EN-January-2019

IN THIS ISSUE 16 COVER Power Minister calls the Budget as historic Consumers saving Rs 50,000 crore per year in electricity bills with LED bulbs BUDGET ANALYSIS AND REACTIONS FROM EXPERTS Tulsi Tanti Maxson Lewis Rakesh Zutshi Gagan Vermani Ranganath NK Founder, CMD, Managing Director, Managing Director, CEO & Founder, Managing Director, Suzlon Group Magenta Power Halonix Technologies MYSUN Grundfos India Private Limited Amit Gupta Nikunj Ghodawat Sabyasachi Majumdar Sanjeev Aggarwal Director of Legal & CFO, CleanMax Solar Senior VP & Group Head Founder and CEO, Corporate Affairs, - Corporate Ratings, Amplus Energy Solutions Vikram Solar ICRA 22 26 BRIDGE TO INDIA CEEW Indian RE could Moving ahead get stuck in the after a year of slow lane uncertainties Rooftop solar capacity addition India’s wind sector needs a major in 2019 is expected at 2,368 GW, policy push, eliminating the land and 49 percent higher than in 2018 evacuation bottlenecks to move out of its current rut 4 | Energy Next | January 2019

VOLUME 9 | ISSUE 03 | January 2019 www.energynext.in 30 ICRA Focus on rural electrification and renewables to continue The government might augment the budgetary allocations towards its flagship schemes - Deendayal Upadhayaya Gram Jyoti Yojna and Integrated Power Development Scheme 34 43 BUDGET 2019-20 WOMEN ACHIEVERS Budget The role of women Expectations in the renewable energy sector Since Budget 2019-20 is out in open, it would be pleasure in Women can be key players in know what was on their wishlist the rapidly expanding renewable energy space, and the sector can play a crucial role in increasing their participation in a growing economy 45 61 ARTIFICIAL INTELLIGENCE IEA Artificial Intelligence Piyush Goyal launches can help wind the IEA’s Report ‘The turbine erosion Future of Rail’ problem The railway’s successful effort to convert diesel locomotives to electric locomotives is truly innovative The erosion of materials used in 64 wind turbine blades due to the effect of weather conditions is a MNRE problem that applies to the whole wind energy sector Ministry to announce solar manufacturers for government projects The government will soon issue a list of solar manufacturers and models that worked for government-owned projects January 2019 | Energy Next | 5



From Mega watts to Giga watts Envisioning a Greener Tomorrow with Renewable Energy ENCOURAGING GREEN-POWER TODAY ENERGISING INDIA’S TOMORROW Energy for Ever Loan Sanctions (Rs. Crores) (2012 - 2017) Loan Sanctions Gol’s target of 5x increase 4th largest wind 12000 7,806 10,199 in renewable energy capacity installations in the 10000 2015-16 2016-17 to 175,000 MW by 2022 world 8000 6000 4000 3,747 3,818 4,540 2000 2012-13 One of the largest CO2 2013-14 2014-15 solar programs in the world 0 All IREDA funded projects with planned capacity of are helping in avoiding Funded more than 2,382 renewable energy projects 100 GW by 2022 CO2 emissions Indian Renewable Energy Development Agency Ltd. (A Govt. of India Enterprise) A Mini Ratna PSU under Ministry of New and Renewable Energy www.ireda.in Corporate Office: 3rd Floor, August Kranti Bhawan, Bhikaiji Cama Place, New Delhi 110 066, Tel: +91 11 26717400 - 26717412 Registered Office: India Habitat Centre, East Court, Core-4A, 1st Floor, Lodhi Road, New Delhi 110003, Tel: +91 11 24682206 - 24682219

letters to the editor Thank you ! I am happy to see the variety Enabling Investment Environment in content and topics in the magazine. Thank you for the Publications Director Anupam Daftuar excellent article on GSH India Associate Editor Anurima Mondal and the turmeric project, it Design Flying Tusker Media looked really good. All the best to Energy Next! Marketing Manager Aditya Daftuar ll Cathy Hayward, Subscription & Dispatch Anil Patwal Managing Director, Magenta Associates Superb selection of Looking forward to For the latest Renewable Energy news. articles in year-end more such editions log on to www.energynext.in edition Energy Next is printed by R Ramprasad and published The year-end edition was It was interesting to read Next has touched the by R Ramprasad on behalf of well-conceived covering the interview of NREDCAP sensitive topic of ‘Gender every aspect of the RE VC and MD M Kamalakar and climate change’. Climate Focal Point Media Services Pvt Ltd sector. It brought to fore Babu and DSIR MD change has differentiated #407, Fifth Floor, imminent issues and Jaiprakash Shivahare. We impact on men and women; challenges of the sector need to increase local women are more vulnerable Pavani Plaza, Khairatabad, which require immediate manufacturing and for to climate related health Hyderabad - 500 004, Telangana, India. attention. The edition has that, the state governments risks. Like every other CIN No.: U74999AP2010PTC070645 charted the milestones should be at par with the sector, women should come Focal Point Media Services Pvt. Ltd. is a joint achieved in the RE sector centre. Hope to read more forward and establish their venture of Gateway Media Pvt. Ltd, and Invision wisely and the journey such interviews of state presence in the renewable Communications & Research Pvt. Ltd, and printed at looks incredible. It is power secretaries in future. energy sector as they have heartening to see that the ll Prerna Bansal, Noida a comparative advantage M/s. Kala Jyothi Process Pvt. Ltd. country is making progress. in promoting clean energy 1-1-60/5, RTC Cross Roads, Musheerabad, ll Sangeeta Mishra, Kolkata Women in clean access through creating Hyderabad - 500 020, and Published at Focal Point energy access distribution and servicing networks in rural areas. Media Services Pvt. Ltd. I am happy that Energy llShama Parveen, #407, Fifth Floor Pavani Plaza Khairatabad, Jharkhand Hyderabad - 500 004, Telangana, India. Tel: +91 40 233 000 61, 233 006 26 Feedback: Please send your feedback and comments to +91 40 233 006 65 [email protected] Subscribe: Tel: +91 11 2642 4071/72 e-mail : [email protected] Write to: Focal Point Media Services Pvt. Ltd. #409, Mansarovar Building, 90 Nehru Place, New Delhi-110 019, INDIA Tel: +91 11-26424071/73 Fax : + 91 11-46507580 advisory board Prof Rangan Banerjee Arun Gupta Dr Praveen Saxena K P Sukumaran S Chandra Sekhar Yogesh Mehra Please note: Views expressed in the articles are those IIT-Mumbai Managing Director Former Advisor Former Advisor Managing Director Managing Director of the Authors and may not be shared by the editor or Him Urja Pvt Ltd MNRE MNRE Wind World (India) Ltd members of the editorial board. Unsolicited material Bhoruka Power Corpn Ltd will not be returned. Advertise Contact Write to Copyright: No material published here should with us Aditya Daftuar Focal Point Media Services Pvt. Ltd. be reproduced in any form without prior written Marketing Manager 409, Manasarover Building permission from Focal Point Media. +91 8860636021 / +91 98-71-048271 90, Nehru Place [email protected] New Delhi - 110 019 8 | Energy Next | January 2019

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national IREDA GM (HR) conferred with ‘Best HR Professional of the Year’ award Indian Renewable Energy Development Agency Ltd. (IREDA) GM (HR & CSR) Dr. P. Sreenivasan received the ‘Best HR Professional of the Year’ award by HR Association of India. The award was presented by Minister of State for Women & Child Development Dr. Virendra Kumar in the presence of The Ambassador- designate of the Lebanon, Rabie Narsh to Dr. P. Sreenivasan in an award ceremony held recently in New Delhi. Dr. Sreenivsan is an active member in various forums. He is also a governing body member of Power HR Forum and Power Sector Skill Council. Bureau of Energy Efficiency and CPWD sign MoU Power Minister on promoting energy efficiency in buildings administers oath of office to new CERC Member The Bureau of Energy Efficiency presence of Power Secretary Ajay Kumar Indu Shekhar Jha (BEE) and the Central Public Works Bhalla and other senior officials of Power Department (CPWD) signed a memorandum Ministry, BEE and CPWD. This association Power minister RK Singh of understanding (MoU), kick starting of BEE with CPWD would establish new administered the oath of Office cooperation in building energy efficiency. benchmarks for energy efficient buildings in and Secrecy to Indu Shekhar Jha. Jha According to the MoU, BEE and CPWD the country and will support the government’s was appointed Member of Central will cooperate on promoting designs and vision for achieving energy security, economic Electricity Regulatory Commission construction of Energy Conservation Building growth and environmental sustainability. (CERC) vide order dated January 4. Code (ECBC) compliant new buildings, star Prior to this, he was holding the post of rating of CPWD managed buildings across CMD, Powergrid Corporation of India the country with no registration or renewal Ltd (PGCIL) since 2015. fee, awareness on energy efficiency in building sector and support for capacity building of In addition, Lalchharliana Pachuau CPWD officials in ECBC. was appointed as member, Joint Electricity Regulatory Commission for The memorandum was signed by BEE Manipur and Mizoram from Mizoram Director General Abhay Bakre and CPWD side. Pachuau has been appointed for Director General Prabhakar Singh in the a period of five years or till the age of 65 years whichever is earlier in ConabrienneetwaapbplreoevneesrMgyoU between India and France accordance with the provisions in the The Union Cabinet chaired by Memorandum of Agreement signed Prime Minister Narendra Modi technical bilateral cooperation on new by the State Governments of Manipur and renewable issues on the basis of and Mizoram. He has worked as has approved the Memorandum of mutual benefit, equality and reciprocity. Chief (Engg) in JERC for Manipur & Understanding (MoU) between India and The technical cooperation will cover Mizoram since July 2013. France on bilateral technical cooperation joint research working groups, pilot in the field of new and renewable energy. projects, capacity building programs, The MoU was signed on October 3, 2018. study tour, case studies and the sharing of India and France aim to establish experience/expertise. The MoU will help the basis for a cooperative institutional in strengthening bilateral cooperation relationship to encourage and promote between India and France. 10 | Energy Next | January 2019

NEWS Discoms ink pact with SECI for wind energy to procure 250 MW, whereas BYPL had signed for 150 MW of wind BSES Rajdhani Power Limited energy. Since October 2018, 50 MW (BRPL) and BSES Yamuna of energy started flowing while Power Limited (BYPL) have signed 50 MW will be available in next agreements with Solar Energy few months. “Renewable energy is Corporation of India to procure critical for sustainable growth and 200 MW of wind-power. With BSES is alive to it while ensuring this agreement, the 100-MW each there is minimal burden on the power will be available to the BRPL consumers. This allocation of wind and BYPL from FY 2020-21 for 25 power is once again a testament to years at a tariff of Rs 2.84 per unit, our efforts,” said a spokesperson including the trading margin. from BSES. The two Delhi discoms will get total wind energy of 600 MW. BRPL had previously signed agreements RK Singh inaugurates smart meter project in Arun Jaitley NWDMC areaith EESL installing 50,000 smart inaugurates electric meters in New Delhi Municipal company (DISCOM) in India to vehicle charging station implement 100 per cent smart metering Council (NDMC) area; NDMC has solution. The adoption of smart meters AMarking the adoption of e-mobility, the become the first distribution company will enhance consumer convenience and finance ministry and its department of (DISCOM) in India with 100 percent rationalise electricity consumption. economic affairs has signed an agreement smart metering solution Smart Meter Speaking on the occasion, Singh said, with Energy Efficiency Services Limited feature in NDMC’s Mobile App also “Smart Meters will revolutionise the (EESL) for deployment of 15 electric vehicles launched MoU signed to install public power sector through their vast cascade of for their officers. Also, 28 charging points e-charging stations in NDMC Area benefits including reduced AT&C losses, (24 slow charging points, 4 fast charging Power Minister RK Singh announced better health of DISCOMs, incentivisation points) have been installed at North Block for the completion of the project to replace of energy conservation and ease of bill charging these vehicles. With these 15 EVs, 50,000 conventional electricity meters payments.” EESL and NDMC also signed an department of economic affairs is expected with smart meters in the NDMC area MoU to install public e-charging stations. to save over 36,000 litres of fuel every year implemented by Energy Efficiency The initiative is undertaken to collaborate and will also lead to a reduction of over 440 Services Limited (EESL). With this, on promoting Electric Vehicles (including tonnes of CO2 annually. NDMC has become the first distribution two wheelers) in the NDMC area. Speaking on the occasion, finance minister BHEL wins largest order for solar photovoltaic plants Arun Jaitley, said, “Electric mobility, is an Bharat Heavy Electricals Limited (BHEL) has attractive, sustainable and profitable solution won an order for installing 129 MW Solar solar panels using high-efficiency cells at its to mitigate the climate change and to reduce Electronic Systems Division, Bengaluru. It the risk posed by vehicular emission to public Photovoltaic (SPV) power plants from Singareni provides complete EPC solutions for off-grid health. EVs have the potential to support Collieries Company Limited. Valued at Rs. 5650 as well as grid-interactive SPV power plants in India’s growth by enhancing manufacturing, mn, this is the largest SPV power plant order different parts of the country. job creation, and technical capabilities. We won by BHEL. With this order, its solar portfolio are glad to be a part of India’s mission of rapid has increased to 710 MW. BHEL has established adoption of e-mobility.” capability in various segments of the PV value chain such as solar cells and PV modules. The January 2019 | Energy Next | 11 company has contributed to the ‘Make in India’ initiative for promoting renewable energy based products. It has also assembled space-grade

State Andhra Pradesh inks pact with Adani to set up RE powered data centres The Andhra Pradesh and Adani group recently inked a pact to build data defence business at Telangana, our vision centre parks around Visakhapatnam. is to create stellar assets across the length The memorandum was signed by Adani and breadth of the country,” said Adani Group chairman Gautam Adani and group chairman Gautam Adani. With an Andhra Pradesh principal secretary investment of Rs 70,000 crore, the data (Information Technology) K Vijayanand centre parks are expected to create over in the presence of Chief Minister N one lakh employment over the next 20 Chandrababu Naidu and IT Minister years. The parks will be integrated with Nara Lokesh. Powered by renewable a cable landing station, taking advantage energy, the data centre parks will have of the states long coastline to help capacities up to five GW. provide required global connectivity and redundancy, enabling India to manage “From core infrastructure projects exponential growth of data. in Uttar Pradesh to the rollout of the Delhi Vidhan Sabha turns green; installs HIAL University in solar plants Leh gets its solar plant Delhi Vidhan Sabha has installed 100kW solar power plant at its rainwater harvesting system was also Waaree Energies unveiled its 25 inaugurated - five pots with a collective KW rooftop solar project at complex in North Delhi’s Civil Lines. The capacity of 4.4 lakh liters were installed Himalayan Institute of Alternatives solar voltaic plant which costs Rs 7.35 lakh, in the premises. “The second phase of (HIAL). The project is done by Waaree is expected to meet demand of 25 percent of 100 kW of solar panels will be installed Energies under its CSR programme and the Delhi Legislative Assembly building and in Delhi Vidhan Sabha premises soon,” is part of its ongoing efforts to bring save Rs 10 lakh annually. These plants have confirmed Goel. Over the last few months, the current wave of solar revolution a lifespan of 25 years. the state government has taken various to Ladakh. HIAL has established its The plant was inaugurated by state steps to increase the adoption of renewable position as a renowned institute in power minister Satyender Jain in presence energy in the region to combat the toxic air the region, founded by the visionary of Speaker Ram Niwas Goel and several quality and make the national capital more Sonam Wangchuk. HIAL is expected MLAs. Along with the solar plant, a sustainable. to save close to Rs 2 lakh per year. The installation of this project is of critical Ladakh to get world’s largest solar power plant importance as solar power brings much Ladakh will soon be home to world’s needed respite to the people of Ladakh, largest solar plant with mammoth Nagar and located 254 km away from since the region is cut off from the power generation capacity. Solar Energy district headquarter at Suru in Zanskar. Kashmir valley for the most of winter. Corporation of India (SECI), under the “We have addressed issues faced in renewable energy ministry, is promoting previous tenders and taken into account The project has installation of 20 KW 5,000 MW in Ladakh. Besides this, a 2,500 the challenging geography,” said SECI Waaree 325 Wp modules, which will MW solar power project will also be set director (power systems) SK Mishra. help meet the power requirements of up in Kargil. According to the reports, the the campus, whereas the 5 KW Merlin solar power projects in Ladakh and Kargil – Flexible modules will power the are slated to be completed by 2023 at an Greenhouse shelter. Waaree Energies not estimated investment of Rs 45,000 crore. only donated the panels, but also ensured their implementation and commissioning. Ladakh project will be built at Hanle- The local climatic conditions, especially Khaldo in Nyoma at a 254 km distance during the cold winters, make it from Leh. The power generated by the imperative to have solutions that ensure project will go to Kaithal in Haryana. The self-sustainability within the region with Kargil project will be will be connected to respect to energy. Solar power presents the power grid at New Wanpoh near Sri the optimal option as Leh enjoys clear skies with a high irradiation. 12 | Energy Next | January 2019

NEWS Gujarat inks pact with Netherlands deUglreePaacndtgtrleiifftnosicerRaomtsino1en1e,5t0i00n0gpcerrocreent Gujarat has signed six MoUs with Netherlands including companies to invest through its business- Uttar Pradesh will get around Rs 1,500 friendly policies and rapid industrial crore for finishing the household wind and solar energy sectors. Other growth. The delegation led by minister electrification drive within the stipulated fields include waste to energy, smart of taxation and customs, Netherlands deadline of December 31. With the city, agriculture and medicine. Chief Menno Snel showed a keen interest identification of houses with illegal Minister Vijay Rupani welcomed the to invest in various fields including connections, the state was able to reduce its representatives of Netherlands and renewable energy. targets and fulfil them. discussed about working for enhancing technology to realise the Kalpsar Yojana The Pradhan Mantri Sahaj Bijli Har and development of Dholera SIR. He Ghar Yojana, or Saubhagya, envisages further proposed possibilities in other providing energy access to all by March. sectors such as port development, Additional 15 percent grant is to be given maritime, and drainage and appreciated by the Centre as incentive to the states that the innovations of Netherlands. completed the scheme by December 31. Rupani further added that the state has The scheme is being funded to the extent provided a large market of international of 60 percent by central grants, 30 percent by bank loans and 10 percent by states. PKPMargdiled–iLcaethestr2a2n0smkVissSiroinnalignaer-toAtluhsetnenatgio-nDrass- All the states have achieved 100 percent rime Minister Narendra Modi dedicated POWERGRID. In this project, the four new household electrification except Rajasthan, the 220 kV Srinagar- Alusteng - Drass- State-of-the-Art 220/66 kV Gas Insulated Assam, Chhattisgarh and Meghalaya. Since Kargil – Leh Transmission System to the Sub-stations built at Drass, Kargil, Khaltsi the launch of Saubhagya, 74.4 lakh willing nation, a step that would ensure quality and Leh will help to ensure 24x7 quality households have been electrified and the power supply to Ladakh round the year. This power in all weather conditions. state government has declared saturation of would give huge boost to the tourism sector all 75 districts. The state has launched a door- and enhance socio-economic development to-door campaign for any of those left out in of Ladakh. un-electrified households. The Rs. 2266 crore project will result in minimizing the massive use of diesel generating sets during winters, and thus will help in protection of beautiful environment of pristine Ladakh region. Built at a height of around 3000- 4000 meters, this approx. 335 km long transmission line has been constructed by Solar plant to be installed in Haryana Gaushalas All the cowsheds in the state will state in the country to launch such a now be powered by solar energy. scheme and power its cowsheds by solar The solar plants will be installed under power. While Rs 2 per unit will be charged Mukhya Mantri Gaushala Jagmag for 1000 units, rest of the units will be Yojna. Around 90 percent assistance charged at the rate of domestic houses. He will be given to cow’s by the Gau-Seva further said that a Bio CNG plant will be Commission. This was announced installed at Kamdhenu Dham Gaushala by Haryana Gau-Seva Commission in Carterpuri village of Gururgram. The Chairman Bhani Ram Mangla during a tender for this has already been issued by press conference. Municipal Corporation Gurugram. Haryana will reportedly be the first January 2019 | Energy Next | 13

INTERNATIONAL Toshiba to Supply MicroGrid Energy Management System to Maldives T oshiba Energy Systems & Solutions Corporation or Toshiba of the country, which faces a crisis of ESS has won an order to supply the rising sea levels due to global warming, Micro Grid Energy Management is promoting the introduction of solar System (μEMS) to “Preparing Outer power systems to promote a low carbon Islands for Sustainable Energy society and to reduce the fuel cost for Development (POISED) Project” power generation. As a promotion, the in the Republic of Maldives from government has already installed solar Nishizawa Limited. The system will power systems in the Hithadhoo Island in start operation on Hithadhoo Island of 2017. Since the island has an independent Addu Atoll in 2020. power grid, μEMS that maintains a balance between the supply and demand Almost all of the Maldives’s current of power including solar power is power generation capacity is from necessary for the island to operate the diesel generators. The government solar power systems more efficiently. Google expands RE investments into Taiwan Budweiser delivers Tech giant Google has revealed its plans to a wind-powered launch a solar energy project in Taiwan to in America and Europe, the company is message support its local data center. With this project, already making headlines for being the Google is the first non-utility company in largest corporate purchaser of renewable Budweiser released its Super Bowl Taiwan to directly buy renewable energy. energy. Google also recently announced LIII commercial, bringing its The company has announced its plans to set its largest solar deal to date: two major long-term commitment to renewable up a 10-megawatt solar farm in Tainan City, solar farms in Tennessee and Alabama. electricity to the biggest stage of the Taiwan. The site is around 100 kms south of year. Last year, Budweiser announced Google’s Changhua County data center. its commitment to be brewed with 100 percent Renewable Electricity from The project will bring Google closer Wind Power, and to celebrate, the ‘King to its ambitious target of powering all of of Beers’ will showcase this commitment its data centers with renewable energy. in a commercial titled, “Wind Never Felt With more than 30 solar and wind deals Better,” featuring the iconic Budweiser Clydesdales alongside wind turbines, EnBW to partner in US offshore wind energy all set to the soundtrack of Bob Dylan’s “Blowin’ in the Wind.” VGerman utility EnBW is all set to have each joined hands with Shell to be an important partner in the US’s make bids for U.S. offshore wind capacity. “We are proud to be the first offshore wind sector. It has formed a joint EnBW is aggressive in its offshore wind Anheuser-Busch brand and the first venture with project developer Trident expansion, with installed capacity of major beer brand to be brewed with 100 Winds to cater to the American west 336 MW and a further 609 MW under percent renewable electricity from wind coast. “We’re open to partnerships also in construction. Last year, it became the first power and hopefully we can use this the offshore business,” said EnBW-Chef German utility to take stakes in offshore moment to inspire others in our pursuit Frank Mastiaux. wind projects in Taiwan, for a more sustainable future,” said Ricardo Marques, VP of Marketing Core “At the moment, it is very difficult & Value brands at Anheuser-Busch to develop new offshore wind parks in our home market Germany as well as in To further emphasise the importance the remaining parts of Europe. We want of Budweiser’s commitment, the to continue to grow and are looking company is donating clean electricity to for attractive foreign markets in a very Atlanta to power the city the week of the selective way,” he added. Super Bowl. By donating this electricity, Budweiser is offsetting 100 percent of Meanwhile, EDF and EDP Renovaveis the electricity used to power Super Bowl week with clean, renewable electricity. 14 | Energy Next | January 2019

Sustainability-Focused Education Allows NEWS Students to be “System Thinkers” 2RC0eo1na8el wInabGleesrmOauntpyaIcne Defying conventional education a sustainable path -- a key element to As of 2018, renewable energy modes, founders of the Green solving current global issues. In order accounted for a higher percentage School put the notion of sustainability to achieve this goal, educators from of electricity generated in Germany as the centerpiece of their educational the school focus on helping students than coal. The combined output from philosophy. Wall-less classrooms understand the importance of reflecting solar, wind, biomass, and hydroelectric allow students to connect with nature on mistakes, asking the right questions generation units rose 4.3 percent last directly while environment-friendly rather than giving the correct answers, year to a total of 219 terawatt hours. infrastructures enable students and additionally offer students choices to discover the significance of in their learning journey. Germany produced 542 terawatt sustainability on a daily basis. hours of electricity last year from all To make the ideas practical, teachers sources. Renewables accounted for just According to Glenn Chickering, one also educate students to become “world- over 40 percent of that total, while coal of the founding faculty members of the ready”. According to Chickering, a was responsible for 38 percent. In 2017, Green School, the educational goal of teacher is “a mentor, a guide, a coach, renewables were responsible for 38.2 percent the Green School is to teach students to and most importantly, a co-learner” who of all electricity produced in Germany. Back become “system thinkers” who aim to creates a structure in which students are in 2010, that number was only 19.1 percent. steer the world, “be they environmental, able to explore their interests freely and economical, societal or personal”, to “stretch themselves as a learner”. Bruno Burger, author of the Fraunhofer study, said the output from renewable sources should stay above 40 percent in 2019. “We will not fall below the 40 percent in 2019 because more renewable installations are being built and weather patterns will not change that dramatically,” he said. $25m approved for renewable energy projects across sub-Saharan Africa TThe African Development Bank Group has approved an equity and biomass. These would include decentralised energy projects (commercial investment of up to $25 million in and industrial solar, mini-grids and solar ARCH Africa Renewable Power Fund home systems companies) besides grid- (ARPF), a $250 million private equity connected independent power producers fund for renewable energy projects (IPPs). across sub-Saharan Africa. The fund “Energy investments in Africa are will add 533MW RE installed capacity constrained by limited well-structured, and provide equity for the development bankable projects, as well as by and construction of a dozen greenfield unavailability of risk capital. Renewable renewable energy projects in sub- technologies require additional support to Saharan Africa. be fully competitive over fossil fuel-based ARPF projects will focus on various energy generation,” said Amadou Hott, the renewable energy segments such Bank’s Vice-President for power, energy, as wind, small hydro, geothermal climate change and green growth. January 2019 | Energy Next | 15

COVER STORY | BUDGET 2019-20 Power Minister calls the Budget as historic Consumers saving Rs 50,000 crore per year in electricity bills with LED bulbs “I nterim Budget 2019-20 is India’s electrification success found historic, it’s people friendly a special mention in the Budget and forward looking. It speech. Over 143 crore LED bulbs have provides assistance to all been sold with the combined efforts of sectors which need assistance at the same the government and private sector time maintaining fiscal prudence”, said power minister RK Singh. He expressed He also thanked the taxpayers and middle class families. hope that the Budget would be able to saying, “Your tax pays for the electricity He also stressed upon Electric Vehicles bring smile to every face. connections to the poor who lived in darkness for generations”. and Renewables to make India a pollution India’s electrification success found free nation. Citing the International Solar a special mention in finance minister’s Commenting on UJALA scheme, the Alliance as example for India’s commitment Budget speech. He said, “Till the year 2014, finance minister said that 143 crore LED bulbs towards clean energy, the Finance Minister about 2.5 crore families were forced to live have been sold with the combined efforts of said that, “India’s installed solar generation the life of 18th centuary without electricity. the government and private sector and this has capacity has grown over ten times in last Under ‘Saubhagya Yojna’, we provided resulted into a savings of approximately Rs. five years. This sector is now creating lakhs free electricity connection to almost every 50,000 crore per year in electricity bills of poor of new age jobs.” household. By March, 2019, all willing families will get electricity connection.” 16 | Energy Next | January 2019

Budget 2019-20 India’s installed solar generation capacity has grown over ten times in last five years. Renewables are becoming a major source of energy supply for electric vehicles January 2019 | Energy Next | 17

Cover Budget gives a boost renewable energy projects. to ‘Make In India’ However, it will augur well for the industry if the FM will consider the following in the full budget: Tulsi Tanti, Founder, • Re-introduction of Accelerated Depreciation Chairman and Managing and 80IA for renewable energy projects - Director, Suzlon Group Accelerated depreciation @80 percent and 80-IA benefits should be re-introduced for The interim budget is pro- windmills and solar projects to retail investors growth and provides a massive boost to propel with project size less than 25 MW. This will also domestic consumption through a) Income Tax benefit Central Public Sector Enterprises (CPSEs) sops for nearly 30 million income taxpayers • GST Related - GST on services relating to b) Improved financial health of 120 million setting up, power evacuation and operation & marginal farmers. The budget also gave a boost maintenance services (OMS) of a Renewable to Make In India by focusing on manufacturing Energy Project should also be kept at 5 percent and enhancing infrastructure and rural (that is the same GST rate as applicable on connectivity. It is aligned to the objective of renewable energy equipment) from the present 18 overall economic growth, nation building and percent job creation. This budget takes into account • Export incentive - To achieve a manufacturing various stakeholders across the spectrum, target of 10,000 MW+ per annum, by increasing right from the agriculture sector, social sector, export incentive from 2 percent to 6 percent and industry, young India and senior citizens. to make Indian exports competitive in the global market The RE industry welcomes the government’s • Concessional Rate / Preferential Rate of focus on clean energy being the major source Finance – 2 percent Rebate - the RE sector of energy security for the country. The Prime is growing, however cost and availability can Minister’s mission of bringing about an potentially impact viability, hence concessional electric vehicle revolution to India by 2030, rate/ preferential rate of Finance is required with with renewable energy will be used to power 2 percent rebate EVs to tackle the issue of climate change is a • Overall the measures on ease of living, job great initiative and will boost the clean energy creation, encourage consumption, digital, clean market. Also, we hope that with the capital and green India, it is definitely a well thought infused in the banking sector and banks coming out budget. out of PCA will help in infusing more funds to Budget is consistent special push for local battery manufacturing on its EV push to counter China’s hold on the global battery manufacturing monopoly. Until now, vehicle Maxson Lewis, Managing parts and components imported for assembly Director, Magenta Power in India attracted import duty of 15 to 30 percent. As an EV community we are happy that electric vehicles were mentioned The budget is consistent on its EV push as one of 10 dimensions of focus till 2030. as it wants to move away from fossil fuels While no specific tax structures or rebates as quickly as possible to reduce India’s were mentioned in the budget, this was quite dependence on crude. Overall, the 2019 expected since a day ahead of the budget the budget has reiterated its goal of passenger government via the Central Board of Indirect vehicle electrification by 2030. What would Taxes and Customs (CBIC) has carved out a have made a big positive impact however separate category for parts and components would have been a simple announcement for electric vehicles for which customs duty of removal of tolls for electric vehicles has been lowered to 10-15 percent, with a across India. This would have certainly given an emotive push for adoption of electric vehicles in India. 18 | Energy Next | January 2019

Budget 2019-20 Supports rapid agriculture and infrastructure for a holistic development of the development of the nation. Railways, economy roadways, airways along rail, road linkages, connectivity infrastructure, and 99 city Smart Rajeev Sharma , Head- Cities Plan excites us. Also, the Rs.50 lakh crore Corporate Services & Strategic investment plan for improvement and proper Planning, Mitsubishi Electric completion of the ongoing and upcoming India Pvt. Ltd infrastructure projects is a welcome step, we The interim budget for 2019-20 seems to be a are hopeful that the budget supports rapid balanced budget with support to sectors like development of the economy. sMtraernkegttshwill gain measures to jump-start the real estate business. As real estate is one of the major Rakesh Zutshi, MD, Halonix employers, it may also kick start jobs creation Technologies Private Limited which has been of great concern. A real estate revival will have a positive cascading With the middle class with effect across industries. There are numerous income up to 5 lakhs getting a tax break, it will measures for MSME which also are positive provide discretionary income and hopefully for small industries. There is a reason to be spur consumption and growth. There are also optimistic and markets will also gain strength going forward. Lissoaslcuakeropfrofijneacntscisntigllfaonr demanding that solar loans be treated like home loans, as an instrument for individuals Gagan Vermani, CEO & to claim a tax rebate. But it would seem the Founder, MYSUN industry will have to wait for that. There is some indirect relief to MSME units registered For the second year in a row, with the GST in the form of a 2 percent solar was a no-show at the 2019 Interim Union interest rebate on fresh or incremental loans Budget, apart from a sole mention regarding up to a limit of Rs 1 Cr. This may incentivise the installed solar generation capacity addition some of these MSMEs to utilise this facility over the past five years. While prices for solar to install solar systems on their rooftops and have continued to drop over the last year, it’s thereby reduce their energy bills. Overall, it’s the lack of financing for solar projects that have a very positive budget for the farmers, the hit the industry hard. And this year’s budget has middle class and the small traders/industries, missed addressing that yet again. We have been with an eye on the upcoming general elections. Budget reinforces the direction to make India a global leader in the solar power Ranganath NK, Managing agenda to reduce climate change by setting Director, Grundfos India. up the International Solar Alliance treaty. We This year’s union budget is good are happy to note the solar power generation for the common man despite in the last five years has increased by 10 times. it being an interim budget. The This will encourage further adoption of solar government has not only revitalised its vision for installations and will also create lakhs of job the infrastructure sector but has also strengthened opportunities in the sector. We hope that this its commitment to promote renewable energy. will also lead to the implementation of solar The budget reinforces the direction to make India a pumps in the agricultural sector, thereby global leader in solar power by actively leading the strengthening the country’s water and energy security further. January 2019 | Energy Next | 19

Cover Cfoluimnadtme cehnatinogneinissthueesbhuadrgdelyt water bodies, which the budget could have addressed. The Energy and Resources Institute (TERI) Though it is an interim budget, the Establishment of a new department for government announced some new schemes fisheries and Rashtriya Kamdhenu Yojana (RKY) that could have a far reaching impact. An appear as good steps. But simply establishing important one is the scheme of cash transfer a department might not help to bring to farmers. This could have been made sustainability in fishing unless the key issues conditional to performance on specific state- such as tackling overfishing or management relevant issues such as linking it to land of mechanisation of fishing vessels are improvement, water use efficiency or region addressed. RKY can also have risks, and it specific performance like management of needs careful planning and implementation crop residue in states like Punjab, Haryana to ensure that the activities of RKY do not and UP. This could have also been linked to conflict with our bio-diversity objectives and MGNREGA (e.g. by provision of irrigation on protection of indigenous varieties. private holdings) thereby, reducing the fiscal burden of the government or with agro- The pension scheme for unorganised workers forestry, addressing an important part of is to be appreciated and also the increased India’s Nationally Determined Contribution allocation for micro irrigation. The budget basis the Paris Agreement. claims that 8 crores households will have Environment and climate change issues hardly LPG connection under the UJJWALA scheme. found mention in the budget. The Finance However, there is evidence that refill rates of Minister emphasised the rejuvenation of rivers cylinders are very low due to cost considerations and water bodies as among the grand vision and that many households continue to depend for the next ten years. Increasing the use of on biomass in spite of having a LPG connections. bio-fertilizers and bio-pesticides and reducing As a fossil fuel LPG is not a long term solution; the use of chemical fertilizers and pesticides electricity from renewable sources remains the is an important aspect of cleaning rivers and long term solution and for the very poor, and for those whom affordable and reliable electricity is still far off, clean biomass is the best way forward in the short to medium term. Budget provides no upon the Parliamentary Standing Committee ray of hope recommendation for the reinstatement of funding for renewable energy projects Amit Gupta, Director of Legal & through National Clean Energy Fund Corporate Affairs, Vikram Solar (NCEF), which was diverted towards GST compensation fund since 2017. In a situation where there is scarcity of financing options for renewables and manufacturing units are dying a slow death, the budget provides no ray of hope. The industry was expecting a policy direction from the government to promote manufacturing, especially in the renewable energy sector in the background of job crisis, which India is facing right now. Surprisingly, this was completely missing from the budget. Budgetary allocation for the MNRE remains approximately similar to capital allocated in FY 2017-18, standing at Rs 5200 crore. Unfortunately, the government did not act 20 | Energy Next | January 2019

Budget 2019-20 Industry expects a powered by renewable energy. While long term road map the budget has confirmed the role of renewables in its vision of a clean and Nikunj Ghodawat, CFO, green India, and states have started CleanMax Solar showing enthusiasm in adoption, a long term road map will be expected by the It is good to see that industry. renewable energy remains a priority for the government and has been prominently highlighted in India’s 2030 Vision. Electric vehicles have also been brought into focus. What we will wait to see is the finer print on the renewable industry like uniformity in policies, imposition of duties, ease of financing etc. to reduce dependence on deplete-able energy resources, thereby fueling adoption of renewable energy. For electric vehicles to be a norm of the future, policies should include how EVs can be ‘Saubhagya’ scheme renewable energy sector has remained is likely to improve similar in FY 2019-20 and thus provides energy demand in the continued policy support towards country meeting funding requirements for the renewable energy segment, including Sabyasachi Majumdar, Senior that for building a green energy Vice President & Group Head - transmission corridor. Corporate Ratings, ICRA The higher budgetary allocation in FY 2019- 20 on schemes such as DUGJY and IPDS are a positive for distribution utilities, as it would enable them to reduce distribution losses in their license areas. The continued thrust towards ensuring electricity access to all rural households under ‘Saubhagya’ scheme is likely to improve energy demand in the country, which is a positive for generating companies/ IPPs. The budgetary allocation towards mEleuccthrinceveedheidclreessapnitderooftop plants to provide the Sanjeev Aggarwal, Founder and vehicles and rooftop plants are going CEO, Amplus Energy Solutions to provide the much needed respite to The budget of 2019 has the deteriorating environment in our once again shown the urban areas. We look forward to concrete commitment that the government has for steps for promotion of rooftop solar and improving the environment by promoting electric vehicles so that every common clean energy and electric vehicles. Electric person starts adopting these life- transitioning technologies. January 2019 | Energy Next | 21

BRIDGE TO INDIA Indian RE could get stuck in the slow lane Rooftop solar capacity addition in 2019 is expected at 2,368 GW, 49 percent higher than in 2018. The market will be dominated by C&I consumers as activity in other segments stays slow, predicts Bridge to India 2 018 was not a memorable year ll Predictions for 2019 National Storage Mission) will be seen. for the Indian RE sector. One • There should be good news on the • Floating solar is expected to make silver lining was the surge project implementation front. Dictated major strides. Recent tender results in auctions as 20,436 MW of purely by tender time-tables, capacity indicate a sharp dip in tariff premium projects were awarded (+174 percent addition should jump from 10,560 MW over ground-mounted plants. Falling cost y-o-y) notwithstanding multiple tender last year to 15,860 MW. Most of the uplift and constraints in land and transmission cancellations. Most of the pain was self- will come from utility scale solar although capacity would force policy makers inflicted. Relatively minor issues such as rooftop solar is also expected to register to prioritise floating solar. A surge in GST, safeguard duties and BIS standards another year of fantastic growth. floating solar tenders is expected with an caused major frustration. Solar park • Open access would have a subdued year aggregate issuance of up to 5 GW. development stalled and transmission with capacity addition of about 600 MW, • Notable development on the domestic capacity also struggled to keep pace with down 63 percent over last year. manufacturing front is not expected. needs of the sector. • Module prices are expected to stay firm The integrated manufacturing tender has at about $ 0.22/W failed, and the government now seems Market confidence was further eroded • Greater adoption of new technologies keen to issue tenders with quotas for by under subscription and cancellation of such as mono-type modules, micro domestic manufacturers. tenders, and the government’s failure to inverters, storage (finally expected to start implement much heralded schemes like rolling with likely announcement of a The industry is looking forward to SRISTI and KUSUM. announcement of the National Storage 22 | Energy Next | January 2019

RE SCENARIO About 2,300 MW c apacity addition is expected in 2019, up 18 percent over previous year. Almost all this new capacity would come up in Tamil Nadu and Gujarat implementation status, capacity addition Ayana Renewable, Raasi Green Earth, is expected to be low in first half of the Asian Fab Tec, Think Energy Partners year (2,635 MW) and speed up in the (TEP) and Technique Solar are expected second half (8,267 MW). More than 75 to commission their first ever projects in percent of this capacity is expected to India in 2019. come up in Rajasthan (over 2,000 MW), Andhra Pradesh (1,950 MW), Tamil Nadu ll Rooftop solar (1,872 MW) and Karnataka (1,555 MW). Rooftop solar capacity addition in 2019 is expected at 2,368 GW, 49 percent higher Estimates include 83 MW of floating than in 2018. The market is expected to solar capacity addition (33 MW, NTPC be again dominated by C&I consumers as Kerala tender and 50 MW, SECI Uttar activity in other segments stays slow Pradesh tender). India’s first utility scale storage project – 3 MW by SECI is likely ll Off-grid solar to be commissioned in Leh, Jammu & About 290 MW of aggregate off-grid Kashmir during the year. capacity, mostly from solar pump installations, is also expected to be added Open access solar capacity addition is in 2019. expected to fall significantly from 1,630 MW last year to just around 600-650 MW ll Wind power in 2019. Maharashtra, Andhra Pradesh, About 2,300 MW capacity addition is Uttar Pradesh and Haryana are expected expected in 2019, up 18 percent over to lead the market. previous year. Almost all this new capacity would come up in Tamil Nadu 32 developers are expected to and Gujarat. Projects are expected to commission utility scale solar projects in 2019. Azure, Acme and NLC are expected to be the leading developers. Mission and rapid progress on floating solar. Two or three successful IPOs would go a long way in boosting market confidence ll Capacity addition A total RE capacity addition of 15,860 MW is expected in 2019, a sharp jump of 50 percent over 2018. More than 69 percent of capacity addition is expected to come from utility scale solar projects. ll Utility scale solar 2019 should register an all-time high in utility scale capacity addition, crossing 10,000 MW mark for the first time ever. Based on the time-table of various projects under execution and current January 2019 | Energy Next | 23

BRIDGE TO INDIA be commissioned under SECI tranche 2020. Such a large issuance is implausible policy front in the year. RE has already been I, II and III tenders, and Gujarat and and not consistent with overall power falling behind in this government’s policy Maharashtra’s 500 MW tenders. demand-supply situation or actual land priorities. If a coalition-based government and transmission infrastructure available. is formed, as widely expected, the sector is Projects are expected to be commissioned A pressure to issue more tenders would likely to be pushed back further in the new by Adani, Orange Renewable, Engie, see a recurrence of problems witnessed government’s policy agenda. Sembcorp and Torrent Power. last year – lack of planning, poor tender design, arbitrary tariff ceilings – resulting Some critical amendments have been ll Domestic in under subscription and cancellations. proposed by the Modi government to the manufacturing Electricity Act, 2003. Time is also running Safeguard duty on PV cell and module Successful implementation of the out for announcement of a concrete plan imports shall fall to 20 percent in July SAUBHAGYA scheme and cyclical power on SRISTI or KUSUM schemes. However, 2019. As observed over the past few demand uplift before general elections may as the government is under mounting months, no significant uplift is expected force some DISCOMs to fast track RE tenders. pressure to help farmers before elections, in domestic PV manufacturing sector. The it may yet allocate some budgetary total module manufacturing volume is A strong emphasis is expected on allocation to KUSUM scheme. expected to remain at about 3,000 MW. It domestic manufacturing tenders. The is possible that domestic cell and module MNRE may yet issue more integrated Despite Central Electricity Regulation manufacturers may file another petition tenders offering a mix of project Commission (CERC)’s recent decisions for trade protection. development and manufacturing capacity. granting relief to developers from GST Large tenders are also expected with and safeguard duty, uncertainty to persist ll Tender issuance and domestic supply restrictions for supplying through the year is expected. The DISCOMs auctions power to public sector consumers. do not have the financial capacity to The MNRE announced in December 2018 compensate developers upfront and are in that it plans to issue 80 GW (60 GW solar ll Policy outlook any case going to wait for direction from the and 20 GW wind) of tenders by March With general elections due in May 2019, respective state regulators. not much development is expected on ll Equipment prices and Despite Central Electricity Regulation tariffs Commission (CERC)’s recent decisions It is widely believed that module prices will granting relief to developers from GST continue to soften through the new year and safeguard duty, uncertainty to due to oversupply in the global market. persist through the year is expected. There are many estimates of prices falling below $ 0.18/ W in the year. The scope for any significant decline is limited as demand from Europe and US is likely to be strong. The Chinese market may also provide a surprise on the positive side, which means that prices are expected to stay firm for most of the year. The average price of about $ 0.22/ W is expected in the year although there may be some marginal decline at the end of the year. Consequently, solar EPC costs are expected to decline only marginally from current levels. No room for bid tariffs to fall in 2019. Tariffs are likely to stay range bound within Rs 2.50-3.00/ kWh depending on project location and offtake risk profile. No major change is expected in EPC cost or tariffs for wind power plants. ll Financing RE projects have been facing debt financing challenges due to increasing cost of debt and tight liquidity in the 24 | Energy Next | January 2019

RE SCENARIO financial markets. The liquidity situation Despite Central Electricity Regulation would probably ease-off by Q2 although Commission (CERC)’s recent decisions financing cost is expected to stay firm granting relief to developers from GST throughout the year. Also, if no clear way and safeguard duty, uncertainty to out is found for GST and safeguard duty persist through the year is expected. pass-through, lenders would continue to be highly selective in the sector. But that seems unlikely in an election quality standards, land and transmission year. On the other hand, problems constraints etc., look likely to linger for Many companies including ReNew, associated with GST, safeguard duty, BIS some time. Acme, Sembcorp and Sterling & Wilson have announced their IPO plans. Successful IPOs would boost confidence in the overall sector but prospects are unclear due to political uncertainty and stock market volatility. The sector has seen gradual consolidation through both organic and inorganic activity. The project pipelines of leading developers are in the range of 1,000 -2,000 MW suggesting significant capital raising activity in 2019. Most of the new capital is expected to come from large international pension funds and sovereign wealth funds. But capital raising may face challenges due to squeezed returns and unfavourable risk profile. M&A activity is also likely to be subdued due to mismatch in valuation expectations. ll Conclusion Except for rooftop solar, Indian RE is getting stuck in the slow lane. The sector needs fresh thinking and concrete, decisive policy action to go up a gear. January 2019 | Energy Next | 25

CEEW Moving ahead after a year of uncertainties India’s wind sector needs a major policy push, eliminating the land and evacuation bottlenecks to move out of its current rut. Rooftop solar might see an accelerated pace of deployment, given the growing interest in the sector, writes Selna Saji I n December 2018, India’s cumulative New policy and regulatory low ceiling tariffs. Despite these setbacks, installed renewable energy capacity interventions impacted the sector’s 2018 had the highest renewable energy reached 73.35 GW, increasing its growth rate substantially. A coordinated capacity bid - more than 20 GW - making share in the total installed capacity to approach is needed among policymakers, it a significant year for the sector. 21.1 per cent. Also, in the first five months developers, and financiers to ensure that of FY18-19, for the first time, more than India’s renewable energy sector moves Going forward, the Ministry of 10 percent of the electricity generated in ahead after a year of uncertainties and New and Renewable Energy (MNRE) the country was from renewable energy conflicting priorities. is determined to reach the ambitious sources. Installations in rooftop solar renewable energy targets by announcing increased by around 1.5 GW to a total of ll Aggressive top-down mega tenders. It plans to tender out the 3.4 GW according to the Bridge to India push remaining 60 GW of solar and 20 GW of (BTI) estimates. As we move closer to 2022, India’s wind by 2020, to ensure installation of 175 renewable energy sector saw an aggressive GW of renewable power by 2022. While Despite the progress, job opportunities push from central and state governments the auction pipeline may seem to be in and investments in the renewable with an announcement of 58.3 GW of place, investor and developer appetite is energy sector fell in 2018. According to utility-scale tenders in 2018 – the highest deteriorating due to rising uncertainties the analysis by the Council on Energy, capacity of tenders to be announced in and risks prevalent in the sector. Environment and Water (CEEW), job a year as per BTI. This is 45.5 GW more opportunities in the sector declined than the previous year. However, 2018 Beyond large-scale solar and wind, by 42 per cent. The wind sector was also had the highest number of tender 2018 also saw the proliferation of floating most affected with net decrease in total cancellations with only 35 per cent of solar tenders for small projects, ranging in employment in the sector. Further, new the proposed capacity actually getting size from 2-20 MW to 1 GW. The National investments in clean energy in India auctioned. The reasons for annulment Institute of Wind Energy (NIWE) also floated declined by 21 percent, according to varied from higher tariffs quoted by an Expression of Interest (EoI) for India’s first Bloomberg’s Clean Energy Investment tendering agencies to a high tariff off-shore wind project (1 GW capacity) to be Trends report for 2018. Also, the capacity difference between bidders. Developers deployed off the Gujarat coast. added in utility-scale solar and wind are now concerned with the lower tariff plants was lower at 6.5 GW and 2.2 GW in expectations irrespective of the location ll Uncertainties 2018, than 8.1 GW and 4.1 GW in 2017. and other project specifics. looming over policy and regulation Several tenders also went unsubscribed The repercussions of uncertainties due to the developers’ reluctance to bid related to the Goods and Services Tax amidst looming policy uncertainties and (GST) and the safeguard duty slowed down the sector in 2018. Despite the Beyond large-scale solar and wind, 2018 saw the proliferation of floating solar tenders for small projects. NIWE also floated an EoI for India’s first off-shore wind project 26 | Energy Next | January 2019

RE SCENARIO implementation of GST in 2017, there Several Indian states significantly was little clarity among developers and ramped up plans to increase renewable various state agencies about its application energy capacity. Maharashtra led on solar projects for most of 2018. The by tendering triple the capacity, in ambiguity around the effective rate on comparison to the previous year solar modules and balance of systems finally lifted in December 2018, with the lowest tariff discovered in the country the Suryashakti Kisan Yojana (SKY) and GST Council recommending 5 percent for rooftop solar installations – Rs. 1.58 its 175 MW pilot. Several states also GST for 70 percent of gross value of solar per unit. The tender also introduced launched schemes to encourage farmers power projects implemented under the innovative features like a data room to adopt grid-connected solar pumps. EPC model. The remaining 30 percent with details about each roof, a payment By solarising agricultural electricity will attract GST at the standard rate of security mechanism, deemed generation, consumption, distribution companies 18 percent. This has now resulted in a and part commissioning. Further, the can save significantly in cross-subsidy realised tax of 8.9 percent, significantly Delhi Electricity Regulatory Commission and reduce the burden passed on to their higher than that for coal at 5 per cent. (DERC) notified its draft guidelines on industrial and commercial consumers. framework for group and virtual net Further, in early 2018, the Directorate metering. This came as a significant move The sector also witnessed General of Safeguards Customs and in increasing the adoption of rooftop improvements in grid integration. By mid- Central Excise recommended a 70 solar among urban residences. Also, the year, most of the renewable-rich states percent duty on imported solar modules, Uttar Pradesh State Electricity Regulatory notified the Scheduling and Forecasting after a petition filed by the industry Commission (UPSERC) announced its regulation, as directed by the Central body of domestic solar manufacturers. draft net metering regulation which Electricity Regulatory Commission After several rounds of public hearings increased the size cap for net metered (CERC) framework. Notable exceptions and petitions, the Ministry of Finance system from 1 MW to 2 MW among included Gujarat (notified in January notified a much lower duty of 25 several other positive measures. 2019) and Tamil Nadu (has notified the percent, later in the year. While the main draft regulation). The regulation provides objective of the policy was to improve Solar for agriculture also gained the methodology for scheduling (day- the cost competitiveness of domestic significant traction among several states. ahead and hourly) of wind and solar manufacturers, the lower safeguard duty Maharashtra led on solarising agriculture generators, and of handling its deviations and its imposition on Indian manufactures feeders and successfully completed two during grid injection. This is a favourable operating from Special Economic Zones pilot projects under the Chief Minister’s move for the sector as increased visibility (SEZs) only resulted in project delays, Solar Agriculture Feeder Programme on generation from renewable sources increased tariffs, and confusion over pass last year. It now has around 2-3 GW of would ensure efficient grid integration through provisions. projects under various stages of tendering. and reduce curtailment risk. Following the lead, Gujarat also launched ll Ground realities ll States embraced renewables In 2018, several Indian states significantly ramped up plans to increase renewable energy capacity. Maharashtra led by tendering triple the capacity, in comparison to the previous year. Uttar Pradesh, Andhra Pradesh, Gujarat, Karnataka, and Madhya Pradesh also tendered a significant capacity. On the other hand, Telangana, Tamil Nadu, and Rajasthan issued fewer tenders compared to previous years. The distributed sector witnessed notable developments too. Rooftop solar, for the first time, gained prominence at the state-level. The most notable example was the 35 MW auction by the Madhya Pradesh Urja Vikas Nigam Limited (MPUVNL) – resulting in the January 2019 | Energy Next | 27

CEEW | RE SCENARIO In the first half of 2019, utility-scale would also be navigating the implications wind and solar deployments are of the Bureau of Indian Standards (BIS) expected to grow slowly. However, certification guidelines issued by MNRE. in the latter half of the year, solar If implemented well, these guidelines deployments are expected to pick up could ensure better quality installations. Due to policy uncertainties, both the year after a major spike during the end India’s wind sector needs a major policy solar and wind markets slowed down of financial year 2017-18. However, the push that can eliminate the land and considerably last year and fewer projects volumes are expected to grow further with evacuation bottlenecks to move out of the got installed. Domestic solar tariffs also the expected stricter implementation of current rut. Rooftop solar, on the other hand, increased despite a significant reduction the Renewable Purchase Obligation (RPO) might see an accelerated pace of deployment, in the global price for solar modules, due regulation. The trading closed last year given the growing interest in the sector. to a falling rupee and safeguard duty. with great price discovery and 100 per cent clearing ratio for solar RECs. 2019 will also see major tenders getting The wind sector has also faced a auctioned. The first off-shore wind tender, multitude of issues. Today, the major ll The way forward wind-solar hybrid tenders by the Solar impediment for wind developers is that With no significant policy shift in the Energy Corporation of India (SECI) and all the wind-rich sites close to suitable horizon until after the general elections, several state actors, and India’s largest evacuation facilities have been used up. it is difficult to anticipate any major tender of 7.5 GW to be deployed in Leh Several wind projects are now hampered deviation from current trends. While the and Kargil are the ones to watch out for. due to lack of transmission infrastructure uncertainties regarding GST have settled, and land availability. Also, low tariffs from there continue to be reservations regarding Energy storage is also likely to become reverse auctions are putting pressure on the extension of safeguard duty and the a hot topic for discussion with the developer margins. possibility of an anti-dumping duty. anticipated announcement of the National Storage Mission and more installations of On a positive note, the Renewable In the first half of 2019, utility-scale hybrid storage plants. Energy Certificate (REC) market has wind and solar deployments are expected shown positive signs. In April, solar RECs to grow slowly. However, in the latter A clean energy transition is currently started trading again after a year of no half of the year, solar deployments are underway globally and India lies at the trading due to a stay by the Supreme expected to pick up when the safeguard centre of it. In 2019, policy certainty, greater Court. However, the trading volumes duty on imported panels reduce from 25 participation of state-level actors, and better fluctuated widely over the year. Non-solar per cent to 20 per cent. Solar developers coordination between government and RECs traded at low volumes throughout industry is needed to improve the health of the sector and move us closer to India’s renewable energy goals. (Views expressed are personal) The author is Research Analyst at the Council on Energy, Environment and Water (CEEW). 28 | Energy Next | January 2019

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ICRA Focus on rural electrification and renewables to continue The government might augment the budgetary allocations towards its flagship schemes - Deendayal Upadhayaya Gram Jyoti Yojna and Integrated Power Development Scheme, feels Girishkumar Kadam, Vice President and Sector Head - Corporate Ratings, ICRA Ltd. W ith significant pick-up levels for state owned distribution utilities required from both the central and state in energy demand across (discoms). The ability of the state owned governments to promote investments in many states, India’s discoms to reduce the distribution losses to the roof-top solar segment by providing electricity demand grew stipulated levels (also as per the regulatory incentives and an enabling regulatory by 6.5 percent during 8MFY2019 and this targets) in a timely manner remains critical framework so as to ensure the consistency demand growth trend is likely to continue, for the improvement in their financial and supportive net metering regulations given the central government’s focus on profile. In terms of progress with respect to as well as a single window approach to improving rural household electrification reduction of ATandC loss levels as per the ensure the procedural approvals. and the uptrend in the growth of the Indian stipulated trajectory in the Ujjawal Discom economy. With the importance of power Assurance Yojana (UDAY) MoU, the Furthermore, the execution of sector for the economy and the fact that it current loss levels remain significantly high transmission network strengthening comes under concurrent purview of both in several key states such as Bihar, Jammu projects must be accelerated with higher central government and state governments, and Kashmir, Jharkhand, Rajasthan and allocation, given the increasing share a significant focus on reliable power supply Uttar Pradesh as compared to the target of renewable energy in the electricity and 100 percent rural electrification fixed for FY2018. consumption mix. The share of renewable throughout the country would thus energy-based generation in the overall continue. In that context, the central Further, higher budgetary support is generation mix at all India level has government is expected to further augment expected towards renewables, mainly in increased from 5.6 percent in FY2015 to the budgetary allocations towards its rooftop solar segment. The solar roof- 7.8 percent in FY2018 and is expected flagship schemes - Deendayal Upadhayaya top capacity stood at 1.35 GW as on to reach 10 percent by FY2020 and Gram Jyoti Yojna (DUGJY) and Integrated December 31, 2018 against the target of 40 further to 13 percent by FY2022 based on Power Development Scheme (IPDS). This GW by March 2022 set by the government capacity addition forecasts, as per ICRA apart, the system strengthening works and of India. A significant push is thus estimates. The wind and solar power IT initiatives in these schemes would also enable some improvement in operating efficiencies, especially the distribution loss 30 | Energy Next | January 2019

RURAL ELECTRIFICATION projects are likely to be concentrated The ability of the state owned in regions suitable for wind and solar discoms to reduce the distribution power generation respectively, while the losses to stipulated levels (also as per consumption is distributed across the the regulatory targets) in a timely states, thus necessitating augmentation of manner remains critical for the inter-state transmission network in more improvement in their financial profile timely manner. about 12 GW of gas-based capacity in support in near to medium term. While The growing electricity demand the private sector is stranded or under- such support may not be a long term coupled with the shortfall in coal supply utilised due to the lack of availability of solution for stranded gas based projects, a from domestic sources has led to higher domestic natural gas and high cost of policy direction in the long run for use of dependence on coal imports. This is generation for using imported R-LNG. such projects to meet the peaking power is despite the 8.8 percent (YoY) growth in also expected. production by Coal India Limited (CIL) Given the issues prevailing in the in 8M FY2019 and 9.6 percent growth in sector, participants also expect the The subsidy dependence for state supply to the power sector in 6M FY2019. government to provide a policy direction discoms at an all-India level is estimated The impact of higher coal imports is on signing of fresh long-term / medium- to be about Rs. 850 billion in FY2019, augmented by the rising international coal term power purchase agreements for which is about 15 percent of cumulative prices and the rupee depreciation against conventional power projects, following discom revenues and is rising on a year- the dollar. Given the healthy prospects for the success of the 2.5 GW pilot scheme in on-year basis given the rising cost of electricity demand growth in the medium 2018. This is in view of the large, stressed supply and higher consumption by the term, the augmentation of domestic coal thermal assets portfolio in the private agriculture consumers. In this context, supplies remains crucial for the sector from thermal power segment. As per ICRA incentives could be strengthened for a cost control perspective for the sector. estimates, about 18-19 GW of coal-based adoption of solar water pumps by farmers capacity (excluding capacity without PPAs for agriculture related power consumption As per ICRA’s estimates, about 40 GW by strong sponsors) is under stress, mainly – which in turn could minimize both of coal-based capacity is under stress affected by lack of long-term power the dependence on costlier conventional due to a mix of issues including the purchase agreements. It is also expected power as well as distribution losses. absence of long-term power purchase that the government should revive the agreements (PPAs), unviable tariffs in stranded gas-based assets with subsidy (Views expressed are personal) PPAs, absence of coal linkages, delays in project implementation and inability of the promoter to secure funding for completing the projects. In addition, January 2019 | Energy Next | 31





Budget 2019-20 BUDGET EXPECTATIONS Since Budget 2019-20 is out in open, it would be pleasure in know what was on their wishlist DV Giri Secretary General, Indian Wind Turbine Manufacturers Association Rate of GST on operation and maintenance services of a renewable energy project should be kept at 5 percent Existing provision :- Section 35AD allows generation and distribution of power through Suggestion:- Accelerated depreciation deduction of capital expenditure incurred renewable energy device should be added should be continued to 80 percent for for specified business. W.E.F. 01.04.2017 as specified business u/s 35AD similar to windmills and solar projects. “infrastructure facility” is added under infrastructure facility added or definition of definition of specified business hence eligible infrastructure facility should be extended to Existing provision:- Deduction u/s.80IA assessee is able to claim deduction of capital include generation of power or generation Suggestion:- Sun set clause for setting up of expenditure incurred for infrastructure facility and distribution of power through renewable the project should be extended up to March u/s 35AD. energy device as electricity generation is also 31, 2020. The period of deduction should be Suggestion:- Generation of power or infrastructure facility. increased from 10 years to 20 years for power generation and distribution of power through Existing provision:- New provision to Sec projects established in Renewable Energy renewable energy device should be added 32(1)(iia) inserted vide Finance Act, 2015 Sector as specified business u/s 35AD similar to granting additional depreciation @ 35 percent infrastructure facility added or definition of instead of 20 percent for setting up undertaking ll B. Indirect Tax infrastructure facility should be extended to or enterprise for manufacture or article or thing Existing provision:- Exemption of GST (as include generation of power or generation in any notified backward area by installing new in excess of 5 percent) on services relating to and distribution of power through renewable machinery or plant. setting up, power evacuation and operation & energy device as electricity generation is also Suggestion:- To bring harmony with current maintenance services (OMS) of a Renewable infrastructure facility Income Tax Act and reduce litigation words Energy Project Existing provision:- New provision to “in the business of generation or generation Sec 32(1)(iia) inserted vide Finance Act, 2015 and distribution of power”should be insertedin Suggestion:- It is recommended that rate of granting additional depreciation @ 35 percent proviso to Sec 32(1)(iia), Sec 32AD and Sec GST on services relating to setting up, power instead of 20 percent for setting up undertaking 115BA of the Act. evacuation and operation & maintenance or enterprise for manufacture or article or thing Existing provision:- Continuation of services (OMS) of a Renewable Energy in any notified backward area by installing new accelerated depreciation @ 80 percent on Project should also be kept at 5 percent (that is machinery or plant. renewable energy devices including windmill the same GST rate as applicable on renewable Suggestion:- Generation of power or and solar energy equipment) 34 | Energy Next | January 2019

Industry Voices Tulsi Tanti Founder, Chairman and Managing Director, Suzlon Group Open access and ISTS charges waiver should be allowed to all manufacturing units The economy has made significant progress in combating inflation in evacuation and operation & maintenance Exemption from Payment of MAT recent years. India has emerged as the services (OMS) of a Renewable Energy Project • Restoration of earlier provision when the fastest growing major economy in should also be kept at 5 percent (that is the profits of the undertaking engaged in the the world. Over the last four years, inflation has same GST rate as applicable on renewable business of generation and distribution of averaged just over 4 percent. In the last calendar energy equipment) from the present 18 percent power and infrastructure business were also year GDP grew at an average of 7.2 percent. • Tax the services for Balance of Plant (BOP) allowed to be reduced from the book profits Mergers and Acquisitions (M&A) activity in the that is, the services required for setting up for the purpose of calculating MAT country has reached US$ 82.1 billion in 2018, and power evacuation of Renewable Energy whereas Index of Industrial Production (IIP) Project , at the rate of 5 percent Push ‘Make in India’ for captive/open rose 5.6 percent year-on-year in April-October • Tax Operations & Maintenance Services access and ISTS charges waiver 2018. Focused reforms on doing business have (OMS) at the rate of 5 percent • To achieve Make in India successfully, helped India move up the rankings on Ease of allow open access and ISTS charges waiver Doing Business by 23 places to 77th position. Concessional Rate / Preferential Rate (like SECI bidding) to all manufacturing of Finance – 2 percent Rebate units for their captive power requirements ll The expectations from • RE sector is growing, however cost and the Interim budget 2019- availability can potentially impact viability, Co-investment for Farmer’s Scheme in 2019 are: hence concessional rate/ preferential rate of FiT based projects Re-introduction of Accelerated Finance is required with 2 percent rebate • Potential to create recurring income for farmers Depreciation • The benefit will come directly to consumers • To provide a level playing field for SME and by keeping the energy prices low These measures will enable Nation’s energy small investors and to continue diversity in security, job-creation and facilitate a low investments in the RE sector: Export incentive to achieve carbon economy by providing sustainable and • Accelerated depreciation should be re- manufacturing target of 10,000 MW+ affordable energy for all. India has the potential introduced @ 80 percent for windmills and per annum to become a global wind energy exporter solar projects to retail investors with project • Increase export incentive from 2 percent and a manufacturing hub for renewables in size less than 25 MW. This will also benefit to 6 percent , to make Indian exports a few years, if the government continues to Central Public Sector Enterprises (CPSEs) competitive in the global market back its commitment to achieve 40 percent of • Mandate Power Finance Corporation (PFC) total installed power capacity from non-fossil Additional Depreciation & and Indian Renewable Energy Development fuels by 2030. It is recommended that the Concessional Rate of Tax Agency Limited (IREDA) to allow issuance of Interim Budget continues to focus on boosting • Activity of generation and distribution of line of credits to OEMs for exports from India consumption and prioritize investments, power should be included in provisions of specifically in manufacturing section 32(1)(iia) (Additional depreciation), 32AD (Investment allowance for setting up projects in Backward area of AP and Telangana) and 115BA (Section allowing assesse to opt for concessional rate of tax of 25 percent) GST Related • GST on services relating to setting up, power January 2019 | Energy Next | 35

Budget 2019-20 Rajendra Kumar Parakh Chief Financial Officer, Vikram Solar Equipment in floating solar power projects should be categorised under CCDC schemell equipment involved in deployment of solar power plants including work • Inclusion of solar power equipment percent of the R&D expenditure in emerging manufacturing under the priority sector lending. areas such as bio-technology which has led to Acontracts should be categorised under • Special funds should be allocated for rapid growth of Indian biotech and pharma 5 percent GST bracket to promote development of EV battery ecosystem. companies. solar deployment in India. • Super-deductions of 200 percent of the R&D • All equipment required in deploying floating • NCEF should be made available to solar expenditure for new and clean solar technology solar power projects should be categorised under manufacturing firms to expand their research development (which could be a part of the offset Concessional Customs Duty Certificate Scheme. and development in order to produce more cost / Make in India arrangement) should be allowed. efficient energy solutions. India already offers super-deduction of 200 Amit Gupta Director of Legal & Corporate Affairs Vikram Solar Interim budget should be focused on government policy direction Finance Minister Arun Jaitley would A recent Parliamentary standing percent of the R&D expenditure for new and be presenting an interim budget on committee report recently highlighted the clean solar technology development (which February 1. Our expectation from the diversion of NCEF for GST compensation could be a part of the offset/Make in India interim budget would be that it focuses fund and it recommended that NCEF arrangement) should be allowed. India already on policy direction of the government rather should utilised exclusively for promoting offers super-deduction of 200 percent of the than just on expenditure. The finance ministry domestic manufacturing of renewable R&D expenditure in emerging areas such as should announce the road map to bring down energy projects in order to promote clean bio-technology which has led to rapid growth corporate tax to 25 percent in the coming years. energy solutions. Hence we expect the of Indian biotech and pharma companies. Ministry of Finance to act on the standing Minimum Alternate Tax (MAT) can be committee recommendation and utilise the Additional budget should be allocated brought down for units operating in Special funds to promote domestic manufacturing to strengthen grid infrastructure to ensure Economic Zones (SEZs) in order to increase in the sector, which is in bad shape. smooth RE integration and reduction in grid/ their competitiveness. Also, commencement of transmission downtime. production under the sunset clause for benefits Rooftop solar installations using available to these units under Section 10 AA of indigenously manufactured solar modules Special fund be allocated for development Income Tax Act be extended till March 31, 2022. should be made mandatory for all Government of EV battery ecosystem. buildings, school & hospitals. A dedicated agency to provide insurance cover for solar A cess on diesel should be imposed power installations at an affordable prices and same should be used to expand EV be established, this will promote adoption infrastructure in the country. Under CSR of clean energy. Super-deductions of 200 obligations for next 10 years, the amount spent by Companies to put up captive solar power plants should be allowed as deduction. 36 | Energy Next | January 2019

Simarpreet Singh Founder-Director, Hartek Solar Anti-dumping, safeguard and port duties should be reduced on imported solar modules We expect the Union Finance to maintain a positive investor sentiment. The a 25-GW capacity which has either been Minister to either do away imposition of 25 per cent safeguard duty will tendered or is in the process of being tendered. with or drastically reduce the lead to an average tariff hike of 40 paise/kWh, As an incentive, the government should also anti-dumping, safeguard and which can jeopardise India’s ambitious 2022 exempt the solar industry from GST. port duties on imported solar modules so as target of 100 GW as it would directly impact Nikunj Ghodawat CFO, CleanMax Solar Taxes and duties should remain stable remain stable. Additionally, we hope that the The Indian solar industry has emerged government continues to focus on reducing as one of the world’s largest markets the corporate tax rate to help the country move for solar PV, providing ample growth towards a lower tax regime. opportunities. In the 2019-20 budget, we hope that the solar industry does not see any negative surprises, and taxes and duties Tarun Mehta Co-Founder and CEO, Ather Energy An increase in import duty for fully assembled batteries is recommended T here are three areas that we would like OEMs to bring out vehicles that are near-equal materials and expenses. Also, the lack of clarity the budget to focus on - component performance to petrol/diesel vehicles. Today’s cost on the refund process adds more complications cost, encouraging Make in India and structures make it largely unviable to do so. To to this inverted tax structure. Lastly, any policy rationalization & simplification of the encourage Make in India, we would recommend intervention needs to be committed for 3-5 years. GST structure. To address the key cost challenges an increase in import duty for fully assembled A lack of predictability in government policy that industry faces, we would like to see reduced batteries, since there are local options available becomes a deterrent for the industry to make long import duties on lithium ion cells, motors and in India. As a manufacturer, we would like the term investments, which impacts the growth of motor controllers. These three account for a major government to do away with the inverted GST the industry. proportion of the vehicle cost and any relief on structure under which we collect 12 percent on these would provide strong financial support for selling our vehicles and pay 18% GST on raw January 2019 | Energy Next | 37

Budget 2019-20 Rakesh Zutshi Managing Director, Halonix Technologies Pvt. Ltd. Budget should focus on identifying policy actions required to promote R&D for production of LED lighting products particular segment. Another important I t is heartening to note that the step that is required to be taken is to LED lighting sector has revealed its significant potential by occupying support local manufacturing of LEDs by the major pie of the overall lighting providing subsidies and incentives like market in 2018 and now it’s time to put low interest capital availability and low it on another strong growth trajectory. interest capital in the upcoming budget. Hence, the upcoming Union Budget 2019- We also demand for additional help to be 20 should focus on identifying policy provided to the manufacturers in the form actions required to promote research and of cheap land and lower interest rates. In development for the production of more order to fulfil the vision of Make in India cost competitive LED lighting products. and to make the ongoing LED revolution To rev up the demand for energy efficient a success in the country, the upcoming LEDs in the market it is urgently required Budget must include such encouraging to make them relatively lower price. For policy announcements. this purpose, the Finance Minister should also review product-wise taxation in this Neeraj Kumar Singal Director, Semco Group Industry seeks rebates on the import duties I n all the three verticals we are looking out for incentives and subsidies from the government because this development in ecosystem won’t be easy without local manufacturing or assembly. Also, we would like to see rebates on the import duties from the government for the crucial components for a few years just to enable and pace up the activities in the whole value chain. 38 | Energy Next | January 2019

Rishi Mohan Bhatnagar President, Aeris Communication Opening R&D centers should be encouraged India’s journey of transition to electric mobility would be very unique from the Having electricity produced from fossil fuels interesting to see what tax incentives and rest of the world given that India’s car to charge EVs undermines the vision of monetary benefits are announced for speeding ownership per 1,000 citizens is just 20, carbon footprint reduction. Currently, China up the creation of infrastructure in every compared to 800 in the US. Hence focusing is the global mass producer of all Li-ion city and promotion as well as adoption by on the four wheeler segment alone may batteries followed by the USA. India does consumers towards renewables. not prove as beneficial as focusing on two not produce lithium ion cells which means wheelers, three wheelers and even electric that there is a huge imports cost making the public transit buses, which again would whole proposition expensive which hinder require focused government direction and wider adoption. This year’s budget needs to hand-holding with budgetary support. have special focus on opening R&D centers and lithium ion battery production plants Batteries are a major cost centre in EVs. across the country. In addition, it would be Ashit Maru Co-Founder, MYSUN Government needs to focus on to accelerate the adoption of solar T he sector is waiting with bated breath year - India imports 90 percent of its solar SME/MSME segment particularly requires for the upcoming Finance Budget, requirements and the cost of solar had innovative and tailor-made financing solutions as solar had considerable attention considerably reduced in the past year due that help these companies transition to solar initially with wide ranging reforms. It to the availability of globally competitive energy seamlessly without the risk of financial is crucial that we promote the cause of adoption, solar panels in the country. But now strain. There also needs to be a more positive for reasons of environmental impact and pressure with 25 percent safeguard duty imposed support and co-operation from local discoms on the natural resources. The solar industry needs on imported solar panels and cells, the to ensure that customers have a seamless and to see a number of developments in terms of market price of solar has only increased as transparent experience when opting for solar. investment, resources, financing options for end a result. Solar energy as a solution is now consumers and supportive government policies, more expensive for the end consumer. In FY 16-17, the rate of accelerated in order for there to be speedier progress. depreciation on solar assets had been reduced Net metering, is another area of challenge from 80 percent to 40 percent, which had Frequent policy changes and the recent for consumers across states due to the benefited consumers looking to switch to solar; safeguard duties on imported solar panels uncertainty of the policies that have been put however in 2018 the corporate tax rate had and cells has had a major negative impact in place. Affordable financing options should reduced from 35 percent to 25 percent, which on the market and the affordability of be introduced to consumers. Rooftop solar has directly diluted the benefit from the 40 solar. Recent policies have only hindered as a segment also needs to start being heavily percent depreciation deduction. The government the solar industry than help it in the past promoted along with large-scale solar parks. should introduce a balancing reform to ensure that the benefits from the reduced accelerated The government needs to work with NBFCs depreciation are restored. This would also help in and banks to create varied financing options reducing the payback period for commercial and and loans for consumers who still consider industrial customers; making it more viable. solar to be an expensive investment. The January 2019 | Energy Next | 39

Budget 2019-20 Anil Gupta need of enhancement of its assembling capacity Managing Director for the development of a wide-range of Lithium- Okaya Power Group ion battery modules to meet the fast-growing demand. Hence, we urge the Finance Minister Industry is in need of to announce a series of tax sops in the interim enhancing assembling budget 2019, especially for the battery and inverter capacity for the manufacturing segment of the industry. development of Lithium- ion battery modules W e look forward to the government to lay strong thrust on introducing growth-oriented policies and incentivise the entire renewable energy industry to achieve its vision of clean energy and the growth of solar and EV segment in the country. Moreover, with the market for energy storage to grow over 300GWh during 2018-25, the industry is in dire Specific to the distributed solar segment, Srinivas Potukuchi we would like to see measures that Founder and CEO, Glowship.com support market led growth and facilitate capital infusion into the sector. Mandates Mandates encouraging wider that would encourage wider adoption should adoption should be firmly be firmly implemented and incentives for implemented deployment should be consumer-linked, or, generation-based as opposed to upfront capital tax structure that locks up working capital subsidies and capacity allocation through tenders, significantly impacting small-scale solar installers as is the current practice. The issue of inverted needs to be addressed. The tax rates for individual components that go into a solar power system should be brought down and homogenised, also against non-solar inverters and batteries, so that arbitrage opportunities currently being taken advantage of are plugged and the eventual cost of solar to the end consumer is brought down. Specifically, the tax rate on battery storage should be reduced to make a solar solution with storage a more viable alternative in line with measures being adopted in more developed markets. Solar, already a part of priority sector lending, needs better support through on-the-ground measures to operationalize it effectively. 40 | Energy Next | January 2019

Pinaki Bhattacharyya CEO, Amp Solar Generation-based incentive scheme would incentivise capacity addition Despite the growth in the segment, solar rooftop/non-utility space the one in place for wind power which should and established generation close to load centres. requires considerable government also accelerate solar rooftop adoption by users. There can be tax benefits provided also for the focus to ensure that India achieves A generation-based incentive scheme would subscribers. Finally, the government may want its target of 40 GW of rooftop solar capacity not only incentivise capacity addition but also to explore establishing a dedicated financing by 2022. Any sort of support to rooftop solar encourage institutional players (rather than institution or a facility under an existing projects either in the form of partial or complete non-serious players) since the benefit would be financing institution dedicated for solar rooftop/ waiver of safeguard duty for solar rooftop greater for the more efficient operators. non-utility projects in order to create the support projects would provide the segment with the required to allow the segment to achieve its required boost. Additionally, the government India can also adopt the community potential of multi fold growth. could explore introducing a generation-based solar garden like in the US where residential incentive scheme for solar rooftop similar to consumers can subscribe to units generated by a solar plant that can be set off from their bill from the DISCOM to enable aggregating demand Shiva Vig CEO, BIOD Energy (India) Pvt Ltd It is important to unleash biofuel potential Currently, diesel alone meets research, the population of Delhi – NCR exhibitions an estimated 72 percent of is 4.7 crores. The usage of edible oil by per • Five-year tax holiday window for the transportation fuel demand person in India is 14.4 kg per year and the proven innovators in the biofuel sector followed by petrol at 23 total consumption of oil in Delhi – NCR • All products related to biofuelshould percent and the rest of the gap is fulfilled itself is 6,76,800 tons per year, which is a attract the minimum slab of GST i.e 5 by other fuels such as CNG, LPG, etc. As quite huge number. If we consider only percent. sustainable alternative for India’s energy 10% of this as waste, then the potential to • Also, for encouraging the domestic security, incentivising the biofuel sector collect used cooking oil to produce biofuel manufactures, easy loan availability and especially biofuel is need of the hour will be 67,680 tons per year. priority sector lending must be accorded • There should be a strong push on to the sector. This will also promote ‘Make Take a note of this: In Delhi and the investments in the biofuel industry in India’ in the long run. Gurugram together 16,99,000 tons of diesel which has witnessed growth and holds • Incentives on the collection and is consumed per year. Just for an estimated tremendous potential. So, dedicated funds processing of Used Cooking Oil (UCO) use, if 5 percent of biofuel is blended with must be allocated for developing the may be announced in the budget. petroleum diesel then 84,950 tons of diesels infrastructure for such units. will be saved per year. According to a • Zero duty on the import of the The industry is hopeful that the machineries for putting up biofuel plant Union Budget 2019-20 will lay adequate • Incentives on the various market emphasis on the biofuel and biodiesel assistance initiatives to market the Indian sector aligning with the government’s products and technology globally mission of providing clean and cheap fuel. • Dedicated fund allocation for Budget will surely lay the path to develop organising international fairs and a suitable mechanism to augment the production of biodiesel in India. January 2019 | Energy Next | 41

WOMEN ACHIEVERS | ENERGY ACCESS Women entrepreneurs in energy access domain POWERED Accelerator announces 2nd cohort of women entrepreneurs Cin energy domainontinuing its efforts in supporting women entrepreneurs in the energy domain, POWERED Accelerator has selected nine women to be a part of its Second Cohort and will offer them financial and business support to help them develop their businesses and deliver access to energy solutions across India. The accelerator programme, spread over three months will include mentorship in various domains, one-on-one interactions with industry experts and investors, peer community building, and showcase opportunities and access to a range fit. The selected entrepreneurs will now receive products, smart energy solutions, waste to of services and support. Selected companies support for one year to scale their business energy solutions, and livelihood creating models from the second cohort will be supported with including a four week residential mentoring is as follows: an equity-free seed fund of up to $10,000 programme and access to an equity-free seed • Dr. Vanita Prasad, Founder and Director In April last year, the UK Government’s fund upto $10,000 each. – Product and Technology R&D - REVY Department for International Development “With the success of the first cohort, Environmental Solutions (DFID), Shell Foundation (a UK-based charity), DFID is keen to continue its support for this • Monika Jha, Founder and CEO - Cydee Government of India’s Department of Science transformative platform helping businesses scale Technologies Pvt. Ltd. and Technology, and Zone Startups India up and increase their social impact. The 2nd • Debashree Padhi, CEO - DD Biosolution announced the POWERED Accelerator - a first cohort has a range of businesses from diverse Technology Pvt. Ltd. of its kind entrepreneurship programme focused geographies working on energy access, waste • Bhavana Chittawar, Head of Business on twin Sustainable Development Goals of to energy, energy efficiency, and clean energy Development and Product Development – Energy and Diversity. The programme has since livelihoods. Opportunities for greater inclusion FinEffi Energy Solutions hosted its first cohort comprising 10 startups, and sustainability are unlocked by working with • Manvi Dhawan, CEO & CFO – GTarang extended equity- free seed fund of $10,000 to these women led businesses moving us closer to Energy Solutions six startups and hosted a bootcamp for five very the twin sustainable development goals of energy • Susmita Bhattacharjee, MD & Founder - early-stage startups. access and diversity,” says Adritha Subbiah, Pushan Renewable Energy Pvt. Ltd. The objective of the POWERED Accelerator Energy and Green Growth Analyst, DFID India • Vidya Amarnath, Director - Paterson is to support women-led ventures by helping “At Shell Foundation, we are proud Energy Pvt. Ltd. them expand their innovative and consumer- to support the continued progress of the • Disha Ahuja, Founder - Prakriti responsive products and services; the ultimate POWERED Accelerator, helping female Biosystems Engineering goal is to empower women-owned and managed entrepreneurs working on innovative off-grid • Rukmani Katara, CEO - Durga Energy businesses in the energy space. The accelerator energy access technologies. We believe this Set up as a joint initiative of Shell is focused on core themes of access to energy, 2nd cohort can be transformative in building Foundation and Zone Startups, and sustainable mobility, waste to value, energy long-term business solutions to meet India’s off- supported by DFID India (UK Government) efficiency, and smart energy solutions. grid energy needs, delivering employment and and DST Government of India, the objective The top nine women selected for this Cohort new technologies that will positively improve of the POWERED Accelerator is to support were selected from a cumulative application the lives and livelihoods of people in low- selected ventures, by helping them expand pool of 150+ applications. The entrepreneurs income rural and urban areas,” says Sam Parker, their innovative and consumer-responsive were evaluated based on the their background, Director, Shell Foundation services, products, and financing; with an innovativeness, the scale of impact, problem The Second Cohort, comprising of startups ultimate goal to empower women-owned and solution fit, clarity of thought, and programme in areas ranging across manufacturing solar managed businesses in the energy space. 42 | Energy Next | January 2019

WOMEN ACHIEVERS | UNEP The role of women in the renewable energy sector In order to achieve 33-35 percent carbon emissions reductions by 2030, the renewable energy target of 175GW by 2022 will have a major role to play, says Rowena Mathew India is set on a path of economic enterprises. Energy in India is used in homes, workplaces and communities. growth that will need to be built crude form in sectors such as industry and Lack of access to energy disproportionally on significant transformations, the transport, but also in the form of electricity affects women, compounding the primary ones being energy and for most productive uses in urban clusters multidimensional poverty, social and sustainability. India’s energy and emission and rural households. Indian villages are economic exclusion, and gender inequality reductions targets showcase the strong role being electrified through governmental that women face. Conversely, in emerging that renewable energy is slated to play in the schemes, the latest being the “Power economies like India, electrification country’s developmental path in the future. for All – Saubhagya” scheme. However, and access to energy can benefit women India has committed to 33-35 percent according to NITI Aayog’s National Energy and girls much more by reducing daily carbon emissions reductions by 2030 (using Policy 2017, there are 304 million people household workloads, enabling better 2005 as baseline) under the UNFCCC who still lack access to reliable electricity. access to basic services such as health and Paris Agreement. In order to achieve these Almost 62.5 percent of the rural Indian education, reducing impacts of indoor reductions, the renewable energy target of population relies on non-commercial fuel air pollution and increasing livelihood 175GW by 2022 will have a major role to sources such as fuel wood, crop residue opportunities. Energy access generates high play. Renewable energy such as solar, wind, and animal waste for their energy needs. positive impacts on women as consumers biomass, hydro etc. play an increasingly There are various implications and uses of of electricity. important role in the sustainable renewable energy sources to be tested, but development of countries like India. as women progress in all fields, they also Women and renewable energy have a play a predominant and crucial role in the synergistic, bidirectional role. Women can While absolute capacity addition is one energy sector. be key players in the rapidly expanding aspect of this sector, energy access is an renewable energy space, and the important one too. The United Nations ll Women and renewable renewable energy sector can play a crucial Sustainable Development Goal (SDGs) energy role in increasing women’s participation number seven highlights access to reliable, Even within the unelectrified population in a growing economy. The provision sustainable, affordable and equitable in India, men and women are affected of renewable energy through off-grid energy as a major challenge. Providing differently due to their varying roles at decentralised renewable energy (DRE) is energy access to economically weaker one such space. DRE solutions are being households adds value to agricultural production and to micro and small January 2019 | Energy Next | 43

WOMEN ACHIEVERS | UNEP scaled up to complement the government’s income generating activities with increased gender and energy intersect. grid extension efforts in rural areas, while access to electricity. Electrification benefits Transitioning from traditional three- also providing opportunities for women. both women and men by enhancing their Women have been involved in promoting engagement in more productive activities, stone fires to improved cookstoves, adoption of energy access solutions, but gender gains are derived mainly from from kerosene lamps to modern lighting participating in the clean energy value reducing the workload of women and alternatives and from diesel-run chain, starting community enterprises girls and redirecting their time and efforts generators to micro-grids not only offer and generally fostering inclusive and into other activities. Some solar powered/ a climate change mitigation measure, sustainable economic growth. Data efficient solutions being explored include but also provide significant and well- from the World Bank and UN Women agri-processing machines, roti rolling documented socio-economic and health indicates that rural energy initiatives machines, milk chillers, motorized sewing benefits to women. show higher return on investment and machines, electrifying primary health positive outcomes when gender-sensitive centers and anganwadis etc. ll The Way Forward clean energy solutions are implemented Despite having this synergistic and on-ground. Biomass energy and sustainable land bidirectional role, women are still under management are environmental and represented in the energy value chain. In Ernst and Young’s Global Job Creation developmental challenges in India where the policy and decision-making level and Survey 2016, showed that female again, men and women have clearly the work force, women are limited in their entrepreneurs outperform males in job defined and differentiated roles. Women ability to participate owing to deep rooted creation, demonstrate twice the business typically are responsible for procurement social and cultural discrimination, difficulty capacity and success as compared to their of fuel wood and for cooking activities. in accessing large funds and have limited male counterparts. Women have also been Collecting firewood is a labour-intensive access to education and training provisions. observed to acquire new creditworthy and time consuming activity often This restricts not only the welfare and customers in rural areas easily as they coming at a significant opportunity cost, economic potential of energy policies are closer to the communities and know limiting prospects for education and and programmes, but also diminishes the local circumstances better. Female livelihoods. Gender-based interventions growth potential of the Indian economy as entrepreneurs are better at managing in this space have the potential to benefit a whole. Globally, 60 percent of the work supply chains for scaling up enterprises women in particular by reducing the is done by women and in return receive and have demonstrated lower credit risk. physical hardship of collecting firewood, only 10 percent share in world’s income, An increasing number of micro-finance increasing disposable household incomes but women still contribute 90 percent of institutions prefer lending to female and reducing indoor air pollution. It is their earnings into the family/household entrepreneurs. According to Bharat estimated that the time spent on wood unit. More programmes are required which Microfinance Report 2017, female clients collection varies between 2-3 hours per focus on working with CSOs, last mile constitute 96 percent of the total client woman per day in rural India. With energy enterprises while also mentoring and base of Indian microfinance institutions. replacement fuel source (solar, biomass) training women on technical, marketing and For these reasons, women tend to be more and improved cookstoves, this time can business skills. productive ‘energy ambassadors’, rural be reduced to 2-3 hours per week. Thus community mobilisers and successful replacing and/or upgrading chulhas with (Views expressed are personal) entrepreneurs. efficient cookstoves is another way that The author is an Energy Efficiency Specialist with the United Nations Environment United Nations Environment Programme Programme (UN Environment) and UN Women had together launched the Women’s Entrepreneurship for Sustainable Energy Programme at COP-21 in 2015 to address fundamental gender- specific barriers faced by women energy entrepreneurs in six countries. In 2018, UN Environment-India signed a Memorandum of Understanding with the Government of Uttar Pradesh on solar-based rural livelihoods to promote income-generating activities. With the Khadi and Village Industries Board, GoUP and several CSO and private partners, the intervention looks at enhancing livelihoods opportunities and 44 | Energy Next | January 2019

WIND | ARTIFICIAL INTELLIGENCE Artificial Intelligence can help wind turbine erosion problem The erosion of materials used in wind turbine blades due to the effect of weather conditions is a problem that applies to the whole wind energy sector. VTT’s antiAGE project found a functional solution to the material Tproblem with the help of artificial intelligence and 3D printing he erosion of the wind turbines’ blade material is a surprisingly costly problem, which hasn’t been solved before. “The blade material erodes due to the effect of rain, hailstones and sand dust, which significantly reduces the service life of wind turbines. Accelerated replacement of turbines becomes expensive: up to 2–4 percent of the value of all wind-generated power is lost as a result of this problem,” Principal Scientist Anssi Laukkanen from VTT explains. “It is a question of a classic problem within this particular industry that costs the optimisation of material solutions. ll Cooperation with wind billions of euros and brings additional AI, on the other hand, is capable of turbine manufacturers to costs to all wind energy. As wind turbine unravelling very complicated cause-and- begin next year sizes increase and wind farms are placed effect relationships, simulating solutions The results of the antiAGE project out on the sea in increasingly demanding and going through an infinite number exceeded expectations. Through a design conditions, the significance of the problem of alternatives to find the one that works process using virtual testing and machine becomes emphasised”, says Laukkanen. best in relation to the requirements set”, learning, VTT was able to develop an Laukkanen points out. optimised solution to a very difficult material problem in less than a year: a ll Artificial intelligence (AI) finds an optimal solution ll 3D printing highly durable material that hardens when In its antiAGE project, VTT modelled the brings flexibility to exposed to mechanical stress. material problem and set out to solve it “When we published the news about manufacturing virtually. This is the first time that AI was In principle, using AI, it would be possible our solution, wind turbine manufacturers used for developing a material solution in to find a tailored material solution became immediately interested in it. We are this scale. optimised for a specific purpose for now negotiating details with commercial In principle, it is possible to find an every component of any single product. operators,” Laukkanen reports. unlimited number of different variations However, manufacturing of such highly VTT is also applying for additional for the material used in wind turbine tailored materials would be difficult if funding for the project, since there are blades composed of the same material traditional manufacturing techniques plenty of targets for optimised material components but differing slightly from were used. solutions in other sectors of industry as well. one another. Of all these alternatives, one 3D printing, or additive manufacturing, The more complex the product, the more would need to find the one that is best offers an opportunity to produce the expensive it is to develop materials suited suited for this particular purpose and desired material in any shape without for a specific purpose, and the more difficult meets its operational requirements. unreasonable costs. When applied in this it is in general to find material solutions that “Human perceptive skills are insufficient manner, 3D printing will do exactly what perform well. AI allows such problems to be to visualise all the dimensions related to it is supposed to do. addressed with efficiency. January 2019 | Energy Next | 45

SnOeLwAtRechnology Building on a green future An energy-efficient building balances all aspects of energy use in a building like lighting, space-conditioning and ventilation by providing an optimised mix of passive solar design strategies, energy-efficient equipment and renewable energy, writes Simarpreet Singh, Director, Strategy, Hartek Group, and Founder-Director, Hartek Solar Pvt Ltd M eeting the ever-growing policymakers. Given the considerable features and sustainable practices. The demand for energy to economic and environmental costs construction cost of energy-efficient fuel the requirements of of producing every unit of electricity, buildings may be higher, but they turn a burgeoning economy energy-efficient buildings with sustainable out to be cheaper in the long run as they poses a major challenge for Indian practices have become the focus of consume less than half the energy than attention. Since buildings account for conventional buildings. the highest electricity consumption worldwide, estimated to be 40 percent by The cost-benefit ratio of an energy the International Energy Agency, it really efficiency measure works best in new will be worth the effort. constructions. For instance, creating a provision for energy-efficient glazing or As we embark on rapid urbanisation, air-conditioning in an under-construction the unprecedented upsurge in new building works out to be much cheaper construction will be accompanied by than retrofitting the same components in a manifold increase in the demand for an existing building. A study conducted electricity. Poor energy performance by TERI to investigate the financial appreciably increases the operating costs feasibility of green building investments of a building, and the impending situation by evaluating the economic impact of calls for designing buildings of the incorporating energy-efficiency strategies future by incorporating energy-efficient in commercial buildings revealed that the 46 | Energy Next | January 2019

GREEN BUILDINGGIZS incremental capital investment for a green perpendicularly can also reduce the use However, to make our buildings green building is recovered with paybacks of of air-conditioners, and so can insulated in the true sense, we need to integrate one-to-three years. windows, walls and roofs. Insulation helps them with solar systems and feed the reduce heat gain into and heat loss from a surplus electricity generated through Besides a zero-energy building design building. Insulation materials like mineral solar power into a smart grid network. and low-energy building materials, green wool and fly ash-based aerated concrete A domestic solar water heater can easily buildings typically involve components blocks can be used in roofs and walls to replace a 2-kW electric geyser, saving up like energy-efficient equipment and reduce heat transfer. to 1,500 units of electricity annually. PV integration of renewable energy systems, on the other hand, can be built-in technologies for various applications. The most distinctive architectural at the construction stage for new buildings While low-energy buildings require feature of an energy-efficient building is and retrofitted on existing buildings as little energy for space heating/cooling, its compactness, the ratio of its surface well to save on inflated power bills. efficient power supply depends on a area to its volume. The lower the ratio, robust transmission infrastructure, which the lesser the heat gain. Ideal for hot-dry But all said and done, many new is characterised by smart grid applications climates, compact buildings gain less heat buildings in India continue to be designed like Supervisory Control and Data during daytime and lose less heat at night. in utter disregard for energy optimisation, Acquisition. A smart grid entails a variety Another important design aspect of a resulting in a substantial loss of energy of operational and energy efficiency green building is ventilation, wherein a and financial resources. The situation measures like smart meters and smart mechanical system with heat recovery can calls for regulation of efficiency measures appliances. be used so that hot air leaving the building for buildings. Spelling out the guidelines warms the cooler air coming in. A similar for energy-efficient buildings, the Bureau Whereas conventional buildings device called enthalpy wheel can be used of Energy Efficiency had introduced the rely on multiple systems for lighting, to recover cooled air from inside and uses Energy Conservation Building Code heating and other functions with each the coolness of this spent air to cool fresh (ECBC) for new commercial buildings in one operating independently of the air from outside. The process dehumidifies May 2007. While the target for the 12th other, green buildings improve energy the air from outside. This is a cost-efficient plan is to make 75 percent of all new efficiency by connecting these systems, way to improve indoor air quality and commercial buildings ECBC-compliant, thus leading to an appreciable reduction reduce the energy consumed by ACs. it is up to state governments to enforce in operating costs. An energy-efficient the code after modifying it as per their building balances all aspects of energy Likewise, we have passive heating requirements. So far, only seven states use in a building like lighting, space- techniques like direct gain method for cold have adopted ECBC. conditioning and ventilation by providing climatic zones, where sunlight is permitted an optimised mix of passive solar design into habitable spaces through an opening, Though India aims to reduce the strategies, energy- efficient equipment allowing it to directly strike and heat emissions intensity of its GDP by 33–35 and renewable energy. the floor, walls or other internal objects. percent by 2030 from the 2005 levels, it These, in turn, heat the air within the is easier said than done. We have a long While state-of-the-art engineering and room. Double glazed windows are aligned way to go as the stock of energy-efficient architectural techniques not only add to to receive maximum sunlight in winter. buildings comprises just 1 per cent of the strength of the structures but also During the night, these windows act as the total building stock. It is projected reduce maintenance charges, optimisation insulating curtains and prevent heat loss. that by 2050, India will see a 400 percent of space design—characterised by features escalation in floor area. But energy like large window openings for natural Another crucial element of a green efficiency in the residential segment has lighting and cross-ventilation—enhances building is efficient power supply, not been a priority. We cannot achieve the flow of energy. The linear design, for characterised by energy-efficient a significant scale unless we standardise instance, significantly brings down the appliances used for lighting, cooling efficiency measures for residential maintenance cost by aligning water supply and heating, which can help save up buildings, which make up for 75 percent pipes, sewerage lines, electrical conduits to 40 percent on electricity bills. Apart of India’s construction market. Let’s and HVAC ducts in a straight line with a from energy-efficient ACs and lighting put things on fast track by overcoming single duct system put to multiple uses. appliances like LED bulbs and CFLs, the financial barriers hindering the applications like daylight-controlled adoption of energy efficiency measures Even simple design elements such as lighting systems with sensors which for buildings through relaxations in duty, window location and sunshades can go a switch off the lights during the day incentives, tax benefits and attractive long way in conserving energy. Installed at and switch them on at sunset are financing schemes. the top of windows and doors, sunshades getting increasingly popular, and so are can protect the building from overheating occupancy sensors which turn on the (Views expressed are personal) during summers and keep it warm during lighting system only when they sense winters. Aligning buildings in such a people in the room. way that sunrays do not fall on them January 2019 | Energy Next | 47

SOLAR Renewable energy : Solar rooftop at the top Adequate funding and financing to SMEs would play a crucial role to keep the momentum up for the solar sector and for this more partnerships need to be developed, writes BK Jha translate into a goal of enhancing the share electricity consumption is one-third of of renewable from the current 8 percent the global average and its fiscal condition to 19 percent in 2022 and to 23 percent significantly lags behind compared to in 2027. The country is heavily banking China, United States, UK, Germany and on solar power. With an installed capacity Japan- the leading economies of the world. of over 20 GW, India is now on its way to The country is already in the big league of becoming one of the fastest growing solar top renewable power-generating countries. powers. The government has also set an Yet, India’s GDP per capita compared to ambitious target to generate 100GW solar these economies is very less. For example, power by 2022- with a significant emphasis India’s GDP is one-fourth that of China’s on solar rooftop generation as well. GDP and one-thirtieth that of the US’s. While the goal for solar rooftop PV lies at 40 GW installed capacity by 2022, its India is on its way to become a super progress has been slow with only about 2 ll Solar Rooftop System: power in the renewable energy sector. GW installed so far. The government has The government has set a target set ambitious targets, however, the sector Overcoming Challenges of renewable capacity at 175 GW needs to look at its strength and limitations Solar rooftop system offers reliable and more realistically. First of all, funding and viable source of electricity to people. The financing especially to the SMEs of the country has made rapid progress in the segment. However, in the last two years, by 2022 and increasing it to 275 GW by there have been sluggish growth due to 2027. In terms of energy mix, these targets sector is a major concern. India’s per capita uncertainties around trade cases, module 48 | Energy Next | January 2019

ROOFTOP price fluctuations, and PPA renegotiations It is promising to note that the World after record low bids. These factors impacted Bank has forged a partnership with the capacity addition in 2017. As per Mercom State Bank of India to create a $635 India Research’s Report, in the first quarter million line for lending specifically for of 2018, the installations stood at 3,344 MW. solar rooftop PV projects According to the experts and the industry Answer is – the way GEF grant is making an progress in Delhi with rational policy, estimates, rooftop installations have been impact. The GEF grant of $25 million has incentives and subsidy by the government. growing robustly so far but are expected played in leveraging some $500 million from The Delhi model can be scaled up and to slow down until module prices decrease the International Bank of Reconstruction other states should also come forward with after the safeguard duty impact wears off. and Development (IBRD) and $125 million rational policies and incentives. Solar rooftop system is a very cost sensitive from the Clean Technology Fund (CTF). It and an increase in project costs will slow is high time to push such collaborations. ll The Way Forward down the installations. The industry expects What needs to be done to make renewable the market to start growing again once ll Leveraging rooftop a primary source of power? Currently, due module prices decline and the safeguard benefits: Delhi shows the to its intermittent and unreliable nature, duty impact is marginalised. way it is considered complementary. Solar In 2016, the Delhi government came out rooftop system is rapidly emerging as a The growth of large-scale projects in with its Solar Policy. However, it could not solution for de-centralised renewable energy 2019-20 is expected to be slow, however, solar yield desired results. Hence, it was decided to generation globally due to the plummeting rooftop, which contributed 10 percent of the extend the generation-based incentive (GBI) cost of the technology. SUPRABHA’s cumulative solar installed capacity totalling from three to five years with a new name. The proposed engagements with in the states nearly 25 GW in 2018, is expected to perform government is already giving an incentive of are development of an exclusive solar better compared to previous year. Rs. 2 per unit on solar generation for a three- rooftop policy, capacity building, training year period, from 2016-17 to 2018-19, as per of utility engineers, entrepreneurs, bankers, ll Partnerships for the Delhi Solar Policy 2016. unified web portal for online subsidy and Funding interconnection modules. Even a smaller There are reasons to believe that funding With amended policy in place, the state like Nagaland has been given a target and financing to the sector will get a boost domestic consumer will not have to spend of 50MW for rooftop system. India is all as several partnerships are taking shape any money for the installation of solar set to rely on its renewable energy and and would soon start yielding results. It panels. It will be done by select service solar rooftop would play a role of powerful is promising to note that the World Bank providers. Presently, nearly 105 MW of catalyst in this journey to achieve 175 GW has forged a partnership with the State solar power installed in Delhi covers mostly renewable capacity by 2022. Bank of India to create a $635 million line government buildings such as DMRC (20 for lending specifically for solar rooftop MW), DJB, technical institutions (DTU, (The author is a senior journalist. Views PV projects. The partnership results in a NSIT, IP University, IGDTUW), to name a expressed are personal) dedicated scheme ‘SUPRABHA’- Sustainable few. Rooftop system is making tremendous Partnership for Rooftop Solar Acceleration in Bharat. The scheme has already made a significant impact on solar rooftop PV adoption with the sanction of $315 million to deploy 600 MW of solar rooftops. Partnerships are crucial. The 6th Global Environment Facility (GEF) assembly at Danang, Vietnam on June 26, 2018 indicated that with cohesive collaborations and partnerships, financing to the sector would not a constraint. The sector has identified its barriers for rooftop solar uptake with reference to SMEs. Hence, development of financing framework for SMEs calls for cohesive collaborations. Otherwise, it would be difficult to achieve the set target. How can partnerships be leveraged for the benefit of the sector? January 2019 | Energy Next | 49

IDEF | Event Coverage India to emerge as a strong innovator The report was launched at the India Distributed Energy Forum & Expo (IDEF), a two-day event, which discussed the role of distributed standalone solar solutions, with an aim to provide universal access to sustainable energyhe unveiling of a report titled ‘Peering into the future – India and the solar standalone T products market’ by GOGLA, the global association for the off-grid component is to set up 1.75 million off- from saltpan workers of Gujarat desert grid solar pumps by 2022 – nearly ten who are switching to solar pumps from times the number of currently installed diesel to increase their income, to pumps. thousands of women who have turned Talking about trends and encouraging into entrepreneurs and are bringing clean solar energy industry, at the IDEF event, the innovators in the sector, Ashden energy products to rural areas as part of steered discussions on the future of founder-director Sarah Butler-Sloss said, our Lighting Asia/India program.” the distributed solar market in India “Internet of everything and big data A recent study undertaken by IFC’s – business opportunities, impact and analytics are creating a huge impact on Lighting Asia/India Program in partnership innovations. the solar sector. We, with the help of our with d.light was released at the conference. GOGLA, together with International Indian arm – Ashden India Collective, It analysed the impact of solar lanterns on Finance Corporation, and Ashden India are facilitating the solar entrepreneurs rural households in Uttar Pradesh and Bihar Collective, opened the conference to by providing technology insights and and found that in addition to a reduction discuss the potential of the off-grid solar business model analytics to realise the of the households’ dependency on kerosene sector, which is expected to see significant optimum potential.” for lighting by 75 percent, the average time growth over the next five years. Talking about the partnerships involved spent by for children to study increased by Speaking at the opening session of in achieving universal energy access, IFC one hour daily. the two-day event, GOGLA Executive Country Head Jun Zhang highlighted, The India Distributed Energy Forum Director Koen Peters said, “India is a “IFC has witnessed many innovative and Expo was attended by 250 attendees, fascinating market for standalone solar business solutions where women have bringing together leading private sector products. If the government and industry emerged as important catalysts of the companies, policy-makers, think tanks, can align their interests well, India may modern off-grid energy revolution – investors, and development institutions. not just remain the single largest market A recent study undertaken by IFC’scountry for standalone solar products, but also establish itself as a strong innovator Lighting Asia/India Program in and potentially strengthen its role as partnership with d.light analysed global player.” Most of the future sales of the market are likely to come from solar lanterns the impact of solar lanterns on rural with additional services, for example, households in Uttar Pradesh and Bihar mobile charging or radio, and solar home systems. Increasing incomes and greater energy demand will be key drivers. The forum explored the role the sector can play in complementing the Government of India’s efforts in providing universal energy access to all citizens. The report released looks into the government’s focus on the solar water pumping segment, which received a fillip in March 2018 with the announcement of the KUSUM Scheme where in a key 50 | Energy Next | January 2019