EN-JAN-2017

Dan Shugar, India attains 4th position in global Andrew Hines,Founder and CEO, wind power installed capacity Business Development Head, South India, CleanMax SolarNEXTracker Pg 22Pg 34 Pg 37 ` 100 $ 5 € 3Volume 7 | Issue 03 | January 2017 | Hyderabad Your guide to Renewable EnergyRNI NO.: APENG/2010/38296 Date of Publication: 08/01/2017 Date of Posting: 10/01/2017MNREIndia emerges as a major driving force in global trends Fatih Birol, Executive Director, IEA speaks exclusively to EnergyNext Pg 16





IN THIS ISSUE 16 34 Cover In Focus Indian RE gears India’s solar market up to lead excites world IEA Executive Director Fatih With new solar Birol, who has been named capacity additions by Forbes magazine as one of estimated at the most powerful people in 5.6GW, India is the world’s energy sector, talks set to become exclusively to Energy Next on the world’s fourth global consciousness over climate largest solar change and varying trends in market after US, pollutant emission. China and Japan, writes, Dan Shugar 21 37 Column: Praveen Saxena In Focus | Solar Rooftop 2017 to see corporate sourcing of renewables Shining rooftops dot India Rapid rise in population and urbanisation has increased the demand of electricity in India. With With SECI announcing a 1000 MW many Indian firms joining RE100, the year looks tender across multiple ministries, the bright for renewables domestic manufacturers in the rooftop solar segment are bound to boom, 22 writes Andrew Hines. MNRE Achievements 40 A new dawn in Solar Future renewable energy ScoonlasruPmoewrer for every India attains 4th position in global wind power installed capacity; 46.33 GW grid- The solar market has undergone a interactive power; Small hydro power transition from being policy-driven capacity reaches 4323 MW and many more. to parity-driven, yet Solar is far away from being harnessed to its maximum 29 capacity, writes Sanjeev Aggarwal. World Achievements Adding capacities make renewable bright The year 2016 marked important renewable energy installations across the world. India unveiled the world’s largest solar power plant.4 | Energy Next | January 2017

42 VOLUME 7 | ISSUE 03 | January 2017 www.energynext.in Solar Heating System 45Solar heating systems-Industry use Expert SpeakAlthough the demand of pv systems is increasing, the demand of Suzlon rides the tailwindssolar heating systems for home and industries is stagnating, writeGerhard Stryi-Hipp and Abhinav Goyal Emerging from prolonged financial gloom, the wind turbine maker diversifies into solar energy to straddle the renewables spectrum, writes Sarosh Bana48 59 In Conversation MNRE NewsViable solution through GovernmentDRE mini-grids formulates Integrated EnergyThe Smart Power for Rural PolicyDevelopment’s mission is to develop1000 Decentralised Renewable Energy The Government has formulated(DRE) mini-grids impacting a million an Integrated Energy Policylives, says Jaideep Mukherji document that gives a roadmap to increased exploitation of64 renewable energy sources. IREDA Corner January 2017 | Energy Next | 5IREDA to handlefunds of USICEFInitiativeMinister for New andRenewable Energy PiyushGoyal and US AmbassadorRichard Verma jointly launchedthe US-India Clean EnergyFinance (USICEF) Initiative onDecember 16, 2016.

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FROM the editorIndia Shining an important wind power generating country. Apart from solar and wind, thereT he year 2016 has been MW. The wind sector also performed well has been a steady improvement in other remarkable in all respects with the added capacity of 3,332 MW. sectors as well. During 2016-17, 101 MW for renewable energy as it Both the sectors constitute over 90% of installations of biomass power plants witnessed big growth in capacity addition with biomass and small has been achieved taking cumulativedifferent sectors across the country. The hydropower contributing 382 MW and achievement to 4,932 MW and 0.286 lakhyear began with Prime Minister Narendra 148 MW respectively. biogas plants have been set up takingModi, and French President François cumulative achievement to 49.38 lakhHollande jointly laying the foundation Around 500 MW capacity has been biogas plants.stone of the International Solar Alliance installed and 3,000 MW has been(ISA) headquarters at Gurugram. Various sanctioned of the total target of 40 GW Over 18,91,12,138 LED bulbs havepolicy measures have been taken by the grid connected solar rooftops set for been distributed till now, during variousMinistry of New and Renewable Energy 2022. With the sanctioned amount of programmes under the Unnat Jyotifor achieving the target of renewable 1,300 million dollars from World Bank, by Affordable LEDs for All (UJALA)energy capacity since then. KFW, ADB and NDB, major financial programme which has reduced carbon institutions such as SBI, PNB, Canara emissions of around 1,98,93,135 t. From setting up exclusive solar parks to Bank and IREDA will be able to fund atdeveloping power transmission network the rate of less than 10 percent. On October 19, the Foundation Stonethrough Green Energy Corridor project, of ‘Atal Akshay Urja Bhawan’ an integratedthe nation has expanded its renewable In a major move to push the adoption headquarters building for the Ministry ofenergy bouquet like never before. In of rooftop solar market, India announced New and Renewable Energy was laid byorder to catalyse the development, the its largest solar rooftop tender. Solar Shri Piyush Goyal, Hon’ble Minister of Stategovernment has identified its departments Energy Corporation of India (SECI) (Independent Charge) for Power, Coal, Newand buildings for rooftop projects, made seeks to develop 1,000 MW of grid- and Renewable Energy and Mines.provision of rooftop solar, announced connected rooftop solar panels for Central10 percent renewable energy mandatory Government Ministries and Departments The year ended on a good note, withunder Mission Statement and Guidelines which seems to be a good start to 2017. the world’s largest solar plant installed infor development of smart cities, amended Kamuthi, Tamil Nadu. The plant that tookbuilding bye-laws for mandatory provision The Policy for Repowering of the Wind eight months to complete has a capacity ofof rooftop solar for new construction or Power Projects was released during the 648 MW and covers an area of 10 sq km.higher Floor Area Ratio, raised tax free year to promote optimum utilisation of The year 2016 was an eventful year for thesolar bonds and made rooftop solar as a wind energy resources. India managed renewable energy industry but the best ispart of housing loan by banks / NHB. to rise to a good 4th position after yet to come - hope to see more progress in China, USA and Germany to become the year ahead! Out of the added 8,024 MW capacity(gird-connected and off-grid) from KS Poplirenewable energy sources in 2016 (January Chairman & Managing Director, IREDAto November), solar constitutes 3,996 January 2017 | Energy Next | 7

letters to the editorYoung and Growing India I am a recent subscriber to Enabling Investment Environment your magazine. I found your previous edition on green energy Editor-in-Chief K S Popli innovations very informative. Publications Director Anupam Daftuar India has all resources that can make the country a leading Associate Editor Anurima Mondal producer of renewable technology. Sr. Correspondent Pari Saikia However, it is extremely important to channelize investment and Correspondent Surbhi Mehtani funding to make India a globally Design Flying Tusker Media competitive nation. ll Nimisha Rawat, Bhopal Marketing Manager Abhinav Dutta Marketing Manager Aditya DaftuarUNIDO’s Global Solar Irrigation Pumps energy corridor boosts India’s Subscription & Dispatch Anil PatwalCleantech Innovation renewable capacity.Programme Congratulations on producing ll Atul Puri, Bahadurgarh For the latest Renewable Energy news. a high quality magazine on log on to www.energynext.inI came to know about the renewable industry. I read Source of informationUNIDO’s Global Cleantech your article on solar irrigation Energy Next is printed by R Ramprasad and publishedInnovation Programme pumps in the previous issue. It is always a pleasure reading by R Ramprasad on behalf ofthrough your esteemed It was good to know that the your articles based on factsmagazine. It was interesting government will distribute & technical knowledge. Focal Point Media Services Pvt Ltdto know that GCIP not only solar powered irrigation Your magazine is a source of #407, Fifth Floor,selects start-ups to participate pumps to 51000 farmers at a information about the sector,in competitive national subsidised rate in Chhattisgarh. also to know about the training Pavani Plaza, Khairatabad,programmes but also connects Two solar pumps have also programmes taking place Hyderabad - 500 004, Telangana, India.them with potential investors, been sanctioned for Amangarh in the technical institutes. I CIN No.: U74999AP2010PTC070645customers and partners. A very Tiger Reserve in Bijnor and I request you to keep updating Focal Point Media Services Pvt. Ltd. is a jointinteresting read indeed; keep am excited about it! your readers with the same. venture of Gateway Media Pvt. Ltd, and Invisionup the good work! ll Anchal Srivastava, Bijnor ll Uttam Saxena, Business Communications & Research Pvt. Ltd, and printed atll Rahul Saxena, Delhi development LED Lighting, Green Energy Corridor Lucknow M/s. Kala Jyothi Process Pvt. Ltd. 1-1-60/5, RTC Cross Roads, Musheerabad, I read your interview with Hyderabad - 500 020, and Published at Focal Point Gireesh B Pradhan and came to know about various interesting Media Services Pvt. Ltd. things about the Green Energy #407, Fifth Floor Pavani Plaza Khairatabad, Corridor. Hope that the green Hyderabad - 500 004, Telangana, India.Feedback: Please send your feedback and comments to Tel: +91 40 233 000 61, 233 006 26 [email protected] +91 40 233 006 65advisory board Editor-in-Chief: K S Popli Subscribe: Tel: +91 11 2642 4071/72 e-mail : [email protected] Write to: Focal Point Media Services Pvt. Ltd. #409, Mansarovar Building, 90 Nehru Place, New Delhi-110 019, INDIA Tel: +91 11-26424071/73 Fax : + 91 11-46507580Prof 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 | January 2017



NATIONALSECI issues 1000 MW Rooftop Solar PV tender Solar power lights up 19 villages in form of Incentives. The power generated from Rajasthan the systems shall be used for meeting theSolar Energy Corporation of India (SECI) captive requirement of the buildings and the has issued a tender for development of surplus power, if any, shall be fed to the grid1,000 MW rooftop solar capacity on pre- under the net-metering arrangement of theidentified Central Government Ministries/ respective State.Departments. It is reportedly the largesttender in India’s fledgling rooftop solar Being one of the largest tender floatedmarket. globally, it will give a big boost to the rooftop solar power generation segment. According In this scheme the Grid connected to the official statement, “The highlight ofrooftop solar systems shall be installed with this tender is its innovative ‘Achievement-the financial assistance for MNRE in the Linked Incentives scheme’ wherein the incentives in terms of capital subsidy shall be provided on the basis of performance achieved by designated ministries and departments against their committed targets in the given timespan.”Cabinet approves ratification of ISAChaired by Prime Minister Narendra Modi, the Union Cabinet has given of the 21st CoP meeting of the United Nations Smiles spread across many facesits ex-post facto approval to the proposal Framework Convention on Climate Change. when around 19 villages in The ISA will strive to bring together more Rajasthan were electrified under theof Ministry of New & Renewable Energy than 121 solar resource rich nations for Deen Dayal Upadhyaya Gram Jyoti(MNRE) for ratification of ISA’s Framework coordinated research, low cost financing and Yojna. These villages located at theAgreement by India. rapid deployment. ISA will put India globally western front alongside the sensitiveISA was launched jointly by the Prime in a leadership role in climate and renewable Pakistan border were deprived ofMinister of India and the President of France on energy issues. It will also give a platform to electricity even after seventy years of30th November, 2015 at Paris on the side-lines showcase its solar programmes. the country’s independence.REC bags two PSU awards Piyush Goyal, the minister of stateRural Electrification Corporation (independent charge) for power, coal (REC) won two awards in the areas Villas Paswan, Hon’ble Union Minister and new and renewable energy, took to for Consumer Affairs, Food and Public Twitter, to express his happiness. “Solarof ‘Asset Utilization’ and ‘Consistent Distribution to Executive Director (HR) power lights up 19 villages in RajasthanGrowth Adaptation’ at the 4th Kalpana Kaul and General Manager for the first time after IndependenceGovernance Now PSU Awards 2016. (Finance) Ajoy Choudhary from REC. under Deendayal Upadhyaya GramThe award was presented by Ram The award function witnessed the Jyoti Yojana,” he wrote. presence of Babul Supriyo, Minister, Heavy Industries & Public Enterprises, While the country is progressing Jeetendra Kapoor and esteemed at a fast pace, the villages falling dignitaries from several Public Sector under Desert National Park region Organisations. remained in darkness for years. Many REC is a Navratna Enterprise fancy schemes were announced for of the Government of India under Rajasthan but electricity was always administrative control of the Ministry of a dream for the villages in Barmer Power, committed to providing financial district that finally came true with assistance in the field of Generation, Deen Dayal Upadhyaya Gram Jyoti Transmission & Distribution in the Yojna. India’s transition towards Power Sector. renewable energy has definitely brought light to many lives.10 | Energy Next | January 2017

NEWS251,000 Renewable Energy Certificates traded in December: IEXA ccording to power exchange IEX, total of 2.51 lakh renewable distribution companies, to meet their green energy obligations.Two power exchangesenergy certificates (RECs) were traded in -- Indian Energy Exchange (IEX) and PowerDecember. Exchange India Limited (PXIL), approved“A total of 2.51 lakh RECs were traded by the Central Electricity Regulatoryin the REC trading session held on 28th Commission -- hold auction of RECs on theDecember, 2016 at IEX,” it said in a last Wednesday of every month.statement. Power distribution companies as “Since the beginning of this fiscalwell as open access and captive consumers (April-December), IEX has traded 17.85are under obligation to buy RECs from lakh RECs,” the statement said.”On 28threnewable energy producers under RPO December, 2016 a total of 2.51 lakh RECsmandated by central/state regulatory were traded an increase of over 43 percommissions. cent over 17.50 lakh RECs traded in theRECs are aimed at providing an easier previous month of the same fiscal,” theavenue for various entities, including power statement added.‘I​​ndia to be among the largest RE installations by 2022’ First village in buffer zoneMinister of State for Power, Coal, New with Solar Mini Grid and Renewable Energy and Mines renewable energy.Piyush Goyal said that India will be one of “This government is committed and has The buffer zone of Pench Tiger Reservethe largest installations of renewable energy (PTR) in Maharashtra has solar mini-in world by 2022. created an actionable agenda so that by grid connected to over 156 households in 2022 India would probably be one of the village Ghatpendhri. It is the first village in Goyal also said Prime Minister Narendra world’s fasted growing renewable energy in the country to get a renewable energy projectModi is committed towards ramping up the country, one of the largest installations known as Kiran Prabha Solar Mini Grid of renewable energy in the world if not the generating 2.4kV power. largest. India will have about 2, 25,000 MW of renewable energy by 2022, which is the world’s The project was initiated by Satpuda largest installation.” Foundation, a wildlife conservation NGO Under its plan, Goyal said, the government in Central India with financial assistance is also committed to set up solar plant of one from Conservation Action Trust (CAT) and lakh megawatt to meet its security needs. technical help from Bangalore-based SELCO “So far in the two and half years, we have Solar Light Private Limited. expanded the solar install capacity by 200 percent, i.e 9,000 MW and by end of December The first phase was commissioned in 2017 I expect it to be 20,000 MW,” he added. September by chief wildlife warden Shree Bhagwan.Telangana, Assam join Uday scheme Telangana and Rs 1,663 crore to Assam will come from joining the scheme,” saidT elangana and Assam has joined the Power Minister Piyush Goyal. central government’s Ujwal DiscomAssurance Yojna (UDAY). While these “With these two states coming on board,states have already signed MoUs, Tamil states with over 90 per cent of total discomNadu is expected to come on board next debts to be covered under UDAY afterweek. According to an official statement, Tamil Nadu comes on board,” he added.over 90 per cent of the debt of stateelectricity distribution companies will According to the statement, the Telanganabe covered by the debt restructuring government will take over Rs 8,923 crorescheme for discoms. of the total Rs 11,897 crore of discom debt. Currently, 20 states are covered under the “An overall net benefit of UDAY scheme.approximately Rs 6,116 crore to January 2017 | Energy Next | 11

StateHaryana makes Energy Conservation Building Code mandatoryThe implementation of Energy Conservation Building Code (ECBC) by Haryana government. workshops on ECBC. The departmenthas been made mandatory in stakeholder These organizations are Architecture has taken many others regulatory anddepartments and different organisations promotional initiatives for energy Department, Public Works (Building and conservation. Roads), Town and Country Department, Haryana Urban Development Authority, These regulatory steps include Housing Board, Police Housing mandatory energy audit of the state Corporation, Urban Local Bodies government and other sector consumers, Department and Municipal Corporations. implementation of ECBC, LED lights installation and installation of solar An ECBC cell has also been created rooftop power plants. with support from Bureau of Energy Efficiency to assist stakeholders for the The Department of Renewable Energy implementation of ECBC. has been made the designated agency to coordinate, regulate and enforce the Director of New and Renewable Energy provision of the Energy Conservation Department Ashima Brar said that the Act, 2001 in the state. department has already conducted twoKerala Solar-powered boat to begin from Jan 12 Odisha governmentAsolar powered boat will start its first pollution, the service will be offered as part buildings to adorn service from Vaikom in Kottayam of the state government’s initiative to shift solar rooftopsdistrict of Kerala. from diesel and petrol to other sources ofState Transport Minister A K energy, Saseendran added.Saseendran said, “The solar powered boat “The main problem is the huge gapwould conduct its first service with 75 between the revenue and expenditure of thepassengers on January 12 from Vaikom to Corporation. The system of taking loans anda place near Kochi. resolving the issue temporarily has plungedIn order to curb growing environment the Corporation into crisis,” he said.Solar power helps TN during cyclone Vardah Odisha has planned to up solarThe Cyclone Vardah has wreaked havoc panels on rooftops of all the in Tamil Nadu puting normal life in of facilities in his Nungambakkam house government buildings in 15 key towns. such as lights, fans and internet connectivity.distress. The hurricane-strength storm left With the solar power pumped water and solar “Odisha is betting big on non-Chennai powerless for more than 48 hours. water heater, he could also take bath in hot conventional sources of energy. The stateHowever, despite darkness, there were still water during this chaos. Raghunathan said government has approved a proposal forsome homes where the lights did glow. that an on-grid (with battery backup) system taking up rooftop installations on theThanks to the solar power that supplied has helped his house to stay connected in the government buildings in 15 key towns,”uninterrupted power to the residents of midst of a blacked out city. said an official.Chennai and its outskirts. Another resident of Kilpauk, Suresh couldThe Managing Director of Solkar Solar also avail electricity even in rainy conditions The towns identified are Rourkela,K.E.Raghunathan was able to avail all kinds as his house was powered by solar energy. Burla, Sambalpur, Hirakud, Balasore , Bhadrak, Baripada, Berhampur, Chakradharpur, Koraput, Sunabeda, Nabarangpur, Khurda and Puri. The Green Energy Development Company Ltd (Gedcol), the nodal agency for implementation of renewable energy projects, will implement 10 megawatts (Mw) rooftop projects at a cost of around Rs 80 crore by 2017-18, added the official.12 | Energy Next | January 2017

NEWSp​H​ oawryearnparosijgenctssMoU to set up 100 MW solar SPGooulljaiacrry-aW2t 0sino17odnfHorybridChinese firm Prestige Ocean Holding and Investments Limited signed a the Managing Director of Prestige Ocean The advantage of solar andMemorandum of Understanding (MOU) Holding and Investments Limited. wind power projects is Talking about the projects, Danny tremendous if integrated. Afterwith Haryana Government to set up 100 Cheng confirmed that 100 MW power seeing the advantage, Gujarat stateMW solar power projects in the State with plant would be set up in the first phase. government has decided to announcean investment of `500 crore. The agreement He also confirmed that the project would new Solar-Wind Hybrid Policywas signed by Ankur Gupta, Haryana generate employment opportunities and 2017. The government intends toPrincipal Secretary, New and Renewable get completed within 15 months after the invite suggestions from interestedEnergy Department, on behalf of the allotment of land for the same. companies and other stakeholders forHaryana Government and Danny Cheng, In the second phase, the firm will start the proposed policy within a month. the manufacturing of solar panel, solar fan and other solar equipments. Earlier this “The decision of the new policy year, Haryana Government had announced for solar and wind hybrid projects its Solar Power Policy-2016 for creating has been taken by chief minister favourable, investor-friendly environment Vijay Rupani as the concept of for people to invest in the state’s solar such hybrid power plants has been energy sector. gaining momentum off late across the country,” said an official statement​S​ olar panels for 25 schools in Kozhikode from the government.The district Panchayat of Kozhikode under its jurisdiction is going to havealmost 25 government higher secondaryschools installed with solar power panels tomake them self-reliant in energy. A greennod has been already awarded by the districtPanchayat and installation will take placeafter a feasibility study.The Kerala StateElectricity Board (KSEB) will undertake the The solar energy produced during summersolar power scheme project at schools with season, when the schools remain closed, can alsothe financial aid of the district panchayat. be sold to the KSEB, he added.“Apart from converting the schools as energy- Even though 60 institutions were selectedefficient institutions, the plan is to sell excess under this project, but the installation of theenergy to the KSEB,” said district panchayat solar panels to begin with government higherpresident Babu Parassery. secondary schools in its first phase.​‘Telangana aims to top in solar power generation’The state power minister, G Jagadish Reddy in reply to a query in the LegislativeAssembly said that Telangana currently standsat second rank in solar power production inthe country and it may reach the top spot inanother six months Telangana is producing 1,000 MW solarpower at present and tenders have been floatedfor another 2,000 MW solar power generation,he said. Plans have been prepared to give solarpower to farming community, he added. January 2017 | Energy Next | 13

INTERNATIONAL pSolaonnt i5n0MMaWlayssoialar pvChina to reduce subsidies for RE projectsCome January 1and China will get rid billion yuan ($648 million), and for onshore Malaysia’s largest power utility of subsidies and prices of the solar wind power by 1.5 billion yuan ($216 million) company Tenaga Nasional hasand wind. China has taken a call to cut the after the price adjustment. stepped on to produce a 50 megawattsubsidised prices paid for electricity supplied large-scale solar photovoltaic plantto its national grid by newly built large- Adding further NDRC said that the cut in in the southwest of the capital Kualascale solar power plants and onshore wind subsidies and prices was due to the decreasing Lumpur as part of its 10-year planturbines starting January 1, the country’s cost of production in the renewable energy to focus on renewable energy. Thestate planner said in a statement. industry and will reduce the burden of state announcement by Tenaga Nasional investment in the sector.The NDRC said the came after receiving approval from The National Development and Reform subsidy reduction did not affect power prices Energy Commission to build the plantCommission (NDRC) said that China expects for offshore wind turbines or smaller-scale, in Mukim Tanjung Duabelas withinto cut its subsidy for new solar power by 4.5 community-based solar power projects. the district of Kuala Langat. They won the project in a competitive bidding.BRICS bank approves loan for solar project “The move is part of the mid-The New Development Bank has length of 17 years under an agreement term plan to increase the country’s approved a USD 75 million loan signed between New Development Bank renewable energy capacity to 2,080MWfor a solar project in China. Formerly (NDB), the Ministry of Finance and the by 2020 from about 300MW-350MWreferred to as the BRICS Development Shanghai municipal government. now,” MIDF Research analyst HafrizBank, the multilateral development bank Hesry said. He added that coal and gaswas founded by the BRICS countries “The solar power project is a good are still expected to account for theincluding India. example of forward-looking and green majority, over 80% of total generation investment,” Indian banker and President in the foreseeable future, because it is According to a statement by Asian of NDB K V Kamath said. still cheaper and a reliable source ofDevelopment Bank (ADB), the loan was electricity.given to Shanghai Lingang Distributed Shi Yaobin, China’s Vice FinanceSolar Power Project with a maturity Minister, said that, NDB can play its role A similar announcement followed in providing fund support for member up to build a plant by a consortium states under the global sluggish economic consisting of MMC Corporation- recovery to expand global demand. linked Malakoff Corporation and a DRB-Hicom unit called DRB-Hicom The project by Shanghai Lingang Environmental Services in the Hongbo New Energy Development is a northern state of Perak. solar photo-voltaic power plant with total capacity of 100 MW. The plant is slated to be operational on July 1 2018 for a NDB was created with the objective of 21-year term under the stated power financing infrastructure and sustainable purchase agreement. Both companies development projects in BRICS and other are linked to Syed Mokhtar Al- emerging economies. Bukhary, one of the Malaysia’s richest businessmen. The bank had earlier approved its first package of loans worth USD 811 million, including USD 350 million loan for road development in Madhya Pradesh and an offshore wind project in China.14 | Energy Next | January 2017

NEWSChina appeals EU to drop anti-dumping tariffs ​I​ndia imports 87% solarChina is appealing to the European cell imports from China Union to drop anti-dumping tariffs on charging higher import duties on ChineseChinese solar panels after the trade bloc’s solar technology. It said the tariffs should be In the first six months of the current fiscal,executive body recommended extending ‘terminated as soon as possible.’ India has imported solar and photovoltaicthem for two years. cells worth about USD 825.98 million from Import duties on Chinese solar panels were China, which accounts 87.05 per cent of the According to Ministry of Commerce, raised by the European Union in 2013 after total imports.Europe was hurting its own interests concluding Beijing improperly subsidisedand efforts to fight climate change by manufacturers. The duties are due to expire in Apparently, India’s total imports of these March. cells were worth USD 948.88 million.In the last fiscal year, India had imported USDFrance opens world’s first solar panel road 2,344.56 million worth of cells, out of which USD 1,960.26 million was from China. Out of the total imports at USD 603.34 million, about 73.49 per cent was from China. According to Piyush Goyal, Union minister for power, coal, new and renewable energy, India does not have enough manufacturing capacity for cells and modules to fulfil its demand. Hence, the development of solar power in the country relies on indigenous and imported solar components. However, the government has introduced various policies to provide benefits to indigenous manufacturers including concessional excise and custom duties. “The government is supporting domestic solar PV manufacturing by various means and incentives. However, there is no exclusive national policy to develop indigenous solar power manufacturing in the country,” Goyal said.The world’s first solar panel In 2014, a solar-powered cycle China targets 2020 road opens at a small village of path opened in Krommenie in the renewable energy outputTourouvre-au-Perche in France. Ecology Netherlands and, despite teething of 1.9 trillion KWhMinister Ségolène Royal has inaugurated problems, has generated 3,000 kWh ofthis 1km (0.6-mile) route covered with energy – enough to power an average China is targeting renewable power2,800 sq m of electricity-generating family home for a year. The cost of output of 1.9 trillion kilowatt hourpanels in the village of Tourouvre-au- building the cycle path, however, could (KWh) by 2020, accounting for 27 percentPerche. have paid for 520,000 kWh. of the country’s total power output, the National Development and Reform The constructed road has cost €5m Royal has said she would like to see Commission (NDRC) said in its latest five-(£4.2m) which will be used by about solar panels installed on one in every year plan for renewable energy on Friday.2,000 motorists a day during a two-year 1,000 km of French highway. Solar panelstest period to establish if it can generate laid on flat surfaces have been found to The country aims to have installedenough energy to power street lighting be less efficient than those installed on renewable power capacity of 680 gigawattsin the village of 3,400 residents. sloping areas such as roofs. (GW) by 2020, NDRC said. China has released a series of plans for its power industry, pledging to limit coal-fired power and further develop renewables supplies. January 2017 | Energy Next | 15

Cover Indian RE gears up to leadIEA Executive Director Fatih Birol, who has been named by Forbes magazineas one of the most powerful people in the world’s energy sector, talksexclusively to Energy Next on global consciousness over climate change andvarying trends in pollutant emission.16 | Energy Next | January 2017

InterviewQ The latest edition of the Low-carbon technologies, led by wind International Energy and solar power, meet the largest share Agency’s World Energy of the growth in global energy demand,Outlook reveals renewables and followed by natural gasnatural gas are the big winnersin the race to meet energy sector, from unregulated, poorly regulated In the report you have stateddemand growth by 2040. But, or inefficient combustion of coal, oil that the next frontier for theat the same time, the reports products and biomass. The good news is renewable story is to expandstates that ‘the path to 2°C is that the effort to tackle these pollutant their use in the industrial,tough.” Do you think there is emissions is also typically good news for building and transportationnot enough political will and the fight against climate change. sectors. Could you elaborate?what more needs to be done? Most analysis of renewable energy focusesOur detailed analysis in the new World In the Indian context, is there on the power sector, but that’s not the endEnergy Outlook shows that the pledges enough evidence to pronounce of the story. In reality, heat is the energymade by countries as part of the Paris renewable energy the expected service that consumers worldwide demandAgreement are a big step forward. winner for policymakers to push? more than any other – for industrialLow-carbon technologies, led by wind and A-India has a huge and growing need as well as residential uses. And today,solar power, meet the largest share of the for energy, for example, we project in renewable heat is already produced on agrowth in global energy demand, followed the Outlook that over the next 25 years, similar scale to renewable power. Most ofby natural gas. Coal – the champion of electricity demand more than triples from this is bioenergy used in industrial boilersthe last 25 years – falls to the back of the today’s level, as the economy and population and for residential heat, along with thepack, although it remains an important fuel grow and incomes rise. To meet this rapidly use of solar water heaters. In fact, thefor power generation in many countries, growing demand, the power sector in India energy delivered by solar water heatersincluding India. Overall, the effect of these will need to tap all available resources. worldwide in 2015 was nearly twice thatpledges is to produce a significant slowdown Renewable energy is set to play a leading role from solar PV. And like solar PV, the costsin the rate at which global emissions from – indeed. Based on the policies and trends of solar water heaters have come downthe energy sector are growing. that we see today, the addition of renewable considerably in recent years. power generation capacity over the period to But a slowdown in the growth of 2040 is likely to be more than that of coal, gas The other main energy service provided byemissions is not enough to avoid severe and oil combined. But renewables will still renewables today, albeit in smaller volumes,impacts from climate change. Even with be sharing the spotlight with fossil fuels and is mobility in the form of biofuels in roadthe Paris pledges, we are currently on nuclear power for some time to come. transport. Over the past ten years, 12% of thetrack for a rise of 2.7 degrees Celsius by increase in transport energy demand globallythe end of this century and that takesus into very dangerous territory for theclimate. What we need in order to have areasonable chance of limiting the rise inglobal temperatures to 2 degrees Celsiusis a peak in global emissions as soon aspossible, followed by a rapid decline.Not all countries have to see an earlypeak: the Paris Agreement specificallyrecognises that peaking will take longerfor developing countries. But a greatercollective effort would be needed for theworld as a whole to put these emissions ona declining path. Greenhouse gas emissions are not theonly ones that we need to worry about.In India, you know very well the healthrisks that come from other pollutants,such as the sulfur oxides, nitrogen oxidesand particulate matter that producespoor air quality. The vast majority ofthese pollutants originate in the energy January 2017 | Energy Next | 17

Coverwas met by biofuels. in all sectors of the economy, from This is not just a question of reaching Over the coming decades, the household appliances to vehicles, trucks, environmental goals. In our view, energy power plants and factories. India has efficiency is also a very effective way tocontribution of renewables is set to grow achieved a lot in recent years; at the IEA, reduce some energy security risks. Forin all sectors, but the most rapid progress we have been particularly impressed with example, in this year’s World Energyby far is in electricity; this is the sector EESL’s programme to promote use of LED Outlook, we show that the United States iswhere a lot of the attention is focused and lightbulbs, which has delivered real gains almost on track to eliminate net importswhere a lot of supportive policies are in and brought down costs dramatically. But of oil by 2040. This is a remarkableplace. There’s a lot more that could be done the potential for greater efficiency remains achievement for a country that has forin many countries to support low-carbon huge, especially in a country that is a long time been the largest importer ofprovision of heat and transport – that’s why building up its infrastructure and building oil in the world. You might imagine thatwe are talking about these areas as the next stock so rapidly. There’s a tremendous this is a story about oil supply, based onglobal frontier for renewable energy. opportunity for India to expand and the dramatic rise in shale oil over the last tighten efficiency standards and ensure few years. Although that is partially true,Do you believe that energy that future demand for energy services a much larger part of the explanation isefficiency will have to lead the way? – notably for cooling – is met without to do with reduced demand for oil – dueWhichever way you look at the future, putting undue strain on energy supply. to fuel efficiency standards for cars andenergy efficiency is part of the solution, Renewable energy is set to play a leading role – indeed. Based on the policies and trends that we see today, the addition of renewable power generation capacity over the period to 2040 is likely to be more18 | Energy Next | January 2017

Interviewtrucks and the rise of alternatives to oil- India has achieved a lot in recent years;based mobility, such as electric vehicles. at the IEA, we have been particularlyEnergy efficiency and renewables are impressed with EESL’s programme tonot just tools for achieving a low-carbon promote use of LED lightbulbs, which hastransition, they help with other policy delivered real gains and brought downobjectives as well. costs dramaticallyWhat are the current barriers in India are competitive with other forms of energy worldwide. China already deployedto widespread adoption of generation without subsidies. This has opened more than 60 GW of renewable energyenergy efficiency? What needs up a realistic and cost-effective clean energy in 2015, 3-times more than the Europeanto be done to speed up the strategy for India that can reduce over time the Union and 4-times more than in theimplementation of energy country’s reliance on more polluting fuels; this United States. And India’s ambitions inefficiency measures? is an opportunity that Indian policymakers this area are set to move it quickly into aThe benefits of energy efficiency are clear, are eager to take up – as witnessed by India’s position of leadership.but implementing efficiency policies is ambitious targets for renewable energy and itsoften not straightforward. There can be leadership in the International Solar Alliance. For the whole period to 2040, ourmarket barriers, such as price distortions projections suggest that China and Indiathat prevent consumers from seeing the The bottom line is that sustainable and account for more than 40% of globaltrue value of efficiency improvements. affordable energy, underpinned by energy renewables capacity additions. In termsThere can be a lack of adequate information technology cooperation and innovation, is of solar PV, China and India are the twoor understanding about the potential indispensable to India’s outlook for economic largest markets, accounting for half of newfor energy efficiency, whether among growth and poverty reduction. From my global capacity to 2040. China is also theconsumers or among institutions that could perspective as Executive Director of the IEA, largest market for wind power, hydropowerprovide finance. There can be a bias among I see a clear mutual interest, shared by India and bioenergy to 2040; while India is thepolicymakers towards supply-side solutions. and the international community, in strong 2nd largest market for solar PV in ourIn some countries, there can be a lack of support for India’s drive to deploy more Outlook, 3rd for hydropower and 4thcapacity to implement efficiency measures, efficient and low-carbon technologies. largest for wind power and bioenergy.or a lack of affordable technologies to do so. When you look at the future, What does the year 2017 hold But there are many examples of howgovernments, at different levels, can remove how much growth in global for the renewable energythese barriers, whether through changes topricing mechanisms, the introduction of new renewable energy do you expect industry globally and in India?standards and incentives, public information I think the renewable energy industry can lookcampaigns, training programmes and the like. will come from India and China? for another promising year in 2017, both globallyAt the IEA we are at the forefront of efforts to In our Outlook, India and China are key and in India. Of course this can vary by country,share information and best practices on how countries for the growth of renewablethis can be done. One of my key goals as IEAExecutive Director is to reinforce our role as a‘clean energy hub’ – a place where governmentsand others can turn for advice on all aspects ofefficient and low-carbon energy.What are the implications of newenergy developments for India?In our Outlook, India emerges as a majordriving force in global trends, with all modernfuels and technologies playing a part. Whatthe rise of new energy technologies does forIndia is to provide additional choices, whichwere not available at scale only a few years ago.Renewable technologies today cost a fractionof what they did in 2010. In our view, theyare likely to get cheaper in the years to come.By the late 2020s, for example, solar projects January 2017 | Energy Next | 19

Cover | Interview a strategy move forward in a coordinated way. There are examples where a surge in deployment of new generation capacity has run ahead of the ability of the grid to accept the output – leading to capacity sitting idle. Cost reductions for renewables are very welcome but they are not the end of the story. On their own, they will not be enough to secure an efficient decarbonisation of electricity supply. Structural changes to the design and operation of the power system are essential to ensure adequate incentives for investment and to integrate high shares of variable wind and solar power.depending on circumstances and policy choices, today is that the momentum is widely You have been named bybut the overall trends are positive. The costs of shared. Even countries that might have Forbes magazine among thesolar PV and wind power are continuing to fall, been cautious about renewables a few most powerful people in termswith auction schemes in a growing number of years ago are now getting involved. of influence on the world’scountries, including India, helping to accelerate energy scene. What is thethese reductions. Bid prices are consistently What is required for a successful strategy? one thing you are striving tocoming in at levels that bring the next batch One of the most important things in practice change on a priority basis?of projects very much in line with fossil fuel is one of the most difficult to achieve –public I am convinced that the risingalternatives –good news for renewable energy support and social acceptance of the need for environmental and energy securityand the fight against climate change. a low-carbon transformation. This case needs challenges that we face can best be tackled to be made actively and openly; and made in through collective effort,by bringing peopleWhich countries have been broad terms, talking not just about carbon but together across borders to discuss commonmost successful in the also about other benefits such as improved air problems. I have made it a personal priority,transition to a low carbon quality or enhanced access to electricity. If you as Executive Director, to ‘open the doors’economy, and why? don’t have a consensus behind the need for of the IEA to countries outside our currentThere have been a few pioneering change, you’re more likely to see the stop-and- membership. We have some long standingcountries in the low-carbon transition, go policy cycles that can quickly undercut ties with India, but I would like to see thesebut the striking thing about the situation investor confidence in the transition. becoming much closer. That’s my wish for the future. I look forward very much to It’s also vital that different elements of deepening our dialogue and joint work in the years to come.20 | Energy Next | January 2017

Column2017 to see corporatesourcing of renewablesRapid rise in population and urbanisation has increasedthe demand of electricity in India. With manyIndian firms joining RE100, the year looks bright forrenewables, writes Dr Praveen Saxena.In the pie of 310 GW for total installed cost inflation for consumers, there are large companies are increasingly looking capacity for power generation in India, clear benefits for businesses switching their for ways to contract directly for renewable renewables contribute 47 GW, just electricity supply to renewables. Renewable energy to protect against future energy over 15 percent. The year 2016 has energy offers an increasingly affordable price increases and meet their climatebeen another year of success for renewable solution for businesses. It is widely available and renewable energy goals. To meet theenergy technologies. The confidence that without the risk of fuel inflation. scale of their goals, these companies needRE technologies can be mainstreamed access to more renewable energy in moreis strengthening every year. This year, a The subject of the corporate sourcing of places. Companies have stepped forwardcapacity addition of about 8000 MW has renewables took centre stage at COP22 in to join the Buyers’ Principles becausebeen achieved. The highlight of the year has Marrakech, Morocco. Throughout the course the Principles fit their corporate energybeen increasing confidence of corporates in of a dedicated session organised by IRENA strategy and describe the sorts of productsrenewable energy technologies both grid- in collaboration with the Clean Energy they hope the marketplace will offer them.connected as well as off-grid. Ministerial, RE100 and the World Business Council for Sustainable Development, the With an increasing number of companies India had pushed for inclusion of potential for corporate sourcing of renewables committing to ambitious sustainable energysustainable lifestyle with minimum carbon was further highlighted. With an increasing goals to reduce their carbon footprint,footprint and a clear cut mention of flow of number of companies committing to corporate electricity strategies can play anfunds in the political proclamation of COP22. ambitious sustainable energy goals to reduce important role in accelerating renewableThe International Solar Alliance (ISA), moved their carbon footprint, corporate electricity energy deployment and progress towardsto a next level when more than 20 countries, strategies can play an important role in global climate objectives. IRENA and theincluding India, signed its framework accelerating renewable energy deployment and Coalition for Action are developing theagreement on the first day of COP22. progress towards global climate objectives. REmade Index to support the CorporateGovernment has formulated an Integrated Sourcing of Renewables campaign of theEnergy Policy (IEP) document that gives a The RE100 global campaign is convening Clean Energy Ministerial.roadmap to develop energy supply options companies in India which are aspiring toand increased exploitation of renewable use 100% renewable electricity, supporting The Government has taken variousenergy sources and amended the National them on their journey and showcasing the policy initiatives including amendmentsTariff Policy for electricity for promotion of progress they are making. For the first time to the Electricity Act and Tariff Policy forRenewable Energy since RE100 began outreach in India last strong enforcement of Renewable Purchase year, RE100 has connected with corporates Obligation (RPO). Given that over 50 percent of electricity in Bengaluru. There are now 83 membersdemand in our country is from businesses, of RE100, all committed to transitioning The stage is set to achieve the target ofthe sector has the opportunity to shape India’s their electricity supplies to 100% renewable 20,450 MW during 2017-18 and 22,150transition to a low carbon energy future. energy. Infosys was the first Indian company in the year 2018-19 and could leapfrogCompanies can provide technologically to join the initiative, followed by Tata Motors through companies committing to ambitioussound, financially feasible and professionally Limited and Dalmia Cement this year. sustainable energy goals to reduce theirmanaged energy solutions in return for carbon footprint.policy support. From tax relief for generators As renewable energy has become moreto energy security and protection against and more cost effective and companies The author is Former Advisor, MNRE and CEO are setting more ambitious goals to buy it, (design) Skill Council for Green Jobs (Views expressed by the author are personal) January 2017 | Energy Next | 21

MNRE 46.33 7,518 1,502 GW MW MWGrid-interactive Grid-connected Wind power power power capacity addedA new dawn inrenewable energyTYear End Review – MNRE renewables. Core drivers for development Bio-power. Confident by the growth rate in he Ministry of New and and deployment of new and renewable clean energy sector, the Government of India Renewable Energy (MNRE) has energy in India have been Energy security, in its submission to the United Nations Frame taken several steps to fructify Electricity shortages, Energy Access, Work Convention on Climate Change on Prime Minister Shri Narendra Climate change etc. Intended Nationally Determined ContributionModi’s dream of clean energy. The largest (INDC) has stated that India will achieve 40%renewable capacity expansion programme A capacity addition of 14.30 GW of cumulative Electric power capacity from non-in the world is being taken up by India. renewable energy has been reported during the fossil fuel based energy resources by 2030 withThe government is aiming to increase share last two and half years under Grid Connected the help of transfer of technology and low costof clean energy through massive thrust in Renewable Power, which include 5.8 GW International Finance including from Green from Solar Power, 7.04 GW from Wind Power, Climate Fund. As on 31stOctober, 2016, 0.53 from Small Hydro Power and 0.93 from22 | Energy Next | January 2017

ACHIEVEMENTS & Initiatives4,323 92,305 38,000 MW crore Solar Pumps Small hydro installed Green Energypower capacity Corridor reachesIndia attains 4th position in global wind power installed capacity; 46.33 GWgrid-interactive power; 7,518 MW of grid-connected power; 1502 MW Windpower capacity added; Small hydro power capacity reaches 4323 MW, 92305Solar Pumps installed, 38,000 crore Green Energy Corridor is being set up; SuryaMitra” mobile App launched , Solar Tariff as low as Rs 3/unit .Solar Energy Projects with an aggregate power generation and other uses, with the based generation.capacity of over 8727.62 MW has been ultimate objective of making solar energy In order to achieve the renewable energyinstalled in the country. compete with fossil-based energy options. The objective of the National Solar Mission is target of 175 GW by the year 2022, the major The government is playing an active role in to reduce the cost of solar power generation programmes/ schemes on implementationpromoting the adoption of renewable energy in the country through long-term policy, of Solar Park, Solar Defence Scheme, Solarresources by offering various incentives, such large scale deployment goals, aggressive scheme for CPUs Solar PV power plants onas generation-based incentives (GBIs), capital R&D and the domestic production of critical Canal Bank and Canal Tops, Solar Pump,and interest subsidies, viability gap funding, raw materials, components and products. Solar Rooftop etc have been launched duringconcessional finance, fiscal incentives etc. Renewable energy is becoming increasingly the last two years.The National Solar Mission aims to promote cost-competitive as compared to fossil fuel-the development and use of solar energy for Various policy measures have been initiated and special steps taken in addition to providing January 2017 | Energy Next | 23

MNREfinancial support to various schemes being The target set for the various renewable energy sources for the nextimplemented by the Ministry of New and three years are:Renewable Energy (MNRE) for achieving thetarget of renewable energy capacity to 175 Source 2016-17 2017-18 2018-19GW by the year 2022. These include, interalia, suitable amendments to the Electricity Solar Power 12,000 15,000 16,000Act and Tariff Policy for strong enforcement ofRenewable Purchase Obligation (RPO) and for Wind 4000 4600 5200providing Renewable Generation Obligation(RGO); setting up of exclusive solar parks; Biomass 500 750 850development of power transmission networkthrough Green Energy Corridor project; SHP 225 100 100identification of large government complexes/buildings for rooftop projects; provision of Grand Total 16725* 20450* 22150*roof top solar and 10 percent renewable energyas mandatory under Mission Statement and *(Capacities in MW)Guidelines for development of smart cities;amendments in building bye-laws for mandatory of 15 MW eq. waste to energy, 60 MW eq. Green Power Capacity Additionprovision of roof top solar for new construction biomass non-bagasse cogeneration, 10 MW eq. A total of 7,518 MW of grid-connected poweror higher Floor Area Ratio; infrastructure status biomass gasifiers, 1.0 MW eq. small wind/hybrid generation capacity from renewable energyfor solar projects; raising tax free solar bonds; systems, 100 MW eq. solar photovoltaic systems, sources has been added so far this year (Januaryproviding long tenor loans; making roof top 1.0 MW eq. micro hydel and 100,000 nos. family 2016 to October 2016) in the country.solar as a part of housing loan by banks/ NHB; size biogas plants have been set for 2016-17.incorporating measures in Integrated Power A total of 7060 MW of grid-connectedDevelopment Scheme (IPDS) for encouraging ll SHARE OF RENEWABLE power generation capacity from renewabledistribution companies and making net- POWER IN TOTAL INSTALLED energy sources like solar (3019 MW) andmetering compulsory and raising funds from CAPACITY wind (3423 MW), Small Hydro Power (218bilateral and international donors as also the Economic growth, increasing prosperity, a MW), Bio-Power (400 MW) has been addedGreen Climate Fund to achieve the target. growing rate of urbanisation and rising per during 2015-16 in the country against target of capita energy consumption has increases the 4,460 MW. During 2016-17, a total 3575 MWll ESTIMATED POTENTIAL OF energy demand of the country. In order to meet capacity has been added till 31.10.2016, makingRENEWABLE ENERGY the energy demand, India has total installed cumulative achievement 46,327 MW.The increased use of indigenous renewable power generation capacity of 307.27 GW as Sector-wise highlights of achievementsresources is expected to reduce India’s on 31.10.2016 from all resources. With 46.33 • Largest ever wind power capacity addition ofdependence on expensive imported fossil GW installed renewable power capacity, the 3423 MW in 2015-16 exceeding target by 43%.fuels. India has an estimated renewable energy renewable power has a share of about 15% to During 2016-17, a total 1502 MW capacity haspotential of about 900 GW from commercially the total installed capacity. been added till 31.10.2016, making cumulativeexploitable sources viz. Wind – 102 GW (at achievement 28,279 MW. Now, in terms of wind80 meter mast height); Small Hydro – 20 GW; ll ACHIEVEMENTS power installed capacity India is globally placedBio-energy – 25 GW; and 750 GW solar power, The details of year round initiatives and at 4th position after China, USA and Germany.assuming 3% wasteland achievements of the Ministry of New and • Biggest ever solar power capacity addition Renewable Energy are as follows: of 3,019 MW in 2015-16 exceeding targetll TARGETSThe Government of India has set a target of175 GW renewable power installed capacityby the end of 2022. This includes 60 GWfrom wind power, 100 GW from solar power,10 GW from biomass power and 5 GW fromsmall hydro power. A target of 16660 MW grid renewable power(wind 4000 MW, solar 12000 MW, small hydropower 250 MW, bio-power 400 MW and wasteto power 10 MW), has been set for 2016-17.Besides, under off-grid renewable system, targets24 | Energy Next | January 2017

ACHIEVEMENTS & Initiativesby 116%. During 2016-17, a total 1750 MW against a target of 1.00 lakh biogas plants, plans, solar city cells, promotional activities andcapacity has been added till 31.10.2016, making 0.26 lakh biogas plants installations has been installation of renewable energy projects and ancumulative achievement 8728 MW. achieved making a cumulative achievement to amount of Rs. 24.16 crore has been released, so• 31,472 Solar Pumps installed in 2015-16, 49.35 lakh biogas plants as on 31.10.2016. far, under Solar City Programme.higher than total number of pumps installed The sector wise achievements from January • Various departments and ministriesduring last 24 years i.e. since beginning of 2016 to October are as follows: under central government have collectivelythe programme in 1991. So far, 92305 Solar committed to deploying 5,938 MW ofPump have been installed in the Country as on ll Major Initiatives taken rooftop solar capacity for their internal power31.10.2016. by Ministry consumption. SECI is aggregating demand• Solar projects of capacity 20,904 MW were Solar Power for a part of this requirement and helping intendered in 2015-16. Of these, 11,209 MW • Under National Solar Mission, the target for procuring rooftop solar systems. SECI hascapacity already awarded. setting up solar capacity increased from 20 GW issued a tender for development of 1,000 MW• A capacity addition of 0.53 GW has been to 100 GW by 2021-22. Target of 10,500 MW, rooftop solar capacity on pre-identified centraladded under Grid Connected Renewable set for 2016-17 which will take the cumulative government/ department owned buildings. ItPower since last two and half years from Small capacity to 17 GW till 31st March 2017. is the largest such tender in India’s fledglingHydro Power plants. • As on date, 19,276 MW has been tendered rooftop solar market.• Biomass power includes installations from out, of which LOI issued for • Several schemes namely (i) Defence schemebiomass combustion, biomass gasification and 13,910 MW/PPA signed for 10,824 MW. (ii) Central Public Sector Undertakingsbagasse co-generation. During 2016-17, against • 34 Solar Parks of capacity 20,000 MW in 21 (CPSUs) scheme (iii) Bundling scheme (iv)a target of 400 MW, 51 MW installations states have been sanctioned which are under Canal Bank/ Canal Top scheme (v) VGFof biomass power plants has been achieved various stages of execution. Scheme (vi) Solar Park scheme (vii) Solarmaking a cumulative achievement to 4882 MW. • As on 31.10.2016, a total of 90,710 solar rooftops, have been initiated/launched by the• Family Type Biogas Plants mainly for rural pumps have been installed throughout the Ministry under National Solar Mission whichand semi-urban households are set up under country. are under implementation.the National Biogas and Manure Management • Also, A total amount of Rs. 67.01 crore has • Under Defence scheme against a target ofProgramme (NBMMP). During 2016-17, been sanctioned for preparation of master 300 MW, 347 MW sanctioned, under Central Programme/Scheme wise Achievements in Year 2016 (January- October 2016)Sector  Achievement Cumulative Achievements (January- October 2016) as on 31.10.2016I. GRID-INTERACTIVE POWER (CAPACITIES IN MW)Wind Power 3191.21 28279.4Solar Power 3848.77 8727.64Small Hydro Power 146.47 4323.37“BioPower (Biomass & Gasification and Bagasse 331.78 4882.33Cogeneration)”Waste to Power 7.5 114.08Total 7525.73 46326.82II.  OFF-GRID/ CAPTIVE POWER (CAPACITIES IN MWEQ ) 14.61 161.12Waste to EnergyBiomass(non-bagasse) Cogeneration         49.54 651.91Biomass Gasifiers 0.19 18.34- Rural 15.58 176.3- IndustrialAero-Genrators/Hybrid systems 0.26 2.93SPV Systems 84.98 373.99Water mills/micro hydel 1.6 18.81Total 166.8 1403.4III. OTHER RENEWABLE ENERGY SYSTEMSFamily Biogas Plants (in Lakhs) 1.014 49.354 January 2017 | Energy Next | 25

MNREPublic Sector Undertakings (CPSUs) scheme tagging of all the Rooftop plants using ISRO’s wind atlas is available on NIWE website. Thisagainst a target of 1000 MW, all capacity VEDAS Portal. will create new dimension to the wind powersanctioned, under 3000 MW Bundling scheme, Wind Power development in the country.Tranch-I: 3000 MW has been tendered, under • During the year 2015-16, wind power • India has long coastline where there is a good100 MW Canal Bank/ Canal Top scheme, all capacity addition of 3.42 GW was made, which possibility for developing offshore wind powercapacity sanctioned, under 2000 MW & 5000 is highest ever wind power capacity addition in projects. The cabinet has cleared the NationalMW VGF Scheme, tenders issued for 4785 the country during a single year. The present Offshore Wind Energy Policy and the sameMW, and under 20,000 MW Solar Park scheme, wind power installed capacity in the country is has been notified on 6th October 2015. Certain34 Solar parks have been approved in 21 States around 28.28 GW. Now, in terms of wind power blocks near Gujarat and Tamil Nadu coast linewith aggregate capacity of 20,000 MW. installed capacity India is globally placed at 4th have been identified. NIWE is in process ofSolar Rooftop position after China, USA and Germany. doing the wind resource assessment in these• A target of 40 GW grid connected solar • India has a strong manufacturing base coastal areas.rooftops to be achieved by 2022 has been set. of wind power equipment in the country. • Comprehensive Guidelines for DevelopmentSo far, about 500 MW have been installed Presently, there are 20 approved manufacturers of On-shore Wind Power Projects in theand about 3,000 MW has been sanctioned with 53 models of wind turbines in the country country have been formulated and issued onwhich is under installation. All major sectors up to a capacity of 3.00 MW single turbines. 22nd October 2016.i.e. Railways, Airports, Hospitals, Educational Wind turbines being manufactured in India are • Guidelines for implementation of “SchemeInstitutions, Government Buildings of Central/ of international quality standards and cost-wise for Setting up of 1000 MW Inter-StateState/PSUs are being targeted besides, the amongst the lowest in the world being exported Transmission System (ISTS) - connected Windprivate sector. to Europe, USA and other countries. Power Projects” issued on 22nd October 2016.• A massive Grid Connected Solar Rooftop • The wind power potential of the country has • The Policy for Repowering of the WindProgramme launched with 40 GW target. State been reassessed by the National Institute for Power Projects has been released onElectricity Regulatory Commissions of 30 States/ Wind Energy (NIWE), it has been estimated 5th August, 2016 to promote optimumUTs notified regulations for net-metering/feed- to be 302 GW at 100 meter hub-height. Online utilization of wind energy resources by creatingin-tariff mechanism. Rs.5000 crore approved facilitative framework for repowering.for solar rooftops. About 500 MW solar rooftopcapacity installed till 30.09.2016. A target of 40 GW grid connected solar• A total sanction of 1300 million dollars has rooftops to be achieved by 2022 hasbeen received from World Bank, KFW, ADB been set. So far, about 500 MW have beenand NDB through which the SBI, PNB, Canara installed and about 3,000 MW has beenBank and IREDA will be in the position to fund sanctioned which is under installationat the rate of less than 10%.• Ministry has tied up with ISRO for Geo26 | Energy Next | January 2017

ACHIEVEMENTS & InitiativesSmall Hydro Power During the year 2015-16, wind powerA capacity addition of 14.30 GW of renewable capacity addition of 3.42 GW wasenergy has been reported during the last two made, which is highest ever windand half years under Grid Connected Renewable power capacity addition in the countryPower, 0.53 GW from Small Hydro Power. during a single yearBiomass Power IREDA is being set up to ensure evacuation ofBiomass power includes installations from Indian Renewable Energy Development Renewable Energy. Power Grid Corporationbiomass combustion, biomass gasification and Agency (IREDA) has been awarded Mini Ratna of India Limited (PGCIL) has sought a Loanbagasse co-generation. During 2016-17, against Status and the authorised capital of IREDA is assistance of US$ 1,000 million from the Asiana target of 400 MW, 51 MW installations of increased from Rs.1000 Cr. to Rs.6000 Cr. Development Bank (ADB) comprising ofbiomass power plants has been achieved making New Office Building of MNRE Sovereign guaranteed loan of US$ 500 milliona cumulative achievement to 4882.33 MW. Foundation Stone Laying Ceremony of and Non-Sovereign loan of US$ 500 million. ‘Atal Akshay Urja Bhawan’, an integrated the Loan would be utilized for funding of theFamily Size Biogas Plants headquarters building for the Ministry of following transmission projects including aFamily Size Biogas Plants mainly for rural New and Renewable Energy was held on 19th project under Green Energy Corridor projectsand semi-urban households are set up October, 2016. The Foundation Stone was laid in next 3-4 years:under the National Biogas and Manure by Shri Piyush Goyal, Hon’ble Minister of State (i) HVDC Bipole link between WesternManagement Programme (NBMMP). (Independent Charge) for Power, Coal, New Region (Raigarh, Chhattisgarh) and SouthernDuring 2016-17, against a target of 1.00 and Renewable Energy and Mines. Region (Pugalur, Tamil Nadu) - North Trichurlakh biogas plants, 0.26 lakh biogas plants (Kerala)- Scheme 1: Raigarh-Pugalur 6000 MWinstallations has been achieved making Installation of 200 MW or more Capacity HVDC System.a cumulative achievement to 49.35 lakh Solar Power Plant at the Central State Farm at (ii) HVDC Bipole link between Westernbiogas plants. Jetsar, Rajasthan. Region (Raigarh, Chhattisgarh) and Southern Region (Pugalur, Tamil Nadu) - North TrichurOff-Grid Solar Applications The Union Cabinet chaired by the Prime (Kerala)- Scheme 3: Pugalur- Trichur 2000 MWA special programme for 1,00,000 solar pumps Minister Shri Narendra Modi has given its VSC based HVDC System.launched of which 31,472 Solar Pumps installed approval for utilization of 400 hectares of (iii) Real Time Measurement/ monitoringin 2015-16, higher than total number of un-cultivable farm land at the Central State scheme.pumps installed during last 24 years i.e. since Farm (CSF), Jetsar in Sri Ganganagar District, (iv) Inter State Transmission System (ISTS)beginning of the programme in 1991. Rajasthan for setting up of a solar Power Plant associated with Green Energy Corridor as of capacity exceeding 200 MW. The land is under:Amendments in Tariff Policy to promote presently in possession of National Seeds a) Ajmer(New) – Bikaner (New) 765 kV D/cRenewable Energy Corporation (NSC), a Central Public Sector b) Bikaner(New) – Moga (PG) 765 kV D/c• Enhancement in Solar RPO to 8% by Enterprise (CPSE) under the administrative c) LILO of one circuit of 400kV Bhadla-March 2022. control of the Ministry of Agriculture and Bikaner (RVPN) line at Bikaner(New)• Introduction of RGO for New coal/lignite Farmers Welfare. The Solar Power Plant will d) Establishment of 2x1500 MVA, 765/400 kVbased thermal plants after specified date. be set up by a CPSE, which would be selected S/s at Bikaner (New)• Ensuring affordable renewable power through negotiation. The Project, by utilizing Enhancement of Budgetthrough bundling of renewable power. un-cultivable land for a Solar Power Project, Ministry’s budget enhanced from Rs.1500• No inter-state transmission charges and losses will yield revenue for NSC and will also crore to Rs.9,000 crore (Rs.5,000 crore grossto be levied for solar and wind power. generate clean energy for the nation budgetary support + Rs.4,000 crore in way of• Further, pursuant to the revised tariff policy, Green Energy Corridor bonds to be raised by IREDA) by 2016-17.the Ministry of Power on 22nd July 2016 has Rs.38,000 crore Green Energy Corridornotified the long term growth trajectory of RPOfor solar and non-solar energy for next 3 years2016-17, 2017-18 and 2018-19 as under:-Long term trajectory 2016-17 2017-18 2018-19 ll LOWEST SOLAR TARIFFS Non-solar 8.75% 9.50% 10.25% Solar tariffs have fallen to an unprecedented Solar 2.75% 4.75% 6.75% low of Rs. 4.34 / kWh through reverse auction Total 11.50% 14.25% 17.00% for one of six projects of 70 MW each to be put up in Rajasthan under the National Solar January 2017 | Energy Next | 27

MNRE | ACHIEVEMENTS & INITIATIVESMission. NTPC on 18.01.2016 conducted App is currently available in Google play store, November, 2016 at Marrakech, Morocco onthe reverse bidding for 420 MW solar power which can be downloaded and used across the side-lines of COP-22.projects. However, the tariff had further fallen India. This App is a high end technology • Bank loans up to a limit of Rs.15 crores willto Rs 3 per unit, which was quoted by Amplus platform which can handle thousands of calls be given to borrowers for purposes like solarEnergy Solutions in an auction for rooftop solar simultaneously and can efficiently monitor all based power generators, biomass based powerpower conducted by Solar Energy Corporation visits of Suryamitra’s. The trained Suryamitra’s generators, wind power systems, micro-hydelof India (SECI). who opts for entrepreneurship have joined plants and for renewable energy based public in the Mobile App in several states. These utilities viz. Street lighting systems, and remotell SKILL DEVELOPMENT Suryamitras are once again sensitized by village electrification. For individual households,Surya Mitra Scheme has been launched for NISE on soft skills Customer Relations the loan limit will be Rs.10 lakh per borrower.creating 50,000 trained solar photovoltaic Management, Punctuality and are now ready • Coal cess has been increased 8 times fromtechnicians by March 2020. A total number to deliver the services. Rs.50 to Rs.400/ton in last two yearsof 5492 Surya Mitra’s have been trained as on Other Initiatives (2014-15) which will make available around30.09.2016 and more than 3000 are undergoing • International Solar Alliance was launched Rs.40,000 crore/year for supporting andtraining. A network of over 150 Institutions, as a special platform for mutual cooperation incentivizing development of Clean Energyspread all over the country, have been created among 121 solar resource rich countries projects in the country.for implementing Surya Mitra scheme. lying fully or partially between Tropic • Foreign Direct Investment (FDI) up to 100% of Cancer and Tropic of Capricorn at is permitted under the automatic route for In addition, short term training programmes COP21 in Paris on 30th November, 2015 renewable energy generation and distributionfor small hydro, entrepreneurship development, to develop and promote solar energy, with projects subject to provisions of The Electricityoperation & maintenance of solar energy its headquarter in India. On 25th January, Act, 2003.devices and boiler operations in co-generation 2016, the Foundation Stone for the proposedplants, have been organised. Headquarters of the ISA was laid at Gurgaon, In order to achieve the targets, various Haryana (India) and its interim Secretariat initiatives have been taken by the Government About 7800 persons have been trained was inaugurated. The International Steering which inter alia include:through these short term training programmes Committee (ISC) of the ISA has held four • Amendments in the Tariff Policy forduring the last two years. meetings so far. The Framework Agreement strong enforcement of Renewable Purchase of ISA has been finalized after discussions Obligation (RPO) and for providing Renewable Shri Piyush Goyal, Minister of State (IC) with various stakeholders. It was presented Generation Obligation (RGO);for Power, Coal and New & Renewable in the fourth meeting of the ISC of ISA. • Setting up of exclusive solar parks;Energy launched “Surya Mitra” mobile App at The Framework Agreement of ISA has been • Development of power transmission networkNational Workshop on Rooftop Solar Power signed by 20 member countries including through Green Energy Corridor project;on 07.06.2016. The GPS based mobile app India, France, Brazil and others on 15th • Identification of large governmenthas been developed by National Institute of complexes/ buildings for rooftop projects;Solar Energy (NISE) which is an autonomous • Provision of roof top solar and 10 percentinstitution of Ministry of New & Renewable renewable energy as mandatory under MissionEnergy (MNRE). The Surya Mitra Mobile Statement and Guidelines for development of smart cities; • Amendments in building bye-laws for mandatory provision of roof top solar for new construction or higher FAR; • Infrastructure status for solar projects; • Raising tax free solar bonds; • Making roof top solar a part of housing loan by banks/NHB; • Incorporating measures in Integrated Power Development Scheme (IPDS) for encouraging distribution companies and making net- metering compulsory • Raising funds from bilateral and international donors as also from the Green Climate Fund to achieve the target. and • Creation of Surya Mitras for installation and maintenance of the Solar Projects. Source:PIB28 | Energy Next | January 2017

Adding capacities make renewable bright The year 2016 marked important renewable energy installations across the world. While India unveiled the world’s largest solar power plant, America got its first offshore wind power project. According to ‘Top 10 Renewable Energy Trends toWatch in 2017’ by Renewable Energy World, India takes the No. 1 spot on trends listfor its sheer volume of activity in the solar sector in 2016. India issued its first call forsolar power projects with energy storage and set out about $3 billion in state fundingfor developing the country’s solar panel manufacturing infrastructure. Plus, India in2017 will demonstrate leadership in green finance as it starts its first green bank and support local banking options through unique public-private mechanisms. Here’s a glimpse at some International clean energy moments of 2016: Global MilestonesASIA power plant in Kamuthi, Tamil Nadu. G114-2.0 MW model and 15 of the G114-India Unveiled by the Adani Group, the plant 2.1-the longest ever supplied by Gamesa.India launched the world’s largest solar has the capacity to produce 648 MW of electricity. Thailand Wind turbine maker Gamesa has secured a contract for installation of Asia’s tallest wind turbines in Thailand. The towers will stretch 153 metres high - 18 units of the January 2017 | Energy Next | 29

WORLDSouth Korea power. It hit a record high on 8 May when it paid the commercial power consumers to use electricity combined of solar, wind, biomass and hydro. Portugal run 100% on renewable energy. This becomeSouth Korea scientists have made ultra-thin possible after the launch of a solar array calledphotovoltaic cells of 3.5-4 times thicker, flexible Boulder Solar I, a large solar plant run by NVenough to wrap around the average pencil. Energy near Las Vegas.China Portugal enjoyed 100% RE power for four Costa Rica days, i.e. May 7 to May 11. Hydro, wind, and solar power helped Portugal to run on 100% renewable electricity for 107 hours straight, according to data analysis of national energy network figures.China has launched an emissions-tracking The Netherlands Costa Rican Electricity Institute, a state-runsatellite called as TanSat satellite to track body, reports that the country run more thancarbon dioxide emissions. TanSat satellite 250 days on nothing but renewable energy-will take emissions readings in every 16 mix of wind, solar, hydro, geothermal, anddays. China is the third country to launch its biomass energy sources, in 2016.own satellite for maintaining emissions data,behind Japan and the United States. The largest port in Europe situated in SOUTH AMERICAEuropean Union Netherland, Rotterdam port, has completed BrazilUnited Kingdom the installation of a rooftop solar power system. frigoCare, a subsidiary of logistics company Brazil is third-highest producer of hydroelectricityUK sourced 40% of its electricity from Samskip, announced that it has installed around in the Americas, behind only the United Statesrenewable sources to run the nation on the 3,100 solar panels for a rooftop system under its and Canada. Over 70 per cent power demand inday of Christmas i.e. December 25 2016. sustainability strategy. Brazil is met by hydroelectricity. EUROPE ScotlandUK is all set to have a road covered in a layer UNITED ARAB EMIRATESof thin solar panels. These roads would help Dubaito electrify homes and offices across thecountry by the end of 2017.Germany The world’s first large-scale underwater The second phase of the Mohammed binGermany nearly reached 100% renewable energy farm, being built in Pentland Firth in Rashid Al Maktoum solar park has been northern Scotland, is expected to have a power completed and about 30,000 homes in generation capacity of 398 MW - enough to Dubai will be supplied with electricity. The power 175,000 homes in Scotland. electricity generated from this phase will also North America United States Las Vegas has become the largest city in U.S. to30 | Energy Next | January 2017

ACHIEVEMENTS & Initiativesbe used to power the World Expo 2020. The facility will supply solar power for 40,000 and Development (EBRD) has approvedDh50 billion solar park is planned to generate homes, schools and businesses in the region. a financing framework of up to €200m5,000 MW by 2030, or enough electricity for primarily for private renewable energy750,000 homes. Uganda and UK signed the Energy Africa projects totaling 300 MW in Kazakhstan.Dubai’s Roads and Transport Authority Compact to provide over 30 million poorest(RTA) has introduced the first solar-powered Ugandans access to clean, reliable and affordable NORTH AMERICAboat in Middle East. Known as solar ‘abra’, energy. The aim of the Energy Compact is to United Statesthe boat is deployed in the waters of Dubai’s achieve 100% electrification by 2030.Al Mamzar Lagoon.Saudi Arabia ASIA BangladeshSaudi Aramco will unveil the first wind Bangladesh officially became the member ofturbine in Saudi Arabia in January, the first International Solar Alliance (ISA) by signingin the kingdom as a part of nationwide plans the Framework Agreement in a ceremonialto diversify energy supplies. The turbine will programme held during the Conference ofprovide 2.75 MW of power. Parties 22 (COP 22) in Marrakech, Morocco. Global Initiatives The first offshore wind farm of United States, Block Island Wind Farm has begunAFRICA functioning now. It produces 30 megawatts of energy through 5 turbines, which were assembled at sea. Pakistan AUSTRALIA Pakistan Minister for Climate Change ZahidMarrakech, Morocco Hamid has announced that the country isThe Paris Agreement (adopted by consensus setting up the world’s largest solar park ofon 12 December 2015 and signed on 22 April 1,000 MW as part of its plan to promote2016) has brought all nations into a common production of renewable energy in thecause to undertake ambitious efforts to combat country.climate change and adapt to its effects. As of ChinaDecember 2016, 194 UNFCCC members havesigned the treaty, 120 of which have ratified it.East AfricaEast Africa is all set to have its largest solar China continues to lead the world in solar Australian Prime Minister MalcolmPV plant in Soroti, a district in Uganda. Made power installations and is expected to Turnbull announced the creation of a $1up of 32,680 PV panels, the new 10 megawatt increase its capacity by more than 7 GW, or 7 billion Clean Energy Innovation Fund that billion watts, according to a new report. is intended to support emerging renewable Kazakhstan energy technologies to make the leap from The European Bank for Reconstruction demonstration to commercial deployment. January 2017 | Energy Next | 31





IN FOCUSIndia’s solar marketexcites worldThe year 2016 has been India’s best year for renewable energydevelopment. With new solar capacity additions estimated at 5.6 GW,India is set to become the world’s fourth largest solar market after US,China and Japan, writes Dan Shugar.T his is an exciting time for solar energy in India. The market is But how can a country evolve from being However, Prime Minister Modi’s government poised for enormous growth, one of the world’s chief coal consumers and would not be deterred. Initial targets set in particularly in large-scale solar emitters to a global leader in clean energy? 2009 to reach 20 GW of solar capacity by 2022, were considered too modest to havedevelopment. India has a tremendous any effect on rising pollution levels, and a ll A LOOK BACK BEFORE WEopportunity to build a power industry that is LOOK FORWARD new goal was set for 175 GW of renewablereliable, environmentally responsible and at India is unique among developing nations energy, 100 GW of which would be solar.the same time, fully capable of supporting the in its simultaneous efforts to pre-empt In the National Action Plan on Climatecountry’s growing appetite for electrification. disastrous climate change effects and Change (NAPCC), Modi laid out a vision advance the country’s economy. To ensure for India that would guide clean energy modernisation and growth, 300 million developers, technologists and investors in the people who are not connected to the grid ensuing years: “India is determined that its would need access to reliable forms of energy. per capita greenhouse gas emissions will at no As the science around climate change began point exceed that of developed nations even as to coalesce, India’s leaders wisely asked how we pursue our development objectives.” will access to energy be provided, and what India would not retread the same type of energy should it be? environmental devastation as other nations. Would India continue to build coal plants India would bypass wide-scale coal plant like China, which appeared to be the path of build outs in favour of renewables - primarily least resistance and cost? India’s leaders chose wind and solar. the road less travelled and embarked on a plan to combat climate change and become a ll FAST FORWARD TO 2016 world economic leader – setting clean energy With only five years to go until 2022, how does goals that appeared as unrealistic to some. India’s clean energy future look now?34 | Energy Next | January 2017

SOLAR MARKET indeed leapfrog coal-supplied power the same way as mobile phone adoption rapidly outpaced land lines in India. Clean energy could, within a few short years, become India’s dominant power source. This shift has huge implications for the people of India, not the least of which is jobs. Unlike more developed countries like China and the US – who first built and are now dismantling their coal industries - India will become a model for other developing nations in how to power a growing economy without decimating natural resources. Because of early investments made by Germany and the U.S. to advance solar technology, India and other emerging economies can now take advantage of a mature technology priced competitively with fossil fuel generation - and India’s engineers, technologists and entrepreneurs can participate fully in advancing that technology even further. At the end of fiscal year 2016, India had and international capital investment ll PARTNERING FOR INDIA’Sa total of 42.6 GW of installed clean energy for India to reach its targets while alsocapacity, amounting to 14 percent of the electrifying 18,000 villages. SOLAR-POWERED FUTUREcountry’s overall generation. While it still As the founder and CEO of NEXTrackerrepresents only 2% of grid-connected capacity, The good news is that renewable energy - a company whose mission is to secure asolar is growing twice as fast as coal as well as projects are now bankable investments in cleaner, brighter future for generations towind. 2016 is expected to be India’s best year India. In early 2016, for the first time ever, come, it has been my privilege and honouryet for renewable energy development. With solar was priced lower than coal at auction. to be involved in the development of India’snew solar capacity additions estimated at 5.6 In Karnataka, where power shortages have clean energy sector. India is indeed poisedGW, India is due to become the world’s fourth forced industries in Bengaluru to take for sustained and intensive solar deploymentlargest solar market – behind only the US, one-day power holidays every week until over the next decade, particularly inChina and Japan – up from 10th place just a recently, state-run utilities are turning to ground-mount installations. Greentechfew years ago. From 2016 to 2021, India will be solar to bridge the gap, purchasing 1,000 Media estimates that 11.7 GW of ground-second only to China in terms of utility-scale MW of solar from Solar Energy Corporation mount solar installations will be installedsolar development. of India (SECI). India will soon hold its first by 2020, and 25% of these will include solar ever wind energy auction of 1 GW of onshore trackers, which provide the highest return However, significant challenges remain in wind projects. If these trends continue and on investment for their increased powerreaching the government’s clean energy goals. the cost of capital continues to come down, generation over fixed-tilt systems. solar and other forms of renewables will There is a need of significant domestic Since 2013, NEXTracker has been working closely with India’s majors to develop the most advanced PV power plants. Many of these projects are being developed under the SECI’s plan to build 25 solar parks by 2022. But we are also seeing an exciting wave of private investment and development on the open market. In 2017- 2018, we may even see private developments under India’s Open Plan strategy begin toIn the National Action Plan on Climate Change (NAPCC),Modi laid out a vision for India that would guide clean energydevelopers, technologists and investors in the ensuing years January 2017 | Energy Next | 35

IN FOCUS | SOLAR MARKET NEXTracker’s balanced design uses less steel, reducing the need for pier foundations by 30 percent. Its self-grounded and self- powered technology provides significant savings in labour and materials, while its 120-degree rotational range maximises energy production. NEXTracker’s unimpeded row design also provides valuable cost savings in cleaning in dusty desert climates and minimises the need for site grading.outpace government projects. for quality assurance at a local manufacturing ll LOCAL PRESENCE, GLOBAL In 2016, NEXTracker became the #1 facility in Brazil. EXPERTISE In late 2013, I had visited one of our customers inprovider of solar trackers worldwide. Our ll Why Tracking the Sun Hyderabad to introduce our tracker technology.products have been installed in more than 150 Makes Sense for India Subsequently, we signed an MSA for a 400 MWprojects across 11 countries and five continents. A consistent theme in India’s clean energy pipeline of projects with PES Engineers. SinceThese projects are as diverse as the geographies projects is the need for high-quality, reliable then, our local NEXTracker team has forgedthey serve, with systems ranging from 1 MW power, delivered as cost-efficiently as possible. close relationships with all the majors such asto 420 MW. For India to truly cross the chasm between Adani Power and we are on the verge of several its fossil fuelled industrial past and its high- exciting project announcements. Recent NEXTracker milestones demonstrate growth, technological future, energy mustthe trend in India and around the world for not only be reliable, it must also be cost- As a Flex company, NEXTracker haslarger, more innovative solar projects that competitive and make the most efficient use of been able to quickly scale manufacturingproduce not only clean energy but local precious land resources. through our parent company’s vast globaleconomic benefits: network of 100 sites in 30 countries• India: In September 2016, NEXTracker Solar trackers optimise the use of available worldwide, including six facilities in India.delivered its NX Horizon technology to land by maximising the sun’s resources. With local supply chain relationships,India’s largest solar tracker power plant in domestic manufacturing, a growing teamcollaboration with our customer, Adani Power Trackers can improve an array’s in Hyderabad, and Flex’s Global BusinessLtd. The largest PV plant in the State of Punjab, performance by 20 to 30 percent. Single-axis Office in Chennai, NEXTracker is quicklythe 105 MW project will provide clean, reliable trackers are fast becoming the ground- distinguishing itself as a strategic partner inpower, as well as hundreds of jobs to the mount technology of choice for large solar local Indian solar projects.Punjabi people. installations, accounting for 96% of tracker• Australia: NEXTracker designed, installed shipments in 2015. Tracking the sun’s One of the most gratifying and perhapsand commissioned the country’s largest utility- movements in a horizontal plane, single- axis unexpected by-products of our rapid growthscale solar tracker project located in Moree, solar trackers eliminate the complexity of in India has been the expansion of solarNSW, and designed the first PV+storage hybrid dual axis technology while still providing learning and skill-building. Our employeeinstallation, the DeGrussa Gold and Copper flexibility for project designers. exchange program enables US and IndiaMine in remote Western Australia. NEXTracker employees to trade places for training andalso established an Australian entity and local NEXTracker’s products are unique in expertise, giving teams on both sides ofoffice presence in Sydney. their use of ‘independent rows’ – which the globe an opportunity to see the world• Brazil: To be online by Q2 2017, the Pirapora enable flexible ground cover ratios (GCRs), through different eyes. In January, we will1 project is one of the largest solar projects in a key requirement for India. While most introduce our PowerworX India program toBrazil and one of the few utility-scale projects trackers typically have conjoined rows linked EPCs and installers in India – an intensive,to meet the FINAME accreditation criteria of to a central inverter, NEXTracker enables hands-on training on NEXTracker products.the Brazilian Development Bank (BNDES). a uniquely distributed design for power As a long-time believer in the power of solar,Manufactured locally, NEXTracker NX plants. Each NEXTracker row operates this constant pursuit of knowledge is oneHorizon™ is FINAME-compliant; its materials independently so that if an issue arises with benefit of an expanding clean energy worldand components are manufactured and tested one section of an array, it doesn’t bring down that I had not foreseen - and it’s strengthened the entire system. my resolve even more to empower the people of India with clean, reliable electricity for many years to come. The author is Founder and CEO, NEXTracker (Views expressed by the author are personal)36 | Energy Next | January 2017

IN FOCUS | SOLAR rooftopShining rooftopsdot IndiaWith SECI announcing a 1000 MW tender across multiple ministries, thedomestic manufacturers in the rooftop solar segment are bound to boom,writes Andrew Hines. Promoting domestic manufacturing and solar power have been consistent there is a requirement to do so. However, the themes of the current government, very rapid growth of the solar PV markets but achieving these two aims together in India (both rooftop and utility scale) have made India one of the top 4 solar markets (promoting domestic PV manufacturing) is a globally, and it is worth taking a close look at major challenge. As we all know, polycrystalline whether there is a real potential for globally PV cell and module manufacturing are competitive module and cell manufacturing. dominated by China. Manufacturers in India The solar industry saw huge growth in and elsewhere are hard pressed to compete, 2016, and this growth is widely expected to largely for reasons of scale. continue in 2017 and beyond. What does For a large developer like CleanMax this mean for domestic PV manufacturing Solar, with easy access to Tier 1 imported potential? As CleanMax Solar is the country’s modules, it is impossible to justify using #1 rooftop solar developer, we have a domestically manufactured modules unless particular perspective on the rooftop market. January 2017 | Energy Next | 37

IN focusWe see the rooftop market as growing in 12 months as per Bridge to India, a quarter continued demand of wholesale solarimportance relative to utility-scale projects, of which was by CleanMax, and a higher power, but also for long-term investmentsin the short, medium and long term. While proportion in the corporate segment. In the in transmission and grid infrastructure,rooftop is still a small proportion of the total opex model, if a consumer can save on energy without which growth will start to slowmarket today, growth in the rooftop segment costs without investing, it’s hard for them to down after a few years.has been very consistent, and is actually say no. These economics are only improving -accelerating. CleanMax’s rooftop business has solar costs continue to decline, and grid tariffs In the rooftop segment, Indian modulesgrown at 2-3X each of last 3 years, and this is continue to escalate (and will continue to do so, will realistically only be used for projectsin line with the market growth. for the foreseeable future). with a domestic content requirement, which refers to projects on government rooftops, or It’s not just the growth rate of 2-3X that is Moreover, unlike utility-scale projects with government subsidy. CleanMax projectsremarkable, but the consistency as well. This which are hugely dependent on policy constitute the largest share of SECI-supportedis in large part due to the growing strength support, rooftop projects depend only rooftop projects in the earlier subsidy rounds,of the fundamental economics and the marginally on government supports such as well as the more recent SECI/CPWDproposition to the customer. Today, from Delhi as net metering and tax incentives. While tender. For example, some of our SECI-to Kanyakumari, we are providing rooftop solar government supports are important to supported projects include those at Bangalorepower at a significant discount to industrial, accelerate growth in this segment, the International Airport, Manipal Educationcommercial, educational and government growth will continue regardless of these. and Medical Group (more than 2 MW ofbuilding grid tariffs, without government This cannot be said for the utility-scale rooftop capacity across Manipal, Jaipur andsubsidy. The build-own-operate or ‘opex’ sector, which depends enormously on Bangalore), and rooftop projects for a numbermodel is gaining strength in the industry – 115 continued policy support from central of the country’s leading MNCs and largestMW was installed under this model in the last and state governments – not only for Indian business houses – ranging from large industries to IT companies. More recently, weWhile rooftop is still a small proportion have commissioned rooftop projects at NITKof the total market today, growth in Surathkal (1 MW) supported by SECI, andthe rooftop segment has been very other leading educational institutions whichconsistent, and is actually accelerating. have not yet been made public. BangaloreCleanMax’s rooftop business has Metro Rail Corporation Ltd. also recentlygrown at 2-3X each of last 3 years, and announced its decision to go with CleanMaxthis is in line with the market growth on its first rooftop solar projects, which is also under a SECI tender. All of the above mentioned projects have used Indian modules, as mandated by SECI. Now that subsidies are removed for38 | Energy Next | January 2017

Solar ROOFTOPcommercial and industrial consumers, we are The good news for domesticreally left with government building rooftops. manufacturers is that the governmentThe good news for domestic manufacturers rooftop segment is expected tois that the government rooftop segment is boom, with SECI announcing a 1000expected to boom, with SECI announcing a MW tender across multiple ministries1000 MW tender across multiple ministries.This tender should get a good response from business. India has a fair bit of ground to in a large-scale facility in India – somethingdevelopers, although SECI rooftop tenders make up in these areas today. which has been discussed in recent years, buttypically attract a huge number of bidders, • Growth and long-term viability of the has not yet been materialised.many of whom will not be able to implement Indian solar market itself. This is certainlytheir projects on time, if at all. However, if a good reason for making in India, as the I would like to point out that the benefitswe keep implementation concerns aside, this market is not only large and growing, but of domestic PV manufacturing should betender represents a major development in the also enjoys strong policy support across the kept in perspective. As solar PV grows to be agovernment rooftop segment, and we should board and strong fundamentals (eg. Solar meaningful industry in India, the prospect ofsee hundreds of MW of development in the irradiation and high power prices). large-scale manufacturing is certainly somethingnext 12-18 months, with follow-on rounds • Importantly, the cost and productivity of which would bring certain benefits to thefor further capacity to follow. manufacturing relative to other countries country. However, the benefits of solar PV to which are alternatives to India – particularly consumers of solar power (which includes Government rooftops stand to represent China today, but potentially other emerging nearly all individuals and businesses) are much,a growing share of the rooftop market in economies in the next 5-10 years (such as much greater. As a capital intensive industry,the next 2 years, and this is good news for South East Asia). As labour costs in China the overwhelming driver of the cost of solardomestic manufacturers, although it won’t continue to rise, there is an opportunity energy is the cost of high-quality PV modules.change their fundamental cost disadvantage for countries like India to compete for Some initiatives which would promote domesticin a major way. investment in manufacturing. manufacturing, such as import duties on imported modules, would do so, to the broader The hard reality for domestic It should be noted that domestic industry in India, and to power consumers asmanufacturers today is that without these manufacturing need not include only Indian a whole. Rather than penalising cost-effectivedomestic content requirements, their share manufacturing. Given the current scale of imports, the government should look to promotein the Indian market would be miniscule, as module and particularly cell manufacturing PV manufacturing indirectly, by promoting theIndian modules today just do not compete in India, it will be a monumental task for solar industry itself, and improving the overallon a cost-per-watt-peak basis, for equivalent the current Indian manufacturers to grow conditions for manufacturing in the country.quality and warranty risk. While there are to a scale where they can compete globally.some non-subsidy projects using domestic A more likely scenario might be a decision The author is Business Development Head, Southmodules today, but these are primarily by a large global PV manufacturer to invest India, CleanMax Solar.projects by very small developers, whose (Views expressed by the author are personal)scale do not allow them to enjoy the costadvantages of imported modules. This pointis underscored in the utility scale segment,where CleanMax is active as a supplier ofsolar power to corporate clients, particularlyin Karnataka where we are currently the onlysuch supplier, and in Tamil Nadu where weare commissioning our first solar farm verysoon. For these projects (typically 30 MWand above), any developer has the scale toimport, and domestic manufacturers havean even smaller presence, except wheresupported by domestic content requirements. In the long run, the success or failure ofthe Indian PV manufacturing sector willdepend on a few underlying factors, and noton short term supports from governmenttenders. These would include the following:• Overall conditions for manufacturingin the country, including wages, workerproductivity, taxes, and ease of doing January 2017 | Energy Next | 39

IN focuseSovelarryPcoownseurmfoerrAlthough India’s power from renewables has seen a 160 percent increase tilldate and solar market has undergone a transition from being policy-driven tobeing parity-driven, yet Solar is far away from being harnessed to its maximumcapacity, writes Sanjeev Aggarwal.P ower is one of the most critical existence and development of adequate ll SOLAR IS THE FUTURE components of infrastructure - infrastructure is essential for sustained Interestingly, due to the dependence on vital for the economic growth growth of the Indian economy. There is an imported fuels for power generation and and welfare of nations. The increase in electricity demand across the increasing awareness of the demerits of country which is expected to rise further using conventional energy for generation, in the years to come. Massive capacity the market has seen a considerable shift additions are required to meet the rapidly towards harnessing renewable energy with scaling demand. solar energy leading the pack. India has a diversified mix of power Solar has become a crucial component sources and since Independence, the of India’s energy portfolio in just a few power sector has seen a substantial growth years’ time and has the potential of of more than 200% in terms of installed making India one of the largest solar capacity and power from renewables has markets in the world. seen a 160% increase till date. The power sector has seen a series of progressive India’s solar market has undergone a reforms and development of niche market transition from being policy-driven to segments to provide a favourable ecosystem being parity-driven and rapid scale up of to all stakeholders. capacity under a parity-driven market can only happen under a robust market driven40 | Energy Next | January 2017

SOLAR FUTUREframework supported by a progressive Solar has become a crucial componentregulatory backbone. The government of India’s energy portfolio in just a fewhas taken several steps to promote solar years’ time and has the potential ofby way of capacity allocations, renewable making India one of the largest solarpower purchase obligations, subsidies and markets in the worlddeveloping a solar ecosystem. who pay relatively high tariffs. Rajasthan, Punjab, Madhya Pradesh etc. by The Indian government has set ambitious However, there are a few challenges providing visibility on related charges for a fewtargets to increase energy sourced from solar years and waiving off/subsiding the chargesrooftop systems to 40GW by 2022, indicating and roadblocks hampering the growth whereas several others such as Maharashtratheir support and vision for solar power in India. of the open access market such as grid (which has one of the highest retail tariffWe absolutely believe that next level of growth stability, policy uncertainty, visibility across the country), Tamil Nadu have fixedin this sector will only happen when there is on future charges for open access open access charges at a prohibitive levela favourable economic environment in the transactions and grid losses. These which act as a barrier for solar (renewable)country for solar players to grow at a large scale. charges are subject to revision by the energy producers to use this facility. respective State Electricity Regulatoryll LET THE MARKET FORCES Commission (SERC) and make assessing In many cases, open access charges areTAKE OVER the financial viability of a long term open as high as Rs 3 per unit (approx.) whichSolar is not yet being harnessed to its access solar project difficult which affects when added to the base tariff for solar,maximum capacity. For this, we need the bankability of such projects. renders it uncompetitive, unviable andthe sector to steer away from under the unattractive to the end consumer to makegovernment’s umbrella and become market In addition to this, discoms or utilities face that switch.driven. Mechanisms such as open access revenue loss and over drawl issues and hencepromote competition, do not require much in many states, they lobby with the regulatory Although Open Access is being lookedof government support and are generally commissions to increase the open access at expectantly by market developersdriven by end user economics. charges to cut out competition for their high- but there is still a long and circuitous end tariff paying industrial and commercial road for the market to flourish. The These mechanisms provide an consumers. Lack of sufficient infrastructure issues need considerable attention andopportunity to the end consumer and lack of information for the bulk all the stakeholders would have to cometo choose his source of supply and consumers in performing the cost benefit together with one single aim of promotingin the process, safeguard him from analysis in their respective states of business competition, providing quality powerthe monopolistic state distribution is also affecting open access transactions in supply and benefitting the end consumercompanies. However, even after 13 years states that have allowed open access. in the long run.of the Electricity Act 2003 that clearly laysout these instruments, the end consumer Many states have been actively promoting The author is Managing Director & CEO,is yet to see any substantial benefits of open access transactions such as Karnataka, Amplus Energy.this. Open Access will typically benefit Andhra Pradesh, Telangana, Haryana, (Views expressed by the author are personal)industrial and commercial consumers, January 2017 | Energy Next | 41

ANALYSISSolar heating system-Industry useAlthough the demand of photovoltaic systems is increasing, the demand ofsolar heating systems for home and industries is stagnating, write GerhardStryi-Hipp and Abhinav GoyalIGerhard Stryi-Hipp Abhinav Goyal heating domestic hot water for residential ndia began successfully the homes, hotels, hospitals or industries is transformation of its energy of Prime Minister Narendra Modi, the stagnating and even declining over the system with the goal to make solar demand of photovoltaic (PV) systems, last years. But does this mean that PV energy one of the major energy which generate electricity from solar is the future and solar heating will notsources. Driven by the ambitious policy energy, is strongly growing. In contrast, play any role? For sure not, but to give an the demand of solar heating systems for answer to this question is not so simple. Since solar PV systems are generating electricity while solar heating systems heat, two different markets are addressed. This means, that the competition is not related to the final form of energy - electricity or heat. Each country has a demand of electricity and heat and both solar technologies could be used in parallel. But in reality, there is a competition on the investment amount and on the area for installation (limited roof or ground space). The business case42 | Energy Next | January 2017

SOLAR HEATING SYSTEMis very important to decide on a solar efficiency of a solar collector alone is that around 1 million sq. metres istechnology. Interestingly, the pay-back not meaningful. According to the SoPro added annually. However, the market istime for PV is usually much longer than India results, the performance measured shifting from flat plate collectors (FPC) tosolar heater. However, what counts is the is sufficient; however, there is room for evacuated tube collectors (ETC).fact that due to feed-in tariffs and the introducing interventions for improvingpossibility to sell electricity for 10 or 20 the performance. It can be imagined that However, despite being a matureyears at a fixed contract, the business case such systems could optimally perform technology and quick pay-back time,for PV systems can be clearly calculated. at around 40 percent efficiencies. This the uptake of SWHS in process heatIn contradiction, investors facing several would decrease the pay-back period applications, is very low up to now. It isuncertainties with solar heating systems, further. More importantly, higher estimated that 250MW (3.5 lakh squaree.g. the future price of fossil fuels, the performing systems would substitute metres) is installed in industries [2]. Thequestion, how much fuel is in reality larger quantities of fossil fuels, increasing SWHS are currently installed in varioussaved by the solar system per year, and if mitigation of climate change or would industry sector including dairy, automobile,the heat demand will possibly change in reduce the required collector area to pharmaceutical and textile among others.future. Since heating systems are usually generate the same amount of heat. The hot water is used primarily for steamnot connected to a network, the investor boiler feed-water pre-heating but alsomust be convinced that the local heat Up to now, roughly 82 percent of for washing or cleaning, directly used indemand remains at the calculated level the total installed 9 million sq. metre of processes with auxiliary electrical heating.over a minimum operation time. These collector area in India is in the residential There is an attractive case for increasingaspects make solar heating systems less sector. Another 14 percent is in the market of solar process heat.attractive for investors though the pay- commercial and institutional sectorback period is often only 2-4 years. and 4 percent is in the industrial sector. The barriers for lower uptake could Residential market is well-established be categorised as cost and non-cost. The In order to support the deployment with off-the-shelf products available cost barriers includes the upfront costof solar heating systems for industrial in standard sizes to meet the hot water (upfront cost are higher than for fossilprocesses, the German development demand of the consumers. It is estimated boilers, but the fuel is for free), perceivedagency GIZ, together with the German longer payback periods and lack of accessSolar Research Institute, FraunhoferISE, executed the project ‘SoPro India’ In order to support the deploymentfrom 2014 to 2016. To give investors’ of solar heating systems for industrialconfidence about the ability of solar processes, the German developmentheating systems to generate heat and save agency GIZ, together with the Germanfossil fuels and money, two solar water Solar Research Institute, Fraunhoferheating systems installed in a diary and ISE, executed the project ‘SoPro India’a chemical company were monitored from 2014 to 2016with a scientific monitoring system. Thegoal was, to receive precise data andprovide a detailed analysis of real solarwater heating systems including financialaspects and therefore, increase theconfidence of the industrial investors insolar water heating systems (SWHS). The overall result was that both SWHSshowed an overall system efficiency ofaround 20 percent and a pay-back periodof around 2-4 years with subsidy and3-7 years without subsidy. Perhaps, 20percent sounds low for some people,however, the system performance ofPV systems is about 15 percent andfossil fuel power stations do often havean efficiency of only about 30 percent.One learning of the project is that themost relevant figure is the final output(saved fossil fuels) of the system. The January 2017 | Energy Next | 43

ANALYSIS | SOLAR HEATING SYSTEMto finance. The primary non-cost barriers Up to now, roughly 82 percent of theare lack of awareness, lack of knowledge total installed 9 million sq. metre ofand lack of trust in the ability to save collector area in India is in the residentialfuels and costs. These are rightfully so, sector. Another 14 percent is in thein absence of mechanism which would commercial and institutional sector andensure consumers of assured performance 4 percent is in the industrial sectorand quality. about 60°C to 70°C for preheating the feeding tanks properly, installation of air vents to Through the SoPro India project, an effort water of a steam boiler. The performance was avoid trapping of air, appropriate choice ofwas made to address non-cost barriers. The satisfactory from the owner’s perspective. connection point for hot water extractionkey objective was to monitor few systems on the storage tank for either ensuringand generate data on performance and prove The main result of the SoPro India stratification or proper mixing and avoidingthat the systems are performing well. With project was that the monitored SWHS are use of redundant components such as storagethis, a database of systems installed in various operating with an acceptable performance tanks and heat exchangers which are notindustrial applications across the country and attractive pay-back time. This means, contributing to increased efficiencies.was created, to prove that SWHS can be used there is no reason not to use SWHS toin a lot of industries, to raise awareness and replace fossil fuels, reduce GHG emissions Beyond these, there is the challengeto support uptake amongst other industries. and improve the local air quality. However, to put concerted efforts in order toThe information was gathered on the system the second finding was, that there is assure quality holistically. This includessize, investment cost, purpose for which the a significant potential to improve the introducing a planning software similarheat is utilised, how the systems are designed manufacturing, designing, installation and to Polysun or T*Sol which are widelyor operated and rough estimate of its operation of SWHS to further increase the used in Europe to optimise the designperformance. Interestingly, it has been seen performance and reliability of SWHS. of SWHS and provide information onthat an existing industry consumer of SWHS, solar energy yield and fuel savings torealising the benefits, have invested in the Possible interventions were identified to help manufacturers and planners identifytechnology for the additional facilities. improve the system performance through a good and proven SWHS design for the analysis of the system performance a specific demand. This information During the period from October 2014 data and personal interaction with system also gives assurance to customer onto Sept 2015, two SWHS were monitored. installers and owners. The efficiencies could minimum SWHS performance. FurtherOne of the system was an ETC of capacity be increased by taking simple indicative the development of design guidelines for87KW installed in a chemical company in measures which are also applicable to new typical SWHS for process applicationHyderabad, Telangana while other was an FPC system designs. For instance, synchronising adapted to different industries and heatof 84KW installed in a dairy plant in Rampur, pump operating times with irradiation, demanding processes would help increaseHimachal Pradesh. In case of dairy plant, ensuring same quantity of flow through the quality of work of manufacturers,roughly 4200 litres of diesel was saved per parallel collector rows, refilling of storage planners and installers.annum whereas, in chemical industry, around7000 litres of furnace oil was saved. However, Lastly, it is identified that the customersboth the systems delivered temperatures of don’t know if their SWHS is operating properly and the manufacturers cannot prove what the best SWHS design is, and what kind of performance can be expected. Therefore, the concept for cheap and robust monitoring system should be developed and utilised by system installer, fitting the standard design and including the information on sensors and electronics available in the Indian market. About the authors: Gerhard Stryi-Hipp, Head of Energy Policy, Fraunhofer Institute of Solar energy systems ISE Germany ​Abhinav Goyal, Technical Expert, Integration of Renewable Energies in the Indian Electricity System (I-RE). (Views expressed by the authors are personal)44 | Energy Next | January 2017

EXPERT SPEAK | WIND TURBINESuzlon rides thetailwindsEmerging from prolonged financial gloom, the wind turbine makerdiversifies into solar energy to straddle the renewables spectrum,writes Sarosh Bana.Pune-based Suzlon Group, the eighth – 288 MW – was contributed largest wind turbine maker (onshore by just two of its new models - S97- and offshore) in the world, has 120 2.1 MW and S111-90 2.1 MW – with returned to profitability after years rotor diameters of 97 and 111 m respectively,in the red with a spirited foray into solar power installed on masts 120 and 90 m tall and bothand a robust strategy for high growth. of 2.1 MW rating. Also, with new wind turbine models hoisted Globally, the company has created 15,473on some of the tallest towers in the industry MW of wind capacities, 10,477 MW of that inthat eke out viability from unfeasible wind sites, Asia, including 9,517 MW in India, 929 MWensure better yields and increase the capacity in China and 31 MW in Sri Lanka, 2,716 MWutilisation factor (CUF), the company is seeking in North America, 869 MW in South America,to expand its market share this year (2016-17) 764 MW in Australia, 508 MW in Europe andto 40 per cent – by 1.76 GW of a projected 4.4 139 MW in Africa.GW of wind capacities to be established acrossthe country. Suzlon’s order book grew over threefold within a year, from 375 MW in 2014-15 to Suzlon had a 26 per cent market share in 1,251 MW in 2015-16, with Profit After Tax2015-16 with 900 MW of combined wind (PAT) recording Rs 483 crore in 2015-16 afterinstallations of 3,415 MW, this tally surpassing serial losses suffered in previous years (seeall previous records of yearly wind installations. Table). Similarly, the company registered anThe previous highest had been 3,196 MW in operating profit of Rs 565 crore in 2015-162010-11. A third of Suzlon’s 900 MW capacities following sustained operating losses of Rs 2,037 crore in 2012-13, Rs 918 crore in 2013-14 and Rs 493 crore in 2014-15. “Globally, renewable energy is witnessing a paradigm shift from being considered alternate to mainstream [fossil fuel based] sources of energy,” says Tulsi Tanti, Chairman and Managing Director of Suzlon Group. “Investments in both wind and solar have garnered traction owing to the improving cost competiveness enabled through technology advancements and the need to transition from fossil fuel dominated energy.” Making renewable energy a priority in fulfilling its mission of ‘Power to all by 2022’, January 2017 | Energy Next | 45

EXPERT SPEAKthe government has targeted 175 GW of completely vertically integrated supply chain Factors that have brought Suzlon back torenewable energy capacity by that year, 60 GW with 14 manufacturing facilities across India, profitability have been the rising demand forof it wind energy and 100 GW of solar that and a vast vendor base. It makes and installs renewables, falling input costs (of raw materialsincludes 40 GW rooftop (or off-grid) solar and wind turbines, including offshore turbines, such as copper and steel), and debt reduction.60 GW, grid-connected. Preparing itself for manufactures blades, generators, panels andthese opportunities, Suzlon has set for itself towers, and delivers turnkey projects through It has managed to halve its outstanding debtthe mission “to deliver utility scale, best-in- its project management and installation - excluding FCCBs - to Rs 7,010 crore at the endclass, end-to-end integrated renewable energy consultancy, and operations and maintenance of the June quarter. “About $247 million worthsolutions to our customers”. In its charter services. Its subsidiary SE Forge also operates a of the outstanding FCCBs has been convertedVISION 2022, Suzlon looks to add as much as casting unit in Coimbatore and a forging unit into equity, the remaining $328 million due20 to 22 GW of renewable capacity between in Vadodara. only in 2019,” says Vagadia. The company2016 and 2022. seeks to exit by 31 March 2017 the corporate With nearly 8,000 employees of diverse debt restructuring (CDR) that it assumed on 1 Rajkot-born 58-year-old Tanti founded nationalities, Suzlon manages its international October 2012.Suzlon Energy Ltd in 1995 after suffering 10 sales business out of the Danish town ofyears of power cuts and spiralling costs in Aarhus. The company’s Global Wind and Site In a landmark move in January, Suzlonrunning his family textile business. A year Knowledge Centres are based in Aarhus and forayed into the solar segment of renewableearlier, he had ordered two compact wind in Vejle, also in Denmark,with other R&D energy - one of few wind companies to take theturbines from Danish manufacturer Vestas facilities in Rostock and Hamburg, in Germany, step – by winning the tender of the TelanganaWind Systems, essentially taking his factory off and the Blade Development and Rotor State Southern Power Distribution Co. Ltd forthe power grid. Tanti’s opting for wind energy Technical Field Support unit in Hengelo, in the generation of 210 MW of PV solar poweras his full-fledged business came at a time when the Netherlands. Its Indian R&D facilities – for across six sites in the state. Suzlon will overseerenewables were not considered a viable source testing blades and for technical field support – the projects from concept to commissioning,of energy. He and his three brothers, Girish, are based in Vadodara, Pune and Chennai. within this financial year, and these will be oneVinod and Jitendra, all engineers like him, of 100 MW, at Veltoor, another of 50 MW, andwere the first subscribers to the memorandum However, mounting debt, declining turbine four others of 15 MW each. “Solar and windfor the company, establishing it at a time the sales globally and a default on a convertible are complementary, hence we will leverage ourdomestic market was dominated by only a few bond redemption made the last seven years project execution capabilities and end-to-endinternational players. extremely challenging for Suzlon, its CFO, Kirti solutions to deliver solar projects,” says Tanti. Vagadia, recalling that the company had been Suzlon has since developed an almost managing less business and more liabilities. Suzlon is pursuing the 100 MW solar project at Veltoor through SE Solar, its joint ventureSuzlon’s order book grew over threefold with CLP (China Light & Power) India, one ofwithin a year, from 375 MW in 2014-15 to the largest foreign investors in the Indian power1,251 MW in 2015-16, with Profit After Tax sector with a total committed investment of over(PAT) recording Rs 483 crore in 2015-16 Rs 14,500 crore and combined power generation of over 3,000 MW. The venture also marked CLP India’s entry into solar energy. The project is expected to be commissioned by May 2017. A year ago, Suzlon commissioned its next generation wind turbine generator (WTG), the S111-90 m 2.1 MW, of 111 m diameter rotor of 2.1 MW rating, atop a 120 m tower and designed for low wind sites. Over 300 MW of these turbines have been sold and 30 MW installed. It can generate 20 per cent higher energy compared to the S97-120 m 2.1 MW model, of which the company has sold over 800 MW and installed 330 MW since its launch in November 2014. Both these WTGs now constitute 75 per cent of Suzlon’s orders. The S97-120 moreover generates 10 per cent more electricity than the previous S97-90 at the same site conditions. Suzlon’s chief technology officer (CTO) Duncan Koerbel describes the evolutionary S97-120 as the world’s tallest and first of its kind combination all-steel lattice base and tubular46 | Energy Next | January 2017

WIND TURBINEwind turbine hybrid tower. He explains that Suzlon has developed an almostthe broad base of the lattice component helps completely vertically integrated supplysupport higher load and also reduces steel chain with 14 manufacturing facilitiesrequirement, while the tall mast harnesses the across India, and a vast vendor baseenhanced wind resource available at higheraltitudes for maximising energy yields in low economical viability of our projects, irrespective conventional power,” he says. “Solar will givewind regimes. The S97-120 has attained an of the low tariffs.” nearly 20 per cent PLF, so a hybrid wind-solarimpressive Plant Load Factor (PLF) of 35 per system will be ideal for the grid infrastructurecent, when most turbines of 90-metre height The prototype S111-120 m 2.1 MW and strategic for our national interest.”operate at an average 15 to 20 per cent PLF. The turbine in the arid Bhuj region of Gujarat willmodel also increases energy output by 12 to 15 be commercially available by March. “It is He adds that wind and solar are quiteper cent over other turbines of same capacity expected to generate about 20 per cent higher complementary to each other and combiningbut on a 90 m mast. output than the S97-120 and to cross 40 per these two technologies as ‘Wind-Solar cent PLF levels that are closer to thermal- Hybrid’ offers huge synergies, which is the Of the past models, over 5.7 GW has been based sources,” notes Chalasani. “Its relatively future of renewable. In this, Suzlon’s modelinstalled of the S88-80 2.1 MW, introduced high per MW cost of installation is far offset for solar power will be project execution andin 2008, and over 1.8 GW of the S9X-90 (of by the reduced cost of energy generated.” management drawn into EPC (engineering,2.1 MW rating, 95 to 97 m rotor diameter While the S111-90 turbine perches on an procurement, construction), though it willand 80 to 90 m tower height), commissioned all-steel 90 m tubular tower, the S111-120, like not be manufacturing solar panels, butin 2011. According to Koerbel, the higher the S97-120, rests on a 120 m hybrid lattice sourcing them. Tanti says his company planshub heights of all the newer WTGs optimise base and tubular tower. Each of the models on installing about 285 MW of solar power incosts, ensure better yield, reduce LCoE due has a rotor diameter of 111.8 m and swept India this year, 210 MW of it in Telangana andto higher annual energy production (AEP), area exceeding 9,500 sq m, andis available 75 MW in Maharashtra, though these will notlessen steel requirement, lower foundation in variants of 50 Hz and 60 Hz, making it be hybrid projects.cost, and widen access to sites that were earlier compatible for varied climatic conditions.logistically challenging. Suzlon invests 2 to 3 Suzlon’s first hybrid project will be inper cent of its topline on R&D efforts across its Tanti indicates that Suzlon’s foray into solar Rajasthan, the company having signed an MoUcentres in India, Denmark, Germany and the technology was guided by the need for both with Rajasthan Renewable Energy Corp. LtdNetherlands, and its complete R&D focus is to wind and solar energies in the Indian context, in November 2015 that envisages two-phasedkeep pushing the PLF and thus on lowering the with wind more practical in early morning development of 1,500 MW of 50:50 solar-LCoE for wind. Its Vision 2022 document sets and late evening, and solar prevailing from wind hybrid power projects (SWHPPs) at anitself a target of lowering the LCoE by 20 to 22 around 9 in the morning to about 5 in the investment of Rs 12,000 crore. The first phase ofper cent by 2022. evening when wind is relatively low. “Wind is 500 MW is to be completed by the end of 2017 becoming a complementary energy for grid and the second, by November 2020. In line with this vision, Suzlon is at work on system management and if Suzlon can increaseits next generation S128 2.6 MW and S128 3.0 its 40 per cent PLF in grid-connected wind The author is Executive Editor, Business IndiaMW models, with ratings of 2.6 and 3.0 MW power to 50 per cent, it will narrow the gap with (Views expressed by the author is personal)and both having rotor diameters of 128 m. Theirtower heights will vary from 120 to 140 m andwhile the former is for low wind sites and forbeing marketed domestically by 2018, the latter isbuilt for medium wind and for the internationalmarket, also by 2018. The S128 will offer 10 percent lower LCoE than that of the S111. Suzlon is focussed on two aspects oftechnology development, namely, drawingviability from sub-optimal wind sites, andcoping with tariff costs that have dropped toless than Rs 5 per unit of wind energy. “Thesetwin challenges have compelled investment intechnology, resulting in our signature S97 andS111 models with high PLFs that have provedto be game-changers in the industry,” notesTanti. “These innovative technologies havehelped unlock sites that were not feasible aswind farms earlier and have also assured the January 2017 | Energy Next | 47

IN CONVERSATIONViable solutionthrough DREmini-gridsThe Smart Power for Rural Development’s missionis to develop 1000 Decentralised RenewableEnergy (DRE) mini-grids impacting a millionlives, says Jaideep Mukherji, CEO, Smart PowerIndia, in a conversation with Surbhi Mehtani.QWhat was the objective Smart Power for Rural Development with a are lighting multiple homes, institutions and behind the Smart Power for mission to address the challenge of energy businesses within a village. Access to reliable access. They committed $75 million grant energy has given local entrepreneurs the means Rural Development (SPRD) in 2015 to build capacity for implementing and confidence to sustain and expand their this initiative. Spearheaded in India, this own businesses – from computer centres andprogramme in India? is an innovative, market-based initiative convenience stores to motor based enterprisesThe Rockefeller Foundation launched a that enables rural electrification through and water purifying plants. Shopkeepers oncecomprehensive mini-grid initiative called the renewable energy mini grids, thus spurring limited by diesel generators can now keep their economic development of the under-served shops open longer. communities. Our mission is to develop 1000 Decentralised Renewable Energy (DRE) mini What is the role of Smart Power grids impacting a million lives. India in the SPRD programme? The Rockefeller Foundation established Smart The mini grids are standalone self-sufficient Power India (SPI) as a not for profit body to distributed electricity generation and implement the SPRD initiative. We are working distribution systems. Under the Smart Power with energy service companies (ESCOs), initiative, we are developing renewable energy- the private sector, investors, the Indian based mini grids, which provide consistent high Government and NGOs to create an enabling quality electricity that is empowering livelihoods ecosystem for setting up DRE mini grids across of customers in rural India. The DRE mini grids48 | Energy Next | January 2017

Mini-gridsrural India in the states of UP, Bihar, Jharkhand and ESCOs, and reduce risk in the long-term their partners.to provide energy access and catalyse economic by supporting the creation of viable grid- We support the ESCOs in the implementationdevelopment. interactive models. and operation of the projects in issues like site We support our partners and stakeholders Why have you focussed only on selection, load development and overall projectthrough a wide range of support services such as: states such as Uttar Pradesh, development. On the other hand, we ensure that• Project development support to assist ESCOs Bihar, Orissa and Jharkhand? Do the ESCOs create a service experience of reliablein structuring their engagement in terms of you have any plans to expand and quality electricity for the community. Thisfinancing, business modeling, site and cluster your work to other states? involves engagement with the communities,selection, procurement, training, and so on. As smart power initiative is committed to setting up micro-enterprises which help us get• Business development and contracting, address the energy access challenge in India, we consumers on board with the project.to facilitate agreements with telecom tower have targeted to work in the states which havecompanies, ESCOs, investors, and technology the maximum need of the solution that we are Every successful project facilitated by SPIand equipment providers. working on. Although the electricity grid has has brought with it a new learning and better• Load development and community reached a large part of the country, supply is still understanding for refining the model further.engagement to ensure strong local buy-in, unreliable and of poor quality. Uttar Pradesh, SPI supported ESCOs are now leveraging theeconomic development, and sustained demand Bihar, Jharkhand and Odisha are amongst the learning and helping to build an enablingfor power. most electricity deprived states. They are still ecosystem.• Policy and regulatory engagement to align dependent on kerosene for more than 50 perincentives between government, investors cent of lighting requirement. Today, we are working with seven ESCO partners, have 94 operational DRE mini grids How do you see your under the Smart Power initiative, serving achievements in your first year of households, shops, commercial enterprises, operations? institutions and telecom towers, impacting When we launched this initiative in April 2015, approximately 31,000 lives across the Indian we realised that there were many challenges to be states of Uttar Pradesh, Bihar and Jharkhand. addressed for the development of this sector - an These are the three states with the lowest absence of a conducive policy and regulatory electrification rates in India. There are more framework, non-availability of funding and plants in the build and pre-build stages. lack of interest from credible developers or investors. It was apparent that there was a need The Smart Power initiative has demonstrated for an enabling platform that could deliver that access to clean energy, in energy deficit implementation support, create knowledge, or un-electrified rural areas, has a catalytic develop a conducive ecosystem, engage with impact on economic development, going far stakeholders and perhaps most significantly beyond lighting and supporting productive bring in the risk capital. SPI is working to create uses. This initial success gives us considerable awareness, demonstrate the sector’s potential and optimism that the model will be able to attract build interest amongst investors and developers. more ESCOs and scale up operations to move ESCOs, i.e., developers have begun to view us as towards meeting its target of setting up 1000 plants and impacting a million lives. Can you elaborate on the socio- economic impact of Smart Power January 2017 | Energy Next | 49

IN CONVERSATION | Mini-gridsA short snap shot of the status of the programme million lives?and its customer profile The goal of the initiative is to establish 1,000 decentralised renewable energy mini grids,for Rural Development initiative Which ESCOs are you planning to impacting over a million lives. The initiative join hands in the near future? aims to promote energy-enabled businessesin the communities where it’s The mini grid market in India is fairly nascent and microenterprises, ideally driving with very limited precedence. Hence, the private concurrent increases in purchasing power, theoperational? player usually faces many challenges in terms demand and aspiration for more electricity. AA recent evaluation of the mini grids’ impact in of financing, established business models, million people, is a significant number, even inthe communities they serve uncovered a broad developing a conducive policy and regulatory a large country like India. We believe that withrange of benefits: environment and execution. Smart Power 1000 mini grids serving a million people, weEconomic Impact endeavours to provide support in these areas of would be able to generate sufficient confidence• 70% of micro-businesses report increased existing market gaps in building an enabling eco and a mature market for mini grids resultingnumbers of customers. system where the private sector player can gain in an organic growth for the sector. As a result,• 80% say they plan to expand their business. the confidence to become a long-term player. the market forces will drive investors, donors,• Entrepreneurship and the number of new government and private sector to scale up andbusinesses has grown, particularly among As part of our continuous outreach, we reach new geographies with the Smart Power-women who have to spend less time on seek to partner with companies with strong based solutions.household work, and have more free time to private sector credentials and a strong sensestart new ventures. of rural business. In addition, we partner with How do you see the adaptabilitySocial and Environmental Impact entities who believe that DRE mini grids have of renewable energy in the• 87% of household users say their children the potential to deliver a viable last mile rural market?use light to study after dark, increasing their electrification solution. There is significant focus and intensionaverage daily study time by two hours. demonstrated by the government to• 86% of women surveyed reported increased Some of our existing ESCO partners are mainstream a renewable energy ledmobility and a reduction in theft. HUSK, Milinda, OMC, TARAUrja, FreeSpanz, economy. The enormous shift to renewable• 50% of household users reported reduced eye Desi Power and Vayam. In addition, we are sources is primarily driven by technologyproblems. also working closely with some new ESCOs innovation supported by visionary• A dramatic decline in the use of fossil fuels: who have demonstrated skills in servicing policymaking. The innovations havekerosene use dropped from 21% to 0%; diesel electricity needs in rural ecosystem and are resulted in a sharply bending cost curve forfrom 52% to 0%. keen to set up DRE mini grids under the solar panels and a rapidly declining cost of Smart Power programme. storage. There have also been significant Supplying rural areas with consistent and innovations in the areas of driving energyreliable electricity is never a simple proposition. Any plans to increase your efficiency critical to ensuring 24×7But as these initial outcomes show, it can be target of establishing 1,000 availability of clean power and usage.done if there’s an enabling ecosystem that decentralised renewable energyallows renewable energy access through mini mini grids, impacting over a As signatory to the Paris Agreement, thegrids which are viable and scalable. UN-sponsored global effort to tackle climate change, India is committed to renewableAccess to reliable energy has given sources based generation capacity of 40%local entrepreneurs the means and of the total energy generation capacity fromconfidence to sustain and expand their the present, abysmally low 6.5%.Within thisown businesses – from computer centres framework we see the Smart Power initiativeand convenience stores to motor based playing a critical role in the rural electricityenterprises and water purifying plants market to leapfrog into a clean energy ecosystem According to Ernst & Young Renewable Energy Country Attractiveness Index-2015, India is the third most attractive market in the world, which is a big improvement. In the long run, the Indian market seems ready to take on renewable energy as technology, policy and market conditions seem to be converging to make renewable energy favourable.50 | Energy Next | January 2017