EQ Magazine April 2022 Edition : Special Report on Carbon by EQ Int'l Solar Media Group

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CONT EN T

VOLUME 14 Issue #04

Disclaimer,Limitations of Liability While every efforts has been made to ensure the high quality and accuracy of EQ international and all our authors research articles with the greatest of care and attention ,we make no warranty concerning its content,and the magazine is provided on an>> as is <<basis.EQ international contains advertising and third –party contents.EQ International is not liable for any third- party content or error,omission or inaccuracy in any advertising material ,nor is it responsible for the availability of external web sites or their contents

OPINION EMERGING TRENDS IN THE INDIAN SOLAR POWER SECTOR

68 BUSINESS & FINANCE

INDIA AMITABH KANT ON HOW INDIA CAN POSITION ITSELF AS A LOW-COST, ZERO-CARBON GREEN HYDROGEN MANUFACTURING HUB

88 81 FEATURED

CALIFORNIA EV COMPANY FISKER SELECTS HYDERABAD AS HEADQUARTERS FOR INITIAL OPERATIONS IN INDIA

The data and information presented in this magazine is provided for informational purpose only.neither EQ INTERNATINAL ,Its affiliates,Information providers nor content providers shall have any liability for investment decisions based up on or the results obtained from the information provided. Nothing contained in this magazine should be construed as a recommendation to buy or sale any securities. The facts and opinions stated in this magazine do not constitute an offer on the part of EQ International for the sale or purchase of any securities, nor any such offer intended or implied Restriction on use The material in this magazine is protected by international copyright and trademark laws. You may not modify,copy,reproduce,republish,post,transmit,or distribute any part of the magazine in any way.you may only use material for your personall,NonCommercial use, provided you keep intact all copyright and other proprietary notices. want to use material for any non-personel,non commercial purpose,you need written permission from EQ International.

IREDA TO FINANCE 3,000 ELECTRIC CARS, SANCTIONED LOAN OF RS. 268 CRORES TO BLUSMART MOBILITY

RENEWABLE ENERGY HOW US TREES ARE POWERING EUROPE’S RENEWABLE ENERGY GOALS

RENEWABLE ENERGY

INDIA HOSTS GLOBAL MINISTERIAL MEETING ON RENEWABLE ENERGY

INDIA “INDIA HAS EMERGED AS ONE OF THE WORLD LEADERS IN ENERGY TRANSITION WHICH IS EVIDENT IN THE GROWTH THAT WE HAVE ACHIEVED IN THE AREA OF RENEWABLE ENERGY”: SHRI R.K SINGH

INDIA POLICY TO DEVELOP RECYCLING INDUSTRY FOR HAZARDOUS SUBSTANCES IN ELECTRICAL AND ELECTRONIC EQUIPMENT (EEE), AND OTHERS

77 83 RENEWABLE ENERGY

BUSINESS & FINANCE SWIGGY PARTNERS WITH EV LOGISTICS STARTUP EVIFY TO BUILD AN ELECTRIC DELIVERY ECOSYSTEM IN GUJARAT

MICROSOFT CHILE ANNOUNCES THAT ITS DATA CENTER WILL USE 100% RENEWABLE ENERGY FROM AES ANDES

85 78 BUSINESS & FINANCE

BUSINESS & FINANCE

INDIA AND NEPAL RESTORE RAIL LINKS, AGREE ON ENERGY PROJECTS COOPERATION

RENEWABLE ENERGY TAMIL NADU GOVERNOR CALLS FOR PRODUCING MORE CLEAN AND GREEN ENERGY

08 CARBON CREDIT REPORT 2021

HERO ELECTRIC, ELECTRICPE COLLABORATE TO EXPAND ACCESS TO CHARGING INFRASTRUCTURE ACROSS INDIA

EQ NEWS Pg. 50-88 EQ iSEARCH Pg. 08-49

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Ningbo Deye Inverter Technology Co., Ltd, founded in 2007 with registered capital 46 million USD, is one of the China’s high-tech enterprises and a subsidiary of Deye Group. With a plant area over 15,000㎡ and complete production and testing equipment, Deye has become a major player in the global solar inverter market.

Ningbo Deye Inverter Technology Co., Ltd is dedicated to providing complete photovoltaic power system solutions, including residential and commercial power plants solutions. Also, Deye offers solar energy storage system solutions. Among them, PV grid-connected inverter power range from 1.5-110kW, Hybrid inverter 3kW-12kW, and microinverter 300W-2000W.

Ningbo Deye Inverter Technology Co., Ltd Add: No.26-30, South Yongjiang Road, Beilun, 315806, Ningbo, China Tel: 0086-0574-86120560

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COMPANY

PROFILE

As a technology-oriented company, Deye has always been committing to research and develop new cutting-edge technologies to provide efficiency and reliable products. For example, Deye adopts T-type threelevel topology and enhanced SVPWM algorithm to further improve the conversion efficiency by 0.7% compared with common SPWM. With frequency droop control technology, Deye string inverter is able to work with diesel generator, which greatly expands the scope of the product application.

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CARBON CREDIT REPORT 2021

TABLE OF CONT E N T Introduction ……………………………………………………......................................................……… 10 Carbon Pricing Map …………………………………………………......................................................11 Carbon Prices by Countries ………………………………………………………………………………...........13 Economics of Clean Energy ………………………………………………………………………………..........14 Prices in Implemented Carbon Pricing Initiatives Selected ……………………………………..15 Share of Global Greenhouse Gas Emission ……………………………………………………………....19 Summary Map of Carbon Pricing Initiative ……………………………………………………………...18 Carbon Crediting Demand …………………………………………………………………………………….....25 Volumes Transacted and Prices Per Sector ……………………………………………………………...25 Internal Carbon Pricing ………………………………………………………………………………..............26 Carbon Crediting Mechanisms ………………………………………………………………………………..28 Illegal Activities in Carbon Markets …………………………………………................................29 Mechanisms for Carbon Market ………………………………………........................................29 Article 6 Pilots and Support Activities …………………………………………………………...........29 Countries Wise - Carbon Tax and ETS ……………………………………………………………….......31 Voluntary Carbon Market ……………………………………………………....................................36 Major Carbon Trader Issuance Globally …………………………………………………………………41 Country-Wise Factsheets ……………………………………………………………………………………....43 Future Demand for Voluntary Carbon Credits ………………………………………………………46 Conclusion …………………………………………………………………...............................................47

ABBREVIATION AAU CCER CDM CO2 CPI ETS GHG Gt IET JI M&V

Assigned Amount Unit Chinese Certified Emission Reduction Clean Development Mechanism Carbondioxide Carbon Pricing Instrument Emissions Trading System Greenhouse Gas Gigatonne International Emissions Trading Joint Implementation Measurement and Verification

Mt Metric Ton NBS Nature-based Solutions NDC Nationally Determined Contribution PAT Perform Achieve and Trade RGGI Regional Greenhouse Gas Initiative SBTi Science-Based Targets Initiative tCO2e Tonnes of Carbondioxide equivalent TWh Terawatt-Hour UNFCCC United Nations Framework Convention on Climate Change VCM Voluntary Carbon Market VCS Verified Carbon Standard

INTRODUCTION

arbon markets were brought into the world in the shadow of the 1997 Kyoto Protocol – the first international agreement that sought to operationalize greenhouse gas (GHG) decrease activities approved by the signatories of the 1992 United Nations Framework Convention on Climate Change (UNFCCC) treaty. The idea behind Kyoto was that a base national emission rate would be determined (for most countries, the base year was set to

1990), then that country would set future emission targets based on that rate. In other words, the Kyoto Protocol set a per-country cap for carbon emissions. Carbon markets arose as the “trade” portion of an overall “cap-and-trade” framework. Even before the Kyoto rules came into force, organizations began creating trading mechanisms for companies wishing to voluntarily participate in carbon emission reductions in advance of the kick-off of the imposition of regulatory mandates. Once the Kyoto Protocol rules came into force, credits (Carbon Credit) started to be traded on markets backed by a regulatory mandate. The markets supervised by governmental regula-

tory bodies became known as “Compliance” markets. The Kyoto Protocol has set a “cap” for countries that have accepted targets for limiting or reducing their emissions. These targets are expressed as a fixed number of Assigned Amount Units (AAUs) (total assigned amount of GHG that each country is allowed to emit during the first commitment period of the Kyoto Protocol). Each AAU represents an allowance to emit greenhouse gases equivalent to one tonne of CO2. If the country exceeds its allowed emissions it needs to offset/counterbalance its (excess) emissions by purchasing reductions made in another jurisdiction.Different types of units may be purchased as offsets. Each of these units is given a different name depending upon the legal jurisdiction in which it is generated. In each case, however, each unit is standardized to one carbon credit, the equivalent of one tonne of CO2 making them easily exchangeable across borders. The Kyoto Protocol allows countries that have excess AAUs (Assigned Amount Units) to spare (where that country was able to stay below its assigned target) to sell these excess units to countries that have exceeded their target. As per World Bank Report 2021, experts say prices of $40-80/tCO2e are needed to meet the 2°C goals. This limited ambition is reflected in Low Carbon Prices – only 3.76% of emissions are covered by a carbon price above $40/tCO2e. Nearly half of the largest 500 companies in the world by market value already have an internal carbon price or intend to adopt one in the coming years.

Member Countries of Kyoto Protocol Annex I Australia, Austria, Belarus, Belgium, Bulgaria, Canada, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Latvia, Liechtenstein, Lithuania, Luxemburg, Monaco, Netherland, New Zealand, Norway, Poland, Portugal, Romania, Russia, Slovakia, Slovenia, Sweden, Switzerland, Spain, Turkey, Ukraine, UK, USA Annex II (Specification of the first group and consists Australia, Austria, Belgium, Canada, Denmark, Finof the OECD member of Annex I only) land, France, Germany, Greece, Iceland, Ireland, Italy, Japan, Luxemburg, Netherlands, New Zealand, Norway, Portugal, Sweden, Spain, Switzerland, UK, US Non-Annex l India, China, Malaysia, Pakistan, Philippines, etc Source: EQiSearch

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Source: World Bank

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Source: EQiSearch

APRIL 2022

COMPANIES ARE ADOPTING NET ZERO TARGETS, DRIVING DEMAND IN THE VOLUNTARY CARBON MARKET

Source: EQiSearch

The Covid-19 did not affect much of the carbon credit market, as jurisdictions and companies have not wavered in their commitment to fighting climate change. The limited effect of the COVID-19 pandemic on carbon pricing instruments demonstrates the strength of this policy tool. As per the World Bank Report 2021, the year 2020 saw growth in attention to net-zero commitments by mid-century, with initiatives like the Race to Zero and the Climate Ambition Alliance. As of December 2020, 127 countries, 823 cities, 101 regions, and 1,541 companies have

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CARBON PRICES (2021) CARBON PRICES BY COUNTRIES 140

137

Carbon tax ETS

101

120

101 All other fuels in heat and electricity generation Trasport Fuels

100

73-62 Reduced rate on natural gas on EU ETS installations

Diesel fuel F-gases

Swedan

Liechtenstein Switzerland

20 20 20

France Norway Finland

16 18 18 18

Latvia Korea Quebec Spain California Nova Scotia British Columbia Slovenia

8 9 9 6 6 6 7 4 4 4 4 4 5 5 5 5

Singapore Changqing Tianjin Beijing Hubei Tokyo Chile Colombia Saitama Argentina Guangdong Shanghai Massachusetts Baja Calfornia RGGI South Africa Zacatecas Tamaulipas

Poland Ukraine Shenzhen Kazakhstan Fujian Estonia Japan Mexico

2 3 <1 <1 1 1 1

14 12 13

28 29

35 36

Germany Alberta Canada Canada New Brunswick Saskatchewan Iceland Netherlands

Aviation fuel

24 24 24 24 25 26

32 32 32 32 32

British Columbia

28 - 24

3-<1 0

35-20

All fossil fuels

Ireland Luxembourg Switzerland European Union

F-gases

Oil Coke

40-23 50 52 46

Liquid and gaseous fossil fuels

Northwest Territories Prince Edward Island United Kingdom New Zealand Denmark Portugal

69-4

All fossil fuels

Newfoundland and Labrador Newfoundland and Labrador

2020 carbon price corridor*

F-gases

Nominal prices on April 1, 2021, shown for illustrative purpose only. China national ETS, Mexico pilot ETS and UK ETS are not shown in the graph as price information is not available for those initiatives. Prices are not necessarily comparable between carbon pricing initiatives because of differences in the sectors covered and allocation methods applied , specific exemptions and different compensation methods. *The 2020 carbon price coridor is the recommendation of the World Bank’s 2017 High-Level Commision Source: EQiSearch

Source: World Bank

committed to decarbonizing their activities by mid-century. Carbon pricing can play a important role in reaching net-zero emissions but on its own will not be sufficient to reach net-zero emissions. Other policies are needed both to drive research and development, unlock non-economic barriers to mitigation, and target emissions reductions with very high reduction costs. Carbon pricing instruments can also generate revenues that can be channeled to catalyze clean energy investment flows in 2020 itself, initiatives around the world already generated around $53 billion in revenue, an increase of around $8 billion compared to 2019, and covered 21.7% of global GHG emissions as per World Bank. In 2021, China launched its national ETS (Emissions Trading System), becoming the world’s largest carbon market. Even at the Corporate level, more than 850 companies globally across different sectors are using internal carbon pricing to incorporate climate risks and opportunities into their business strategies and corporate governance structures, an increase of 20% compared to the previous year. This year there are 64 carbon pricing instruments (CPIs) in operation and three scheduled for implementation. This is an increase of six instruments compared to 2020, which had 58 carbon taxes and ETSs in operation. In 2021, 21.5% of global GHG emissions are covered by carbon pricing instruments in operation, representing a significant increase in 2020, when only 15.1% of global emissions were covered. This increase is largely due to the launch of China’s national ETS.

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ECONOMICS OF CLEAN ENERGY Pricing Carbon: Carbon pricing helps to educate producers about which energy sources are the most carbon-intensive, and thus encourages firms to substitute low-carbon fuels. Pricing carbon provides the market with incentives for inventors and innovators to develop and introduce low-carbon products and processes that can replace the current generation’s technologies. The data on decarbonizing the energy system shows that if you want to avoid disastrous climate impacts from future atmospheric CO2 levels of ~ 450 ppm, a significant carbon price will be more important than technology breakthroughs, although mandates, subsidies, and other government deployment programs will be needed before the CO2 price becomes effective. Even with carbon pricing, aggressive energy efficiency will continue to be important. Carbon credits: A carbon credit system was originated that imposed national caps on greenhouse gas emissions of developed nations that ratified the Kyoto Protocol. Participating countries were required to reduce their emissions to well below 1990 levels and more than 5% by 2012. They could also reduce their emissions by trading in emission allowances with countries that already had surplus allowances. They could meet their targets by buying carbon credits. Carbon credits and carbon markets are a component of national and international attempts to mitigate the growth in concentrations of greenhouse gases in the atmosphere. A carbon credit (often called a carbon offset) is a credit for greenhouse emissions reduced or removed from the atmosphere by an emission reduction project, which can be used by governments, industry, or private individuals to compensate for the emissions they generate elsewhere. One carbon credit is equal to one metric ton of carbondioxide, or in some markets, carbondioxide equivalent gases (CO2-eq), and are bought and sold through international brokers, online retailers, and trading platforms. The Kyoto Protocol provides for three mechanisms that enable countries, or operators in developed countries, to acquire greenhouse gas reduction credits: •Under Joint Implementation (JI) a developed country with relatively high costs of domestic greenhouse reduction would set up a project in another developed country. •Under the Clean Development Mechanism (CDM) a developed country can “sponsor” a greenhouse gas reduction project in a developing country where the cost of greenhouse gas reduction project activities is usually much lower, but the atmospheric effect is globally equivalent. The developed country would be given credits for meeting its emission reduction targets, while the developing country would receive the capital investment and clean technology or beneficial change in land use. •Under International Emissions Trading (IET) countries can trade in the international carbon credit market to cover their shortfall in Assigned Amount Units (AAUs). Countries with surplus units can sell them to countries that are exceeding their emission targets under Annex B of the Kyoto Protocol. Cap and trade: Cap and trade and carbon taxing both involve putting a price on carbon emissions. Pricing carbon involves “costing” the environmental damage from CO2 emission. The fossil fuel industry benefits from global subsidies of $5.3 trillion a year, equivalent to $10 million a minute every day, according to a startling new estimate by the International Monetary Fund (IMF) (Coady et al., 2015). The IMF says that the figure is an “extremely robust” estimate of the true cost of fossil fuels. The $5.3 × 1012 subsidy estimated for 2015 is greater than the total health spending of all the world's governments.

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Carbon tax: Another method for national governments to meet their CO2 reduction goal is to tax the emissions of CO2 generators. The advantages of a carbon tax are: •Less complex, expensive, and time-consuming system to implement. This advantage is especially great when applied to markets like gasoline or home heating oil. •Reduced risk for certain types of cheating. But under both credits and taxes, emissions must be verified. •Reduced incentives. Companies may delay efficiency improvements before the establishment of the baseline if credits are distributed past emissions. •More centralized handling of acquired gains. It is simpler to administer, easier to ensure compliance, and better to monitor progress. •Stabilization of the worth of carbon by government regulation rather than market fluctuations. Poor market conditions and weak investor interest have a lessened impact on taxation as opposed to carbon trading. But, when credits are grandfathered, it puts new or growing companies at a disadvantage relative to more established companies. The Discount Factor: Climate change has presented a very difficult economic and political challenge. Converting future costs and benefits into

Implemented Carbon Pricing Initiatives Selected today's currency requires thePrices process in of discounting,a calculation that accounts for the fact that people value present costs and benefits more than future costs and benefits.

PRICES IN IMPLEMENTED CARBON PRICING INITIATIVES SELECTED Price in implemented carbon pricing initiatives selected

Alberta Tier Argentina carbon tax BC GGIRCA BC carbon tax Beijing pilot ETS California CaT Canada federal OBPS Canada federal fuel charges Chile carbon tax Chongqing pilot ETS Colombia carbon tax Denmark carbon tax EU ETS Estonia carbon tax Finland carbon tax France carbon tax Fujian pilot ETS Germany ETS Guangdong pilot ETS Hubei pilot ETS Iceland carbon tax Ireland carbon tax Japn carbon tax Kazakhstan ETS Korea ETS Latvia carbon tax Liechtenstein carbon tax Luxembourg carbon tax Manitoba ETS Manitoba carbon tax Massachusetts ETS Mexico carbon tax Montenegro ETS Netherlands carbon tax New Brunswick ETS New Brunswick carbon tax New Zealand ETS Newfoundland and Labrador PSS Newfoundland and Labrador carbon tax Noerthwest Territories carbon tax Norway carbon tax Nova Scotia CaT Poland carbon tax Portugal carbon tax Prince Edward Island carbon tax Quebec CaT RGGI Saitama ETS Saskatchewan OBPS Shanghai pilot ETS Shenzhen pilot ETS Singapore carbon tax Slovenia carbon tax South Africa carbon tax Spain carbon tax Sweden carbon tax Switzerland ETS Switzerland carbon tax Tamaulipas carbon tax Tianjin pilot ETS Tokyo CaT UK carbon price support Ukraine carbon tax Zacatecas carbon tax 0 Price Rate 1

Price Rate 2

100

110

120

130

140

150

US$/ tCO2e

Note: Nominal price on&nbsp: April , 01 2021 Price are not necessarily compareable between carbon pricing initiatives besause of differences in the number of sector and allocation methods applied, specific exemption and different compensation methods. Due to the Dynamic approach to continuouslyimprove data quality and fluctuating exchange rat may not always be compareable and couls be amended following new information from official government sources. In addition, data for a limited number may be incomplette as they are in time process of being vaildated and will be updated following confermation from official government sources. Source: World Bank Group

Source: World (Nominal prices on AprilBank 01, 2021)Group

Source: EQiSearch

(Nominal prices on April 01, 2021)

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EMISSIONS IN 2021 Global CO2 emissions from energy combustion and industrial processes bounce back in 2021 to reach their highest ever annual level. A 6% increase from 2020 pushed emissions to 36.3 gigatonnes (Gt), an estimate based on the IEA’s detailed region-by-region and fuel-by-fuel analysis, drawing on the latest official national data and publicly available energy, economic, and weather data. The biggest increase in CO2 emissions by sector in 2021 took place in electricity and heat production, where they jumped by more than 900 Mt (Metric Tons). This accounted for 46% of the global increase in emissions since the use of all fossil fuels increased to help meet electricity demand growth. CO2 emissions from the sector neared 14.6 Gt, their highest ever level and around 500 Mt higher than in 2019. China accounted for almost all of the global increase in electricity and heat sector emissions between 2019 and 2021. A small decline from the rest of the world was insufficient to offset the increase in China. Global CO2 emissions from the buildings and industry sectors rebounded back to their 2019 levels, driven by increases in both advanced economies and emerging market and developing economies. China was the notable exception, with lower coal use in the industry pushing CO2 emissions from the industry sector below their 2019 level for the second year in a row. Transport was the only sector in which global CO2 emissions remained well below 2019 levels due to the increasing mobility of electric vehicles. The emissions reduction impact of record electric car sales in 2021 was canceled out by the parallel increase in sales of SUVs.

ANNUAL CHANGE IN CO2 EMISSIONS BY SECTOR, 2020-2021

Source: EQiSearch

The 6.9% increase in CO2 emissions from the electricity and heat sectors in 2021 was driven by the biggest ever year-on-year increase in global electricity demand. Rising by close to 1,400 terawatt-hours (TWh), or 5.9%, the growth in electricity demand in 2021 was more than 15 times the size of the drop in demand in 2020. Coal-fired power plants were called upon to meet half of the increase in global electricity demand in 2021, with coal’s share of total generation rebounding above 36%. CO2 emissions from coal power plants rose to a record 10.5 Gt, which is 800 Mt above their 2020 level and more than 200 Mt above their previous peak in 2018. Without supply constraints and high prices that affected China and India during certain periods of the year, global coal use for electricity generation in 2021 would have been even higher.

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REGIONAL, NATIONAL, SUB-NATIONAL CARBON PRICING INITIATIVE SELECTED: SHARE OF GLOBAL GREENHOUSE GAS EMISSION COVERED

Source: EQiSearch

The economic recovery in China appears to be particularly energy-intensive. The primary energy demand intensity of China’s GDP between 2019 and 2021 improved by an average of only 1% annually, compared with 1.2% between 2008 and 2010 when China enacted a huge economic boost, and an average improvement rate of 3.7% from 2010 to 2019. China’s energy intensity in 2021 was impacted primarily by evolutions in the electricity sector. With rapid GDP growth and additional electrification of energy services, electricity demand in China grew by 10% in 2021, faster than economic growth at 8.4%. The increasein demand of almost 700 TWh was the largest ever experienced in China. With demand growth outstripping the increase of low emissions supply, coal was called on to fill 56% of the rise in electricity demand. This was despite the country also seeing its largest ever increase in renewable power output in 2021. Electricity generation from renewables in China neared 2,500 TWh in 2021, accounting for 28% of the total generation in the country CO2 emissions in India rebounded strongly in 2021 to rise 80 Mt above 2019 levels, led by growth in coal use for electricity generation. Coalfired generation reached an all-time high in India, jumping 13% above the level in 2020 when coal generation had declined by 3.7%. This was in part because the growth of renewables slowed to one-third of its average rate of the previous five years.

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iSearch Global economic output in advanced economies recovered to pre-pandemic levels in 2021, but CO2 emissions rebounded less sharply, signaling a more permanent trajectory of structural decline. CO2 emissions in the United States in 2021 were 4% below their 2019 level. In the European Union, they were 2.4% lower. In Japan, emissions dropped by 3.7% in 2020 and rebounded by less than 1% in 2021. Across advanced economies overall, structural changes such as increased uptake of renewables, electrification, and energy efficiency improvements avoided an additional 100 Mt of CO2 emissions in 2021 compared with 2020.

SUMMARY MAP OF REGIONAL, NATIONAL, AND SUB-NATIONAL CARBON PRICING INITIATIVE

Source: EQiSearch

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NUMBER OF MECHANISM WITH GHG EMISSION

Source: World Bank

Source: EQiSearch

SHARE OF GLOBAL GREENHOUSE GAS EMISSIONS COVERED BY CARBON TAXES AND EMISSIONS TRADING SYSTEMS In March 2021, the Chinese government announced the 14thFive Year Plan, which included energy and climate goals for 2021–2025. The plan proposes a 13.5% reduction in energy intensity and an 18% reduction in CO2 emissions intensity from 2020 levels. A 20% target for non-fossil energy in total energy consumption was also outlined. More detailed climate targets, including an economy-wide CO2 emissions cap (independent of the ETS), will likely be outlined in the forthcoming 14thFive Year Plan on GHG Emissions Control and Prevention. Energy sector-specific plans are expected to be released later in a year, which is also anticipated to contain targets on coal consumption and production, as well as renewable energy development. The Ministry of Ecology and Environment (China) is also working on an action plan to peak CO2 emissions by 2030, including the development of action plans and targets at the provincial and industry level. These targets can help design an absolute cap for the national ETS. In addition, policy developments in the energy sector will also interact with China’s national ETS. These include the energy use quota exchange policy, which has been identified as a priority for 2021 and is being developed by the Environment and Natural Resource Department at the National Development and Reform Commission. The design for the national energy use quota market is due to be released by the end of 2021. The national Renewable Portfolio Standard was launched in 2020, with the province, grid, and company-wide targets to be established. Covered entities can also trade green certificates to reach their targets. The influence of these policies on the electricity market will have a connection with the national ETS cap and allocation. Finally, China’s ongoing structural reform to liberalize the power sector may also open the possibility of regulating direct emissions in the future. Currently, due to China’s regulated power structure, both direct and indirect emissions are covered under the national ETS.

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Source: EQiSearch

In 2020, the European Green Deal was also announced, including a proposal for the European Climate Law legislating a 2050 climate neutrality objective and a 2030 Climate Target Plan to reduce net emissions by at least 55% by 2030. There will be a revision of the EU ETS, with a proposal expected in June 2021 to align it with the more ambitious 2030 target. The EU is planning to extend the ETS to maritime transport, ensure the contribution of the aviation sector is in line with new objectives, and assess the possibility of also extending carbon pricing to the transport and buildings sectors. Following its departure from the EU, the United Kingdom stopped participating in the EU ETS on January 1, 2021. On the same day, the U.K. ETS came into operation, closely resembling the design of Phase 4 of the EU ETS. Covering the power, industry, and domestic aviation sector, the cap will reduce emissions by 4.2 MT (Metric tons) annually and will be revised in 2024 in line with the country’s 2050 net-zero trajectory.

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Germany’s national fuel ETS also came into operation, covering all fuel emissions not regulated under the EU ETS around 40% of national GHG emissions. The Netherlands Industry Carbon Tax Act (Wet CO₂- Heffing Industries) entered into force on January 1, 2021, with a rate of EUR 30 ($35.24)/tCO2e. The policy targets industrial installations in the Netherlands subject to the EU ETS acting as a top-up fee as well as waste incinerators and facilities emitting large amounts of nitrous oxide that are not covered under the EU ETS. Luxembourg’s carbon tax, which covers emissions from transport, shipping, and buildings, also started operation at EUR 31.56 ($37.07)/tCO2 for petrol, EUR 34.16 ($40.12)/tCO2 for diesel, and EUR 20 ($23.49)/tCO2 for all other energy products except electricity. In July 2020, the Mexican state of Tamaulipas passed legislation enacting a carbon tax starting in 2021, equivalent to about MXN 250 ($12.23)/ tCO2e to fixed sources and facilities that emit more than 25 tCO2e of GHG monthly. A majority of carbon prices remain far below the $40–80/tCO2e range needed in 2020 to meet the 2°C temperature goal of the Paris Agreement. Even higher prices will be needed over the next decade to reach the 1.5°C targets. In the Republic of Korea, prices fell from May 2020 onward before starting to move up again in late summer, while the California–Quebec market price stayed around the auction floor price of $ 16.68/ tCO2e. Though auctions were undersubscribed in May and August 2020, stronger demand returned by November. In the Regional Greenhouse Gas Initiative (RGGI), prices also remained relatively stable. This provides a stark contrast to the 2007–2008 financial crisis and subsequent economic downturn, which led to sustained price depressions across multiple systems.

Jurisdiction

Price Increases in Carbon Taxes and Emissions Trading Systems Carbon Pricing Instrument 2020 Price Increase Price

Latvia

Carbon tax

EUP 9 ($10.57)

EUR 12/tCO2e ($14.1/tCO2e)

Canada

Federal backstop (output-based pricing system and carbon tax)

CAD 30/ tCO2e ($23.88)

CAD 40/tCO2e ($31.83/tCO2e) Post-2021: CAD 15/tCO2e (11.94 $/tCO2e) annual increase to reach CAD 170/tCO2e ($ 135.30 /tCO2e) by 2030

Ireland

Carbon tax

EUR 26/ tCO2 ($30.54/ tCO2e)

Tax rate for petrol and diesel to EUR 33.5/tCO2 ($39.35/tCO2e), the same increase applies to other fuels from May 1, 2021 Target rate for 2030 increased from EUR 80/ tCO2 to EUR 100/tCO2 ($93.97 to $117.46 / tCO2e)2

Germany

National fuel ETS

Rises to EUR 55 ($ 64.60) by 2025

Source: World Bank

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Source: EQiSearch

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Source: EQiSearch

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Source: EQiSearch

Several new ETSs have been scheduled to begin in the coming years. Ukraine’s Minister of Environmental Protection and Natural Resources announced plans to launch a national ETS by 2025 to comply with the EU’s border carbon adjustment requirements, as well as to support its 2030 mitigation goal and its NDC (Nationally Determined Contribution) carbon neutrality target for 2070. Ukraine ETS design is likely to draw upon the design of the EU ETS. Finally, in March 2021, Indonesia launched a trial ETS until the end of August 2021 for 80 coal power plants, 37 of which cover three-quarters of the power generation sector. While no date has been set for a national ETS, the upcoming presidential regulation will include general rules on developing and establishing carbon pricing instruments. In March 2021 in the United States, the Transportation and Climate Initiative has released a draft Model Rule for an ETS which is scheduled to start in 2023 and cover suppliers and distributers of transport fuels. The Colombian government aims to potentially launch an ETS pilot program by 2024. At the end of last year in 2020, Turkey finalized the draft legal and institutional framework for a pilot ETS for the power and industry sector. Similarly, Thailand plans to pilot an ETS in the Eastern Economic Corridor, however, a start date has not been confirmed for either of these pilots. The Government of the Russian Federation adopted a roadmap in December 2020 for the launch of the first regional system for the circulation of carbon units, with Sakhalin (Russia) - a significant oil and gas producing region identified as the pilot region. Further details will be developed between 2021 and 2023. In November 2020, the Vietnam National Assembly passed the revised Law on Environmental Protection to organize and develop a carbon market, including details on cap setting and allocation. Pakistan is currently investigating the role carbon markets can play in achieving its NDC and working to improve MRV (Measurement, Reporting, and Verification)data. Brunei Darussalem aims to introduce carbon pricing by 2025 but no specific design has yet been identified. Finally, the U.S. State of Hawaii is considering a $40 tax on fossil fuels, though with the Senate closed since March 2020 as a result of COVID-19, the future of the proposed legislation is unclear. As of April 2021, 29 countries have enshrined net-zero targets in laws or policy documents or have proposed legislation to do so. The majority of targets aim for achieving net-zero

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by 2050, though China and Ukraine are aiming for 2060 and 2070, respectively, while a handful of European nations are targeting earlier dates. Of the 29 countries that have adopted net-zero targets, 22 already have carbon prices in place. While some countries have already begun to articulate the role that carbon pricing will play in achieving their net-zero commitments, much more work is needed to clarify the nature and scope of these commitments and how they will be achieved.

CUMULATIVE CREDIT ISSUANCE OF CREDITS (2019-2020)

Source: EQiSearch

CREDIT ISSUANCE AND NUMBER OF PROJECTS REGISTERED BY A MECHANISM

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CARBON CREDITING DEMAND

In 2019, the demand for carbon credits from voluntary buyers surpassed 104 MtCO2e, representing an increase of 6% based on 2018 figures. The increased demand, mostly for credits from VCS (Verified Carbon Standard) and the CDM (Clean Development Mechanism) projects - is providing certainty and consistent revenues for project developers. In 2019, renewable energy and forestry, and land-use projects accounted for most of the credit transactions in the market, though transactions of forestry and land-use credits reduced significantly compared to 2018. Meanwhile, sustainable agriculture and rangeland management emerged as opportunities for carbon storage and drew the highest prices in the market.While several carbon pricing instruments allow entities to use carbon credits to meet their obligationsparticularly those in East Asia and North America, these only accounted for 18 MtCO2e in 2020, though this does represent a 13% increase in 2019 demand. South Africa moved a step closer to credit, as the Carbon Offset Administration System went live in 2020, becoming the first official registry for carbon credits generated under independent standards such as the VCS. The share of credits surrendered for domestic compliance may grow with upcoming sources of demand like Canada’s federal offset system and the use of credits in China’s national ETS. Chile’s crediting mechanism is also set to start in 2023. This demand source is likely to remain limited given the quantitative and qualitative restrictions on offset usage in its jurisdictions.

VOLUMES TRANSACTED AND PRICES PER SECTOR (2019)

Source: EQiSearch

As of October 2020, 1,565 companies across all continents had adopted commitments to reduce their emissions to net-zero. The list of companies adopting such commitments is diverse, encompassing tech giants, oil majors, consumer brands, and airlines, among others. About half of these companies have expressly indicated their interest to rely at least partially on carbon offsetting to achieve their targets, with few companies having entirely ruled out the possibility of offsetting. Shell alone has announced it intends to purchase 120 million carbon credits per year by 2030, more than the entire size of the voluntary carbon market in 2019. For some companies, in particular, those serving consumer markets, the possibility to establish a clear correlation between their local environmental impact and crediting projects is attractive, and there is a willingness to pay a higher price than the average in the market. This is cultivating a growing number of local standards covering emissions that are not tapped by other existing carbon pricing instruments. North America is purchasing most of its carbon credits in its region, with buyers in Oceania purchasing 41% of their credits locally in the below table. The share of local carbon credits bought by European buyers, in contrast, remains small. However, buyers’ willingness to pay more than three times as much for these credits is leading to a growth in the number of local European standards, with four new standards having been launched in the past two years.

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Voluntary Credit Buyers and Projects Purchased by Region Buyer Region Project Region Volume Share Of Regional Price ($) (Mtco2 E ) redits from Global

Europe North America Oceania

Global In Europe Global In North America Global In Oceania

2018 38.58 0.71 8.5 5.56

2019 23.5 0.2 12.2 9.4

1.82 0.55

0.7 0.3

2018

2019

1.90%

0.90%

65%

30%

77%

2018 3.26 6.94 3.23 3.04

2019 3.32 10.19 3.01 3.41

43%

3.69 15.84

7.87 13.44

Note: “Buyers” refers to the private sector, governments, nongovernmental organizations, and other institutions. “Global” includes projects located in the buyer region. Other regions are not shown in the table as there is not sufficient information to share while still maintaining respondent anonymity. Data is from Ecosystem Marketplace. Forest Trends, 2020 (Source: World bank)

Source: EQiSearch

INTERNAL CARBON PRICING In 2020, 853 companies disclosed the use of an internal carbon price, with an additional 1,159 noting an intention to adopt one over the next two years as per World Bank. This represents a 20% increase above 2019 and shows a fourfold increase in the market capitalization that these companies jointly represent such as increasing from $7 trillion in 2017 to over $27 trillion in 2020. Many of the world’s largest corporations are part of this leading cohort - data shows that as of 2020, nearly half (226) of the 500 largest companies by market cap now fall into this category. This trend indicates that the private sector is increasingly integrating climate risks and opportunities into long-term strategies and sees an internal carbon price as an effective instrument to help guide investment decision-making processes.There is a rising level of sophistication in the way internal carbon pricing is being set and applied as companies shift towards dynamic pricing approaches. An internal carbon price is a price that organizations deliberately set for themselves, to incorporate the economiccost of their greenhouse gas emission. A dynamic approach refers to an internal carbon price that is adjusted over time and may, for example, be recorded to regulatory pricing in the region where a company operates or to the price of voluntary offsets in areas where regulatory price indicators are lacking. This implies a dynamic price that can move both up or down, depending on how the price of the chosen benchmark evolves. By taking a quicker approach to valuing carbon, companies can get ahead of anticipated carbon emission regulations (e.g., a carbon tax with a fixed price) or adjust their pricing in case their operations are already impacted by emissions regulations (e.g., through a changing emissions allowance price traded in an ETS). As such, this can also be viewed as an indication of companies’ increasing readiness to act on regulatory pricing or the expectation that existing regulatory prices are not set in stone and are set to change over time. Large conglomerates active across multiplelocations may value their internal carbon price by regulatory price signals that are anticipated in the geographies of operation. For organizations that are dependenton more than one regulatory plan, the company-wide price might be ineffective, triggering companies to look for ways to tailor their price-setting approach to local contexts. Companies are also adopting different price levels depending on the impact a given business unit is likely to play within the broader institutional structure, in terms of its business condition, degree of environmental impact, or readiness for uptake by management. Role of internal carbon pricing in LafargeHolcim’s net-zero Strategy: LafargeHolcim is the first global building materials company to sign the United Nations Global Compact’s “Business Ambition for 1.5°C” initiative with intermediate targets approved by the SBTi (Science Based Targets Initiative) in alignment with the net-zero pathway. The company is pursuing several climate mitigations and adaptation strategies, like the use of green bonds and tying sustainability objectives to executive compensation. As the company operates across nine locations with carbon pricing regulations, LafargeHolcim also uses a shadow price on carbon at $34/tCO2 to prioritize low-carbon investments, change internal behavior, identify energy efficiency, and seize low-carbon opportunities.

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INTERNAL CARBON PRICING ACROSS SECTORS AND GEOGRAPHY Over 40% of companies currently implementing an internal price, use it to manage the risk introduced by national or jurisdictional GHG regulations. This trend indicates that many companies are adopting internal carbon pricing as a result of local carbon pricing developments. Nearly one-third of companies not facing or expecting emissions regulations still indicate navigating GHG regulations as one driver for applying internal carbon pricing, highlighting the important role that timely signals from governments may have on corporate readiness for regulatory pricing. Fossil fuel and power companies report the highest rate of current or expected emissions regulation. This comes as no surprise as these sectors are typically the first to be covered by carbon taxes and ETSs. In absolute terms, the largest number of companies adopting an internal carbon price is in Asia, followed by Europe. At the country level, the United States hosts the highest number of companies implementing or planning internal pricing, with a total of 264 organizations reporting to do so. Most notable is the rapidly increased interest in South Africa, where over half of the reporting companies already are or report a plan to use internal carbon pricing. This trend, combined with the growing uptake of pricing across Asia, is likely in part a reflection on the regulatory developments in these regions that have been introduced (e.g., South Africa through its carbon tax and China through the national ETS) or are at the verge of introducing carbon pricing regulation. The majority of the median internal carbon prices remain below the $40–80 price per ton range that is required to meet the temperature goals of the Paris Agreement. However, over 16% of the companies publicly reporting to CDP use prices that fall within this range, and around 10% use higher prices. Reported internal carbon price valuation ranges from $6 to $918, showing a high rate of variability depending on the sector within which a company operates. In terms of geographic trends, the lowest median pricing is observed with companies operating in Africa, the highest median pricing can be observed in Europe and Asia, while median prices are still not at the levels that are required to line up with the temperature goals of the Paris Agreement, in many cases, they exceed the level of regulatory prices that were recorded over the past year.

Source: EQiSearch

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CARBON CREDITING MECHANISMS Detailed updates on crediting mechanisms are presented from April 1, 2020, to April 1, 2021. Where no significant changes occurred over the past year. A more comprehensive list of crediting mechanisms is mentioned in the below carbon pricing dashboard. Below chart presents an overview of domestic and independent crediting mechanisms.

Source: EQiSearch

The markets outlined are referred to as ‘compliance markets’ because they constitute the trading of carbon credits and offsetting of carbon emissions by countries that are legally bound to comply with the emissions targets set by the Kyoto Protocol. Outside of these markets, carbon offset credits can be traded in the ‘voluntary carbon market’ by any citizen or institution looking to offset their greenhouse gas emissions. The most common examples are voluntary efforts to offset emissions caused by air travel, efforts to reduce the carbon footprint of conferences or public events, or manufacturing of a product. The voluntary market is currently much smaller than the compliance market, presently justthree basic points of the total compliance market. However, with issues of climate change reaching significant awareness on an increasing level, the voluntary carbon market is likely to expand. The past year has seen significant growth in carbon credit markets as per the World Bank Report, 2021. Despite the COVID-19 pandemic and the economic downturn, the number of registered projects increased by 11%, going from 16,854 in 2019 to 18,664 in 2020. The number of credits issued also increased by 10% over the same period, bringing the total number of credits issued since 2002 to around 4.3 billion tCO2e. This is equivalent to what 200 billion trees could absorb in one year or around 7.9% of annual global GHG emissions. However, these annual supply numbers are far below the levels seen at the height of market supply in 2012 before the end of the first compliance period of the Kyoto Protocol, with issuance and project registration numbers five times higher than today’s volume.

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In 2020, half of the credits issued came from independent standards such as Verra and the Gold Standard. Credits issued by this category of standards grew by 30% compared with 2019. Corporations represented 96% of the rise in voluntary market transactions, led by consumer goods companies, financial institutions, and energy industries. The issuance of credits in domestic crediting mechanisms increased by 25%.

ILLEGAL ACTIVITIES IN CARBON MARKETS This guide seeks to identify those areas within emerging carbon markets that are potentially or have proven to be, vulnerable to criminal activity. In broad terms, the illegal activities identified include: i) Fraudulent manipulation of measurements to claim more carbon credits from a project than were obtained ii) Sale of carbon credits that either do not exist or belong to someone else iii) False or misleading claims concerning the environmental or financial benefits of carbon market investments iv) Exploitation of weak regulations in the carbon market to commit financial crimes, such as money laundering, securities fraud, or tax fraud v) Computer hacking/phishing to steal carbon credits and theft of personal information

MECHANISMS FOR CARBON MARKET CREATED BY REGIONAL, NATIONAL, OR SUB-NATIONAL GOVERNMENT Alberta Emission Offset System, British Columbia Offset Program, California Compliance Offset Program, Canada Federal GHG Offset System, China GHG Voluntary Emission Reduction Program, Chongqing Crediting Mechanism, Kazakhstan Crediting Mechanism, Mexico Crediting Mechanism, Québec Offset Credit Component Of The Cap-And-Trade, RGGI CO2 Offset Mechanism, Saskatchewan GHG Offset Program, South Africa Crediting Mechanism, Spain Fes-CO2 Program, Taiwan, China GHG Offset Management Program, Thailand Voluntary Emission Reduction Program, MECHANISM CREATED BY INDEPENDENT STANDARDS Gold Standard, Verified Carbon Standard MECHANISM CREATED UNDER INTERNATIONAL LAW Clean Development Mechanism, Corsia

ARTICLE 6 PILOTS AND SUPPORT ACTIVITIES

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Source: EQiSearch

COUNTRIES WISE- CARBON TAX AND ETS (EMISSIONS TRADING SCHEME) Significant developments in regional, national, and subnational carbon pricing initiatives (i.e., carbon taxes and ETSs) worldwide such as Brunei Darussalem, Canada, China, Colombia, Denmark, European Union, Germany, Iceland, Indonesia, International Maritime Organization, Ireland, Japan, Kazakhstan, Korea, Republic of, Latvia, Luxembourg, Mexico, Montenegro, Netherlands, New Zealand, Norway, Pakistan, Sakhalin, Serbia, Switzerland, Thailand, Turkey, United Kingdom, United States, Washington, Ukraine, Vietnam. CANADA In December 2020, Canada proposed to increase its carbon price by CAD 15 ($11.94)/tCO2e annually from the 2022 price starting at CAD 50 ($39.79)/tCO2e to reach CAD 170 ($35.30)/tCO2e by 2030. This rate increase will contribute to achieving Canada's net-zero emission target by 2050, which was announced on November 19, 2020. In February 2021, the government of Canada published a paper seeking input on a review of the Output-Based Pricing System (OBPS) Regulations. As part of this review, Canada may consider increasing the rigidness of large-emitter standards under the OBPS to achieve its long-term GHG emission reduction goals. On March 25, 2021, in response to a case launched by Saskatchewan, Ontario, and Alberta, the Supreme Court of Canada ruled that the federal Greenhouse Gas Pollution Pricing Act is constitutional. CHINA China's national ETS came into effect on February 1, 2021, with compliance obligations for entities in the power sector emitting over 26,000 tCO2 annually from the 2013–2019 period. The compliance cycle started on January 1, 2021, and covers an estimated 2,225 entities, making it the world's largest ETS. The national market covers around 30% of national emissions or around 4,000 MtCO2. 133 Entities regulated under the national system do not face compliance obligations under the pilot ETSs. Allowances are allocated through four different types of carbonintensity benchmarks for electricity production (tCO2/MWh) such as conventional coal power plants (0.877 for entities above 300 MW and 0.979 for those below 300 MW), unconventional coal (1.146), and natural gas (0.392). The sum of the total allocated allowances of covered entities makes up the cap. Allowances will be distributed based on 70% of the entities' 2018 generation. The remainder will be allocated after entities have submitted verified 2019 and 2020 emissions data. Gas-fired plants will not initially face compliance obligations, while other plants are obligated to surrender allowances covering up to 20% of verified emissions above the level of free allocation they receive. An additional load correction factor can allocate more allowances for plants running at 85% output or less. Up to 5% of entities' allowance obligations can be met with offsets from the China CCER (Chinese Certified Emission Reduction)mechanism. Work on the national ETS trading platform and the CO2 allowance registry is ongoing.

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EUROPEAN UNION In 2021, the revised EU ETS Directive entered into force, outlining the policy framework for the fourth trading phase (2021–2030). The 2021 cap for the EU ETS is set at 1572 MtCO2e for stationary installations, while the cap for emissions from the domestic aviation sector is 38 MtCO2e. In 2020, the European Green Deal was also announced, including a proposal for the European Climate Law legislating a 2050 climate neutrality objective and a 2030 Climate Target Plan to reduce emissions by at least 55% by 2030. As part of the broader package of legislation under the European Green Deal, there will be a revision of the EU ETS, with a proposal expected in June 2021 to align it with the more ambitious 2030 target. In September 2020, a provisional link was established between the EU ETS and Swiss ETS registries to allow for allowance transfers in line with the linking of the two systems on January 1, 2020. The previous year also marked the last year the United Kingdom participated in the EU ETS following its formal withdrawal from the EU. However, a link between the EU and U.K. ETS may be considered in the future. GERMANY Germany successfully launched its national fuel ETS on January 1, 2021, at a fixed price of EUR 25 ($30.41), covering all fuel emissions not regulated under the EU ETS. These emissions stem from a variety of sources such as heating oil, natural gas, petrol, and diesel. Some fuels (e.g., coal, waste) will be phased in subsequently in 2023. In the next years, the fixed price will continuously rise to EUR 30 ($ 35.24) in 2022, EUR 35 ($ 41.11) in 2023, EUR 45 ($ 52.86) in 2024, and EUR 55 ($ 64.60) in 2025. In 2026, allowances will be auctioned within a price corridor that ranges between EUR 55 ($64.60)and EUR 65 ($76.35). From 2027 onward, allowance prices will be set by the market unless the government proposes a new price corridor in 2025. The cap is set based on Germany's mitigation targets for sectors not covered by the EU ETS as outlined in the EU Effort Sharing Regulation. ICELAND Following a 10% price increase in 2020, Iceland's carbon tax rates increased in tandem with the consumer price index in 2021 and reached ISK 4400 ($34.83)/tCO2e. The tax on imported fluorinated gases (F-gases(Fluorinated gases); HFCs (Hydrofluorocarbons), PFCs (Perfluorochemicals), SF6 (Sulfur hexafluoride), and NF3 (Nitrogen trifluoride) that was enacted in 2020 was applied in full as of January 1, 2021. The rate on F-gases stands at ISK 2500 ($19.79)/tCO2e. INDONESIA In March 2021, Indonesia launched a trial ETS covering 80 coal power plants, which represent more than 75% of emissions from the power generation sector. The trial is scheduled to run until the end of August 2021. Under the pilot, facilities will receive allowances based on capacity benchmarks. Plants with a capacity of more than 400 MW face a 0.918 tCO2/MWh benchmark, while those with a capacity of 100 MW– 400MW are subject to a 1.013 tCO2/MWh benchmark. Detailed rules of the trial will be announced in the second quarter of 2021. A presidential regulation on general rules for carbon pricing is in development, which outlines general rules for carbon pricing and an obligation to develop a GHG emissions cap for main emitting sectors. This will support the development of a national ETS before 2025. IRELAND The Irish carbon tax rate for petrol and diesel increased from EUR 26 ($30.54)/tCO2 to EUR 33.50 ($39.35)/tCO2 in October 2020. The increase will be extended to all other fuels on which the tax is applied in May 2021. The new Irish government also agreed on a steeper trajectory for the carbon tax, increasing the target rate for 2030 from EUR 80 ($93.97)/tCO2 to EUR 100 ($117.46)/tCO2. JAPAN Based on the Tokyo Metropolitan Government's emission data from FY2018, during the second compliance period (FY2015–FY2019), the covered entities overachieved their emission reduction targets by 15%–17%. The third compliance period (FY2020–FY2024) commenced in April 2020. Covered facilities need to reduce emissions by 25% or 27% below base-year emissions, depending on their category. The third compliance period also encourages facilities to switch to cleaner electricity through incentives for low-carbon and renewable energy. KAZAKHSTAN According to the National Allocation Plan for 2021, Kazakhstan ETS entered Phase 4, setting a cap of 169.2 MtCO2 for the year 2021. In addition, allowances will now be distributed based on benchmarking instead of free allocation. LATVIA Latvia increased its carbon tax rate to EUR 12 ($ 14.1)/tCO2e in line with the reforms undertaken in 2019 in the Natural Resources Tax Law. SOUTH KOREA Phase 3 of the Korean ETS commenced in 2021 with an increase in the cap and inclusion of new sectorssuch as construction companies and (large) transport companies, increasing covered entities from around 610 to 685, this equates to a 3.2% increase in the average annual cap,

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amounting to 609 million tCO2e during 2021–2025. With the inclusion of these new sectors, the system's coverage of total emissions increased to 73.5% as per World Bank. In addition, the share of auctioning increased from 3% in Phase 2 to 10% in Phase 3. In April 2020, the Emissions Trading Act was amended, allowing third parties such as financial firms and institutions to participate in the secondary market and trade allowances or converted carbon offset units on the Korean Exchange from Phase 3 onward. In March 2021, the government announced changes to ETS rules, including removing distinctions to domestic and internationally generated offsets. Previously, emitters could use up to 2.5% for international offsets, of the total 5% offsets for compliance. The new rules will allow emitters to use international credits for the full 5% of eligible offset use to cover emissions from 2021 onward. LUXEMBOURG On January 1, 2021, Luxembourg started implementing its carbon tax at EUR 31.56 ($ 37.07)/tCO2 for petrol, EUR 34.16 ($ 40.12)/tCO2 for diesel, and EUR 20 ($23.49)/tCO2 for all other energy products except electricity. The rate is scheduled to increase according to the National Integrated Energy and Climate Plan 2021–2030 to EUR 25 ($29.37)/tCO2 in 2022 and EUR 30 ($35.24)/tCO2 in 2023 to keep Luxembourg on track with its climate targets. NETHERLANDS Netherlands Industry Carbon Tax Act (Wet CO₂-heffing Industries) entered into force on January 1, 2021, with a carbon tax rate of EUR 30 ($35.24)/tCO2e (including ETS price).The policy aims at safeguarding a reduction of industrial GHG emissions of 14.3 MCO2ein 2030. It is targeted at industrial installations subject to the EU ETS, such as waste boilers and facilities emitting large amounts of nitrous oxide, that are not covered under the EU ETS. The measure will apply to 235 companies with 284 installations. This carbon tax comes on top of their compliance obligations in the EU ETS. Industrial installations will have to pay the carbon tax if their emissions exceed their baseline based on EU ETS benchmarks and a national reduction factor needed to reach the emission target. Emissions below this baseline are exempted and are allocated dispensation rights. Installations can exchange dispensation rights over the past calendar year. NEW ZEALAND In June 2020, the Climate Change Response (Emissions Trading Reform) Amendment Act was passed, putting in place a wide range of reforms to the NZ ETS. The legislation imposes a cap of 160 MtCO2e on the NZ ETS for 2021–2025, though a limit is not set on allowances from emissions removals, including from forestry. The Act also outlines a provisional emissions budget for New Zealand of 354 MtCO2e for that same period. Both the budget and cap are in line with New Zealand's 2050 target. The cap for the ETS is set five years in advance and is annually updated on a rolling basis. It also determines the share of allowances to be auctioned each year. The government is considering the use of international offset credits but a limit of zero has currently been set for their use during 2021–2025. The rate of free industrial allocation is also set to reduce by 1% each year from 2021, 2% from 2031, and 3% from 2041. Finally, an automatic surrender and repayment penalty will apply if entities have not surrendered or repaid units by the due date, except for small foresters, who are exempt until 2023. The penalty is set at three times the current market price. NORWAY From January 1, 2021, the CO2 tax on mineral products and the tax on HFCs (hydrofluorocarbon) and PFCs (perfluorocarbon) were increased by 5% in real terms, and the CO2 tax on emissions in petroleum activities was increased by 7% in real terms.The country has also committed toemission levels of 44-45MtCO2 by 2030, which is 13-15% below emissions in 1990.Norway’s electricity generation is almost exclusively renewable: in 2019, 93.4% of electricity was generated by hydropower plants and 4.1% from wind farms. Only 2.5% of generation was from thermal power plants, mostly in industrial heat processes. SWITZERLAND The partially revised CO2 Act entered into force in January 2021. In September 2020, the Swiss Parliament adopted the legal framework for Swiss Climate Policy 2030, which sets out a 50% emissions reduction target and has tofortify measures for the transport, building, and industry sectors. The updates will be a part of the fully revised CO2 Act, which is planned to enter into force by 2022, following a referendum in Q3 2021. The revised CO2 Act that entered into force in January 2021 provides a new legal basis for the Swiss ETS. In addition, the revised Ordinance adopted in November 2020 on the Reduction of CO2 Emissions brought new provisions that aligned the Swiss ETS with the Phase 4 changes of the EU ETS. In September 2020, a provisional link was established between the EU ETS and Swiss ETS registries to allow for allowance transfers in line with the linking of the two systems on January 1, 2020.

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UNITED KINGDOM (UK) The U.K. ETS started operating on January 1, 2021, as the United Kingdom officially departed from the EU and the EU ETS on December 31, 2020. The design features of the U.K. ETS are very similar to those of the EU ETS Phase 4. However, the U.K. ETS has a tighter emissions cap (5% lower than the EU ETS cap), which will be annually reduced by 4.2Mt. The United Kingdom plans to revise its cap no later than 2024, in line with a net zero-consistent target trajectory. The U.K. ETS design also has a Cost Containment Mechanism, which aims to mitigate against sustained extreme price spikes. The mechanism comes into effect based on set time and allowance price triggers. For the first two years, these are set at lower levels than in the EU ETS. There will be further public engagement on Supply Adjustment Mechanisms, which could offer another mechanism to address volatility. A minimum auction reserve price of GBP 22 ($30.31)/tCO2e is also in effect. The ETS will be reviewed in 2023and the U.K. government has also indicated its openness to linking to other plans internationally in the future. In addition, the United Kingdom's power sector will continue to participate in the Carbon Price Support with a minimum carbon price of GBP 18 ($24.80)/tCO2e in 2021. The price has remained at this level since 2018. UNITED STATES (US) Most carbon pricing developments in the United States are taking place on the sub-national level. These include California, Hawaii, Massachusetts, Oregon, Pennsylvania, the RGGI (Regional Greenhouse Gas Initiative), the Transportation and Climate Initiative Program, and Washington. In California, changes to California's Cap-and-Trade Program that were required by Assembly Bill 398 took effect on January 1, 2021. The major changes to the program are (i) establishment of a price ceiling, (ii) changing from a three-tier allowance price containment reserve to a two-tier reserve below the price ceiling, and (iii) reductions in the use of offset credits, especially for those generated from projects that do not provide "direct environmental benefits in the state. Under the upcoming 2022 Scoping Plan update, the CARB (California Air Resources Board) will be assessing a suite of climate policies to chart the course to achieving carbon neutrality by 2045. In Huawei, Carbon tax bills have been introduced in the 2020 and 2021 sessions however, they have not passed to date.In 2020, Massachusetts Limits on Emissions from Electricity Generators system reduced the share of allowances distributed through a free allocation from 75% to 50%. The remainder, after an adjustment to account for banked allowances, were distributed via auctions. Pennsylvania's Department of Environmental Protection released an update of its earlier proposal in April 2020 for a power sector ETS covering CO2 emissions. The proposed regulation is largely consistent with the system design features of the RGGI Model Rule. A final proposal is expected in 2021, with 2022 as the earliest start date for Pennsylvania's ETS to join RGGI. Virginia began participating in RGGI as of January 1, 2021, after the final legislation for establishing an ETS and participating in RGGI was adopted in February 2020. On February 2, 2021, RGGI states also announced a plan for a third program review. The final Memorandum of Understanding for the TCI-P (Transportation and Climate Initiative Program) was released in December 2020 by the participating jurisdictions. As of February 2021, Connecticut, Massachusetts, Rhode Island, and Washington, D.C. signed the MoU and announced their participation in the program, which aims to start its first compliance period in 2023. Eight additional jurisdictions are helping to develop a model rule that could eventually be implemented within their jurisdiction if they join the program at a later date. The program is based on the successful RGGI program, except that transportation fuel suppliers are regulated instead of electric power plants. INDIA The end of the year 2020 marks a fundamental change in the global governance of greenhouse gas (GHG) emissions. Looking forward, the Paris Agreement now provides the new framework for the global effort to control temperature rise. This significantly differs from the approach of its predecessor, the Kyoto Protocol. The new context of the Paris Agreement has important implications for the voluntary carbon market, i.e. the voluntary purchasing and retiring of carbon credits.There exist two types of carbon Market such as Compliance Market & Voluntary Market. India signed the Kyoto protocol in August 2002, Multi Commodity Exchange (MCX), & National Commodity Derivatives Exchange (NCDEX) are the trading platform, while the Bureau of Energy Efficiency & Ministry of Power is the two bodies that have the power to deal in the Carbon credit Market. The voluntary market is the only market where trading of carbon credits is happening where private companies are moving the carbon market. Perform Achieve and Trade (PAT) scheme is a flagship program of the Bureau of Energy Efficiency under the National Mission for Enhanced Energy Efficiency (NMEEE). NMEEE is one of the eight national missions under the National Action Plan on Climate Change (NAPCC) launched by the Government of India in the year 2008. A total of six cycles of the PAT scheme have been launched till April 2020, covering 1,073 industries from 13 industrial and service sectors, which represents about 50% of the primary energy consumption of India. List of 13 sectors covered in PAT scheme such as Aluminium, Cement, Fertilizer, Pulp & paper, Thermal Power Plant, Chlor-Alkali, Iron & Steel, Textile, Railways, Petroleum Refinery, Petrochemicals, DISCOMs, Hotels (under commercial buildings).

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ESCERTS – ISSUANCE, STAKEHOLDERS, AND TRADING As per Perform, Achieve, and Trade (PAT) rules, when a designated consumer overachieves the notified SEC targets in compliance year, the escorts are to be issued by Central Government for the difference of quantity between notified target and achieved SEC. The DCs (Designated Consumers)with SEC (Securities and Exchange Commission)higher in compliance year than the notified target is directed to purchase ESCerts (Energy Savings Certificates)equivalent to the quantum of the shortfall. The various entities involved with the PAT scheme are mentioned below, with Key Stakeholders in PAT Scheme

Source: EQiSearch

A part from the above-mentioned entities, the two exchanges: Indian Energy Exchange (IEX) and Power Exchange India Limited (PXIL) play a crucial role in Escerts trading as well by providing platforms for trading. In EScerts trading, as per existing PAT rules, only designated consumers, having targets under the PAT cycle can participate. Due to the limited life of ESCerts, only DCs who have the obligation of purchase in the current cycle or expected short fall in the immediate next cycle, go for the purchase of EScerts. A study on the participation of Indian companies' Science-Based Targets initiative's (SBTi) 'Business Ambition for 1.5 C° campaign reveals that more than 60 private enterprises in India have either committed or set a target under the same. Of the 60 Indian companies that are a part of SBTi, 27 have already set a target for reductions in their scope 1,2, and 3 emissions by a specific target year. As of today, globally 5,600 corporates have committed emission reduction on SBTi or CDP (Carbon Disclosure Project), and the expected offset requirement from such companies is estimated to be 270 to 950 million tonnes of CO2 by 2030. Trading Period: The ESCerts are traded at the power exchanges at the end of each PAT cycle of three years. During the PAT cycle, the trading lasted for around 4 months. Such a short window for trading makes it difficult to attract a significant number of buyers as well as sellers on exchanges to increase traded volume and for better price discovery. The EScerts are not denominated in terms of GHG reductions, which is the de-facto trading unit of most compliance-based as well as Voluntary carbon markets around the world. Also, the voluntary emission reduction commitments taken by corporates in India and around the globe on SBTi/CDP are in terms of CO2 emission reduction. PROPOSED PHASE-WISE APPROACH FOR CREATION OF VCM IN INDIA To overcome barriers of the ESCerts market and to encourage voluntary entities to participate in meeting the NDC (Nationally Determined Contribution) commitments of India, it is proposed to initiate the development of a voluntary carbon market (VCM). The key policy objective for introducing a VCM in India is to support the achievement of the Indian Nationally Determined Contribution (NDC) under the Paris Agreement.

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APRIL 2022

The proposed implementation for the planned Voluntary Carbon Market in India is spread over three phases:

Source: EQiSearch

VOLUNTARY CARBON MARKET

The voluntary carbon market (VCM) was created outside of governmental regulatory schemes by firms and individuals voluntarily buying carbon offsets to reduce their greenhouse gas (GHG) emissions for learning, image management, or regulation anticipation purposes. The emergence of the voluntary market can also lay the basis for building national capacity in carbon markets in countries whose climate policies may have yet to establish carbon market schemes. While from an environmental viewpoint, voluntary markets cannot be a replacement for compliance markets, they can beimportant, if small, complement to a compliance market. Voluntary markets can provide an early pre-compliance arena in which to test and develop systems needed to transition to a compliance market. ICROA (International Carbon Reduction and Offset Alliance) stands firmly in support of greater climate action and believes that putting a price on carbon creates a tangible impact. Whichever mechanism is used – emissions trading schemes and/or carbon taxes – putting a price on carbon will help to reduce the dependency on fossil fuel across all sectors. The VCM exists to enable non-state actors to take climate action ahead of and beyond regulation. By itself, it will not achieve the Paris Agreement’s goals. The VCM contributes to closing global climate policy gaps (mitigation, finance, ambition) and enables non-state actors to take meaningful action ahead of and beyond regulation and in support of countries’ Nationally Determined Contributions (NDCs). It channels finance to mitigation and adaptation projects, through a transparent, third-party verified, and results-based approach. With the uncertainties of Article 6 of the Paris Agreement now largely addressed after the Glasgow climate talks, the environmental integrity fundamentals of carbon markets are now betterestablished. In setting Article 6 rules, Parties to the Paris Agreement took the approach of defining what is required within NDCs and for related cooperative market mechanisms. They did not define what is excluded or not permitted. The final Article 6 text approved in Glasgow requires that all Article 6 Emission Reductions (A6ERs) need corresponding adjustments (CAs), but it does not state the trading of other ERs (Emission Reductions) in the VCM is not permitted. Article 6 does not therefore directly regulate the VCM, but it is beneficial to the increased joining of the Paris and voluntary markets.

Source: EQiSearch

APRIL 2022

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To ensure the healthy growth of the VCM, the focus should be placed on the quality and credibility of the voluntary market’s main commodity such as carbon credits. The VCM allows corporates to compensate for their unavoidable GHG emissions by purchasing carbon credits issued by projects that remove emissions from the atmosphere or avoid generating the emissions in the first place. Removal credits stem from activities that pull carbon out of the atmosphere such as many nature-based solutions (eg, forests, peatlands, mangroves, and seagrasses) as well as engineered methods such as direct air capture and accelerated mineral weathering. While avoidance credits come from projects that reduce emissions by preventing their release into the atmosphere. These projects reduce emissions compared with the most likely scenario – the baseline. For example, REDD+ (the role of conservation, sustainable management of forests, and enhancement of forest carbon stocks in developing countries)projects reduce forestry loss and preserve the existing one. All renewable energy projects (such as Solar, Wind, Hydro, etc.) also generate avoidance credits, by avoiding the use of fossil fuels. The net-zero transition is gaining momentum, establishing itself as the way forward. The private sector is now playing a pivotal role, with nearly half of the world’s largest 500 companies by market value adopting internal carbon pricing and many more actively engaging in climate action. As part of their corporate climate strategies, which must focus on science-aligned scopes 1-2-3 emission reductions, high-quality offsetting plays an important role in addressing what cannot be reduced now (residual emissions). 2022 will be very important for the VCM and will show how the growing trend moves into establishing a concrete structure of the market through the work of several initiatives such as the IC-VCM and VCMI (Voluntary Carbon Market Integrity Initiative). The health of the market largely depends now on all the market players and their actions towards strengthening the integrity and credibility of the VCM.

Source: EQiSearch

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APRIL 2022

VOLUNTARY CARBON MARKET SURPLUS (Q1 2010-Q1 2021)

Source: EQiSearch

The volume of surplus credits has been building in the voluntary carbon market for several years. At the end of Q1 2021, the surplus excluding CDM credits that have not been converted into VCM registries stood at nearly 400MtCO2e, this is around four times the demand in 2020. This surplus weighs down on VCM prices as buyers can source credits from a large range of existing projects with the minimal incremental cost of delivery. If all of this surplus were ineligible for the VCM it would have a material impact on credit prices, with proceeds from the sale of carbon credits flowing to new projects, driving further emission reductions. We estimate that removal of the surplus would add $10/tCO2 to an average price of a carbon credit at today’s level of demand. Demand for voluntary carbon credits has been increasing rapidly in recent years, doubling over the last three to four years, reaching 95MtCO2e in 2020. Demand has increased for all credit types, especially nature-based Solutions.

Source: EQiSearch

APRIL 2022

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Firms in the financial services sector were the largest users of carbon credits in 2019 accounting for a quarter of all credits retired in the year. This was followed by chemicals and petrochemicals (including oil and gas) at 20%. All other sectors account for less than 10% of carbon credit retirements.

Source: EQiSearch

Prices for voluntary carbon credits vary considerably according to the project type, its age, the size of the transaction, and the standard (e.g. Verra, Gold Standard, CAR, or ACR) to which it is accredited. Prices can range from under $1/tCO2e for older projects with fewer verifiable co-benefits, to over $20/tCO2e for projects with unique features and specific co-benefits, such as biodiversity and support for indigenous people. The figure below shows a summary of average prices in 2019 for credits projects in renewable energy, REDD+ (reducing emissions from deforestation and forest degradation)/forestry & land use, non-CO2 gases/methane, energy efficiency, and other NBS (Nature-based Solutions)/waste disposal.

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Source: EQiSearch

APRIL 2022

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VOLUNTARY CARBON MARKETS FUNCTIONING AND ACTIVE PLAYERS The VCM market worldwide currently involves the below-mentioned players over the entire value chain. Apart from that, National Climate Solutions Alliance, World Economic Forum (WEF), and World Business Council for Sustainable Development (WBCSD) act as guidance entities across the entire value chain

Source: EQiSearch

COMPANIES INVOLVED IN THE CARBON MARKET INCLUDES Project design: Carbon Credit Capital, Bluesource LLC Validation: Gold Standard Verification: American Carbon Registry, Verified Carbon Standard (Verra) Issuance: Architecture for REDD+ Transactions, IHS Market Market Intermediaries: International Chamber of Commerce, AirCarbon Exchange, InterWork Alliance, Environmental Defense Fund Demand Mechanism: International Emissions Trading Association (IETA), The Open Group

MAJOR CARBON TRADER ISSUANCE GLOBALLY Currently, 4 major groups take part in standards and process guidance: ART, Verra, Gold Standard, and American Carbon registry are followed for issuance of carbon instruments traded across various voluntary and compliance markets. The validation, verification, and issuance processes for each of the standards are quite expensive, and in the Indian context, where the measurement and verification (M&V) process of PAT (Perform Achieve and Trade) is unique in terms of local requirement, may pose the challenge of compatibility, in case fungible ESCerts is used as offset instrument at a global scale. Additionally, each of the standards has shown difficulty in capturing additionality, permanence, and prevention of leakage in each of the standards.

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APRIL 2022

These amounts reflect demand established by climate commitments of more than 700 large companies. They are lower bounds because they do not account for likely growth in commitments and do not represent all companies worldwide. TSVCM- Taskforce on Scaling Voluntary Carbon Markets. These amounts reflect demand based on a survey of subject-matter experts in the TSVCM. NGFSNetwork for Greening the Financial System. These amounts reflect demand based on Carbon-dioxide removal and sequestration requirements under the NGF’S 1.5°C and 2° scenarios. Both amounts reflect an assumption that all carbondioxide removal and sequestration results from carbon credits purchased on the voluntary market (whereas some removal and sequestration will result from carbon credits purchased in compliance markets and some will result from efforts other than carbon-offsetting projects) Source: EQiSearch

Source: NGFS, TSVCM, McKinsey analysis

Source: EQiSearch

APRIL 2022

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Few of the Key Players Listed in the Voluntary Carbon Offsets Market are South Pole Group, Aera Group, Terrapass, Green Mountain Energy, Schneider, EcoAct, 3Degrees, NativeEnergy, Carbon Credit Capital, GreenTrees, Allcot Group, Forest Carbon, Bioassets, CBEEX, Biofílica, WayCarbon, Guangzhou Greenstone Global Voluntary Carbon Offsets market size is projected to reach US$ 700.5 million by 2027, from US$ 305.8 million in 2020, at a CAGR of 11.7% during 2021-2027 as per the industry players.

Few Carbon Credits Traders in India Andhyodaya Green Energy

Tata Power Company Ltd.

Grasim Industries Ltd.

Blue Star Energy Services Inc.

Indi Gulf Fertilizer

Balera Global Inc.

Indus Technical and Financial Consultants Ltd.

Jindal Steel

Madhya Pradesh Ryral Livelihoods Project

Powerguda

Rajasthan Renewable Energy Corporation Reliance Energy Ltd Tata Motors Ltd. Tata Steel Ltd. Bajaj Fiserv Ltd. Dhariwal Industries Ltd.

Handia Forest Torrent Power Indian Aluminium Kalpataru Power Transmission

Grasim Industries Balrampur Chini Source: EQiSearch

COUNTRY-WISE FACTSHEETS

Source: EQiSearch

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Source: EQiSearch

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Source: International Carbon Action Partnership (ICAP)

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Source: EQiSearch

APRIL 2022

FUTURE DEMAND FOR VOLUNTARY CARBON CREDITS Forecasting future demand for voluntary carbon credits needs to take into account how carbon credits are used in the context of corporate climate commitments. Firms use carbon credits in a variety of ways and against several types of claims. Some 350 firms have been analyzed by Trove Research and show 26 different terms used to describe the climate targets of these companies. These can bring together into three general categories as Carbon Neutral, Net Zero/Science-based, and Beyond Carbon Neutral. Carbon Neutral describes the intention to offset corporate emissions in the short-term through the combination of emission reduction measures and the purchase of carbon credits, but with the emphasis on the use of carbon credits given the short-term nature of the claim. Net Zero/Science-Based refers to longer-term commitments with a greater emphasis on emission reduction activities in line with science-based emission reduction pathways, and the use of carbon credits to offset residual emissions. Beyond Carbon Neutral refers to the use of carbon credits to offset more emissions than the company is currently creating or has created historically.

Source: SBTI database, November 2020; Trove Research analysis

Source: EQiSearch

Carbon credits are currently being used inconsistently across the mentioned range of claims, which sometimes creates confusion for stakeholders and the companies themselves. To address this, several Civil Society led initiatives and projects are working on guidance to inform when and how carbon credits can be used as part of credible corporate climate commitments. These include: •

Voluntary Carbon Market Integrity initiative (VCMI)

•

Science-Based Targets Initiative (SBTi)

•

Taskforce on Scaling Voluntary Carbon Markets (TSVCM)

•

Oxford Net Zero

•

International Standards Organization (ISO)

The consistent guidance emerging from these initiatives is to encourage firms to firstly reduce emissions across their value chain. The ambition is that these targets should be in line with deep decarbonization targets required to meet the Paris goals of 1.5° to2°Celsius global temperature increase from pre-industrial levels. Against this background, the use of carbon credits is typically described for two purposes: “Neutralizing” residual emissions in the latter years of a 2050 Net-Zero pathway in line with science-based targets and “Compensating” for un-abatable emissions in the short term.

APRIL 2022

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CONCLUSION With developing pressure among countries to diminish Industrial GHG emission along with positive industrial development, emission trading is by all accounts the primary area of business fascination today. In light of the non-stop sanctions of the Kyoto Protocol, the carbon trading business is probably going to arise as the most productive business of the cutting-edge world. The new rise in carbon credit and its activity in developing nations like India, China, and so forth means that how this industry will be effective in the years to come. Carbon trading occupies the fastest growing financial market in the global economy presently. As a developing nation have a large potential for GHG reduction and carbon trading business. According to the World Bank, the market for carbon trading in developing nations such as India is emerging strongly despite various economic and non-economic limitations. Making the right investments now can unlock short-term gains, such as promoting job creation and restoring economic growth, and deliver long-term benefits in the form of stability and decarbonization in the country. This would also set both countries and companies on the right trajectory to deliver the 2030 emissions reductions needed to align with the temperature goals of the Paris Agreement, as well as longer-term net-zero commitments. The carbon Credit helps the countries to reduce the emission, also helps the companies to get the benefit of green energy as well as reduce the GHG emission from the country as a whole. Many countries are planning to enter the carbon credit market latest by 2023. Many countries have already made the draft policy to deal with carbon credit and run a pilot program to test the output. As countries prepare to renegotiate carbon market rules at COP26, campaigners say all forms of cheating and corruption must be eliminated. Two issues remain particularly contentious: double counting and whether surplus credits from the old CDM system should be carried forward into a new carbon market.First, is the double-counting issue. Such as Brazil wants to claim credit for offsets that it sells to another country, meaning that the reductions achieved would be counted twice. If the country invests in a scheme protecting the Amazon rainforest, for example, Brazil wants to count the emissions' reduction towards both its target, as well as the country's goal.Brazil, along with China and India, also wants to trade old credits from the Kyoto era on the new market, to protect the value of previous investments. But as we know, the emission reduction from these already occurred in the past and nothing will change currently in the atmosphere and undermine countries' climate targets. The Carbon Credit Market in the coming years will be one of the best industries, as due to climate change many countries along with companies are committed to reducing carbon emission.

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APRIL 2022

OPINION

EMERGING TRENDS IN THE INDIAN SOLAR POWER SECTOR The Indian solar power sector is emerging day by day with lightning speed. It has grown in every segment starting from manufacturing, installation, improving efficiency, innovation of solar products etc. As the world is heading towards sustainability, Indian geography is the most suitable location for harnessing solar power. The Indian renewable sector is strongly backed by government policies, which help in the exponential growth of renewables in the country. The solar power industry in India has gained from indigenous companies, especially manufacturers who are now focused on producing components and technology-backed solutions in the country. The trends in the solar industry are promising and achievable.

DIGITALIZATION AND AI Nowadays every sector is digitalised. The solar sector is not an exception to this. Digitalization in the solar industry is expected to transform the industry largely. Implementing AI and IoT in the solar industry is likely, commercial feasibility of it will also improve with time. When big companies are investing in technology-based solutions, the trend to use data, drones, robots, and software will be interesting to watch. IoT-based solar products will also have a huge demand in the future.

SUPPORT FROM GOVERNMENT The Indian Government has been promoting solar energy by launching various policies at different levels. The huge goal is to install 100 GW by the end of 2022. Indian Government has introduced BCD on imported solar cells and modules by 25% and 40% respectively. ALMM is also an initiative taken by the government to promote Indian module manufacturers. In addition, the government has announced various subsidy schemes for consumers to adopt solar quickly. With many schemes, the R&D costs and upfront installation expenses are decreased which has directly increased the deployment of solar power in India.

APRIL 2022

IMPROVED ACCESS TO SOLAR ENERGY More categories of consumers are now considering solar power as their sustainable source of energy. It is possible because solar module manufacturers invest largely in Indian module manufacturing. With the existence of Indian make modules, huge dependency on Chinese modules has been reduced. India will see more usage of solar power in all the sectors, not limited to residential and commercial only. Certainly, the use of solar power has increased over the years and it is likely to improve in future.

USE OF BLOCKCHAIN TECHNOLOGY Blockchain technology is likely to be implemented in the solar sector. It may give direct access to purchase and sell products. Blockchain technology may allow all the manufacturers, investors, sellers and buyers to be on the same platform, which may remove the need for intermediates. It may allow the buyers to implement the solar within the budget.

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OPINION GRID PARITY

Grid parity is a situation when generating electricity from alternative sources of energy like renewables costs are more or less the same as conventional sources. This means renewable energy sources can generate electricity at a rate similar to or equal to thermal power generation. With a lot of investment in renewable energy, the solar industry will reach grid parity soon. It is anticipated that solar power will cost less than thermal power in upcoming years. Even more, existing solar projects are already heading in that direction.

REDUCED COST OF SOLAR PANEL COMPONENTS The average price of solar components and hardware has reduced drastically over the years. The dramatic change can be addressed by solar investors and domestic manufacturers who have invested in in-house production. The cost of hardware and solar panels is assumed to decrease further. A drastic change will take place to cater to national and global demand.

ADDITIONAL SOLAR APPLICATIONS WILL GAIN POPULARITY Solar applications other than solar power plants will get popular in future. Solar streetlights and solar DIY kits-like applications will promote the use of solar power. Moreover, EV chargers powered by solar are also likely to get more popular with time. Solar noise barriers on the highway will make nearby people live more peacefully while generating renewable energy. More technologies and applications of solar are likely to grow in the future and it may open up the opportunity for new players as well.

MORE WIDESPREAD ADOPTION OF SOLAR STORAGE SOLUTIONS Solar storage solutions are likely to grow in the future. Self-sufficiency in the solar sector will be a favourable thing to grow in the upcoming time to avoid dependency on-grid as well as to avoid a complete blackout situation. The government will encourage solar +storage solutions by implementing some policies to encourage homes, businesses and organizations to opt for solar with battery storage.

SUPPLY CHAIN LIMITATIONS WILL IMPACT SOLAR PRODUCTION Often, the raw materials for solar equipment are supplied from China. Some supply chains are still facing disruption in the solar sector. Moreover, silicon shortage is the biggest issue that the solar industry is facing nowadays provided silicon is an essential ingredient in solar module manufacturing. Transportation is also a challenge as some ports are excessively congested which can create further delays. Moreover, there are different sizes of raw materials for different modules.

It is difficult to maintain raw material inventory and supply chain management for all sizes.

SOLAR FOR GREEN HYDROGEN

Nowadays, we see a major rise in interest in green hydrogen. Hydrogen fuel will play an important role in decarbonization. But, the key point is that the required hydrogen must be generated from RE sources rather than fossil fuels. The concept of adopting green hydrogen is gaining attention around the globe which sees the opportunities to generate hydrogen directly from solar without using grid electricity. Solar energy can run electrolyzers to convert water into hydrogen. With the decreased costs of RE, building electrolyzers to produce hydrogen from wind and solar offers a clean and low-cost option. With more large-scale wind and solar plants coming online in the next few years, the challenges of balancing power grids are set to increase. But the hydrogen produced from excess renewable energy could in turn provide a source of energy storage that is released when wind and sunlight levels are low. That would address one of the primary concerns about the intermittent nature of solar and wind energy and make the transition to 100% renewable generation a reality.

SOLAR WIND HYBRID SYSTEMS Solar-wind hybrid systems combine two of the fastest-growing renewable energy technologies. Such a concept has emerged due to the complementary nature of solar and wind. Solar, due to its dependence on sunlight can produce power only during the day, probably from 8 am – 6 pm. The Wind, on the other hand, starts blowing during late evenings and reaches its peak during the nights. Due to this inherent nature of wind and solar, power production can be leveled out all throughout the day with a solar-wind hybrid system. This means the reliability of the grid is improved by ensuring peak power requirements are met.

UTILITY-SCALE ENERGY STORAGE The growing share of RE sources, such as solar and wind, calls for a more flexible energy system to ensure that the RE sources are integrated in an efficient and reliable manner. Battery storage systems are emerging as one of the potential solutions to increase system flexibility, due to their unique capability to quickly absorb, hold and then reinject electricity. Batteries have the advantage of geographical and sizing flexibility and can therefore be deployed closer to the location where the additional flexibility is needed and can be easily scaled. Utility-scale battery storage systems have a typical storage capacity ranging from around a few megawatt-hours (MWh) to hundreds of MWh. In recent years, most of the market growth has been seen in utility storage with Li-ion batteries. Utility-scale energy storage is essential for grid balancing and round the clock power.

2022 WILL BE ANOTHER BIG YEAR FOR SOLAR BUSINESS Although 2022 seems promising for solar energy deployment over building new fossil fuel power plants. Thus, Navitas Solar is looking forward to providing our best customer service.

Author Vineet Mittal Director & Co-Founder Navitas Solar

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APRIL 2022

INDIA OFFICIAL LAUNCH OF INDIAN SHAKTI MICROGRID The name ‘Shakti’ means Power. This highlights the fact that there is a need to change the paradigm of the approach to energy production and consumption.

he Indian Shakti Microgrid has been officially launched. Subrata Das, Chief-Operations and Safety and Ganesh Srinivasan, CEO, Tata Power Delhi Distribution Limited were one of the dignitaries present at the launch event of IElectrix-Shakti, a smart grid demonstrator combining solar photovoltaic technology, battery storage, smart transformer and energy management system at St. Xavier’s School, Civil Lines, New Delhi. It looks forward to address the challenges at the Urban Grid and demonstrate the value of an integrated grid with a high level of automation in the low voltage level. The IElectrix-Shakti project is one of the co-funded projects from the EU’s Horizon 2020 research & innovation programme. Horizon 2020, now Horizon Europe, is the biggest & most ambitious programme with a budget of over €95 billion, with a strong focus on European Green Deal.

Subrata Das, Chief-Operations and Safety and Ganesh Srinivasan, CEO, Tata Power Delhi Distribution Limited were one of the dignitaries present at the launch event of IElectrix-Shakti, a smart grid demonstrator combining solar photovoltaic technology, battery storage, smart transformer and energy management system at St. Xavier’s School, Civil Lines, New Delhi. Source: psuconnect

STERLITE POWER WINS SECOND POWER TRANSMISSION PROJECT IN JAMMU & KASHMIR LOI received for Transmission System Project for evacuation of power from Pakaldul Hydro Electric Project (HEP)in Chenab Valley; estimated COD by April 2025 Kishtwar substation will serve as pooling station for multiple HEPs planned in the region & critical for providing ISTS connectivity to these plantsto northern region of India 400kV GIS substation to be implemented in one of the toughest & hilly terrain of Kishtwar

terlite Power, a leading power transmission developer and solutions provider, received the Letter of Intent (LoI) from Power Finance Corporation Consulting Limited to build, own, operate and maintain acritical transmission project in Jammu &Kashmir (J&K) for a period of 35years. The project has been awarded to Sterlite Power through Tariff Based Competitive Bidding Process (TBCB). The project based inJammu & Kashmir comprisea 400/132kV GIS substation at Kishtwar and 400 KV LILO (Line in Line out) of approximately 10 route Kilometers of Kishenpur-Dulhastitrans mission line at Kishtwar substation.

Mr. Pratik Agarwal, Managing Director, Sterlite Power, said, “We are delighted to win the Kishtwar project that will play a significant role in extending access of reliable and clean power to people in Kashmir. This is the second mega project that Sterlite Power would be executing across the challenging terrains. We will leverage our expertise and prior experience to deliver this critical project in a timely manner.”

The transmission system will be used for evacuation of 1000MW of power from Pakaldul Hydro Electric Project to the Kishtwar substation. Theproject has a huge scope for future augmentation with voltage addition at 765Kvand 220Kvlevel along with ICTs and associated bays to connect to the national grid. Further, establishment of common pooling station at Kishtwar by LILO of one circuit of Kishenpur – Dulhasti 400Kv D/c (Quad) line will also provide connectivity to upcoming HEP project sat Kiru (624MW) and Kwar (540 MW) inthe region. This project will play a pivotal role in strengthening the economy and empowering the local community in addition to supplying reliable green power to North India including Jammu and Kashmir. This is the second project by Sterlite Power in Jammu &Kashmir, after NRSS-29 that now delivers over 1,000 MW of electricity from Punjab to the Kashmir Valley. The project has strengthened the National Grid and augmented Jammu &Kashmir’s power transmission capacity by at least 33%. Since its commissioning, this 414 Km long key project, now plays a vital role in addressing the power deficit in the region, especially during winter months when it traditionally suffered blackouts. Source: sterlitepower

APRIL 2022

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INDIA POLICY TO DEVELOP RECYCLING INDUSTRY FOR HAZARDOUS SUBSTANCES IN ELECTRICAL AND ELECTRONIC EQUIPMENT (EEE), AND OTHERS The management of e-waste in the Country is regulated under the E-Waste (Management) Rules, 2016 and amendments thereof. The Rules are effective from 01-10-2016 and have the following specific objectives: Extended Responsibility to producers to manage a system of E-waste collection, storage, transportation and environmentally sound dismantling and recycling through EPR Authorization (EPRA). To promote and encourage establishment of an efficient e-waste collection mechanism. To promote environmentally safe and sound recycling through authorized dismantlers and recyclers of e-waste. To minimize illegal recycling / recovery operations. Reduce hazardous substances in Electrical and Electronic Equipment (EEE).

nder the aforesaid rules, provisions have been made for dismantling and recycling of e-waste. The dismantlers and recyclers have to obtain authorization from concern State Pollution Control Boards (SPCBs)/ Pollution Control Committees (PCCs). The concerned SPCB/PCC grants authorization after ensuring that the dismantlers and recyclers have the dismantling and recycling facilities as per the guidelines of Central Pollution Control Board (CPCB). Presently four hundred and sixty-eight (468) numbers dismantlers/recyclers of E-Waste are operating in twenty-two (22) States namely Andhra Pradesh, Assam, Chhattisgarh, Delhi, Gujarat, Goa, Haryana, Himachal Pradesh, Jammu & Kashmir, Jharkhand, Kerala, Karnataka, Madhya Pradesh, Maharashtra, Odisha, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, Uttarakhand and West Bengal. These authorised dismantlers/recyclers have annual processing capacity of 13,85,932.22 tonnes.

Principle of Extended Producer Responsibility (EPR) has been implemented for management of e-waste in the country. Under EPR, Producers have to collect targeted quantity of e-waste for environmentally sound dismantling and recycling only through an authorised dismantlers and recyclers. The authorized dismantler and recyclers are required to carry out dismantling and recycling of e-waste in an environmentally sound manner as per the guidelines published by CPCB.In a dismantling and recycling facilities, the number of employees depends on its processing capacity. As per the information provided by Ministry of Electronics and Information Technology (MeitY), being the nodal ministry for electronics and IT, MeitY has amended the existing Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) to provide support for setting up of state-of-art e-waste recycling facilities for extraction of precious metals from e-waste components. The scheme envisioned for financial incentive of 25% on capital expenditure. The salient feature of the scheme inter-alia is as under: The scheme will provide financial incentive of 25% on capital expenditure for the identified list of electronic goods that comprise downstream value chain of electronic products, i.e., electronic components, semiconductor/ display fabrication units, Assembly, Testing, Marking and Packaging (ATMP) units, specialized sub-assemblies and capital goods for manufacture of aforesaid goods, all of which involve high value added manufacturing. The Scheme will be applicable to investments in new units and expansion of capacity/ modernization and diversification of existing units. Application under the Scheme can be made by any entity registered in India.

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The capital expenditure will be total of expenditure in plant, machinery, equipment, associated utilities and technology, including for Research & Development (R&D). The Scheme is open for applications initially for 3 years from the date of its notification. Incentives under the Scheme will be applicable from the date of acknowledgment of the application. The incentives will be available for investment made within 5 years from the date of acknowledgement of application. The Scheme will be implemented through a nodal agency which will act as Project Management Agency (PMA) and be responsible for providing secretarial, managerial and implementation support and carrying out other responsibilities as assigned by MeitY from time to time. This information was given by the Minister of State for Environment, Forest and Climate Change, Shri Ashwini Kumar Choubey in a written reply in Rajya Sabha

APRIL 2022

INDIA ENVIRONMENTAL CLEARANCE TO TAPOVAN-VISHNUGAD HYDROELECTRIC POWER PROJECT Tapovan-Vishnugad Hydroelectric Power Project(4×130 MW),an under construction Project on Dhauliganga River in District Chamoli Uttarakhand, was granted Environment Clearance (EC) by the MoEF&CC on 8th February, 2005 under the provisions of EIA Notification, 1994,stipulating suitable standard and project specific environmental safeguard conditions regarding ecological flow, catchment area treatment, monitoring of implementation of the suggested safeguard measures by the Multi-disciplinary Committee, so as to minimize the environmental impacts of the project on the natural environment.

he project was hit by an exceptional massive glacial debris flow on 7th February, 2021. According to a study conducted by the Geological Survey of India (GSI) in May, 2021 sudden change in hydro-meteorological conditions (heavy snowfall followed by sudden warmer climate) possibly triggered the huge snow and rock avalanche/ landslide, resulting flash flood in the downstream.

According to M/s NTPC Ltd. i.e., Project Proponent, after the incident on 07.02.2021 a team of experts comprising of design experts from Central Water Commission (CWC) along with experts from Central Electricity Authority (CEA), Geological Survey of India (GSI) and Central Soil and Materials Research Station (CSMRS), New Delhi visited the Tapovan-Vishnugad Hydropower Project site to assess the project condition and inter-alia recommended for thorough inspection and examination of 1) Structural competency, 2) Horizontal as well as vertical alignment, 3) Any deformations and/ or cracks etc.; accordingly, Structural Engineering Research Centre (SERC), Chennai conducted a test for structural integrity of barrage structures. After testing, structures are found integral and repairable. Manual Early Warning System is already in place and round the clock monitoring is being done. Automatic flood warning system is also under implementation at 6 locations.

This information was given by the Minister of State for Environment, Forest and Climate Change, Shri Ashwini Kumar Choubey in a written reply in Rajya Sabha.

SJVN INCORPORATES A NEW SUBSIDIARY COMPANY, ‘SJVN GREEN ENERGY LIMITED’ FOR EXECUTING RENEWABLE PROJECTS SGEL has been incorporated in compliance with the directions of Ministry of New & Renewable Energy (MNRE) and approvals of Ministry of Corporate Affairs, Government of India.

h. Nand Lal Sharma, Chairman & Managing Director, SJVN informed that in its pursuit to enliven the vision of rapid capacity additions through new and renewable energy sources, SJVN has incorporated a fully owned Subsidiary Company ‘SJVN Green Energy Limited’ (SGEL). Sh. Nand Lal Sharma stated that the Subsidiary Company shall work in the verticals of Power Generation from Renewable Sources such as Solar Parks, Wind & Hybrid Projects, Battery Energy Storage System, Assets Creation in Wave, Biomass, Small Hydro (being RE) and Green Hydrogen based business ventures.

Sh. Nand Lal Sharma said “Incorporated with an authorized and paid up capital of Rs 50 crores, SGEL shall work as a Special Purpose Vehicle of SJVN for the implementation of Renewable Projects countrywide. The incorporation of SGEL accentuates our commitment to contribute in actualizing Government of India’s target of 500 GW capacity additions from non-fossil fuel resources by 2030.” SGEL has been incorporated in compliance with the directions of Ministry of New & Renewable Energy (MNRE) and approvals of Ministry of Corporate Affairs, Government of India.

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The subsidiary company shall have its registered office at Shimla, Himachal Pradesh. This is another major milestone for SJVN after successfully operating two other subsidiary companies namely SJVN Arun -3 Power Development Company Pvt. Ltd (SAPDC) for implementation of 900 MW Arun-3 Project and associated Transmission System in Nepal; and SJVN Thermal Private Limited (STPL), for execution of 1320 MW Buxar Thermal Power Project in Bihar. In the backdrop of Prime Minister Sh. Narendra Modi’s commitment to meet 50 percent of India’s energy requirements from renewable energy by 2030, Government of India is already focusing on the development of renewable sources in the country. Under the dynamic leadership of Prime Minister Sh. Narendra Modi and guidance of Union Power Minister Sh. R. K Singh, SJVN is adding significant capacities to its portfolio to pursue this vision. At present, SJVN has a portfolio of more than 16900 MW with presence in nine states of India besides two neighboring countries namely Nepal & Bhutan. Besides generating power through hydro, thermal, wind and solar, SJVN has also diversified & ventured into Power Transmission and Power Trading. The Subsidiary Company SGEL will commence its business operations shortly and will contribute to faster capacity addition of SJVN. This green energy portfolio augmentation will further help in achieving SJVN’s New Shared Vision of 5000 MW by 2023, 25000 MW by 2030 & 50000 MW by 2040. Source: psuconnect

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INDIA TATA POWER COMMISSIONS SOLAR PLANT, INDIA’S LARGEST SINGLE-AXIS TRACKER SYSTEM The project will generate 774 MUs annually. Along with this, it will reduce approximately 704340 MT/year of carbon emission. The installation entails 873012 numbers of Monocrystalline PV Modules.

ata Power arm Tata Power Renewables has commissioned a 300 MW solar plant in Dholera, Gujarat with the country’s largest single-axis solar tracker system. It is India’s largest single-axis solar tracker system. The project will generate 774 MUs annually. Along with this, it will reduce approximately 704340 MT/year of carbon emission. The installation entails 873012 numbers of Monocrystalline PV Modules.

“The project was commissioned well within the stipulated timeline. Despite the various COVID-19 challenges faced by the industry, TPREL through Tata Power’s EPC arm Tata Power Solar Systems Limited has successfully completed the project within the project timelines due to its excellent project execution capabilities and experience,” the company said in a statement. Tata Power managed customized installation, basis the geographical locations and land conditions. The total area used for the installation is 1320 Acre divided into six different plots of 220 acres each. The weather conditions at the site during the construction period were unpredictable due to very heavy rains leading to the 33 KV cable trench being submerged in water. However, with the help of floaters, the execution team laid HT Cables at the location. Pre-cast ballasts were also used to lay power cables 500 mm above the ground instead of conventional underground laying. Despite the challenges like weather, machinery, and manpower movement, the project was commissioned successfully.

Speaking about the commissioning of the project, Dr. Praveer Sinha, CEO & Managing Director, Tata Power, said “Commissioning of India’s largest single-axis solar tracker system of 300 MW Solar plant at Dholera in Gujarat within the set timelines is a proud moment for Tata Power. Our technical expertise and project execution skills will further solidify our position in the solar EPC space and help India lead the way in renewable energy growth.”

With the addition of 300 MW, the renewables capacity in operation for Tata Power will now be 3,400 MW with 2,468 MW of Solar and 932 MW of Wind. Tata Power’s total Renewable capacity is 5,020 MW including 1,620 MW of Renewable projects under various stages of implementation.It is India’s largest single-axis solar tracker system. The project will generate 774 MUs annually. Along with this, it will reduce approximately 704340 MT/ year of carbon emission. The installation entails 873012 nos. of Monocrystalline PV Modules. The project was commissioned well within the stipulated timeline. Despite the various COVID-19 challenges faced by the industry, TPREL through Tata Power’s EPC arm Tata Power Solar Systems Limited has successfully completed the project within the project timelines due to its excellent project execution capabilities and experience. Tata Power managed customized installation, basis the geographical locations and land conditions. The total area used for the installation is 1320 Acre divided into six different plots of 220 acres each. Source: PTI

DELHI GOVT REVISITS SOLAR POWER PLAN AS PREVIOUS TARGETS FALL BEHIND Despite substantial subsidies and other incentives by the Delhi government, solar power installations at homes have failed to generate much interest among home owners, with the city only managing to add 220 mega watts (MW) of power through this medium, less than 1/10th the target of generating 2,762MW by the end of this year.

T lations.

he solar power generated through rooftop installations stood at 184MW last February. With the heat arriving early this year, discoms expect Delhi’s peak power demand to cross 8,000MW for the very first time this summer, putting a substantial load on the city’s existing power infrastructure. Discoms said there is enough awareness about solar rooftops but blamed Covid-19 for the slowdown in instal-

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“The pandemic has had an impact on rooftop installations in Delhi. Over the past two years, many group housing societies were reluctant to let solar vendors enter their societies or areas. With infections receding, interest is picking up again,” said a discom official who asked not to be named. Experts, however, attributed the lack of interest among the public to the lengthy installation and commissioning process for solar rooftops. Source: PTI

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INDIA GOVERNMENT INITIATIVES TO ENSURE 24×7 POWER SUPPLY

The primary responsibility of providing 24×7 power supply to all consumers lies with the concerned Power Distribution Companies (DISCOMs). overnment of India, Ministry of Power had taken up a joint initiative during 2014 to 2017 with all States/UTs and prepared State/UT specific action plan documents for providing 24×7 power supply to all households, industrial & commercial consumers, and adequate supply of power to agricultural consumers as per State policy.

This initiative was aimed at ensuring uninterrupted supply of quality power to existing consumers and providing access to electricity to all unconnected consumers by 2019 in a phased manner. Government of India has been helping the States through its various schemes including Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) and Integrated Power Development Scheme (IPDS) to achieve the objective of providing

uninterrupted power supply to all households. Under the recently launched Revamped Distribution Sector Scheme (RDSS), the State Power Distribution Utilities are financially supported to strengthen Distribution infrastructure and the fund releases under the scheme are linked to initiation of reforms and achievement of results that also includes trajectories for improving electricity supply hours to urban and rural consumers.

This information was given by Shri R.K Singh, Union Minister for Power and New and Renewable Energy in a written reply in Rajya Sabha.

SEMICONDUCTOR MANUFACTURING ATTRACTS INTEREST FROM GLOBAL COMPANIES AS GOOD NUMBER OF APPLICATIONS RECEIVED UNDER THE PROGRAMME: ASHWINI VAISHNAW Semicon India Program Aims to provide attractive incentive support to Companies / Consortia Engaged in Silicon Semiconductor Fabs, Display Fabs, Compound Semiconductors and Semiconductor Design.

eeting of Parliamentary Consultative Committee attached to Ministry of Electronics & IT held. Shri Ashwini Vaishnaw, Union Minister for Electronics & Information Technology, Communications and Railways informed that the government had approved the Semicon India Program (Program for Development of Semiconductors and Display Manufacturing Ecosystem in India), with an outlay of INR 760 billion for the development of a sustainable semiconductor and display manufacturing ecosystem in India on December 15, 2021. “Semiconductor manufacturing, which is crucial to meet the strategic needs of the country, has attracted interest from global companies as good number of applications have been received under the programme” , he further informed. Shri Vaishnaw was addressing members of the Parliamentary Consultative Committee attached to the Ministry of Electronics & Information Technology (MeitY) which was held here last evening. The Minister of State in the Ministry of Electronics & Information Technology and Ministry of Skill Development and Entrepreneurship Shri Rajeev Chandrasekhar and Minister of State in the Ministry of Communications Shri Devusinh Chauhan were also present in the meeting. The MPs present in the meeting included Smt Preneet Kaur, Lok Sabha, Shri Radha Mohan Singh, Lok Sabha and Shri K.R. Suresh Reddy, Rajya Sabha. The subject of the meeting was ‘Semiconductor Policy and Ecosystem’. Shri Ashwini Vaishnaw apprised the participants that Several state governments like Gujarat, Madhya Pradesh, Karnataka, Odisha, Telangana, Andhra Pradesh and Tamil Nadu are in talks with the companies to set up Semiconductor manufacturing plants/fab complexes.

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A presentation was given by Ministry of Electronics and Information Technology to inform the Hon’ble MPs regarding potential of growth of Electronics Sector in general and Semiconductor sector in specific in India. Emerging market and large export potential of the Compound Semiconductors was also focused upon. MPs were informed about the measures being undertaken by the Ministry of Electronics and Information technology to promote the Electronics Manufacturing in India and to support the Semiconductor and Display Ecosystem and allied sectors in the country. The Semicon India Program aims to provide attractive incentive support to companies / consortia that are engaged in Silicon Semiconductor Fabs, Display Fabs, Compound Semiconductors / Silicon Photonics / Sensors (including MEMS) Fabs, Semiconductor Packaging (ATMP / OSAT) and Semiconductor Design. Following four schemes have been introduced under the aforesaid programme: Scheme for setting up of Semiconductor Fabs in India provides fiscal support to eligible applicants for setting up of Semiconductor Fabs which is aimed at attracting large investments for setting up semiconductor wafer fabrication facilities in the country. Following fiscal support has been approved under the scheme:

28nm or Lower – Up to 50% of the Project Cost

Above 28 nm to 45nm – Up to 40% of the Project Cost Above 45 nm to 65nm – Up to 30% of the Project Cost

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Scheme for setting up of Display Fabs in India provides fiscal support to eligible applicants for setting up of Display Fabs which is aimed at attracting large investments for setting up TFT LCD / AMOLED based display fabrication facilities in the country. The Scheme provides fiscal support of up to 50% of Project Cost subject to a ceiling of INR 12,000 crore per Fab. Scheme for setting up of Compound Semiconductors / Silicon Photonics / Sensors Fab and Semiconductor Assembly, Testing, Marking and Packaging (ATMP) / OSAT facilities in India: The Scheme provides a fiscal support of 30% of the Capital Expenditure to the eligible applicants for setting up of Compound Semiconductors / Silicon Photonics (SiPh) / Sensors (including MEMS) Fab and Semiconductor ATMP / OSAT facilities in India. Design Linked Incentive (DLI) Scheme offers financial incentives, design infrastructure support across various stages of development and deployment of semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & IP Cores and semiconductor linked design. The scheme provides “Product Design Linked Incentive” of up to 50% of the eligible expenditure subject to a ceiling of ₹15 Crore per application and “Deployment Linked Incentive” of 6% to 4% of net sales turnover over 5 years subject to a ceiling of ₹30 Crore per application. In addition to the above schemes, Government has also approved modernisation of Semi-Conductor Laboratory, Mohali as a brownfield Fab. India Semiconductor Mission: India Semiconductor Mission (ISM) has been setup as an Independent Business Division within Digital India Corporation having administrative and financial autonomy to formulate and drive India’s long term strategies for developing semiconductors and display manufacturing facilities and semiconductor design ecosystem. Envisioned to be led by global experts in the Semiconductor and Display industry, ISM will serve as the nodal agency for efficient, coherent and smooth implementation of the schemes.

Hon’ble Members of Parliament made several suggestions with regard to various initiatives and schemes in the Ministry of Electronics & Information Technology and Telecommunications sector. The members gave suggestions and highlighted issues related of electronic waste management, capacity building, role of Indian Companies in electronics manufacturing and India Semiconductor Mission. The matters related to Telecommunications sector, and launch of 5G services etc. were also discussed. Union Minister Shri Ashwini Vaishnaw along with the two Ministers of States Shri Rajeev Chandrashekhar and Shri Devusinh Chauhan addressed the queries of members and thanked them for their valuable suggestions.

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NTPC, GUJARAT GAS INK PACT FOR BLENDING GREEN HYDROGEN WITH PIPED GAS State-run power giant NTPC has inked a pact with Gujarat Gas Ltd for an initiative to blend green hydrogen with the piped natural gas (PNG) supplied by the latter.

reen hydrogen will be produced by using electricity from the existing 1 MW floating solar project of NTPC Kawas. This will be blended with PNG in a pre-determined proportion and will be used for cooking applications in NTPC Kawas Township, a company statement said. This first-ofits-kind project in the country is a step towards the decarbonisation of the cooking sector and self-sufficiency for energy requirements of the nation, it added.

“With the continued focus on clean environment, NTPC has taken up an initiative of blending of green hydrogen in Piped Natural Gas (PNG) network of GGL (Gujarat Gas Ltd) at NTPC Kawas,” it said. The formal agreement between the two companies was signed in the presence of Mohit Bhargava, CEO, NTPC REL and ED RE, NTPC, and Sanjeev Kumar, MD, GGL and GSPL. Initially the percentage of hydrogen blending in the PNG shall be around 5 per cent and after successful completion it shall be further increased, the statement added. NTPC is the premier energy utility of the country with an installed capacity of 69 GW, with a diversified fuel mix. The NTPC group plans to achieve 60 GW of renewable energy (RE) in a decade and is executing several pilot projects in the green hydrogen space. GGL is India’s largest city gas distribution (CGD) company and has presence across 43 districts in six states and one union territory. Source: PTI

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INDIA “INDIA HAS EMERGED AS ONE OF THE WORLD LEADERS IN ENERGY TRANSITION WHICH IS EVIDENT IN THE GROWTH THAT WE HAVE ACHIEVED IN THE AREA OF RENEWABLE ENERGY”: SHRI R.K SINGH Union Minister for Power and MNRE Shri R.K Singh chaired the “India Energy Spotlight” session held at the Clean Energy Ministerial (CEM) – Mission Innovation (MI) Senior officials meeting being held in New Delhi.

n his keynote address, Shri R.K Singh said that in the present scenario, our major concerns are climate change and environmental degradation and the only way to cater such issues is energy transition. We have been walking on the path of energy transition and have managed to bring our country from power deficit to power surplus. Shri Singh emphasized that as our Hon’ble Prime Minister says, India has emerged as one of the world leaders in Energy Transition and this is evident in the growth that we have achieved in the area of Renewable Energy. The Minister informed that we have managed to bring down Emission Intensity to a great extent. For achieving the goal of Energy Efficiency we have taken many initiatives like Energy Conservation Building Code (ECBC) and Eco Niwas Samhita (ENS) for Commercial and Residential Buildings. With such steps we are way beyond the trajectories which we promised to achieve in these years, he added. The event commenced with a welcome address by Additional Secretary, Ministry of Power, followed by an address by Additional Secretary & India G20 Sous Sherpa, Ministry of External Affairs. While addressing the meeting, Secretary, Ministry of Power gave an overview of the achievements and goals for India’s clean energy transition.

The event was attended by more than 300 delegates from 29 countries. The Minister also interacted with the delegates on clean and renewable energy sector, India’s roadmap to reduce carbon emission intensity, off shore wind and battery storage.

TO AVOID LOAD-SHEDDING, MSEDCL TO PURCHASE POWER FROM PVT PLAYER With load-shedding looming large over the state due to coal shortage, the Maharashtra government decided to purchase 760MW power from Coastal Gujarat Power Limited (CGPL). The purchase would be made till June 15 through a short-term power purchase agreement. The cabinet led by chief minister Uddhav Thackeray had given its nod to the power department led by minister Nitin Raut.

Even if there’s a power shortage in the state, we will not allow load-shedding under any circumstances by purchasing power. The Maharashtra State Electricity Distribution Company Limited (MSEDCL) is allowed to procure electricity for a short period till June 15, 2022, until its generation and availability in the state is restored, Raut told the media after the cabinet meeting.

he guardian minister said power demand has shot up due to the intense heat wave in the state. “Coal stocks are also depleting, and railway racks are not available many times. We have to store coal reserves for the monsoon. With the removal of all Covid restrictions, all industries and commercial establishments are operating at full capacity. Farmers’ demand has also surged due to the sweltering heat. As a result, the demand is constantly increasing and has reached 28,700 MW.” Justifying the

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decision to purchase power, the North Nagpur MLA added that instead of buying electricity at Rs 12/unit in the open market, the government has decided to overcome the shortage by purchasing CGPL power at half the rate. “The purchase will be done for the next two and a half months at a cost of Rs 100-150 crore to MSEDCL. This will not put any burden on the exchequer. The government entered into a long-term power purchase agreement with CGPL in 2007. The same company has entered into power supply agreements with Gujarat, Rajasthan, Haryana and Punjab. The power plant generates electricity via coal imported from Indonesia.” The minister added that MSEDCL distributes 87% of the total electricity consumption in the state. “Due to summer, the highest demand has reached 28,489MW. This is an increase of 8.2% over the previous year. At present, there is a shortage of 3,500MW-4,000MW in the state,” he said, adding, the decision of the Indonesian government led to a huge surge in the price of imported coal. Source: PTI

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INDIA EXPANSION OF WINDMILLS IN KACHCHH IMPACT UNIQUE THORN FOREST AND WILDLIFE Sangnara, a village in Gujarat’s Kachchh district, puts up a solitary fight to save their forest against wind farms that have mushroomed all over the region in the last 15 years. The village’s resistance has brought to light the unplanned and linear approach of the state government in pursuing renewable energy projects. It is not just windmills, note experts, but the ancillary infrastructure that comes with it that is impacting wildlife in the area, especially peacock, the national bird.

hana Rana Rabari picked up a wooden staff as he entered the forest. He would require it to balance while crossing the undulating terrain and thorny vegetation in the jungle. “This is khair (Capparis decidua). Its gum is eaten for strengthening bones. It sells for 400 rupees per kilogram,” he says, plucking a golden globule from the bark of a tree. He goes on to point Guggal (Commiphora wightii), Bor (Zizyphus mauritiana) and Khakra (Bombax Ceiba) trees, used as raisin, fruit and for Ayurvedic medicine. Then Rabari, who is in his 50s, leads us to a porcupine hole and a banyan grove where peacocks roost. The quiet of the banyan grove is only broken by the consistent whirring of a windmill overheard.

Chana Bhai’s livelihood as a Maldhari (pastoralist) has made him an amateur botanist who knows the qualities of each grass, shrub and tree in this forest in Gujarat’s Kachchh district. According to the Forest Survey of India (FSI), this is one of the last remaining tropical thorn forests in the country. Sangnara, his village in the district’s Nakhatrana block, is waging a lone battle to save the forest and its flagship species, the peacock, from a ‘green’ energy industry – the windmills. “There is only ‘meetha jhad’ (useful trees) here. But the government says it’s all Gando Bawal (Prosopis Juliflora) and giving it away to companies to install windmills,” Lakshmi Patel, a resident of Sangnara, had tears in her eyes while sharing the story of the forest with Mongabay-India. Even as the Gujarat government is promoting renewable energy to tackle climate change, people and the environment in Kachchh’s sensitive landscape are being left behind in the wind energy industry’s businessas-usual approach. Kachchh, with an area of 45,674 square kilometres, is the largest district in India. It has three different ecologies – coastal area, hilly ridge and desert. The state has 1,600 kms of coastline, the longest in India. According to an assessment by the National Institute of Wind Energy (NIWE), Gujarat has the maximum wind energy potential in India with a capacity to produce 22.75 percent of the country’s wind energy. As of February 2022, out of the total national installed wind capacity of 40,129 megawatts (MW), Gujarat has an installed capacity of 8,900 MW, and is second only to Tamil Nadu. The Solar Energy Corporation of India, which oversees the implementation of renewable energy projects in the country, has wind energy projects worth 6,095 MW in Kachchh district alone. The initial windmills in Kachchh came along the coastal areas from Surajbari to Mandvi but are expanding inland now and the reason for that is soil bearing capacity (SBC). The hard rock strata of Kachchh’s hilly ridge mean a higher SBC. Good SBC reduces the foundation cost and also the maintenance cost that is high in coastal areas due to saline winds. “People welcomed the windmills initially but slowly realised the impact on local ecology, water sources and interpersonal relations in the village,” said Shankarlal Patel, the Sarpanch (village head) of Sangnara. In 2019, Sangnara went to the National Green Tribunal (NGT) demanding that all the windmill projects planned within the village boundary be scraped.

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HOW WINDMILLS TRICKLED IN SANGNARA With a population of about 1,400, Sangnara depends mainly on agriculture and pastoralism for livelihood besides selling forest produce like gum and guggal pods. The official pastureland (gauchar) of the village is about 486 acres (197 hectares) that seamlessly merges into the thorn forest of about 800 hectares. According to a report by the Principal Chief Conservator of Forests of Gujarat (PCCF), the forest has 28 plant species and seven animal species including chinkara, Desert Cat, hyena, fox, nilgai, spiny-tailed lizard and Desert Monitor. But due to a historical mistake, this forest is designated as ‘wasteland’ in the state’s revenue records. In 1996, as part of the T.N. Godavarman Thirumulpad case, the Supreme Court directed states to determine parameters for identifying forests according to the dictionary meaning, irrespective of who owned the area and declare them deemed forests. The Gujarat Government could not, however, complete the exercise. “No such area was identified back then in Kachchh possibly because the forest wasn’t dense enough,” Tushar Patel, Deputy Conservator of Forests (DCF), Kachchh West division, under whom Nakhatrana falls, told MongabayIndia. Had it been declared a deemed forest, any activity would have been allowed only after permission from the central government for diversion of land for non-forest purposes and payment of net present value, says the NGT petition. In 2015, Suzlon was the first company to get approval for installing 11 windmills in Sangnara. They installed seven mills by 2017 and laid the foundation for one. Each mill is allotted one hectare of land along with the right of way for transporting mill machinery and transmission lines. “Initially, it was alright. But then, we saw the reckless tree cutting and flattening of hillocks, not just for the mill but also for transportation and transmission lines,” said Shankarlal Patel. “The company did not even insulate the wires as required of them in the permission letter given by the collector and that is where peacocks are getting electrocuted now,” he said. The villagers were in for more shocks. By 2019, a total of 29 more mills by three companies including Adani, Torrent Power and Green Infra were approved in Sangnara. Of this, 10 under Torrent Power and seven under Adani Green Energy Ltd have not yet begun work but Green Infra, who was allotted 12 mills, began foundation work on four of them. “They chopped more than 500 trees without informing anybody despite the district collector’s order requiring them to seek permission before felling any tree,” said Shankarlal Patel. The villagers complained to

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INDIA the mamlatdar (Block revenue officer) and the company was subsequently asked to pay a fine of Rs. 304,950. The PCCF report says more than 20,000 trees would need to be cut from Sangnara’s forest if the rest of the mills come up as planned. The one windmill of Suzlon whose foundation had been laid was left unfinished. “They made this foundation in 2016 but did not come back for two years. Meanwhile, we found that this point is inside our gauchar as per the map prepared in 1984. In 2018, the company came back saying that as per the new map, the point is outside the gauchar. Since then, the village has not allowed any machinery inside,” Ambalal Patel, a resident of Sangnara, told Mongabay-India. “The process is called promulgation as per which new technology was used to draw the map. This resulted in slight variation in the boundary. As per the new revenue map, the windmill point is not inside the gauchar,” Mehul Barasara, deputy collector, Nakhatrana, told Mongabay-India. Ambalal Patel, however, counters that how could promulgation happen only for Sangnara when it has not happened for nearby villages.

SANGNARA DEPENDS MAINLY ON AGRICULTURE AND PASTORALISM A common sight on the highway from Bhuj to Nakhatrana- a distance of 50 kilometres – is pomegranate trees in the forefront and windmills in the background. Unlike the rest of Kachchh, which depends on the Narmada river canals for water supply, Nakhatrana has better groundwater reserves and thus, flourishing horticulture. The farmers grow crops like pomegranate, mango, muskmelon and groundnut besides cotton and castor. “Both pomegranate and mango require honey bee for pollination in the flowering season. In the last five years, honey bee population has gone down drastically. People are having to rent bee boxes at the rate of Rs. 2,500 a month. Earlier, the bees came from the forest. The noise from the mills and the reduced jungle has forced them to go away,” Dhaval Patel, a farmer, told Mongabay-India. The village has a tradition of spreading grains for birds near a temple inside the gauchar. “Birds like sparrows, egrets, a variety of parrots and peafowls have a good population here,” said Jayanti Patel, a farmer. But the constant whirring from windmills is driving away birds, he said. “Even cattle get scared of the noise. Cases of animals dying due to electric shock during the monsoon have gone up,” Maghi Ben, another Maldhari, shared with Mongabay-India. Noise pollution from the windmills is a problem for humans as well. Ghodjiper, the Maldhari locality of Sangnara, has a windmill on either side of the road. Children in a primary school next to one of the mills complained of constant buzzing sound in the ear, a symptom of tinnitus. “The noise is especially disturbing during the quiet of the night and in winters. Also, the shadow of the rotating mill falls in houses on full moon nights, causing headache and irritability due to disturbed sleep,” Hansa Rabari, a resident of Ghodjiper, complained to Mongabay-India while pointing to the windmill. In August 2021, Sangnara village, along with several non-governmental organisations in Kachchh, held a protest at Suzlon’s unfinished windmill. Green Infra and Suzlon have since decided to give up construction on their remaining sites. “We haven’t yet heard anything from Adani and Torrent on their 17 points though,” shared Shankarlal Patel. In August 2021, Green Infra initiated work for a 2.5 km long transmission line that would cross Sangnara. “We told them that they could take it underground or at least insulate it but they refused to do so,” said Shankarlal Patel while emphasising that their village stands united against the mills.

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Peacocks electrocuted due to transmission wires Peacock deaths due to electrocution from the windmills’ transmission lines have made headlines in Kachchh in the last three years. In the last five months in Sangnara, the post-mortem of four peacocks has confirmed death due to electrocution. “We don’t even know how many are dying because jackals or dogs eat away the bodies. Only when a Maldhari in the forest sees one and calls the Sarpanch that we get to know about it,” Kaiyan Rabari from Sangnara complained to Mongabay-India. “The presence of peacock is a sign of a forest’s good health. It is the top species of the thorn forest ecosystem. By preying on caterpillars and pests, peacocks also support agriculture. If there are no peacocks, pesticide use in the fields is bound to go up,” Navin Bapat, a naturalist from Bhuj, Kachchh’s district capital, told Mongabay-India. About 15 kilometres from Sangnara is Roha village which made news two years ago when 50 peacocks died of electrocution in a short period of time. The district administration declared the area within a two-kilometre radius of the village as ‘protected’. A transmission line of two km length was put underground and nets put on poles where the birds perch. “When peacock deaths continued despite this, they insulated the wires for a further two kilometres,” said Pushpendra Sinh Jadeja, resident of Roha village. Peacock is a social animal and stays near the villages, also because there is food available there, said DCF Tushar Patel. “80 percent of the peacock deaths happen within the two-km radius of the village. The incidences of electrocution have gone up in the last 3-4 years only because transmission lines have increased in this period. In my opinion, wires should not be allowed in this zone,” he said. Tushar Patel is also trying to study the impact of windmills on the breeding pattern of birds like owls whose sound frequency does not match that of the windmill noise. When the companies seek permission to install windmills from the collector, an opinion from the forest department is sought as part of the procedure. “Even if the area is not under the forest department, we tell them to install bird guards, spikes, reflectors and even insulate wires in case needed. We even tell them that there should be a gap of at least 2.5 metres between two cables so that even if birds sit on it, no earthing happens. But the final implementation of these conditions rests with the collector,” Patel told Mongabay India. Peacock being a Schedule-I bird (endangered species) under the Wildlife Protection Act, 1972, the forest department has also booked cases of negligence against companies. However, almost all the cases are pending. The forest department has asked the wind energy companies to underground or insulate wires and poles in cases like Roha but it is an expensive and technically challenging task, said an engineer of Suzlon on condition of anonymity. The wires are usually insulated with plastic sleeves that cost Rs. 600-700 per metre, which means about Rs. 600,000 per kilometre. “A substation is usually 15-20 kms away and then there are at least three wires per mill. Depending on the ground situation, the cost can be in crores. Putting them underground has its own cost of digging and maintenance. During monsoon, that can be dangerous too,” he said.

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INDIA “If one goes to Nirona (another village in Nakhatrana), he would only see wires in the sky instead of stars. Each company has a separate line,” Surendra Sinh Jadeja, an environmental activist in Bhuj, told Mongabay-India. Even if the site of the windmill is revenue wasteland, the transmission lines cross over the gauchar, farmland, forest and even residential areas. Thanks to the wires, selling land has also become a problem. “With wires passing overhead, land rates have come down. Also, if we want to change the land use of our agricultural parcel, we will have to take permission from the company because of these wires,” said Rauji Patel, another resident.

THE THORN FOREST Tropical thorn forest falls in Eco-class IV of the six ecological classes as per a 2008 report by Kanchan Chopra submitted to the SC in the T.N. Godavarman Thirumulpad case. “Kachchh has the largest thorn forest in the country, only if they let it be. The native species that have survived here for thousands of years are not even being seen by the Government while giving it away for projects. Once flattened, no amount of CSR (Corporate Social Responsibility) can bring this forest back,” Pankaj Joshi, a researcher working on the restoration of natural ecosystems, told Mongabay India.

“Clearing the thorn forest poses a challenge to the water table underneath these hills,” said Siddhartha Dabi, a researcher at the University of Exeter who is working on the ecological and social impacts of wind energy in Kachchh. “We are looking at marginalised ecology here, not a typical forest like the Western Ghats. It does not get the visibility it deserves due to its dry grass, rocks and thorny trees. But this is the native ecology of this region, even though it does not have the so-called timber value,” he said. About 80 percent of the land in Kachchh is under the revenue department. According to Dabi, livestock in Kachchh is thrice that of the human population. “We should look at land use from this perspective. It is not a wasteland just because it is defined so. Boundaries between a gauchar and wasteland are fluid as ecology is the same. The gauchar in Nakhatrana is much less in proportion to the number of animals so people depend on this land,” he said. Transporting a windmill blade of 70 metres requires a clear path of 100 metres on a circular path and at least 15 metres on a straight road, said DCF Patel. “The makeshift roads that are built till the windmill point end up clearing native grasses, leading to the change in cattle’s movement and also unnatural drainage since they have been levelled. The truck tyres bring in new seeds thus changing the environment for the grass to grow back. These may seem small issues but a Maldhari understands the impact,” said Dabi. Source: mongabay

AMITABH KANT ON HOW INDIA CAN POSITION ITSELF AS A LOW-COST, ZERO-CARBON GREEN HYDROGEN MANUFACTURING HUB While rapid electrification of the economy is going to be an important step towards decarbonizing energy systems and enhancing efficiency levels, electricity cannot address certain carbon-intensive sectors which have to be decarbonized to ensure net-zero emissions.

ydrogen, as an energy carrier, is crucial for achieving decarbonization of hard-to-abate sectors. Many sectors such as iron ore and steel, fertilizers, refining, methanol and maritime shipping emit major amounts of CO2, and carbon-free hydrogen will play a critical role in enabling deep decarbonization. India is one of the early movers in the green hydrogen space. There are multiple reasons why India is pursuing this with vigour and conviction. Firstly, neither hydrogen nor electrolyser is a new technology. More than 70 million tons of hydrogen is produced annually across the world, with India clocking around 8% of global production.

Secondly, India’s distinct advantage in low-cost renewable-energy generation and world-class clean-power execution capabilities makes green hydrogen the most competitive form of hydrogen in the medium run. This enables India to be potentially one of the most competitive producers of green hydrogen in the world. Since 75% of the cost of green hydrogen is dependent on renewable energy, we should target to further bring down the cost of solar power to Rs 1 per Kw/h through lower cost of financing. Energy security is the third important reason to pursue green hydrogen as it will enable the emergence of a domestically produced energy carrier that can reduce the dependence on fossil fuel imports of $160 bn per year. In addition, with 500 GW renewables expected to come on line by 2030, green hydrogen could act as a solution to extract value out of excess renewable power and avoid the duck curve possibilities in the grid. Key policy measures for creating a green hydrogen ecosystem have recently been announced. Following are the three steps that will make India a leader in green hydrogen. Firstly, India should make urgent efforts to secure the time-limited export markets. The EU is quadrupling its green hydrogen import plans for 2030. There is huge potential for exports to EU, Japan and South Korea. Secondly, India should encourage industrial R&D in electrolysers and other green hydrogen components. Indian companies cannot be dependent on foreign technology suppliers.

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We need to industrialize next-generation hydrogen technologies in India Thirdly, industrial applications such as refining and non-urea fertilizers have to be mandated to go 100% green hydrogen by 2030 to ensure economies of scale for this nascent industry to flourish. With these measures, the price of green hydrogen should fall from $4 per kg to $1 per kg by 2030. With proper policy support, industry action, market generation and increased investor interest, India can position itself as a low-cost, zero-carbon green hydrogen manufacturing hub of the world. Source: PTI

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INDIA COAL MINISTER LAUNCHES WEB PORTAL FOR MINE ACCIDENT REPORTING IN COAL SECTOR, DEVELOPED BY CIL The portal will facilitate monitoring of actions to be taken by coal companies on the recommendations of various enquiries with a view to minimise such incidences.

inister of Coal, Mines and Parliamentary Affairs, Shri Pralhad Joshi launched a web portal developed by the Ministry of Coal to ensure real-time reporting of accidents occurring in Coal Mines. The portal has been developed by Coal India Limited (CIL) to facilitate accident investigation using root cause analysis techniques to ensure the elimination of causes of accidents. The portal will facilitate monitoring of actions to be taken by coal companies on the recommendations of various enquiries with a view to minimise such incidences.

Addressing at the 47th meeting of the Standing Committee on Safety in Coal Mines, Minister Shri Joshi reiterated that Safety is a top priority in the coal sector and advised all coal companies to ensure that there is no dearth of funds for ensuring safety measures. He complimented coal companies on the best ever performance in coal production this year despite challenges arising out of the COVID-19 pandemic and prolonged monsoon season in coalfields areas.

Shri Joshi mentioned that during the financial year 2021-22, India’s coal sector had achieved a record production of 777.23 Million Ton ( MT) compared to 716 MT in 2020-21 with 8.55 per cent growth. At the same time, coal despatch has increased by 18.43 per cent to 818.04 MT during fiscal 2021-22 against 690.71 MT in 2020-21. Standing Committee is the highest Tripartite Committee at the national level to review the status of safety in coal mines and the adequacy of existing measures in a spirit of mutual cooperation and sharing of ideas and suggestions. The meeting was attended by representatives of central trade unions, officers from the Directorate General of Mines Safety and CMDs and CEOs of various coal companies in the public as well as private sectors. Source: psuconnect

SAKSHAM 2022 LAUNCHED IN MAHARASHTRA: FOCUS ON GREEN AND CLEAN ENERGY: BPCL ‘SAKSHAM’, an annual month long, citizen-centric campaign on fuel conservation was launched by Shri Vijay Waghmare IAS. Secretary to the Govt. of Maharashtra – Department of Food and Civil Supplies & Consumer Protection at a virtual event which was attended by Shri Prashant Badgeri, Dy. Secretary, Energy Department, Smt. Maya Meher (Arjuna Awardee), Shri Ravi P.S, Executive Director, Bharat Petroleum, Shri Anirban Ghosh , Executive Director (MSO), Indian Oil, Shri Kamal Tandon , Executive Director Western Region , GAIL, Shri Dhruv Kapil, Chief General Manager WZ , Hindustan Petroleum, Shri Ajit P Dhakras , Regional Level Co-ordinator, Oil Industry, West, Shri Abhijit Ghosh, Director, PCRA , West.

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he event also had presence of Govt. officials, senior officers of oil companies, officers, dealers, professors, teachers, students as well as senior officials of BEST, PMPML and MSRTC. This year, (SAKSHAM CHAMTHA MAHOTSAV) 2022 (SAKSHAM) will be conducted from April 11 to April 30, 2022 with the theme of “Azadi ka Amrit Mahotsav through Green & Clean Energy” all over the country. As a part of this programme, various activities have been planned during the month such as group conversation, debates for school children, graffiti competition in college, fuel efficient driving competition, article writing, jingles on TV, radio and talk show etc. Activities such as Walkathon, Rangoli competitions, Publicity Stall, Quiz, and Skit 16 types will also be organized. A total of 800 activities have been organized in the state of Maharashtra.

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School students and teachers were felicitated for their outstanding contribution towards fuel and oil conservation. The’ Best Depot Award ‘was given by the chief guest for improving the maximum kilometer per liter (KMPL) at State Level for the maximum KMPL improvement during the period from April 2020 to March 2021 over the baseline of previous year in the Category- STUs in Maharashtra State. Shri Prashant Badgeri, Dy. Secretary, Energy Department grace the occasion as a Guest of Honour. During the function, he elated the audience with his speech on transition of Automobiles to electrical vehicles, which is a need of hour. He also, appealed to the audience to shoulder responsibility as good citizen and create awareness among the masses to avoid wasteful use of petroleum product so as to build new and healthy India. The Petroleum Conservation Research Association (PCRA) is leading the charge to sensitize citizens about the importance of fuel conservation. The SAKSHAM national outreach campaign provides the perfect platform to engage the masses and align them with this important cause. Source: sarkaritel

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INDIA IIT GUWAHATI, NTPC DEVELOP ENERGY-EFFICIENT TECH FOR CO2 CAPTURE FROM POWER PLANTS The Indian Institute of Technology Guwahati has partnered with NTPC Limited to design and develop a highly energy-efficient plant to capture carbon di-oxide from power plants.

he premier institute claimed it has the potential to combat global climate change and will help natural gas and petroleum refineries among others. According to officials, the technology developed by IIT Guwahati researchers works on flue gas — a mixture of gases produced by the burning of fuel or other materials in power stations — using a newly-activated amine solvent (IITGS), consumes up to 11 per cent less energy compared to commercial activated MDEA (monoethanolamine) solvent and up to 31 per cent less energy compared to the benchmark MEA (monoethanolamine) solvent.

After successful completion of test studies, the pilot plant has been shifted to NTPC’s (National Thermal Power Corporation Limited) NETRA facility. IIT Guwahati team and NTPC Limited are in the process of patenting the technology. This development has the potential impact to combat global climate change. The next phase of the study will involve the testing of pilot-plant using industrial flue gas, Bishnupada Mandal, Department of Chemical Engineering, IIT Guwahati, said.

The outcomes of this project will benefit oil, natural gas, biogas industries, and petroleum refineries. This project, through its research and education, will support and strengthen the United Nation’s Sustainable Development Goals (SDGs) as well, he said. “The increase in anthropogenic CO2 emissions is one of the reasons attributed to global warming. Extensive research efforts are being made by the scientific community to overcome this global challenge that includes modifications to existing technologies through efficiency improvement for CO2 capture. “The proprietary solvent-based technologies are available for CO2 capture in the chemical industry. This technology is utilised in coal and gas-fired power plants mainly to produce food-grade CO2 in small quantities (compared to CO2 capture in power plants). However, the process is energy-intensive, if adopted for large-scale CO2 capture in power plants,” Mandal said. Source: PTI

CHANDIGARH ADMINISTRATION WILL ADOPT THE RESCO MODEL FOR SOLAR PLANTS The Chandigarh administration will implement the Resco (Renewable Power Service Firm) mannequin for photo voltaic vegetation’ set up within the metropolis.

he UT electrical energy division has agreed to the proposal of the Chandigarh Renewable Power Science and Expertise Promotion Society (Crest) for set up of grid-connected rooftop solar energy initiatives for home customers by a 3rd get together below Resco construct, function, switch (BOT) enterprise mannequin. This was talked about within the newest order of the Joint Electrical energy Regulatory Fee (JERC), the place Crest had filed an software for implementation of the Resco mannequin. The order acknowledged, “The respondent (UT electrical energy division) has submitted that the stated enterprise mannequin (Resco) has been examined and agreed by them. The respondent has additional submitted that he has additionally agreed to all phrases and situations in quadripartite settlement (QPA) besides a provision regarding banking of energy within the settlement. The petitioner (Crest) and the respondent have submitted that after resolving the difficulty of banking of energy, they are going to submit initialized QPA to the fee for its consideration inside per week (sic).”

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A senior UT officer stated the electrical energy division and Crest have agreed upon on the QPA. Not too long ago, the facility regulatory fee had turned down the UT administration’s plea to implement the Resco mannequin. Thereafter, Crest had moved JERC. Crest, mission’s nodal company, had proposed this mannequin after approval of the UT administrator as residents have been cautious of the preliminary capital funding. Underneath the Resco mannequin, personal firms will set up photo voltaic power vegetation on personal properties and in return cost the constructing proprietor a a lot decrease tariff than the conventional electrical energy fee for about 15 years (or no matter interval is agreed within the tender). Thereafter, the home proprietor will get the plant. The constructing proprietor and the personal firm will signal a deal. The plant shall be put in below the web metering mode, whereby a photo voltaic unit is linked to the constructing’s electrical energy system and the power exported to the grid is adjusted by way of models imported from the electrical energy division throughout a billing cycle. Source: PTI

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INDIA DIGITIZATION OF INDIA’S POWER SECTOR WITH SMART METER INFRASTRUCTURE CRITICAL ‘Digitalization of power sector with AMI and Smart Meters is critical and beneficial for the entire energy value chain starting from generation companies to end consumers.’

ndia’s power distribution forms the weakest link in the power value chain. Yet, the success of the ongoing energy transition efforts would depend a lot on enabling the sector to undergo financial and operational efficiency improvement. While technology has been the key driver of transformation across the power sector, the distribution sector has not seen much change when it comes to using technology as a transformational tool. With the policy and regulatory framework for making systemic efficiency improvements in the sector being put in place and financial commitments being demonstrated by the central government, there is an all-around realisation now in the sector that without modernisation of the power distribution system, the national vision to ensure power for all round the clock and the systemic drive for rapid socio-economic development of the country cannot be achieved. Smart Meter National Program (SMNP), being positioned and promoted through the Revamped Distribution Sector Scheme (RDSS,) is the key program to mobilize resources, technology and processes, and the flagship endeavour of the administration to drive transformation in the sector and bring in digitalization and technology as enabling tools in this mission program.

ADVANCED METERING INFRASTRUCTURE (AMI) & DIGITALISING POWER SECTOR The AMI system infrastructure, which seeks to deploy smart prepaid meters at scale, is the foundation on which the Government of India’s modernisation efforts of the power distribution system are being based. This is because smart metering plays a crucial role in addressing some of the fundamental issues that are troubling the distribution sector, starting with the operational and financial concerns of the DISCOMs that have created a regressive ripple effect across the power value chain.

AMI – AN INTEGRATED SYSTEM OF EQUIPMENT, COMMUNICATIONS, AND INFORMATION MANAGEMENT SYSTEMS Can play a significant role in addressing these challenges. The end-to-end AMI includes smart electric meters, which are supported by technologies such as communication network, Head-End System (HES), Meter Data Management System (MDMS), and Cloud systems. It has the capability to record and store consumer’s energy usage data and communicate to utility’s legacy system at regular intervals. It can similarly allow Discoms to read and interpret consumer’s energy consumption pattern and generate accurate bills as well as optimise electricity supply. The entire AMI system is cloud based, making the digital infrastructure highly secure and scalable as per the demand situation.

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BENEFITS OF AMI-BACKED DIGITALISED POWER SECTOR A robust AMI infrastructure, at the very least, enable DISCOMs to enhance their operational and financial productivity by significantly improving billing and collection efficiency. Smart meter AMI can reduce current cumulative AT&C losses significantly. Billing and collection losses, which make about 50% of the total loss, can be directly reduced by more than 98% with the smart metering program, if deployed in its right spirit across the DISCOMs. Besides DISCOMs, it is the end consumers as well as the larger economy that will benefit from the smart metering program. The smart metering ecosystem allows DISCOMs to accurately read and gauge consumer’s energy consumption and generate exact bills – a far cry from the current situation where bills are inconsistent, and consumers continue to pay in an ad-hoc manner. In the long run, DISCOMs will be able to utilise the data to even customise electricity supply to meet the exact demand. With time, the burgeoning grid-interactive rooftop solar PV system will pave the way for consumers to turn into prosumers – who produce solar energy and also consume electricity from the grid. With energy imported from the grid and exported from the PV system valued at different tariffs, the implementation success of concepts like gross metering, net metering and net billing hinges considerably on the uptake of smart meters and a strong supportive system infrastructure.

COUNTING THE NATIONAL GAINS A World Bank report estimates that if the entire Indian population gets connected to one digitalised national grid with round the clock power supply, it will increase annual rural household income by $9.4 billion and reduce business losses by $22.7 billion per year. At the very foundation of a digitalised smart grid lies smart metering and a capable AMI architecture. There is another important reason for India’s smart metering and digitalisation of its grid network requirement. Like any responsible nation, India is taking essential steps to reduce its carbon footprint and ensure sustainable development to combat global climate change. India’s commitment to achieve net zero by 2070 and target to get 50% energy from renewable sources mean the grid needs to attain demand-side flexibility. Demand-side management of the grid based on granular data harvesting and building the components of digitalisation is the only way to manage the issues and meet the decarbonisation commitments. Digitalisation of power sector with AMI and Smart Meters is critical and beneficial for the entire energy value chain starting from generation companies to end consumers. Besides mitigating electricity theft, wastage and losses to DISCOMs, it protects consumers against inflated bills, boosts energy efficiency, responsible power consumption behaviour, and importantly, turns the whole system profitable. In the 21st century, the implementation of AMI is crucial not just for power sector’s health but also for India’s sustainable growth and development. Source: PTI

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INDIA VIZAG’S FLOATING SOLAR PROJECT TO TURN OPERATIONAL BY MAY Andhra Pradesh State Municipal Administration and Urban Development Department’s single largest floating solar power project (3MW) in Vizag is likely to be operational by May. If this happens, there will be some relief to utilities reeling under the present power crisis.

he Rs 14.03 crore project is being built over the surface water of Greater Visakhapatnam Municipal Corporation’s (GVMC) drinking water source, the Meghadrigedda reservoir. The Gurgaon based ReNew Power is executing the project. The annual generation savings for GVMC will be 42 lakh units, which is approximately of Rs 2.94 crore. This apart, the offset Co2 emissions per year would be 3960 tonnes.

A functionary of ReNew Power said, “This plant even curbs evaporation of gallons of water from the reservoir, particularly in summer. An advanced UK design anchoring technology has been used to automatically adjust the panels to the water level variation.”

Speaking to Deccan Chronicle, GVMC assistant engineer Rama Naidu said the project works started in 2019 and would be completed by this May. “The project was delayed due to the two years of Covid19 restrictions. It is the state’s largest floating solar project over a water body in the municipal limits. We have a similar 2MW project over Mudasarlova reservoir here. This project saves 5 acres of land due to installation of solar panels on water,” Naidu said. GVMC doesn’t spend a single penny as the entire funding of the climate-resilient project is borne by Asian Development Bank under the Urban Climate Change Resilience Trust Fund. According to the New and Renewable Energy Development Corporation of AP, floating solar panel is an emerging technology trend with huge potential in areas where there are water bodies. As per estimates, nearly 300GW of energy can be generated through proper utilisation of only 10 to 15 per cent of India’s water resources through the floating solar power system. Source: PTI

NHPC TO DEVELOP GREEN HYDROGEN PROJECT IN HIMACHAL PRADESH Indian hydropower producer NHPC Ltd (BOM:533098) plans to produce green hydrogen in the state of Himachal Pradesh for the needs of the local mobility and transportation markets.

he Indian company has signed a Memorandum of Understanding (MoU) with the District Administration Chamba for the pilot project, the state government announced. Under the plan, the green hydrogen facility is set to be installed in the town of Chamba and will produce about 20 kg of hydrogen daily. The electrolysis process will be powered with electricity from a 300-kW solar photovoltaic (PV) plant that will be built in proximity. The hydrogen will be stored in a compressed form and will be used as transportation fuel. NHPC said separately that production will be scaled up in the future to a commercialscale level, with the green hydrogen to be used for heating purposes and in micro grid projects. India has set a goal having 500 GW of power generation capacity from non-fossil fuel sources by 2030 and becoming carbon neutral by 2070.

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Source: PTI

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INDIA INDIA’S FIRST PORTABLE SOLAR ROOFTOP SYSTEM UNVEILED IN GANDHINAGAR

The country’s first portable solar rooftop system was inaugurated at Swaminarayan Akshardham temple complex in Gandhinagar. he installation of 10 PV Port systems in the temple complex has been supported by the German development agency Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ), a statement said. The systems have been installed under the Union Ministry of New and Renewable Energy’s initiative to develop renewable energy cities across India.

Designed by GIZ, the PV Port systems are standard plug and play photovoltaic systems of a minimum of 2 kWp that come with or without battery storage. ”India’s first portable solar rooftop system was inaugurated at the Swaminarayan Akshardham temple complex in Gandhinagar…,” the statement said. The PV Ports have been manufactured by New Delhi-based Servotech Power Systems Ltd (SPSL), a leading maker of high-end solar products like LEDs, oxygen concentrators and EV charging equipment under the Make in India project, it added.

The unique PV Port system is the way ahead for greater adoption of solar power in the country,” said Raman Bhatia, founder and Managing Director of Servotech Power Systems Ltd. The 10 PV Port systems were inaugurated in the presence of Shwetal Shah, Advisor, Climate Change Department, Government of Gujarat, and officials of GIZ, GERMI and Swaminarayan Akshardham temple.

Jorg Gabler, Principal Advisor of the Integration of Renewable Energies in the Indian Electricity System (I-RE) project, GIZ India, said that ”such collaborations and the resulting synergies are expected to benefit consumers to a huge extent. We are very optimistic that the partnerships will provide us insights to deal with emerging challenges and capitalise on opportunities on the city level, which help us replicate the results in other cities across India”.

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Of the 40 PV Port systems to be installed in Gandhinagar, Servotech Power Systems has already installed more than 30 systems at Pandit Deendayal Energy University, GSPC Bhavan, Indroda Park, NIFT, Arya Bhavan, and other places. The PV Port system is highly cost-effective, requires low maintenance, has a long shelf life of 25-30 years, can be easily installed by a single person and is ideal for the Indian climate. It is designed for 100 per cent self-consumption, and no power is fed into the grid. Unlike other conventional solar PV systems, the design of the PV Port system allows the space below the panels to be utilised. Each system leads to an average annual savings of Rs 24,000 on electricity bills. Source: PTI

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BUSINESS & FINANCE GLOBAL BANKS KEEP UP PACE WITH $742BN IN FOSSIL FUEL FINANCE DESPITE CLIMATE PLEDGES World’s largest lenders provided only slightly less financing last year than in 2020, analysis shows JPMorgan Chase remains the biggest financier of fossil fuels.... Cumulative fossil fuel financing, 2016-21

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lobal banks provided $742bn in financing to coal, oil and gas companies last year, despite the fanfare of climate pledges by lenders that signed up to former Bank of England governor Mark Carney’s industry alliance, according to the latest comprehensive analysis by an activist group. Fossil fuel financing remained dominated by the same four US banks, led by JPMorgan Chase, and followed by Wells Fargo, Citi and Bank of America, according to the annual report produced by a coalition of campaign groups organised by the Rainforest Action Network. All four banks are members of the so-called Net-Zero Banking Alliance that is part of Carney’s Glasgow Financial Alliance for Net Zero umbrella group. The group made the claim at the UN climate summit in Glasgow in November that $130tn of private sector assets was committed to achieving net zero greenhouse gas emissions. Overall, the world’s 60 largest lenders provided only slightly less financing for fossil fuels in 2021 than the $750bn recorded in 2020, the RAN report found. The banks have provided a total of $4.6tn since the Paris Agreement was signed in 2016, peaking in 2019 at $830bn, it said.

The energy crisis that has been exacerbated by Russia’s invasion of Ukraine has driven expectations that the demand for fuel will support coal, oil and gas production in the short term.

Although the total amount provided by the banks in 2021 for fossil fuel expansion fell to $185.5bn from $319.7bn in 2020, that decline “may be cancelled out in the year ahead by pressures in energy markets”, said James Vaccaro, executive director of the Climate Safe Lending Network, a group of banks, NGOs and investors. “There is very little to feel positive about,” he said. The findings were in “stark contrast” with banks’ climate pledges, and showed that “there are still considerable flows of finance to fossil fuel companies at similar rates to that in previous years”.

APRIL 2022

BUSINESS & FINANCE JPMorgan was the biggest western financier of the Russian state energy company Gazprom over the past six years, according to the RAN analysis. In total, JPMorgan funding of fossil fuels companies in 2021 stood at $61.7bn, up about $10bn after falling by a similar amount the previous year. The bank said it was “taking pragmatic steps” to meets its emission reduction targets “while helping the world meet its energy needs securely and affordably”. Wells Fargo similarly recorded a bounce back by about $20bn to $46.2bn in 2021, after the biggest backer of US fracking put the fall the previous year down to the slump in oil prices. Citi moved behind Wells Fargo in 2021, providing $41bn of financing, down from $49bn the year before. The bank said its strategy was based on “responsibly driving the transition to a net zero economy and . . . focused on working with our fossil fuel clients to help them decarbonise their businesses”. Similarly, the Bank of America lowered its fossil fuel financing activities to about $32bn in 2021, from $42bn the year before. The French banks also pared back their activities in 2021, after a surge the previous year. Although many

banks had climate policies in place, they were often worded in such a way as to be ineffective, the RAN report said. For example, exclusions related to project-specific finance, or only limited lending and not underwriting. Of the 44 banks covered by the report that had committed to net zero emissions goals by 2050, it found 27 did not have a “meaningful no-expansion policy for any part of the fossil fuel industry”. That enabled fossil fuel financing to continue without breaching policies, the report said. Soon after the launch of the Net-Zero Banking Alliance, founding signatories including Citi, BNP Paribas and Barclays took part in multibillion-dollar financing deals with companies including Saudi Aramco and the Abu Dhabi National Oil Company, the stateowned oil companies, and the US oil major ExxonMobil, the report noted. Banks’ financing exclusion policies often focus on coal, the most polluting fossil fuel that has become a focal point for policymakers. Yet only about 4 per cent of the $4.6tn in fossil fuel lending and underwriting recorded since 2016 went towards coal mining companies, and the bulk of coal financing came from Chinese state-backed banks, the report said. Roughly a quarter of the total financing went to utilities, including coal power generators, and about two-thirds went to oil and gas. The analysis also noted the “alarming” increase in the financing of tar sands oil projects, which jumped 50 per cent between 2020 and 2021 to $23.3bn. Source: ft

IREDA TO FINANCE 3,000 ELECTRIC CARS, SANCTIONED LOAN OF RS. 268 CRORES TO BLUSMART MOBILITY

From the sanctioned loan of Rs. 267.67 crores, the first tranche of Rs. 35.70 has been disbursed by IREDA to the company. n a bid to promote electric vehicles in the DelhiNCR region, Indian Renewable Energy Development Agency Ltd. (IREDA), the largest lender of the Renewable Energy sector in India, sanctioned a loan of Rs. 267.67 crores to BluSmart Mobility for the purchase of 3,000 all-electric cars. BluSmart Mobility will use the fresh capital to purchase 3,000 all-electric cars, leading to an expansion of its EV fleet. From the sanctioned loan of Rs. 267.67 crores, the first tranche of Rs. 35.70 has been disbursed by IREDA to the company.

Speaking on the collaboration, Shri Pradip Kumar Das, CMD, IREDA said, “We at IREDA believe that electric mobility has huge growth potential in India. BluSmart has been providing its services in the national capital region of India, and we support their team behind this good work. This is our first major investment in this space and towards making India a cleaner and greener country. IREDA is looking forward to financing more EV projects to speed-up the progress of moving transportation to clean sources in the country. This is part of the company’s endeavour to help reduce emissions in the National Capital Region.”

Anmol Jaggi, Co-Founder, and CEO, BluSmart Mobility said, “EV is going to be the new sunrise sector that will help transition India to a cleaner future. We are excited with this fundraise and heartily thank the Government of India for taking sturdy steps in the EV sector and IREDA for putting trust in us.” Source: psuconnect

APRIL 2022

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BUSINESS & FINANCE INDIA EMERGING AS AN ALTERNATIVE DESTINATION FOR RELOCATING CHINESE INDUSTRIES With gradual expansion of the capacity of its local sourcing and distribution networks accompanied by provision of key incentives and regulatory relaxations to foreign investors, India is on its way to reshape the global supply chain and become an alternative to China.

n this regard, Japanese Prime Minister, Fumio Kishida announced an investment of Yen 3.5 trillion ($42 billion) in India over five years during the India-Japan Annual Summit in Delhi. Under an MoU, Suzuki Corporation would set up an electric car manufacturing unit in Gujarat. Earlier, to enhance the resilience of supply chains in the IndoPacific region, the trade and economy Ministers of India, Japan and Australia launched the Supply Chain Resilience Initiative (SCRI) on April 27, 2021, which aims to develop dependable sources of supply and attract investment. BS, a financial services company based in Switzerland, forecasted in February 2020 that India can become a preferred destination for companies looking to shift from China, and to India emerging as an alternative destination for relocating Chinese industries.

India has identified a dozen of sectors where global supply chains can shift away from China. These sectors include energy, automobiles, steel, pharma, textiles and garments, marine products, financial services, IT services and tourism, etc. To avoid the manufacturing and supply chain disruptions, global companies are looking to diversify their strategy and India stands to gain from this move which will also break the concentrated supply chain in China. With the ‘Make in India’ programme, India has started to produce electronics, electrical goods, solar panels, chemicals, bulk drugs, metals, furniture, household/gifts items, toys, footwear, hardware, automobile components, tires, bicycle parts, bearings and machinery, etc. Some India-based businesses have also set up domestic sourcing and distribution

networks in order to de-risk from China, and to drive manufacturing costs down. In view of this, the Indian government in subsequent budget provisions increased import duties on certain electronic components to set up a less vulnerable supply chain in the country itself. Not only local firms, but foreign companies with a base in India have also started local production to reduce reliance on imports and focusing on large scale indigenization. Chinese smartphone maker Vivo had set up a manufacturing facility in Greater Noida. Similarly, South Korean multinational company Samsung had set up India’s first smart-phone display manufacturing unit in Noida. It is likely to play a key role in the imminent major reshuffle of the global supply chain. At present, there are 1,455 Japanese companies operating in India and 11 Japan Industrial Townships (JIT) have been established, including Neemrana in Rajasthan and Sri City in Andhra Pradesh, hosting the maximum number of Japanese manufacturing companies. Japan is also India’s 5th largest source of FDI, besides being the largest development partner. Further, due to rising labour costs in China, overseas businesses are keen to set up a local supply chain in India. According to industry experts, the entry level salaries for workers in India start between Rs 12,000 ($157) and Rs 15,000 ($196), while the Against this backdrop, given India’s competitive advantage in terms of land and labour availability as well as software skills, global manufacturers long settled in China are looking to diversify their manufacturing bases to India even as the current Covid crisis underscores the importance of moving away from dependency on a single economy like China. Source: IANS

SOLAR CELLS IMPORT JUMPS TO USD 3,447 MN IN APRIL-JAN; MAXIMUM SHIPMENT FROM CHINA Solar cells import rose to USD 3,447 million (around Rs 26,000 crore) during April-January 2021-22 as compared to USD 572 million in the previous financial year, Parliament was informed

he imports were worth USD 1,684 million in 2019-20 and USD 2,160 million in 201819, New & Renewable Energy Minister R K Singh said in a written reply to the Lok Sabha. From April-January 2021-22, the maximum import was from China at USD 3,117.78 million. In another reply, the minister stated that the government has set a target of installing 100 GW of solar power capacity by December 2022 in the country. Against this, projects of 108.91 GW have either been commissioned or are in the pipeline. A total of 50.78 GW of solar power capacity has been installed as of February 28, 2022. About 44 GW capacity is at various stages of implementation and 13.86 GW capacity is underbidding stage, the minister said.

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Source: PTI

APRIL 2022

BUSINESS & FINANCE MAINSTREAM SIGNS PRIVATE PPA FOR 100 MW SOLAR PROJECT IN COLOMBIA Mainstream Renewable Power, the global renewable energy company, has commercialised its first development in Colombia by signing a deal to supply 180 Gigawatt hours of clean energy each year in a private power purchase agreement (PPA).

Mary Quaney, Mainstream’s Chief Executive Officer, said: “Mainstream is proud to announce our first major milestone in Colombia, a country with huge potential to transition quickly to renewable energy. “We have been at the leading edge of developing clean energy around the world, from Chile to South Africa, and our work in Colombia is a key example of how Mainstream intends to accelerate its growth trajectory with the support of Aker Horizons and our new long-term strategic investor Mitsui & Co. “We look forward to building on this significant achievement in Colombia and enabling it to decarbonise through the large-scale deployment of renewables – with hundreds of megawatts already in the pipeline, we are well on our way.” ainstream will build the 100 MW Andromeda solar PV plant, located in Toluviejo, Colombia, to supply the electricity to Air-e, a Colombian energy distribution company. The PPA has a tenure of 15 years, and will come into effect from 2024, once the c. 195,000 solar panels are installed and new transmission infrastructure is in place. This expansion of Mainstream’s activities in Latin America builds on its leading position in Chile, where it is building the 1.37 GW Andes Renovables platform, due to be completed next year, in addition to launching the new 1 GW Nazca Renovables platform.

Mainstream has a total portfolio of over 5.5 GW in Latin America, and has been actively growing its development pipeline of wind and solar assets in Colombia since 2019. The company is managing its Colombian activities from its office in the country’s capital, Bogotá. Mainstream was one of four companies awarded a contract as part of the competitive auction run by Air-e, in which Mainstream secured 50% of the total available capacity in the process. This follows major successes in other markets across the world, including obtaining preferred bidder status for 1.27 GW of wind and solar projects in South Africa, and completing the divestment of Aela Energia in Chile. Mainstream recently announced that Mitsui & Co. Ltd, one of the leading Japanese general trading and investment firms, has agreed to invest €575 million in Mainstream, corresponding to a 27.5 percent equity stake, and will take a long-term active role in the growth of the company alongside its existing long-term strategic investor, Aker Horizons.

APRIL 2022

Miguel Lotero Robledo, Colombia’s Vice Minister for Mines and Energy, said: “The entry of energy from non-conventional renewable sources to the electricity grid of La Guajira, Atlántico and Magdalena, thanks to this Air-e auction, ratifies the country’s commitment to an environmentally friendly energy transition, while adding reliability to the system.”

Jhon Jairo Toro, General Manager for Air-e, said: “This new mechanism of auctions and long-term contracting will enable the construction of solar projects in the departments of Bolivar, Magdalena, Sucre, Valle del Cauca and Tolima. “This auction represents an important milestone for the company, its customers and the country because we want to promote the production of energy in an environmentally friendly manner. We also seek competitive prices for the benefit of our customers.” Source: mainstreamrp

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BUSINESS & FINANCE INDIA AND NEPAL RESTORE RAIL LINKS, AGREE ON ENERGY PROJECTS COOPERATION

The train service will criss-cross from Jaynagar in Bihar to Kurtha in Janakpur, Nepal.

he section of the railway project that runs from Madhubani district’s Jayanagar (Bihar) to Kurtha in Nepal will be extended up to Bijalpura, which is a further 17 km from Kurtha Prime Minister Narendra Modi and his Nepal counterpart Sher Bahadur Deuba inaugurated the rail service between the two countries. The train between the two countries will operate from Jaynagar in Bihar to Kurtha in Janakpur. For the convenience of passengers, 8 stations, 6 halt stations, and 47 road crossings have been constructed on this rail section connecting the two countries. A total of 127 minor and 15 major bridges have been constructed on the newly gauged converted Jaynagar-Kurtha rail section of 34.9 km.

India- Nepal railway project: Jaynagar to Kurtha railway service. Key points The train service will criss-cross from Jaynagar in Bihar to Kurtha in Janakpur, Nepal. Jaynagar-Kurtha section is part of the 68.7 km JaynagarBijalpura-Bardidas rail link. Jaynagar is 4KM from the IndiaNepal border. The section of the railway project that runs from Madhubani district’s Jayanagar (Bihar) to Kurtha in Nepal will be extended up to Bijalpura, which is a further 17 km from Kurtha. The rail service between Jayanagar and Bijalpura in Nepal had been introduced in 1937 by the British. It was suspended in 2001 after the Nepal floods. According to the Kathmandu Post, India has spent around ₹10 billion to rebuild the old railway track, and the Nepal government has purchased two train sets for around Rs1 billion. Konkan Rail Corporation Limited (KRCL) has supplied two sets of 1600 HP DEMU passenger rakes and two operate rail services on this route. These 2 DEMU rakes have 2 AC coaches each apart from non-AC coaches. These 2 rakes were handed over to Nepal in September last year. This will be the first Broad Gauge passenger rail service in Nepal. Prior to this till 2014 a narrow gauge service ran between Jayanagar and Janakpur operated by Nepal. Indian Railways is extending full cooperation to Nepal in running the BG service by sharing the know-how and operations and maintenance processes with Nepal Railway Company as well as imparting training to officials from Nepal.

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Prime Minister Narendra Modi and Nepal Prime Minister Sher Bahadur Deuba met and held delegation-level talks at Hyderabad House in New Delhi. This is Prime Minister Deuba’s first bilateral visit abroad since assuming office for the fifth time in July last year. Source: AFP

APRIL 2022

BUSINESS & FINANCE

INDIANOIL, L&T AND RENEW TO FORM JV FOR DEVELOPMENT OF GREEN HYDROGEN BUSINESS In a bid to enable India’s decarbonization push, Indian Oil Corporation Ltd., (IndianOil), the country’s top refiner and fuel retailer, Larsen & Toubro (L&T), India’s premier engineering & construction conglomerate, and ReNew Power (“ReNew”) (NASDAQ: RNW) (NASDAQ: RNWWW), India’s leading renewable energy company, announced signing of binding term sheet for the formation of a Joint Venture (JV) company to develop the nascent green hydrogen sector in India.

he tripartite venture is a synergistic alliance that brings together the strong credentials of L&T in designing, executing, and delivering EPC projects, IndianOil’s established expertise in petroleum refining along with its presence across the energy spectrum, and the expertise of ReNew in offering and developing utilityscale renewable energy solutions. Additionally, IndianOil and L&T have signed a binding term sheet to form a JV with equity participation to manufacture and sell Electrolyzers used in the production of Green Hydrogen.

Speaking about the joint venture, Mr. SN Subrahmanyan, CEO & MD, L&T, said, “India plans to rapidly march ahead in its decarbonization efforts and production of Green Hydrogen is key in this endeavour. The IndianOil-L&T-ReNew JV will focus on developing Green Hydrogen projects in a time-bound manner to supply Green Hydrogen at an industrial scale. While L&T will bring its strong EPC credentials to the table, IOC being India’s premier oil refiner with extensive capabilities in chemical processes and refining has established deep R&D capabilities in many aspects of green hydrogen value chain, and ReNew Power has in a short time established itself as a leading renewable energy supplier and has built itself a very strong reputation. We consider this partnership as a significant step in India’s quest for alternative energy. Addressing another gap in the Green Hydrogen manufacturing chain, IndianOil-L&T JV will focus on production and sale of Electrolyzer.” “Both these JVs aim to enable the nation’s ‘Aatmanirbhar Bharat’ mission to rapidly build, expand and bring in economies of scale to make green hydrogen a cost-effective energy carrier and a chemical feedstock for many sectors.”

APRIL 2022

Commenting on the occasion, Mr. Shrikant Madhav Vaidya, Chairman, IndianOil, said, “Being the Energy of India, we are committed to powering India’s drive towards carbon neutrality by leveraging the power of green hydrogen. IndianOil is forging this alliance to realise India’s green hydrogen aspirations, which is in sync with the Hon’ble Prime Minister’s vision of making India a Green Hydrogen generation and export hub. To start with, this partnership will focus on green hydrogen projects at our Mathura and Panipat refineries. Alongside, other green hydrogen projects in India will also be evaluated. While the usage of hydrogen in the mobility sector will take its due time, however the refineries will be the pivot around which India’s green hydrogen revolution will materialize in a substantial way.”

“The partnership forged will thus catalyse the greening of India’s energy basket.”

Mr. Sumant Sinha, Chairman and CEO of ReNew Power said, “In alignment with the government’s broader strategic climate goals for 2030 and 2070 set by honourable Prime Minister Narendra Modi, ReNew looks forward to working with L&T and IndianOil to build the green hydrogen business in India. ReNew, as a leader in intelligent energy solutions and with advanced capability across renewable energy technologies, is well poised to complement the capabilities of our partners.” “The timing for these proposed JVs is excellent as they will help support Government of India’s recently announced green hydrogen policy to boost India Inc.’s decarbonization journey.” The planned JVs aim to enable India’s transition from a grey hydrogen economy to a greener economy that increasingly manufactures hydrogen via electrolysis powered by renewable energy. The central government in February notified the Green Hydrogen policy aimed at boosting production of green hydrogen and green ammonia to help the nation become a global hub for the environmentally friendly version of the element. For countries like India, with its ever-increasing oil and gas import bill, green hydrogen can also help provide

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BUSINESS & FINANCE crucial energy security by reducing the overall dependence on imported fossil fuels. While nearly all hydrogen produced in India today is grey, it is estimated that demand for Hydrogen will be 12 MMT by 2030 and around 40% of the element produced in the country (around 5 MMT) will be green, as per the draft National Hydrogen Mission guidelines. By 2050, nearly 80% of India’s hydrogen is projected to be ‘green’ – produced by renewable electricity and electrolysis. Green hydrogen may become the most competitive route for hydrogen production by around 2030. This may be driven by potential cost declines in key production technologies and in clean energy technologies such as solar PV and wind turbines.

Today, hydrogen is mainly used in the refining, steel and fertilizer sectors, which will be the focus of the JVs’ initial efforts. The country’s refining sector consumes approx. 2 MMT of grey hydrogen every year, with IndianOil owning one of the largest shares of its refining output. To help decarbonize Indian industry, the new green hydrogen policy provides for the waiver of Inter-State transmission charges for a period of 25 years and a banking provision of up to 30 days, which will help reduce the cost of green hydrogen significantly. This will, therefore, push the replacement of grey hydrogen with green. The Ministry of Power has also provided a single -window-clearance portal for all clearances and open access on priority to green hydrogen projects.

ENERGY DOME AND ANSALDO ENERGIA SIGN AGREEMENT TO BRING ENERGY STORAGE FACILITIES TO EUROPE, MIDDLE EAST, AFRICA Energy Dome will provide the CO2 Battery technology, and Ansaldo will provide equipment, engineering, and construction of new grid-scale energy storage to support the energy transition.

nergy Dome, a global provider of long-duration energy storage solutions that enable renewable energy to be dispatchable, and Ansaldo Energia, a leading international power OEM and service provider, signed a non-exclusive license agreement to partner on the commercialization of long-duration energy storage facilities across the EMEA region that will support greater integration and use of renewable energy on the grid. This partnership will help accelerate the transition away from fossil fuel power toward renewable energy to meet climate goals. With Energy Dome’s first commercial CO2 Battery storage facility nearing completion in Sardinia, Italy, Energy Dome anticipates seeing as many as 30 facilities being built over the next five years in Italy, Germany, the Middle East, and Africa. These facilities will use Energy Dome’s non-flammable, non-toxic carbon dioxidebased energy storage solution to store and dispatch power. The companies anticipate the deployment of the first CO2 Batteries, including performance guarantees, starting in 2023, with Ansaldo Energia acting as EPC, based on the Front-EndEngineering-Design (FEED) developed by Energy Dome.

Our agreement with Energy Dome is an important step in Ansaldo’s plans to expand our clean energy business with energy storage solutions to help power industry players get the most out of their solar, wind, and other renewable energy resources, while ensuring reliability, said Giuseppe Marino, CEO of Ansaldo Energia after signing the agreement. “We are pleased to include Energy Dome’s low-cost, long-duration energy storage solution in our suite of grid-scale clean energy solutions and look forward to deploying CO2 Batteries in Europe, the Middle East, and Africa.”

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Energy Dome’s CO2 Battery technology does not involve scarce and environmentally challenging raw materials like lithium. Instead, it uses carbon dioxide and off-the-shelf components to charge and discharge power from 4 to 24 hours, enabling renewables to serve as fully-dispatchable daily energy resources. Energy Dome’s CO2 Batteries can be deployed just about anywhere at less than half the cost of similar-sized lithium-ion battery storage facilities and have superior roundtrip efficiency, with no performance degradation over a 25year lifecycle.

We are excited to partner with Ansaldo Energia to scale the deployment of low-cost, easy-to-build CO2 Battery storage facilities, said Energy Dome Founder and CEO Claudio Spadacini. “By entering into this agreement, after detailed technology validation, Ansaldo endorses the CO2 Battery and ensures its bankability by including performance guarantees backed up by its balance sheet. Energy Dome is open for business and we are negotiating multiple pre-orders for energy storage facilities of 100 to 200 MWh in size.” Energy Dome’s CO2 Battery uses CO2 in a closed-loop charge/discharge cycle as a storage agent. Prior to charging, gaseous CO2 is kept in a large dome structure. During charging, electricity from the grid is used to compress the CO2 into liquid form, creating stored heat in the process. During discharge, the liquid CO2 is evaporated using the stored heat, expanded back into its gaseous form, and used to drive a turbine to generate electricity.

APRIL 2022

BUSINESS & FINANCE PANASONIC TO INVEST $4.9 BN IN EV BATTERIES, SUPPLY CHAIN SOFTWARE Japanese multinational conglomerate Panasonic has decided to expand aggressively in the booming electric vehicle market. It has announced to invest nearly ¥600 billion (approximately $4.9 billion) in automotive batteries, supply chain software, among others.

he Osaka-headquartered Group also maintained that it will deploy 400 billion yen (roughly $3.26 billion) in “growth areas” and 200 billion yen (about $1.63 billion) in “technology pillars” respectively from financial year 2023 to 2025 end. The announcement comes close on the heels of another Japanese giant Suzuki Motor announcing that it will build a new factory in India to make EV batteries, with an aim to kick off production in 2025 or 2026.

“Each operating company of the Group is to invest with the cash generated through its own business and aims for further growth in each business area toward its long-term goals. While maintaining financial discipline, the Group is to make Group-wide strategic investments with the cash generated through enhancement of competitiveness, as well as the investments made by each operating company,” the company said in a statement.

Apart from spending a sizeable sum on automotive batteries and supply chain software divisions, Panasonic will also be deploying some resources towards ‘air quality’ and ‘air conditioning area’, ‘hydrogen energy’ and CPS (cyber physical system) in the medium to long term. With these investments, the company it is also aiming to post an accumulated operating profit of 1.5 trillion yen over the period. Source: PTI

MITSUI TO INVEST IN RENEW POWER’S PROJECT ReNew Power renewable energy project provide 400 MW of electricity to state-owned electricity and help meet India’s climate change goals, companies say.

eNew Power and Japan’s Mitsui have signed an agreement that will have the Japanese company invest in a round-the-clock renewable energy project the Indian company is developing. The project will set up three wind farms and a solar-plus-battery storage farm in Rajasthan, Karnataka, and Maharashtra. It will provide 400 MW electricity to the state-owned Solar Energy Corporation of India (SECI). The farm will have a capacity of 1,300 MW and 100 MWh in battery storage. The project “will feed into” India’s climate change commitments and target of scaling up the renewable energy sector, said a press release from the two companies.

The project “provides the lowest cost and emission-free 24 X 7 renewable electricity. We are proud to partner with Mitsui, a leading global conglomerate, to support India’s green energy transition and look forward to strengthening this partnership in the future,” said Sumant Sinha, Founder, chairman and chief executive officer of ReNew Power.

APRIL 2022

We view India as an extremely promising market for many reasons, including its high economic growth and strong commitment towards decarbonization. Through this project, Mitsui will accelerate India’s clean energy transition together with ReNew, said Ryoichiro Uno, General Manager in charge of infrastructure projects in India, Middle East, and Africa of Mitsui. Two days ago Indian Oil Corp. Ltd announced partnering with ReNew Power and Larsen & Toubro Ltd. to produce green hydrogen that’s fast gaining momentum in the South Asian nation’s clean push. Source: PTI

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BUSINESS & FINANCE FINANCE MINISTRY GRANTS ADDITIONAL RS. 28,204 CR. FOR UNDERTAKING POWER SECTOR REFORMS TO 10 STATES The objectives of granting financial incentives as additional borrowing permissions for taking up reforms in the power sector are to improve the operational and economic efficiency of the sector and promote a sustained increase in paid electricity consumption.

he Department of Expenditure, Ministry of Finance, has granted additional borrowing permission of Rs. 28,204 crore to 10 States for undertaking the stipulated reforms in the power sector in 2021-22. States include Andhra Pradesh, Assam, Himachal Pradesh, Manipur, Meghalaya, Odisha, Rajasthan, Sikkim, Tamil Nadu, and Uttar Pradesh. The highest amount granted is Rs. 7,054 crores to Tamil Nadu. Ministry of Finance, based on the recommendations of the Fifteenth Finance Commission, had decided to grant additional borrowing space of up to 0.5 percent of the Gross State Domestic Product (GSDP) to the States every year for a four year period from 2021-to 22 to 2024-25 based on reforms undertaken by the States in the power sector. This was announced by the Finance Minister in the Budget speech of 2021-22.

The objectives of granting financial incentives as additional borrowing permissions for taking up reforms in the power sector are to improve the operational and economic efficiency of the sector and promote a sustained increase in paid electricity consumption. In the financial year 2022-23 too, the States can avail of the facility of additional borrowing linked to reforms in the power sector. An amount of Rs. 1,22,551 crore will be available as an incentive to States for undertaking these reforms in 2022-23. States who could not complete the reform process in 2021-22 may also avail of the benefit of additional borrowing earmarked for 2022-23 if they carry out the reforms in a current financial year. Source: psuconnect

SIMPLE ENERGY INVESTS $150 MN ON LITHIUM-ION CELL FACTORY Electric vehicle startup Simple Energy, which is setting up its EV factory at Hosur (Tamil Nadu), will invest $150 million (around Rs 1136.5 crore) on a lithium ion cell manufacturing unit. The company has tied up with US-based battery company C4V for technology and knowhow.

he factory will come up over a 600 acre plot, where the company plans to build a second EV factory as part of its Phase 2 expansion plans. Simple Energy had earlier announced an investment of Rs 2,500 crore on setting up its EV manufacturing plants in Tamil Nadu.

We are vertically integrating the entire value chain, thus bringing better synergy and higher localization. By partnering with C4V, we will consolidate cell supply, which is a vital component for us and makes us more self reliant and reduce our dependency on imports, said Shreshth Mishra, co-founder, Simple Energy.

The move will not only reduce the burden of import duties but also ensure the timely supply of quality batteries in the EV space, Kuldeep Gupta, VP (strategic partnership) C4V said.

Simple Energy’s flagship product, Simple One, will be produced at Phase I of the company’s manufacturing unit located at Hosur which has an annual production capacity of up to one million units. The factory will be operational in the coming weeks. The company has also commissioned a second plant in Dharmapuri, Tamil Nadu, which will have a capacity of 12.5 million units annually as part of its Phase 2 ramp up. Source: PTI

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APRIL 2022

BUSINESS & FINANCE IHC TO INVEST $2 BN IN ADANI GROUP’S GREEN PORTFOLIO

Abu Dhabi-based conglomerate International Holding Company will invest USD 2 billion in three green-focused companies in the Adani Group through preferential share allotment.

ELECTRIC VEHICLE RETAIL SALES ZOOM OVER THREEFOLD IN 2021-22 Total EV sales had stood at 1,68,300 units in the 2019-20 fiscal, automobile dealers’ body FADA noted.

“IHC will invest Rs 3,850 crore in Adani Green Energy Ltd (AGEL), Rs 3,850 crore in Adani Transmission Ltd (ATL) and Rs 7,700 crore in Adani Enterprises Ltd (AEL),” the group led by billionaire Gautam Adani said in a statement.

t, however, did not say how much equity will IHC pick up in the three firms. The boards of AGEL, ATL and AEL met and approved the transaction. The investment is subject to shareholder and regulatory approvals and shall comply with the Sebi regulations.

“IHC and Adani portfolio are committed to growing the business partnership across multiple strategic opportunities in India, the Middle East and Africa,” the group said.

Sagar Adani, Executive Director, AGEL, said, “We are deeply committed to the shared vision and values of investment in sustainable infrastructure, green energy and energy transition. This is a landmark transaction and marks a start of a wider relationship between the Adani Group and IHC and attracting further investment from UAE into India”. Source: PTI

APRIL 2022

lectric vehicle retail sales in the country witnessed over three-fold jump last fiscal with two-wheeler offtake leading the segment, according to data compiled by automobile dealers’ body FADA. Total electric vehicle (EV) retails reached 4,29,217 units in 2021-22, a rise of threefold from 1,34,821 units in the financial year 2020-21, the industry body said. Total EV sales had stood at 1,68,300 units in the 2019-20 fiscal, it noted. According to the Federation of Automobile Dealers Associations (FADA), electric passenger vehicle retail sales stood at 17,802 during the last fiscal, up over three-fold from 4,984 units in FY21. Home-grown auto major Tata Motors led the segment with retails of 15,198 units and a market share of 85.37 per cent in the vertical. The Mumbai-based company’s retail sales stood at 3,523 units in 2020-21. MG Motor India settled into the second place with sales of 2,045 units last fiscal with a market share of 11.49 per cent. It had retailed 1,115 units in the 2020-21 fiscal. Mahindra & Mahindra and Hyundai Motor India stood at third and fourth places with dispatches of 156 and 128 units respectively, both settling for a market share of less than 1 per cent. M&M and Hyundai had sold 94 and 184 units respectively in the 2020-21 fiscal, FADA data said. Electric two-wheeler retail sales last fiscal stood at 2,31,338 units, a jump of over five-fold from 41,046 units in 2020-21, it stated. Hero Electric led the segment with sales of 65,303 units, grabbing 28.23 per cent share in the domestic market. It was followed by Okinawa Autotech which retailed 46,447 units last fiscal. Third place was taken by Ampere Vehicles with sales of 24,648 units. Hero MotoCorp-backed Ather Energy stood at fourth position with registration of 19,971 units in 2021-22. Bengaluru-based Ola Electric with sales of 14,371 units stood at sixth position, while TVS Motor Company with registrations of 9,458 units took the seventh position last financial year. FADA, which gathered data from 1,397 of the total 1,605 regional transport offices, said that total electric three-wheeler sales last fiscal stood at 1,77,874 units, registering an increase of two-fold over 88,391 units in the preceding fiscal.

Home-grown auto major Tata Motors led the segment with retails of 15,198 units and a market share of 85.37 per cent in the vertical. The Mumbai-based company’s retail sales stood at 3,523 units in 2020-21. MG Motor India settled into the second place with sales of 2,045 units last fiscal with a market share of 11.49 per cent. It had retailed 1,115 units in the 2020-21 fiscal. Mahindra & Mahindra and Hyundai Motor India stood at third and fourth places with dispatches of 156 and 128 units respectively, both settling for a market share of less than 1 per cent. M&M and Hyundai had sold 94 and 184 units respectively in the 2020-21 fiscal, FADA data said. Source: PTI

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BUSINESS & FINANCE

SWIGGY PARTNERS WITH EV LOGISTICS STARTUP EVIFY TO BUILD AN ELECTRIC DELIVERY ECOSYSTEM IN GUJARAT

Swiggy and EVIFY – a tech enabled EV logistics platform has come together in Surat, Gujarat to help Swiggy- the food delivery giant go completely electric and opt for a sustainable way of delivery. Aims to Cover 80% of prime areas of Surat for last mile delivery.

VIFY is the first electric logistics partner of Swiggy in Gujarat. EVIFY and Swiggy’s partnership aims to enable food and grocery delivery through electric vehicles in the city of Surat. This partnership is aligned with Swiggy’s proof of concept to cover carbon reduced deliveries through EVs in the coming years. Under this partnership, EVIFY will be responsible for offering a full stack EV delivery infrastructure including delivery personnel, charging infrastructure as well as EVs with tech logistics support. The collaboration is a green initiative aimed at conserving the environment by significantly reducing carbon emissions, and the progression to EVs is a vital step in that direction. The number of fleet sizes with Swiggy at the moment is between 20-25 covering prime locations in Surat. EVIFY will also take charge of extra Electric vehicles as backup. The platform has set up a charging hub for Swiggy in the middle of the city for charging and parking of EVs. Battery swapping is also possible at this hub to provide more up-time to the electric vehicles.

Talking about the collaboration, Devrishi Arora, Founder, EVIFY said, “We are excited to embark on the “green journey” with Swiggy. This partnership will enable Swiggy to deliver better while also saving the planet. We are thrilled that Swiggy and EVIFY represent and share the same vision of making green deliveries possible in every city in India. The use of EVs for deliveries is also expected to reduce delivery operations cost by up to 40%.”

Swiggy has been on a massive green mission for some time, its recent collaborations with EV players in 2Ws, battery charging and swapping infrastructure is in line with their ambitious plans of switching completely to EVs by 2025. Swiggy aims to cover 8 lakh kilometres a day in EVs by 2025 and cut down vehicle running costs by 40 percent. Partnering with EVIFY comes at a time when Swiggy wants to strengthen its hold in tier 2 tier 3 cities for food/ grocery deliveries.

Talking about this partnership, Vinay Kumar, Cluster Operation Head, Swiggy (Sales & Operations, Gujarat) said, “Saving the planet is the need of the hour. At Swiggy, we are happy to take a step towards sustainability. With EVIFY, we plan to deliver our food through Electric Vehicles and do our bit for the society”. EVIFY’s goal is to lead and transform India’s D2C/FMCG/Ecommerce last mile delivery to be electric and environment benign. Throughout the process, they hope to improve the EV value chain through ethical practices that emphasise equality and sustainability. The company also intends to use solar power to charge their EVs and to begin Green Warehousing in the future. EVIFY has already achieved 1,25,000+ green kms and 30,000+ green deliveries through March 31, 2022, thereby saving approx 10,000kg Co2 emission in the environment. In near future, EVIFY is hoping to expand this partnership to other cities such as Vadodara, Ahmedabad, and Rajkot. With a focus on hiring women driver partners, technology support for client partners, and a conscious effort to go carbon negative, the platform is eyeing towards reimagining the EV logistics landscape. EVIFY intends to upscale its platform more extensively by adding Geofencing, customised BMS, telematics, client insights and driver & fleet management. Source: PTI

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APRIL 2022

BUSINESS & FINANCE

HERO ELECTRIC, ELECTRICPE COLLABORATE TO EXPAND ACCESS TO CHARGING INFRASTRUCTURE ACROSS INDIA

The charging point network will be nestled in residential complexes, offices, malls, and other establishments, hence mitigating the range anxiety issue. ith 2 million electric vehicles estimated to be plying the roads by 2026, building the charging infrastructure for EVs has become paramount. Addressing the infrastructure demand, Hero Electric, India’s No.1 electric two-wheeler company, announced its partnership with ElectricPe, India’s most trusted EV charging platform, to set-up charging points pan-India for its customers. The collaboration entails Hero Electric riders to access ElectricPe’s charging network, as the company recently committed to setting up 1,00,000 charging points by the end of this year. The charging point network will be nestled in residential complexes, offices, malls, and other establishments, hence mitigating the range anxiety issue. The alliance will help strengthen the charging network and propel EV adoption across the country.

Speaking on the collaboration, Mr. Sohinder Gill, CEO, Hero Electric, said, “A robust charging network is crucial for the growing EV sector for faster adoption of EVs across the segment. This association will provide a seamless charging and EV riding experience to customers by easing the accessibility through ElectricPe’s charging points that are getting installed on a large scale across the country. With our vision and commitment to advancing the growth of EVs, we are working rigorously to scale up the charging infrastructure. We are confident that the partnership will aid in sustaining the push towards EVs and facilitate a smooth transition towards clean and green mobility solutions.”

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Our goal from day one has been to help make the transition to electric mobility smooth by making it inclusive and convenient for consumers pan-India for their varied commuting activities. In line with this, we are thrilled to partner with the biggest players in India – it validates the trust we bring to the market. The association with Hero Electric will further our goal to bring clean and affordable access to charging to a billion Indians, right at their doorstep, said Avinash Sharma, Co-Founder & CEO, ElectricPe. ElectricPe is a B2C EV charging and demand generation app that offers EV users a one-stop platform to access EV charging points, which also tracks real-time usage, ensuring a trusted network for users. Founded in May, 2021 by Avinash Sharma and Raghav Rohila, the company makes accessing and using charging points simple, seamless, and efficient. Committed to delivering the best experience to their consumers, Hero Electric continues to pioneer efforts to accelerate a robust charging network by setting up junctions at local kirana stores and other common zones to ease EV charging for consumers. Source: PTI

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RENEWABLE ENERGY

STATUS OF IMPLEMENTATION OF NATIONAL MISSION FOR ENHANCED ENERGY EFFICIENCY (NMEEE)

Various programmes introduced under Market Transformation for Energy Efficiency (MTEE) for the promotion of energy efficient products in the market The current status of the implementation of the National Mission for Enhanced Energy Efficiency (NMEEE) and various schemes under this including the Perform, Achieve and Trade (PAT) scheme and Market Transformation for Energy Efficiency (MTEE) is as under: NATIONAL MISSION FOR ENHANCED ENERGY EFFICIENCY (NMEEE):- National Mission for Enhanced Energy Efficiency (NMEEE) is one of the eight missions under the National Action Plan on Climate Change (NAPCC). Perform, Achieve and Trade (PAT) is the flagship programme under the mission implemented by Bureau of Energy Efficiency (BEE) under the aegis of Ministry of Power. PAT scheme aims at reducing Specific Energy Consumption (SEC) i.e. energy use per unit of production for Designated Consumers (DCs) in energy intensive sectors, with an associated market mechanism to enhance the cost effectiveness through certification of excess energy saving which can be traded. The excess energy savings are converted into tradable instruments called Energy Saving Certificates (ESCerts) that are traded at the Power Exchanges. Central Electricity Regulatory Commission (CERC) is the market regulator for trading of ESCerts and Power System Operation Corporation Limited (POSOCO) is entrusted with the responsibility of the Registry. The two Power Exchanges such as India Energy Exchange (IEX) and Power Exchange India Limited (PXIL) provide the trading platform where the Designated Consumers (DCs) who fall short of their compliance, bid for purchase of ESCerts. PAT Scheme is implemented in cycles of 3 years each where the Designated Consumers (DCs) are assigned SEC reduction targets. Upon verification of their performance in the assessment year by third party verifying agencies, the issuance or obligation to purchase ESCerts is carried out by BEE after scrutiny of the performance. PAT Cycle –I : PAT cycle –I aimed at reducing the SEC of 478 Designated Consumers in 8 sectors viz. Aluminum, Cement, ChlorAlkali, Fertilizer, Iron & Steel, Paper & Pulp, Thermal Power Plant and Textile. Implementation of the first cycle of PAT had resulted in energy savings of 8.67 million tonnes of oil equivalent (MTOE) and translating into emission reduction of about 31 million tonnes of CO2. PAT Cycle –II : PAT Cycle II was notified with effect from 1st April, 2016 and was completed on 31st March 2019. Under this cycle, SEC reduction targets were notified to 621 DCs from 11 energy intensive sectors (eight sectors and three new sectors namely Refineries, Railways and DISCOMs). Implementation of PAT cycle -II has resulted into total energy savings of about 14.08 MTOE translating into avoiding emission reduction of 66.01 million tonne of CO2. PAT Cycle III : PAT cycle-III commenced with effect from 1st April 2017 after the decision of notifying PAT scheme on a rolling basis was taken. PAT cycle -III aimed to achieve an overall energy consumption reduction of 1.06 MTOE for which targets were notified to 116 Designated Consumers from six sectors viz. Thermal Power Plant, Cement, Aluminium, Pulp & Paper, Iron & Steel and Textile. PAT Cycle –III was completed on 31st March 2020 and implementation of this cycle has resulted in energy savings of 1.745 MTOE.

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PAT Cycle IV : PAT cycle –IV commenced with effect from 1st April 2018. A total of 106 DCs with an estimated energy consumption reduction target of 0.6998 million tonnes of oil equivalent were notified. These DCs were from 8 sectors consisting of 6 existing sectors of PAT cycle -I and two new sectors namely Petrochemicals and Commercial Buildings (Hotels). The assessment year of these DCs was April –July 2021 which was affected by the outbreak of the Pandemic due to COVID19 and thus was extended to April –July 2022 vide notification S.O. 3510 (E) dated 27th August 2021. PAT Cycle V : PAT cycle –V commenced with effect from 1st April 2019. Under PAT cycle – V, 110 DCs from the existing sectors of PAT i.e. Aluminum, Cement, Chlor-Alkali, Commercial Buildings (Hotels), Iron & Steel, Pulp & Paper, Textile and Thermal Power Plant were notified. The estimated energy consumption of these DCs is 15.244 MTOE and it is targeted to get a total energy savings of 0.5130 MTOE. PAT Cycle –VI : PAT Cycle-VI commenced with effect from 1st April 2020. Under PAT Cycle-VI, 135 DCs from six sectors, i.e. Cement, Commercial buildings (hotels), Iron and Steel, Petroleum Refinery, Pulp and Paper and Textiles, were notified. With implementation of PAT cycle –VI, it is expected to achieve a total energy savings of 1.277 MTOE. These 135 DCs are under process of implementation of various energy efficiency measures to meet their notified targets. PAT Cycle –VII : PAT cycle –VII has been notified in October 2021 for the period 2022-23 to 2024-25 wherein 509 DCs have been notified with overall energy saving target of 6.627 MTOE. Market Transformation for Energy Efficiency (MTEE): MTEE aims for accelerating the shift to energy efficient appliances in designated sectors through incentives and innovative business models. Under MTEE, the following programmes were introduced for the promotion of energy efficient products in the market:Bachat Lamp Yojana (BLY): The programme was developed for replacement of inefficient bulbs with Compact Fluorescent Lamps (CFLs). BLY involved support to LED deployment under “Unnat Jyoti by Affordable LEDs for All (UJALA)” by providing technical assistance to partner agencies such as Energy Efficiency Services Limited (EESL) and Rural Electrification Corporation (REC). Under BLY, 29 million bulbs were replaced with CFL resulting into energy saving of 3.598 billion units/ year. Super-Efficient Equipment Program (SEEP): This programme was designed for market transformation of super-efficient appliances by providing financial stimulus innovatively at critical point/s of interventions.

APRIL 2022

RENEWABLE ENERGY STEPS BY GOVERNMENT TO INCENTIVIZE DOMESTIC MANUFACTURING OF RENEWABLE ENERGY SYSTEMS In order to incentivize domestic manufacturing of Renewable Energy systems, the Government has taken a number of steps, including:

SOLAR ENERGY:

WIND ENERGY:

Modified Special Incentive Package Scheme (M-SIPS) Scheme of Ministry Government have put in place a system of Reof Electronics & Information Technology. vised List of Models and Manufacturers, and only equipment manufactured by manufacturers in the Production Linked Incentive (PLI) Scheme for High Efficiency Solar PV list is allowed to be used for Wind Energy ProjModules. ects. It also mandates that Hub and Nacelle asPreference to ‘Make in India’ in Public Procurement in Renewable Energy sembly / manufacturing facility shall be in India. More than 70 percent of the wind equipment is Sector. manufactured in India. Domestic Content Requirement (DCR) under schemes such as CPSU This information was given by Shri R.K Singh, Phase-II, PM-KUSUM, Solar Rooftop Phase-II, etc. Union Minister for Power and New and RenewImposition of Basic Customs Duty on import of solar PV cells & modules. able Energy in a written reply in Rajya Sabha. Discontinuation of Customs Duty Concession benefits.

HIGH SCHOOLS IN ODISHA’S GANJAM TO BE ILLUMINATED WITH RENEWABLE ENERGY All government-run high schools in Odisha’s Ganjam district will soon be illuminated with electricity generated from renewable energy.

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he district administration has taken an initiative to make the high schools energy-independent by installing solar panels, Ganjam Collector Vijay Kulange said. The installation is set to be done by a Noida-based firm and likely to be completed in the next six months. There are 535 government high schools in the district, officials said. Around Rs 9 crore will be spent under the project and expenditure will be met through the corporate social responsibility funds of different firms and contribution of the ‘Mo School’ (my school), an initiative to revamp the government and state-aided schools in Odisha.

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The solar units will provide 2 kW and 4 kW of energy in small and big high schools respectively, according to the sources. They claimed that Ganjam might be the first district in the country to have all government high schools covered under renewable energy when the project is complete. The solar panel will help the schools in getting uninterrupted power supply and reducing the expenditure on electricity bills, District Rural Development Agency project director Shinde Dattatraya Bhausaheb said. The power bills have gone up due to the use of interactive panels in smart classes and computers in the e-libraries in all the high schools that have been transformed under a scheme. The solar panels can withstand a wind speed of 100 km per hour during a cyclone. It is also easy to dismantle within 10 minutes if needed, Bhausaheb said. The project will also create awareness among students on the use of renewable energy, the district collector added. Source: tribuneindia

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RENEWABLE ENERGY HINDUSTAN ZINC ENTERS INTO LONG-TERM CAPTIVE RENEWABLE POWER DEVELOPMENT PLAN, WITH A CAPACITY OF 200MW In line with Prime Minister Narendra Modi’s vision of making India’ Net Zero’, Hindustan Zinc has joined the global movement of leading companies that are aligning their business to limit global temperature rise to 1.5C above preindustrial levels and reach net-zero value chain emissions by no later than 2050.

industan Zinc has set an ambitious target for a 40% reduction in carbon footprint by 2030 and achieving Carbon Neutrality by 2050 by transitioning towards renewable energy. Towards this goal, Hindustan Zinc is happy to announce that the company has approved the proposal for entering a long-term group captive Renewable Power development plan up to a capacity of 200MW. This project will be built under Group Captive norms and Build Own Operate (BOO) basis under a Special Purpose Vehicle (SPV), in which the Company will own 26% of the equity with contributions up to Rs 350 crore. This SPV is expected to start delivering the power within 24 months of the signing of the Power Delivery Agreement (PDA). It is in line with Hindustan Zinc’s strategic objective of reducing dependence on conventional sources of energy & transitioning from thermal power to Renewable power, thereby reducing GHG emissions of its operations. This reaffirms the company’s proactive approach to sustainability which will go a long way toward maintaining the leadership position in Dow Jones Sustainability Index.

Commenting on the development, Mr Arun Misra, CEO said, “I am elated that we are marching ahead in our ESG roadmap for the development of renewable power supply up to 200 MW. Hindustan Zinc stands committed to decarbonising its operations and transitioning to the production of Green Products of zinc and lead. We remain proactive towards investing in our climate change initiatives & thereby progress on our journey of net zero by 2050.”

INDIA HOSTS GLOBAL MINISTERIAL MEETING ON RENEWABLE ENERGY Energy experts from across the world discussed ways to scale up innovation and use of technologies for transition towards clean energy at the Clean Energy Ministerial meeting.

nergy experts from across the world discussed ways to scale up innovation and use of technologies for transition towards clean energy at the Clean Energy Ministerial meeting which began. India is hosting the Clean Energy Ministerial (CEM), a forum of 29 countries, which will conclude on April 8, a power ministry statement said. According to the statement, the meeting is being organised to review various work streams in clean energy policies. The meeting will also be used to prepare the agenda for the upcoming Clean Energy Ministerial meeting in September 2022.

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Topics such as ”scaling-up clean energy innovation and actions – investment opportunities”, green steel and hydrogen were part of the discussion. The government of the India and the United Kingdom lead the plenary dialogue on the future of energy transition. CEM promotes policies and programmes that advance clean energy technology through sharing of knowledge and best practices with a focus on transition to a global clean energy future. Source: PTI

APRIL 2022

RENEWABLE ENERGY GE AWARDED CONTRACT BY RENEW POWER TO HELP DEVELOP RENEWABLE ENERGY ZONES IN INDIA The contract is part of a planned interstate-based evacuation infrastructure that will create a 66.5 GW renewable energy zone in southwestern India. GE will build two 400 kV gas-insulated substations for ReNew Power in Karnataka. This is the third contract for GE’s Grid Solutions business with ReNew Power, demonstrating ReNew Power’s confidence in GE’s in-country advanced technology and service capabilities.

E’s Grid Solutions business [NYSE:GE] announced that it has been awarded a contract by ReNew Power Pvt. Ltd., India’s leading company in terms of total generation capacity, to build two 400 kV substations in the southwest state of Karnataka, India – a 400/220 kV air-insulated substation in Koppal, and a 400 kV gas-insulated substation in Narendra. The contract also includes the supply of two 125 MVAR 400 kV reactors for each substation. GE’s multi-million dollar contract with ReNew Power is part of the Narendra-Koppal transmission scheme. The scheme in turn is part of the planned interstate-based evacuation infrastructure that will create 66.5 GW of renewable energy zones in India. The Narendra-Koppal project, involving the evacuation of 2.5 GW from wind energy zones in Karnataka, is part of the first of three phases of the overall project.

This is Grid Solutions business’ third substation project with ReNew Power. “We are delighted by ReNew Power’s continued confidence in our innovative technology, as well as engineering and service capabilities,” said Pitamber Shivnani, Regional Leader for Grid Solutions in South Asia . “We look forward to helping accelerate the energy transition in India by helping to evacuate more renewable energy from the southwestern part of the country with these substations.”

ReNew Power is committed to leading India’s transition away from fossil fuels and meeting the rising demand for energy in a sustainable manner by delivering cleaner and smarter energy choices and thereby reducing India’s carbon footprint. We are delighted to partner with GE’s Grid Solutions for bringing power efficiently and reliably for our customers through their state-of-the art grid technology, said Ajay Bhardwaj, President- New Business of ReNew Power.

GE is expected to complete its work in three phases— two in December 2022 and one in August 2023. All products are being manufactured in India, for India. With a persistent focus on decarbonization and round-the-clock power, the Indian energy landscape is undergoing significant positive transformation. The country has committed to install 175 GW of renewable energy by 2022 and more than double its non-fossil fuel target to 450 GW by 2030. The country has already achieved a milestone of 100 GW of installed renewable energy capacity, as of September 2021. Presently, India ranks 4th in the world in terms of installed renewable energy capacity. It ranks 5th in terms of solar capacity and 4th in terms of wind capacity. Source: gegridsolutions

APRIL 2022

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RENEWABLE ENERGY MICROSOFT CHILE ANNOUNCES THAT ITS DATA CENTER WILL USE 100% RENEWABLE ENERGY FROM AES ANDES The new Chilean datacenter region will support Microsoft’s sustainability commitment, including the goal to switch to 100% renewable energy supply in Microsoft data centers by 2025.

icrosoft Chile reported that the datacenter announced in December 2020, as part of the Transforma Chile #ReactivaciónDigital plan, will use completely renewable energy thanks to a renewable energy purchase agreement with AES Andes S.A. , which will allow Microsoft customers to reduce their own carbon footprint, while accelerating their digitization. The project includes wind and solar energy. This announcement is in line with the company’s sustainability commitment, which include a goal to switch to 100% renewable energy supply in Microsoft data centers by 2025. It is also part of an ambitious goal to reduce and remove the company’s entire carbon footprint. In fact, by 2030 Microsoft will be carbon negative, and by 2050 Microsoft will remove from the environment all the carbon that the company has emitted, directly or through electrical consumption, since it was founded in 1975. “In Chile we are fully committed to achieve Microsoft’s sustainability commitment and our datacenter is an important initiative for that. The project with AES Andes to use wind and solar energy is the first initiative and we are working on the other fronts.” said Sergio Rademacher, General Manager of Microsoft Chile.

We are very honored and proud to help and accompany Microsoft in meeting its global sustainability goals. This contract is very innovative, involving multiple technologies and was tailor-made to meet Microsoft’s requirements. We are all working together to accelerate the future of energy, said Ricardo Falú, CEO of AES Andes. Falú added that power supply will come from two projects that will begin construction soon: a solar plus battery project located in the Antofagasta region and a wind project located in the Biobío region. Transforma Chile #ReactivaciónDigital plan is the company’s most significant investment in its 30 years in the country. Delivered from datacenters in Chile, the Microsoft cloud will increase remote work and learning communications through services such as Microsoft Teams, improve reliability and scalability of services from Chilean companies and will empower individuals and the public and private sectors to innovate with the latest developer tools. This datacenter is based on the use of Microsoft Azure, the company’s cloud and offers the latest advances in collaboration, productivity and developer tools for companies and individuals, from citizens to professional developers, to innovate, all with advanced data security, privacy and more than 100 compliance certifications.

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This gives anyone the opportunity to create using cloud services and capabilities spanning computing, networking, databases, analytics, AI, and the Internet of Things (IoT); Microsoft 365, which enables people and businesses to connect, collaborate, work remotely, and learn online with innovative productivity tools; and Dynamics 365 and Power Platform, with which organizations can rapidly create and manage critical business solutions at scale with intelligent business applications. This region will meet all the standards of the new datacenters that Microsoft has in the world. For example, the recent data center region in Arizona reduced the intensity of using water and replenishing it in a high-stress region. For this, “zero water” concept will be used for cooling for more than half a year, thanks to a method called adiabatic cooling, which uses outside air instead of water. Likewise, in India, the building will support 100% on-site wastewater treatment and reuse for landscaping, washing and makeup of cooling towers. It is important to notice that the advantage of the Azure datacenter design is redundancy: the information is automatically duplicated and is present on more than one physical disk. This means that, in the event of a natural disaster that deactivates a node, no data is lost since the data is stored in more than one place, presenting redundancy within Chile or even outside Chile. This announcement reinforces Microsoft’s commitment to protecting the country’s sustainability. The Chilean datacenter region will join Microsoft’s global cloud infrastructure, the largest in the world, and will offer local companies a competitive advantage in all of Chile’s key industries, such as energy, agriculture, finance, health, travel and manufacturing, by providing faster access to cloud services, as well as the ability to store data within the country. In addition, it will improve the reliability and scalability of services for Chilean companies and empower individuals and the public and private sectors to innovate with the latest developer tools. At the same time, Microsoft has developed a robust training plan for more than 180,000 Chileans and an Advisory Council made up of local leaders to create inclusive opportunities to succeed in the digital economy. Source: aesandes

APRIL 2022

RENEWABLE ENERGY UNIVERSITY OF SYDNEY TO BE POWERED BY 100% RENEWABLE ELECTRICITY IN NEW PARTNERSHIP WITH SNOWY HYDRO AND RED ENERGY The University has signed a five-year contract with Red Energy, backed by the mighty Snowy Hydro, to source 100 percent of its electricity in NSW from renewable sources. Once the contract begins, the University’s activities will be powered by solar energy.

s well as operations across campuses and University-run student accommodation, the contract will cover energy supply for Moore College, Sancta Sophia College, St Andrew’s College, St Paul’s College, the Women’s College and Wesley College. The positive impact will be in excess of removing 31,200 cars from the road. The move brings the University a step closer to its target of net zero emissions by 2030.

Vice-Chancellor and President, Professor Mark Scott said the shift to renewable electricity reflected the University’s deep commitment to a more sustainable future. “We are making the move to 100 percent renewable electricity three years before our target of 2025,” he said. “This agreement will power our research and teaching while reducing emissions. We are delighted to be working together with Snowy Hydro and Red Energy to achieve the ambitious energy targets set out in our sustainability strategy. “We know reducing emissions to combat climate change is a priority for our staff and students and we are committed to embedding sustainability in every aspect of University life.”

Paul Broad, Managing Director and CEO of Snowy Hydro, which owns Red Energy, welcomed the partnership and the role it will play as Australia’s economy decarbonises and transitions to renewables. “At Snowy Hydro, we have lived, breathed and delivered renewable energy to Australians through the mighty Snowy Scheme for generations. We are committed to continuing this legacy and leading the charge to a renewable energy future by working with large institutions like the University of Sydney. “Combining our contracted wind and solar energy with our on-demand hydro assets allows us to provide reliable and 100 percent renewable electricity to the University.”

The switch to renewable electricity is one of a range of initiatives under the University’s sustainability strategy. The institution has committed to sending zero waste to landfill by 2030 and to the eradication of single-use plastic on campus by 2025. The University is working to integrate sustainable practices across operations, teaching and research, with steps including the Gelion solar smart bench roll-out last year and the recent installation of a biodigester to process organic waste into compost.

HOW UNIVERSITY’S RENEWABLE ENERGY SUPPLY WILL WORK Power consumed by the University of Sydney will be matched by generation from a NSW solar farm or, in certain instances, other renewable facilities in the state. The associated Large Scale Generation Certificates will be surrendered by Red Energy to evidence that renewable generation has been exported into the National Electricity Market at quantities equivalent to the University’s load. Source: snowyhydro

APRIL 2022

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RENEWABLE ENERGY

TAMIL NADU GOVERNOR CALLS FOR PRODUCING MORE CLEAN AND GREEN ENERGY

Tamil Nadu Governor R N Ravi called for producing more clean and green energy, while stressing the need to save earth from “extensive damage and exploitation.”

“The country is striving to reduce its dependence on fossil fuel and we have a target to achieve 500 GW clean and green energy by year 2030,” he said in his address after inaugurating “SAKSHAM – 2022”, an oil and gas conservation campaign, conducted by Petroleum Conservation Research Association (PCRA) under the aegis of Ministry of Petroleum and Natural Gas, a Raj Bhavan release here said.

The country is striving to reduce its dependence on fossil fuel and we have a target to achieve 500 GW clean and green energy by year 2030, he said in his address after inaugurating “SAKSHAM – 2022”, an oil and gas conservation campaign, conducted by Petroleum Conservation Research Association (PCRA) under the aegis of Ministry of Petroleum and Natural Gas, a Raj Bhavan release here said.

nergy is the key driving force that is very essential for a nation’s growth and particularly for aspirational India, which is moving ahead with confidence and commitments, the release quoted Ravi as saying. “The need of today is to save our earth from extensive damage and over-exploitation, de-forestation, pollution of planet and waterways and so on,” he said while pointing out that Tamil Nadu tops in production of wind energy. “The State needs to catch up in solar energy production.” “With our cultural spirituality of the world as a family, we should produce more and more clean and green energy. Our Prime Minister has set the target of zero carbon energy by the year 2030. In this ambitious journey our young generation has to play the critical role by creating more awareness among the masses and also by innovations and enterprises in clean and green energy production,” he added. Source: PTI

INDIA ADDS RENEWABLE CAPACITY OF 13.5 GW IN 2021-22 Rajasthan (5,806 MW) and Gujarat (2,469 MW) added the highest capacity in these 12 months, accounting for 61 per cent of total capacity addition. Total renewable sector capacity, excluding small hydro and biomass has now reached 96,223 MW.

ndia added 13.5 GW of renewable energy capacity in 2021-22, which is 128 per cent higher than that in 202021, a statement said. India added 10.21 GW of utility scale solar capacity, 1.11 GW of wind power and 2.22 GW of rooftop solar capacity in FY 2021-22, consultancy BRIDGE TO INDIA said in the statement. Rajasthan (5,806 MW) and Gujarat (2,469 MW) added the highest capacity in these 12 months, accounting for 61 per cent of total capacity addition.Total renewable sector capacity, excluding small hydro and biomass has now reached 96,223 MW.

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Share of total renewable power in generation (excluding large-hydro) in FY2022 also reached a high of 12.82 per cent (10% in FY 2021).Vinay Rustagi, Managing Director, BRIDGE TO INDIA, said, “Renewable sector has shown remarkable resilience in the face of multiple challenges. But it is important to acknowledge that the record high numbers in FY 2022 came mainly because of COVID spillover effect from the previous year.” The BRIDGE TO INDIA is a renewables-focused consulting company. Source: PTI

APRIL 2022

RENEWABLE ENERGY

HOW US TREES ARE POWERING EUROPE’S RENEWABLE ENERGY GOALS The European Union in 2020 sourced 21.3% of its energy from renewables, surpassing its 2009 goal. With most of the continent’s energy came from oil and petroleum products, its announcement was one of the first ambitious global promises to address climate change. Within the broad range of renewable energy sources Europe relied upon, one source accounted for nearly half of the continent’s renewable supply: biomass.

roadly, biomass is any organic material used as fuel and can include manure, agricultural or industrial waste, garbage, and most prominently, wood. Burning wood for fuel is nothing new: As countries transition away from coal and other fossil fuels, the popularity of biomass increases, leading to a spike in demand for wood pellets. Stacker cited data from the International Trade Center, Eurostat, and the Southern Environmental Law Center to examine how the growing wood pellet industry in the U.S. is fueling European energy, despite its controversial environmental reputation.

The 1997 Kyoto Protocol first considered wood pellets a carbon-neutral energy source. The world was beginning to think more seriously about climate change at the time, and pellets became an easy substitute to transition away from coal-powered facilities. Woody biomass companies replant trees while harvesting timber, allowing young forests to absorb carbon while justifying biomass as a renewable energy source. But biomass’s carbon neutrality is not immediate: It takes years for new saplings to meet the carbon-absorption capacity of older trees being harvested.

APRIL 2022

Meanwhile, wood pellets are burned and emit the CO2 once stored by the wood. The resulting carbon debt can take decades for newly planted trees to offset. Scientists also note that considering wood pellets carbon-neutral overlooks emissions from the supply chain. An analysis from the Environmental Integrity Project published in 2018 found that 21 wood pellet facilities exporting to Europe emitted 16,000 tons of air pollutants annually. Transportation in cross-Atlantic vessels is another phase that often goes unaccounted for in woody biomass’s carbon calculations. Scientists have begun to question the sustainability of woody biomass, and whether the displacement of one fossil fuel is now causing the disruption of forest ecosystems—all while still emitting greenhouse gases. Read on to learn about the complexities of renewable energy. Source: PTI

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RENEWABLE ENERGY INDIA MAY MISS 2030 RENEWABLE ENERGY TARGETS AS UP, PUNJAB, HARYANA LAG, SAY EXPERTS India is falling behind on delivering the targets of accelerating its non-fossil energy capability to 175 gigawatts by 2022 and 500 GW by 2030 as many states, together with Uttar Pradesh, Punjab and Haryana are lagging on this entrance, local weather and energy experts stated

he feedback have been made throughout a webinar held by Climate Trends, a Delhibased local weather communications initiative, on how the northern energy grid can speed up the transition and assist India meet its 2030 Glasgow commitments whereas contributing to limiting international warming to 1.5 levels Celsius. The webinar was held shut on the heels of the discharge of the Intergovernmental Panel of Climate Change (IPCC)’s Working Group III report on Mitigation lately.

We are falling behind on delivering the targets of 175GW by 2022 and 500 GW by 2030 because while some states are on track others are lagging, stated Aditya Lolla, Senior Electricity Policy Analyst for Asia at energy assume tank Ember. He stated within the southern area, Telangana has achieved its renewable energy goal and within the north, solely Rajasthan is forward and has achieved its 2022 goal. “But there are states like Uttar Pradesh which have not even achieved 30 per cent of their target. If I compare these two states, both have a 14 GW target for 2022. While Rajasthan has achieved 17GW currently, Uttar Pradesh is lagging at 4GW,” Lolla stated. The story is analogous in Uttarakhand (1 GW), Punjab (2GW) and Haryana (1GW). The pro-renewables states are making earnings with this transition, just like the Rajasthan Renewable Energy Corporation Ltd made a revenue of Rs 65 crores final yr, resulting from their RE adoption, he stated. According to the IPCC, to attain 1.5 levels C, the world should cut back annual carbon dioxide emissions by 48 per cent by 2030 and attain internet zero by 2050. This signifies that governments might want to quickly introduce insurance policies and measures for emissions to peak by 2025. In the final local weather summit in Glasgow, Prime Minister Narendra Modi introduced enhanced local weather targets for India, together with rising its non-fossil energy capability to 500 GW and assembly 50 per cent of its energy necessities via renewable energy by 2030. To obtain this capability, India wants to put in 42GW of renewable energy yearly. Experts really feel that India will miss its 500GW of non-fossil gasoline energy goal as a result of it’s lagging in rooftop photo voltaic installations.

“This is especially as a result of totally different states have responded in another way to the goal. We have achieved solely 54 GW of the 100 GW goal for photo voltaic. “Wind energy has additionally slowed down within the final couple of years. This is especially as a result of the facility buy agreements in some states bought cancelled by DISCOMS… This has occurred in Uttar Pradesh, Gujarat, and Karnataka. “To provide stability and achieve renewable energy targets, we first need a consistent policy across all the states. After this, state governments need to solve their local problems,” Lolla defined.

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Parth Bhatia, Associate Fellow, Centre for Policy Research and Contributing Author on IPCC WGIII report, Chapter 13 – Policies and Institutions, stated the most recent IPCC report said that the majority electrical energy ought to come from low or zero fossil gasoline sources to attain the 1.5 levels Celsius goal. “It signifies that all coal-based energy plant belongings turn out to be a stranded asset threat by 2030 as transitions will speed up. “The goal is to avoid locking in high-carbon and wasteful energy systems for the long-term as the window to decarbonise is extremely short now. Coal becomes an economic liability and risk in this scenario,” he stated. Experts really feel that to offer stability and obtain renewable energy targets, India first wants a constant coverage throughout all of the states. After this, state governments want to unravel their native issues and there’s a must create an financial system the place the personal sector sees a possibility. They concurred that India might want to deal with a battery of options and coverage adjustments on each the demand and provide sides. If the northern grid has to decarbonise, adjoining states such as Uttar Pradesh, which produces nearly 10 per cent of the nation’s electrical energy share want to extend their renewable energy uptake, experts stated. “In India, we have now seen a stark distinction rising amongst states. The developed states are the place the penetration and transition are taking place. These are the states which can be driving the renewable energy push.

Many north Indian states are yet to catch up. States like Uttar Pradesh have great potential but there is a need for state-level policy to give the push. Delhi has a big role to steer the transition in the northern grid as they have the highest demand and will depend largely on neighbours to get their energy. stated Manish Ram, Researcher, Lappeenranta-Lahti University of Technology, Finland. Source: PTI

APRIL 2022

FEATURED CALIFORNIA EV COMPANY FISKER SELECTS HYDERABAD AS HEADQUARTERS FOR INITIAL OPERATIONS IN INDIA

Hyderabad in Telangana State selected as headquarters for Fisker’s operations in India. Hon’ble Minister for IT and industries K.T. Rama Rao visited Fisker’s Manhattan Beach, California HQ recently. Fisker US management is preparing to visit Telangana. The Hyderabad office will contribute to software and virtual vehicle development. Recruiting and hiring for local employees is underway. Fisker Inc. (NYSE: FSR) (“Fisker”) – passionate creator of the world’s most sustainable electric vehicles and advanced mobility solutions – has established its India headquarters in the southern city of Hyderabad, Telangana State.

“Our expansion into India represents both a strategic market opportunity and a significant boost to our global engineering capabilities,” Fisker Chairman and CEO Henrik Fisker said. “We have already started local hiring in India and expect our new team in Hyderabad to be fully operational and engaged on multiple product programs within weeks. Our talent pool in India will help us pave the way for the launch of Fisker Ocean and Fisker PEAR in India.”

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isker Vigyan India Pvt Ltd, the company’s operating entity in Telangana, will focus on software development and embedded electronics, virtual vehicle development support functions, data analytics, and machine learning. The Hyderabad office will work alongside the Fisker engineering and product development facilities in California, USA.

APRIL 2022

“In the global race for leading technical talent, we see our new operation in Hyderabad as a major strategic advantage,” Mr. Fisker added. “I would also like to thank the State of Telangana for their support and enabling us to make a fast start as we set up our initial operations.. We are excited to tap into the growing talent pool in India.” Fisker currently has a global team of over 450 employees, with new hiring in US, Europe and India projected to boost that number to over 800 by the end of 2022, with 200 potential jobs being created in India. Fisker will commence production of the Fisker Ocean SUV on Nov. 17, 2022, at the carbon-neutral factory of Fisker’s manufacturing partner, Magna Steyr, in Graz, Austria. The Fisker Ocean, in Sport trim level, will have an estimated range of 250 miles (EPA test cycle) / 275 miles or 440 kilometers (WLTP test cycle) and feature a sleek, stylish design, as well as innovative automotive technology and a sustainable interior made from recycled materials. The Fisker Ocean Extreme will deliver up to an estimated range of 350 miles (EPA) / 390 miles or 630 kilometers (WLTP). Fisker worked extensively with battery supplier CATL, using two different chemistries, to maximize performance and minimize cost for the Fisker Ocean lineup.

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APRIL 2022

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