Power Scenario – India

India’s energy consumption is set to grow at a CAGR of 4.2% till 2035 – faster than all major economies of the world. As Asia’s second-biggest and the world’s third-largest energy consumer, its share in global energy demand is expected to rise to 9% by 2035. The country boasts of having the world’s fifth-largest capacity for power generation, with no signs of production slowing down. It also has one of the most diversified power sectors in the world, with both conventional and non-conventional sources being used to meet its energy needs. The total installed power capacity in India, as of March 2017 stands at 326.85 GW.

Electricity consumption in India is expected to rise in the years to come. The expected surge in consumption is most likely to be propelled by a growing economy, demographic expansion, urbanization accelerating the switch to modern fuels and the rise in appliance ownership (an additional 315 million people are expected to live in the country’s cities by 2040). Energy consumption per capita in India is still only one-third of the global average with some 240 million people having no access to electricity. There are hence strong reasons to expect continued growth in rapid demand. India’s need for new infrastructure is driven by a growing demand for energy-intensive goods, rising level of vehicle ownership, increasing industrial energy use buoyed by substantial growth in output of steel, cement, bricks and other building materials, and by the expansion of domestic manufacturing. The Make in India initiative, which aims to turn the country into a global manufacturing hub, will be a leading contributor to this demand because industry-led growth requires at least 10-times more energy per unit of value-added as compared to growth led by the services sector.

The Mushrooming Renewable Energy Sector
India’s current model of energy use relies primarily on non-renewable sources of energy, which have limited reserves. Also the country is, to a large extent, dependent on imports to meet these energy requirements, which has been sticky at nearly 35% of its annual primary commercial energy demand over the last several decades.

Meeting the ever increasing energy demands in the future with such a model will not only be a financial burden but also questionable considering the rapidly dwindling global supply of fossil fuels. When environmental concerns such as carbon emissions and the ecological footprint are also taken into consideration, the viability of this model plunges even further. In such a scenario, India’s renewable energy potential appears promising.4 India’s renewable energy contribution stands at 57.26 Gigawatt (GW), which includes 32.3 GW of wind power. The UN Environment Program’s (UNEP) ‘Global Trends in Renewable Energy Investment 2016’ Report ranks India among the top ten countries in the world investing in renewable energy. The Government has set a target to achieve the proposed renewable energy capacity addition of 175 GW by 2022 – 100 GW being from Solar Power alone. This happens to be the largest every capacity addition planned. The country’s aspiration to achieve 40% power installed capacity from non-fossil based energy resources by 2030 has made its nascent solar power industry the destination for global investors, creating growth opportunities for a host of industries.

Harnessing India’s Solar Energy Potential
Solar power has always been an integral component of the Renewable Energy sector. The massive upscaling of the solar power generation capacity target 100 GW by 2022 is likely to act as a catalyst in the manufacturing of equipment, panels, and supply of services and technology used in the industry.

The last two years have witnessed considerable efforts being made to harness India’s solar energy potential.

There has been a 243% increase in solar power capacity addition (6381 MW) during the last two years.
The world’s second largest 648-MW solar power plant, comprising 2.5 million individual solar modules was unveiled in Tamil Nadu in September 2016. This is in sync with Prime Minister Narendra Modi’s International Solar Alliance initiative, which was signed by over 121 countries with an aim to improve quality and reduce the cost of solar energy in developing countries.
3,019 MW was the solar capacity addition in 2015-16 – highest ever that India has seen.
At least 50 solar parks with an aggregate capacity of 40,000 MW were sanctioned for 21 states.
A total of USD 154.87 was released to the Solar Energy Corporation of India (SECI), a Public Sector Undertaking (PSU) dedicated to the solar energy sector. The fund is to provide support to central public sector units to set up over 1,000 MW grid-connected solar photovoltaic power projects, establish 25 solar parks each with a capacity of 500 MW and to set up over 300 MW of solar power projects by defence establishments.
31,472 solar pumps were installed in FY 2015-16, much higher than the total number of pumps installed during the last 24 years since 1991.
In 2016, Prime Minister Narendra Modi also gave his nod for the utilisation of 400 hectares of uncultivable farm land in Jetsar, Rajasthan, to set up a solar power plant of a capacity exceeding 200 MW.
The Government approved USD 769 Million for the implementation of grid-connected rooftops systems, over a period of five years up to 2019-20 under the National Solar Mission.
A target of 40 GW grid connected solar rooftops to be achieved by 2022 was set. So far, about 500 MW have been installed and about 3,000 MW has been sanctioned, which is under installation. This move is likely to contribute to the long-term energy security of the country and promote ecologically sustainable growth by a reduction in carbon emissions.
With solar tariffs falling to an unprecedented low of INR 2.97/unit, the generation capacity is expected to grow at a faster pace to meet the growing demand for energy.

Increasing demand for energy in the country has prompted the Government to ramp up solar capacity to reduce reliance on fossil fuels and move towards clean energy. India has an estimated renewable energy potential of about 900 GW from commercially exploitable sources, 750 GW being from solar power. According to a study conducted by International Council for Research in International Economic Relations (ICRIER), access to solar power will also help water crop fields as well as build cold storages.

To provide a fillip to the sector, various incentives have been announced by the government. Renewable energy projects have been included in priority sector lending norms of commercial banks. Clean environment cess has been doubled to promote use of renewable energy sources. The renewable energy sector has been re-classified as ‘white category’ which implies that setting up of solar and wind power plants will be exempt from seeking environmental clearances from Ministry and consent from State Pollution Control Boards.
With the sector growing at a rapid pace, there is a substantial need to meet the demands of skilled manpower. In May 2015, the government set a target to train 50,000 people to be called ‘Surya Mitras’ in the solar energy sector by 2019-20.

The solar energy sector will drive India’s vision to achieve a green future by ensuring energy security and lower fossil-fuel imports which will also help reduce the fiscal deficit. With India forecasted to become the third-largest solar market this year, it looks like the sun will never set on the country’s solar industry.

Source: http://www.makeinindia.com/article/-/v/pioneering-sustainability-solar-energy

A record of sorts was created on Tuesday when solar power tariffs fell to Rs 2.63 a unit at the state-run Solar Energy Corporation of India (SECI) auction of Bhadla solar park in Rajasthan.

Auctions were carried out for 250 mw of solar power in Bhadla Phase-IV Solar Park, where the base price for the auction was set at Rs3.01 a unit by SECI.

The bidding saw companies quoting historic tariffs, with Phelan Energy (50MW) and Avaada Power (100 MW) bagging projects @Rs. 2.62/unit and Softbank Cleantech winning 100 MW capacity @Rs. 2.63/unit. As many as 27 bidders submitted bids for this 250MW capacity.

“Another milestone towards PM @narendramodi’s vision of clean affordable power for all: Bhadla Solar Park achieves tariff of Rs. 2.62/unit”, tweeted Piyush Goyal, Union minister of state for power, RE, coal and mines.

SBG Cleantech is a joint venture between Japan’s SoftBank Group Corp., India’s Bharti Enterprises Ltd and Taiwan-based Foxconn Technology Group. The venture was set up in June 2015 after SoftBank Corp.’s Masayoshi Son pledged to invest at least $20 billion in solar energy projects in India.

Avaada Power is promoted by Vineet Mittal and is his second innings in India’s clean energy space after Tata Power Co. Ltd bought the entire 1.1 gigawatt (GW) renewable energy portfolio of Welspun Energy Ltd for $1.4 billion last year.

State-run Solar Energy Corp. of India (SECI), which is also running the bid process for another 500MW of solar power capacity at Bhadla, had set the reserve price at Rs3.01 a unit before the reverse auction began on Tuesday afternoon.

The auction for this 500MW capacity being developed by Saurya Urja Co. of Rajasthan Ltd on 11 May is now eagerly awaited, with experts being of the opinion that the tariffs may fall further. Rajasthan Renewable Energy Corp. Ltd is a joint venture partner in both parks.

This price discovery assumes significance as this is even lower than the average rate of power generated by India’s largest power generation utility, NTPC Ltd, at Rs3.20 per unit.

SECI is running the bid process for 750MW of solar power capacity at two parks. For the balance 500 MW capacity, the reverse e-auction will be run on 11 May

At Bhadla, Saurya Urja Co. of Rajasthan Ltd is also developing a 500 MW park, with SECI running the auction process for both parks. Rajasthan Renewable Energy Corp. Ltd is a joint venture partner in both.

The bidders include some first-time participants in India, such as Saudi Arabia’s Alfanar.

The solar space has already seen a significant decline in tariffs from Rs10.95-12.76 per kilowatt-hour (kWh) in 2010-11. The previous low was Rs3.15 per kWh, bid by France’s Solairedirect SA in an auction last month to set up 250MW of capacity at Kadapa in Andhra Pradesh. This low was preceded by Rs3.30 per unit quoted for a 750MW project at Rewa in Madhya Pradesh.

India is all set to become the third-biggest solar market globally in 2017, overtaking Japan, according to the India Solar Handbook 2017 released by Bridge to India (BTI) consultancy on Monday.

Source: https://energyinfrapost.com/rajasthan-solar-auction-bhadla-phase-iv-witnesses-time-low-power-tariff-rs-2-62unit/

Thank you very much ma’m, your Excellency, the Deputy Secretary General of the United Nations, distinguished …….., Excellencies, …… of UNIDO ………… ladies and gentlemen. It’s indeed a pleasure to be at the Vienna Energy Forum, 2017. It’s my first visit to Vienna, and I must say it’s a beautiful city, a beautiful country. And it’s very appropriate that we are meeting here today on this very important subject, in a city which believes in sustainable lifestyles.

World is changing. If one looks back, and not too far back in history, there was a time where any such engagement would have ……….. of thinking us pushing for more, a set of countries very concerned about the impact of those actions on their countries – is it going to be good for them, is it going to really work in countries which were less economically developed. And this used to be the typical pattern of all engagement internationally. I believe a lot of that changed in 2015 when over three months, September 2015, when the world came together under the aegis of the United Nations, to set up a set of Sustainable Development Goals. And soon, thereafter, in December, every part of the world, every country in the group came together on a common platform to accept certain realities and commit ourselves to work together for change.

And I think it’s a great delight that today the Vienna Energy Forum is creating a platform, is bringing together, both the Sustainable Development Goals and the Paris Climate Change Agreement, the new way of thinking about environment, about sustainability, and creating this platform where the global mindset is changing to what is possible, what needs to be done, what can be done and what we can all do together for the good of humanity as a whole. And I am delighted so many global citizens have chosen to be a part of this forum today to discuss, to deliberate the way forward, to meet these goals; both the Sustainable Development Goals and, obviously, we could not get sustainability without the global effort …. set right some of the wrongs that we had inherited.

I remember when Thomas Edison, the inventor of the light bulb, many many decades ago, talking about the importance of the sun and solar energy. At that point of time he had said I do hope world understands what a great source of energy the sun is, and I do hope they understand quickly and don’t wait for the world to run out of petrol, to run out of oil, to run out of wood before they realize that.

I am delighted that all of us are here today, in some sense, to grasp that opportunity that is available, that’s right there before our eyes to save world. This thinking of sustainability of the planet, this holistic approach is something that one of our Indian ideologues had spoken about over 50 years ago. Pandit Deen Dayal Upadhyay, a great thinker in the 60s had …… of integral humanism, 50 years ago espoused the theory that no human being can be satisfied, can be happy ….. look at all aspects of his well-being. Well-being is not only economical well-being, our family values and cultures also bring about happiness – recreation, leisure, good health, good education, access to common services. It’s a holistic thinking that can only bring true happiness to a human being. Large parts of the world today are talking about the Happiness Index,… he espoused 50 years ago.

And I am delighted that as we celebrate his birth anniversary this year, more and more of the world is coming together accepting this reality to redeem ourselves, to bring forth change in the minds of people, and I do hope we will leave behind a planet better than the one we inherited…. the children of tomorrow. In fact, the inter-linkages of the SDGs and the Paris Agreement are there … for all of us, I don’t think any of these SDGs can be fulfilled unless we take a comprehensive view on different aspects.  And energy access clearly, is somewhat the mother of all the SDGs. We had missed it out in the Millennium Development Goals. It was introduced as Goal No. 7 this time around. And very practically, keeping in mind ……….. not having access to energy, we have introduced the affordability aspect, we have introduced the sustainability aspect, we have introduced the reliability aspect. We made sure we are looking at modern energy and not trying to pass off something to the rest of the world, which may be rooted in the past.

In that sense, the road from Paris to today has been somewhat bumpy. We will have to sort that out. But I would like to reassure each one of you here today that India stands committed to its commitments made at Paris, irrespective of what happens in the rest of the world. For us in India, it is an article of faith, for Prime Minister Narendra Modi, it is something he is deeply passionate about, something he believes in intrinsically, something which the people of India believe in. And we stand committed to each and every one of those commitments made in Paris irrespective of what happens in other parts of the world.

It’s time we decoupled economic growth and development imperatives of many countries with the ……… facing us on the environment front. In fact, I recall about 8 or 9-10 years ago, the famous book about the Inconvenient Truth had come out, ………. one of the provinces of India, had come out with his own vision of convenient action. I believe the ……….. is staring us in the face today. Every day counts, every moment matters. And I am delighted to share with you, India is making rapid strides when it comes to our own commitments, and our own targets for promoting …………. …. looking at energy conservation, looking at energy efficiency and ensuring that we have a development ….. of our energy needs going forward in a very systematic manner, so that we meet the needs of our people, give energy … citizen of the country, yet do it in a more affordable manner.

While Sustainable Development Goal plan energy access up to 2030, and I have often at many forums….. particular goal should be advanced. I think that’s …………….. 2030 is too long a period……. committed ourselves to make sure that every citizen of the country gets 24/7 power for all by 2022 when India celebrates 75 years of independence. ………………….. I committed to try and make it happen by 2019. And I can only echo what ……… said, and I think it pains each one of us in this room to see children living in the villages, living in parts of Asia, living in parts of Africa without access to electricity…. …. in our life. Can any of us in this room imagine our children ……… maybe not even connected to a mobile phone. Electricity is that one fulcrum around which ……. connectivity… world …. engagement this global world can come together and, to my mind, I would urge the United Nations to ….. atleast the Goal No. 7 to other parts of the world. And India is willing to play any role. India is willing to contribute in any way and India is willing to ……….. of fast tracking this project. And I do hope that I don’t fail in my personal mission of 2019 because I would never be able to forgive myself for that.

We have set very ambitious targets for renewable energy and for those of you who believe that renewable energy is still expensive, is still beyond the means of poorer countries, I am happy to share with you a small example of what economies of scale, what integrity of purchasing processes, what new technology can do for all of us. I took charge of this office just about 3 years ago, when India used to purchase solar power at upward of 12 cents per kilowatt hour, per unit of energy. Today, and for that matter, only day before yesterday, in the last round of bidding of solar energy, we have discovered price of 4 cents – one-third of what it was only three years ago.

Ends.