Next-Gen Solar Energy Hub : Gujarat, India

5 Ways to Generate Your Own Power at Home

noreply@blogger.com (Gaurav Trivedi) — Wed, 08 Jun 2011 09:13:00 +0000

The following article is guest post from Katherine Tworsey (http://compareelectricityrates.com) who has been writing on the interesting area of residential and commercial electricity usage and ways to minimise the costs for the same. We thank Katherine for sharing this post on our blog. I hope you enjoy it reading as I have.

With the high costs of energy today we all look for ways to cut our expenses. At home, energy costs are something, which can really add up over a year’s time. It isn’t like we can simply stop using electricity. A great part of our life at home involves the need for energy. Between computers, home entertainment games, television and our appliances, we are used to turning things on for just about everything we do. The price of all our demands is felt when we get that monthly electricity bill. It is not likely, with the constant additions to electrical conveniences being made available to consumers, that we will decrease our usage of power in the future. Here are five possible alternatives to relying on the electrical company for your electric needs.

1.Solar Energy. Harnessing the power of the sun to generate electricity has been around for years. There are kits you can purchase to install solar panels on your roof to utilize the daylight to generate electricity. If you intended on doing this with a great many panels, then it might be worth the cost to contract with a solar power company to install a complete solar power system. You may even be eligible for help from the government with the cost of this type of alternative. With the money you will save on your light bill, it can pay for itself over time.

2.Wind. If you live in an area where it is windy most of the year, then putting in a propeller driven generator in your backyard could be a good thing to consider. They are easy to obtain and erect on your property. The great thing is that, unlike solar power, they will work both day and night. When there is a storm that clouds the sky, they can still be turning due to possible high winds.

3.Magnetic Generators. Magnets properly constructed can create a generator that doesn’t require help, from sunlight or air, in order to work. With the assistance of some accurate instructions for building a magnetic generator, you can create your own power at home, for reasonable investment costs.

4.Hydro Power. This is an option for those who live near a river or stream. It would work on a constant basis, and the output of electricity would depend upon things like how fast the water is flowing. Anywhere that you would have access to some type of moving water, would supply the means to supplement your home energy needs.

5.Creative Generators. If you have the time, and are willing to do some experimenting, you could try generators that run off alternative types of fuel. If you use exercise equipment at home, it is possible to hook up these items to run a generator. Manpower might not work for a full time solution, but it could help in small ways. It is something worth considering.

Although each suggestion might not work for every person in their own situation, they are worth reviewing to see which one might help with your own needs. You can also call your local electricity provider for their help in finding ways you can benefit from alternative energy sources.

Learn to make a solar-powered car

noreply@blogger.com (Gaurav Trivedi) — Wed, 01 Jun 2011 07:08:00 +0000

I came across a very good video while researching on solar powered cars. This is a video prepared by the Stanford students demonstrating construction of a solar car. If more colleges in India takes up such projects, then we can build dominance in R&D in this area. Though in a nascent stage, solar cars could be they way forward how we drive our way into the future.

Do let me know your comments on the same.

Crossing the hurdles lying in the road of achieving “The Solar Energy Dream” in India

noreply@blogger.com (Gaurav Trivedi) — Tue, 24 May 2011 10:22:00 +0000

What are the single most factors that determine the success of a solar energy project? They are data and more importantly useful data. We need dynamic maps, GIS data and analysis tools to determine the profitability of a power plant. The reason why USA is a forefront in every aspect of business is because of their hands-on exhaustive relevant data. An example of the same for solar energy domain is NREL's website for people interested in solar energy. And, this where India is currently lacking.

Many banks and other financing institutions need to establish that they are assured of fixed payments after they disbursed the huge capital outlay required for a solar energy plant. After googling for a while, I found MNRE provides such data. Also, the website provides a direct link to the NREL website as I have provided above. But the question remains, "Is this all we need to establish that the solar project once commissioned would be successful?"

On the flip side, there is some good news coming your way. The union ministry for environment and forests (MoEF) has clarified that there would be no environmental clearance required for Solar PV projects in India. This would ease the whole bureaucratic process the solar project developers face in obtaining financial closure. Finally a breather for all solar power project developers in India!

Building a case for utility companies to turn to renewable energy sources in India

noreply@blogger.com (Gaurav Trivedi) — Tue, 24 May 2011 10:20:00 +0000

Where are the utilities companies in the renewable energy race? Taking a cue from their US counterparts, one important lesson to learn is "better buckle up than sorry". Utility companies are nearest to the sustainable energy value chain. Carbon reporting may soon be made mandatory in USA, and as the trend goes, developing countries such as India would soon follow it. This would be an important move leading to more transparency and accountability. On its adoption, it would bring focus right up on companies how to be more energy efficient and reduce their carbon foot-print. Socially Responsible Investing (SRI) is no longer a fad but an acceptable norm for investment companies (pension funds, hedge funds, venture capitalists et al.) looking to invest in companies in future. Companies having high carbon footprint can then forget about getting new round of investments and/ or raising money in the debt market.

Now where does the utility company fit in this bill? Utilities can route the surplus cash generated through steady flow of revenues towards implementing the renewable energy projects. For e.g. a concentrated solar power plant can be used alongside a coal/ gas –fired power station. As shown in the figure above, with the base plants already in place, heat up the water using solar energy during the day and use your conventional sources during the night. What do you get? Better sustainability rating, ability to generate renewable energy certificate and/ or secure the lucrative carbon credits.

Closing on a good note, according to MNRE, 24 project developers have confirmed achieving financial closure for their solar projects. The total of solar projects allocated in the year till date has reached 686 MW. Hope the same figure we can see in the installed capacity by end-of-the-year.

Image Source: www.abengoasolar.com

Is Renewable/Cleantech Energy sector losing its “Shine” in India?

noreply@blogger.com (Gaurav Trivedi) — Mon, 02 May 2011 11:13:00 +0000

This question often pops up when we are dealing with any new sector. "Is the dot-com really burst?", "Will the nuclear power plants go under new fission processes after the Japan debacle?" so on and so forth. While the dot-coms came resurgent after 1999-00 bubble burst, it was primarily attributed to the Web 2.0 and the companies that surged learning from the mistakes of others. The cleantech/ green/ sustainable/ renewable energy are running on a similar line. Its called the "industry cycle". So in which phase exactly is the cleantech industry?

The number of companies which can take in the fresh in-flows of capital through private equity and venture capitalist players is very less. Many investors feel concerned of smaller players trying to enter without any prior experience. According to Cleantech Group, VC and PE funds invested $816 million in fiscal 2011, compared with $828 million in last year. This comes as a surprise as the economic scenario is particularly improving in most parts of the world. Indian companies needs to build in internal efficiencies and operational effectiveness to bring down their costs and enter in newer untapped markets.

To add salt to the wound, many companies are backing up a bit after very aggressive plans. Google recently declared that "Renewable energy is long-term effort". I am not sure what to read in between the lines, but then one thing is for sure: Renewable needs a different approach to handle project and technology improvements. The government is doing round of revisions of targets without any major policy changes in India. It can support the project by providing wind velocity and density, DNI solar irradiation data, etc. The different state and central departments needs to be revamped for providing these and related data at a price or for free. This data could help the companies to cut down the initial costs of identifying the sites for projects by conducting their own feasibility studies. The companies in turn need to showcase that they have positive EBITDAs and Net Profits to make the investor world make believe in the them and hence, the cleantech sector.

What do you feel needs to be done by companies to improve their worthiness for the investors?

Image Source: www.clipartof.com

How to increase the trading volume of recently launched RECs for promoting renewable energy in India?

noreply@blogger.com (Gaurav Trivedi) — Fri, 01 Apr 2011 12:03:00 +0000

One of the most important developments in renewable energy space went unnoticed in most of the newspapers and websites. The much-anticipated Renewable Energy Certificates (RECs) went on trading floor at Power Exchange India Limited (PXIL) and India Energy Exchange (IEX) for first time on March 30, 2011. Just give a brief highlight of the trading session:

A total of 424 non-solar RECs traded on two power exchanges
274 non-solar RECs - clearing price of Rs 2225 per REC - PXIL
150 non-solar RECs – clearing price of Rs 3,900 per REC – IEX
Major buyers: Reliance Infrastructure and LNJ Bhilwara, distribution companies and industries
National Load Despatch Centre has issued a total 532 RECs till date

Now the thought over here is that the next trading session is April 27, 2011 around one month of gap between the trading sessions. While it is understood that the trading activity would be low, the gap of one month seems a bit on the higher side. So, what can be done? One aspect is that the REC needs to be positioned as a mandatory commodity for utility companies and high carbon emission companies. A legislative must be brought upon in the parliament session on a higher cap on the permissible emission levels. The same could be amplified through higher marketing of the product through print and electronic media. The power of people could be leveraged over here with a nation-wide campaign of sustainable growth. There is a rising consciousness among the India consumers relating to the overall environmental issues. But it needs to be brought at par with the same level as that of the European and American counterparts.

The trading data could be made public for companies buying REC reflects the social and environmental-consciousness of the company. Though it might be seem a bit stretched but unless the public awareness is taken to a new level, it would be difficult for the REC to serve its true purpose i.e. aimed towards rewarding companies investing in renewable energy domain. The likes of Greenpeace could come up to appreciate the companies involved in buying the REC as a mandatory or voluntary way of supporting renewable energy.

RECs could be a great tool for improving the profitability of companies investing in the renewable energy domain. Their profitability would in turn bring in more companies coming up plans to invest in the similar projects. Please feel free to let me know your views on the same.

Image Source: www.kline.com

A new "leaf" in the solar energy story in India

noreply@blogger.com (Gaurav Trivedi) — Tue, 29 Mar 2011 08:52:00 +0000

For years, scientists all over the world have been the powerhouse for driving the economy by coming up with new innovations that could attempt to answer the "power of future". The product takes years of research, combining past formulas and coming up with new variations. Then the real task of implementing these formulas on the real systems comes into picture. Then the prototype undergoes rigorous testing under varied conditions. After taking cues from the test results and incorporating the changes in the prototype, we come across an article which says "The world's artificial leaf created". Kudos to all the scientists working day-in and day-out towards innovating products to make this world a better and convenient place to live in.

Scientists from Massachusetts Institute of Technology (MIT… I assume around 2 out of the 5 innovations in the world comes up from this place J), have created an artificial leaf which works on the similar "photosynthesis" process. The leaf splits water into hydrogen and oxygen using sunlight at an economical cost. The H and O can be used to produce electricity via fuel cells.

The structure of the leaf contains silicon, electronics and catalysts, substances to accelerate the process at low voltages. The prototype has worked for 45 continuously without any drop in the efficiency levels. Nocera, the developing firm is optimistic of rolling it out in India by end of 2011.

This "artificial leaf" is hailed as the next big thing for addressing the energy issues in developing and under-developed countries. According to the people involved, a single gallon of water can provide power enough for a whole day's energy requirement in a family. And the best part is, it doesn't need ultra pure water!!!

So what is your take on this new development?

Image Source: Imperial College London

Building Solar Power Capability in India through Public Private Partnership (PPP) and BOT Model

noreply@blogger.com (Gaurav Trivedi) — Fri, 18 Mar 2011 11:09:00 +0000

For sometime now, I have been involved in tracking the infrastructure industry including roads and highway sector. Taking a cue from the best practices followed over there, I think we should get a fresh perspective of Public-Private Partnership (PPP) trend that has dominated the infrastructure scenario in India. Let's take a scenario.

· Government (Central/ State) identifies land banks (preferably barren) and secures up to 80 percent of the land.

· A central solar agency drafts a agreement on the similar lines as Model Concession Agreement (MCA)

· A Build, Operate and Transfer (BOT) model should be defined which employs Solar EPC players, pays them for operating the plant and after a stipulated period transfers the project to government

· Agreement can include

· The land could be allocated for 50 years on a lease

· The tariff for each plant to be decided based on the DNI data

· EPC contractors are invited for the bids for a solar power plant. Based on the DNI data and company competence, company can go for either of the technology i.e. CSP or PV

· PPA would be signed between the government and utility company

· Regular tariff should be low preferably – INR 10 (indicative) and based on inflation it should be raised every year.

· Give the benefit of accelerated depreciation and related benefits to EPC contractors/ Project owners

I think maybe this model can be given a shot and initial 2-3 projects can be rolled out. This would entail multiple benefits:

· Low EPC risk exposure

· Increase in solar project implementation

· Land-acquisition solved

· Transparent system of allotting the project - L1 can be a criterion along with multiple qualitative factors

· Financial feasibility of projects

Please let me know your comments on this model. Is it workable, too hypothetical, practical? We do realise that there is a need for something radical to change the current slow implementation of solar projects. So, what is it?

Penalties to be imposed on the Solar Power Developers in Gujarat, India

noreply@blogger.com (Gaurav Trivedi) — Thu, 10 Mar 2011 12:48:00 +0000

The recent news from Bloomberg desk came as a pleasant surprise to me. According to Bloomberg, Gujarat government (an Indian state) is planning to penalize the companies who are running behind their schedules for solar project implementation. Currently, around five of six project planned to be commissioned by 2011 are in time overrun stage (approximately 48.5 MW capacity). A senior executive from GEDA has said that "There will be some penalty".

This can act as a fine example of how central government can also impose similar penalties on companies who readily sign on Power Purchase Agreements (PPAs) but don't initiate the action plan. According to the PPA, each company has to pay penalties for delays

· 10,000 rupees ($222) a day per megawatt for the first 60 days

· 15,000 rupees thereafter

All said and done, the question arises "Is the monetary penalties an only solution?" Also, "what can be learnt from these project glitches?"

I am taking to a couple of industry experts on these issues. I will update this post on the same.

What to do to bring out the best of an industry association? Few questions and answers!

noreply@blogger.com (Gaurav Trivedi) — Wed, 09 Feb 2011 12:22:00 +0000

Recently, an association was formed in Gujarat, the pioneering state of solar energy in India aptly named, Solar Energy Association. The solar projects demands quick addressing multiple issues such as land acquisition, moving of utilities to the site, establishing grid network, PPA clauses, etc. The newly formed association was launched by Dr J.J. Irani, director, Tata Sons which is one of the front-leaders in solar energy space in India. There are currently 15 members and the association expected it to raise to 60 by end of the year. A good start in every respect.

The fact remains, how to make it a success? In past, we have witnessed that many associations were formed in varied industries e.g. semiconductors, heavy machinery, electricals, etc. Are they successful? Usually, the gap in what they expected in form of association objectives and what they got from government during budgets and regular policy changes is wide enough. The association would require a robust plan on what to achieve at what stage of industry development phase. Solar industry is very much in the nascent stage with only 3 MW implemented till-date of the expected 32 MW grid-connected solar power by end of the year.

Please find below few pointers which I think if implemented can extract more of the association goals. Some are radical, some can be implemented right away.

Leadership

· Have 2 chairmen:

· One government official having a position in renewable cell

· One CEO of the top 5 companies competing in the sphere

· This would help to bring out upfront the consensus among the government and players on which policies can be implemented.

Research Cell

· The government often complains that the demands of the association are not justified.

· To mitigate this, have a dedicated research cell which develops best practices in each sphere e.g. tariffs, land acquisition regulation, project implementation.

· Best practice example: after giving substantial feed-in-tariffs to retail customers, Germany was able to introduce a subsidy cut. In the process, it became a leader in off-grid PV installations.

I am brainstorming for few more suggestions. Do you have something on your mind? Please share to make such associations a success!

Note: I am not related in any way to the Solar Energy Association. Please consider the above opinions as purely personal.

Sunlight used to produce liquid hydrocarbon fuels: Could this be the next big thing?

noreply@blogger.com (Gaurav Trivedi) — Wed, 02 Feb 2011 05:20:00 +0000

The change in renewable space is fast paced and requires one path-breaking technology to prove that it can fuel the world's demand for energy. The issue with current solar energy technologies is that of storage. Researchers from the United States and Switzerland have tried to answer this. They are working on a "solar reactor" which can concentrate the solar energy on a cylinder lined with cerium oxide (ceria).

The technology:

This process breaks down the water into Hydrogen and carbon monoxide. Hydrogen produced could be used to fuel hydrogen fuel cells in cars, for example, while a combination of hydrogen and carbon monoxide can be used to create "syngas" for fuel. According to the people involved on this project, methane can be produced by using the same machine.

The downsides:

Very low efficiency: Around 0.7% to 0.8% of the total solar energy taken in the machine. However, this can be improved upto 19% with better insulation and smaller apertures.

Requirement to be successful:

The usual suspects – low-carbon policy, economies of scale, government subsidies, etc.

One common string that binds all the renewable energy technologies as you might have guessed till now is the "cost vs. efficiency" factor. The third angle to this is, "why aren't people adopting it?" The number one reason I think is the marketing! How many solar/ wind companies in India actually market their products. Yes, this happens in conferences and exhibitions which are more of a B2B rather than a B2C ventures. Remember that computers were introduced as an industrial machine but now has found its place with retail customers. Same could be the case with any renewable energy technology. I know how. Now you do. So what are we waiting for?

Let the thought shine..

Story when entreprenuer, microfinancing and renewable energy got hitched

noreply@blogger.com (Gaurav Trivedi) — Fri, 22 Oct 2010 06:44:00 +0000

There is a constant lingering uproar about the cost of renewable energy technologies. In India it costs around INR 140-160 million per MW to install a solar PV plant. Most of the companies have ventured with huge plans and would be able to cater to certain percentage of the pie. But how can state and central government implement the same? Also, various rural upliftment schemes have failed miserable in the past along with failure in providing employment opportunity to the youth in these regions. How to tackle the same? I found the answer from a model case in South Africa rural area.

A French-company PlaNet Finance is mulling over combining entrepreneurship, micro-financing and renewable energy all under one umbrella. The model establishes an environment where entrepreneurs are trained to start their own franchises within a community and also equips the franchisee with the necessary skills to run the business, paired with the necessary access to loan facilities. This has generated quite a buzz in the community with rural people looking forward of implementation of the same. It would provide employment opportunity and clean power for the community and good returns for the entrepreneurs and micro-financing institutions.

What's you take on the same? Can this be adopted in India as well? What would be the challenges?

Will renewable energy emerge from the fad?

noreply@blogger.com (Gaurav Trivedi) — Mon, 04 Oct 2010 11:53:00 +0000

In a recent update, internationally all the venture capitalists (vc) have invested around USD 1.53 billion, less than USD 1.71 billion last year in the same quarter. No matter we go ga-ga about "India renewable story", North America attracted around 61 percent of the total clean-tech capital. In comparison, India has managed a meager 4 percent.

In terms of sectors, transportation i.e. clean cars have received the maximum level of investments followed by biofuel and smart grid companies. The point here is that renewable & clean-tech sector is attracting in new business models. Solar and other allied technologies i.e. wind, hydro, bio-gas need fuel in-form of huge investments. Companies in these sectors need to showcase the financial viability along with their support to a carbon-free environment.

Towards this, the main culprit should be held. I believe it is the project management in research and development activities undertaken by the companies. Many projects in solar energy are government and/ or private-company funded. While private companies push their R&D centers for results, the same can not be said for government funded projects. For starters, each penny of the funding must be made accountable with very strict guidelines and deadlines. The main two aspects of a solar funding must be made: 1) increase solar efficiency 2) make it commercially viable. Many exotic materials have been tried. But are they commercially viable? The answer is for you to answer!

Story when we tried to solve the case of "disappeared money" for renewables energy development in India

noreply@blogger.com (Gaurav Trivedi) — Mon, 13 Sep 2010 12:27:00 +0000

Let us all solve this new case on renewable energy growth in India. I will provide the brief highlights of the case and please feel free to give your verdict.

The Case: Ministry of New and Renewable Energy (MNRE), the nodal ministry for carrying out the renewable energy implementation has not been performing well

The Appellant: A parliamentary panel has reported that MNRE has been failing to meet project targets and that government should stop disparities in utilization of funds in its rural renewable energy programmes.

Key Pointers:

· "Glaring disparity" between the targets set and achieved under different programmes on rural renewable energy being run by MNRE

Planned

Achieved

· MNRE had proposed a plan outlay of INR 2,500 crore for its rural energy schemes for the current Plan period (2008-12) including

· INR 650 crore for Remote Village Electrification (RVE)

· INR 900 crore for non-electrical RE systems

· INR 250 crore for biogas scheme

· INR 1,000 crore outlay was approved

· The ministry has managed to electrify only 2,300 villages out of the targeted 5,000 since March 2007, with an expenditure of INR 272 crore — 90 per cent of the budget estimate of INR 303 crore.

· Under RVE, even 50 per cent of the villages earmarked under the target for first three years of the 11th Five-Year Plan (2007-12) have not been electrified and budget allocation of about 90 per cent has been eaten up.

· Under biogas, only 250,000 plants have been established while the expenditure on the same has overshot the budgetary estimate

· Setting up only 534 Mw of small hydro power capacity against the targeted 1,400 Mw for the current Plan period

· This target had been reduced to 1,000 Mw during mid-term appraisal without reducing the financial allocation of INR 700 crore.

· In the Village Energy Security (VESP) scheme, only test projects have been commissioned so far by the ministry while the original proposal was to cover 1,000 villages with a total outlay of INR 225 crore during the current Plan period

The Defendant plea: MNRE cites lack of coordination between the implementing agencies of Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) and RVE as one of the constraints for meeting targets.

The Appellant speaks: The panel disagreed and called the obstacles highlighted by the ministry as "neither unforeseen nor insurmountable".

The Possibilities:

· State governments may have not paid adequate attention to the implementation of the scheme

· Lack of coordination between the implementing agencies of RGGVY and RVE

· Too many government departments dealing in a single cause: Implementing renewable energy

· Lack of project management skills and personnel at MNRE and related agencies

· …..

Please feel free to comment and give your opinion on the same.

Story when government decided to enforce “Green” laws even without “Green” power

noreply@blogger.com (Gaurav Trivedi) — Wed, 07 Jul 2010 13:07:00 +0000

I was kind of facing a 'writer's block' since some time now! But today's one news rejuvenated my senses. In an "apparently absurd" decision (as Economic Times has rightly put it), the central power regulator (Central Electricity Regulatory Commission – CERC) has mandated all power companies for purchasing 6% of their power needs from green (solar, wind, mini & micro-hydro, bagasse and biomass) sources.

Now the question is: where the absurdity comes in this? We all know that there isn't any enough renewable power generating capacity in India that can suffice the requirements of this law. For example, for a utility in Maharashtra it is necessary to buy 140 MW of solar power and 10 MW of electricity generated by mini and/ or micro-hydro projects. But the point remains form where will the utility buy power as the state has only 1 MW of solar capacity and 1.5 MW of mini/micro hydro projects. In case of non-compliance, what are the options for utility companies?

a) Buy Renewable Energy Certificates (RECs): To be bought from renewable power generators at predetermined cost of INR 17/unit for solar and INR 3.9/unit for mini & micro-hydro projects.

b) Pay a penalty: It is non-recoverable and non-reclaimable

This would create an unfair and unjust playing field for utility players. Before few years, they were pampered by these same regulatory bodies. And now, they are in a way discriminating highly against these players. Imagine, government is mulling private players in power distribution franchising schemes. The government and allied agencies have taken the adoption too far. First we need to build such capabilities, and then enforce them on people. For e.g. in case of road projects, for implementation of toll roads, one needs to have electronic toll collection booths in place. In the similar fashion, one needs to develop renewable energy first, and then impose such rules.

However absurd the coal tax seems in the first instance, it is atleast proactive in terms of making company pay for using something harmful. The new directive under discussion is company is paying for something that is not available. I hope you share the same viewpoint. If not, we can discuss the same.

Story when CERC announced new policy for rooftop solar energy project with capacity less than 1 MW in India

noreply@blogger.com (Gaurav Trivedi) — Fri, 11 Jun 2010 09:04:00 +0000

I have just gone through "Draft tariff guidelines for rooftop PV and other small solar power plants". It is a well detailed but involves too much technical and legal language. I would like to highlight some of the key takeaways that would be useful for understanding the new policy guidelines.

· The tariff period for Rooftop PV and Other Small Solar Power Projects shall be 25 years

· Project specific tariff, on case to case basis, shall be determined by the State Commission for Rooftop PV and Other Small Solar Power Projects based on technologies such as concentrated photovoltaic, dish sterling engine or any other technology, if a project developer opts for project specific tariff.

· For generic tariff to be determined on suo motu basis, the debt equity ratio shall be 70:30

· For the project specific tariff, the following provisions shall apply :-

Ø If the equity actually deployed is more than 30% of the capital cost, equity in excess of 30% shall be treated as normative loan.

· The normative return on equity shall be:

Ø Pre-tax 19% per annum for first 10 years

Ø Pre-tax 24% per annum 11th year onwards

· The proceeds of the carbon credit from approved CDM Project shall be shared between the project developers and concerned off taker in following manner

Ø 100% of the gross proceeds on account of CDM benefit to be retained by the developer in first year after the date of commercial operation

Ø In the second year, the share of the beneficiaries shall be 10% which shall be progressively increased by 10% every year till it reaches 50%, where after the proceeds shall be shared in equal proportion by generating company and the beneficiaries

· The Capacity utilization factor for Rooftop PV and Other Small Solar Power Projects shall be 18.0%

· The normative capital cost for setting up a Rooftop PV and Other Small Solar Power Project for FY 2010-11 shall be Rs. 1740 Lakh/MW

· The O&M Expenses shall be Rs. 11 Lakh/MW for the 1st year of operation for Rooftop PV and Other Small Solar Power Projects

· The Rooftop PV and Other Small Solar Power Projects deploying PV modules and Inverter systems complying with relevant IEC/BIS standards and/or compliant with applicable standards as specified by Central Electricity Authority shall alone be considered to be technically qualified

· The metering arrangements for all grid interactive Rooftop PV and Other Small Solar Power Plants shall essentially be in accordance with the metering scheme finalized by the appropriate State Electricity Regulatory Commission

· The communication must be able to support Real time data logging, Event logging, Supervisory control, Operational modes and Set point editing

This policy would bring some clarity to the people interested in roof-top system. There are some tariff issues still pending but it's a good move by government in the forward direction.

Note: This is a compilation of policy guidelines from CERC website. For more information you can visit http://www.cercind.gov.in/

Story when you thought ‘over-the-top’ to answer energy woes in India!

noreply@blogger.com (Gaurav Trivedi) — Wed, 02 Jun 2010 05:47:00 +0000

Just imagine how many of us have a car at home? What other use can we make of the it other than traveling? Think of any?

Now here's the idea! Start installing the solar modules on car/ bus roof-tops. It won't look that bad for sure! There are roughly 20 million cars in India. If we take a conservative estimate of 20% conversion, it translates to 4 million cars! A nationwide legislation can be brought in for its implementation.

Now here's how it will work! Most of the time the cars/ buses are standing idle in the car shed or in front of office. A solar panel can be assembled with an average cost of INR 70 per watt based on the car roof size. This can also be provided at a subsidized rate. The power generated from these panels can be drawn in the smart grids (which will soon become a reality in India). Each car owner can be given a unique id on which will contain his/ her solar panel information. So whenever, the car owner attached the power cord to the smart grids, his account will get credited with the power his panel produces. As an advanced feature, at certain points a 'grid-charging' point can be placed wherein a motorist can feed in more solar energy in grid when his car is idle.

The car owners can be rebated from their household electricity bills based on the power generated by the panels. Household doesn't have to install a large residential roof-top and still can avail the benefits such as reduced electricity bills and RECs.

Various state-owned and private road transportation agencies can do the same on their buses which run during the day time and the solar power generated can be saved in batteries. These would reduce the power generation burden in various states at night when the power usage is maximum.

Though it's a bit ambitious, a nationwide legislation along with technology interoperability will see this concept through. Any takers of this idea?

Story of launching Renewable Energy Certificates in India and allied facts

noreply@blogger.com (Gaurav Trivedi) — Wed, 26 May 2010 06:19:00 +0000

You know it feels really good when you envisage something and it really turns up sooner than later. Few days back, I wrote a story on Renewable Energy Certificates (RECs) and understanding its mechanism. RECs are imperative for reducing the payback period and it has been adopted successfully in US for the solar energy growth. Yesterday, an official from Central Electricity Regulatory Commission released a statement that RECs will be launched in August 2010 with an agreement with 2-3 seller and equal number of buyer states. The RECs will subsequently be traded on Indian power exchanges.

Initial Participants

REC Selling States	REC Buying States
· Gujarat	· Maharashtra
· Rajasthan	· Madhya Pradesh
	· Himachal Pradesh
Indian Exchanges where it will be traded
· Power Exchange of India
· Indian Energy Exchange

The most important aspect is still pending: Pricing of the RECs! The tentative rates for each category of RECs are:

Price Segment	Solar REC	Non-Solar REC
Floor price	INR 12,280 (USD 258) per MWh	INR 1,450 (USD 30) per MWh
Forbearance price	INR 17,230 (USD 362) per MWh	INR 3,780 (USD 79) per MWh

The biggest concern that remains: Liquidity of tradable RECs. This needs to be addressed only by the market players and speculators. I think market making should be allowed in the initial stages by the power exchanges. This can apply the same model as it is followed in US. Market makers should be hired by the power exchanges and they should trade for increasing the volume of the RECs.

This development can be a win-win situation for all the concerned entities: solar power producers, government, customers and utilities.

Story of incentives offered for Solar Energy Projects in India

noreply@blogger.com (Gaurav Trivedi) — Tue, 25 May 2010 06:50:00 +0000

For the past few weeks there has been many questions being raised about the incentives offered for solar energy in India. This figure above attempts to explains some of these in the leading solar states in India.

I hope this is useful.

Story of developing public private partnerships in solar energy projects in Gujarat, India

noreply@blogger.com (Gaurav Trivedi) — Wed, 19 May 2010 05:55:00 +0000

One of the most critical factors impacting the growth of solar power is availability of land. Land acquisition is one of the major issues for most of the infrastructure projects including energy. The process of acquiring land at time leads to time delays and cost overruns in most of the power projects undertaken. Now what is the solution to fast track this whole process?

1. Government can come up with a proposal for the independent solar power producers to allocate the land based on their requirement. Obviously this has to go under bidding process along with the stringent deadlines for competition of the project within the stipulated timelines. Non-adherence can lead to penalties and exclusion from bidding in future solar power projects.

2. Towards this, the government has to acquire the land before the proposal is been sent out. A separate cell can be made which would look into only land acquisition. The land has to be non-arable or semi-arable. The grid-connectivity should be feasible. Also in favor of the owner of the land, the land should be acquired at the current market price and not at the subsidized rate. This would give the motivation to the land owner to sell off his land too.

Now the question arises, what would government get in return?

1. The process of the solar energy development is fast-tracked. The government owns the land and the private player is provided with a Power Purchase Agreement (PPA) for 25 years (i.e. the expected life of the solar panels). The rate same as in feed-in-tariff can also be provided which would also increase profitability of the solar power producer.

2. The private player has to bring in operational efficiencies as it has only 25 years to earn profits. However, the solar producer has to calculate it's return based on the panels and the initial installation costs.

3. The government also gets hold on the Renewable Energy Certificates (RECs) which can be traded in future.

4. Already many states such as Gujarat in India have started adopting the PPA model. But the land acquisition still remains a headache for the solar power producers. This model can resolve this issue.

This would help in bringing economic and environmental plans to a reality. Without such arrangements, the solar plan of achieving 20 GW of solar power by 2022 would be in jeopardy.

The story of India being front runner in development of solar energy by 2050

noreply@blogger.com (Gaurav Trivedi) — Thu, 13 May 2010 06:41:00 +0000

Today it was a "warm" morning with the report by IEA (International Energy Agency) for all the solar project owners and enthusiasts in India. The finding concurred with the views expressed on solarishi.com.

1. India after USA will be the front-runner in development and adoption of solar energy. Thanks to high solar insolation and proactive government policies.

2. CSP and PV are expected to contribute around 11 percent each towards the solar energy's share of meeting the quarter of global energy demands by 2050. The rest (around 3 percent) will be solar heating applications. Thus, instead on looking them as competing technologies, they should be viewed as complementing ones.

The PV Story

India and China both are increasing investments in Solar PV space but China is currently leading by building large PV panel manufacturing capacity of approximately 2 GWs. On the other hand, India has around 10 fully integrated players manufacturing solar cells, solar panels and complete PV systems around 50 assemblers of various kinds. These players are able to supply only 200 MW for rural, remote area and industrial requirements. This makes China more cost competitive than India. The need of the hour is heavy support towards building up dedicated SEZs for integrated PV solar manufacturing and investments in R&D.

The CSP Story

India and China has to again face competition for investments in CSP where one company recently showcased plans to develop solar towers of capacity of 1 GW and 2 GW respectively. Gujarat and Rajasthan, the two north western states where due to high solar insolation, utility-scale CSP power plants can be established. Electricity from CSP plants as shares of total electricity consumption can increase from 5 percent in 2020 to 40 percent in these two states. There are not many India-based players which have capability to provide CSP technology and solutions.

What needs to be done to reach these targets will be discussed in subsequent stories.

Google Invests In Wind Power Technology - Guest Post by Jack Lundee

noreply@blogger.com (Gaurav Trivedi) — Thu, 06 May 2010 13:33:00 +0000

Green solutions and technologies are needed now more than ever. Yet, many continue to be hard to find and implement on a broad scale. Renewable energy sources are running almost on empty, mining and drilling for fossil fuels can be dangerous and costly, and the planet is constantly reminding us that it's the one paying the price. However, there are plenty of opportunities for clean and renewable energies to be a big part of the green landscape. With the right funding and investment renewable energy technology like wind power could help turn the tide when it comes to environmental concerns.

Wind power is a clean energy system that converts the planet's own wind into energy by using mills, turbines, and even airborne kites. The earth's wind moves the mills that turn the turbines, which creates kinetic energy into electricity that then can be circulated to power thousands of homes. Up to this point, wind power has been a well-known clean energy source but has mostly been underutilized and under funded. However, with the web search company Google now investing in the technology, wind power's search to become a widespread energy source may be over.

Last Friday, Google made a sizable investment of $38 million to North Dakota based wind farms. These wind farms harness the wind energy of the North Dakota plains to create electricity that can power more than 55,000 homes and does so in a clean and safe manner. Google understands that an investment of this size, in a technology as beneficial as wind energy, can help create more wind farms around the country, create more jobs within this clean energy, and help stimulate the economy. For Google, it's as much about helping the environment, as it's about making smart business decisions about the future of this planet. Other corporations like Globetrotters Corporation (a Chicago based engineering corporation founded by C.E.O. Niranjan Shah and Hewlett-Packard are following in the same footsteps as Google. These companies are coming to the conclusion that investing in green technology and green energy is really an investment in the future of the technology, the planet, and even their own businesses.

I guess, it looks like Google realizes which direction the wind is blowing.

Note: This is the first post by our guest author Jack Lundee. A "warm" thank you to Jack for providing insights on Wind Power Technology.

Image Source: Fast Company

Story of Renewable Energy Certificates for promoting the solar energy in India (Part 2)

noreply@blogger.com (Gaurav Trivedi) — Thu, 29 Apr 2010 08:57:00 +0000

What could be achieved through RECs?

RECs would increase the flexibility for participants and overcome geographical constraints. It could also reduce the transaction costs for renewable energy transactions. This requires a robust penalty mechanism for enforcement of RECs in India. Moreover, it would also create competition among various renewable technologies to compete at operational level. Finally it would reduce the risks of local Discoms by limiting their liability to only energy purchase.

Breaking RECs myths

There are certain points that are to be kept in mind while understanding what REC is and what it is not:

· REC scheme is NOT an incentive mechanism. Instead it enables the sale of purchase of renewable component across the state boundaries.

· REC does NOT represent any fiscal attributes such as 'Accelerated Depreciation', hence it is different than Production Tax Credits

· Though REC represents environmental attribute, it is NOT related to carbon credits as two mechanisms are independent of each other

REC mechanism could be implemented with any 'Generation based incentive' scheme as both mechanisms are based on certification of generation

Operation of REC Mechanism

The above figure represents how the REC mechanism would work. There are various issues that have to be addressed for implementation of the RECs. These are:

· Pricing and Denomination of REC

· Physical form of REC

· Creation of REC

· Eligible RE Technologies and Generators

· Obligated entities

· REC registry

· Banking and Trading

· Enforcement for non-compliance

· Shelf life of RE certificate

· Sunset date for REC mechanism

· Compatibility with other schemes

A broad policy mandate needs to be introduced for REC mechanism and inter state REC sale in India.

RECs can bring about the much needed change in the subsidy mechanism currently used by India for promoting solar and other renewable energy. This would require a detailed planning and structuring of the certificate but it is imperative to act now when India is attracting huge investments in this space. Or else, China would be toppling us in renewable energy also in future!!!

Note: This analysis has been derived from a report by IREDA and ABPS Infrastructure Advisory Pvt. Ltd.

<<Story Ends>>

Story of Renewable Energy Certificates for promoting the solar energy in India (Part 1)

noreply@blogger.com (Gaurav Trivedi) — Thu, 22 Apr 2010 06:15:00 +0000

The story so far

According to the Electricity Act 2003, there are number of provisions made acceleration of development of renewable energy in India. Regulatory commission specifies purchase obligation from renewable energy sources.

Tariff policy implemented in January 2006 has proposed that the Discoms (Distribution Companies) should procure renewable energy through competitive bidding within suppliers offering the same type of renewable energy. This would encourage the companies to be cost-competitive and bring in efficiencies in their operations. In long-term, no matter what the situation is RE technologies will need to compete with all other sources in terms of full costs.

In 2008, National Action Plan for Climate Change also laid down some concrete targets. At National level for FY 2010, target for RE purchase may be set at 5 % of total grid purchase, to be increased by 1 percent each year for 10 years. For keeping a check, Central and State governments may set up verification mechanism to ensure renewable power is actually procured.

Appropriate authorities may issue certificates that procure renewable power in excess of the national standard. Such certificates may be tradable, to enable utilities falling short to meet their Renewable Portfolio Standards (RPS).

Decoding Renewable Energy Certificates (RECs)

Internationally, two instruments are used for promotion of renewable energy:

Feed-in-tariffs: Germany, Spain, China

RPS/ RECs: REC (US and Japan), ROCs (UK)

According to wikipedia:

"Renewable Energy Certificates (RECs), also known as Green tags, Renewable Energy Credits, Renewable Electricity Certificates, or Tradable Renewable Certificates (TRCs), are tradable, non-tangible energy commodities in the United States that represent proof that 1 megawatt-hour (MWh) of electricity was generated from an eligible renewable energy resource. These certificates can be sold and traded or bartered, and the owner of the REC can claim to have purchased renewable energy."

REC mechanism can be introduced within existing framework of EA 2003. Cooperation among the States is essential and State Electricity Regulatory Commissions (SERCs) should recognize procurement of RE generated in other States for the purpose of compliance as Renewable Purchase Obligation (RPOs) by regulated entity in their respective jurisdiction.

….To be continued in Part 2.…

Story when Mr. Narendra Modi said “walk the talk” for encouraging Solar Energy in Gujarat

noreply@blogger.com (Gaurav Trivedi) — Thu, 15 Apr 2010 09:10:00 +0000

Whenever a politician in India makes any statement, we tend to have the opinion that "he is just saying because he has to". This would be the case in other countries too. Politicians all over the world have propagated that "renewable energy has to be adopted by all of us", "we need to have energy sustainability", "we are promoting renewable energy and invite investors", etc. But very few have been able to set an example for the people in their respective constituencies by adopting the same. One such case is Mr. Narendra Modi, chief minister of Gujarat.

Mr. Modi has initiated the solar development in Gujarat making it number one state in terms of solar power investments. Now he has come up idea of electrifying his own, his fellow ministers' and in senior IAS/IPS officers' bungalows with solar power.

To put in the words of Mr. Vagmin Buch, director of GEDA (Gujarat Energy Development Agency): "As a part of the state government's plan to make Gandhinagar, a Solar City, we have installed the solar power generation systems in the bungalows of ministers in the minister's residential complex and in the bungalows of senior officers. The work in around 100 properties is about to completed. We are also preparing plans to expand the Solar Power System to the other government buildings in Gandhinagar." GEDA has been an instrumental government nodal agency with bringing in incentives and encouraging solar energy.

Also, GEDA is planning to install solar power run air conditioners in the secretariat. Though it's in planning stage it's a giant leap forward to make people see that their government is implementing the same what it is propagating. The concept of Gandhinagar as a solar city and making it carbon neutral is put in place by TERI. We can expect many more governments taking a cue from this story and making their own offices carbon-neutral.

Now that's what we call "walk the talk"... Don't we?