for a parallel licence for power distribution under the jurisdiction of Mahavitaran in Bhandup, Mulund, Thane, Navi Mumbai, Panvel, Taloja and Uran areas (located in Mumbai and its surrounding areas). No decision has been taken yet on the application. Issuing a statement after a more than two-hour-long meeting with Fadnavis at Sahyadri guest house in south Mumbai, the action committee of trade unions in state-run power companies, who had given the agitation call, said they have ended their strike. A joint statement shared with the media after the meeting by the trade unions highlighted 12 points raised by them with the state

It further said the government and Mahavitaran (MSEDCL) will oppose any move to issue parallel distribution licence to “private capitalists” within the state-run company’s jurisdiction. If the MERC tries to grant parallel licence to private companies, they (state government and Mahavitaran) will legally oppose the move. According to the statement, the Maharashtra government will provide Rs 55,000 crore to financially strengthen the three state-owned companies in their power generation, transmission and distribution business. The government also agreed that no hydropower projects will be handed over to private players for operation and a proposal in this regard will soon be presented before the cabinet for approval, it said. “No action will be taken against employees, engineers, officers and contractual contract workers who took part in the strike,” said the statement. It also said a policy will be framed to accommodate contractual workers by giving them extra marks when vacant posts are filled up in the three companies. The statement said representatives of 31 trade unions, which were part of the action committee that called the strike, and managing directors of the three state-run power companies took part in the meeting.

“Trade unions had a positive discussion with Deputy Chief Minister Devendra Fadnavis and hence the strike was called off after written minutes were given,” said the statement. The action committee’s other demands were – six hydropower plants owned by Maharashtra State Electricity Generation Company should not be sold to private firms, more than 40,000 contractual and outsourced workers in the power companies should be absorbed permanently, more than 42,000 vacant posts should be filled, the widespread practice of appointing contractors should be stopped, and the companies should be run transparently, among others. Soon after the strike started, the government invoked the Maharashtra Essential Services Maintenance Act (MESMA) to ensure there was no disruption in power services. Earlier in the day, protesting employees did not report to work and gathered in makeshift pandals as part of the agitation. Meanwhile, sources said the state government has no role in issuing parallel distribution licences and a decision in this regard has to be taken by the MERC after following due legal process.

“Section 14 of the Electricity Act says…’No such applicant who complies with all the requirements for grant of licence shall be refused grant of licence on the ground that there already exists a licensee in the same area for the same purpose’,” said the sources. Source: PTI

PUNJAB TO INSTALL SOLAR PANELS IN ALL GOVT BUILDINGS

Chairing a virtual meeting, Arora asked the officials to appoint a senior officer of their departments as a nodal officer to coordinate with Punjab Energy Development Agency (PEDA) to further smoothen the process of solarising the building of the departments.

GIS FIRM ESRI EXPECTS TECH AWARENESS TO CUT PER CAPITA CARBON FOOTPRINT IN INDIA BY 30 PC IN 7 YEARS

Geographic Information System (GIS) firm Esri India expects technologybased awareness drives to reduce per capita carbon footprint in the country by about 30 per cent in the next 7 years.

According to research firm Statista, the per capita carbon dioxide (CO2) emissions in India have soared in recent decades, climbing from 0.39 metric tonne in 1970 to a high of 1.9 metric tonne in 2021.

We are trying to drive a 30 per cent reduction in per capita carbon footprint by 2030. This can be done by shifting to electric vehicles or public transport, switching off electrical appliances when not in use, higher use of biodegradable materials and cutting down packaged food items,” Esri India Managing Director Agendra Kumar said while announcing the launch of its ‘CarbonAware’ app.

He said the app will help in estimating the cause of a higher carbon footprint at the community level. Esri India plans to share this data with local administrations so that they can take measures to educate citizens. As per the data for 2019 published by Statista, the main contributors to India’s carbon footprint were electricity (37 per cent) , manufacturing/industries (22 per cent), transportation (10 per cent) and agriculture (21 per cent). “While India has committed to reducing projected carbon emissions by 1 billion tonne by 2030 and expand its renewable energy installed capacity to 500 GW by 2030, some steps can also be taken at the citizen’s level to reduce carbon emissions from our own day-to-day activities,” Kumar said.

He said the app takes the location of the person and enables the company to analyze data at locality or PIN code level. “We plan to integrate a few other available data sets and provide actionable insights to government bodies,” Kumar said. To limit global warming to 1.5 degree Celsius, which was the central goal of the Paris Agreement, a recent IPCC report insisted that global greenhouse gas emissions would have to be reduced by 43 per cent by 2030.

Source: PTI

In order to equip all state government buildings with solar photovoltaic (PV) panels, Punjab New and Renewable Energy Sources Minister Aman Arora directed heads of all departments to expedite the process to issue NOC so that panels can be installed at the earliest. Chairing a virtual meeting, Arora asked the officials to appoint a senior officer of their departments as a nodal officer to coordinate with Punjab Energy Development Agency (PEDA) to further smoothen the process of solarising the building of the departments.

The minister said the government is fully committed to strengthening the clean energy infrastructure for ensuring clean environment to people of the state. This environment friendly move will go a long way to decarbonise the power sector as Solar PV has become the most preferred source of renewable power due to the benefits that it offers. Arora said this ambitious project will be executed under Renewable Energy Services Company (RESCO) Mode and PEDA has already installed solar PV of a total capacity of 88MW on the rooftops of various government buildings and these have been successfully generating clean and green energy.

This project will reduce the financial burden of the electricity bills of respective departments by approximately 40 to 50 per cent. The amount saved from electricity bills would be spent on public welfare, he added.

Source: PTI

COLLEGES TAKE RENEWABLE ENERGY ROUTE, SELL POWER TO KSEB

erala colleges are taking the lead in generating power from renewable energy sources and selling the excess power to the KSEB. One of the colleges has been giving around 5,000 units of electricity to the KSEB grid every month. While Sacred Heart College at Thevara is harnessing both wind and solar energy, other major colleges like St Teresa’s College, Rajagiri College of Social Sciences, UC College, Aluva, St Xavier’s College and Bharata Mata College are using solar energy to meet their power needs.

According to Dr Mathew George, coordinator of the EnCon club of Sacred Heart College, with the setting up of the windmill, the college became the first and most probably the only education institution in the state to generate electricity using wind power. The windmill can generate 1kWp power, he added.”This is besides the 140 kWp solar power being already generated with the help of the solar panels set up on the roof of the college,” said Mathew. He said the college has plans to upgrade the capacity of the windmill power plant to 20kWp soon.

Nearly all these colleges have solar plants that are connected to the KSEB grid. “We generate around 250kWp electricity and we are the first college in Kerala to be fully powered by solar energy,”said Binoy Joseph, principal, Rajagiri College of Social Sciences at Kalamassery. The solar panels, spread over 30,000 sq ft across the college building, present an imposing sight. “The college has recorded a daily maximum production of 1,372 units per day. The daily average production is 1,016 units. Solar energy production supports the college completely hence, eliminating the expense of electricity consumption which amounts to a monthly average of 30,360 kWh,” he said.

STATE COLLEGES SPREAD MESSAGE OF GOING GREEN

According to Binoy Joseph, the college gives around 5,000 units of electricity to the KSEB grid every month. Alphonsa Vijaya, principal, St Teresa’s College, said that electricity needs of the college is met through solar energy. “The college generates 100kWp of power everyday. Soon another 70kWp will be produced once the new set of panels are commissioned. We also got the energy conservation award for the year 2021-22. Besides, using solar power, we have got LED lights in all our classrooms and offices. We want to reduce the carbon footprint,”she said, adding that the college gives excess power to the grid. St Xavier’s College, Aluva, also uses solar power to meet most of their electricity requirements.

We have 24 solar panels producing 8kWp of electricity, said Liss Maries, assistant professor at St Xavier’s College. Besides reducing the expense on power, these institutions are spreading the message of going green, in terms, of power generation and some of these colleges have also been awarded for their green power initiatives.

“Sacred Heart College was awarded the Energy Conservation Award for the year 2021-22 for our green power initiatives. The aim behind using renewable sources of energy in the college is to educate the students on the importance of going green and energy conservation,” Mathew added.

Source: PTI

Kerala colleges are taking the lead in generating power from renewable energy sources and selling the excess power to the KSEB.

INDIA EYES OVERSEAS COPPER, LITHIUM MINES TO MEET DOMESTIC SHORTFALL

“A team of experts has already studied the technical aspects of the one copper and two lithium mines in Argentina by visiting the sites”

AYODHYA TO GET 10 SOLAR FERRIES ON SARYU RIVER TO PROMOTE TOURISM

The carrying capacity of the ferries will range between 6 to 50 individuals. The Ayodhya Development Authority (ADA) will add a fleet of 10 solar ferries to take the tourists around the temple town.

The ADA is planning to upgrade the infrastructure, and introducing swanky solar ferries will be a step in that direction, said a senior officer from the housing and urban planning department. The ferries will have a GPS navigation system and a maximum speed of 10 knots. The carrying capacity of the ferries will range between 6 to 50 individuals.

Vishal Singh, vice-chairman of the ADA, said “We have already floated the bids and intend to offer a better experience to the visitors. The agency will operate the fleet of 10 ferries and provide a share from its earnings to the local authority.” While some resentment was brewing among the existing boatmen who have been earning their livelihood by operating steamer boats, they were assured that the local residents will get job opportunities through the new venture.

“The agency will run the business. But the local boys and boatmen will get jobs. It will be good for the community if more activity is encouraged over the Saryu river,” said the official.

Solar panels will be installed on the roofs of the ferries along with a waterproof lithium battery. A minimum tenure of five years will be offered to the agency with an option to extend the memorandum of understanding between the two parties to 15 years. To rule out possibilities of any untoward incident, the ferries will be equipped with fire extinguishers, first-aid box and mooring arrangement, among other features. The authority will also secure a certificate from the Indian Register of Shipping along with class compliance certificate.

Source: PTI

India is exploring ways to secure supplies of metals such as copper and lithium from some of the world’s top producers by acquiring overseas mines, as part of efforts to meet rising domestic demand, government sources said. To start with, India has identified one copper and two lithium mines in resource-rich Argentina to either acquire or secure long-term leases, the sources said. The sources, with direct knowledge of the matter, did not wish to be identified, citing official rules. “A team of experts has already studied the technical aspects of the one copper and two lithium mines in Argentina by visiting the sites,” said one of the sources.

“Now, we will start the commercial assessment, and that will take about a couple of months.” The effort is part of India’s wider push to secure critical metals and minerals from top world producers, the sources said. A spokesperson for the Ministry of Mines did not immediately respond to a request for comment. As part of its drive to explore overseas mineral assets, the Indian government has formed Khanij Bidesh India (KABIL) Ltd – a company set up by state firms National Aluminium Company Ltd, Hindustan Copper Ltd and unlisted Mineral Exploration Corp Ltd. KABIL is expected to set up its unit in Argentina to mine and process lithium, the sources said. Lithium is an important raw material used to make electric vehicle batteries. As part of a broader push by the government to meet its decarbonisation goals, India has introduced a clutch of measures to boost sales of electric vehicles (EVs).

India is set to become the world’s third-largest market for passenger and other light vehicles, displacing Japan, according to a forecast by S&P Global Mobility. Other than lithium, copper consumption has jumped in India, even as the country produces only 10-15% of its total copper requirement. India was on track to be one of the world’s fastest-growing copper markets in 2022, bucking the trend of softening demand expansion elsewhere, including top consumer China, amid a slowing global economy.

Source: PTI

UJALA SCHEME ON LEDS BRINGS ABOUT ENERGY REVOLUTION IN INDIA

Also known as the LED-based Domestic Efficient Lighting Programme (DELP), it is considered the world’s largest programme. With the rising energy bills and resulting crisis due to the war in Europe, it becomes even more important for a nation like India that is dependent on many other countries for its fuel and energy to establish itself as a self-sufficient player at the global stage.

The Government of India, in its effort to bring about this energy revolution in the country, accorded top priority to building the adequate infrastructure required for meeting the electricity requirements of the country. As part of the Saubhagya Yojana to provide electricity to every household in the country, the Government of India decided to arrange for low-energy consumption through the UJALA scheme. Given the importance of lighting in any manufacturing setup, educational institution, security and connectivity sectors, the scheme was launched in the year 2015 recognising the cost and sustainability benefits of energy-efficient lighting.

In eight years, nearly 37 crore LED bulbs, 72 lakh tube lights and 23.5 lakh energy-efficient fans have been distributed, saving approximately Rs 20,000 crore per year. Touted as the world’s largest LED distribution programme, the scheme has been able to promote energy efficiency with the mission to build a greener and cleaner environment. As per estimates, saving 48.3 billion KW hours of electricity per year, the scheme has further put into practice the idea behind the mantra of LiFE (Lifestyle For Environment) propounded at the COP27 by the Indian delegation. It is estimated that there is carbon dioxide emissions by 3.9 million metric tonnes per year, equivalent to the removal of around 4.7 million cars from the road every year. In terms of cost-benefit analysis on an individualistic as well as household level, the reduction of 15 per cent in the electricity bills of an average common Indian is quite a significant number. These low-priced and economical LED bulbs have successfully saved the common people approximately Rs 19,300 crore annually on electricity bills.

Being implemented by the Energy Efficiency Services Limited (EESL), the programme has also been named ‘Prakash Path’. Prior to 2014-2015, the electricity bill used to be higher due to the use of outdated bulbs despite the lower demand for electricity. Requiring a solution that would reduce power consumption, and improve lighting but still reduce overall costs, the UJALA scheme has been successful in achieving these objectives. With annual sales of more than Rs 21 billion, India has become the world’s largest LED market as well. Amidst the same, the domestic production of LED bulbs has increased from 1 lakh to 4 crores. As a result of this scheme and increasing the quantity of production, the price of the ‘Make in India’ LED bulb has dropped by approximately 90 per cent.

Using LED bulbs which provide more light but cause less electricity expenditure, has come within the reach of the common Indian as well with the same bulb available for Rs 420 in the year 2015 now selling in the open market for around Rs 75 in 2023. To ensure that the benefits of the scheme are extended to a larger part of the country, various state governments have signed Memorandums of Understanding (MoU) through different State Rural Livelihood Missions. It is through these missions, agencies and self-help groups (SHGs) that the state governments aim to distribute UJALA appliances. Along with the same, smart LED lights and efficient DC electric motor fans are bound to replace fans, bulbs, tube lights and street lights, bringing the benefits of UJALA to the masses at optimal extent. In addition, to ensure that maximum outreach is reached, the nodal agency of the programme EESL has partnered with the Department of Posts to distribute UJALA devices using the latter’s nationwide network to offer a convenient retail counter in rural areas of the country.

Therefore, it is through this new energy revolution in the country that the nation has saved crores of rupees via the dual process of ensuring significant reductions in the cost of the LEDs as well as the savings achieved in the electricity bills of consumers. However, the benefits achieved until now may not convert to long-term achievements unless the adoption continues on a steady level to the last person at the bottom of our society. The availability and access to energy to the common people at an affordable price are the catalysts for inclusive growth and are major instruments for complacent life. This growth ideally should be attained in a sustainable manner while addressing climate change concerns. This would ensure that both the energy as well as climate crisis is averted.

Source: ANI

The UJALA (Unnat Jyoti by Affordable LEDs for All) scheme is aimed at promoting the efficient usage of energy at the residential level by using energyefficient appliances and aggregating demand to reduce the high initial costs

INDIA MAY EXEMPT 30 GW OF SOLAR PLANTS FROM EQUIPMENT DUTY: SOURCES

India may exempt some solar projects from paying duties on equipment imports, according to government and industry sources, to bring renewable-energy capacity additions back on schedule and lower consumer power tariffs.

COMPOSITE MATERIALS DOMESTIC CONSUMPTION TO TOUCH 7.68 LT BY 2027: REPORT

P

The consumption of composite materials in India is expected to witness a sharp uptick and touch 7.68 lakh tonne (LT) by 2027, led by demand from sectors like renewable energy, electric vehicles, defence, among others, according to a report. Composite materials or fibre-reinforced plastics help in circular economy as these are manufactured by combining multiple materials with different properties. Examples of composite materials are polymer matrix, metal matrix, ceramic matrix composites and carbon matrix etc.

“The Indian composites material industry is taking the consumption from 5,11,900 tonnes of composites materials in 2021 to 7,68,200 tonnes in 2027,” FRP Institute said in its latest research.

The composites materials market is also expected to grow at a CAGR of 6.9 per cent over the next five years to reach USD 2.01-billion in 2027 from USD 1.26 billion last year, the Chennai-based body said. The major growth drivers for the industry will be increasing demand from sectors like electrical vehicles (EVs), renewable energy, transportation and construction industries, consumer and white goods, and defence. Government projects like smart cities, hydrocarbon, freshwater transportation, sewage treatment system, rehabilitation of water and sewage pipelines will also aid the growth of composites materials consumption. According to the report, India has an extremely low per capita consumption of composites at 0.37 kg as compared to matured markets such as the US with 11.5 kg followed by Germany at 7.7 kg. FRP Institute along with industry stakeholders will discuss the ways and opportunities to increase the consumption of the materials in India at the upcoming ‘The International Conference and Exhibition on Reinforced Plastics (ICERP 2023) scheduled for January 18-20, 2023 in Mumbai.

Source: PTI

rojects with 30 gigawatts of capacity will benefit, the sources said. In March 2021, the government announced 25% basic customs duties on solar photovoltaic cells and 40% on solar photovoltaic modules with effect from April 1, 2022 in order to block Chinese imports and encourage indigenous manufacturing. Exemption is being considered for projects that were awarded under tariff-based bidding by central agencies before the announcement was made on March 9, 2021, according to a government official and two company executives privy to the matter. They asked not to be named. The exemption would speed up implementation of the projects, which have been delayed by at least a year. The finance ministry declined to comment and the Ministry of New and Renewable Energy did not immediately respond to a query sent by Reuters.

The official added that the finance ministry was considering exempting these projects in the Feb. 1 budget for the fiscal year beginning April 1. In September, the government provided partial relief to developers by allowing such solar projects to pass on price increases due to taxes to consumers after approval from power regulators. That resulted in higher power tariffs and delays as developers went through the procedures.

The industry officials said these projects were under cost pressure because their developers had quoted aggressively low tariffs to win contracts in auctions held by central agencies in 2020-21, but had not expected to pay the import duties. Solar power projects with a combined capacity of at least 30 gigawatts have been either delayed or are facing an uncertain future due to the increase in module prices and also due to supply constraints, according to the National Solar Energy Federation of India.

More than 90% of equipment for the Indian solar-electricity industry comes from China. Domestic manufacturing has not developed far, despite government support. Imported solar modules cost about 40 cents per watt of capacity while domestic ones cost 37 cents per watt. This is against 27 to 28 cents per watt for imported modules three years ago.

Source: reuters

Composite materials or fibre-reinforced plastics help in circular economy as these are manufactured by combining multiple materials with different properties

JGU ESTABLISHES INDIA’S 1ST RESEARCH CENTRE FOR G20 STUDIES

O.P. Jindal Global University (JGU) has taken efforts to build this Centre in the light of India assuming the G20 presidency from December 1, 2022. It is a fantastic opportunity for India to play a leadership role in promoting transformative ideas for making this institution more relevant and impactful.

O.P. Jindal Global (Institution of Eminence Deemed to be University), JGU, has announced the establishment of the Jindal Global Centre for G20 Studies. This will be the first research centre established by any Indian university that will exclusively focus on research, thought leadership and capacity building initiatives relating to G20. O.P. Jindal Global University (JGU) has taken efforts to build this Centre in the light of India assuming the G20 presidency from December 1, 2022. It is a fantastic opportunity for India to play a leadership role in promoting transformative ideas for making this institution more relevant and impactful. G20 is an inter-governmental forum that has 20 countries and the European Union as its members. Its main objective is to address issues relating to the global economy, especially on matters relating to international financial stability, climate mitigation and sustainable development. What needs to be recognised is that the G20 comprises the world’s largest economies — both industrialised and developing countries. Remarkably, G20 accounts for around 80 per cent of the gross world product (GWP), 75 per cent of the international trade, two-thirds of the global population, and 60 per cent of the world’s land area.

The Jindal Global Centre for G20 Studies (JGC4G20) at O.P. Jindal Global University will have five major objectives:

First, to develop a strong vision for enabling academic institutions across the G20 region to build international collaborations between them;

Second, to launch new initiatives to promote G20 studies and greater understanding of the countries in G20 in all its dimensions across other Indian higher education institutions;

Third, to organise periodic lectures, seminars and conferences of topical relevance to India-G20 cooperation in partnership with other universities, think tanks and government officials;

Fourth, to build and strengthen capacities for pursuing research relating to G20 countries within India with a strong focus on joint research between institutions in G20;

Prof. (Dr) C. Raj Kumar, Founding Vice Chancellor of JGU, observed: “As India assumes the Presidency of G20, this will be the first such Centre established by any Indian university. I am happy to announce the ap pointment of Prof. (Dr) Mohan Kumar, India’s former ambas sador to France and Dean of the Office of International Affairs & Global Initiatives at JGU, as the Inaugural Director of the JGC4G20. This will be a university-wide re search centre, which will pursue five major initiatives in this year of India’s Presidency of G20.

“First, JGCG20 will host a Global Conference of 200 Universities from G20 Countries with representation of 10 universities from each G20 partner to focus on the future of education; second, to organise a G20 Ambassadors Conclave that will promote a dialogue on the future of diplomacy; third, to host a Global Justice Colloquium with a focus on bringing together lawyers and judges of the G20 countries to discuss and debate on the state of the justice systems across G20; fourth, to host the World Sustainability Forum for bringing together thought leaders and institutions in G20 to engage on issues relating to environment and climate change; and fifth, to host the Global Public Policy and Development Dialogue for bringing together policy makers and academics in G20 to discuss issues confronting the world of policy and development.”

Commenting on the significance of this initiative, Prof. Kumar observed: “The vision for proposing a G20 Global Education Forum should enable the opportunity for another summit hosted in parallel to the G20 summit, which will bring together the leading universities of the G20. The vision of this Centre is to transcend the functioning of G20 that is currently limited to governmental organisations, politicians and diplomats. The democratisation of the functioning of G20 as an international forum will require a complete reimagination involving other participants, especially the young people who are part of the universities of the world. Their involvement and the participation of universities, including their researchers, albeit in a separate forum hosted on the sidelines of the G20 Summit, will send a powerful signal to make the working of G20 more inclusive.”

The Director of the newly established JGC4G20, Ambassador Prof. (Dr) Mohan Kumar has had a remarkable career in the Indian Foreign Service spanning over 36 years and culminating in him becoming India’s Ambassador to France based in Paris. Under his watch, the Indo-French strategic partnership was strengthened and consolidated in spheres such as defence, space, nuclear and solar energy, smart cities and investment. Earlier, he was India’s Am bassador to the Kingdom of Bah rain, where he witnessed and dealt with a strategically complex region characterised by events such as the ‘Arab Spring’. Ambassador Dr Mohan Kumar has enormous exper tise in the crucial area of interna tional trade. He was India’s lead negotiator first at the GATT (General Agreement on Tariffs and Trade) and then at the WTO (World Trade Organisation) in areas such as Intellectual Property Rights, Services, Dispute Settlement, Rules and Technical Barriers to Trade. Ambassador Dr Mohan Kumar also has a strategic understanding of India’s ties with some of her key neighbours such as Bangladesh, Sri Lanka, Myanmar and Maldives. He holds a Master’s in Business Administration (MBA) from the Faculty of Management Studies, University of Delhi, and a Doctorate (Ph.D.) from Sciences Po University, Paris. Ambassador

Dr Mohan Kumar has also served as the Chairman of Research and Information System for Developing Countries (RIS) from June 2018 to June 2022. He is the author of a book titled ‘Negotiation Dynamics of the WTO: An Insider’s Account’, published by Palgrave Macmillan (2018). On his appointment as Inaugural Director of the JGC4G20, Prof (Dr) Mohan Kumar said: “I am absolutely delighted to have been given this responsibility at a time when India has just assumed the presidency of the G20. G20 has gradually emerged as an indispensable multilateral forum on the international landscape. It has also expanded its remit to dealing with the burning problems of the day, after starting off in 2008 as an institution which was aimed at management of the global economy.” The newly established research centre, Prof (Dr) Mohan Kumar noted, will undertake independent and inter-disciplinary research in the following areas already established by India as priorities for its presidency. These are, inter alia:

(1) Accelerating SDGs (Sustainable Development Goals) in Education and Health;

(2) Accelerated, Inclusive and Resilient Economic Growth;

(3) Green Development and Climate Finance;

(4) Multilateral Institutions for the 21st Century;

(5) 3 Fs: Food, Fuel and Fertilizers; and

(6) Gender: Women-led development.

“The vision of JGC4G20 is to draw upon the tremendous ex

pertise in all the schools of JGU and bring it together underone umbrella. The JGC4G20 thus hopes to make a substantial contribution not just in the presidency year of India, but well beyond in the future,” Prof. (Dr.) Mohan Kumar said. O.P. Jindal Global University (JGU) is a research-intensive university with the prestigious Institution of Eminence (IoE) status accorded by the Government of India. In a short life span of 13 years, JGU has been ranked for the last three years in a row as the ‘Number 1 Private University of India’ by the QS World University Rankings (2022). One of the reasons for JGU’s remarkable rise is research led by the outstanding contributions of its 1,000+ full time faculty members who come from 48 countries. JGU has more than 55 interdisciplinary research centres that are faculty-run and student-driven (over 10,000 students), spread across 12 schools, and covering a variety of issues in humanities and social sciences. Some of these Research Centres have a country-specific focus, such as the Centre for Israel Studies, the Centre for Afghanistan Studies, the Centre for India-Australia Studies, and the Centre for India-China Studies. All these centres are promoting knowledge and doing policy advocacy relating to these specific countries and are quite actively engaged in improving India’s relations with those countries. They also administer a wide variety of academic courses and degree programmes for students in collaboration with partner universities, besides governments of those countries.

Source: PTI

INDIA AIMING AT CAPTURING 10% OF GLOBAL GREEN HYDROGEN MARKET: GOVT

But, experts say it is going to take at least 5-7 years for India to actually starting exporting green hydrogen on the scale the government is envisaging. This is because till 2030 India has set a target of producing 5 MMT of green hydrogen annually, which will primarily be used for domestic consumption in hard-to-abate sectors.

The government has put a number to its aim of being a leading exporter of green hydrogen in the world. Setting an ambitious target of capturing about 10 percent of the global green hydrogen market which is expected to touch 100 million metric tonne (MMT) by 2030, senior officials in the ministry of new and renewable energy (MNRE) informed. On January 13, the government released a blueprint for its ambitious National Green Hydrogen Mission (NGHM) with a total initial outlay of Rs 19,744 crore, of which Rs 17,490 crore will be for the production-linked incentives for producing green hydrogen and manufacturing electrolysers. “India wants to capture at least 10 percent of the global green hydrogen/green ammonia market. But, the journey to exporting green hydrogen will not be an immediate thing. It may at some point happen parallel to meeting the domestic demand of green hydrogen,” said a senior MNRE who is not authorised to speak publically. The NGHM document too talks about India exporting green hydrogen at length. “Considering the renewable energy potential and the enabling framework proposed under the mission, India’s green hydrogen production costs are expected to be among the lowest in the world. A global demand of over 100 MMT of green hydrogen and its derivatives like green ammonia is expected to emerge by 2030,” the document stated. “Many countries are likely to rely on imports due to constraints on land and renewable resources required to produce green hydrogen domestically. Aiming at about 10 percent of the global market, India can potentially export about 10 MMT green hydrogen/green ammonia per annum,” it read. India is eyeing the European Union (EU), which has set a target of importing 10 MMTPA of green hydrogen by 2030. “Not just the EU, we are also looking at exporting green hydrogen to Japan, which plans to import 5-10 MMT of green hydrogen by 2050. Similarly, South Korea also plans to import nearly 2

MMT,” said the official quoted above. To lay the ground for creating an export infrastructure, the government has committed that green ammonia bunker (marine fuel) and refuelling facilities will be present in at least one port by 2025 and that such facilities will be established at all major ports by 2035. Besides, oil and gas PSUs will be required to charter at least one ship each to be powered by green hydrogen or derived fuels by 2027. Thereafter, the companies will be required to add at least one ship powered by such fuel for each year of the mission. These PSUs currently charter about 40 vessels for the transport of petroleum products, as per the mission. But, experts say it is going to take at least 5-7 years for India to actually start exporting green hydrogen on the scale the government is envisaging. Ramanuj Kumar, Partner at Cyril Amarchand Mangaldas, said India needs to address two key challenges to push its green hydrogen production scale to the level of exporting carbonfree gas. “First, the regulatory framework and standards of the green hydrogen export market need to be harmonised between India and the target countries. How these countries are defining green hydrogen and setting production standards and transportation infrastructure regulations around that will be a key aspect in this,” he said.

Source: PTI

NGEL, HPCL PARTNER TO DEVELOP GREEN ENERGY PROJECTS

NTPC Green Energy Ltd (NGEL) has signed an agreement with Hindustan Petroleum Corporation Ltd (HPCL) for the development of renewable energybased power projects.

Under the agreement, NTPC said its renewable energy arm — NGEL — will also supply 400 MW round-the-clock to HPCL.

“NGEL and HPCL signed a non-binding Memorandum of Understanding (MoU) on for development of renewable energy based power projects to tap business opportunities in RE (sector) and supply of 400 MW round the clock renewable power for requirements of HPCL,” NTPC said in a statement.

PUNE MUNICIPAL CORPORATION COLLABORATES WITH THEGREENBILLIONS FOR DEVELOPING GREEN HYDROGEN FROM WASTE

TGBL’s wholly owned subsidiary Variate Pune Waste to Energy Pvt. Ltd. (VPWTEPL) will be managing and utilizing the municipal waste of 350 TPD of Pune for generating hydrogen for a period of 30 years. The project aims to extract clean hydrogen from municipal solid waste in a pioneering initiative. The company is discussing with other state municipalities across India to implement and set up similar plants in the future. Broadcast Engineering Consultants India Limited (BECIL), a Central Public Sector Enterprise of Government of India will provide the Project management consulting and Variate Pune Waste to Energy Private Limited, a wholly owned subsidiary of TheGreenBillions Limited, will implement the project to convert Pune’s municipal non-recyclable waste into hydrogen. The Refuse Derived Fuel (RDF) from the waste would later be utilised to generate hydrogen using Plasma gasification technology. The technology has been developed while closely working with the Bhabha Atomic Research Institute (BARC) and the Indian Institute of Science, Bengaluru.

Mahatma Phule Renewable Energy & Infrastructure Technology (MAHAPREIT), a Maharashtra government undertaking, has proposed to offtake the hydrogen generated at the facility and develop logistical infrastructure for hydrogen transportation to industries for this. For the first phase of the project, MAHAPREIT proposes blending in the city gas distribution network in Pune by partnering with Maharashtra Natural Gas Ltd. (a joint venture of GAIL (India) Ltd. and Bharat Petroleum Corporation Ltd. (BPCL). The joint efforts by MAHAPREIT and GAIL can help the proposed hydrogen blending project set a benchmark for a circular economy with hydrogen generated from the city’s waste and blended back into its gas distribution network.

According to Prateek Kanakia, PhD, Chairman and Founder, The GreenBillions Limited, “The growing Indian economy is witnessing an increase in demand for energy from all sectors. The situation has put a lot of pressure on Indian energy reserves to meet the ever-increasing demand. It has increased the focus on identifying and developing alternative energy sources, mainly green and clean sources that do not harm the environment. With the rising demand from the Ministry of New and Renewable Energy (MNRE) to generate Clean Hydrogen, it is essential to find alternatives to foster clean hydrogen in the country. We recognise that an efficient garbage collection and disposal system is crucial for quality urban solid waste management. Especially in India, unsustainable garbage management affects living spaces for many cities. Our association with the Pune Municipal Corporation is a step forward in mitigating these demands.” Source: ANI

Official statement from Broadcast Engineering Consultants India Limited (BECIL), “With this project, Pune city can reduce upto 2.5 million MT CO2e, more than 3.8 million MT waste would be diverted from the landfill and around &gt;1,80,000 estimated households will be served directly. The Municipal solid waste (MSW) otherwise being dumped in low lying urban areas will be diverted, saving upto 689.5 cubic meter space every day and 25.16 hectare of precious land per year.” This waste will comprise biodegradable, non-biodegradable and domestic hazardous waste and would be segregated at the TheGreenBillions’s facility in Pune using optical sensor technology. The wet waste from the facility will be used to generate humic-acid rich bio-fertilisers, which are considered better than conventional bio-fertilisers and has low carbon emissions. This project aims to demonstrate the technological and financial feasibility of waste to hydrogen generation. With a strong focus of the Government of India on hydrogen adoption, the projects like these will not only help India achieve decarbonization goals but will also reduce significant emissions from waste disposal. Once achieved, the goals will help India achieve the vision of Swachh Bharat and also match the hydrogen ambitions.

The MoU was signed in the national capital in the presence of NTPC CMD Gurdeep Singh and Shuvendu Gupta, Executive Director – Bio Fuels & Renewables, HPCL, and other senior officials of both the companies.

Source: PTI

TheGreenBillions Limited (TGBL), a company specialising in consulting, managing, and executing sustainable initiatives, has announced its association with The Pune Municipal Corporation (PMC) to set up first plant in India to extract green hydrogen from biomass and municipal solid waste.

CYRIL AMARCHAND MANGALDAS ADVISES BANK OF BARODA LED CONSORTIUM ON INR 3,940 CRORE CREDIT FACILITY EXTENDED TO JSW RENEWABLE ENERGY VIJAYANAGAR

For setting up a 825 MW AC hybrid power project (i,.e. 225 MW AC Solar Project and 600 MW Wind Project) at Ballari and Koppal districts in the State of Karnataka (Project) for meeting the captive power requirement of JSW Steel Limited (JSW Steel).

This credit facility is secured by inter alia creating a first ranking pari passu charge/ mortgage on all movable, intangible assets and immovable assets(excluding forest land) in relation to the Project, pledge over certain percentage of equity shares and the other securities issued by JSW Renewable to JSW Future Energy Limited (promoter of JSW Renewable). The Project & Project Finance Practice of Cyril Amarchand Mangaldas advised and assisted the consortium of lenders led by Bank of Baroda on structuring, drafting, and finalising the financing documents. The Firm also advised on the sell down of a part of the Loan by Bank of Baroda to Central Bank of India and Bank of Maharashtra. The Project Financing team was led by Ramanuj Kumar, Partner; with support from Aiswarja Mohanty, Principal Associate; Shrey Srivastava, Senior Associate; Shradha Sharma, Associate. Tanvi Ramdas, Associate; and Umang p, Associate; provided assistance related to execution of transaction.

The deal team for JSW Renewable comprised of Mr. Rakesh Punamiya and Mr. Vaibhav Deshmukh. The transaction was signed on 10th August 2022; and closed on 16th August, 2022.

GOLDMAN SACHS RAISES

$1.6 BLN PRIVATE CAPITAL FOR CLIMATE FUND

The final close of GSAM’s Horizon Environment & Climate Solutions I comes as investors increasingly turn their attention to companies that can help in the world’s fight against global warming

Goldman Sachs Asset Management, the fund arm of Goldman Sachs, said it had raised $1.6 billion for its first private equity fund focused on investing in companies providing climate and environmental solutions. The final close of GSAM’s Horizon Environment & Climate Solutions I comes as investors increasingly turn their attention to companies that can help in the world’s fight against global warming. The fund, launched in 2021, provides so-called “growth capital” to companies further along in developing solutions in clean energy, sustainable transport, waste and materials, sustainable food and agriculture and ecosystem services.

Lots of organisations are trying to operate more sustainably and looking for solutions that enable them to do that, Ken Pontarelli, head of sustainable investing for private markets within Goldman Sachs Asset Management, told Reuters. “The centre of the bullseye that we look for … is if we can invest in companies that have products and services that enable other organisations to cost-effectively meet their sustainabilty objectives, that’s a winner.”

GSAM’s Horizon fund has made 12 investments so far of between $80 million-$90 million including in Northvolt, a Swedish battery developer and Recover, a company that recycles textile waste to create sustainable fibres. Each investment targets and is measured on specific sustainabilty outcomes such as acres of wetlands restored or tons of CO2 sequestered, Pontarelli said. While investors have long invested in real assets such as wind and solar, or in early stage venture capital, the demand for the fund showed they were increasingly willing to back bigger companies, Pontarelli said.

“In 2019 you saw greater willingness of institutional allocators to think about climate as a big theme beyond just the hard assets,” he said. “In every quarter we’ve seen more client interest in and around this theme.”

In December private equity firm General Atlantic launched a $3.5 billion climate fund while a month earlier Morgan Stanley Investment Management launched a $1 billion private equity strategy to invest in companies that will help reduce 1 gigatonne of carbon dioxide emissions.

Source: Reuters

GREEN BOND

INDIA SET TO TEST MARKET WITH DEBUT $2 BILLION SALE

India is testing the waters of a sluggish global green bond market with its debut sale this month that aims to raise $2 billion for sustainable projects.

Indian officials have been clear they want a significant “greenium” for the sale to lower the nation’s borrowing costs, and that will require attracting enough foreign investors to the rupee-denominated debt. Green bond sales dropped for the first time in a decade last year, as monetary policy tightening hit issuance, and as asset managers came under fire for alleged greenwashing. Companies and governments worldwide raised a total of $863 billion in green, social and sustainability-linked bonds in 2022, a 19% drop from the record $1.1 trillion in 2021, according to data compiled by Bloomberg. So far this year, at least two governments have tapped the green bond market, led by Hong Kong, which sold the equivalent of $5.8 billion of debt across three currencies. Ireland pulled in €35 billion ($37 billion) of orders for a €3.5 billion sale of 20-year bonds.

India is putting its first sovereign green bond on the radar of some of its biggest domestic asset managers, including state-run insurers and pension funds as well as foreign investors from Japan to the UK to drum up demand, according to people familiar with the matter.

Below are some charts that put context around India’s green bond and how it fits into the nation’s climate goals. India plans to sell the debt in two auctions on Jan. 25 and Feb. 9. Green bond issuance fell in 2022 for the first time since the nascent market became of interest to major asset managers.

We could possibly see quite a healthy level of interest, especially from the domestic investors, given the broader macro environment, with rates and inflation peaking, said Nicole Lim, fixed income ESG analyst at abrdn plc in Singapore.

India may be a late comer to the green bond market in Asia, but sovereign issuers are still a select club outside Europe. That could burnish the appeal of its sale for foreign investors with a green mandate, despite the exchange rate risks that come with a rupee-denominated bond.

Raising sufficient funding at a low cost will be crucial for meeting the renewable energy goals set by India, which relies on fossil fuels for more that half its energy needs.

GREEN MANDATES RENEWABLE TARGETS ADAPTATION GAP

Besides building out renewable power capacity, money raised from the sale may be used to build infrastructure that boosts its resilience to rising temperatures and extreme weather. Globally, funding for climate adaptation has fallen far short of a 5050 split with mitigation — which aims to reduce emissions — which was part of the 2015 Paris agreement.

UNDERSTATED MARKET

Indian corporate issuers have not always found it worth the cost and effort to get a green tag on their debt, given the absence of domestic ESG debt funds. The establishment of a clear benchmark with a sovereign bond and the potentially greater investor interest it may bring could change that. Companies in India have issued more than $26 billion of this debt, mostly for renewable energy projects.

Source: bloomberg

THREE FLOATING SOLAR POWER PLANTS TO BE SET UP IN MP WITH INVESTMENT OF RS 7500 CRORE

The session was chaired by Sanjay Dubey, Principal Secretary, Energy and Renewable Energy Department, Madhya Pradesh. The work on three floating solar power projects at a total cost of Rs 7,500 crore will start soon, officials said. These projects will be in

addition to the 600 MW floating solar power plant in Omkareshwar dam area of Khandwa district. Memorandums of Understanding (MoUs) worth a total of Rs 16,000 crore in the field of energy and renewable energy were signed at the summit, officials said. Madhya Pradesh’s New and Renewable Energy Minister Hardeep Singh Dang assured the investors that they will not face any problems if they set up their units in the state.

WHAT’S NEXT FOR GRID STORAGE AFTER A BOOMING BUT CHAOTIC YEAR?

Energy storage succeeded like never before in 2022 — and the sheer scale of this newfound success is causing problems. A few years ago, batteries played an insignificant role on the U.S. grid, or any grid, really. Advocates talked up the theoretical benefits batteries could deliver for a cleaner, more efficient grid, if only someone would notice how great they were and, like, pay them for it. How quickly things change. In the rosy dawn of 2022, the federal government predicted that the U.S. would add 5.1 gigawatts of batteries over the course of the year, equating to 11 percent of new power plant capacity. At the close of the year, the count looked more like 5.4 gigawatts, according to the storage analysts at Wood Mackenzie.

Up to 2020, we’d never had a single year break a gigawatt of storage deployments, said Jason Burwen, an architect of U.S. grid-storage policy and vice president of energy storage at the American Clean Power Association. “That is a bonkers rate of acceleration.”

Batteries have taken over the market for new power capacity in California. The wildcat free-marketeers of Texas chase close behind in their zeal for this new type of power plant. And the authors of the Inflation Reduction Act delivered the storage industry’s most ardent desire: its very own tax credit. It’s off to the races. But while that phrase generally connotes speed, the storage market today is the kind of race where the starting gun unleashes sheer chaos, as more contestants than the course has room for jockey to pull to the front of the pack. Just as everybody’s decided they want to install grid batteries, the batteries themselves have become nearly impossible to get ahold of. Factory capacity to manufacture lithium-ion batteries lags demand by a few years. But now both electric-vehicle manufacturers and grid-storage companies are clamoring for more than ever before. Those who can’t buy in historically unprecedented bulk will have to wait a few years.

The annual ritual of tracking lithium-ion batteries’ inexorable cost declines crashed into a hard reality this year: Prices rose for the first time since BloombergNEF started tracking them a decade ago. Startups shouting into the wind that they had invented viable alternatives to lithium finally found some receptive ears. The scarcity of new batteries even inspired investors to put money behind used electric-vehicle batteries as a grid-storage resource — one of those supposed slam dunks that nobody has managed to dunk thus far.

BUY BIG OR GO HOME: THE ERA OF PORTFOLIOLEVEL STORAGE PROCUREMENT

Electric-vehicle makers have always gotten first dibs on battery supply because they buy so much more volume than grid-storage companies. But developers used to be able to go to market when they had a project ready to build and get some high-quality lithium-ion batteries to power it. Now, it’s not so easy. “Our expectation is that most of the supply is spoken for for 2023, and a lot of 2024 is probably spoken for as well,” said Burwen.

In such a moment of scarcity, developers are unlikely to get a seller’s attention unless they stack their shopping lists for many battery projects and buy at the portfolio scale instead. “The project is probably not going to get the capacity — the portfolio is,” said Kelcy Pegler, CEO of storage integrator FlexGen, during a September interview.

This principle trickles down to the storage integrators, who buy battery cells and assemble them into containers with the controls and power electronics needed to make a viable energy-storage facility. In 2022, integrators started touting their own battery purchases, to signal to customers that they actually had something to sell. Thus, at RE+ in September, the biggest annual conference for the solar and storage industry, FlexGen held a signing ceremony to celebrate its purchase of 10 gigawatt-hours of liquid-cooled lithium-ion batteries from Chinese manufacturing giant CATL.

The work of installing three floating solar power plants in water reservoirs in Madhya Pradesh with a total investment of Rs 7,500 crore will start soon, state officials said. The information was given at a session focusing on renewable energy on the first day of the “Invest Madhya Pradesh-Global Investors Summit” organized by the state government here.

Grid-scale batteries are finally taking off — but now supply can’t keep up with demand. Here’s a recap of what went down in 2022 and a preview of the year ahead.

“In a world of haves and have-nots, FlexGen customers will have battery capacity,” Pegler told Canary Media. Another leading U.S. storage integrator, Oregon’s Powin Energy, announced in February it was buying 5.8 gigawatt-hours of capacity to deliver across multiple developer customers over the next three years. Then in May, it said it would buy a stupendous 28.5 gigawatthours of battery cells from Norway’s Freyr from 2024 through 2030. Locking in massive cell purchases gave Powin the assurance to sell big deals of its own. In May, it pledged 2.5 gigawatthours to Ameresco. Later in the year, Powin announced a deal to supply 1.7 gigawatt-hours over two years to Akaysha Energy, an Australian storage developer that got acquired by BlackRock last summer. With battery supply secured, Akaysha subsequently announced it would build the world’s largest battery to replace a massive retiring coal plant.

Any one of these portfolio deals constitutes more storage capacity than the entire annual U.S. storage market just a few years ago.

ALTERNATE TECHNOLOGIES SHOOT THEIR SHOT

The increase in battery costs that BloombergNEF identified won’t persist past the medium term, Burwen said. “High prices become really good reasons to invest in expansion of supply and innovations to produce that supply more efficiently,” he noted.

Plenty of startups have innovated to make ways to store energy without relying on the lithium-ion monoculture. For years, mass-produced lithium-ion batteries crushed all competitors, just like mass-produced crystalline-silicon solar panels dominate their market. But challengers seized on the logjam in mainstream storage to put bigger numbers on the board in 2022. Battery-controls startup Element Energy put together the largest deal thus far for storing grid power in used electric-vehicle batteries. It will supply 50 megawatt-hours of “second-life” batteries to renewables powerhouse NextEra Energy Resources to store power at a wind farm in Texas. The actual project still needs to get built, but Element secured $7.9 million from the Department of Energy to construct it. And Element is advertising that it has another 2.5 gigawatt-hours of lightly used batteries to sell to other customers after this initial project is done (see portfolio-level purchasing above). Element investor Tim Woodward of Prelude Ventures said the Texas pilot aims to prove second-life battery projects can serve the market’s need for more storage supply. “Because of that demand, there’s a willingness to try something,” he said. “If they try it and it works, it opens up the whole opportunity for us.”

Few developers today trust used batteries because there’s an elevated risk that they catch fire compared to new batteries (see below). But if you can’t even buy new batteries, and the used ones are proven safe and cost a lot less, customer attitudes could shift. NextEra’s as big a heavyweight as you could ask for to legitimize this long-discussed, little-actualized source of cheap storage. Other alternatives are further along. ESS closed a multiyear, 2-gigawatt-hour portfolio deal (look at that!) with Sacramento’s municipal utility to deploy iron flow batteries. That’s an alternative storage tech touted as fire-resistant, durable and capable of economically storing energy for many more hours than lithium-ion does. Nobody’s installed that much flow battery capacity in the U.S., but thanks to Sacramento’s rapidly approaching zero-carbon power deadline and the lack of other types of battery capacity, ESS closed the deal. And though we’re still waiting for actual, large-scale projects built with lithium-ion alternatives, the startups pioneering them raised a lot of money this year. Form Energy took the top prize with its October raise of $450 million to commercialize its iron-air batteries. Also notable: Goldman Sachs’ private-equity division invested $250 million in Hydrostor, which stores energy by compressing air into purposebuilt caverns.

FIRES STILL FRUSTRATE LITHIUM-ION’S SUCCESS STORY

At the grand unveiling of a massive grid battery in Moss Landing in June, Elliot Mainzer, president and CEO of California’s independent grid operator, heralded the dawn of “a golden age of energy storage here in California.” Barely three months later, the Tesla-supplied, 182.5-megawatt Elkhorn facility Mainzer spoke at caught on fire. As far as fires go, it was uneventful — nobody got hurt, and the blaze didn’t spread beyond a single battery container.

What made the small conflagration reverberate was that emergency authorities shut down traffic around the coastal hub south of the San Francisco Bay and warned residents to shelter indoors in case of noxious air. It turned out that no notable air pollution resulted from the fire, but the surrounding community was alarmed by the experience, and businesses had to close temporarily. Compounding matters, Vistra’s even larger battery next door to Elkhorn had already been shut down for two separate fire incidents in the preceding year. That September fire captured the energy-storage industry at an awkward growth stage. After a nasty 2019 battery fire that injured four first responders in Arizona, storage providers across the board stepped up and improved designs to avoid hurting anyone in the future. Those human-safety measures have succeeded, but the fires haven’t stopped. They’ve made it hard for the Moss Landing battery to deliver the golden future that it promised as the largest source of carbon-free battery capacity anywhere.

IRA CHANGES THE GAME, BUT NOT IMMEDIATELY

The Democrat-passed Inflation Reduction Act gave energy-storage folks what they’d always pined for: a dedicated tax credit. That will fundamentally alter the market’s trajectory, but the impacts won’t manifest right away. The tax credit technically goes into effect for projects placed in service on or after January 1, 2023, per the statute. The IRS has issued the detailed labor standards companies will have to meet to claim 30 percent of a project’s costs as an investment tax credit. But the industry is still waiting to hear how it can qualify for credit “adders” that reward using domestic content and building in “energy communities,” such as towns that used to host coal power plants. Whether developers can actually nab the 40 or 50 percent tax credits hinges on the fine print (and, for domestic content, a whole lot of new factory construction). Any projects coming online early this year, however, were developed well before anyone knew they’d be getting this credit. A storage plant that made economic sense without a 30 percent discount should be a Hamilton-level smash hit with the credit now available. But storage developers have been slammed by inflation, logistics hang-ups and the market-specific scarcity discussed above. Projects that were contracted before the pandemic-era disruptions, which are actually getting built now, have had to renegotiate contracts with utilities in light of the soaring costs. The first wave of storage developers claiming the tax credit may well need it to save deals that were going underwater.

In the longer term, once people know how to actually claim all the tax credits, the development game will change. The credits will boost all projects across the board, and then nudge companies to focus on geographic areas that are affected by the energy transition.

“The IRA turned a lot of yellow-light projects into blaring green lights,” Pegler said. Independent developers can seize these opportunities in competitive markets. In the many states where utilities run the grid, the outcome depends on getting them to update their planning calculations with the newly reduced costs of grid storage. That typically comes to a head in integrated resource plans (IRPs), where utilities figure out the right mix of power plants for the future.

“The IRP is the new RPS,” said Burwen, referring to the renewable portfolio standards that sparked clean-energy development in the industry’s early years. Going forward, the IRP is “where these decisions will get made. If it’s not done correctly, if you’re using the wrong inputs because you don’t factor in the IRA incentives, that’s going to change your view as to what makes sense.”

Source: canarymedia

PNC EXPANDS ITS ENVIRONMENTAL FINANCE PLEDGE TO $30 BILLION

The PNC Financial Services Group, Inc. announced the expansion of its environmental finance commitment to $30 billion. The bank initially announced in August 2021 a commitment of $20 billion over five years in support of environmental finance. Since then, PNC has completed $9 billion in environmental financing for its customers. This commitment is an extension of PNC’s ongoing support for its customers as they transition to a low-carbon economy, and is complementary to the bank’s Community Benefits Plan, which pledges $88 billion in loans, investments, and other financial support to bolster economic opportunity for low- and moderate-income (LMI) individuals and communities, people and communities of color, and other underserved individuals and communities.

PNC continuously assesses ways in which we, as a financial institution, can support our clients’ ambitions as they work toward their own climate transition goals, said Michael P. Lyons, head of Corporate & Institutional Banking. “The expansion of our environmental finance commitment is a natural next step as client demand increases.”

The $30 billion environmental finance goal is comprised of the following pillars which may evolve over time:

Green Buildings – loans for buildings that meet third party-recognized standards or certifications, including LEED and ENERGY STAR.

Renewable Energy – financing for renewable energy production and transmission, including wind, solar, geothermal and hydropower.

Clean Transportation – financing for zero and low emissions vehicles, electric vehicle charging stations, and zero and low emissions passenger or freight/rolling stock.

Environmental sustainability-linked bonds and loans which align to third-party frameworks such as the Green Bond Principles, and loans linked to environmental Key Performance Indicators (KPIs) or those with designated environmentally sustainable use of proceeds.

As a result of its recent integration of BBVA USA’s footprint, PNC is also planning to establish new, ambitious, science-aligned environmental targets for its operational footprint, including further reducing carbon emissions, and energy and water consumption. These new targets will use a base year of 2022 – the first full year of combined PNC and BBVA USA operations – and will be announced as part of PNC’s Corporate Responsibility Report to be published this year. The PNC Financial Services Group, Inc. is one of the largest diversified financial services institutions in the United States, organized around its customers and communities for strong relationships and local delivery of retail and business banking including a full range of lending products; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management.

Focused on green buildings, renewable energy and clean transportation, commitment deepens the bank’s support of clients transitioning to a lowcarbon economy

NAYARA ENERGY SAYS ON TRACK FOR SETTING UP SOLAR POWER PLANTS

Nayara Energy, India’s second biggest private oil refining and fuel marketing company said its solar power plants which will help cut carbon emissions are on track.

“The company is progressing well on its plans to set up a 10 MW solar power plant at its Vadinar refinery in Gujarat, which will help Nayara mitigate approximately 20,000 tonnes of CO2 emissions every year,” it said in a statement without giving timelines.

It has also initiated the development of a 500 kW captive solar power plant at its greenfield rail-fed fuel depot at Pali in Rajasthan late last year. “Scheduled for commissioning by March 2023, the on-grid solar plant will help Nayara reduce its carbon footprint by preventing 730 tonnes of CO2 emissions per year,” it said. The firm operates a 20-million tonnes-a-year capacity oil refinery at Vadinar in Gujarat and has over 6,500 petrol pumps across the country.

Speaking on the company’s plans, Alois Virag, CEO, Nayara Energy, said, “At Nayara, we are committed to reducing our carbon footprint and enhancing environmental sustainability in our operations. In line with government of India’s focus of increasing the penetration of renewable power in the Power Grid, the commissioning of our refinery and Pali Depot Solar Plants will mark a further step in our transition to cleaner and greener sources of energy.” Nayara commissioned its first 300 kVA solar power plant at its Wardha depot in Maharashtra in March 2019. The plant leads to an annual saving of 550 tonnes of CO2 emissions.

As part of the larger objective to transition to greener sources of energy, its franchisees have transitioned 300 retail outlets to solar power, constituting a total of 2MW power generation, with plans to gradually shift more outlets to solar. In addition, the company has also fostered 175 hectares of voluntary mangrove forestation in the vicinity of its Vadinar Refinery, and aims to further increase the existing mangrove cover by 57 per cent to 275 hectares by 2025. Further, about 3,00,000 trees stand tall as part of Nayara’s green belt within its refinery, and the company plans to expand this green cover by another 25 per cent over the next three years.

Source: PTI

INDIA LAUNCHES FIRST-EVER SOVEREIGN GREEN BONDS AUCTION

The Reserve Bank of India will auction 160 billion rupees ($1.93 billion) worth of sovereign green bonds in two tranches, the central bank said, in the government’s first-ever such debt sale to raise funds to finance clean projects.

The RBI will auction 5-year and 10-year green bonds worth 40 billion rupees each on Jan. 25 and on Feb. 9 in what will be a uniform price auction, the central bank said. Finance Minister Nirmala Sitharaman announced the plan to issue sovereign green bonds in the 2022-23 budget as Asia’s third-largest economy attempts to tap the domestic debt market to finance green infrastructure projects.

The proceeds will be used to fund solar power projects, followed by wind and small hydro projects and other “public sector projects which help in reducing the carbon intensity of the economy,” the RBI said.

A green finance working committee, headed by the Chief Economic Adviser V Anantha Nageswaran, will select public sector projects for green financing from those submitted by government departments. The committee’s choice will be guided by environment specialists and representatives from the ministry of environment, forests and climate change, the government said. The committee will identify fresh projects each year and ensure the proceeds from the bond sales are allocated within 24 months from the date of issuance. Market participants expect foreign investors and foreign banks to be active in the auction but do not see local investors showing any major interest.

“Local primary dealers may not be able to do much as there has been no major briefing regarding green bonds and since the announcement of the issuance, foreign banks have been in constant touch with the government,” a trader with a primary dealership said.

The investment in green bonds can qualify towards statutory liquidity ratio (SLR), the minimum percentage of deposits commercial banks are required to invest in liquid assets, such as government bonds. The investment in green bonds will also be designated as specified securities under the ‘Fully Accessible Route’ for foreign investors, where unlimited investment is allowed. ($1 = 82.7330 Indian rupees)

Source: Reuters

DIGITAL EDGE, NIIF AND AGP ANNOUNCE PARTNERSHIP TO BUILD

PAN-INDIA DATA CENTER

PLATFORM

The partnership’s first project is a US$2bn investment to build one of the largest data centers in India

Digital Edge (Singapore) Holdings Pte. Ltd. (“Digital Edge”), National Investment and Infrastructure Fund (“NIIF”) and AGP DC InvestCo Pte Ltd (“AGP”) have entered into a partnership to develop a pan-India portfolio of hyperscale data centers. The facilities will operate under the brand name Digital Edge DC and intend to support the country’s ongoing digital transformation and provide much needed capacity to the rapid growth of India’s cloud industry. The partnership’s first project is a greenfield 300MW hyperscale facility in Navi Mumbai, which is the country’s biggest data center hub offering easy access to infrastructure, including power and fiber connectivity. The facility will be one of the largest data centers in India and is designed to cater to hyperscale deployments, leveraging Digital Edge’s cutting-edge engineering architecture to achieve market leading PUE (Power Usage Effectiveness) and WUE (Water Usage Effectiveness). Construction of the 47 acre site will commence in early 2023 and the facility will be built in multiple phases. Upon completion, the data center will be fully operated by and marketed by Digital Edge DC.

This partnership with NIIF and AGP marks Digital Edge’s entry into the India market, growing its platform to six countries across Asia. NIIF will leverage its local and operational expertise in developing platforms as well as its strong infrastructure investment experience, and AGP, a sustainable-focused real assets manager, will bring on-the-ground real estate development and construction experience. The partnership aims to source power for its portfolio of data centers predominantly from renewable energy sources, drawing on the partner’s renewable energy development capabilities. According to IDC, India’s public cloud services market is expected to grow at a CAGR of 24.1% for the period 2020-2025[1], driven largely by the accelerated adoption of digital transformation initiatives, the roll out of 5G telecom services across the country and the expected transition to hybrid work following the COVID-19 pandemic. This combined with India’s significant population – which is also the highest data consumer in the world – is further fuelling demand for the local data center industry which, according to Structure Research, is expected to grow to 1073MW of IT load capacity by 2026[2].

Andrew Thomas, Senior Managing Director at Stonepeak, said, “We believe that this is an opportune time for Digital Edge to enter the market in Navi Mumbai. Critical data center infrastructure has a long runway for growth in the country as India’s digital economy continues to rapidly expand. We have been excited to partner with the Digital Edge team since the platform’s inception in 2020 and, in NIIF and AGP, we have found ideal partners to expand into India.”

Vinod Giri, Managing Partner of the NIIF’s infrastructure fund, said, “Through this platform, NIIF aims to play a key role in building quality digital infrastructure to support the Government of India’s vision to transform the country into a global data center and cloud computing hub. The platform resonates with NIIF’s investment philosophy of developing infrastructure at scale and partnering with large, credible, well-governed companies that want to expand into India. We are excited to partner with highly capable and experienced industry partners, Digital Edge and AGP, who have a track record of delivering similar largescale projects across other countries in the region.”

Samuel Lee, Chief Executive Officer at Digital Edge, remarked, “This project is another key milestone in our ongoing growth journey and adds breadth and depth to our regional platform which now spans 16 data centers across six Asian markets. NIIF and AGP bring solid local know-how to our data center expertise, making a strong combination when it comes to executing the project at speed and to international standards.” He added, “Our mission is to build the foundation for the world’s digital future and we are excited to enter this dynamic market and contribute to India’s incredible digital transformation.”

Ben Salmon, Founding Partner of AGP, added, “AGP is excited to be partnering with Digital Edge and NIIF for the build out of this new Indian data center platform. The collaboration of skill sets between the partners positions us well to support the much needed expansion of India’s critical digital infrastructure and deliver to the high standards of hyperscale customers.”

Source: PTI

INDIA, UAE CLOSE TO DEAL ON RENEWABLE ELECTRICITY GRID LINK: RK SINGH

India and the United Arab Emirates (UAE) are close to a “major agreement” on a renewable energy interconnection between the two countries, India’s Minister of Power and New and Renewable Energy said. Raj Kumar Singh, who is visiting the Gulf Arab oil producer for the International Renewable Energy Agency’s (IRENA) assembly in Abu Dhabi, of which India is currently president, told Reuters the agreement was awaiting final approvals. He did not elaborate on a time frame.

There is a major agreement for an interconnection between the UAE electricity grid, and the Indian grid, Singh said, adding that this would be under the One Sun, One World, One Grid (OSOWOG) initiative by a group of countries to create renewable energy networks. “Both sides have agreed,” he said. “We believe it will come.”

The OSOWOG initiative, first proposed by Indian Prime Minister Narendra Modi, aims to transfer renewable energy power through connecting grids. Raj Kumar Singh said the UAE has also indicated it would like to invest more in India’s renewable energy projects, including solar and wind.

India and the UAE also signed a Memorandum of Understanding on January 13 on green hydrogen development, produced using renewable energy, India’s embassy in the UAE said on Twitter. The UAE’s Ministry of Foreign Affairs and International Cooperation declined to provide an immediate comment. Last year, the Gulf state concluded a broad trade agreement with India that aims to increase bilateral non-oil trade to $100 billion in the next five years.

Raj Kumar Singh gave his backing to the UAE as host for the COP28 climate conference this year and also supports Sultan Al Jaber, who is head of state oil company ADNOC and the UAE’s climate envoy, as president-designate of COP28.Jaber’s appointment drew criticism from some activists concerned about fossil fuel interests hijacking the global response to the environmental crisis.

“He (Jaber) is the point man for renewables, for climate change,” the Indian minister said. “When you look at energy transition you look at the whole energy sector, the whole basket, and in the oil and gas sector too, he’s been working on green initiatives.” Jaber is also the UAE’s minister of industry and advanced technology and helped to establish Abu Dhabi’s renewable energy firm Masdar in 2006.

The UAE and other Gulf energy producers have called for a realistic transition in which hydrocarbons would keep a role in energy security while making commitments to decarbonisation.

Source: PTI

The OSOWOG initiative, first proposed by Indian Prime Minister Narendra Modi, aims to transfer renewable energy power through connecting grids.

NEARLY ONE BILLION SERVED BY HEALTHCARE FACILITIES WITHOUT RELIABLE ELECTRICITY: REPORT

Access to electricity is critical for quality healthcare provision, from delivering babies to managing emergencies like heart attacks, or offering lifesaving immunization. Without reliable electricity in all healthcare facilities, Universal Health Coverage cannot be reached, the report notes, according to a WHO press statement. The joint report, Energizing Health: Accelerating Electricity Access in Health-Care Facilities, presents the latest data on electrification of healthcare facilities in low- and middle-income countries. It also projects investments required to achieve adequate and reliable electrification in health-care and identify key priority actions for governments and development partners.

The report states that electricity is needed to power the most basic devices – from lights and communications equipment to refrigeration, or devices that measure vital signs like heartbeat and blood pressure – and is critical for both routine and emergency procedures. When healthcare facilities have access to reliable sources of energy, critical medical equipment can be powered and sterilized, clinics can preserve lifesaving vaccines, and health workers can carry out essential surgeries or deliver babies as planned.

“And yet, in South Asia and sub-Saharan African countries, more than 1 in 10 health facilities lack any electricity access whatsoever, the report finds, while power is unreliable for a full half of facilities in sub-Saharan Africa,” the joint report said.

Electricity access in healthcare facilities can make the difference between life and death,” said Dr Maria Neira, Assistant Director-General a.i, for Healthier Populations at WHO. “Investing in reliable, clean and sustainable energy for health-care facilities is not only crucial to pandemic preparedness, it’s also much needed to achieve universal health coverage, as well as increasing climate resilience and adaptation.”

Although there has been some progress in recent years on electrification of health-care facilities, approximately 1 billion people worldwide are served by health-care facilities without a reliable electricity supply or no electricity at all. According to the report, disparities in electricity access within countries are also stark. Primary healthcare centres and rural health facilities are considerably less likely to have electricity access than hospitals and facilities in urban areas. Electricity access is a major enabler of Universal Health Coverage, the report states, and so electrification of healthcare facilities must be considered an utmost development priority requiring greater support and investments from governments, development partners and financing and development organizations.

Source: ANI

Close to 1 billion people in low and lower-middle-income countries are served by healthcare facilities with unreliable electricity supply or with no electricity access at all, according to a new report from the World Health Organization (WHO), the World Bank, the International Renewable Energy Agency (IRENA), and Sustainable Energy for All (SEforAll).

GREAVES COTTON TO EXPAND ELECTRIC 2-WHEELER PORTFOLIO TO ENHANCE MARKET SHARE

The company, which is showcasing its new Ampere Primus high-speed B2C e-scooter along with five new product concepts, including Ampere NXG and Ampere NXU, at the ongoing Auto Expo 2023, plans to launch electric scooters above and below the Rs 80,000 to Rs 1 lakh range where it currently sells its products. Greaves Electric Mobility Pvt Ltd, the company’s arm, has electric two-wheeler models Primus, Magnus EX and Reo Plus under the Ampere brand umbrella. In an interview with PTI, Basavanhalli said when the company started the electric journey “several years ago”, the annual revenue was about Rs 18 crore, which reached a quarterly revenue of Rs 320 crore in the last quarter.

So our growth has been based on incrementally adding values and demonstrating that value proposition. For example, Magnus, the brand name, has sold more than 1,00,000 vehicles in the electric vehicles market. So the product is well established. Now what we’re doing is in addition to Magnus, we are bringing in a refreshed zeal,” company’s Executive Vice Chairman Nagesh Basavanhalli said.

Basavanhalli further said, “We were playing in that sweet spot of Rs 85,000 to Rs 1 lakh. Now the goal is through our products, we will move a little bit left with one or two value products more a little bit right with the incremental new generation products, which brings an incremental or newer customer base to us. So now the pie is being expanded.” The electric two-wheeler market in India has been growing and from around 2.5 lakh units annually last fiscal, it would touch about 7 lakh units in the ongoing financial year and is projected to be around 13 lakh next year, he added.

“We are a 13-14 per cent market share player,” Basavanhalli said, adding, as the market size expands, the endeavor of the company would be how to continue to keep its market share, grow further and expand it. In order to enhance its position in the electric mobility space, Greaves Cotton group has worked on becoming a one-stop-shop, not just selling electric vehicles but providing a complete ecosystem, including financing, after-sales service, and development of powertrain, motors and controllers, he added. When asked about investments, he said the company is halfway through its committed capital of about Rs 1,500 crore on various activities, including bringing new products, adding capacity and brand building besides the acquisition of Ampere Vehicles three years back.

money that we have allocated will be sufficient for some of those products,” Basavanhalli added. In terms of the company’s production, he said, “We are ready to do a quarter million in one shift and half a million in two shifts. So I think in the near term, the capacity is more than sufficient.”

Greaves Cotton Ltd plans to bring electric two-wheelers both in the mass and premium segments going forward as it looks to enhance market share in the domestic market, according to the company’s Executive Vice Chairman Nagesh Basavanhalli.

DAWEI TO INVEST RMB 22 BILLION IN PROJECTS RELATED TO LITHIUM

RESOURCES

On December 28, 2022, Dawei Technology announced that it had signed an investment cooperation agreement with the government of Guiyang County. Under the agreement, Dawei will set up projects related to the comprehensive utilization of lithium resources, the Li-ion battery industry chain, and the manufacturing of new energy utility vehicles. The total investment in these project is estimated to reach RMB 22 billion. Guiyang County is under the administration of Chenzhou, a prefecture-level city in China’s Hunan Province.

The distribution of the RMB 22 billion investment is as follow: RMB 9 billion will be spent on the mining and sorting of lithium ores, the manufacturing of lithium carbonate, and related environment protection solutions such as slag processing. RMB 12 billion will be spent on the manufacturing of cathode materials and Li-ion batteries. Lastly, RMB 1 billion will be spent on the manufacturing of new energy utility vehicles.

There are two main projects. Below is a detailed description:

Project #1 will comprise ore mining, ore sorting, lithium carbonate production, and slag processing. Dawei will develop the manufacturing of battery-grade lithium carbonate in two phases, each comprising 20,000 tons per year of production capacity. The total production capacity for ore mining and sorting will reach 8 million tons per year. The facilities for slag processing and other environment clean-up tasks will be built simultaneously with the setup of the ore mining and sorting sites.

Project #2 will comprise cathode materials and batteries. It will be developed in two phases, each comprising 10GWh per year of production capacity.

Under the agreement, Dawei will be mainly in charge of funding and construction for the lithium resource project and the new energy utility vehicle project. However, other entities will join Dawei as investment partners as well. The core businesses of Dawei Technology are actually accessories related to smartphones, memory solutions, and miscellaneous electronic products. For 2021, Dawei’s revenue and net profit came to RMB 857 million and RMB 15.48 million respectively. For the first three quarters of 2022, Dawei’s revenue and net profit came to RMB 640 million and RMB 12.86 million respectively. Sales of new energy vehicles have kept climbing worldwide in recent years. With new energy vehicles becoming a rapidly growing industry, demand has also been surging for Li-ion automotive power batteries. Furthermore, the deployment of utility-scale energy storage systems has also widened significantly, and this trend also contributes to the growth of the demand for Li-ion batteries. On account of these developments, governments and enterprises now regard lithium as a critical strategic resource.

Moreover, the market for commercial new energy vehicles has scaled up quickly thanks to the needs related to urban transportation. Dawei therefore intends to bring innovations and positive changes to the wider automotive market. Taking advantage of the bright prospect of the new energy vehicle industry, Dawei wants to capture opportunities involving utility vehicles, vehicle parts, etc. The company expects itself to create a lot of potentials. In May 2021, Dawei Technology and several other investors formed a joint venture named Dawei Hongde. Dawei has a stake of 10% in the Shenzhen-based joint venture. This development signaled Dawei’s intention to pivot into the field of new energy utility vehicles. Dawei Hongde specializes in the manufacturing of parts for new energy vehicles as well as the modification of new energy vehicles.

Later, in November 2022, Dawei Hongde and the administration of the Jianggang Mountains Economic and Technological Development Zone entered into an investment agreement. Under the agreement, Dawei Hongde will set up a plant for the manufacturing of new energy utility vehicles. The development zone is under the administration of Ji’an, a prefecture-level city in China’s Jiangxi Province.

The latest investment cooperation agreement with Guiyang County is a major step forward for Dawei in its efforts to extend its presence into the upstream of the industry chain. By securing lithium resources, Dawei will be stronger competitively as it attempts to branch into the field of new energy technologies and become a manufacturer for new energy vehicles.

Dawei said it will make full use of the rich lithium resources in Guiyang County and formulate an effective strategy for establishing a significant presence in the market for new energy solutions. The agreement will also enhance Dawei’s core competitiveness and profit generation in the wider automotive market. All in all, Dawei as a listed company and the government of Guiyang County will mutually benefit from the two projects as they complement each other strengths and move towards a common development goal.

Source: energytrend

BUSINESS & FINANCE

LIGHTSOURCE BP CLOSES FIRST TAX EQUITY DEAL WITH WELLS FARGO FOR 481 MEGAWATT SOLAR PORTFOLIO

$267 million financing leverages Production Tax Credit (PTC) structure made available for solar in the Inflation Reduction Act of 2022

Lightsource bp has successfully closed on a $267 million tax equity investment from Fortune 500 Wells Fargo & Company (NYSE: WFC), a leading financial services company with approximately $1.9 trillion in assets. The tax equity investment by Wells Fargo is in addition to Lightsource bp’s sponsor equity investment and complements the debt financing package which originally closed in December 2021. “We are pleased to support Lightsource bp in its efforts to supply low-cost, emissionfree solar electricity in Louisiana and Arkansas,” said Shane Easter, a director with Wells Fargo’s Renewable Energy & Environmental Finance group. “Providing expertise and capital to important customers like Lightsource bp is part of our commitment to deploy $500 billion in sustainable financing by 2030 to support our customers and communities as they transition to a resilient, equitable and sustainable future.”

Well Fargo’s investment will support the construction and operation of a two-project portfolio totaling 481 megawatt dc (MW), which are among the largest projects in each state, and include:

• 346MW Oxbow Solar in Pointe Coupee Parish, Louisiana with energy sales to McDonald’s and eBay

• 135MW Conway Solar near Happy, Arkansas with energy sales to Conway Corp

As the tax equity investor, Wells Fargo is now the eighth global financial institution to support this portfolio of projects, joining the portfolio’s project finance lenders including HSBC Bank USA, ING Capital LLC, Societe Generale, NatWest, Intesa Sanpaolo, Standard Chartered Bank, and Allied Irish Banks. Collectively, the projects will abate more than 630,00 metric tons of greenhouse gas emissions each year. Both projects are scheduled to come online starting in 2023, creating 600 direct construction jobs. “This investment is a great example of the positive impact that top tier financial institutions with meaningful commitments to sustainability such as Wells Fargo can make to help accelerate our country’s transition to a low-carbon economy and reduce the impacts of climate change that affect lives and livelihoods,” said Kevin Smith, Lightsource bp’s CEO of the Americas. “The new tax credit options and stable policy environment for job growth made possible by the Inflation Reduction Act will further incentivize investment and spur the growth of America’s solar industry.”

IREDA SIGNS MOU WITH MNRE, SETTING ANNUAL PERFORMANCE TARGET FOR THE YEAR 2022-23

• The Government of India has set a target ₹ 3,361 crores for Revenue from Operation, up by approx. 18% from the previous year achievement

• Government has also set various performance-related key parameters such as Return on Net Worth, Return on Capital Employed, NPA to Total Loans, Asset Turnover Ratio and Earning per share, etc.

• IREDA has demonstrated exceptional performance by securing 96.54 marks for the MoU of FY 2021-22

Indian Renewable Energy Development Agency Ltd. (IREDA) signed a Memorandum of Understanding (MoU) with Ministry of New and Renewable Energy (MNRE), Government of India, setting annual performance target for the year 2022-23. The MOU was signed by Shri Bhupinder Singh Bhalla, Secretary, MNRE and Shri Pradip Kumar Das, Chairman & Managing Director (CMD), IREDA in the presence of senior officials from MNRE & IREDA. The Government of India has set a target ₹ 3,361 crores for Revenue from Operation, up by approx. 18% from the previous year achievement. The Government of India has also set various performance-related key parameters such as Return on Net Worth, Return on Capital Employed, NPA to Total Loans, Asset Turnover Ratio and Earning per share, etc. Shri Pradip Kumar Das highlighted that IREDA has been delivering exemplary performances for the previous two financial years and is fully geared to meet these targets. The company has posted 67% jump in Profit After Tax (PAT) in 2nd Quarter of

FY 2022-23, as compared to corresponding period during FY 2021-22. Most importantly, Net NPAs have been reduced from 4.87% to 2.72% in Quarter 2, as compared to corresponding period during FY 2021-22. IREDA has demonstrated exceptional performance by securing 96.54 marks for the MoU of FY 2021-22. The company as on date, has financed more than 3,068 Renewable Energy projects loan accounts with cumulative loan sanction and disbursement to the tune of ₹ 1,41,622 crores & ₹ 90,037 crores respectively and has supported Renewable Energy capacity addition of 19,502 MW in the country.

USTDA’S PORTFOLIO IN INDIA HAS POTENTIAL TO UNLOCK USD 37 BILLION IN FINANCING: DIRECTOR

USTDA Director Enoh T Ebong also said her organisation is “very interested” in exploring collaboration with India in its ambitious plan to build green hydrogen projects. The USTDA partnered eight states – Gujarat, Haryana, Karnataka, Kerala, Punjab, Tamil Nadu, West Bengal and Maharashtra – under its Interstate Clean Energy Procurement Programme. Ebong is currently on a visit to

“We are very interested in exploring collaboration in this new technology,” she told a small group of reporters when asked about possible collaboration between India and the US in the upcoming area of green hydrogen. India on January 4 approved the National Green Hydrogen Mission with an outlay of Rs 19,744 crore to develop a green hydrogen production capacity of five million tonnes a year by 2030. Asked about the USTDA’s portfolio in India, she said it is involved in approximately 200 activities in several sectors. The USTDA provides funding for feasibility studies, extends assistance and help implement pilot projects to integrate the US private sector innovation into infrastructure projects in various parts of the globe.

“We estimate that our portfolio has the potential to unlock USD 37 billion in financing. So that’s what we think we will be able to, if these projects are implemented, (and they could) unlock that amount of financing. We look at it in terms of what is the possibility here and looking at our portfolio that is what we estimate,” she said. The USTDA director launched the Interstate Clean Energy Procurement Program (ICEPP) that is aimed at advancing the development of clean energy infrastructure in eight Indian states through targeted training for public procurement officials on best value and life-cycle cost analysis. USTDA is funding ICEPP through its Global Procurement Initiative (GPI). “USTDA is launching ICEPP because of the priority that India has placed, at both the

national and state level, on procuring high-quality clean energy infrastructure,” said Ebong. Director Ebong launched ICEPP during its inaugural training event, which included state-level procurement officials from the states of Gujarat, Haryana, Karnataka, Kerala, Maharashtra, Punjab, Tamil Nadu, and West Bengal. With a combined population of more than 500 million people, these states have ambitious renewable energy targets requiring billions of dollars in new investment and are among India’s leaders in terms of installed renewable energy capacity, the USTDA said A focus of the USTDA-funded training will include interstate collaboration for achieving each state’s respective clean energy development strategies, it said. Launched in 2013, USTDA’s GPI trains public officials in emerging markets on how to establish procurement practices and policies that integrate life-cycle cost analysis and best value determination in a fair, transparent manner. Ebong said she is in India to build a public private sector partnership between the two countries that will contribute to the accomplishment of India’s infrastructure priorities. “These are the critical tools for attracting financing and deploying innovative technology to achieve India’s highest infrastructure priorities,” Ebong said. She said her trip has been notable for progress in areas including clean energy, digital connectivity and civil aviation. She said the USTDA also announced a feasibility study funding that will enable it to expand the network for broadband connectivity to more than 30 million people in rural and urban communities in 16 Indian states. Ebong said her visit to India has been both “productive and meaningful”, noting that the USTDA’s commitment to India embodies President Joe Biden’s vision of creating global partnerships that are “good for all of us”. Asked whether USTDA is also looking at partnering with India in implementing projects under the ambitious Indo-Pacific Economic Framework (IPEF), she did not give a direct reply. “We are very excited with the launch of IPEF. It is completely consistent with the work that we do,” she said. In line with Washington’s long-term vision for the Indo-Pacific region, President Biden in May last year launched the IPEF, which is an initiative aimed at deeper cooperation among like-minded countries in areas like clean energy, supply-chain resilience and digital trade. The initiative was largely seen as an attempt to counter growing Chinese influence in the Indo-Pacific region.

Source: PTI

SHELL UNIT TO ACQUIRE EV CHARGING FIRM VOLTA FOR ABOUT $169 MILLION

Shell USA Inc will acquire all outstanding shares of Class A common stock of Volta for 86 cents apiece in cash in a deal that is expected to close in the first half of the year, Volta said. Shell and other companies such as France’s EDF and Norway’s Statkraft have been investing in EV charging infrastructure to cash in on the growing demand for EVs. As part of the deal,

Shell USA will also provide loans to Volta to help the company through the closing of the deal. Volta’s shares rose 18% to 86 cents in premarket trade. Goldman Sachs and Barclays Capital served as advisers to Volta, while Shearman & Sterling LLP served as its legal adviser.

Source: Reuters

The US Trade and Development Agency (USTDA) estimated that its portfolio in India has the potential to unlock USD 37 billion in financing in sectors such as clean energy, digital connectivity and infrastructure.

Volta Inc said that a Shell Plc subsidiary would take over the electric vehicle (EV) charging network operator in an all-cash deal valued at about $169 million.

BUSINESS & FINANCE

TRILLIONS OF DOLLARS NEEDED TO ADAPT GREEN TECHNOLOGIES: EXPERTS AT WEF

To reach the 2050 emissions reduction target, trillions of dollars in public and private capital are needed to adopt and scale green energy technologies, financial experts told participants in a session on climate finance at the 53rd World Economic Forum annual meeting. told.

Despite the urgent need for climate finance, several barriers have hindered the flow of private capital to decarbonization projects around the world, and particularly in the Global South. Financial experts agreed that a major hurdle is the need for carbon pricing. “We are still resisting the requirement that a price for carbon be fixed, and the price has to go up,” said Kristalina Georgieva, managing director of the International Monetary Fund. Public resistance to a carbon tax has prevented many countries from pursuing carbon pricing through taxation, but taxation is not the only way to curb emissions. Carbon trading, regulation and various pricing schemes are alternative strategies that countries have used to impose a cost on emissions. Better coordination of these strategies would encourage private capital to invest in more net-zero projects around the world. Another barrier to private finance has been the lack of common standards and data on reducing emissions. Experts expressed disappointment that even after nearly three decades of COP summits, there is a lack of common metrics on many environ mental goals. “We need standards,” said Bill Winters, Group CEO of Standard Chartered Bank. “We are all afraid of be ing accused of greenwashing, even if we are doing the right thing.” National devel opment banks, along with multilateral de velopment banks such as the IMF, should take t he lead in catalys ing private finance for climate change adaptation. “Multilateral and national development banks have had to take on too much risk,” said Patrick

Khulekani Dlamini, CEO of the Development Bank of Southern Africa. One problem has been that national and multilateral development banks compete for projects and do not share information. Better coordination among public financial institutions can encourage greater risk-taking and improve banks’ assessment of the risks of various projects. One strategy would be to forge an agreement among multilateral development banks to focus exclusively on their collective impacts on green energy rather than on individual balance sheets. In addition, datasharing between development banks and private funders could increase investor confidence in financing risky projects. Different energy contexts require different national policies, but all countries can learn from best practices in the Global North and Global South. South Africa and Indonesia have become leaders in the global south for their environmental policies. In Germany, the war in Ukraine prompted the nation to accelerate its energy transition. One area of marked progress involves intelligent demand reduction. “We have reduced energy consumption by more than 20 percent by reducing costs in our buildings,” said Oliver Batte, CEO of Allianz. Monitoring inefficient energy use represents a straightforward strategy that many developed countries have not yet implemented on a wide basis. Finance experts agreed that given the urgency to cut emissions, it is also necessary to understand the costs of inaction to accelerate private finance. Expediting major projects often increases the risks of corruption and leakages, but such risks must be weighed against the cost of failing to act. Delays in mitigation in developing countries can cost hundreds of billions of dollars – a cost that rises to many millions of dollars more due to corruption or incomplete project design. Experts agreed that many of the tools and technologies needed to accelerate decarbonisation already exist, from sustainable aviation fuels to green hydrogen. The challenge is implementing these innovations, spreading them around the world and doing so quickly. Solar panels drop in price by 95 percent after 30 years, but as Winters said: “We don’t have 35 years in this cass"

Source: PTI

LONGI PLANS TO EXPAND MONOCRYSTALLINE SILICON WAFER PRODUCTION CAPACITY WITH NEW 100 GW PROJECT IN CHINA

LONGi has announced a new monocrystalline silicon wafer project of 100 GW annual production capacity It is planned to be in Xixian New District of Shaanxi province along with a 50 GW cell project While the board is yet to clear it, LONGi believes the additional capacity is in line with its future production capacity planning

The world’s largest solar wafer manufacturer, LONGi Green Energy Technology is cementing its position on the top with the announcement of a new 100 GW monocrystalline wafer project in China’s Xixian region in Shaanxi province, along with a 50 GW monocrystalline cell project. Realization of these plans and estimated investment budget is pending the feasibility of the project by the company’s board though. Nonetheless, fathom this: at the end of 2021, the company had a cumulative production capacity of 105 GW for wafers, which it was targeting to

grow to 150 GW by the end of 2022. For solar cells and modules, the 2021 capacity of 37 GW and 60 GW was to be scaled up to 60 GW and 85 GW, respectively over the same period. A statement from LONGi stated it has signed an investment cooperation agreement with the management committee of Jinghe New Town of Xixian New District in Shaanxi province to site the wafer and cell projects. The vertically integrated manufacturer sees this additional capacity as being in line with its future production capacity planning that’s conducive to its full use of technology. “The leading advantages in technology and products will further enhance the company’s production capacity and continuously improve market competitiveness,” stated LONGi.

Source: taiyangnews

SOLIS CONTINUES TO ENDORSE ITS COMMITMENT TO ENERGY TRANSFORMATION IN DUBAI

Solis, a global leader in solar inverter technology, displayed its most powerful inverters at World Future Energy Summit in Abu Dhabi from January 16th-18th. The World Future Energy Summit is the leading international event accelerating sustainability and the global transition to clean energy. Solis’s booth grabbed many eyeballs and was the focal point of attention for visitors at the largest solar energy event in the Middle East. Solis’s new energy storage inverter, the S6-EH1P (3-6)K-L, was the center of the buzz and a major reason for all the excitement surrounding the booth. This inverter is flexible with an intelligent design and exhibits outstanding performance. It features integrated 2 MPPTS, which are perfect for residential rooftop installations that have multiple array orientations. It is compatible with battery models from multiple brands, thus giving customers the flexibility to choose from different options. You can control and upgrade the S6 inverter via the SolisCloud App. This reduces site visits as the control lies in your hands! What’s the best thing? It supports pure off-grid applications with generator communication support and multiple working modes to meet different use case scenarios.

jority of the UAE’s solar power generation will come from Abu Dhabi and Dubai. Global Data indicates that Abu Dhabi’s PV capacity will reach 5.6GW by 2026. The country has set a goal to get more than half of its electricity from renewable sources (mainly solar energy) by 2030. Also, the country’s government launched the state incentive scheme SRP (Solar Rooftop Plan) in 2018 to encourage rooftop solar PV. This plan is expected to generate 500 MW of solar PV from rooftops, but only 2.3 MW has been installed so far.

There is a lot of potential for solar in the UAE. In the UAE, the annual installed solar PV capacity is expected to reach 3GW by 2023. Out of this, 2.2GW will be from the rooftop sector with thevast majority concentrated in Abu Dhabi and Dubai. The ma

Idrish Khan, Solis’s Chief Technology Officer in SEA and EMEA, said in his speech, “Solis fully understands that enterprises should shoulder the responsibility of accelerating the global zero-carbon process. We are committed to helping Abu Dhabi achieve its “2030 Carbon Neutrality Goal” by focusing on quality products, continuous innovations, and the best aftersales services. At Solis, we will strive to fulfill the mission of making clean energy the world’s main energy source through technology.”

SUSTAINABILITY MUST BE AT FOREFRONT OF ENERGY TRANSITION: RENEW POWER CHIEF

“I’m sure that sustainability will come to the forefront in the longer term as people have not forgotten that aspect,” Sinha said

EEnergy security may be driving the transition towards new sources at present in the developed world, but sustainability should be the key factor in the longer run, Indian renewables major ReNew Power’s chief Sumant Sinha said. Speaking at a session on ‘Different roads to energy transition’, he also said the energy transition began quite early in India and the process has got a huge leg up now. “Every country has a different way of looking at energy transition. For developing countries, it is about cost, while for developed ones, it is more about energy security,” he said. In the short run, people are more focussed on security, but in the longer run, it has to be about sustain

ability, he noted. “I’m sure that sustainability will come to the forefront in the longer term as people have not forgotten that aspect,” Sinha said. Noting that energy transition in India began quite early, Sinha said the efforts got a further boost when solar power became much cheaper while wind price also came down significantly. The government has now upped the target for renewables, partly also due to rising demand, he added. “It started with ambition, then it got a boost for prices getting cheaper and now demand, sustainability and several other factors are driving the transition in India,” he said.

MATTER ENERGY, LUMINOUS POWER TIE UP TO DEVELOP DUAL- PURPOSE HOME INVERTER

Technology startup Matter Energy said it has entered into a strategic partnership with Luminous Power Technologies in the field of home inverters and stationary applications

The partners will work in the areas of low-voltage stationary energy storage solutions and develop a dualpurpose smart home dock inverter with IoT capabilities, Matter Energy said in a statement. The dock can be used for both mobility and domestic energy storage applications. This lithium-ion battery solution is built on the principles of battery swapping technology to power a two-wheeler and home inverter interchangeably, it added.

With Luminous’ extensive presence and distribution network not only in India but also in South-East Asia and South Africa, we are optimistic that our collaboration will enable us to provide dependable and eco-friendly solutions to millions of Indian households, Matter Group Founder and CEO Mohal Lalbhai said.

Luminous Power Technologies CEO Preeti Bajaj said Matters’ expertise in Lithium-ion battery technology will benefit us, allowing it to provide advanced solutions to customers in Indian and international geographies. “…this strategic collaboration aligns with Luminous’ goal to deliver a diverse variety of innovative solutions in the power backup for residential markets,” she added.

The power inverter market in India is estimated to grow at a CAGR (Compound Annual Growth Rate) of 14.6 per cent by 2027, and by joining forces, both companies will further accelerate the market catering to the growing demand for power inverters in the domestic and stationary sectors,” Bajaj said.

Source: PTI

JSW ENERGY ARM BAGS TWO BATTERY ENERGY STORAGE SYSTEM PROJECTS FROM SECI

JSW Energy said that its arm JSW Renew Energy Five has bagged two battery energy storage system projects totalling 500 MW/ 1,000 MW from Solar Energy Corporation of India (SECI).

The company will be entitled to receive a fixed capacity charge of Rs 10.8 lakh per MW per month for twelve years, a company statement said. Energy storage system of 500 MW/1,000 MW means 500 MW of battery energy can provide power backup for two hours, giving total output of 1,000 MW, the company explained. SECI’s obligation shall be limited to 60 per cent of the project capacity/energy and the remaining 40 per cent is to be managed by the company, JSW Energy stated. JSW Renew Energy Five Ltd, a 100 per cent step-down subsidiary of JSW Energy, has received the Letter of Awards (LoA) for total 500 MW/1,000 MW standalone battery energy storage systems (two projects each of 250 MW/500 MW) from SECI, it stated.

Prashant Jain, Joint Managing Director and CEO of JSW Energy, said in the statement, “We are excited to receive the LoA for battery energy storage system which marks our foray into energy storage solutions. This is in line with the company’s long-term strategy to transition towards an energy products and solutions company.” The company has set a target to reach 20 GW capacity by 2030 and near-term target of 10 GW by 2025.

Around 1.7 GW of renewable energy projects are currently operational, under-construction/in-pipeline is 2.63 GW, and with the acquisition of Mytrah Energy’s 1.75 GW renewable energy assets the total renewable locked-in capacity of the company stands at 6.0 GW.

ENERGY STORAGE

WHY HYDRO ENERGY STORAGE IS NEEDED DESPITE ITS SHORTCOMINGS

Pumped hydro energy storage is a controversial issue, with its supporters believing it can help decarbonize the global economy and its detractors claiming dams destroy the environment.

In order to reach a net-zero energy future, a whopping 6TWh of energy storage will be required and pumped hydro energy storage is likely to be a central part of that storage.

The fact that batteries are made from non-renewable rare earth elements, many of which have been monopolized by China, means that other types of energy storage need to be developed.

Depending on who you ask, pumped hydro energy storage is either the future of the clean energy industry and the key to decarbonizing the global economy, or it’s an ecological disaster that needs to be stopped. The truth, of course, lies somewhere in between – but friends and enemies of pumped hydro tend to espouse either one narrative or the other with inadequate attention to the nuanced trade-offs and potential synergies that pumped hydro storage presents to the renewable energy industry. The issue is this: building dams is good for clean energy storage, which is good for the environment; but on the other hand, the dams themselves tend to be extremely bad for the environment and the surrounding communities. We’re talking about massive dams that flood whole valleys, irreversibly changing the ecological balance of the area and often displacing humans as well as animals. These dams can seriously harm or eradicate crucial habitats for birds, fish, and plants.

On the other hand, supporters will say the risk posed by climate change is much bigger than the risk of damaging local ecosystems. These supporters argue that if global greenhouse gas emissions are left unchecked, a flooded river valley here and there will be a molehill next to the mountain of disastrous ecological impacts created by warming temperatures, rising sea levels, acidifying oceans, and increased intensity and incidence of extreme weather events, among other results of warming past 1.5º. In an effort to curb global emissions in time to avoid these devastating results, any and every kind of clean energy innovation should be considered and tested. And one of the most promising such innovations, river valleys be damned, is pumped hydro. It’s an elegant and relatively simple solution to a complex problem inherent to renewable resources including solar and wind. Wind and solar are variable, which means that their productivity depends on factors outside of human control – the weather and the time of day or year. This creates an issue for the grid, as demand for energy tends to peak when supply is lowest – we all turn our lights on when the sun goes down on our houses as well as on the community’s nearest solar farm.

This dynamic means that energy storage is an essential part of the renewable energy sector. In fact, a net-zero energy future will require a whopping 6TWh of energy storage. It is needed to capture excess energy captured when production is high and then release that stored energy back to the grid when demand outweighs production. This could mean that energy is stored for a few hours – but it could also mean that energy is stored for whole seasons. This rules out lithium-ion batteries, which currently dominate the energy storage sector but which can only hold energy short-term. What’s more, the production of lithium-ion batteries requires finite, non-renewable rare Earth elements which are going to become increasingly scarce in the future. China has a chokehold on many rare Earth element supply chains, including lithium, presenting a major geopolitical minefield if the industry doesn’t pivot to alternative and long-term storage options.

This is where pumped hydro comes in. It’s a long-term energy storage solution in which water is pumped uphill using excess energy at peak production times and then released downhill to spin turbines to create electricity when energy is needed. While some projects are building massive new dams for the purpose of energy storage alone, others are hoping to incorporate storage into existing hydropower dams, recycling some of the water lost in the hydropower process to use for pumped storage. “We will change them into something better suited for the future,” Ivar Arne Borset, a senior vice president at Norwegian hydro leader Statkraft, was quoted by the New York Times.

Recycling water will become an increasingly important component of energy storage as prolonged droughts and lowering water levels fueled by climate change pose a serious and intensifying threat to the hydropower sector as a whole.

Source: oilprice

BATTERY 2030: RESILIENT, SUSTAINABLE, AND CIRCULAR

Battery demand is growing—and so is the need for better solutions along the value chain.

This work is independent, reflects the views of the authors, and has not been commissioned by any business, government, or other institution. Global demand for batteries is increasing, driven largely by the imperative to reduce climate change through electrification of mobility and the broader energy transition. Just as analysts tend to underestimate the amount of energy generated from renewable sources, battery demand forecasts typically underestimate the market size and are regularly corrected upwards. In an earlier publication, a joint 2019 report by McKinsey and the Global Battery Alliance (GBA), and SystemIQ, A vision for a sustainable battery value chain in 2030, we projected a market size of 2.6 TWh and yearly growth of 25 percent by 2030. But a 2022 analysis by the McKinsey Battery Insights team projects that the entire lithium-ion (Li-ion) battery chain, from mining through recycling, could grow by over 30 percent annually from 2022 to 2030, when it would reach a value of more than $400 billion and a market size of 4.7 TWh.

Although battery growth will confer multiple environmental and social benefits, many challenges lie ahead. To avoid shortages, battery manufacturers must secure a steady supply of both raw material and equipment. They must also channel their investment to the right areas and execute large-scale industrialization efficiently. And rather than just greenwashing—making halfhearted efforts to appear environmentally friendly—companies must commit to extensive decarbonization and true sustainability. Faced with these imperatives, battery manufacturers should play offense, not defense, when it comes to green initiatives. This article describes how the industry can become sustainable, circular, and resilient along the entire value chain through a combination of collaborative actions, standardized processes and regulations, and greater data transparency.

By emphasizing sustainability, leading battery players will differentiate themselves from the competition and generate value while simultaneously protecting the environment. The strategies and goals presented here are aligned with both McKinsey’s battery supply chain vision and the GBA’s principles.

GLOBAL MARKET OUTLOOK FOR 2030

Global demand for Li-ion batteries is expected to soar over the next decade, with the number of GWh required increasing from about 700 GWh in 2022 to around 4.7 TWh by 2030 (Exhibit 1). Batteries for mobility applications, such as electric vehicles (EVs), will account for the vast bulk of demand in 2030—about 4,300 GWh; an unsurprising trend seeing that mobility is growing rapidly. This is largely driven by three major drivers:

A regulatory shift toward sustainability, which includes new net-zero targets and guidelines, including Europe’s “Fit for 55” program, the US Inflation Reduction Act, the 2035 ban of internal combustion engine (ICE) vehicles in the EU, and India’s Faster Adoption and Manufacture of Hybrid and Electric Vehicles Scheme.

Greater customer adoption rates and increased consumer demand for greener technologies (up to 90 percent of total passenger car sales will involve EVs in selected countries by 2030).

Announcements by 13 of the top 15 OEMs to ban ICE vehicles and achieve new emission-reduction targets.

Battery energy storage systems (BESS) will have a CAGR of 30 percent, and the GWh required to power these applications in 2030 will be comparable to the GWh needed for all applications today. China could account for 45 percent of total Li-ion demand in 2025 and 40 percent in 2030—most battery-chain segments are already mature in that country. Nevertheless, growth is expected to be highest globally in the EU and the United States, driven by recent regulatory changes, as well as a general trend toward localization of supply chains. In total, at least 120 to 150 new battery factories will need to be built between now and 2030 globally.

In line with the surging demand for Li-ion batteries across industries, we project that revenues along the entire value chain will increase 5-fold, from about $85 billion in 2022 to over $400 billion in 2030 (Exhibit 2). Active materials and cell manufacturing may have the largest revenue pools. Mining is not the only option for sourcing battery materials, since recycling is also an option. Although the recycling segment is expected to be relatively small in 2030, it is projected to grow more than three-fold in the following decade, when more batteries reach their end-of-life.

Companies in the EU and US are among those that have announced plans for new mining, refining, and cell production projects to help meet demand, such as the creation or expansion of battery factories. Many European and US companies are also exploring new business models for the recycling segment. Together, these activities could help localize battery supply chains.

TODAY’S VALUE CHAIN CHALLENGES

The global battery value chain, like others within industrial manufacturing, faces significant environmental, social, and governance (ESG) challenges (Exhibit 3). Together with GBA members representing the entire battery value chain, McKinsey has identified 21 risks along ESG dimensions:

Environmental: The extraction and refining of raw materials, as well as cell production, can have severe environmental effects, such as land degradation, biodiversity loss, creation of hazardous waste, or contamination of water, soil, and air. Unprofessional or even illegal battery disposal can cause severe toxic pollution. This is a problem within today’s lead-acid battery value chain.

Social: Unless strictly managed, operations across the battery value chain could have unfavorable effects on regional communities through violations of labor laws, child and forced labor, and indigenous rights, especially in emerging markets.

Governance: Businesses in the battery value chain may encounter conflicts of interest or other companies with subpar management practices. To meet longstanding expectations for ethical businesses, companies must avoid financial situations involving corruption, bribery, funding armed conflicts, and tax evasion.

To conduct business in a socially and ecologically responsible way, it is crucial for stakeholders in the battery value chain to consider and address these ESG risks. (See sidebar, “Industry perspectives on sustainability” for more information on priorities). Success will likely depend on deploying sufficient resources as well as greater transparency and better mitigation measures—regulations and early planning could help ensure that companies alleviate risks along the entire value chain. Further, compliance and corporate risk will have to include ESG issues in their operational risk-management practices and processes to tackle them holistically. Many companies, however, still see mastering ESG as a cost and a burden. We strongly believe they need to embrace this challenge and view it as one of the greatest business opportunities of the century. It’s time to stop playing defense and start playing offense.

Besides the much-publicized ESG challenges, GBA members have pointed out that the battery value chain confronts massive economic barriers (Exhibit 4). Historic price peaks and extreme volatility, as well as quickly changing national regulations, can massively affect the economic viability of projects. Higher battery prices also make some green applications far less attractive than they were previously, which could delay much-needed attempts to accelerate decarbonization. Although economic viability is the most urgent issue for leaders, a more complex challenge involves the industrialization and historic scale-up of the battery industry.

DEALING WITH SHORTAGES

Shortages of manufacturing equipment, construction material, and the skilled labor required to ramp up production are a few reasons why many battery-cell factories experience significant delays. Vertical supply-chain integration and long-term contracts, as well as greater collaboration, could mitigate some of these issues. Additionally, open dialogue and education with local communities and stakeholders are likely key to achieving more widespread acceptance and support for the battery industry. The metals and mining sector will supply the high quality raw materials needed to transition to greener energy sources, including batteries. If companies can provide sustainable materials—those with a low CO2 footprint—they might capture a green premium, since demand is ramping up for such products. It may be difficult to provide sustainable materials in the quantities needed to meet demand, however.

Producers and purchasers could mitigate potential shortages of raw materials by redefining their strategies and operations to be economic, transparent, sustainable, and circular. For instance, producers need to build or re-create a growth agenda based on economic viability to ensure execution. Further, they need to strive for continuous innovation in productivity and decarbonization of operations while simultaneously pursuing diverse partnerships that will embed them in downstream supply chains. Purchasers, on the other hand, must adapt technology rollout plans—for instance, by increasing flexibility regarding battery technologies and raw-materials requirements—and accelerate innovation on product design and material usage. They must also send clear signals about long-term demand. to decrease the uncertainties about market size that often deter producers from undertaking multi-billion dollar mining and refining projects, which often have 20 to 30 year lifetimes. Purchasers should aim for strategic-green-procurement excellence by identifying potential mines and refineries across different geographies and then assess their volume, quality, environmental impact (looking not just at greenhouses gases but all planetary boundaries). It will also be important to evaluate the societal risks involved in securing an adequate supply. Last, players along the entire value chain must step up their game to enable true circularity by creating tight loops, such as those for life extension, rather than just focusing on the wide loop of recycling. Last, the entire value chain needs to step up their game in enabling true circularity with tight loops like life extension, rather than just the wide loop of recycling.

This article and the underlying data and analytics can help promote better planning by the relevant stakeholders in the private and public sectors, as well as by investors. These stakeholders require a reliable fact-base and transparency on raw-material demand and supply imbalances to de-risk their investments. Batteries require a mix of raw materials, and various pressures currently make it difficult to procure adequate supplies. McKinsey’s MineSpans team, which rigorously tracks global mining and refining capacity projects, has created several future scenarios based on available information. The base-case scenario for raw-material availability in 2030 considers both existing capacity and new sources under development that will likely be available soon. The team’s full potential scenario considers the impact of pipeline projects that are still in the earlier stages of development, as well as the effect of technology innovation and the potential addition of new mining and refining capacity. While some battery materials will be in short supply, others will likely experience oversupply, making it more difficult to plan. The success factors for ensuring a sufficient global supply include obtaining greater transparency on supply and demand uptake, proactively identifying the need for new mining and refining capacities to avoid bottlenecks, channeling investments into new capacity, and improving investment returns and risk management. Almost 60 percent of today’s lithium is mined for battery-related applications, a figure that could reach 95 percent by 2030 (Exhibit 5). Lithium reserves are well distributed and theoretically sufficient to cover battery demand, but high-grade deposits are mainly limited to Argentina, Australia, Chile, and China. With technological shifts toward more lithium-heavy batteries, lithium mining will need to increase significantly. Meeting demand for lithium in 2030 will require stakeholders to strive for the full potential scenario, which factors in the impact of almost every currently announced project in the pipeline and will require significant additional investment in mining projects. The full potential scenario also involves putting greater emphasis on smart product technology choices, such as the use of silicon anodes instead of Li-metal.

BATTERIES

Nickel reserves are dispersed across various countries, including Australia, Canada, Indonesia, and Russia (Exhibit 6). In our base scenario, there would only be a small shortage of nickel in 2030 because of the recent transition to more lithium iron phosphate (LFP) chemistries and plans to increase mining capacity. Although McKinsey’s full potential scenario projects a significant oversupply of nickel if stakeholders achieve their planned mining and refining potential, companies could still have difficulty acquiring sufficient quantities because of quality requirements (for instance, the need for class 1 nickel rather than class 2 nickel in the form of ferroalloys) and the limited geographic distribution of mines. No matter how supply evolves, the industry will need to consider one critical question: How to find sustainable nickel for batteries? In answering this question, companies must consider CO2 intensity differences across assets.

Approximately 75 percent of today’s mined cobalt originates from the Democratic Republic of Congo (DRC), largely as a byproduct of copper production (Exhibit 7). The remainder is largely a by-product of nickel production. The share of cobalt in batteries is expected to decrease while supply is expected to increase, driven by the growth in copper mining in the DRC and of nickel mining, primarily in Southeast Asia. While shortages of cobalt are unlikely, volatility in supply and price may persist because it is generally obtained as a by-product.

BATTERIES

Supply of manganese should remain stable through 2030 since no announcements of additional capacity are expected (Exhibit 8). Demand for manganese will likely slightly increase and, thus, our base scenario estimates a slight supply shortage. The industry should be aware that some uncertainty surrounds manganese demand projections because lithium manganese iron phosphate (LMFP) cathode chemistries could potentially gain higher market shares, especially in the commercial vehicle segment.

Battery-grade graphite comes from natural graphite (which is mined) and synthetic graphite that comes from petrol or coal that has undergone a graphitization process—modern batteries use a combination of both (Exhibit 9). Annual graphite supply was 1,600 kt in 2021 and is expected to increase to as much as 2,800 kt by 2030. Currently, more than 70 percent of graphite is produced in China. Graphite projects have a much shorter realization window compared to other battery materials because companies can move from planning to operations within one to two years and, as a result, graphite poses less of a supply risk for the battery value chain.

BATTERIES

MITIGATING EMISSIONS

Battery electric vehicles (BEVs) often are criticized for their greenhouse-gas footprint throughout their life cycle. However, although results vary significantly depending on factors such as milage, production, and electricity grid emissions, our models clearly indicate that BEVs are the most effective decarbonization option for passenger cars. Our calculations show that total emissions are much lower today for BEVs than vehicles with internal combustion engines (ICE), because BEVs emit lower emissions during the use phase (the time that vehicles are on the road) (Exhibit 10). In the worst case scenario, with no low-carbon electricity, total life-cycle emissions for BEVs are about 50 percent lower in Europe and 72 percent lower in the United States compared with ICE vehicles.

Once recharged with low-carbon electricity during the use phase, BEVs achieve even better life-cycle carbon footprints than ICE vehicles, with about 77 percent lower emissions in Europe and 88 percent lower emissions in the United States. Although BEVs are superior in life-cycle emissions, their material and manufacturing emissions per vehicle are double those of ICE vehicles. These greenhouse-gas emissions before the use phase are responsible for 40 to 95 percent of total life-cycle emissions of BEVs, depending on the grid electricity used for charging. Decarbonizing production, primarily for battery, aluminum and steel, is therefore much more critical for BEVs than it has been for ICEs.

In the next five to seven years, ambitious players might cut the carbon footprint of battery manufacturing by up to 90 percent, but this would call for changes throughout the whole value chain. Different tactics can aid in abatement. In the bestcase scenario, some of these would result in cost savings, while others would entail large expenditures. Under the most beneficial circumstances, companies might potentially decarbonize up to 80 percent of emissions at a minimum additional cost. The site of manufacturing and the intended market, including its carbon price, customer demand, and willingness to pay potential green premiums, will help determine how cost competitive low-carbon batteries may be.

The most effective decarbonization levers include the use of circular materials and low-carbon electricity. Their economic attractiveness may vary, however, primarily because of local issues, such as electricity feed-in-tariffs, subsidies, and available materials.

TECHNOLOGICAL ADVANCES

Some recent advances in battery technologies include increased cell energy density, new active material chemistries such as solid-state batteries, and cell and packaging production technologies, including electrode dry coating and cell-to-pack design. When making investments decisions, battery manufacturers could find these rapid advances challenging. After choosing the battery technology that fits their application needs best, they should then quickly secure the required raw material upstream, acquire the capable machinery mid-stream to suit the battery chemistry and application, and recruit the indispensable talent required for those projects. The uncertainty about cell technologies and form factors supplied by different producers also imposes significant complexity costs and risks to the aftersales, repair, and maintenance of batteries. Vehicle OEMs need to ensure that EV battery modules and packs can be replaced at a low cost long after the typical eight-year warranty period. To manage uncertainty, battery cell manufacturers need to plan their target investments carefully and scout for external funding opportunities, such as green bonds or subsidies in relevant regions. Simultaneously, they should accomplish several other important tasks: plan their manufacturing plants, optimize short- and longterm costs to ensure agility and adaptability of production lines, and steer investments into new technologies.

BATTERY 2030: RESILIENT, SUSTAINABLE, AND CIRCULAR

The 2030 outlook for the battery value chain depends on three interdependent elements:

Supply-chain resilience. A resilient battery value chain is one that is regionalized and diversified. We envision that each region will cover over 90 percent of local cell demand, over 80 percent of local active material demand, and over 60 percent of refined materials demand. In addition, by recycling raw materials that are primarily found in one location (such as cobalt), countries can reduce their dependency on others. A recycling target of 80 percent, as recently specified in the EU battery directive, could become an aspiration for 2030 for all regions globally. Across the entire value chain, the industry could contribute to up to 18 million jobs in 2030 by securing existing positions and creating new ones. The number of projected jobs—80 percent higher than in our 2019 report—relates to the higher expected battery demand estimates for 2030. A focus on sustainability. Batteries are a major tool in the challenge to decarbonize the mobility sector and other industries—a task that is essential to avoid triggering irreversible climate tipping points. The battery revolution could reduce cumulative greenhouse-gas emissions by up to 70 GtCO2e between 2021 and 2050 in the road transport sector alone. However, the battery industry will need to prioritize the decarbonization of its own industry to maintain its credibility. Our analysis suggests that material and manufacturing emissions could fall 90 percent per kWh battery on the cell level by 2030. Further pack level emissions will mostly depend on achievements in decarbonizing aluminum, steel, and plastic production. The industry could also benefit from setting ambitious improvement targets in the nine planetary boundaries that the Stockholm Resilience Center defined and quantified. These include freshwater change, stratospheric ozone depletion, atmospheric aerosol loading, ocean acidification, biogeochemical flows, novel entities, landsystem change, biosphere integrity, and climate change. Significant improvements for all social and governmental challenges mentioned earlier are also necessary to achieve true sustainability.

Creation of a circular value chain. The battery industry has to move from a linear to a circular value chain—one in which used materials are repaired, reused, or recycled. This transformative approach may also create huge economic potential, with some opportunities already available today (for instance, scrap recycling). A large cross-industry effort and coordination will be needed for stakeholders to achieve the full potential of a circular value chain. Companies could benefit from investigating sustainable and economically viable applications that would increase circularity, or by leveraging technological advances that contribute to this goal. At a minimum, the battery industry’s growth must help fulfill basic human, product, and economic needs. Important goals include social welfare, inclusive value creation, adherence to international law, emphasis on human rights, creation of durable and performing products, and economic viability for businesses. To create a well-functioning value chain, companies should attempt to avoid any shortcomings in these areas. For sustainability, the battery industry can only achieve true sustainability if it does not overshoot any of the nine planetary boundaries that the Stockholm Resilience Center defined and quantified. Based on our extensive experience in the global battery value chain, we have identified ten transformational success factors that will pave the way for our 2030 vision in which batteries power a resilient, sustainable, and circular future. Establishing value chain circularity. Achieving circularity along the entire value chain could increase resilience against supply shortages and price volatility. It will also mitigate risks related to battery-waste disposal. Companies could gain additional value by adopting circular business models, such as battery as-a-service or mobility as-a-service,

repair, refurbishment and second-life applications. If none of these options is available, then battery recycling is essential. Circularity will necessitate cross-industry collaboration and partnerships, as well as data transparency and harmonized standards. Increasing energy efficiency and electrification share. Most large-scale battery factories that will be operational in 2030, and for many years beyond, are now being built. As such, mastering energy efficiency—for instance, via building insulation or heat recovery—is key.

Minimizing environmental impacts beyond climate A truly holistic approach will have to go far beyond producing low-carbon batteries. Stakeholders will have to take into account other planetary boundaries to ensure the global battery industry has a truly positive environmental impact along the entire value chain. Adhering to the 2022 KunmingMontreal biodiversity agreement (which includes a target to protect 30 percent of Earth’s surface by 2030) is especially important as it is a landmark in the global effort to safeguard natural habitats. It can be viewed as the equivalent to the Paris agreement for fighting climate change. Creating positive, just, and inclusive social impact. By ensuring health, safety, fair-trade standards, human rights, and inclusive dialogues, the battery industry could provide a positive impact on many local communities around the globe as it scales up. The GBA has published various rulebooks on these dimensions. Sourcing 24/7 low-carbon electricity and heat. A 2022 report by the Long Duration Energy Storage Council and McKinsey showed that traditional clean power purchase agreements only enable a 40 to 70 percent decarbonization of buyers’ electricity consumption while exposing them to market price risks stemming from renewables variability. Companies might achieve better results with timematched green energy solutions, enabled by long-duration storage technologies, which can help match supply and demand for electricity and heat during every hour of the year. The battery industry could become a frontrunner in accelerating deep decarbonization of the grid, despite its additional energy demand, if companies procured time-matched clean energy to meet all their needs. Establishing full supply-chain transparency and compliance. Data availability and transparency are fundamental requirements to ensure that the industry achieves its growth and ESG targets. This will require harmonized, credible, and trusted data. The Global Battery Alliance’s Battery Passport may be a resource here. Embracing technology innovation and flexibility. For cell manufacturers and OEMs to become leaders in technology, process optimization, and modularity, they could aim to understand market dynamics, be flexible, and adopt promising innovations.

Securing raw material and machinery supply. Companies could explore long-term agreements, and co-funding, acquisition, and streaming arrangements with raw material and equipment machinery companies to ensure adequate supplies. This might help avoid supply shortages in construction materials, skilled labor, and machinery and thus mitigate the significant delays that often occur in new production capacity projects today. Further, companies could consider securing access to capital, rigorously plan and execute complex permitting processes, and navigate import and export bureaucracy to ensure a scheduled execution. Excelling in cost and regional execution. There have been tremendous improvements in battery costs, manufacturing efficiency, and required capital expenditures over the past decade. Companies will need to continue excelling in these dimensions to remain competitive.

BATTERIES

Harmonizing international standards and regulations. Diverging manufacturing standards and local regulations increase costs and pose barriers to faster scale-ups. GBA members see harmonization as one of the most critical goals to achieve around the globe. Private-public partnerships, as well as industry alliances, could help significantly in orchestrating the alignment process by fostering dialogue in multi-stakeholder environments. In many respects, the current battery industry still acts as a linear value chain in which products are disposed of after use. Circularity, which focuses on reusing or recycling materials, or both, can reduce GHG intensity while creating additional economic value. A circular battery value chain can effectively couple the transport and power sectors and is a foundation for transitioning to other sources of energy, such as hydrogen and power-to-liquid, after 2025 to achieve the target of limiting the increase in emissions to 1.5° C above pre-industrial levels. Despite the accelerated emphasis on sustainability during the COVID-19 pandemic, global CO2 emissions reached an alltime high in 2021 and 2022—meaning that just over six years are left before the 1.5°C carbon budget is depleted. This requires the highest urgency to act. Current regulations encourage circularity, and a shift to this model could bring many benefits. For instance, companies would encounter fewer supply bottlenecks resulting from the limited availability of raw materials. Circularity could benefit the environment since companies would less frequently engage in virgin raw material mining and refining. On the financial side, companies might capture additional value if they reuse raw materials contained in end-of-life batteries.

Digital technology could increase circularity by providing the transparency and data management required to create an efficient ecosystem in which batteries and critical materials can be traced through end-of-life.

IMPROVING RECYCLING

Battery manufacturers may find new opportunities in recycling as the market matures. Companies could create a closed-loop, domestic supply chain that involves the collection, recycling, reuse, or repair of used Li-ion batteries. The recycling industry alone could create a $6 billion profit pool by 2040, by which time revenue could exceed $40 billion—more than a three-fold increase from 2030 values. Current recycling business models are costly and heavily dependent on various factors, including battery design, process quality, and shifts in market supply or raw-material demand. In addition, operational challenges, such as limited access to battery materials, inefficient processes, and low yields resulting from immature technologies, remain persistent problems in the recycling sector. Regulatory incentives, as well as corporate sustainability goals, provide companies with strong rea

sons to improve their recycling efforts by optimizing access to feedstock, technological processes, and strategic partnerships throughout the battery value chain. Companies could also improve recycling by drawing on knowledge gained from lead acid battery recycling.

REGIONAL VARIATIONS IN THE VALUE CHAIN

Value chain depth and concentration of the battery industry vary by country (Exhibit 17). While China has many mature segments, cell suppliers are increasingly announcing capacity expansion in Europe, the United States, and other major markets, to be closer to car manufacturers. Partially because of recent regulatory changes, these new locations could provide almost 40 percent of global capacity in 2030. Although current globally-announced nameplate capacity of Li-ion cell factories exceeds our market demand projections, there are several reasons why it will likely remain a supplier’s market with temporary supply bottlenecks: not all announced projects will be executed, not all will operate at full capacity, and many will be delayed. Further, battery cells are not sold on a free-floating spot market but via long-term supplier contracts. Despite rising local demand, China will likely continue to have significant overproduction capacity, while Europe and North America might not be able to meet their own local demand for cell production. Although companies in many locations are still announcing new capacity, local growth comes with challenges. Management of the upstream supply chain will remain critical given the nature of regional raw material availability. Players in the battery value chain who want to localize the supply chain could mitigate these risks through vertical integration, localized upstream value chain, strategic partnerships, and stringent planning of manufacturing ramp-ups. The battery value chain is facing both significant opportunities and challenges due to its unprecedented growth. It is probably one of the most ambitious scaling and ESG transformations that this highly complex and global product value chain has seen. It will require stringent efforts, cross-industry collaboration, technological disruptions, public-private-partnerships and increased research activities to succeed. If mastered, however, the industry scale-up will potentially create more than $400 billion in value-chain revenues by 2030, contribute to up to 18 million jobs along the entire value chain and around 70 GtCO2e avoided cumulative road transport emissions from 2021 to 2050. We strongly believe that a resilient, sustainable, and circular global battery value chain is not only possible but also admirable to achieve sustainable inclusive growth.

ARENA BACKS EIGHT GRID SCALE BATTERIES WORTH $2.7 BILLION

On behalf of the Australian Government, the Australian Renewable Energy Agency (ARENA) has announced $176 million in conditional funding to eight grid scale battery projects across Australia. Funded under ARENA’s Large Scale Battery Storage Funding Round, each battery will be equipped with grid-forming inverter technology, allowing them to provide essential system stability services traditionally provided by synchronous generation such as coal and gas. With a total project value of $2.7 billion and a capacity of 2.0 GW / 4.2 GWh these projects represent a tenfold increase in grid-forming electricity storage capacity currently operational in the National Electricity Market. The developers and projects ARENA has selected for support are:

• AGL: a new 250 MW / 500 MWh battery in Liddell, NSW.

• FRV: a new 250 MW / 550 MWh battery in Gnarwarre, VIC.

• Neoen: retrofitting the 300 MW / 450 MWh Victorian Big Battery in Moorabool, VIC to enable grid-forming capability.

• Neoen: a new 200 MW / 400 MWh battery in Hopeland, QLD.

• Neoen: a new 200 MW / 400 MWh battery in Blyth, SA.

• Origin: a new 300 MW / 900 MWh battery in Mortlake, VIC

• Risen: a new 200 MW / 400 MWh battery in Bungama, SA.

•TagEnergy: a new 300 MW / 600 MWh battery in Mount Fox QLD.

The Large Scale Battery Storage Round was launched in December 2021 with an initial funding envelope of $100 million. In recognition of the high quality of applications received, this was expanded to $176 million, including $60 million in additional funding provided to ARENA by the Australian Government in the October 2022 budget as part of its Support for Energy Security and Reliability budget measure. The eight successful projects were chosen from a shortlist of 12 projects announced in July. ARENA received 54 expressions of interest for the competitive funding round. ARENA CEO Darren Miller said the batteries represent a transformative portfolio of new storage capacity. “Battery storage is an essential technology in the transition to renewable energy, allowing us to smooth out variable generation and store electricity for when it’s needed,” Mr Miller said “These next generation grid scale batteries will underpin this transition, with inverter technology that can maintain grid stability without the need for coal and gas generators. This pipeline of grid-forming projects will help move us closer to an electricity grid that can support 100 per cent renewable energy in the NEM. With the high quality of proposals we received, ARENA and the Government saw an opportunity to deliver a step change in grid-forming capability across the NEM, which we’ve backed with additional funding.” ARENA has previously provided $81 million in funding for eight grid scale batteries, including five with grid forming capability at a smaller scale. The 150 MW / 194 MWh Hornsdale Power Reserve in South Australia, which received ARENA funding for its 2019 expansion, is currently the largest grid forming battery in Australia. The previ

ous projects have highlighted the potential of grid-forming batteries and the need to support further projects at a larger scale to build experience with the technology, de-risk investment and drive further innovation from inverter manufacturers. The funding round will also help to overcome current commercial and regulatory barriers to large scale deployment. All the batteries are expected to reach financial close in 2023 and be operational by 2025. For more information visit ARENA’s Large Scale Battery Storage Funding Round. Media event will be held onsite at Wallgrove Grid Battery on December 17 2022 at 11:00am with Minister Bowen. For further information, contact bowenmedia@industry.gov.au. ARENA previously funded the 50 MW / 75 MWh Wallgrove Grid Battery in western Sydney. The battery was delivered by Transgrid in partnership with the NSW Department of Planning and Environment, Tesla and Iberdrola. It is now fully operational and is the first ‘big battery’ in NSW.

Source: arena

INDIGENOUS FORESTS ARE SOME OF THE AMAZON’S LAST CARBON SINKS

FForests around the world play a major role in curbing or contributing to climate change. Standing, healthy forests sequester more atmospheric carbon than they emit and act as a carbon sink; degraded and deforested areas release stored carbon and are a carbon source. orests are a net carbon sink globally, but there’s huge variation locally. Our analysis finds that forests managed by Indigenous people in the Amazon were strong net carbon sinks from 2001-2021, collectively removing a net 340 million tonnes of carbon dioxide (CO2) from the atmosphere each year, equivalent to the U.K.’s annual fossil fuel emissions.Meanwhile, forests outside of the Amazon’s Indigenous lands were collectively a carbon source, due to significant forest loss. The research underscores the need to help Indigenous people and other local communities safeguard their forest homes and preserve some of the Amazon’s remaining carbon sinks.

INDIGENOUS PEOPLES ARE STRONG FOREST PROTECTORS

For Indigenous people and other communities, their land is a primary source of food, medicine, fuelwood and construction materials, as well as employment, income, welfare, security, culture and spirituality. Community land is also a basis for social identity, status and political relations. A growing body of research shows that lands managed by Indigenous people — both through legal title and informal, customary ownership — have lower deforestation rates than similar lands managed by other forest users. Lands legally held or titled to Indigenous people exhibit even lower deforestation rates than untitled Indigenous lands, underscoring the importance of tenure security to sustainable land management. Moreover, research shows that lands held by Indigenous people and other communities — much of which is forested — are rich stores of carbon, and a significant share is held only under customary tenure arrangements, where land is not legally recognized as belonging to the communities or titled to them by the government. The extent to which these forests are carbon sinks or sources, however, has not been explored in depth until now. Here’s what our analysis shows:

CARBON FLUX: HOW FORESTS SERVE AS CARBON SINKS — OR CARBON SOURCES

The world’s forests, which cover about 30% of Earth’s land, absorbed approximately 7.2 billion more tonnes of CO2 per year than they emitted between 2001 and 2021, about twice as much carbon as they released. Deforestation, degradation and other disturbances, however, have already turned some of the world’s most iconic forests into carbon sources and threaten to convert others. The Amazon, the world’s largest tropical forest, remains a net carbon sink, but it teeters on the edge of becoming a net source. Southeastern Amazonia already emits more carbon than it sequesters. Over the past 40-50 years, an estimated 17% of Amazonian forest has been lost, of which over four-fifths was converted to agricultural land, mainly pastures. Scientists estimate that deforesting 20% of the Amazon could push it past a tipping point, triggering a large-scale dieback that would release more than 90 billion tonnes of CO2 into the atmosphere (approximately 2.5 times greater than annual global fossil fuel emissions), transform the forest into a savannah and disrupt rainfall across South America.

About 1.5 million Indigenous people from 385 different ethnic groups reside in the Amazon bioregion, which includes portions of Bolivia, Brazil, Colombia, Ecuador, French Guiana, Guyana, Peru, Suriname and Venezuela.3 Indigenous people hold about 29% of the bioregion, of which almost half is in Brazil. Given that forests make up more than 80% of the bioregion, these collectively managed lands —henceforth referred to as “Indigenous forests” — are vital for halting forest loss. Our analysis of carbon emissions and removals finds that Indigenous forests in all nine Amazonian countries were net carbon sinks between 2001 and 2021, collectively emitting an average of 120 million tonnes of CO2e per year and removing 460 million tonnes CO2/year, making them a net sink of 340 million tonnes of CO2e/year.4 However, the relative magnitudes of emissions and removals — known as carbon fluxes — varied greatly between countries.

THE AMAZON’S INDIGENOUS FORESTS ARE LARGELY CARBON SINKS, BUT STRENGTHS VARY

The relative magnitudes of removals and emissions can be considered an indicator of how “secure” a carbon sink is. A higher ratio means that emissions must increase more, or removals must decrease more, to turn the area into a net carbon source. For example, Indigenous forests in Bolivia and Peru had higher emissions relative to removals — and thus were closer to turning into carbon sources — than Indigenous forests in Brazil, which removed about 4 times more carbon than they emitted. Indigenous forests are net carbon sinks in all 9 Amazonian countries (2001-2021)

DECARBONISATION

INDIGENOUS FORESTS PRODUCE FAR LESS EMISSIONS THAN OTHER FORESTS

While Amazonian countries with more Indigenous forest area naturally had larger carbon fluxes, the annual carbon flux per hectare — or the carbon flux density — varied little among the countries’ relatively stable, mature Indigenous forests. From 2001 to 2021, the carbon flux density ranged from a net sink of roughly 0.78 tonnes CO2e/hectare/year in the Bolivian Amazon to 2.0 tonnes CO2e/hectare/year in the Colombian Amazon. Outside Indigenous lands, however, annual net carbon flux density varied considerably, from forests in the Brazilian Amazon emitting 1.4 tonnes CO2e/hectare/year to forests in French Guyana removing 2.0 tonnes CO2e/hectare/year. This reflects the differences across Amazonian countries in how much forest outside Indigenous lands are being degraded and lost.

Outside Indigenous Lands, the Amazon Forest Is a Net Carbon Source Forests in the Amazon bioregion outside Indigenous lands were collectively a net carbon source between 2001 and 2021. These forests emitted 1.3 billion tonnes CO2e/year due to forest loss and removed about 1 billion tonnes CO2/year, making them a net source of approximately 270 million tonnes CO2e/year, equivalent to the annual fossil fuel emissions from France.

OUTSIDE INDIGENOUS LANDS, THE AMAZON FOREST WAS A NET CARBON SOURCE BETWEEN 2001 AND 2021

Indigenous forests were stronger net carbon sinks per hectare than most forests outside Indigenous lands between 2001 and 2021 The contribution of Indigenous forests to mitigating climate change comes primarily from their lower emissions compared to forests outside Indigenous lands, as opposed to more efficient removals. Our analysis shows that the carbon emissions per hectare of forest inside Indigenous lands were much lower than for outside Indigenous lands (0.60 tonnes CO2e/hectare/year inside and 3.2 tonnes CO2e/hectare/year outside, respectively), while Indigenous forests captured about as much carbon per hectare of forest as forests outside Indigenous lands (2.2 tonnes CO2/hectare/year inside and 2.5 tonnes CO2/hectare/year outside). Given that forest loss drives carbon emissions, this finding shows that the focus of forestrelated climate change mitigation in Indigenous lands should be on keeping emissions low by protecting standing forest.

OTHER COMMUNITY LANDS ARE ALSO STRONG CARBON SINKS

Forest loss in Brazil, which comprises three-quarters of total regional loss, is the driving factor. Forest loss outside Indigenous lands in the Brazilian Amazon was such a significant source of carbon it counteracted the effects of the other Amazonian countries, which were either small carbon sinks or carbon sources. In Brazil, forests outside Indigenous lands are rapidly being lost to commercial farming and cattle ranching, extractive industries, infrastructure and other developments.

Carbon fluxes in Amazonian Indigenous forests are not alone in their ability to curb climate change. While most communities in the Amazon identify as Indigenous, many Afro-descendent communities — descendants of enslaved Africans — also hold and manage land in a collective manner. Our analysis of Afrodescendant forests in Brazil found that about 90% were net carbon sinks from 2001 to 2021.5 Removals were about twice as large as emissions (3.5 million tonnes CO2/year vs. 1.6 million tonnes CO2e/year), and their net sinks per hectare were comparable to those of Indigenous forests in Brazil (1.6 tonnes CO2e/hectare/year in Afro-descendent forests vs. 1.7 tonnes CO2e/hectare/year in Indigenous forests).Further, our analysis of carbon fluxes in Indigenous forests in Mexico and the Philippines as well as community forests in Mexico (peasant communities that do not identify as Indigenous, but hold and man

DECARBONISATION

age land in a collective manner) shows that many communities around the world are helping to fight climate change through forest stewardship.6 Collectively held forests in Mexico and the Philippines were net carbon sinks, sequestering 70 million more tonnes of CO2/year than they emitted from 2001 to 2021, comparable to the fossil fuel emissions of Romania. Their net sinks per hectare were also on par with the net sinks per hectare of Amazonian Indigenous and Afro-descendant forests.Unlike in the Amazon, however, forests outside collective lands in Mexico and the Philippines were carbon sinks.

INDIGENOUS FORESTS IN THE AMAZON ARE UNDER THREAT

Between 2001 and 2021, approximately 94% of Indigenous forest area in the Amazon bioregion was a net sink7, ranging from about 99% of Indigenous forests in Venezuela to about 76% in Bolivia. The remaining 6% of Indigenous forest area was a net carbon source, responsible for 42% of Indigenous forests’ emissions in the Amazon. This percentage, however, varied by country. In Colombia, for example, 2% of Indigenous forests were responsible for 21% of their emissions, and in Suriname, 11% of Indigenous forests were responsible for half their emissions. While many Indigenous forests in the Amazon are threatened, this finding suggests that the carbon in some Indigenous forests is under much greater pressure than in others. And while many Indigenous communities have successfully shielded their forests from development and other pressures, threats are mounting. As competition for land intensifies, land disputes between Indigenous people and external actors, especially governments and companies, are becoming more common and growing more dangerous. An increasing number of Indigenous people in the Amazon and elsewhere are being harassed, arrested and murdered for their efforts to protect their land. Latin America is consistently ranked as the region with the most killings of land and environmental defenders.

HOW TO PROTECT INDIGENOUS FORESTS AND THE CARBON THEY HOLD

As more forests are lost and converted to other uses, Indigenous and other community forests stand out as stable carbon sinks that must be secured. Some of the most pressing strategies to protect Indigenous forests include:

• Recognize community lands in climate strategies: Community forests can play a major role in helping countries meet their international climate action commitments. In Brazil, Colombia, Peru and Mexico, for example, Indigenous forests sequester emissions equivalent to an average 30% of their countries’ national emissions-reduction pledges, known as Nationally Determined Contributions (NDCs). The climate community — including international negotiators, national policymakers, donors and civil society leaders — should recognize the mitigation contributions of community forests. Forested countries with large areas of community land should make them a central component of their climate action strategies.

• Secure and protect community lands: Securing community lands is a low-cost, high-benefit investment and a cost-effective carbon mitigation measure when compared to other carbon capture and storage approaches. Governments should support communities in their efforts to protect and sustainably manage their land. Such assistance might include help in monitoring collective lands, apprehending and bringing to justice unlawful intruders, strengthening community organizations, and protecting community land and environment defenders. Governments should also establish accessible and transparent procedures to

register community land in a government cadaster and document it with a land certificate or title.

• Increase funding to communities. Official development assistance (ODA) is under-supporting communities for their climate change mitigation contributions. From 2011 to 2020, bilateral, multilateral and private foundation donors disbursed about $2.7 billion for projects supporting community forest management in tropical countries, less than 1% of ODA for climate change and less than 5% of ODA for general environmental protection. Should community forests be degraded or lost, large stocks of carbon would be released into the atmosphere and the lands would no longer be able to sequester the same amount of carbon. Governments and donors should channel more financial resources to communities and their organizations, recognizing that they’re some of the world’s best forest protectors. There is much that can be done to protect forests and the communities who call them home. At stake is not just the fate of carbon, but people’s lives and lifestyles.

GETTING TO CARBON-FREE COMMERCIAL FLEETS

Commercial transport operators can take action now to decarbonize their fleets and start to lower their total cost of ownership.

As global temperatures continue to rise, the clock is ticking on climate change.1 And with transport being the secondbiggest industrial emitter of greenhouse gases, the same is true for internalcombustion engines (ICE). One reason is that the climate arguments for electrification are incontrovertible. Indeed, through 2030, total electrification of global transportation would drive 15 percent of the abatement required to keep warming below 1.5°C. Passenger vehicle decarbonization is under way on every continent, with sales of electric vehicles reaching all-time highs. However, commercial fleets are a different story. Worldwide sales of electric light commercial vehicles (LCVs) were less than 200,000 units in 2021, compared with six million electric passenger cars. Electric passenger cars now account for 6 percent of all car sales, while electric LCVs account for just 2 percent of sales in that vehicle segment. Why has electrification of commercial vehicles lagged that of passenger cars? A primary cause is that commercial vehicles are usually heavier and travel longer distances, putting extra pressure on lithium ion batteries. In addition, fleet infrastructure costs are high: the Level 3 DC chargers required for commercial fleets are much more expensive than the Level 1 chargers often used for passenger vehicles. This creates a chicken-and-egg paradox: operators need an installed base of charging infrastructure before transitioning, but infrastructure builders want to see more vehicles being sold before investing. Moreover, there is a psychological hurdle to overcome, with some in the industry not yet convinced that battery power is fit for commercial usage. Finally, some uncertainty remains about winning technology. That said, decarbonization also offers fleet operations substantial opportunities. With commercial vehicles responsible for a third of transportation emissions, electrification at scale would insulate them against regulatory dynamics, improve their brand equity, and play a significant role in slowing climate change.4 Moreover, across industries, tackling transportation emissions would be one of the most cost-effective abatement options. Many use cases are already in the money, and most others are projected to reach cost parity with ICE by 2030. Amid rising expectations to “do something,” many fleet operators are responding. Research shows that 75 percent of the 200 largest US fleet operators—responsible for about 1.2 million vehicles—have committed to decarbonization targets for public fleets, and many are starting to invest.5 Almost 50 percent of fleet owners have purchased an electric vehicle or plan to purchase one in 2022.6 Further, more than 50 percent plan to operate fully carbon-free fleets by 2027, and 90 percent plan to fully decarbonize eventually. The momentum is toward decarbonization.

DRIVERS OF DECARBONIZATION

One reason for accelerating momentum on commercial-vehicle decarbonization is that many customers desire it, because they seek to reduce emissions through the value chain. In addition, regulators are ramping up pressure—for example, through the US Environmental Protection Agency’s 2021 Clean Trucks Plan. And there is strong anecdotal evidence that people prefer working for more sustainable companies, meaning that it is easier for greener companies to attract top talent. Another driver is increasing availability of financing—in particular, lowcost financing for the green transition through sustainability

bonds, green bonds, and green loans. The outstanding value of sustainable instruments globally has grown by 57 percent a year since 2017, reaching $1.4 trillion in 2021.7 And despite headwinds associated with technology uncertainty, there is a rising supply of electric LCVs and medium-duty trucks. Finally, there are increasingly powerful arguments on costs, enabled by an eightfold increase since 2008 in the volumetric energy density of lithium ion batteries and scaling effects in manufacturing.8 Indeed, zero-emissions vehicles are projected to reach total cost of ownership (TCO) parity across multiple use cases in the next decade. In general, shorter-distance and lightervehicle use cases will reach cost parity sooner (Exhibit 1). One reason is that shorter distances often involve more stop-start driving and therefore more regenerative braking to extend battery life. For medium- to long-haul use cases, TCO parity will come toward the end of the decade. That should not detract from the opportunity for fleet operators to strategically deploy zero-emissions options sequentially.9

The truck segment closest to TCO parity today is LCVs. In terms of cost per mile, electric LCVs will be 5 to 10 percent cheaper than ICE vehicles by 2025, our analysis shows.10 The high up-front cost of the vehicle and charging infrastructure will be more than offset by reduced operating costs. The biggest efficiencies will be in fuel and maintenance, which would see cost-per-mile reductions of 60 percent and 70 percent, respectively (Exhibit 2).

DECARBONISATION

tinguish leading businesses from the rest. This is particularly the case as operators contend with the current supply chain constraints and economic uncertainty. Key enablers for decarbonization will include robust planning, speedy action, and the ability to control costs. Not all companies are equally well positioned to implement these capabilities. Indeed, 53 percent of operators say they lack the necessary expertise.11 As operators consider their options, four major themes are likely to dominate their strategic considerations: support infrastructure, fleet requirements, economics and sustainability, and vehicle types (Exhibit 3).

Any comparison is subject to volatility in the price of energy. A 50 percent increase in the price of electricity, for example, would drive the cost of battery electric vehicles (BEVs) up by 5 to 10 percent. Conversely, a 50 percent rise in the price of gasoline would spur a 20 percent increase in ICE costs, pushing the BEV advantage to 20 to 25 percent per mile. Furthermore, as demand for BEVs increases relative to ICE vehicles, the residual value of BEV assets will likely rise, driving TCO advantage. Of course, change rarely happens all at once. During the transition to BEVs and fuel cell electric vehicles powered by hydrogen, alternative power sources such as compressed natural gas and liquid natural gas may offer potential bridges before cost parity is achieved in all use cases.

EXECUTING A SMOOTH TRANSITION

Transitioning to a decarbonized fleet presents operators with significant opportunities. But with so many players looking to make the transition simultaneously, excellent execution will dis

Fleet operators planning for and executing decarbonization must grapple with complex issues, but time is of the essence. Being among the early movers in planning for infrastructure rollout and addressing operational challenges can give operators an advantage in securing assets and realizing TCO benefits. Companies that delay their transition risk lower asset availability amid rising demand and supply bottlenecks, along with significant reputational, legal, and financial risk if they cannot keep up with changing regulations and consumer expectations. In short, the industry is approaching a point at which fleet decarbonization will become a significant business opportunity and strategic differentiator. The evidence on costs and technology suggests that first movers will benefit most, by capturing value and developing the know-how that will translate into sustainable competitive advantage.

Source: mckinsey

HOW PEOPLE AND ORGANIZATIONAL MOVES CAN POWER UP ENERGY FIRMS IN 2023

Energy companies are facing unprecedented times: crises like Russia’s invasion of Ukraine and the COVID-19 pandemic are foremost humanitarian issues, but have also highlighted the need for affordable, reliable, and secure energy. At the same time, climate-change mitigation demands a mindset reset. Although the challenges might seem daunting, energy companies can draw on the experiences of others within the sector, and beyond, who are finding solutions and scanning the horizon for new opportunities. In this article, we explore four themes energy companies could consider over the coming year: operating models, talent, portfolio shifts, and leadership. Each issue is illustrated by a company example, followed by a set of questions organizations can ask themselves when plotting their own journey in 2023.

EXECUTING A SMOOTH TRANSITION

Change can bring anxiety, but it can also bring opportunity, and 2023 offers rewards for those companies that organize to compete and win, in both their traditional core energy business and when developing and scaling new growth engines.

EXECUTING

A SMOOTH TRANSITION

In the traditional business, companies are under pressure to provide affordable, reliable, secure, and cleaner energy to global markets in the near term. In addition, they recognize that the operating model for assets of the future will have to fundamentally transform to produce competitive hydrocarbons with lower carbon intensity.

Leading companies have started their journey toward the asset of the future by combining three elements:

A shifting landscape means energy companies need to rev up—and people and organizational topics are at the heart of firms that are successfully navigating the road ahead.

• Radically simplifying to align standards, processes, maintenance builds, and other crucial elements, with operating strategy tailored to the maturity of the asset.

• Organizing for agility by deploying cross-functional teams built around clear business missions and implementing a rigorous quarterly prioritization of activity to create a flatter, empowered organization.

• Digitizing where it makes sense, building capabilities along the way, and integrating digital solutions with new processes and ways of working.

Such changes can position businesses to succeed in the coming decade and capture necessary value in the near term. What’s more, building such an asset of the future can bring renewed purpose and transform employee engagement in the traditional core. For example, in response to rising European gas prices, an operator altered its operating model, working on all three elements in parallel. The results were rapid: the new flexibility allowed the business to swiftly redirect and reconfigure drilling teams from plugging and abandonment activity to workovers. This reallocation of resources had not been possible in the company’s traditional model and, by rapid reprioritization, it captured $10 million in incremental value within months.

NEW ENGINES OF GROWTH

Energy leaders are also wrestling with how to incubate and scale new growth businesses. Success here is a delicate balancing act between giving a new-growth business independence and autonomy, and ensuring it can take advantage of the parent company’s institutional and customer muscle. The challenge is how to get that balance right. Our research shows that most corporate new-business builds are not a great success—from 2000–2019, just 16 percent of Fortune 100 companies went on to become blockbuster successes; the remainder were partially successful at best.1 Winning companies have found a solution: they put aside past biases and anchors and carefully consider both the optimal operating model for their own growth businesses (the best structure, processes, and people to drive success) and the right level of integration versus independence. This approach allows the new companies to thrive, independent of the historic mode in which the traditional parent company operates. For example, various companies are evolving to models that include separating start-ups from the mothership, allowing flexible salaries and different metrics for success, establishing governance frames to allow growth engines the freedom and responsibility to make their own decisions, and identifying different KPIs to measure success in nascent businesses.

ATTRACTING, RETAINING, AND RETRAINING TALENT FOR A NEW ERA

The COVID-19 pandemic caused a wave of attrition and movement in talent, and businesses globally are struggling to find ways to keep and upskill employees—and attract new people who have very different needs to employees of the past.2 For energy companies, the talent turmoil has been compounded by a convergence of other challenges, such as an aging workforce, skill gaps in the engineering expertise needed for renewables and digitalization, and intensified competition from nontraditional peers. Companies also need to determine what skills will be needed in ten years time. And to complicate matters further, public utilities are finding themselves in competition with big tech while oil and gas companies are shedding

retirement-age workers and need to offer younger—and more idiosyncratic—workers good value propositions in a highly competitive talent market. In this environment, the solution will differ for each company based on current talent makeup, technology changes, upskilling needs, and proximity to hiring hubs. Company culture must alter, not just to keep pace with change, but to get everyone to embrace and welcome that change. This is not just about lines on an organizational chart, but core competencies, the ability to capture, scale, and sustain value, and lasting competitive advantage. One thing is sure: the companies that act on this proactively will extend their competitive distance in the industry. Businesses face an important consideration when dealing with this regeneration of talent: how to shift to a cohesive culture that speaks more clearly to the talent needed. How can a company foster ideas and behaviors conducive to maintaining and improving performance in the organization—especially when new generations entering the workforce have different expectations from those that came before? The companies that most successfully pivot start with “win rooms”: fully dedicated, small teams of recruiting and technical experts that work in competitive sprints to pilot and prove out new ways of talent attraction and retention. This includes split-testing employee value propositions (such as attracting tech talent by emphasizing the company’s role in the new energy environment), building pipelines from nontraditional sources (like insurance industries), partnering with the business to scenario test strategic workforce plans, and redesigning career paths to provide technical experts with the chance of promotion outside of management. For example, by using a win room, a Midwestern utility was able to hire more than 40 critical digital roles at a rate four times faster than prior efforts. Placement of these 40 leadership roles de-risked delivery of a $200 million annual, run-rate portfolio and allowed the utility to scale down significant reliance on external vendors.

PORTFOLIO PIVOTS TO FUTURE-PROOF PROSPERITY

The mergers and acquisitions (M&A) landscape among energy companies has evolved significantly over the last decade. Long gone is the traditional approach to M&A where companies periodically review their target list and often use low-price environments to pursue targets and make up for limited portfolio growth. Sustained high prices have allowed producers to improve their financial health by reducing debt, increasing share buybacks, and growing dividends. A renewed wave of M&A is expected in the energy sector in 2023, and it could look very different with higher prices, controlled production growth, and a renewed focus on cash flows—producers need to ensure they remain focused on delivering high total returns to shareholders. With an increased focus on resilience and carbon intensity, the boundaries for potential acquisitions have shifted out, as many more players compete for low-carbon energy opportunities. For instance, refiners are taking an interest in upstream integration of renewable feedstock, while traditional upstream players are starting to move downstream by investing in renewable energy. In addition, many energy companies have turned their attention to divestments or carve-outs to find ways to separate carbon-intensive assets. In doing so, they balance the need to achieve net-zero targets without completely foregoing valuable cash-flow streams from carbon-intensive assets (especially at today’s prices) that help fund the transition. All of this requires new skills and flexibility to look at both M&A and divestitures in parallel. The most successful mergers take a holistic, no-stoneunturned approach to value creation, with an increased focus on assessing how one’s capabilities can be transferred to adjacencies to create a “best-owner” advantage. This will ensure companies create value from M&A by opening the aperture

DECARBONISATION

beyond support services (general and administrative) to include operational synergies across revenue and production, operational costs, supply chain, technology, and capital efficiency. From our analysis, we have seen multiple energy mergers where success has come from focusing on value capture, operating-model design, talent selection, culture transformation, and technology blueprint. For example, a European diversified energy company, that set itself ambitious sustainability targets for which it needed to transform its current portfolio of businesses, started preparing for potential acquisitions and divestments before having clarity about the ultimate transaction outcomes. The company understood that there were few unique synergies between many of its businesses and that each part would be better positioned to respond to headwinds or accelerate to capture tailwinds if given more autonomy. They embarked on a company-view, portfolio-transformation journey, making legacy businesses more standalone and establishing new businesses, each with a fit-for-purpose operating model, which was supported by a redesigned and leaner corporate center.

FINDING A NEW SWEET SPOT FOR THE C-SUITE

The changing energy landscape demands a new style of leadership to secure value from existing assets, while finding and developing new value in emerging low-carbon and green markets. Successful companies have found ways to do this, including balancing old and new business models, risk profiles, and cultures; operating with substantially greater speed and en trepreneurialism, especially in the new energy sector; achieving new forms of intensive collaboration (both internally and externally in the emerging energy ecosystems); and meeting

the challenge of attracting and retaining talent through more purpose-driven and emotionally engaging leadership styles. Leadership transformation has manifested in various ways across companies. Some have developed highly targeted leadership development programs that focus on unlocking “hard” skills (bolder strategic action, building profitable hydrogen and carbon capture, utilization, and storage value chains) and “soft” skills (fostering teamwork and collaboration, and building health and resilience into company leaders). In the face of more serious threats from competitors, various organizations have recognized the need to substantially upgrade their top 150-plus leaders to break away from old, more bureaucratic and conservative ways of operating into new ways of thinking. Companies that have already committed to more dramatic strategic pivots have undertaken ambitious, multi-year cultural transformation programs—usually combined with bringing in new non-traditional oil and gas talent and promoting greater empowerment and diversity throughout their organizations. For example, a leading oil-field service and equipment company has embarked on a two-year journey with its top leaders, followed by the next 150 senior staff, focusing on the leadership shake-ups needed to thrive in the new normal. All energy companies need to critically evaluate future leadership requirements in the light of their strategies, and then consciously implement programs to build growth-enhancing leadership assets. The coming years for the energy sector will not just be about technical innovation and adoption, nor scientific breakthroughs; people and organizational performance are also vital to adapting to the changing environment. Flexible models, leadership, talent strategies, and portfolio shifts are four key areas on which energy companies could focus to achieve success and be at the forefront of change, starting in 2023.

Source: mckinsey

WHAT THE WORLD REALLY NEEDS TO ADAPT TO CLIMATE CHANGE

From deadly floods in Pakistan to droughtdriven starvation in the Horn of Africa, the system-wide effects of the climate change crisis are already here. Even if the world hits its target of limiting global temperature rise to 1.5 degrees C (2.7 degrees F) — which all signs point to us overshooting — many dangerous climate change impacts are already locked in. The most recent UN climate summit (COP27) brought mixed results for adaptation and left many disappointed. On the one hand, COP27 achieved an historic breakthrough, with wealthy nations agreeing to establish a fund to support vulnerable countries in responding to losses and damages caused by climate change. On the other hand, despite adaptation being a central focus of the summit, key decisions on finance and implementation fell short of expectations. The world is left far from where it needs to be in terms of securing a resilient future in the face of intensifying climatic shifts and impacts. Adaptation is still chronically underfunded and action continues to lag, despite growing awareness of the critical need for it, repeated calls to scale up meaningful action, and a growing number of national governments issuing adaptation plans. And continued fossil fuel use means the impacts of climate change are likely to intensify, making adaptation more

important, but also more difficult. So, what is needed to get us on track and adapt to the pace of the changing climate? Here are four priorities for making people and systems more resilient to the climate crisis.

Every year since 2014, the UN’s Adaptation Gap report estimates the chasm between how much finance the world needs for adaptation and how much is being provided. And every year, that gap widens. Adaptation finance needs are projected to reach $340 billion annually by 2030, exponentially more than the $21.8 billion of adaptation finance expected to be available by 2025 if current trends continue. Low-and middle-income countries across Asia, Africa and Latin America, including all Small Island Developing States (SIDS), likely need 5-10 times more than this amount, with needs increasing with time. Of the little finance that is available, not enough reaches countries most vulnerable to the impacts of climate change. For example, according to the OECD, 70% of the climate finance provided and mobilized by high-income nations went to middle-income countries as opposed to low-income, highly vulnerable nations. The public and private sectors can and should scale up their contributions to adaptation, but there are actions countries can take to better position themselves to attract it. Countries can revolutionize their understanding of climate risks and develop robust plans for climate adaptation that include quantified adaptation needs and a methodology to track adaptation finance. As shown in a WRI review of national climate plans (known as NDCs), only 22 of 86 countries included cost figures for their adaptation priorities. Adaptation funding entities will find it easier to approve finance to countries with good policies, smart project design and well-structured adaptation investments. Mainstreaming climate risks into economic policies and development plans can improve adaptation finance and outcomes. Until adaptation finance is more readily available, the global costs will have real and large effects on vulnerable communities. People in flood- and hurricane-prone regions can’t build storm shelters without finance. Farmers can’t purchase water-harvesting technologies and sturdier seedlings to withstand crop-withering droughts. And healthcare workers won’t receive the trainings they need to manage increasing vectorborne diseases.

The quality of adaptation finance is also important. The concept of quality spans everything from access and accountability to having implementable projects and achieving positive impacts. Funders can improve the quality of adaptation finance by becoming more:

• Aligned with the “subsidiarity principle,” which asserts that decision-making about adaptation investments should be devolved to the lowest-appropriate level. This helps ensure that finance supports the adaptation priorities of the people most directly affected, while also recognizing that the most local level is not always the most appropriate, and that “local” encapsulates a wide and diverse range of actors.

• Flexible, with policies that allow local actors to control funds in ways that best fit their needs and evolving contexts, while still maintaining good transparency and accountability.

• Patient, by allowing for longer timeframes for achieving desired outcomes. Longer-term finance can support capacitybuilding and investment in local institutions. It also provides time for communities and stakeholders to learn what works and adapt to changing conditions.

• Predictable, so that local actors and other partners can count on continued or future funding and plan accordingly.

• Efficient, so that financing flows to projects with clearly defined goals, high local implementation capacity, and a strong

likelihood of delivering benefits.

• Grant-based, so that countries can finance their adaptation needs without going deeper into debt. Many adaptation investments provide crucial public goods, but not always high revenues, requiring grant-based rather than loan-based finance.

3) IMPROVED IMPLEMENTATION AND TRACKING OF ADAPTATION PROJECTS

Securing more, higher-quality adaptation finance is essential for countries to move from adaptation planning to implementation. And to ensure progress is happening, countries must strengthen their national public financial management (PFM) systems to track project implementation. PFM refers to the entire set of policies and processes that govern how countries use public funds across all sectors, from revenue collection to monitoring public expenditures. It includes how budgets are allocated and whether results are achieved. Given that climate change risks can affect all sectors, PFM systems can help identify and manage those risks. While PFM systems won’t replace technical knowledge and planning, they do help track progress. They also help provide necessary information for technical monitoring, evaluation and learning (MEL). PFM and MEL systems are critically important, yet underdeveloped. According to a 2021 study, over 60% of countries that submitted a national adaptation plan to the UN were not yet tracking its implementation. Although countries are making headway on setting up climate PFM systems, many need more support to do so, including resources like staff, technical expertise, data management and financing. Uruguay offers a powerful example of setting up a strong MEL system. The country developed a robust tracking system for multi-sectoral adaptation measures, including diverse priority areas from cities and land-use planning to agriculture and coastal areas. Uruguay invests in data collection to monitor measures being implemented, including producing a publicly available mapping platform of adaptation projects across the country. International climate finance from the Global Environment Facility and E.U. have been critical to operationalizing and maintaining these efforts.

1) MORE ADAPTATION FINANCE WHERE IT’S MOST NEEDED

2) BETTER QUALITY ADAPTATION FINANCE FOR THOSE WHO NEED IT MOST

DECARBONISATION

4. EQUITABLE AND JUST TRANSITIONS FOR ADAPTATION

The impacts of climate change are exacerbating existing socioeconomic injustices. Low and middle-income countries — which contributed the least to causing the climate crisis — are the most vulnerable to its impacts and have the fewest resources with which to adapt. Climate injustices are evident even within countries. For example, in the aftermath of Hurricane Ian in the U.S. state of Florida, lower-income, predominantly Black communities haven’t seen the same level of support and attention as more affluent, predominantly white communities. Investments to build resilience, then, must account for inequities in income, education, social capital and political power to avoid unintended consequences and compounding risks for already-vulnerable groups. For example, improving access to water resources for large-scale farmers and agribusiness at the expense of smallholder farmers can exacerbate existing inequities in income and access to natural resources. People often talk of a “just transition” to clean energy systems that will not leave fossil fuel workers and communities behind. Likewise, we need a just transition for climate resilience. This means ensuring groups experiencing disproportionate climate vulnerability have equitable access to resources (distributive justice) and decision-making opportunities (procedural justice). Locally led adaptation, in which local actors are meaningfully involved and empowered in resilience-building projects from design to implementation, is one adaptation approach that can help address structural inequities. A recent study found that leaving vulnerable and affected groups out of adaptation planning

and implementation can lead to negative consequences, such as consolidating resources into the hands of wealthier or more influential community members (also known as “elite capture”), limiting local access to resources and land, or even increasing climate vulnerability by implementing ineffective and sometimes harmful “solutions.” There are many examples of efforts to redistribute power to those most acutely affected by the compounding impacts of climate change. For example, Huairou Commission’s Community Resilience Funds and Urban Poor Funds International, administered by Slum Dwellers International, ensure that communities living in low-income and disproportionately vulnerable areas have control over how they spend funding to build their own resilience. In Indonesia, women’s groups use Huairou Commission funds to map climate risks to inform local disaster preparedness plans.

MAKING EVERYONE RESILIENT TO CLIMATE CHANGE

When adaptation is done well, it not only builds resilience to climate change impacts, but can bring additional economic and social benefits, and protect against non-climate shocks, too. Adaptation can lead to new market opportunities, boost incomes and crop yields, and protect human health — for example, through reducing heat-induced and water-borne illness. As the threats of climate change continue to mount year after year, scaling up support for climate adaptation is not just an option; it is an imperative for governments, multilateral agencies and funders. With climate impacts happening now, all over the world, adaptation is also not just about preparing for the future; it is about protecting people and economies today.

Source: wri

FINANCING THE NET-ZERO TRANSITION: FROM PLANNING TO PRACTICE A

Financial institutions will play a leading role in the transition to a net-zero economy. To maximize the opportunity, they must make fundamental changes across portfolios and organizations.

s facilitators of economic activity, financial institutions are vital contributors to global climate efforts. By providing the right finance to the right place at the right time, banks and investors can drive innovation, support scaling, and avoid an unruly transition to a greener global economy. In theory, these activities should generate a win–win scenario for providers and recipients of funding. However, there are also risks in marshaling the trillions of dollars of capital that will be required. To preempt potential headwinds, decision makers must establish processes, systems, and guardrails to protect themselves and the wider stakeholder community.

Now is a critical time in the battle against global warming. According to a UN report from 2022, time is running out to limit temperature rises to 1.5ºC by 2050.1 However, emissions continue to rise, reaching about 59 metric gigatons in 2019, about 12 percent higher than in 2010.2 Against this concerning backdrop, the transition to net-zero global greenhouse-gas (GHG) emissions by 2050 would require $275 trillion of investment in physical assets.3 In the near term, significant investment in clean power would be required to run electric vehicles and decarbonize buildings. Meanwhile, emerging markets and developing economies (EMDEs) need committed finance to ensure that the transition plays out across global value chains. Contingent on a supportive environment, private financial institutions could facilitate as much as $3.5 trillion of annual financing between 2022 and 2050 (exhibit). Commercial banks could provide $2.0 trillion to $2.6 trillion a year, while asset managers, private equity, and venture capital funds could add $950.0 billion to $1.5 trillion. The task for all financial actors is to harness this opportunity while navigating significant strategic and operational demands in the context of evolving regulatory frameworks. Moreover, current incentives are not fully aligned with optimal pathways. For example, financing emission reductions (for example, through divestment of high-emitting assets) could produce higher rewards than financing emissions, which is also a key enabler of the transition. Finally, across the industry, data quality, analytical tools, and climate-related capabilities are variable and often lacking.

To ensure these innovations have their intended effects, firms must engage effectively with clients over time. In many cases, this will mean rethinking workflows (for example, to ensure that relationship manager coverage models reflect client needs).

Capital deployment will require a collaborative effort among all stakeholders, alongside dedicated fiscal and regulatory tools and risksharing financial mechanisms such as blended finance. As these are put in place, financial institutions will need to build the internal capabilities that will help them engage effectively. At a basic level, this will mean defining netzero targets and timelines to support the client transition, finance the green technologies of the future, and fund the early retirement of high-emitting assets. Climate change finance is an evolving asset class, but it is already complex, with multiple products, capital structures, and regulatory requirements. Rather than shoehorn these structures into existing protocols, firms will need dedicated strategies across tools, policies, and processes. These will shape capital allocation, investment, and risk management, as well as support the definition of new products and services.

Finally, decision making will count. Dedicated governance frameworks will help business leaders oversee initiatives and align incentives with their strategic objectives. And creating cultures of decarbonization will encourage a concerted effort across organizations. Of course, systemic change requires significant innovation. New skills and capabilities will be required to help institutions manage risks and explore opportunities as they put their net-zero plans into practice.

Source: mckinsey

NATIONAL GREEN HYDROGEN MISSION

1. INTRODUCTION

India’s deep commitment to aspirational Climate Goals has been widely acknowledged in the comity of nations. Our achievements have matched our ambition. India has the fastest growing Renewable Energy capacity in the world. India has also emerged as one of the most attractive destinations for investments in Renewables. As India has set its sight on becoming energy independent by 2047 and achieving Net Zero by 2070, we recognise the critical role of Green Hydrogen. India, with its vast renewable energy resources, also has the opportunity to produce Green Hydrogen for the world. The National Green Hydrogen Mission aims to provide a comprehensive action plan for establishing a Green Hydrogen ecosystem and catalysing a systemic response to the opportunities and challenges of this sunrise sector.

2. BACKGROUND

2.1 India has declared the goal to achieve Net Zero emissions by 2070. As India’s growth story unfolds, its demand for energy and resources is set to rise. Energy use has doubled in the last 20 years and is likely to grow by at least another 25% by 20301 . India currently imports over 40% of its primary energy requirements, worth over USD 90 billion every year. Major sectors like mobility and industrial production are signifcantly dependent on imported fossil fuels. This necessitates a shift towards technologies that enable enhanced share of renewable sources in the energy mix, and progressively reduce the reliance on fossil fuels.

2.2 Green Hydrogen, produced using renewable energy, has the potential to play a key role in such low-carbon and self-reliant economic pathways. Green Hydrogen can enable utilization of domestically abundant renewable energy resources across regions, seasons, and sectors, feeding multiple usage streams, either as a fuel or as an industrial feedstock. It can directly replace fossil fuel derived feedstocks in petroleum refning, fertilizer production, steel manufacturing etc. Hydrogen fuelled long-haul automobiles and marine vessels can enable decarbonisation of the mobility sector. Green Hydrogen can be particularly useful as a versatile energy carrier for meeting energy requirements of remote geographies, including islands, in a sustainable manner.

2.3 Many major economies have declared Hydrogen strategies as part of the broader climate and clean energy related actions. These national strategies largely seek to tackle the common underlying challenges of scaling up Green Hydrogen production, enhancing Hydrogen use across sectors, developing technologies, and designing enabling policies and regulations. There is clear focus on government funding and support for R&D, measures for demand creation and fnancial support for manufacturing and infrastructure development.

2.4 As the global consensus towards Net Zero gathers momentum, the demand for Green Hydrogen and its derivatives is set to rise. The asymmetries in expected demand and production capabilities for Green Hydrogen, in different countries and regions, are likely to result in

international trade of Green Hydrogen and its derivatives like Green Ammonia and Green Methanol. The sensitivity of fossil fuels to geopolitical upheavals and the experience of supply chain disruptions due to COVID have accelerated the transition towards green fuels and feedstock. This presents a unique opportunity for India to capitalize on its abundant renewable energy and land resources and the growing global demand for Green Hydrogen, to become a leading producer and exporter of Green Hydrogen and its derivatives.

2.5 Despite the unique possibilities and advantages, unfavourable cost economics, lack of harmonised standards and regulations, supply challenges, and costly enabling infrastructure have thus far held back the replacement of fossil fuels and fossil fuel-based feedstock with Green Hydrogen or its derivatives. However, recent trends and analysis indicate that, driven by technology advancements, reduction in costs of renewable energy and electrolysers and aggressive national strategies by some of the major economies, Green Hydrogen is likely to become cost-competitive in applications across industry, mobility and other sectors within a short span.

2.6 The Green Hydrogen pathway can be a key enabler for India’s aspirations of building a low-carbon and self-reliant economy. It is therefore an opportune moment for India to launch the National Green Hydrogen Mission to scale up Green Hydrogen production and utilisation across multiple sectors and align with global trends in technology, applications, policy and regulation.

2.7 Rapid deployment of Renewable Energy and Electrolysers capacities will be required to achieve economies of scale. Associated infrastructure and regulatory ecosystem will need to be established for delivery of renewable power, and for storage, transportation and utilization of Green Hydrogen for various applications. Accelerated technology development to improve performance, effciencies, safety and reliability would also be crucial. The global value chain for Green Hydrogen is in its nascency and international cooperation and engagements could further bolster the national efforts. There is, therefore, a clear need for coordinated efforts and diverse policy interventions across all domains.

2.8 Government of India will accordingly implement the Mission through a comprehensive and integrated approach through various Central and State Government agencies. The Ministry of New and Renewable Energy will be responsible for the overall coordination for implementation of the Mission. The other Ministries, Departments will undertake focused steps to ensure achievement of Mission objectives.

3. MISSION OBJECTIVES

3.1 The overarching objective of the Mission is to make India the Global Hub for production, usage and export of Green Hydrogen and its derivatives. This will contribute to India’s aim to become Aatmanirbhar (self-reliant) through clean energy and serve as an inspiration for the global Clean Energy Transition. The Mission will lead to signifcant decarbonisation of the economy, reduced dependence on fossil fuel imports, and enable India to assume technology and market leadership in Green Hydrogen.

3.2 To achieve the above objectives, the Mission will build capabilities to produce at least 5 Million Metric Tonne (MMT) of Green Hydrogen per annum by 2030, with potential to reach 10 MMT per annum with growth of export markets. The Mission will support replacement of fossil fuels and fossil fuel based feedstocks with renewable fuels and feedstocks based on Green Hydrogen. This will include replacement of Hydrogen produced from fossil fuel sources with Green Hydrogen in ammonia production and petroleum refning, blending Green Hydrogen in City Gas Distribution systems, production of steel with Green Hydrogen, and use of Green Hydrogenderived synthetic fuels (including Green Ammonia, Green Methanol, etc.) to replace fossil fuels in various sectors in

cluding mobility, shipping, and aviation. The Mission also aims to make India a leader in technology and manufacturing of electrolysers and other enabling technologies for Green Hydrogen.

4. SOURCING GREEN HYDROGEN

4.1 It is estimated that currently around 5 MMT (Million Metric Tonne) of Hydrogen is consumed annually in India for various industrial purposes like petroleum refning, manufacturing of ammonia for fertilizers, methanol production, treatment and production of metals etc. Most of this Hydrogen is currently sourced from fossil fuels through the process of steam reformation of natural gas, naptha etc. and is referred to as Grey Hydrogen. The Chlor-alkali industry also produces Hydrogen gas as a by-product. Some Hydrogen is produced by electrolysis of water using grid electricity for specifc applications.

4.2 In the recent years, pilot projects have been undertaken in India for production of Green Hydrogen through electrolysis of water using renewable electricity, and from biomassthrough thermochemical and biochemical routes. The Mission aims to develop and scale up Green Hydrogen production technology and make it affordable and widely accessible.

4.3 The costs of the electrolysers and input renewable energy are the two major components of Green Hydrogen production cost. The costs of capital, supply and treatment of water, storage and distribution, conversion of hydrogen to suitable derivatives, and enabling infrastructure would also contribute signifcantly to the fnal delivered cost of Green Hydrogen for any particular application. The Mission seeks to undertake the necessary steps to enable cost reduction in all of these aspects.

4.4 India has substantial experience in renewable energy deployment, contract mechanisms and policy frameworks. As a result, India has achieved some of the lowest long term levelized costs for solar and wind power generation. The downward trend is expected to continue. However, to ensure low cost of delivered renewable energy for electrolyser-based projects, the Mission proposes to extend various facilitative policy provisions for transmission, connectivity, banking, open access, and energy storage for Green Hydrogen production projects.

4.5 Another important intervention will be to upscale production and deployment of

highperformance electrolysers in suffcient volumes. Currently, the global commercial electrolyser manufacturing capacity is estimated to be only about 2-4 GW/annum. During the past 3 years, various national governments and industrial organizations have announced deployment goals totalling to over 200 GW electrolyser capacity by 2030. With this, the global electrolyser manufacturing capacity is set to grow rapidly. However, to limit dependency on imports and ensure supply chain resilience in the sector, it is critical to develop a robust domestic electrolyser manufacturing ecosystem in India. The Mission proposes interventions to boost domestic manufacturing to ensure production of electrolysers in India at signifcantly lower costs. This will also enable competitiveness of Made in India Green Hydrogen in the international markets.

4.6 To further enhance cost-competitiveness of Green Hydrogen by reducing the cost of capital required to build projects, mechanisms for dollar denominated Bids for Green Hydrogen/Ammonia will be explored.

4.7 Innovative models to source Green Hydrogen through use of decentralized renewable energy generation such as rooftop solar and small/micro hydel plants will also be explored. Decentralised Green Hydrogen production will be advantageous to reduce the requirement of its transportation for end-use. This would also allow for optimal utilization of various resources such as land, water, renewable energy potential etc. Decentralized production would be explored through:

• Biomass-based hydrogen production systems

• Modular electrolysers connected to rooftop solar or other decentralized RE plants like small hydro etc.

To optimize water requirements, the use of industrial or municipal wastewater for hydrogen production, wherever feasible, will also be emphasized.

4.8 For certain applications such as long-haul mobility, decentralized Green Hydrogen production would be essential. Hydrogen Refuelling stations in the cities and along highways could be connected to decentralized RE plants for insitu production of Green Hydrogen.

4.9 It will also be an endeavour to maximize the utilization of the renewable energy potential on various islands in India. Through appropriate connectivity, the renewable energy generated at islands

HYDROGEN

in proximity to the mainland, could be transmitted and utilized for Green Hydrogen production and other end-uses. For remote islands, renewable energy can be utilized to produce Green Hydrogen in a decentralized mode to meet the local energy requirements. This would save the requirement of land for setting up RE capacities and also help in development of the island regions.

4.10 The Mission will also support and facilitate building of required infrastructure for storage and delivery of Green Hydrogen and its derivatives. Port infrastructure required to enable exports of Green Hydrogen derivatives, and pipelines to facilitate bulk transport of Green Hydrogen will also be developed. Further, the producers and consumers of Green Hydrogen and its derivatives will be encouraged to pool resources and develop projects in a coordinated manner in the form of large-scale Hydrogen Hubs.

4.11 With these targeted interventions to reduce input and capital costs, it is expected that Green Hydrogen will be competitive with Grey Hydrogen in the next few years.

4.12 Production of Green Hydrogen through biomass also holds potential for achieving scale and low costs. Different technological pathways, including biomass gasifcation and reformation of biogas etc. are in various stages of development and piloting. Achieving scale and building supply chains for biomass collection are key components for facilitating production of low-cost Green Hydrogen through these routes. These pathways can provide continuous hydrogen output which would enhance feasibility of hydrogen use for many end-use applications. The Mission, accordingly, aims to initiate focused pilots to arrive at workable models for biomass based Green Hydrogen production and its use in various applications. The Mission will focus on reducing the costs of biomass collection and delivery and the capital cost of equipment for conversion of biomass to hydrogen.

5. PHASED APPROACH

5.1 Considering the nascent status of the sector and the rapidly evolving profle of the industry, the mission is proposed to be implemented in a phased manner, focusing initially on deployment of Green Hydrogen in sectors that are already using hydrogen, and evolving an ecosystem for R&D, regulations and pilot projects. The later phase of the Mission will build on these foundational activities and

undertake Green Hydrogen initiatives in new sectors of the economy. The major thrust areas of each phase are identifed below.

PHASE I (2022-23 TO 2025-26)

5.2 The focus of Phase I will be on creating demand while enabling adequate supply by increasing the domestic electrolyser manufacturing capacity. In order to ensure Make in India from the inception stage, a bouquet of incentives aimed at indigenization of the value chain and increasing Green Hydrogen production and uptake will be developed. Utilisation in the refneries, fertilizers and city gas sectors will also create a sustained demand to support new investments in Green Hydrogen production.

5.3 The frst phase will also lay the foundation for future energy transitions in other hardto-abate sectors by creating the required Research and Development impetus. In this phase, pilot projects will be undertaken for initiating green transition in steel production, long-haul heavyduty mobility and shipping. Parallelly, work will commence on establishing a framework of regulations and standards to facilitate the growth of the sector and enable harmonisation and engagement with international norms.

5.4 The scale up of Green Hydrogen production and use, and the proposed measures under the Mission in the frst phase, are expected to drive down costs, allowing for greater and wider Green Hydrogen deployment in the next phase. PHASE II (2026-27 TO 2029-30)

5.5 Green Hydrogen costs are expected to become competitive with fossil-fuel based alternatives in refnery and fertilizer sector by the beginning of the second phase, allowing for accelerated growth in production. Depending upon the evolution of costs and market demand, the potential for taking up commercial scale Green Hydrogen based projects in steel, mobility and shipping sectors will be explored. At the same time, it is proposed to undertake pilot projects in other potential sectors like railways, aviation etc. R&D activities will be scaled up for continuous development of products. The second phase activities would enhance penetration across all potential sectors to drive deep decarbonisation of the economy.

6. INTEGRATED MISSION STRATEGY

6.1 All concerned Ministries, Departments, agencies and institutions of the Central and State Government will undertake focused and coordinated steps to ensure successful achievement of the

Mission objectives.

6.2 Ministry of New and Renewable Energy (MNRE) will be responsible for overall coordination and implementation of the Mission. The Mission Secretariat, headquartered in MNRE, will formulate schemes and programmes for fnancial incentives to support production, utilization and export of Green Hydrogen and its derivatives. The Ministry will ensure planned deployment of renewable energy and green hydrogen capacities, support pilot and R&D projects, undertake capacity building and promote international cooperation efforts. The Ministry will also ensure holistic development of the Green Hydrogen ecosystem in the country through active coordination with various public and private entities responsible for other aspects of the Mission.

6.3 Ministry of Power (MoP) will implement policies and regulations to ensure delivery of renewable energy for Green Hydrogen production at least possible costs, including through development of the necessary power system infrastructure. MoP will also work with State Governments, Distribution Companies, Regulators and technical institutions to align the electricity ecosystem for large scale Green Hydrogen production.

6.4 Ministry of Petroleum and Natural Gas (MoPNG) will facilitate uptake of Green Hydrogen in refneries and city gas distribution through both Public Sector Entities and private sector. MoPNG will also enable development and facilitation of regulations through the Petroleum and Natural Gas Regulatory Board (PNGRB). New Refneries and city gas projects will be planned and designed to be compatible with maximum possible Green Hydrogen deployment, with a goal to progressively replace imported fossil fuels.

6.5 Ministry of Chemicals and Fertilizers will encourage adoption of indigenous green ammonia based fertilizers for progressively replacing imports of fertilizers and fossil fuel based feedstocks (natural gas and ammonia) used to produce fertilizers. This will enable decarbonization of the sector and reduce dependence on imports. The Ministry will enable procurement of green ammonia for its designated entities to create bulk demand.

6.6 Ministry of Road Transport and Highways will enable adoption of green hydrogen in the transport sector through regulations, standards, and codes, primarily for heavy commercial vehicles

and long-haul operations. MoRTH will also facilitate technology development for adoption of green hydrogen in the transport sector through testing facilities, pilot projects, and provide support for infrastructure development.

6.7 Ministry of Steel will drive adoption of green hydrogen in the steel sector. The Ministry will identify and facilitate pilot projects for use of Green Hydrogen in steel production and undertake policy measures to accelerate commercial production of green steel.

6.8 Ministry of Ports, Shipping and Waterways (MoPSW) will play a crucial role in establishing India’s export capabilities for green hydrogen and its derivates. MoPSW will facilitate development of the required infrastructure including storage bunkers, port operations equipment, and refuelling facilities. MoPSW will also drive the adoption of hydrogen/derivatives (ammonia/methanol) as propulsion fuel for ships. The Ministry will also work towards making India as a green hydrogen/derivative refuelling hub.

6.9 Ministry of Finance will explore suitable fscal and fnancial frameworks to promote production, utilization and export of Green Hydrogen and its derivatives.

6.10 Ministry of Commerce & Industry will encourage investments, facilitate ease of doing business, and implement specifc industrial and trade policy measures for low-cost production and trade of hydrogen and its derivatives. The Ministry will undertake dialogue to facilitate global trade of hydrogen and its derivatives. The Ministry will also formulate necessary policies and programmes for development of an ecosystem for manufacturing of specialized equipment needed in the green hydrogen value chain.

6.11 Ministry of Railways will work on transitioning towards adoption of green hydrogen in their operations in view of its ambitious plans to reduce the carbon footprint. Accordingly, Railways is also expected to play an integral role for transporting green hydrogen and its derivates. For this, the Ministry will put in place the necessary regulations and standards.

6.12 Coordinated efforts will be required to establish a robust ecosystem of regulations and standards to enable safe and rapid scaling up of projects for production, delivery, storage and use of hydrogen. MNRE will anchor this activity in partnership with Department for Pro

motion of Industry and Internal Trade, Bureau of Indian Standards, Ministry of Petroleum and Natural Gas, Ministry of Road Transport and Highways, and associated agencies.

6.13 Scientifc Departments and agencies, including MNRE, the Offce of the Principal Scientifc Advisor to the Government of India, Department of Science and Technology, Department of Scientifc and Industrial Research, Department of Space, Defence Research & Development Organisation, Ministry of Environment Forests and Climate Change, and other public research and innovation institutions will pool resources to build a comprehensive goal-oriented Research and Innovation programme in collaboration with the private sector.

6.14 Ministry of External Affairs (MEA) will be instrumental in building bilateral and multilateral partnerships for supporting the Green Hydrogen ecosystem development in India and abroad. MEA will also aid collaborations of Government agencies, institutions and industry with global partners.

6.15 The Ministry of Skill Development and Entrepreneurship will take steps in coordination with MNRE and other ministries for building skillsets ensuring employability in this sector. Suitable courses and programmes will be developed for skilling of manpower across the value chain, including manufacturing of equipment, Green Hydrogen project installation, and operations & maintenance.

6.16 Ministry of Education will work towards coverage of hydrogen technologies and latest developments in the pedagogy and curricula at various levels. Practical experience of technologies through guidelines for laboratory set ups in schools and higher education institutions will also be encouraged.

6.17 State governments and state agencies will also play an integral role in development of green hydrogen ecosystem. States will have an opportunity to establish themselves as front runners in this sunrise sector through project development, manufacturing, setting up renewable energy capacity, and promoting export of green hydrogen derivatives. For this, the States will be requested to put in place fair and rational policies for provision of land and water, suitable tax and duty structures and other measures to facilitate establishment of Green Hydrogen projects.

7. MISSION COMPONENTS

The achievement of Mission objectives requires a comprehensive strategy that coordinates efforts across multiple sectors. The Mission strategy accordingly comprises interventions for: (i) demand creation by making Green Hydrogen produced in India competitive for exports and through domestic consumption. (ii) addressing supply side constraints through an incentive framework, and (iii) building an enabling ecosystem to support scaling and development.

7.1 DEMAND CREATION – EXPORT MARKETS

a. Considering the renewable energy potential and the enabling framework proposed under the Mission, India’s Green Hydrogen production costs are expected to be among the lowest in the world. A global demand of over 100 MMT of Green Hydrogen and its derivatives like Green Ammonia is expected to emerge by 2030. Many countries are likely to rely on imports due to constraints on land and renewable resources required to produce Green Hydrogen domestically. Aiming at about 10 per cent of the global market, India can potentially export about 10 MMT Green Hydrogen/Green Ammonia per annum.

b. The enabling framework created under the Mission and support for hydrogen hubs and port infrastructure will facilitate the development of a vibrant export market. Growth in export market will have a positive cascading effect on the domestic production as well. The Mission will facilitate development of strategic international partnerships to enable export of Green Hydrogen and its derivative products.

7.2 DEMAND CREATION – DOMESTIC MARKETS

a. About 5 MMT Grey Hydrogen is consumed annually in India, and about 99 percent of this quantity is utilized in petroleum refning and manufacture of Ammonia for fertilizers. In fertilizer production, Hydrogen is a key input for production of Ammonia (NH3), which is used to produce urea and other fertilizers. In petroleum refning, Hydrogen is

HYDROGEN

mainly used for reducing sulphur content of fuels (de sulphurization), and conversion of heavier feedstocks to more valuable products (hydrocracking). In both sectors, Grey Hydrogen can be substituted with Green Hydrogen, reducing carbon footprint and dependence on imported fossil fuels.

b. Hydrogen can also be blended to a certain degree in most natural gas networks without requiring signifcant investments. Older networks will require retroftting/ upgradation of system components, but new and upcoming networks are likely to be compatible with high blend ratios of hydrogen.

c. In order to create bulk demand and scale up production of Green Hydrogen, the Government of India will specify a minimum share of consumption of green hydrogen or its derivative products such as green ammonia, green methanol etc. by designated consumers as energy or feedstock. The year wise trajectory of such minimum share of consumption will be decided by the Empowered Group constituted under para 9.1 of this note, taking into account availability of resources for Green Hydrogen production, relative costs, and other economic factors.

7.3 COMPLIANCE MONITORING

a. As per the targets decided by Empowered Group, MNRE in consultation with the Department of Fertilizers, Ministry of Petroleum and Natural Gas and other sectoral Ministries/Departments will develop guidelines and methodologies for monitoring and ensuring progress in respective sectors. The obligated corporate/public sector entities will submit periodic reports to the agency designated for monitoring. Technology interventions for online/real-time monitoring of targets will also be made for stringent monitoring and enforcement.

b. A legal provision for ensuring enforceability of consumption targets for Green Hydrogen and its derivatives will be established through the Energy Conservation (EC) Act which will empower the Central Government to specify the minimum share of energy and feedstock consumption from non-fossil fuel-based sources that an industry must ensure.

7.4 COMPETITIVE BIDDING FOR PROCUREMENT

In early years of technology deployment, it is essential to aggregate demand through an enabling framework of bidding and procurement processes for achieving scale and stability in long term

agreements. In this regard, MNRE will frame model guidelines for transparent competitive bidding for procurement of Green Hydrogen and its derivatives and develop a suitable regulatory framework for certifcation of Green Hydrogen and its derivatives as having been produced from RE sources. The bidding guidelines will be technology agnostic to allow both electrolysis and biomass-based generation of Green Hydrogen.

7.5 DOMESTIC MANUFACTURE OF FERTILIZERS USING GREEN AMMONIA

a. In the year 2020-21, India imported about 10 MMT of Urea, 5 MMT Di-ammonium Phosphate (DAP) and 3 MMT of Ammonia. This translates into an annual import value of over USD 6 billion. With the expected reduction in the price of Green Hydrogen, there will be an economic rationale for producing these fertilizers domestically, using Green Hydrogen/Green Ammonia to substitute imports. Accordingly, it is proposed that the Government of India may call for competitive bids for establishing fertilizer plants based on Green Hydrogen/Green Ammonia.

b. As part of the Mission, MNRE will formulate model bidding guidelines for procurement of Green Hydrogen based fertilizers, in consultation with the Department of Fertilizers. Two plants each for production of Green Hydrogen based Urea and Green Hydrogen based DAP are targeted to be set up through competitive bidding route.By 2034-35, it is targeted to substitute all Ammonia based fertilizer imports with domestic Green Ammonia based fertilizers.

7.6 STRATEGIC INTERVENTIONS FOR GREEN HYDROGEN TRANSITION (SIGHT)

a. The Mission strategy will include a comprehensive incentive programme to facilitate growth of Green Hydrogen industry value chain in the country. A wide ranging and expansive bouquet of fnancial incentives and non-fnancial measures are proposed under the Mission to encourage production of low-cost Green Hydrogen and domestic manufacturing of related equipment and technologies. Depending upon the markets and technology development, specifc incentive schemes and programmes will continue to evolve as the Mission progresses.

b. At the initial stage, two distinct fnancial incentive mechanisms, targeted at support for domestic manufacturing of electrolysers, and production of green hydrogen are proposed. To ensure quality and

agreements. In this regard, MNRE will frame model guidelines for transparent competitive bidding for procurement of Green Hydrogen and its derivatives and develop a suitable regulatory framework for certifcation of Green Hydrogen and its derivatives as having been produced from RE sources. The bidding guidelines will be technology agnostic to allow both electrolysis and biomass-based generation of Green Hydrogen.

7.5 DOMESTIC MANUFACTURE OF FERTILIZERS USING GREEN AMMONIA

a. In the year 2020-21, India imported about 10 MMT of Urea, 5 MMT Di-ammonium Phosphate (DAP) and 3 MMT of Ammonia. This translates into an annual import value of over USD 6 billion. With the expected reduction in the price of Green Hydrogen, there will be an economic rationale for producing these fertilizers domestically, using Green Hydrogen/Green Ammonia to substitute imports. Accordingly, it is proposed that the Government of India may call for competitive bids for establishing fertilizer plants based on Green Hydrogen/Green Ammonia.

b. As part of the Mission, MNRE will formulate model bidding guidelines for procurement of Green Hydrogen based fertilizers, in consultation with the Department of Fertilizers. Two plants each for production of Green Hydrogen based Urea and Green Hydrogen based DAP are targeted to be set up through competitive bidding route.By 2034-35, it is targeted to substitute all Ammonia based fertilizer imports with domestic Green Ammonia based fertilizers.

7.6 STRATEGIC INTERVENTIONS FOR GREEN HYDROGEN TRANSITION (SIGHT)

a. The Mission strategy will include a comprehensive incentive programme to facilitate growth of Green Hydrogen industry value chain in the country. A wide ranging and expansive bouquet of fnancial incentives and non-fnancial measures are proposed under the Mission to encourage production of low-cost Green Hydrogen and domestic manufacturing of related equipment and technologies. Depending upon the markets and technology development, specifc incentive schemes and programmes will continue to evolve as the Mission progresses.

b. At the initial stage, two distinct fnancial incentive mechanisms, targeted at support for domestic manufacturing of electrolysers, and production of green hydrogen are proposed. To ensure quality and

performance of equipment, the eligibility criteria for participation in competitive bidding for procurement of Green Hydrogen and its derivatives will specify that the project must utilize equipment approved by Government of India as per specifed quality and performance criteria. An Approved List of Models and Manufacturers may also be notifed by GoI in this regard from time to time.

c. It is expected that the proposed incentives and interventions under the program will signifcantly reduce the cost of Green Hydrogen, enabling its uptake in emerging sectors and ensure establishment of a domestic manufacturing ecosystem by de-risking frst movers and providing viability support for early innovators in the sector till the production of Green Hydrogen and its derivatives achieves scale and sustainability.

Green-Hydrogen based steel can become cost-competitive in the coming decade. Provision of carbon credits and imposition of market barriers on carbon intensive steel are likely to further enhance the viability of Green Hydrogen based steel

c. The Mission will support efforts to enhance low-carbon Steel production capacity. Considering the higher costs of Green Hydrogen at present, Steel plants can begin by blending a small percentage of Green Hydrogen in their processes. The blending proportion can be progressively increased as cost-economics improves and technology advances. Further upcoming steel plants should be capable of operating with Green Hydrogen. This would ensure that these plants are able to participate in future global low-carbon Steel markets. Green feld projects aiming at 100% green steel will also be considered.

7.7.2 TRANSPORT

Hydrogen/Ammonia fuelled vessels; use of Green Hydrogen/Ammonia to fuel zero-emission technologies for vehicles and terminal equipment at ports; and development of supply chains and capabilities to support future export of Green Hydrogen/Ammonia from India.

b. The Shipping Corporation of India or in case of its disinvestment, its successor private entity will retroft at least two ships to run on Green Hydrogen or other Green Hydrogen derived fuels by 2027.

c. India’s oil and gas PSUs also currently charter about forty vessels for transport of petroleum products. In order to promote forays into Hydrogen powered shipping lines, these PSUs will be required to charter at least one ship each to be powered by Green Hydrogen or derived fuels by 2027. Thereafter, the companies will be required to add at least one ship powered by green hydrogen or its derivatives for each year of the mission.

7.7 PILOT PROJECTS

For other hard to abate sectors, the Mission proposes pilot projects for replacing fossil fuels and fossil fuel-based feedstocks with Green Hydrogen and its derivatives. This includes sectors like steel, long-range heavy-duty mobility, energy storage and shipping etc. Pilot projects will help identify operational issues and gaps in terms of current technology readiness, regulations, implementation methodologies, infrastructure and supply chains. These will serve as valuable inputs for future scaling commercial deployment. Their outcomes will also help in understanding technology integration pathways, ascertaining viability gaps and level of government incentives/ policy support required, if any. Accordingly, detailed implementation and performance data will be compiled from pilot projects to serve as inputs for future projects and programmes. Wherever feasible, a competitive selection process could be adopted for implementing pilot projects.

7.7.1 GREEN STEEL

a. Steel production is one of the potential sectors where Green Hydrogen can replace fossil fuels. The National Steel Policy 2017 states that Natural Gas is a greener alternative to meeting India’s goal of reducing the carbon intensity of GDP under the Paris Climate Agreement.

b. With the falling costs of renewable energy and electrolysers, it is expected that

a. Considering Hydrogen’s advantages for heavy-duty, long-haul vehicles, certain routes as Hydrogen Highways. The necessary Green Hydrogen production projects, distribution infrastructure and refuelling stations will be built along such highways. This will enable Hydrogen fuelled inter-state buses and commercial vehicles to ply on such routes.

b. The Mission proposes to support deployment of FCEV buses and trucks, in a phased manner on pilot basis. Financial assistance will be provided to close the viability gap due to the relatively higher capital cost of FCEVs in the initial years. The learnings from the pilot projects will help inter-city bus and truck operators, (including State Transport Undertakings) in gaining experience with the deployment and usage of Hydrogen fuel cell vehicles and refuelling technologies. The Mission will also explore the possibility of blending Green Hydrogen based Methanol/Ethanol and other synthetic fuels derived from Green Hydrogen in automobile fuels.

7.7.3 SHIPPING

a. Shipping and Port operations are among the key sectors likely to drive the future Green Hydrogen demand and trade. Maritime transport and Ports have signifcant potential for decarbonisation through use of Green Hydrogen or its derivatives such as Green Ammonia and Green Methanol as fuel for propulsion and other operations. Prospects include development of Green Hydrogen/Ammonia refuelling hubs at Indian ports; development and operation of Green

d. Green Ammonia bunkers and refuelling facilities will be set up at least at one port by 2025. Such facilities will be established at all major ports by 2035.

7.7.4 Pilot projects will also be supported in other areas including emerging technologies for Green Hydrogen production (including from biomass), large scale storage of Hydrogen, energy storage etc. These pilot projects will be diversifed across technology options to ensure capacity building and experience across the Green Hydrogen value chain.

7.8

GREEN HYDROGEN HUBS

a. Given the technical and logistical challenges inherent in transporting Hydrogen over long distances, a cluster-based production and utilisation model would enhance viability of Green Hydrogen projects in the initial years. This would, in turn, enable economies of scale and convergence of key infrastructure requirements in geographically proximate areas.

b. The Mission will accordingly identify and develop regions capable of supporting large scale production and/or utilization of Hydrogen as Green Hydrogen Hubs. Development of Trunk infrastructure for such hubs will be supported under the Mission. Projects in the Hubs will be planned in an integrated manner to allow pooling of resources and achievement of scale. It is planned to set up at least two such Green Hydrogen hubs in the initial phase.

c. Potential locations for such Hubs would

be regions having clusters of refneries/ fertilizer production plants in close vicinity. Pilot projects in emerging applications such as steel production, mobility, ports development etc. will also be promoted within these Hubs to take advantage of the existing ecosystem. Corridors connecting such Hubs will be developed as Green Hydrogen mobility corridors by setting up suffcient refuelling infrastructure and Hydrogen supply arrangements along such routes.

d. The infrastructure, projects, and key resources will be mapped under the PM Gati hakti to ensure optimal and coordinated development.

e. It is expected that Green Hydrogen projects will be drawn towards major ports. The Green Hydrogen Hubs and associated infrastructure will be planned in a manner that also promotes development in the coastal zones in the vicinity of such ports.

7.9 ENABLING POLICY FRAMEWORK

a. In order to support affordable Green Hydrogen production, coordination across government departments and extension of maximum possible benefts under existing government policies will be required in a Whole of Government Approach. MNRE will liaise and coordinate acrossmultiple departments at the federal and state levels in order to facilitate a nurturing ecosystemfor development of Green Hydrogen projects in the country.

b. To facilitate delivery of renewable power, various supportive policy provisions will be extended to Green Hydrogen Projects. This shall include waiver of Interstate transmission charges for renewable energy used for Green Hydrogen production; facilitating renewable energy banking; and time bound grant of Open Access and connectivity.

c. For this purpose, Government of India will undertake integrated planning and implementation of renewable energy capacities, transmission infrastructure, facilities for suitable banking of power, energy storage, and the associated power system projects.

d. Availability of land and facilitative policies for setting up of largescale production facilities for green hydrogen and associated products will be critical for the success of the Mission. Provisions of existing schemes such as Solar Parks, Manufacturing Zones, and SEZs could be extended to cover Green Hydrogen related activities.

e. Various policy measures and initiatives will be explored to ensure access to low cost funds through international Green Finance, Green bonds, and other innovative fnancial mechanisms for Green Hydrogen projects.

7.10 REGULATIONS, CODES AND STANDARDS

a. Any sunrise industry requires a robust regulatory architecture, safety codes and relevant quality and performance standards. These will not only guide the technology developments but also anchor the long-term investment outlook for the private sector. The Mission will, thus, seek to coordinate various efforts for development of regulations and standards in line with industry requirements for emerging technologies. Existing statutory approvals and permissions procedures will be streamlined, and new processes will be established, asrequired. The imperative of Ease of Doing Business will be kept in view and efforts will be made for simplifed processes and expeditious approvals leveraging technology. The effort will be to harmonise regulations and standards with internationally accepted norms to ensure interoperability of technologies, and incorporation of global best practices.

b. Signifcant efforts are already underway for building a standards and regulatory framework for enabling the Hydrogen ecosystem. The Bureau of Indian Standards has been developing and notifying standards to address many crucial aspects, including direct adoption of relevant international standards wherever feasible. Standards and Regulations specifc to automotive applications are also being developed by the Ministry of Road Transport and Highways.

c. An immediate area of action will be to put in place an ecosystem for timebound approvals of pilot and demonstration projects under the Mission. All regulatory provisions (or amendments in existing regulations) to permit operation of Hydrogen fuelled vehicles and other applications will be notifed within twelve months of the notifcation of the Mission.A web-based portal will be developed that will list out the database of all relevant regulations and standards pertaining to Hydrogen at the Central and State levels. The portal will also include options for online safety and regulatory approvals for various aspects of Hydrogen production, storage and use.

d. Creation of suitable testing facilities to certify and validate technologies will be supported. Formulation and regular revision

of testing protocols relevant to Indian conditions will be undertaken in collaboration with premier National and International research institutions. These will be updated periodically with emergence of new technologies and applications. Knowledge and experience gained from evaluation of established and new technologies will be disseminated appropriately. The aim will be to facilitate notifcation of all requisite standards and regulations by the end of 2023-24. Meanwhile, adoption of relevant international standards in critical areas will be encouraged. Testing facilities specifc to Hydrogen and Fuel Cell technologies requirements will be established at existing National Testing Centres.

e. To build greater public confdence in new technologies in the Green Hydrogen ecosystem, safety will be prioritized across the value chain and addressed as part of standards and testing protocols. Development of expertise on safety aspects of Hydrogen and Fuel Cell technologies will be facilitated. Safety regulations will be developed in consonance with globally accepted safety norms, to build trust among users with robust quality and performance requirements regarding safety.

f. A regulatory framework to allow storage and dispensing of Hydrogen at par with internationalnorms will be expeditiously established. Regulations governing Hydrogen storage will also berevisited to be at par with the global technology developments and industry requirements. Itwill also be necessary to align with globally prevalent standards and regulations to tap into theinternational market.

g. To address the above issues, MNRE has constituted a Working Group comprising relevantMinistries, government agencies, standardization and certifcation bodies, and industry stakeholders to recommend a national framework for Standards and Regulations required for the Green Hydrogen ecosystem.

7.11 RESEARCH AND DEVELOPMENT

a. Innovation will be supported with an aim to increase the affordability of Green Hydrogen production, storage, transportation, and utilization and to enhance the effciency, safety and reliability of the relevant systems and processes. R&D projects will be goal-oriented, time bound, and suitably scaled up to achieve quantifable returns.

b. The proposed R&D programme has been detailed in consultation with Council for Scientifc

and Industrial Research (CSIR). Support is proposed for identifed Mission Mode Projects with short term (0-5 years) horizon. The focus will be on end product development in partnership with the industry. An effort will be made to aggregate and leverage existing capabilities and infrastructure during this phase. Likely projects under this mode will include development of domestic modular electrolysers, Type III/Type IV compressed hydrogen tanks and PEM based fuel cells, with an intent to increase operational effciencies. Biomass based Hydrogen generation will also be scaled-up for commercial applications.

c. Grand Challenge Projects with a midterm (0 - 8 years) impact horizon will be initiated parallelly with a focus on critical technologies to overcome licensing challenges and supply constraints. These projects are proposed to be taken up in consortium mode and would require augmentation of existing capabilities and infrastructure. Likely Grand Challenges will be built around manufacturing of critical electrolyser and fuel cell components like Membrane Electrode Assemblies (MEAs), electrocatalysts, Catalyst Coated Membranes (CCMs), Gas Diffusion Layers (GDLs), bipolar plates etc. Component-specifc research focus will be critical to further upscale existing domestic manufacturing capabilities, improve effciencies and drive down costs of critical technologies.

d. Blue Sky Projects having a long term (0-15 years) horizon will be taken up with a focus on establishing global IP and competitive advantage for the Indian industry. Blue Sky Projects will aim to develop capabilities of the Indian R&D sector within an array of subjects like development of 3rd generation electrocatalysts, reversible Solid Oxide Electrolysers (SOECs) and Solid Oxide Fuel Cells (SOFCs), seawater electrolysis, thermocatalytic pyrolysis, plasma pyrolysis, salt cavern surveys, high entropy alloys for reversible hydrogen storage etc.

e. A public-private partnership framework for R&D (Strategic Hydrogen Innovation Partnership – SHIP) will be facilitated under the Mission. The framework will entail creation of a dedicated R&D fund, with contributions from Industry and Government institutions. Funding contribution from Venture Capitals will also be explored to encourage innovation for immediate needs and in the long run. The R&D programme under the Mission will seek to develop globally competitive technologies in various segments. A consortium-based approach, leveraging

strengths of each institution/industry, will be encouraged.

f. The R&D programme will also focus on identifying and supporting Centres of Excellence tofoster innovation and technology development, by building subject expertise and research infrastructure. A network approach will be undertaken involving the academia-industrygovernment to ensure seamless transfer and commercialisation of new technologies.

g. The Mission will seek to leverage the inherent strengths and technological experience of institutions such as ISRO, IITs, IISc etc and the Indian industry. Development work undertaken thus far will be consolidated for optimum utilization of knowledge and other resources. Industry-academia-government networks would be important to ensure that the technological developments are commercialised and appropriate policy and regulation support is provided. MNRE will facilitate effective industry-academia collaboration.

h. In addition to industrial and institutional research, innovative MSMEs and startups working on indigenous technology development and adaptation will be encouraged under existing Government programmes and through specifc support mechanisms under the Mission. The R&D themes mentioned in sub-para b, c, and d above, is indicative; a phased R&D roadmap identifying specifc areas and projects will be prepared by the Advisory Group.

7.12 SKILL DEVELOPMENT

a. Development and utilization of Hydrogen technologies will necessitate specifc expertise and skill sets. Knowledge of power electronics, advanced materials, electrolysers, fuel cells, Hydrogen storage, compression and distribution, covering design, manufacturing, installation, operational and maintenance aspects of these technologies will be necessary. Hydrogen Safety, standards, certifcation and integrated project management will also require special focus.

b. A coordinated skilling programme, that considers skill requirements in various segments, will be undertaken in coordination with the Ministry of Skill Development and Entrepreneurship. The programme will effectively associate institutions, skill development centres, universities, industry, and businesses. Green Hydrogen and associated aspects will also be suitably covered under the various efforts of the National Skill Development Mission. Global best

practices and developments will be incorporated in the skilling programmes, including through access to international training content. Hydrogen technologies will also be suitably incorporated in various course curricula to develop a broad knowledge base, in partnership with the Ministry of Education.

c. A signifcant part of Skill Development programme will focus on reskilling the workforce in polluting, sunset sectors to be absorbed into the Green Hydrogen and its auxiliary ecosystem. This will enable greater productive capacities of human capital and enable a just transition.

7.13 PUBLIC AWARENESS AND STAKEHOLDER OUTREACH

a. Expansion of Green Hydrogen, especially in public centric sectors such as transport and city gas distribution, will require concerted public awareness and stakeholder outreach activities. It is also important to project the development of this sector across various strata of academia, industry and society to build an organic momentum for the sector.

b. Towards this end, the Mission will focus on disseminating knowledge regarding Hydrogen and Fuel Cell technologies and its prospects among students, researchers, businesses, policymakers, investors and public at large. It is important that the Mission becomes widely accepted across the country. Dedicated workshops, seminars and exhibitions will be encouraged for building stakeholder partnerships. Steps would be undertaken to coown the Mission objectives among the relevant stakeholders to make the Mission a success.

c. MNRE will involve experts, thinktanks, and civil society organisations from various regions of the country to disseminate the usages and benefts of Green Hydrogen and its forward and backward linkages to the economy. A national online portal on Hydrogen will be developed which will compile and update informati on on all Hydrogen related activities being undertaken by various agencies in the country.

7.14 INTERNATIONAL COOPERATION

a. Given the global momentum for Green Hydrogen and the implementation of respective national strategies for Hydrogen by various countries, it is imperative that India forges strategic partnerships in all areas of Green Hydrogen development – technology, fnancing, regulations, trade, and policy. Joint investments, collaborative projects and long-term trade agreements will also be explored under

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these partnerships.

b. A key axis of the Mission will be to promote multilateral engagement and collaboration with various international efforts in Hydrogen and fuel cells such as the International Partnership on Hydrogen and Fuel Cells in the Economy, Mission Innovation, Clean Energy Ministerial etc. Cooperation among Academia, universities, technical institutions, industry and research laboratories will be facilitated under bilateral and multilateral collaboration programmes for result-oriented technology development, knowledge creation and dissemination.

c. Active engagement in various international collaborative efforts for Hydrogen and fuel cell development will be encouraged within the existing cooperation framework, and new cooperation programmes will also be developed wherever necessary. As the market matures, India will endeavour to build partnerships for international trade of Green Hydrogen and its derivatives.

8. RISK MANAGEMENT

8.1 Success in achieving the outcomes of this mission is dependent on several factors. It will require constant monitoring, indexing, and suffcient flexibility for mid-course corrections. The underlying Governance Framework will be tasked with Risk Identifcation, classifcation and timely action through necessary policy changes.

8.2 The Mission seeks to minimise various risks through an appropriate mix of fnancial and non-fnancial levers, and review mechanisms. These will be monitored regularly by the Mission Secretariat through regular consultations with stakeholders. An indicative categorization and associated management/mitigation measures for the likely risks are detailed in the following table.

nation among various Ministries and Departments of Central and State Governments, Industry, Institutions, and other Stakeholders. A flexible and resultoriented governance structure will be created for steering and guiding the implementation of the Mission. An Empowered Group (EG) chaired by the Cabinet Secretary and comprising Principal Scientifc Adviser to the Government of India, CEO, NITI Aayog, and Secretaries of Ministries of New and Renewable Energy, Petroleum and Natural Gas, Power, Road Transport and Highways, Steel, Heavy Industries, Ports, Shipping and Waterways, Skill Development and Entrepreneurship; and Departments of Fertilizers, Science and Technology, Scientifc and Industrial Research, Promotion of Industry and Internal Trade; and experts from the industry will be set up. The EG will oversee the Mission activities, provide guidance, continuously monitor progress, recommend policy interventions to be made in furtherance of mission objectives and approve midcourse corrections if required. Secretaries of other Ministries/ Departments, Chief Secretaries from the States, and other experts may be invited as required by the Empowered Group.

EG will also monitor performance and impact of projects to identify potential for further investment and scaling up.

9.4 A National Green Hydrogen Advisory Group comprising experts from academic and research institutions, industry, and civil society will also be constituted. It will be chaired by the Principal Scientifc Advisor to the Government of India. The Advisory Group will advise the EG on all science and technology related matters pertaining to the Mission. It will carry out technology gap analysis for various aspects of the value chain and accordingly defne broad performance and cost targets based on global benchmarking. The Advisory Group will recommend R&D roadmap based on industry requirements, impact potential of various pathways, alignment with core competencies of institutions, and current state of maturity of technology and research. It will also assist the Empowered Group in formulating targeted calls for proposals for pilot and R&D projects and evaluation of proposals for fnancial support.

9.5 MNRE will be the nodal coordinating Ministry for the Mission and will undertake the overarching policy formulation and programme implementation with an aim to scale up production of green hydrogen, green ammonia and other derivatives and enable cost reduction. Line Ministries/Departments will support the uptake of green hydrogen in respective sectors in accordance with the overall guidance of the EG. A Mission Secretariat, headquartered in MNRE, will coordinate the programme and facilitate the day-to-day activities of the Mission.

9.2 The Empowered Group will be responsible for the overall implementation of Mission objectives,addition or deletion of any activities/projects, recommending fscal, monetary or regulatory interventions to appropriate authorities, removal of diffculties in interpretation or giving effect to any provision of this Mission document.

9.1

9.3 The EG will ensure complementarity of the Mission with other Government of India programmes and activities related to Hydrogen and facilitate cohesive action among the various Ministries/Departments participating in the Mission. Activities will be taken up in close coordination with all stakeholders, avoiding duplication of efforts and ensuring optimum utilisation of resources and expertise. The EG will be fully empowered to constitute thematic Sub-Committees comprising domain experts to support its functions as deemed necessary. The

9.6 Mission Secretariat will be headed by the Mission Director, who will be a professional with domain knowledge and experience. The Mission Director will serve as the Secretary of the EG. The Secretariat will comprise subject matter experts and professionals. The Secretariat will formulate or facilitate formulation of policies including guidelines for procurement of Green Hydrogen and its derivatives; schemes for incentives and projects; and undertake appraisal, funding and management of pilot and R&D projects. It will also assist the EG and the Advisory Group, as required. The Mission Secretariat will continuously monitor the sector’s exposure to various risks, categorize and address them in a timely manner, with the guidance of the EG from time to time. A specifc portion of the Mission budget will be earmarked for programme management activities to support the Secretariat.

9. MISSION GOVERNANCE FRAMEWORK

Effective implementation of the Mission activities requires strong coordi

9.7 A National Portal for the submission of application, sanctioning of projects, their approval, disbursal of funds, monitoring of projects, dissemination of knowledge and awareness about the Mission and connecting stakeholders will be established during the early stages of the programme and populated as the Mission progresses.

9.8 Other Ministries/Departments will implement green hydrogen projects in respective sectors (including fertilizers, refning, natural gas, transport, shipping, steel etc), under the overall guidance of the EG. In order to ensure coordinated approach, line Ministries responsible for Green Hydrogen projects will also create dedicated Green Hydrogen cells to coordinate the respective activities under the Mission.

9.9 Efforts will be made to leverage existing institutions under administrative control of/funded by various Ministries/ Departments like MoPNG, DST, DSIR, ISRO, MoRTH etc. for implementation, testing, standardization, R&D activities etc. to ensure optimum utilization of resources.

10. EXPECTED OUTCOMES

energy imports. The production capacity targeted by 2030 is likely to leverage over ₹8 lakh crore in total investments and create over 6 lakh jobs.

10.4 The Mission will signifcantly decarbonise the identifed industrial sectors and prepare a foundation for similar transition in other emerging sectors like steel, shipping, energy storage and long haul mobility. Nearly 50 MMT per annum of CO2 emissions are expected to be averted as a result of the various Green Hydrogen initiatives under the Mission. Ultimately, use of Green Hydrogen will play a crucial role in ensuring India’s energy independence and Net Zero goals.

11.

FINANCIAL OUTLAY

11.1 Financing the Mission would require both public and private investments. In principle, Government of India support will de-risk private investment from various sources. These investments would primarily be in developing new projects and assets for Hydrogen production, supporting retrofts required for enabling greater use of Green Hydrogen and Green Ammonia, and support activities including software, testing, maintenance etc. The aim is to create multiplier effect in investment using the government support and creating an enabling environment for accelerated growth of Green Hydrogen production, uptake and exports.

13. CONCLUSION

10.1 The Mission will lead to economywide benefts through decarbonisation of industrial, mobility and energy sectors; reduction in dependence on imported fossil fuels; development of indigenous manufacturing capabilities; creation of employment opportunities across the value chain; and development of cuttingedge technologies and innovation ecosystem in the country.

10.2 Implementation of the Mission is expected to create a large-scale ecosystem for Green Hydrogen production and use in the country. India’s Green Hydrogen production capacity is likely to reach at least 5 MMT per annum, with an associated renewable energy capacity addition of about 125 GW. With growth of export markets and international partnerships, the production capacity could be scaled to 10 MMT per annum.

10.3 The ecosystem for Green Hydrogen will also create substantial investment and employment opportunities and save a signifcant amount of outgo towards

11.2 The initial outlay for the Mission will be ₹19,744 crore, including an outlay of ₹17,490 crore for the SIGHT programme, ₹ 1,466 crore for pilot projects, ₹ 400 crore for R&D, and ₹ 388 crore towards other Mission components. MNRE will formulate schemes guidelines for implementation of the respective components.

12. IMPLEMENTATION ROADMAP

The strategies identifed under the Mission will be implemented in a planned and coordinated manner. The phased approach of the Mission will enable taking up foundational activities like the regulatory framework and pilot projects while also creating demand and early deployment. Later phases will build on these activities and undertake green initiatives in new sectors of the economy. Activities will be taken up in close coordination with respective stakeholders to achieve the Mission objectives

The key actions and implementation timelines are summarised in the table below:

Green Hydrogen is likely to play a critical role in India’s energy transition, particularly in decarbonization of hard to abate sectors. The National Green Hydrogen Mission is a step in this direction. The Mission is expected to facilitate deployment of Green Hydrogen ecosystem and create opportunities for innovation and investments across the Green Hydrogen value chain, translating into investments, jobs and economic growth. The Government of India interventions will ignite the process and provide required impetus for unlocking the market potential in various sectors through cost reduction and economies of scale

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