Saur Energy Magazine February 2018 by Saur Energy International

SAUR ENERGY I N T E R N A T I O N A L EDITOR MANAS NANDI manas@meilleurmedia.com

LETTER FROM THE EDITOR 2018 CAN BE YEAR OF RECKONING

DIRECTOR MARKETING & SALES PRATEEK KAPOOR prateek@meilleurmedia.com

ASSOCIATE EDITOR NILOY BANERJEE niloy@meilleurmedia.com

SUB EDITOR HARI MAHENDARA hari@meilleurmedia.com

»» India reaches 20 GW.

SUB EDITOR

»» Modi Government Last full budget of the term.

AAQIB JAVEED aaqib@meilleurmedia.com

»» India’s decision on safeguard duty expected.

ASTT. MANAGER MARKETING AMIT ASHISH sales@meilleurmedia.com

DESIGN HEAD ABHISHEK GUPTA

WEB DEVELOPMENT MANAGER JITENDER KUMAR

WEB PRODUCTION BALVINDER SINGH

SUBSCRIPTIONS

»» Trump Imposes 30% duty on imported cell and modules.

»» Chinese Manufacturer Longi Make in India initiative of 500 MW Cell & 500 MW Module line. »» Shri R.K.Singh announced setting up of a $ 350 million solar development fund »» 2nd RE-INVEST meet to be held in April Start Seems To Be Very Fascinating For The Entire Solar Industry Also Ministry of New and Renewable Energy has commissioned a study on “Economic Rate of Return for various Renewable Energy Technologies”. The objectives of the study include: a) economic impact of renewable energy; b) estimation of economic rate of return of various renewable

SHUBHAM GUPTA subscription@meilleurmedia.com

energy technologies; c) comparing economic and financial rate of return;

Saur Energy International is printed, published, edited and owned by Manas Nandi and published from 303, 2nd floor, Neelkanth Palace, Plot No- 190, Sant Nagar,East of Kailash, New Delhi- 110065 (INDIA), Printed at Pearl Printers, C-105, Okhla Industrial Area, Phase 1, New Delhi.

energy technologies. The draft report of the study has been prepared.

Editor, Publisher, Printer and Owner make every effort to ensure high quality and accuracy of the content published. However he cannot accept any responsibility for any effects from errors or omissions. The views expressed in this publication are not necessarily those of the Editor and publisher. The information in the content and advertisement published in the magazine are just for reference of the readers. However, readers are cautioned to make inquiries and take their decision on purchase or investment after consulting experts on the subject. Saur Energy International holds no responsibility for any decision taken by readers on the basis of the information provided herein. Any unauthorised reproduction of Saur Energy International magazine content is strictly forbidden. Subject to Delhi Jurisdiction.

capacity have been installed in the country with financial support of up

and d) estimation of justified level of incentives for select renewable MNRE has proposed to finalize the report through due consultation process, incorporating views/inputs from the relevant stakeholders by 15th of FEB 2018. The Solar Off-grid and Decentralized Applications Programme has also made good progress. So far 63 solar micro grids of 1899 kWp aggregated to 30% of the cost of micro/mini-grids systems for installation in the rural areas of the country. The design capacity of micro grid depends upon the requirement to be catered. Over all the direction seems to be correct. Happy Reading!

ManasNandi manas@meilleurmedia.com

ERRATUM: JANUARY 2018 ISSUE, POLYMER STORY PAGE NO. 54 IMAGE USED WAS FROM RENEWSYS INDIA PVT. LTD.

SAUR ENERGY INTERNATIONAL l FEBRUARY 2018 l VOL 2 l ISSUE 6

CONTENT

MINING

CLEAN ENERGY NATIONAL NEWS

-08

- Chinese Firm to Set Up Mega Solar Plant in Andhra Pradesh

- Cabinet apprised on India-Italy MoU on Renewable Energy

- Rajasthan to Generate 7,000 MW of Solar Energy by 2019 End

- RK Singh Announces $350 Million Fund To Finance Solar Projects

- Longi Solar Approves 1GW Indian Manufacturing Facility

- Tata Power Renewable Energy Commissions 50 MW Solar Plant in Karnataka

- Maharashtra to Purchase 1000 MW Solar Power in 2018

- PM Modi Says India Will Host First Summit of International Solar Alliance

- Exicom Wins “Energy Storage Com pany of the Year” Award at ESI 2018

- Tangedco to Set up 500 MW Solar Power Plant at Kadaladi

- India Need At Least $125 Bn Fund To Achieve Its Rene-wable Goal

SAUR ENERGY INTERNATIONAL l FEBRUARY 2018 l VOL 2 l ISSUE 6

NEELESH GARG DIRECTOR | SAATVIK GREEN ENERGY

INTERNATIONAL NEWS -13 - Brazil Crosses 1 GW solar milestone - SMA Solar Expects Growth in Sales and Earnings in 2018 - NEXTracker Delivers Smart Tracker Technology to Solar Power Plant in North Africa - China is Building Floating Solar Power Plant on Abandoned Coal Mine Area - Florida Power & Light Unveils Four New Solar Power Plants - Netherlands Solar Company to Build Solar Power Plant at Moerdijk - Tesla Begins Solar Rooftop Tiles Manufacturing in Buffalo - IFC to Support Largest Solar Power Plant in Jordan - Hanwha Energy Starts Building 236 MW Solar Plant in U.S. - South Australia Based World's Biggest Solar Plant Achieves Essential Milestone in Development - World Bank Plans ‘Scaling Solar and Storage’ Program - Old Aurora Building Installs Rooftop Solar Panels

‘GIGA – WHAT’

OF STORAGE IN 2018

WHY A PERFORMANCE GUARANTEE IS GUARANTEED UNDERPERFORMANCE SMART GRIDS OVERCOME RENEWABLE ENERGY VARIABILITY AND UNCERTAINTY MARKET GLANCE

-38

- Dealing With Cracks in India's Solar Dreams - Global Concentrated Photovoltaic

SOLAR HOME LIGHTING SYSTEM POWERS RURAL INDIA

(CPV) Market Analysis to 2025: Market is Expected to Reach USD 6.35 Billion

MNRE DRAFT REPORT

-42

PRODUCTS

-54

INNOVATIONS

-56

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NATIONAL NEWS Azure Power Wins 200 MW in SECI Auction Azure Power one of India’s leading independent solar power producers, announced it has won a 200 megawatt (MW) solar power project through an auction conducted by Solar Energy Corporation of India (SECI), a Government of India enterprise and a company with a AA+ debt rating by ICRA, a Moody’s Company. Azure Power will sign a power purchase agreement with SECI to supply power at a tariff of INR 2.48 (~US$ 0.04) per kWh for 25 years. The solar plant will be set up at Bhadla Solar Park in Rajasthan and is likely to be commissioned in 2019. The 200 MW allocation is the largest by SECI in this auction, 80% of the total. Azure Power has a long history of developing and operating solar power plants with SECI. Madras Christian College Farm Installs Solar Power Plant The Madras Christian College will harness most of the energy needs from the sun. A 500-kw solar power plant spread over three acres was commissioned at the college’s farm by US ConsulGeneral Robert G Burgess. Inaugurating the project, Robert G. Burgess, U.S. Consul General, Chennai, said that he hoped the solar power project, which would be regarded as a model project for schools, colleges and hospitals to emulate. “Green Energy is one of the future sources of power to meet large and growing demands of electricity,” he said. The project has also been funded by USAID-ASHA. Jerry C. Mojzis, Agreement Officer, USAID-ASHA, K.M. Mammen, Chairman of the MCC Association and the Board of Directors were present at the launch of the project.

Chinese Firm to Set Up Mega Solar Plant in Andhra Pradesh CETC Renewable Energy Technology Company, a subordinate of China Electronics Technology Group, will set up a mega solar assembling plant in Andhra Pradesh with a venture of $50 million. It has marked a MoU in such manner with the Andhra Pradesh Economic Development Board (APEDB). CETC will make the interest in a Solar PVC Manufacturing park coming up on around 18 sections of land in Sri City in Chittoor locale. This speculation is relied upon to make around 1500 employment. Once the venture is finished, the state government is probably going to acquire $8 million in charges each year. APEDB expressed in an announcement said that the MoU was marked by J. Krishna Kishore, Chief Executive Officer, APEDB and Xin Xiao, Director CETC Renewable Energy Technology Company in New Delhi, on the sidelines of the shade raiser function of CII Partnership Summit to be held in Vishakhapatnam one month from now. Union Commerce and Industries Minister Suresh Prabhu was additionally present. CETC, headquartered in Beijing, is a Fortune Global 500 organization, and CETC, which incorporates 18 national key labs, 10 national research and advancement focuses and a workforce of 1,50,000 representatives, is the biggest electronic aggregate in China. "CETC finds synergies in investing in Andhra Pradesh as the state is embarking on the next phase of industrialization, Andhra Pradesh is poised to catalyze investments in electronics manufacturing owing to robust infrastructure for connectivity, enabling policies, integration with global value chains and a skilled and ready workforce," said Kishore.

Cabinet apprised on IndiaItaly MoU on Renewable Energy

Rajasthan to Generate 7,000 MW of Solar Energy by 2019 End

The Cabinet was apprised of a pact between India and Italy for cooperation in the field of renewable energy. "The Union Cabinet chaired by Prime Minister Narendra Modi has been apprised of the Memorandum of Understanding (MoU) on IndiaItaly Cooperation in Renewable Energy...," an official statement said. The MoU was signed on October 30, 2017 at New Delhi by Anand Kumar, Secretary, Ministry of New and Renewable Energy and Lorenzo Angeloni, Italian Ambassador to India. India and Italy aim to establish the basis for a cooperative institutional relationship to encourage and promote technical bilateral cooperation on new and renewable energy issues. The MoU envisages establishing a Joint Working Committee to review, monitor and discuss matters relation to areas of cooperation. It aims for exchange of expertise and networking of information and helps in strengthening bilateral cooperation between the two countries, the statement added.

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The Bhadla solar park, once fully operational, will generate 2,255 MW, making it “the largest solar park in the world”. It will fuel Rajasthan’s ambitious plan to generate 7,000 MW of solar energy by 2019 end. The park, being developed in four phases, is currently generating 746 MW and phase 3 of 1,000 MW is under implementation, a senior official said. Rajasthan Renewable Energy Corporation Ltd (RRECL) managing director BK Dosi said, “Rajasthan is on course to triple its solar power generation capacity in next two years to 7,000 MW from 2,246 MW at present.” He further said, “A major contributor will be world’s largest solar park at Bhadla, which will have a total capacity of 2,255 MW, and we expect it to be fully commissioned by March 2019.”

NATIONAL NEWS RK Singh Announces $350 Million Fund To Finance Solar Projects

RK Singh, Minister of State for Power and New & Renewable Energy has announced setting up of a $350 million solar development fund to finance solar power projects. Delivering the keynote address at the ministerial plenary session of the International Solar Alliance at Abu Dhabi, Singh congratulated ISA for organising the ISA Forum as its first overseas outreach activity. The ISA hosted a two Day Event ‘International Solar Alliance Forum’ during 17-18th January, 2018 at the Future World Energy Summit (WFES) 2018. During the ISA event an ISA Pavilion was also set up for dissemination of information about ISA and its activities and programmes. The Minister said that that ISA shall help mobilize sufficient funds for solar energy projects. “India has one of the fastest growing Renewable Energy programmes in the World and the country would achieve its target of 175 GW of installed Renewable Energy capacity well before 2020,” Singh said. Shri Upendra Tripathy, Interim Director General of ISA stated that ISA shall stand for translating ‘Action into Transaction’. He also informed that over 100 projects shall be signed by April 2018 under ISA umbrella. The International Solar Alliance is a treaty based international inter-governmental alliance of 121 solar resource rich countries or the sunshine countries lying fully or partially between the Tropics of Cancer and Capricorn.

Longi Solar Approves 1GW Indian Manufacturing Facility

Tata Power Renewable Energy Commissions 50 MW Solar Plant in Karnataka

Longi Solar is working to set up a 1 GW solar PV manufacturing facility in India’s Andhra Pradesh. It will manufacture 500 MW of cells and 500 MW of modules, according to the spokesperson. The facility is expected to be commissioned by Q1 2019 at the latest, and will seek to take advantage of India’s exemption from the recent U.S. solar tariffs, imposed by President Trump last week. Longi Solar has confirmed to become the first Chinese company to set up a solar equipment manufacturing facility in India. The news comes just a month after the company said it would invest $300 million in a 5 GW module facility in China. The new facility, located in Sri City, Andhra Pradesh, will manufacture 500 MW of monocrystalline cells and modules, respectively. The first phase will see a Crore 1,700 (around (US$26.7 million) investment. “The local government will support the project by preferential policies relating to power supply, water supply, taxation, waste-water processing, education/training and international certification for a three year term,” the company was quoted as having said. They add that Longi will expand production capacity “with a big jump to meet India AD/CVD demand,” as well as expected demand from the U.S., following the recent solar tariffs, from which India is excluded.

Tata Power Renewable Energy Ltd. (TPREL), India's largest renewable energy company has commissioned its 50 MW DCR solar plant at Pavagada Solar Park in Karnataka. The project was bagged by the company on 4th April 2016 under the National Solar Mission Phase-II Batch-II Tranche-I State Specific Bundling Scheme. With this development, TPREL's total installed operating capacity now stands at 1664 MW, the company said in a statement. The 50 MW solar plants have been built over 253 acres. Sale of power from solar plant has been tied up under a 25-year Power Purchase Agreement with NTPC Ltd. at a tariff of Rs. 4.84/ unit. The TPREL recently commissioned 25 MW solar plant in Charanka, Gujarat Solar Park - Gujarat,30 MW solar plant in Palaswade in Maharashtra and 100 MW Solar plant at Pavagada Solar park in Karnataka.

Chennai Metro Rail to Install Solar Streetlights at its Staff Quarters In order to maximize the use of renewable energy, Chennai Metro Rail will install 50MW solar streetlights at its staff quarters in Koyambedu. CMRL has invited tenders for the purpose. This will be in addition to installation of such lights at various metro stations and solar panels to be set up to generate 6MW power. According to officials of Chennai Metro Rail Limited (CMRL), a total 35 such lights would be installed with a lithium-ion battery backup in six months after the contractor is chosen. Solar Micro Grids of 1899 Kwp Installed in India As many as 63 solar micro grids of 1899 kilo Watt power (kWp) aggregated capacity have been reported to be installed in the country with financial support from the Ministry of New & Renewable Energy (MNRE), Lok Sabha was informed. Replying to a question on steps taken by Government to explore the solar micro grid model in the country, Power Minister Raj Kumar Singh informed that under the Solar Off-grid and Decentralized Applications Programme, so far 63 solar micro grids of 1899 kWp aggregated capacity have been reported to be installed in the country. Singh informed that Ministry of New & Renewable Energy has provided financial support up to 30% of the cost of micro and mini-grids systems for installation in the rural areas of the country. The design capacity of micro grid depends upon the requirement to be catered.

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NATIONAL NEWS Tangedco to Set up 500 MW Solar Power Plant at Kadaladi The Tamil Nadu Generation

and Distribution Corporation (Tangedco) is planning to install a 500 MW solar power plant at Kadaladi in Ramanathapuram

district with the support of the

Central government. The project is billed as the largest such plant to be established by a power

utility, and will be covered under the Centre’s solar power parks

programme. The total installed

capacity of solar power plants in the State at present is around

2,000 MW. Besides, plants for 1,500 MW are being planned.

The State government had earlier

proposed to set up a 4,000 MW

coal-fired thermal power project at Kadaladi.

India Need At Least $125 Bn Fund To Achieve Its Renewable Goal IIndia will require at any rate $125 billion to subsidize its aspiring arrangement to expand the offer

of sustainable power supply in the nation's matrix by 2022, an

imminent government official

told Reuters, underlining the enormous financing challenge

ahead. To put India's $125

billion prerequisites in setting, worldwide corporate subsidizing

for the solar industry - the world's

quickest developing power source - was a tenth of that sum in 2017 at $12.8 billion as

per a report. In 2015, India said speculation of $100 billion in the seven years to 2022 would be expected to meet its sustainable power source objectives.

Anand Kumar, secretary at the service of the new and

sustainable power source, said venture of at any rate $125 billion would be required.

Maharashtra to Purchase 1000 MW Solar Power in 2018 In a move to support solar energy generation in Maharashtra, Mahavitaran, the power transmission organization of the state government, is intending to buy 1000 MW solar power this year. Offers to buy 1000 MW solar power have been welcomed at Rs 3 for each unit. When contrasted with solar power, thermal power is sold at Rs 5 for each unit, he said. "As of now, the age of sunlight based power is extremely least contrasted with customary energy. This year, the administration is wanting to support solar power age," the authority included. Conditions of Rajasthan, Telangana, Tamil Nadu and Andhra Pradesh are in front of Maharashtra in the age of solar power, the authority included. At the show, the solar power age in Maharashtra is just 1,000 MW out of which 300 MW is delivered by MahaGenco (Maharashtra State Electricity Board Co Limited). Under the Chief Minister's Solar Agri Feeder program, solar power pumps with the limit of 7000 MW will be set up for the horticulture reason. At present, such farming pump sets having 5500 MW limit have been set up. "This year, the legislature is intending to set up drifting sun oriented boards on water supplies to create solar energy, the authority stated, including that the skimming sun based board on Ujni dam in Solapur locale will be the primary such solar power age conspire in the state. He said worldwide tenders for the undertaking would be welcomed soon. At present, 2,000 solar power based agriculture pump sets to put in operation. Primarily, the target is to provide 10,000 such pump sets to farmers.

PM Modi Says India Will Host First Summit of International Solar Alliance

Exicom Wins “Energy Storage Company of the Year” Award at ESI 2018

Prime Minister Narendra Modi said India will host the first summit of the International Solar Alliance (ISA) in March. Citing global climate change as one of the biggest global challenges, Modi said, “In 2016, India and France jointly envisioned a new international treaty based organisation. This revolutionary step has now changed into a successful experiment.” While speaking at the plenary session of the World Economic Forum, Modi said, “As an International Solar Alliance, it is now a reality after the necessary treaty ratification. I am happy that in March, French President (Emmanuel) Macron and leaders of member countries of the Alliance will participate in the first summit of the Alliance, which will be held in New Delhi on my joint invitation.” Narendra Modi is the second Indian Prime Minister who addressed world leaders and global corporate honchos at the plenary session of the WEF — after 21 years. The PM took the opportunity to elaborate on the threat of climate change. While commenting on India’s efforts to generate more renewable power, Modi said: “To save the environment and to counter climate change, a huge campaign, a very big goal my government has placed in front of the country.

With over 1000+ industry experts in attendance at Energy Storage India 2018 Conference, Expo & Gala Awards Event, Exicom was awarded as “Energy Storage Company of the Year”, storage sector’s most prestigious award. The Award recognizes Exicom’s perseverance, innovation, and achievements in the energy storage landscape in India and also applaud the value we have created for the end consumers in the country. Exicom has played a pivotal role in developing and delivering innovative energy storage solutions and supporting Lithium-ion battery storage technology right from the early stage of its entry into the market. Anant Nahata, Managing Director of Exicom said on the occasion, “We have been into this field from early stages and committed to taking this industry toward unprecedented innovation and growth”. He also emphasized on local R&D, indigenization, and customization of the products in accordance with the local market needs and how Exicom is progressing on all these fronts. He shared an ambitious target of deploying 1GWh of energy storage solutions that Company has set for the financial year 2018-19.

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NATIONAL NEWS Yes Bank to Mobilise USD 1 Billion by 2023 for Solar Projects Yes Bank, India's fifth largest private sector bank, said it will mobilise USD 1 billion by 2023 for financing solar energy projects in India. The announcement was made at the International Solar Alliance (ISA) conference organised at World Future Energy Summit 2018 in Abu Dhabi. According to the company statement, the bank said it made an announcement for "mobilising USD 1 billion till 2023 and USD 5 billion till 2030 towards financing solar energy projects in India". Yes Bank also signed five solar energy co-financing Letters of Intent with Tata Power Delhi Distribution, Hero Future Energy, Greenko Group, Amplus Solar and Jakson Group for their solar projects in India to be completed by 2023. Pune Municipal Corporation to Save Rs 1 crore by using solar power Pune Municipal Corporation (PMC) can save around Rs 1 crore annually on electricity bills thanks to the civic body’s plan to install solar power plants on civic properties. As many as 14 rooftops solar plants will be set up on PMC buildings. “We have given approval for the project. The project will serve more than one purpose. It will help in saving electricity bills. We can also promote renewable energy,” said Murulidhar Mohol, standing committee chairman. He said that PMC will not make any financial investment in setting up plants. Only the space for setting up plants will be given by PMC. The standing committee has approved the proposal. The civic body spends around Rs 4 crore annually on paying electricity bills of various properties owned by the civic administration.

Future of Energy is in Storage of Energy: Suresh Prabhu Addressing the larger issues, challenges, emerging trends and a wide array of opportunities for Energy Storage, Micro-grids and Electric Vehicle solutions in India Energy Storage India (ESI) 2018 were started with a big bang. Suresh Prabhu, Minister of Commerce & Industry of India delivered a special welcome address emphasizing the need for Energy Storage for greener, cleaner and more stable grid in India. Addressing ESI 2018, Suresh Prabhu said,“Energy storage can change the dynamics of energy profile of the world and thus energy storage is a critical component in global energy strategy. We should be the leaders, we should invest in R&D.” He encouraged participants to work together globally for R&D considering local needs. He hoped that ESI 2018 will help in addressing various issues related to energy storage ecosystem. ESI 2018 is organized by India Energy Storage Alliance and is supported by Ministry of Electronics and Information Technology, Ministry of science and technology, Government bodies including Invest India, Start-up India, Skill Council and other industry pioneers such as Fluence, EnerBlu and Delta Electronics.

Uttar Pradesh to Invite Bids for 100 MW Solar Power Projects in March Boosted by the successful implementation of solar projects in states like Karnataka and Gujarat, the Uttar Pradesh government is planning to invite bids for 100 MW of solar power projects by March. According to a senior state ministry official the bids are for solar projects on open access basis to be set up in the Bundelkhand region. “We plan to invite bids for solar projects in the Bundelkhand region in the next three-months. The projects will be based on an open access, as defined under the UP Solar Policy 2017,” UP chief secretary Rajiv Kumar said. While confirming and sharing the details, Alok Kumar who is the state principal secretary (energy) said, “Our Solar Power Policy 2017 has clear provisions for open access and we are inviting bids for 100 MW of solar projects in Bundelkhand by March.” Leading players like Adani Group, Tata Power Solar, ReNew Power and Hero Future Energies are likely to be interested in the projects to be offered in UP, suggested an industry player. The state government has separately invited tenders for the selection of consultancy firms for establishment of a project management unit to assist UP New and Renewable Energy Development Agency (UPNEDA) in implementation of the state’s Solar Power Policy 2017. The last date for submission of e-tenders is January 14 and the online technical e-tender opening date is January 15. The financial tender opening date for qualified bidders is January 30. The Uttar Pradesh Solar Power Policy 2017 targets implementation of 10,700 MW of grid-connected solar power projects by the end of 2022. Of the total capacity, 4,300 MW is targeted to be achieved through deployment of grid connected rooftop projects, and 6,400 MW through ground mounted utility scale power projects.

Safeguard Duty: R K Singh Says Nothing Can Jeopardise Clean Energy

Amid fears over adverse impact of proposed safeguard duty on solar equipment, Minister of state for power, new and renewable energy R K Singh said that nothing can jeopardise India's renewable energy target of 175 GW by 2022. Singh also stated that the proposed duty would not affect the already bid out projects during the installation phase. The Minister expressed hope that the government would bring out policy for boosting domestic solar equipment manufacturing with higher financial assistance than proposed Rs 11,000 crore. "Nothing will be done which will jeopardise achievement of the target set by the Prime Minister for establishing the 175 GW renewable energy... but as far as this (safeguard duty) is concerned, we are going to have discussions," Singh told reporters. While commenting on the new projects the minister said, "The duty regime which prevails at the time of bid will be duty regime for entire installation. The duty would be for new projects if at all imposed. Both are questions, whether it would be imposed and what is the quantum (of duty)." The Directorate General of Safeguards had last month proposed to impose 70 percent safeguard duty on import of solar power equipment from countries like China for 200 days to protect domestic industry from "serious injury".

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INTERNATIONAL NEWS Brazil Crosses 1 GW solar milestone Brazil's solar power generation has reached the mark of one gigawatt, marking it among the 30 countries in the world which can generate over one gigawatt from solar sources, reports said. Brazil has become the second Latin American country to cross the 1 GW mark of installed PV capacity after Chile. The solar power that Brazil generates can feed the consumption of two million Brazilians, according to the Brazilian Association of Solar Power (Absolar). "Brazil is more than 15 years late in the use of photovoltaic solar energy. We can stay among the main countries of the world in this market, as we are in hydroelectric power, biomass and wind power," Absolar President Rodrigo Sauaia said. Brazil's solar power generation is still below its potential, said Sauaia, adding Brazil needs a nationwide program to accelerate the development of solar power in the country. Brazil traditionally relies on hydroelectric power plants and bio-energy. It also has significant potential in developing wind and solar power. The Brazilian government had selected around 574 MW (AC) of PV projects in its most recent auction, which was held in December of last year. These must be connected to the grid by the end of 2020.

SMA Solar Expects Growth in Sales and Earnings in 2018

NEXTracker Delivers Smart Tracker Technology to Solar Power Plant in North Africa

SMA Solar Germany’s biggest solar company has said it expects a rise in sales in 2018, thanks to strong Asian and European business and rising demand for technology used for energy storage. For the 2018 fiscal year, the SMA Solar expects sales would grow to between 900 million and 1 billion euros ($1.1 billion-$1.2 billion), exceeding the analyst consensus for 901 million euros. This will be driven mainly by the generally good market development and in particular by the continued strength of the Asian and European business and the rising demand for system technology for storage applications. SMA Chief Executive Officer Pierre-Pascal Urbon, said, “SMA closed the 2017 fiscal year better than originally forecast.” Urbon further commented, “We set a new sales record, in particular due to the strong business in Europe and Asia. All segments were profitable, and we increased net cash to around 450 million euros thanks to our positive earnings and the low capital intensity of our business model.”

NEXTracker has announced that global solar EPC company Sterling and Wilson selected NEXTracker to supply 325 megawatts (5 blocks of 65 MW each) of its smart solar trackers to its project within the Benban solar park in Aswan, Egypt. The Benban solar park occupies 37-squarekilometers and, when completed in 2019, will host a total capacity of more than 1.6 gigawatts (GW), making it the largest planned solar installation in the world. "We're thrilled that Sterling and Wilson chose NEXTracker to supply our trackers for what's predicted to be the largest solar facility in the world," said Dan Shugar, founder and CEO at NEXTracker. "We've developed a successful partnership with Sterling and Wilson, having deployed over 400 MW of trackers for their projects in India, and are delighted to be extending that partnership to North Africa. It's very gratifying to be a part of Egypt's investment in the solar industry and the country's movement towards a cleaner and brighter future."

General Electric Wants to Install Solar Panels in New York General Electric Co. one of the leading power companies in the world wants to install solar panels at its Global Research Center in Niskayuna, New York. According to Laura Robertson, town planner, the company is seeking site plan approval to install 2,300 panels at the research center campus off River Road, with the first phase consisting of 700 panels. GE told the town the panels would be used for research but ultimately could be connected to the electric grid, Robertson said. The solar array "not only would provide supplemental clean power, but also could support emerging renewable or energy storage technology programs on site,” Todd Alhart, a General Electric spokesman, said. Shell Wanders into Solar Energy, Consents to Gain Stake in US Firm Royal Dutch Shell concurred to get a stake in a U.S. solar power organization, 12 years in the wake of leaving the part, in the most recent in a progression of arrangements to develop past its center oil and gas business. Shell consented to purchase a 43.86 percent stake in Silicon Ranch Corporation from stores connected to Partners Group for up to $217 million. It takes after on the foot rear areas of British adversary BP, which a month ago likewise re-entered the sun oriented division with the $200 million interest in Lightsource. Nashville, Tennessee-based Silicon Ranch creates, possesses and works solar plants over the United States with a limit of 880 megawatts. Shell additionally has a choice to build its proprietorship after 2021.

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INTERNATIONAL NEWS EnSync Energy to Deliver Solar Energy to Polynesian Cultural Center EnSync Energy Systems, has announced that it signed a 20year power purchase agreement (PPA) with the Polynesian Cultural Center (PCC) for a 396-kilowatt photovoltaic and inverter system. The PPA will reduce the facility's kilowatt-hour rate, bringing an estimated savings of $43,000 in the first year alone to the Oahu tourism property in Laie, Hawaii. To meet the high energy demand, EnSync Energy will install solar arrays on three different building roofs on the PCC grounds. Brad Hansen, CEO and president of EnSync Energy Systems, "We are delighted to be associated with the worldrenowned Polynesian Culture Center, an impact-conscious organization well known for educating nearly 700,000 visitors per year on the cultures of the Polynesian nations.” Donald Trump Imposes 30% Tariff on Imported Solar Panels US President Donald Trump has decided to slap tariffs on imported solar panels. The U.S. will impose duties of as much as 30 percent on solar equipment made abroad, a move that threatens to handicap a $28 billion industry that relies on parts made abroad for 80 percent of its supply. Just the mere threat of tariffs has shaken solar developers in recent months, with some hoarding panels and others stalling projects in anticipation of higher costs. The Solar Energy Industries Association has projected tens of thousands of job losses in a sector that employed 260,000.

China is Building Floating Solar Power Plant on Abandoned Coal Mine Area

An old crumbled coal mine in China is being given new life as the area of the world's biggest drifting solar based homestead. The solar ranch, which is being worked in Huainan, takes the record-breaking title from another sunlight based homestead inside the city that at present produces 40 megawatts. The better and brighter one will give power to 94,000 homes, about quadrupling ability to 150-MW. The $151 million offices are being worked on a lake that jumped up finished a fallen coal mine. Development started in July and is relied upon to be done in May 2018. This isn't the main naturally economical activity that China has propelled to control their coal utilize – a month ago, the Asian monster reported the dispatch of the world's biggest carbon exchanging market. “Putting a price on carbon is the right signal to send in this … the blue-sky-deprived world,” said Li Shuo, senior global policy advisor at Greenpeace East Asia. “By doing so, Beijing also positions itself ahead of major industrialized countries, many of whom are still seeing climate action as a burden rather than an opportunity."

Florida Power & Light Unveils Four New Solar Power Plants

Netherlands Solar Company to Build Solar Power Plant at Moerdijk Netherlands Solar Company, Shell this year plans to begin constructing a solar power plant at its chemicals manufacturing facility in Moerdijk, the company reported. “Developing this solar power plant in Moerdijk fits

Florida Power & Light Co. has announced the opening of four new solar power plants comprised of more than 1 million solar panels and the retirement of one of Florida's largest coal-fired power plants. These advancements will further improve FPL's carbon emissions profile, which is already approximately 30 percent cleaner than the U.S. industry average. At the same time, FPL's typical 1,000-kWh residential customer bill remains approximately 25 percent lower than the U.S. average. Moreover, FPL's typical customer bill is lower today than it was during the year 2008. "The truth is progress like this doesn't happen by accident. It's because of our culture of responsible innovation and an unwavering commitment to customers that we're able to deliver cleaner, more reliable energy while keeping electric bills among the lowest in the country," said Eric Silagy, president and CEO of FPL.

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within Shell’s ambition to play an active role in the Dutch energy transition,” Marjan van Loon, Shell Nederland president-director, said. “We are eager to limit emissions through energy efficiency improvements of our processes and investments in new energy activities at the same time. Other examples of Shell’s work in the Netherlands energy transition include offshore wind in the North Sea, electric mobility at our retail sites and residual heat from Shell Pernis.” Shell noted that the Moerdijk solar power plant, which will boast an approximate peak capacity of 20 megawatts of power, will contribute to the chemical facility’s energy consumption. The installation – to be developed by Shell’s New Energies Business on an unused parcel of land at Shell Moerdijk – will generate the equivalent of what it takes to power roughly 7,000 Dutch households, the company added.

INTERNATIONAL NEWS Tesla Begins Solar Rooftop Tiles Manufacturing in Buffalo Tesla’s much anticipated (and long-delayed) solar roofing tiles have started its mass-production from its company’s factory in Buffalo, New York. Tesla has also begun surveying the homes of those who have given $1,000 deposit to reserve the new power-generating roofing tiles. the next-gen solar rooftop tiles are all set to be installed in the coming months. The solar tiles are expected to cost between 10 and 15 percent less than the cost of a new roof plus solar panels. They are designed to mimic a variety of roofing styles to ensure there’s an option to match the aesthetic of each home. Customers were able to place deposits on either textured or smooth tile options, while Tesla promised to have their Tuscan and slate offerings available later this year. Clean and Cost Effective Depending on the cost of electricity in each area, Tesla estimates over 30-year life of its solar tiles. Consumers could not only end up with significant savings, but even make profit. Using an example of a typical home in Maryland, Tesla calculated that with tax credits and the value of energy over 30 years, factoring in the cost of a Power wall battery, the roof could net a positive $8,000 over its lifetime. The environmental benefits of solar roofing are many. Not only do they help relieve the burden on fossil fuel generation, they also do so by reclaiming space that’s already utilized. New solar farms are excellent for providing increasing amounts of electricity to larger areas but developers often have to use large swaths of land to ensure their farms are economically viable. Like other solar panels used for domestic energy supply, Tesla’s solar roofing tiles take advantage of areas that are already used up by buildings, but they do it in a more cost effective way.

IFC to Support Largest Solar Power Plant in Jordan

The International Finance Corporation (IFC), a member of the World Bank Group said it will finance a major solar power plant worth $188 million to boost renewable energy investments in Jordan. The solar plant in Jordan is the latest in a series of efforts to boost renewable energy investments in a country faced with increased energy demand, in part driven by the growing refugee crisis, according to an IFC statement published on its website. The financing package for the 248-megawatt Baynouna facility developed by Masdar (Abu Dhabi Future Energy Company) includes $54 million from IFC's own account and $134 million mobilised from other senior lenders including a parallel loan from Japan International Cooperation Agency (JICA), the statement said. The plant will supply power well below Jordan's average cost of electricity, thus further lowering the cost of long-term electricity generation in the country, the statement said. Mouayed Makhlouf, IFC director for the Middle East and North Africa said, “Renewable energy is a pillar of IFC's work, in the region and beyond. We have already financed several major projects, encouraging private investment in the sector and pioneering innovative financing models.” "We stand ready to support Jordan in meeting its growing energy needs and becoming a model for renewable energy investments," Makhlouf added. International Finance Corporation has invested over $300 million in aggregate across 13 projects so far, enabling well over $1 billion in private sector investments in Jordan's power distribution and generation sectors.

Hanwha Energy Starts Building 236 MW Solar Plant in U.S. Hanwha Energy, a South Korean renewable energy company, has initiated construction work on a 236-MW solar power plant in the U.S. state of Texas, company officials said. The 236-megawatt solar facility set to be completed in the state's Pecos County by later this year and will generate enough electricity to power more than 50,000 local households per year. The estimated cost of the project is about about USD 260 million. The sales of electricity will be handled through a 25-year contract with Austin Energy, officials said. Hanwha Energy plans to borrow more than 80 percent of the money from local lenders to finance the project. The company said it plans to sell its stakes in the plant later to retrieve the cost. Hanwha Q Cells will supply more than 680,000 monocrystalline modules for the plant, according to the officials while its US unit will take care of the engineering, procurement and construction of the facility.

Scomi Plans to Venture into Solar Power Distribution Scomi Group Bhd is planning to enter into the renewable energy sector especially in solar power distribution as the company sees a good potential for growth in this sector. Chief financial officer of Scomi Group Mukhnizam Mahmud said the company sees no increased activity for its oilfield services business segment. "We think that [the RE industry] is the growth industry for us, such as in hydro and solar energy. We are bidding for several projects and are in talks with potential partners," he told reporters after Scomi Group's extraordinary general meeting (EGM). Saudi Arabia Shortlists Bidders for First Solar Power Venture Saudi Arabia has shortlisted bids by Acwa Power and a consortium drove by Marubeni to build up the kingdom's first historically speaking solar power venture as it hopes to create elective wellsprings of vitality and free up oil for sending out. The Renewable Energy Project Development Office (Repdo), set up a year ago to supervise the nation's renewables program, picked the offers put together by the neighborhood designer and Japanese building firm finished the world's least expensive offers for a solar undertaking presented by a consortium drove by Abu Dhabi clean energy firm Masdar and its French accomplice EDF. The Masdar-drove consortium's offered to for the 300MW Sakaka photovoltaic (PV) venture in the northern Al Jouf district came at 1.79 US pennies for every kilowatt-hour (kWh) and was 24 percent less expensive than that of Riyadh-based Acwa Power, which presented the secondmost minimal offer in October.

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INTERNATIONAL NEWS Rooftop Solar Installations in Australia Edge Towards 2 Million Rooftop solar installations in Australia are setting new records in the country. The latest figures from Australia’s regulator show that the nation is edging closer to the 2 million mark on this area. The figures from the Clean Energy Regulator (CER) show Australia now has a combined 6.29 GW of rooftop solar installed. Rooftop solar is one way of harnessing the sun’s energy to combat the effects of heat on the main power grid. Australia has installed 1,778,687 rooftop PV systems as of 1 December 2017, according to new data from the Clean Energy Regulator (CER). In addition to solar PV, 1,077,079 solar water heaters, including air source heat pumps were installed. Ukraine to Launch its First Solar Power Plant at Chernobyl Ukraine's Chernobyl is all set to launch its first solar plant to revive the abandoned territory. The new one-megawatt power plant is located just a hundred metres from the new "sarcophagus", a giant metal dome sealing the remains of the 1986 Chernobyl accident, the worst nuclear disaster in the world. Yevgen Varyagin, the head of the Ukrainian-German company Solar Chernobyl which carried out the project, said, “this solar power plant can cover the needs of a medium-sized village", or about 2,000 flats.” According to the company, the solar installation is to go on stream within weeks.

South Australia Based World's Biggest Solar Plant Achieves Essential Milestone in Development

South Australia—home to the world's biggest battery—is one bit nearer to likewise facilitating the world's biggest solar warm power plant following formative endorsement from the state government. California-based Solar Reserve is behind the $650 million, 150-megawatt "Aurora" venture that will be found 30 kilometers north of Port Augusta. Solar power warm plants are unique in relation to conventional photovoltaic boards on rooftops and solar homesteads. These plants, otherwise called concentrated solar plants, comprises of an expansive field of moveable mirrors, or heliostats, that focus the sun's beams to a focal pinnacle to warm up salt. This liquid salt at that point produces superheated steam to drive a generator's turbines. The upside of this kind of energy plant is the means by which it can store a few hours of vitality, taking into account control utilization when required. Such a plant is critical for South Australia, a state plagued by visit control blackouts. South Australia, rather than the master coal national government, has put intensely in sustainable power source in late decades. A month ago, the state exchanged on a 100-megawatt battery stockpiling ranch that Tesla CEO Elon Musk broadly implicit under 100 days to help tackle the state's vitality misfortunes. Musk's battery officially substantiated itself toward the end of last month in the wake of reacting to control blackouts inside milliseconds. SolarReserve, a similar organization that works the 110-megawatt Crescent Dunes Solar Energy Plant in Nevada, the world's first utility-scale solar warm power plant, gloats that Aurora's monstrous 1,100 megawatt-hours of capacity will give eight hours of full load control after dim.

World Bank Plans ‘Scaling Solar and Storage’ Program The World Bank is planning to make energy storage an integral part of its ‘Scaling Solar’ program, that until now has been focused purely on facilitating large-scale solar tendering, predominantly in Africa. The new Scaling Solar and Storage (SSS) program, is expected to be rolled out in the coming years would work on utility-scale tenders that pair solar PV with battery storage technology. The World Bank engaged Italy-based technical advisory RINA to explore the feasibility of such tenders. Ugo Salerno, chairman and CEO of RINA, said that the program planning takes into consideration anticipated developments in storage technology and cost over the intended roll-out period. RINA also undertook extensive consultation with leading players in the industry to ensure that SSS project development would be appealing to them.

Old Aurora Building Installs Rooftop Solar Panels The old Aurora Main Public Library building at 1 E. Benton St. downtown, now the home of The Support Companies technology group, has installed solar panels all along its roof. The work was done by crews from Geneva-based Rethink Electric. The new solar power system is now supplying about 15 percent of the power needs at the site. Building and co-owner of The Support Companies Melinda Kruder said the $158,000 project came together quickly following discussions she had earlier this year with Rebekah Axtell, creative director of the Greenlife Media Group. "This was something we were looking at after we acquired the building in 2015, and Rebekah knew a lot of the right people and we were able to analyze very quickly if this was going to be a good deal," Kruder said. "When we finally got serious, we only had about six to eight weeks left last year to get this done in order to get the energy tax credit, but the people involved at the city level with permitting and so forth really worked quickly and solved a bunch of problems to get this through the system." Axtell likewise lauded Knox "for being moral and utilizing American-made items." "Individuals in outside nations additionally make these frameworks, yet utilizing them doesn't bolster our own particular economy," she said. Knox said the task introduced "a few exceptional difficulties because of the memorable building" where it was introduced. "This building was made in the late 1800s, and we needed to have an auxiliary architect complete an investigation to ensure the building could bolster the additional weight," Knox said. "This is a non-infiltration establishment and the framework is held set up with weighted squares."

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Why a Performance Guarantee is Guaranteed Underperformance Sorrebh Samdani, Applications Engineering Manager at infiswift

Many in the solar industry view the performance guarantee as an assurance that PV projects will produce the maximum amount of energy. While the performance guarantee does ensure that a PV project will produce above a minimum threshold, it does not ensure that it will perform to its maximum potential. In an ideal world, every participant involved in a solar project would be motivated to optimize the projectâ&#x20AC;&#x2122;s Levelized Cost of Electricity (LCOE). In reality, the incentives of project participants are often misaligned, leading to sub-optimal performance.

Figure1: Solar PV project participants

It's naive to expect that everyone will go out of their way to optimize plant performance when all that is expected is achievement of a minimum threshold (i.e. the performance guarantee). Observing the various stages of a project allows us to see how the performance guarantee convention actually discourages project participants from taking the right actions along the way to achieve optimal plant performance. Below weâ&#x20AC;&#x2122;ll take a look at the design, construction and operation phases of a simplified scenario in which an owner LLC wants to build a PV project. Design Phase Consider the long-term project owner, Owner LLC, who hires Engr Inc - a third party engineering consultant - to develop a preliminary design and a request for proposal (RFP) package. EPC Inc - an Engineering Procurement and Construction (EPC) contractor - decides to respond to the RFP. Several vendors have proposed products to EPC Inc, that can potentially increase the energy production with a slight increase in cost, but EPC Inc has not worked with these vendors before and does not know if the claims can be trusted. It could be risky for EPC Inc if the products do not work and if site visits are required to fix the problems. Getting the contract is far more important than optimizing system production and EPC Inc knows that the proposal will be evaluated primarily on construction cost, as that is the key decision metric for Owner LLC's construction team. Therefore, the system is designed with tried and tested and/or cost competitive products, and EPC Inc wins the project on the basis of construction cost. In this scenario, as is generally the case, EPC Inc has been asked to provide a performance guarantee as part of the bid, requiring them to devote resources to understand and keep track of system performance. Even if everything works as expected, effort will still be required to prove and validate that the system is working as expected. Owner LLC also employs an Operations & Maintenance (O&M) team, which is separate from its construction team and has different Key Performance

Indicators (KPI) on which success is judged. When performance problems arise, EPC Inc will have to coordinate between equipment suppliers and Owner LLC's O&M team to get issues fixed. This work will need to be done in a timely fashion to meet EPC Incâ&#x20AC;&#x2122;s performance guarantee, but EPC Inc does not have control over all aspects of the process. This is a potential risk for EPC Inc, and they address it by calling on Owner LLC to reduce the threshold of performance guarantee from 97% to 95%. The performance guarantee requires a calculation of expected energy output using measured weather data like irradiance and temperature. It is, however, very difficult to do irradiance measurement with less than 2% error because sensors are not perfectly aligned with the modules, and the modules themselves have a small variation in their alignment. EPC Inc hopes that the on-site O&M team will not clean the irradiance sensor on a regular basis, and the measured value will be lower than actual. This will provide them an additional buffer on the guarantee. During contract negotiations, the performance guarantee is perceived as a high risk by EPC Inc's risk team. EPC Inc proposes a discount to the owner if the performance guarantee could be lowered to 90% or 85%. Owner LLC's construction team, which is in charge of negotiations, agrees since the lower construction cost makes them look good. At the close of the design phase in this scenario, Owner LLC has committed to a project with performance guarantee, but it a weak one at best. Construction Phase The first step of the construction phase is approving Issue for Construction (IFC) drawing sets.The O&M team is asked to provide feedback, but they miss a few details in the tight deadline given to them and approve the drawings. During a routine site visit during construction, the O&M team notices that several improvements can be made to make the plant easier to maintain, such as wider rows or combiner boxes located closer to

the road rather than the middle of the array. Some of the improvements, like changing row spacing, would require significant rework though, so the O&M team keeps mum since they already approved the plans. On improvements that are more easily made like changing of wiring clips, the O&M team will make recommendations to the Owner LLC's construction manager. Owner LLC's construction manager requests a quote from EPC Inc for the improvements. EPC Inc had initially bid the project at a tight margin to increase the chance of getting the contract and thinks this is a good chance to make money from a captive customer. The change order is priced at a high mark-up, and Owner LLC's team rejects the proposal to make improvements for more efficient maintenance, deeming it as simply not worth it. It is noted as a lesson learned for the next project. However, design conditions and project teams often change and such feedback is not always documented or passed along. When the system is mechanically complete, testing and commissioning begins, during which time a significant amount of equipment sits idle. There is, of course, considerable pressure to generate revenue from the investment, and contractors want to claim milestone payments. Most of the labor force is demobilized, and the excitement in the project decreases. Specialized testing and commissioning folks appear at the site talking in a cryptic language. Everyone involved in the construction project wants to be done - "close" the job, collect payments/bonuses and move to a more interesting job. A significant portion of the commissioning is done properly but some details slip through the cracks as people are busy planning their next moves/vacation. Operations Phase In an ideal scenario, the O&M team has complete understanding of how the system operates, what the different data tags mean and whether everything is working properly. In reality, the task is too complex to be done in the short amount of time allocated to commissioning and handover.

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Figure 2: Sample Performance of a PV Plant Owner LLC’s O&M team gets off to a difficult

performance guarantee has been met, EPC

LLC struggles to force EPC Inc to make

start. They have thousands of data tags to

Inc does not put extra effort to verify data

them whole since EPC Inc was not the one

sift through and have difficulty determining

quality. However, if calculations don’t show

that specified or procured the equipment.

if the values being reported are labelled

the performance guarantee hasn’t been met,

After the true-up period ends, EPC Inc

correctly, within range and with correct

more exploration will be done. After each

reduces its expensive proactive troubl-

calibration coefficients. They discover that

period, EPC Inc sends out its performance

eshooting program and starts providing help

the current transformers were wired in in the

report and sees if it sticks with the owner.

only when required. They have met their

wrong direction, and the system is reporting

At EPC Inc, the feeling is that it can always

contractual obligations and don't benefit

that it’s importing power when it’s actually

be modified if assumptions are questioned.

from additional energy production, so they

exporting. When the O&M team reaches out

Later, an inverter shuts down with a ground

no longer have any incentive to improve

to the construction team about the problem,

fault, and EPC Inc is required to help resolve

system performance.

they find that they have moved on to other

it. In this case, EPC Inc is diligent in resolving

Real life scenarios can be considerably more

projects and are uninterested in providing

problems proactively because they are

complex than this, but many of the issues

support. The problem never gets fixed, but

worried about meeting their performance

identified above happen commonly. Although

eventually the O&M team resolves the major

guarantee. The process of identifying the

projects are capable of producing more,

issues and the system begins to operate as

root cause of problem and collaborating with

it's often hard to realize their full potential

it was designed.

equipment manufacturers to resolve it is time

because incentives are often misaligned

Meanwhile, EPC Inc is producing periodic

consuming. However, toward the end of the

despite best efforts. Sophisticated project

reports with details of performance guarantee

true-up period over which performance is

owners must have a “prevention is better than

status, as required by Owner LLC. Measured

averaged, they realize that they are going

cure” mindset in the case of performance

data is never perfect - sometimes it’s missing,

to meet the guarantee comfortably, and

guarantees, and keep in mind the incentives

irradiance sensors are not always clean

become less proactive in resolving future

of various project participants.

and outage hours are often not clearly

problems.

Are there any scenarios you have experienced

defined - and EPC Inc must make several

Then a problem occurs with one of the

where misaligned incentives made it difficult

assumptions to finish its performance cal-

system’s generation step up (GSU) trans-

to optimize solar plant performance?

culations. Because of this, EPC Inc knows that

former and the whole plant goes down. In

if two engineers were to make independent

this case, the owner procured the transformer

calculations, there is a high likelihood

for the EPC, which is not uncommon for big

that their results would not be the same.

ticket equipment. The performance guarantee

If the first step calculations show that the

threshold is not met for the period, but Owner

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MINING CLEAN ENERGY

The goals of Paris climate Agreement was discussed when all the eminent representatives across the globe met at a meeting in Bonn in November 2017. The major challenging point of discussion revolved around rapid scaling up the deployment of renewable energy, mitigating the fossil fuel use in the meantime. The major aspect is still at bay from the concern and consideration which is the exhaustion of minerals required to build these technologies.

rom copper for wires and electric motors, to lithium and

problem. Thus, the excavation process needs twice as much

cobalt for batteries, to minute amounts of rare earth

of resources and time as compared to a decade ago to extract

metal like indium and gallium for solar cells, all these

the same amount of copper, resulting in more mine wastage.

are required in huge amounts to accomplish the desired wind

On the other hand the investments in new mine sites exploration

and solar infrastructure. The process itself questions how much

has declined corresponding to lower commodity price. It often

renewable is renewable energy in actual.

takes at least 20 years form finding mineral or metal deposit

The flaks in the existing system of mining is one of the major

to execute mining, and as per the data, meagre 20 percent of

problem that the whole dynamics of the process is facing. The

the findings have led to mining operations since 2000. The low

mining system is polluting and will lead to public rage and

interest in investments for exploration is due to the short-term

social pressure. The solution is available and it needs to be

thinking rather than the contrasting supply rising demand for

followed and executed. The need of the hour a new mechanism

a long-term plan. The increase in resistance for mining mostly

of international standards in order to coordinate properly and

at domestic level globally is passing by simultaneously. The

precisely global mineral exploration that looks to our future

scenario is led by the environmental crisis results in various

demands.

diverse calamities like that of social trust erosion, usually delaying

Rocky Road Ahead for Mineral Supply

or hindering mine development.

The mining and state owned enterprise has the monopoly of

A well defined mechanism and framework could help rebuild the

mineral mining for sustainable resources as the Paris agreement

trust of local communities carried out for planning the resource

has developed and issued a global framework to managing

supply efficiently. The guidelines needs to keep a check and limit

carbon while on the other hand no such framework is defined

the inflation in prices for liable access to the metal resources,

nor exists for minerals.

compensating to have a balance in the international tension

Resource mining leads to some significant increase in air and

arising due to the stiff competition between the industries and

water pollution levels and the deteriorating quality of copper ore

the governments for minerals out of the crunched list of countries

globally over the years is the greater example for the preceding

surviving with profits and sustaining in the mining industry.

SAUR ENERGY INTERNATIONAL l FEBRUARY 2018 l VOL 2 l ISSUE 6

eventually hampering the sustainability goals due to supply crisis. To put a full stop to the situation, a global coordination to address the several key aspects of mineral development is needed. To begin with, while most point by point data on where minerals are mined and sold is secretly held, there is openly accessible information that could be utilised to foresee conceivable uneven characters in free market activity universally (for instance copper, press, lithium, indium).Openly financed foundations have an imperative role to play here. They can evaluate how known supply will take care of future demand, and convey knowledge into the changing natural effect.It ought to likewise be totally conceivable to create inventories of recyclable metals, which can be a critical supplement to vast mining operations. Assembling inventories of recyclable metals is in progress crosswise over Europe as a feature of a move towards a roundabout economy (where however much waste as could reasonably be expected is repurposed). While reusing metals like lithium for under 1%, around 40% of steel request is met from scrap, reused amid assembling and from end-of-life items and infrastructure. Pondering inevitably for dismantling of structures when they are constructed, can bolster better utilisation of reused assets. Geoscience offices officially offer maps of underground minerals, exhibiting that this sort of co-ordinated point of view is plausible. Stretching out this way to deal with recyclables can moderate ecological effect and facilitate the social complaints to new mines. A worldwide mechanism for mineral investigation and supply could likewise be a chance to advance best-hone for capable mining, with an attention on social permit and reasonable and straightforward sovereignty courses of action. Combating Resistance It's a piloting suggestion, particularly the same number of nations show less enthusiasm for universal agreements. In any case, it will be progressively hard to meet the Paris agreement objectives Developing A Global Agreement On Mineral Resources The process for the development of a global agreement setting upon standards for mining at global stage will obviously be rigorous, requiring strong leadership with substantive dialogue. In order to accelerate and support the process there are organisations such as United Nations Environment Assembly, or the recently founded Intergovernmental Forum on Mining Metals and Sustainable

without handling this issue. In the decades ahead, our mineral supply will even now need to twofold or triple to take care of the demand for electric vehicles and different technologies required by our developing worldwide populace. To put it simply, asset effectiveness and occupations without bounds rely upon a guaranteed mineral supply. This ought to be a neutral issue, over the worldwide political range. - Hari@saurenergy.com

Development could be reach out for collaborations. The people across the globe are well aware of the factual intimidation for lower bed countries of the rising sea levels. The similar awareness dissemination is needed to make people understand the pivotal role minerals have in energy transition,

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MARKET GLANCE

Dealing With Cracks in India's Solar Dreams In a first of its kind study in India, scientists from Indian Institute of Technology Bombay (IITB) and National Institute of Solar Energy, New Delhi, conducted a detailed survey at 51 locations across India to check for the degradation in the performance of photovoltaic modules. This study, to establish reliability of the modules, could help India achieve the ambitious dream of 100 GW of solar energy by 2022. Researchers observed that photovoltaic modules degraded faster in hot places, on rooftops, and in installations of smaller size. Investment in solar energy in India is large and it is essential to evaluate the long-term

Composite, Moderate, Cold and Sunny and

of 40 GW for rooftop, and instead increase

performance of photovoltaic modules,

Cold and Cloudy.

the 60 GW target for large ground-mounted

since the energy yield over the years would

Locations that enjoy good sunlight for many

plants”, says Prof. Kottantharayil.

determine the return on investment. Hot

days of the year are good for setting up

Since installations in India will be in hot and

climate may cause yellowing and failure

solar plants. Many plants are coming up

dry areas, ensuring that initial quality of

in solder joints, and improper handling of

in such locations in Rajasthan, Gujarat,

modules is good, is important. This needs

modules may cause micro-cracks in solar

Madhya Pradesh and Andhra Pradesh. But

to be accompanied by good handling and

cells. Such degradation causes energy

researchers observed that installations in hot

best installation practices. It may seem

yield to reduce.

and dry locations showed larger number

initially costly to use high-quality photovoltaic

"The important thing, is not just how much

of solder joint failures and yellowing of the

modules with few or no cracks or to employ

power is installed (GW), but how much energy

encapsulant materials.

trained personnel during installation, but it

(GW-hr or kWh) the photovoltaic modules

“Ideally locations with cold climate with lot

is essential to ensure least degradation in

generate over the estimated 25 years of their

of sunlight are best suited for installation of

the long run.

life. If the modules degrade more rapidly

solar modules. In India this happens only in

Given that India has already invested a huge

than expected, they will generate less energy

Ladakh, where we do not have connectivity

sum in the field of solar energy and is about

than planned," says Prof. Juzer Vasi of IIT

to the rest of the Indian grid, nor good local

to make heftier investment in the coming

Bombay and co-author of the study.

connectivity,” says Prof. Vasi explaining why

years, studies like this become all the more

P ro f . Va s i , h i s c o l l e a g u e P ro f . A n i l

we have no option but to stick to hot and

important. “Many recommendations can

Kottantharayil and team per for med

dry areas with good sunlight.

be (and have been) made based on the

multiple tests including current-voltage

Another important observation was that

survey, and if taken up by the government

characterisation and infrared thermography

the rooftop installations degrade faster

and power plant owners, they would ensure

and tested for interconnect breakage and

than those in larger power plants. Of the

a good long term energy yield” commented

insulation resistance. They inspected 1148

planned hundred GW, 40 GW is expected

Prof. Kottantharayil. With further surveys

solar modules spread over 51 locations across

to come from roof-top installations, so this

planned in 2018 and 2020, these scientists

the country and estimated the degradation

observation is very significant. “Since we see

plan to generate more extensive and reliable

in their performance over the years. The

that rooftop installations are degrading more

data. Surveys like this, with increased scope

chosen locations were grouped into 6 climatic

rapidly than the large power plants, maybe

and diversity, can definitely help achieve

categories; Hot and Dry, Warm and Humid,

it will be a good move to reduce the target

the National Solar Mission targets.

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‘GIGA – WHAT’ Rakesh Zutshi President | ELCOMA India | MD Halonix Technologies Pvt. Ltd

OF STORAGE IN 2018

Arvinder Bir Singh VP | Solar Business Eastman Auto & Power Ltd

Arush Gupta Director | Okaya

Anant Nahata MD | Exicom tele-Systems Limited

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From a Gigawatt dream storing capacity to watt-hour storage, through decades the glorified history of technology is meekly stored with the wonk of storage development. The interdependency to make solar power modus operandi is the associated technology which can store the continuous flow of electricity and deliver it diligently on the time of respective requirement. Despite the sun flooding the earth with enough light every hour to fulfil our energy needs for a year, solar power will not solve our clean energy conundrum on its own. Today, if Indian Solar Industry is the juggernaut, it has also look into the tributary of energy storage to fit as a fiddle in the global solar market. This fascinating solar and storage sector is on the rise after government policies, initiatives and dialogue. Through an intermediate present discourse, industry honchos of the storage industry had their pie to buffet, revering critical and pragmatic retort from Halonix, Elcoma and Okaya. Solar Industry was aloof to storage because of its assumed exorbitance. Today, India’s Renewable energy sources, such as wind and solar is helming towards storage as it’s myths have reverbed as sole provider of energy has well-known that without an associated energy storage facility, the output or longtenure of a successful project is wary. Even when they are plugged into the grid, a storage device is required to smooth the output. Whenever the input into the grid from renewable sources exceeds about 10%, energy storage will be required. Associations and storage industry at large is urging and specifying its way to create local ecosystem and skill training for the much lauded hybrid projects which in recent time has wooed the industry. Dr. Rahul Walawalkar, executive director of the India Energy Storage Alliance (IESA) believes recent government hybrid project models can open up immaculate opportunities for Indian Storage industry. Rahul affirms IESA’s vision of making India a global advanced energy storage systems manufacturing hub by 2020. But in which stature is the storage industry finding itself in 2018?

COVER STORY

Storage! How will it be Trending in 2018? Few experts believe that plunge in the cost of storage, Chinese dominance and competition in battery technology are some of the main developments to monitor in 2018. Arvinder Bir Singh, Vice President, Solar Business, Eastman Auto & Power Ltd. reckons the confluence of powerful trends underway across the nation’s electricalenergy system is driving the need for a drastically different approach to managing the grid system in the 21st century. Among the trends is the rapid penetration of intermittent renewable resources, including distributed wind, solar photovoltaic (PV) and energy storage. Gel batteries are among the latest trends and because of its fixed, non-spill feature it is highly popularized in the market. A gel battery is a valve regulated maintenance free, lead acid battery and is extremely robust and versatile. These types of batteries produce lesser fumes and can be used in places without much ventilation. In a gel battery a pre-determined quantity of an electrolyte, together with sulphuric acid is combined with silica fumes. This chemical reaction results in an immobile, gel like mass giving these batteries their name. The gel batteries are virtually maintenance free as they uses one-way open valves that allow the internal gasses to recombine into water, hence removing any need to check to top up distilled water or monitor water level. Gel batteries are extremely robust and versatile. They are safe to be installed in places where ventilation is limited, due to fact that they have a very low (virtually zero) gas/fumes production, which means you can even install the batteries inside your home. This year, major merger and acquisitions will be on spree and new cost-effective technologies are seemingly noted to hit the mainstream of solar storage market in 2018. Sharing his perspective, Rakesh Zutshi, President, Electric Lamp and Component Manufacturers Association (ELCOMA) of India and Managing Director, Halonix Technologies Pvt. Ltd, said, after achieving considerable growth in the year 2017, the

entire Solar power industry is here to benefit from the emerging positive scenario in the year 2018. It is storage systems that make renewable sources reliable and attractive to electricity users. Once we overcome the obstacle of storage, then the ideal of 24-hour free energy for the people can be realised. Currently the biggest barrier to wide-scale deployment is the high price of batteries; however, significant cost reductions are expected for the future which will surely result into wider application and installation of Solar illuminates like of Solar LEDs etc. Whereas, Arush Gupta, Director of Okaya, believes, with the advent of more affordable

and efficient off-grid solar electric power systems, the Indian solar energy storage market is emerging from its nascent stage to a bright future ahead. Some reports have estimated that the energy storage market for off-grid renewable energy in India will reach at INR 165 billion by 2022. The enhanced penetration of renewable energy system across different segments has given a promising growth opportunity to battery market since 100% backup is requisite to continuous electricity supply during evening hours. India is one of the largest markets for lead acid batteries and it is now poised to adopt advanced energy storage technologies that can act as enablers for technological advanced electric grid and transmission & distribution. Anant Nahata, MD, Exicom tele-Systems Limited adds energy storage is becoming a major player in the global energy market and will continue to grow for the foreseeable future. We expect 2018 to be a breakout year for energy storage with demand largely driven by telecom sector, grid applications and electric vehicles. Government of India is already pushing the electric vehicles which will increase the demand for energy storage technologies specially lithium-ion batteries, telecom sector has already deployed more than 2 GWh of Lithium-Ion batteries in India and is expected to be a major player in 2018 as well, central government and state government are also expected to bring out tenders for gird scale energy storage. As

battery component prices decline further with these deployments, the benefits of energy storage will become more attractive. After several years of laying the groundwork for storage, including evolving market rules for the participation of storage in electricity markets, sharply falling prices for lithium-ion batteries and grid scale storage project demonstrations started with Power Grid Corporation India Ltd. (PGCIL) tenders for Li-Ion, Advanced Lead Acid and Flow batteries for demonstration of grid balancing application in Pondicherry for Policy / Regulatory advocacy for deployment of such technologies for grid stability,

increasing government focus & commitment towards EV sector, conditions seem ripe for storage to really come into its own. PGCIL Project energy storage project is of ‘strategic importance’ for regulators as proof of concept for forming firm regulatory guidelines in favor of new technology. Storage Industry Eyes 163 Billion Saubhagya Yojna Energy storage is playing a critical role in grid balancing with growing renewable energy penetration, power supply-demand management and frequency regulation. Indian Prime Minister Narendra Modi launched a new programme to electrify every willing household in the country by 31 December 2018, using solar, energy storage batteries and LED lighting. The INR163 billion (US$2.5 billion) ‘Saubhagya Yojna’ scheme is aimed at both rural and urban households. This initiative is proposed pack solar power with storage to un-electrified homes – including in remote and hard to access regions – along with five LED lights, a DC fan and a DC power plug. This will also come with repair and maintenance for five years. Elated on the move, Anant said, we welcome this move of Government of India to launch “Saubhagya Yojna” which will help to achieve the electrification of 30 million households across the country by March 2019. Mini and micro grid development across India is likely to be core in achieving the targets under this program. Mini and micro grids

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which will majorly use solar PV technology and new technology batteries to power the rural households will help them in giving basic lifeline electricity from which they may presently be deprived of. Stating visionary and decisiveness, Rakesh affirms, we are committed to contribute our bit in the Government’s ambitious Solar Energy revolution. With the help of private-public partnership the INR163 billion (US$2.5 billion) "Saubhagya Yojna" initiative is well achievable. The Modi government has the following aims: to reduce the useful of harmful kerosene in homes for lighting, improved education and health services, higher connectivity through radio, `TV and mobiles, greater access to economic activity, improved quality of life “especially for women. Added to the benefits of this initiative, Arush purviews, Use of solar energy across the country has become more mainstream after the launch of ‘Saubhagya Yojna’ by the Government. Pradhan Mantri Sahaj Bijli Har Ghar Yojna, or Saubhagya has been truly instrumental in highlighting the huge requirement of renewable power in the rural and urban areas. Okaya is committed to contribute in this noble initiative by launching innovative products for the masses. With the help of front runners like us, the Government’s target from INR163 billion (US$2.5 billion) Saubhagya Yojna is

easily achievable through private-public partnership mode. In December 2016, former energy minister Piyush Goyal had announced more than 16,000 Indian households across 800 remote villages would be given a solar panel, with an eight-hour battery storage backup. The latest Modi announcement is sought to appear to be a huge extension of this plan. Further elaborating on the initiative, Arvinder noted, this Rs. 16,320-crore scheme was introduced to provide electricity to the rural and under privileged sections of the society. The government is aiming to provide electricity to all households, a year ahead of its earlier target of March 2019. This is definitely an ambitious scheme with lot of challenges but will go a long way in improving lives of the poor. The Prime Minister also talked about increase in renewable power installed capacity, towards the target of 175 GW by 2022 and highlighted how the power tariff in the case of renewable energy has been reduced significantly. Thrust is on an energy framework that works on the principle of equity, efficiency and sustainability. Why Storage is still Hard Coping in Solar’s Glory Race? With growing applications and usage of energy storage, energy storage industry is known to create 200+ MWh of opportunities

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for the next five years. But with current Indian solar scenario, storage stills seems to struggle for its space. Multiple reasons are ramified, but Industry stalwarts had fist ratification on this treading storage sector in India’s GW solar industry. Arush foretells, driven by declining cost of the equipments, solar energy storage market is all set to achieve rapid growth in the year 2018. The government support for solar power has already generated considerable demand in the villages and tier-II and III cities all across the country. On the other hand, Rakesh prompts certainly it is! Solar power generation is only successful if it is backed/combined by strong storage systems for unrestricted power supply in grid-connected and off-grid projects. We, being manufacturer of optimal lighting solutions for our customers and partner for their energy saving initiatives, look at solar storage as requisite to application of our products and remain optimistic for moderate polices and innovative advancements. Sharing his metrics, Arvinder said, with so few utility-scale solar-plus-storage projects actually built, we don’t have much data on how their economics work. Their new analysis models the benefit-cost ratio of several solar and storage configurations under present circumstances and projected cases in 2018. The real-world economics will change from place to place, but the trend here is clear: as the share of variable solar generation increases, so will the payoffs for siting storage in the same place. It is easy enough to calculate levelled cost of energy for a solar-plus-storage system, and it will always be more expensive than standalone solar. But that metric fails to capture the additional value that can be gained by adding storage added Arvinder. Purviewing on the eminence, Anant points out, energy storage technologies have strategic importance for India’s energy security and will play an important role into renewable integration, energy access, electric mobility and smart cities initiatives by the Government. The multiyear decline

COVER STORY

in solar PV technology costs has made it competitive with grid electricity prices. The availability of energy storage increases PV penetration, which, in turn, increases self-consumption and helps to reduce the rising energy bills for commercial and industrial consumers. At the grid level, energy storage helps in storing the excess generation and can act as the source of power for the ancillary services applications. As reliable electric power is critical to the operations of commercial, industrial, and institutional users, storage is a must to meet the stringent needs of these applications. Thus, storage is critical for DG optimization, reducing carbon footprint and smooth transition towards clean energy. Storage Technology Shifts – Indian Scenario! Most people with energy storage also have a way to generate energy on-site. A common source of at-home energy generation is rooftop solar panels. Rooftop solar is a fantastic way to harness the free, clean energy that the sun gives off every day, there’s a good reason why solar panel sales are growing exponentially every year. For decades Lead-Acid has worn the crown as per technology and availability in the Indian market as few argue new technologies perhaps not Li-ion but advance and cheap technology will dress the growing market. Wooing 2017 and looking forward to 2018, Anant thinks, the Distributed Energy Resources (DERs) are expected to play a vital role in the way we generate and consume the electricity. As the penetration of Solar PV increases and with the continued declining cost trend of solar and storage, the commercial and industrial consumers are expected to install more and more DERs which will help them to become independent or reduce their dependence on the grid power and diesel generators. Consumers will be able to change their power suppliers just like telecom services. Power demand growth rate will increase bigtime due to Saubhagya Scheme and industrial growth. We are therefore expecting the market for

batteries for commercial and industrial PV users to expand rapidly and are ready with the solutions to meet the demand. Arvinder thinks, 2018 is expected to be better as people are getting aware about the renewable sources of energy. India is blessed with ample amount of sunlight so there is a great scope for the solar industry in India. Approximately half a million new jobs will be provided by the solar sector in our country. In a way, the solar industry is quite labour intensive compared to the fossil fuel industry; you need a lot of man power to install these solar panels, which have a lot of parts, to generate a similar amount of power to a coal or gas plant. Therefore, you also need more maintenance people to keep the electricity running. If we compare Solar with thermal energy, solar form of energy is way safer for the environment as it is green energy and does not emits harmful gases like carbon. The return on investment of solar is 4 years but in long term it is way more profitable for us and our atmosphere as well. 2018 is also expected to be the year of green shift, which means people are going to shift from non-renewable sources to renewable sources of energy which will definitely give a rise in the solar industry. Arush stated technological advancements in cell structure and various new innovations in module design will be among the key technology shifts in India in the year 2018. Okaya is working continuously to introduce new technologies in Solar storage segment. As a top-notch brand of batteries, we are offering distinct solar batteries which have high demand in the market due to their easy and efficient working. Emphasizing on the dynamics of the technology, Rakesh replied, rapidly changing technologies have played major role in making solar energy consumption more economical for the millions of the masses in India. This trend is expected to continue in the New Year as well. Halonix has already introduced its technologically advanced LED Solar Lighting Luminaries and we are looking forward to come up

with more such products in the year 2018. Halonix continues to push the boundaries to develop better solutions adapted to Indian conditions across the spectrum of home and institutional lighting. What’s the Blueprint for a Consolidated Future? Alike other technology industry opting for a consolidated and holistic approach to deliver instantaneously to the respective market demands, solar industry has been a cut throat market. Will and how storage industry aligned with the solar industry replicate this successful market approach and will this strategy work? Answering the above, Rakesh said, with the everyday rising power demand, India has become a hotbed for next solar energy revolution. We look forward to increase our participation in it and augment an all-round market strategy to tap its true potential. The disparity in pricing offers in the NLC India tender are evidence of “inconsistent understanding of technical specification” in the deployment of storage assets. Solar industry has already come of age in India and we have followed a holistic approach towards development in the last one decade. The industry has gained considerable support from the central government all through these years. The government’s push in the form of various incentives has finally started showing results now. At Okaya, we have successfully developed our specific pricing and product strategies for our ambitious expansion in Indian Solar market stated Arush. Putting his view on Mercom Capital latest findings, Arvinder added, according to energy market tracker Mercom Capital, a total of 1,456 MW of solar power projects was tendered and 1,232 MW auctioned in the third quarter as against 3,408 MW of solar projects tendered and 2,505 MW auctioned in the second quarter. The industry is looking forward to more clarity in the sector to realize government’s final target achieving 100GW by 2022. We would urge the government to come out with long-term policies that would boost the confidence

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of the developers. Clarity is required on measures like reverse auction mechanism and anti-dumping duties of equipment. Growth-Card of the Storage Companies Amidst the growth of utility-scale solar projects, 2017 all-round was a non-jerking terrain for Indian solar industry. Major international conglomerates bought up storage startups. And all the major solar developers started getting into the game. To understand on how did Indian storage companies notched their respective market and logged growth, Ravinder disclosed, manufacturing coupled with an active R & D cell are our core thrust areas and form the very structure of our operations. The manufacturing facility at Nalargargh is strategically located near major markets to ensure that the produce is well traded and marketed. The suppliers of the raw materials that are required for manufacturing are carefully selected to make our facility logistically efficient. The Nalargargh plant is the leading manufacturing unit located in India that delivers over 1 lakh 30 thousand Tubular LA, tubular Gel & E-Rickshaw batteries every month. In future, we plan

to expand our manufacturing facility and increase our production from 1.3 lakh batteries per month to 2.5 lakh batteries per month by the year 2020. For Halonix Technologies, 2017 was a landmark year for the growth of the company, Rakesh elated on the current statusquo, said, we successfully achieved the distinction of becoming a dominant player in all our product categories including the branded Halonix LED Solar Lighting Luminaries. As we have already gained prominence in the market we expect to touch new heights in the New Year 2018. Led by massive growth in demand for cutting edge LED technology, the LED lighting sector as a whole has also revealed significant growth potential with successfully occupying the major pie of the overall lighting market. This proportion will grow even faster in the New Year with the government’s continuous efforts towards making the LED revolution a success in the country. Such positive scenario will further help us achieve exponential growth in the year 2018. The success of Halonix has been built on the

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back of its unparalleled ability to develop, test and deploy lighting solutions relevant and suitable for Indian conditions. Due to our keen focus on innovation and quality control, the brand Halonix is widely accepted all across India by consumers and trade alike. At Electric Lamp and Component Manufacturers’ Association (ELCOMA) India, we are already working towards transforming India into a global manufacturing hub of superior, but economical LED products. We are sure in the New Year as well, all our efforts in this direction will assume greater significance added Rakesh. Traversing across Exicom’s major achievements and accoldaes, Anant notes, 2017 has been a year of action for us. We have supplied over 600MWh Lithium-ion Battery Solutions to our customers since 2013 out of which 180 MWh have been deployed in the year 2017 only. Exicom is the first company to put India on the megawatt scale storage projects map and building repository of various reference sites for policy/regulatory advocacy. We maintained our leadership position in deployment of energy storage technology despite presence & entry of

various big global players in the industry. We will further grow as the Industry size grows. Being an early entrant, we already have an advantage over the competition through our learnings & experience in this field through our mass deployment of said technologies. Our excellent Pan India customer support network and infrastructure of 6 Battery Repair Centers further add to our capabilities. We are a fully integrated company from designing, manufacturing to turnkey services to meet customized needs for all types of energy storage solutions through our world class certified manufacturing setup and R&D facilities accredited with ISO 9001-2000, ISO 9002 and ISO140001-1996. On EV front, Exicom successfully deployed AC and DC EV Chargers under India’s First Energy Efficiency Services Limited (EESL) procurement program at different locations in Delhi-NCR region as per latest Bharat Specification after successfully winning through techno-commercial bidding process. We also got empaneled by leading automobile manufacturers in India. We are shortly putting up our Lithium-ion

Battery Module Assembly Plant to support indigenization and reach closer to our customers. We have an internal target to deploy 1 GWh of Energy Storage Solutions across different applications in the financial year 2018-19. It is just matter of time when Exicom shall be playing a major player in the EV Battery Solutions and charging infrastructure in the country. Sharing Company’s overview and achievements in 2017, Arush said, the year 2017 has been another strong year for our business. It has been a landmark year for us in terms of our expansion and growth in solar power products segment. Simultaneously we have also gained dominant position in power tubular batteries in all the major markets. In the New Year 2018, our focus will remain intact on achieving much more aggressive growth in all our product categories. It goes well along our brand identity which has now gained recognition all around the world. We are already using our expertise to successfully deliver and meet the growing demand for our products in both solar as well as in power tubular

batteries segments. Along with a sense of pride and loyalty, our strategic focus has allowed us to benefit from increasing consumer demand and we will continue to grow across all the regions. Our ability to achieve our growth targets is the testament to our commitment to invest in consumer focused products manufacturing. Overall, with an installation base of more than 5 million batteries and a nationwide network of more than 40,000 dealers, 1400+ distributors, 41 branch offices and nine plants, ‘Okaya’ is among the fastest growing battery brands in India.

- Niloy@saurenergy.com

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SOLAR HOME LIGHTING SYSTEM POWERS RURAL INDIA With no energy costs and often simple

lighting system is concerned, it is currently

in their projects to ensure safe ecological

installation, more and more people

in its nascent stage believes industry

environment. Obviously the emerging

particularly in rural areas are putting their

players. Rakesh Zutshi, President, ELCOMA

scenario has thrown open a huge window

faith into the solar revolution and switching

India and Managing Director, Halonix

of opportunity for all the manufactures.”

to harness energy from the sun by using

Technologies Pvt. Limited, said, “Although

He further said that with more and more

solar home lighting systems. Recent

in its nascent stage currently, the market

branded players like Halonix venturing

advancements in the technology helped

scenario of solar home lighting system is

into this segment, rapid advances in the

millions of households to use solar home

quite promising in India. Rural India has

technology to bring out state-of-the-art

lighting devices.

also started witnessing considerable influx

solar home lighting systems has also taken

The Solar Home Lighting System is designed

of solar home lighting systems due to poor

a great leap forward.

to provide uninterrupted light by the use

state of grid electricity. If we talk about urban

Halonix Technologies is a pioneer in

of Solar Energy where power supply is not

India, most of the real estate developers

lighting industry and their product range

available during night time. Solar powered

across the country have recently started

extends to both consumer lighting as well

home lighting system that uses solar power

incorporating solar home lighting systems

as Institutional requirements. Solar Panels,

and LED lighting technology is a more efficient way. It includes solar panel, battery, inverter and CFLs, fan and mobile charging point (number of devices depends on the capacity of the panel). Halonix Technologies - Market Scenario, Challenges and Growth

Halonix Technologies Pvt. Limited is amongst India’s fastest growing residential and institutional lighting company. As far as the India’s market scenario for solar home

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HOME LIGHTING

Solar Invertor and home UPS, Solar home lights and LED Solar lighting luminaries are among the major products that have emerged and gained prominence in the Indian market over the past few years. The biggest market players in the solar home lighting sector also face huge challenges in this industry. “Solar power has undoubtedly been successful in bringing light to even remote villages in the country. Still, the major key barriers are building demand among last-mile customers and ensuring delivery to them. The solar home lighting sector is also struggling with the gap and confusion between creation and implementation of different policies pertaining to solar roadmaps in India,” said Rakesh Zutshi. On upcoming products the company is planning to launch this year, Zutshi said, Halonix Technologies Pvt. Ltd. has already ventured in this segment in a big way with its technologically advanced LED solar Lighting Luminaries and we are looking forward to come up with more products in this segment. Halonix continues to push the boundaries to develop better solutions adapted to Indian conditions across the spectrum of home and institutional lighting.” Solar companies are playing a vibrant role to fulfill India’s ambitious energy goals. The country needs to expand their presence in overseas. “India has already achieved the distinction of being one of the largest solar markets across the world. The government’s efforts towards taking the country’s renewable energy capacity to 175 GW by 2022 which comprises 100 GW solar is truly commendable, which has undoubtedly helped the solar industry achieve considerable growth rate. Make in India is another wonderful initiative that is playing a key role in reducing the dependency of Indian solar industry on import for the crucial and costly equipments. Although the Indian solar industry has progressed at an unprecedented rate, India needs to boost its efforts to make a mark in the global energy industry as countries like the Philippines, South Africa, Morocco, Chile, and Kenya are making investments in solar energy,” Zutshi added.

Other Major Companies in Solar Home

Su-Kam one of India’s solar power solutions

Luminous Power Technologies

Su-Kam’s solar home lighting system is

Lighting Systems

company also offer solar home appliances. a portable mini off-grid system that lets you use solar energy in an efficient and inexpensive way. It also comes with fan, light and TV that run on DC, so that no energy is wasted in DC to AC conversion. Su-Kam manufactures inverters, UPS, batteries, battery equalizers and complete range of solar products. It’s solar DC homelighting systems have brought light to many household in rural India. Kunwer Sachdev, founder of the Su-Kam has said that his dream is to see solar in every house in India.

Luminous Power Technologies a home

Kavita Solar Energy Private Limited

electrical, power back up, batteries and solar applications company is upbeat on business prospects, particularly in the solar home lighting system. It introduced LED (light emitting diode) based Solar Lighting Solution, an ideal low cost solution for Rural Home Lighting requirements few years ago. While commenting on the government’s move to push the solar power sector growth, Vipul Sabharwal, Managing Director, Luminous, said, “This is a huge unfolding market with immense potential. Significantly, the implementation is not just in urban parts but in the rural areas across the country as homes, commercial establishments, educational institutions and hospitals and so on, are keen to have robust and reliable back-up solutions.” Su-Kam- Lighting Your Home

Kavita Solar energy Private Limited has been able to carve a niche for solar home lights within a very short span of time. Introduced in 2005, the company is the manufacturer, exporter and supplier of solar home appliances. These appliances provide the power supply to those areas where power supply is not available or is available scarcely. Some of the key features of Kavita’s solar home power system includes efficient over charge and deep discharge protection, electronic overload protection avoiding blowing of fuse except in reverse battery, short circuit protection on load side and multi-level overload protection. - Aaqib@saurenergy.com

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Neelesh Garg

Director | Saatvik Green Energy

SOLAR MARKET HAS A LOT OF SCOPE IN INDIA Saatvik Green Energy is on a mission to lead the global transition to renewable energy in India. Having established its manufacturing facility in the state of Haryana, Saatvik actively supports the initiatives to provide clean sources of energy, by manufacturing and distributing world class solar photovoltaic modules, globally. Neelesh Garg, Director, Saatvik Green Energy in conversation with Aaqib Javeed, Journalist, Saur Energy International, shares the company plans, development of both products and services and the future of Indian PV market.

What is Saatvik’s role in the clean energy initiative? Saatvik being a solar focused company not only wants everyone to shift to cleaner energy sources but also focuses a lot on the quality of products/services in order to actually be sustainable in the future. Can you highlight some of the Company’s key achievements in the last few years? Saatvik is a relatively new entry in the industry, but we have already satisfied many developers and retail clients, and made a place for ourselves in the region as a quality conscious company. Can you comment on the concurrent development of both products and services? While the major focus till date has been on manufacturing of solar modules, Saatvik is already planning to enter commercial scale EPC services for its clients in the region. Saatvik is also developing new solar modules with the latest technologies. So you provide services in various areas in the solar industry. (Solar home lighting, solar lanterns, solar pumps, solar water, off grid rooftop etc.) How is the solar PV market currently performing in India?

Q Q

Q 34

I think that the solar market has a lot of scope in India, as people are still learning about the technology. As soon as the conversion from learning to adaption increases, it will boost the market. The government is playing a major role in the conversion process by not only educating the citizens, providing the right financial incentives, but also enforcing implementation via local agencies. Saatvik’s solar modules are marketed Pan India and in overseas geographies. Can you share with us the tests and checks throughout the module manufacturing process to ensure highquality module production? Saatvik’s production process is highly quality controlled, right from receipt of raw materials to final dispatch of products. The incoming quality inspection is very stringent, with all equipment installed for checking the quality of cells, EVA, backsheet etc. There are 2 stages of EL inspection and 3 stages of visual inspection in the line, leaving no room for error. The final quality check is performed right before the modules are packed, providing the finest quality product to the customer. What are the main challenges India’s solar industry is currently

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facing and where do you see the future of the Indian PV market? Solar industry in India has supply demand mismatch. The supply of Indian made products is more than the demand, due to cheaper alternatives/imported goods. The market forces hence create a lot of competition, lowering both the quality and margins of business owners. This can hinder sustainability of many companies in the future. Only the ones who can absorb price competition while still maintaining the quality will be able to survive. Tell us about the Company’s strategy in the future particularly the technology trends in 2018 and upcoming products you are launching? We have expansion plans for this year, after which we will be able to deliver 500MW of modules annually. The expansion will be strategized in a way that we can deliver the latest product technologies available worldwide to our customers in India. Saatvik is also planning to launch fully integrated EPC division in the region of operation. Apart from solar modules, Saatvik is also looking at allied products, information about which will be revealed in due course.

SMART GRIDS OVERCOME

RENEWABLE ENERGY VARIABILITY AND UNCERTAINTY Smart grids—modernized networks that enable bidirectional flows of energy and use two-way communication and control capabilities, and “distributed generation”— will address the variability and uncertainty of RE without utilities having to add to their conventional power stations.

their manufacture and maintenance than

a wind farm might reliably produce power

they save in producing their electricity

for 40 percent of the time, just when that

and suggest instead storing the carbon

power will be produced is very difficult to

that conventional power stations emit so

predict. The challenge becomes greater

we can carry on using them.

as the proportion of RE as part of total

However, most developed nations have

generating capacity increases.

policies that mandate an increased

Uncertainty and variability of supply is a

proportion of RE. The U.S., for example,

nightmare for utility managers because

benefits from the Renewable Electricity

they undermine reliability—a lack of

Renewable Energy (RE, which includes

Standards that have been developed by

which incurs harsh financial penalties

hydro, biomass, and geothermal as well

36 states, which on average set targets

from regulators.

as the more familiar photovoltaic (PV)

for 20 percent of total power consumption

The electricity industry uses two indices

and wind) faces it critics. At one end of

from RE by 2020. Elsewhere, Germany is

to measure reliability:

the spectrum are those that argue global

well on the way to achieving a 35 percent

• The System Average Interruption Duration

warming is a conspiracy designed to play

contribution from RE by 2020 and China

Index (SAIDI) reflects the average number

into the hands of politicians and major

generated 23 percent of its electricity

of minutes per year that customers are

financial institutions so there’s little reason

from RE in 2014.

without electricity.

not to continue burning fossil fuels in our

The downsides of RE are variability (for

• System Average Interruption Frequency

power stations. Others with a less extreme

example, change of generation output

Index (SAIFI) reflects the average number

viewpoint concede the Earth is warming

due to fluctuations of wind or sun) and

of actual outages customers experience

and carbon emissions probably don’t help

uncertainty (the inability to predict the timing

per year.

but insist nuclear power (fission today

and magnitude of changes in generation

In 2007 (a good example because the

and fusion tomorrow) will save us. Still

output). As such, there is no guarantee

proportion of RE was much lower than

others claim that solar panels and wind

that RE resources will be available when

today) the U.S. had an average SAIDI

turbines produce more carbon during

demand peaks arise. For example, while

(across all electricity utilities) of 240 and

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Steven Keeping gained a BEng (Hons.) degree at Brighton University, U.K., before working in the electronics divisions of Eurotherm and BOC for seven years. He then joined Electronic Production magazine and subsequently spent 13 years in senior editorial and publishing roles on electronics manufacturing, test, and design titles including What’s New in Electronics and Australian Electronics Engineering for Trinity Mirror, CMP and RBI in the U.K. and Australia. In 2006, Steven became a freelance journalist specializing in electronics. He is based in Sydney. SAIFI of 1.5. Put another way, the power

utilities to “hedge their bets” by backing

was on 99.964 percent of the time. Germany

up RE with conventional generation.

fared even better that year, with power

For example, a recent example of wind

available 99.996 percent of the time.

plant experience in the U.S. showed that

To ensure such reliability, conventional

conventional reserves have been increased

electricity systems are planned around

up to 9 percent to accommodate wind

historical and anticipated demand. Large,

penetration of 15 percent. Although such

centralized baseload plants—which handle

policies increase both cost and carbon

most of the “round-the-clock” electricity

emissions, no one wants to be blamed for

requirements and are typically coal- or

blackouts caused by lack of wind or sun.

uranium-fueled—provide large amounts of

Tomorrow, smart grids—modernized

consistent, inexpensive power. Intermediate

networks that enable bidirectional flows of

load plants are generally combined cycle

energy and use two-way communication

natural gas plants and can be ramped-up

and control capabilities, and “distributed

and -down but are most efficient when they

generation”—will address the variability and

run for a number of hours. Baseload and

uncertainty of RE without utilities having to

intermediate load plants are supplemented

add to their conventional power stations.

by gas- or oil-burning power stations during

Building smart grids takes time, but

times of peak demand. These plants can

the good news is that this can be done

increase or decrease output very quickly,

without interrupting current RE initiatives.

but are not particularly efficient.

A study by the National Renewable Energy

Today, this emphasis on reliability causes

Laboratory (NREL) in the U.S. found that

integration of 35 percent of wind and solar energy into the electric power system— saving carbon emissions approximately equivalent of taking 22 to 36 million cars off the road—will not require extensive new infrastructure if changes are made to operational practices. Key to making this happen is increasing the geographic area over which the wind and solar resources are drawn to substantially reduce variability. But once RE penetration approaches 50 percent smart grids will be needed to underpin future reliability. Such networks will knit together hundreds of small generators such as PV panels on domestic roofs, windfarms and tidal generation with stored energy schemes such as water pumped uphill when electricity is plentiful and released to power turbines when it’s not. This distributed generation will be sited closer to population centers than today’s giant power stations, shortening transmission and distribution feeders (the poles and wires) and reducing both their cost and the power losses associated with them. In practice, rapid communication technologies will warn operators of, for example, approaching clouds allowing a smooth transition from PV to stored water generation, using Intelligent Electronic Devices to switch the direction of power flow and then change it back again when the sun reappears. There are some major engineering and security challenges to be resolved, and considerable investment needed, before nationwide smart grids are rolled out. But if we shy away from these challenges, we’ll forever be trading-off the benefits of clean power against reliability of supply and providing more ammunition for the climate-change sceptics.

VOL 2 l ISSUE 6 l FEBRUARY 2018 l SAUR ENERGY INTERNATIONAL

MARKET GLANCE

Global Concentrated Photovoltaic (CPV) Market Analysis to 2025: Market is Expected to Reach USD 6.35 Billion The global concentrated photovoltaic (CPV) market is expected to reach USD 6.35 billion by 2025 at a 10.1 percent. Demand for concentrated photovoltaic is anticipated to register rapid growth owing to its ability to harness solar energy in areas with no space constraints. CPV technology is yet to gain worldwide acceptance and manufacturers are constantly engaged in developing new modules with improved efficiency. Growing popularity of PV has overshadowed the efficiency and advantages of CPV. However, the technology shows great promise owing to its scalability and efficiency. Globally, Asia Pacific is the largest market for CPV. Presence of a large number of module manufacturers, coupled with favorable government initiatives, is driving the demand for this technology. The advantage of low labor cost and introduction of smaller rooftop systems are also expected to boost market growth. Industry Insights The global concentrated photovoltaic market size was estimated at USD 2.67 billion in 2016. Growing demand for gridconnected electricity, coupled with awareness regarding use of renewable resources for power generation, is expected to boost the adoption of CPV technology in a wide array of applications. Rapid decrease in the price of conventional PV modules has resulted in increased demand for CPV and other silicon-based solar technologies. Moreover, CPV requires a relatively smaller area for installation, which, in turn, is anticipated to boost its demand in the near future. Solar technology is chiefly deployed in areas with direct sunlight. The industry is still at a nascent stage, owing to which, it is mostly used for special purposes. Performance, cost, reliability, and trade-offs are major factors taken into consideration by manufacturers in the global market for concentrated photovoltaic. U.S. is a rapidly growing market on account

of increasing power demand and stringent government regulations pertaining to the use of limited natural resources. This is expected to trigger the growth of renewable energy resources over the forecast period. Concentrated photovoltaic accounts for over 93.0% of the installed capacity in North America. Augmenting CPV installations at public places such as educational institutions are expected to boost the market over the forecast period. Low-cost and large-scale applications act as major drivers for CPV technology. Previously, high cost of CPV systems compared to PV systems was a major barrier for the CPV industry. In recent years, however, declining prices of silicon PV and continuous improvements in design and technology have had a positive impact on the market. However, falling prices of silicon PV drove a few players to exit the industry. The manufacturing capacity took a major hit in 2015 after France-based Soitec and China-based Suncore decided to stop manufacturing concentrated photovoltaic. Growing popularity of PV modules and rapid decrease in prices of CPV modules have resulted in manufacturers abandoning the production of CPV. The low popularity of CPV in the industry can also be attributed to its late introduction in an arena that was majorly dominated by PV. Regional Insights

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By volume, Asia Pacific was the largest regional market with a share of just over 50.0% in 2016. The demand in the region is especially driven by China, which is expected to increase its concentrated photovoltaic capacity at a CAGR of 12.2% from 2017 to 2025. The 13th Five Year Plan adopted by the government of China aims at reducing carbon footprint and this is driving CPV installations in the country. Furthermore, the direct normal irradiance over China is also high, which, in turn, is likely to boost the market. Middle East and Africa is expected to be the second-fastest growing region, with demand majorly driven by rising installations in South Africa. Areas covered in sand dunes receive maximum sunlight in terms of surface area and this significantly boosts the installation of CPV. Upcoming solar projects in Morocco and Jordan are expected to further promote demand for concentrated photovoltaics over the forecast period. The CPV market in North America is expected to register a CAGR of 10.9% from 2017 to 2025 in terms of volume. Favorable state and federal policies in U.S. and Canada are primarily driving demand for this technology. Legislative mandates and financial incentives are expected to drive CPV installations over the forecast period.

MARKET GLANCE

Global Solar Market to Reach Over 106GW in 2018, TrendForce Forecasts Global solar demand in 2018 is expected

to reach 105.88 GW, up from roughly 100 GW in 2017, driven by two installation rushes in China and e recovery on the European market. This is a forecast by EnergyTrend, the green energy research division of Taiwan’s TrendForce. It said today quarterly installations will remain above the 15-GW threshold throughout the year, but the geographic distribution will vary. Chinese Demand

According to EnergyTrend’s latest report, China’s annual grid-connected PV capacity reached 52.83GW in 2017, the highest one all over the world. The U.S. came second place with 12GW. The number for Japan was only 6.09GW, as the result, India, which recorded 9.26GW, has surpassed Japan and ranked the third. With strong momentum from China, the market share of Asia Pacific in global solar market is estimated to hit a new high of 72% in 2017. EnergyTrend analyst Rhea Tsao points out the year 2016 witnessed the highest growth of global solar market, an increase of 42.5% over the previous year. In 2017, the growth rate was 26%, pushing the market size over 100GW for the first time. “The growth over the past two years is led by explosive demand in China,” says Tsao. China Will See Two Installation Rushes in 2018 Due to Adjustment of FiT, and Europe will enter a recovery phase The Chinese market continues to grow excessively, mainly driven by supportive policy and production capacity expansion. In particular, distributed generation (DG) systems, which are currently not subject to the quota of FiT, had an estimated grid connection of 19GW in 2017, more than 4 times of 4.23GW in 2016. According to recent announcement by the Chinese government, large-scale ground-mounted

power plants will face stricter regulations,

Tsao points out that the growth in Chinese

while DG systems and PV Poverty

market will slow down from 2018 to 2020.

Alleviation projects will have more room

However, the European market will enter

for growth.

a recovery phase and become one of

In addition, National Energy Administration

the major drivers to keep global solar

(NEA) of China released the new feed-in

market size above 100GW. Since 3Q18,

tariff (FiT) for 2018 at the end of December

large-scale ground-mounted power

2017, and the adjustment will cut subsidies

plants in France, the Netherlands and

for solar PV systems. Ground-mounted

Spain will be completed and connected

projects that are filed before December

to the grid. In addition, Minimal Import

31st 2017 and completed before June

Price (MIP) measurement of EU will end

30th 2018 will be applicable to the 2017

on September 30, 2018, making Europe

FiT. Projects that are filed after January

a highly competitive market since then.

1st 2018 and completed grid-connection

As for 2018, EnergyTrend estimates the

in 2018 will be applicable to the 2018 FiT.

global solar demand to reach 105.88GW.

Therefore, EnergyTrend forecasts that

China will remain the largest market,

there will be two installation rushes by

and the European market will increase.

June 30th and December 30th 2018 in

Meanwhile, demands will come from

order to enjoy higher subsidies. NEA

different markets in every quarter of 2018,

also announced quota of 5GW for the

resulting in at least 15GW installations

Top Runner Program, which needs to be

per quarter. Moreover, 4Q18 will see

grid-connected before December 30th

substantial demand increase due to the

2018. All of these quotas above will reach

second installation rush in China.

33.1GW. The total annual grid connection, including ground-mounted projects, DG systems, PV Poverty Alleviation projects etc. is forecasted to reach 46.7GW in 2018, a slight decrease.

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MINISTRY

OF NEW AND RENEWABLE ENERGY Ministry of New and Renewable Energy has commissioned a study on â&#x20AC;&#x153;Economic Rate of Return for various Renewable Energy Technologiesâ&#x20AC;?. The objectives of the study include: a) economic impact of renewable energy; b) estimation of economic rate of return of various renewable energy technologies; c) comparing economic and financial rate of return; and d) estimation

of justified level of incentives for select renewable energy technologies. The draft report of the study has been prepared. It is proposed to finalize the report through due consultation process, incorporating views/inputs from the relevant stakeholders. Accordingly, comments/ observations/feedback and other relevant inputs are requested

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from industry, developers, policy research institutions, think tanks, academia, electric utilities and other stakeholders on the above mentioned draft study report. The inputs can be sent through email to Shri Dipesh Pherwani, Scientist-B, Ministry of New and Renewable Energy (Email: dipesh. mnre@gov.in ) and the last date for submission is February 15, 2017.

MNRE DRAFT REPORT

DRAFT REPORT

Economic Rate of Return of various Renewable Energy Technologies

1. Introduction

In mid-2017, the Ministry of the New and Renewable Energy (MNRE) commissioned a research project to study “Economic Rate of Return for various Renewable Energy Technologies” in India. The Terms of Reference (ToR) for the study as defined by MNRE are: • Study the economic impact of renewable energy both by taking into account their direct costs, as well as their positive impacts to the society, such as environmental benefits linked with a reduction in localized pollution and also CO2 emissions reduction, additional employment creation, etc.; • Estimate Economic Rate of Return (ERR) of various renewable energy technologies including Wind, Solar, Waste-to-Energy, Biogas/ Bio CNG, Hydro (up to 100 MW capacity) taking into account the economic costs to society; • Compare the ERR with the Financial Rate of Return (FRR) of the renewable energy technologies; and • Estimate justified level of incentives for promoting select renewable energy technologies in view of economic/social benefits.

1.2 Background

Climate change is one of the greatest challenges facing mankind this century. Power generation from fossil fuel sources (primarily coal) is credibly recognized to be a major source of emissions that contribute to global warming. In late 2015, at the 21st Conference of Parties (COP21) in Paris under the United Nations Framework Convention on Climate Change (UNFCCC), more than 140 countries from around the world submitted their Intended Nationally Determined Contributions (INDCs) to reduce their greenhouse gas emissions. In its INDC, India pledged to: • Reduce the emissions intensity of its GDP (Gross Domestic Product) by 33-35% by 2030 from 2005 levels; and • Increase power generation capacity from non-fossil fuel sources to about 40% of total installed capacity in 2030. In this context, renewable energy (RE) is expected to play pivotal role. With abundant natural resources for solar power, wind power, bio-energy and hydro power, the Government of India in 2015 set a target of achieving 175 GW of renewable energy by 2022. This target comprises 100 GW solar power, 60 GW wind power, 10 GW bio-energy, and 5 GW small hydro power. This is expected to increase the share of RE in India’s electricity generation from 5% in 2015 to 10% in 2022 (NITI Aayog, 2015). While the need for RE deployment to curb emissions is wellrecognized, there is a need to gain clarity of the full socio-economic costs and benefits of large-scale deployment of renewable energy sources, beyond reduction in emissions from fossil fuel-based generation. There are a few major issues that need to be addressed to prepare

for large-scale RE deployment, particularly for wind and solar power. The electricity generation from these renewable energy technologies (RETs) is variable, intermittent and non-dispatchable. Effective utilization of renewable energy sources for meeting the demand for electricity in a reliable and secure manner, therefore calls for additional infrastructure for balancing, providing flexibility, energy storage, etc. which have associated costs. These costs, like the costs associated with replacing ageing infrastructure or introducing smarter grid functioning or addressing rising peak demand, are borne by the consumers. However, it would be inappropriate to attribute these costs entirely to renewable energy, since most of the aforementioned infrastructure would also be used for handling variation in load as well as generation from conventional sources and would contribute to more flexible grid operation – which in any case is a necessity even without RE in the generation mix. In case of solar power, there is also a concern of growing outflow of foreign exchange reserves from the economy since the majority of the solar PV modules and inverters (which together make for up to 60-70% of project costs) used in India are imported. This would normally not have been a concern in the wind power industry since the domestic manufacturing base for wind turbines and other equipment is quite strong. However, the Government of India’s (GoI) recent impetus to introduce competitive bidding in the wind sector has led to concerns among domestic manufacturers about ceding market share to foreign players as power producers may opt for foreign equipment to beat the competition. However, a trade deficit does not necessarily imply an economic cost, and this has been dealt with in detail in the relevant chapter. Further, RETs offer certain distinct benefits that are commonly not accounted for. For instance, solar power presents significant potential for employment generation. This potential is even higher for the rooftop solar power segment, for which the Government of India (GoI) has set a target of 40 GW out of the total target of 100 GW solar power generation capacity by 2022. Studies suggest that solar power may have the highest potential for job creation among various power generation options, including wind, biomass, coal, gas, etc. Another oft-ignored benefit from RE is the avoidance of adverse health impact due to coal mining and coal-based power generation. The health costs of emissions from coal-based power plants include costs associated with premature cardiopulmonary deaths and illnesses from the chronic effects of long-term exposure and the acute effects of short-term exposure. Climate change caused by GHG emissions also has numerous other environmental costs related to issues such as changes in net agricultural productivity, property damages from increased flood risks, etc. The full gamut of these costs is encapsulated into the Social Cost of Carbon (SCC), which is meant to be a comprehensive estimate of climate change damages. Under the Sustainable Development Goals (SDGs) adopted by the

1. http://niti.gov.in/writereaddata/files/writereaddata/files/document_publication/report-175-GW-RE.pdf VOL 2 l ISSUE 6 l FEBRUARY 2018 l SAUR ENERGY INTERNATIONAL

MNRE DRAFT REPORT United Nations as the post-2015 Development Agenda for the world, the following goals are of particular significance in this context: • Goal 3 (Good Health and Well-Being) targets substantial reduction in the number of deaths and illnesses from pollution-related diseases • Goal 7 (Affordable and Clean Energy) aims to ensure access to affordable, reliable, sustainable and modern energy for all • Goal 13 (Climate Action) advocates urgent action to combat climate change and its impacts by regulating emissions and promoting developments in renewable energy There is another economic benefit of renewable energy deployment that is commonly missed, i.e. its contribution toward ‘strategic autonomy’ for the country’s energy sector. Decreased reliance on imports to meet the needs of a commodity as critical as energy supply is certainly a benefit for the economy. In light of the foregoing, it becomes imperative that the costs and benefits of RE be quantified for India from an economic standpoint to serve the purposes of (i) advancing India’s action towards contributing to the SDGs, (ii) improving energy access in the country, and (iii) aiding the government in the macro-level policy for the electricity sector by internalizing the social-economic costbenefit of RE (viz. carbon taxation, RE deployment plans, budget outlay for electricity sector, etc.). Under the Sustainable Development Goals (SDGs) adopted by the United Nations as the post-2015 Development Agenda for the world, the following goals are of particular significance in this context: • Goal 3 (Good Health and Well-Being) targets substantial reduction in the number of deaths and illnesses from pollution-related diseases • Goal 7 (Affordable and Clean Energy) aims to ensure access to affordable, reliable, sustainable and modern energy for all • Goal 13 (Climate Action) advocates urgent action to combat climate change and its impacts by regulating emissions and promoting developments in renewable energy There is another economic benefit of renewable energy deployment that is commonly missed, i.e. its contribution toward ‘strategic autonomy’ for the country’s energy sector. Decreased reliance on imports to meet the needs of a commodity as critical as energy supply is certainly a benefit for the economy. In light of the foregoing, it becomes imperative that the costs and benefits of RE be quantified for India from an economic standpoint to serve the purposes of (i) advancing India’s action towards contributing to the SDGs, (ii) improving energy access in the country, and (iii) aiding the government in the macro-level policy for the electricity sector by internalizing the social-economic costbenefit of RE (viz. carbon taxation, RE deployment plans, budget outlay for electricity sector, etc.). 2. The Economic Impact of Renewable Energy

2.1 Understanding the economic impact of RE deployment

It is widely acknowledged that electricity generation from renewable energy sources makes significant contribution to sustainable development. Apart from the significant environmental benefits, it has a lot to offer for social and economic development. Use of renewable energy reduces harmful greenhouse gas emissions, minimizes impact on natural resources and manmade capital

including water, land, forests, infrastructure, and at the same time avoids damage to human health which would otherwise have been caused from fossil fuel-based electricity generation. Further, deployment of renewable energy creates employment opportunities and promotes investment and trade, thereby promoting economic growth. With regard to international trade, India is a net exporter of wind farm equipment, thus contributing to India’s foreign exchange earning while generating spill over effects along the production and distribution network. In the context of benefit assessment, it is important to acknowledge various positive outcomes of the socioeconomic conditions of decentralized renewable energy project beneficiaries. Access to reliable and clean electricity opens a plethora of opportunities for society that include improved health thereby reducing mortality, increased literacy, better quality of life through employment, etc. Based on the above discussion, the economic benefits and costs parameters for various renewable energy technologies have been categorized as presented in Figure 1. From Figure 1, the parameters for socio-economic benefits and costs include: (i) avoided health and environment cost from coalbased power generation, (ii) Social Cost of Carbon, (iii) employment generation, (iv) international trade, and (v) opportunity cost of land. In this regard it is important to make a distinction between financial rate of return (FRR) and economic rate of return (ERR). The parameters that have been considered for the ERR estimation is completely different from that considered for FRR. Hence ERR and FRR estimates are mutually exclusive.

2.2 The Boundary Conditions

2.2.1 Value Chain

A comprehensive study encompassing the entire value chain, covering direct as well as indirect and induced impacts or cascading impacts of benefits and costs, requires development and use of integrated econometric models. While an integrated assessment based on rigorous application of econometric and/or other relevant tools requires a fair amount of data in regard to employment, investments, flow of capital, direct and indirect economic impacts on project beneficiaries, etc., a holistic assessment including quantification of key benefits (wherever feasible) and costs of deployment of renewable energy has been undertaken based on secondary data and rapid appraisal of select stakeholders. In the assignment, special emphasis has been given to the construction, installation and O&M phases of the value chain as these stages are expected to generate the bulk of the benefits in the renewable energy sector. Further, data limitations for upstream activities

2. “Putting Renewables and Energy Efficiency to Work: How Many Jobs Can the Clean Energy Industry Generate in the U.S.?”, Max Wei,Shana Patadia, and Daniel Kammen, Energy Policy, 2010

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MNRE DRAFT REPORT across various RETs constrain a full-scale analysis across the entire value chain.

2.2.2 Conservative estimates of net socio-economic benefits of RE

Across the various socio-economic factors affecting ERR, the approach has been to arrive at conservative estimates of socioeconomic benefits of RETs as well as moderate/aggressive estimates of socio-economic costs. For example, avoided cost of coal imports has not been considered while evaluating benefits of power generation from RETs. This has been done in order to avoid over-stating the net socio-economic benefits of RE.

2.2.3 Water use

Water use in both coal-based power generation and RE generation has not been included into the estimation of economic benefits due to difficulty in apportioning accurate socio-economic costs. However, it is noted that the average water usage in coal power generation is higher than that in solar power generation . Further, water usage in solar can be mitigated by way of substitution of water with either human resource or mechanized equipment. As such, this assumption is consistent with the assumption of conservative estimates of REâ&#x20AC;&#x2122;s socio-economic benefits.

have trade implications. A study undertaken by ICTSD in 2010 had prepared an exhaustive list of components used in the renewable energy space along with harmonized codes used for commodities that are traded in the international market. However, in the Indian context, the components that have trade implications are used primarily in solar and wind technologies. For the purpose of the study, only those components have been considered whose use can be fully attributed to these RETs. In the solar sector, key product categories that have been considered are solar cells, modules, collectors and lighting systems. The trend in export and import of these technologies over the last seven years has been analysed and is presented in Figure 2. Between 2010 and 2016, India emerged as a net importer of various solar components. During the period, exports fell by 9% per annum, while imports increased at an annual growth rate of 27%. India recorded a negative trade balance of INR 211 billion in 2016.

2.2.4 Employment in coal power sector

The study has not considered the impact of technology upgradation on employment generation due to data limitations. Also, the impact of technology upgradation on employment generation is not limited only to renewable energy sector; similar impact has been observed in coal-based power generation as well. However, it has not been considered in the study and could be an interesting point to cover in future research, using rigorous analytical tools like CGE that can capture the labour substitution/switching effects across various sectors. Given the assumptions and boundary conditions stated above, this study may be best utilized to establish a standardized framework for estimation of Economic Rate of Return (ERR) and the Justified Level of Incentives for various Renewable Energy Technologies (RETs) which can be further expanded, subject to a realistic elimination of the respective boundary conditions.

In the wind sector, key product categories considered are wind mill, wind turbine/engine, and related equipment. The trend in export and import of these technologies over the last seven years has been analysed and is presented in Figure 3

2.3 Trade

The increase in the share of renewable energy in the total energy mix will impact Indiaâ&#x20AC;&#x2122;s trade performance. India is a net fossil fuel importer, which spends around 3.5% of the national income on energy imports (largely crude oil and coal, although in recent years coal imports have seen a declining trend) . Renewable energy has trade implications because it promotes technologies that will create an ecosystem of research and development activities, manufacturing of components, and related services thereby creating opportunities to serve other geographies through the exports of related goods and services. At the same time it helps to reduce the expensive imports of fossil fuels, particularly coal and crude oil. It also provides a healthy and clean source of energy, creates indirect and direct job opportunities and investments thereby making economic sense. There are many technologies in the renewable energy space that

India earlier enjoyed a positive trade balance in the sector. However since 2011, there has been a substantial change in the trend where the positive trade balance declined from INR 1.2 billion to INR 0.6 billion. Exports declined at 12% per annum, while imports have increase at 10% per annum. The Indian wind energy market is undergoing a transitionary phase at present after the government initiated competitive bidding for capacity addition in a manner similar to the solar power sector; there are concerns in the manufacturing base that the competition will lead to higher imports in an effort to cut costs. In this context, it is possible that the trade balance in the wind sector will look very different going forward.

3. https://www.nrel.gov/docs/fy15osti/63011.pdf 4. Estimates based on DGFT data and World Development Indicators (WDI) database, 2016-17 5. Export Import Data Bank , http://commerce.gov.in/eidb/ecntcomq.asp VOL 2 l ISSUE 6 l FEBRUARY 2018 l SAUR ENERGY INTERNATIONAL

MNRE DRAFT REPORT 2.4 Employment

The promotion and generation of renewable energy has direct as well as indirect benefits; one among the most important benefits being generation of employment. Employment generation enhances the socio- economic development of the country by not only creating more job opportunities but also by providing female empowerment, skill development, improved standard of living. Job estimates for renewable energy sector include direct and indirect jobs, skilled and semi-skilled labour and Full Time Equivalence (FTE). There are few studies which have estimated the employment generation in renewable energy sector. Within renewable energy, employment potential has been analyzed mainly for two sectors: solar (mainly PV) and wind sector with focus on grid based technology. Employment potential was calculated on the basis of stakeholder consultation, primary survey of companies, literature review and discussion with sector experts. IRENA (2013) in their annual job review specified three methodologies for estimating employment (direct and indirect) in renewable energy: for direct employment, employment factor approach; and for indirect employment multiplier analysis, supply chain analysis and input-output analysis. However, most of the studies have used employment factor approach for calculation of current and future estimates. According to IRENA (2017), there are approximately 0.39 million jobs (excluding large hydro) in this sector in India. It has been estimated that globally the renewable energy sector employed 9.8 million persons (directly and indirectly) in 2016 – a 1.1% increase over 2015. Among renewables, the most consistent increase has come from jobs in the solar PV and wind categories, together more than doubling since 2012. Employment estimates in renewable energy sector have been prepared largely post 2009 after declaration of series of policy measures by the government to promote renewable energy in India. Report by MNRE and CII (2010) was the most cited paper by majority of the study focusing on employment estimates in the renewable energy. In the report, direct as well as indirect jobs have been calculated for various sectors such as wind, solar PV (both grid and off-grid), solar thermal, biomass (on-grid and gasifier), biogas and small hydro. It has been estimated that renewable energy sector in India employed 3,50,000 persons (both direct and indirect) in 2010 which will reportedly increase to approximately 14 lakhs by 2020 (assumed that growth rate is 15%). It concluded that all sectors of renewable energy will witness significant growth with employment in wind and solar PV (on-grid) will increase from 42,000 to 1,60,000 and 40,000 to 152,000 from 2010 to 2020 respectively under high growth scenario. The job estimates were provided corresponding to following profiles: manufacturing; fabrication; installation; operations & maintenance; project development; and marketing. Another study by Bridge to India (2014) has considered four scenarios in solar sector: small rooftop; large rooftop; ultra-scale; and ultra-mega scale. They assessed that approx. 0.32 million new jobs will be created in small rooftop scenario in the next ten years and around 71,000 cumulative jobs will be created in utility-scale scenario. They concluded that least employment will be created in the ultramega scale category even though a significant number

of people will be employed for every single project of this scale. The total number of jobs created in this scenario comes to around 63,000 in ten years. Upadhyay and Pahuja, (2010) has provided employment generation potential for solar and wind for the period 2010-2050. They have evaluated low carbon employment generated in two phases: construction & installation; operation & maintenance. To estimate the employment generation, they have used analytic method and developed three growth scenarios: high growth scenario (100% realization of the stated annual target); moderate growth scenario (75% realization of the stated annual target; low growth scenario (50% realization of the stated annual target. The study had made certain crucial assumptions that all capacity installed is manufactured domestically; construction and installation is completed in one year; all jobs accrue to India; and India has limited and fixed wind energy capacity and once this capacity is reached, all construction/ installation will stop. They have considered job creation estimates for wind sector given by EPRI (2001), Indian Wind Energy Outlook (2009) and TERI (2009) while for solar sector considered estimates given by Greenpeace (2001), Renewable Energy Policy Project (2001) and Greenpeace & EPIA (2009). On the basis of the estimates of each report, they calculated job creation for three separate growth scenarios discussed above. They had estimated that in the wind sector job creation could range anywhere from 6,929 in to 243,225 in 2020; from 8,929 to 225,975 in 2030; and from 9039 to 225,975 in 2050. In case of solar sector, they had estimated job creation could range anywhere from 3,271 to 234,350 in 2020; from 106,850 to 4,214,000 in 2030; and from 166,250 to 2,150,000 in 2050 with the base year 2008. Detailed stage wise assessment for jobs in renewable energy sector has been presented in studies by CEEW and NRDC (2014; 2015). The data regarding the requirement of number of skilled or unskilled worker was collected through surveys. The survey has been conducted through an online tool and telephonic interviews. However, they have confined their analysis to two sectors mainly wind and solar sector. In case of renewables, all jobs are not created throughout the lifetime of the projects. Short term jobs are created in the business development; design and pre-construction; and construction phase. However, long term jobs are created in the operation and maintenance phase till the lifespan of the project. Thus, it becomes crucial to evaluate full time equivalents (FTE) . However, this has been contemplated only in studies by CEEW & NRDC and SCGJ. Other studies have not clearly specified in their analysis whether they have taken into account full time equivalents or not. CEEW and NRDC (2014; 2015) have evaluated employment generation in various projects such as for solar rooftop PV, they have looked into the Hero Motororp’s 80 KW project in Haryana. Similarly, they evaluated 20 MW solar plant in Rajasthan by Kiran Energy and 85 MW wind project‚ Gamesa-Renew Power’s in Jath, Maharashtra. Table 1 provides us with the relevant figures of FTE during the first year, FTE post-commissioning and FTE per MW.

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MNRE DRAFT REPORT

However, CEEW and NRDC also estimated employment generation for country as a whole. They have highlighted that solar photovoltaic (PV) sector generates more jobs per unit of energy than any other source and within project, construction and commissioning phase generates majority of employment. They estimated that the solar market generated 23,884 cumulative jobs for installation of 2,616 MW from 2011 to 2014 (solely from commissioned projects currently producing electricity). Smaller projects up to 5 MW in size may provide the most employment opportunities per MW. The analysis shows that increasing the installed capacity base of solar PV power generation creates long term employment and continuous and sustained addition to existing installed capacity also increases short term employment (CEEW and NRDC, 2014). In another study, CEEW and NRDC (2015) had evaluated job generation in both solar and wind sector. In solar sector, they had estimated approximately 1 million FTE jobs will be generated to achieve the target of 100 GW grid connected capacity by 2022. They have analysed the potential under three scenarios based on MNRE’s proposed mix of projects to achieve the 100 GW goal by 2022. In scenario I, if policy shifts toward vast solar parks then 1,080,000 FTE jobs can be generated by 2022 (789,000 short-term FTE and 296,000 long-term FTE jobs). In scenario II, if the government’s policy approach focused primarily on 5-10 MW grid-connected large-scale projects then potential 1,140,000 FTE jobs can be generated by 2022 (850,000 short-term FTE and 296,000 long term FTE jobs). In scenario III (60 GW Rooftop, 40 GW Large-Scale Projects), solar rooftop is prioritized and create a potential 1,310,000 FTE jobs by 2022 (1,000,000 short-term FTE and 310,000 long-term FTE jobs). Of the three scenarios presented, third scenario reflects the maximum job potential due to its focus on labour-intensive technology i.e. rooftop solar. In the wind sector, they estimated that 183,500 FTE (excluding manufacturing) will be generated to achieve the 60 GW target by 2022. In a recent study, CEEW and NRDC (2017) estimated employment generation in rooftop solar, ground mounted solar, wind sector and in case of solar PV module manufacturing. They have estimated

that rooftop solar projects create maximum number of job years per MW i.e. 24.72 job-years per MW while jobs in ground-mounted solar projects create 3.45 job-years per MW. In case of wind projects 1.27 job-years per MW is created. They have also analysed the part of indirect employment generated in case of solar PV module manufacturing which generate 2.60 job-years per MW. They concluded that solar power jobs will be well distributed throughout the country while jobs in wind power will be concentrated in few states such as Rajasthan, Gujarat, Madhya Pradesh, Maharashtra, Andhra Pradesh, Telangana, Tamil Nadu and Karnataka. IREDA, Deloitte and INAE (2017) have provided employment estimates for solar sector only. In total 11,16,400 trained personnel are required to achieve target of 100 GW of solar PV projects across utility and rooftop PV segment by 2022. The data on employment estimates for renewable energy sector is limited and has been analyzed mainly for two sectors; solar (mainly PV) and wind sector with focus on grid based technology. Also, few studies have done the stage wise analysis (mainly two stages: construction and commissioning; operation and maintenance) while others have not carried out stage wise analysis for estimating employment potential. Studies by CEEW and NRDC have specified stage wise requirement for skilled and unskilled worker covering four stages mainly business development; design and pre-construction; construction and commissioning; operations and maintenance. Employment generation in upstream sector has been analyzed only in one study conducted by CEEW and NRDC (2017). However, they have restricted their estimates to manufacturing of equipment’s and excluded employment generation in other sectors such as banking, financial services etc. None of the study has carried out employment generation across the value chain (given in Figure 4) and supportive processes such as policy making, financial services, education, research and development and consulting. Due to paucity of data, in our study, we have restricted our analysis to downstream sector covering four stages (business development; design and pre-construction; construction and commissioning; operations and maintenance).

6. CEEW and NRDC defines FTE as “An employment opportunity of 1 FTE is a job that exists for 1 person to work on for the duration of 1 year or 2 persons to work for 6 months each and so on. The calculation assumes 260 working days per calendar year.” VOL 2 l ISSUE 6 l FEBRUARY 2018 l SAUR ENERGY INTERNATIONAL

MNRE DRAFT REPORT

The study has not considered the impact of technology up gradation

• Solar rooftop were categorized according to the sizes into

on employment generation due to data limitation. Also, the impact

two categories:

of technology up gradation on employment generation is not limited

- Less than 50 KW – Residential and Small Commercial Category - 50-500 KW – Large Commercial and Industrial Category

only to renewable energy sector; similar impact has been observed in thermal power plant as well. However, it has not been considered in the study and could be an interesting point to cover in future research. For the purpose of our study, we have considered the figures provided in “Skill Gap Report for Solar, Wind and Small Hydro Sector” by Skill Council for Green Jobs (SCGJ) published in 2016 . They have clearly outlined the assumptions, provided detailed information on capacity addition and disaggregation of employment into skilled, semi-skilled and unskilled. On the basis of figures reported in SCGJ report (2016), we have calculated FTE per MW. In the subsequent sub-sections, assumptions for each sector have been highlighted separately.

2.4.1 Solar PV

Jawaharlal Nehru National Solar Mission was launched on 11th January 2010 with following targets: 1. Deployment of 20,000 MW of grid connected solar power by 2022. 2. 2,000 MW of off-grid solar applications including 20 million solar lights by 2022. 3. 20 million sq. m. solar thermal collector area. Subsequently, in a cabinet meeting held on June 17, 2015 cumulative targets under National Solar Mission (NSM) have been revised from 20 GW to 100 GW by 2021-22 for Grid Connected Solar Power Projects. To estimate the manpower required for achieving this 100 GW target for Solar PV (Rooftop and ground mount), the major assumptions considered in the Skill Council for Green Jobs (SCGJ) report (2016) are: • A target of 250 GW solar power generation capacity till 2030 has been considered in order to estimate capacity addition till 2030. Further, a distribution of 50:50 in regard to ground-mounted and rooftop solar has been assumed. • Distribution of project sizes for ground-mounted solar power has been considered on the basis of secondary and primary data collected as mentioned in Table 2. The same distribution has been assumed for each year till 2022.

• The total number of days has been taken as 240 in a year • They have considered that as the size of the project increases, due to economies of scale, the manpower requirement per MW reduces • Current maximum installation of solar PV ground mount projects done in a year is 3700 MW • For estimating the number of people required in the sector, a deployment of 80% in projects in a year has been assumed for the manpower in all phases • Manpower has been estimated for two phases: EPC phase (Engineering, Procurement and Construction) and O& M phase (Operations and Maintenance)

2.4.2 Wind

Among all renewable energy (RE) options, wind power is the most commercially competitive mainly due to technological maturity, proven installed base and lower setup and running costs. Currently, wind sector accounts for over 70 per cent of the installed renewable energy (RE) capacity in the country. According to 12th Plan, government has envisaged to achieve target of 60,000 MW by 2022. To estimate the manpower required for achieving this 100 GW target for Solar PV (Rooftop and ground mount), the major assumptions taken by SCGJ report (2016) are: • They have taken wind power potential in India as 102 GW and estimated that the sector would reach its potential by 2026-27; • Average size of wind farms in the future would be 50-100 MW. Further, due to economies of scale the manpower required for the project size is similar across the project size; • Manpower has been estimated for two phases: EPC phase (Engineering, Procurement and Construction) and O& M phase (Operations and Maintenance); and • Post FY 2025, they estimated growth rate of 10% for 1-2 years and the wind sector will reach its estimated potential by 2026-27. No extra manpower would be required for Planning and EPC activities. However, since Operation and Maintenance is a yearlong activity, manpower required for O&M activities will increase.

2.4.3 Small Hydro

In the renewable energy target of 175 GW by 2022, 5 GW is allocated to small hydro power. It is estimated that India has close 7. Skill Gap Report for Solar, Wind and Small Hydro Sector”, SCGJ, 2016

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to 20 GW potential of Small Hydro projects in various states7. As per the SCGJ report, current levels of manpower would suffice for installation of the target 5 GW capacity. To install this capacity of 5 GW, SCGJ report has estimated the current manpower that can cater to the capacity increase. • To estimate future growth till 2022 and 2025, annual capacity addition of 250 MW has been assumed. No significant growth in this sector is envisioned in the coming years. • The current average project size is 0-10 MW. As per growth trends, year-on-year capacity addition of 250 MW of small hydro capacity has been assumed. • A small hydro project requires full time deployment of the team for a span of close to 1-2 years. The same team is usually deployed for both phases (design and construction) unlike solar or wind sector. • As operation and maintenance is a year-long activity, it has been assumed that the manpower required for this phase will increase with increase in the installed capacity Based on cumulative figures reported in SCGJ report, FTE per MW is estimated for three sectors: Solar PV (Ground mount and Rooftop), Wind and Small Hydro (Table 3). For Solar PV, per MW employment estimates are higher in EPC phase compared to

O&M phase. However, in case of small hydro, per MW estimates are higher for O&M phase (13 per MW) compared to EPC. Also, FTE per MW were calculated for different type of skill employment i.e. skilled, semi-skilled and unskilled (Table 4). Semi-skilled

jobs are generated more than skilled and unskilled jobs for all three technologies.

The Ministry of Labour periodically notifies minimum daily wages for selected sectors by skill. In the present study, the minimum daily wages of workers by skill for the construction sector has been considered for the analysis. The real income increase has been considered at 5%, which is approximately the compounded annual growth rate of GDP between 2012 and 2015.

2.5 Opportunity Cost of Land

The opportunity cost of land was estimated with respect to agricultural income for the year 2015-16. To estimate minimum opportunity cost of land per acre, total agricultural income per acre and the total area under cultivation has been used from the data released by Ministry of Statistics and Program Implementation (MoSPI) and the Directorate of Economics and Statistics, Ministry of Agriculture respectively. Agricultural income (excluding mining and quarrying) for 2015 was used along with the area under cultivation (for rabi and khariff crops) to estimate the income per acre. Review of existing literature suggests that the average land requirement per MW of solar power installed capacity is in the range of 4-5 acres while the average land requirement for 1 MW of wind power is around 1 Ha (or 2.47 acres). Review of selected bagasse cogeneration projects indicates an average capacity per unit of land of around 2.5 MW per acre. Hence, the opportunity cost of land is estimated in terms of (agricultural income/acre) / (installed capacity/acre), i.e. (Rs./Acre)/(MW/Acre). The average annual increase assumed for the entire duration of the project is 2.8%, which is equal to real growth in agricultural income in India between 2010 and 2014. It is important to note that there might be multiple application of land and accordingly the opportunity cost of land will vary depending

8. The SCGJ Report has used NSQF framework for defining occupational map and divided jobs into 10 levels. On the basis of this classification, we have calculated FTE per MW estimates for three types of skill category: Highly Skilled (Level 6-10); Skilled (Level 4-5);and Semi-skilled (Level 1-3). VOL 2 l ISSUE 6 l FEBRUARY 2018 l SAUR ENERGY INTERNATIONAL

MNRE DRAFT REPORT on the activities the land is put to use. This may vary from state

as estimation of external cost is that the marginal abatement

to state as well as with the policies of the state governments.

cost of emissions is equal to the marginal damage cost. Bot-

2.6 Avoided health and local environment cost of coal-based generation

tom up approaches on the other hand; use both primary and

Traditionally, India has been dependent on coal-based electricity

secondary data, that project/location specific, in estimating the

and the sector contributes to almost 65% of the total electricity

external cost. For example, Ottinger, et.al (1990) in estimating

generation in the country. However, coal based power genera-

the environmental costs of electricity and, Pearce (1992) in

tion is associated with various externalities (Currie et al., 2014).

estimating the social cost of fuel cycle, have used the bottom

External costs refer to cost of damage imposed on the environ-

up approach using secondary information. Despite enjoying

ment and society but are not accounted for in market price of the

certain advantages due to better results, there are challenges

resource. On the basis of the principle, that the polluter needs

associated with collection of primary data. For instance, primary

to pay the full price of the product (here electricity production)

data collection may be time consuming because it involves the

the use of life cycle cost as an approach for estimation of above

employment of doseâ&#x20AC;&#x201C;response functions to track the emission

externalities is increasingly being used for valuing true cost of

path way from the source to the receptor (D. Mahapatra et al,

electricity generation. There are many approaches to the estima-

2011). Other concerns include consequent monetization of the

tion of external costs due to coal mining and coal-based power

impacts, difficulty in learning the project specific social impacts

generation. They can broadly be classified as (i) top down and

in the form of displacement and loss of livelihood and finally, the

(ii) bottom-up approach. The top down approach was exten-

involvement of multidisciplinary teams.

sively used by Hohmeyer (1988) for the first time to arrive at the

TERI (2014) undertook a detailed study for the erstwhile Plan-

external costs of all major fuels used in electricity generation in

ning Commission, on equitable sharing of benefits arising from

Germany and relied on secondary macro level estimates related

coal mining and power generation among resource rich states

to total damages. In the early 1990s, Bernow and Marron used

in India. Coal mining and electricity production have various

the cost of pollution control as a proxy for possible valuation of

affects like impact on health due to air and water pollution, oc-

environmental externalities for energy planning and operations.

cupational disease and accidents, impact on agriculture, forests

Through the ExternE Project EU (2003) and use of Ecosense

and global warming potential, etc. While some of the costs may

software, it has been able to estimate marginal external costs,

be internalized as mandated under various environmental rules

due to production and consumption of energy-related activities

and regulations, certain external costs may still go unaccounted

such as fuel cycles.

for. The broad impact category along the life cycle of coal based

However, it is understood that there are limitations with regard to

power generation is presented in Table 5.

the EcoSense tool where the benefit assessment is only confined to health and environment cost and ignores other parameters along the lifecycle of the project as identified earlier in this report. For example, it allows calculation of only location specific marginal external costs of a stationary source (e.g. a power plant) due to emissions of air pollutants. Further the discounting of future benefits have to be estimated externally using suitable assumptions of social discount factors, for which extensive review of literature is required. EcoSense LE is the software developed under the EXTERN E project, which is an online tool for estimating costs due to emissions from a stationary source (e.g. power plant, industry, and transport) or all sources of a sector in an EU country or group of EU countries. It is based onEuropean data for receptor (population, crops, building materials) distribution, background emissions (amount and spatial distribution), and meteorology. The input data used are annual emissions of NOx, SO2, PM10, Non Methane Volatile Organic Compound (NMVOC), CO2, N2O, CH4. The cost calculation is based on ExternE exposure-response function and monetary values in Europe. The economic principle behind the use of cost of pollution control

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MNRE DRAFT REPORT One of the key activities undertaken was estimation of the nega-

version of the DICE model and is the first major revision since

tive impact of coal mining and coal based power generation on

the Fifth Assessment Report of the Intergovernmental Panel on

land, rehabilitation & resettlement, environmental and ecological

Climate Change. The DICE model views climate change in the

degradation, physical infrastructure and health cost in the resource

framework of economic growth theory. In a standard neoclassi-

rich host state. Based on that exercise, the uncompensated lo-

cal optimal growth model known as the Ramsey model, society

cal pollution based damage including health impacts from coal

invests in capital goods, thereby reducing consumption today, to

based power generation have been estimated at INR 1.07/kWh.

increase consumption in the future. The DICE model modifies the

Hence, if one unit of electricity is produced from any renewable

Ramsey model to include climate investments, which are analo-

energy technology, it would be able to reduce pollution based

gous to capital investments in the standard model. The model

damage cost amounting to Rs 1.07. The Government of India

contains all elements from economics through climate change

however levies a ‘Clean Energy Cess’ which act as carbon tax and

to damages in a form that attempts to represent simplified best

is levied as a duty of Excise under section 83 (3) of the Finance

practice in each area. The DICE model estimates the Social Cost

Act, 2010 on Coal, Lignite and Peat (goods specified in the Tenth

of Carbon at 2010 prices for year 2015 as US$ 2.93/tCO2. The

Schedule to the Finance Act, 2010) in order to finance and pro-

INR equivalent, in 2015 prices, is Rs 0.14/kWh. Since the ERR

mote clean environment initiatives, funding research in the area

needs to be estimated for the entire life of a typical solar project

of clean environment or for any such related purposes. Since its

life of 25 years, it is assumed that the cost of inaction by 2040 is

introduction in 2010, the amount has been revised periodically

comparable to the lifecycle cost of coal based power generation

and the currently 1 tonne of coal fetches a cess of INR 400. In

of China. Nordhaus estimates the SCC for China at US$ 6.61/

order to avoid double counting, the cess has been adjusted from

tCO2. The Indian currency equivalent for the same is INR 0.30/

the damage cost and the revised pollution based damage cost

kWh. The intermediate years estimates are linear interpolation.

amounts to INR 0.81 per unit of electricity produced. However,

3. The Economic Rate of Return

this estimate is for the year 2015, and the benefit needs to be

3.1 Defining the ERR and selecting an appropriate SDR

assessed for the entire project life of 25 years. Since the ERR

Assessment of socio-economic costs and benefits and the rate

needs to be estimated for the entire life of a typical solar project

at which present value of net benefits becomes zero is known as

life of 25 years, it is assumed that the cost of inaction by 2040 is

social rate of return. However, the incorporation of capital cost in

comparable to the lifecycle cost of coal based power generation of

this estimation would help in deriving the economic rate of return

China. NRDC estimates the damage of electricity produced from

(ERR). It is defined as the rate at which the values of the cost of

coal at 302 Yuan/ton in 2015 which makes INR 2.9/kWh at 2015

a project as well its benefits, discounted over its life, are equal.

prices . The intermediate years estimates are linear interpolation.

In other words, it is the rate at which the net discounted cash

2.7 Environment Cost of Coal – the Social Cost of Carbon

flows, i.e. the net present value is equal to zero (Gordon, 1974).

The second category of environmental damage is equal to the cost

It subsumes the socio-economic benefits generated during the

associated with CO2 emission. The social cost of carbon (SCC) is

life of a project or intervention. It is represented by the formula:

a widely prevalent concept for understanding and implementing climate change policies. This term represents the economic cost caused by an additional ton of carbon dioxide emissions or its equivalent in the atmosphere (Nordhaus, 2017). There are models that have been used to estimate the monetized costs of carbon

3.2 ERR results

emission. Researchers have estimated the social cost of carbon

The net present values and the economic rate of return are various

using various models that represent the economy and society,

renewable energy technologies based on the above approach

the world’s climate and the ways they interact. Estimates of the

have been estimated and are presented in Table 6. The various

social cost of carbon vary because of different assumptions about future emissions, how climate will respond, the impacts this will

assumptions used in estimating the technology-specific rates of return are illustrated in Annexure-I for reference.

cause and the way we value future damages. Climate damages increase with economic growth, which tends to put more assets at risk and creates wealthier people who are more willing to pay to avoid impacts. This means that integrated assessment models assumptions and equations for GDP growth are important, too. For the study, the estimates from Nordhaus (2017) have been used. Nordhaus (2017) study presents the results of a fully revised VOL 2 l ISSUE 6 l FEBRUARY 2018 l SAUR ENERGY INTERNATIONAL

MNRE DRAFT REPORT 3.3 Financial Rate of Return for various RETs A Financial Rate of Return (FRR) measures the attractiveness of a project or investment, expressed as a percentage. The Internal Rate of Return (IRR) is one of the most widely used indicators for a projectâ&#x20AC;&#x2122;s financial viability. In this study, the IRR has been used as the financial rate of return on RET projects. The studyâ&#x20AC;&#x2122;s approach toward estimation of FRR comprised a combination of primary and secondary research and detailed financial modelling of various renewable energy projects. Stakeholder approached for FRR estimation of different RETs included project developers, banks &FIs. Accordingly, financial models for various RETs were developed and preliminary FRR results are reported hereunder. It is to be noted that the financial models developed are based on zero government incentives, and would therefore reflect the true market rates of return in a no-subsidy scenario. Further, assumptions were set to reflect general market conditions prevailing in the market

factors such as costs being spread across lower volumes, higher costs of financing, lack of visible trajectory for penetration as well as buying capacity of consumers. All new technologies therefore need policy, regulatory and financial support during their infancy. Same has been the story of RE across the world. While RE has seen strong penetration in developed countries, the same in developing countries like India is underway. At present, RE generation costs are falling on account of technological advances, supportive policies, increasing volumes, etc. while the cost of supply of coal is likely to see an increase due to various technical and policy-related issues. In this regard, it is considered prudent to present the economic, social and environmental benefits and different RETs in the Indian context.

4.2 Proposed Framework for Justified Level of Incentives Based on estimates of ERR and FRR, the following decision framework is proposed for estimating the justified level of incentives for various RE technologies (Table 8):

in recent years. Another point of note is that certain market risks such as payment delays or curtailment have definitive impacts on project FRRs for dispersed projects across the different RETs; this is to say that these risks affect some projects more than others. While the present analysis does not consider the impact of these risks on the project FRRs, it is understood that realization of these risks in the operation phase of projects would only lead to a reduction in project FRRs. The FRR assumes significance in the subsequent framework for justified level of incentives for different RETs since strong financial viability (even without subsidy) of an RET would indicate that there is no need for subsidy in that particular RET for private sector to invest, regardless of the socioeconomic costs and benefits of that RET. The preliminary results of FRR calculations for the various RETs are given in Table 7 below. A range of FRR results has been estimated for each RET based on common variations in capital costs, O&M expenses, business model, etc. Illustrative assumptions are provided in Annexure-II for reference.

As evident from Table 8, if the ERR is greater than the social discount rate, while the FRR is the greater than the market discount rate, it indicates that the project is economically viable and has substantial socio-economic return and therefore calls for no incentives. However, if the ERR is greater that the discount rate, while the FRR is less than the market rate, then the project calls for financial support. However, if the economic rate of return is less than the social discount rate, then the project does not require any incentive, irrespective of the fact whether the FRR is greater, equal or less than the market discount rate. Now that there is a reason to have a justified level of incentive for promoting selected RETs in India, based on the above criterion, the incentive for the selected technology can be estimated. There are costs associated with any incentive. Although there may be complex econometric / and or CGE models that can assess the opportunity costs. Reserve Bank has well defined obligations and provides several banking services to the governments in the form of maintaining receipts, custody and disbursement of money from the consolidated fund, contingency fund, and public account to

4 Justified Level of Incentives for RETs

4.1 The Need for a Justified Level of Incentives

During its infancy, any product based on new technology is not cost-competitive with existing products on account of a number of

state governments etc. Varying subsidy as a percentage of the capital cost will lead to different ERR and FRR as well as NPVs. Hence the justified level of incentive would be set where: Social Marginal Cost = Private Marginal Benefit

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MNRE DRAFT REPORT 5 Conclusions and Remarks India is a developing country with vast complexities; numerous needs of the nation in the short-term, medium-term and long-term compete for limited resources and funds and the Government of India is required to make decisions that are in the best interest of the populace. A “fire-fighting” mode of resolving immediate issues, while alleviating short-term concerns, leads to inefficient utilization of resources and hinders long-term progress and development. Therefore, the country needs to flexibly manoeuvre the present interventions in order to address immediate concerns as well as chart a path for long-term progress; informed decision-making can be an integral enabler in this effort. For the government to choose the correct course of action, it requires a thorough understanding of the near-term and long-term costs and benefits of each course of action. One of the prominent developmental needs of the nation is to build a flexible and efficient electricity sector that can meet the country’s burgeoning energy needs in a clean and green manner, while also meeting India’s international commitments for mitigating climate change. Renewable energy is critical to this objective, and has received strong policy push by the Government of India.

In this study, the following broad parameters encapsulating the social, economic and environmental impacts of deploying several renewable energy technologies have been studied: i. Avoided health and environment impact from coal-based power generation, ii. Social Cost of Carbon, iii. Employment generation, iv. International trade, and v. Opportunity cost of land. The study considers these parameters across the EPC and O&M activities in the respective RET value chains; an analysis across the full value chain (including, for instance, the upstream activities of manufacturing, distribution, etc.) would be desirable but issues such as present-day data limitations constrain the scope of the current analysis. The current study presents a comprehensive metric, i.e. the Economic Rate of Return (ERR), that can be used for understanding the socio-economic costs and benefits of renewable energy technology options as well as a decision framework for designing broad

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government policy with respect to each technology.

Nordhaus, W.D. (2017). Revisiting the social cost of carbon, PNAS February 14, 2017 vol. 114 no. 7 1518-1523. doi: 10.1073/pnas.1609244114. Skill Council for Green Jobs (SCGJ). (2017). Skill Gap Report for Solar, Wind and Small Hydro Sector. New Delhi. The Energy and Resources Institute (TERI). (2009). Green Jobs: The Indian Case. TERI, New Delhi [unpublished]. The Energy and Resources Institute (TERI). (2014). Equitable sharing of benefits arising from coal mining and power generation among resource rich states. Planning Commission, Government of India. Available at http://planningcommission.gov.in/reports/genrep/rep_mining_power_generation.pdf. Upadhyay, H. & Pahuja, N. (2010). Low Carbon Employment Potential in Indi: A Climate of opportunities. Discussion Paper by The Energy and Resources Institute (TERI) and Global Climate Network (GCN). New Delhi. Wei, M., Patadia, S., & Kammen, D. M. (2010). Putting renewables and energy efficiency to work: How many jobs can the clean energy industry generate in the US?. Energy policy , 38(2), 919-931. Wind Power Works. (2009). Indian Wind Energy Outlook 2009. Available on http://www.gwec.net/wp-content/uploads/2012/10/Ind_Wind-ENergy-Outlook_2009_ GWEC.pdf Wind, Izaak. (2010). HS Codes and the Renewable Energy Sector. International Centre for Trade and Sustainable Development (ICTSD). Link https://www.ictsd.org/downloads/2010/01/hscodes-and-the-renewable-energy-sector.pdf. Accessed on 11.01.2018 World Bank. (2014). ‘Estimating the Economic Opportunity Cost of Capital for Public Investment Projects’, Policy Research Working Paper 6816. Available at http://documents.worldbank.org/curated/en/219641468280438967/pdf/WPS6816.pdf.

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VOL 2 l ISSUE 6 l FEBRUARY 2018 l SAUR ENERGY INTERNATIONAL

PRODUCT ANATOMY MECA HYPERION-SR HORIZONTAL TRACKER Product Brief Meca Solar has launched ‘Hyperion-SR,’ which is touted to be the most advanced single row horizontal tracker on the market. It is designed to increase the PV power plant output up to 27% compared to ground-mounted fixed structure systems. Product Feature It is equipped with the minimum number of piles per MW, self-powered operation, wireless communications, extended slope tolerances and sophisticated optimization. Application Utility-scale PV power plants Benefits Meca Solar ‘Hyperion-SR’ horizontal tracker has been designed with flexibility and cost competitiveness. The weight of the structure has been significantly reduced while the optimized design allows wider rotation angles (+/- 55 degrees). In case of severe weather conditions, the tracker automatically moves in stowing position in less than 3 minutes. Availability Available

REOLINK ARGUS 2 WIRE-FREE SOLAR-POWERED SECURITY CAMERA Product Brief Reolink’s new wire-free rechargeable battery & solar-powered security camera features a long-lasting rechargeable battery, solar powering, high-quality video camera, smart PIR motion sensor, live streaming video with 2-way audio. Product Feature The device is equipped with Rechargeable Battery, solar powered, starlight night vision giving Clearer night vision even in the dark, up to 33 feet, 1080p Full HD, Motion Alerts & Siren Two-Way Audio, weatherproof, movement tracking system on Smartphone Anytime Anywhere. Application The Reolink Argus 2 is used for surveillance through Its HD camera powered by solar energy. Benefits It comes with a long-running rechargeable battery (supports up to 6 months on one charge) and the weatherproof device can also be hooked up to Reolink Solar Panel via Micro USB cable continuous charging. It also captures 1080p HD videos and offers up to 33ft starlight color night vision. The device has built-in 130° wide-angle field of view, highly sensitive PIR motion sensor and 2-way audio. Availability Available

HUAWEI SMART STRING INVERTER SUN2000-25/30KTL-US Product Brief Huawei’s Fusion Home Smart Energy Solution aims to refine smart energy management, providing an easy-to-distribute, easy-to-install and easy-to-use solution that maximizes return on investment from installing solar PVs at home. Product Feature Max DC voltage-1000 V, Max AC apparent power-27,500 VA / 33,000 VA, 3 MPPTs for versatile adaptions to different layouts, 6 strings intelligent monitoring and fast trouble-shooting and Max. efficiency of 98.6% with CEC efficiency of 98.0%. Application To convert DC power to alternating current (AC) power that is used by businesses and homes. Benefits Huawei FusionHome Smart Energy Solution will be able to provide an overall solution that can not only generate and manage power but also store power and make sure the quality of power consumption, and provide people a better experience in using renewable energy. Availability Available.

SAUR ENERGY INTERNATIONAL l FEBRUARY 2018 l VOL 2 l ISSUE 6

PRODUCT ANATOMY NEXTRACKER NX FLOW Product Brief NX Flow is a modular, integrated solution designed for long duration solar-plus-storage applications. Each is designed to maximize long-term value and offer the lowest levelized cost of storage (LCOS) for a wide variety of applications, such as peak smoothing, bulk load shifting and demand charge reduction. Product Feature Self-powered tracker, no grid power required, Integrated back-up battery, Up to 120-degree (±60) tracking range, Zigbee wireless network, Optimized for multiple module types, up to 90 panels per row NX MACHINE LEARNING Application Is used for low levelized cost of storage (LCOS) for a wide variety of applications Benefits Smart, connected software solution integrating Flex’s cybersecure, NERC-CIP compliant data platform with NEXTracker’s Digital O&M control software and asset management offers safe and complete system analytics, preventive maintenance, and monitoring. Availability Available.

HUAWEI SMART STRING INVERTER SUN2000-45KTL-US-HV-D0 Product Brief Huawei’s Fusion Home Smart Energy Solution aims to refine smart energy management, providing an easy-to-distribute, easy-to-install and easy-to-use solution that maximizes return on investment from installing solar PVs at home. Product Feature 8 strings intelligent monitoring and fast trouble-shooting, Power Line Communication (PLC) supported, Smart I-V Curve Diagnosis supported, DC AFCI compliant to UL 1699B Type I, Type II surge arresters for both DC and AC, Residual Current Monitoring Unit (RCMU) integrated inside, Fuse free design, Max. efficiency 98.7%, CEC. efficiency 98.5% and 4 MPPTs for versatile adaptions to different layout. Application To convert DC power to alternating current (AC) power that is used by businesses and homes. Benefits Huawei FusionHome Smart Energy Solution will be able to provide an overall solution that can not only generate and manage power but also store power and make sure the quality of power consumption, and provide people a better experience in using renewable energy. Availability Available

SINENG ELECTRIC CENTRAL DISTRIBUTED INVERTER SOLUTION Product Brief Central distributed inverter integrates the features of central and string inverter. It has the same layout of PV plant as central inverter but the combiner boxes have MPPT function, which is similar as string inverter. Product Feature The product features multi-MPPT design, solve panel mismatch problem, 2%~5% power generation increased (circumstances depend), PV-array string fault monitoring, PV-array string fault monitoring, Wider MPPT range 300-820VDC, more power generation yield, nature cooling for MPPT optimizer, High DC input and AC output voltage decreasing cable line loss, DC and AC side film capacitor life prediction function, LCD power supply shut down technology, Fan speed regulation function. Application In medium and large utility scale Photovoltaic power plants. Benefits Central distributed inverter can effectively solve power generation losses because of dust covering, shade blocking, direct current line loss inconformity, module degradation, DC voltage and MPPT voltage range. Availability Available.

VOL 2 l ISSUE 6 l FEBRUARY 2018 l SAUR ENERGY INTERNATIONAL

INNOVATIONS

Perovskite Solar Cells Achieve New Efficiency Breakthrough Says Research

A new study from researchers at the

area where the crystals touch is known as

“are relatively benign” and determined

Department of Energy’s (DOE) National

a grain boundary.

perovskite films with better crystallinity

Renewable Energy Laboratory (NREL) and

“The general assumption is that degradation

should be a direction of future research for

the University of Texas at Austin reveals

starts with grain boundaries,” said Kai Zhu,

improving perovskite solar cell performance

information about how perovskite solar cells

a senior scientist and co-author of the paper.

and durability.

degrade, which could enable improvements

“We were able to show that degradation is

That’s “better” as in bigger crystals. Of the

in performance and durability.

not really starting from the visible boundaries

two samples used in the study, one had

Highly efficient at converting sunlight to

between grains. It’s coming from the grain

smaller grains and a conversion efficiency

electricity, perovskite solar cells have

surface.” As a result, this implies that the

of 15%, and the other had larger grains and

emerged as a revolutionary new technology

surface of a perovskite solar cell should be

a conversion efficiency of 18%.

with the potential to be more easily

targeted for improving device performance.

Here’s a extract from the study. Surprisingly,

manufactured and at a lower cost than silicon

The team deployed a new super power/new

the GBs [grain boundaries] exhibit photo-

solar cells. Ongoing research, including

piece of equipment called light-stimulated

responses comparable to the grains, and

at NREL, focuses on moving perovskites

microwave impedance microscopy to map

they are not the nucleation centers for the

beyond a laboratory setting.

the conversion efficiency of solar cells on

degradation process. Our results highlight

The paper, “Impact of Grain Boundaries on

the nanoscale.

the unique defect structures responsible

Efficiency and Stability of Organic-Inorganic

The rest sounds easy enough. Working

for the remarkable performance of PSC

Trihalide Perovskites,” was published in

with two samples, the team tracked the

devices, and address the significance of

Nature Communications. It outlined the first

loss of conversion efficiency over a period

crystallinity to further improve their energy

quantitative nanoscale photoconductivity

of one week. The samples were coated

conversion efficiency.

imaging of two perovskite thin films with

with an acrylic glass (like Plexiglas), which

The research is also important because

different power conversion efficiencies.

protected them from ambient humidity for

it validates the use of light-stimulated

The paper, “Impact of Grain Boundaries on

the first few days.

microwave impedance microscopy in solar

Efficiency and Stability of Organic-Inorganic

After the humidity penetrated the coating,

cell research.

Trihalide Perovskites,” was published in

the conversion efficiency went down. The

The research was partly funded by the US

Nature Communications.

drop in the photoconductivity emerged from

Department of Energy, the National Science

Perovskite solar cells possess a polycrystalline

the disintegration of the grains and not from

Foundation, and the Welch Foundation.

structure with individual crystals grains. These

the grain boundaries, the research found.

grains are adjacent to other crystals and the

The scientists noted, the grain boundaries

SAUR ENERGY INTERNATIONAL l FEBRUARY 2018 l VOL 2 l ISSUE 6

INNOVATIONS

Laser Evaporation Technology to Create New Solar Materials A team of materials scientists at Duke University in the US has developed a new laser evaporation technique to create new hybrid thin-film materials that could be used to make solar cells, light-emitting diodes and photodetectors. The research team described their methods in the journal ACS Energy Letters. As Duke explains, Perovskites are a class of materials that—with the right combination of elements—have a crystalline structure that makes them particularly well-suited for light-based applications. Their ability to absorb light and transfer its energy efficiently makes them a common target for researchers developing new types of solar cells, for example. According to Duke, the most common perovskite used in solar energy today, methylammonium lead iodide (MAPbI3), can convert light to energy just as well as today’s best commercially available solar panels. And it can do it using a fraction of the material—a sliver 100 times thinner than a typical silicon-based solar cell. Methylammonium lead iodide is one of the few perovskites that can be created using standard industry production techniques, though it still has issues with scalability and durability. To truly unlock the potential of perovskites, however, new manufacturing methods are needed because the mixture of organic and inorganic molecules in a complex crystalline structure can be difficult to make. Organic elements are particularly delicate, but are critical to the hybrid material’s ability to absorb and emit light effectively. “Methylammonium lead iodide has a very simple organic component, yet is a very high-performing light absorber,” said David Mitzi, the Simon Family Professor of Mechanical Engineering and Materials Science at Duke. “If we can find a new manufacturing approach that can build more complex molecular combinations, it will open new realms of chemistry for multifunctional materials.”

In the new study, Mitzi teams up with colleague Adrienne Stiff-Roberts, associate professor of electrical and computer engineering at Duke, to demonstrate just such a manufacturing approach. The technique is called Resonant Infrared Matrix-Assisted Pulsed Laser Evaporation, or RIR-MAPLE for short, and was developed by Stiff-Roberts at Duke over the past decade. Adapted from a technology invented in 1999 called MAPLE, the technique involves freezing a solution containing the molecular building blocks for the perovskite, and then blasting the frozen block with a laser in a vacuum chamber, according to Duke. When a laser vaporizes a small piece of the frozen target about the size of a dimple on a golf ball, the vapor travels upward in a plume that coats the bottom surface of any object hanging overhead, such as a component in a solar cell. Once enough of the material builds up, the process is stopped and the product is heated to crystallize the molecules and set the thin film in place. In Stiff-Roberts’s version of the technology, the laser’s frequency is specifically tuned to the molecular bonds of the frozen solvent. This causes the solvent to absorb most of the energy, leaving the delicate organics unscathed as they travel to the product surface. “The RIR-MAPLE technology is extremely gentle on the organic components of the material, much more so than other laserbased techniques,” said Stiff-Roberts. “That also makes it much more efficient, requiring only a small fraction of the organic materials to reach the same final product.” Although no perovskite-based solar cells are yet available on the market, there are a few companies working to commercialize methylammonium lead iodide and other closely related materials. And while the materials made in this study have solar cell efficiencies better than those made

with other laser-based technologies, they don’t yet reach those made with traditional solution-based processes. But Mitzi and Stiff-Roberts say that’s not their goal. “While solution-based techniques can also be gentle on organics and can make some great hybrid photovoltaic materials, they can’t be used for more complex and poorly soluble organic molecules,” said Stiff-Roberts. “With this demonstration of the RIR-MAPLE technology, we hope to open a whole new world of materials to the solar cell industry,” continued Mitzi. “We also think these materials could be useful for other applications, such as light-emitting diodes, photodetectors and X-ray detectors.” According to Duke, this work was supported by the National Science Foundation, Research Triangle MRSEC. The research was conducted in instrumentation laboratories that are members of the North Carolina Research Triangle Nanotechnology Network (RTNN), which is supported by the National Science Foundation as part of the National Nanotechnology Coordinated Infrastructure (NNCI).

VOL 2 l ISSUE 6 l FEBRUARY 2018 l SAUR ENERGY INTERNATIONAL

INNOVATIONS

Slow 'Hot Electrons' Could Improve Solar Cell Efficiency Photons with energy higher than the 'band gap' of the semiconductor absorbing them give rise to what are known as hot electrons. The extra energy in respect to the band gap is lost very fast, as it is converted into heat so it does not contribute to the voltage. University of Groningen Professor of Photophysics and Optoelectronics Maria Antonietta Loi has now found a material in which these hot electrons retain their high energy levels for much longer. This might make it possible to use more of their energy to obtain a higher voltage. Her results were published in Nature Communications. The efficiency of solar panels is hampered by a Goldilocks problem: photons need to have just the right amount of energy to be converted into free electrons, which contribute to the voltage. Too little energy, and the photons pass right through the solar panel. Too much, and the excess energy disappears as heat. The latter is due to the creation of hot (high-energy) electrons. Before they can be extracted from the solar cells, these hot electrons first give off their excess energy by causing vibrations in the crystalline material of the solar panel. 'This energy loss puts a limit to the maximum efficiency of solar cells', explains Loi. She is working on a special type of solar cell that is made of organic-inorganic hybrid perovskites. Perovskites are named after a mineral that has the chemical formula ABX3. In the X position, anions form an octahedron, while in the A position cations form a cube around them, while a central cation takes the B position. Many materials in the perovskite family adopt this crystal structure. Hybrid perovskites contain organic cations in the A position. Lifespan

Most hybrid-perovskite solar cells contain lead, which is toxic. Loi's group recently published a paper describing record-breaking

nine-percent efficiency in a hybrid-perovskite

hot electrons. Then new perovskite materials

solar cell containing harmless tin instead

could be designed with even slower hot

of lead. 'When we studied this material

electrons. 'These tin-based perovskites could

further, we observed something strange',

be a game changer, and could ultimately

she continues. The results could only mean

make a big contribution to providing clean

that the hot electrons produced in the tin-

and sustainable energy in the future.'

based solar cells took about a thousand

How is Solar Panel Efficiency Measured?

times longer than usual to dissipate their

This is a bit of basic maths - the ratio of

excess energy.

incoming sunlight to power out of the panel,

'The hot electrons gave off their energy

expressed as a percentage. So if you have

after several nanoseconds instead of some

100 watts of sunlight reaching a panel and

hundred femtoseconds. Finding such long-

you get 10 watts of power out, that's 10%

lived hot electrons is what everybody in this

efficiency. There are two types of panel -

field is hoping for', says Loi.

photovoltaic (PV) panels, which generate

Their longer lifespan makes it possible

electricity, and thermal panels, which use

to harvest these electrons' energy before

sunlight to heat water. PV efficiency is

it turns into heat. 'This means we could

typically 10-20%, while thermal panels can

harvest electrons with a higher energy and

offer 90% efficiency, but they won't power

thus create a higher voltage in the solar

your lights, only heat your home and give

cell.' Theoretical calculations show that by

you a hot shower and offer none of the

harvesting the hot electrons, the maximum

feed-in tariff earning potential of PV panels.

efficiency for hybrid-perovskite solar cells

Most consumers are interested in the range

could increase from 33 to 66 percent.

of PV panel efficiencies that are possible.

Clean energy

The next step is to find out why the tin-based hybrid perovskite slows down the decay of

SAUR ENERGY INTERNATIONAL l FEBRUARY 2018 l VOL 2 l ISSUE 6

INNOVATIONS

New Breakthrough Boosts Solar Fuel Efficiency

Scientists of University of Twente have

possible to deconvolute the contributions of

less than one tenth of a millimeter long, the

made significant efficiency improvements

catalytic activity and light absorption to the

tops of which are coated with a catalyst. The

to the technology used to generate solar

overall device performance. This approach

photons (light particles) are collected between

fuels. This involves the direct conversion

provided a silicon microwire photocathode

the microwires. The chemical reaction in

of energy from sunlight into a usable fuel

that exhibited a near-ideal short-circuit

which hydrogen is formed takes place on

(in this case, hydrogen). Using only earth-

photocurrent density of 35.5 mA cm−2, a

the catalyst at the tips of the microwires.

abundant materials, they developed the

photovoltage of 495 mV and a fill factor of

most efficient conversion method to date.

62% under AM 1.5G illumination, resulting in

By varying the density and length of the

The trick was to decouple the site where

an ideal regenerative cell efficiency of 10.8%.

microwires, the researchers ultimately

sunlight is captured from the site where the

But, to make the conversion as efficient as

achieved a maximum efficiency of 10.8

conversion reaction takes place.

possible you want them to absorb as much

percent. They managed to achieve this by

The study was done through a scientific

light as possible. It is important to achieve

decoupling the site where the photons are

procedure, which is abstracted as a solar-

this decoupling at the microscale, because

collected from the site where the conversion

driven photoelectrochemical cell provides

at larger scales the conductivity of the silicon

reaction takes place. This is necessary

a promising approach to enable the large-

microwires becomes the limiting factor.

because catalysts usually reflect light.

scale conversion and storage of solar energy,

Researchers around the world are working

Professor Jurriaan Huskens, one of the

but requires the use of Earth-abundant

on the development of solar fuel technology.

researchers involved, stated that 10.8 percent

materials. Earth-abundant catalysts for the

The research involves generating sustainable

is the highest ever efficiency for a silicon-

hydrogen evolution reaction, for example

fuels using only sunlight, CO2 and water, the

based design. However, a further increase

nickel–molybdenum (Ni–Mo), are generally

basic ingredients used by plants.

in efficiency – to fifteen percent – is needed

opaque and require high mass loading to

A group of researchers from the University of

to make the technology economically viable.

obtain high catalytic activity, which in turn

Twente’s MESA+ research institute are working

Sounds great from a really brief press

leads to parasitic light absorption for the

on a solar-to-fuel device that produces

release. One suspects there is a rush to

underlying photoabsorber (for example

hydrogen. They have now achieved a major

publish and a desire to get some patent

silicon), thus limiting production of hydrogen.

breakthrough in this area of fundamental

work underway. 10.8 percent is a top of

Here, we show the fabrication of a highly

research. Using earth-abundant materials

the line accomplishment suggesting the

efficient photocathode by spatially and

(i.e. avoiding the use of scarce and expensive

15 percent line might be on its way. Let’s

functionally decoupling light absorption

precious metals), they have developed the

hope they don’t stop there and the build

and catalytic activity. Varying the fraction of

most efficient method to date for converting

costs are sensible.

catalyst coverage over the microwires, and

light into hydrogen.

the pitch between the microwires, makes it

The system consists of silicon microwires

VOL 2 l ISSUE 6 l FEBRUARY 2018 l SAUR ENERGY INTERNATIONAL

NATIONAL EVENTS

SAUDI RENEWABLE ENERGY CONFERENCE

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