Green (renewable) energy: India, 2 (ministry data)
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INDIA 2012
A REFERENCE ANNUAL
Compiled by
RESEARCH, REFERENCE AND TRAINING DIVISION
PUBLICATIONS DIVISION
MINISTRY OF INFORMATION AND BROADCASTING
GOVERNMENT OF INDIA
New And Renewable Energy
India is undergoing a growth with GDP of 8-9% and for this, the commensurate growth of energy sector is also necessary. Climate change related issues have also to be addressed without compromising with the development. It is worldwide recognized that fossil fuels are depleting fast and their excessive use needs to be curbed. More than 40 percent of population still have no access to electricity. In this context, the role of Energy Efficiency and Renewable Energy is vital. India has been making continuous progress in conventional as well as renewable power generation.
From the year 2002 onwards, renewable grid capacity has increased by almost 5 times, which is about 10.90% of the total grid installed capacity in the country, and contributing about 4.13% to the electricity generation mix. This compares favorably with that of European Union (EU) and far exceeds that of the United States (US). In addition, India's per capita energy use continues to be far below that of industrialized countries, and per capita CO2eq emissions are almost a third of the world average. All the sectors of renewable energy are being developed. However, the wind power programme has been the fastest growing contributing to around 75% of the gridconnected renewable energy power installed capacity.
Ministry of New and Renewable Energy (MNRE) is the nodal Ministry of Government of India at the national level for all matters relating to new and renewable energy such as solar, wind, biomass, small hydro, hydrogen, biofuels, geothermal etc. The endeavour of the Ministry is to promote renewable energy technologies and increase the contribution of renewable energy in the total energy mix today and in the years to come as well as to sub-serve the above objectives. The Ministry has a wide range of programmes on research and development, demonstration and promotion of renewable energy for rural, urban, commercial and industrial applications as well as for grid-interactive power generation.
The Ministry adopts a three-fold strategy for the development, promotion and use of renewable energy technologies across the country: a) providing budgetary support for research, development and demonstration of technologies; b) facilitating institutional finance through various financial institutions; and c) promoting private investment through fiscal incentives, tax holidays, depreciation allowance and remunerative returns for power fed into the grid.
JAWAHARLAL NEHRU NATIONAL SOLAR MISSION
The "Jawaharlal Nehru National Solar Mission" (JNNSM)- one of eight Missions under National Action Plan on Climate Change was launched by the Prime Minister on 11th January 2010. The objective of the Jawaharlal Nehru National Solar Mission (JNNSM) is to set up an enabling environment for solar technology penetration in the country both at a centralized and decentralized level. With the launch of JNNSM, policy initiatives have been focused on encouragement to set up commercial projects by providing generation based incentives for the power fed to the grid through the mechanism of renewable purchase obligation by utilities backed with a preferential tariff and at the same time pursuing research & development efforts to develop indigenous technologies and capacity as well as capabilities in this sector. It aims to create and enabling policy framework for the development of following solar energy applications:-
Top and Small Plants
The policy framework of the Mission was finalized after extensive consultation with stake-holders for (i) new grid connected projects through NVVN, (ii) small off grid projects through IREDA, (iii) off-grid solar applications through various Agencies/Channel Partners; and (iv) technical performance and domestic connect requirements of solar projects. Consequently, on 16th June, 2010. Ministry announced major Guidelines for
(I) Roof-top and other small solar power plants connected to distribution network (below 33 kV),
(II) Guidelines for implementation of off grid solar application and guidelines for gird interactive solar power projects on 26th July, 2010. These guidelines provide direction for deployment of both solar PV and solar thermal technology projects in a ratio of 50:50 in MW capacity terms.
NTPC Vidyut Vyapar Nigam (NVVN), the trading subsidiary of NTPC, is identified as the implementing agency for grid connected solar power generation.
NVVN will purchase solar power from the project developer and bundle with power from the cheaper unallocated quota of the Government of India (Ministry of Power) out of the NTPC coal based stations and sell this "bundled" power to Distribution Utilities. NVVN invited Expressions of Interest in August, 2010 to select 150 MW of Solar PV projects and 470 MW solar thermal projects, which yielded huge response by way of an offer of more than 5,000 MW.
Solar Photovoltaic (SPV) Systems
SPV Grid Power
Out of 1,100 MW capacity for the first phase of the Mission, a total of 797 MW capacity grid connected solar power projects were selected during 2010-11. The other developments are as follows :
l 98 MW capacity projects (100 kW too 2 MW each) were selected by Indian Renewable Energy Development Agency (IREDA). Ministry would provide generation based incentive to the concerned state utilities. The tariff for purchase of solar power by the utilities has been fixed by the respective State Electricity Regulatory Commission.
l 84 MW capacity by NTPC Vidyut Vyapar Nigam (NVVN) projects were under migration scheme with tariff facility as fixed by Central Electricity Regulatory Commission (CERC) for 2010-11.
l 615 MW capacity (470 MW of solar thermal and 145 MW of PV) projects were selected by NVVN through discounts on CERC tariff. The eligible bids to set up PV plants have offered discount of Rs. 5.15 to Rs. 6.96 per unit (CERC tariff Rs. 17.91 per unit) and for solar thermal plants, the discount is Rs. 3.07 to Rs. 4.82 per unit (CERC tariff Rs. 15.31 per unit).
l PPAs and PSAs have been signed for these projects.
l The tariff discounting process has helped in achieving the tariff reduction for utility gird solar power projects. It is expected that in next few years the tariff would further lower to accelerate the process of achieving grid tariff parity, as envisaged in the Mission.
Currently, diesel generating sets are being used in rural and urban areas to provide power during power outrages and in those areas where grid power quality makes it imperative to operate machines on quality power. In such situations, small wind and hybrid systems, biomass gasifiers and SPV roof top power plant scan be sued to produce power to replace diesel.
Off-Grid and Decentralized SPV Application
In addition to the grid solar power access to energy and meeting the unmet demand especially in the rural areas has been given importance under the mission. A new scheme has been introduced to provide a combination of subsidy (30%) and loan (5% annual interest rate) to individuals and new commercial users for purchase of solar lights and other small solar PV systems. Regional Rural Banks continued to be associated in this scheme. Ministry will provide funds to NABARD through refinancing for onward lending to the consumers at 5% annual interest rate.
During 2010-11, 18 Regional Rural Banks (RRBs) sanctioned loan for 57328 solar PV systems. These Banks have 4687 branches in 150 districts. It is expected that during 2011-12, the Regional Rural Banks would be able to sanction loan for about 2 lakh solar lights. During 2010-11, the Ministry supported installation of off-grid solar PV systems in the States for a wide range of applications. This includes SPV systems for all 9,168 Panchayats in Rajasthan, Schools, Tribal Hostels, Police Stations/Posts, home and street lights in SC/ST and minority dominated areas. About 18,224 solar lanterns, 1,13,817 solar home lighting systems, 26,472 SPV street lighting, 4278.03 Kwp capacity Stand alone solar power plants were installed. Solar off-grid PV projects of an aggregate capacity of 40.60 MW have been sanctioned.
The State driven approach followed for the smaller grid projects have helped in tariff fixation by 17 States and selection of 78 projects from 12 States. IREDA has selected 78 project developers to set up 98 MW capacity projects. Power Purchase Agreements (PPAs) have been signed by the project developers with the respective State utilities. One year time has been given for commissioning of the projects. Many project developers have selected their EPC contractors.
For various off-grid applications of solar energy, using the capital subsidy and/or interest IREDA has entered into umbrella refinance agreements with NABARD, National Housing Bank and Central Bank of India to provide refinance to the interested banks to enable them to offer loans to consumers at 5% annual interest rate. 53 grid connected solar power projects of 797 MW capacity have been identified which comprised 16 projects of 84 MW capacity selected in July, 2010 by NVVN under the migration scheme at CERC tariff and 37 projects of 620 MW capacity (7 projects of 470 MW of solar thermal and 30 projects of 150 MW of PV) projects selected by NVVN through discounts on CERC tariff. Ministry has approved new projects of 35 MW capacity under the SPV off-grid solar applications, against a target of 32 MW for the year 2010.
SOLAR THERMALAPPLICATION
Solar Water Heating Systems
Solar water heating is a very important system for reducing electricity consumption by replacing electric geysers in domestic houses. This needs to be adopted in a very big way. States are being encouraged to enact/issue necessary orders with model regulations and building bye-laws for use of solar water heaters. 109 Municipal Corporation/Municipal Committees in 21 States have amended their building byelaws and several have even provided rebate in property tax and electricity bills for installation of solar water heating systems.
An energy labeling scheme similar to the star rating scheme for air conditioners and refrigerators is also planned to promote efficient solar water heaters. Efforts are also being made to promote solar water establishments. Various user ministries such as Urban Development, Tourism, Defence, Railways, Textiles, Health, Food Processing Industries, etc. have been approached for adoption of solar water heating as part of the energy infrastructure under their respective sectors. A total of about 10.0 lakh m2 of solar collector area was installed in the year, 2010-11, taking the cumulative installation to about 4.97million m2.
Solar Air Heating/Steam Generating Systems
Solar Steam Generating Systems have found good application for air conditioning also at places where conventional fuel is used to operate vapour absorption machines. Specially designed and customized systems have been set up at a hospital in Thane and a motorcycle manufacturing factory near Chennai. Solar air conditioning systems using concentrating technology are efficient and require less space. During 2010-11, six systems with collector area of around 600 sq.mtr were sanctioned.
Thirteen solar steam generating systems (including systems on solar cooling and laundry/process heat applications) and 21 indoor community cookers covering around 4000sq.m of dish area were sanctioned in 7 States. This is another area which Ministry is promoting particularly for large cooking institutions—philanthropic, religious, educational, hospitals and hotels. The Solar Steam Cooking system for 20,000 people at Shirdi, Maharashtra is under operation successfully.
RENEWABLE ENERGY FOR RURALAPPLICATIONS
Remote Village Electrification (RVE) Programme
For providing basic lighting/electricity facilities through renewable energy sources under Remote Village Electrification (RVE) Programme, special priority has been accorded to villages affected by internal disturbances. During 2010-11, 1537 remote villages and hamlets have been provided solar home-lighting systems under the programme, taking the cumulative achievement to 8,104 remote villages and remote hamlets.
National Biogas and Manure Management Programme
The programme of the Ministry mainly caters to setting up of family type biogas plants for meeting the cooking energy needs as well as providing a means of enriched organic biogas fertilizer in rural areas of the country and rural sanitation as well. During the financial year 2010-11, 1,51,138 family type biogas plants were installed across the country, taking the cumulative installations to over 44 lakh biogas fertilizer plants, thereby providing the benefit of clean cooking and lighting fuel and organic Biogas-fertilizer to 4.4 million rural households/farmers for not only sustaining soil fertility but also to enhance crop productivity.
The Ministry is also promoting bottling of biogas to demonstrate an Integrated Technology-package in entrepreneurial mode on medium size (200-1000 (cum/day) mixed feed biogas-fertilizer plants (BGFP) for generation, purification/enrichment, bottling and piped distribution of biogas. Fifteen such projects with aggregated capacity of 11,200 cubic metre per day have been sanctioned in the States of Bihar, Chattisgarh, Gurajat, Haryana, Karnataka, Maharashtra and Punjab, Rajasthan upto 31st March 2011.
Biogas Based Distributed/Grid Power Generation Programmes (BGFP)
Biogas based power plants are a reliable decentralized power generation option in the country, especially in the capacity range of 3 KW to 250 KW, to provide electricity to individual/community/grid. The projects are taken up by any village level organization, institution and private entrepreneurs in rural areas based on the availability of large quantity of animal waste and other waste for generation of electricity for individual/community/gird etc. on mutually agreeable terms. The programme is being implemented through State Nodal Departments/Agencies of the States/UTs districts. 358 nos. of projects with aggregated power generation capacity of 6.75 MW having cumulative biogas generation capacity of 66,397 m3 have been sanctioned in 18 States of which 113 plants with aggregate capacity of 1.27 MW have been commissioned upto March, 2011.
Biomass Gasifier
The Ministry is taking forward electrification of villages in paddy growing areas through gasification of rice husk. Rice husk based biomass gasification projects of 32 Kw gasifier systems with 100 per cent producer gas engines in 50 village/hamlets of East and West Champaran, Mazuffarpur districts of Bihar have been installed which are providing off-grid power to villages of 500-700 households through each system. The Projects are on Build, Own and Operate basis on a sustainable business model.
The Ministry has revised its scheme to facilitate such systems and greatly upscale reach. Other companies and individuals are trying to replicate in other districts of Bihar-Araria, Chhapra, Buxar, etc. This has great potential and will be a major area of activity for the Ministry in next few years. Efforts will also be made to power irrigation pumps in these areas. Efforts are on to install biomass gasifier systems using pine needles, forest weeds such as lantana for generation of power in hilly and forest area. Ministry is also pursuing setting up of small grid connected power plant at the tail end of the grid linked with dedicated energy plantations on degraded lands. Such projects would benefit the rural areas.
HYDRO POWER
Micro Hydel
In order to utilize the micro hydel resources in remote hilly areas, the Ministry introduced a new scheme, with higher levels of subsidy for watermills and micro hydel projects up to 100 kW capacity. Micro hydel projects in international border districts have been given increased CFA of Rs. 1,00,000/- per kW. Development/Upgradation of Water Mills
560 watermills have been set up/upgraded for mechanical/electrical output in the States of Arunachal Pradesh, Karnataka, Jammu and Kashmir, Tamil Nadu and Uttarakhand during the year. 2000 watermills and 56 micro hydel projects have been sanctioned to the State of Jammu & Kashmir for meeting the mechanical and electrical needs of rural communities.
Small Hydro Power (SHP)
A total of 5718 potential sites with an aggregate capacity of 15,384 MW have so far been identified in the country. A new, more attractive, scheme is in operation to provide financial support to SHP projects, both in public and private sector including support for renovation and modernization of old SHP projects, development of watermills and micro hydel projects. So far, 821 small hydro projects aggregating to 3,042 MW have been set up in various parts of the country. Out of this, 285 private sector SHP projects with an aggregate capacity of 1,423 MW have been set up mainly in Andhra Pradesh, Himachal Pradesh, Karnataka, Maharashtra, Punjab and Uttarakhand.
During the year 2011, 81 SHP projects aggregating to 307 MW capacities were commissioned. In addition, 369 projects of 1192 MW are at various stages of implementation. It is important that the hill states of Himachal Pradesh, Jammu & Kashmir and Uttarakhand take steps to quickly realize the small hydro potential as these projects do not disturb the environment and have a short gestation period. Renewable Energy for Urban Applications
Green Buildings
Buildings are major consumers of energy in their construction, operation and maintenance. Globally, about 40% of energy consumption is estimated to be in building sector. At present, India is experiencing the heavy construction activities in all spheres, thereby the energy demand is increasing rapidly. This is also due to rapidly growing urbanization and the increasing affordability of the people. A green building depletes the natural resources to a minimum during its construction and operation, minimizes the demand on fossil fuel based energy, maximizes the recycle, reuse, renewable energy and energy efficient devices & appliances. Green buildings also use energy efficient equipments and fixtures, efficient waste and water management practices. It has lower resource consumption as compared to conventional buildings.
Ministry is promoting Green Building's construction in the country and supporting GRIHA (Green Rating for Integrated Sustainable Habitat), a Green building Rating System through some financial and promotional incentives based on a scheme on "Energy Efficient Solar/Green Buildings" since February 2009. Ministry has created ADARSH an independent registered society for promotion and implementation of GRIHA rating system. Committee of Secretaries has taken a decision that all new buildings of Central Government/Public Sector Undertakings would be GRIHA rated buildings.
The Ministry is also developing guidelines and benchmarks for Green Large Area Developments. So far, 117 projects have already been registered for GRIHA rating certification with 4.98 million sq. m built up area out of which 81 projects are from Government Departments, Public Sector Undertakings (PSU), Educational Institutions including All India Institutes of Medical Sciences, with a total 3.38 million square meters built up area.
The focus is on capacity building through Awareness Programme and Evaluators & Trainers Workshops for providing training to the Architects, Engineers, Professionals and Officials from Central & State Governments and PSUs in which 115 Trainers and 115 Evaluators have been trained who are further promoting green buildings in the country. So far, 5 buildings, namely, Suzlon One Earth, Pune (5 star), Police Training School, Tasgaon (4 star), Fortis Hospital, Shalimar Bagh, New Delhi (3 star) and Hindustan Unilever Limited, Mumbai (2 star) have also been rated under GRIHA. So far, GRIHA manuals containing a set of 5 volumes prepared under MNRE project has been published.
Energy Recovery from Municipal Solid Wastes
As per decision of Hon'ble Supreme Court, only five pilot projects for power generation from Municipal Solid Waste (MSW) are to be provided financial support. The Ministry has sanctioned 8 MW capacity MSW based project at Bangalore which is under implementation and is likely to be commissioned in January 2012. A 16 MW capacity project at Okhla, New Delhi and 11 MW project at Hyderabad are also likely to be completed early. One project of 12 MW capacity at Gazipur, New Delhi and a 10 MW capacity at Pune are also under development. However, the problem of segregation of waste remains the biggest barrier to upscale such projects.
Energy Recovery From Urban Waste
A project of 1.2 MW capacity cattle dung based power project has been sanctioned and is under installation at Pariyat, Jabalpur. Two projects of 4 MW each based on agro wastes are under installation in Jalandhar and Hoshiarpur district of Punjab. Projects for generation of 400 kW from cattle dung and agricultural waste at five Gaushalas in Haryana are under development.
In view of the availability of large quantities of food and kitchen waste at places of community cooking/large kitchens and eating joints, Ministry has initiated a new project for biogas production from such waste under its modified scheme on Special Area Demonstration Projects. Fifty per cent support is given for government establishments and 25 per cent for private establishments under the scheme.
Renewable Energy Application in Industry
These include energy recovery and power generation from industrial wastes and biomass co-generation (non-bagasse) in industries.
Energy Recovery and Power Generation from Industrial Wastes
22 industrial waste-to-energy projects with a total capacity of about 31.2 MW were completed during 2010-11. These include one grid connected poultry litter based project 7.5 MW capacity in Andhra Pradesh, 12 projects of 5.7 MW capacity based on biogas in maize/sagostarch, industry waste in Tamil Nadu, Gujarat, Chhatigarh and Uttarkhand, 6 biogas based projects of 14.50 MW capacity in distrilleries in the States of Uttar Pradesh, Haryana and Rajasthan, one project based on mix of press mud, fruit & vegetable waste in Maharashtra, one project in paper mill in Punjab and one project in palm fruit based project in Andhra Pradesh. Fifteen industrial waste-to- energy projects with a total capacity of about 20 MW in starch industries, distilleries and poultry are under installation in Tamil Nadu, Andhra Pradesh, Kanataka and Uttar Pradesh.
Biomass Energy and Cogeneration (Non-Bagasse) in Industry
In order to generate process steam and power from biomass for captive consumption, a total of 26 biomass co-generation projects with a total capacity of about 80.7 MW were completed during the year 2010-11. These include projects in paper and rice mills, solvent extraction plants, and brewery, food and tyre industries. In addition to the above, 11 projects with an aggregate capacity of about 31 MW capacity are under installation in Haryana, Uttar Pradesh, Madhya Pradesh, Karnataka and Tamil Nadu. There is a huge potential of cogeneration in bigger rice mills producing parboiled rice. A rice mill of one tonne per hour capacity can save about 25,000 litre diesel in a year. The Ministry is trying to take this up as a mission mode in Haryana, Punjab, Bihar, Uttar Pradesh and West Bengal.
Biomass Gasifier Systems
About 120 rice mills have installed biomass gasifier systems retrofitted with diesel generator using rice husk for meeting their captive power needs in Bihar, Uttar Pradesh and West Bengal. In addition, many gasifier systems have been installed for meeting captive power and thermal application in other industries such as bakeries, food processing industries, die-casting, etc.
Biomass Power/Bagasse Cogeneration
During 2010-11, biomass power/bagasse cogeneration capacity addition of 465 MW (143 MW biomass projects and 322 MW bagasse cogeneration projects) was achieved in the States of Andhra Pradesh, Chhattisgarh, Karnataka, Maharashtra, Tamil Nadu, Punjab, Uttar Pradesh and West Bengal. The cumulative biomass power/ bagasse cogeneration based power capacity has reached 2,665 MW, which comprises 997 MW of biomass power projects and 1668 MW of bagasse cogeneration projects. Adoption of optimum cogeneration projects in cooperative/public sector sugar mills by Independent Power Producers on BOOT basis has been adopted by Maharashtra, Tamil Nadu and Punjab.
The Govt. of Maharashtra under Urjakur Trust initiative, Tamil Nadu Electricity Board and Sugarfed, Punjab are developing cogeneration power projects at selected co-operative sugar mills under BOOT basis. These three models will help to overcome the barriers of co-operative/Public Sector sugar mills and have excellent potential for replicability in other sugar producing States such as Andhra Pradesh, Gujarat, Karnataka and Uttar Pradesh.
WIND POWER
Grid Interactive Wind Power
The Wind Power Programme of the Ministry aims to catalyze commercialization of both grid interactive and off-grid wind power. The programme includes wind power generation; survey and assessment of wind resources; research & development; demonstration and field-testing of various wind power generating devices. India has a wind power potential of over 4,195 MW with 2% land availability in potential areas for setting up wind farms. The Wind Resource Assessment Programme which is being coordinated by the Centre for Wind Energy Technology (C-WET), Chennai has so far covered 28 States and Union Territories. So far, 234 stations have been found to have Wind power density in excess of 200 W/m2 at 50 m height and are considered to be suitable for commercial wind power installations.
A total capacity of 14,550 MW has been established up to May 2011, mainly in Tamil Nadu, Gujarat, Maharahstra, Andhra Pradesh, Karnataka and Rajasthan. Wind electric generators of unit sizes between 225 kW and 2.50 MW have been deployed across the country. During 2010-11, a capacity of 2,330 MW was added. India ranks 5th in the world after USA, Spain, Germany and China. Wind Electric Generators are being manufactured in the country by 18 manufacturers.
Government is promoting wind power development through fiscal and financial incentives which includes concessions such as 80% accelerated depreciation, concessional custom duty on certain items, excise duty exemption, sales tax exemption, income tax exemption for 10 years on the profit, etc. In addition, most states are offering preferential tariffs for electricity generated from wind power projects which do not avail accelerated depreciation benefit.
Small Wind Energy and Hybrid Systems
Small Wind Energy and Hybrid System was modified during the year to align it to market mode with active involvement of manufacturers and beneficiaries. During 2010-11, 6 manufacturing companies having a total of 11 models of small aerogenerators were empanelled with Centre for Wind Energy Technology (C-WET). Systems with cumulative capacity of around 600 kW have been sanctioned so far, mainly in the States of Jammu & Kashmir, Maharashtra, Manipur, Meghalaya, Punjab and Sikkim. A pilot project of 45 kW wind-solar hybrid system has been sanctioned during 2010-11 to C-WET to be commissioned and operated in grid-connected mode.
Suzlon’s wind park, Maharashtra
[[File: renewable energy suzlon.jpgKey policy initiatives on renewables: 2008-2013; India Today|frame|500px]] April 13, 2015
M.G. Arun
New ways to encourage firms to switch to clean power will decide whether Modi government's ambitious renewable energy targets can be achieved
Tucked away 40 km from the city of Satara in Maharashtra is Vankusawade village, at the foot of a giant hill that is part of the Sahyadri mountain range. An hour-long drive from the city on a dusty road takes you closer to one of the largest wind power farms in Maharashtra. Most of it is run by wind power equipment maker Suzlon, which generates 231 MW from 571 wind turbines installed on the hill since 1999. Large corporate houses such as the Tata Group, the Bajaj Group, Dhariwal Industries and the Poonawalla Group own installations in Suzlon's wind park, the highest in India at 1,150 m above sea level.
The life of each machine, installed on 50-metre-high towers, is 20 years, which means Suzlon will soon start replacing them for newer models that can generate up to 1.25 MW each, much higher than the existing 350 KW. Suzlon Chairman Tulsi Tanti expects the re-farming to take the total capacity to 1,000 MW. This will be critical for the wind power major, which made losses of Rs 1,075 crore for the quarter ending December 2014 and sold its German arm, Senvion, in January this year to pay off part of a Rs 17,000-crore debt. Having refocused, the company is no longer eyeing smaller parks-Tanti says large parks give better returns over a longer period.
But balance sheets are minor stakeholders in the larger picture. According to clean energy entrepreneurs such as Tanti, the power produced using wind turbines, solar power, small hydro projects, or even biomass is critical to India's efforts to achieve self-sufficiency in energy and improving its credentials as a user of clean energy. As much as 58 per cent of the country's power is generated from coal, the dirtiest of all energy sources, compared to just 12 per cent from renewables. Of India's total power production of 243,000 MW in 2014, wind power had a share of around 22,500 MW, and solar just 3,000 MW. This despite India's large land mass receiving one of the high-est levels of solar exposure, making it ideal for solar projects, and its extensive coastline and high wind velocity making it apt to set up wind farms.
Setting sights high
The Ministry of New and Renewable Energy under the Narendra Modi government has an ambitious plan to generate 100,000 MW by 2022 from solar energy with investments of $100 billion, taking its share in the energy mix to 10 per cent. The target for wind power generation has been pegged at 60,000 MW in the same period. The Union Budget 2015-16 doubled the cess on coal to Rs 200 a tonne in order to fund clean-environment initiatives. At a renewable energy event, 'RE-Invest 2015', held in February 2015, the government claimed it has received 266,000 MW worth of green energy commitments from banks and other private firms. Experts such as Kuljit Singh, a partner with consulting firm Ernst & Young, however, take such announcements with a pinch of salt. "The government first needs to address issues of adequate power purchase agreements (PPAs) between the seller and the buyer of such ener-gy, make transmission infrastructure available to transport the power produced, and ensure the state electricity boards (SEBs) do not default on their payments," he says. SEBs have been straddled with losses of around Rs 2.5 lakh crore in 2014 due to rampant power theft and billing inefficiencies.
Reports say that the government's renewable energy goals will also be tested at the UN Framework Convention on Climate Change in October, where it needs to formally place targets for emission reduction to fight climate change. The government would then need to explain how much energy would be raised from renewable energy sources compared to those raised from burning coal, considered a top contributor to climate change. Sensing a big opportunity, a number of companies have announced plans to either enter the renewables segment or scale up their existing business.In February 2015, industrialist Gautam Adani-led Adani Group signed an MoU with the Rajasthan government for developing solar parks with a capacity of 10,000 MW over the next 10 years. The Anil Ambani-led Reliance Power has also announced plans to set up a 6,000 MW solar park in Rajasthan over the next 10 years. The $25-billion Hinduja Group has plans to generate 1,000 MW of power through solar projects, its Vice-Chairman Gopichand Hinduja said.
The first major step taken by India in favour of the renewable energy sector was in 2008 when the UPA government launched the National Action Plan on Climate Change. The plan identified eight core 'missions' through 2017, including the National Solar Mission. "Before this, sustainability or the issue of clean energy was never a part of our larger vision," says Vineet Mittal, co-founder and MD of Welspun Energy, which has already commissioned 328 MW of solar power in India and is implementing another 140 MW. A slew of policy initiatives followed, including notification of renewable purchase obligations making it compulsory for state power distribution companies to buy a certain percentage of their requirement from renewables.
Shying away from green power
Despite all these efforts, energy production using clean sources remains abysmally low. One of the major challenges faced by the renewables sector is the lack of adequate and appropriate financing options. For instance, scheduled banks are reluctant to lend to solar power projects, as it forms part of the power sector where the lending caps have already been exceeded in some cases. Moreover, government institutions such as the Power Finance Corporation and the Rural Electrification Corporation give loans at interest rates as high as 12.5 per cent to 13.5 per cent, making many projects unviable.
The industry is demanding that solar energy be made a priority sector and excluded from the conventional power sector with a different sectoral cap, so that banks are encouraged to lend to the sector. "If the government can allow the private sector to issue tax-free bonds, then companies will be able to access the larger pool of finance available in the country, and their cost of debt will be lower," says Mittal. Tanti suggests that financial institutions should earmark a portion of their lending corpus for renewable projects.
The other issue is the lack of incentive for industrial users to switch to non-conventional power. Take the case of solar power. It costs Rs 6.50 per unit compared to Rs 4.50 to Rs 5 per unit for power generated from coal. The government should encourage the use of renewable power by incentivising small and medium firms to draw power from clusters of wind and solar power, says Tanti, as the power is cleaner and uninterrupted. Ashish Khanna, CEO of Tata Power Solar, also stresses on the need to have large clusters. "Building a solar ecosystem through clusters will help in making the sector become self-sufficient and optimise the cost of infrastructure, making solar power more cost-effective," he says.
Addressing risks
There is also a need to incentivise equipment manufacturers, who are bearing the brunt of cheap imports, especially in the solar sector. More than 90 per cent of solar panels come from China, where an excess production capacity of such panels have rendered them as much as 50 per cent cheaper compared to those made in India. However, the government is unlikely to put curbs on such imports as lower prices help proliferate the use of solar panels in a faster manner.
The government has set lofty goals for itself and the industry with Power Minister Piyush Goyal saying it will make India the world's renewable energy capital. But targets and slogans apart, the real issues that beg attention are creating an increased awareness, making renewable projects more viable, creating better financing options and having a plan that encourages the setting up of solar and wind power clusters to tap the country's full potential. Addressing those will be key to the country's progress to a green future and meeting its energy needs.
TECHNICAL INSTITUTIONS
The following specialized institutions function under the administrative control of the Ministry:
Solar Energy Centre (SEC)
Solar Energy Centre (SEC), a research and technology evaluation facility of the Ministry, works on science and engineering aspects of solar energy technologies. The Ministry is upgrading Solar Energy Centre as a centre of excellence under the Jawaharlal Nehru National Solar Mission (JNNSM). Steps are being taken to upgrade the building infrastructure of SEC, on the basis of energy efficient green building design principles with incorporation of renewable energy and would be GRIHA rated. The SEC has received NABL accreditation.
The Centre continued its research activities for developing, testing and certifying solar thermal and solar photovoltaic devices, systems and components. It has been upgrading its testing equipment on a regular basis to meet national and international standards. Few major activities undertaken by the Centre includedevelopment of Concentrated Solar Thermal (CST) parabolic dish technology for steam generation, a modular central receiver concentrated solar power (CSP) plant for decentralized power generation, Solar thermal test and evaluation facility (STTEF) and installation of a state-of-the-art class 'A' Solar cell tester as well as Spectral Response (SR) system, performance evaluation of solar lanterns, home lighting systems, street lighting system, luminaries and charge controllers based on Light Emitting Diode (LED) as well as Compact Fluorescent Lamp (CFL), and design & development of batteries for solar photovoltaic applications.
SEC has developed a high efficiency solar thermal air conditioning system in collaboration with Central Mechanical Engineering Research Institute (CMERI), Durgapur, West Bengal and M/s Thermax Ltd., Pune, Maharashtra, at its campus with 50% financial support from the Ministry. This has cost effective high efficiency cooling engine with COP of 1.7, indigenous components for vapor absorption machine and medium temperature solar concentrating collectors with improved efficiency including integration of the components to achieve consistent performance of the system. This will be a landmark development in solar air conditioning technology.
Work on development of secondary solar cells and modules was taken up for making indigenous reference standards available to the manufacturers and users continued in CEL, IACS and SEC related to fabrication of appropriate cells and modules, calibration facilities and protocols. SEC continued to host visits of researchers, students, officials and other dignitaries from the country and abroad and the Scientists from laboratories in USA, UK, Japan and Germany visited SEC research facility to develop interactive programmes.
Centre for Wind Energy Technology (C-WET)
Centre for Wind Energy Technology (C-WET), Chennai is envisioned to serve as a technical focal point of excellence to foster the development of wind energy in the country. It is an autonomous institution under the Ministry of New and Renewable Energy. C-WET comprises of five units, functionally organized as Research and Development, Wind Resource Assessment; Wind Turbine Testing, Standards and Certification, and Information, Training & Commercial services. It has its test beds and experimental wind farm at Wind Turbine Research Station (WTRS), Kayathar, Tuticorin District of Tamil Nadu.
Each unit has a charter that fulfills overall objectives set for C-WET. The functioning of each unit is so organized that while keeping the independence at the operational level intact, they supplement and complement each other's activities to give holistic solutions to stakeholder.
l A wind energy forecasting project for a 600 kW experimental wind turbine which was taken up earlier by C-WET is at the verge of closure and results are being analyzed.
l Renewal of Provisional Type Certification of three wind turbine models was completed. In addition one certification project has been completed.
l Preparation of Indian Wind Atlas in association with Riso National Laboratory, Denmark using micro and meso scale models, and wind resource assessment studies at different locations, has been completed and the book has been published.
Sardar Swaran Singh National Institute of Renewable Energy (SSS-NIRE)
The establishment of this Institute is in its final stages. All the sanctioned posts (10 nos.) of the Institute have been filled up. Work for setting up of various biomass laboratories for R&D purposes and testing is in progress. The R & D activities have been initiated.
Financial Institution-Indian Renewable Energy Development Agency (IREDA)
Loans aggregating about Rs 3126.42 crore were sanctioned during the year 2010-11 compared to Rs 1823.91 crore in FY 2009-10. The loan sanctions would lead to the establishment of power projects of 639 MW capacity compared to the previous year capacity addition of 402 MW. The actual disbursements in 2010-11 were Rs 1224.17 crore compared to Rs 890. 03 crore in FY 2009-10. The cumulative sanctions and disbursements were Rs 15305.91 crore and Rs 7,868.25 crore respectively.
IREDA has been upgraded by the Ministry upon the recommendations of Department of Public Enterprises (DPE), Ministry of Heavy Industries & Public Enterprises from Schedule "C" Company to Schedule "B" Company.
Research & Development and New Technologies
Research & Development efforts of the Ministry are focused to lead to improvement of efficiency, cost reduction, reliability, durability of the new and renewable energy devices and systems. During the year 2010-11, 22 nos. of R&D projects have been recommended for approval. These projects include 13 nos of RD&D projects in technology demonstration of biogas and strengthening Test Centres of improved biomass cookstoves and demonstration of improved cookstoves and 7 projects in biofuel.
The projects taken up include advanced research and demonstration of higher efficiency solar cells, solar cells, solar thermal power generation, advance research in biomass energy including development of specifications, test protocols and standards of biomass energy system, hydrogen energy storage and fuel cells development, development and deployment of improved biomass cookstoves, etc.
INTERNATIONAL CO-OPERATION
International co-operation activities on development and deployment of new and renewable energy technologies were actively pursued on bilateral and multilateral platforms. The major activities included Minister level bilateral discussions with dignitaries from Australia, European Commission for Climate Action, Islamic Republic of Iran, Bangladesh, Norway, U.K., Denmark, Uruguay and Iceland. Interactions with multilateral organizations, i.e., National Renewable Energy Laboratory (NREL), USA, UNIDO International Solar Energy Centre (ISEC), Gansu, ETP Expert, discussions with Spain on policy experience in the context of newly launched National Solar Mission (NSM) and bilateral discussions about enhancing cooperation with Spain in the field of Renewable Energy as a follow up of the MoU signed by the two countries.
A Memorandum of Understanding (MoU) was signed on 19th May, 2010 between Ministry of New and Renewable Energy (MNRE) and Sweden for cooperation in the field of Renewable Energy.
Delhi International Renewable Energy Conference 2010 (DIREC) with the aim of up-scaling and mainstreaming renewals for energy security climate change and economic development was held in October, 2010 which was attended by Ministers and Government Representatives from 71 countries. During the sidelines of the above Conference, 24 bilateral meetings/call on meetings took place with the Minister of New and Renewable Energy. The Conference adopted a political declaration. All the participating countries welcomed the Delhi International Action Programme that encourages governments, international organizations, private companies, industry associations, and civil society organizations to take voluntary action for up-scaling renewable energy within their jurisdiction or spheres of responsibility.
