Cleantech Handbook 13 Jan 2014

8/12/2019 Cleantech Handbook 13 Jan 2014

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CLEANTECHHANDBOOK INDIA

CLEANTECH

FINLAND


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CLEANTECHHANDBOOK INDIA

1 INTRODUCTION 4

1.1 Preface 5

1.2 Executive summary 5

1.3 Purpose of the report 5

1.4 Background 6

1.5 Emerging trends and growth drivers 6

2 ILLUSTRATION OF THE ADMINISTRATIVE SET UP 8

2.1 Institutional set up 9

2.2 Cleantech Key Ministries in India 10

2.3 Cleantech Governmental programmes in India 12

3 EMERGING CLEANTECH SECTORS AND OPPORTUNITIES FOR FINNISH COMPANIES 14

3.1 RENEWABLE ENERGY 15 3.1.1 Solar 20

3.1.2 Wind 23

3.1.3 Bioenergy 27

3.1.4 Waste to energy 30

3.1.5 Small hydro 33

3.2 ENERGY EFFICIENCY 36

3.3 WATER AND WASTE WATER 42

3.4 URBAN DESIGN AND SMART CITIES 48

3.5 WASTE MANAGEMENT 52

3.6 GREEN BUILDINGS 56

4 FINANCIAL POSSIBILITIES 60

4.1 International funding 61

4.2 India 64

4.3 Finland 69

5 MAPPING THE CHANNEL OF SETTING UP BUSINESS IN INDIA 84

5.1 Cultural, social and geographical trends apart from market trends 85

5.2 Doing business in India 85 5.3 Things to keep in mind 85

5.4 Different avenues for market entry 85

6 ROLE OF COMMUNICATION FOR CLEANTECH IN INDIA 86

7 TEAM FINLAND IN INDIA 90

7.1 Introduction 91

7.2 Indo-Finnish Joint Working Group on Clean Technologies and

Waste Management under the Bilateral Joint Commission 92

8 KEY CLEANTECH INDUSTRY CONSORTIUMS AND ORGANISATIONS 94

9 OTHER CLEANTECH ORGANISATIONS IN INDIA 98

REFERENCES 100

ABBREVIATIONS 104

All figure are in Euros (1 USD = 0.73 Euro)

Content


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INTRODUCTION

1.1 Preface

Climate change has become a formidable

challenge that needs to be addressed immediately

and effectively. The responsibility lies heavily on

the shoulders of the governments, making every

policy in this area necessary and crucial. Many

governments however dither to take significant

actions due to the huge costs and complexity

related to solving these issues.

Finland has been a frontrunner in developing

technologies within the cleantech sector

for over a decade now. Finlands positive

image on environmental issues and as a

high-tech hotspot helps in promoting exports of

environmental expertise and the growth of the

sector. Finnish cleantech expertise is in high

demand internationally, and Finnish companies

have been quick to utilise the market potential.

There has also been strong governmental

support to boost cleantech growth, says

Mari Pantsar-Kallio, Strategy Director for the

Cleantech strategy programme at the Finnish

Ministry of Employment and the Economy. In

recent years, cleantech has been one of the

fastest-growing business sectors in Finland

with an annual growth of 15 per cent in 2012.

Combined turnover for cleantech business was

EUR 24.6 billion and annual growth 15 per cent,

according to a survey by Cleantech Finland.

Ministry of Employment and the Economy,

Government of Finland has devised a strategic

programme to increase turnover in the cleantech

sector to EUR 50 billion and t o create 50,000 new

jobs by 2020.

Finland is home to some of the worlds leading

companies and research institutions within

the area of onshore and offshore wind, green

buildings, water sector, bio-energy and maritime

cleantech. Finland also has strong competencies

in some niche areas of the smart grid and waste

management industries. Consequently, Finland

has actually managed to decouple the otherwise

strong linkage between growth and energy

consumption. The latest targets from the Finnish

Government build on the long history of green

ambitions in Finland. The Government adopted

the Foresight Report on Long-term Climate and

Energy Policy in October 2009. Setting a target to

reduce Finlands greenhouse gas emissions by at

least 80 per cent from the 1990 level by 2050 as

a part of an international effort, the report marks

out the road to a low-carbon Finland in 2050.

For these reasons it is not very surprising that

Finland has initiated the first market analysis of

the cleantech sector in emerging India. By making

this report, the ambition is to help communicate

concrete opportunities to companies of all sizes,

which can benefit their plans of expansion and

further strengthen their business strategies

in the Indian market. Additionally, this report

shows that if Finnish organisations are to takefull advantage of the potentials in the cleantech

sector in India, they not only require knowledge

on these opportunities but also require greater

collaboration with Indian counterparts.

1.2 Executive summary

The future of cleantech is changing in India. Macro

developments such as urbanisation, rapid growth,

climate change, and depletion of resources

continues to drive the need for investments in

clean technologies. At the same time, promising

industries are suddenly diminishing and new

clean industries are coming onboard to drive the

future growth for clean technologies.

This report will endeavour to uncover the areas

for cleantech growth in the near future in India.

It will explain how the key cleantech industries

will develop over the coming years. This would

help not only to understand where companies

should focus and how they should react in order

to maximise the value from the industries, butalso guide decisions related to new technology

deployment.

1.3 Purpose of the report

The report endeavours to capture the Indian

cleantech market as a whole. The focus is to

understand developments in the market, where

companies should concentrate their efforts, key

underlying drivers in the industries and mapping

financial tools available to boost businesses.

Additionally, gathering of knowledge in each

industry and market has enabled the creation

4 Cleantech Handbook India

CLEANTECH HANDBOOK INDIA

5Cleantech Handbook India

Introduction


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of several growth opportunities. The analysis

across growth sectors, combined with macro

developments, has given unique insights into

how the dynamics of the markets evolve and

what mechanisms and traits are necessary

from a general perspective to capture the

future growth.

1.4 Background

India represents a key market for clean technology

companies as it is investing billions in this sector.

The objective of the Indian Government is tofoster a second Green Revolution. The Indian

environment market is estimated to be growing

at 9 per cent per annum. The US and Western

European countries are the leading source of

imports of environmental technologies into India.

Foreign Direct Investment (FDI) in environment

equipment and services is allowed under the

automatic route with up to 100 per cent foreign

equity holding. Thus, the Indian market offers

strong business prospects for foreign investors.

Indias growing economy and surging demand

for clean power to strengthen energy security

and reduce pollution, as well as ongoing sector

reforms, is making India one of the most att ractive

destinations in the world for environmentally-

friendly investments, as per an ADB report.

1.5 Emerging trends andgrowth drivers

Governmental Regulations: India is

becoming more active today with an emphasison implementation of regulations. With a

more active media and awareness of people

towards environment, India is driven towards

adopting a pro-environment stance in all its

development strategies.

Depletion of Natural Resources: With coal

reserves depleting or more available in dense

forest locations where current environmental laws

forbid mining, and with the depleting availability

of water for mans use, there is immense pressure

on natural resources as the human population

and urbanisation increases. There is an urgent

need to protect the available resources.

Adopting Newer & Cleaner Technologies:Theadoption of newer and cleaner technologies will

help India in leapfrogging into the sustainable

growth pathway as the Indian economy grows at

an unprecedented rate.

Man-Environment Conflict:There is an increasing

importance given to the voice of the local

communities that reside on or near the natural

resources. The development of industry in these

regions has led to conflict between the need

for development to meet the power, water and

other needs of a growing urban population,

versus the need to protect the environmental

resources that rightfully belong to these

local communities.

Strong Economic Growth:The Indian economy

is growing strongly at 4-5 per cent plus annually

and is one of the fastest growing economies in

the developing world today.

Global Climate Negotiations: The current

global negotiations on climate change have putpressure on rapidly developing economies like

India to adopt green technologies and not repeat

the unsustainable mistakes of the past.

Strong fundamentals driving Indias economy

Fourth largest economy in the world when adjusted for purchasing power parity

Projected GDP growth (2013-2014): 5.5 per cent (RBI)

Euro 0.72 trillion projected infrastructure investment in next five years

Large domestic market:

560 million consumers in 20-49 age group expected by 2015

Fifth largest consumer market by 2025

Increased disposable incomes & changing lifestyles

Human capital:

Third largest pool of scientific & technical manpower

2,00,000 engineering graduates annually

Huge manpower base (1.2 billion people)

Over 500 universities (20,000 colleges)

Large English speaking population




Introduction


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ILLUSTRATION OF THEADMINISTRATIVE SET UP

India is highly fragmented and complex. Home

to many distinct cultures and 22 languages

recognised by the countrys constitution, it is made

up of 28 states and seven union territories marked

by economic diversity. Regulatory environments

and governance standards differ across states

and territories, and power is increasingly being

devolved to the state level. The foll owing section

will briefly introduce the administrative set up of

the Indian Government and the roles of different

ministries to develop the cleantech sector.

Institutional set up




Illustration of the Administrative Set Up


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Cleantech Key ministries in India

Mi nistry I ndustrySector

About Responsibilities Programmes WebAddress

New andRenewableEnergy

Renewableenergy

Developsand spreadsout new andrenewableenergysolutions tosupplementthe energyrequirements of

the country

Facilitateresearch, design,development,manufactureand deploymentof new andrenewableenergy systems/devices for

transportation,portable andstationaryapplications inrural, urban,industrial andcommercialsectors

1.Grid-interactiverenewablepowerprojects

2. Programmeon BatteryOperated

Vehicles,MNRE

www.mnre.gov.in/

WaterResources

Watermanagement

All mattersboth generaland technicalrelating to thedevelopmentandmanagement ofwater resourcesin the countryincluding wateruse efficiency,com

Responsible fordevelopment,conservation andmanagementof water asa nationalresource andoverall nationalperspective ofwater planningand coordination

NationalWaterFrameworkLaw

NationalWater Policy

wrmin.nic.in/

Science andTechnology

Science andTechnology(S&T)

Plays a role inorganising,coordinatingand promotingS&T activities inthe country

Promoting andsupportingnew areas oftechnologyintegrationincluding

cleantech

ClimateChangeProgramme,WaterTechnologyand Solar

EnergyResearchInitiativeProgramme

www.dst.gov.in/

UrbanDevelopment

Urban design,sustainableurbanfrastructure

Formulationandadministrationof the rules andregulations andlaws relatingto the housingand urbandevelopment

Formulatingpolicies,supportingprogrammes,monitoringprogrammesso far as theyrelate to urbandevelopmentconcerning allthe issues in thecountry

JNNURM,NationalMission ofSustainableHabitat

moud.gov.in/

Ministry IndustrySector

About Responsibilities Programmes WebAddress

Environmentand Forests

Environment,climatechange andforestry

Planning,promotion,coordinationandoverseeing theimplementationof Indiasenvironmentaland forestrypolicies andprogrammes

Implementationof policies andprogrammesrelating toconservation ofthe countrysnatural resources

TheSustainableLand andEcosystemManagement(SLEM)Programme;

ClimateChangeProgrammeFund

envfor.nic.in/

Petroleum &Natural Gas

Petroleumindustry

Explorationand productionof oil andnatural gas,their refining,distributionand marketing,import,export, andconservationof petroleumproductsand LiquifiedNatural Gas

Oil refineries,includingLube plants,exploration andexploitationof petroleumresources,including naturalgas

StrategicCrude OilStorage;EthanolBlended PetrolProgramme

petroleum.nic.in/

Power Energyefficiency

Perspectiveplanning, policyformulationin regardsto thermal,hydro powergeneration,transmissionand distribution

Administrationof the ElectricityAct, 2003,the EnergyConservationAct, 2001

1. NationalMission forEnhancedEnergyEfficiency NMEEE

2. EnergySavingsCertificateTrading

3. Carbon

Finance EnergyEfficiency

www.powermin.nic.in/

EarthSciences

Environmentalprotectionand climatechange

Provideservices inforecasting themonsoons andother climateparameters,ocean state,earthquakes,tsunamisand otherphenomenarelated to earthsystems

The mainresponsibilityis to look afterAtmosphericSciences, OceanScience andTechnology andSeismology inan integratedmanner

1. MarineLivingResource

2. CoastalZone andIsland

3. OceanObservationandInfromationServices

dod.nic.in/






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Cleantech Governmental programmes in India

Programmes KeyStakeholder/s

Key Objectives Technology Focus

NationalAction Planon ClimateChange(NAPCC)

Prime MinistersCouncil onClimate Change

Ministry ofEnvironment andForests

National Solar Mission

National Mission for EnhancedEnergy Efficiency

National Mission on SustainableHabitat

National Water Mission

National Mission for Sustaining the

Himalayan EcosystemNational Mission for a GreenIndia

National Mission for SustainableAgriculture

National Mission on StrategicKnowledge for Climate Change

National Bio-energy Mission

Renewable energytechnology development

Energy efficiencytechnology integrationin industries, buildings,urban planning

Waste and watermanagement and

recyclingPollution control

Electric vehicles

RuralElectrificationPolicy(RenewableEnergy)

Prime MinistersCouncil onClimate Change

Ministry ofEnvironment andForests

Promote renewable sources ofenergy with a high focus on solarenergy

Promote energy efficiency andefficient use of natural resourcesincluding water

Afforestation across Himalayanregion and other parts of India

Access to funds for private sectorfor developing environmental-friendly technologies

Creating affordable solarpower systems

Producing power fromwaste

Geospatial technology forprecision agriculture

Improve automotive fueleconomy

EnergyConservationAct

Bureau of EnergyEfficiency,Ministry ofPower

Reduce energy consumption indifferent sectors of the economy

Promote energy efficient

equipmentIncrease energy awareness

Energy savingtechnologies inappliances, householdelectricals and otherindustrial machinery

Energy efficient buildingconstruction

RenewableEnergy Policy

Ministry of Newand RenewableEnergy

Increase share of new andrenewable energy in the fuel mix

Increase per capita energyconsumption to global average

Provide electricity to rural andremote areas through renewablesources

Reduce dependence on energyimports and promote energysecurity through a diverse andsustainable fuel mix

Indigenous design,development andmanufacture of renewableenergy systems

Focus on solar, wind,hydel, biomass, waste,fuel cells, hydrogen, fuelcells, geothermal and tidal

Programmes KeyStakeholder/s

Key Objectives Technology Focus

BiodieselPurchasePolicy

Ministry of RuralDevelopment

Reduce environmental impact ofthe transportation sector

Reduce oil imports and promoteenergy security

Encourage production of Jatropha

Biodiesel technology

EthanolBlending ofGasoline

Ministry ofPetroleum andNatural Gas

Reduce environmental impact ofthe transportation sector

Reduce oil imports and promoteenergy security

Encourage indigenous energysources

Automotive fuel economy

EnergyConservationBuildingCode

Bureau of EnergyEfficiency

Reduce energy consumption inbuildings sector

Promote energy efficiencyin building construction andmanagement

Green constructiontechnologies

Bachat LampYojana

Ministry ofPower

Direct reduction of Co2emissions

through efficient equipment

Reduction in energy demand

Energy efficient CFLs andlighting devices






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14 Cleantech Handbook India 15Cleantech Handbook India

EMERGING CLEANTECHSECTORS AND

OPPORTUNITIES FORFINNISH COMPANIES

3.1 Renewable energy

Renewable energy has enormous potential

and is becoming an increasingly significant

part of Indias energy mix. With vast potential,

renewable energy is no longer seen merely as

an alternate energy source to conventional

energy, but as a critical element in the pursuit of

key policy objectives. It enhances Indias energy

security by diversifying the countrys energy mix

and reducing dependence on imported fossil

fuels. Renewable power represents about 12 per

cent of the total installed electricity generationcapacity in India. Investment in renewable

energy was Euro 4.96 billion in 2012.

Government incentives

Some of the other key incentives provided by

the Government of India for the renewable

energy industry are:

Feed-in-tariffs for both wind and solar energy

Up to 80 per cent accelerated depreciation

for renewable energy investments

Preferential tax rate of 15 per cent, instead

of the standard 30 per c ent

Exemption from central sales tax and customs

duty concessions on soft loans for the import

of material, components, and equipment

used in renewable energy projects

Establishment of the National Solar Mission

(NSM) which aims to deploy 20 GW of

solar energy by 2020

Soft loans for setting up renewable

energy enterprises

Tax holiday for 10 years for biomass

power projects

Investments

The recent announcement of the Prime Minister

of India during the Clean Energy Ministerial

meeting in April 2013 in New Delhi to double

the renewable energy in the next five years

would attract an investment of over 4,000 MW

per annum.

Foreign Direct Investment (FDI)

The Indian Government allows 100 per cent FDI in

the renewable energy sector and has put in place

favourable policies to attract foreign companies

into the sector.

CLEANTECH HANDBOOK INDIA Emerging Cleantech Sectors and Opportunities for Finnish Companies


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Solar PV

Energy storage

Improvements in module technology, including higher density and lighter weight modules

Solar Thermal

Increased R&D

Hybrid power systems

Non-grid solar thermal applications

Solar building technology applicationsSolar cooling and solar steam generation systems for industrial process steam applications areemerging opportunities where Finnish technologies can play an important role

High temperature solar thermal applications

Wind

Importing the latest technologies with higher capacities (over 1-2 MW systems)

Wind machines for low wind regimes

Better designed rotor blades, gear boxes, and control systems

Small wind machines for decentralised power generation, wind PV hybrid systems, and wind millsfor water-pumping applications are also largely untapped markets

Small Hydro Power

Low head power generation systems

High efficiency systems

Portable micro-hydro systems

Bioenergy

R&D

High pressure boilers

High power gas turbines

Combined cycle, process systems and equipment

Advanced biomass gasification and combustion technologies

High pressure cogeneration systems, cofiring and blending technologies, and cost-effective handling

Storage and drying of biomass

There is a need for small biomass (1-3 MW) in rural areas and larger capacities in cogeneration insugar mills (bagasse) and pulp and paper factories

Outlook

Developing renewable energy can help India

increase its energy security, reduce adverse

impacts on the local environment, lower its carbon

intensity, contribute to a more balanced regional

development, and realise its aspirations for

leadership in high-technology industries.

Table 1: List of Opportunities for Finnish Companies in RE

Solar PV

Thin film technologies

Improvements in conversion efficiencies

Grid interactive projects

Joint ventures with global PV manufacturers



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Waste to Energy

High rate biomethanation systems

Incineration and sanitary landfills

Waste collection and segregation

Financing build own transfer and build own operate systems

Table 2: Renewable Energy Stakeholder Matrix

Groups andIndividuals

How can theyhelp us?

How can theyblock us?

What wouldthey wantfrom us?

What do wewant fromthem?

Research andDevelopment(R&D)/Technicalinstitutions

Engage in technologydevelopment/indigenisation effortsManpowerdevelopment

Misuse ofassistance/subsidy

SkilldevelopmentFinancialsupport

Incubating newtechnologies

Equipmentmanufacturersand technologyproviders

Product marketingpartners

TechnologyinnovationAwareness creationamong users

Misuse ofassistance/subsidy

Financialsupport

Providing highquality products

State government Promotion ofrenewable energyprogramme at thestate level throughconclusive policies

Lack of adequatesupport for RETs

Lack of appropriatefund allocation

Inefficiency indelivery

Financialsupport

Timely release

Skilldevelopment

Facilitatingeffectiveimplementationof RE projectsand initiatives

Regulators(CERC, SERC)

Formulatingcondusive regulationthat will support theRE policy initiative bythe ministry

Throughregulations thathave inadequateenforcementmeasures

Cooperation Workingtogether atthe time offormulation ofpolicies andregulations

Different ministriesof Government ofIndia

Promotion ofrenewable energyprogramme incomplementaryprogrammes

Lack of adequatesupport for RETs

Sectoral interestcan block/hampergrowth

Convergenceof inclusivegrowth

Facilitating largescale off-gridapplicationssuch asSWH, solarcooking, solarlighting, solarairconditioning,kitchen wasteprocessing,green buildingand campusesin theirestablishments

Groups andIndividuals

How can theyhelp us?

How can theyblock us?

What wouldthey wantfrom us?

What do wewant fromthem?

Indian RenewableEnergyDevelopmentAgency (IREDA)and other financialinstitutions/partner bank

Concessionalfinancing for REprojects

By not financingthe RE projects dueto high cost

Financialsupportthrough forinstanceguarantees

Large scalefinancingRE projectsthroughconcessionalfunds

InternationalFinancialInstitutions

Source of low-costfunds

Lack of support Supportingparticularly off-grid initiatives,and ruralelectrificationefforts byprovidingdebt funds atlow-cost

Developers/investors (Includingforeign)

ImplementingRE projects andProgrammes

Innovation inbusiness model forinclusive growth

Availing financialsupport from theministry but notimplementingprojects

Unfair practices

Sub-optimalmonitoring ofproject

Financialsupport

Conducivepolicy &regulatoryframework

Implementationof projects

Co-creatingdiligentsustainablebusinessmodel f

NGOs Spreading awareness Factious NGOsspreading ofmisinformation

Financialsupport

Awarenessgeneration

Lobbying withgovernmentagencies

End Users Large scale use ofRETs and services

Non-cooperationtowards usageof RE devices on

account of:Lack of awareness

High-cost

Utility factor

Awarenesscreation

Cost of

such devicesbeing madeavailable atthe samecost or lowercost thanconventionalsystem

Increased usageand promotionof RE systems

and devices



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Table 3: Institutional Framework for Renewable Energy

Level Central Government MNRE CERC

Ce nt re Deve lop nat ionalelectricity tariffpolicies which alsocovers renewableenergy

Provide fiscalincentives forpromotingrenewable energy

Develops national renewableenergy laws

Sets technical standards forrenewable energy

Conducts resource assessmentand support R&D for renewableenergy

Promotes effective use ofinformation technologyfor renewable energy,manages database

Reviews the programmes tounderstand their effectivenessand efficiency

Sets guidelines forfeed-in-tariff designfor different renewableenergy technologies

Regulates the regionalelectricity cooperationmechanism

Regulates interstateopen access and third

party sales

Level State Government State Nodal Agency SERC

Stat e Develop state levelrenewable energypolicies

Conducts resource assessmentfor various renewable energysources

Allocates renewable energyprojects and progress monitors

Provides facilitation service toproject developers

Facilitates clearances and landacquisitions

Creates awareness andpromotes renewable energyadoption

Develops feed-in-tariffmethodologies

DeterminesRenewable PurchaseObligation (RPOs)and enforcementmechanisms

Sets regulations oninterstate wheeling,open access andthird-party sale

3.1.1 Solar

Background

India is a country that has tremendous solar

energy potential. The country has close to

300 sunny days per year and receives an

average hourly radiation of 200 MW/sq.km. This

translates to a potential of more than 100 GW of

solar energy. Indias current installed capacity of

1,044 MW accounts for only 0.5 per cent of its

total power generation capacity.

Government initiatives todevelop the sector

A major initiative of the Government of India and

state governments, the Jawaharlal Nehru National

Solar Mission (JNNSM) was launched in January

2010 with the objective of leveraging on the

countrys vast solar energy potential by creating

a policy and regulatory environment that enables

rapid and large-scale capital investment in solar

energy. Solar mission incentivises developers by

offering them preferential tariffs and making

it mandatory for utilities to meet Renewable

Purchase Obligations (RPOs).

Table 4: JNNSM-Phase-wise Targets and Objectives

(Source: Ministry of New and Renewable Energy, RRECL, GEDA)

Parameters Phase 1 ( 2010-13) Phase 2 ( 2013-17) Phase 3(2017-22)

Solar deployment Scaling up Rapid scaling up

Level Driving down cost

Promoting off-gridapplication

Validating social and

economic viability

Scaling up various

Validatedapplication

Rolling out

business models

Reducingsolar powercost toachieve gridtariff parity

by 2022

T

A

R

G

E

T

Utility, grid power,including roof top (MW)

1,100 4,000-10,000 20,000

Off-grid installation(MW)

200 1,000 2,000

Solar collections (millionsq mt.)

7 15 20

Drivers and challenges

Drivers Challenges

De ma nd side growth Suppl y side g rowth L ower ing the cos t of manu fac ture

Ris ing energy needs Over dependence on coal Non-uniform supply across states

Falling costs Over dependence on oilimports

Closer industry governmentcooperation

Persistent energy deficit Heavy subsidies for companies Collaborative goal-driven R&D

Heavy governmentsubsidies

Huge rural de mand Compl icated financ ing inf rast ructure

Inclination for cleantechnology

Abundant sun rays Sporadic consumer awareness

Lack of standards

Indias unique proposition

Economic Value: The generation of solar

electricity mitigates peak energy costs and

brings total energy bills down

Geographical Location: India being a

tropical country receives adequate solar

radiation for 300 days, amounting to

3,000 hours of sunshine equivalent to over

5,000 trillion kWh

Power Shortage: Due to shortage

of electricity, power cuts are common

throughout India and this has adversely

affected the countrys economic growth.

Solar energy can fulfil the energy demand

with finesse



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Table 5: Opportunity Snapshot for Finnish Companies

Solar Thermal Solar PV

Description The most common solar thermalapplications in India are off-grid andinclude solar water heating, air heatingand cooling, solar cookers, and passivearchitecture to heat and cool buildings

The main types of solar PVapplications types for India arecommunity lighting systems, lanterns,street lights, fixed home lightingsystems and water pumps

GrowthForecast

For solar CSP and PV together, National Solar Mission attempts to reach aninstalled capacity of:

By 2013: 1-2 GW

By 2017: 4-10 GW

By 2020: 20 GW

Large areas of the Thar Desert have been set aside for solar power projects,sufficient to generate 700 to 2100 GW

Government is expected to spend Euro 13.76 billion until 2022

Cost of power generation - and trends in t he same over years

Current cost of production (after bidding) Euro 0.14/kWh. This includes O&M,amortised/depreciated capital costs, loan repayment costs, and other expensessuch as insurance

Costs of production expected of solar PV power plants in the near future:

By 2012 Euro 0.14/kWh

By 2015 Euro 0.11/kWh

2020 Euro 0.07/KWh

PolicyMeasures

Several support schemes are available in theform of generation based incentives capitalsubsidies, financial support for detailedproject report, subsidies for solar thermaltechnology adoption to increase energyefficiency in buildings. Some states offerrebates on electricity rates for householdswith solar water heating systems

80 per cent accelerated depreciation,exemption from excise duties, lowimport tariffs on raw materials andcomponents, soft loans from IREDAand other nationalised banks, capitalsubsidies and training programmes

Financing The three main financing options for implementing solar PV captive power plantsare debt financing, asset financing and corporate financing

IREDA, PFC, commercial banks and financial institutions also offer soft loans,loans with interest rates lower than market interest rates

Opportunities Inc reased R&D

Hybrid power systems

Off-grid solar thermal applications

Solar building technologies

Solar cooling and steam generationsystems for industrial processes

High temperature solar thermalapplications

Thin film technologies, includingprocess technologies, low-costsubstrates, large size cell/modules

Technologies to improve conversionefficiency

Grid-interactive technologies

Improved solar PV technologies

Energy storage

Improved module technologiesincluding light weight and higherdensity modules

Solar Thermal Solar PV

Some KeyFacts

India averages 300 days of sunlight per year, which translates to 100 GW ofsolar energy

Solar PV conversion efficiency currently remains at 15 per cent

In the last decade, the cost of PV has decreased by a factor of 10 in relation toproduction of components; however, there are still cost barriers t hroughout thesupply chain

The average hourly solar radiation is about 200 MW/sq. km.

Indias current solar capacity of 1,044 MW, accounts to only 0.5 per cent of itstotal power generation capacity

By coupling countrys national policies with those at the states, JawaharlalNehru National Solar Mission aims to install 20 GW of solar power by 2020

Table 6: List of Key Organisations in India

Research Institute/NGO Mainline ofActivity

Website

Solar Energy Centre (SEC) Solar energytechnologies

www.mnre.gov.in/sec/sec-objective.htm

Solar Energy Society of India(SESI)

Renewable energy www.sesi.in/

Solar Energy Corporation ofIndia (SECI)

Solar energytechnology

www.mnre.gov.in/centers/seci/

Conclusion

Solar energy possesses tremendous potential in

bridging Indias energy demand-supply gap in

the future. Some of the immediate actions to

enable growth are efficient implementation of

renewable energy certificates, usage of carbontrading as a source of revenue, development of

off-grid usage in various applications such as

cellular towers and encouraging localised mini

grids in areas that lack connectivity today.

3.1.2 Wind

Background

India has long started its journey to become one

of the largest wind power producers in t he world.

India is expected to have 89 gigawatts (GW) of

installed wind power capacity by 2020 and att ract

Euro 11.95 billion annual investment according

to Indias Wind Energy Outlook 2012. According

to official estimates made by the Ministry of New

and Renewable Energy (MNRE), Indias wind

power capacity stands at 102,000 MW. Indias

total installed capacity today is close to 18,000

MW which is the fifth largest in t he world.

Government initiatives topromote the sector

The growth in the renewable energy market is very

crucial for the Indian economic growth. In its 12th

Five Year Plan (2012-17), the Indian Government has

set a target of adding 18.5GW of renewable energy

sources to the generation mix out of which 11GW

is the wind estimation and rest from renewable

sources like solar 4GW and others 3.5GW.

Due to all these considerations, the government

has come up with many incentives and subsidy



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structures to encourage the growth of wind

energy sector in India.

100 per cent FDI investment is allowed in the

field of renewable energy sector

From April 1, 2012, the accelerated

depreciation of 35 per cent in the first year

has been allowed. Here the allowed normal

depreciation is 15 per cent, and additional

20 per cent deposition is allowed for projects

in the power sector

Under the Income Tax Act, Section 80IA,

companies are exempted of income tax for

the sale of power during the first 10 years

Forest lands are allotted or leased out for

developing wind power projects

Discounted customs duty of only 5 per

cent is given on some of the wind power

machinery components

Indian renewable energy development

agency is actively working towards

institutionalising the financing in this sector

Heavy reduction of VAT or value-added tax is

being offered by many states, i.e. From 12.5

per cent, it has been reduced to 5.5 per cent

Excise duty is exempted in the wind sector

Centre of Wind Energy Technology has been

established for institutionalising training,

R&D, resources assessment and testing, and

also for awarding certification to various

wind energy products

Exemptions are being offered by the state

governments on duty for electricity

13 states allow privileged feed-in tariff on

wind energy production

Provisions have been made for favourable

banking, wheeling, and for sales of wind

power by the third parties

RPS or the Renewable Purchase Specification

have already been implemented in six states,

which is in accordance to the Electricity Act

of 2003

REC or the renewable energy certificate

has been set up for the purpose of

interstate trading

Concessional surcharges on cross subsidy

are levied for the wind power sales by the

third parties


Drivers Challenges

Aggressive wind energy capacity addition plansfor the 12thFive Year Plan (2012-17)

Variable output of aggregated wind capacity

Re-powering wind farms The challenge of integration

Offshore wind installation opportunity The challenge of new grid infrastructure

Collaborative goal- driven R&D Wit hdrawal of the AD and GBI schemes

Rising energy needs Non-payment to wind energy developers/ generators

Incl ina tion for cl ean tec hnology Non- remunerat ive inc re ase in tar if f

Over de pende nce on oi l impor ts Increa se in cros s- subs idy c ha rge s


Geographic Location and Wind Potential:

India is blessed with 7,517km of coastline

and its territorial waters extend up to 12

nautical miles into the sea. It is estimated

that with the current level of technology,

the onshore potential for utilisation of

wind energy for electricity generation is of

the order of 65,000 MW

World Market Share: In 2012, India

was the fourth largest wind market in

the world, with around 1,700 MW new

capacity addition

Government Support and Policies:

Several states such as Karnataka, Tamil Nadu

and Andhra Pradesh have come up with

renewable energy policies

Installed Capacity: Wind Energy holds

the major portion of 70 per cent among

renewable and continued as the largest

supplier of clean energy. Share of wind is

19GW (March 2013) of 27.5GW of Indias

RE installed capacity

Wind Energy as Job Generator: Wind

energy utilisation creates many more

jobs than centralised, non-renewable

energy sources


Wind Energy

Description Wind power can be used both on and off-grid to produce electricity, though theintermittent nature of wind could cause difficulty in grid stability. Wind power is oneof the most RE technologies with over 74,000 MW installed capacity globally

GrowthForecast

According to India wind energy Outlook 2012, wind energy generation capacityin India could more than quadruple to 89GW by 2020

This will attract investments of over Euro 11.95 billion, create over 179K jobs andoffset 131 approximately million tonnes of carbon dioxide emissions

Technology and innovation are swiftly moving wind energy towards grid parityand it wont be long before it can directly compete with even coal-based power;perhaps even as early as 2015



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Wind Energy

Financing Government incentives include a feed-in-tariff, exemptions from excise duties,and tax exemptions for infrastructure-related projects. Additionally, the states thathave created RE portfolio standards have helped accelerate the wind sector. Thereis a burgeoning interest by investors like Goldman Sachs, Black Stone, IDFC in theprivate sector

IREDA, PFC, REC commercial banks and financial institutions also offer soft loans,loans with interest rates lower than market interest rates

Opportunities Importing the latest technologies with higher capacities (over 1-2 MW systems)

Wind machines for low wind regimes

Better designed rotor blades, gear boxes, and control systems

Small wind machines for decentralised power generation, wind PV hybridsystems, and wind mills for water-pumping applications are also largelyuntapped markets

R&D for new research into wind energy

Some KeyFacts

Indias wind energy potential is now considered to be at least double the originalestimate of 48.5GW

Wind is expected to continue to be the mainstay of renewable energy in India inthe short-term

Capital cost in India is the lowest in the world and India is emerging as thefastest growing supply chain hub with many industries choosing for in-housemanufacture of towers, blades, generators, convertors, etc.

GBI scheme has been reintroduced in the Union Budget 2013-14

With increasing participation of Independent Power Producers (IPPs), the projectdevelopment model is likely to shift from turnkey to a self-developed one

Delayed payment from distribution companies is impacting long-term planningand financial closure of projects

Lack of enforcement of RPOs might impact long-term growth


Research Institute/NGO Main-line of Activity Website

Indian Wind Power Association Wind power development www.windpro.org

Indian Wind TurbineManufacturers Association

Research and development www.indianwindpower.com

Indian Wind Energy Assoc ia tion Wind energy outreach www.inwea.org

Centre for Wind EnergyTechnology (C-WET)

Wind energy rese arc h www.c we t. tn .ni c. in

Winrock International India Research on energy andclimate change

www.winrockindia.org

World Institute of SustainableEnergy

Knowledge management andconsultancy

www.wisein.org

Conclusions

Indias present generation capacity is about

200,000 MW and wind energy could amount

to 100,000 MW by 2030 if the right resources

(and more importantly, energy policies)

are developed. India can develop massive

commercial wind farms to harness the strong

onshore coastal area and offshore wind to

boost the countrys supply of clean renewable

energy. But, to tap this vast resource,

India must develop and implement smartbusiness models and favourable policies as

quickly as possible.

3.1.3 Bioenergy

Background

Bioenergy is one of the most promising alternatives

that can help meet all the above needs. It also holds

a great potential to meet the rural energy needs of

the country. India has formulated and implemented

a number of innovative policies and programmes

to promote bioenergy technologies. However,

according to some preliminary studies, the success

rate is marginal compared to the potential available.

This limited success is a clear indicator of the needfor a serious deployment of bioenergy technologies

and expertise on a large scale.

Government initiatives to

develop the sector:

1. The Ministry of New and Renewable

Energy (MNRE) provides Central Financial

Assistance (CFA) in the form of capital

subsidy, exempted from custom and

excise duty on machinery and financial

incentives to the biomass energy projects

in India.

2. The government has introduced new

programmes and policies to strengthen the

growth of this sector like:

National Policy on Biofuels:

Introduced in 2010, the policy

encourages the use of alternative fuel

to supplement conventional transport

fuels (gasoline and diesel for vehicles),

and proposes a target of 20 per cent

of bioethanol and biodiesel blending by

2017. The government has mandated

a 5 per cent ethanol blending rate for

domestic oil marketing companies.

National Bioenergy Mission: Initiated

by the Ministry of New and Renewable

Energy in association with state

governments, public & private sectors and

other stakeholders to promote ecologically

sustainable growth while addressing

Indias energy security challenge. It will also

constitute a major contribution by India to

the global effort to meet the challenges of

climate change.



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Drivers Challenges

Improved technologies inclusion Limited capacity to assess, adopt, adapt andabsorb technological options

New innovative policies and programmes by thegovernment

Perennial availability of biomass

Avoids food versus fuel debate Fragile supply chain

Rising energy needs Lack of biomass storage and transportationfacility

GHG mitigation Lack of mechanisation in Indian agriculturesector

Over dependence on oil imports


A biomass energy system has some unique

characteristics making it the most attractive

renewable option especially for rural areas:

Generating Additional Rural Income:

Farmers can derive huge benefits from

biomass-based distributed power generation

systems. Direct benefits would result from

sale of surplus biomass which is otherwise

wasted and direct generation of employment

in the biomass logistics management system

and power plant

Utility Benefits: The key strength of

the utility in the development of rural

energy access is the presence of resources

(manpower and infrastructure) in the

rural areas

Bioenergy

Opportunities For development and import of high pressure boilers, high power gas turbines,combined cycle, process systems and equipment

Advanced biomass gasification and combustion technologies

High pressure cogeneration system

Co-firing and blending technologies

Cost-effective handling, storage and drying of biomass

Technology for production of ethanol like azeotropic distillation technology,molecular sieve technology, membrane technology

Some Key

Facts

Biomass-based power can be generated on a distributed basis and short lead

times can enable rapid capacity additionGrowth in the sector is likely to be driven by captive biomass and CHP application

Competitive use of biomass is a constraint in maintaining its assured availabilitywith reasonable cost structure

Feedstock chain management is difficult due to the unorganised nature of the market

More than 70 per cent of the countrys population depends upon biomass for itsenergy needs


Research Institute/NGO Mainline of Activity Website

Petroleum Conservation ResearchAssociation National Biofuel Centre

Bioenergy research anddevelopment

www.pcra-biofuels.org/utt.htm

International Crops ResearchInstitute for the Semi-Arid Tropics(ICRIT-SAT)

Conducts research into drylandcrops, including those that canserve as feedstocks for biofuels

www.icrisat.org/

Centre for Indian Bamboo Resource& Technology (CIBART)

Feedstock project developmentand implementation, technicalconsultancy and turnkey serviceson all aspects of bamboo

www.cibart.org/

Biodiesel Association of India Industry association for thebiodiesel industry

www.bdai.org.in

The Energy and Res ou rce s Inst itute B ioe ne rgy re sea rch www.ter ii n.org

Ind ian B iogas Assoc ia tion Assoc ia tion for the Indianbiogas industry

www.biogas-india.org/


Bioenergy

Description Biomass-based energy generation has significant potential to contribute to Indiasgrowing energy needs. Technology has also significantly advanced and is being madeavailable locally along with a host of financial incentives and policy measures being

put into place to accelerate the investment in this sector.

GrowthForecast

More than 540 million tonnes of crop and plantation residues are produced everyyear in India which has potential to generate 16,000 MW of grid quality power

In addition, about 5,000 MW of power can be produced, if all 550 sugar mills inthe country switch over to modern techniques of cogeneration

The estimated biomass power potential is about 21,000 MW

Financing Government subsidies exemptions from customs and excise duties, income taxholiday up to 10 years, general sales tax: exemption is available in certain states

Bioenergy technologies and projects would be allowed 100 per cent FDI

IREDA, NABARD, SIDBI, REC commercial banks and financial institutions also offersoft loans, loans with interest rates lower than market interest rates

Increased investment flowing from private sector

Conclusion

India has formulated and implemented a

number of innovative policies and programmes

to promote bioenergy technologies. Despite

the operational issues involved, biomass-based

plants provide higher returns compared to

wind energy. This potential is also reflected in

many Independent Power Producers strategy

to diversify their renewable energy portfolio

amongst wind and bioenergy. Going forward,

it is expected that modern risk management

techniques like forward contracts, better

assessment of biomass resources and regulatory

support of SERCs by providing competitive

and stable preferential tariff will help in

better harnessing the bioenergy potential

of the country.



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3.1.4 Waste to energy

Background

Indias growing energy deficit is making

the central and state governments keen on

alternative and renewable energy sources. Waste

to energy is one of these, and it is garnering

increasing attention from both the central

and state governments. The problems caused

by solid and liquid wastes can be significantly

mitigated through the adoption of environment-friendly waste to energy technologies that will

allow treatment and processing of wastes before

their disposal. These measures would reduce

the quantity of wastes, generate a substantial

quantity of energy from them, and greatly reduce

environmental pollution.

Urban waste includes municipal solid waste, sewage

and fecal sludge, whereas industrial waste could be

classified as hazardous industrial waste and non-

hazardous industrial waste.


MNRE has promoted the national programme for

the recovery of energy from industrial and urban

wastes. Since this programme seeks to promote

setting up of waste to energy plants, various

financial incentives and other eligibility criteria

have been proposed by the MNRE to encourage

the participation in waste to energy projects.

They are listed herewith:

Financial assistance is provided by way of

interest subsidy for commercial projects

Financial assistance is provided on the capital

cost for demonstration projects that are

innovative in terms of generation of power

from municipal/industrial wastes

Financial assistance is provided for power

generation in STPs

Financial incentives are given to municipal

corporations for supplying garbage

free of cost at the project site and for

providing land

Incentives are given to the state nodal

agencies for promotion, coordination and

monitoring of such projects

Financial assistance is given for carrying out

studies on waste to energy projects, covering

full costs of such studies. Assistance is given

in terms of training courses, workshops and

seminars and awareness generation

Waste to energy taskforce has been

constituted by the Planning Commission to

examine the technological aspects of Waste to

Energy (WTE) projects started by civic bodies.

The aim is to develop a PPP framework model

for waste to energy projects


Profitability:If the right technology is employed

with optimal processes and all components of

waste are used to derive value coupled with

government incentives, waste to energy could be

a profitable business.

Government Incentives: The Government of

India already provides significant incentives for

waste to energy projects, in the form of capital

subsidies and feed-in tariffs.

Related Opportunities:Success in municipal solidwaste management could lead to opportunities

in other waste such as sewage waste, industrial

waste and hazardous waste. Depending on

the technology/route used for energy recovery,

products such as charcoal, compost, nutrient rich

digestate (a fertilizer) or bio-oil can be obtained.

These co-product opportunities will enable the

enterprise to expand into these related products,

demand for which are increasing all the time.

Emerging Opportunities: With distributed

waste management and waste to energy

becoming important priorities, opportunities exist

for companies to provide support services such asturnkey solutions.

Drivers and Challenges

Drivers Challenges

Waste output per capita is growing as much as1.33 per cent per year

Waste to energy is a new concept in India

55 million tonnes of municipal solid waste and38 billion litres of sewage every year in urban India

Lack of proven indigenous technology

Lucrative incentives offered by the government Cost are high as technologies are still imported

Rising energy needs Lack of availability of segregated MSW nearthe plant site

GHG mitigation Lack of financial resources

Ove r depe ndence on oi l impo rt s Lac k o f gove rnment suppo rt fo r l and al lo cat ionsupply of garbage, and evaluation facilities


Waste to Energy

Description The Indian Government considers WTE to be a renewable technology, and theMNRE has developed the National Master Plan for Development of WTE in India.The MNRE lists a number of technologies for energy recovery from urban andindustrial wastes that not only reduce the quantity but also improve the quality

of waste to meet the required pollution control standards, besides generating asubstantial quantity of energy

GrowthForecast

Potential of generating energy from waste by 2030 as per MNRE Governmentof India

1500 MW from MSW

225 MW from sewage/sludge

1300 MW from industrial waste



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Waste to Energy

Financing Government support towards concessional loans from IREDA through NCEFand Grants for waste to energy projects to municipalities

Financial incentives such as subsidies on interest rates and capital costs fordemonstration projects

100 per cent accelerated depreciation and exemption from sales and excisetaxes are offered

Financial assistance to waste to energy projects are provided by MNRE, MoEFand financial institutions like IREDA, NABARD, state financial corporations andcommercial banks

International agencies supporting funding of waste to energy projects include

USAID, kfW, JBIC, GEF, IFC, ADB and the US EXIM BankOpportunities Separation of wet organic wastes

Secondary collection and storage

Recycling of wastes

Transportation and logistics

Biogas-based power generation from sludge

Production of machineries and equipment for energy recovery technologies

Incineration and sanitary landfills

Decentralised technology installations

Power generation and sale of power

Some KeyFacts

An estimated 55 million tonnes of municipal solid waste and 4,400 million cubicmetres of liquid waste are generated in urban areas of India annually with apotential of 2,600 MW of power production

The moisture content of urban MSW is 47 per cent and the average calorific valueis 7.3 MJ/kg (1745 kcal/kg)

Indian Government has proposed incentives for waste to energy projects thatwould come up through public-private partnership mode with city municipalitiesin the 12thfive year plan



National Environmental EngineeringResearch Institute (NEERI)

Energy research www.neeri.res.in

Department of Science andTechnology (DST)

Science & technology www.dst.gov.in/ scientificprogramme/t-d-solar-energy.htm

Waste to Energy Research andTechnology Council

Waste to energy project research wtert.in/

Centre for Ecological Sciences (CES),Indian Institute of Science

Energy research wgbis.ces.iisc.ernet.in/ energy/

The Energy and Resources Institute Energy research www.teriin.org

Conclusion

While the Indian Governments own figures

would suggest that the cost of waste t o energy is

somewhat higher than other renewable sources,

it should be kept in mind that waste to energy

facilities serve a dual role of waste disposal and

energy production. Although the cost per MW

of capacity may be greater than other renewable

sources, the benefits of waste management,

energy and metals recovery, and reduction of

GHG emissions need to be considered.

3.1.5 Small hydro

Background

In India, small and minimal hydro potential can

provide a solution for the energy problems in

remote and hilly areas where extension of grid

systems is comparatively uneconomical. It is one

of the least expensive and most attractive forms

of renewable energy. As on today, small and mini

hydro (hydroelectricity) capacity aggregation to

about 340 MW is in operation. W ith an estimated

potential of about 15,000 MW in India, the

government is determined to develop this sector

at a faster pace.


Until 1989, all hydropower projects were under

the administrative control of the Ministry

of Power (MoP) and the Central Electrical

Authority (CEA), while the responsibility for

execution and maintenance was with the

State Electricity Boards (SEB). Today MoP is

involved only in hydropower projects larger

than 25 MW, while the MNRE is responsible

for projects with station capacities of 25 MW

or less. There are several incentives offered by

the government, such as:

Financial assistance is provided by way of

interest subsidy for commercial projects

In several states, various additional

supporting policies are available for privatesmall hydro projects, including wheeling and

banking, buy-back of power, and allowances

for third-party sale

Incentives are given to the state nodal

agencies for promotion, coordination and

monitoring of such projects

Direct subsidies for different project costs

are available

Capital subsidies are available for

New plants between 100 kW and

25 MW implemented by the state

New plants implemented by the

private sector or Non-Governmental

Organisations (NGOs)

Renovation and maintenance of

existing plants

Watermills and micro hydro projects up

to 100 kW

In all cases, special category and northeastern

states have a higher subsidy.


Drivers Challenges

Renewable, energy security and fuel shortage Geographical surprises

GHG mitigation Land acquisition

Peaking support (as against other RE) making itcheap in the long run

Rehabilitation and resettlement

Development of remote areas Forest and environmental clearances

Poor road infrastructure

Source of revenue for states Lack of access to hydrological data



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Need and Exclusivity: Realising the fact that

mini hydropower projects can provide a solution

for the energy problem in rural, remote and

hilly areas where extension of grid system is

comparatively uneconomical, promoting mini

hydro projects is one of the objectives of the small

hydropower programme in India

Government Incentives: The Government

of India already provides significant incentives

for small hydro projects, in the form of

capital subsidies.

Community Ownership: While small hydro

projects are developed by various state agencies

responsible for renewable energy, the projects

are normally maintained with local community

participation.

Private Sector Ownership: A number of tea

garden owners and other private factory owners

have also set up such micro hydro projects to meet

their captive requirement of power.


Research Institute/NGO Main line of activity Website

International Association fromSmall Hydro (IASH)

R&D, planning, consulting onconstruction and operation

cbip.org/iash/iash.html

Indian National Hydro-powerAssociation

Promotion and development ofprojects

hpaindia.org/

Alternate Hydro Energy Centre Waste to energy project research ahec.org.in/index.html

National Hydroelectric PowerCorporation (NHPC)

Public sector enterprisewhich promote and organisean integrated and efficient

development of hydro projects

www.nhpcindia.com/

Conclusion

The Indian market for small hydropower offers

good business opportunities to international

companies. The market development has been

very positive and constant, and the applicability

and economic viability of small hydro technology

in India has been proven adequately. In order to

develop hydropower projects, foreign companies

prefer to work with an Indian partner who has

a good local network in the relevant region and

can take the lead on the purchase of land and the

approval processes.


Small Hydro

Description Some 967 small hydro projects with an aggregate capacity of 3,632 MWhave been installed in India to the end of April 2013, with 24 states announcing apolicy to invite private sector bodies to set up projects. In addition, 281 small hydroprojects with an aggregate capacity of 1,061 MW are also under construction invarious states.

GrowthForecast

Recognising that small hydropower projects can play a critical role in improving theoverall energy scenario of the country and in particular for remote and inaccessibleareas, the ministry aims to harness at least half of the potential in the country overthe next decade to bring the installed capacity of small hydro to about 7 GW by theend of 12thplan in 2017.

Financing MNRE is providing Central Financial Assistance to set up small/micro hydroprojects both in the public and private sectors

Government is also providing financial support to the state governments for theidentification of new potential sites, including surveys and t he preparation ofdetailed project reports, and renovation and modernisation of old projects

Financial assistance also provided by financial institutions like IREDA, statefinancial corporations and commercial banks

International agencies supporting funding including USAID, kfW, JBIC, and IFC

Opportunities Low head power generation systems

High efficiency systems

Portable micro-hydro systems

Some KeyFacts

Private sector participation has increased in small hydro projects because ofaffordable investment and strong government support

There are a number of structural issues that impact on the countrys ability todevelop large capital-intensive projects like large-scale hydropower and as aresult a good deal of attention has been focused on the development of smallhydropower capacity (output of>= 25MW)



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ENERGY EFFICIENCY

3.2 Background

The gap between supply and demand of energy

is continuously increasing despite huge outlay for

energy sectors since independence. Further, the

burning of fossil fuel is resulting in greenhouse

gases which are detrimental to the environment.

The gap between supply and demand of

energy can be bridged with the help of energy

conservation which may be considered as a new

source of energy which is environment-friendly.

The energy conservation is cost-effective with a

short payback period and modest investment.There is a good scope of energy conservation in

various sectors, viz industry, agriculture, transport

and domestic.


The government launched the National Mission

on Enhanced Energy Efficiency (NMEEE), with an

outlay of Euro 0.03 billion in June 2010. This isone of the eight missions under the NAPCC. By

2015, the mission is expected to result in savings

of nearly 23 million tonnesoil equivalent of fuel in

coal, gas, and petroleum product.

The following steps were taken by t he Government

of India in order to create the market demand for

energy efficiency in India:

Establishment of Bureau of Energy Efficiency

as a statutory body under the Ministry of

Power, which mandates energy efficiency

standards, manages, finances, and monitors

energy efficient efforts throughout theeconomy, including the industrial sector,

through energy audits

Preparation of bankable projects in

various sectors like government buildings,

municipalities, agriculture, SMEs

Mandating all large government buildings

to undertake energy efficiency in 2013

about 8,000 large buildings with investment

potential of 1.47 billion

Setting appliance standards and making

them mandatory

Setting up norms for large energy-

intensive industries like thermal power,

fertilizer, cement, pulp & paper, chlor alkali,

steel, textiles, railways and aluminum.

An investment in new technologies of

4.4 billion is expected

Massive mass media campaign to enhance

awareness amongst stakeholders

National Energy Conservation Awards

for best performing industries in energy

efficiency

Establishment of the (autonomous) Energy

Management Centre under the Ministry of

Power for implementing and monitoring

energy conservation programmes and to

provide policy guidance and advice on

energy efficiency

Removal of price and output controls to

promote industrial competitiveness

Energy price reforms to guide energy

efficiency initiatives and encourage

international competitiveness

Formation of state energy conservation

funds that enable states to encourage

energy efficiency in several industries

Grant funds to encourage preparation of

Detailed Project Reports (DPRs) for energy

efficiency projectsEnabling trading of energy efficiency

certifications that encourages productivity

and competition among businesses

CLEANTECH HANDBOOK INDIA Energy Eficiency


20/55



Drivers Challenges

I ncrea sing energy requi remen ts La ck of enforce ment of standa rd s, code s andlabelling

Climate change and environmentalconsiderations

Information asymmetry about investments andtechnologies

Energy security Increasing mistrust due to weak contracts

Lac k of adequate supp ly opt ions D iffi cu lt ies in mea su ring energy sa vings

Large scope for energy efficiency measures Lack of financial resources and planning

Favourable legislation and policy initiatives

Lack of appropriate technologies

Potential for increased role of ESCOs


Government Incentives: The Government

of India already provides significant incentives

for energy efficiency projects, under the

NMEEE scheme

Demand Management: Demand-side

management has emerged as a major

business area as consumers are more

and more inclined towards energy saving

solutions. This is creating a lucrative market

for energy efficiency in India

Customised Products and Pricing: Tailor

made products (such as time-of-day services)

is catering to customers with varying

consumption patterns. At the same time,

the breadth of products offered on power

exchanges is rising significantly

New Value Proposals: Retail players will

strive to standout through well-crafted value

propositions that attract customers. These

include green power, improved quality of

service, and better costs advances already

made in some developed markets



21/55



Description Indias energy intensity per unit of GDP is higher as compared to Japan, USA andAsia by 3.7 times, 1.55 times and 1.47 t imes respectively. This indicates inefficientuse of energy but also substantial scope for energy savings. The increasing globaltrade liberalisation and growing global competition have made productivityimprovement, including energy cost reduction, an important benchmark foreconomic success.

GrowthForecast

The Bureau of Energy Efficiency forecasts expenditure of Euro 107.21 billionthroughout the next decade in Energy Efficiency.

Financing SIDBI and BEE are working as co-implementing agencies for preparing aWorld Bank funded project titled Financing energy efficiency at MSMEs

SIDBI Financial Scheme for energy saving projects in MSME sector under JICA(Japan International Corporation Agency) Line of Credit

Scheme for energy savings projects, energy audit subsidy, upgrading energyauditing facilities by PCRA, nationalised banks and funding agencies like UNIDO,GEF, GIZ, IFC, etc.

Credit Linked Capital Subsidy Scheme (CLCSS), incentives offered by state/centralgovernments 80 per cent depreciation in t he first year on the specified energyefficiency equipment and concessional excise and customs duty on notifiedenergy conservation equipment to promote energy efficiency

Concessions/rebates and special provisions from IREDA

Opportunities Operations and maintenance systems

Technologies and best practices

Waste heat recovery and steam utilisation

Use of improved materials

Use of efficient lightings, heating and cooling

Use of efficient cooking

Use of improved fuels

Some KeyFacts

The state has made provisions for a partial risk guarantee fund to comfortprivate lenders, and the venture capital fund to provide the initial seed capital.They are also engaging in capacity-building of banks and financial institutions

Indias current initiatives for the promotion of energy efficiency rely heavily on

market and market players for effective implementationThough the goal is to make energy efficiency an automatic outcome of markettransactions - something that will eventually be self-sustaining there is lesstrust in the capacity of market institutions



Bureau of Energy Efficiency(BEE)

Energy research www.bee-india.nic.in/

Renewable Energy and EnergyEfficiency Partnership (REEEP)

A market catalyst for clean energyin developing countries andemerging markets

www.reeep.org

UNIDO An UN body promoting sustainableinitiatives in Industries with a focuson developing economies

www.unido.org

PCRA Energy research www.pcra.org

The Energy and ResourcesInstitute

Energy research www.teriin.org

Conclusion

India has limited sources of conventional energy

and is highly dependent on the imports for coal

and oil. A lot of the nations wealth goes into the

import of coal and oil for energy. According to

the reports of World Resources Institute (WRI)

Indias energy demand will more than double

in 2030. The volatile situation in oil exporting

area raises concerns of energy security rather

than just price volatility. For a nation like India

where internal resources are limited and external

resources are costly and uncertain, the future

lies not just on renewable energies but also on

energy efficiency.



22/55


WATER ANDWASTE WATER

3.3 Background

India has about 3 per cent of water resources and 16

per cent of the worlds population. Water in India is

a state subject, however, central government plays

a pivotal role in policymaking as well as financing

development expenditure in the sector.

Today, drinking water investments constitute

about 3 per cent of the national budget. About

85 per cent of the urban and 75 per cent of the

rural population have access to public water

supplies. But access is not equal to service and

service delivery is fairly poor with most cities in

India getting only for few hours in a day.

The National Water Mission which is one of the

eight missions under the National Action Plan on

Climate Change, aims for 20 per cent conservation

in water use. Although water deficiency is widely

prevalent, industry experts are optimistic that

this shortfall can be met with a strong focus on

innovation, demand side management and better

policy and regulatory framework.

Government initiatives to

promote the sector

As per the Indian Constitution, water

is in the domain of the states with the

central government responsible for guiding

policy framework as well as financing

programmes like:

National Water Policy 2002

Primacy of drinking water; integrated

water resource management; private

participation

Expected to be revised in 2012

Jawaharlal Nehru National Urban

Renewal Mission

Reform linked investment programme

across 65 cities

56 per cent of the value of approved

projects in water and sewerage sector

worth Euro 5.29 billion

Achieving O&M cost recovery is a

key objective

Rajiv Gandhi National Drinking Water

Mission (RGNDWM)

Decentralised management of water

supply by communities leading to

convenient availability of potable water

at affordable costs

Focus on maintenance and incentives

for reforms in management

CLEANTECH HANDBOOK INDIA Water and Waste Water


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National Action Plan on Climate Change

National Water Mission

Ensuring conservation of water;

minimise wastage and ensure equitable

distribution

Promote basin level integrated water

management

Some of the initiatives being taken at central,

state and local for promoting the water

sector include:

Some states have formed/propose to form1.

water regulatory authority for determininginter sector allocation and regulation

of tariffs

Service level benchmarks proposed by2.

MOUD are being mainstreamed

Increasing use of turnkey contracts3.

(such as DBFOT, DBO), etc. by states and

local government ensuring long-term

involvement of private sector and larger

sized contracts

Viability Gap Funding of up to 40 per cent4.

under the Government of Indias initiative

to promote PPP in infrastructure, including

water supply

The JNNURM has supported water supply5.

and sewerage projects worth Euro 72 million

since its inception in 2006. Phase II of the

mission may be launched in 2014 with

additional funding

A proposal to setup a National Bureau of6.

Water Use Efficiency, on similar lines of BEE to

drive efficiency improvements in the sector

Many states have mandatory requirements7.

for harvesting rainwater in urban areas

Proposed revision of guidelines for8.

development of water supply projects

could spur opportunities for higher

end technologies

Some states, especially those with large9.

coastal regions, have prioritised desalination

for meeting drinking water as well as

industrial water requirements


Drivers Challenges

Demand and supply side create opportuntiies Increasing water demands due to populationpressure and urban sprawl

Euro 21.73 billion is the size of Indian watersector

Water requirement for industrial growth

Equipment market is worth 220-367 million,and expected to have double-digit growth rates

every year

Increasing irrigational and agricultural demands

Increased awareness about drinking water qualityand health

Water cycle imbalances and stress

High potential for increasing water use efficiencyacross all sectors

Over exploitation of water resources

Reducing availability of water forcing users to gofor reuse and recycling of water

Poor water quality necessitating use of advancedtechnology for treatment

Trends towards zero discharge and greenbuildings

Political and regulatory disputes

Potential for increased role of ESCOs Excessive withdrawal of ground water leading tounsustainability of source


Water

Description Water companies from across the world have established presence in India to pursuean estimated 70 projects worth several billion Euros in 20 Indian cities across thecountry. Indias water policies are aimed at encouraging private investment, so thatnew business models evolve to cater to the needs of the society in an economicallyefficient way.

GrowthForecast

Budgetary allocation from the government and aid organisations: The PlanningCommission has made an outlay of Euro 16.66 billion for Rural Water Supply &Sanitation and Euro 12.31 billion for urban water supply and sanitation.

Estimated market size by 2030:

Water collection and treatment: Euro 23.18 billion

Distribution and supply: Euro 1267.49 billion

Water resource management : Euro 33.03 billion

F inancing Aids provided by World Bank and ADB

Soft loans are provides through nationalised banks and other financial institutions

A 10-year, 100 per cent deduction of profits and gains is available for companiesoperating in water supply, water treatment, and sanitation projects

100 per cent FDI under automatic route

100 per cent depreciation within first year of project installation

Exemptions/reduction from excise duty, central excise sales tax, customs onimport of materials, components and equipment

Opportunities Technology & engineering related: Availability, assessment & extraction, treatmentand purification, metering, quality monitoring, operation & maintenance bottledwater, borewells and irrigation

Management & monitoring: Project management, remote monitoring &leak detection

Data collection & information management

Developer & operator related: EPC contractor, boot operator with expertise inO&M, control and leak/defect detection technologies like SCADA solutions, flowmapping systems, revenue collection and customer service

Some KeyFacts

Estimating baseline data is critical

Addressing measurement issues should be high on agenda

Focus on costs and estimating improvement options required

Appropriate risk assessment before initiating reuse of wastewater

Local and municipal participation is essential for selection and promotion ofnew technology



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Water and Land ManagementInstitute

Research and training www.walmi.org/

Water and SanitationProgramme

Support towards water projec ts www.wsp.org/

NEERI Research on national/societal missionson drinking water

www.neeri.res.in

International WaterManagement Institute (IWMI)

Research and programmes on waterresources

www.iwmi.cgiar.org

Energy research www.pcra.org

Centre for EnvironmentPlanning and Technology(CEPT)

Research and policy advise andtechnology development on urbanwater

www.cept.ac.in

The Energy and ResourcesInstitute (TERI)

Research on water, water audits www.teriin.org

The Central Public Health andEnvironmental EngineeringOrganisation (CPHEEO)

Ministry of Urban Development,Government of India entity whichdeals with the matters related to urbanwater supply and sanitation

cpheeo.nic.in

National Institute ofHydrology, Rou

Society under Ministry of WaterResources working in the area ofhydrology and water resources

www.nih.ernet.in

CII-Triveni Water Institute Working on sustainable watermanagement practices

www.cii.in/CII_Triveni_Water_Institute.aspx

Conclusion

Indias fragile and finite water resources are

depleting while the multi-sectoral demands

for water from sustained economic growth is

driving the increased demand for water throughcoupled dynamics between increased energy

and consumption. Exponentially increasing

demand for water due to population growth and

agricultural use, coupled with a high degree of

variability in the availability of water resources

throughout the country, will drive per capita

accessibility of water to under 1,000 cubic metres

by 2020 if left unchecked.



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URBAN DESIGNAND SMART CITIES

3.4 Background

Indian urban agglomeration needs an efficient

infrastructure and smart city planning that will

meet the demands of a growing population. India

is booming and sustainable development has

become increasingly more important. According

to a United Nations report, Indias population

currently encompasses about 1.2 billion people

and is expected to grow by another 300 million

within the next couple of decades. With cities

generating two-thirds of the countrys economic

output, an increasing number of Indians areleaving rural areas to seek employment in cities,

relying on an efficient urban infrastructure.

Government initiatives todevelop the sector

Launch of JNNURM Jawaharlal Nehru

National Urban Renewal Mission to improve

urban infrastructure services in the identified

cities to make them efficient and effective

centres of growth.

UIDSSMT scheme The Urban Infras-

tructure Development Scheme for Small and

Medium Towns (UIDSSMT), a component of

the JNNURM to

Improve infrastructural facilities and help

create durable public assets and quality

oriented services in cities and towns

Enhance public-private partnership in

infrastructural development

Promote planned integrated

development of towns/cities

Cleantech Handbook 13 Jan 2014

Documents

Transcript of Cleantech Handbook 13 Jan 2014