EN-March-2017

IN THIS ISSUE 25 18 SHP Cover Innovation will boost India’s SHP sector Potential of SHP in India Small Hydro Power sector Small Hydro Power is considered as a reliable requires fresh option for both interactive and decenteralised outlook from power generation in India. Hydropower both government requires relatively high initial investment, but and private has the advantage of very low operational sector in order costs, a long life span and quick start and stop to reach its maximum 30 potential Interview 39 Policy tweaking can turn Biofuels | Green Future India into a SHP hub Right tool to check Rapid rise in population and urbanisation has carbon emission increased the demand of electricity in India. With many Indian firms joining RE100, the year looks The biodiesel industry is all geared bright for renewables to deliver 3 million tonnes of green fuel by 2019, which will provide half 42 million direct jobs and one million jobs to ancillaries Column 41 India’s growth story to remain intact Interview Energy focus with environmental concerns Asorelanrapfraovjoecutradbelveelfooprer stems great news for renewal sector for its exponential rise in years to come Sizeable fall in PV module price levels coupled with the recent decline in 43 benchmark interest rates by banks has made the arena favorable for project Outlook developers Sun set to shine brighter for the country in 2017 This year India is set to race ahead as a global superpower in the solar energy space4 | Energy Next | March 2017

44 VOLUME 7 | ISSUE 05 | MARCH 2017 www.energynext.in Report 48Renewable Integration: Need forcurtailment risk assessment SOLAR | STANDARDISATIONWith India at the threshold of adding big renewable energy Scheme to rate and certifycapacity to meet its ambitious 175 GW target by 2022, there is a solar water heating systemsneed to integrate and curtail risk assessent Introduce a performance-based rating54 and system certification scheme for solar thermal collectors and systems following GREEN CAMPUS | RESEARCH international standards in IndiaTowards a sustainable 62college campus MNRE NEWSDelhi University’s Daulat Ram Collegeto focus on solar rooftop panelling MNRE allocatesand water harvesting as a part of Rs 600 cr for ‘Gridvarsity’s Star Innovation Project connected Rooftop & small Solar Power64 Plants Programme IREDA Corner The Power Minister in a written reply to Lok Sabha said anAccess to IREDA’s amount of Rs 600 crore has beenenergy scheme allocated for small solar power programme of which over Rs 508In order to promote climate- crore has been releasedfriendly energy services inrural areas, Germany-based March 2017 | Energy Next | 5KfW Development Bank hasagreed to refinance loans,up to 20 million Euros,issued by IREDA

NATIONAL INSTITUTE OF SOLAR ENERGY (An autonomous institute under Ministry of New and Renewable Energy) Government of India SOLAR DESIGN SIMULATION LAB AT NISEIntroduction:Solar design simulation lab is a new initiative ofNISE for the development of project proposal,consultancy, training and other research anddevelopment purposes. Currently this lab is a full-fledged functioning lab, comprising of audio visualfacility for the demonstration. There are differentsoftware’s available in this laboratory which canbe used for the design of PV power plant.List of available software at NISE1. PVSYST V6.4.32. PVSOL Premium 7.5, Valentin software,3. TSOL Pro 5.5 Valentin software4. SAM (System Advisor Model)5. RET Screen6. Archelios Pro, Three days’ workshop on Solar PV system Design using “PVSYST & PVSOL” software Learning Objectives: 1- The main objective of this programme is to understand an off- grid system, on- grid system and hybrid system. 2- Solar Power Plant design with the help of simulation software. 3- Simulation cover (Project Phase, orientation of modules, solar components, user’s needs, near and far shading analysis, different loss analysis, simulation result and discussion) 4- Different steps to execute the solar power plant 5- Different development phase in the solar plant installation.Vision & Mission 1. The vision of this programme enables participants to “Design and Simulate SPV System” 2. The missions of this programme are to impart the knowledge and proper training and enable participants to become a solar professional For any further query Please contact to NATIONAL INSTITUTE OF SOLAR ENERGY 19TH MILESTONE GURUGRAM FARIDABAD ROAD GURUGRAM HARYANA Email. - [email protected] Contact number 0124-2579203

FROM THE EDITORPlummeting tariffs leadingto green futureI ndia’s green energy sector has on the block more such wind projects in the country, under which existing astonished the world again and next fiscal in view of success of the pump sets will be replaced with energy- now it is with the discovery of first auction. However, the viability of efficient solar pump sets that will enable record low wind and solar power such competitively bid tariffs hinges on generation of power. After utilising thetariffs obtained in recent biddings. While keeping the cost of modules / turbines and power required for drawing water todevelopers quoted a price of Rs3.46 financing costs within budgeted levels. his field, the farmer could pump theper kWh for a 1 GW wind tender and remaining energy into the grid andRs2.97 per kWh winning bids to set up The Cabinet has also approved the thereby earn income.750 MW solar power plant at Rewa in enhancement of capacity from 20 GW toMadhya Pradesh, has resulted in wind 40 GW of the Scheme for Development The government is also planning toand solar becoming a competitive energy of Solar Parks and Ultra Mega Solar bring out a new policy for the hydrosource. The net effect of such aggressive Power Projects. The enhanced capacity power sector next fiscal to boostbidding is that clean energy tariffs could would ensure setting up of at least 50 hydro power. The new policy maybecome low enough to challenge the solar parks each with a capacity of 500 also seek to bring large hydro projectstariffs of fossil fuel-fired power. While MW and above in various parts of the at par with smaller ones in terms ofthese developments are seen as a boost country. Smaller parks in Himalayan and availing various benefits. At present,to government’s efforts at promoting other hilly States where contiguous land small hydro projects of up to 25 MWclean energy in the country, these auction may be difficult to acquire in view of the capacities are considered as renewableresult assumes great significance because difficult terrain, will also be considered energy initiatives and are eligible forIndia has set an ambitious target of under the scheme. The capacity of the various incentives by the government.having 100 GW of solar and 60 GW of solar park scheme has been enhanced Developers of large hydro powerwind power capacity by 2022. after considering the demand for projects would get a big boost if the additional solar parks from the States. distinction between small and large Such low tariff without any capital hydro projects is removed.expenditure support has been achieved Farmers in Andhra Pradesh willon account of very careful structuring of soon be producing electricity apart To sum up, these auction resultsthe project risk sharing mechanism. These from growing crops. The State Energy assume great significance in movingresults have shown that it is possible to Department is set to launch the scheme towards achieving target of 175 GW.obtain more economical tariffs provided ‘Solar Farming’, the first-of-its-kinddevelopers are given assurance of poweroff-take, timely payment and with better KS Poplifinancial structuring. Chairman & Managing Director, IREDA Buoyed by drop in tariffs to recordlow , the government is mulling putting March 2017 | Energy Next | 7

LETTERS TO THE EDITOREnergy Next – an impressive publication Enabling Investment Environment I came across your magazine Editor-in-Chief K S Popli last month and I was impressed Publications Director Anupam Daftuar by the way you have presented each article. The write-ups are Associate Editor Fozia Yasin complemented with detailed Associate Editor Anurima Mondal analysis and graphics which make Sr. Correspondent Sagarika Ranjan the magazine an informative read. The exclusive edition on Design Flying Tusker Media budget has beautifully described Marketing Manager Abhinav Dutta the expectations and reactions of Marketing Manager Aditya Daftuar people from all sectors. Subscription & Dispatch Anil Patwal ll Subhash Jha, Kolkata For the latest Renewable Energy news.Keep it up team! in this sector. Your exclusive solar power in India. log on to www.energynext.in interviews with major wind ll Kalpana Singh, RewaI am a regular reader of your energy producers helped Energy Next is printed by R Ramprasad and publishedmagazine. The February us know about the future Up for green cause by R Ramprasad on behalf ofedition had some important perspective of this sector.interviews of wind service I am sure that India will I am a regular reader of your Focal Point Media Services Pvt Ltdproducers and power achieve more milestones in magazine as I am planning #407, Fifth Floor,secretaries. I appreciate your the years to come! to pursue renewable sectoreffort and look forward to your ll Murari Mishra, Noida as a career option. I am Pavani Plaza, Khairatabad,next issue. really passionate about the Hyderabad - 500 004, Telangana, India.ll Mehzabeen Aazmi, Noida India high on solar Green Cause and believe CIN No.: U74999AP2010PTC070645 that your publication is a Focal Point Media Services Pvt. Ltd. is a jointUnprecedented I read the interview of complete package offering a venture of Gateway Media Pvt. Ltd, and Invisiongrowth in wind sector Madhya Pradesh Power balance of news and views. Communications & Research Pvt. Ltd, and printed at Secretary Manu Srivastava. I would particularly like toWith a powerful fourth rank Being a resident of Rewa, I mention the budget issue M/s. Kala Jyothi Process Pvt. Ltd.in the Global Wind Power am eagerly waiting for the where various company 1-1-60/5, RTC Cross Roads, Musheerabad,Installed Capacity index, commissioning of Rewa insiders gave their expert Hyderabad - 500 020, and Published at Focal PointIndia seems to be in a hurry solar park. It’s good to opinion on what is in storeto ramp up wind power know that the cabinet has for the RE sector. Would Media Services Pvt. Ltd.capacity to 60 GW by 2022. approved capacity hike from it be possible to bring an #407, Fifth Floor Pavani Plaza Khairatabad,India’s rise in the rankings 20GW to 40GW. I am sure international perspective inis a result of government’s that upcoming solar parks your magazine? Hyderabad - 500 004, Telangana, India.conducive policies combined will encourage the use of ll Vimal Joshi, Dehradun Tel: +91 40 233 000 61, 233 006 26with the interest of investors +91 40 233 006 65 Feedback: Please send your feedback and comments to Editor-in-Chief: K S Popli [email protected] Subscribe: Tel: +91 11 2642 4071/72advisory board 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 11-46507580Prof 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 0198 | Energy Next | March 2017



NATIONAL NEWSGovt doubles solar parkcapacity to 40,000 MWCabinet approves enhancement of capacity from 20,000 MW to 40,000 MW ofTthe Scheme for Development of Solar Parks and Ultra Mega Solar Power Projects he cabinet committee on economic affairs, chaired by the Prime Minister Narendra Modi approved the enhancementof capacity from 20,000 MW to 40,000MW of the Scheme for Development ofSolar Parks and Ultra Mega Solar PowerProjects. The enhanced capacity wouldensure setting up of at least 50 solar parkseach with a capacity of 500 MW and abovein various parts of the country.Smaller parks in Himalayan and otherhilly States, where contiguous land may bedifficult to acquire in view of the difficultterrain, will also be considered underthe scheme. The capacity of the solarpark scheme has been enhanced afterconsidering the demand for additionalsolar parks from the states.The solar parks and ultra mega solarpower projects will be set up by 2019-20 with Central Government financialsupport of Rs 8,100 crore. The totalcapacity when operational will generate64 billion units of electricity per yearwhich will lead to abatement of around 55million tonnes of CO2 per year over itslife cycle. like glass, metals, heavy industrial in both countries. Hydroelectric powerIt would also contribute to long- equipment etc. The solar parks will also is seen as a source of power that is vitalterm energy security of the country and provide productive use of abundant for maintaining the stability of the gridpromote ecologically sustainable growth uncultivable lands which in turn facilitate as the share of renewable sources ofby reduction in carbon emissions and development of the surrounding areas. power, which are susceptible to weathercarbon footprint, as well as generate The Minister said that the the project conditions, is increasing in the grid.large direct and indirect employment will also strengthen ties with Nepal and All the states and UTs are eligible foropportunities in solar and allied industries generate employment to 3,000 people benefits under the scheme. The state government will first nominate the SolarThe scheme will contribute to long- Power Park Developer (SPPD) and alsoterm energy security of the country identify the land for the proposed solarand promote ecologically sustainable park. It will then send a proposal togrowth by reduction in carbon MNRE for approval along with the nameemissions and carbon footprint of the SPPD. The SPPD will then be sanctioned a grant of up to Rs 25 Lakh for preparing a Detailed Project Report10 | Energy Next | March 2017

SOLAR(DPR) of the Solar Park. Thereafter,Central Financial Assistance (CFA) of upto Rs 20 lakhs/MW or 30 percent of theproject cost including Grid-connectivitycost, whichever is lower, will be releasedas per the milestones prescribed in thescheme. Solar Energy Corporation India(SECI) will administer the scheme underthe direction of MNRE. The approvedgrant will be released by SECI. The solar parks will be developed incollaboration with state governments/UTs. The state governments/UTsare required to select the SPPD fordeveloping and maintaining the solarparks. Solar power tariff hit an all-time low of Rs3.3-3.309 per kWh—thelevelized tariff—for the 750MW projectoffered by Rewa Ultra Mega Solar Ltd inMadhya Pradesh earlier this month. The minister also said that thegovernment is also working on apolicy to encourage solar equipmentmanufacturing. “There is considerableinterest to set up solar equipmentmanufacturing in India. Afterconsultation with the Ministry ofElectronics and Information Technology,the benefit of M-SIPS will also beextended to solar equipment March 2017 | Energy Next | 11

NATIONALWind tariff in India falls to Rs 3.46 per unitFollowing a sharp drop in solar tariff, wind power tariff has also Rs 3/unit, wind power cost down to Rsfallen to an all-time low of Rs 3.46 3.46/ unit through transparent auction.per unit in an auction of 1,000 MW A green future awaits India,” Powercapacity conducted by Solar Energy Minister Piyush Goyal tweeted.Corporation of India (SECI). The states that do not have adequate “Mytrah Energy, Green Infra Wind wind resources will get power fromEnergy, Inox Wind Infrastructure these 1,000 MW capacity. “WhileServices, Ostro Kutch Wind and solar in cheaper than wind energy, theAdani Green Energy have emerged advantage of wind is that the equipmentas lowest bidders. All these five firms for generating it is entirely made inhave quoted Rs 3.46 per unit rate for India. To produce solar power, Indianthe 1,000 MW capacities on block,” a companies still have to depend onsource said. Chinese imports for panels etc.,” said Soma Banerjee, principal, energy and “After solar cost reduction below infrastructure at CII.India may light up all villages by 2018 MPs Partner withIn a conversation with a leading EPI, Chicago newspaper, Chairman & Managing that it might add to their financial burden.Director (CMD) of Rural Electrification The government introduced a programme With the goal of acceleratingCorporation Limited (REC) PV Ramesh named UDAY (Ujwal Discom Assurance pragmatic solutions for India’ssaid that India would be able to provide Yojana to recover the stressed discoms diverse energy challenges, Indianpower to all the villages by next year. MP’s through the Climate ParliamentBesides idle power generation capacity, “Buying power is a commercial began a partnership with the Energythe country has huge unmet demand for decision for states. A lot of progress has Policy Institute at the University ofelectricity happened under UDAY in several states Chicago’s India office (EPIC-India) but if somebody thought that financial on the 21st of February in New Delhi. However, state-run power distribution restructuring would bring in miracles, I Through the collaboration, the twofirms are hesitant to buy more power fearing thing that is too simplistic an assumption,” organisations will work together in said Ramesh. the areas of electricity sector reform, energy and environment policyMPs to provide solar powered street lights analysis and capacity building.Adirective has been issued asking the members of parliament to provide government’s focus on the optimum use The MoU signing ceremony in of new and renewable energy. Prime New Delhi was attended by Dr Sanjaysolar energy-powered street lights in Minister Narendra Modi has emphasised Jaiswal, Member of Parliament fromrural areas. As per the new directive, the on boosting the renewable energy capacity Paschim Champaran in Bihar and Mrmembers of Rajya Sabha and Lok Sabha of the country from 30 GW to 175 GW. Vincent Pale, Member of Parliamentwill be offering solar energy through “Some of the states have from Shillong in Meghalaya.MPs’ Local Area Development scheme electrification of less than 50 per cent.(MPLADS) fund. As several areas in these states have Sharing his thoughts, MP DrThe new rule is a step towards inadequate coverage of street lighting, Jaiswal said, “I am hopeful that this the Ministry of New and Renewable partnership will open new avenues for Energy has developed Atal Jyoti Yojna addressing energy access and several for providing solar lighting systems for opportunities for implementing low public use,” reads the directive. carbon technologies. All of legislators of The Atal Jyoti Yojna includes 75 per Climate Parliament network have shared cent of cost of solar street lighting and vision which is to see that every citizen the remaining amount is to be offered of our region has access to clean, reliable from MPLADS funds. and affordable energy.”12 | Energy Next | March 2017

NEWSIndia gets its first mall with largest Solar Power plantAfter Prime Minister Narendra Modi the occasion. Following the installation shared his vision to raise renewable of single-site solar plants, the mall willcapacity to 175 gigawatts by 2022, a save 30 percent of its electricity usage byretail mall in Mumbai Metropolitan using solar energy.Region announced the inauguration of900KVA Rooftop solar power plant. The Speaking on the development, Shethsolar power plant set up is first of its said, “We believe solar is the power ofkind in India and can generate 91000 our future. We as a part of the societywatt in a month through solar energy. are taking a small step towards saving energy by installing solar power plant in The plant was inaugurated in the mall. We received full co-operation,Viviana Mall by Thane mayor Sanjay guidance and support from all concernMore and Municipal Commissioner government departments. We also aim toof Thane Sanjeev Jaiswal. Chairman increase the power generation in comingand Managing Director, Sheth Corp & years by 15 per cent and would want to beViviana Mall Ashwin Sheth also graced known as the greenest mall of India.”Solar tariff drops to Rs 2.97/unit sImnoaduxiraicmesshi:soNeuRiltdiEAayogThe solar tariff has dropped to a new low of Narendra Modi. First year solar tariff In order to help realise the goal Rs 2.97 per unit in a recently conducted bids at record low of Rs 2.97/unit,” Power of sustainable development forauction. The auction was reportedly Minister Piyush Goyal posted on a micro- affordable and clean power access,conducted for 750 MW capacity in Rewa blogging site. India needs to maximise renewableSolar Park, Madhya Pradesh by a joint venture energy sources, says Niti Aayogof Madhya Pradesh government and Solar “The tariff has come down due to lower through a micro-blogging site.Energy Corporation of India (SECI), capital expenditure and cheaper credit. The per MW capital expenditure cost has come “We need energy efficiency by “India marches on towards realising down to Rs 4 crore from earlier range of Rs maximising supply of renewable energythe clean energy vision of Prime Minister 5-6 crore. Similarly, the interest rates have sources to realise the goal of #SDG 7 also slipped to 8.5 per cent from earlier 10- on affordable and clean energy access,” 12 per cent,” a senior official said. Aayog tweeted. “The first year tariff quoted by the “We’re at a time when prices of companies are - for Unit 1 - Rs 2.979 by renewable energy sources like solar are Mahindra, for Unit 2 - Rs 2.970 by Acme falling rapidly. This will soon spread to and for Unit 3 - Rs 2.974 by Solenberg. different energy sources,” it added. There would be 5 paise escalation for 15 years and 33 paise to be added for the Niti Aayog, may soon rank states levelised tariff,” he added. on the basis of energy efficiency, that wouldhelp help India achieve$41 mn USAID aid for India’s clean energy mission its commitment of lowering energyThe Global Social Benefit Institute consumption. (GSBI), based at the Miller Centre (USAID) has revealed its plans tofor Social Entrepreneurship at Santa Clara facilitate investments of USD 41 million March 2017 | Energy Next | 13University (SCU) has partnered with in clean energy.New Ventures (NV), to help one millionIndians gain access to clean energy through The United States Governmentinnovative solutions by 2018. agency leverages India’s growing human and financial resources through In the view of above, The United States partnerships that catalyze innovation andAgency for International Development entrepreneurship to solve critical local and global development challenges.

STATEREC sanctions Rs.2025 Cr under BRGF to Bihar DISCOMsRural Electrification Corporation CMD Dr P V Ramesh has financial hurdles but also expedite the the presence of BSPHCL CMD Pratyaycommunicated the sanction of Rs implementation of projects under BRGF. Amrit, SBPDCL MD R Lakhamanan,2025 crore under BRGF to Bihar NBPDCl MD Sandeep K. R. Pudakalkatti,DISCOM. This will not only remove the The visit was for a detailed review REC ED Dinesh Arora, REC ED G.S of the progress of DDUGJY in various Bhati. Officials and representatives of districts of Bihar. It was conducted in the agencies who attended the meetings committed to electrify 350 UE villages by March 2017. Ramesh handed over the first grant component of Rs 651.29 crores representing the 2nd installment of DDUGJY project worth Rs 5800 Crore. He also paid a courtesy visit to the Chief Minister, Energy Minister and Chief Secretary of Bihar.UJALA scheme launches in Sikkim pRRrsaoj6aje7sct5ht carnfgoertistslosaonlaor fIn order to replace inefficient bulbs with energy efficient LED bulbs in Sikkim State Designated Agency (SSDA) IDFC Bank has sanctioned a loan of RsSikkim, the state power minister D.D for introducing UJALA scheme. UJALA 675 crore for a solar power project toBhutia has launched Unnat Jeevan by Scheme will help consumers to save be installed in Rajasthan. The project isaffordable LEDS and Appliances for All money on their electricity bills and enable owned by Solairedirect, a French company.(UJALA) scheme in the state. the government to meet the demand of Managing Director of Solairedirect Energy electricity during peak hours. India confirmed that the solar power During the event, Bhutia appreciated project would be installed at Bhadla inthe scheme and congratulated the Energy Sikkim is one of the fastest developing Rajasthan under National Solar Mission.Efficiency Services Limited (EESL) & states in India. The number of industries “Our NSM Bhadla project, which is under has increased in the state and so has the construction currently, is taking project demand for power. The minister has finance from IDFC Bank for Rs 675 crore encouraged people to use LEDs and create at a debt-equity ratio of 70:30,” he said. awareness around them. IDFC Bank is charging 11 percent Ronak Bandopadya, an officer from Energy interest during construction and 10.5 Efficiency Services Limited (EESL) said that percent from the start of commercial the government will distribute 14.5 lakhs of operations. The loan has been channelised 9W LED bulbs and 8.7 lakhs of 20W LED tube through Solaire Surya Urja, a special lights. An estimated 1.45 lakh consumers are purpose vehicle. According to the reports, expected to be benefitted under the scheme. the bank is expanding its credit presence through fintech startups in Surat, Rajkot,Solar plates, lanterns distributed in Rajasthan Chandigarh and Bengaluru.BSF has distributed 88 solar plates and solar lanterns in Shahgarh Bulj, Jaisalmer Free medicines were also distributed to theunder its welfare activities and civic action villagers. The villagers were delighted andprogramme. The programme was inaugurated thanked BSF for their supports.by south DIG Naresh Kumar, commandant NK Neggi, second in command S N Goswamiand hosted by 18 battalions of BSF. Organised under supervision of Neggi, theevent was attended by hundreds of villagers.While Lokeshwar Khajuria and Dr SonaliKanwal gave medical aid to people, hundredsof sick cattle were treated by veterinarians.14 | Energy Next | March 2017

NEWSJ&K to harness solar, wind power in a big way N1R1aT5jaPMsCthWcaonmcampaicsistiyonatsJammu and Kashmir Chief Minister Mehbooba Mufti asked the Science with projects in this regard and see State-run power producer has that these are executed on the ground commissioned 115 MW capacityand Technology (S&T) Department to at the earliest. On the occasion, the out of 260 MW of Bhadla Solar Powerundertake projects for harnessing of meeting was apprised of the enhanced Project, Rjasthan.solar energy in a big way to supplement mandate of JAKEDA for taking up ofthe energy needs of the state. Chairing solar power plants from two megawatts “With this, the installed capacity ofa review meeting of J&K Energy to 10 megawatts. It was also told that NTPC’s solar power projects touchesDevelopment Agency (JAKEDA) and 25 sites have been identified in the 475 MW. The total installed capacity ofScience and Technology Innovation state for setting up solar power plants NTPC on standalone basis has becomeCouncil here, the Chief Minister said with generation capacity of around 41,177 MW and that of NTPC groupJammu and Kashmir has a fair potential 41 megawatts of power. The meeting has become 48,143 MW,” NTPC saidfor developing solar and wind energy was conveyed that under the Grid in a BSE filing. NTPC has plannedwhich if harnessed adequately would Connected Rooftop Power Plants capacity addition of about 1,000rid the state of its energy deficiency. Scheme, the Department has fixed a MW through renewable resources byMehbooba Mufti asked the target of setting up plants up to 450 2017. In this endeavour, NTPC hasconcerned department to come up megawatts capacity by 2022. already commissioned 310 MW solar PV projects. The 50 MW Solar PV atSouth Delhi to get its second waste-to-energy plant Anantpur in Andhra Pradesh, 260 MWDelhi is on its way to treat garbage in Solar PV at Bhadla in Rajasthan and 250 a more effective way as South Delhi Authority has been instructed to transfer MW Solar PV at Mandsar in Madhyamight soon get its second waste-to-energy the land to the SDMC. The Tekhand plant Pradesh and 8 MW Small Hydro Projectsplant. The plant is expected to reduce the would be financed as per the private- are under implementation, as per theamount of garbage that has been collected public-partnership model. company’s portal. Earlier this month,at the Okhla landfill over the years. While lower capital expenditure and cheaperthe Standing Committee has given its nod, credit had pulled down solar tariff to athe South Delhi Municipal Corporation new low of Rs 2.97 per unit in an auction(SDMC) is in the process of approving the conducted for 750 MW capacity in Rewaproject. The 15 megawatt (MW) WtE plant Solar Park in Madhya Pradesh.will be set up at Tekhand. Standing Committee chairpersonShailender Singh said that 14.2 acresof land will be given to the SDMC.Currently, the land is is used by the CementCorporation of India. The other plot of35.33 acres, for the project, is howevervacant. He said that the Delhi Development2,500 MW renewable power to be facilitated in Andhra PradeshWind energy producer Gamesa will “Around 2,500 MW renewal energy signed a Memorandum of Understanding invest around Rs 17,500 crore for capacity comprising of wind, solar and (MoU) to this effect with the Andhrawind, solar and wind-solar hybrid power wind-solar hybrid could be set up. We have Pradesh government,” he added.projects in Andhra Pradesh.“Gamesa will facilitate investors to setup wind, solar and wind-solar hybridpower projects in Andhra Pradesh.We will bring existing investors in therenewable energy space and also newinvestors,” Chairman and ManagingDirector Ramesh Kymal told media. March 2017 | Energy Next | 15

INTERNATIONAL Zimbabwe gets its biggest solar energyNew Zealand to play leading role in smart energy plantNew Zealand has long been a global leader Energy Policies of IEA Countries: New Many companies in Africa are in developing effective energy markets, Zealand 2017 Review, points out that staying struggling with electricity scarcity,renewable energy and establishing robust competitive in industry, while limiting power cuts and the reliance on dieselpolicies for electricity security, linked to its greenhouse gas emissions outside of the generators. Addressing such issues, aunique natural resource base and geography. power generation remains a technology and Swiss-based solar supplier Meeco has policy challenge. provided a 216 kWp ‘sun2live’ energy Over the past decade, New Zealand’s generating system as an off-grid solutiongrowing energy needs have outpaced “Government policies, including targets and to a Zimbabwean company.improvements in energy efficiency, mainly standards, are needed to open up the potentialbecause of the country’s expanding economy of energy efficiency in industrial heat, buildings The current installation of the so farand growing population, according to the and transport. Strong standards and policies largest solar energy plant in ZimbabweInternational Energy Agency’s latest study will guide technology innovation and growth, with a total capacity of 216 kWp marksof NewZealand’s energy policies. The report, said IEA Executive Director Fatih Birol. a major turning point in the history of energy supply in Zimbabwe and itsSaudi Arabia launches first stage of its renewables companies, which are still strongly dependent on fossil fuels.Saudi Arabia has launched 700 MW will not only diversify our power mix but renewables programme. With its aim also catalyze economic development and The sun2live energy generatingto achieve 3.45 GW of renewables by support long term prosperity. It is our goal system is an environmental friendly2020 and 9.5 GW by 2023, the ambitious to make the National Renewable Energy renewable energy solution. To meetrenewables tenders include 400 MW of Program among the most attractive and the local requirements of the client,wind projects and 300 MW of solar plants. well executed Government renewable meeco has highly customised this energy investment programs in the world,” energy solution. A special static “This marks the starting point of a said Minister of Energy, Industry and tracker enables the most efficientlong and sustained program of renewable Mineral Resources Khalid Al-Falih. “ positioning of the solar modules,energy deployment in Saudi Arabia, that which are oriented to two different directions in order to ensure the highest and over the day optimised energy production. Furthermore, it has placed the ground-mounted photovoltaic system at two different locations. The sun2live system will generate the energy to run the pumps to process the water.16 | Energy Next | March 2017

NEWSWorld’s first solar panel road opens in France Renewables hit 87% powerFrench ministers have officially generation IN Kenya opened the world’s first solar panel square meters of photovoltaic panels.road in Tourouvre-au-Perche, a small Constructed at a cost of €5 million (about Capital inflows is steadily increasingvillage in Normandy, France. The road $5.2 million), it can provide an average of into the renewable sector of Kenya.designed to be used by up to 2,000 767 kilowatt-hours (kWh) per day, which According to the Intelligence partner of themotorists per day, is covered in 2,800 enough energy to power all of the street Africa Renewable Energy Leaders’ Summit lighting in the village. (ARELS) Asoko Insight, renewable energy represents 87 percent of the energy mix in Wattway - the first of its kind solar panel the country. The government is raising power road will be assessed after a two-year test production through renewables from the period to determine its effectiveness. 2,341MW to 23,000MW. “We are still on an experimental phase. According to the experts, renewable energy Building a trial site of this scale is a real projects suited to address energy deficit in opportunity for our innovation. This remote locations. Director of Renewable trial site has enabled us to improve our Energy Eng. Isaac Kiva says, “Having photovoltaic panel installing process as adequate power from renewable sources well as their manufacturing, in order to will not only ensure the security of supply keep on optimizing our innovation,” said and cost effective tariffs; it will enhance the Wattway Director Jean-Charles Broizat in competitiveness of Kenya, and facilitate its a statement. socio-economic transformation.” The first Africa Renewable Energy Leaders’ SummitBangladesh launches solar ambulance will be held on 4-5 April in Nairobi.In rural Bangladesh, emergency vehicle manufacturer have collaborated Cbihgigneastbpercoodmuecserwoofrsldo’lsar patients are often taken to hospital to launch a solar-powered ambulance energyin hand-pulled rickshaw vans which that can run in narrow laneways.takes much time. With an aim to resolve China has turned the world’s biggestthis issue, a Bangladeshi university, a The inexpensive three-wheeled van is producer of solar energy by capacitygovernment organisation and a local as well-equipped as ambulances. It runs after doubling its installed photovoltaic entirely on solar power during the day (PV) capacity last year. The country’s and solar batteries power at night and National Energy Administration can be used in rural areas with no grid (NEA) has revealed that its solar power electricity. Kamal Hossain, a driver who production has reached 77.42 GW. has tested a prototype of the ambulance, said that it was safe and comfortable to Shandong, Xinjiang, Henan were drive on all surfaces, and went at a good some of the provinces that saw the most speed. Currently, the vehicle is in the capacity increase. Other provinces like field testing stage and expected to be Xinjiang, Gansu, Qinghai and Inner launched by the end of 2017. Mongolia had the greatest overall capacity by the end of the year. NEA has furtherNew Zealand gets its first solar-powered electric confirmed that the country will add morevehicle charging station than 110 gigawatts of capacity in theNew Zealand’s first on-road, solar- 2016-2020 period. powered electric vehicle charger, power for the first year from Trustpowerlocated on The Strand, Tauranga, is now along with a two hour- free parking. Solar plants generated 66.2 billion General Manager of Powerco Andrew kilowatt-hours of power last year,open to the public. The ‘Electric Station’ gets McLeod informed that the station will accounting for 1 percent of China’s totalenergy from 18 solar panels and has two bring help the residents to charge and power generation, the NEA said.allocated car parks. The EV charger has a shop, and other people to visit Tauranga’sunit that displays the amount of electricity CBD. The grid provides back-up powergenerated from the sun and the grid. when the produced solar-power isThe Electric Station will provide free insufficient. March 2017 | Energy Next | 17

COVERSmall Hydro Powerin IndiaSmall Hydro Power (SHP) is considered as a reliable option forboth grid interactive and decentralised power generation, writeBhuwanesh Kumar Bhatt and Sanjay Kumar Shahi Bhuwanesh Kumar Bhatt Sanjay Kumar Shahi global competitiveness depends a lot on the availability of reliable and quality power atElectricity has almost been end-use energy consumption and it is one competitive prices. In India, the demand for recognized as a basic human of the most critical elements on which the power is enormous and is growing steadily. need. In today’s world, electricity socio-economic development of any country is the fastest-growing form of depends. The growth of the economy and its Power sector in India has grown significantly since Independence, both in terms of18 | Energy Next | March 2017 installed capacity as well as transmission and distribution system. The total power-generating capacity has increased from a meagre 1362 MW in 1947 to 309 GW in 2016. The per capita electricity consumption, which was a mere 16.3 kWh in 1947 has increased to 1075 kWh in 2015-16. Despite this, the growth of electricity demand has surpassed the power supply and our country has been facing power shortages during peak electricity demand in spite of the manifold growth over the years.

SHP Electricity generation from SHP is becoming increasingly competitive due to low tariff, etc. The challenge is to improve reliability, quality and reduce costs For the 8-9 percent growth rate that India about 20,000 MW, of which about 4341 MW Plan), which includes 10,897 MW from largeaspires for, its energy need is increasing has been exploited. A target of adding about hydro projects. In addition to this, a capacitycorrespondingly. The electricity demand in 5000 MW by 2022 is kept by the Ministry addition of 1300 MW is expected from smallthe country is expected to grow at 10 percent of New & Renewable Energy (MNRE) by hydro upto 25 MW station capacity.per annum. With the Electricity Act (2003), installing SHPs. The Indian SHP developmentElectricity Policy (2005) and Tariff Policy programme received a new tempo after the ll HISTORICAL PERSPECTIVE:(2006/2016) in possession, the country has liberalization of economy and invitation to India has a history of about 110 years ofcreated a conducive atmosphere for investments private sector for investment in the power hydropower. The first small hydro projectin the power sector. sector. Today, the SHP programme is essentially of 130 KW commissioned in the hills of private investment driven. Darjeeling in 1897 mark the development It has been realized that there is a need of hydropower in India. The Sivasamudramto tap all possible sources of energy to meet Electricity generation from SHP is becoming project of 4500 KW was the next to come up inthis challenge and Small Hydropower (SHP) increasingly competitive due to low tariff, Mysore district of Karnataka in 1902, for supplyis considered as a reliable option for grid etc. The challenge is to improve reliability, of power to the Kolar gold mines. Followinginteractive as well as decentralized power quality and reduce costs. The focus of the SHP this, there were number of small hydro projectsgeneration. programme is to lower the cost of equipment, set up in various hilly areas of the country. Till increase its reliability and set up projects in the Independence (1947), the country had an The estimated potential of a SHP project areas which give the maximum advantage in installed capacity of 1362 MW, which included(upto 25 MW station capacity) in India is of terms of capacity utilisation. 508 MW hydropower projects, mainly small and medium. A planned development of Hydropower represents use of water hydropower projects in India started only in the resources towards inflation-free energy post-independent era. The focus was laid on due to absence of fuel cost with mature large-scale power generation through big hydro, technology characterized by highest thermal and nuclear route. prime moving efficiency and spectacular operational flexibility. Out of the total power First 50 years after Independence saw a generation installed capacity of 308834 (as on capacity addition of 85,019 MW, including 30.11.2016) in India, Hydropower contributes 21,644 MW of hydropower stations, most about 15.37 per cent i.e. 47,457MW (Large of them were being large hydro. Since the Hydro + Small Hydropower). development was mainly in the central sector and the State Electricity Boards (SEBs) were A capacity addition of 88,537 MW is more or less tuned to the central planning envisaged from different conventional and renewable sources during 2012-2017 (the 12th March 2017 | Energy Next | 19

COVERsystem, relatively less importance was given to potential sites, out of which 4324 MW has been of steps to promote development of SHP insmall projects. In the late 80’s, it was realized harnessed at 1077 sites ( as on 31.01.2017). a planned manner and improve reliabilitythat the development of SHP potential has Out of this potential, about 50 percent lies in & quality of the projects. By giving variousremain largely untapped as the focus was on Himachal Pradesh, Uttarakhand, Jammu & physical and financial incentives, investmentslarge-scale power generation. In order to Kashmir and Arunachal Pradesh. In the plain have been attracted in commercial SHP projectsprovide focused attention to small size projects, region Maharashtra, Chhattisgarh, Karnataka apart from subsidizing state governments tothe subject of small hydro was brought under and Kerala have sizeable potential (state-wise set up small hydro projects. MNRE is givingthe preview of renewable energy. details of the potential are given in Table 1.) special emphasis to promote use of efficient SHP projects normally do not encounter the designs of water mills for mechanical as well as The decade of 90s saw a firm footing for problems associated with large hydel projects electricity generation and setting up of microthe development of small hydro in India. A of deforestation and resettlement. The projects hydel projects for remote village electrification.comprehensive programme for exploitation of have potential to meet power requirementsits potential was built. Demonstration projects of remote and isolated areas. These factors ll SMALL HYDRO POWERwere supported throughout the country with make small hydel as one of the most attractive PROGRAMMEnew technical and engineering concepts to renewable source of grid quality power The small hydro programme of MNRE has twoharness small, medium and high heads for generation. The MNRE has taken a series distinct components. One, SHP projects in MWSHP projects in hills as well as canals. Researchand Design projects and a dedicated center STATE WISE IDENTIFIED SITES AND INSTALLED PROJECTS WITH-- Alternate Hydro Energy Centre (AHEC) at CAPACITY IN MW.University of Roorkee (now IIT, Roorkee), toprovide technical support to the small hydro POTENTIAL, INSTALLED & UNDER IMPLEMENTATION (as on 30.11.2016)sector were supported. A database of potentialSHP sites on small rivers and canals was Potential Project Installed Project Underconcurrently developed. Implementation State Total Capacity Capacity Capacity (MW) (MW)ll HYDROPOWER Nos. Nos. Nos. (MW)CLASSIFICATION IN INDIA Andhra Pradesh 387 978.4 71 232.98 14 40.94Hydropower projects are generally categorised & Telenganain two segments i.e. small and large hydro. Arunachal 677 1341.38 152 104.605 13 10.45In India, hydro projects up to 25 MW station Pradesh 119 238.69capacity have been categorised as SHP projects. Assam 93 223.05 6 34.11 3 12Further, these are classified as: Bihar 29 70.7 13 26.9 Chattisgarh 200 1107.15 10 76 4 91.25CLASSIFICATION OF SMALL Goa 6 6.5 1 0.05 0 0HYDRO IN INDIA Gujarat 292 201.97 6 16.6 9 57 Haryana 33 110.05 9 73.5 0 0Pico 5 kW & below Himachal Pradesh 531 2397.91 180 798.81 21 33.5Micro 100 kW & below J&K 245 1430.67 40 158.03 32 35.3Mini 2000 kW & below Jharkhand 103 208.95 6 4.05 8 34.85 Karnataka 834 4141.12 166 1220.73 13 70.75Small 25000 kW & below 245 704.1 31 205.02 12 72.75 Kerala While Ministry of Power (MoP) in Madhya 299 820.44 11 86.16 3 4.9Government of India deals with large hydro Pradeshprojects, the responsibility of Small Hydro Maharashtra 274 794.33 64 346.175 5 30.35Development upto 25 MW station capacity Manipur 114 109.13 8 5.45 3 2.75rests with MNRE. The subject up to 3 MW was Meghalaya 97 230.05 4 31.03 3 24.2transferred from MoP in 1989 and again in Mizoram 72 168.9 19 41.47 21999 the subject up to 25 MW was transferred Nagaland 99 196.98 12 30.67 2 4from MoP to MNRE. Orissa 222 295.47 10 64.625 4 2.2 Punjab 259 441.38 54 170.9 4 3.6ll SMALL HYDRO POTENTIAL Rajasthan 66 57.17 10 23.85 0 4.75The total hydroelectric power potential in Sikkim 88 266.64 17 52.11 1 0the country is assessed at about 1,50,000 Tamil Nadu 197 659.51 21 123.05 0 1.5MW equivalent to 84,000 MW at 60 per cent Tripura 13 46.86 3 16.01 0 0load factor. The identified potential of SHP Uttar Pradesh 251 460.75 9 25.1 1 0projects is 19,749 MW at 6474 numbers of Uttarakhand 448 1707.87 101 209.32 44 1.5 West Bengal 203 396.11 24 98.5 17 139.54 A&N Islands 1 5.25 0 84.25 7 7.91 020 | Energy Next | March 2017

SHPsize capacity range, which are grid connected line with Government of India policy, so far 24 both in public and private sector to set upand normally developed by the state government states have announced their policy for inviting SHP projects. In order to improve qualityor by a private developers. These projects are private sector to set up SHP projects. At least and reliability of projects, it has been madeinstrumental in increasing installed capacity 416 private sector SHP projects of about 2389 mandatory to get the project tested for itsof power generation in the state and eventually MW capacity have been setup till January 2017. performance by an independent agency andoverall capacity addition in the country. Apart achieving 80 per cent of the envisaged energyfrom this benefit, where the project is being The implementation of SHP projects is generation before the subsidy is released. Indeveloped there is a series of socio-economic governed by state policies and the potential order to ensure project quality/performance,activities in the project area which help in sites are allotted by the state governments to the ministry has been insisting to adhereoverall development of the area. Since the power private developers. The process of allotment to IEC/International/AHEC standards andproject is a permanent asset in remote area, it of sites by the states and statutory clearances Guidelines for equipment and civil works. Thealso provides sustainable economic activity and including land acquisition, forest clearance, subsidy available from the Ministry is linkedemployment opportunity. The other component irrigation clearance etc. takes long time. The to use of equipment manufactured to IEC orof SHP programme is of decentralised power implementation of project is also affected other prescribed international standards. Theand energy generation through micro hydel and due to difficult terrain and limited working equipment in the project is required to confirmwatermills. These applications have the potential season. The other problem relates to inadequate to the following IEC standards.of developing local entrepreneurs and meeting evacuation facilities and transmission links.energy requirements of a village/community. A The project monitoring system is inadequate. SHP needs to be made profitable and asmall/micro hydel project and watermills have These reasons have resulted in the slow pace long-term investment opportunity, whilethe potential to provide sustainable economic of addition of small hydro compared to other ensuring quality and reliability of thestrength to a village community. renewable energy sources like solar or wind. power. To make SHP projects cost effective and reliable, standards, guidelines and The MNRE is giving financial subsidy,ll GRID-INTERACTIVE SHP Equipment StandardPROJECTS IEC 60034 – 1: 1983Beginning of the 21st century saw nearcommercialisation in the small hydro sector. Turbines and generator (rotating electrical machines) IEC 61366-1: 1998The present focus of the SHP programme is IEC 61116-1992to lower the cost of equipment, increase itsreliability and set up projects in areas that give Field Acceptance Test for Hydraulic performance of turbine IS: 4722-2001the maximum advantage in terms of capacity Governing system for hydraulic turbinesutilisation. SHP projects are being set up both IS 12800 (part 3) 1991in public and private sector. Transformers IEC 60041: 1991 IEC 60308 The private sector was attracted by these Inlet valves for hydropower stations & systemsprojects due to their small adoptable capacity IS 3156 – 1992matching with their captive requirements oreven as affordable investment opportunities. In IS 2705 – 1992 IS 2026 - 1983 IS 7326 - 1902 March 2017 | Energy Next | 21

COVERmanuals are required covering entire range ll DECENTRALISED SHP been set up in remote and isolated areas,of the related activities. Necessity of the mainly in Himalayan region. While thesestandards/ guidelines and manuals were PROJECTS projects are developed by various state agenciesstrongly felt by developers, manufactures, The rural energy scenario in India is responsible for renewable energy, the projectsconsultants, regulators and others. characterised by inadequate, poor and are normally maintained with local communityHence, MNRE took the initiatives and unreliable supply of energy services. Realising participation. A number of tea garden ownersassigned AHEC, IIT Roorkee to prepare the fact that mini hydropower projects can have also set up such micro hydro projects tostandards, guidelines and manuals covering provide a solution for the energy problem in meet their captive requirement of power.entire range of SHP activities. 27 nos. rural, remote and hilly areas where extensionof Standards/manuals/guidelines were of grid system is comparatively uneconomical, The Watermills (WM) and Micro Hydelcompleted by AHEC in 2013 and released promoting mini hydro projects is one of the Projects (MHP) have the potential to meet theon February 3, 2014. objectives of the SHP programme in India. A power requirements of remote and hilly areas number of mini/micro hydro projects have in a decentralised manner. There is significant potential for development and upgradationMNRE SUBSIDY DETAILS - AMOUNT OF CENTRAL FINANCIAL of watermills and micro hydro projects (upASSISTANCE (CFA)/SUBSIDY AND PATTERN OF RELEASE OF CFA to 100 kW) in the country. Watermills and micro hydro projects can result in to microDSI & Preparation of DPR entrepreneurship development and meet energy requirements in remote hilly areas. It States / Upto 1 MW Above 1 MW is proposed that the spread of micro hydro,Capacity Rs. 6.00 lakh Rs. 10.00 lakh watermill and individual projects would beAll States enlarged. In remote hilly and forest fringed area, the fuel wood may be replaced withNew SHP projects in State sector cheap electricity from mini/micro hydropower projects owned by individuals/community for Areas Above 100 KW & Above 1 MW which a large human resources otherwise isN. E. States, J & K, H.P. upto 1000 KW & upto 25 MW wasted and women are exposed to hazardous Rs. 75,000 Rs. 7.5 Crores / MW limited to gases through smoke. The micro hydro/ & Uttarakhand per KW. Rs.20 crore per project. watermill activity would also be linked to (Special Category Rs. 35,000 Rs. 3.5 Crores / MW limited to economic activities. per KW. Rs.20 crore per project. States) There are a large number of watermills in Other States hilly areas of our country. These traditional watermills are operating at a very lowNew SHP projects in private / co-operative efficiency of around 15 to 20 percent. The watermills have the potential to meet the power Category Above 0.1 MW – 25 MW requirements of remote areas in a decentralised manner. The scheme to support of microN E Region, J & K, H.P. & Rs. 1.5 crore/ MW limited to Rs. 5.00 crore hydel and watermills was revised in July, 2014. Uttarakhand per project The subsidy was enhanced besides relaxing many terms and conditions that existed in(Special Category States) the earlier SHP scheme of MNRE. After this, there has been considerable interest of state like Other States Rs. 1.0 crore/ MW limited to Rs. 5.00 crore Uttarakhand, J&K and Karnataka to take up per project this activity. Tea and coffee garden owners are also showing interest in directly implementingRenovation & Modernization of old SHP projects in public sector micro hydel and watermill projects. Areas Upto 1000 KW Above 1 MW & upto 25 MW About 2460 upgraded watermillsAll States & Uts Rs. 10,000 per KW Rs. 1.00 crore/ MW limited to [mechanical and electrical output (up Rs.10.00 crores per project to 5 kW)] have been installed in Kerala, Karnataka, J&K, Tamil Nadu, NagalandWatermills and Micro Hydel Projects and Uttarakhand. This is basically a scheme which is directly benefiting locals in theS. No. Category of Watermill Amount of CFA difficult remote and hilly areas of the Himalayan & sub-Himalayan region of the i. Mechanical output only Rs. 50,000/- per Watermill Electrical output (up to 5 kW) or Both mechanical ii. and electrical output (up Rs. 1,50,000/- per Watermill to 5 kW) iii. Micro Hydel (for all Rs.1,25,000/- per kW States)22 | Energy Next | March 2017

SHPcountry. Beside this, about 200 micro hydelprojects also installed by the state nodaldepartments/agencies mainly in ArunachalPradesh and Uttarakhand.ll TECHNICAL AND HUMAN Data Bank for SHP is the unique facilityRESOURCE DEVELOPMENT created at AHEC, which has developedAlternate Hydro Energy Centre (AHEC) two new designs of water mills for grain-at Indian Institute of Technology, Roorkee grinding and for mechanical/electricitywas established in the year 1982 with initial generation for country’s hilly regionsponsorship of MNRE. AHEC has beenproviding professional support in the field Investigation, DPR preparation and perspective inflation rates over the years. The data setof small hydropower development covering plan for States was screened to detect and remove outlinersplanning, detailed project reports, detailed • Capital Subsidy to State Sector Projects which have unreasonable installation cost.engineering designs and construction • Subsidy for Commercial Projects The parameters on which the civil and E&Mdrawings, technical specifications of turnkey • Renovation & Modernization of old SHP costs depend were identified. These parametersexecution/equipment supply, renovation projects (State Sector) are installed capacity, head and the year ofand modernisation of SHP stations, and • Water Mills / Micro hydel projects commissioning etc.techno-economic appraisal. IPPs and financialinstitutions are utilizing its expertise support for ll BENCHMARK COST STUDY OF The cost data of 167 small hydro and 69their SHP development. Data Bank for small SMALL HYDRO large hydropower stations covering 18 stateshydro projects is the unique facility created at The need for a comprehensive study on namely Andhra Pradesh, Arunachal Pradesh,AHEC. AHEC has developed two new designs capital cost of SHP projects was felt and Chhattisgarh, Gujarat, Himachal Pradesh,of water mills for grains grinding and for hence AHEC, IIT Roorkee was engaged by Jammu and Kashmir, Karnataka, Kerala,mechanical/electricity generation purpose for the MNRE to conduct a study of the trends Manipur, Mizoram, Nagaland, Maharashtra,the hilly region of the country. of cost of small hydro power projects and to Orissa, Sikkim, Tamil Nadu, Telangana, update/establish monograms for costing of Uttarakhand and West Bengal were collected AHEC has been imparting training to the canal/dam toe and run of river based SHP from different sources. Some of the cost of thefield engineers and technologists through projects up to 25 MW capacity. components for which values were not availableshort-term training courses. AHEC offers a was assumed for calculation.four semester Master of Technology (M.Tech) The cost data and market trends ofprogramme in “Alternate Hydro Energy hydropower stations installed during the last For appraisal of projects, the cost wasSystems”. A real time digital simulator for small 10 years were collected, studied and analysed. divided in major heads of cost like civil works,hydropower plants has been established with the To improve the benchmarking result, two electro-mechanical works and transmissionsupport from the MNRE for providing efficient approaches were adopted. In the first approach, & distribution works. The year-wise variationinitial and advanced training to operators and data for the project installed during last 10 years in the cost/MW value of the station based onengineering staff of different types of small (2005-2015) was considered, whereas in second given data was prepared for the both SHP andhydroelectric plants. A project to set up a small approach, data for last 5 years (2010-2015) was LHP stations and works out to be ₹5.3 crore andhydro hydraulic turbine R&D laboratory at considered. ₹5.14 crore per MW for small and large scaleAHEC with an objective of creating international respectively in the year 2005, ₹7.76 crore andlevel facilities for testing, design and R&D in the However, the costs for all projects were ₹6.95 crore per MW for small and large scalearea of hydraulic turbines, hydro mechanical brought at the base year 2015 by considering respectively in the year 2010 and ₹10.2 croresequipment, control and instrumentation of smallhydroelectric power plants have been sanctioned.A Laboratory for sediment monitoring andimpact analysis studies in hydropower plant isunder establishment at AHEC, IIT Roorkee.ll SHP INCENTIVE SCHEMESThe MNRE has been providing financialsupport/subsidy for following activities todevelop the SHP sector:• Research & Development and Capacitybuilding• Resource Assessment, Detailed Survey & March 2017 | Energy Next | 23

COVER | SHPand ₹8.76 crores per MW for small and large the SHP sector will be benefitted immensely. projects for infrastructures like roads etc.scale respectively in the year 2015. But by taking • State government may develop mechanisms • In case DISCOMs of the state wherethe data only for the year 2010 to 2015 these to avoid unnecessary delays in providing power project is set up do not providefigures are ₹7.45 crore and ₹6.7 crore per MW statuary clearance to projects. PPAs, developers should be facilitated tofor small and large scale respectively in the year • Ministry of Environment, Forest and Climate sell to adjoining state DISCOMs. For this2010 and ₹10.5 crores and 9 crores per MW Change may also develop mechanisms to be it is important that wheeling charges, crossfor small and large scale respectively in the year adopted for faster forest clearances. subsidy or other charges are reasonable.2015. The predicted cost for the year 2020 based • CERC/SERC may consider the revised There are cases where these charges are soon the analysis of given data is ₹13.5 crores and capital cost of the projects based on high that developers cannot sell to any other11.3 crores per MW for small and large scale the bench mark cost of the project for DISCOM or make 3rd party sale.respectively. The capacity wise variation has determination of generic tariff. The Central • Penal measures for strict enforcement ofalso been seen as 50 per cent higher for 1 MW Electricity Regulatory Commission may be RPO’s by the DISCOM and other utilities.compared to 25 MW capacity projects. requested to intervene in the matter and • All state utility may be made responsible issue guidelines/directive in this matter. for purchase of renewable power from the PLF is site specific depending upon the water Appropriate Commissions should be Independent Power Producer of the state atavailability and meteorological parameters encouraged to set more realistic tariffs for generic tariff to be notified by SERC within a particular location. As per the available Small Hydropower. revised per MW capital cost.data, the PLF of large hydro (LHP) and small • Where ever possible DISSCOMs of stateshydro (SHP) station for different states is in the where small hydro stations are set up must offer ll CONCLUSIONrange of 23 to 47 per cent and 17 to 61 per cent PPAs at preferential tariff. • Hydro is a renewable and clean source ofrespectively. Out of 236 stations, only 102 sites • The small project upto 5 MW be given the energy because it cannot be depleted and(76 SHP and 24 LHP) provided the PLF data. option to opt for the tariff period for 13 years or produces virtually zero greenhouse gases and 35 years as available for in the latest guidelines hence it meets both the standards of definition The cost of civil and E&M works worked out recommended by HPSERC for the project from of “clean and renewable”.in the state are having similar trend as of the 5 MW to 25 MW. • Hydropower is a proven, mature, predictable,actual costs of such projects. For the both SHP • Transmission connectivity should be highest conversion efficiency and costand LHP projects the total cost as well as the provided close to the SHPs by the State competitive RE source.civil works cost of the project increases with the Transmission Utility or DISCOMS, so that • Hydropower requires relatively high initialincrease in the head whereas the E&M works cost is not loaded on the generation project investment, but has the advantage of very lowcost decreases with the increase in head. and there should also be efforts to reduce other operational costs and a long life span, quick costs like cost of land and minimum loading on start and stop.ll ISSUES IN HYDRO • Hydropower plays a key role in powerIt is felt that if the following issues are resolved, systems due to its flexibility and reliability (peaking, ancillary services) and in the presentHydropower requires relatively high scenario, its importance has further increasedinitial investment, but has the advantage because of the large scale addition of variableof very low operational costs and a long renewable energy power in the form of solarlife span, quick start and stop and wind energy in the power system. • Life cycle analysis of hydropower shows as cleanest electricity technology with a low carbon footprint (4-14 g CO2 eq/kWh). • Hydropower has excellent energy payback ratio (typically > 200) • Hydropower is very important for mass- storage for electricity • Hydropower can be an opportunity for development when social and environmental impacts are dealt with properly. About the authors: Bhuwanesh Kumar Bhatt, Adviser, Ministry of New and Renewable Energy, Government of India Sanjay Kumar Shahi, Scientist, Small Hydro Programme Division, Ministry of New and Renewable Energy, Government of India (Views expressed by the authors are personal)24 | Energy Next | March 2017

COVER | SHPIgnored Value of SmallHydro Power projects?Small Hydro Projects do not normally face issues deforestation,resettlement and rehabilitation, but long and repeated adjournment indifferent courts and uncoordinated and archaic response by governments ismaking development of the sector difficult, observes Arun KumarIndia is posed for large deployment acquisition has drastically slowed down the However, hydropower development of renewable energy (RE) to meet its completion and development of hydropower comes under state subject. The states carbon reduction commitment by the project in the country. Long and repeated function under the guidance of the Central year 2030, where 75 GW is planned adjournment and extension of legal cases government. At least 24 states in the countryfrom hydropower. In spite of a conducive in different courts and uncoordinated and have announced their policies for privatepolicy, the development of hydro, both small archaic response by governments and others sector to set up SHP projects. Centraland large, is moving at snail speed. is making the hydropower development Electricity Regulatory Commission (CERC) more difficult. issues guidelines for determining tariff for The capacity addition in 11th and 12th power generated from SHP projects andplan from hydropower has been reduced. ll SMALL HYDRO POWER State Electricity Regulatory CommissionsConcern on environmental flow and HAS UNIQUE BENEFITS (SERCs), in their respective states, haveappropriate resettlement, as well as land Being a mature, economically efficient accordingly announced tariff and other technology, it has minimal impact on conditions. the environment. SHP has significantly contributed to rural electrification, ll PRESENT STATUS WITH improving living standards and economic GLOBAL PERSPECTIVE conditions, alleviating poverty as well as As per World Small Hydropower reducing greenhouse gas emissions globally. Development Report (2016), the global SHP (<10 MW) installed capacity is 78 Electricity is a concurrent subject, as GW in 2016, against total estimated SHP such, both central and state governments potential of 217 GW. SHP represents are responsible for promoting this sector approximately 1.9 per cent of the world’s and have authority to make necessary laws, total power installed capacity, 7 per cent of regulations, formulate and implement the total renewable energy capacity and 6.5 policies and programmes. March 2017 | Energy Next | 25

COVER EXPERT TAKEInnovation to boost SHPThe sector needs a fresh other supporting services) and thirdly, long clearances including land acquisition,outlook from both and repeated adjournments and extension forest clearance, irrigation, fisheries,government and private of legal cases in different courts along with district administration, local panchayat,sector, says Arun Kumar uncoordinated as well as anarchic response clearance etc. by governments and others is making theQWhy is the development hydropower development more difficult. What kind of fresh outlook is of hydropower, both small required to infuse a lease of life and large moving at What is the present status of the to the sector?snail’s pace? SHP sector? Comprehensive integration of power marketInadequate understanding and appreciation The private sector is not finding SHP dynamics, environmental markets andof the subject of hydro power especially sector attractive enough to make project economics along with continuedby regulators, common public, media, and improvement in mitigating adverse effects,government departments and are some of protection of fish and wildlife, and increasedthe obvious reasons for bringing down the public awareness of progress made inpace of hydropower, both large and small, this regard through continued technicaldevelopment. innovation shall bring hydropower sector to life. This is to be done by governmentWhat are the three major hurdles (both central and state), regulators, media,that are hampering the growth of academia and financial institutions.the sector?Firstly, inadequate preparedness of investments as the costs of projects have Can you talk about the impact ofgovernment and independent developers gone up from Rs 5 crore/MW in the yeartowards the present and evolving concerns 2005 to Rs 10 crore/MW in 2016 and tariff climate change on the sector?about hydro power on social as well as computation for SHPs by regulators is not Small hydro often have relatively smallenvironmental issues. Secondly, shadow of making attractive for investments. The catchment area and does not have channelhigh thrust of intermittent power and not projects involve time consuming process storage resulting in high variation inlooking at the true value of hydro power for allotment of sites by states and statutory inflows. The impacts of climate change are(auxiliary service, predictability, stable and increase in peak flows and decrease in lean flows and at the same time high erosion due to high peak flows. Thus small hydro shall be affected with these impacts.per cent of the total hydropower capacity, estimated as 25 GW. SHPs are normally over 50 per cent of identified SHP potentialincluding pumped storage. As one of the run-of-river or installed on the existing water sites are in Himachal Pradesh, Uttarakhand,world’s most important RE sources, SHP is resource structures like dams, barrages and Jammu & Kashmir and Arunachal Pradesh.fifth in development, with large hydropower canals constructed primarily for irrigation SHP projects have turned around economichaving the highest installed capacity to date, purposes. activities in local areas, villages and remotefollowed by wind and solar power in RE. areas in the past and has potential in future. SHP projects do not normally face the This makes SHP as one of the most attractive China dominates the small as well as issues deforestation, resettlement and and reliable renewable source of grid qualitylarge hydropower development globally. 51 rehabilitation, which are normally associated power generation even though variable butper cent of the world’s total SHP installed with large-scale hydro projects. While all fairly predicted source.capacity (definition of below 10 MW) and states have possibility to set up SHPs withapproximately 28 per cent of the world’s total well spread country-wide river network, The rapid increase in the installed capacityhydro installed capacity is in China. Japanand India also have a less developed SHP SHP projects do not normally face thesector. Canada, Brazil, Norway, Vietnam are issues deforestation, resettlement andcountries developing SHP. rehabilitation, normally associated with large scale hydro projects In India, hydro projects up to 25 MWstation installed capacity are classified asSHPs. The potential of SHP projects is26 | Energy Next | March 2017

SHPof SHP projects during the 10th and 11th additions along with SHP cumulative return on equity for large hydro but proposesPlan is attributed to participation of private capacity. The private sector is not finding any 14% for small hydro. Long implementationsector. The viability of these projects is more SHP sector attractive enough to make time and multi-departmental statutorynormally directly proportional to the investments. The costs of projects have gone clearances associated with the hydro projectscapacity of the project. Most of the states, up from Rs 5 crore/MW in the year 2005 to are some more reasons for such dissented.with reasonably high SHP potential, have Rs 10 to 12 crore/MW in 2016 and tariff for The projects involve time consuming processallotted the projects to the private sector for SHPs is no more attractive for investments. for allotment of sites by states and statutoryimplementation and operation. Since SHP clearances including land acquisition, forestprojects had reasonably good economic Low rate of average pool power purchase clearance, irrigation, fisheries, districtviability, a number of financial institutions rate in hydro rich states which are having administration, local panchayat, clearance etc.and banks were financing these projects. government supported old hydropower projects and non-sale of Renewable Energy ll VALUE OF HYDROPOWER However, this situation has changed in Certificates in the open market are some of Electric Power Research Institute of Unitedthe recent years and can be visualised by the other reasons for declining the interest in States study “Quantifying the Value oflooking at year-wise SHP installed capacity the SHP sector. CERC allows 15.5% to 16.5% Hydropower in the Electric Grid” (2013) and “Hydropower vision initiative” of USYearly SHP Installed Capacity Addition in India Department of Energy (2016) highlight the special value of hydropower due to its 350 inherent characteristics of peak power and ancillary service. 300 Hydropower projects have two primaryCapacity Installed per Year (MW) 250 values i.e. power sale and environmen¬tal as well as social benefits (RECs, CDM). The 200 structure and operation of power markets though vary across the country but has 150 common characteristics of generating electricity and providing flexibility to grid. 100 Environmental and economic market factors of RECs can provide additional 50 value to hydropower plants, as a sustainable, renewable or green electricity resource. 0 Unfortunately environmental and 1992222222222222222211111111119000000000000000009999999999-1011100100010010099999999982192038044715256364738562109-0--------------------------10111100100010010099999999992100349155826367475849673210 economic part have not been emphasized and strengthened by the government, legal, Year regulators, manufacturer, developers and March 2017 | Energy Next | 27

COVERCumulative SHP Capacity in India of hydropower can provide. Equally important to increasing 4,500 4,000 hydropower’s com¬petitiveness shall 3,500 be required continued improvement in 3,000 mitigating adverse effects, protection of fish 2,500 and wildlife, and increased public awareness 2,000 of progress made in this regard. Addressing 1,500 these objectives will require continued 1,000 technical innovation, measurable and implementable environmental sustainability 500 metrics and practices, increased planning at 0 the basin or watershed scale, and access toSHP Cumulative Installed capacity (MW) new science and assessment tools. 1989-90 1990-91 ll BARRIERS FOR SHP 1991-92 1992-93 DEVELOPMENT 1993-94 Hydropower development in India has 1994-95 several issues requiring immediate attention 1995-96 of the law and policy makers, planners, 1996-97 media, legal for finding out appropriate 1997-98 mitigation which otherwise are hampering 1998-99 the development. 1999-2000 • Land acquisition issues specially from 2000-01 forest and private 2001-02 • Forest & Environment, wild life and 2002-03 national sanctuaries clearances and post 2003-04 project award declarations. 2004-05 • Non availability of finances (equity or loan) 2005-06 and higher interest rates and tighter credit 2006-07 availability. 2007-08 • Lack of infrastructure like roads, 2008-09 construction power, reliable communication 2009-10 system is deterrent 2010-11 • Interference by local leaders/student 2011-12 leaders and others. 2012-13 • Law & order issues in border and difficult 2013-14 areas. 2014-15 • Absence of political/administrative will to execute hydro power projects. Year • Interference of outsiders on petty issues even for already cleared and undermedia unlike solar and wind sector. health, reduced consumption water use for construction projects at the last stage of Until the combination of power markets, thermal power and high manpower and completion economic development. • Rehabilitation & Re-settlement issues.envi¬ronmental markets, and project • Geological Challenges.economics create the sustainable revenue, A relook is required for developing SHP • Development of transmission lineshydropower projects will continue to remain sector with the following options: together with commissioning of hydrowhat it is today or even further reduce. • New run of river development including projects. new multi-purpose barriers like rubber dam • Conversion of storage schemes to ROR Changes and trends in the electric sector or instream installations. schemescall for a fresh look at the future role for • Modernising and optimising the existinghydropower. Lower natural gas prices and power plants and dams for increased Even much announced hydro policydecommissioning of coal power plants generation and environmental performance; review expected to come out in Aprilcontribute to a changing generation mix • New power plants at existing non-powered 2016 has not seen the day of governmentand potential markets for new generation dams, barriers and water conveyances such concurrence yet.sources. Increasing penetrations of variable as canals and water conduits for drinking andrenewable generation, such as solar and industrial usewind, will lead to greater demand for grid • New pumped storage hydropower (largeflexibility and balancing services and is and small) facilities including reservoirs ongoing to change the way the grid is operated top of hills for batter penetration of solar andand there is an urgent need to view the way wind energyhydropower is being developed scrutinised,delayed at all level but not compensated. Climate change may create aboutTreatment of all hydropower as a renewable around water availability for hydropowerresource is not there even being globally generation, and this uncertainty can affectwell-known fact. the long-term outlook of the hydropower industry. The degree to which these Hydropower has clear impact on the challenges can be effec¬tively addressed willcountry’s electric sector in terms of average influence the levels of future hydropowerelectricity prices, present value of electricity growth and reinvestment in existing watersystem costs, hydropower development resources structures and realization of theinvestment in local economy, energy diversity opportunities and benefits that the low costs,and risk reduction, reduced greenhouse gas grid services, and long project operating lifeemissions, reduced air pollution and humanLack of infrastructure like roads,construction power, reliablecommunication system are amongbarriers for SHP development28 | Energy Next | March 2017

SHPll BARRIERS TO SHPDEVELOPMENT AND POSSIBLESOLUTIONSInternational conference on sustainablehydropower development (2015) providedseveral mitigation measures and maybe considered for making hydropowerconducive for development. The mitigationmeasures are:• State is to decide whether it wants or notto develop its abundantly available naturalrenewable resource of hydropower.• Ownership of the projects should beclearly understood and appreciated as statedraws royalty from hydro projects andshould support at all levels.• Hydro power projects irrespectiveof capacity need to be considered as For SHP growth, govt must defendrenewable projects and incentives available all hydropower related legal cases ofto other renewable projects be provided. stakeholders and provide infrastructure• Grievance redressal of private investors for access and power evacuationmust also be attended at various levels,including at the field level (district and the need of environmental flow so that the hydropower projects in North East andsub-division)• Government must defend adequately clearance or execution on that account are adjoining countries viz. Bhutan and Nepalall hydropower related legal cases of not held up. and provide infrastructure of roads andstakeholders • Local community participation is transmission lines.• Adequate infrastructure for access and important. Urja Mitra as promoter for • Long term finance for hydro projectspower evacuation. hydropower and other energy development may be made available.• Decision by government and courts to • States are to be encouraged to invest in old • Upfront Payment to State Governmentbe expedited as delay in decision causes and less efficient Hydro plants by switching being part of project cost should beheavily and make hydropower unviable. to modern technology, higher efficiency and removed.• Environmental flow should be put in optimum utilization of resources • Capacity development is the key tolaw rather than in agreements. Adequate • Government need to encourage and success for scaling up of SHP programmeawareness and creation database for support to private developers for developing for planning, oversight, and monitoring; training to all project developers, facilitators, financial institutions andState wise SHP Potential, Commissioned community members; adopting theand Under Development standard equipments and designs. 4000 • Being small scale it may not afford of having persons specialist in each discipline 3500 of Civil, electrical, mechanical, electronic 3000 engineering and socio-economy. Small hydropower may need personnel having Commissioned Project 2500 Under Construction / fairly good background in each of these fields DevelopmentPower (MW) Total Potential • Continued support R&D in several areas 2000 • Clarity in Policies and regulations. 1500 The author is professor and MNRE chair 1000 professor, at Alternate Hydro Energy Centre, Indian Institute of Technology, Roorkee. 500 He served as coordinating lead author for 0 hydropower chapter of Special Report on Renewable Energy by Inter governmental Panel for Climate Change (IPCC).AndhraArPurAnasadsceahsahml... ChhattisBighararh Goa JHiammamcuhaJl&KhaaPrKHrrnaaGkarsauhjdtyhaaeaarnskmniadharat MadhMyaahaPrraKasedrhetarslaha MegMhaanliapyura NaMigzaolraandm Orissa RajaPsutnhjaanb TamilSiNkakidum UT (AUtt&UWtaterNsatrIParsTlBkraiaehdpnnaeudgnrssadlah) March 2017 | Energy Next | 29

COVERPolicy tweaking canmake India SHP hubDespite a feasible topography, India records relatively slow growth in SHP sector aslegislative complexity obstructs the project site allotment. Some help from the StateGovernments in removing the barriers of legislative clearances can make India go along way ahead in hydropower, says Kumar Deepak, Environmentalist, UNDP, inan interview with Sagarika RanjanQHow does the topography Hydropower Projects (SHPs). Himalayan and more. These issues, in long run, adversely affect of India make it feasible Sub-Himalayan ranges, North-Eastern Hills, the economic cost and benefit sharing from Western Ghats, Eastern Ghats, Rajmahal Hills, installation to generation of power. for Small Hydropower Amarkantak Range and Kaimur Range besides other ranges provide a wide range of sites for the How are the SHPs eco-friendlierProjects (SHPs)? SHPPs. India has an enormous range of small and financially viable than the bigIndian landscape and topography offers and big river tributaries as well as water-falls hydropower projects?an enormous feasibility potential for Small that may have the potential to be identified as SHPs have potential to comply with the power significant SHP sites. requirements of topographically remote and isolated landscape. Major economic feasibility What advantages do SHPs enjoy feature of such SHPPs vests in their durability over big hydropower projects? in long useful life and zero-inflation generation The SHPs do not face major problems in their cost. These projects replace fossil fuel-based social, economic and environmental feasibility thermal power generation plantsthus, lowering assessment unlike the Big Hydropower Projects. the carbon footprint in terms of gross carbon The big projects encounter serious social and emission reduction. SHPs pose restricted and environmental challenges like construction negligible ecological degradation which do of dams, mass scale deforestation, mass not alter the nature of river streams/tributaries displacement and rehabilitation, livelihood leading to siltation, landslides in the hills or issues, Disaster Risk Reduction and many flood. Such project sites reduce disaster risk in30 | Energy Next | March 2017

INTERVIEWthe long run like flood and landslide hazardsvulnerability. Major Research and Developmentin enhancing technical efficiency and reliabilityof equipment integrates not only managingproject cost lower but it also lowers down riskposed by other factors completing the project ontime for further power generation.What are the challenges faced by What is the way ahead? Are the is for those projects that have started theirthe SHPs? construction work after April 1, 2013.Despite having a feasible topography India policies helping?records relatively slow growth in SHPs sector. SHPs are one of the core areas where MNRE The financial support of Rs 6lakh for projectsOne of the main attributes of slow pace of SHPs is working to liberalize policies, both for the up to 1 MW capacity; Rs 10 lakh for projectsdevelopment is difficult site location owing Government and the private sectors. They are with more than 1 MW capacity will be provided.private and forest land with hilly terrains where working towards exempting the economic For projects up to 25 MW capacity, the Statesuch projects are set up. Seasonal constraints burden of higher project cost besides other Government Department/Agencies/local bodiesin hilly landscape also heavily affect the growth financial constraints to set up increased numbers will be required to prepare a Detailed Projectof SHPs. Given the difficult terrain and limited of Small Hydropower Projects. Government Report (DPR), including detailed survey andworking season, the gestation period in such has already issued new sanctions for the investigation or actual cost incurred in thisprojects is relatively longer, leading to increase implementation of SHP Programmes (Up to 25 regard, whichever is less.in the estimated project cost. SHP projects MW capacity) during the year 2014-15 and forare governed by the respective State policies the remaining period of 12th Five Year Plans What are your personal views onand hence the respective State Government (March 31, 2017) for the Central Financial the prevailing scenario of the SHPsallots specific potential project site to private Assistance and Financial support in the form of in the country?developers. Legislative complexity obstructs Grants/assistance/subsidy in the following areas: Since SHPs have the least damaging impactthe project site allotment by granting delayed • Resource Assessment and Support for on the environment and are a substitute forstatuary clearances including land acquisition, Identification of New Sites the fossil fuels in India, in the long run theseforest clearance and irrigation clearances. • Schemes for setting up new SHPs in the projects will help reduce carbon emissionSometimes such projects also face serious natural Private/Co-Operative/Joint Sector besides other playing a comprehensive role in contending thecalamities due to difficult site locations. sectors commitments that the Government submitted • Schemes for setting up new SHPs in the to the Nationally Determined ContributionsWhere do you see SHPs now and Government Sector (NDCs) to the United Nations Frameworkwhat capacity development we • Scheme for support of renovation and Convention On Climate Change (UNFCCC).can expect five years from now? modernization of existing SHPs in the India has ratified Paris Climate Agreement inIndia has tremendous potential for SHP government sector October 2016 and we are now legally boundgeneration. During the 11th Five-year plan to reduce carbon emission by 30 to 35 per centperiod,1418.84 MW capacity was added to Union MNRE provides financial support of our GDP of 2005 level. The government isSHPs against the target of 1400 MW. As per a of Rs 7.5 crore per MW limited to Rs 20 crore also committed to expand its non-conventionalreport by the Ministry of New and Renewable per project in the North-Eastern regions and energy generation capacity from 35 GW to 175Energy (MNRE), a target of additional 1600 special categories states of Jammu &Kashmir GW by 2022. SHPs feed power to remote hillyMW from such SHPs had been fixed for the (J&K), Himachal Pradesh and Uttarakhand. and rural agglomeration. Such projects would12th Year Plan. So far, 545.18 MW capacity Support of Rs 3.5 crore per MW limited to Rs 20 compensate the transmission loss by smart greenhas been added in the first three years. Till crore per project for other states being set up in grid corridors. Such projects help us overcomingDecember 31, 2014, 1016 SHPs have been set the government sectors. New policy sanctions disaster risk of droughts, floods and landslide.up with an aggregate capacity of 3970 MW provide financial support up to Rs 1.50 crore per State Government should remove the barriersand another 236 projects with an aggregate MW limited to Rs 5 crore per projectfor private of legislative clearances as such land acquisition,capacity of 768 MW are very much under sectors as well. This provision is in the North- forest and irrigation clearances so that allotmentimplementation. Current growth of gross eastern regions and special categories states of potential project sites could be investment-capacity is very slow as the capacity addition of J&K, Himachal Pradesh and Uttarakhand. friendly, proving to be a sustainable environmentis just 250 MW every year from such SHP Meanwhile, for the other states it is Rs 1 crore friendly SHPs destination.projects. MNRE is aiming to enhance this per MW limited to 5 crore per project. Thiscapacity addition by 500 MW per year whichcould fulfill the total capacity addition of 2000MW in the next five years. March 2017 | Energy Next | 31





COVERSmall Hydro Powerbig potentialThe potential for power generation via small hydro power projects inHimalayan and Sub-Himalayan regions is massive, writes Vikram AggarwalThe Indian government’s plan to At the moment, India is ranked rural and urban regions. As of August 2016, further develop renewable electricity 3rd among 40 countries in the world the total installed capacity of power stations sources by 2022 is leading various –‘Ernst & Young Renewable Energy in India stood at 305,554.25 Megawatt (MW), stakeholders to invest in the country’s Country Attractiveness Index’ due to the while electricity generation grew by up to 5.69power generation infrastructure, and create more government’s strong focus on promoting percent year-on-year to 486.44 BU duringawareness about alternate sources of energy. renewable energy, and implementation of April 2016-August 2016.Thus, to meet the projects within a set time limit. growing demand, India has begun to improve Development of the power sector is one of its power generation capacity by maximisingthe most crucial parameters when it comes According to a report published by IBEF, its current installed power via alternateto infrastructure development of a country. the power sector in India is one of the most sources of energy – and this is where theIn India, the power sector has transformed diversified in the world. Various sources of renewable energy is flourishing.over the years owing to constant efforts and power generation in the country range frominitiatives undertaken to improve the country’s the conventional – coal, natural gas, lignite, The Central Electricity Authority states inpower generation capacity. hydro, & oil, to more sustainable sources like its latest report that India’s total power capacity wind, solar, and agricultural & domestic waste. is valued at three lakh MW, out of which, over The IBEF report further states that the Indian 42,850 MW is contributed by renewable energy government’s steady focus on accomplishing projects and 42,783 MW by hydro power its target of ‘Power for all’ has managed to projects. What’s more, while solar and wind accelerate the power capacity addition in generated power have witnessed an inflow the country. Furthermore, it has been found of investment from several growth enablers, that the competitive intensity of power is another segment that is gradually gaining simultaneously increasing in terms of fuel, prevalence these days is Small Hydro-electric logistics, finances, and manpower. power. The demand for electricity has increased Globally, India is the 7th largest producer of in India over the years owing to rise in hydroelectric power, and is ranked 3rd in the consumption, driven by development in both world in total number of dams. When it comes34 | Energy Next | March 2017

OUTLOOKto feasibility, hydro-electricity is often touted and it is easy to install small projects of 50kw to environment friendly. The operations of theseto be the most affordable and environment- 500 kw. The projects are easy to operate and a projects are easy and provide opportunities forfriendly source of power. local inhabitant can be trained to do the daily local employment. Access to remote locations operations. These projects provide support to of the Himalayan range and lack of local According to reports, the installed utility- the local villages in meeting their daily needs at awareness about the SHP projects hinder thescale hydroelectric capacity of India, as a minimum cost. The projects are also a helpful progress of SHP development in India.of March 2016, was 42,783 MW, i.e. 14.35 resource for border security forces for lighting,per cent of the country’s total utility power electrification and other needs. Technological Thus, key stakeholders within this realmgeneration capacity. Apart from these, the advancements have been made in the should invest in a sustainable energy formatcountry also witnessed installation of small equipment for these projects and in future the that can also enrich local communitieshydroelectric power units, with a capacity of installation, operation and maintenance of through infrastructure development, jobmore than 4,274 MW. these projects will become easier. The efficiency creation, supply opportunities, and access to of the projects has also increased making them information/better facilities. The Ministry of New and Renewable Energy all the more viable.(MNRE), under Government of India, has ll WHAT THE FUTURE HOLDSbeen assigned the responsibility of developing ll GRID CONNECTED SMALL SHP technology is well established and allSmall Hydro Power (SHP) projects of up to 25 HYDRO major global manufactures of equipmentMW station capacities across the country. The In the ‘Strategic plan for new and renewable (turbines, generators etc) have world classMNRE estimates that the potential for power energy sector for the period 2011-17’ report, manufacturing bases in India. India is a majorgeneration from small hydro plants is 20,000 MNRE states that development of Grid supply base for SHP projects in South East Asia,MW. While Himalayan states possess most connected small hydro power technologies are Middle East, South America and others.potential for river-based projects, hydro power mature as well as commercially viable. Smallgeneration in other states is expected to come hydro projects 5-25MW are mostly located in India has a huge appetite for power andfrom irrigation canals. the Himalayan ranges on the smaller streams SHP can play a major role in this. With the of the main rivers. Projects are commercially world focussing on ‘Green Energy’ and ‘Self Small Hydro-electric power generation can viable and can be connected to the main grid Dependence on Energy’, the SHP sector inbe further classified into two categories: for supplying power to the local areas. Enough India stands at an opportunity of crossroads. number of projects will help in providing base Quick to implement, environment friendly,ll OFF-GRID SMALL HYDRO load power to the grid and greatly help shape steady returns on income, high PLF makeOff grid projects are ideal for remote locations the future of energy security for the country. the sector a front runner for attractingin hilly states e.g. border areas, villages with SHP projects are run of river projects and investment.small populations cut off from the maintransport and grid connectivity, Small river Global energy companies have been trackingstreams are abundant in the Himalayan ranges the SHP energy sector with interest for the past several years. Several international companiesWith the world focussing on ‘Green have invested in Hydro Projects in India inEnergy’ and ‘Self Dependence on the past years but due to regulatory approvalsEnergy’, the SHP sector in India stands not many projects have gotten off the ground.at an opportunity of crossroads SHP projects are located in remote locations in some of the smaller states of India - Arunachal Pradesh, Uttaranchal, Himachal Pradesh and J&K. A focused approach from the GOI and States on statutory clearances will pave the way for investments in the sector. While the potential for power generation via small hydro power projects in Himalayan and Sub-Himalayan regions is massive, the Indian government needs to develop stronger policies and develop better transmission networks in order to improve its current generation capacity. For now, it can be said that the future scope of small hydro power in India certainly seems promising, as long as it is developed in a way that can benefit all parties involved in future. The author is Managing Director, Virtuaal Infrapower Private Limited March 2017 | Energy Next | 35

COVERFuture Scope ofSmall Hydro PowerTo fill India’s energy gaps in the effort to keep overall economy afloat,SHP holds a key, feels Srinivas MovallaIndia has a successful business infrastructure, in-ordinate delays in obtaining the generation cycle. A run of river plant stores environment. The business sector has statutory clearances and approvals and severe water in the weir for a short duration and the moved by leaps and bounds. However, competition from other renewable resources. water is returned to water cycle on each day. when the whole country chants • Small hydro projects (90 per cent) efficient‘Digital India’, there are still gaps — gaps To accelerate growth in the hydropower in utilisation of the resource than solar (15-in infrastructure, gaps in jobs and gaps in sector and to bridge the gap between the 20 per cent), wind (35 per cent) and otherenergy sector that lead to our nation’s most actual and planned capacity addition, the renewable energy sources.deprived still having no access to power. This private sector is being seen as an important • In long term small hydro schemes haveis where energy sector, especially India’s small stakeholder. Though private participation the least impact amongst the environmentalhydro power sector can play a crucial role. in the hydropower sector has gained indicators like acidification, climate change, momentum in the recent past, it faces ozone layer depletion, photo chemical The current scenario of India’s small hydro several impediments in the execution of oxidation (smog) etc.,sector is that it is wrapped into coffins and projects across various stages of the projectquietly buried in graveyard due to several implementation cycle. ll GHG EMISSION COMPARISONfactors such as non-availability of basic • Hydropower generation cost levelised over India has 5th largest hydro potential in the 35 years of PPA period will be the lowest world and only 29 per cent is tapped. Hydro is compared to other clean energy sources whose critical to clean energy initiative. The country PPAs are for shorter periods. has set a target of 10 GW through small hydro • Small hydro power plants have advantage of power which is achievable. Small hydro offers a life span almost 50 years i.e. more than twice wide range of benefits especially for rural areas the life span of other renewable sources like in developing countries. We need to discuss wind, solar etc. some major benefits of this sector and its • Hydro can be turned on and off at short potentiality. notice and also can be ramped up or down • Hydro is a renewable resource that is quickly. This ability can be utilised to replenished by the environment over a compensate for variation in the output of relatively short period of time. Water is neither depleted nor its composition altered during36 | Energy Next | March 2017

SHPother renewable resources thus enabling other Small hydro sector should be naturalrenewable in the system. allies for govts to partner with, as their• Hydro typically has twice the PLF of solarand wind in addition to having storagecapacity (run-of-river) intraday therefore primary goal is to deliver sustainablehydro can quite accurately provide grid energy with minimum to negligibleday ahead schedules. The other renewable effects on the available RE resourcesresources cannot compete hydro in the aspectof grid stability.• Small hydro requires less land for installation • Declaration of Hydro projects also as to 25 MW may be extended to the hydro poweras capacity increases when compared to large renewables and include in the obligatory projects up to 100 MW.hydro, solar etc. purchase of state and lay down Hydro quota in • Extending low cost credit to hydro powerSmall hydro sector is staring at several renewables for state projects and access to NCEF are being explored.challenges today such as inordinate delays in • The modification of land bill to permit Green sovereign tax free bonds, interestobtaining required statutory clearances and government approved procurement of land subsidy, priority sector status for lending toland acquisition have been causing painful without having to obtain any consensus from hydro are options which are being considereddelays in commencement of civil works. the owners. for reducing the cost of financing.Hydro is not competitive in the short term • Assist small hydro developers in obtaining • Hydro power may be included under RPO asmarket due to Raising capital cost, delays Forest and Environmental clearance. a separate component(geological challenges, slow bank response, PIL, • Assure LC/Escrow to all projects which are • Possibility of dispatching “Cleanest PowerHigh inflation of civil works, long gestation completed within the stipulated time. First” in relation to merit order issues.period between DPR and construction start), • Single window clearance • Possibility of 50 year depreciation periodhigh financing cost and debt interest, Free • Fiscal incentives to reduce capital burden- for civil work of hydro projects may bepower obligations of host state, transmission exemption of import duty; Accelerated commissioned.charges, delay in land acquisition process and depreciationstatutory approvals, non availability of interstate • Generation incentives to reduce cost burden ll CONCLUSIONtransmission corridor etc. – similar to wind Needless to say that there is tremendousSome concessions to the development of small • Waive off cross subsidy surcharge potential for growth of small hydro sectorhydro sector, on this account, are badly required. In order to revive the Small hydro Sector from in our country. The need of the hour forSetting tariffs should be at a level that is attractive Inertia, the Government is proposing to take small hydro sector is a disruption of thefor IPPs to invest and obtain required return. various measures to create impetus to the sector status quo, which should foster investmentsCapital subsidy for small hydro power should and are considering the following measures. and help to develop sustainable businessbe increased and better mechanism to deliver • Hydro power may be deemed as renewable for entrepreneurs/investors/stake holders.the subsidy should be devised. Further following energy sector. Further, to build a more conducive andhave to be looked into: • Incentive available to small hydro projects up inclusive ecosystem for small hydro power to flourish, government backing is vital. Small hydro sector should, in fact, be natural alliesGHG EMISSIONS-POWER GENERATION OPTIONS 878 879 for governments to partner with, as their BASED ON LCA (g CO2 eq/Kwh) primary goal is to deliver clean and sustainable energy with minimum to negligible effects Intermittent-output option on available natural and renewable resources. Continuous-output option 620 The “Make in India” initiative of Prime Minister is a valiant kickstart for our energy sector and specifically applies to small hydro sector. The future looks bright, progressive and with the continued support of the government, the small hydro sector is poised to grow. Suffice to state that the future is a solid line; the current scenario 64 of the sector is a dotted line which requires6 8 14 17Small Hydro Thermal-Natural Gas Thermal-Oil Thermal-Coal government support in policy regulation. Focus Nuclear has now shifted to small hydro power. Wind The author is Promoter and Managing Director, Large Hydro Paschim Group Solar PV March 2017 | Energy Next | 37

WIND ENERGY | FUTURE BRIGHTAchievements, growth & futureof wind energy sector in IndiaWith wind producing states and progressive policies, India might witness 4000MW of wind installations this year, writes DV GiriIndian Wind Turbine Manufacturers’ for the state governments that needed to repowering of 500 to 1000 MW - each will Association (IWTMA) is happy to be incentivized by the central government help drive the industry in the next few years. note that in the financial year ending to meet their RPO targets. The Centre has March 2017, the wind installations waived the Central Transmission Utility While admitting that competitive biddingare expected to cross 4000 MW. States like (CTU) charges in the competitive bidding will become the order of the day in the nearAndhra Pradesh, Gujarat, Rajasthan and up to 2019 besides announcing reduction future, open access and freedom to sellKarnataka have been the major contributors in the duty structure. Considering that 90 under the captive and group captive policyin the total wind installations with their lion percent of the investments come from the must be made available both for intra andshare of 3718.91 MW in this journey. private sector in the wind sector, the payment inter-state transactions. security ‘Must Run Status’ and maintenance Noting that India had made significant of RPO by wind States are vital. The outlook for the future of the windcommitment under the Paris Declaration industry include certain states not obligatingand the CoP 21 to fight against the climate Outlining the key challenges ahead are the the Purchase Power Agreement (PPA),change, wind industry witnessed many reduction in Accelerated Depreciation (AD) delayed payment by certain DISCOMs andpath-breaking policies in 2016 such as the from 80 percent to 40 percent and possible increase of 1000 MW bidding to aboutdraft wind-solar-hybrid policy, guidelines withdrawal of Generation Based Incentive 5000 MW in the next two years. IWTMAfor development of onshore wind projects (GBI) would see some temporary slowdown noted that reduction of AD from 80 percentand for prototype wind turbines, proposal in the wind industry, the market was poised to 40 percent and non-continuation offor evaluation of small wind energy and to settle around 6-7 GW per year from 2018 GBI will also hamper the development ofhybrid projects, competitive bidding of 1000 and beyond. Exports of around 2 GW per wind power. The association also appealedMW of wind power and setting up of 1000 year from 2018, wind-solar-hybrid and to the Centre to favorably consider theMW ISTS connected wind power projects. recommendation made by the Union Ministry of Power for according zero rate The IWTMA had expressed its concern tax for the renewable energy sector under the proposed GST regime.The Centre has waived the CentralTransmission Utility charges in With the objective of fetching morecompetitive bidding up to 2019 besides investments in wind sector in the country,announcing reduction in duty structure bringing in more international collaborator and promoting indigenous manufacturers to venture in International markets, IWTMA has partnered with the Global Wind Energy Council (GWEC) to organise a mega three- day exhibition and two-day international conference – ‘Windergy India 2017’ from April 25 to April 27 at Hotel Ashok in New Delhi, where leaders from across the globe would deliberate and discuss the way forward and come out with solutions to tide over the key barriers faced by the wind energy sector. Windergy India 2017 is a mega event by the industry and for the industry and the main theme of the event would be ‘Wind Destination: India’ and ‘Wind Power Forever’. The author is Secretary General, Indian Wind Turbine Manufacturers Association38 | Energy Next | March 2017

BIOFUEL | GREEN FUTUREBio-fuels: Appropriate tool tocheck particulate emissionThe biodiesel industry is all geared to deliver 3 million tonnes of green fuelby 2019, which will provide half million direct jobs and one million jobs toancillaries, writes Sandeep Chaturvedi and stated its intentions to reduce the crude apidly increasing vehicular imports by 10 per cent and replace it with pollution over the past few biofuels by the year 2022. decades and complete neglect by The statement has been backed by several R the authorities to take reduction initiatives by the Ministry of Petroleum andmeasures have resulted in deterioration ofambient air quality across the country. A Natural Gas, viz., five per cent ethanol andrecently published study by IIT Bombay biodiesel blending, proposal to set up 12 2Gstates that “bad air resulted in 80,000 ethanol plants across 11 states to deal with thepremature deaths in 2015 and the economic agricultural waste and proposal to expediteburden was estimated about $10.7B”. After the introduction of Euro six fuels (the latestrecognising the alarming environmental diesel engine emissions legislation to make carssituation, the government took credible steps cleaner). March 2017 | Energy Next | 39

BIOFUEL | GREEN FUTURE Recently, Delhi witnessed a severe episode The national bio-fuel policy muchof thick smog. At least, eight premature deaths clearly set out the vision for next 10take place every day in Delhi due to pollution- years. The industry would make hugerelated diseases, the Supreme Court noted, investments which would in turnwhile ordering the Centre to stop the use of boost the economyfurnace oil and petroleum coke (pet coke) byindustries located in and around the capital. Air pollution cannot be treated as a local issue. taxed at par with High Speed Diesel (HSD)Biodiesel is one of the best and economical The impact of burning Agricultural waste in after blending. The industry is geared up tosolutions in such a situation. Punjab & Haryana and UP can be felt in New deliver 3mn tons biodiesel by 2019 and this will Delhi. The central and state authorities need to provide half million direct jobs and one million Biodiesel Association of India (BDAI) - the take up coordinated long term policy measures jobs to ancillaries.apex industry body for bio-diesel has been to mitigate pollution for larger national interest.continuously making efforts to impress the The government needs to provide a reliableCentre and the state governments to implement As per our estimates based on several and functional solution to the problem of heavypromotional policies to boost usage of green studies, the biodiesel would reduce vehicular vehicular/Industrial pollution in the cities offuel like biodiesel. Through various letters emission considerably and protect the India. It is a well-known fact that bio-dieseland memorandum to the ministries and the environment. In the letters and representations across the world is being promoted as greenstate governments, BDAI recommended that to the Ministry of New and Renewable Energy fuel which helps in mitigating particulateIndia needs promotional policy and taxation (MNRE) and state governments, the industry emission from diesel vehicles.rates for green fuel biodiesel. Promoting green had urged the governmentto remove variousfuel biodiesel would go a long way in curbing policy and taxation hurdles in implementing In 2009, the MNRE came out with avehicular emission and protecting environment. the national biodiesel blending programme. national policy on bio-fuels. The policy set out the vision, medium term goals, strategy The biodiesel industry has urged the Union The policy document should keep the and approach to bio-fuel development,ministries such as transport & shipping, focus on pollution reduction alone. The other proposed framework of technological,petroleum, new and renewable energy to benefits could be a result of successful policy financial and institutional interventions;recommend the finance ministry to adapt implementation. One of the key suggestions however, the policy is yet to bepragmatic policies that would lower the tax would to make use of Used Cooking Oil implemented. We expect that MNRE wouldburden on the green fuels. (UCO) and oil seeds grown in the tribal areas soon announce a national policy that will available for Biodiesel production. This will lay down steps to achieve the targets set by BDAI has also written to state governments prevent many ailments like cancer, obesity the government andreduce the dependencefor various policies and taxation-related matters and heart diseases that are caused due to on crude oil imports.to promote green fuel blending and implement consumption of polymerized compounds.the pending national policy on bio-fuels for The oil seed collection in the tribal areas will The industry can further increasereducing particulate emission from heavy provide sustainable employment opportunities production of biodiesel to 100 crore litresvehicles and industries in the country. Recently, in the remote areas; however, the states need to within 12 months of blending mandate. It isBDAI also filed a petition at the Supreme Court declare a promotional value added tax rate for widely agreed that such an increase in bio-fuelthat appraises about the benefits of the green biodiesel blending. blend will reduce particulate emission byfuel, citing the finding of research and studies in approximately 20 per cent.UK, USA and other countries. Biodiesel, being a green fuel, should not be The biodiesel industry has huge potential The recent Supreme Court order only to curb pollution and push economy growthvindicates the biodiesel industry’s view point. as well. The government is aware about this opportunity which has multiple benefits. The national bio-fuel policy much clearly set out the vision for next 10 years that can be implemented. The industry would make huge investments which would in turn boost the economy. If all goes as anticipated, the biodiesel industry would deliver 3mn tonnes biodiesel by 2019. Moreover, it is estimated that the size of the bio-fuels industry would rise to Rs 1.25 lakh crore by 2040. The author is the President, Biodiesel Association of India40 | Energy Next | March 2017

INTERVIEW‘Solar PV bid tariff has gotcost competitive’Sizeable fall in PV module price levels coupled with the recent decline inbenchmark interest rates by banks has made the arena favorable for projectdevelopers, says Sabyasachi Majumdar, Senior Vice President & Group Head,Corporate Sector Ratings, ICRA LtdQThe competitively bid and Rs. 4–5 /kwh respectively. Further ability to improve the plant load factor tariff of Rs. 3.3/kwh solar PV projects with their relatively (PLF) level (till the contracted energy for Rewa project is the shorter construction periods remain output) using trackers or by a furtherlowest discovered tariff in favourably placed within the renewable downward movement in equipment pricesIndia. How does this signify energy (RE) segment, while conventional over the execution period.a major improvement in cost thermal projects face much highercompetitiveness of solar energy execution risks because of the possible What do we understand by theagainst both renewable as delays in acquiring land and statutory deemed generation clause forwell as conventional energy clearances. grid non-availability that hassources? been considered in the RewaWith competitive bidding adopted for the What could be some of the Project bid? Please elucidateaward of solar power projects and the fall adverse impacts of any on the impact.in Photovoltaic Module price levels, cost deviation in project parameters Based on industry sources, we understandcompetitiveness of solar PV bid tariff has and cost assumptions on that the project power purchase agreementsignificantly improved as evident from project returns and debt service (PPA) structure has a few uniquethe decline in weighted average solar PV ratio? What can be done to deal provisions such as a state governmentbid tariff from Rs. 6.5/kwh in CY2014 to with this impact? guarantee for the capacity contracted byRs. 5.0/kwh in CY2016, and further to Rs The viability of such tariff for project the utilities of Madhya Pradesh as well as3.3/kwh for bidding of project capacity developer will be critically dependent upon compensation for deemed generation inin the Rewa Solar Park. Against this, the the availability of long tenure debt (up case of non-availability of grid, which inaverage feed-in tariff for wind energy to 18 to20 years post project completion turn provide mitigation against counter-and competitively bid thermal tariffs (last date) at cost competitive rates as well as party credit risk and risk of grid back down24-month-period) remain at Rs. 4.8/kwh its ability to keep the cost of PV modules to a large extent, respectively. within the budgeted levels. The deemed generation clause is Assuming capital cost of Rs. 4.6 crore/ particularly significant, given the MW (factoring AC: DC ratio of 1.15 incidences of back-down/grid availability times and scale benefits) and PLF of 21 constraints observed in a few states in the per cent, cumulative average Debt-service recent past, which led to loss of generation Coverage Ratio (DSCR)over debt tenure and in-turn loss of revenues for solar of 18 years with cost of debt at 10per cent power developers. is estimated at 1.25 times and project IRR is estimated to remain below 10 per cent, In addition to the unique features of for a project with a levelized bid tariff the project, the sizeable fall in PV module of Rs. 3.3/kwh. In addition, both DSCR price levels by about 25 per cent over the and project Internal Rate of Return (IRR) last eight-month period has benefited the remains highly sensitive to PLF levels and project developers in offering such highly DSCR also remains sensitive to interest competitive rates. Also, the recent decline rates. The project developers may have in benchmark interest rates by banks an incremental upside arising out of their augurs well for the developers in securing cost competitive rates for funding. March 2017 | Energy Next | 41

COLUMN India’s growth story to remain intact Energy focus with environmental concerns stems great news for renewal sector for its exponential rise in years to come, says Praveen SaxenaDespite a rough start to the year focused on 10 themes — the farming sector, with solar power in the medium term. It for markets and limited progress the rural population, the youth, the poor and was mentioned in the budget speech that on headline reforms, India will underprivileged health care, infrastructure, a beginning has already been made in remain one of the strongest the financial sector for stronger institutions, 300 stations. Works will be taken up forgrowth stories in the region, says Goldman speedy accountability, public services, 2,000 railway stations as part of 1000 MWSachs Research’s Timothy Moe, chief Asia prudent fiscal management and tax solar mission of Railways. As a nationalPacific regional equity strategist. He views administration for the honest. programme of Solar energy, it is now proposethe current cyclical recovery – coupled with to take up the second phase of Solar Parkimprovements in the ease of doing business The fiscal deficit for the coming year is development for additional 20,000 MWthat have largely flown “beneath the radar” – pegged to be 3.2 per cent of gross domestic capacity during 2017-18.as positive signs for India’s long-term growth product (GDP) instead of three per cent. Theand corporate earnings environment. infrastructure expenditure by the government In the post-Budget panel discussion has, according to Mr Jaitley, gone up by 25 per organised by CNBC-TV18-Mint, Union This year’s Economic Survey comes in the cent. Overall, in terms of actual economic Minister of State for Power, coal, new andwake of a set of tumultuous international policy, the Budget was typically competent – renewable energy and mines, remindeddevelopments – Brexit, political changes but few could claim it moved as far forward as the august gathering with pride thatin advanced economies-and two radical the government needed to with this Budget. the government had been successful indomestic policy actions: the GST and realising the dream of ‘power-surplus’demonetisation. The Survey has tried to do This year’s Economic Survey extensively India.”Today, India is a surplus powerjustice to all these short term developments. covers India’s green action. It takes reference nation, unlike in the past. India is open of Government’s initiative to amend the for business. India is the largest market The Survey has concluded that there National Tariff Policy for electricity in and now it’s the industry, investors andhave been short-term costs but there are January 2016. It mentions that Tariff Policy entrepreneurs, who have to take the call”also potential long term benefits which are amendment has a focus on the environmentaldiscussed in detail. Appropriate action can aspect with provisions such as 1) Renewable Most of the fiscal and revenue targets sethelp minimize the former while maximizing Purchase Obligation in which 8 per cent of in the Budget are achievable and it reaffirmsthe latter. For the first time, the Economic electricity consumption excluding hydro the government intent of gradual fiscalSurvey has embraced Big Data. It had this power shall come from solar energy by March consolidation apart from signalling continueddata to shed new light on the flow of goods 2022; 2) Renewable Generation Obligation in commitment to broad-base the reform agendaand people within India. which new coal/lignite based thermal plants with a greater focus. The Ministry of New after specified date to also establish/procure/ and Renewable Energy has been allocated a The Survey produces the first estimate of purchase renewable capacity; 3) bundling budget of Rs. 5473 crore during 2017-18. Thethe flow of goods across states within India, of renewable power with power from plants Government has taken various initiatives likebased on analyzing transactions level data whose Power Purchase Agreements have amendments to the Electricity Act and Tariffprovided by the Goods and Services Tax expired or completed their useful life; 4) no Policy for strong enforcement of RenewableNetwork (GSTN). The Survey furnishes inter-state transmission charges for solar and Purchase Obligation and for providingexciting new evidence on the flows of wind power; 5) procurement of 100 per cent Renewable Generation Obligation. This ismigrants within India, based on detailed power produced from waste-to energy plants; bound to give a clear boost to the entire REorigin-destination passenger data provided 6) ancillary services to support grid operation sector in the year 2017-18.by the Ministry of Railways and on a new for expansion of renewable energy, etc.methodology for analyzing the Census data. The author is Former Advisor, MNRE and CEO The Indian Railways in the year 2016- (design) Skill Council for Green Jobs The Union Budget for 2017-18, presented 17 proposes to feed about 7,000 stations (Views expressed by the author are personal)by Finance Minister Arun Jaitley, was broadly42 | Energy Next | March 2017

OUTLOOKSun is set to shine brighterfor the country in 2017This year India is set to race ahead as a global superpower in the solar energy space,predicts Krishnan Rajagopalan, Head of Solar Business, Anchor by Panasonic.India is now, well and truly, ushering Europe, China and Japan. If all goes well, India the field of energy storage. India wastes close into an economic pathway of could well add double amount of growth in to 15-20 per cent of its renewable energy due prosperity like never before. This foray the solar sector in 2017 and 2018 as suggested to lack of storage technology, an increased will have to be built on the back of by Bloomberg New Energy Finance (BNEF) investment and focus in the sector has helpednoteworthy transformations across sectors in a report and also seen with the phase with the nation curb this gaping hole which haslike infrastructure, energy availability and which capacity addition is envisaged and further augmented its clean energy usage.sustainability. The nation is still widely projected by Ministry of New & Renewabledependent on coal for its energy needs. Energy (MNRE) as well. Increasing penetration and per capitaAlmost approximately 60 per cent of its consumption of energy has resulted in theenergy supplies are sufficed by coal. These Last year in October, the World Economic growth power which has further resulted innumbers however make sense as India is a Forum came out with an imperative the growth of renewable energy. Generationcoal rich country and accounts for a mere announcement in which it sought to declare capacity in India has increased considerably,0.3 per cent of the global oil and 0.8 per cent that the global renewable electricity capacity among the installed capacity of differentof the global gas reserves. We are, however, has overtaken coal to become the world’s sources of power in India during the courseblessed with abundant supplies of natural largest installed power source for the first of FY 07 – FY 17, renewable energy was therenewable resources like wind, biomass and time. Heralded as the turning point in fastest amongst all sources of power standingsolar energy. renewable generation, the story may well at an installed capacity of 21.3 per cent. become the definitive pole of strength which This year could well turn out the definitive will further inspire world leaders around Traditionally, renewable energy has struggledyear when the country emerges from the world to take a more serious look at the to gain financial traction in India, but now solarthe shackles and rises ahead as a global power of renewable energy. is becoming an increasingly viable option. Tosuperpower in the solar energy space. A string date solar energy has been critical to the centralof reasons have contributed to this analogy. India, on the other hand, has been making governments renewable energy plans, capacitySolar tariffs are expected to fall below Rs 4.0/ headlines of its own. Last year it unvieled has increased more than 200 per cent sincekWh mark, in turn, making solar the cheapest the world’s largest solar power plant in Narendra Modi took charge of the office. Powernew source of power. The fall in module prices Kamuthi Tamil Nadu. A testament of India’s and Energy Minister Piyush Goel has suggestedhave proven to be a gift for manufacturers in seriousness towards the concept of clean that solar sector will continue to receive taxthe country, who were constantly vying off energy, the facility boasts a capacity of 648 breaks in the upcoming budget so as to assist thethe challenge which was posed in front of MW and covers an area of 10 sq km. In a governments in its ambitious desire of achievingthem by Chinese companies. They can now report by research firm, Bridge to India it was 100 GW worth of solar capacity by 2022.go onto focus on manufacturing locally again released that India’s solar market is expectedand cap on the opportunity presented to them to grow by 90 per cent in 2017. The growth is The author is Head- Solar Business,by the investment fall in the solar markets in bolstered by a number of factors, including Anchor by Panasonic the pivotal technological advancements in (Views expressed are his personal) March 2017 | Energy Next | 43

REPORTRenewable Integration:Need for curtailmentrisk assessmentWith India at the threshold of adding big renewable energy capacity tomeet its ambitious 175 GW target by 2022, there is a need to integrate andcurtail risk assessent, say GTurpreet Chugh and Ashish Singla in a reporthe proportion of Renewable capacity in the generation portfolio continues to expand as India adds RE capacity developers and lenders) thus need to understand a few key aspects: Is the system ready to absorb all of RE generation (as must run)? What levels of curtailments to meet its 2022 commitment (of 175 may be expected if adequate steps are GW). As seen in case of Tamil Nadu, not taken in time? Which states are more rapid expansion of wind capacity led vulnerable to curtailment of renewables? to significant curtailments. With rapid Which indicators can developers look at to expansion of RE capacity this situation assess curtailment risk? In this whitepaper may get worse and spread to other states the ICF team (Ashish Singla and Gurpreet as well unless steps are taken to control Chugh) provide an overview of curtailmentGurpreet Chugh the same. The stakeholders (planners, risk in Indian power sector and how best44 | Energy Next | March 2017

RE LINKAGEcan those risks be forecasted using load The recent ratification of the Parisflow models. Accord by India highlights the country’s resolve towards renewables Renewable Energy deployment has deployment in a time bound mannerwitnessed an explosive growth globallyincluding in India during the last few years. to curtailment can be: India is targeting to reach 175 GW (withThis growth is particularly outstanding • Transmission unavailability a yoy increase of 26%). By FY22 it isbecause it has been achieved despite the • System operating requirements leading expected that, RE generation would befalling global fuel prices (Coal, Gas and to requirement of back down more than 25% of load during peak REOil) that offered a stiff competition to • Congestion management processes seasons in all the states. In FY14 onlyrenewable energy which has generally • Power plant performance constraints one state (Tamil Nadu) and FY16 onlybeen expensive compared to conventional • Load amount and profile two states (Tamil Nadu and Rajasthan)energy. The recent ratification of the had similar ratios. As the ratio of REParis Accord by India further highlights ll ECONOMIC CURTAILMENTS generation to load increases, the risk ofthe country’s resolve towards renewables Curtailments may also be driven by curtailment also increases substantially.deployment in a time bound manner. economic incentives or disincentives such Therefore assessing risk profile of the state as availability of cheaper power from other along with detailed load flow analysis to Driven by the National Solar Mission ~ sources. Utilities sometimes may not be quantify level of curtailments for an RE9 GW of solar power generation capacity keen to buy RE power due to high tariffs plant can help states prepare better to dealhas been connected to the grid. At the of RE. Such curtailments are termed as with such a situation.same time, wind power capacity in the economic or voluntary curtailments. So far,country nearly doubled to reach 28.3 none of the utilities has reported economic ll RISK PROFILE OF STATES:GW. This large infusion of intermittent curtailment. However, it is difficult for INSTITUTIONAL AND NETWORKrenewable generation has brought forth generators to clearly distinguish between ASSESSMENTsome challenges in managing the grid technical and economic curtailment. • Institutional assessment: Different statesand integrating the intermittent power have different risk profiles when it comeswith it. Whilst system operators are The impact on the generator however to RE curtailment. Some states like Gujaratdeveloping mechanisms to tackle this remains the same whether the curtailment have a defined step-by-step process ofissue, curtailment of renewable power is due to economic or technical reasons. managing variability of RE sources, whilemay continue (as an unavoidable option others have not formally adopted any suchto manage the grid) until technological Why is it important to conduct detailed process. Apart from this, states have differentsolutions are devised and best integration RE curtailment risk profiling of states? load and generation profile/mix. States withpractices are brought into practice. Wind Until now, share of RE generation as larger share of storage based hydro and lowerand solar curtailments in some states in percentage of load has been low in most share of RE (as percentage of total demand)recent past has led to increased uncertainty of the states. By FY22, RE capacity inand risk among investors and lenders. Thispaper analyses the issue of curtailment and RE as a % of load for different stateshow to assess this risk. (2014, 2016 and 2022)ll RE CURTAILMENT“When the dispatch order from thetransmission system operator to the REplant is to reduce or stop generation, eventhough the RE resource is available”• TYPES OF CURTAILMENTIn India, RE curtailment could be causedby one of the following two factors:• TECHNICAL CURTAILMENTSWhen a transmission system is incapableof accommodating the full dispatch of REfacilities due to technical transmissionissues (involuntary curtailment). Manya times grid availability becomes aconstraint in the dispatch of RE power.Some of the key technical reasons leading March 2017 | Energy Next | 45

REPORTInstitutional Assessment Score Balancing Generation Score ll TAMIL NADU: HIGH WINDRE generation as percentage of demand Gas CapacityDISCOMs’ financial health CURTAILMENTS REPORTED INRegulatory preparedness Hydro Storage capacityTransmission Connectivity Pump Storage Capacity THE PASTOperational Characteristics Cycling of coal capacity From a capacity of 3.3 GW in FY07 Tamil Nadu more than doubled its RE capacityhave lower risk of curtailment. The graph Although state has 36% of RE capacity by FY12 (adding primarily wind). Bybelow provides a summary of risk of RE (nameplate) as percentage of peak demand, FY12, RE capacity as percentage of peakcurtailments in some key states: no curtailments have been observed in the demand increased to more than 60% and state. State of Gujarat has been effective instances of RE curtailment increased• GUJARAT: A LOW RISK STATE in putting regulatory, infrastructural, substantially esp. in high wind seasonsGujarat is one of the states which has been operational and institutional enablers in as majority of RE capacity is wind. Stateable to integrate wind and solar effectively. place to integrate RE capacity. looked at various options to alleviate the situation and took two pronged approach in FY16 (i) Upgrade intra- state transmission network for effective evacuation of RE power from generation centers to demand centers, and (ii) Conduct a pilot on wind forecasting and scheduling (in association with IWPA). Subsequently, during high wind seasons in FY17 significantly lower levels of curtailment were reported. It’s evident that these steps helped wind power evacuation however the situation is still very precarious. As per Solar Power Developers Association (SPDA) Assistant Sectary General now solar energy is being curtailed for the first time (sometimes in the range of 50-100% during peak generation periods). Curtailment of generation directly impacts the project IRR and disincentives any new investment in the sector. The situation may worsen in coming years as more and more capacity is added into TN grid unless constructive measures are taken by state to limit curtailment levels. • NETWORK ASSESSMENT It is equally important to conduct detailed load flow analysis of the state network to assess RE curtailment risk. Positive Sequence Load Flow models are used to assess transmission flows in the system for both normal (N-0) and selected (N-1) contingency conditions when possibility of RE curtailment is the highest (like when ratio of RE generation to load is highest, or during periods of high RE generation). The model can quantitatively assess amount of RE curtailments that can happen with changing load and generation pattern. Figure below shows schematic of changing power flow with installation of46 | Energy Next | March 2017

RE LINKAGEa wind plant (as an illustration case for Eg. of rebate factors in case of Massachusetts CleanRajasthan, 2016). Line loading and voltage Energy Center (extracted from the program manual)violation information can be used to assesspossible level of curtailments. Sector OG 100 Standard Rebate Factor OG 300 Rebate (Collector) Factor (System)• How to assess curtailment risk: ICF Residential/methodology and requirement for Load- Commercial SRCC OG-100 rating x number of USD 0.52/kWhflow analysis Non-profit/ collectors x USD100 USD 0.88/kWhWhile assessing network curtailment risk, public entityICF recommends a two-pronged approach; SRCC OG-100 rating x number ofsite specific analysis and state wide load collectors x USD100flow analysis:• Site analysis is required to address Enablers Descriptionpower evacuation capability of sub- Regulatory • GERC audits SLDC’s operations and any decision to backstation at which developer plans to down generation is closely monitoredconnect its RE plant. The analysis is Operational • Although there is no penalty as such, but any deviation fromrequired to assess how much capacity standard operating procedure or grid code requires detailedcan be further connected (at current explanation to the regulatorstructure configuration) at sub-station. • ABTs have been mandated on wind farms since 2010The analysis to include (i) number of • State RE desk has been operational since 2013. Housed intransformers, their average loading and SLDC and responsible for monitoring RE generation/dispatchvoltage levels, (ii) Proposed expansion (if • Forecasting and scheduling being done on regular basis asany), (iii) Bay Space availability (Number long-term pilotof connecting lines and total capacity of o Provide day ahead forecast to SLDC for inclusion of REbay), (iv) Connected generation capacity generation in scheduling (pooling done substation-wise)and generation capacity expected to get o Relatively accurate forecast is available and thus SLDC is ableconnected in future, (v) Transmission to manage variability properlyline connecting in/out of sub-station • Typically, State SLDC takes one or more steps while managing(including their Capacity, line loading grid during high wind months to accommodate RE as must run:and future expansion or upgrade plan and o Manage dispatch of Hydro --> Gas --> Coal plants (in order):connecting sub-station on the other side), • State owned or IPPs contracted by state: by reducing their(vi) Availability of stand-by transformers, dispatch to technical minimumand (vii) Overview of how transmission • CGS: Managing flexibility in contract for the share allotted tocontingency has been handled in the past, Gujaratand availability of extra circuit or route to o Sell excess (or buy deficit) power at (i) power exchange , (ii)evacuate power bilateral contracts, (iii) UI• State analysis is required to providebroad overview of state’s ability to absorb Institutional • Well-defined hierarchy for flow of orders:RE generation. This requires analysis of SLDC --> sub-SLDCs --> substations --> generators(i) State’s load profile and RE generation • Supreme authority for backing down generation rests with theprofile, (ii) State’s generation mix, (iii) SLDC; no sub-SLDC or substation can take that decision withoutTechnical minimum of power plants SLDC’s approvaldispatching in the state, (iv) Share offlexible generation like gas, and storage Infrastructural • State is ramping up its transmission infrastructure andhydro in the overall generation mix, (v) upgrading existing lines to accommodate more wind andRegulatory, Operational, Infrastructural, prevent any curtailmentsand Institutional enablers in state, (vi) • Participation in ‘Green Corridor’ development for successfulState’s behavior in sale/purchase of evacuation of power outside statepower during excess/deficit at exchange,in bilateral market and in UI, and (vii) However, stakeholders then need to and experience to help stakeholders inDetailed load flow analysis of state. work together to minimize the risk of managing these risks.ICF recommends a detailed assessment of curtailment which requires developingcurtailment risk by all e stake holders – strategies and action for reducing the About the authorsinvestors, lenders, utilities and regulators. curtailment risk and building the capacity Gurpreet Chugh is Consulting Director, of the system operators to implement the Energy at ICF. action plan. ICF has the requisite expertise Ashish Singla is Senior Consulting, Power and Fuel at ICF. March 2017 | Energy Next | 47

SOLARScheme to rate and certifysolar water heating systemsIntroduce a performance-based rating and system certification scheme forsolar thermal collectors and systems following international standards inIndia, suggest Joerg Gaebler and Abhinav GoyalQJoerg Gaebler Abhinav Goyal can these targets be achieved and at the same Currently, India represents the time how can solar thermal market sustain fourth largest solar thermal order to meet the Jawaharlal Nehru National beyond 2022? market globally, by collector area Solar Mission (JNNSM) target of 20 million installed annually (2014 figures sq. m. by 2022, we will have to double the Since the launch of the National Actionas per IEA Solar Heat Worldwide)[1]. In annual collector area installation to roughly Plan on Climate Change (NAPCC) in 2008, two million sq. m in the next five years. How Government of India (GOI) has made significant stride towards renewable energy technologies. Elucidating the nation’s vision for solar energy, the GOI launched the JNNSM in 2010 to significantly increase the share of solar energy in India’s energy mix. The mission strategy targets solarising domestic and industrial heat applications below 80°C temperature. The estimated gross potential for solar water heating systems is about 140 million sq. m. collector area – against which less than 10 per cent has been installed.48 | Energy Next | March 2017

STANDARDISATION Ideally, the market growth should happen saved. For making an investment decision, BIS. Subsequently, the factory is inspected andon its own, given that solar water heating is consumers are looking for the quantified performance evaluated as per the test standardsan established technology. Solar thermal has information on energy substituted from solar from in-house testing facility and independenta strong business case for India, accepting water heating systems. BIS approved labs. A third-party surveillance ofthe fact that even with the removal of central the samples is done which are randomly chosengovernment capital subsidies in October There are two important aspects from the market and the factory. The scheme2014, the installation rate has remained fairly considered for ensuring quality – collector/ is currently voluntary. For evacuated tubeconstant. Several (92) municipalities in India system certification based on well-recognised collectors, the test standards were introducedalready have policies mandating the use of and adopted national/international standards last year for tubes, storage tank and for asolar water heating systems. With renewable and accreditation of test labs and inspectors. thermo siphon system mainly for smaller sizeenergy under priority sector lending, Generally, in the Indian consumer context, installation in residential homes.financing is available from commercial banks it is sufficient to have a mark of qualityfor solar water heating systems. certifying that the product conforms to Over the last years, we are witnessing a at least minimum performance and that shift in utilising collector technology from Despite promising factor of low pay has been manufactured as per approved FPC to Evacuated Tube Collectors (ETC).back period, the rate of installation is not laid-out standards. The Bureau of Indian Almost 80 per cent of installations are doneat the desired scale. Among the various Standards (BIS), empowered through an Act using ETC, which are competitive mainlyfactors, consumer trust in the technology of the Indian Parliament in 1986, operates due to relatively cheaper tube imports. As persolution is crucial. The trust in-turn could a product certification scheme through reports, some 7 million tubes were importedbe developed through a transparent process, which, it grants licences to manufacturers. in 2015-16 which is equivalent to 1.3 millionwhich establishes not only the quality of the The license allows the use of ISI mark by the sq. m. collector area. This trend has twocollector but also of the entire system and licensees, which is a stamp of quality. key messages and two concerns. First, theallows comparison of performance between consumers are price sensitive and cost is thevarious products. The basic information The Indian Standards (IS) for Flat Plate deciding factor. Second, the use of standardsprovided to consumers in the countries Collectors (FPC) have existed for a decade. needs to be mandated or at least incentivisedwhere the solar water heating sector is There are roughly 60 licensed manufactures for those to be utilised. The concerns,mature, is the kilo watt per hour of the of FPC. The licensed manufacturers self- however, are first that the well-establishedthermal energy generated by the system and declare the performance for each collector. FPC manufacturing is facing a tough timeconsequently the fossil fuel or electricity The procedure of getting a license involves and second there are apprehensions onsavings translated as equivalent cost manufacturing the product as per applicable quality, and hence the performance, of standards and submitting the test reports to Elucidating the nation’s vision for solar energy, GOI launched the JNNSM in 2010 to increase the share of solar energy in India’s energy mix March 2017 | Energy Next | 49

SOLARA standardised certification scheme country where products are to be marketedfor solar thermal collectors / systems and sold.”gives the Indian manufacturers theopportunity to access international The underlining principle in these schemesmarkets, especially in view of the is a system/collector level certificationInternational Solar Alliance on thermal performance based on actual solar resource availability, utilising energycheaper ETC based systems. The FPC collectors dominate these markets simulation software. The consumers are Experience from the international markets lasting 20-30 years with proper maintenance, informed on the expected energy yields and although the better economics of FPC relative can compare various systems. An incentiveparticularly Europe and the US presents to costlier ETC has also played a crucial role is given upfront as a multiple factor ofan interesting solution for addressing the in larger market share of former. evaluated performance. These incentivesaforementioned concerns – performance essentially substitute higher costs associated(modelled) based certification scheme In the US, in a ten-year period from 1999 with better quality of collectors and systems.mandated either by law or linked to to 2009 the Solar Rating and Certificationincentives. Certification schemes are in Corporation (SRCC) collector certification It is suggested to utilise the existingplace, as a mechanism which guarantees and quadrupled to 300 while system certification institution and certification process inassures that standards are applied in the right grew six times to 900. In Europe, on the other India while introducing certain measures toway. The results from many different test hand until 2015, there were some 1500 plus incorporate aspects from Solar Keymark andlabs accredited to a certain standard – are Solar Keymark collector certificates issued SRCC certification schemes. The measuresinterchangeable between Germany and USA. in the last decade. Both SRCC and Solar could include:The material and other specifications need to Keymark participate in the Global Solar • Aligning with the international standardsbe registered to check if the same quality of Certification Network (GSCN). ISO 9459 for solar water heating systemssystem is installed. — outdoor testing for system performance “The aim of GSCN is to facilitate cross- characterisation and annual performance Quality inspection and random checks border trading for manufacturers and prediction of solar thermal systems.form an integral part of certification in both other suppliers of solar thermal products. • Harmonising the existing test standardsregions. As a result, the certification scheme Its objective is to minimize the need for with International Standard Organisation.helped the market to grow over a long period. re-testing and re-certification in each new • Elaborating certification scheme/ programme and institutionalising the database and performance rating mechanism. Introducing an energy model for simulating50 | Energy Next | March 2017