FROM THE
editor desk
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THE LONG JOURNEY FROM
RIO TO PARIS
A
ll this hullabaloo in Paris was just to achieve a pithy two degrees? What will posterity say? Star ng out from Rio in 1992 to Paris in 2015, via Berlin, Kyoto, Durban, Lima, Copenhagen, among others, it has been a rather long journey for climate change movement. During this me, the movement has been able to gather steam, by conver ng many a scep c into evangelists--USA being one such example – and finally in Paris, the conference had 195 na ons and other par es joining the “Conference of Par es”. It is definitely a measure of the success of the event, that with such a large and diverse collec ve, the conference could sign off on the Climate Goal. For humankind, agreeing to limit the rise of global average temperatures to within 2 degrees cen grade, if not 1.5 degrees, of the pre-industrial temperatures, is the goal of the century. This, the global community agreed to achieve through capping or reducing emission of green house gases. For the climate watcher, it is interes ng to note the diversity of approaches being adopted by various countries – the myriad strategies for CO2 reduc on that na ons have placed on the table, all with that single goal in mind. This is a nice example of many paths, leading to one des na on. In the next few years, observers will be keenly watching how all countries implement their ac on plans, in other words, how are they shaping up to deliver on the promises made in Paris. China and India in par cular, will be under close watch. This makes it a great balancing act for India to make progress while contribu ng to CO2 mi ga on. We need steel, cement, and most importantly, power, but we are on a Parisian ghtrope. Ge ng down to write this page, I am today also sobered by the fact that 1.3 billion people in our global community are without access to electricity in this twenty first century, and of these, 300 million reside in India. Yes, there have been posi ve changes over the
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years, and humanity has decidedly made progress, but this abject situa on in the context of sweeping modernity all around us, this stark contrast between development and lack of it, makes for a profoundly disturbing statement. India’s climate change commitments have been designed to address environmental concerns while also enabling us to meet the growth aspira ons of our ci zens and our overall development ambi ons. Environment-friendly solar power, that is also freely and abundantly available, holds out a promise to be the best source of energy of future and help India accomplish its balanced objec ve vis-à-vis highly pollu ng fossil fuels. India has done well by choosing to focus on sustainable energy resources, par cularly solar and wind, as a means to achieving its ambi ous emissions target for 2030. Of the two categories of solar power – field-based and roo op – the la er proves to be a be er way of achieving eradica on of energy poverty by 2022, that too bere of hassles involved in all other power sources - acquisi on of land, laying transmission lines and dealing with heavily indebted distribu on companies. For me, there is another aspect of Paris that is of interest, in the context of Global Policy Making, which has to be of course based on consensus. For the great big human community that we are, across the world (with all our diversity of views, opinions, biases, impera ves, poli cs and prejudices), to agree across the table on climate goals, is a superla ve achievement in itself. This generates enough confidence in our minds that “we can”! We can perhaps repeat this momentous success in some of the other complex problems confron ng us, like extreme economic dispari es, or religious extremism.
Sumit Banerjee Chairman, Editorial Advisory Board
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CONTENTS 20
Cover Story
A Ray of Hope The Paris summit has put a lot of thrust on sustainable energy sources vis-à-vis fossil fuels. The government and industry have to gear up for achieving the ambi ous target set for solar power capacity.
25
Interviews
“Govt must a ract MNCs bringing in best technology” Sanjeev Aggarwal, Chief Execu ve Officer & Managing Director, Amplus Solar
26
“Coal-based plants may have to revisit their models” Ashish Khanna, ED & CEO, Tata Power Solar
34
Feature - Challenges
Advantage Importers
39
Despite the hype and hoopla around solar power, there are a few hitches that are affec ng its pace. Is the government listening?
36
NR Khushalani, vice-president, Polycab Wires Pvt. Ltd
37
Interviews
“70% demand in India catered to by imported panels” Manish Surana, Execu ve Director, Surana Solar Ltd
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SOLAR January-February 2016
“Lack of common taxa on structure hi ng us” Amal Kr. Nayak, Head-Sales & Marke ng, Sova Power Ltd
Interviews
“Beware of non-tech people offering solar installa ons”
Interviews
38
Interviews
“No cer fica on or requirement set for installers” Randhir Singh, Director, Innova Solar Systems Pvt. Ltd
www.SolarToday.co.in
solar
49
Feature - Smart Grids
Grid Locked! Smart Grid is the way ahead for India, if we want to integrate and consolidate our power sector as per the government’s plans and improve the overall efficiency of the distribu on system.
51
Interviews
“Smart grid can help curb the gap in supply and demand” Bra n Roy, VP – Industry Services, TÜV SÜD South Asia
Interviews
50
“The key is to an cipate the value crea on poten al of smart grid”
Interviews
52
“States will play a key role in successful implementa on of smart grid” Vinod Kala, Managing Director, Emergent Ventures India
53
Kannan Tinnium, Technology Leader, Electrical Technologies & Systems, GE Global Research Center, John F. Welch Technology Center, Bangalore
Interac on
“Smart Grid technology and implementa on will see a boost within two years”
30
Anil Kadam, General Manager, Schneider Electric
Expert Speak - Storage
Advanced technologies Debi Prasad Dash, Manager, India Energy storage Alliance (IESA)
55
Legalese Investment
Sunshine in the Solar Sector Upendra Joshi and Swathy Ramanath, Khaitan & Co
Interac on
“Norms needed to ensure the customer gets what he has paid for” Ashish Khanna, CEO & ED, Tata Power Solar
In inside issue
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4 Desk 10 Index 12 Newsbeam 40 Photo Feature 62 People Management January-February 2016 SOLAR
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index
www.SolarToday.co.in
www.SolarToday.co.in Chairman, Editorial Advisory Board Sumit Banerjee Sumit@ASAPPmedia.com
Managing Director Pratap Padode
Regional Manager- Sales Sheetal Talreja Sheetal@SolarToday.co.in Subscription Sub@PowerToday.in Tel: 022-24193000/65267838 Published by ASAPP Media Pvt Ltd, A - 303, Navbharat Estates, Zakaria Bunder Road, Sewri (West), Mumbai 400 015. Tel: 022-2419 3000. Fax: 022-2417 5734. Branch Offices Delhi: Tel: 011-4656 1818 Bangalore: Tel: 080-40953423 / 080-40959611 Chennai: Tel: 044-42991234 Pune: Tel: 020-260 52987 / 020-6602 5990 Representative Offices Austria, Switzerland & Germany Gunter Schneider info@gsm-international.eu *Responsible for selection of news under the PRB Act. All rights reserved. While all efforts are made to ensure that the information published is correct, Power Today holds no responsibility for any unlikely errors that might have occurred. Subject to Mumbai jurisdiction only. Printed and Published by Tarun Pal on behalf ASAPP Media Pvt Ltd, printed at Indigo Press (India) Pvt Ltd, Plot No 1C/716, Off Dadoji Konddeo Cross Road, Between Sussex and Retiwala Ind. Estate, Byculla (East), Mumbai-400 027 and Published from A-303, Navbharat Estates, Zakaria Bunder Road, Sewri (West), Mumbai-400 015. Editor : Pratap Vijay Padode. The information on products and projects on offer is being provided for the reference of readers. However, readers are cautioned to make inquiries and take their decisions on purchase or investment after consulting experts on the subject. Solar Today holds no responsibility for any decision taken by readers on the basis of information provided herein.
ORGANISATIONS
“Tamil Nadu Generation and
Airports Authority of India” ....................... 15
Distribution Corporation” .......................... 14
Amplus Solar ...................................... 24, 25
Tata Power ................................................ 15
“Bihar Electricity Regulatory
Tata Power Solar Systems ............ 23, 26, 30
Commission” ............................................ 16
“The Energy and Resources Institute” ..... 22
“Bihar state power holding company”...... 16
TÜV SÜD South Asia ................................ 51
Channel Partners ...................................... 62
“World Resources Institute in India” ......... 27
Emergent Ventures India .......................... 51 Energiya Global ........................................ 19
PEOPLE
GE Global Research Center, .................... 50
AA.K. Jha.................................................. 28
“GMR Hyderabad International Airport”... 14
Amal Nayak ........................................ 35, 39
“High Level Clearance Committee” ......... 12
Anil Kadam, .............................................. 53
“Hindustan Machine Tools” ...................... 14
Ashish Khanna ............................. 23, 26, 30
India Energy storage Alliance .................. 44
Bratin Roy ................................................. 51
Innova Solar Systems ......................... 35, 38
Debi Prasad Dash, ................................... 44
Jacksonville Electric Coop ....................... 19
Devendra Fadnavis .................................. 12
JSW Energy .............................................. 28
“Dr Manish Kumar
K Watt Solutions ....................................... 59
Shrivastava”.............................................. 22
“Khadi and Village Industry
Gurdeep Singh ......................................... 62
Commission” ............................................ 12
Kannan Tinnium........................................ 50
Khaitan & Co ............................................ 55
Manish Surana.................................... 34, 37
Kolkata Municipal Corporation ................. 14
Nitin Pandit ............................................... 27
“Micro, Small and Medium-Scale
NR Khushalani .......................................... 36
Enterprises” .............................................. 17
Prakash Javadekar ................................... 23
“NB Institute for Rural Technology” .......... 12
Pramod Menon, ........................................ 28
NTPC .................................................. 34, 62
Prof Chetan Solanki .................................. 59
Polycab Wires........................................... 36
Rakesh Anand .......................................... 58
Pune Municipal Corporation ..................... 17
Randhir Singh ..................................... 35, 38
Radical Solar ............................................ 58
Sanjeev Aggarwal .............................. 24, 25
“Rays Power Infra”.................................... 15
Ségolène Royal ........................................ 19
REC Silicon ............................................... 18
Steven Walden ......................................... 62
Renusol..................................................... 62
Swathy Ramanath..................................... 55
Schneider Electric .................................... 53
Tulsi Tanti .................................................. 17
Solar Frontier ............................................ 19
Upendra Joshi .......................................... 55
Sova Power......................................... 35, 39
Vashishta Johri ......................................... 14
To subscribe digital edition of Solar Today log on to:
Surana Solar ....................................... 34, 37
Vinod Kala ................................................ 51
www.SolarToday.co.in/Magzter
Suzlon Group............................................ 17
Wolfgang Hager ....................................... 62
Subscribe Solar Today Call us on 91-22-24193000 or Email at Subscriber@ASAPPmedia.com
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J&K fails to harness solar power despite potential Although Jammu and Kashmir is having second highest solar power potential in the country, it has failed to harness even bit of the same because of least interest from all the concerned agencies, which have the mandate to tap the potential in order to make the State self sufficient in power
MP TO TRIPLE ITS SOLAR POWER CAPACITY BY 2017 Madhya Pradesh is on track to triple its solar power genera on capacity from around 650 MW to 2,000 MW in the next two years by the end of 2017 with several big- cket projects under implementa on, state principal secretary (new and renewable energy) Manu Shrivastava said. “Availability of vast tracks of barren land coupled with fast tracking of solar power projects under government, single window scheme is encouraging private companies, both domes c and interna onal, to bid aggressively for new projects,” he said.
Govt offices in Bhubaneswar, Cu ack to produce roo op solar With 279.64 MW, Telangana leads in solar power addi on Solar projects delayed by rain may get tariff relief India may shelve dollardenominated solar tariff plan GOVERNMENT APPROVES SOLAR PARK IN PAVAGAD The High Level Clearance Commi ee (HLCC) headed by CM Siddaramaiah cleared industrial projects worth `23,382 crore. The HLCC okayed the Karnataka Solar Power Development Corpora on’s proposal to set up a 2,000 MW solar plant at Pavagada, Tumakuru district at a cost of `14,800 crore, besides proposals by Udupi Power Company and Tata Power.
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institutes to supply solar-driven charkha under Prime Minister’s Employment Generation Programme (PMEGP). Gondal-based Udyog Bharti Trust and Rajkot-based Khadi Gram Udyog Sangh-Samanvay will provide solar charkhas to khadi institutions and artisans across India. “We have signed MoU to provide solar-driven charkha to various khadi
MAHARASHTRA STAYS DECISION ON SOLAR PUMPS FOR FARMERS Taking cognisance of the Opposi on’s claim over procurement of solar pumps for drought-hit farmers, CM Devendra Fadnavis has stayed their purchase and directed energy department officials to study Gujarat government’s model of procurement in this regard. Fadnavis has instructed Maharashtra Energy Minister Chandrashekhar Bawankule to send officials from the department to Gujarat to study their model of procurement of solar pumps and un l then, put on hold an agreement with the company that as supposed to supply the pumps. State government had earlier decided to distribute 10,000 solar pumps to farmers in the 18 drought-affected districts of Marathwada, Vidarbha and western Maharashtra region. generation that too without putting any adverse impact on the environment. As per the study conducted by the National Institute of Solar Energy (NISE), Jammu and Kashmir has solar power potential of 111.05 GWp, which is the second highest in the country after Rajasthan where the potential is 142.32 GWp. However, Jammu and Kashmir has failed to make any headway in this regard despite the fact that State had formulated Solar Power Policy few years back with the sole objective of promoting generation of green and clean power by using solar energy.
Gujarat khadi institutes to supply 200 solar charkhas Khadi and Village Industry Commission (KVIC) has signed a memorandum of understanding (MoU) with Gujarat-based two khadi
institutions to increase employment in this sector under PMEGP. Both Udyog Bharti and Samanvay will supply 100 solar charkha each by March-end,” said Sanjay Hedaoo, director of KVIC Gujarat.
Solar domes to light up urban slums The NB Institute for Rural Technology (NBIRT), headed by solar power expert SP Gon Chaudhuri, has been asked by the Centre to set up 500 solar domes for urban slums as well as rural areas in each of of Kolkata, Mumbai, New Delhi and Chennai with funds sanctioned by the science and technology ministry. A total of 2,000 solar domes will be set up in the four cities. The Centre has sanctioned `21.65 lakh for the project to be monitored by a committee appointed by the science and technology
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ministry. In October last year, the city-based Arka Ignou Community College of Renewable Energy, installed 100 solar domes in a cluster of slums in New Delhi that was inaugurated by Union minister of science and technology Dr Harsh Vardhan.
RTI shows Kerala spent `58 lakhs for Solar commission The state government has spent `58 lakhs for running the two-and-ahalf year old Solar judicial commission,
which enquire into the solar scam, shows a RTI report. The report collected by RTI activist Raju Vazhakala shows ,the government has spent `5,814,476 till November 15, last year for giving salary, rent and other purposes. There are 10 temporary staffs, who are retired persons in the commission. The government order for appointing staff in the commission was came on December 19, 2013. Government spends `46,413 per month for giving rent for eight floor, where the commission hold sitting, of Kerala State Housing Board in Panampilly Nagar. A total of `974,673 spent as rent from January 2014 to November, 2015. Selection grade district judge receives `99,543 per month. The government also gives `25,000 per month for accountant, court officer and `16,500 for LD Clerk and stenographer. Fees for advocate per sitting is `3,000 other than his monthly salary of `10,000. Solar commission who is a retired high court judge is not receiving any salary. Expenses related to electricity, water. Telephone, stationary items, medical reimbursement of staff, diesel, maintenance of the floor and
arranging the room for sitting is met by the government.
Govt to benchmark solar tariff lower Closing the pricing gap with conventional power, the Union government is planning to benchmark solar tariff at `4.5 a unit. This would be the reference price for solar power projects, over and above which companies would bid for viability gap funding (VGF) from the government. Falling solar rates pushes govt to benchmark tariff at historic low of `4.5 per unit Solar project developers to compete for VGF amount Source of VGF is yet to be decided Move comes in the wake of constantly falling solar tariffs Lowest bid was `4.63 per unit. The move comes in the wake of constantly falling tariffs in competitive bidding for solar power projects. The last bidding for solar power park of 500 MW in Andhra Pradesh witnessed the lowest bid of `4.63 per unit by SunEdison. Japan’s SoftBank through its joint venture in India SBG Cleantech won 350 Mw solar power project in the same state at the same tariff. Upendra Tripathy, secretary, MNRE, confirmed the development.
Bengal’s tea companies to instal solar plants in estates Tea companies including Goodricke and McLeod Russel are gearing up to set up solar plants in the unused land in their estates, as West Bengal has joined the list of states that have done away with the 5% value-added tax on solar photovoltaic cells and other solar
equipment. The removal of VAT is expected to bring down the cost of solar generation on a par with that of thermal power generation or even less.
GLOBAL TENDERS FOR ULTRA-MEGA SOLAR POWER PROJECT IN MP Madhya Pradesh government will this month float global tenders to select a developer for the ultra-mega solar power plant to come up in Rewa district, state principal secretary (new and renewable energy) Manu Shrivastava said. “The global tenders for commissioning the ultra-mega solar power project will be out this month, and the government already has 80% of land required for the project,” Shrivastava informed. The solar power sta on is being set up at Bandwar region in Gudh tehsil of Rewa, as a JV of SECI and MP Urja Vikas Nigam.
SOLAR POWER GENERATION IN PUNJAB RISES TO 1,550 MW Genera on of solar energy in Punjab rose 172 mes from 9 MW to 1,550 MW in last three years, the state’s New and Renewable Energy Minister Bikram Singh Majithia said. Majithia made the announcement while inaugura ng the 7.5 KW solar power plant for street lights on Kathunanagal-Chawinda Devi road. Highligh ng the keen interest of NRIs in solar energy projects in the state, Majithia further said that NRIs have invested `655 crore for 91 MW projects whereas foreign investors have put in `562 crore for 79 MW projects. ST
January-February 2016 SOLAR
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newsbeam projects
HMT unit in Chikhalthana to get solar lifeline
HC PERMITS TANGEDCO TO ENTER INTO PPA FOR SOLAR POWER The Madras High Court has permi ed the Tamil Nadu Genera on and Distribu on Corpora on (TANGEDCO) to enter into PPAs as per the procedure contemplated up to an outer limit of 1,500 MW. Modifying its earlier interim order totally prohibi ng TANGEDCO from entering into any such PPA, Jus ce TS Sivagnanam passed the order on a batch of pe ons moved by solar power genera ng companies Raasi Green Earth Energy Private Limited based in Bengaluru and another company.
Solar plants in Kanpur to start genera ng power BORG Energy India introduces new solar powered systems SunEdison commissions 146 MW of solar NTPC Launches 750 MW Solar Power Tender SOUTHERN RAILWAY TO TAP SOLAR ENERGY General Manager, Southern Railway, Vashishta Johri, said that the Southern Railway is going in a big way in tapping and using nonconven onal energy sources such as solar energy in all its ac vi es. Speaking to reporters a er inspec ng the Salem Railway Junc on, he said the Division is playing a vital role in tapping solar energy.
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A industrial unit facing the axe in Chikhalthana might soon rebound with the power of the sun. A food processing unit of the Hindustan Machine Tools (HMT) in the industrial zone, under the closure notice since 2000, could soon be getting a solar lights and panel plant under the ‘Make In India’ project. The move was announced by Union minister for heavy industries Anant Geete while on a visit to inaugurate
a cost of `40 lakh and the monthly power bill there has been slashed from `50,000 to `8,000, Kumar said. The state government has sanctioned `2.5 crore for the first phase which would be completed within two to three months, he added.
Work on solar power plant from Jan 21 The work on the proposed solar power plant to be constructed by KSEB at Thalakkulathur under its RPO project will begin on January 21.
GUJARAT TO GET ITS FIRST SOLAR, STELLAR OBSERVATORIES Gujarat is all set to get its first-ever solar as well stellar observatories, with government-recognised Indian Planetary Society (IPS) selec ng Kutch district for embarking on this project at a cumula ve cost of `12 crore. The Solar Observatory would be u lised to study the sun and solar system, while the Stellar Observatory will collect crucial informa on by studying space bodies, said IPS CEO Akshay Malhotra. “This is for the first me when IPS is embarking on a project to set up its first solar as well as stellar observatories. We have decided to set up these observatories in Kutch, as the sky is very clear here, which is very essen al for accurate results,” he said. the Hi-Tech machine manufacturing unit at HMT in the city. The unit at HMT produces machinery for the dairy industry and machines for the food and beverage, and chemical industries, in Chikhalthana.
Solar lamps to reduce energy bill The Kolkata Municipal Corporation has decided to install lamps to be lit with solar energy in all the parks maintained by it to reduce electricity bills. Of the 652 parks in the city, 16 has been selected for the first phase, Member, Mayor-in-Council, Parks and Gardens, Debashis Kumar said. The monthly electricity bill of a park is between `30,000 and `50,000 and the authorities want to reduce the amount. As a pilot project, solar energy lamps has been installed in Desapriya Park at
Minister for Power Aryadan Mohammed will lay the foundation stone for the multi-crore project, which is claimed to be a first-of-itskind solar power generation undertaking in North Kerala. AK Saseendran, MLA, who chaired a meeting of senior KSEB officials from the district at the PWD Rest House, said the plant, now constructed with a 650-kilowatt capacity, would be able to feed the increasing power requirements of the Malabar region with its gradual extension in the future.
Hyderabad airport commissions 5 MW solar plant GMR Hyderabad International Airport Limited has commissioned a 5 MW solar power plant for its captive consumption. Located close to the
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greenfield airport, the solar plant has started generating around 25,000 units per day of pollution free energy and meeting the airport’s peek power demand during day time. The green energy produced by the plant is equivalent to meet requirement of about 4,800 homes.
AAI and distribution firm disputes delays solar plants Solar power plants at six airports have been delayed due to wrangling between the Airports Authority of India (AAI) and power distribution companies over net metering arrangements. The lack of agreement has stalled the building of solar plants at the airports in Hubli, Belgaum, Bhubaneshwar, Varanasi, Lucknow and Madurai, all run by the AAI. “We expect the differences to be resolved and the plants to start running before the end of the current financial year,” said AK Mishra, director, engineering, AAI. The AAI, which runs 125 airports in the country, including 18
Middle School. Given that the area where the Tiruldih Middle School is situated is devoid of electricity, Tata Power came up with the unique idea of installing solar water pumps to ensure continuous supply of running water in the school toilets. The objective of this initiative was to create an environment which encourages and facilitates learning and attendance in schools by providing a clean and congenial environment for students to study.
Peraje to be first solarpowered village in India
An action plan of `1.44-crore prepared by Peraje Solar Lamp Implementation Committee in Peraje village of Puttur taluk could well set the tone for making Dakshina Kannada the first complete solar powered district in India. The committee handed over the action plan prepared by it to the deputy commissioner AB Ibrahim and chief executive officer of Dakshina Kannada zilla panchayat PI Sreevidya. Yamuna S Rai, president of the committee, and Sheena Shetty and Krishna Moolya of Jana Shikshana Trust respectively gave details of the solar plan at a meeting held in the office of deputy commissioner. Ibrahim, who perused the plan directed authorities concerned to help the committee achieve its objective by March 15.
Solar roof-top plant inaugurated international and 78 domestic ones, is keen on cutting its electricity bills by generating its own solar power.
Tiruldih school to get solarbased water supply system Tata Power has launched solarbased water supply system for Tiruldih Middle School. The company’s Tiruldih project has worked with the nearby villages of Kuda, Tiruldih, Chaura and Gundalidih of Kukru Block to provide continuous and clean water supply to the children of Tiruldih
JR Lobo, MLA, Mangaluru City South, inaugurated the city’s first 20 kW capacity commercial solar roof-top plant set up by Raija Solar at the SRR Masala building in the Pumpwell Junction area. According to Dayalu S., Assistant Executive Engineer, Sub-Division III, MESCOM, the plant could produce a maximum of 104 units of solar energy a day. He said that a one-kilowatt capacity solar unit could produce a maximum of 5.2 units of power. It is the city’s first 20 kW capacity roof-top plant under commercial category, he said.
RAYS POWER INFRA BAGS 80 MW FOR CLIENTS Solar EPC company Rays Power Infra Pvt Ltd, has announced bagging of a sizeable percentage of the total capacity of the U arakhand Solar Tender. The total capacity of the tender was 170 MW, of which Rays Infra acquired 80 MW on behalf of its clients. This was done under co-development and pre-bid EPC e-up models for a financial bid opening conducted in Dehradun. Moreover, Rays Power Infra, which had submi ed a bid for 90 MW was successful in securing a sa sfactory range from L1 tariff meaning `5.57 per kWh and the H2 tariff at `5.98 per kWh.
SOLAR POWER FIRMS RACING AGAINST TIME With the deadline for the expiry of the control period fast approaching, solar power companies that have signed PPAs with the Tamil Nadu government are racing against me to finish their projects. The rains in November and December either slowed down or completely halted opera ons at the construc on sites, representa ves of Adani and SunEdison, who are se ng up solar plants of a total capacity of nearly 800 MW in the state, claim. But TNERC has put its foot down and declined any extension of the control period which expires on March 31. ST January-February 2016 SOLAR
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newsbeam finance
HP nod for JV firm to implement solar park
KERALA HC ORDERS SPEEDY TRIAL IN FIRST SOLAR SCAM CASE The Kerala high court on ordered for comple ng the trial in the first case registered in connec on with solar scam within six months. Jus ce B Kemal Pasha issued the direc ve a er considering a pe on filed by the complainant, KM Sajjad of Perumbavoor, who had allegedly lost over `40 lakh in the scam. The High Court has thus directed Perumbavoor magistrate court, where the trial is being held, to give priority to Sajjad’s case and to schedule con nuous hearings to clear it sooner.
GREEN CERTIFICATES SALE RISES TWO-FOLD TO TO 9.6 LAKH IN DECEMBER Sale of renewable energy cer ficates (RECs) increased by two-fold to 9.6 lakh in December from 3.19 lakh in November due to be er compliance of Renewable Purchase Obliga on by the companies. RPO is an obliga on mandated by central/ state regulatory commission and is applicable to power distribu on companies, open access consumer and cap ve consumers. They are under obliga on to buy RECs from renewable energy producers to meet this norm. Two power exchanges -- Indian Energy Exchange (IEX) and Power Exchange India Limited (PXIL), approved by the Central Electricity Regulatory Commission -- hold auc on of RECs on the last Wednesday of every month.
India is likely to spend $1 trillion on power by 2030: Goyal Rays Power Experts sign 25-year contract with SECI Renew to corner $20 bn each year from 2017: IREDA Orange Renewable wins 100 MW at SECI auc on in Maharashtra
the sanction from the Centre. Germany has already agreed to provide financial assistance of `915 crore to Himachal Pradesh, along with Andhra Pradesh, for financing two green energy projects. Of the total amount, 57 million euro loan would be given to Himachal Pradesh.
SOLAR PANEL ASKS CHANDY TO TESTIFY
100 MW of solar power from grid in Bihar approved
The judicial commission probing into the solar panel scandal has summoned Kerala CM Oommen Chandy to tes fy as a witness. The commission, headed by re red HC judge G Sivarajan, will record Chandy’s tes mony in Thiruvananthapuram on January 25. The scam refers to allega ons of irregulari es in the solar panel business run by Biju Radhakrishnan and his then companion Sarita S Nair.
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The Himachal Pradesh cabinet gave its nod for the formation of joint venture company “Himachal Pradesh Solar Power Corporation Limited” for the implementation of 1,000 MW solar park in Spiti valley of Lahaul-Spiti district. With this, the dream to harness solar power in the cold desert in high Himalayas has inched towards reality. For the first time, the solar park has been planned in Spiti and the state has already submitted already received
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had invited bids for setting up of grid connected solar PV projects of total 100 MW aggregate capacity in the state in compliance of the direction of the state energy department. The BERC approved procurement of 100 MW of solar power selected through competitive bidding process for procurement of solar power at the quoted rates of the selected bidders mentioned in the PPAs ranging from `7.87/kwh to `8.73/kwh with the direction that the selected project is commissioned strictly within the time
To encourage faster growth of solar power in the state and to fulfil solar power purchase obligations as per the existing Regulations, the Bihar Electricity Regulatory Commission (BERC) approved the procurement of 100 MW of solar power on long term basis (25 years) selected through competitive bidding process for its procurement. Bihar state power holding company limited (BSPHCL)
line as envisaged in the PPA i.e. July 16 2016.
Rooftop solar projects to get $1.5 billion foreign aid The World Bank, Asian Development Bank and the New Development Bank formed by the BRICS nations are providing loans to boost India’s rooftop solar programme. “We are getting $500 million (`3,345 crore) from each of them to fund rooftop solar projects, mostly in the industrial and commercial sector,” said Upendra Tripathy, secretary at the Ministry of New and Renewable Energy (MNRE). The loans are likely to be disbursed through leading public sector banks and financial institutions. Last week, the Cabinet Committee for Economic Affairs approved hiking MNRE budget for setting up grid-
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with a guarantee of lifetime free maintenance. “We should be able to save around 30% to 50% of our electricity bills, which translates into a yearly saving of up to `60 lakh,” said municipal commissioner Kunal Kumar. The proposal has been sent to the standing committee for final approval. Once cleared, the project should become operational in six months.
Solar sector funding drops to $25.3 bn in 2015 connected rooftop solar systems to `5,000 crore from `600 crore. The funds will be used to provide 30% subsidy to all domestic users and public institutions which set up rooftop solar plants. Industrial and commercial establishments, however, are not entitled to this subsidy.
MSMEs yet to tap solar energy The Micro, Small and MediumScale Enterprises (MSMEs) here that incur huge electricity bills say they cannot go in for solar energy unless the Government announces a special scheme for these units. The powerloom units in Coimbatore district have appealed to the Union Government to extend loans at lower interest rates for those opting for solar energy. J James, president of Tamil Nadu Association of Cottage and Micro Enterprises, says the MSMEs need nearly 8 kW solar energy and this will involve investment of about `8 lakh.
Solar sector globally attracted corporate funding worth $25.3 billion in 2015 against that of $26.5 billion in 2014, says a report. “Total global corporate funding in the solar sector, including venture capital/private equity (VC), debt financing, and public market financing, raised by public companies came to $25.3 billion, compared to $26.5 billion in 2014,” according to a report by clean energy communications and consulting firm Mercom Capital Group. Mercom Capital Group CEO Raj Prabhu said that overall it was a good year for the solar sector considering the turbulence
Solar power can help PMC save `60 lakh a year The Pune Municipal Corporation (PMC) plans to generate about 1 MW electricity from solar energy for 19 of its roughly 100 buildings in the city. The project will be carried out in association with the Solar Energy Corporation of India (SECI), which has identified vendors to install solar plants at the rate of `5.56 k/Wh much less than the current purchase rate of the PMC. The solar panels will be installed atop 19 buildings for which the civic body will not have to pay anything. The set up will come
in the stock markets and trouble with “yieldcos in the second half of the year. The extension of the Investment Tax Credit (ITC) was a much needed boost for the sector, paving the way for a strong 2016.” Global VC investments came to $1.1 billion in 83 deals in 2015, compared to $1.3 billion in 85 deals in 2014, the statement said. Despite a weak fourth quarter, public market financing had its strongest year with almost $6 billion raised in 38 deals, compared to the 2014 record of $5.2 billion in 52 deals.
SUZLON TO ENTER SOLAR ENERGY SECTOR IN FY16 Suzlon Group chairman Tulsi Tan said that the group is looking to enter the solar energy sector in the current financial year. Tan said, “Our priority for FY16 will be to ramp up volume by execu ng a strong order book of around 1,100 MW while taking advantage of the immense trac on in new orders.” The fiscal will also mark our foray into the solar energy, with plans to offer wind-solar integrated solu ons, he added. He said the company will con nue to develop highyield products which will bring down the cost of energy and increase the ROI for customers.
CENTRAL GOVERNMENT MULLS AID TO BENGAL FOR SOLAR PUMP PROJECT The Central Governement is likely to announce a package to help West Bengal set up pumped storage system clubbed with solar facili es with assistance from Na onal Clean Energy Fund. “West Bengal has been discussing se ng up pumped storage systems along with solar genera on facili es and has asked for support from the Na onal Clean Energy Fund. We like the idea and are in the process of preparing a package that would be announced soon,” the Union power minister Piyush Goyal said at Global Bengal Summit. ST
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newsbeam international
Solar energy gets $5M boost from Alberta government
REC SILICON SHUTTERS US POLYSILICON PRODUCTION REC Silicon is now on the list of corporate casual es in the solar ba le between the US and China. The Norwegian polysilicon manufacturer said that it would shut opera ons at a factory in Washington and delay previous plans for restar ng produc on at a second facility in Montana in the USA. In both cases, REC Silicon a ributed the decisions to curtail produc on of polysilicon in the United States to the combined impact of a global supply glut and an ongoing trade dispute between China and the United States in the solar manufacturing field.
Iran to pay 35% for solar, wind plants with domes c content Yukon College to study solar technology performance Ikea quietly stops selling solar panels to UK householders Adani eyes solar plant in Oz as coal plan remains stuck WASHINGTON FILED THE WTO CHALLENGE THREE YEARS AGO The US and India are in talks that could se le a long-running solar power trade dispute, delaying the announcement of a ruling by the World Trade Organiza on, an Obama administra on official said. Washington filed the WTO challenge three years ago, claiming that India’s na onal solar power programme illegally discriminated against imported solar panels.
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The Alberta government is hoping a $5 million investment will help spark growth in renewable energy. “It’s about doing the right thing for our province. It supports new jobs in a greener more diverse economy,” said Shannon Phillips, minister of Environment and Parks, at NAIT’s Centre for Sustainable Energy Technologies. The money will go towards a solar energy initiative program aimed at municipalities and
Electric Association, Holy Cross Energy, San Miguel Power Association, and the Yampa Valley Electric Association. They are being constructed to help provide electricity to those most in need – people who spend more than 4% of their income on utility bills in rural areas. It has been estimated that these customers could save about 50% on their energy bills when the community solar projects are operational. A $1.2 million Colorado Energy Office (CEO) grant was given to GRID Alternatives
CALIFORNIA HAS NEARLY HALF OF USA’S SOLAR CAPACITY The United States has slightly more than 20 GW of solar genera ng capacity, which includes u lity-scale solar PV and solar thermal installa ons, as well as distributed genera on solar PV systems, also known as roo op solar. In 2014, California became the first state to generate at least 5% of its electricity from u lity-scale solar plants (i.e., generators with at least one MW of capacity), which in California make up a higher share (68%) than the na onal average of 60%. For both u lity-scale solar PV and solar thermal, California has more capacity than the rest of the country combined, with 52% and 73% of the na on’s total, respec vely, according to the U.S. Energy Informa on Administra on, Electric Power Monthly.
farmers. Cities and towns will be offered rebates of up to $.75 per watt to a maximum of $300,000 per project. It’s hoped that will provide incentive for municipalities to install solar on municipal buildings like fire halls and community centres. As for farmers, the province says they can get a share of the $500,000 for installing solar energy systems.
5 low-income community solar projects announced in Colorado About 579 kW of low-income solar projects have been announced by the Colorado Energy Office and GRID Alternatives. Five projects will be built by the Delta Montrose Electric Association, Gunnison County
(GRID) for low-income community solar. GRID also worked with the utilities to arrange for the community solar projects to be built.
Massachusetts hits cap on solar power incentives A state solar incentive with benefits for homeowners and developers has run out, according to The Boston Globe. Before, Massachusetts issued solar renewable energy certificates that encouraged solar panel use. Homeowners and developers were given credits they could sell and buy based on how much solar energy the produced, according to the Globe. The run on commercial certificates started after the Department of Energy Resources set
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aside megawatts for smaller residential projects. Legislators are split on the best way to renew both programs, which could risk Massachusetts’ status as a top solar energy state and stall existing construction projects, according to The Salem News.
UK grab for tariffs boosted European solar panel sales Solar power panel sales rose for the first time in four years in Europe last year, but only because of a rush in Britain to get new solar power supplies hooked up to the grid before the government cuts the feed-in tariffs to be paid to electricity producers on new installations. About 8 GW of new PV generation capacity was connected up to electricity grids last year across Europe, an increase of about 15 percent on the previous year, said the Brussels-based SolarPower Europe industry association, formerly known as EPIA. It said last year’s rise, the first since 2011, was driven by demand in the UK market, where 3.32 GW of new capacity was installed in 2015, data from the UK Department of Energy and Climate Change (DECC) showed.
Morocco turns on world’s largest solar power plant Morocco has turned on its massive solar power plant in the town of Ourrzazate, on the edge of the Saharan
desert. The plant already spans thousands of acres and is capable of generating up to 160 MW of power. It’s already one of the biggest solar power grids in the world, capable of being seen from space. And it’s only going to get bigger. The current grid, called Noor I, is just the first phase of a planned project to bring renewable energy to millions living in Morocco.
It will soon be followed by expansions, Noor II and Noor III, that will add even more mirrors to the existing plant. Once the project is complete around 2018, the entire grid will cover 6,000 acres. It will be capable of generating up to 580 MW of power, comparable to that of a small nuclear reactor.
Jacksonville Electric Coop adds solar power tech First Electric Cooperative in Jacksonville announced that it will be adding solar power technology thanks to a new service agreement with Today’s Power, Inc. The Arkansasbased company will install a 1 MW AC solar array for First Electric Cooperative. The solar array that will be installed is a 3,840-panel system, and it’s scheduled to be operational toward the end of 2016, officials said. The system will be installed on five acres of land near Benton.
Solar power from Jerusalem for South Sudan hospital Jerusalem-based Energiya Global is using the Israeli crowdfunding platform Crowdmii to raise $60,000 toward building a solar-powered generator for His House of Hope, a Christian ministry-run orphanage, school and hospital catering to women and children in Yei, South Sudan. The Israeli solar and social development enterprise aims to provide clean electricity for 50 million people in underserved areas of the world. South Sudan, a country founded after a long civil war in Sudan, has many orphans and homeless children. The funding campaign is a partnership with the New York-based Renewable Light Fund. If the campaign is successful, installation of the solar panels at His House of Hope Hospital will begin three months later, and is expected to take three additional months to complete. Previously, Energiya Global’s sister company, Gigawatt Global, constructed a $23.7 million utilityscale, grid-connected, commercial solar field at the Agahozo Shalom Youth Village in Rwanda.
FRANCE TO INSTALL 1,000 KM SOLAR ROADWAYS OVER 5 YEARS French minister of ecology and energy, Ségolène Royal, has announced that France wants to pave 1,000 km of road with solar panels over the next five years. The first tests will become in spring, according to French infrastructure company Colas, which has developed the photovoltaic road surface (called “Wa way”) to be used in the trials, 1-km-long sec on of road will be able to power public street ligh ng for a town of 5,000 inhabitants. Once the project is complete, the roadway will supply electricity to about 8% of the French popula on.
SOLAR FRONTIER & JAPAN RENEWABLE ENERGY DEVELOPING 300 MW PROJECTS Solar Fron er is partnering with the Goldman Sachs-affiliate Japan Renewable Energy to develop 300 MW of new solar photovoltaic projects in Japan within the next 5 years. As there are roughly 57 GW pipeline of solar PV projects in the country that have yet to go forward despite being awarded feed-in-tariff (FiT) contracts in recent years, the above projects aren’t that notable except they include some previously unexecuted projects, which can now be developed for less than was previously es mated. ST
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cover story
42663.42 MW Major Hydro
The Paris summit has put a lot of thrust on sustainable energy sources vis-Ă -vis fossil fuels. The government and industry have to gear up for achieving the ambitious target set for solar power capacity.
4176.82 MW Small Hydro
25088.19 MW Wind 20
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4878.87 MW
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Solar
4550.55 MW BM Power/Cogen
127.08 MW Waste to Energy
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cover story Children taking shelter under solar microgrid at Dharnai village in Bihar.
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o bring the planet back from the brink of man-made disaster, which is expected to raise the global temperature leading to raise in water levels inunda ng several low lying areas in the world, country heads from about 200 countries gathered in Paris and signed a historic agreement to cap the o temperature rise below 2 C from the pre-industrial (about 1750) by 2030 in December 2015, which was applauded by the global climate groups, albeit with some excep ons. The na ons also resolved to pursue efforts aimed at the more difficult objec ve of o pegging temperature rise under 1.5 C. The agreement also proposed for ins tu ng a regime of financing of developing economies to help make the transi on. Now, the stage is set for all the countries to move to a low carbon pathway with the Paris Agreement on climate change, which is scheduled to go into effect from 2020. Voluntary pledges, called intended na onally determined contribu ons
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(INDC) made by individual countries to peak their greenhouse gas emissions that are warming the atmosphere and changing the climate underpinned the agreement at the Paris Summit that concluded on December 12, 2015. Even the developed countries had to change their tack to climate change at this summit, as the issue has reached a pping point, before they reached Paris. Dr Manish Kumar Shrivastava, Fellow, Earth Science and Climate Change Division, The Energy and Resources Ins tute (TERI) says, “The primary compulsion for the Paris summit was poli cal. A er the failure of the Copenhagen mee ng (in 2009) significant amount of poli cal capital was invested in re-building the trust and finding a pragma c global agreement. Another failure in reaching any agreement was perhaps poli cally not viable. The second compulsion was the shrinking window of opportunity to stay within the temperature range.” India, the third biggest emi er of
greenhouse gases as a country a er China and the United States, was one of the countries in the spotlight at the Paris Summit, having made an ambi ous commitment of bringing down greenhouse gasses (GHG) by 30-35 per cent from the levels seen in 2005. Several of India’s commitments made to the United Na ons Framework Conven on on Climate Change (UNFCCC) are expected to impact the strategies of power sector players in India the next 15 years, if not more.
Salient Features Besides, se ng a firm target of cap the planet’s temperature rise below o 2 C from pre-industrial levels, the Paris Agreement enjoins upon the developed countries to raise finances with $100 billion per year as the floor by 2020, to help developing na ons in both mi ga on and adapta on ac vi es, while other na ons are encouraged to provide funding voluntarily. However, any basis for
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How India’s INDC compares to others Country
(all targets for 2030)
INDC promises
China
1. Achieve peaking of carbon dioxide emissions around 2030 and make best efforts to peak early 2. Lower carbon dioxide emissions per unit of GDP by 60 to 65 per cent from the 2005 level 3. To increase the share of non-fossil fuels in primary energy consumption to around 20 per cent 4. To increase the forest stock volume by around 4.5 billion cubic meters on the 2005 level.
India
1. Reduce emissions intensity of its GDP by 33 to 35 percent by 2030 from 2005 level. 2. Achieve about 40 percent electric power installed capacity from non-fossil fuel based energy resources by 2030 with help of transfer of technology and low cost international finance 3. Create an additional carbon sink of 2.5 to 3 billion tonnes of CO2 equivalent through additional forest and tree cover by 2030.
European Union At least 40% domestic reduction in greenhouse gas emissions by 2030 compared to 1990 South Africa
Let its emissions peak between 2020 and 2025, plateau for approximately a decade, and decline in absolute terms thereafter
Russia Limit greenhouse gas emissions to 70 to 75 per cent of 1990 levels by 2030 Japan Reduce emissions by 26 per cent by 2030 compared to 2013 levels (25.4 per cent compared to 2005) United States Reduce emissions by 26 to 28 per cent below 2005 levels in 2025; make best efforts to reach upper level Brazil Reduce greenhouse gas emissions by 37% below 2005 levels in 2025. Reduce it further, by 43% below 2005 levels in 2030
liability of countries which have historically accumulated greenhouse gases in the atmosphere causing disastrous climate events such as droughts, floods and ex nc ons, has been excluded. The first global evalua on of the implementa on of the Paris Agreement is to take place in 2023, and therea er every five years to help all countries. Pledges by countries with an end date of 2025 or 2030 will need to be updated by 2020, and enhanced ac on every five years therea er. It will also be possible for countries to cooperate voluntarily,
form groups of na ons for climate goals, and use both public and private finances, market and non-market mechanisms to meet the objec ve. A facilita ve dialogue of countries is to be held in 2018 to review the collec ve efforts, and the Intergovernmental Panel on Climate Change is to be asked for a special report in the same year, on the o impacts of global warming of 1.5 C above pre-industrial levels. “We were pleasantly surprised to see a more posi ve and concrete outcome in this par cular summit versus Copenhagen. Perhaps the
earlier expecta ons were a bit higher. May be a lot of groundwork has happened this me leading to a posi ve outcome and intent in this summit,” Ashish Khanna, Chief Execu ve Officer and Execu ve Director, Tata Power Solar Systems Limited, said in an exclusive interview to Power Today. Union Environment Minister Prakash Javadekar expressed happiness that the text addressed the concerns raised by India in almost all areas — mi ga on of carbon emissions, adapta on to climate change, financing, technology
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Road to curb global temperature rises The goal of the 2015 Paris Climate Conference, CoP21, is to keep average global temperatures no more than 2°C above pre-industrial temperatures.
Source: Global Carbon Project
development and transfer, capacity building and transparency.
Solar Thrust “The summit, virtually, has put a lot of thrust on sustainable energy sources vis-à-vis fossil fuels that have been a staple source of energy for a number of countries, and that is a major shi that is visible in the outcomes of this meet. The summit will, sure, have impact on the power industry. In fact people have realised that fossil fuels cannot grow in the manner it has been growing in the last 25 years as a source of energy and hence we may need to rely on sustainable and renewable energy sources like solar, which is and will play a cri cal role in providing that energy source,” Khanna of TPS said. Fossil fuels which were in the forefront as the source of energy world-wide at present are expected to take a back seat with several countries taking a stand to shi to sustainable and renewable energy sources like solar and wind in the years to come. This is a very cri cal decision, because power and transporta on sectors are the major contributors to global temperature rise. “Paris summit is a larger global
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thing that will drive the larger global industry that will also help us. If everybody starts thinking in the same direc on, the costs will come down, more research will be undertaken and we will get be er technologies,” said Sanjeev Aggarwal, Chief Execu ve Officer and Managing Director, Amplus Solar. “Solar is probably the most compe ve in terms of pricing and people are ready to adopt it. With this summit solar power is going to get a big push across the world, not only in India. This is a posi ve development for the sector,” Aggarwal added.
Why Solar? Looking from the Indian perspec ve, if you see renewable energy (RE) sources, essen ally it started with hydro power long back, then we moved on to biomass, probably it could have preceded even hydro, later moved into wind and now to solar. We have very limited poten al for geothermal and dal waves for genera on. From the prac cal perspec ve, if one leaves aside some of the large issues with the hydro power development, technologically, we are le with wind and solar. “Wind has become more or
Global mean temperatures above pre-industrial levels • 1850-1900 Average temperature 13.7°C • 1.0°C Temperature rise expected to surpass 1°C in 2015 • 2.7°C Forecast warming† by 2100 even if all COP21 pledges are implemented • 4-5°C Forecast rise by 2060 if current emissions levels continue • 2.0°C 2010: 193 nations sign Cancun Agreements committing governments to “hold increase in global average temperature below 2°C above pre-industrial levels” • 3-5°C Warming on existing emissionsreduction policies. Low-lying island states at risk from rising sea levels Note: Accurate assessment of temperatures in 1750s – when industrial revolution began – is difficult. To overcome problem, climatologists use average temperatures recorded between 1850 and 1900. Sources: UK Met. Office Hadley Centre, Climate Action Tracker, WMO
less stagnant, adding only about 2000-3000 MW every year. Essen ally the requirement is of a good site and land. We have to acquire land and get forest approvals etc. All those issues are there with the wind. Therefore, the growth in wind has become stagnant,” says Aggarwal of Amplus. Meanwhile, solar technology has evolved and there was a move towards solar and it is poised to become a major part of the RE energy. Within solar, there are two categories
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- one, u lity scale and the other, distributed genera on. “U lity scale genera on again has the same problem, land, transmission and payment problems by distribu on companies. So with the prices started coming down, expecta on is that we will be keeping the prices down and the people will be absorbing it, but the on-ground challenges s ll remain,” Aggarwal adds. Major field-based solar projects are expected to create challenges like sourcing the land and crea ng transmission lines. Transmission lines take two-three years to build, while solar project can be implemented in six months to one year meframe. “Is it like we are pu ng the cart before the horse by se ng up these large projects? Where is the transmission capacity to absorb all this capacity that is coming on stream? Our view as a company is, distributed genera on is a much be er way of harnessing RE energy,” said Aggarwal of Amplus.
Govt must attract MNCs bringing in
best technology - Sanjeev Aggarwal, Chief Executive Officer & Managing Director, AMPLUS SOLAR There is a feeling that in the light of the Paris Summit the power companies may have to rush to drawing board to redraw their long term strategies. What is the strategic shift Indian solar power companies like you will have to take and why? Paris summit is a larger global thing that will drive the larger global industry that will also help us. If everybody starts thinking in the same direction, the costs will come down, more research will be undertaken and we will get better technologies. All these things will happen. But as far as the Indian companies are concerned, they are driven by how the government is pushing the RE agenda. At this stage, the government is, yes, planning to set up more and more solar plants, to some extent that is an enabler too. So, not only Indian companies, but a lot of MNCs are looking at India, trying to figure out what their investment plans should be for India. Things are generally moving in the right direction, but we may have to really fulfil the expectations of the industry, as they bring in the best prices and better technology. And the government should not let them down, having issues like land, transmission and financing etc. The government has to tackle these issues too.
Boosting capacities India is aiming for a total installed power produc on capacity of somewhere around 800 GW in 2030, almost a three-fold jump from the current levels. To fulfil this commitment, it would have to install 320 GW of non-fossil fuel capacity by that me. The 63 GW target for nuclear energy for 2032 is unlikely to be met considering that most of the nuclear projects are running several years late. The current installed capacity of nuclear energy is only 5.7 GW. Hydropower currently contributes about 42 GW of capacity. Considering the kind of opposi on to big dams now, it would be a difficult task to double the capacity in the next 10 to 12 years as is being planned. It would, therefore, fall on the renewable energy sources — solar, wind and biomass — to achieve the 40 per cent target. The government has already unveiled an ambi ous programme of installing 175 GW of renewable capacity by 2022. If this is achieved, adding another 50 GW in the next eight years would not be a
Do you think that you might need to tweak your portfolio of products and services or ramp up in any manner in the next 10-15 years, in the wake of Paris agreement? The common goal is that we meet the environmental challenge. If you see from that challenge, today solar might be seen as the best technology and five years back it was natural gas that was the better technology and five years hence you may see fuel cells as a better technology. But which is the most environmentally sensible technology to use, is the question. We are talking of 10-15 years from now. The technologies are changing so fast and it is only a futuristic prognosis. Amplus is always ready to adopt any technology and we are always on the lookout for better technologies to serve our customers and the environment. How do you see the Paris Climate Change summit affect the solar power industry in any way? On the Paris summit, the good thing is that most of the countries are agreeing that there is a requirement to tackle the climate change. That is a good beginning. We should look at it from that perspective. Solar is among the energy sources that is the most widely used energy source now. It is probably the most competitive in terms of pricing and people are ready to adopt it. With this summit solar power is going to get a big push across the world, not only in India. This is a positive development for the sector. To what extent India is lagging/leading in adopting environment-friendly technologies in the power sector when compared to global benchmarks? People normally use IEC codes for manufacturing. I don’t think we have been able to completely work out codes for solar components completely. (For full interview, log on to www.SolarToday.co.in)
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Coal-based plants may have to
revisit their models - Ashish Khanna, Chief Executive Officer and Executive Director, TATA POWER SOLAR
There is a feeling that in the wake of the Paris Summit, power companies have to rush to drawing board to redraw their long term strategies. So what is the strategic shift all the power companies have to take? In my personal view, everything is here to stay because in this country as there are 300 million people without any power source and another 400 million people who have an erratic grid connectivity. In that particular segment, solar is a new technology, it has compatibility and is competitive. As such it is going to give to coal-based power, especially the imported coal-based power generators, a tough time at the grid level tariffs. As you said these people have to rush to their drawing boards and revisit their models. For several years, solar has not been considered to be a competitive power source vis-à-vis the coal based source. All those companies which are primarily relying on coal-based power will have to revisit their financial requirements and also the tariffs. Compared to them, solar power companies will get more leverage in getting bank financing, besides technology will enable them to provide distributed generation and it will be a much better power source considering the transmission and grid costs for transfer of power from generation to the ultimate consumer and other factors are taken into consideration. What will happen to the coal plants? I will completely agree with you that till date we are a coal-based power producing country. Still there are gaps in basic demand and supply. I think this gap needs to be bridged first of all. And in this scenario, on a long term perspective, what will help solar companies is greater financing and capital building for RE sector, which will emerge vis-à-vis coal based power generation. We have to develop a perspective on long term financing front for the power sector as a whole and we have to see what kind of support will flow in. There are exiting schemes whether it is IREDA support or from IIFC for solar companies. It is a clear indication and demarcation of the fact that these are indicating towards the RE energy vis-a-vis coal based power stations. How do you see the summit outcome affect the power industry in general and solar sector in particular? The summit, virtually, has put a lot of thrust on sustainable energy sources vis-à-vis fossil fuels that have been a staple source of energy for a number of countries, and that is a major shift that is visible in the outcomes of this meet. The summit will, sure, have impact on the power industry. In fact people have realised that fossil fuels cannot grow in the manner it has been growing in the last 25 years as a source of energy and hence we may need to rely on sustainable and renewable energy sources like solar, which is and will play a critical role in providing that energy source. In a nutshell, there is a big shift from fossil fuel energy sources to renewable energy (RE) sources and this is very critical. (For full interview, log on to www.SolarToday.co.in)
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very difficult task. At the end of July 2015, renewable energy, nuclear energy and hydropower — all non-fossil fuel sources — together contributed 30 per cent of the overall installed capacity.
India’s commitment India has pledged to reduce its green house gas (GHG) emissions intensity — the ra o between a country’s gross emissions to its gross domes c product at a par cular point — by 33-35 per cent by 2030, compared to 2005 levels. For this, India announced that it will ensure about 40 per cent of its electricity comes from non-fossil fuel sources, with a lion’s share planned from solar, followed by wind. India has also commi ed to increase its forest cover to create an addi onal carbon sink of 2.5-3 billion tonnes of carbon dioxide equivalent. These targets, under INDC, were presented to UNFCCC ahead of the Paris summit on October 1, 2015. Thus, it is more ambi ous than what it commi ed to in 2010 - to reduce the emissions intensity of its economy 20-25 per cent compared to 2005 levels by 2020. Up to 2030, these emission intensity-reduc on targets and adapta on to climate change will require about $2.5 trillion, besides an array of technologies, India said. It had commi ed to mobilise new funds from developed countries and said it would work to build an interna onal architecture for diffusion of cu ngedge technologies, as well as collabora ve research and development in this regard. India was one of the fiercest advocates of UNFCCC principle of ‘Common but Differen ated Responsibili es’ ensuring equity among the commitment of na ons to curtail climate change at the 21st mee ng of the Conference of the Par es (CoP21) as the summit is officially called. Ul mately, joining the forces with several developing na ons, India was successful in ge ng this principle incorporated in the Paris agreement.
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While making its submission on INDC just ahead of the 21st mee ng of the Conference of the Par es (CoP21), as the summit is officially called, India has also said, “The successful implementa on of INDC is con ngent upon an ambi ous global agreement, including addi onal means of implementa on to be provided by developed countries, technology transfer and capacity building, following ar cles 3.1 and 4.7 of the conven on.” However, India did not succumb to pressures from some developed countries to undertake sector-specific targets. Ni n Pandit, CEO of the World Resources Ins tute in India, said: “As one of the most vulnerable countries to climate change, India recognises the domes c benefits of confron ng this issue. Its climate plan does a good job combining opportuni es to reduce emissions in the near term, and it includes clear goals to restore landscapes that will bring long-term benefits.”
Right earnest Time-bound ini a ves in the power sector would be crucial for achieving the Paris summit targets which are intended to save the planet. Responding to a query, Shrivastava of TERI said, “Power and transport sectors are the most cri cal sector that would need to be set on the immediate transforma on trajectory. These are the sectors where the scope of high emission lock-in in terms of infrastructure is large and they are also expected to grow significantly (going ahead).” Higher efficiency in power genera on along with increasing share of renewable energy is cri cal. Move away from private transporta on and towards electrifica on of transport services will enable achievement of emission reduc ons envisaged in the INDCs of different countries. “Another sector, that would need careful and cau ous development trajectory is the buildings sector. Energy efficient buildings will play an important role in decoupling energy demand from the
rates of urbanisa on in coming decades,” Shrivastava explained. Already India has embarked on an ac on plan to reduce emissions and adapt to climate change, most of which impact the power sector strategies at least during the next 15 years. These include the ambi ous target of se ng up 175 GW of solar and wind power capacity by 2022 and an enhanced energy-efficiency mission across industrial sectors and increasing the energy mix of non-fossil fuel power capacity to 40 per cent. The INDC also unveiled the government’s plans for introduc on of new, more efficient and cleaner technologies in thermal power genera on, reduc on of emissions from the transporta on sector, promo on of energy efficiency in industry, transporta on, buildings and appliances, and reduc on of emissions from waste.
Strategic shift The Paris accord has been successful in sending a resounding signal to the markets that the era of fossil fuels is gradually approaching an end to meet its goal. This is set to change the dynamics of the power sector in India, par cularly coal-based power companies have to rush to drawing board to redraw their long term strategies, while renewable energy sector has to gear up their plans to meet the country’s ambi ous target of 175 MW by 2022. “Solar is a new technology, it has compa bility and is compe ve. As such it is going to give to coal-based power, especially the imported coal-based power generators, a tough me at the grid level tariffs. As you said these people have to rush to their drawing boards and revisit their models. All those companies which are primarily relying on coal-based
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power will have to revisit their financial requirements and also the tariffs,” says Khanna. However, Pramod Menon, Director-Finance of JSW Energy said, that his company was not thinking of changing strategies at present, “but (we are) looking at implica ons.” However, as a responsible company, we also plan to interact with the government on the MoEF norms, the direc on of which is going that (Paris Summit) way,” Menon added. Paris summit is a larger global factor that will drive the larger global industry that will also help the solar industry as a whole and India. However, some companies may have to redraw their strategies over the next 15 years. But referring to the pace of changing technological landscape in the environment-friendly technologies, Sanjeev Aggarwal of Amplus says, “The common goal is to meet the environmental challenge. If you see from that challenge, today, solar might be seen as the best technology and five years back it was natural gas that was the be er technology and five years hence you may see fuel cells as a be er technology. But which is the most environmentally sensible technology to use, is the ques on.” However, Amplus is always
ready to adopt any technology, and always on the lookout for be er technologies to serve our customers and the environment, he added.
Fossil fuels India is also taking steps to address climate change issues pertaining to transporta on sector also. Looking though a linear eyeglass, oil looks like it will retain and indeed increase its monopoly share well into the future. This is because there are no obvious scalable alterna ves. Natural gas is a possibility and massive investments are in the pipeline, for which engines have to be redesigned. Biofuels are also an op on, but they compete with agriculture and are not as energy efficient as gasoline. Recently, the Interna onal Energy Agency (IEA) has projected that coal and oil will remain the bulwark of the future global energy system and that China and India will be the drivers of fossil fuel demand, adding credibility to fears expressed by some experts. It has es mated that India’s oil demand will increase from 3.6 million barrels per day (mb/d) today to around 10 mb/d by 2040, and that it will be the largest incremental contributor to coal demand in the world. That way Paris summit and the IEA are not mutually
consistent. Narendra Modi’s sugges on for global “partnership” and “innova on”, seems to be the only way out from this impasse. Shri A.K. Jha, Chairman and Managing Director, NTPC, while par cipa ng in the panel discussion on “Climate Change and Genera on of Thermal Power- Improvements in Conven onal Systems” at COP- 21, Paris held in India Pavilion, stressed that coal is not an op on but compulsion for India. Speaking about research being carried on Advance Ultra Super Cri cal technology by different countries to enhance efficiency of coal plants, Jha said, “There is an urgent need to cooperate and share the developments by various countries to accelerate the pace of development and in the interest of the climate change without linking this to commercial/IPR issues. Since RE is not available 24x7, India has to look for adequate balancing power from coal as India does not have enough gas and oil resources, he added. Of 23-GW capacity under construc on in India, more than 90 per cent is based on advanced technologies he informed.
Financing Climate finance, which has been a
Solar farm in a cloudy sky.
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Charanka, India’s first field-based solar project, at sunset.
regular bone of conten on at the nego a ons—failed to see any scale of ambi on. Developed na ons agreed to raise $100 billion annually by 2020, with a commitment to enhanced financing therea er. The nature of finance, its source, accoun ng and distribu on remains unresolved. India sought $2.5 trillion in finance for achieving its INDC by 2030, so a global commitment of $100 billion pales in comparison. If we are to replace coal, we need access to cleaner energy sources and technology at a viable cost. Even with the huge strides we are making in the direc on of renewable energy sources, to do more, at a faster pace, we need help from developed na ons. That’s why interna onal contribu ons towards the development and genera on of greener technologies should be increased at the earliest possible opportunity through global carbon pricing, and by incen vising companies in the developed world to invest and share their research and development in this area, India says. The Paris accord isn’t legally binding on two key aspects. There is no obliga on on developed na ons to
enhance mi ga on targets or increase climate finance.
Looking ahead Achieving a 33 to 35 per cent reduc on in emissions by 2030 is going to be a slightly difficult task for India, considering that the low hanging fruits have already been plucked, though officials say it is achievable. The progress in emission intensity reduc ons thus far has been enabled mostly by energy efficiency measures, like the shi first to CFL bulbs, and then to LED lights. From here on, however, industry-wide efforts would be required to take the emission intensity further down. For all prac cal reasons, solar power is an island of eco-friendly and inexhaus ble source of energy available to the world. India is right in developing it as the source of focus for future power genera on. Paris summit is expected to add further thrust to solar as the best source of power genera on as against fossil fuels, par cularly coal. Having set an ambi ous target for solar and wind power genera on in the next 15 years, India has to really
fulfil the expecta ons of the industry, as they bring in the best prices and be er technology. A lot of MNCs are looking at India, trying to figure out what their investment plans should be for India. And the government should not let them down with issues like access to land, development of transmission lines and providing long-term financing. To promote roo op solar, which is a distributed genera on mechanism, the government has to encourage households to opt for it by providing bank loans on easier terms. Though the segment has been included in the priority sector lending, there are complaints that the banks were no so much inclined. Ul mately, India is power-starved country, so it has to con nue to pursue cost-effec ve energy solu ons to meet the basic requirements at a reasonable cost. For achieving this objec ve, it has to enter into joint ventures for producing cost-effec ve technologies or u lise the window facilitated by the Paris summit for transfer of technology from the developed to developing countries. ST - BS SRINIVASALU REDDY
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Norms are needed to ensure the customer gets
what he has paid for
- Ashish Khanna, Chief Executive Officer and Executive Director, Tata Power Solar Systems Ltd
In the light of past experience, the government invites bids from the players and decides which is the best technology and which is cost effective technology. In the context of distributed solar do you think that this procedure would help?
There are several large projects, for which the developers are compe ve very aggressively on various parameters. I keep saying, for a 10,000 meter marathon, some developers are running like a 100 meter dash. We are all looking at the way the tariffs are going down. For organisa ons like NTPC, they have huge resources available at their disposal to validate the quality of products and services they are going to employ. If you consider in a similar manner a residen al roo op solar project, that is where all those individuals do not exist. And many of them are pu ng their hard earned money (I am not saying that others are not), and many of them have high expecta ons of it. And if these expecta ons are not met on quality parameters, I would say taking short cuts, or have u lised inferior products given the culture in our country where cost is paramount, providing the lowest cost product at the lowest quality parameters, I see the individuals feel that they have got cheated. And righ ully so they have the right to command the quality they deserve. There are lot of products coming from across the border. Do you think that there should be a better regulatory mechanism to ensure that they fulfil their long term guarantees?
There is a system, policy and regula on required to make sure that these individuals get the product they are intended for or they have paying for, that is cri cal. At Tata Power Solar Systems Limited (TPS), a 25-year old organisa on, today we can say with confidence that we can give guarantee of 25 years. Vis-à-vis look at the products that are coming in from across the border, except the top three or four, organisa ons are moving off the radar screen, leaving aside their commitment to the quality of the product and guarantee. They no longer exist a er a few years as we have seen in our experience. I think it will be very difficult unless there is a policy framework and a regula on
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available for everyone providing these products should provide all the services and adhere to the guarantees, so the customer can derive benefits of these products. With government interven on and posi on in pu ng across these quality parameters and benchmarks and making sure that they are adhered to is very cri cal at the stage we are in the journey of solarising this country. To avoid bitter experiences for customers and keeping up the momentum …
Yes, we are at a stage where we have celebrated comple on of 5 GW of installa on and have a vision to take it to 100 GW by 2022. It is very important that we set the right parameters, right benchmarks and right examples for it to be replicated because it is going to see a very exponen al growth in the years to come. So it is very cri cal that in the ini al stage itself we put the right regula ons in place to ensure that the legacy which has been created in the country to bring about 100 GW capacity by the end of the term of this government. In the next 2-3 years, we have to set up 95 GW of capacity should be put on the right pla orm and at right quality to ensure that they run for about 25 years. Some regula ons have to be there, that is very cri cal. Indian manufacturers should be there to provide all these services.
TPS is committed to increasing efficiencies and bringing in cost effective technologies
But the Indian manufacturing industry is lagging in this sector. What measures are needed to beef up the solar manufacturing sector in India?
Somehow in the current sphere of things, the manner in which we are commi ng ourselves, on tariffs bars and on solarising programme, the manufacturing industry has not grown to the extent it should have. The government has taken many ini a ves like domes c content requirement (DCR) rules and somehow if you see, during the last one year, when compared to the projects that have happened, the manufacturing did not happen. While TPS is inves ng in terms of quality as well as commi ed to enhancing our produc on too, we are taking all the steps for the same. If you see during the last one year, there are no new manufacturing capaci es that we have come across for the modules, panels or even wafers within the country. I guess it is even cri cal that we have a holis c development and growth rather than one part of the whole programme. It will benefit the whole country in totality. Solar itself is very high poten al area for employment too and solar manufacturing in par cular. Thus, as part of the ini a ve of solarising, manufacturing should be equally encouraged. I am apprecia ve of the government ini a ves towards DCR per se, but apart from the DCR most of the projects/ commitments made are based on the products that are coming from outside the country. I think there is a holis c approach
required towards improving manufacturing, so that the industry can compete with the products coming from outside. There are a lot of things like modules, panels, supporting systems, inverters, batteries etc. How do you see the sunrise and sunset sectors emerging in the solar sector in the wake of Paris Summit?
Important factor is, like we say at Tatas, quality is that ma ers and it will be the cri cal differen ator. Highly efficient products will come in the front now. If we see the dynamics change from the large projects to say roo ops, you should have products which are suited for the roo ops, whether it is storage systems or structures. I am taking away panels part from the list though they also play a cri cal role. Restric ons of scale, safety as a parameter, we have to take me, space and shadows into considera on in the design part of it, and then come services and reliability of such services in terms of importance. That is where the difference between these and the large projects emerges. And if you are more efficient and a large player and a reliable service provider then you will have a sunrise industry, compared to those which are less efficient. The sunrise or sunset industry status depends more on the quality parameter and technology enhancement of the same product. There are new technologies coming in now with higher efficiency levels, which will also work as a differen ator. If you look into the past there were incremental changes that have not affected the industry to a large extent. I think quality and technology and service levels, as iden fied by TPS, will play a cri cal role in differen a ng between various sub-segments. Are there any other energy sources that can
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compete with solar technology breakthrough on an equal foo ng? in a very cost-effec ve I think what you say is way. There are right. Even though investments that are solar is nonhappening mostly exhaus ble and so targeted at increasing much we can gather the efficiencies of the as a source of energy products. Even in the For installing 100 GW of solar generation target, we need `2.5 lakh crore from sun light and TPS we are commi ed (about $46.5 billion) what we have been to increasing efficiencies doing currently, what will be more and bringing in cost-effec ve challenge, I am sure, on which the beneficial to it will be either hybrid technologies, we have also invested in government and PGCIL are working, systems and/or the cost-effec ve them. Currently, our products are at we have to see how effec ve it is as a storage systems that come with it, the global benchmark levels and solu on and how these are they will play a cri cal role. As we all measure up in terms of efficiency. implemented. We have not added so know, solar is an infirm source of There is a need to reduce the size of much of solar power to the grid so you power and to provide it for 24x7, equipment too, physically. At the same can see whether plans and reality of which is very cri cal that we have to me we have to ensure that the execu on has made any difference or couple it with some other system to country’s needs are met and the not. We as an organisa on are very make it a complete source of energy. investment in technology has to meet proud to say that we have the business needs as well as societal There have been various researches implemented/ installed the world’s needs. There are a lot of research which are taking place CFTR is also biggest roo op power project in India, projects that are happening close to suppor ng the cause of development but we s ll need some quality storage systems. There are other of cost-effec ve storage systems. That parameters for the residen al roo op, products which are coming up to drive will be a great trigger point for growth which are basic for providing a cost-effec ve solu on. Suppose, if as far as solar is concerned at least in solu ons. At the ini al stage, you you look at the distributed genera on/ distributed genera on segment. should not have examples that do not There are many places where wind roo op perspec ve, that it is very encourage others to take that kind of and solar were coupled together so cri cal that we op mize cost of those quality ini a ve. That would be the that wherein non-sunshine mes wind solu ons. That can come to various second factor and these two are the works and during sunshine mes solar products, that can come to a product most cri cal ones and the third one is, works to provide uninterrupted power which is very efficient. But if you are currently, for large projects as well as supply. That is also a potent bringing on these products that will roo op, for taking up large projects combina on in mes to come. And make the whole system in a costyou need investments. It is es mated also cri cal is to provide a solu on effec ve way at the consumer end, that for installing 100 GW of solar that is completely energy efficient. you will not call that a technology genera on target, we may need Currently, if you look at the way grid breakthrough but there a technology `2.5 lakh crore (about $46.5 billion), power is connected, the policy does involved in a way it is replicated which is three mes India’s Defence not provide you with energy efficient in such a way that there is no Budget. And we may need thousands house or an industrial establishment customisa on cost. And not only for of square kilometers of land acquired. the solar products, like for example (as a concept). There is a big need for These challenges are required to be cost of inverters, structures, cost of restric ng this par cular big energy overcome in order to achieve that servicing, providing solu ons etc. source to a loca on and clubbing it ambi on. The target is very aggressive, There are certain enhancements, with a big storage system to provide but it is definitely achievable. value proposi ons which we are also most effec ve energy solu on. inves ng in, so that the overall quality Solar technology-wise what is the products and services are provided to What are the constraints that have kind of R&D we have done, whether the customer. That is the cri cal way to be ironed out for clearing the way we are able to reach/adopt global that you look at technology, ensuring for achieving the government’s solar benchmarks in anyway - generally as efficiency of the panel and providing target of 100 GW? well as specific to your company? an ul mate solu on which is robust, There are two challenges to As far as improving the efficiency of u erly superior and cost-effec ve. achieving the target right now. First is technologies is concerned, yes, there TPS is doing a phenomenal job on all the investment in the grid. As I said is a rapid enhancement in these core ST these parameters. solar per se is an infirm power source, technologies, that is happening, but so stability is cri cal at the grid level they are more of incremental in - BS SRINIVASALU REDDY for large projects. That is the nature. And there is no major
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Advantage
I
mporters
Despite the hype and hoopla around solar power, there are a few hitches that are affecting its pace. Is the government listening?
T
he central government has set an ambi ous target of taking solar power installa ons to 100 GW (or 100,000 MW) by 2022, in the process of increasing the capacity of renewable energy sources to 40 per cent of the total genera ng capacity in the country by 2030. Though the government is taking several ini a ves to boost field-based solar capacity by se ng up mega solar projects, the cri cal roo op installa ons are s ll awai ng good mes. Right now it is like a blue ocean and the solar installers foresee a lot of opportunity in India, with the government pushing for the segment. And the country is facing peak power shortage, but for the inability of the power distribu on companies (discoms) to buy and provide power all through the day even as the genera on capaci es are available. About 300 million people in the country have no power connec on and about 400 million people are suffering from irregular power supply. Even the compe veness of solar power has also improved over the years. At present, there is parity that means the cost of solar power is almost equal to or less than that of the grid power. And it is also a clean power which is abundantly available in India. “Over the last 2 years, the demand has been almost constant. Some mes it was a bit higher or lower but with the government PPA prices coming down dras cally, it is at grid parity right now, we expect the demand for panels to go up from now on,” said Manish Surana, Execu ve Director, Surana Solar Limited, the company
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that began its opera ons in 2008. The government hype apart, the industry is facing several challenges on the ground.
Key challenges Though the last two years were not so good, there is an air of expecta on that many new projects that are coming up and good ini a ves like ‘Make in India’ programme by the
Indian government to promote domes c manufacturers, will yield good demand. The adop on and implementa on of solar is, by and large, very slow and it has to do a lot of catching up to do to fulfil the aspira ons of the country and people in the next five years. “Compared to the kind of hype that is happening about solar development (of crea ng 100 GW
capacity by 2022), the volumes are not matching up on the ground. May be things are moving at a MW-scale. But roo op and all are not happening at that pace,” said Randhir Singh, Director, Innova Solar Systems Pvt. Ltd. Innova is primarily into solar panel manufacturing ranging from 2 W to 300 W, basically used for street ligh ng and home ligh ng systems, in the form of solar-powered independent panels. “So, we believe it is a long journey and it is a combina on of crea ng awareness and making availability of solar products in rural areas, and affordability is an issue. They must get familiar with the technology, Singh added. Many industry players complain that there was no clarity on the subsidy offered for solar projects, announced as part of promo ng capaci es. “In India, we don’t have the type of financial support in terms of subsidised funding for the manufacturing unit or for the project investors, so that the solar industry could emerge in a bigger way. So, financial support is one challenge,” says Amal Nayak, head-sales & marke ng, Sova Power Ltd. “The issue of government subsidy is not clear. They (the government) announced subsidy, but when you want to take it, it is not available. It has a very cumbersome procedure,” said Singh said.
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feature challenges
Beware of non-tech people offering
solar installations - NR Khushalani, Vice-President, POLYCAB WIRES PVT. LTD What are the challenges that the industry is facing today? The important challenge is that the customer wants the best product at the most economical price. That goes without saying that it is a universal problem. The mentality needs to be changed or the people who are buying have to understand one thing. A lot of non technical people are entering this filed. This is a highly technical product. So, if your product fails, then what? You have bought it and the product failed? There are a lot of customers who come here, I have bought it, that has failed and you have to replace it. Replacing a product that costs about `15-20 lakh , is it a joke? So people need to understand that the person working in this industry should buy a technically qualified product.
Even there is a fear in the government circles as well that inferior products may flood the market, derailing the solar plans altogether. Many manufacturers could target the mindset of Indians that is eager to opt for cheaper products. In terms of cost (of installa on and produc on), there is a challenge for the installers or the Indian industry to match customer expecta ons in terms of quality and price. They want the good product at the lowest price.
So, they have to think in terms of lifetime costs and lifetime servicing etc… Exactly. There is a 25-year guarantee given by the EPC contractor and the product has to be good enough. If it has been imported then they might have put the best in it, is the kind of thinking that exists. Our competitor is Delta, their products are imported. So people think that they can immediately buy it. But what happens when a problem arises? People realise only when the problem arises. Servicing is an important aspect of this business. Just now we have discussed about the pricing … On pricing, we are very competitive to ensure that we get a good entry. The brand is there, but still we have to be competitive, otherwise people will think that even if it is a brand ,how does it matter to me. We have to compete with the existing players like SMA and Delta. We are already into cables, all EPC contractors use them, So, we know the market to a great extent. But, I have to establish myself and prove myself with my technology. There should at least five companies of your size in the market, then only we can expect some R&D efforts taking place … We are thinking in that direction, to set up a facility. What are you doing and what are the products you have? We have recently started the solar division, which is mainly focusing on grid type inverters, hybrid inverters, bi-directional inverters, solar water heaters and solar pumping systems. We are also offering consultancy for EPC projects and rooftop solar system integration. We are taking up solar projects from 1 MW to 5 MW, we will be doing our own EPC contracting. That way you are already into cables, which is a household name… We are the biggest in Asia in terms of wires and cables. Our annual turnover is Rs 5,300 crore. Entering into solar, we are hoping to become the second biggest in the country. Because we already have fan and lighting divisions, which have been started recently. But I am hopeful that this division will be superseding them. (For full interview, log on to www.SolarToday.co.in)
Solar power-dok
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“But, considering quality of these products, we must be careful about the performance. A solar power plant has life cycle of 25 years, and there is no guarantee on how long those imported products will run over this period. So, going only by cost is a dangerous prospect and an unwise decision, which can affect the future of the solar industry in our country,” says Nayak.
Advantage importer There are no specific ini a ves to promote manufacturing of solar plant components in India, except the broader umbrella of ‘Make in India’. That is encouraging many installers and companies to import the panels and other machinery from other countries. And with most of the technology lying with a few companies, most of those companies are impor ng their wares for installa on. “Whenever the projects are under ‘Open’ category, people there import modules from countries that give their manufacturers some advantages and support. This allows them to sell their products at a very low and compe ve price, compared to Indian manufacturers, says Nayak. Manish Surana affirms this argument, when he says, “I think, lots of products available in India are imported from China and Malaysia. Since these companies are very large, it is very hard to compete with them. Other countries like the Europe and the US, have imposed an -dumping tariffs on them. But in India, they have not done anything like that.” Even the Indian import-export policy is lted in favour of project importers, blocking any leeway available to the Indian component manufacturers. “Another problem is differen al taxa on that works against Indian manufacturers. “In fact, when we buy these spares individually some of them are taxable, whereas if you import panels as a whole, there is no tax on it. There is a possibility for
70% demand in India catered to by
imported panels - Manish Surana, Executive Director, SURANA SOLAR LIMITED That is panels are mostly imported. That way do you think the panel manufacturing is in the unorganised sector or organised one? Local manufacturing, as I see it, is still in the unorganised in nature. Around 70 per cent of the demand in India is catered to by imported panels. And it is very hard for the local manufacturers to compete with other countries, because they (manufacturers overseas) are getting finance at a very low cost and earning a lot of subsidies from their governments, that is the main reason. What are the emerging technologies and which are the countries or companies we are dependent on for R&D? Solar panels and cells are in general are improving their efficiency by around one per cent a year. The top five global manufacturers are the people who are doing research and development (R&D) rather tying up with universities. In India R&D is hardly anything . Even if there is any, they are not spending any significant amount on them. How is the pricing and production costs work out for solar installations? The production cost are more or less constant (over the last 2 years). Panel costs are moving up or down by 5 per cent but they are more or less constant. But the govert PPA and reverse bidding costs they have come down drastically like last tender was for Rs 4.63. It has reached the grid parity and it is good for solar panels but it has become very tough on the EPC sites to compete with these companies which are quoting these low prices. Is there any impact of slowdown of the world economy on companies like you in India? I don’t really see much of an impact. Solar is growing faster now, India is one of the fastest three markets in the world in solar today. I think solar industry is unaffected. Installation work is going on everywhere, but do you think skilled manpower required for servicing is available or is there any shortage across the country? Solar as a sector is very new and like a sunrise industry. There is a shortage in number as well as skill sets required. But the emergence of MNCs on the scene and training people here or bringing in their own people is expected to bridge this gap very soon. Transfer of skill sets by Europe and China on to India is set to take place. Europe and the US have high anti-dumping duties. India has only a small domestic component requirement (DCR), they can export or sell in India, most of the MNCs are interested in the Indian market today. What was the demand scenario for solar equipment over the last two years and how do you see this panning out in the next two years? Over the last 2 years, the demand has been almost constant. Some times it was a bit higher or lower but with the government PPA prices coming down drastically, it is at grid parity right now, we expect the demand for panels to go up from now on. (For full interview, log on to www.SolarToday.co.in)
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feature challenges
No certification requirement set
for integrators - Randhir Singh, Director, INNOVA SOLAR SYSTEMS PVT. LTD What are the challenges facing the industry? Compared to the kind of hype that is happening about solar development (of 100 MW capacity), the volumes are not matching up on the field. May be things are moving on MW scale, but rooftop and all are not happening at that pace. The adoption and implementation is very slow. Even the issue of government subsidy is not clear. They announced subsidy, but when you want to take it, it is not available. It has a very cumbersome procedure. Basically these are the issues. So we believe it is a long journey and it is a combination of creating awareness and making availability of solar products in rural areas, and affordability is an issue. They must get familiar with the technology. There is no financing available for setting up the plant. If you want to buy a car there is finance available. but not for setting up a solar plant, though rooftop plant has been included in the priority sector list. Another thing is that anybody can become a system integrator, there is no minimum qualification, no standards set etc. Tomorrow if some tom, dick and harry wants to become a systems integrator, he can become, there is no certification specified or guidelines in this regard. When we went to the field, we had noticed a lot of systems inappropriately installed. Who is to be blamed for the same? That will bring bad name for the industry. And even people are least bothered about quality. This is a new field, but they do not want to verify the antecedents of the person offering services. They are going for the cheapest and not the smartest. That is not the right way of buying it. Is there any R&D for solar products in India, or we have to depend totally on outsiders? If you take solar panels, some research and development (R&D) is being done by the companies at their end, the same is the case with inverters. EPC contractors do not do any R&D. They will go by the specification given by the manufacturer and then they integrate the system and hand it over to the customer. If we have to look into emerging technologies, do we have to look at global level … Basically, we have to look at global level only, not much is happening here. If you see on-grade/standard technologies, they are with a few global companies. Even the big companies are unable replicate the technology elsewhere. Once we take a contract, it is an end-to-end solution. Like we provide them the technology, we do the installation, testing, commissioning and hand over the project to the customer and train them too. In this technology for rooftop projects, there is no need for annual servicing. These projects are already under guarantee and warranty, like for inverters there is five years warranty, even for panels, the manufacturer is giving five to ten years of warranty and 25 years of generation warranty. As such, everything is covered under these warranties. And as a system integrator, we also give a five years warranty, if something goes wrong we are there to replace the plant. A little bit of flexibility is there in that. These are specified by MNRE under their guidelines. (For full interview, log on to www.SolarToday.co.in)
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bringing in slightly inferior products. Because India is not so strict in ensuring what is being imported into the country,” Manish argues. Nayak cites lack of common taxa on structure across the country as one of the major impediments for segment’s growth. “Some states have tax benefits, while others don’t and this results in an uneven playing field.” Despite the government announcing ambi ous targets for solar development and bringing the sector under the priority sector lending category of the banks, banks are not eager to fund these projects. “There is no financing available for se ng up the plant. When it comes to buying a car, banks are eager to lend, but not for se ng up a roo op solar plant, which saves money for the beneficiary for the next 25 years,” Singh points out.
Certification Another thing is that anybody can become a system integrator, there is no minimum qualifica on or no set standards for integrators. “A lot of non technical people are entering this filed. This is a highly technical product. So, if your product fails, then what,” said NR Khushalani, Vice-President, Polycab Wires Pvt. Ltd. “Tomorrow if some tom, dick and harry wants to become a systems integrator, he can become, there is no cer fica on specified or guidelines in this regard. When we went to the field, we had no ced a lot of systems inappropriately installed. Who is to be blamed for the same?” asks Singh. When the industry is at a nascent stage this kind of bi er experiences for customers would affect the long term interests of the industry. Even people are least bothered about quality, though it is a new field, and verify the antecedents of the person offering services. They are going for
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the cheapest and not the smartest. That is not the right way of buying it, explains singh. Nayak has an advice for the benefit of the customer and for the ul mate benefit of the industry. The industry had many discussions with the Ministry of New and Renewable Energy (MNRE), regarding a standard or guideline for the common people, wherein the specifica ons and benchmark floor price should also be set. “This will allow customers data with a comparison on quality as well as cost, based on which they can choose from various vendors, suppliers and manufacturers. So, MNRE should have some database, either online or on paper, so that people get the informa on (specifica on, capacity, floor price etc.). Otherwise, the customers are misguided and it is not good for the industry in the long run.”
New technologies India has to embark on a long and chequered journey in solar power development as it is not wel entrenched in research and development (R&D) in the sector. While the technology is available with a handful of companies globally, Indian companies are just now star ng research into possible incremental improvements. Solar panels and cells are in general are improving their efficiency by around one per cent a year. “If you see on-grade/standard technologies, they are with a few global companies. Even the big Indian companies are unable replicate the technology elsewhere,” says Singh of Sova, which offers an end-to-end solu on in roo op solar. “In India R&D is hardly anything. Even if there is any, they are not spending any significant amount on them,” Says Surana. ST - BS SRINIVASALU REDDY
Lack of
common taxation
structure hitting us - Amal Kr. Nayak, Head-Sales & Marketing, SOVA POWER LTD What are the challenges you face? In India, we don’t have the type of financial support in terms of subsidised funding for the manufacturing unit or for the project investors, so that the solar industry could emerge in a bigger way. So, financial support is one challenge. Another challenge is that we do not have a common taxation structure across the country and as such some states have tax benefits, while others don’t and this results in an uneven playing field. In terms of cost (installation and production), there is a challenge for us to match customer expectations in terms of quality and price. The thing is that, whenever the projects are under Open category, people there import modules from countries that give their manufacturers some advantages and support. This allows them to sell their products at a very low and competitive price, compared to Indian manufacturers. So, from customer’s point of view, they want the good product at the lowest price available. But, considering quality of these products, we must be careful about the performance. A solar power plant has life cycle of 25 years, and there is no guarantee on how long those imported products will run over this period. So, going only by cost is a dangerous prospect and an unwise decision, which can affect the future of the solar industry in our country. Thus, the comparison should be between the product quality and the output from it. So, what would be the best way for a customer to choose wisely? There have been many discussions with the Ministry of New and Renewable Energy (MNRE), regarding a standard or guideline for the common people, wherein the specifications and benchmark floor price should also be set. This will allow customers data with a comparison on quality as well as cost, based on which they can choose from various vendors, suppliers and manufacturers. So, MNRE should have some database, either online or on paper, so that people get the information (specification, capacity, floor price etc.). Otherwise the customers are misguided and it is not good for the industry. What is your focus on R&D? In our company we have an expert team in R&D, so they conduct R&D daily, on the basis of international inputs. They are deployed for R&D jobs so that we can deliver good products at cost effective prices. Talking about the country, I’m sure that our government as well as the leading manufacturers are always serious and very much concerned about the development in quality and R&D. The development is happening right now globally and it is very essential for us to adopt all these new technologies and developments, so that we can keep up with and match their products. What are your plans for expansion? We are planning for expansion and to do business in the export markets. We have our own set up and team for exports in the Export Division, who will take care of the demand and expectations from the global market. We hope that in the future we will have good business opportunities in export. (For full interview, log on to www.SolarToday.co.in)
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photo feature interSolar 2015
India’s Largest 3-day Exhibition & Conference on Solar Industry was held at the Bombay Exhibition Centre (BEC) in Mumbai from November 18-20, 2015.
I
ntersolar India is the country’s largest exhibi on and conference for the solar industry. It takes place annually at the BEC in Mumbai. The event’s exhibi on and conference both focus on the areas of photovoltaics, PV produc on technologies, energy storage systems and solar thermal technologies. Since being founded, Intersolar has become the most important industry pla orm for manufacturers, suppliers, distributors, service providers and partners in the global solar industry. In
100 GW for solar power capacity by 2022. Close on the heels of the government’s thrust to renewable energy sources, demand for photovoltaics used in solar panels, solar panels, ba eries and energy storage systems and solar thermal technologies have gained the centre stage in power sector conversa ons. Photovoltaics (PV): Is the direct conversion of light into electricity at the atomic level. Some materials exhibit a property known as the photoelectric effect that causes
deployment is hindered by produc on costs, material availability, and toxicity. Life cycle assessment is one method of determining environmental impacts from PV. Many studies have been done on the various types of PV including first genera on, second genera on, and third genera on. Energy storage systems (ESS): Ba eries and EES are the means through which expansion of decentralised and microgrid-based power systems can be revolu onised in the next seven years and providing
2014, 160 interna onal exhibitors and around 9,000 visitors a ended the event. In total, 85 dis nguished speakers and 500 a endees discussed current industry topics and shed light on the condi ons surrounding technological, market and poli cal developments at the accompanying conference.
them to absorb photons of light and release electrons.Power genera on from solar PV has long been seen as a clean sustainable energy technology which draws upon the planet’s most plen ful and widely distributed renewable energy source – the sun. PV produc on technologies: While solar PV cells are promising for clean energy produc on, their
electricity to the nearly 54,000 un-electrified villages, represen ng over 300 million people. Solar thermal technologies (STE): Is a form of energy and a technology for harnessing solar energy to generate thermal energy or electrical energy for use in industry, and in the residen al and commercial sectors, to heat water or other fluids, and can also power solar cooling systems.
Subjects of Focus The government has set a target of
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www.SolarToday.co.in
SmartTrak initiated a remarkable step towards Business Development in InterSolar Exhibition, to reveal the advantage of tracking solution and its new launched product Microinverter. Thakkarsons booth at the InterSolar Exhibition
2015
Vikram Solar booth at the InterSolar Exhibition
Madhav Corp booth at the InterSolar Exhibition January-Februar 2016 SOLAR
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photo feature interSolar 2015
Polycab booth at the InterSolar Exhibition
Semikron booth at the InterSolar Exhibition
Hitachi Solar Inverters – Highly Optimized Energy Conversion
Booth party at Waaree Energies stall – Celebrating announcement of partnership with Huawei
Agarwal Group booth at the InterSolar Exhibition
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www.ConstructionWorld.in www.SolarToday.co.in
Vema Solar booth at the InterSolar Exhibition
Jurichen Technology Stall at Intersolar 2015.
Aditya Clean Solar booth at the InterSolar Exhibition
MNRE Joint Secretary Tarun Kapoor at the Sova Power Ltd booth at the InterSolar Exhibition
ST - JOCELYN FERNANDES January-Februar 2016 SOLAR
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expert speak
storage
Advanced
Technologies The Indo-US Joint Clean Energy Research and Development Centre has triggered several R&D initiatives in public and private sector, which is set to drive the Indian market.
S
ince the discovery of electricity, we have sought effec ve methods to store that energy for use on demand. Over the last century, the energy storage industry has con nued to evolve and adopt to changing energy requirements and advances in technology. The field of energy storage is a very broad and diverse in the sense that it consists of mul ple en rely different technologies, each with its own
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technical forte and challenges. Although all the ba eries fulfil the same general purpose of reversibly storing electrical energy, the different types of ba eries are very different at the basic level; materials, cell design, fabrica on process and finally performance characteris cs. Moreover, there are several independent metrics for characterising the performance which include cycle life, energy density, c-rate capability,
self-discharge, roundtrip energy efficiency and so on. Energy storage technologies can be grouped as electrochemical and non-electrochemical technologies. The most common energy storage technologies are:
Electrochemical energy storage • Lead Acid ba ery • Lithium Ion (Li-ion) ba ery • Lithium Iron Phosphate (LFP)
www.SolarToday.co.in www.SolarToday.co.in COMMUNICATION NETWORK
CONSUMERS SYSTEM DISPATCH
• Lithium Cobalt (LCO) • Lithium Manganese Oxide (LMO)
GENERATION
Lithium Nickel Manganese Colbalt Oxide (NMC) • Lithium Titanate (LTO) • Sodium-Sulfur ba ery (NaS) • Sodium Ion ba eries • Sodium Nickel Chloride (NaNiCl2) ba eries
TRANSMISSION
DISTRIBUTION
Flow Batteries • Vanadium Redox ba ery (VRB) • Zinc Bromine ba ery (ZnBr) • Iron Chrome ba ery • Nickel Cadmium (NiCd) ba ery • Nickel Metal Hydride (NiMh) ba ery
Non-Electrochemical energy storage • Pumped Hydroelectric (PHS) • Compressed Air Energy Storage (CAES) • Flywheel • Ultra-Capacitor • Superconduc ng Magne c Energy Storage (SMES) The technology, size and dura on of energy storage need to be carefully selected. Different applica ons require different kinds of energy storage technologies. Energy storage could also be op mised to take advantage of mul ple revenue streams. For example, energy storage used to avoid revenue lost due to transmission curtailment can also be used to reduce forecast errors during low wind season.
Indian Electricity Market India is undergoing an energy revolu on in adop ng clean energy and advanced technologies in the electricity market. Today, India is one of the fastest growing economies in the world, with current electricity peak load of ~150 GW to meet the needs of over 1.25 Billion popula on. The current government has set goals of providing 24/7 energy access to
Energy Storage systems can play a key role in every part of the modern grid in India.
every ci zen by 2019. Also the lack of reliable and quality power supply is a major impediment for accelera ng development of the manufacturing sector in India under the Government’s Make in India ini a ve. Consumers bear a large burden due to poor quality and unreliable power supply. Industries maintain diesel powered generators and households have inverters with ba eries as backup for unscheduled power cuts, low voltages or variable frequency. With the recent announcement from Ministry of New and Renewable Energy (MNRE) about Expression of Interest for Energy Storage projects to support renewable integra on, there is a tremendous excitement about India’s proposed Energy Storage Mission. Energy storage technologies are gaining recogni on from the Indian policy makers as one of the key enablers for smart ci es, renewable integra on, electric vehicles and energy access. Effec ve energy storage solu ons have the ability to meet grid level challenges and enhance deployment of RE technologies. Energy storage can act as a capacity in the en re energy value chain (genera on, transmission, distribu on and loads).
Energy storage, Need of the hour Energy Storage systems can play a
key role in every part of the modern grid in India as envisioned by the Government of India: • India is looking for rapid adop on of clean energy technologies with an cipated addi on of over 60 GW of wind capacity and 100 GW of solar capacity by 2022. • India has various ini a ves for providing energy access through microgrids for the 400 million people without access to reliable grid electricity. • The government is looking at transforming 100 ci es into smart ci es in the coming decade where energy storage technologies can serve as a backbone for be er power quality and reliability desired by consumers. • Indian regulators are looking to introduce ancillary services as well as scheduling of renewable resources that would help in increasing renewable penetra on in the grid. • India is looking at an ambi ous Electric transporta on program (Na onal electric Mobility Mission Plan-2020) with a goal of over 15-17 Million EV/ HEVs by 2020 to reduce oil import bills. • Recently, the government launched Na onal Smart Grid Mission (NSGM) with an outlay `980 crore under 12th Plan and with a
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expert speak storage budgetary support of `338 crore. Energy Storage is one of the key enabler for grid modernisa on.
Energy storage adaptations India has recently grabbed global a en on through early adoptors such as Reliance Jio, who has purchased Li-Ion ba eries worth $300 M for the new 4G telecom towers and Sun Edison that has just recently announced plans to deploy over 1000 flow ba eries from Imergy Power for microgrids in India. Power Grid Corpora on of India Ltd. has successfully conducted RFPs for selec ng 3 different storage technologies of 500 KW for ancillary service demonstra on project. Recently ACME successfully installed a 270 Kwh of Lithium Ion ba ery in its building to reduce diesel consump on in Gurgaon, India. Surprisingly, India has more than 3 lakhs of e-rickshaws on the road in various ci es like Delhi, Lucknow, Kolkata and many other er 2 and 3 ci es in India. A few car companies like Toyota, Mahindra and Maru are launching various electric cars in Indian market and the sales growth is also encouraging over the period. Commercial and industrial consumer are the next consumer segment to adopt energy storage systems on a large scale. To avoid power cuts, to meet peak loads and to gain arbitrage advantage over ToD tariff difference, C&I segment is installing advanced energy storage technologies in their premises.
Components of a Distributed Energy Resources (DER) System
(Solar and Wind) by the year 2022, the government is taking all steps to boost this market. In addi on, under the FAME India ini a ve (Na onal Electric Mobility Mission Plan), the government has set up a target of achieving over 15-16 million electric vehicles on the road by the year 2020. Interes ngly, the bo lenecks for large scale incorpora on of renewables genera on and electric vehicles is the same. It is energy storage or as we all know it; ba eries. U li es do not have control on whether the sun shines or the wind blows and hence it has been difficult to fully incorporate solar and wind power seamlessly into the electricity grid. Addressing the inherent intermi ency of renewable resources is a key enabling factor for large scale
Technology innovation only can boost market Currently, India accounts for 4 GW+ solar energy and 23 GW+ of installed wind genera on. With a target of 160 GW of installed renewables Capital Cost Trend for Various Technologies
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adop on. Several energy storage technologies are currently available and con nuous developments in this field are bringing us closer to the overall objec ve of providing clean and sustainable energy for all. For electric vehicles, having ba eries with long cycle life, light weight and appropriate safety characteris cs can bring electric vehicles within the reach of the common man. Of course, it will need support from the appropriate agencies and government bodies for developing the required ecosystem and charging infrastructure. As of now, the lead acid ba ery accounts for more than 90% of the Indian energy storage market. However, advanced technologies like li-ion, flow ba eries (Vanadium Redox, zinc bromine) and sodium sulphur are also entering this market with a few pilot projects and in limited segments. India Energy storage Alliance (IESA) is playing the role of providing a na onal pla orm where various key stakeholders can come together in realising the required growth for achieving the aggressive targets laid down by the
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Photo Courtesy: Bosch
government. Price reduc on of energy storage technologies will play a key role in promo ng their widespread use on the grid scale. Such price reduc on can be achieved through innova ons in materials processing techniques, manufacturing methods, as well as improvements in performance characteris cs (such as cycle life, calendar life, energy density). Such improvements can bring about a reduc on in the levelised cost of the system and similar trends have been observed in the last two decades in renewables such as solar and wind power. In next 12-18 months, we are going to see introduc on of range of new technologies that can operate for 10,000+ cycles as compared to 500-1000 cycles currently possible through lead acid ba eries. This can result in drama c reduc on in the cost of ownership as well as open up new applica ons for use of storage.
The Way Forward: Capital Cost Trend for Various Technologies Large investments from various organisa ons like ARPA-E and DOE (US) has been pouring in to bring innova ve solu ons to the market. India is also not far behind. Recently, U.S.-India Partnership to Advance Clean Energy (PACE) programme expanded to include a new track on smart grids and energy storage under the the Indo-US Joint Clean Energy Research and Development Centre. Many private companies are se ng up their own innova on centers and Incuba on center to facilitate innovators to work and bring changes in this space. Several companies are also working in the field of improving the BMS, charge controller systems, monitoring so ware and ba ery recycling to advance this overall ecosystem.
India Energy Storage Alliance (IESA) es mated that India’s ESS market poten al will be 50 GW by 2022. We also believe that India has the poten al of not only becoming the one of the largest markets for advanced storage technologies, but also a key player in the global supply chain through localisa on and innova on in the energy storage field. Mee ng between the Indian PM, Modi and Elon Musk’s mee ng and discussion on Tesla’s Power wall is buzzing around the web. Recently, Elon musk also tweeted that Tesla might open a manufacturing plant in India seeing a huge demand for ba eries in this sub-con nent. India already boasts a very vibrant lead acid ba ery manufacturing industry with global leaders such as Exide and Amara Raja supplying lead
acid ba eries to over 35 countries around the globe. MNRE is currently working on a policy framework on storage and has created a standing commi ee on energy storage and hybrid system. Ministry of Heavy Industries is working on the Na onal Energy Storage Mission and Energy Storage roadmap. With this right policy support, Indian industry and research community have the poten al to deliver solu ons that will not only address the challenges faced by consumers in India, but also become a global hub for advanced energy storage solu ons by 2020. ST About the Author: Debi Prasad Dash, Manager, India Energy storage Alliance (IESA), Analyst, Emerging Technologies, Customized Energy Solutions
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feature smart art grid
www.SolarToday www.SolarToday.co.in
r ead fo d h a y wa an is the egrate as d t i r n i G o t t tor Smar we want er sec and f w i o , p a i Ind our ans lidate nment’s pl ncy of o s n o c ie er ll effic e gov per th e the overa em. v st impro ribution sy t s the di
G
rid
locked! S
mart Grid is an evolving set of various informa on and communica on technologies working together to improve the present grid. Its applica on depends on the loca on and requirements. A Smart Grid is thus an electricity network that can intelligently integrate the ac ons of all users connected to it – generators, consumers and those that do both – in order to efficiently deliver sustainable, economic and secure electricity supplies. Smart grids are targeted to make the
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feature smart grid
QUICK FACTS
The key is to
anticipate the value creation
creation potential
of smart grid - Kannan Tinnium, Technology Leader, Electrical Technologies & Systems, GE Global Research Center, JOHN F. WELCH TECHNOLOGY CENTER, BANGALORE What are the growth opportunities for smart grid players in India? First it is important to understand what smart grid really means. At GE, smart grid spans the entire power grid all the way from generation, transmission, distribution and demand. With the rapid technology development in the areas of communication and software, there is an opportunity to make the grid smarter and get more out of the existing grid in terms of improved reliability and efficiency, embracing renewables and reduced emissions. This is how we define as smart grid. India provides a wide range of opportunities for smart grid players and the growth is expected at a fast pace. This ranges right from generation and T&D to the end users. On the generation side, with the ambitious plan to have 175 GW of renewables in India by 2022, there is a tremendous opportunity for smart grid players to make an impact. Developing technologies by which the grid can handle this level of penetration by managing the intermittency of power will become very critical. On the transmission side, technologies that can help power system operators with the situational awareness of the grid, i.e., how much margin we have in the grid before experiencing problems, would be vital. Distribution sector is probably seen to be the highest growing sector. Given India’s needs to improve AT&C losses, and the government focus in enabling this, along with increasing penetration of solar energy makes distribution the key growth area. Besides, India has a huge rural population that have limited or no access to electricity. There is a great opportunity for microgrids here. Inherently, transformation of such a complex and large scale system, with the technical and regulatory ramifications will happen in a phased manner. The key is to anticipate the value creation potential of smart grid technologies in tomorrow’s grid, and to develop technology that can be adopted by the key players. How will smart grids enhance the quality of power? Smart grids are targeted to make the power grids efficient, reliable and ecofriendly. All these three elements drive the benefits to the common population. Lower grid interruptions, notifications about outages and power restorations, reduced emissions are some of the benefits that could be directly felt by the common population. Generation portfolio that includes significant renewable sources such as wind and solar will help mitigate pollution and will bring about ancillary benefits to the populace. Improvements in distribution system monitoring, made possible by smart grid technologies, will enable better load management and faster response to supply outages. In addition to conventional grids, smart grid technologies, particularly micro-grid solutions, can be leveraged to meet remote the needs of remote and isolated locations. (For full interview, log on to www.SolarToday.co.in)
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India’s energy demand is expected to increase 3 times in the coming 10 years, out of which 2/3rd would be carried by the grid, this needs a major revamp of the aging electricity system Union Ministry of Power (MoP) has lagged off 14 pilots on smart grid identi ied by ISGTF, of which one pilot project in Mysore is already awarded, remaining are to be tendered The projects will receive fund under the R-APDRP and a matching inancial support from the states. Government has proposed to invest around $86.4 billion to upgrade the present electricity system in the 12th Five Year Plan
power grids efficient, reliable and eco-friendly. All these three elements drive the benefits to the common popula on. Lower grid interrup ons, no fica ons about outages and power restora ons, reduced emissions are some of the benefits that could be directly felt by the common popula on. Genera on por olio that includes significant renewable sources such as wind and solar will help mi gate pollu on and will bring about ancillary benefits to the populace. Smart grid technologies will be necessary to meet the challenges that such a shi in genera on mix will bring in terms of grid opera on. Improvements in distribu on system monitoring, made possible by smart grid technologies, will enable be er load management and faster response to supply outages. The impact of smart grid in such scenarios is in the form improved reliability and quality of supply. In addi on to conven onal grids, smart grid technologies, par cularly microgrid solu ons, can be leveraged to meet remote the needs of remote and isolated loca ons. The Union Ministry of Power (MoP) has flagged off 14 pilots on smart grid that they want to mobilise through tried and tested methods. Of the 14 pilots, one is already
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awarded in Mysore, and others are on their way. “The pilots have all the func onali es of the smart grid star ng from renewable integra on to demand side management, peak load reduc on and power quality. So, the present government has started ini a ves on smart grids,” informs Anil Kadam, Associate General Manager, Schneider Electric. The pilot project inter-alia - Bratin Roy, VP – Industry Services, covers various a ributes of TÜV SÜD SOUTH ASIA smart grid with enabling provision for other ci zen services city infrastructures in a holis c manner. What are the growth opportunities for smart grid players in the India? They enable demonstra on of technology Environment-friendly, efficient and extremely flexible–smart grids are poised to efficiency, policy advocacy, establishment of be the future of energy supply in India. Instead of purchasing power from a handful interoperability standards etc. which can be of centralised suppliers, consumers can also feed electricity into the public grid–e.g., scalable and replicable at other places. from solar power systems or co-generation units. Both these small power generation units owned by power consumers and large-scale plants increase the share of volatile energy sources. This is where smart grid helps curb the gap in supply and demand. Smart Grid in India Smart grids in India is expected to solve a certain set of problems and this How will smart grids enhance the quality of power? implementa on varies from country to Improved efficiency and reliability are two of the key benefits from smart grid. As country, for e.g. in the US it has to solve the the grid becomes more intelligent and smart, it will automatically self assess its problem of blackouts, aging workforce, aging reliability during changing circumstances and adopt accordingly. This enhanced infrastructure; whereas in developing and improved functionality will result in greater reliability and subsequently economies like Brazil and India, who have improve power quality, with fewer power cut and shortage especially during peak common problems, smart grid is expected to time, for consumers–both commercial and the masses. solve the peak hour crunches. “Smart grid can push a consumer to be Would smart grids help in stabilising RE which depend on weather conditions? more energy efficient, and help him know One of the prime essence of a smart grid is to seamlessly interconnect different how he can do more by using less of the fuel cells, renewable sources, micro turbines and other distributed-generation system planet’s resources. Also, renewable energy at all levels. This includes advancement in dealing with principle challenges of which is intermi ed due to the natural bi-directional power flow on distribution systems, along with support of innovations condi ons it relies on can also be duly related to energy storage. All of these innovations will enhance in stabilising monitored. This especially plays a huge role in renewable energy fluctuations even in different weather conditions. projects that have a hybrid or ba ery storage reliant renewables systems. Thus, in India Is the smart grid employed for RE vastly different? smart grid has definitely a very good A smart grid provides power utilities with digital intelligence to the power opportunity,” adds Kadam. system network. Smart grid is often called as “energy internet”. The technology Kadam also believes that smart grid can employed while using smart grids with renewable energy are not different than usual benefit the common people, “what is technology. It comes with smart metering techniques, digital sensors, and intelligent happening today is that power is being control systems with analytical tools, which enable the two-way flow of energy from supplied to mul ple customers, but the power to plug to be automated, monitored and controlled quality of power in terms of voltage and most importantly reliability is not very well Can smart grid be applied to micro-grids? How would this work? monitored or controlled. Smart grid will Traditionally, integration of small-scale or micro grid renewable energy sources fundamentally bring in the monitoring part into a regular grid causes glitches. These include voltage fluctuations and harmonic and there could be backing changes, which distortions, which require synchronisation of the sources with the grid. Smart grid, could be brought into the system to improve on the other hand, optimises these problems by preventing outages and allowing the quality of the power.” consumers to manage energy usage. This technology enables various options to add Adds Vinod Kala, MD - Emergent Ventures energy to the grid at T&D levels through distributed generation and storage. India, “the technology focus will be on Hence, smart grid technology can be most suitably applied here.
Smart grid
can help curb the gap in
supply and demand
(For full interview, log on to www.SolarToday.co.in) January-February 2016 SOLAR
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feature smart grid
upgrada on of grids to accommodate renewable energy power produc on. The current grid need to be upgraded and opera ons to be made IT enabled to ensure that the grid is able to easily withstand the power genera on fluctua ons associated with the renewable energy sources.” “Power storage is a new interven on that is planned to fluctua ng power - Vinod Kala, Managing Director, manage genera on and power pricing EMERGENT VENTURES INDIA that need to be introduced. Further, to promote power genera on at the consumer end (which What are the growth opportunities for smart grid players in India? necessarily has to be renewable) In some Indian states total grid losses are as high as 50 per cent. The utilities are smart meters will have to be installed,” in need of major reforms. Apart from opportunities including integrating and Kala explains. managing renewable component of power in the grid, there are opportunities Besides this, smart grids can also play an around increasing cost efficiencies (TOD pricing) and effectively managing integral part in microgrids, feels Kala, consumers’ varying power requirements. Last year, the government announced Rs “Smart grid can help promote micro-grids. 400 crore funding for smart metering programs, in addition to over Rs 800 crore for With IT enabled solu ons, and robust grid loss reduction programs and other utility reforms. In addition to smart metering, infrastructure, micro-power generators can other focus areas include distribution automation, wide area measurement, and IT be linked to consumers without savvy home energy management. compromising on the quality of services.” Storage facili es can help store power How is smart grid likely to enhance the quality of power? during peak genera ons, whereas IT In order to enhance quality of power, the smart grid mission for India has been enabled opera ons can help connect designed envisaging the following key objectives: reaching to 100 per cent of the diverse RE projects to the grid, thus households in near future through grid and micro grid; reducing the transmission par ally offse ng the power genera on losses in the distribution system; dynamic pricing to be introduced; development uncertain es. Most importantly, using and deployment; the grid system is to be enhanced to ensure evacuation and dynamic pricing approach, power demand integration of renewable power. The common population will benefit through: supply mismatches can be managed. access to and quality of power will improve; more efficient grid will result in the reduced power bills; in dynamic pricing scenario, households will be able to adjust their power consumption timings to economise on their power bills; with multiple Technology Expansion distribution companies in the market, the consumers will have the choice to switch A smart grid provides power u li es to ‘better’ service provider; smart grid will facilitate households decision to invest in with digital intelligence to the power RE and net metering will facilitate this decision. system network. Smart grid is o en called as “energy internet”. The technology employed while using smart grids with Could smart grids help stabilise RE fluctuations? renewable energy are not different than As highlighted in the question, the grid when linked to renewable energy may usual technology. It comes with smart suffer from supply fluctuations due to the unpredictable weather conditions. A smart metering techniques, digital sensors, and grid can help in stabilising renewable energy fluctuations: intelligent control systems with analy cal Demand side options: Dynamic pricing will help stabilise power demand during tools which enable the two-way flow of hours of low production and IT enabled two-way communication (between power energy from power to plug to be producer and consumer) will facilitate this; supply side options: Encouraging automated, monitored and controlled. millions of renewable power generation points spread across the country, the grid Points out Bra n Roy, VP – Industry will help normalise the power generation from renewable energy sources. Services, TÜV SÜD South Asia, “One of the With power storage options available, enough electricity backup could be prime essence of a smart grid is to developed to mitigate generation fluctuations. Smart grid could help achieve local seamlessly interconnect different fuel cells, and regional demand-supply optimisation; local power generation facilities can be renewable sources, micro turbines and activated and dispatched to the grid when the RE supplies are low. IT-based grid other distributed-genera on system at all management will help optimise on the power generation by managing diverse and levels. This includes advancement in ‘flexible’ power generation facilities of the country.
States will play a key
role in successful implementation
creation potential
of smart grid
(For full interview, log on to www.SolarToday.co.in)
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SOLAR January-February 2016
www.SolarToday.co.in
dealing with principle challenges of bi-direc onal power flow on distribu on systems, along with support of innova ons related to energy storage. All of these innova ons will enhance in stabilising renewable energy fluctua ons even in different weather condi ons.” “India is aggressively venturing into renewable energy resources like wind and solar. With such unpredictable energy - Anil Kadam, Associate General Manager, sources feeding the grid, it is SCHNEIDER ELECTRIC necessary to have a grid that is highly adap ve (both in terms of supply and demand). A good electric supply is What do you think about the government initiatives on the smart grid front? one of the key infrastructure requirements to The Ministry of Power has flagged off 14 pilots on smart grid that they want to support overall development; hence, the mobilise through tried and tested methods. Of the 14 pilots, one is already awarded opportuni es for building smart grids in India in Mysore, and others are on their way. The pilots have all the functionalities of the are immense,” Roy adds. smart grid starting from renewable integration to demand side management, peak To this, Kannan Tinnium, Technology load reduction and power quality. So, the work has just begun. Leader, GE Global Research Center observes, “Smart grid is about bringing more What kind of growth you expect in this sector? intelligence to the power grid. Technologies in Smart grids in India is expected to solve a certain set of problems and this sensing, digital communica on, analy cs and implementation varies from country to country, for e.g. in the US it has to solve the controls would need to be developed. These problem of blackouts, aging workforce, aging infrastructure; whereas in developing technologies would leverage the exis ng economies like Brazil and India, who have common problems, smart grid is network thereby reducing the need to build expected to solve the peak hour crunches. You know we have a peak deficit of new infrastructure. However, in India, there is almost 13 per cent, we also have energy deficit as almost 400 million people out of a need to develop a stronger grid and then 1.2 billion in India do not have access to electricity, so smart grid is expected to make it smarter. The investments needed to solve problems of power supply, even out the peak, try to get everyone connected upgrade the grid would be reduced with the with power supply and boost renewable penetration, which is a common factor smart grid technologies.” across the continent and the world. Smart grid can push a consumer to be more energy efficient, and help him know how he can do more by using less of the planet’s resources. Thus, in India smart grid has definitely a very good opportunity. Smart Grid Implementation Presently, the Indian electricity system faces a number of challenges like shortage of How is implementation of smart grid likely to enhance quality of power? power, power the , poor access to electricity Power is being supplied to multiple customers, but the quality of power in terms in rural areas, huge losses in the grid, of voltage and most importantly reliability is not very well monitored or controlled. inefficient power consump on and poor Maximum investment has to be in distribution sector. For every 3 units of energy reliability. The present grid system needs a generated, there is only 1 unit of energy being used, that means 2 units of energy is major revamp to address all the challenges lost during T&D and so there needs to be investment here. Smart grid will men oned. It needs investment in several fundamentally bring in the monitoring part and there could be backing changes, areas like increasing genera on capacity, plus the feedback control system can dynamically improve the quality of power. improving grid efficiencies and rural Renewable energy which is intermitted due to the natural conditions it relies on electrifica on. A smart grid is supposed can also be duly monitored. This especially plays a huge role in projects that have a to be the solu on to all these challenges and hybrid or battery storage reliant renewables systems. in fact essen al for India’s energy security in the future. When do you see demand for smart grid picking up? However implementa on has been slow, See, the demand for smart grid technology today is very much violable, but India explains Kadam, “the Indian u lity community is new to this technology and we are taking baby steps to first try and test what is open to pilo ng out the system first and works for us. If you see states like Karnataka, Tamil Nadu and Andhra Pradesh, seeing the benefits coming through. India is a have announced feed-in tariff. But, any technological changes affecting the country that embraces technology once it is consumer has to be first approved by the regulator, who understand the potential proven. However, this is more tricky for smart benefit of smart grid.
Smart Grid technology
and implementation will see a
boost within two years
(For full interview, log on to www.SolarToday.co.in) January-February 2016 SOLAR
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feature smart grid
grid as there are mul ple stakeholders like u lity, customer and regulators involved, so it takes me.” Adds Tinnuim, “There is a vision for Smart Grid in India with the govt ini a ng 14 Smart Grid pilots across India. While some are providing enough opportuni es, the pace is slow. Although several schemes have been launched over the years, it has been a challenge to roll out deployments on a massive scale that can be considered successful. The opportuni es con nue to evolve and new business models would need to emerge.” Kala is more op mis c on the work done, “The Smart Grid program has mul ple dimensions; various interven ons are underway at the na onal and state level in the direc on of full scale rollout of smart grid in the country. With thrust on energy efficiency and reduc on of power the s and transmission losses, states are encouraging smart grid implementa on. Delhi witnessed deployment of first smart grid in the country. Further, three state governments have partnered with Siemens for smart power solu ons for their ci es.”
Demand for Smart Grid The demand for smart grid technology today is very much violable, but India is new to this technology and we are taking baby steps to first try and test what works for India. Smart grid means different things to different countries. States like Karnataka, Tamil Nadu and Andhra Pradesh have announced feed-in tariff. These three states have started realising and making provisions for feed-in tariff and enabling roo op consumers - who go green and help the u lity go green and become more efficient. “In the Indian context, the stakeholders want to try out and mix and match what is needed to go ahead full thro le. I think, and I am more op mis c, that in another two years, you will see big me demand for smart grids,” shares Kadam..
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SOLAR January-February 2016 016
www.SolarToday.co.in
Kala adds, “In some Indian states total grid losses are as high as 50%. The u li es are in need of major reforms. Apart from opportuni es including integra ng and managing renewable component of power in the grid, through smart grids there are opportuni es around increasing cost efficiencies (TOD pricing) and effec vely managing consumers’ varying power requirements.” Feels Roy, “environment-friendly, efficient and extremely flexible – smart grids are poised to be the future of energy supply in India. Instead of purchasing power from a handful of centralised suppliers, consumers can also feed electricity into the public grid – e.g., from solar power systems or co-genera on units. Both these small power genera on units owned by power consumers and large-scale plants increase the share of vola le energy sources. This is where the smart grid helps to curb the significant gap in supply and demand especially during peak me opera on.” Says Tinnium, “with the rapid technology development in the areas of communica on and so ware, there is an opportunity to make the grid smarter and get more out of the exis ng grid in terms of improved reliability and efficiency, embracing renewables and reduced emissions.” India provides a wide range of opportuni es for smart grid players and the growth is expected at a fast pace. This ranges right from genera on, transmission, distribu on to the end users. On the genera on side, with the ambi ous plan to have 175 GW of renewables in India by 2022, there is a tremendous opportunity for smart grid players to make an impact. Developing technologies by which the grid can handle this level of penetra on by
managing the intermi ency of power will become very cri cal. On the transmission side, technologies that can help power system operators with the situa onal awareness of the grid, i.e., how much margin we have in the grid before experiencing problems, would be vital. Sensing, Communica on, Analy cs and Controls technologies would play a major role in this area. Technologies such as big data analy cs, improved visualiza on, advanced communica on infrastructure and fast & reliable control systems design can play a major role in improved situa onal awareness at a wide area level and allow for more efficient and reliable opera on of the grid at all levels - the key goal of the smart grid framework. Distribu on sector is probably seen to be the highest growing sector. Given India’s needs to improve ATC losses, and the government focus in enabling this, along with increasing penetra on of solar energy makes distribu on the key growth area. Automa on technologies that can restore power much faster to consumers, iden fica on and isola on of fault areas and effec vely managing the distribu on opera ons would be essen al.Besides, India has a huge rural popula on that have limited or no access to electricity. There is a great opportunity for microgrids here. Technologies that can integrate various locally available energy resources and be able to operate the small grid reliably would gain lot of importance over the next few years. “Inherently, transforma on of such a complex and large scale system, with the technical and regulatory ramifica ons will happen in a phased manner. The key is to an cipate the value crea on poten al of smart grid technologies in tomorrow’s grid, and to develop technology that can be adopted by the key players,” TTinnium ends. ST - JOCELYN FERNANDES
legalese investment
www.SolarToday.co.in
P
aradoxically though, in a country with the fourth largest coal reserves, per capita electricity consump on is abysmally low and a significant number of Indians either have li le or no access to electricity, while others face challenges in accessing uninterrupted and reliable electricity supply. The significance of the largely untapped renewable energy (RE) poten al in India–par cularly solar–is therefore hard to miss. In its report on India’s Renewable Electricity Roadmap 2030, Ni Aayog es mates India’s solar poten al to be in excess of 10,000 GW.
The Indian government has set ambi ous targets–100 GW of solar energy by 2022; compared with the present total installed solar capacity of 3 GW, the task seems herculean. The Na onal Solar Mission (NSM) is running behind schedule as well. The Indian Government however is stepping on the gas with a massive
push for RE generally, and solar energy in par cular. In December 2014, it announced a scheme for developing solar parks and ultra-mega solar projects. At least 25 such solar parks across states, each with a capacity of 500 MW and more, with a total central financial assistance of about $675 million are planned over a period of five years. The scheme envisages various modes of implemen ng these solar parks–either through the designated state nodal agencies or the Solar Energy Corpora on of India (SECI), or through a joint venture of the two, or by private solar developers in collabora on with the relevant state government. The Cabinet Commi ee on Economic Affairs (CCEA) has also approved the se ng up of more than 2,000 MW of grid-connected solar photovoltaic projects by solar power developers on build-own-operate (BOO) basis, with viability gap funding under Batch III of the second phase of
unshine
in the Solar Sector That stemming climate change needs urgent attention and decisive action, is not news. The need for clean energy is being felt like never before and as a country with the third largest carbon footprint and a population of over a billion, India needs to find solutions.
January-February 2016 SOLAR
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legalese investment
the NSM. Replica ng the success of the Charanka Solar Park in Gujarat and the Bhadla Solar Park in Rajasthan is clearly a priority for the government. Towards improving evacua on of renewable power to load centres, the CCEA has also cleared the crea on of 48 new grid sub-sta ons by installing over 7,800 circuit kilometres (ckm) of transmission lines in seven states, namely Andhra Pradesh, Gujarat, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, and Rajasthan. The cost of this much needed project is expected to be met to the extent of 40 per cent by way of a grant from the Na onal Clean Energy Fund, while states are required to contribute 20 per cent of the project cost. The balance is envisaged to be met through debt financing from German development bank KfW. The Indian Government’s emphasis on solar energy has been met with posi ve response from states, and the state of Andhra Pradesh and the newly formed state of Telangana are emerging as front runners in taking this ini a ve forward at the state level. Both have clear solar policies in place and are pursuing this opportunity aggressively. While Andhra Pradesh’s policy sets a goal of 5 GW of solar energy in the next five years–half of which is envisaged to be set up in the form of solar parks in line with the central government’s policy–the Telangana policy does not set a target but does demonstrate a resolve for harnessing the solar poten al of the state. Both states provide incen ves such as exemp on from electricity duty and also from cross-subsidy surcharge for solar energy consumed within the respec ve states, while the Telangana policy addi onally provides for a single window clearance (modali es of which are s ll to be no fied though) and a number of incen ves
and concessions, including exemp ons from land ceiling statutes to the extent of land required, 100 per cent refund of value added tax, refund of stamp du es paid for purchase of land for solar power projects, assurances of process of applica ons for pollu on control clearances within a week of applica on, grant of registra on of the project as a ‘factory’ for the purposes of labour compliances within a week of applica on, etc. The top three states in terms of installed solar capacity, namely Rajasthan, Gujarat, and Madhya Pradesh will need to be on their toes with Andhra Pradesh and Telangana snapping at their heels. Indeed, tenders are expected for development of solar power projects
and financial ins tu ons generally cost around 12-13 per cent, while the cost of foreign debt is about the same a er aggrega ng LIBOR, credit default spread, interest rate hedge, and currency risk hedge, the last component accoun ng for almost 4-4.5 per cent. A US Dollar denominated PPA, which therefore obviates the necessity of the hedging cost, opens up the possibility of borrowing cost dropping to 6-7 per cent, transla ng in lower solar tariff. While, of course, this does not do away with the necessity of a hedge per se, it is proposed that a hedging cost of `0.90 or about 1.5 cents will be added to the tariff to provide for deprecia on in the value of the Indian rupee. With this, the final tariff could be in the region of `4.50 or 7.5 cents, significantly lower than the current solar tariff of `6-7. This power can then either be sold directly to the discoms or can be bundled with power from conven onal sources. The proposal is s ll being considered by the government, but it does certainly seem to have the poten al of significantly improving the contribu on of solar energy in the electricity mix if it sees the light of day. The Indian Government is also exploring global partnerships to advance the development and adop on of clean technology, including solar power. For instance, a memorandum of understanding (MoU) geared at establishing ins tu onal linkages and bilateral coopera on on RE has been executed on April 10, 2015 with the Government of France. The Governments of India and the USA have also unveiled their new ini a ve “Promo ng Energy Access through Clean Energy (PEACE)”, envisaging the crea on of a ‘Pace Se er Fund’ which is intended to provide early-stage grant funding to promote the
A US Dollar denominated PPA, which therefore obviates the necessity of the hedging cost, opens up the possibility of borrowing cost dropping to 6-7 per cent, translating in lower solar tariff.
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SOLAR January-February 2016
in an ultra-mega solar park in Rewa, Madhya Pradesh, which could poten ally be one of the biggest solar power facili es in the world. Although these efforts should have a posi ve impact on investor sen ment–especially foreign investor sen ment– and encourage investments in this space, debt financing for solar projects in India has been in a bo leneck, with Indian banks either having limited capacity or appe te or both. The proposal by the Minister for Power, Coal, and New and Renewable Energy Piyush Goyal, to denominate solar power purchase agreements (PPA) with distribu on companies (discoms) in US Dollars could therefore be a game changer. The proposal is expected to enable developers to access cheaper foreign debt which in turn could result in a drama cally lower solar power tariff. To explain, debt from Indian banks
www.SolarToday.co.in
commercialisa on of innova ve off-grid technology solu ons. Global partnership frameworks have also been established between India and Denmark, Iceland, Australia, and Spain, each. While smart, out-of-the-box solu ons can create opportuni es for a solar revolu on, leveraging other accessible contemporary funding sources is important. Close on the heels of the first-of-its-kind domes c issue of the Indian rupee denominated green bonds aggrega ng about $160 million by Yes Bank, the EXIM Bank of India launched a five-year green bonds issue of $500 million in March, 2015. This is significant for a number of reasons: it was the first US Dollar denominated green bond offering from India, the first benchmark-sized green bond out of Asia in 2015, and the third ever green bond issuance
out of Asia. Significantly, the EXIM Bank was looking at raising only $250 million, but it garnered double that amount thanks to an oversubscrip on by more than three mes. Although in this par cular case, EXIM Bank will use the proceeds to fund eligible green projects in countries including Bangladesh and Sri Lanka, green bonds are an a rac ve fundraising avenue for RE ini a ves generally and par cularly solar projects in India. A predic on therefore of the possibility of Indian issuance of overseas securi es mee ng environmental criteria surging to $1.5 billion annually in the next two to five years should inject excitement in this immensely potent sector. India seems intent on aligning itself with the sun. Posi ve intent appears to be coupled with beginnings of decisive ac on. Steps
being taken by NTPC to buy 15 GW of solar energy on behalf of the MNRE, its commitment to add another 10 GW of solar capacity itself, the PTC seeking to call bids from solar project developers on behalf of MNRE, coupled with enthusias c response from the Indian private sector, including Adani Power’s plans to set up a 1 GW solar park in Tamil Nadu and a 10 GW solar park in Rajasthan should strengthen the belief in India’s solar future. Apollo ST will be smiling.
About the Author: This article has been authored by Upendra Joshi and Swathy Ramanath, Khaitan & Co.
January-February 2016 SOLAR
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communication feature
“Governments should contribute in financing R&D in India” - Rakesh Anand, CMD, Radical Solar
Tell us about your company and the line of products you manufacture. We at Radical Solar Pvt. Ltd have setup a 100 per cent automated 30 MW assembly line for production on of Mono and Poly Crystalline photovoltaic solar panels at Okhla Industrial Area phase 2, a well know industrial belt of Delhi. Thus this prime location helps facilitate logistics and smooth business. As our name suggests, Rakesh Anand, our efforts are to bring CMD, RADICAL SOLAR radical change in the solar panel manufacturing industry in terms of quality and pricing. We aim to procure the best quality of raw materials available in the industry to produce PV panels for the Indian and export markets.
Do you think that the implementation of smart grid will boost demand for net metering in India? The net metering proposal is one of the good initiatives taken by the Government and 26 states have adopted net metering system. But, unless power cuts and grid failure cases reduce, the system will find it very hard to exist.
How has the growth of the company been over the years? Undoubtedly, the growth in solar industry is upgrading by four–fold. Radical Solar is poised to take solar business to next level by providing customised service to each and every customer.
Share with us some of the work that you do specifically in the power sector. We are working on government projects among others. Many PV panel projects have been erected by us. The 1 MW solar thermal project at MNRE testing centre site at Gwal Pahari, Gurgaon – Faridabad Road, Gurgaon being sublet by IIT Mumbai for their BOP works is one of them.
Are there any new products that have been or will be launched soon? Yes. Everyday sees a new revolution in the solar industry. Radical Solar has been in line of manufacturing 17 per cent + eff. of PV modules. Solar manufacturing has not picked up in India. What is needed to counter this? Indeed, the solar industry in India has not picked up the pace it should have. Government initiatives like quick disbursement of subsidies and increase in percentage of subsidies can help. The government must ensure a level playing field for module manufacturers in India against imports from China, which are subsidised by the Chinese government. ‘Make In India’ can only be sustained if the government facilitates a minimum floor price for import panels.
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SOLAR January-February 2016
How important is R&D investment for the company according to you? What role does it play in the industry’s growth? Rigorous R&D is the core strength of manufacturing company and every PV panel manufacturing company should take keen efforts to produce synchronised PV panels to save huge occupancy. Governments should contribute in financing R&D in India by way for module making, as this will also encourage ‘Make in India’. India can only rise when we have a healthy manufacturing base.
How do you assess the market scenario in India? How does it impact you? Market scenario in India as far as solar panels is concerned, is not very healthy. This is because there is no subsidy being offered by the government, besides which a weaker rupee value against dollar and dumping of cheap import by Chinese module manufacturing companies also plays a vital role in to producing cheaper solar products. We require minimum floor price for imported modules to help Indian module manufacturers survive. (Communication by the management of the company)
Solarising Rooftops in India – Standardisation is the key
T
he world PV market is growing with more than 35 per cent CAGR and India is no exception. We have set a target of installing 100 GW of solar power by 2022, out of which 60 GW is to be ground-mounted power plants and 40 GW is to be rooftop power plants. Achieving this target in the next seven years is a huge task. This is not just the case with India, but there are a number of countries Prof Chetan Solanki, already in the field or Founder, KWATT SOLUTIONS following the same path PVT. LTD as us. With the big goals that we have set for our country, there has been too much haste in the market. On one hand, our goals for solar power
have been set very high but on the other hand the level of standardisation which is required in order to implement 100 GW of solar power – and 60 GW of ground-mounted power plants – has not been put into place. The situation should not be such, that a solar power plant installed today stops producing electricity after few years of operation, as is the case with a number of plants in India right now. Standardisation from pre-feasibility to installation to operation and maintenance (O&M) level are to be formulated and put into place and these standardisation techniques should form the basis of growth of solar industry in India. S-Rooftop is a vertical of kWatt Solutions Pvt. Ltd. aims to standardise the process of solarising rooftops by connecting all the stakeholders by creating a trustworthy platform. (Communication by the management of the company)
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project sphere solar
www.SolarToday.co.in
Sno.
Company Name
1
Eastern Coalfield Plans to set up solar power Ltd project at various places of ECL by external agency at their own cost and supply of tariff based electrical energy to ECL. IL&FS Energy IEDCL and the Rajasthan Development Government aims to Company develop solar park as part (IEDC) of 50:50 joint venture (JV). The projects are likely to come up at Bhadla, Jodhpur and Jaisalmer. Punjab Energy The state government has Development signed MOU with PLG Agency Energy Systems for setting up of 200 MW solar power projects. Reliance Power Plans to develop a Ltd 6,000 MW solar power park named ‘The Dhirubhai Ambani Solar Park’ in Rajasthan. The park will be spread over nearly 30,000 acre. Su-Kam Power India’s leading power back Systems Ltd up solutions provider has successfully completed the installation of a 75 KWp rooftop solar plant at IFFCO Chandigarh. The contract was assigned by SECI. Su-Kam has been given the overall responsibility of designing, supplying, testing and commissioning of the solar power plant. Entire system consists of one 15 KWp and two 30 KWp Grid-tie inverters, and 300 solar PV panels of 250 watt each. The project took one month to complete. Sun Edison Bagged 500 MW project from NTPC in e-auction. Ten projects of 50 MW each will be set up at Ghani Solar Park in Andhra Pradesh under NSM, Phase-II, Batch-II, Tranche-I of MNRE, GoI.
2
3
4
5
6
Project Title / Details
Location Burdwan, West Bengal
Budget (`Crore)
Contacts
NA
Malay Mitra, GM (Electrical & Mechanical), Sanctoria, Disergarh, Burdwan-713333 West Bengal. Tel: 0341-2523580
Jodhpur, Rajasthan NA
Sanjay Joshi, Assistant Vice President, IL&FS Financial Centre, Plot C22, G Block, Bandra Kurla Complex, Post Box No. 8145, Bandra (E), Mumbai-400051, Maharashtra. Tel: 022-26533333
Punjab
1,400
Rajasthan
NA
MP Singh, Joint Director (Department of Power), Solar Passive Complex, Plot. no. 1 & 2, Sector-33D, Chandigarh-160020, Tel: 0172-2663382 Daljeet Singh, Group Vice President (Corporate Communication), Delhi. Mobile: 9312014099
Chandigarh
0.6
Dhananjay Sharma, GM - Global Business, Plot No. 54, Udyog Vihar Phase - IV, Sector-37, Gurgaon-122001, Haryana. Tel: 0124-4170500
Kurnool district, Andhra Pradesh
NA
Alok Nigam, Director (Business Development), Menon Eternity, 10th Floor New # 165, Old No # 110, St.Marys Road, Alwarpet Chennai-600018, Tamil Nadu. Tel: 044-42923800
ST
60
SOLAR January-February 2016
market snapshot
solar
www.SolarToday.co.in
426 participants in Solar REC bids for January
I
n the month of January, REC buy bids (Solar) were 41, 188 and sell bids were 2,495,537, the cleared volume was 41,188 and cleared price was `3,500; while the number of par cipants was 426. The REC buy bids (non-solar) were 164,004 and sell bids were 7,585,847, the cleared volume was 164,004 and cleared price was `1,500; while the number of par cipants was 784. The average* REC buy bids (solar) were 41,188 and sell bids were 2,495,537, the cleared volume was 41,188 and cleared price was `3,500. The average* REC buy bids
(non-solar) were 164,004 and sell bids were 7,585,847, the cleared volume was 164,004 and cleared price was `1,500. The maximum REC buy bids (solar) were 41,188 and sell bids were 2,495,537, the cleared volume was 41,188 and cleared price was `3,500. The maximum REC buy bids (nonsolar) were 164,004 and sell bids were 7,585,847, the cleared volume was 164,004 and cleared price was `1,500. The minimum REC buy bids (solar) were 41,188 and sell bids were 2,495,537, the cleared volume was
IEX Solar REC Trade Details Month
Buy Bid
Sale Bid
Cleared Volume
Jan'16
41,188
2,495,537
41,188
41,188 and cleared price was `3,500. The minimum REC buy bids (non-solar) were 164,004 and sell bids were 7,585,847, the cleared volume was 164,004 and cleared price was `1,500. The total REC buy bids (solar) were 41,188 and sell bids were 2,495,537, the cleared volume was 41,188. The total REC buy bids (non-solar) were 164,004 and sell bids were 7,585,847, the cleared volume was 164,004. 1 REC = 1 MWh * Simple Average for traded months only.
IEX Non-solar REC Trade Details Cleared Price (`/REC)
Month
Buy Bid
Sale Bid
Cleared Volume
Cleared Price (`/REC)
3,500
Jan'16
164,004
7,585,847
164,004
1,500
ST
January-February 2016 SOLAR
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people management solar
www.SolarToday.co.in
Wolfgang Hager is the new European sales director at Renusol
Exper se Abundance
Wolfgang Hager took over as European sales director at Renusol (Cologne, Germany) on February 1st, 2016. The 47-year-old Austrian is now looking forward to drawing on his 25 years of sales experience acquired in companies such as Viessmann and Bosch to further expand Renusol’s European opera ons. “In Wolfgang Hager, we have found a true sales expert. As a cer fied PV planner, he has technical knowledge and an in-depth understanding of installers’ needs and see his appointment as a further step towards building a strong sales department,” comments Sven Kuenzel, Managing Director of Renusol. Before joining Renusol, Hager was responsible for establishing the Austrian sales office of solar moun ng solu ons manufacturer Schle er, subsequently becoming sales director for Austria, Switzerland and Italy. He had previously worked for Sonnenkra , Bosch and Viessmann.
Gurdeep Singh to take over reins of NTPC as CMD Gurdeep Singh, 51 years, joined as CMD, NTPC in New Delhi. A Mechanical Engineer by profession he has over 28 years of experience in power genera on sector. He started his career with NTPC Limited and has worked at various levels both in Indian and Mul -na onal Companies namely Powergen, CLP, IDFC, CESC and AES. He has worked in different areas of the power sector ranging from business development, projects and opera ons. Prior to joining NTPC, Singh was Managing Director, Gujarat State Electricity Corpora on Limited, where he spearheaded several key reforms in Gujarat, the major being innova ve solar power programmes such as the solar power plant over the Sardar Sarovar canal. Singh takes charge at a me when NTPC is expanding beyond conven onal power genera on to solar power and allied businesses and is undergoing restructuring of its several divisions – the largest ever since its incep on.
Dedicated Leader
American Solar Direct names Steven Walden as Vice President of Sales, Channel Partners
Entrepreneurial Spearhead
American Solar Direct, a leading residen al solar energy provider in California, announced the appointment of Steven Walden as Vice President of Sales, Channel Partners. In this new role, Walden will be responsible for iden fying, building, and nurturing new rela onships with key sales partners. Bringing with him more than 20 years of experience in revenue development and business management. Prior to this appointment, he served as Na onal Director of Sales at SunEdison, responsible for increasing revenue growth and managing rela onships with third-party vendors and partners. Walden also held several high-level managerial posi ons with Masco, Milgard Windows, and Weathershield, where he launched and directed mul ple na onal programs with partners and dealers that led to increased revenue streams.”I am thrilled to be joining American Solar Direct’s team,” Walden said. ST
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SOLAR January-February 2016
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