IN THIS ISSUE16 Cover Domestic solar power industry25 Industry speakAshish Khanna Gyanesh Chaudhary Vikram Kailas Samitla Subba Simarpreet SinghTata Power Solar Vikram Solar Mytrah Energy Azure Power Hartek SolarPuneet Singh Jaggi Gagan Vermani Sanjeev Aggarwal Sabyasachi Majumdar Rahul PrithianiGensol Group MYSUN Amplus Energy ICRA CRISIL Research 22 25 INTERVIEW INTERVIEW Imposition of Impact of safeguard safeguard duty is duty imposition on a stepping stone imports of solar cells towards growth Imports of solar cells and modules Domestic manufacturers would PUC are taking place at very low prices have a real shot at competing resulting in drop in sales realisation of with imported modules with the domestic industry thereby hampering safeguard duty the domestic industry’s ability to compete4 | Energy Next | August 2018
VOLUME 8 | ISSUE 10 | August 2018 www.energynext.in26 vestasImportance of renewable hybridsolutions in IndiaWith hybrid solutions, solar delivers power during daypeak while wind energy takes care of evening peak andnight load34 36 ICRA MITSUBISHITechnology Improved air qualityadvancements & their with innovativeeffects on renewables technologyThe advancement of technology in Mitsubishi Electric offers effectiverenewable energy helps in efficiency solutions to improve air quality inimprovement and this coupled with the house called Lossnay ventilation,scale benefits to improve the tariff which is simultaneous pursuit ofcompetitiveness in future ventilation and energy saving38 46 IESA SUKAMEnergy storage Tips from antechnologies entrepreneur to anevolving over time entrepreneur An entrepreneur not only dares to imagine the impossible but also has the courage to fight challenges along the wayThe market for energy storage 64is likely to grow to over 300GWh during 2018-25 and India is MNRE NEWSexpected to attract investment in2-4 gigafactories for advanced Li- MNRE approves programion batteries on energy from industrial, agricultural wastes The Ministry has approved the ‘Energy from Urban, Industrial and Agricultural Waste/ Residue’ program with modified terms and conditions from 2017-18 to 2019-20 August 2018 | Energy Next | 5
letters to the editorRenewables in mainstream Enabling Investment Environment The article published in your previous issue Publications Director Anupam Daftuar titled ‘Transition of renewables into the Associate Editor Anurima Mondal mainstream’ was an interesting read. Renewable Design Flying Tusker Media energy sector in India has indeed emerged as an important player in the grid connected power Marketing Manager Aditya Daftuar generation capacity. I am sure that India will Subscription & Dispatch Anil Patwal soon be one of the most favourable destinations for investment in renewable sector. ll Pratyusha Sinha, RanchiDigitalization station and this is indeed an issue on Small Hydro For the latest Renewable Energy news. a great news for us. Solar Power. I am keen to know log on to www.energynext.inRenewable energy is one panels and electric vehicles more about this sector.of the most important are the perfect match. The llAsif Khan, Meerut Energy Next is printed by R Ramprasad and publishedsectors in the country and country is on the right by R Ramprasad on behalf ofdigitalisation is the need track to meet its lower Interesting topicsof the hour. I am sure that emission intensity target. Focal Point Media Services Pvt Ltddigital technologies such ll Ankita Sharma, #407, Fifth Floor,as big data analytics andsmart grids will change Gurugram Pavani Plaza, Khairatabad,the industry dramatically. Hyderabad - 500 004, Telangana, India.You latest edition on Informative I enjoyed reading the CIN No.: U74999AP2010PTC070645Digitalization was very magazine edition focused on Focal Point Media Services Pvt. Ltd. is a jointinformative. Good job! Digitalization. Renewable venture of Gateway Media Pvt. Ltd, and Invisionll Ritu Verma, Noida Energy Next is an energy sector has Communications & Research Pvt. Ltd, and printed at informative magazine. witnessed a number ofSolar EV chargers I read it for latest transformational changes M/s. Kala Jyothi Process Pvt. Ltd. developments happening in and digitalisation is one 1-1-60/5, RTC Cross Roads, Musheerabad,India recently got its first country. I was wondering of them. This is a great Hyderabad - 500 020, and Published at Focal Pointsolar powered EV charging if you could bring out step for India in the global arena. Keep covering such Media Services Pvt. Ltd. interesting topics. #407, Fifth Floor Pavani Plaza Khairatabad, ll Stuti Sharma, Hyderabad - 500 004, Telangana, India. Ghaziabad Tel: +91 40 233 000 61, 233 006 26 +91 40 233 006 65Feedback: Please send your feedback and comments to Subscribe: Tel: +91 11 2642 4071/72 [email protected] 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 11-46507580advisory boardProf 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 0196 | Energy Next | August 2018
From Mega watts to Giga watts Envisioning a Greener Tomorrow with Renewable EnergyENCOURAGING 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 10,199in renewable energy capacity installations in the 10000 2015-16 2016-17 to 175,000 MW by 2022 world 8000 6000 One of the largest CO2 4000 3,747 3,818 4,540solar programs in the world 2000 2012-13 2013-14 2014-15 All IREDA funded projects with planned capacity of are helping in avoiding 0 100 GW by 2022 CO2 emissions Funded more than 2,382 renewable energy projects 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 - 26717412Registered Office: India Habitat Centre, East Court, Core-4A, 1st Floor, Lodhi Road, New Delhi 110003, Tel: +91 11 24682206 - 24682219
nationalRenewable energy installations increasing progressively MW and again in July, 2018, for 600 MW.In 2016-17, aggregate capacity of around 11,322 MW of Around 71.33 GW ofrenewable energy was installed renewable energy capacity hasin the country, and in 2017-18, been installed in the countryan aggregate capacity of around up to June 2018. To achieve11,887 MW was installed. the balance target of 103.67Renewable energy installations GW, investment of around 76in the country are progressively billion US$ has been estimatedincreasing and do not appear to at present capital cost whichbe facing any major challenges. includes 53.20 billion US$ as debt and 22.80 billion US$ as Solar tariffs in India saw the equity for the debt-equity ratiolowest ever level of Rs.2.44 per of 70:30 as per CERC norms.unit in reverse auctions carriedout by SECI in May 2017, for 200Nationwide ‘State Energy Efficiency Indigenous solar cellsPreparedness Index’ released to power satellitesAs part of its commitment to create the Government’s Perform Achieve and Trade India has sent various satellites in space. awareness about energy efficiency as a (PAT) scheme. Developed by the BEE, these However, ever since it launched its firstresource and also to develop an action plan will serve as a standard reference document satellite, solar cells are regarded one of thefor energy conservation initiatives, Bureau of for energy intensive industries and help them major components that keep the satelliteEnergy Efficiency (BEE) and Alliance for an achieve high operational efficiency of energy alive. Solar cells which are currently procuredEnergy Efficient Economy (AEEE), released consuming utilities thereby improving their from the USA would soon be replaced withthe ‘State Energy Efficiency Preparedness energy performance. solar cells manufactured in India. BharatIndex’ which assesses state policies and Electronics Ltd will begin production of theseprogrammes aimed at improving energy The State Energy Efficiency Preparedness cells at the ISRO facility in Bengaluru.efficiency across various sectors. The Index has 63 indicators across Building,nationwide Index, which is a joint effort of Industry, Municipality, Transport, Agriculture Talking about the solar cells, ISROthe NITI Aayog and BEE, was launched by and DISCOM with 4 cross-cutting indicators. Chairman K Sivan said, “Till now, weA.K. Bhalla, Secretary, Ministry of Power; Dr States are categorised based on their efforts have been procuring space cells fromAjay Mathur, DG, TERI in the presence of and achievements towards energy efficiency US private companies for producingsenior officials from the Ministry and BEE. implementation, as ‘Front Runner’, ‘Achiever’, our satellite. Being a critical technology, ‘Contender’ and ‘Aspirant’. The ‘Front Runner’ imported cells costed us dearly.” The dignitaries also released a set of states in the inaugural edition of the Index are:Energy Conversation Guidelines for energy Andhra Pradesh, Kerala, Maharashtra, Punjab, Sivan added, “For producing a smallintensive industries that are covered under and Rajasthan based on available data. remote sensing satellite, 1,500 solar cells are needed. For a big satellite like GSAT, around 10,000 to 15,000 solar cells are imported. ISRO used around 20,000 solar cells for developing the country’s heaviest satellite– GSAT-11. ISRO has to shell out Rs 15 crore for import of every 10,000 cells. If these cells are produced in the country, the cost will go down considerably.”8 | Energy Next | August 2018
national‘World Biofuel Day 2018’ event organized Vardhan and Petroleum Minister Dharmendra Pradhan were also present on the occassion.India recently organized ‘World Biofuel Day 2018’ event in New Delhi, with the Prime In his welcome address, Pradhan saidMinister Narendra Modi addressing a diverse that World Biofuel day is being observedgathering, consisting of farmers, scientists, since 2015 to create awareness about theentrepreneurs, students, government officials, importance of non-fossil fuels as an alternativeand legislators. He unveiled a Booklet on to conventional fossil fuels. He added that‘National Policy on Biofuels 2018’, and launched several steps have been taken to improve the‘Pro Active and Responsive facilitation by supply of ethanol for the blending programmeInteractive and Virtuous Environmental Single that has resulted in supplies jumping from 38window Hub’ [PARIVESH]. crore litres in 2013-14 to about 141 crore litres. The new National Policy on Biofuels-2018 Transport and Shipping Minister Nitin envisages a target of 20 percent blending ofGadkari, Consumer Affairs Minister Ramvilas ethanol in petrol by 2030.Paswan, Agriculture Minister Radha MohanSingh, Science & Technology Minister HarshSolar scheme may help Indian firms boost Niti Aayog to setAmanufacturingRs 8,000-crore solar energy scheme electric vehicle target made to mandate local manufacturing consultation with various government for public transporters departments and ministries, includingwithout violating WTO’s trade rules is in finance, commerce, and the Prime Minister’s The government might soon givethe final stages of approval. This scheme Office.” The scheme has already been cleared target to state public transportersis likely to help local industry survive the by the Expenditure Finance Committee. for deploying some vehicles in theirattack of cheap imports. As part of the scheme, public sector new orders. The think tank believes thatThe 12 GW scheme will encourage Indian undertakings will call for tenders for the market forces should be allowed tomanufacturers, who are waiting for the installing power projects, and the decide whether people want to purchaseimposition of a safeguards duty on solar gear. electricity produced through these will be electric vehicle or petrol car.The domestic industry has suffered used for their own consumption.because WTO, acting on a US complaint, “We may like to tell states that theirruled that India had violated trade rules carbon footprints must be minimised.by mandating use of indigenous cells and We are considering of giving somemodules in its national solar mission. targets to state public transporters toTalking about it, a government official deploy certain percentage of electricsaid, “The scheme is in final stages of vehicles in their new orders,” an official from Niti Aayog said. HeIndian Railways launches solar powered coaches further added that a behaviouralIndian Railways recently unveiled change is required among the the first non-AC coaches of Rewari- crore over the 25-year life of the coaches. It is consumers. It is estimated that India expected that each coach will generate between currently has 1 to 1.5 lakh electricSitapur passenger train with flexible solar 15 to 20 units (kwh) of electricity per day. vehicles which is projected to grow tophotovoltaic panels. The panels on its roof about 5 per cent of the total vehicleswill help passengers charge their mobile in the next five years. .phones. The lights and fans in the coacheswould also be powered by these panels.Ravindra Gupta, member (rolling stock)of the railway board inaugurated the firstset of coaches. With this initiative, therailways would not only be able to reducecarbon emissions but also save around Rs 310 | Energy Next | August 2018
StateKarnataka becomes India’s renewable leader imported energy. It further discussed how declining costs have helped toAccording to a report released make impetus around the acceptance by the Institute for Energy of renewables, especially solar.Economics and Financial Analysis,Karnataka has overtaken Tamil Karnataka introduced reverseNadu to become the leading state for auctions for wind-powered electricitygenerating renewable energy. The in June, with an upper cap of Rsstate added five GW in 2017-18 and 3.45/kWh, when tariffs fell by ashas a total of 12.3 GW of renewable much as 50 per cent to as low as Rscapacity installed till March. 2.43/kWh. It is also witnessing the development of Pavagada industrial The report named Karnataka’s solar park which is touted to be theElectricity Sector Transformation second largest solar development intalks about a trend set by the state the world.and national energy policies thathave encouraged less dependency on GwiutjharSaotustihgnKsopraecatNIWE installs LiDAR for offshore wind The Gujarat government has signedassessment at Gulf of Khambat, Gujarat a Memorandum of UnderstandingMost of renewable energy projects in (MoU) with the Korea Trade Promotion the country are being implemented Khambat, off the Gujarat Coast. Agency (KOTRA). The MoU was signed by Indian Renewable Energy Principal Secretary, Industries and Mines,by the private sector developers selected Development Agency (IREDA) has Gujarat government M. K. Das and Koreanthrough a transparent bidding process. conducted studies on preparation of Trade-Investment Promotion Agency CEOIn order to be competitive, developers road map on tidal energy projects in and president Kwon Pyung-oh with anare encouraged to deploy most advanced India, business models for decentralized aim to enhance industrial and investmenttechnologies. systems under access to Clean Energy relations between South Korean companiesNational Institute of Wind Energy Programme, analysis of battery and and Gujarat through cooperation.(NIWE) has installed a remote sensing Solar PV modules recycling processesinstrument- LiDAR for assessment and the investment potential of biofuels KOTRA will not only open its officeof offshore wind resource at Gulf of in with foreign assistance. in Ahmedabad but also become an important partner for the Vibrant GujarataMnadncohhaarrgLerasl iKnhHatatrayrafnlaags off electric vehicles Global Summit 2019, which is to be heldHaryana Chief Minister Manohar Lal from January 18 to January 20, 2019. The Khattar flags off electric vehicles two decades of experience in designing, agreement mentions various industries engineering and manufacturing efficient, with new and renewable energy beingand Exicom Tele-Systems Limited AC reliable and cost effective power and energy an important sector. The industriesand DC Fast Chargers and hands them solutions for electric vehicles, information department and KOTRA will help eachto Gurugram Metropolitan Development technology, telecom and renewables sector. other provide in-market support toAuthority (GMDA) Officials. mission delegates for travel abroad.The AC & DC electric vehicle chargingstation were installed at Car ParkingFacility of Tau Devi Lal Sports Stadium byExicom. It is part of the plan to developEV charging points across the country.Exicom is committed to realize the vision ofmaking India a 100 percent Electric Vehiclesnation and aims to support government’smission of shifting 30 percent of country’sfleet to electric mode by 2030. It has over12 | Energy Next | August 2018
NEWSDelhi gets its largest residential solar rooftop plant fRbiiraosjftaussetthaltpaenotlobiceiymcopmleems entDelhi Chief Minister Arvind society, Chief Minister Arvind Kejriwal Rajasthan has become the first Indian Kejriwal recently inaugurated said, “First time, solar plants are state to implement the nationalthe city’s first large scale residential being installed on such a grand scale. policy on biofuels. The policy wassolar power plants at Dwarka’s Consumers will be able to save Rs 2.5 per unveiled by the centre in May this year.residential societies including Ispat unit and the society will be able to obtain Its implementation has been approved byCGHS, Saksham apartments, Supriya clean and green power without any High-power Biofuel Authority.apartments and Navrattan apartments. investment but just by utilising resources. Highlights of the biofuel national policy: The state government welcomes private • Emphasis on increasing production The plants of capacities of about enterprises to come forward and work of oilseeds300 KW will entail zero investment with us to step up solar power generation • Promoting research in the fields offrom the societies and they will only and reduce dependence on conventional alternative fuels and energy resourcesbe paying for the power produced, at means. It is also understood, over their • Biodiesel plant with a capacity oftariffs as low as Rs. 4.5/kWh. Further, lifetime, the plants would save over one eight tonnes per day has already beenthe installations will be eligible for an crore kg of C02 emissions, which is quite installed in the stateadditional incentive of Rs. 2/kWh of remarkable.” • Further emphasis on biofuelgeneration based incentive from the advertisements by the state governmentDelhi Government. The Chief Minister also said that to create awareness about the same power tariffs in Delhi are lesser than The solar power plants are being Mumbai. “If you compare power tariff The policy categorises of biofuelsset up by Delhi-based residential solar with other states, 400 units of power in into first generation (1G), secondpower projects developer Oakridge Delhi would cost around Rs 1,200 and in generation (2G) and third generationEnergy under the power purchase Mumbai, it would cost Rs 4,000. We are (3G) to enable extension of appropriateagreement (PPA) mode which would able to give uninterrupted power supply, financial and fiscal incentives underamount to no upfront investment from with some exceptions, as promised in each category.the residents of Dwarka sector. during elections,” he added. Addressing the gathering at thesGoaluartapmlanBtuddha University in Greater Noida gets a roof powerThe first phase of its 2.8 MW rooftop solar power project at Gautam Kumar, (IAS) Vice Chancellor, GautamBuddha University, Greater Noida was Buddha University said, “Solar energy is low cost and non-polluting and it can meetinaugurated by Uttar Pradesh Chief our power needs to a great extent. BesidesMinister Yogi Adityanath. The plant is reducing electricity charges, this projectpart of a 50 MW project allocated to will contribute towards generating greenAzure Power by Solar Energy Corporation and environmentally clean energy. We areof India (SECI) to electrify various grateful to Azure Power who have helpedgovernment buildings across ten states. us in our mission to make our universitySpeaking on this occasion, Dr Prabhat greener through solar power generation.” August 2018 | Energy Next | 13
INTERNATIONALGlobal off-grid renewable capacity tripled over Germany gears up forthe last decade solar-powered carsOff-grid renewable energy across the in 2017. As per the statistics given by the Sono Motors , a German based world has seen a spectacular three- International Renewable Energy Agency start-up is all set to test the finalfold growth. The capacity has increased (IRENA), Asian and African countries development of the charging system of itsfrom 2 GW in 2008 to around 6.5 GW accounted for most of the growth. Around Sion car. The electric solar vehicle allows 76 million and 53 million people in Asia you to drive as it gets charged. It has 330 and Africa respectively are dependent on solar cells attached to the its roof, bonnet renewable sources for electricity. and sides which gets charged in the drive. In Asia, the total off-grid capacity more “We have a seat heater, there is air than tripled to nearly 4.3 GW in 2017, from conditioning, there is a large infotainment 1.3 GW in 2008. The share of solar also system where I can also connect my phone rose from 11 percent in 2008 to over 30 interactively, which means I really have a percent in 2017. Similarly, the cumulative full vehicle which is very simple, has no off-grid renewable energy capacity of Africa frills,” Laurin Hahn, co-founder and chief increased from 231 MW in 2008, to nearly executive of the startup. The production of 1.2 GW in 2017. With 820 MW installed as cars will begin in the second half of 2019. solar lights, home systems and mini-grids, solar technologies seem to be a key driver of Africa renewable growth in off-grid capacity. energy fund awards $1.6m in ZambiaChurches in the UK embrace renewable energyAround 5,500 churches in the U.K. have Kazang Solar, Azuri Technologies’ switched to renewable energy. Some buying group 2buy2. However, with official distribution partner in renewable energy, the churches diverted Zambia, has been awarded $1.6 millionfamous churches such as York Minster and over £5 million from fossil fuels to from the Africa Enterprise ChallengeSalisbury Cathedral are now 100 percent renewable energy providers. Fund (AECF) under its Renewabledependent on green electricity. The places “Climate change is one of the great Energy and Climate Adaptationof worship powered by renewable energy moral challenges of our time and so it’s Technologies (REACT) window.come from a range of denominations, fantastic to see churches doing their bitincluding Catholic, Baptist, Quaker, to ensure they reduce their impact on the Azuri is a leading commercial providerMethodist and Salvation Army. environment. They are also giving a boost of pay-as-you-go solar home systems to off-The average annual electricity bill to clean energy which is essential to reduce grid homes in Africa and has been workingof a church was £1,000 ($1,300) based harmful carbon emissions,” said the Bishop with Kazang in Zambia since 2016. Theon figures provided by national church of Salisbury, Nicholas Holtam. investment will help Kazang Solar deliver affordable Azuri Quad solar home lighting products to more than 7,000 off-grid customers in rural Zambia. “ The fund supports innovative and transformational business models which characterises the Azuri and Kazang approach. Azuri looks forward to working with and providing continued support to Kazang as they deliver life-changing solar technology to customers across the country.” said Simon Bransfield-Garth, CEO of Azuri14 | Energy Next | August 2018
NEWSUN environment chief appreciates India’s efforts to Meeco to installuse solar energy sun2roof solar systems The capacity was increased to 30 MWp byThe UN’s environment chief has April 2018. The German 200 year old specialised appreciated India’ efforts to meet yarn factory Gruschwitzits energy needs through solar energy. Textilwerke AG has now decided toDirector Erik Solheim calls 2017 as “the make further progress in pursuing thisfirst year in human history” when more target together with meeco. meeco willelectricity was generated globally from ins tall two roof-mounted sun2roofthe sun, than oil, gas and coal combined. solar energy systems on the company’sTalking about Cochin International production facilities and will connectAirport (located in Kerala), the first ever these with meeco’s real-time energyfully solar powered airport of the country, monitoring system sun2see.Solheim said that India’s southernstates are experiencing “the most rapid With meeco´s sun2roof solar plantseconomic development anywhere in the comprising a total rated output of 280world based on solar energy”. The Cochin kWp meeco will provide GruschwitzInternational Airport in Kerala had 12 with tailor- made PV systems tomegawatt peak (MWp) solar power plant. generate clean and reliable energy on the roofs of their productionSweden to meet its 2030 renewable targets facilities. meeco will install 1,000Sweden is all set to meet its 2030 renewable modules comprising highly efficient energy targets by the end of 2018 – thanks to be completed in the coming years”. multi crystalline silicon solar cells Sweden’s power ambitions are impressive with textured glass, produced onto the number of power purchase agreements compared with the rest of Europe. A 2020 EU fully-automated production lines withsecured by the country. In the first half of 2018, target of 20 percent renewable energy and a 49 seamless monitoring of the process.Norway and Sweden witnessed corporate percent national target illustrate the country’swind PPAs signed totaling to 1.4GW. progress compared with other countries As soon as the project is completed,Taking into account already installed Gruschwitz will produce more thancapacity, Sweden’s Energy Agency 300 MWh of clean energy annuallyestimated that production could top 19 and at the same time make sure toTWh by the end of this year. Energy expert avoid 119 tons CO2 emissions per yearMarkus Selin explained that “after the with these additional Installations.decision on the increase in ambition wasreached, a lot of investment decisions have meeco’s own online monitoringbeen taken and many wind turbines are set platform sun2see ensures a smooth and seamless monitoring of theUAE- Energy sector transformation the ‘newnormal,’ says Al Falasi operations of the energyDUAE is gradually switching to installations, since it provides a renewables. Talking about the energy - November 2, under the theme, 24-hours supervision and, in casesector, Abu Dhabi Department of Energy ‘Transforming Energy: Invest, Innovate, necessary, troubleshooting support.Under-Secretary Mohammed Juma Al Integrate’. It will focus on targetedFalasi said that it is constantly evolving, research and development and energytransforming and experiencing a rapid pace efficiency goals.of change. “It’s the new normal,’ he said. Talking on the upcoming SingaporeInternational Energy Week, SIEW 2018,Al Falasi said that it will act as a globalplatform for all stakeholders to discussthe engine of the growth energy. Theforum will be organised from October29 August 2018 | Energy Next | 15
COVERDomestic Solar Power IndustryA s per the final findings dated July 16, in the investigations in any adverse financial loss/gain to the The scheme, inter alia, provides for: concerning imposition of Solar Power Generator then, in order to • 20-25 percent subsidy for investments Safeguard duty on import ensure that the Solar Power Generatorof solar cells and modules, Directorate is placed in the same financial position in capital expenditure for setting up of theGeneral of Trade Remedies (DGTR) has as it would have been had it not been for manufacturing facility.concluded that: “The domestic industry the occurrence of the Change in Law,has suffered serious injury, considering the Solar Power Generator/ Procurer • Reimbursement of counter vailingoverall performance, on the basis of shall be entitled to compensation by the Duty (CVD)/ Excise Duty for capitallisted economic parameters such as other party” The Government, through equipment for the units outside Specialmarket share and profitability, which have a clarification dated April 2, to the above Economic Zone (SEZ).sharply declined over the injury period referred Guidelines, has clarified that the2014-2015 to 2017-2018 (Annualised) term ‘change in the rates of any taxes’ as Further, the solar power projectswhereas market share of imports have mentioned in clause pertaining to, Change being implemented by the Central Publicincreased during the same period. This in Law of the said Guidelines includes Sector Undertakings (CPSUs) withhas caused significant overall impairment “change in rates of taxes, duties and cess.” financial support from the Governmentto the domestic industry. Based on the and those rooftop solar projects whichfinal findings of DGTR, the Government, Domestic manufacturing of solar cells are implemented with central financialthrough notification no. 01/2018- and modules in India is being supported assistance are mandated to source theirCustoms (SG) dated July 30, have imposed by the Government of India through requirement of solar cells & modules fromSafeguard duty on import of solar cells Modified Special Incentive Package domestic sources as per extant Guidelines,whether or not assembled in modules or Scheme (M-SIPS) of the Ministry of in a World Trade Organization (WTO)panels, as follows: Electronics & Information Technology. compliant manner.• Twenty-five percent. ad valorem minusanti-dumping duty payable, if any, when This was informed by Power Minister R. Kimported during the period from 30th July, Singh in a written reply in the Lok Sabha.2018 to 29th July, 2019 (both days inclusive);• Twenty percent. ad valorem minus anti-dumping duty payable, if any, when importedduring the period from 30th July, 2019 to29th January, 2020 (both days inclusive);• Fifteen percent. ad valorem minusanti-dumping duty payable, if any, whenimported during the period from 30thJanuary, 2020 to 29th July, 2020 (both daysinclusive); Nothing contained in the notificationdated July 30, mentioned above shallapply to imports of subject goods fromcountries notified as developing countriesvide notification no. 19/2016-Customs(N.T.) dated February 5, 2016, exceptChina PR, and Malaysia. The Guidelines for Tariff BasedCompetitive Bidding Process forProcurement of Power from GridConnected Solar PV Power Projectsnotified on August 3, 2017, providesunder the clause 5.7, Change in Law, that“In the event a Change in Law results16 | Energy Next | August 2018
Industry speakWhile some manufacturers believe that the current proposal from the DGTR will provide the required boost to solar cells and module manufacturers, others saythat the duty will imply a rise in solar tariffs, which will ultimately make solar less attractive to the power buyers. We at Energy Next, spoke to eminent developers and IPPs for their opinions and received a mixed response from the industry. August 2018 | Energy Next | 17
Industry Speak Ashish Khanna our country’s aggressive Renewable Energy program by supplying most cost effective, MD & CEO, Tata Power Solar quality PV products without adversely affecting unit price of Solar power which is “The imposition of safe guard currently competitive with fossil fuel power. duty is an attempt to bring INDIAN manufacturers PV product A pertinent differentiation between PV prices at par with Chinese imports. manufacturing vis a vis other industrial While this will create a level playing products is very rapid change in technology field on short term, it will also pose which means one has to continuously a challenge to developers to manage invest to remain relevant and cost effective. their cost, working capital of projects While there is still possibility of Om pots under execution. The critical success from countries like Vietnam etc. I am sure parameter of this initiative will be to measure INDIAN industry will take full advantage future investments in advance technology of this opportunity and our country will not green field and brown field PV products only benefit from direct employment but also manufacturing units. These investments growth of ancillary units. are important because post two year period SGD period, Indian manufactures will be competitive on their own and contribute toGyanesh Chaudhary benefits, primarily to promote exports but also to cater to the Domestic Tariff Area (DTA). If theMD and CEO, Vikram Solar safeguard duty is applied without exemption as per the notification, the domestic manufacturers in the SEZ willThe Safeguard Duty Notification issued by also be liable to pay Safeguard Duty whenever they sell The Ministry of Finance does not provide modules in India. This is because SEZs are consideredexemption to the projects which have already to be outside the Indian Customs Territory and thisbeen auctioned out (approximately 20-25 would, therefore, be counterproductive for the domesticGW). This will completely derail the solar industry. This move will, in fact jeopardise Honourableindustry. To add on to that, the notification Prime Minister’s Solar Mission targets.does not provide any relief to Solar cells andmodules manufactured in SEZ and cleared to We strongly recommend that:DTA. Currently, 40 percent of Solar ModuleManufacturing Units and 60 percent of Solar • Government should exempt SEZ to DTA clearanceCells Manufacturing Units are located in SEZs. of solar cells and modules • Government should exempt Projects, In light of the SEZ issue, the notification which have already been auctioned outdefeats the very purpose of Safeguard Duty, from the ambit of duties of Safeguard.which is to protect and promote domesticindustry. While it may seem logical that SEZs It should also be noted that it has beenshould be exempted, considering that the whole a year since GST was implemented andpurpose of applying Safeguard duty is to protect developers and EPC contractors aredomestic industry against imports so why still not able to pass on the additionalshould they pay these duties, unfortunately the cost of GST to end consumer duepolicy makers seem to be in dilemma. to regulatory and administrative bottlenecks. Therefore, it will A recent report by Parliamentary Standing be very difficult to pass on theCommittee indicated that in recent years solar cost to end consumer underimports have led to massive job losses. If SEZ change in law clause.units are not exempted from SGD, it will lead tofurther job losses and harm the manufacturingecosystem in India, which is already bleeding.Special Economic Zones (SEZs) enjoy certain18 | Energy Next | August 2018
SAFEGUARD DUTYVikram KailasVC and MD, Mytrah EnergyThe announcement of Safe Guard Duty on Solar Cells and Modules will help further build the momentumon the road to reaching 100 GW of solar capacity by 2022.Developers will now have clarity on the economic impactof the duty and will be able to price it appropriately when bidding in upcoming auctions. As for 20,000MW of projects which are currently under construction, this announcement should help authorities and nodal agencies determine the quantum of relief to be provided to developers and they should be able to notify the same rather than follow a regulatory approval process.Samitla Subba Simarpreet SinghHead Communications, Azure Power Founder-Director, Hartek SolarThe imposition of the safeguard duty will Any implication of duties must accompany The imposition of 25 percent safeguard increase the cost of power did Discoms clarity on how pass through of duties duty on imported solar cells andand consumers and may not bring the will be implemented and timing for such modules will work to the advantage ofdesired effect of increasing manufacturing relief for a smooth transition. Any abrupt domestic manufacturers by making thembase. The pass through of the extra cost from imposition will create chaos and slow more competitive. Indigenous solar panelsafeguard duty, if imposed, would also require things down. Specifically projects under and cell manufacturers should take it assignificant time and effort for final realisation. implementation must be protected in a an opportunity to step up their R&D toAs seen in the case of GST which has been constructive manner and auctions should be come up with more cost-effective andimplemented for more than a year now. We given time to transition to the new taxation efficient technologies that give them anexpect slowdown in expected growth of solar regime. Similarly goods in transit should edge over their Chinese counterparts. Withpower generation as several auctions have be considered for exemption for a smooth the safeguard duty in place for two years,been cancelled due to tariffs over 3 Rupees per implementation of current projects. domestic players should use this periodunit recently , the effect safeguard is likely to to build on their solar cell manufacturinghave. Further a 2 year relief is not sufficient capacity. They should heavily invest infor manufacturing to come up. More time is technology so that they can truly “Make inrequired for complete backward integration. India” and not just “assemble in India”, as isFurther many manufacturing units in India happening now.are located in SEZs for export benefitsand will not realize any advantage from On the flip side, the imposition of importsafeguard duties. duty will escalate project costs by at least 10- 15 per cent. Since solar modules make up To create an impetus for domestic for about 80 per cent of the cost of a projectpanel manufacturing in the country,Government has already come up and 90 per cent of the solar plants in Indiawith manufacturing linked tenders use imported solar panels, the rise inand CPSU schemes - these are better project costs and the subsequent increaseoptions for encouraging manufacturing in tariffs is inevitable. So, the viability ofin India. power purchase agreements which have already been negotiated with developers is a major cause for concern because discoms will be reluctant to take safeguard duty into account to rework the tariffs. August 2018 | Energy Next | 19
Industry Speak Puneet Singh Jaggi ADirector, Gensol Group lthough, 25% safeguard duty seems extreme on the first look, but with the nosedive in the cost of imported Chinese modules, this would largely be set off. In fact, the Developers’ returns won’t change as their landed cost would still be similar to what was earlier and in any case, most of them have a pass through clause when it comes to safeguard duty in their PPA. Similarly, we don’t expect much higher prices in the bidding either, so the discoms and the consumers’ interests are protected. And lastly, domestic manufacturers would have a real shot at competing with imported modules with the safeguard duty.Gagan VermaniCEO & Founder, MYSUNIn one stroke, the Indian solar industry has been pushed back by a couple of years. The cost of solar projects will straightaway go up by 14~15%, which would not only derailthe on-going projects but will also dampen the new pipeline.Quite interestingly, the recommendation by DGTR was to include only China andMalaysia but it seems that even Singapore, Korea, Japan, etc. have also been included.The most intriguing question around this safeguard duty is that who will benefit fromit. Well, there doesn’t seem to be any except only a handful of domestic manufacturers.But there is a long list of losers. We can expect an almost immediate slowdown in thesolar industry and that would also have a huge impact on the large number of solar jobsin the downstream business. There is a lot of equity and banks money at stake too and there is no guarantee that the government will pay a higher tariff or higher price for solar systems now to compensate the solar companies impacted. A more expensive solar energy will anyways won’t help the energy consumers. The rooftop solar industry in particular would see the biggest impact. It is only recently that the industry Sanjeev Aggarwal had genuinely started to adopt solar in a big way driven by the financial benefits. This 14~15% increase CEO, Amplus in solar system prices will definitely draw them away from solar for the time being. India imports more than 90 percent of Lastly, given that the safeguard duty is only for its solar panel equipment from China a period of two year, it doesn’t seem to solve and Malaysia and panels account for the issue of domestic manufacturing more than half of the project cost and either. For that to happen, the since domestic manufacturing is not investors would look for a long- capable of meeting the growing demand, term policy roadmap from the this would mean increased project costs government. So in nutshell, this for project developers, increased tariff safeguard duty is a regressive for customers, increased burden on step and government should manufactures to be more effective and reconsider this move at the at par with their competitors in terms of earliest. cost and quality and an increased risk for investors investing in an uncertain market space..
SAFEGUARD DUTY No Safeguard Duty on Solar Imports for Now, Says Ministry of FinanceSabyasachi Majumdar Considering the recent stay order Background put in force by the Orissa on theGroup Head - Corporate ratings, ICRA safeguard duty notification, the Ministry Recently, the Ministry of Finance of Finance has now announced that the announced the levy of a 25 percentThe solar bid tariffs largely remained below Rs. government will, for the time being, not safeguard duty based on the final 3 per unit in CY2018 varying between Rs. insist on the payment of safeguard duty recommendations proposed by the DGTR.2.44-2.75 /unit, with expectation of favourable price on solar imports. The duty took effect on July 30, 2018.movement in PV modules following the policychanges in China. Safeguard duty is likely to increase The ministry has clarified that The ministry levied the duty despitethe bid tariffs to Rs. 2.9 – 3.1 /unit for the upcoming imported solar cells and modules will be an Orissa High Court order that putbids. For the project already bid out, the amendment assessed provisionally on furnishing a a stay on the implementation of theto bidding norms approved in April allowing pass- simple letter of undertaking or bond. safeguard duty on solar modules andthrough of changes in taxation, duties and cess would cells. ACME Solar had filed a petitionallow the developers to pass through the tariff increase Talking to Mercom about the next after the DGTR recommendationsto the off-takers. The timely approval by the regulators step in the matter, an official at the and received the stay order from theand pass-through of the tariff increase to the off-takers Ministry of Finance, said, “This is a court. The court had then directed theis critical from the cash flow perspective of the project circular. A provisional assessment of government not to issue any notificationdevelopers. the duty will be made and if the court regarding the safeguard duty until says that safeguard duty is applicable, August 20, 2018Rahul Prithiani they will have to pay back, if it says that duty is not applicable, then they However, after the sudden impositionDirector, CRISIL Research will not pay.” of the duty, Hero Future Energies, ACME Solar and Vikram Solar filedThe average solar tariff was aggressive, having This notification issued by the new petitions in the Orissa High Court touched Rs 2.44 per unit a few times, But an central government, is similar to the opposing it.increase in capital costs means solar becomes less Madras High Court’s order passed justcompetitive as compared to wind power, which a few days ago. Madras High Court Then, the Orissa High Court heardaveraged Rs 2.80 per unit in fiscal 2018 and has also had instructed customs officials at the the petition filed by Hero Futureseen tariffs as low as Rs 2.43 per unit. Overall capacity Chennai port to provisionally release Energies, ACME, and Vikram Solaradditions may not be materially impacted as cost the module shipment of Shapoorji against the Directorate General of Tradecompetitiveness of solar with other sources, barring Pallonji Infrastructure Capital without Remedies (DGTR). Noting that thewind, remains high, though there could be some near- paying the safeguard duty. The safeguard duty notification was byterm delays in project implementation. Madras High Court was responding to the ministry despite the court’s stay a petition filed by Shapoorji Pallonji to order on any further notifications until clear its goods without requiring the August 20, the bench has directed it to company to pay the safeguard duty. withdraw the notification for now. (source:Mercom) August 2018 | Energy Next | 21
COVER STORY‘Imposition of safeguardduty is a stepping stonetowards growth’Domestic manufacturers would have a real shot at competing withimported modules with the safeguard duty, says Anmol Jaggi, Director,Gensol in an interview with Anurima MondalQ What are the space. We have handled projects for 2015, we had drafted the 2500 MW solar milestones achieved some of the largest and most renowned power policy for them. Interestingly, we IPP majors in the country. We have are also consulting them for their 1,000 by you in the last one sizeable commissioned, existing and MW Agriculture Feeder Schemes for future projects in pipeline. Due to our Nashik and Nagpur division.year? exceptionally good output and hard work, Alongside, the company is also ‘A’ categoryGensol is one of the largest players in we continue to witness a steady demand in channel partner to the Ministry of New &the solar operation and maintenance our order wins. Renewable Energy for the installation of We are the largest Lenders’ Independent rooftop solar power projects in India, which Engineer (LIE) in for major lending testifies to the quality of such projects that institutions of India including Power we build for the industries and commercial Finance Corporation Ltd, IDBI Bank Ltd, establishments across the country. Central Bank of India, State Bank of India, IndusInd Bank, Yes Bank, among others. Elaborate on your future plans We are also consultants to the and the technology initiatives Maharashtra State Power Generation that are driving the company Corporation Limited (MAHAGENCO), ahead? which is the state-owned power Strongly anchored as a solar consultancy, generation company for Maharashtra. In EPC and operation and maintenance (O&M)22 | Energy Next | August 2018
INTERVIEWservices company, we are now looking at Although 25 percent safeguard dutydiversifying operations into electric parts seems extreme on the first look,manufacturing and solar asset ownership. but with the nosedive in the cost ofWe are focusing on high-tension voltage imported Chinese modules, this wouldproducts which are essential control largely be set-offpanels and are used not just in solarprojects but for any power source, any development of human resources to drive share that you are lookingdistribution, any transmission, any work industry growth and PV adoption is also a huge in terms of developing solarwhere you need to put an HT panel. So, it challenge faced by Indian solar developers. projects?is not just a thought to cater to the solar Furthermore, there is a need to build consumer Gensol has certainly carved a very strongmarket but a vision to serve the electrical awareness about the technology, its economics recess in the consulting and O&M markets,market segment as a whole. and right usage. Land allotment & PPA signing putting it into a leading position, whileTo capture this rising need, Gensol is is a long procedure under the Generation Based it is taking long strides in the projectbuilding a manufacturing unit in Gujarat Incentive scheme, which needs to be simplified. development space, which has the potentialfor high voltage and low voltage panel to catapult it into high growth trajectory.boards, which are niche products, with an India has now Imposed 25 We have plans to own solar assets ofintended capacity of 200 tonnes per day. percent safeguard duty respectable size in the two years to come.In this direction, we are planning an on imported solar panelsinitial investment of about Rs. 20cr that from China and Malaysia. Can you share with us thewill bring the best in class machines from What are your views on this vision and expansion programJapan for this unit, which will roll into announcement? that you have set for theoperations very soon. Although 25 percent safeguard duty seems coming years? extreme on the first look, but with the We are touching about Rs. 70-75 crWhat are the major challenges nosedive in the cost of imported Chinese annually and are expecting to touchfor developers in the sector? modules, this would largely be set-off. In Rs.100 cr this year. Our niche offerings ofHow can those be addressed? fact, the developers’ returns won’t change D&E, O&M and SCADA are performingTransmission and distribution (T&D) as their landed cost would still be similar very well. We have invested in the rightlosses, which are currently pegged at to what was earlier and in any case, most areas, are a profitable company and arearound 40 percent, are a key concern for of them have a pass through clause when doing reasonably well. We are sufficientlysolar power sector in India. However, the it comes to safeguard duty in their PPA. funded at present and we are not lookinggovernment is supporting R&D activities Similarly, we don’t expect much higher for any funding.by establishing research centers and prices in the bidding either, so the discoms We have been receiving interest fromfunding such initiatives. The government and the consumers’ interests are protected. multiple companies to collaborate withhas tied up with world-renowned And lastly, domestic manufacturers us for the SCADA business. We haveuniversities to bring down the installation would have a real shot at competing with built our SCADA business with a lot ofcost of solar power sources and is focusing imported modules with the safeguard duty. diligence. We also plan to expand ouron upgradation of substations and T&D solar rooftop portfolio to around 100lines to reduce T&D losses. Talking about your company, MW by March 2019, mainly throughIndian solar developers are facing land what is your current market brownfield expansion. We currently havescarcity for setting up solar plants. share? What is the market two verticals in the rooftop business -Because of this, option of building floatingpower plants is gaining traction. Thenagain, funding of initiatives like NationalSolar Mission is a constraint given India’sinadequate financing capabilities.Manufacturers are mostly focused onexport markets that buy solar PV cells andmodules at higher prices thereby increasingtheir profits. According to export demand,many new suppliers have tie-ups withforeign players in Europe and United States,something that could lead to reducedsupplies for the fast-growing local market.As another important point, training and August 2018 | Energy Next | 23
cover story | interviewEPC, where it only does the construction Energy. Innovative mechanisms that such as a 30 percent capital subsidypart of a project, and RESCO, where it have ramped up capacity additions for on the system cost for systems beingowns the assets. of rooftop projects is the RESCO mode, implemented on residential rooftops,Our RESCO business is very young, as we where projects are financed by the benefits of accelerated depreciation of 40started it about four to five months back. Developer itself and the ownership will be percent, encouraging financing of systemsCurrently, we have an installed capacity of transferred to the site owner after a fixed under the priority sector and lower10 MW and a pipeline of 20 MW. We are number of years into operations. interest rates.hoping to take this to 100 MW by Marchnext year. Gensol plans to be in the top three Of 100 GW solar target, 40GW How do you see Indiasolar rooftop players in the country by next is to come from solar rooftop emerging as a global hub ofyear and we also plan to invest Rs 50 crore projects. Do you think ‘rent a manufacturing in renewableevery month to scale up its business. rooftop’ policy can help India energy, especially when achieve the target? it comes to the quality ofHow do you see the role of As per industry estimates, more than products?off-grid solutions like rooftop 10,000 MU of electricity will be saved With the rapid evolvement seen in pastsolar contributing to the as avoidance of T&D losses alone in few years in renewable energy spacegovernment’s ambitious project year 2022 alone if 40 GW rooftop PV coupled with proactive governmenton 175 GW by 2022? is achieved. SECI rooftop bids got initiatives, India certainly has theIn order to meet the target of 175 GW quotations as low as INR 53,000 per potential to lead the next phase onof solar energy by 2022, the government kW in Gujarat, Maharashtra and Tamil growth trajectory. The way developers arehas made efforts to develop the rooftop Nadu and a quotation of INR 45,100 for installing solar capacity, we definitely cansolar photovoltaic ecosystem. There is still North-eastern special category states. The achieve the set target of 175 GW.huge scope for development of the market electricity tariffs under the Renewable On the quality front, Indian manufacturersand addressing the barriers faced by the Energy Service Company (RESCO) mode are no lower than their foreign counterpartsstakeholders in the sector. have similarly come down to Rs 4.5 per when it comes to product quality. Only whatThe modular nature of solar PV systems kWh in Rajasthan and Rs 3 per kWh in matters is a price parity and level playingmakes them highly adaptable for use on certain special category states. This comes field to local manufacturers of solar cellsvacant rooftops. The benefits associated just 7 years from the time when utility and modules. The recent move to impose 25with rooftop solar PV systems are scale plants had signed agreement at percent safeguard duty is just a stepping stonemulti-fold. There are now around 1,000 tariffs of over Rs 17 per kWh, signifying towards attaining higher growth. More suchrooftop installers in the country who an almost 75 percent reduction in tariff. initiatives by the government will ensurehave been certified as channel partners To promote solar rooftop, the government boost for growth of solar energy sector.by the Ministry of New and Renewable has further instituted multiple enablers24 | Energy Next | August 2018
ColumnImpact of safeguard dutyimpositionImports of solar cells and modules PUC are taking placeat very low prices resulting in drop in sales realisationof domestic industry thereby hampering the domesticindustry’s ability to compete, writes Praveen SaxenaT he Cabinet Committee on capacity has been installed in the country capacity by 2022. They noted that local Economic Affairs, chaired by as on March 31 from all renewable energy manufacturers do not have sufficient capacity the Prime Minister Narendra sources which includes around 34,145 MW to meet their needs. Modi has given its approval for from wind, around 21,651 MW from solar,implementation of Phase-Ill of Off-grid around 4,486 MW from small hydro power The Phase-Ill of Off-grid and Decentralisedand Decentralised Solar PV Application and around 9,502 MW from bio-power. So Solar PV Application Programme has threeProgramme to achieve additional 118 far, 71.33 GW of renewable energy capacity components.MWp (Mega Watt peak) off-grid solar PV has been installed in the country up to Junecapacity by 2020. 2018. To achieve the balance target of 103.67 Solar Street Lights: 3,00,000 solar street GW, investment of around 76 billion US$ has lights will be installed throughout the country . Almost simultaneously, the ministry of been estimated at present capital cost whichfinance has notified the Directorate General of includes 53.20 billion US$ as debt and 22.80 Stand-alone Solar Plants: Solar plants ofTrade Remedies decision to impose safeguard billion US$ as equity for the debt-equity ratio individual size up to 25 kWp will be promoted.duty on solar panels imported from China and of 70:30 as per Central Electricity RegulatoryMalaysia. The DGTR had recommended the Commission (CERC) norms. Solar tariffs Solar Study Lamps: 25,00,000 solar studyimposition of 25 percent safeguard duty on are currently at around Rs 2.75 per unit, but lamps will be provided.solar panels from these two countries about safeguard duty is expected to raise it by ata fortnight ago for one year, followed by 20 least 50 paise, according to developers. India’s import dependence for meetingpercent for the next six months and 15 percent its solar equipment demand was more thanfor another six. It did so on the grounds that The safeguard duty is certain to raise 90 percent in past three financial years. Thesuch imports were causing ‘serious injury’ to tariffs of future solar projects. More than quantum of imported solar cells and modulesdomestic solar manufacturers. The duty comes 90 percent of solar panels and modules is around 90 percent. India met 92.11 percentinto effect from July 30. used in Indian solar projects come from requirement of its solar equipment through these two countries. The DGTR had imports in 2017-18 while the proportion was To recap last two years of renewable energy responded to a complaint from the Indian 91.57 percent and 95.31 percent in 2016-17Industry, in the year 2016-17, aggregate Solar Manufacturers Association (ISMA) and 2015-16 respectively. Imports of solarcapacity of around 11,322 MW of renewable last December by conducting its own cells and modules PUC are taking place atenergy was installed in the country, and in investigation. The probe concluded that very low prices resulting in drop in salesyear 2017-18, aggregate capacity of around indigenously made solar cells and panels, realisation of domestic industry thereby11,887 MW was installed. Renewable energy which constituted just 10 percent of Indian hampering the domestic industry’s abilityinstallations in the country are progressively solar projects in 2014-15, had fallen even to compete and make and sell the solar cellsincreasing. The renewable energy sector in further in subsequent years. Solar developers and modules. The value of solar cells andIndia is consistently growing and continues to preferred Chinese and Malaysian solar photovoltaic cells whether or not assembledremain attractive for investors from across the equipment, as it was cheaper than that in module and panel, imported from Chinaworld. Solar tariffs in India saw the lowest ever manufactured in India. jumped to USD 3.41 billion in 2017-18 fromlevel of Rs.2.44 per unit in reverse auctions USD 596.73 million in 2013-14.carried out by Solar Energy Corporation of Solar developers had been opposingIndia (SECI) in May 2017, for 200 MW and strongly on the grounds that it would raise The levy of safeguard duty would not onlyagain in July for 600 MW. Renewable energy tariffs, as they would have no option but lead to mitigation of serious injury to thesector in India is attracting companies from to pass on the extra charge to discoms and domestic solar cell and module manufacturersacross the world. ultimately consumers. This in turn might but would also improve viability of the slow down India’s ambitious solar programme upstream and downstream industry associated As per MNRE official releases, a total of which aims to have 100,000 MW of solar in the value chain of the manufacturing ofaround 69,784 MW of renewable energy solar cells and modules. The views and opinions expressed in this article are the author’s own and do not necessarily represent the views of the magazine. Praveen Saxena, CEO, Skill Council of Green Jobs August 2018 | Energy Next | 25
VESTAS | HYBRID SOLUTIONSImportance of renewablehybrid solutions in IndiaWith hybrid solutions, solar delivers power during day peak while wind energytakes care of evening peak and night load, writes Amar Variawa, Director -Marketing & Public Affairs, India and SE, Vestas Wind Technology India Pvt. Ltd. Recently, MNRE has announced the tender of 2.5 GW for wind-solar hybrid project which will prove to be a real game changer in India.In India, land is our scarcest resource. a secure stream and were considered will spur more innovation and technology That’s why wind and hybrid solutions unpredictable. advancement. with various renewable energy sources make so much sense to optimize But now, with hybrid solutions, solar As we all know, India has ambitiousthe resources like land, transmission delivers power during day peak while targets to add unprecedented level ofinfrastructure, etc. The hybrid solutions wind energy takes care of evening peak RE power into the grid. This drive hascould be either greenfield or a brownfield; and night load. Combine this with potential to enable India to meet energycould be co-located or separated. advanced battery storage and we get a security by utilising more natural and stable source of power to the grid over sustainable sources which will have no In May 2018, India’s Ministry of New the 24-hour cycle. Recently, MNRE has carbon footprints. The complementaryand Renewable Energy announced an announced the tender of 2.5 GW for strength of wind and solar through hybridambitious hybrid policy, where existing wind-solar hybrid project which will solutions takes care of not only 24-hour loadsites will be used to house both wind prove to be a real game changer in India. pattern but also ensure power continuity,parks and solar arrays. This is important, This large-scale grid connected, utility grid stability as well as the most efficientas just 10 years from now, land will project will change the definition of and optimised usage of our valuable land. Itbecome even scarcer. A bit different energy mix for the generation to come. It makes absolute sense…!approach where solar and wind are inabundance will allow us to develop bothexisting and new sites with hybrid plants,where they are deemed most effective. Even today, in India, we are alwaysconcerned about security of supply andstability of grid over a 24-hour cycle. Ourindustrial load is heaviest during daytime,the evening witnesses the domestic ACand TV drawing power, and farmers drawtheir load for irrigation during the night.On the other hand, neither solar nor windwere consistent enough alone to deliver26 | Energy Next | August 2018
wind | technologyAnti-icing features in windturbines becoming a mandateIndustry participants are focussing on implementing de-icingtechnologies which are convenient to install and maintain while directingR&D efforts towards investigating the material science behind theaccumulation of water and its conversion to ice, writes Avimanyu Basu.W ind energy harvesting from the numbers at year-end 2012. De-icing WinWind partnered with VTT research centre systems promise lucrative of wind turbines is one of the most critical for exploring opportunities with leading edge opportunities in the challenges that is being faced by the wind turbine de-icing systems since the early 1990’s (sub- colder regions mainly stakeholders at present, particularly in the west megawatt and 1MW machines). Down the line,due to the high velocity winds and the where extreme climate prevails. Since most of the Skellefteå Kraft engaged WinWind to conductassociated force. However, wind power turbines have a specified operating wind speed a pilot project development of an ice preventionstakeholders avoid building wind farms in range, it has been found that the turbines stand system in 2008. The research results indicatedthe colder regions since the aerodynamic still 5 to 20 percent of the time (sometimes even that the heating system cannot be placed close toproperties worsen when ice accumulates 25 percent) depending on the location resulting the lightning protection system.on the rotor blades. The energy harvesting in a loss of productivity ranging between 14 tocapacity of the turbines are affected due 20 percent. Scandinavian countries as well as ll Active and passive de-to unavoidable redistribution of the loads China, Canada have different standstill times icinginterrupting the overall balance. This can due to ice. However, more than USD 600 million Most of the global wind power stakeholders havealso lead to breakdown of the blades and globally is a reasonable average accounting for leveraged technologies associated with activethe other mechanical components such the loss in terms of electricity production from de-icing I.e. using hot air to de-ice the turbineas nacelles. In order to avoid this, the winds because of icing. Due to the accumulation blades. Germany based Repower developed aoperators shut down the systems as ice of ice on the blades the turbine cannot rotate and design which have two ducts arranged inside theformation starts resulting in considerable cannot generate electricity. In some cases, ice is rotor blade which supports hot air flow.losses. found on the up to 2 meters and it is significantly challenging to remove when the height is as high De-icing solutions usually comes with all Potential of cold as 100 meters. payback time of two years reflecting the wholeregions as energy de-icing market worth of 1 billion euros.harvesting hotspots ll Stakeholders adopting The market is expected to grow since theAccording to EWEA, 45 to 50GW of wind a collaborative approach growth is directly dependent on the growthenergy have been generated in cold climates to address challenges of the wind power market. Wind power isby 2017 which represents a 72 percent increase EU engineered the “Windheat Project” involving expanding globally dramatically and there is a six conglomerates from four EU countries trend of expansion towards the colder regions along with researchers at the Fraunhofer due to the greater force of wind translated to Institute for Manufacturing Engineering and higher generation levels. Some of the available Automation IPA. The researchers focussed on technologies are pumping or circulating of the development of ice detection and de-icing hot air in the blade or implementing electrical system for small wind turbine driven power heating mats. Germany based Enercon has generators. Collaborations have been happening been the pioneer of de-icing system in wind between OEMs and research institutes or turbines and has been implementing commercial technology developers as well as utilities ice detection and de-icing system since 2004. to maximise value proposition in de-icing Enercon used a powerful hot air ventilator to technologies. For example, Nordex collaborated heat the whole blade which corresponds to with utility Skellefteå Kraft in a supply contract heating of 10 to 20 tons of composite. Though of 118 turbines equipped with a leading edge the method works, heating of this considerable anti-icing system. Furthermore, Finnish mass can take a day. Wind turbine specialist Denmark-based Vestas has started developing August 2018 | Energy Next | 27
WINDde-icing solutions in response to a customer De-icing coatings are usuallyrequest. The Vestas de-icing system (VDS) evaluated according to their iceengages a heating unit which is responsible for adhesion strength (measured incirculating hot air across the blades in order kilopascals) or the shear stressto de-ice almost two thirds of the leading edge required removing ice from a surface.which, by volume, is about a third of the wholeblade. The first prototype of this kind of de-icing icing coatings perform at 100 kPa, the Colorado a carbon nanotube (CNT) coating and icesystems was installed in Sweden. team achieved a significant performance at 5 detectors. Thus, it was possible to heat only the kPa. particular segments which were affected such The de-icing system is implemented as a as the edges of the rotor blade. Consistently,part of the SCADA system which in turn, is Development of anti-icing surfaces for Spanish stakeholder Gamesa has amalgamatedcontrolled by an algorithm. Once the loss due to industries such as aviation and energy at low the solution of de-icing along with a solutionice exceeds a pre-set value, the algorithm initiates temperature has still not been addressed. for turbine longevity. The company developedthe de-icing process. Offshore turbines with Though there have been experiments with a technology called Bladeshield, which can beanti-icing technologies are usually built more on non-wetting surfaces and liquid-infused surfaces described as an anti-icing hydrophobic coatingEngland and Scotland which are installed across and their modification into ice phobic surfaces; which can be applied in the form of a ‘paint’.the North Sea i.e. regions very little ice problem. the researchers encountered challenges with The paint has also been claimed to resist erosionThe onshore turbines in which ice problems are high freezing temperature, high ice adhesion and has been targeted towards its own 2.0 MWsignificant are usually with output ratings of 2 to strength, and high cost. Similarly, researchers to 2.5 MW and 5.0 MW onshore and offshore5 MW. The turbines with output greater than 5 at the University of Houston have synthesised a turbines along with other OEM products. Also,MW are usually installed offshore and thus, are material known as a magnetic slippery surface a possible solution can be the implementationseldom equipped with a de-icing system. The (MAGSS) which can repel ice and can be applied of a black-coloured coating comprising ofwind turbines are gradually getting bigger and to any surface. The UH team coated one side of carbon nanotubes. Norway based Icesolutionbigger with 2.5 to 3 MW being a typical rating the surface is coated with a magnetic material has developed a similar de-icing technology.for land based wind turbines. Electrical heating and a thin film of magnetic fluid (a mixture of The coating is put under the erosion-resistanttechnologies are being leveraged by Siemens and fluid and iron oxide nanoparticles) is deposited top coat for visual aesthetics. The thin coatingNordex. The technology is based on a carbon on the other side i.e. the outer side. When absorbs microwaves and gets heated in thefibre or graphite mat which is electrified to heat the surface comes in contact with a droplet, process. The heat is diffused to the ice layer toa part of the blade. Siemens focuses on de-icing the magnetic fluid prevents the droplet from melt the ice. Comparatively, microwaves offerthe leading edge of the blade and not the tip. reaching the solid surface. The technology, apart a more effectual heating solution than hot air.However, the technology is comparatively from its application in the wind energy industry, Also, the hot air is circulated across the entireexpensive than the alternate hot-air enabled presents significant opportunities in the aviation blade in contrast to which the microwaves heatsystem and can be lightning sensitive. Being industry. The aircraft often encounter freezing up just 1 to 2 percent of the blade volume i.e. thevulnerable to lightning strikes, the electric rain or super-cooled water droplets resulting in outer coating which is sufficient to shed the ice.heating mats can be destroyed implying ice formation. Since a heatwave can be easily generated throughcost-intensive repair. If electric mats are hit by a microwave and the mentioned coating islightning, then a significant set of cables need to ll Enter nanotechnology simple to formulate, the solution presents a cost-be replaced. In order to avoid this, a solution is The EU-driven WindHeat project partners effective option. One of the major challengesrequired. segmented the blade in a number of zones for this technology is low electricity prices in and each of the segments was integrated with A number of stakeholders have focussed onpassive de-icing i.e. implementing hydrophobiccoatings to keep the ice off the blades. De-icingcoatings are usually evaluated according to theirice adhesion strength (measured in kilopascals)or the shear stress required removing ice froma surface. Thus, the coating is more effectiveif the equivalent kilopascal rating is lower.A team of researchers from Colorado StateUniversity have developed a gel-based, PDMS(polydimethylsiloxane) coating technology withanti-icing features. The technology has beenclaimed to be applicable to the energy, aerospace,automotive and marine industries. While mostof the commercialised soft de-icing coating offeraround 40 kPa and the rigid-material based de-28 | Energy Next | August 2018
TECHNOLOGYThe Rice University chemists developed surface meets the material surface should exceeda superhydrophobic (water-repelling) 150 degrees. The more the angle, the greater willtechnology which will prevent water be the water repulsion. The team used graphenefrom freezing above 7 degrees. nanoribbons formulated with a fluorine compound to enhance their hydrophobicity.areas like Scandinavia and UK. The wind farms of Rice lab chemists has been found to effectively It was found that the nanoribbons alteredalready generate excess electricity and thus, it can remove ice from a static helicopter rotor blade with longer perfluorinated chains developedpartially be leveraged for hot air circulation on in a minus-4-degree Fahrenheit environment. into films with a higher contact angle. It waswind turbine blades. The technology promises application in de-icing analysed that below 7 degrees, the water would systems for aircraft, wind turbines, transmission condense within the structure’s pores – thus, the Since the icing continues for weeks or lines and other surfaces which are exposed to superhydrophobic and ice-phobic propertiesmonths it is important to deice completely in adverse winter weather. The coating consists would be lost. This would necessitate at least 12regular intervals. With the Icesolution coating of nanoribbons produced out of disintegrated volts of electricity to heat the material retain itstechnology, the whole blade can be de-iced. nanotubes. The nanoribbons in composites repellent properties.However, de-icing only a part (mainly the interconnect and conduct electricity acrossleading edge and not the tip) is sufficient for the material with low power supply. When According to Mr. Joachim Karthauser,maintaining the usual operational efficiency. the coating is applied to the wings or blades in Co-founder of Icesolution, it has been motion, a thin layer of water forms between the challenging for the wind turbine OEMs to find Disruptive innovations developed for other heated composite and the surface which reduces the ideal balance between erosion resistanceapplications can be used directly or can be the adhesion of the ice and allows it to fall off and de-icing functionality, due to which themodified according to the requirements of the without melting away completely. coatings seldom survive harsh conditions. Inwind turbine industry. For example, researchers order to address this challenge, a number ofat the University of Michigan developed a self- Also, the Rice University chemists developed such high-tech coatings have been analysedhealing, water-repellent, coating which features a superhydrophobic (water-repelling) technology in the “TopNANO” program. “TopNANO”higher durability than its commercially available which will prevent water from freezing above represents a collaboration between researchcounterparts. The coating has been synthesised 7 degrees. Once the de-icer is sprayed on institutes, technology developers and OEMsout of a combination of materials collectively the surface, a film is formed constituting of (SP Chemistry, Materials and Surfaces,called “fluorinated polyurethane elastomer” conductive graphene nanoribbons. This enables KTH Royal Institute of Technology, Saab,and a water-repellent molecule “F-POSS.” The heating of the material by passing electricity to Danfoss, AB Electrolux, Fläkt Woods, MWresulting material has a rubbery texture and melt ice cold environment making it appropriate Innovation, n-TEC, Nibe Heating Systems,can be sprayed on to any surface. The self- for aircraft and wind turbines operating in Re-Turn, Gränges, Vattenfall, VTT andhealing properties enable the migration of new cold regions. Theoretically, superhydrophobic Aarhus University) and it has been directedmolecules if the F-POSS molecules are scraped materials have a water-contact angle exceeding towards the development of nanotechnology-from the surface. 150 degrees i.e. the angle at which the water enabled methods to reduce challenges related to ice build-up with passive anti-ice protection The coating technology developed by a group for the wind turbine, aerospace and heat exchanger industries. ll Convergence of aviation and wind power applications A similar technology can be leveraged for inflight de-icing in commercial aviation across a range of turbofan and turboprop-engine powered aircraft. Though most of the modern jetliners feature composite or polymeric wings which have anti- icing features, the microwave enabled de-icing technology can be applied to aluminium wings. Since there is a significant supply backlog in the commercial aerospace a number of aviation stakeholder have been acquiring old aircraft which have completed its service life (typically 25 years or 60000 to 75000 pressurization cycles). Big MW-scale wind turbines, particularly the blades, have an effect on radio communication August 2018 | Energy Next | 29
wind | technologyand it can result in safety and security concerns manufacturing engineers to select better participants are focussing on implementingif it disrupts air traffic control signals. As a result, materials for the fabrication of aircraft wings or de-icing technologies which are convenient tocountries like Sweden do not allow wind parks parts which are prone to ice formation. install and maintain while directing R&D effortsin the radius of 100 kilometres near airbases. towards investigating the material science behindNordex has installed a number of turbines close Also, researchers at Penn State developed a the accumulation of water and its conversionto the Berlin airport which need to stand still technology similar to the lotus leaf-like liquid to ice. A number of initiatives from academiawhen heavy traffic is prevailing. The Icesolution repellence and developed a nano/micro-textured are focussing on manipulating the interactioncoating has been claimed to absorb all or at least slippery surface which is particularly effective between water particles and the surface materiala part of all microwave radiation, thus giving for repelling water is in the form of vapour or to prevent the water from accumulating or icethe turbines, a stealth characteristic i.e. making tiny droplets. The developed surface brings from forming. However, it can be expectedthe wind turbines “virtually invisible”. While this together architectures of lotus leaves and pitcher that it would take at least 5 years’ time for thesedoesn’t affect the communication for aviation plants enabling high surface area along with a theories to mature into commercial productsapplications, an array of similar turbines can slippery interface to enhance droplet collection particularly in applications which operatedisrupt the airspace for take-off and landing for and mobility. it can be noted that the mobility in extreme environments such as aircraftany aerodrome. of droplets is dependent on the level on which components. For example, with more-electric the liquid wets the surface. The researchers aircraft configuration, the wing leading edge According to a research initiated at the analysed the two states (Cassie – where the and engine inlet guide of the Airbus A380 areUniversity of Michigan, rubbery coatings liquid partly floats on a layer of air or gas, and heated with bleed air for de-icing (not the entireoutperformed other materials with respect to Wenzel – where the droplets are in full contact wing). Even then leading edge is only partiallyice-phobic properties even if it is not water- with the surface) to determine this level. It was de-iced. This challenge eventually highlightsrepellent. As per researchers, a materials ability found that droplets on rough surfaces are mobile an opportunity for a number of stakeholdersto shed water is not dependent on its ability to in the Cassie state and static in the Wenzel state. (service providers) not only in aviation butshed ice and the ice-phobic abilities are governed Thus, the Wenzel state lead to ice formation and also across other verticals. The offshore windby a phenomenon called “interfacial cavitation.” accordingly, ice removal. Thus, to make Wenzel market is expected to grow at a rapid pace in theIf ice sticks to an aircraft component, a high state droplets mobile, the researchers made near-term, particularly in Europe (according tomagnitude of force will be required to separate micrometer scale pillars into a silicon surface Wind Europe, an average capacity of 12.6 GWthem. On the other hand, if ice sticks to a followed by nanoscale textures on the pillars. will be added every year till 2022 with a quarterrubbery surface, a small magnitude of force can The nanotextures were applied with a layer of of this being offshore). With unavailability ofessentially deform the rubbery surface and break lubricant for coating which reduced adhesion of an appropriate de-icing technology, the relatedfree the ice. However, for aviation applications droplets. Further research can result in solutions losses will also increase exponentially. Thissuch as airplane coatings, the coating should be which will find a balance between erosion will result in a new technology domain whichhighly durable. Thus, the material can be less stability and ice resistance enabling prevention of would necessitate minimum time for concept-rubbery and more rigid since external agents icing and frosting on aircraft wings. to-commercialisation. Immediate investorssuch as high winds and vibration that would and technology developers can initiate businesshelp to release the ice. Thus, controlling the ll Conclusion models to have the first mover advantage.smoothness and flexibility of the coating would Formation and accumulation of ice is graduallyenable the control of the degree of ice repellence emerging as a significant threat across industries The author is Team Lead (Research) at Informationand durability such as renewable energy and aviation which Services Group can translate to high monetary losses. Industry (Views expressed are personal) A significant level of research has beendirected towards investigating the phenomenonbehind the formation and accumulation of iceon the rotor blades of the wind turbines. Forexample, researchers from University CollegeLondon used computer models of simplecrystalline particle surfaces to investigate theinteraction between structures and water onmolecular level impact ice crystallization. Oneof the common assumptions was the properalignment of a particle’s surface structure withthat of ice supports ice formation. Accordingto the researchers, if a surface is aligned withfor one ice face, it may not align with anotherand two identical surfaces can result in icecrystal formation in three different orientations.This kind of research can enable aircraft30 | Energy Next | August 2018
GST | STORAGEGST Council cuts rate on Li-ion batteriesThe Li-ion batteries, which earlier attracted a GST rate of 28 percent, will now fallunder the 18 percent bracketn a bid to promote electric vehicles (EV) in the country, the government has slashed the GoodsI and Services Tax (GST) on lithiumion (Li-ion) by 10 percent. The Li-ionbatteries, which earlier attracted a GSTrate of 28 percent, will now fall underthe 18 percent bracket. The news comesas a relief to EV enthusiasts, policymakers and battery manufacturers fromall over the world. The batteries areinevitably part of India’s Energy story,and the renewable energy market haswelcomed this reduction in GST ratewith open arms.Talking about the government’s move,Debi Prasad Dash, Director, IndiaEnergy Storage Alliance (IESA) said, Director of IESA and member of Expert to provide them advanced Lithium-“We welcome the steps taken by the GST Committee setup by MNRE for drafting Ion Batteries for application in theirCouncil on the reduction of the GST National Energy Storage Mission agrees E-Rickshaws.for Lithium Ion Batteries from 28% toThe Li-ion batteries, which earlier attracted a GST rate of 28 percent,18%”. Both electric vehicle and renewablewill now fall under the 18 percent bracketenergy industry will be benefited bythis step. IESA as an industry had sent with Hiren. He mentioned that “further Mr. Deepak Thakur, CEO – Hybrid reduction of GST for energy storage and Energy Storage business, Sterling from to 5 percent (similar to solar and Wilson Pvt. Ltd said, “It’s a welcome components) or to 12 percent (similar to move from the government to reduce GSTseveral letters to GST council earlier on an electric vehicle) is essential to boost on lithium-ion batteries from 28 percentthis reduction and also raised the issue the energy storage adoption in India, to 18 percent and will surely acceleratewith authorities at Ministry of New and which can help accelerate investment in overall decarbonization objective at theRenewable Energy (MNRE), Ministry of manufacturing as well. We urge finance national level. It is indeed a positivePower (MOP) and NITI Aayog at different ministry to extend the rate reduction to development that the government has alsooccasions.” other forms of energy storage technologies cut GST on raw materials for batteriesAppreciating the government, Hiren including advanced lead acid, sodium so as to boost domestic manufacturing.Shah, Sr Director- Energy Storage, Delta based batteries, flow batteries, metal air India is the third largest contributor inand member of IESA Leadership Council batteries, ultra-capacitors, fuel cells and the world to renewable energy expansion.commented: “It’s a welcome move to thermal storage technologies.” This green energy capacity build upreduce the GST from 28 percent to 18 Naveen Sharma, Vice President of offers in itself the immense potentialpercent although 5 percent similar to Exicom, the largest supplier of Li-ion for battery energy storage adoption.solar industry could have been ideal. batteries in India, feels the that country Integration of battery energy storageNevertheless, it’s a welcome step. needs to set up mid and large-scale, to existing and new renewable energyIronically if the lithium- ion battery is lithium-ion battery manufacturing projects, micro-grid applications, hybridsold fitted inside an EV the GST would capacity. Recently, the company joined power projects would not only improvebe 12 percent. These are some of the finer hands with Kinetic Green, India’s largest dispatch ability of these energy assets butpoints which still need to be looked into.” manufacturer of ICAT and Government also create improved viability.”Dr. Rahul Walawalkar, Executive approved electric three-wheeler vehicles August 2018 | Energy Next | 31
ICRATechnology advancements andtheir effects on renewablesThe advancement of technology in renewable energy helps in efficiencyimprovement and this coupled with scale benefits to improve the tariffcompetitiveness in future, which remains a positive for the sector,writes Girishkumar Kadam, Vice President & Sector Head, CorporateRatings, ICRA Limited. R enewable energy sector in India has seen a strong growth in to strong policy support both at central capacity addition in the last and state government level besides the ten-year period as seen through supportive regulatory framework laid out an installed capacity increasing from 11 by the regulatory commission bodies. While the sector has been dominated by GW as on March 2008 to 70 GW as on wind turbine technology over the two March 2018, reflecting a 20 percent CAGR decades, the solar sector – especially the growth. This in turn has also led to double photo voltaic (PV) cell technology to the renewable capacity share within the generate the power- too has seen a fast overall power generation capacity to traction in last five-year period, also led about 20 percent as on March 2008 over by sharp fall in PV module price level the same period. The renewable energy internationally. Other segments in the sector in India has gained attraction due renewable energy space (such as biomass,34 | Energy Next | August 2018
RE technologybagasse co-generation & small hydro) process, could result into further as well as for hybridization of existinghowever continue to face hurdles due to improvement in the tariff competitiveness wind or solar projects, given the highermix of factors such as fuel availability & of solar energy. Besides the module generation profile expected (with annualexecution risks associated – affecting their efficiency, the project size for solar PV PLF between 30 percent to 45 percent).capacity addition over the period. based project has increased considerably from less than 20 MW to about 200 MW MNRE has also outlined plans to For wind energy sector, the majority of & more at one location – which can also auction off-shore wind project capacitycapacity addition by private IPPs has been result in the scale benefits in bringing (of about 5 GW in the near future). Forfeed-in tariff till March 2017 across the down the cost structure for execution to off-shore wind projects, capital cost isstates and subsequently, there has been some extent & ensure cost efficiency in likely to be relatively much higher (abouta structural shift in tariff route which O&M as well. Rs. 15-17 Cr. per MW) than the on-changed to ‘bid based auction route’ for shore wind energy project (estimated toaward of wind energy projects, with the With the improving tariff range between 6.5-7 Cr./MW), given theintroduction of reverse bidding by the competitiveness of both wind and solar technical complexities involved. This inMinistry of New and Renewable Energy PV technology, hybrid wind-solar projects turn may necessitate the policy support/(MNRE) in February 2017. This auction in also are likely to be competitive in tariffs fiscal incentives so as to improve the tariffFebruary 2017 for award of wind energy w.r.t to individual wind or solar energy competitiveness of energy based out ofprojects of 1 GW for the first time in India projects, given the benefits associated off-shore wind energy project, as alsodiscovered the competitive tariff which with hybrid projects (mainly in respect seen earlier in case of solar PV projectswas much lower than prevailing feed-in of lower capital cost, optimization in CY 2009-2012 through National Solartariff levels across the states. With wind of transmission infrastructure and Mission through bundling mechanism ofbid tariffs remaining below Rs. 3/unit in higher generation expected). Given conventional power with solar power andthe subsequent bidding rounds conducted that critical infrastructure such as land viability gap funding (VGF) route.by MNRE as well as state utilities in states and; evacuation network for wind orsuch as Gujarat and Maharashtra, IPP’s solar project accounts for about 10-12 With the advancement of technology infocus has now shifted to technologically percent of overall project cost, hybrid wind and solar PV segment as also beingsuperior with high efficiency wind projects would benefit from a reduction seen through improvement in the scaleturbines so as to ensure the sustained in capital cost to some extent due to and efficiencies, tariff competitivenesshigh generation level through harnessing common infrastructure and land use in of wind and solar PV based energy isthe available wind potential at a given place. Further, the generation profile likely to improve further which remainssite. As a result, ability to ensure the high would be relatively higher than standalone a positive for the sector. Further, thePLF lecel (i.e. in excess of 35percent) at wind or solar project also with lower emerging new technologies such as batterythe selected sites with wind potential, variability in generation profile to some storage & floating solar panels, the costremains critical for the winning bidders/ extent, given that generation from both economics and policy support will alsodevelopers who have recently won such the sources is at different intervals and in play a critical role for deployment and towind energy projects at a tariff below Rs. complimentary seasons. As a result, the ensure the tariff competitiveness of solar3 per unit. adequate evacuation network availability energy based on such new technologies in would be critical for new hybrid projects near future. In case of solar sector, the capacityaddition in India is mainly PV based, (Views expressed are personal)thanks to a sharp decline in PV moduleprice level internationally over the last3-4 years period. Given that PV modulecost attributes to about 55-60 percent ofthe project cost, decline in PV moduleprice level coupled with softening interestrate cycle & long-term debt availabilityhas led to a significantly improved tariffcompetitiveness of solar PV based energyin last 2-year period. Within the PVtechnology, module efficiency levels haveseen some modest improvement overthe last 4-5 years period and any furtherimprovement in efficiency levels in futurealong with cost optimization efforts byOEMs in PV cell/module manufacturing August 2018 | Energy Next | 35
MitsubishiImproved indoor air qualitywith innovative technologyMitsubishi Electric offers smart and effective solutions to improve airquality in the house called Lossnay ventilation, which is simultaneouspursuit of ventilation and energy saving, writes Yozo Ito, Director andBusiness Unit Head - Air conditioners, Mitsubishi Electric India Pvt.Ltd. R enewable energy sector in India has seen a strong growth in capacity addition in the last to strong policy support both at central ten-year period as seen through and state government level besides the supportive regulatory framework laid out by the regulatory commission bodies. an installed capacity increasing from 11 While the sector has been dominated by GW as on March 2008 to 70 GW as on wind turbine technology over the two March 2018, reflecting a 20 percent CAGR decades, the solar sector – especially the growth. This in turn has also led to double photo voltaic (PV) cell technology to the renewable capacity share within the generate the power- too has seen a fast overall power generation capacity to traction in last five-year period, also led about 20 percent as on March 2008 over by sharp fall in PV module price level the same period. The renewable energy internationally. Other segments in the sector in India has gained attraction due renewable energy space (such as biomass,36 | Energy Next | August 2018
RE technologybagasse co-generation & small hydro) process, could result into further as well as for hybridization of existinghowever continue to face hurdles due to improvement in the tariff competitiveness wind or solar projects, given the highermix of factors such as fuel availability & of solar energy. Besides the module generation profile expected (with annualexecution risks associated – affecting their efficiency, the project size for solar PV PLF between 30 percent to 45 percent).capacity addition over the period. based project has increased considerably from less than 20 MW to about 200 MW MNRE has also outlined plans to For wind energy sector, the majority of & more at one location – which can also auction off-shore wind project capacitycapacity addition by private IPPs has been result in the scale benefits in bringing (of about 5 GW in the near future). Forfeed-in tariff till March 2017 across the down the cost structure for execution to off-shore wind projects, capital cost isstates and subsequently, there has been some extent & ensure cost efficiency in likely to be relatively much higher (abouta structural shift in tariff route which O&M as well. Rs. 15-17 Cr. per MW) than the on-changed to ‘bid based auction route’ for shore wind energy project (estimated toaward of wind energy projects, with the With the improving tariff range between 6.5-7 Cr./MW), given theintroduction of reverse bidding by the competitiveness of both wind and solar technical complexities involved. This inMinistry of New and Renewable Energy PV technology, hybrid wind-solar projects turn may necessitate the policy support/(MNRE) in February 2017. This auction in also are likely to be competitive in tariffs fiscal incentives so as to improve the tariffFebruary 2017 for award of wind energy w.r.t to individual wind or solar energy competitiveness of energy based out ofprojects of 1 GW for the first time in India projects, given the benefits associated off-shore wind energy project, as alsodiscovered the competitive tariff which with hybrid projects (mainly in respect seen earlier in case of solar PV projectswas much lower than prevailing feed-in of lower capital cost, optimization in CY 2009-2012 through National Solartariff levels across the states. With wind of transmission infrastructure and Mission through bundling mechanism ofbid tariffs remaining below Rs. 3/unit in higher generation expected). Given conventional power with solar power andthe subsequent bidding rounds conducted that critical infrastructure such as land viability gap funding (VGF) route.by MNRE as well as state utilities in states and; evacuation network for wind orsuch as Gujarat and Maharashtra, IPP’s solar project accounts for about 10-12 With the advancement of technology infocus has now shifted to technologically percent of overall project cost, hybrid wind and solar PV segment as also beingsuperior with high efficiency wind projects would benefit from a reduction seen through improvement in the scaleturbines so as to ensure the sustained in capital cost to some extent due to and efficiencies, tariff competitivenesshigh generation level through harnessing common infrastructure and land use in of wind and solar PV based energy isthe available wind potential at a given place. Further, the generation profile likely to improve further which remainssite. As a result, ability to ensure the high would be relatively higher than standalone a positive for the sector. Further, thePLF lecel (i.e. in excess of 35percent) at wind or solar project also with lower emerging new technologies such as batterythe selected sites with wind potential, variability in generation profile to some storage & floating solar panels, the costremains critical for the winning bidders/ extent, given that generation from both economics and policy support will alsodevelopers who have recently won such the sources is at different intervals and in play a critical role for deployment and towind energy projects at a tariff below Rs. complimentary seasons. As a result, the ensure the tariff competitiveness of solar3 per unit. adequate evacuation network availability energy based on such new technologies in would be critical for new hybrid projects near future. In case of solar sector, the capacityaddition in India is mainly PV based, (Views expressed are personal)thanks to a sharp decline in PV moduleprice level internationally over the last3-4 years period. Given that PV modulecost attributes to about 55-60 percent ofthe project cost, decline in PV moduleprice level coupled with softening interestrate cycle & long-term debt availabilityhas led to a significantly improved tariffcompetitiveness of solar PV based energyin last 2-year period. Within the PVtechnology, module efficiency levels haveseen some modest improvement overthe last 4-5 years period and any furtherimprovement in efficiency levels in futurealong with cost optimization efforts byOEMs in PV cell/module manufacturing August 2018 | Energy Next | 37
ENERGY STORAGEEnergy storage technologiesevolving over timeThe market for energy storage is likely to grow to over 300 GWh during2018-25 and India is expected to attract investment in 2-4 gigafactoriesfor advanced Li-ion batteries, writes Debi Prasad Dash, Director, IndiaEnergy Storage Alliance (IESA)Energy storage systems have gained in India. This includes IESA member companies projects. It has a huge potential grid stability, increasing interest in world of like EXICOM, ACME, Coslight, Delta, Future ancillary market and power back-ups. Li-ion electricity and mobility market. It Hitech Battery, Vision Mechatronics and batteries have evolved rapidly with a wide range has almost 20 different applications others. Opportunities include manufacturing, of cell technologies and system architecturesin India such as renewable integration, grid assembling, energy storage project development, available on the market. Lithium is the lightestancillary services, diesel minimization, equipment supply, R&D of technology of all metals; it has the greatest electrochemicalmicrogrids for energy access and campuses enhancement and much more. potential and provides the largest specific energyas well as electric vehicles and charging density. Due to its high energy density, long cycleinfrastructure. India’s energy storage market India has a huge market for conventional life, better performance and high thermal safetyis growing but still there is a supply-demand technologies like lead acid and is valued at $5 Li-Ion batteries have become the most promisinggap. The country is anticipated to become bn USD market for lead acid. It is also exporting and fastest growing battery technology inone of the best markets for the adoption of lead acid batteries to other SAARC & MENA market. The First Commercial Li-Ion Batteryenergy storage technologies due to several countries. More than 800+ small and medium was introduced by Sony in the year 1991 ondrivers like the fastest growing economy, companies are manufacturing lead acid batteries Lithium cobalt oxide (LiCoO2) or LCO.increasing share of renewables, transmission (VRLA and GEL) in India. But with highconstraints, need for providing 24x7 quality competition in battery price and raw materials, Currently, Li-Ion, LFP and NMC chemistriespower and electric mobility mission. most of the companies are eying for advance are widely used with huge manufacturing technologies. With high life cycle, high efficiency facilities in China, USA, Korea, Japan and IESA estimates the market for energy storage and stiff price reduction, Li-Ion is giving a tough Europe. Li-phosphate (LFP) offers goodwould grow to over 300 GWh during 2018-25 competition to current lead acid technologies. electrochemical performance with lowand India is expected to attract investment in So there is an improvement in technology resistance. This is made possible with nano-scale2-4 gigafactories for advanced Li-ion batteries, happening across the globe. Bipolar technology phosphate cathode material. The key benefits areattracting over $3Billion in investments in and carbon foam content are increasingly high current rating and long cycle life, besidesnext 3 years. Already, over 1 GWh of annual adopted by Lead acid manufacturers in China, good thermal stability, enhanced safety andassembling capacity is being set up for UK, USA and other markets. Amid volatility in tolerance if abused. One of the most successfulconverting imported Li-ion cells into battery lead prices, Exide Industries Ltd is also looking Li-ion chemistry is a cathode combination ofmodules by various Indian & global companies to reduce its dependence on lead by focusing nickel-manganese-cobalt (NMC) which is also on developing advanced technology bipolar known as lithium-manganese-cobalt-oxide lead acid batteries. Exide Industries has already batteries, or NMC, lithium nickel manganese entered into a technical licence agreement with cobalt. Oxide batteries are made of several ‘Advanced Battery Concepts, LLC, USA’ (ABC) materials common in other lithium ion batteries. for acquiring the know-how and technology in These involve a cathode combination of nickel, the field of bipolar lead acid storage batteries. manganese and cobalt. NMC batteries can have either a high specific energy or high specific Li-ion batteries are common in portable power. This battery is most common in power electronics. They are one of the most popular tools and in power trains for vehicles. types of rechargeable batteries for portable electronics, with a high energy density, long Over the years, Li-ion batteries have cycle life and low self-discharge. They are also evolved from LCO, LMO, LFP, NCA, NMC growing in popularity for military, medical and emerging technologies like LTO, Li-Air devices and aerospace applications. Li-ion have and Li-Sulphur. Lithium sulphur batteries already witnessed acceptance in telecom towers, are very attractive due to their 4-6X higher electric vehicles and large-scale solar integration energy density compared to Li-ion batteries.38 | Energy Next | August 2018
NEW TECHNOLOGIESThe sulphur which is the cathode material is India has a huge market foran abundantly available resource (no mining conventional technologies & is valuedrequired). It has high potential for usage at $5 bn USD market for lead acid.like unmanned aerial vehicles (UAV), spaceexploration – satellites and interplanetary barriers such as higher GST and import duties Sarabhai Space Centre (VSSC) at Kerala.missions, medical devices including external, for kick starting market for advanced energy Munoth Industries Limited also announcedimplantable and portable devices, portable storage in India. GST received a mixed response an Investment of Rs 799 crores to set up Li-ionand wearable electronic devices. A lithium- from the industry. Recently, the GST on Li-Ion cell production project In Andhra Pradesh,air battery has an energy density comparable batteries reduced to 18 percent from 28 percent. which will allow smartphone industry toto gasoline which makes them attractive for But a further reduction of GST to 5 percent build its own battery components insteadelectric vehicles. They are lightweight because (similar to solar components) or to 12 percent of importing. The first phase will see Rs 165they do not have a cathode inside the battery. (similar to the electric vehicle) is essential to crore invested to produce Li-ion cells with aInstead, they rely on the oxygen that is present boost the energy storage adoption in India. On total storage capacity of 200,000 Ah per day.in air as the active cathode. Currently, the a positive note, the raw materials for battery The first phase of this project will commencecycle life of the batteries needs to be improved received a low GST than earlier tax slab. operations by March 2019, with the second andso as to enable practical applications. Lithium third phases starting by 2022. Apart from theseTitanate battery benefits range from long Various Indian accompanies have already announcements, various Indian conglomerateslifetime to enhanced safety, low-temperature entered into cell to pack assembling. But are now evaluating the advanced energy storageperformance and large potential for electric there is a huge opportunity in India for Li-Ion business to enter as a manufacturer, componentvehicle space. Its applications persist in cell manufacturing India. Recently, Raasi supplier or assembler.aerospace applications, electric transportation. Group has taken the Li-Ion Cell licence fromIESA member company Enerblu (a USA Central Electro Chemical Research Institute There are discussions happening in thebased company) is at the forefront in LTO (CECRI) to manufacture Li-Ion battery in Industry for availability of raw materials.chemistry and is also in talks with the Indian India. Similarly, last year Maruti Suzuki India The Government should also take activeGovernment and Industry to create their Ltd (MSIL), in collaboration with Toshiba and step for bilateral agreements with Lithiummanufacturing plant in India. Denso, also announced to set up lithium-ion and Cobalt rich nations like Bolivia, Chile, battery production facility purely dedicated Argentina, Congo, Canada and Australia or Other technologies like flow batteries (VRB, to automobiles. The plant is expected to be up to faster the R&D and exploration of rawZBR), Sodium based battery, zinc –Air are also and running by 2020 and will be constructed material mines in India. Apart from Li-Ionemerging applications. Sodium based batteries in a supplier park close to the carmaker’s technology, India should look into otherand flow batteries are good for long duration production facility in Hansalpur, Gujarat. technologies like flow batteries, sodium basedenergy applications such as solar shifting, batteries, Zinc-Air, Aluminium Air and otherback-up power and are best suited applications Last month, more than 137 companies have emerging technologies. We believe that withfor these technologies. Start-ups like R Cube also shown their interest to licence Indian appropriate government support, India willStorage from Pune is working on Sodium based Space Research Organisation (ISRO)’s Li-Ion be one of the largest market in advancedbatteries for applications like telecom, disaster technology to manufacture it in India. More energy storage space in the next decade.management, submarines, and defence and RE than 110 new start-ups and large companiesintegrations. VRB energy, an IESA member attended the pre-bid conference at Vikram (Views expressed are personal)company has already installed 100 MWh+of flow batteries across the world and is alsolooking forward to install such systems in Indiafor various stationary applications. AnotherCompany, Nanat Energy (earlier Fludic Energy),manufacturer of Zinc Air battery is also lookingat India market as an option for its long durationenergy storage systems. Rural Microgrids andCritical backs are best suited applications forZinc-air battery. Currently, MNRE is creating NationalEnergy Storage Mission (NESM) to catalyse theadoption of manufacturing in India. IESA is alsopart of various state and central governmenttaskforce, expert group and standing committee.The main policy intervention required is needfor the transparent price signal and removal of August 2018 | Energy Next | 39
mercom | fundingCorporate funding in solarsector rises YoY with $5.3 BnGlobal VC funding for the solar sector in 1H 2018 was 36 percent lower with $458million compared to the $716 million raised in the first half of 2017, finds MercomMercom Capital Group has released its report on funding and merger and acquisition (M&A) activity for the solarsector in the second quarter and first halfof 2018. Total corporate funding (includingventure capital funding, public market, and debtfinancing) in the first half (1H) of 2018 was upwith $5.3 billion raised compared to the $4.6billion raised in 1H 2017, a 15 percent increaseyear-over-year (YoY).Corporate funding increased in Q2 2018with $2.8 billion in 34 deals compared to the$2.5 billion in 44 deals in Q1 2018. Year-over-year funding in Q2 2018 was about 102 percenthigher compared to the $1.4 billion in Q2 2017.“The first half of 2018 has been a roller-coasterfor the solar industry marked by uncertainty dueto Trump tariffs followed by the recent Chinesesubsidy pullback,” commented Raj Prabhu, CEOof Mercom Capital Group. “Though financialactivity was better compared to the same period $23 million raise by Solaria. A total of 42 VC was raised in 81 project funding deals.last year, the market is still sorting out the investors participated in solar funding in 1H Announced residential and commercialwinners and losers that would come out of a 2018. Solar public market funding in 1H 2018 solar funds totalled $625 million in 1Hpotential slowdown in Chinese demand, which was higher compared to the first half of 2017 2018 compared to $1.8 billion in the sameis expected to result in an oversupply situation with $1.25 billion raised in 12 deals compared to period of 2017. In 1H 2018 there wereand eventual price crash in components across $934 million in 19 deals in 1H 2017, a 33 percent a total of 46 solar M&A transactions,the globe.” Global VC funding (venture capital, increase. Public market financing into the solar compared to 41 transactions in 1H 2017.private equity, and corporate venture capital) for sector rose to $1.1 billion in eight deals in Q2 There were 27 solar M&A transactionsthe solar sector in 1H 2018 was 36 percent lower 2018 compared to just $103 million in four deals in Q2 2018. By comparison, there werewith $458 million compared to the $716 million in Q1 2018, and $473 million raised in six deals 19 solar M&A transactions in Q1 2018raised in the first half of 2017. during Q2 2017. and 12 transactions in Q2 2017. Of theIn Q2 2018, VC funding for the solar sector Announced debt financing activity in the 27 total transactions in Q2, 16 involvedincreased to $298 million in 12 deals compared first half of 2018 ($3.6 billion in 32 deals) was 22 solar downstream companies, six involvedto $161 million in 22 deals in Q1 2018. The percent higher compared to the first half of 2017 PV manufacturers, three were equipmentfunding amount was 133 percent higher YoY when $3 billion was raised in 33 deals. Most of manufacturers, and two involved BoScompared to the $128 million raised in 23 deals that increase was due to two securitization deals: companies. There were 117 large-scalein Q2 2017. Vivint solar raised $466 million through asset project acquisitions in 1H 2018 totallingTop VC deals in 1H 2018 included: $112 back notes and Dividend Finance secured $105 11.6 GW compared to 101 projectmillion raised by Wunder Capital, $100 million million in a similar deal. acquisitions totalling 10.9 GW in the firstraised by Sunnova, $55 million secured by Off- Large-scale project funding in the first half of half of 2017. Investment firms and fundsgrid Electric, Sunlight Financials’ $50 million, 2018 saw $7.96 billion announced for 98 projects were the most active acquirers in 1H 2018,$25 million raised by d.light design, and the compared to 1H 2017 when a record $7.4 billion picking up projects totalling 4 GW.40 | Energy Next | August 2018
re | women entrepreneursWomen entrepreneursenhancing access to energyPOWERED Accelerator programme has selected ten women entrepreneurs as thefirst cohort who will now receive financial and business support to develop theirbusinesses and deliver solutions in access to energy across India.n April this year, DFID India, Shell Foundation (the independent global We have some great partners onboard, and we charity), Department of Science and look forward to making the first cohort a grand success”ITechnology, Government of India,and Zone Startups India announced the that these 10 women entrepreneurs will enable The cohort comprises of start-ups in greater inclusion and sustainability towards a more energy secure and equitable future for all,” said Gavin McGillivray, Head of DFID India “Shell Foundation is excited to see the first areas ranging from access to energy, waterPOWERED Accelerator - a first of its kind cohort of high quality female entrepreneurs conservation, application of energy inentrepreneurship programme focused on twin come through the POWERED Accelerator agriculture, easy finance, last-mile distribution,Sustainable Development Goals of Energy and programme. We believe these inspiring women waste-to-fuel and more.Diversity. Following the launch in Mumbai, the have the potential to deliver long-term energy • Simmi Sareen, Loans4SMEPOWERED Accelerator was launched in six and mobility solutions that address market • Srujana Raghupatruni, Cellerite Systemscities across India. gaps and break down some of the barriers that • Puspalata Pani, M/S Kumudini EnterpriseThe objective of the POWERED Accelerator are preventing low-income consumers from • Mousumi Medhi, HoneyComb Inventionsis to support female-led ventures by helping accessing these critical services. The Accelerator • Amishi Parasrampuria, Upcycler’s Labthem expand their innovative and consumer- programme is one element of the POWERED • Kavita Aggarwal, BluPrintsresponsive products and services; the ultimate initiative, a partnership between DFID India • Ruchi Jain, Taru Naturalsgoal being to empower women-owned and and Shell Foundation, which will deliver 5000 • Manvi Dhawan, Agnijmanaged businesses in the energy space. The jobs, and support more than 100 women-owned • Neha Upadhyaya, Gunaaccelerator is focused on core themes of access micro-enterprises in rural and urban India,” • Nidhi Pant, S4S Technologiesto energy, sustainable mobility, waste-to-value, added Sam Parker, Director, Shell Foundation As part of the broader aim of the programme,energy efficiency, and smart energy solutions. Talking about the initiative, Ajay the accelerator will also be organising ecosystemMore than 130 women entrepreneurs applied Ramasubramaniam, Director - Zone Startups development activities, grand challenges, a one-to the accelerator programme from varied India said, “At the time of launching POWERED week residential boot camp, and an incubatorbackgrounds, all having created innovative Accelerator, we were not sure of the number for women in energy. Set up as a joint initiativesolutions in the energy sector. The start-ups were of women-entrepreneur led start-ups in the of Shell Foundation and Zone Startups, andevaluated based on the applicant’s background, extended energy sector. After 6-roadshows, and funded by DFID India (UK Government)innovativeness, scale of impact, problem solution close to 2 months of extensive campaigning, we and DST Government of India, the objectivefit, clarity of thought, and programme fit. The ended up getting more than 130 high-quality of the POWERED Accelerator is to supporttop-ten entrepreneurs selected for the first cohort applications. Selecting only 10 from a shortlist of selected ventures, by helping them expand theirwill now receive support for one year to scale 30 businesses was a tough task. We see the entire innovative and consumer-responsive services,their business including a six-week residential application pool as a part of a larger funnel of products, and financing; with an ultimate goal tomentoring programme and access to an equity- start-ups that presents us with an opportunity to increase economic empowerment of women-free seed fund of $10,000 each. build other interventions in this niche ecosystem. owned businesses in the energy space.“We know that given the right opportunities,women can play a critical role across the energy-value chain. As energy enterprises scale-up inIndia they provide rural and low-income womenwith new opportunities to generate incomeand achieve greater economic empowerment.Through the POWERED programme we willwork towards strengthening the ecosystem formore women-owned and managed businessesacross the energy value chain. We are confident August 2018 | Energy Next | 41
BIOFUELSBiofuels: technologies,trends & transformationFor a robust biofuels economy, India needs to introduce, implement and harnesstechnologies that are cost-effective and impactful, writes BK JhaA India is one of the fasted of adequate sustainable alternative fuels India is all set to move towards second growing economies of the to substitute petro-based fuels. The generation (2G) ethanol production to use world and to keep the pace government has set a target to reduce crude it as a clean and sustainable transport fuel of development, there is an oil import dependency by 10 percent by solution. In a scenario where more thanurgent need to focus on energy security 2022. 95 per cent of India’s transportation fuel iswhich remains vulnerable due to lack being met with fossil fuels and 80 per cent42 | Energy Next | August 2018 Biofuels assume importance due to growing of its crude requirement is met through energy security and environment concerns. imports, it is imperative to explore Recently announced National Policy on alternate, renewable energy sources and Biofuels 2018 dwells on the development create a favourable environment for their of the next generation biofuel conversion utilization. New Biofuel Policy certainly technologies based on new feedstocks and provides a big push to 2G ethanol promote domestically available feedstock production in the country. However, exploring, utilizing the country’s biodiversity. technical functionality and performance Facing challenges to meet the set target of are key factors which drive the growth of ethanol blending through First Generation biofuels. A switch from non-fossil fuels to (1G) ethanol, the government, in its new biofuels, be it 1G or 2G, will actually come policy, focuses on promoting second when profitability levels are viable. generation (2G) through feedstocks.
TECHNOLOGY The government of India is taking all learnt from the same. Small companies have been at thepromotional measures to push 2G ethanol Countries like Philippines worked to industry’s forefront over the past decade,ecosystem. Apart from off-take guarantee, but they lack the capabilities, infrastructure,the government plans to implement consistently ramp up domestic production and capital for industrial-scale 2G. AttractedViability Gap Funding (VGF) Scheme. capacity of ethanol while sourcing ethanol by its potential, bigger firms began toThe scheme will be open for all including from the international market to fulfill get involved, but some have left in recentprivate players and foreign technologies. the shortfall in demand and supply, in the years for strategic reasons. There’s a caseHowever, if India aspires to achieve 10 short-to medium-term. This ensured that that firms should collaborate to maximizepercent Ethanol blending by 2022, all Philippines’ domestic ethanol blending their chances of success, but a handfulefforts need to be made for sustainable programme strengthened and the country of players will probably take the lead tosupply from all sources. was able to achieve energy self-sufficiency create competitive technical solutions. at an expedited rate. Now, Philippines is The challenge will then be significant 2G biofuels face major limitation to moving towards 2G to support its robust because although these companies couldtheir commercial deployment. Technical ethanol blending programme. own a viable technical solution within abarriers remain a major roadblock. piece of the value chain, they may lack theSeveral multinational companies such India faces several challenges. It is competencies, people, infrastructure, andas Honeywell are providing technologies evident that production costs of 2G ethanol capital to scale up a worldwide industryfor 2G biofuels. In India, a feedstock- are uncertain and vary with the feedstock deploying 50 to 100 projects a year. Newindependent technology has been available. Even at the high oil prices, 2G types of players will have to engage.developed by DBT-ICT Centre for Energy biofuels will probably not become fullyBiosciences at the Institute of Chemical commercial nor enter the market for Critical gaps persist in the industry’sTechnology (ICT) Mumbai. However, several years to come without significant value chain—whose players now havedeployment of technologies does indicate additional government support. Second- fragmented capabilities—so that each 2Gviability in terms production cost. Several generation feedstock is abundant, but capital project gets a unique, inefficient,technologies are still in demonstration prices on the biomass cost curve vary. and expensive solution. Furthermore, thestage. Hence, more investment in Some forms of feedstock, such as municipal downstream distribution network is not yetresearch, development, demonstration solid waste or cellulosic trimmings from geared for takeoff, because of technologicaland deployment is needed to ensure that harvests, can be sourced at little or no and logistical barriers. Distribution pumpsfuture production of various biomass expense. Other kinds, such as sugarcane at fuel retailers, for example, are notfeedstocks can be undertaken sustainably. residues (known as bagasse), have an equipped for flexible blending.It is also very critical that the preferred opportunity cost.conversion technologies, including those In the medium term, as installed 2Gmore advanced but only at the R&D stage, There are also outlays associated with capacities increase, producers of 2G biofuelsare identified and proven to be viable. collection and transport, so it is helpful or bio chemicals may not find buyers for all to locate 2G plants near dependable, their output. In the short term, if oil prices While countries like Brazil, Sweden long-term sources of biomass. The cost of stay low, 2G will have difficulty competingand Philippines have taken a lead in sourcing (the price asked by the producer, on price; that, in turn, affects the industry’ssecond generation ethanol, India too is plus aggregation and logistics) is another long-term prospects by discouragingaspiring for a move in that direction. key factor in 2G economics. Like oil, which sustained commitment. It’s also importantEuropean Union has also made can cost as little as a handful of dollars to to remember that competing renewable-tremendous progress in advanced biofuels produce but often several times more, bio energy paths to ethanol, such as gasification,sector. India also needs to introduce, feedstock should be seen in the light of a are being developed.implement and harness technologies that cost curve: some supplies will be cheap,are cost-effective and impactful. As far others expensive. Globally, biofuels have caught theas technologies are concerned, United attention in last decade and it is imperativeStates, European Union and Brazil have At the moment, 2G does not fit the to keep up with the pace of developmentsoffered India every support. Moreover, usual risk profile for investors. Those that in the sector. In India, biofuels offerthe United States can play a crucial role in are willing to take risks, such as venture- green opportunity to integrate it with theenabling the production of ethanol from capital funds, tend to see 2G as too capital ambitious targets of doubling farmers’existing first-generation sources, while intensive. Investors with abundant capital income, import reduction, employmentsimultaneously supporting the move to but less appetite for risk, such as pension generation and waste to wealth creation.second generation ethanol by providing funds, view it as too uncertain. Mainstream For sustainable development andtechnological assistance. India should also investors, believing that they have more deployment of biofuels to fuel the Indianwork towards understanding how other attractive and less risky alternatives, have economy, the government needs to put incountries have implemented successful resisted 2G investments. However, there place a rational policy framework.blending programs, and what can be are two important risks: feedstock security (which can be addressed through forward (Author is senior journalist. Views expressed are contracts) and technology. personal) August 2018 | Energy Next | 43
SOLARNew developments insolar sectorWith the increase in the share of renewable power in India’s energy mix gridstability, demand supply balancing and grid discipline have become criticallyimportant, writes Rajni BhaIndariIndia is gearing to shift to a reliable world of efficient and eco-friendly government and other stakeholders are power in the form of solar energy. focused towards achieving this target. In a short span of eight years, India BUT whether it is idealistic or realistic, has successfully achieved a milestone of will have to be seen. Out of the 100GW of solar, 40 percent ~20.5 GW of installed solar power (as of (40GW) must come from rooftops/non- March 2018). 20GW was the initial target utility solar. The current rooftop installed set under the National Solar Mission capacity stands at 1.8GW (as of March which has been achieved in 2018 itself. 2018) which is approx. 5 percent of the Considering the progress till date, the set target. Also, most of the solar capacity government revised the target to an is concentrated in a few states with the installed base of 100GW by 2022 i.e. top states being Telangana, Karnataka, five times the original target. Now, the Andhra Pradesh and Rajasthan. Now in44 | Energy Next | August 2018
DEVELOPMENTSorder to meet the revised target of 100GW, The rooftop market has gainedthe government will have to work harder momentum only recently and is beingand provide an enabling platform for well accepted by commercial andall the stakeholders to help achieve this industrial customers throughout India.target. This would also mean more effortson the part of the entire solar value chain (as mentioned earlier), according to reaching 40GW by 2022 and majoritysuch as distribution companies, policy ICRA, India’s solar power capacity of the capacity is concentrated in a fewmakers, project developers, financial addition is likely to drop 40 percent states and is driven by commercial andinstitutions and customers. in the current fiscal year due to the industrial users. Residential segment is slowdown in tendering of projects and still largely untapped and would be an The utility solar market over the years project award activity. Additionally, effective contributor to the NSM target ifhas consolidated with a few serious with the change in industry dynamics harnessed efficiently.players contributing to the growth of the challenges and issues faced by gridthe segment. It has seen rapid growth connected utility scale projects have also For rooftop solar to scale considerably,due to a combination of factors making changed. With the increase in the share concerted efforts from aligned stakeholdersit attractive for stakeholders such of renewable power in India’s energy mix are required to develop a positive andas conducive policy and regulatory grid stability, demand supply balancing collaborative market led ecosystem, focusframework, sustainable and reliable and grid discipline have become critically on streamlining policy and regulatorysource of power with price visibility and important. While steps like forecasting framework and understanding the needsviability vis a vis conventional energy and and scheduling requirements are being of the sector. Some of the key driverstechnological advancement. undertaken, it’s up to all stakeholders that would enable sustainable growth of to ensure that the intermittent nature the rooftop sector going forward include The rooftop market has gained of renewable power does not become a emergence of national level rooftop IPPsmomentum only recently and is being well hurdle for India in achieving its renewable (serious players) that would help in rapidaccepted by commercial and industrial energy targets. The government is capacity deployment across the sector,customers throughout India. This interest speeding up capacity installation without easing the process of adoption especiallyby Indian and international companies has making sure that enough evacuation for residential consumers, creation of newhelped generate demand for solar and the facilities are available. And this situation financing structures to support capacityshift is mainly because of the guaranteed if not tackled at the earliest would become addition, promote net metering extensively,potential savings in their electricity bills deterrent to realizing the target of 100GW enforcing renewable purchase obligationsand the benefits of switching to a more of solar by 2022. to increase demand, and strengthening ofefficient and eco-friendly source of power. the grid infrastructure to accommodate Things are a bit different in case of 40GW of solar rooftops by 2022. Now, although the government has rooftop solar where the capacity growthbeen highly progressive in promoting has not yet reached critical mass. We The author is Senior Manager, Businesssolar for the past decade but recently are still far from behind our target of Development at Amplus Solarthere has been a clash in the government’s (Views expressed are personal)initiatives. The ‘Make in India’ programmeis proving to be a roadblock to therevised solar installation of 100GW targetunder NSM. The introduction of GST,safeguard duty and antidumping dutypetitions increase project cost, questionthe viability of ongoing projects andhinder investor interest. These reformsthough have a greater interest, benefitonly a segment of the ecosystem i.e. theequipment manufacturers. However, theincrease in project costs as a result ofthese together with the globally increasingmodule prices are creating an atmosphereof regulatory uncertainty leading tostranded projects, declining investorinterests and slowing down of tenderingand installation activity. Although, the utility scale capacityaddition has far outpaced expectations August 2018 | Energy Next | 45
SUKAMTips from an entrepreneurto an entrepreneurAn entrepreneur not only dares to imagine the impossible but also hasthe courage to fight challenges along the way, writes Kunwer Sachdev,Founder and Managing Director - Su-Kam Power Systems Ltd.R ecently at a conference, her was instantaneous, ‘I never wanted ocean of entrepreneurs. Having said that where I was invited to to become an entrepreneur’. As a matter I have nothing against MBA graduates, speak to a group of aspiring of fact, I did not even know the meaning I have many talented employees in my entrepreneurs, a young female of the word until a few years ago. When organisation who hold this degree. Butasked me what motivated me to become I started my business, I was just trying what I am trying to emphasise is thatan entrepreneur. Now I get asked this to make ends meet. I kept working and knowledge alone is not sufficient, youquestion wherever I go, so my answer to solving the problems that came my way. must have the right attitude. Success So, today when I hear people referring to comes when you know how to handle me as the ‘Inverter man of India’ or the challenges and create challenges. For me ‘Entrepreneur of the year’, it all seems very being an MBA is to be a good manager surreal to me. Because I never asked for who is a problem solver and can manage these things they just came to me as I kept people. He/she understands business, working through the years. profit and loss, product and services, and the market. He/she knows how to become ll MBA = Good Leader a role model, is constantly motivating What does it mean to be an entrepreneur? people and is keen to learn and improve. You might give me a bookish answer Above all, an MBA is a good leader. that you probably studied while doing ll Entrepreneurship your MBA. But that knowledge alone will not keep you afloat for long in the46 | Energy Next | August 2018
START-UP TIPSArmed with a passion to innovate, conviction in your ideasan entrepreneur must also possess Armed with a passion to innovate, anthe courage to imagine and think entrepreneur must also possess the couragedifferently no matter what people say to imagine and think differently no matter what people say. Growing up in the alleysto me is the love for UPS’ which combined the features of UPS of Punjabi Bagh in West Delhi, I didn’t let and inverter into single equipment. We’ve my situation or financial constraints stopinnovation also made the world’s first touch-screen me. I loved to let my imagination wanderTo me an entrepreneur is someone UPS which is wifi enabled that can be and dream of the impossible. At the agewho loves to innovate. That innovation monitored from your phone. of 15, I joined my elder brother in sellinghelps people in getting new facilities or pens to various shopkeepers. This was myservices which they never thought could ll Right attitude makes first stint as an entrepreneur. A few yearsexist. This, innovation is the foundation you an entrepreneur not later, I joined the sales team of a cable TVon which I built my company Su-Kam. Genes communications company. An urge to doYears ago, when I stumbled upon a faulty I started all this from a small office set something different led me to open my owninverter at my office, I pulled it apart and in an obscure locality in Delhi. I had cable TV company. But I was constantlyfound that it was made of substandard a few employees, who were not very swindled by people as I did not have thequality. I looked further and realised that qualified in the traditional sense, but technical knowledge. So I learned the ropesthe inverter market was dominated by they were extremely hardworking. And of the business by going for installationslocal companies that made poor quality most importantly they believed in my myself. Gradually, I knew the technicalproducts. The entrepreneur in me found vision. I had no fancy degrees or rich intricacies of the job in and out. Soon aan avenue to introduce an inverter which parents to back me up. I come from a chance encounter with a faulty inverterwas technologically advanced and 100 lower middle-class family. My father, the triggered my imagination to do somethingtimes better than the ones available in the sole earner in the family, was a simple in the inverter industry, so I plunged intomarket. So, my R&D team and I worked clerk in the Indian railways. Growing up it, leaving a profitable business behind.day and night to materialise this vision. I saw my father go through a lot financial Believe me, it was not an easy thing to do.Innumerable obstacles came our way, but problems due to which I was pulled out Closing down a business where I made mywe fought them all. Now, Su-Kam is the from a private school and admitted in a first million and treading into an unknownonly company to file patents for technology government school. Looking back, I feel domain was a huge risk. But I had full faithand design in the Indian power backup despite all the hardships what kept me in my vision and I convinced my team to doIndustry. We revolutionized the power afloat was my love for imagination. so. Look where we are now.back-up industry by introducing world-class technologies such as MOSFET, Micro ll Dare to think ll Fight challenges – be acontroller based and DSP Sine Wave into differently and have problem solverinverters. We introduced India to ‘Home An entrepreneur not only dares to imagine the impossible but also has the courage to fight challenges along the way. Remember, whenever you embark on an untrodden path you are bound to face innumerable obstacles. Take me for instance, I have faced countless challenges in my career and I face them even now that I have an established business. So an entrepreneur must be unfazed by the obstructions that will come on the way. Instead think of ways to solve them. I think of myself as a problem solver because all through my life I have always tried to solve problems. As a student of Delhi University’s Hindu College, my friends and classmates came to me whenever they had any problem. Today I am solving problems of my employees and business partners. I think my problem solving approach to life has August 2018 | Energy Next | 47
sukam | START-UP TIPShelped me reach where I am today. After a lot of hard work when the product starts taking some shape, well Find out what drives work on improvising it. Sometimes weyou then pursue it start without planning, but as we workrelentlessly on the project new ideas get addedFurthermore, you must have seensuccessful entrepreneurs are very driven. that if weren’t able to showcase these as the product develops, more ideas andTheir enthusiasm and energy sets them two USP then my product won’t stand challenges will rise.apart from the rest. For me the drive out and make the kind of sale that wecomes from new ideas. New ideas excite expect. This gave me the idea of making a Simultaneously, I have been workingme like a child gets excited on getting comparison kit that can compare any two on another project where a comparisona new toy. Whenever I get a new idea I inverters. So my team and I set ourselves tool can compare MPPT and PWM chargeget extremely excited, and cannot wait to build this product which if successful controllers and showcase the advantagesto see my idea conceptualised. This in would be the first comparison kit in the of the former over latter. I got even moreturn motivates me to work hard to get world. As expected we faced innumerable determined to develop this product whenthere. Once an idea sets in my mind I get challenges. We were able to make a good I saw, during a market visit to Dubai,totally absorbed by it, and I think about hardware but were unable to get the some very poor quality Chinese products.it day and night. I share my vision with software right as my team was not able Within two months of brainstorming wemy team and we quickly start working to show certain things like waveform, found the solution.on it. A lot of times I have to push my switching time etc. So we started lookingteam really hard. But I’ve noticed that for an outsourced partner. Luckily, we ll Challenges are a partover time, my R&D teams thoughts are in found one pretty soon. Once the product of an entrepreneurs’ day-sync with mine, so ideas take shape much was developed, I realised it had a wide to-day life. A new challenge that Ifaster. After a lot of hard work when the scope, it can not only compare inverters have to rise up to is to think of innovativeproduct starts taking some shape, we work but also any two electronic devices ways to market all the products we haveon improvising it. Sometimes we start like TV, fridge etc. Thus, I ventured on designed in these 10 years. I am remindedwithout much planning, but as we work this new project as a way of solving my of a famous quote by Abigail Adams whichon the project new ideas get added. problem of selling my new inverter and sums up this article perfectly. ended up building a completely new To give you an example from a real product. Even now we are constantly ‘It is not in the still calm of life, orlife scenario; recently we developed an changing and improving the Comparison the repose of a pacific station, that greatamazing product, the High Frequency Kit so that it can be used to compare characters are formed. The habits of aInverter which had two unique USPs, wider appliances. Deep down, I know vigorous mind are formed in contendinghigh efficiency and charging ripple with difficulties.’current. We knew our product was betterthan the rest but we did not know how (Views expressed are personal)to show it in the market. I was worried48 | Energy Next | August 2018
RE | skillsJoining the dots - Skillingfor renewable energy jobsEstimates suggest that grid-connected solar and wind power will employ over300,000 people between now and 2022 alone, based on the 160 GW target set bythe government, write Nehmat Kaur and Tanmay BishnoiThe clean energy transition years. The significant employment generation capacity of the renewable energy workforce. underway in India is not only potential raises the need for adequate skill Estimates suggest that grid-connected solar an opportunity to power India’s and capacity building systems. In addition to growth without polluting the Government of India skilling initiatives, there and wind power will employ over 300,000environment but also an opportunity to offer is an important role for the state governments people between now and 2022 alone, basedjobs and livelihoods to millions in the coming and the private sector to play in strengthening on the 160 GW target set by the government (CEEW & NRDC, June 2017). Considering recent announcements from the government, if India does indeed deploy 227 GW of renewable power by 2022, that would increase the employment generated significantly from current estimates. Accelerated growth of rooftop solar is expected to employ more than 600,000 people with a greater number of cleantech start-ups and entrepreneurs joining the workforce (SCGJ, 2016). Another interesting opportunity emerges as the private sector procures more renewable energy. For example, IKEA, a leading furniture August 2018 | Energy Next | 49
RE | skillsbrand is launching large-scale operations in The Tata Power Skill Develop Institute is also solar systems for community centers thatIndia. They are committed to procuring 100 preparing young and experienced engineers support livelihood generation activities. Apercent of their electricity requirements from for India’s clean energy transition. This is a key community fund supports the expenses,renewable sources under The Climate Group’s example of private sector taking a voluntary including the women’s monthly salaries,RE100 initiative. This highlights another role to support the sector and local community. which meet minimum wage standards.opportunity to skill greater numbers. In an example of state leadership, the Similarly, IIT Bombay is delivering skill Further, if we consider the off-grid sectors Gujarat Energy Research and management development programs to the rural youthas well as the manufacturing base that will Institute is running the National Certification and women, on assembly, operation andbe created to support the industry in India, Programme for Rooftop Solar Installers to maintenance of solar lamps, solar homethe potential is tremendous. These jobs build skills in the rooftop solar sector. Gujarat lighting systems and solar street lights. Thisare expected to provide steady incomes, has also established the Gujarat Institute of has created significant self-employment inhealthcare benefits and skill-building Solar Energy to train the local workforce. rural economies across India.opportunities, especially for those employed However, there is lack of a concerted effortin the informal sectors and considered semi or from other states to contribute in raising the A greater emphasis on coordinating withun-skilled (WRI, 2017). quality and availability of a renewable energy existing programs and scaling this effort can skilled workforce in the country. help improve lives for millions of Indiansll Raising the Bar: that are expected to be in India’s growingSetting higher standards ll A Way Out of Poverty: workforce. The examples above highlightWith significant employment generation Cleantech Lives and how the private sector and state governmentsopportunity offered by the renewable energy Livelihoods can even contribute in developing bettersector, one key question becomes: who is really Another way to look at the renewable energy functioning labour markets, a more skilledleading the skill-building, training and capacity employment generation opportunity is labour force for renewable energy in India.building of future job-seekers in this market? to think about developing the renewableThe Government of India is considering this energy job market as a standard or model for At this stage of the renewable energyopportunity seriously and has established the labour market systems overall. For example, market, which is expected to scale manifoldSkills Council for Green Jobs in 2015. for India’s rural poor, especially women, in the coming years, India can use this renewable energy jobs offer a lucrative skilling opportunity to improve millions In line with the Skill India Mission, the alternative to subsistence farming (WRI, of lives. Systems thinking which accordsrole of the Skills Council is to identify the 2017). Training programs run by the likes a role to the private sector and the stateskilling needs for sectors considered ’green‘ as of the Self-Employed Women’s Association governments will be necessary to ultimatelywell as to implement nation-wide, industry (SEWA) or the Barefoot College are prime inform and strengthen existing training andspecific, collaborative skills development examples of how renewable energy is having skill development programs and enhanceand entrepreneur development initiatives a positive socio-economic impact on rural the overall quality of employment generatedfor major sectors including renewable communities. from renewable energy in India, whileenergy, green buildings, green transportation setting the stage for allied cleantech sectorsincluding electric vehicles, carbon sinks, Barefoot College empowers rural including energy efficiency and electricwaste and water management and e-waste communities to provide their own mobility in India.management. In just three years, the Skills electricity. They train women between theCouncil has taken a leading role by developing ages of 35 and 50 from non-electrified Nehmat Kaur is Senior Manager, South Asiaclearly articulated job roles, accrediting tribal areas to assemble, install, operate, Government Relations, The Climate Grouptraining organizations, training the trainers, and maintain solar home systems andand awarding skill certificates and working Tanmay Bishnoi is Head of Research Andclosely with government established national Development, Skills Council for Green Jobsinstitutes of solar and wind energy. (Views expressed are personal) But, in addition to central government-led initiatives, can we imagine a role forstate governments and businesses to play inmeeting the training needs for the renewableenergy sector. Some noteworthy initiatives from acrossIndia come to mind. For example, MahindraSusten, in partnership with the Skills Council,has certified all engineers and installers on theNational Occupational Standards, under theRecognition of Prior Learning (RPL) model.50 | Energy Next | August 2018
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