ADB Deems Clean Energy Projects as Risky

The thrust to create so-called “clean” energy projects is hampered by poor financial risk perception, need for big capital investments and policies that still favor conventional sources of energy, an official of the Asian Development Bank (ADB) recently announced.

Stating at the Asia Clean Energy Forum at the ADB headquarters this week, Private Sector Operations Department Director-General Philip Erquiaga said these three impediments are what the bank will take into consideration drafting a new energy policy.

Mr. Erquiaga explained the perception of risk is because of the view regarding clean energy technology is “experimental,” creating it financially risky as an investment.

Rizal Commercial Banking Corp. Senior Vice-President for financial markets Marcelo E. Ayes agreed, evaluating that “many of the companies producing this technology are start-up and will have difficulty accessing credit because they don’t have a track record.”

Noting further that these projects are “capital-intensive,” Mr. Ayes stated the “risk is huge without certain profit even in the long term.”

He said that a well-designed feasibility study and a guarantee by the government, ADB or the World Bank are few of the factors that could better risk perception.

Energy Assistant Secretary Mario C. Marasigan, chief of the Renewable Energy Bureau, stated the government has addressed the concern over policy drawbacks, citing Republic Act 9513, or the Renewable Energy Act of 2008, which provides fiscal and non-fiscal incentives for renewable energy investors, involving tax credits on domestic capital equipment and services, special tax rates on equipment and machinery, amidst others.

This will bring down the price of technology and make ‘clean,’ renewable energy competitive with conventional energy. The law is a clear indicator that this government prioritizes renewable energy.

Source : Energy Business Daily

Future Perspectives for Renewable Energy in India

Introduction
India is facing an acute energy scarcity which is hampering its industrial growth and economic progress. Setting up of new power plants is inevitably dependent on import of highly volatile fossil fuels. Thus, it is essential to tackle the energy crisis through judicious utilization of abundant the renewable energy resources, such as biomass energy, solar energy, wind energy and geothermal energy. Apart from augmenting the energy supply, renewable resources will help India in mitigating climate change. India is heavily dependent on fossil fuels for its energy needs. Most of the power generation is carried out by coal and mineral oil-based power plants which contribute heavily to greenhouse gases emission.
The average per capita consumption of energy in India is around 500 W, which is much lower than that of developed countries like USA, Europe, Australia, Japan etc. However, this figure is expected to rise sharply due to high economic growth and rapid industrialization. The consumption of electricity is growing on the worldwide basis. Energy is a necessity and sustainable renewable energy is a vital link in industrialization and development of India. A transition from conventional energy systems to those based on renewable resources is necessary to meet the ever-increasing demand for energy and to address environmental concerns.

A Glance at Renewable Energy Sources in India
• Solar Energy
Solar power, a clean renewable resource with zero emission, has got tremendous potential of energy which can be harnessed using a variety of devices. With recent developments, solar energy systems are easily available for industrial and domestic use with the added advantage of minimum maintenance. Solar energy could be made financially viable with government tax incentives and rebates.
An exclusive solar generation system of capacity of 250 to KWh units per month would cost around Rs. 5 Lacs, with present pricing and taxes. Most of the developed countries are switching over to solar energy as one of the prime renewable energy source. The current architectural designs make provision for photovoltaic cells and necessary circuitry while making building plans.

• Wind energy

Wind power is one of the most efficient alternative energy sources. There has been good deal of development in wind turbine technology over the last decade with many new companies joining the fray. Wind turbines have become larger, efficiencies and availabilities have improved and wind farm concept has become popular. It could be combined with solar, especially for a total self-sustainability project.
The economics of wind energy is already strong, despite the relative immaturity of the industry. The downward trend in wind energy costs is predicted to continue. As the world market in wind turbines continues to boom, wind turbine prices will continue to fall. India now ranks as a "wind superpower" having a net potential of about 45000 MW only from 13 identified states.
• Hydro Electric Power
India has a huge hydro power potential, out of which around 20 % has been realized so far. New hydro projects are facing serious resistance from environmentalists. Resettlement of the displaced people with their lands becomes major issue.
• Biomass Energy

Biomass energy can play a major role in reducing India’s reliance on fossil fuels by making use of thermo-chemical conversion technologies. In addition, the increased utilization of biomass-based fuels will be instrumental in safeguarding the environment, creating new job opportunities, sustainable development and health improvements in rural areas. Biomass energy could also aid in modernizing the agricultural economy. A large amount of energy is expended in the cultivation and processing of crops like sugarcane, food grains, vegetables and fruits which can be recovered by utilizing energy-rich residues for energy production. The integration of biomass-fuelled gasifies and coal-fired energy generation would be advantageous in terms of improved flexibility in response to fluctuations in biomass availability with lower investment costs.
Waste-to-energy plants offer two important benefits of environmentally sound waste management and disposal, as well as the generation of clean electric power. Waste-to-energy facilities produce clean, renewable energy through thermochemical, biochemical and physicochemical methods. Moreover, waste-to-energy plants are highly efficient in harnessing the untapped sources of energy from a variety of wastes.


Decentralized Energy Generation in India
Microgeneration, also called “micropower”, is the generation of zero or low-carbon electrical power by individuals, small businesses and communities to meet their own needs. The most widely-used microgeneration technologies include small wind turbines, solar power photovoltaic or biomass conversion systems that have been promoted for decades as alternative sources of renewable energy. Because of technological advances, microgeneration now includes handheld solar and wind-power recharging devices for personal electronics, as well as advanced photovoltaic, biomass and wind-turbine systems for domestic and industrial power generation.
Traditional “megapower” production of electricity is insufficient today because of exponential industrial growth and high living standard. Microgeneration can act as a catalyst for cultural changes in consumer attitude, and provides evidence of the important impact that microgeneration has on consumers’ attitude and behavior regarding energy production and use. Microgeneration is both a serious form of clean energy production and also a cultural movement that is gathering momentum worldwide. Microgeneration technologies include small wind turbines, biomass gasifiers, solar power, micro-hydro, or a combination of these technologies. Prima-facie renewable energy may appear a bit costlier than the conventional source of energy, but looking at the benefit of continuous power availability and great contribution against global warming, it is worth.
Industrialized countries, like USA, Australia, Japan, have formulated action plan to foster sustainable energy to make judicious use of renewable energy resources. For example, USA has announced massive renewable energy program, to generate large share of total energy requirement from renewable energy sources by 2025, which will create 5 million new job opportunities in various areas of Renewable Energy.
Proposed Guidelines for Power Consumers in India
• Explore all possibilities to set-up an independent power plant making use of renewable resources like solar, wind and biomass.
• Use of government / utility electricity supply, only in case of emergency.
• Energy savings by using low wattage / high luminous lamps (CFL / LED).
• Use of power factor improvers.
• Regular maintenance and servicing of electrical equipments.
• Avoidance of inverters and large storage batteries (except emergency).
• Intelligent power factor correctors to minimize energy losses in capacitor at lower load conditions.
• Frequent energy audits
Proposed Guidelines for Policy Makers in India
• Vigorous promotion of renewable energy by government agencies, corporate, public sector, academic institutions etc.
• Establishment of national-level body to increase awareness of renewable energy at grass-root level
• Financial support and sponsorship for research and development in renewable energy technologies.
• Ambitious goals and targets for power generation non-conventional sources.
• Installation of solar / wind / biomass power generation systems and energy saving in every government office to encourage and inspire people.
• Restriction on using large battery energy storage systems.
• Compulsory installation of solar water heating systems for all urban residential and commercial establishments.
• Mandatory renewable energy systems provision for new residential, commercial and industrial buildings.
• Attractive incentives and subsidies for installation and successful operation of renewable energy equipment.
• Abolishing duties / taxes on import of small-scale renewable energy generating equipment
• Cultivation of energy crops on marginal and degraded land
• Use of biofuels in vehicles.
• Soft loans for setting up renewable energy enterprises.
• Additional incentives for buyers and manufacturers of renewable energy equipments in rural areas.
Guidelines for Research Professionals
• Development of comprehensive educational and awareness modules for renewable energy systems.
• Development of cost-effective, high-efficiency and long-lasting photovoltaic cells.
• Development of high efficiency wind turbines, ranging from 300 W – 10 kW, to generate energy even at low wind velocity.
• Development of small-scale, low maintenance biomass gasifiers to make use of abundant biomass resources in rural areas for cogeneration
Conclusion
There is an urgent need for transition from petroleum-based energy systems to one based on renewable resources to decrease reliance on depleting reserves of fossil fuels and to mitigate climate change. In addition, renewable energy has the potential to create many employment opportunities at all levels, especially in rural areas. An emphasis on presenting the real picture of massive renewable energy potential, it would be possible to attract foreign investments to herald a Green Energy Revolution in India.

Author’s Profile
Ravi Soparkar
Electrical Engineer from Mumbai. 40 + years experience in engineering business. Working on micro-generation feasibility in renewable energy for past five years. Participated in numerous national and international conferences and workshops all over the world. Presently associated as senior consultant with Super Consultants Inc from Maryland USA
Address: Soparkar House, 36/2 Kondhwa Budruk, Pune 411048.
Phones: 020 26934300, 9325014999
Email: surepower@aol.in

Farooq Abdullah - New minister of New and Renewable Energy

The much awaited suspense on the new cabinet got over on Thursday with the announcement of Prime Minister Manmohan Singh's council of ministers. The strongman of Jammu and Kashmir politics, Dr. Farooq Abdullah has been appointed as the new minister for Ministry of New and Renewable Energy.

With this announcement and making one of the most experienced person in politics as the minister of New and Renewable Energy, the UPA government has made it clear that this time it is much more focused on utilizing the alternative source of energy.

Dr. Abdullah was born on 21 October, 1936 in Soura, Jammu & Kashmir, India), is a doctor of medicine and has served as chief minister of Jammu and Kashmir thrice - 1982 - 1984, 1986 - 1990 and 1996 - 2002. His political career has been marked with controversy. Publicly, Farooq Abdullah has advocated autonomy for Jammu and Kashmir within the constitution of India and he has advocated the formalization of the Line of Control (LoC) as the International Border between India and Pakistan.

SolarIndiaOnline.com congratulates Mr. Abdullah on being the new Minister of New and Renewable Energy of the country.

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India’s Solar Mission : Ministry ready with a draft

Earlier this month, SolarIndiaOnline reported about Solar Mission plans to install 20,000MW capacity by 2020 in the story “Renewable is not an alternative anymore”.
Ministry has finalized the draft for the National Solar Mission. After the first initiative of installing generation capacity of 50MW through Solar, the ministry has now gone all the way, to make Solar a valuable option for Indian Power Industry. SolarIndiaOnline.com earlier this month announced about the plan of ministry to install solar generation capacity of 20,000MW by 2020. According to draft agreement by Ministry, the plans are to install solar generation capacity of 20,000 MW by 2020, of 1,00,000 MW by 2030 and of 2,00,000 MW by 2050.
The total expected funding from the government for the 30-year period will run to Rs. 85,000 crore to Rs. 105,000 crore. The requirement during the current Five Year Plan is estimated to be Rs. 5,000 crore to Rs. 6,000 crore. It will rise to between Rs. 12,000 crore and Rs. 15,000 crore during the 12th Five Year Plan.
The plan till 2020 will take be implemented in three phases.
The First Phase: 2009-2012: The Ministry will focus on expansion of on-going projects for urban, rural and off-grid applications. This will involve the promotion of commercial-scale solar utility plants, mandated installation of solar rooftop or on-site photo-voltaic applications in buildings and establishments of government and public sector undertakings.
In this phase, the Mission will make it mandatory for all functional buildings such as hospitals, hotels, guest houses and nursing homes to install solar water heaters. Residential complexes with a minimum plot area of 500 sq m will also be included. Expansion of solar lighting systems through market initiatives including micro-financing, in the rural and urban sectors, is expected to provide access to lighting for three million households by 2012.
The Second Phase: 2012 and 2017: Mission will focus on the commercial deployment of solar thermal power plants. This will involve storage options, and the promotion of solar lighting and heating systems on a large scale in market mode. This will be without subsidies but could include micro-financing options.
The Third Phase: 2017 and 2020: The target is to achieve tariff parity with conventional grid power and achieve an installed capacity of 20 gigawatts (Gw) by 2020. The installation of one million rooftop systems with an average capacity of 3 kilowatts (kW) by the same year is also envisaged.
The strategy will be to achieve the target along with reducing the cost of these projects. However there has been no confirmation from the ministry on this. The original may have few changes.


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Proposal to introduce solar invertors

Source: http://www.thehindu.com/2009/04/07/stories/2009040754270400.htm

The Delhi Government’s power department is mulling over a proposal to introduce solar panels for recharging batteries used to run appliances of everyday use during power cuts and outages. The proposal comes at a time when the department has been stressing the need to use more green energy and reduce dependence on non-renewable energy.

An official of the power department said the concept is similar to that of a solar water heater. “Solar panels are used to draw the energy of the sun to run appliances just like an inverter does. While an inverter uses energy from the grid to recharge the battery, here the battery gets recharged from solar energy, which is clean and economical,” he said.

The proposal to use solar energy to run the inverter has been put forth by Moserbaer Photo Voltaic, a company that manufactures photovoltaic products.

Explaining the concept, the company’s general manager Gagan Vermani said: “The idea is to utilise solar energy at the level of smaller consumers as well. We usually see the use of solar energy in villages and at large scale. Also the accent has been on solar water heating, which is required for a relatively shorter period, therefore we made this suggestion to introduce solar modules for charging inverter batteries.”

The system will allow consumers to pick the size of the modules as per their requirement and save on their energy bills. “The battery here will not require power from the grid to recharge; it will get re-energised even as it is being used from the solar modules attached to it. Apart from the initial investment (the cost of modules) the system does not incur any running costs,” said Mr. Vermani.

A 100-Watt module for instance requires a space of one metre square in dimension and costs about Rs.15,000. “All it (modules) requires is a bit of cleaning once every few days so that the efficiency does not go down. The modules last for as long as 25 years”. To make the concept economically viable for consumers, the company has also proposed extending a subsidy to the buyers. “To popularise solar water heating the government offers a subsidy to consumers. A similar formula should be worked out for the solar invertors as well, inverters are used in all kinds of weather and definitely more than the water heaters,” he said. Owing to the gap in the demand and supply of power in the city and its suburbs, the sale of invertors has been on the rise over the years. The ASSOCHAM in 2008 had forecast a 30-35 per cent hike in the demand for inverters, their batteries and generator sets.