cleantech_handbook_india_team_finland_13_jan 2014

CLEANTECH HANDBOOK – INDIA

CLEANTECHFINLAND


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

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. Finland’s 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 to create 50,000 new jobs by 2020.

Finland is home to some of the world’s 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 Finland’s 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 take full 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, but also 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


5Cleantech Handbook – India

Introduction

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 to foster 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.

India’s 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 attractive destinations in the world for environmentally-friendly investments, as per an ADB report.

1.5 Emerging trends and growth drivers

Governmental Regulations: India is becoming more active today with an emphasis on 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 man’s 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: The adoption 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 put pressure on rapidly developing economies like India to adopt green technologies and not repeat the unsustainable mistakes of the past.

Strong fundamentals driving India’s economyFourth 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

ILLUSTRATION OF THE ADMINISTRATIVE SET UP

India is highly fragmented and complex. Home to many distinct cultures and 22 languages recognised by the country’s 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 following 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

Cleantech – Key ministries in India

Ministry Industry Sector

About Responsibilities Programmes Web Address

New and Renewable Energy

Renewable energy

Develops and spreads out new and renewable energy solutions to supplement the energy requirements of the country

Facilitate research, design, development, manufacture and deployment of new and renewable energy systems/devices for transportation, portable and stationary applications in rural, urban, industrial and commercial sectors

1.Grid-interactive renewable power projects

2. Programme on Battery Operated Vehicles, MNRE

www.mnre.gov.in/

Water Resources

Water management

All matters both general and technical relating to the development and management of water resources in the country including water use efficiency, com

Responsible for development, conservation and management of water as a national resource and overall national perspective of water planning and coordination

National Water Framework Law

National Water Policy

wrmin.nic.in/

Science and Technology

Science and Technology (S&T)

Plays a role in organising, coordinating and promoting S&T activities in the country

Promoting and supporting new areas of technology integration including cleantech

Climate Change Programme, Water Technology and Solar Energy Research Initiative Programme

www.dst.gov.in/

Urban Development

Urban design, sustainable urban frastructure

Formulation and administration of the rules and regulations and laws relating to the housing and urban development

Formulating policies, supporting programmes, monitoring programmes so far as they relate to urban development concerning all the issues in the country

JNNURM, National Mission of Sustainable Habitat

moud.gov.in/

Ministry Industry Sector

About Responsibilities Programmes Web Address

Environment and Forests

Environment, climate change and forestry

Planning, promotion, coordination and overseeing the implementation of India’s environmental and forestry policies and programmes

Implementation of policies and programmes relating to conservation of the country’s natural resources

The Sustainable Land and Ecosystem Management (SLEM) Programme;

Climate Change Programme Fund

envfor.nic.in/

Petroleum & Natural Gas

Petroleum industry

Exploration and production of oil and natural gas, their refining, distribution and marketing, import, export, and conservation of petroleum products and Liquified Natural Gas

Oil refineries, including Lube plants, exploration and exploitation of petroleum resources, including natural gas

Strategic Crude Oil Storage; Ethanol Blended Petrol Programme

petroleum.nic.in/

Power Energy efficiency

Perspective planning, policy formulation in regards to thermal, hydro power generation, transmission and distribution

Administration of the Electricity Act, 2003, the Energy Conservation Act, 2001

1. National Mission for Enhanced Energy Efficiency – NMEEE

2. Energy Savings Certificate Trading

3. Carbon Finance – Energy Efficiency

www.powermin.nic.in/

Earth Sciences

Environmental protection and climate change

Provide services in forecasting the monsoons and other climate parameters, ocean state, earthquakes, tsunamis and other phenomena related to earth systems

The main responsibility is to look after Atmospheric Sciences, Ocean Science and Technology and Seismology in an integrated manner

1. Marine Living Resource

2. Coastal Zone and Island

3. Ocean Observation and Infromation Services

dod.nic.in/





Cleantech – Governmental programmes in India

Programmes Key Stakeholder/s

Key Objectives Technology Focus

National Action Plan on Climate Change (NAPCC)

Prime Minister’s Council on Climate Change

Ministry of Environment and Forests

National Solar Mission

National Mission for Enhanced Energy Efficiency

National Mission on Sustainable Habitat

National Water Mission

National Mission for Sustaining the Himalayan Ecosystem

National Mission for a “Green India”

National Mission for Sustainable Agriculture

National Mission on Strategic Knowledge for Climate Change

National Bio-energy Mission

Renewable energy technology development

Energy efficiency technology integration in industries, buildings, urban planning

Waste and water management and recycling

Pollution control

Electric vehicles

Rural Electrification Policy (Renewable Energy)

Prime Minister’s Council on Climate Change

Ministry of Environment and Forests

Promote renewable sources of energy with a high focus on solar energy

Promote energy efficiency and efficient use of natural resources including water

Afforestation across Himalayan region and other parts of India

Access to funds for private sector for developing environmental- friendly technologies

Creating affordable solar power systems

Producing power from waste

Geospatial technology for precision agriculture

Improve automotive fuel economy

Energy Conservation Act

Bureau of Energy Efficiency, Ministry of Power

Reduce energy consumption in different sectors of the economy

Promote energy efficient equipment

Increase energy awareness

Energy saving technologies in appliances, household electricals and other industrial machinery

Energy efficient building construction

Renewable Energy Policy

Ministry of New and Renewable Energy

Increase share of new and renewable energy in the fuel mix

Increase per capita energy consumption to global average

Provide electricity to rural and remote areas through renewable sources

Reduce dependence on energy imports and promote energy security through a diverse and sustainable fuel mix

Indigenous design, development and manufacture of renewable energy systems

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

Programmes Key Stakeholder/s

Key Objectives Technology Focus

Biodiesel Purchase Policy

Ministry of Rural Development

Reduce environmental impact of the transportation sector

Reduce oil imports and promote energy security

Encourage production of Jatropha

Biodiesel technology

Ethanol Blending of Gasoline

Ministry of Petroleum and Natural Gas

Reduce environmental impact of the transportation sector

Reduce oil imports and promote energy security

Encourage indigenous energy sources

Automotive fuel economy

Energy Conservation Building Code

Bureau of Energy Efficiency

Reduce energy consumption in buildings sector

Promote energy efficiency in building construction and management

Green construction technologies

Bachat Lamp Yojana

Ministry of Power

Direct reduction of Co2 emissions through efficient equipment

Reduction in energy demand

Energy efficient CFLs and lighting devices





14 Cleantech Handbook – India 15Cleantech Handbook – India

EMERGING CLEANTECH SECTORS AND

OPPORTUNITIES FOR FINNISH COMPANIES

3.1 Renewable energy

Renewable energy has enormous potential and is becoming an increasingly significant part of India’s 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 India’s energy security by diversifying the country’s energy mix and reducing dependence on imported fossil fuels. Renewable power represents about 12 per cent of the total installed electricity generation capacity 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 cent

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


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 applications

Solar cooling and solar steam generation systems for industrial process steam applications are emerging 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 mills for 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 in sugar 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



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 and Individuals

How can they help us?

How can they block us?

What would they want from us?

What do we want from them?

Research and Development (R&D)/Technical institutions

Engage in technology development/indigenisation efforts Manpower development

Misuse of assistance/subsidy

Skill development Financial support

Incubating new technologies

Equipment manufacturers and technology providers

Product marketing partners

Technology innovation Awareness creation among users

Misuse of assistance/subsidy

Financial support

Providing high quality products

State government Promotion of renewable energy programme at the state level through conclusive policies

Lack of adequate support for RETs

Lack of appropriate fund allocation

Inefficiency in delivery

Financial support

Timely release

Skill development

Facilitating effective implementation of RE projects and initiatives

Regulators (CERC, SERC)

Formulating condusive regulation that will support the RE policy initiative by the ministry

Through regulations that have inadequate enforcement measures

Cooperation Working together at the time of formulation of policies and regulations

Different ministries of Government of India

Promotion of renewable energy programme in complementary programmes

Lack of adequate support for RETs

Sectoral interest can block/hamper growth

Convergence of inclusive growth

Facilitating large scale off-grid applications such as SWH, solar cooking, solar lighting, solar airconditioning, kitchen waste processing, green building and campuses in their establishments

Groups and Individuals

How can they help us?

How can they block us?

What would they want from us?

What do we want from them?

Indian Renewable Energy Development Agency (IREDA) and other financial institutions/ partner bank

Concessional financing for RE projects

By not financing the RE projects due to high cost

Financial support through for instance guarantees

Large scale financing RE projects through concessional funds

International Financial Institutions

Source of low-cost funds

Lack of support Supporting particularly off- grid initiatives, and rural electrification efforts by providing debt funds at low-cost

Developers/investors (Including foreign)

Implementing RE projects and Programmes

Innovation in business model for inclusive growth

Availing financial support from the ministry but not implementing projects

Unfair practices

Sub-optimal monitoring of project

Financial support

Conducive policy & regulatory framework

Implementation of projects

Co-creating diligent sustainable business model f

NGOs Spreading awareness Factious NGOs spreading of misinformation

Financial support

Awareness generation

Lobbying with government agencies

End Users Large scale use of RETs and services

Non-cooperation towards usage of RE devices on account of:

Lack of awareness

High-cost

Utility factor

Awareness creation

Cost of such devices being made available at the same cost or lower cost than conventional system

Increased usage and promotion of RE systems and devices



Table 3: Institutional Framework for Renewable Energy

Level Central Government MNRE CERC

Centre Develop national •electricity tariff policies which also covers renewable energy

Provide fiscal •incentives for promoting renewable energy

Develops national renewable •energy laws

Sets technical standards for •renewable energy

Conducts resource assessment •and support R&D for renewable energy

Promotes effective use of •information technology for renewable energy, manages database

Reviews the programmes to •understand their effectiveness and efficiency

Sets guidelines for •feed-in-tariff design for different renewable energy technologies

Regulates the regional •electricity cooperation mechanism

Regulates interstate •open access and third party sales

Level State Government State Nodal Agency SERC

State Develop state level •renewable energy policies

Conducts resource assessment •for various renewable energy sources

Allocates renewable energy •projects and progress monitors

Provides facilitation service to •project developers

Facilitates clearances and land •acquisitions

Creates awareness and •promotes renewable energy adoption

Develops feed-in-tariff •methodologies

Determines •Renewable Purchase Obligation (RPOs) and enforcement mechanisms

Sets regulations on •interstate wheeling, open access and third-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. India’s current installed capacity of 1,044 MW accounts for only 0.5 per cent of its total power generation capacity.

Government initiatives to develop 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 country’s 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-grid •application

Validating social and •economic viability

Scaling up various •

Validated •application

Rolling out •business models

Reducing •solar power cost to achieve grid tariff 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 (million sq mt.)

7 15 20

Drivers and challenges

Drivers Challenges

Demand side growth Supply side growth Lowering the cost of manufacture

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

Falling costs Over dependence on oil imports

Closer industry – government cooperation

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

Heavy government subsidies

Huge rural demand Complicated financing infrastructure

Inclination for clean technology

Abundant sun rays Sporadic consumer awareness

Lack of standards

India’s 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 country’s economic growth. Solar energy can fulfil the energy demand with finesse



Table 5: Opportunity Snapshot for Finnish Companies

Solar Thermal Solar PV

Description The most common solar thermal applications in India are off-grid and include solar water heating, air heating and cooling, solar cookers, and passive architecture to heat and cool buildings

The main types of solar PV applications types for India are community lighting systems, lanterns, street lights, fixed home lighting systems and water pumps

Growth Forecast

For solar CSP and PV together, National Solar Mission attempts to reach an •installed 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 the 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 expenses such 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 »

Policy Measures

Several support schemes are available in the form of generation based incentives capital subsidies, financial support for detailed project report, subsidies for solar thermal technology adoption to increase energy efficiency in buildings. Some states offer rebates on electricity rates for households with solar water heating systems

80 per cent accelerated depreciation, exemption from excise duties, low import tariffs on raw materials and components, soft loans from IREDA and other nationalised banks, capital subsidies and training programmes

Financing The three main financing options for implementing solar PV captive power plants •are 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 Increased R&D•

Hybrid power systems•

Off-grid solar thermal applications•

Solar building technologies•

Solar cooling and steam generation •systems for industrial processes

High temperature solar thermal •applications

Thin film technologies, including •process technologies, low-cost substrates, large size cell/modules

Technologies to improve conversion •efficiency

Grid-interactive technologies•

Improved solar PV technologies•

Energy storage•

Improved module technologies •including light weight and higher density modules

Solar Thermal Solar PV

Some Key Facts

India averages 300 days of sunlight per year, which translates to 100 GW of •solar 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 to •production of components; however, there are still cost barriers throughout the supply chain

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

India’s current solar capacity of 1,044 MW, accounts to only 0.5 per cent of its •total power generation capacity

By coupling country’s national policies with those at the states, Jawaharlal •Nehru 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 of Activity

Website

Solar Energy Centre (SEC) Solar energy technologies

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

Solar Energy Society of India (SESI)

Renewable energy www.sesi.in/

Solar Energy Corporation of India (SECI)

Solar energy technology

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

Conclusion

Solar energy possesses tremendous potential in bridging India’s energy demand-supply gap in the future. Some of the immediate actions to enable growth are efficient implementation of renewable energy certificates, usage of carbon trading 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 the world. India is expected to have 89 gigawatts (GW) of installed wind power capacity by 2020 and attract

Euro 11.95 billion annual investment according to India’s Wind Energy Outlook 2012. According to official estimates made by the Ministry of New and Renewable Energy (MNRE), India’s wind power capacity stands at 102,000 MW. India’s total installed capacity today is close to 18,000 MW which is the fifth largest in the world.

Government initiatives to promote 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



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 plans for the 12th Five 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 Withdrawal of the AD and GBI schemes

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

Inclination for clean technology Non-remunerative increase in tariff

Over dependence on oil imports Increase in cross-subsidy charges

India‘s unique proposition

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 India’s 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 the intermittent nature of wind could cause difficulty in grid stability. Wind power is one of the most RE technologies with over 74,000 MW installed capacity globally

Growth Forecast

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

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

Technology and innovation are swiftly moving wind energy towards grid parity •and it won’t be long before it can directly compete with even coal-based power; perhaps even as early as 2015



Wind Energy

Financing Government incentives include a feed-in-tariff, exemptions from excise duties, •and tax exemptions for infrastructure-related projects. Additionally, the states that have created RE portfolio standards have helped accelerate the wind sector. There is a burgeoning interest by investors like Goldman Sachs, Black Stone, IDFC in the private 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 hybrid •systems, and wind mills for water-pumping applications are also largely untapped markets

R&D for new research into wind energy•

Some Key Facts

India’s wind energy potential is now considered to be at least double the original •estimate of 48.5GW

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

Capital cost in India is the lowest in the world and India is emerging as the •fastest growing supply chain hub with many industries choosing for in-house manufacture 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 project •development model is likely to shift from turnkey to a self-developed one

Delayed payment from distribution companies is impacting long-term planning •and 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 Turbine Manufacturers Association

Research and development www.indianwindpower.com

Indian Wind Energy Association Wind energy outreach www.inwea.org

Centre for Wind Energy Technology (C-WET)

Wind energy research www.cwet.tn.nic.in

Winrock International India Research on energy and climate change

www.winrockindia.org

World Institute of Sustainable Energy

Knowledge management and consultancy

www.wisein.org

Conclusions

India’s 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 country’s supply of clean renewable energy. But, to tap this vast resource, India must develop and implement smart business 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 need for 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 India’s energy security challenge. It will also constitute a major contribution by India to the global effort to meet the challenges of climate change.




Drivers Challenges

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

New innovative policies and programmes by the government

Perennial availability of biomass

Avoids food versus fuel debate Fragile supply chain

Rising energy needs Lack of biomass storage and transportation facility

GHG mitigation Lack of mechanisation in Indian agriculture sector

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 addition

Growth 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 availability •with reasonable cost structure

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

More than 70 per cent of the country’s population depends upon biomass for its •energy needs


Research Institute/NGO Mainline of Activity Website

Petroleum Conservation Research Association National Biofuel Centre

Bioenergy research and development

www.pcra-biofuels.org/utt.htm

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

Conducts research into dryland crops, including those that can serve as feedstocks for biofuels

www.icrisat.org/

Centre for Indian Bamboo Resource & Technology (CIBART)

Feedstock project development and implementation, technical consultancy and turnkey services on all aspects of bamboo

www.cibart.org/

Biodiesel Association of India Industry association for the biodiesel industry

www.bdai.org.in

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

Indian Biogas Association Association for the Indian biogas industry

www.biogas-india.org/


Bioenergy

Description Biomass-based energy generation has significant potential to contribute to India’s growing energy needs. Technology has also significantly advanced and is being made available locally along with a host of financial incentives and policy measures being put into place to accelerate the investment in this sector.

Growth Forecast

More than 540 million tonnes of crop and plantation residues are produced every •year 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 in •the 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 tax •holiday 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 offer •soft 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.



3.1.4 Waste to energy

Background

India’s 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 solid waste 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 as turnkey solutions.

Drivers and Challenges

Drivers Challenges

Waste output per capita is growing as much as 1.33 per cent per year

Waste to energy is a new concept in India

55 million tonnes of municipal solid waste and 38 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 near the plant site

GHG mitigation Lack of financial resources

Over dependence on oil imports Lack of government support for land allocation supply of garbage, and evaluation facilities


Waste to Energy

Description The Indian Government considers WTE to be a renewable technology, and the MNRE has developed the National Master Plan for Development of WTE in India. The MNRE lists a number of technologies for energy recovery from urban and industrial wastes that not only reduce the quantity but also improve the quality of waste to meet the required pollution control standards, besides generating a substantial quantity of energy

Growth Forecast

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

1500 MW from MSW

225 MW from sewage/sludge

1300 MW from industrial waste



Waste to Energy

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

Financial incentives such as subsidies on interest rates and capital costs for •demonstration projects

100 per cent accelerated depreciation and exemption from sales and excise •taxes are offered

Financial assistance to waste to energy projects are provided by MNRE, MoEF •and financial institutions like IREDA, NABARD, state financial corporations and commercial banks

International agencies supporting funding of waste to energy projects include •USAID, kfW, JBIC, GEF, IFC, ADB and the US EXIM Bank

Opportunities 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 Key Facts

An estimated 55 million tonnes of municipal solid waste and 4,400 million cubic •metres of liquid waste are generated in urban areas of India annually with a potential of 2,600 MW of power production

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

Indian Government has proposed incentives for waste to energy projects that •would come up through public-private partnership mode with city municipalities in the 12th five year plan



National Environmental Engineering Research Institute (NEERI)

Energy research www.neeri.res.in

Department of Science and Technology (DST)

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

Waste to Energy Research and Technology 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 Government’s own figures would suggest that the cost of waste to 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. With 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 private small 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 it cheap 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




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 from Small Hydro (IASH)

R&D, planning, consulting on construction and operation

cbip.org/iash/iash.html

Indian National Hydro-power Association

Promotion and development of projects

hpaindia.org/

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

National Hydroelectric Power Corporation (NHPC)

Public sector enterprise which promote and organise an 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 MW have been installed in India to the end of April 2013, with 24 states announcing a policy to invite private sector bodies to set up projects. In addition, 281 small hydro projects with an aggregate capacity of 1,061 MW are also under construction in various states.

Growth Forecast

Recognising that small hydropower projects can play a critical role in improving the overall energy scenario of the country and in particular for remote and inaccessible areas, the ministry aims to harness at least half of the potential in the country over the next decade to bring the installed capacity of small hydro to about 7 GW by the end of 12th plan in 2017.

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

Government is also providing financial support to the state governments for the •identification of new potential sites, including surveys and the preparation of detailed project reports, and renovation and modernisation of old projects

Financial assistance also provided by financial institutions like IREDA, state •financial 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 Key Facts

Private sector participation has increased in small hydro projects because of •affordable investment and strong government support

There are a number of structural issues that impact on the country’s ability to •develop large capital-intensive projects like large-scale hydropower and as a result a good deal of attention has been focused on the development of small hydropower capacity (output of>= 25MW)



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 is one 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 the 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 the economy, 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 projects

Enabling trading of energy efficiency •certifications that encourages productivity and competition among businesses

CLEANTECH HANDBOOK – INDIA Energy Efficiency



Drivers Challenges

Increasing energy requirements Lack of enforcement of standards, codes and labelling

Climate change and environmental considerations

Information asymmetry about investments and technologies

Energy security Increasing mistrust due to weak contracts

Lack of adequate supply options Difficulties in measuring energy savings

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




Description India’s energy intensity per unit of GDP is higher as compared to Japan, USA and Asia by 3.7 times, 1.55 times and 1.47 times respectively. This indicates inefficient use of energy but also substantial scope for energy savings. The increasing global trade liberalisation and growing global competition have made productivity improvement, including energy cost reduction, an important benchmark for economic success.

Growth Forecast

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

Financing SIDBI and BEE are working as co-implementing agencies for preparing a •World 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 energy •auditing facilities by PCRA, nationalised banks and funding agencies like UNIDO, GEF, GIZ, IFC, etc.

Credit Linked Capital Subsidy Scheme (CLCSS), incentives offered by state/central •governments 80 per cent depreciation in the first year on the specified energy efficiency equipment and concessional excise and customs duty on notified energy 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 Key Facts

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

India’s current initiatives for the promotion of energy efficiency rely heavily on •market and market players for effective implementation

Though the goal is to make energy efficiency an automatic outcome of market •transactions - something that will eventually be self-sustaining – there is less trust in the capacity of market institutions



Bureau of Energy Efficiency (BEE)

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

Renewable Energy and Energy Efficiency Partnership (REEEP)

A market catalyst for clean energy in developing countries and emerging markets

www.reeep.org

UNIDO An UN body promoting sustainable initiatives in Industries with a focus on developing economies

www.unido.org

PCRA Energy research www.pcra.org

The Energy and Resources Institute

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 nation’s wealth goes into the import of coal and oil for energy. According to the reports of World Resources Institute (WRI) India’s 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.



WATER AND WASTE WATER

3.3 Background

India has about 3 per cent of water resources and 16 per cent of the world’s 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.


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


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 form 1. water regulatory authority for determining inter sector allocation and regulation of tariffs

Service level benchmarks proposed by 2. MOUD are being mainstreamed

Increasing use of turnkey contracts 3. (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 cent 4. under the Government of India’s initiative to promote PPP in infrastructure, including water supply

The JNNURM has supported water supply 5. 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 of 6. Water Use Efficiency, on similar lines of BEE to drive efficiency improvements in the sector

Many states have mandatory requirements 7. for harvesting rainwater in urban areas

Proposed revision of guidelines for 8. development of water supply projects could spur opportunities for higher end technologies

Some states, especially those with large 9. 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 population pressure and urban sprawl

Euro 21.73 billion is the size of Indian water sector

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 quality and health

Water cycle imbalances and stress

High potential for increasing water use efficiency across all sectors

Over exploitation of water resources

Reducing availability of water forcing users to go for reuse and recycling of water

Poor water quality necessitating use of advanced technology for treatment

Trends towards zero discharge and green buildings

Political and regulatory disputes

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


Water

Description Water companies from across the world have established presence in India to pursue an estimated 70 projects worth several billion Euros in 20 Indian cities across the country. India’s water policies are aimed at encouraging private investment, so that new business models evolve to cater to the needs of the society in an economically efficient way.

Growth Forecast

Budgetary allocation from the government and aid organisations: The Planning •Commission 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 »

Financing 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 companies •operating 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 on •import of materials, components and equipment

Opportunities Technology & engineering related: Availability, assessment & extraction, treatment •and purification, metering, quality monitoring, operation & maintenance bottled water, borewells and irrigation

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

Data collection & information management•

Developer & operator related: EPC contractor, boot operator – with expertise in •O&M, control and leak/defect detection technologies like SCADA solutions, flow mapping systems, revenue collection and customer service

Some Key Facts

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 of •new technology





Water and Land Management Institute

Research and training www.walmi.org/

Water and Sanitation Programme

Support towards water projects www.wsp.org/

NEERI Research on national/societal missions on drinking water

www.neeri.res.in

International Water Management Institute (IWMI)

Research and programmes on water resources

www.iwmi.cgiar.org

Energy research www.pcra.org

Centre for Environment Planning and Technology (CEPT)

Research and policy advise and technology development on urban water

www.cept.ac.in

The Energy and Resources Institute (TERI)

Research on water, water audits www.teriin.org

The Central Public Health and Environmental Engineering Organisation (CPHEEO)

Ministry of Urban Development, Government of India entity which deals with the matters related to urban water supply and sanitation

cpheeo.nic.in

National Institute of Hydrology, Rou

Society under Ministry of Water Resources working in the area of hydrology and water resources

www.nih.ernet.in

CII-Triveni Water Institute Working on sustainable water management practices

www.cii.in/CII_Triveni_Water_Institute.aspx

Conclusion

India’s 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 through coupled 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.



URBAN DESIGN AND 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, India’s 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 country’s economic output, an increasing number of Indians are leaving rural areas to seek employment in cities, relying on an efficient urban infrastructure.


• 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

• Pilot scheme for funding infrastructurein satellite towns around seven megacities

Besides the ongoing JNNURM implementation in 65 Indian cities, Ministry of Urban Development has undertaken the flagship Urban Infrastructure Development Scheme for Satellite Towns (UIDSST) around seven megacities and eight satellite

• IntegratedDevelopmentofSmallandMediumTowns scheme which aims at the development of selected regional growth centres with infrastructure and service facilities so as to enable such towns to emerge as regional centres of economic growth and employment opportunities and arrest migration from rural areas and small towns to large metropolitan cities

• NERUDP – ADB funded North Eastern Region Urban Development Programme (NERUDP) to renew the urban infrastructure the northeastern states of India

• Rajiv Awas Yojana – Ray for the slum dwellers and the urban poor envisages a slum free India through encouraging States/Union Territories to tackle the problem of slums in a definitive manner

CLEANTECH HANDBOOK – INDIA Urban Design and Smart Cities



Drivers Challenges

Huge spend on infrastructure Challenging business environment

Environmental impacts Unpredictable regulations

GHG mitigation Bureaucratic delays in approving projects

Government support Delays with acquiring land

Financial backing Lower transparency


Urban Design

Description Any Indian urban agglomeration needs an efficient infrastructure and smart city planning that will meet the demands of a growing population. Providing access to healthcare and drinking water, a reliable power supply and public transportation are some of the key elements for sustainable urban development

Growth Forecast

By 2030, it is predicted that 68 Indian cities will each have more than one million inhabitants, and six megacities with more than 10 million inhabitants each

Financing Government support towards concessional loans from Housing & Urban •Development Corporation (HUDCO) through Grants

Financial incentives such as subsidies on interest rates and capital costs for •demonstration projects

Financial assistance from JNNURM, Rajiv Awas Yojana, India Infrastructure Finance •Company, Planning Commission, Ministry of Urban Development (MoUD), Ministry of New and Renewable Energy (MNRE), Ministry of Environment & Forest (MOEF) and state financial corporations and commercial banks

International agencies supporting funding projects •

Opportunities Sustainable housing, transportation, water supply and sanitation, solid waste management, pollution abatement, disaster management, urban design, green architecture, town planning, renewable energy, smart infrastructure


• Thesectorisdrivenbyitsnecessityandothermarket dynamics, and is a genuine sector of growth in India. High market potential and consistent growth in the past few years have shown a rising trend in urban infrastructure development

• The Indian economy and growth in thissector is more need-based and real than

speculation. The income status of people and their education level is constantly rising with the urbanisation that is happening in India. A lot of possibilities of growth are found in mega offices and Special Economic Zones (SEZs); industry parks will happen with the policy framework by Government in India given emphasis to environment and green building initiatives at the same time

Urban Design

Some Key Points

GDP would have multiplied five times, 590 million people will live in cities, nearly •twice the population of the United States today

270 million people net increase in working age population, 70 per cent of net •new employment will be generated in cities

91 million urban households will be urban middle-class, up from 22 million today•

68 cities will have population of 1 million plus, up from 42 today, Europe has •35 today, Euro 0.87 trillion capital investment is necessary to meet projected demand in Indian cities

700-900 million square metres of commercial and residential space needs to be •built or a new Chicago every year

2.5 billion square metres of roads will have to be paved, 20 times the capacity •added in the past decade

7,400 kilometers of metros and subways will need to be constructed – 20 times •the capacity added in the past decade

Figure 2: List of Key Organisations in India


Association of Metropolitan Development Authority (AMDA)

Research and capacity building in sustainable urban development

www.niua.org

Housing and Urban Development Corporation (HUDCO)

Building affordable housing and carrying out urban development

www.hudco.org/

National Buildings Construction Corporation (NBCC)

Project management of sectors such as real estate-both residential and commercial, power, environment, healthcare, transportation, institutions, roads, border fencing, mass housing, office complexes

www.nbccindia.gov.in

Town and Country Planning Organisation (TCPO)

Technical advisory on urban and regional planning strategies, research, appraisal, and monitoring of central government schemes and development policies

www.urbanindia.nic.in

Centre for Environment Planning and Technology (CEPT)

Research and policy advise and technology development on urban water

www.cept.ac.in

The Central Public Health and Environmental Engineering Organisation (CPHEEO)

Deals with the matters related to urban water supply and sanitation

cpheeo.nic.in

Urban Mass Transit Company Developing, operating and maintaining sustainable mass transit infrastructure

www.umtc.co.in/

Conclusion

The country is set to build 500 new cities over the next 20 years to house 700 million more city

dwellers by 2050, according to a study by consulting firm Booz & Company. This will bring out ample developments in the Indian urban development. It is a high growth priority sector in India.

CLEANTECH HANDBOOK – INDIA Urban Design and Smart Cities


WASTE MANAGEMENT

3.5 Background

Rapid economic growth is leading to urbanisation and industrialisation generating waste which is adversely affecting the environment. Due to the liberalised policy, the pace of industrialisation has accelerated, which has resulted in increasing amounts of hazardous wastes every year.

Waste management has become a matter of great concern to most city corporations, and there have been some instances of management collapse even in metropolitan cities in the year 2012. All this build-up took place within a single decade, which is why many corporations have awakened to the rude shock. There has been an unpredictable increase in both industrial and domestic wastes. The government and corporations have now taken cognizance of things that require immediate attention, and a lot of funds have been diverted to various waste management projects.

Municipal solid waste management is quite a complex process, which clearly means a lot of investment has to be facilitated in infrastructure, technology and planning.

It means efficiently handling

Institutional waste•

Dead animals waste at slaughter houses•

Demolition and construction wastes•

Wastes which gets accumulated on the roads•

Waste derived from horticultural processes•

Treated bio-medical waste•

Waste due to drains and outlets•

Sludge from industries•

Commercial waste from the market areas•


The Ministry of Environment and Forests (MoEF) and the pollution control boards: Central Pollution Control Board (CPCB) and State Pollution Control Boards (SPCBs) together form the regulatory and administrative core of the sector. As Solid Waste Management (SWM) is part of public health and sanitation – according to the Indian Constitution – it falls under the state list. As this activity is of local

nature, it is entrusted to the Urban Local Bodies (ULBs). The management of municipal solid waste is one of the most important obligatory functions of the urban local bodies. Some government initiatives are mentioned herewith:

Bio-medical Waste Handling Rules, •1998 – Notified

Municipal Solid Waste Management Rules, •2000 – Notified

Reforms Agenda (Fiscal, Institutional, Legal)•

Technical Manual on Municipal Solid Waste •Management

Technology Advisory Group on Municipal •Solid Waste Management

Inter-Ministerial Task Force on Integrated Plant •Nutrient Management from city compost

For initiating SWM programmes •government’s JNNURM programme to fund cities for developing urban infrastructure and services

Financial assistance at a flat rate of •Euro 0.2 million per MW, subject to ceiling of 20 per cent of project cost and Euro 1.2 million per project, whichever is less

Tax Free Bonds by ULBs permitted by •Government of India

Public-Private Partnership in SWM•

Capacity building•

Urban Reforms Incentive Fund•

Guidelines for PSP and setting up of •Regulatory Authority

Introduction of Commercial Accounting •System in ULBs & other Sector Reforms

Model Municipal By-Laws framed/circulated •for the benefit of ULBs for adoption

Tax Holiday: A 10 year, 100 per cent deduction •of profits and gains is available for companies operating in waste projects. Tax/Duties Relief:

Direct taxes: 100 per cent depreciation »within first year of project installation

Exemption/reduction in excise duty »

Exemption from Central Sales Tax, »and customs duty concessions on the import of material, components and equipment used in Renewable Energy RE projects

CLEANTECH HANDBOOK – INDIA Waste Management


Duty-free import of renewable energy »equipment

Exemptions from electricity taxes »Waste Management

Opportunities Joint ventures with Indian firms to offer integrated solutions in waste treatment, •including performing feasibility studies, designing, technical consulting and providing operation and online maintenance services

Demand for technologies and services for effective waste collection, •transportation and disposal, and its treatment and recycling

Engineering and consulting services on waste collection and transportation, •landfill treatment, waste treatment plants, outdoor compositing, anaerobic digestion of waste and sewage sludge, biological-mechanical waste treatment and waste to energy

Technologies and solutions for high polluting sectors, such as thermal power •stations, chemical and pharmaceutical industries

Design, manufacture and installation of various types of waste management systems•

Some Key Facts

Government initiatives, fast industrialisation and urbanisation in the country have •benefitted the solid waste management market.

Estimates of the municipal• 1 and hazardous2 waste market is above € 1.5 billion and around € 171 million respectively

Urban local bodies and the state governments are actively working towards •bringing about urban transformations

Most of the reforms are aimed at infusing highest sustainability to infrastructure •developments

€ 253.59 million has been approved for 44 projects•



National Environmental Engineering Research Institute (NEERI)

Energy research www.neeri.res.in


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

National Solid Waste Association of India (NSWAI)

Solid waste management including toxic and hazardous waste and also biomedical waste in India.

www.nswai.com/

The Energy and Resources Institute Research on waste management www.teriin.org

Indian Society of Hospital Waste Management

Facilitate/advocate/undertake research activities on issues of hospital waste management

www.medwasteind.org/


Drivers Challenges

Stricter norms Precarious financial status of ULBs making it a high risk sector

Public interest litigations and rulings of the courts for domestic wastes

Institutional complexity

Scarcer landfill space Few bankable and financially sustainable projects

Health and environment Improper choice of technology

Public apathy towards waste


Wealth from Waste:• Organic fraction of municipal solid waste contains biodegradable matter ranging from 30 per cent to 55 per cent which can be profitably converted into useful products like compost (organic manure), methane gas (used for cooking, heating, lighting, production of energy), etc.

Recycling of Waste (Plastics, Paper, Glass, •Metal, etc.): Recyclable materials like paper, cardboards, plastics, polythene bags, pieces of metals and glass are recycled to recover useful resource

Sanitary Landfilling:• Rejects from compost plants, recycling and other inorganic materials like construction debris in municipal solid waste are sent to scientifically engineered landfills


Waste Management

Description India offers excellent opportunities for international or foreign companies specialising in various waste management processes. Even the companies selling products and technology will find India as a big and lucrative marketplace. With a growing urgency for efficient waste management in many cities across India, there will be more and more projects and employment opportunities in the sector.

Growth Forecast

With the growth trend set to continue urban India will generate 160.5 million by •2041 and over the next decade some 920 million tonnes of solid waste will need to be properly managed

The solid waste management industry is likely to grow at a CAGR of •approximately 7 per cent during 2011-15, thus positioning India as one of the most preferred destinations for industry investments

Financing High Grant Components for Solid Waste Management in Jawaharlal Nehru •National Urban Renewal Mission (JNNURM) and Urban Infrastructure Development Scheme for Small & Medium Towns (UIDSSMT)

Financial assistance by financial institutions like IREDA, NABARD, state financial •corporations, commercial banks and international agencies

Conclusion

Waste management in India is in the development stage with both urban and industrial waste set to grow dramatically over the next few years. For most of the urban local bodies in India, solid waste is a major concern that has reached alarming

proportions, requiring management initiatives on a war footing. There is an increasing need for new technologies and waste management systems, which makes it the right time for foreign companies to invest in India. To put it simply, waste in India is a big business.

CLEANTECH HANDBOOK – INDIA Waste Management


GREEN BUILDINGS

3.6 Background

There is a burgeoning need of housing in the urban areas and many cities will be developed bigger in terms of housing and commercial building needs in the next couple of decades. Since India is an energy deficient country, it needs to employ energy efficient sustainable solutions.

India’s building-occupied area is projected to grow from eight billion square metres (sq.m.) in 2005 to 41 billion square metres in 2030. Incorporating energy efficiency measures in these new buildings will help India meet its energy needs and increase its energy security. India’s energy production must grow 6.5 per cent per year from 2012 to 2017. Buildings already account for more than 30 per cent of the country’s electricity consumption, and nearly 70 per cent of the buildings in India that will exist by 2030 are yet to be built. The market potential for green building products in India by 2015 is estimated to about Euro 72.43 billion as per IGBC (Indian Green Building Council).

Government initiatives and policy frames for green buildings in India

Ministry of Environment and Forest (MoEF) •is the main policy frame maker, issuing the building codes and guidelines for the

green building development, and has the highest authority to make decisions on building and construction from environment perspective

The other recognised institutions apart from •the government are the widely accepted rating agencies. The first and most widely used ratings system internationally is the American Leadership in Energy and Environmental Design (LEED) system. In India, the Indian Green Building Council (IGBC) has adapted LEED to create LEED India and is responsible for certifying buildings under this system

At present, the IGBC offers two certifications •for office buildings. The first, LEED for New Construction and Major Renovations is for buildings where the design and operation is fully in the scope and control of owner or developer. LEED India for Core and Shell certifies buildings where the owners or developers do not control all aspects of design and construction. The Energy and Resources Institute (TERI) has developed its own ratings system, Green Rating for Integrated Habitat Assessment (GRIHA)

In 2007, the Bureau of Energy Efficiency •(BEE) launched the voluntary Energy Conservation Building Code (ECBC) that sets minimum energy standards for new commercial buildings having a connected load of 500 KW or contract demand of 600 KVA or more


Drivers Challenges

Faster clearances for green building projects Mindset of the investor about higher costs

Small payback time reduces operational costs Slow growth

GHG mitigation High capital cost

Resource efficiency Lack of clarity on policy directives

Energy and water crunch Limited indigenous knowledge

Greater awareness Low financial commitment

Lack of technological know-how

CLEANTECH HANDBOOK – INDIA Green Buildings


Green Building India

Opportunities Sustainable site management and design services•

Water efficiency: Water use reduction, water efficient landscaping, innovative •waste water technology

Energy & Atmosphere (EA): Energy efficiency, renewable energy•

Materials & Resources (MR): Sustainable building materials (wood/precast), •building reuse, construction waste management, materials reuse, recycled materials, rapidly renewing materials

Indoor Environmental Quality (EQ): Ventilation, low-emitting materials, controllable •systems: lighting – thermal, air conditioning comfort, daylight & views

Key Facts 362 certified green buildings, 1.45 billion sq.ft. green building footprint •

2,111 registered green building projects, 1.350 detailed energy audits carried out •

€ 30 million annual recurring energy saving realised•

50 detailed water audits conducted,26.93 million m• 3/year water savings

16 Green SMEs funded, 450 industrial units subscribe to the CII-Code •

27 companies registered for GreenCo Rating, 9 GreenCo Rated companies•


Govt Body/Institution/Organisation

Mainline of Activity Website

Indian Green Building Council (IGBC)

Green building products and technologies

www.igbc.in

Energy Conservation Building Code – Bureau of Energy Efficiency (BEE)

Develop and monitor performance requirements for all commercial buildings

www.beeindia.in

Green Rating for Integrated Habitat Assessment (TERI)

National rating system www.teriin.org/index.php

Association for Development and Research of Sustainable Habitats (ADARSH)

Scientific and administrative issues related to sustainable habitats

www.teriin.org/index.php

Leadership in Energy and Environmental Design (LEED)

Framework for identifying and implementing practical and measurable green building design, construction, operations and maintenance – Rating system

www.usgbc.org/leed


Unique need-based market is conscious about the environment and is taking policy steps favourable for the growth of sustainable green building sector. Incentive plans are being taken to encourage the green building growth and development by reducing the stamp duty, property tax proposals in the five year plan (2012-17).

Irrespective of political changes if any, the sector is driven by its necessity and other market dynamics, and is a genuine sector of growth in India. High market potential and consistent growth in the

past few years have shown a rising trend in green building development.

Indian commercial sectors like retail, hospitality, other commercial office buildings, and residential buildings offer huge possibilities of development as these sectors are looking big with government policies favouring their growth. For example, organised retail in India is currently just below 10 per cent compared to 4 per cent five years ago. It is likely to grow to 20 per cent in this decade as per retail industry estimates. With policies favouring the retail sector, big retail giants like Walmart, Carrefour, Ikea and many others are considering to be in this market.

Figure 1: Environmental Benefits Achieved in Green Buildings in India

Source: IGBC

Green Building India

Description From just one registered green building in 2003, India now has over 2,100 projects registered with a total area of 1.65 billion sq. ft. With this, India has the second largest green building footprint in the world after the US. In the last three years, 400 projects were completed and fully certified by the council. These include airports, banks, convention centres, factories, hospitals, hotels, IT parks and commercial buildings.

Growth Forecast

Green building is the next big thing in India owing to the growth trend it has shown in the last decade. As also, the industry, government, investors and stakeholders have shown inclination towards adoption of green technologies and concern for environment due to which the next developments in India shall be more towards environmental friendly structures.

Financing/ Incentives

Microfinance for eco housing for home owners and service providers•

Financial incentives for green buildings e.g. fiscal incentives for manufacturers •and developers

Other financial mechanisms for green buildings like equipment finance for •builders, manufacturers of equipment

Concessional funding and grants by Indian public sector banks to support •MSME sector which are developing sustainable materials and technology for green buildings

International agencies supporting funding of green building projects include •USAID, kfW, JBIC, GEF, IFC, WB

Conclusion

Green buildings offer tremendous potential for growth. There is a growing consensus between the business, consumer and government to have more green building structures owing to the awareness and the importance of the environment and

responsibility towards nature. There is a natural motivation in the long-term, as green buildings provide better return on investment and savings are notable. There is a long way to go and sooner or later most constructions will abide by the green building code due to the need of environment safety and Government policies accordingly.

CLEANTECH HANDBOOK – INDIA Green Buildings


FINANCIAL POSSIBILITIES

4.1 International funding opportunities for Finnish cleantech sector in india

Introduction

Most of the international players are active in India and they should be viewed as a key source of funding, but not to be mistaken as similar sources as Finnish, let alone Indian funding organisations. These funding sources are for the most part focused in fulfilling their own plans and programmes and in most cases there are no direct funding opportunities from them. Instead their programmes open opportunities for partnering or offering Finnish solutions to their programmes.

When the organisations are development banks such as World Bank, they will also have their

own procurement regulations and typically the competition can be very harsh.

In many cases, the international funding can be difficult to target as a first step. However, when targeting new markets the international money flows should be seen as an opportunity to scale up the business when good and sustainable business models have been identified and tested.

No matter how large the different international, governmental or other institutional projects are, the monetary flows are very limited in comparison to foreign direct investments and the private sector flows. In targeting markets such as India, the role of the private investments should be kept high on agenda.

One of the most visible funding flows has been the traditional development aid which used to be relatively clear being either direct (bilateral aid) or indirect via multilateral organisations such as

development banks. However, today the structure of capital flows has changed and it has become more complex.

CLEANTECH HANDBOOK – INDIA Financial Possibilities


Key international organisations

Horizon 2020, the new EU Framework •Programme for Research and Innovation (2014) is offering a new dedicated SME instrument aiming at:

Filling the gaps in funding for early- »stage, high-risk research and innovation by SMEs as well as stimulating breakthrough innovations, targeting all types of innovative SMEs showing a strong ambition to develop, grow and internationalise

UN with its several agencies•

Development banks and multilaterals such •as World Bank (WB), Asian Development Bank (ADB) and International Finance Corporation (IFC)

Bilateral Aid: Even as India has its own •development aid to other countries, there is still aid flows from individual governments

Foundations and civil society/NGOs •

Companies: Corporate social responsibility •programmes

Partnerships with several different types •of organisations formed as individual programmes or funds

Funding from development banks- World Bank

World Bank’s strategy for specific countries is negotiated together with the beneficiary country’s government. The more developed the country, the more the strategy and it usually relies and builds on top of the country’s own agenda and plans.

The World Bank Group’s Partnership Strategy for India (2013-17) will help India lay the foundation for achieving ‘faster, sustainable, and more inclusive growth’ as outlined in the government’s 12th five year plan. The World Bank Group will support India with an integrated package of financing, advisory services, and knowledge. As of July 2013, the total net commitments in India stood at Euro 16.15 billion across 78 projects. This money is allocated based on programmes and projects which have their own procurements ranging from expertise and services to complete turnkey deliveries of e.g. power plants.

In September 2013, there were altogether 65 World Bank funded projects either ongoing or being prepared in India related to Cleantech. The total commitments of the World Bank Group to these projects was about Euro 8.69 billion which would put the total budget of these projects to about Euro 18.11 billion. Themes of the projects were e.g. climate change,

rural services and infrastructure, water resource management, rural development, environmental policies and institutions, infrastructure services for private sector development, pollution management and environmental health as well as land administration and management. The activities are roughly divided in grants, loans and advisory services. Finnish companies can try and benefit from all of these, but the typical route is to participate in international competitive bidding. Within the advisory services, development banks may fund testing and piloting new solutions or technologies, but even here the normal route is to have competing tenders before selecting private sector companies.

International Finance Corporation

One key player for World Bank Group’s activities in India is its private sector hand IFC – International Finance Corporation. Where World Bank funds governments, IFC funds private companies. As of June 30, 2013, IFC’s committed portfolio in India stood at Euro 3.26 billion, making India IFC’s largest portfolio exposure. Typical project size for IFC is above Euro 3.62 million and therefore for most Finnish companies, it is not too realistic source of funding. However, IFC is always ready to discuss application of new sustainable technologies and can be seen as a source of funding for Finnish companies in India.

NIB – Nordic Investment Bank www.nib.int

NIB finances projects that strengthen competitiveness and enhance the environment. The bank offers long-term loans and guarantees on competitive market terms to its clients in the private and public sectors. NIB is an international financial institution owned by Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The bank has lending operations both in its member countries and in emerging markets like: Africa and the Middle East; Asia; Europe and Eurasia; and Latin America.

NIB’s four business areas are: energy and environment; infrastructure, transportation

and telecom; heavy industry and mechanical engineering; consumer goods and services; financial institutions and SMEs.

NDF – Nordic Development Fund

The objective of the Nordic Development Fund’s (NDF) operations is to facilitate climate change investments in low-income countries. NDF finances in cooperation with bilateral and multilateral development institutions. NDF’s operations mirror the Nordic countries’ priorities in the areas of climate change and development. The operations are financed from the development cooperation budgets of the five Nordic countries.



NDF provides grant financing for climate change investments in low-income countries www.ndf.fi/

NDF provides grants by co-financing. Projects are normally identified by governments in partner countries according to national priorities. NDF also has a strong working relationship with the World Bank, Asian Development Bank, Inter-American Development Bank, African Development Bank and Nordic bilateral development organisations, and projects are often identified through these partnerships. In addition, NDF aims at obtaining project information and ideas through Nordic firms, organisations and networks. Grant amounts vary from EUR 500,000 to EUR 5 million.

NEFCO www.nefco.org

NEFCO is an international financial institution established by the five Nordic countries. NEFCO finances climate projects across the world. NEFCO’s main focus is to generate positive environmental effects of interest to the Nordic region

Other key international financiers

Climate Investment Funds (CIF) runs two trust funds – the Clean Technology Fund (CTF) and the Strategic Climate Fund (SCF) and focuses on climate resilience, energy efficiency, forests, renewable energy and transport. In India the CIF’s key model is to fund the efforts of the government in striving for sustainability. India has drafted an investment plan that will tap Euro 561.32 million from the Clean Technology Fund (CTF) for transformative investments to improve and expand the country’s hydropower operations, develop untapped solar resources, and improve energy efficiency. The plan was drafted in coordination with the Asian Development Bank (ADB), World Bank (IBRD), and key Indian stakeholders. CTF financing is expected to leverage nearly Euro 21.73 billion in additional financing, and will focus in particular on catalysing private sector development in the low-carbon sectors. As the funds of CIF are relayed via multilateral development banks, the private sector participation is again usually via tenders to World

Bank or Asian Development Bank or via funding of IFC.

Global Environment Facility (GEF) unites 183 countries in partnership with international institutions, Civil Society Organisations (CSOs), and the private sector to address global environmental issues while supporting national sustainable development initiatives. An independently operating financial organisation, the GEF provides grants for projects related to biodiversity, climate change, international waters, land degradation, the ozone layer, and persistent organic pollutants. Since 1991, GEF has achieved a strong track record with developing countries and countries with economies in transition, providing Euro 8.33 billion in grants and leveraging Euro 41.28 billion in co-financing for over 3,215 projects in over 165 countries. Through its Small Grants Programme (SGP), the GEF has also made more than 16,030 small grants directly to civil society and community based organisations, totalling Euro 473.10 million. GEF’s projects are managed by separate organisations – typically multilateral development banks.

The GEF work focuses on the following main areas

Biodiversity, climate change (mitigation •and adaptation), chemicals, international waters, land degradation, sustainable forest management/REDD +, ozone layer depletion

4.2 India

Introduction

India has embarked on a low carbon inclusive growth trajectory through a slew of policy, institutional, market development measures. These include the National Action Plan on Climate Change, solar missions – national and states, energy efficiency mission, green SEZs, green transportation and renewable energy certificates. It has also set up expert groups on low-carbon inclusive growth strategies.

All these initiatives would require a humongous amount of financing and a number of estimates have been made for that, such as the one by

McKinsey which talks of an order of magnitude of Euro 0.72 trillion in incremental capital required by 2030. Just for renewable/clean energy, investment requirement will be Euro 14.49 billion in the next five years (2012-17).

No matter how large the different projects are Indian public monetary contributions are generally limited in comparison to the need of foreign direct investments and the private sector capitalisation input. As mentioned in the International Financing section for targeting markets such as India the role of the private investments should be kept high on agenda.

India is fast emerging as a preferred destination for clean energy/low-carbon investments in terms of industry-attractiveness which is driven by favourable natural endowments for solar, wind, biomass and small hydro projects and there is huge potential for energy efficiency. Sectors such as urban transport, water, wastewater and solid waste management are also gradually witnessing growth on the back of policy initiatives such as implementation of the urban renewal mission (JNNURM), national water policy and revision of guidelines for water treatment.

Financing framework for Cleantech in India

Cleantech is an emerging area in India and as such the focus has been sector-specific. For e.g., there are separate programmes and schemes targeted at individual sectors such as solar, wind,

energy efficiency, etc. Each of the sectors are under the overall administrative jurisdiction of separate ministries at the central government level and their corresponding departments at the state government level. As a result there is no single unified financing mechanism for cleantech. The financing available under such schemes and programmes varies from support for technology development to capital subsidy for commercialising and roll-out of projects. The funding options available in each sector have been addressing the respective sections. This section will present a broad overview of the range of institutions involved across various stages of the value chain.

Developing and commercialising clean technologies in India can be divided into two phases for the purposes of discussing the financing options. The first phase covers technology innovation, R&D, concept demonstration, pre-commercialisation and commercialisation. For this first phase, grants and subsidies can be applied for from various sources (as listed later in this chapter). As the company approaches actual commercialisation, loans are usually required. In the second phase, the roll-out or the post commercialisation stage when goods or services are produced, equity investments, loans and insurances are often required. This type of financing is usually provided by commercial and international financial institutions. Other potential funding sources for this stage include venture capital and private equity.



Types of financing and sources of funding

A: Technology development

B: Patent protection

C: Technology in-licensing

D: Technology scale-up/validation/de-risking

E: Market entry

F: Expansion

Organisation Target Purpose Provides Funds For

Government

Department of Scientific & Industrial Research (DSIR)

Students/Individuals/Entrepreneurs/Startups/Industry Institutions

Grants for creating lab model, prototypes, product features, patent protection, design, international technology transfer promotion, etc. Funds for accelerated product development in 9-12 months for faster market entry

A, B, C, D, E, F

Ministry of Micro, Small & Medium Enterprises (MoMSME)

SMEs/Entrepreneurs Provides grants to technology startups for prototyping and getting mentoring, etc. to build their companies, for marketing in exhibitions, patents, provides loans for post-commercialisation stage

B, C, D, E, F



Scientists/Technologists/Entrepreneurs/R&D Labs/Industry

To develop analytical, environmental monitoring, geo-scientific, agri electronic instruments and sensors, to develop low-cost domestic purification technologies, options for disposal of scientific waste, initiating application of nano-technology

A, B, D, E

Council of Scientific & Industrial Research (CSIR)

Small, medium and large companies involved in R&D and public institutions

Funds for scientific projects where markets and technology risks are high

A, B, C, D

Department of Bio-Technology (DBT)

Biotech companies/Entrepreneurs/Small, Medium and large companies involved in R&D

Grants, early stage funding, loans for high risk, innovative ideas/products for commercialisation in fields such as bioengineering, environment, etc.

A, B, D, E

Ministry of New and Renewable Energy (MNRE)

Entrepreneurs, project developers, NGOs, government agencies industry-institute collaboration, etc.

Grants for generating power through two-stage process, first producing RDF and then combustion; setting up power plants based on high rate biomethanation tech; setting up demonstration projects based on gasification/pyrolysis and plasma arc technologies; generation of power from biogas being produced at sewage treatment plants; generation of power in fields of small wind energy, small hydro, biomass power, biomass pacifier and biogas power; and carrying out R&D projects in field of renewable energy

A, B, D, E, F

Govenment supported institutions

National Research Development Corporation (NRDC)

Entrepreneurs/Incubatees at Business Incubators/Inventors

Angel funds (Department of Science and Technology), financial and technical support for patenting of inventions

A, B, D

Department of Information Technology (DIT)

Industry-R&D institution partnership

Grant to create indigenous products/packages, to encourage R&D projects in fields of ICT

A, D, E

IREDA All enterprises Operates as a revolving fund for development and deployment of new and renewable sources of energy and gives financial support to specific projects and schemes for generating electricity and/or energy through new and renewable sources and conserving energy through energy efficiency

D, E, F




Bureau of Energy Efficiency

SMEs Funds DPR (detailed project report) for energy efficiency in SMEs

Power Finance Corporation

Power sector enterprises

Debt, private equity, investment in project assets

A, C, D

National Innovation Foundation (NIF)

Innovator/Entrepreneur

Soft loans for unaided, green, grassroots’ technological innovation.

B, D, E

Financial institutions

Infrastructure Development Finance Company (IDFC)

All enterprises Debt, private equity, investment in project assets

C, D, F

Karnataka Information Technology Venture Capital Fund (KITVEN)

All enterprises VC fund providing equity capital for investment in IT, Nano-Tech and other knowledge based industries

A, B

Small Industries Development Bank of India (SIDBI)

Entrepreneurs, SMEs Term loans; growth and equity capital (exceptional cases)

D, E, F

Other nationalised banks (State Bank of India, Bank of Baroda, Indian Overseas Bank, etc.) and private banks (ICICI, HDFC, etc.)

All enterprises Debt investment in wide range of growth sectors

D, E, F

World Bank & ICICI Bank collaboration

Private companies conducting research in partnership with public R&D institutes

Provide loans to promote technology development by private sector in partnership with technology institutions like CSIR labs, IITs, etc.

A, B, C, D

Technology Information, Forecasting and Assessment Council (TIFAC)-Small Industries Development Bank of India (SIDBI)

Entrepreneurs/Startups/Companies

To facilitate development and commercialisation of innovative technology projects pertaining to new product/process/applications

C, D, E, F

Small and Medium Enterprise Stock Exchanges

SMEs with track record of three years of operations and two years of positive net worth or distributable profits

For capitalising SMEs F

Private investors

Public-private venture funds (Infuse Ventures, Magnetar Venture, Indian Angles Network, Ncubate, etc.)

Startups/Entrepreneurs

To fund entrepreneurs/startups in the area of sustainable energy

A, B, C, D, E, F

Incubator Related Seed Funds

Entrepreneurs Equity investment in startup companies

B, C, D


Venture Capitalists Entrepreneurs, SMEs Different VCs in India who make equity investments in companies that have reached expansion phase

F

Accelerators Entrepreneurs To facilitate entrepreneurs with ideas and assist in early stages of venture development; to work with them to develop/provide new ideas and turn those into new ventures

A, B, C, D, E

4.3 Finland

Introduction

The significance of India as a target market for the internationalisation of Finland’s trade and industry has grown. Official cooperation agreements between Finland and India are the key in terms of cooperation in various fields. Cleantech has been recognised as one of the focus areas of collaboration between Finland and India. In addition to research, technology and innovation, the following key cleantech sectors have been identified as the cutting edges in this context.

Energy industry, and renewable energy in •particular

Energy efficiency •

Environmental business, education and •learning

Water and waste management sectors •

Cleantech financing environment, Finland

There are various financial options and service providers in the private capital markets for trade related exports and commercially profitable technological product and services launches.Assessing these private financial service providers is an extensive task and the opportunity to explore them further in this handbook is restrained.

More important, however, is the fact that private sector risk taking appetite may be limited or reduced in many instances for various reasons. Public funds may complement these deficiencies of risk

taking capacity in the various stages of company growth. Hence, this section examines some of the critical Finnish public financiers/institutions having the potential to promote Indo-Finnish cleantech funding and businesses collaboration.

Nonetheless, it’s vital to bear in mind, public funding in Finland is currently not in particular directed towards cleantech companies or projects. Properly speaking, as such the term ‘cleantech’ is very much sector cross cutting and can be considered as any other technology, consequently credit decisions are taking place according to traditional institutional (in some instances cautious) policy guidelines.

Furthermore, there’s growing generalised conception that SMEs, unlike big enterprises, are lacking the resources to grow and to invest in one’s own for the reference instrumentor capacity.Piloting becomes burdensome with scarce private financial resources, hence investments do not rise for international markets.

Nonetheless, it can be concluded that the Finnish public sector financiers form a group of a comprehensive societal collaborators, regardless of whether funding policies have a developmental dimension or not.

Public financiers impact on company financial life cycle

Figure no. 5 reflects, with an Indo-Finnish bias the overall potential impact of selected public financiers on enterprise funding options at the various stages of growth. Instrument impact, with an Indo-Finnish bias may also be illustrated in the individual financier presentation sections later.



The Ministry of Employment and the Economy

Enterprise financing is regulated by international and national statutes. The Ministry of Employment and the Economy (MEE) is responsible, within its purview, for the availability of sufficient financial resources to both domestic-supply and export enterprises with regard to the enterprises’ needs in general and any restrictions imposed by the international financial and legal framework.

The MEE actively monitors the domestic financing market and strives, through early interventions, to guarantee that there are sufficient financing options available for the full spectrum of enterprises, irrespective of economic fluctuations and in consideration of regional aspects.

Furthermore, the MEE controls and manages the regional centres for economic development, transport and the environment with regard to the subsidies rendered for enterprises’ use to develop their operations.

Publicly funded organisations

Finnpartnership

Many Finnish Cleantech sector businesses possess knowledge and expertise for which there could be a demand for in India and which may present commercial opportunities. Finnpartnership supports feasible and commercially viable business partnerships between companies and organisations in Finland and India with the objective to enhance positive development effects.

Finnpartnership is a Business Partnership Programme (BPS) providing financial support, grant type funding for the planning, and development and training phases of a project. Support can be granted for companies and organisations registered in Finland or elsewhere that have a substantial link to Finland. In addition, Finnpartnership provides advisory services and

matchmaking services to enhance long-term partnerships between Finland and developing countries, normally between companies.

Services cover organisations throughout the lifespan of their business projects, irrespective of their operating sector, planning or improving business activities.

Business partnership support is a grant type seed capital which may be approved to be used for covering expenses incurred in the preparatory phase and to cover training and business development, such as:

Establishing a joint venture (e.g. production •or services)

Establishing a subsidiary company (e.g. •production or services)

Subcontracting (e.g. manufacturing or •services)

Importing to a developing country (project •with commercial market potential and developmental impacts which boosts developing country import to Finland and possibly to other countries)

Other long-term business partnership in •a developing country designed to sustain business activities related to, for example, long-term subcontracting or maintenance, franchising or licensing agreements

Pilot projects related to commercial/•merchandised technology or solutions

Vocational education and training, and •support for local education

Examples of projects supported in India are production of windmills, lifters and precast concrete, production and sale of low-tension products and mobile application services.

Note:

Finnpartnership’s operations are limited to the developing countries. India is currently in the upper middle income developing country category listed by OECD’s Development Assistance Committee (DAC).

Business partnership support:•

Max € 200,000/company, de minimis aid »

Max € 400,000/company, non-de »minimis aid if not affecting competition inside EEA



30/50/70 per cent of approved »expenses depending on the size of the applicant and development level of the target country

Finnpartnership is funded by the Ministry •for Foreign Affairs of Finland and governed by Finnfund

Finnfund

Finnfund is a Finnish development finance company that provides long-term investment loans and risk capital for commercially profitable

private projects in challenging markets where commercial financing is hard to obtain. In recent years, a proportion of the finance has been for projects in India, China and Russia.

Finnfund is promoting investments to renewable energy, cleantech and energy efficiency sectors. It is typically focusing on projects involving advanced but commercially proven technology, innovations supporting new ways of employing technology that contributes to economic and social development in target countries. Financing on market terms for establishments or expansion projects in different sectors, from SMEs to large companies, with a minority stake range of € 1-10 million.

Finnfund has a dedicated team with sector-specific knowledge on renewable energy, environment and forestry.

The team:

Follows the development in these sectors •and maintains relationships with project

developers abroad and technology providers and other relevant parties in Finland

Has a wide network of financier partners, •e.g. other development finance institutions

Can help fill the holes in financing packages, •e.g. by catalysing private funds for the projects it finances

Provides the customers of Finnish equipment •suppliers in developing countries with other instruments than traditionally used in customer finance, and in wider range of countries

Participating in the equipment or service •supply backed by Finnfund can provide an easier entry to developing markets, such as India, for a technology provider



As of end 2012, 50 per cent of the Finnish partners were companies with turnover of € 50 million or less out of the total of 36 companies

Note:

Finnfund is owned by the State of Finland •91.5 per cent, Finnvera 8.4 per cent and Confederation of Finnish Industries EK 0.1 per cent

Finances projects only in developing •countries and Russia

Financing is not tied to Finnish exports but •the project should involve a Finnish interest

Capital can only be injected into the Indian •company (or other such acceptable legal entity) covering financial instruments such as equity investments (max 30 per cent), investment loans (~1/3 of total), mezzanine financing (convertible bonds, preferred shares, unsecured subordinated loans) and combinations of these

Table 1: Investments in India on December 31, 2012, Operations and the Finnish Company

India

Ashley Alteams India Pvt. Ltd. Aluminium Components Alteams Group

Bharti Airtel Ltd. Telecommunications Nokia Siemens Networks Oy

Incap Contract Manufacturing Services Pvt. Ltd.

Contract Manufacturer of Electromechanices

Incap Oyj

Ojala (India) Engineering Pvt. Ltd. Metal Products

Polygenta Technologies Ltd. Polyester Manufacturing

SREI Infrastructure Finance Ltd. Leasing Ojala-Yhtyma Oy

Stera Engineering (India) Pvt. Ltd. Contract Manufacturer of Electromechanices

Stera Techonology Oy

VME Precast Pvt. Ltd. Concrete Elements Valkeaskosken Betoni Oy

West Coast Paper Mills Ltd. Paper Mill Metso Paper Oy

Finnvera Plc

Finnvera Plc is a specialised financing company owned by the State of Finland and it has the official Export Credit Agency (ECA) status in Finland.

Finnvera provides Finnish SMEs with loans, guarantees and venture capital investments. Finnvera also offers export credit guarantees and

financing for export credits. Payment terms for export credits supported by Finnvera may vary from cash payment to over ten years in larger buyer credits.

Total exposure of export credit guarantees was EUR 10.7 billion as at June 2013. Asia accounts for 11 per cent or EUR 1.2 billion of total exposure with India being the most important country with over EUR 700 million exposure (Figure 12)



When a Finnish cleantech company is starting to explore export business opportunities to India, it’s useful to know that:

(i) According to Finnvera, India’s country risk category is currently (September 2013) set as 3 on a scale from 0 to 7 (7 being the weakest category). India’s economic situation has, however, weakened during 2013 and the classification should be verified from Finnvera website (www.finnvera.fi)

(ii) The risks related to the operating environment of companies in India could be significant because of problems in trading across borders, legal environment, authorities, enforcing contracts, etc.

(iii) A careful analysis of payment terms offered to the Indian client is warranted

Export Credit Guarantees

Are suitable as well for large and small export •transactions for Finnish companies producing goods and services, without limitations to specific sectors or technological standards

Are used by exporters and banks to hedge •against the political and commercial risks in export transactions

In the financing can reduce the all-in-cost •for the Indian buyer, because the overall pricing of the financing reflects Finnvera’s AAA – rating

Finnvera analyses the creditworthiness •of each counterparty and transaction and charges premium according to perceived risk

Payment termsFinnish exports to India are generally •commenced with advance payments

The alternative to advance payment is an •Irrevocable Letter of Credit, Figure 14

Deferred payment terms (payment time) can •be offered to the Indian importer also with a confirmed ILC – Finnvera can provide credit enhancement to the confirming bank with its Letter of Credit Guarantee

Although Finnvera recommends the use •of ILC, export to India on open account terms is a possibility. Finnvera can consider providing insurance against the risk of non-payment by the Indian importer. Such credit insurance is normally used in short-term transactions (payment of 30-180 days). Often the insurance is granted without additional securities

In addition, Finnvera can be involved •in different kind of working capital arrangements for Finnish exports

Internationalisation of Finnish SMEsLocal presence in the Indian market •may improve the competitiveness of

the Finnish SMEs. Finnvera can support the internationalisation of Finnish SMEs by providing a guarantee to the Finnish bank financing the parent SME in Finland (Figure 15.)

Finnvera’s guarantee may be used •when a subsidiary or an affiliated company abroad needs funding for investment, development or growth. To be eligible, the subsidiary or affiliated company abroad must primarily engage in production, assembly, and maintenance or service (financing cannot be used to set up a sales office)

As an alternative to the internationalisation •guarantee, Finnvera can provide an internationalisation loan directly to a Finnish parent SME. In both cases, the parent SME in Finland is responsible for the repayment of the loan



Larger export contracts Buyer credits are most common when the •Indian client seeking 3 to 10 years credit terms in large scale investment projects. Finnvera can accept both company and bank risk provided that the counterparty risk is acceptable

Buyer credits are structured and arranged •by international banks in cooperation with Finnvera. In addition to Finnvera Buyer Credit Guarantee, the arranging/lending bank may apply for refinancing of the larger buyer credit from Finnish Export Credit (Finnvera’s daughter company) for longer maturity

Tekes – The Finnish Funding Agency for Technology and Innovation

Global environmental problems and the challenges facing developing countries represent a huge growth market. Tekes Green Growth programme offers ambitious companies and research institutions cooperation in the development of innovations in material and energy efficiency.

Tekes Green Growth – programme is actively looking for company projects in cleantech which are aiming for Indian markets.

In the last five years Tekes has funded yearly 13-23 projects that have India-related activities including some cleantech projects. Half of them are company R&D projects and half university research projects. Funding for those projects have been around € 4-7 million per year.

Tekes provides funding for the development of innovations that aim at creating growth and new business. In 2012, 62 per cent of Tekes funding was related to enterprise projects of which nearly 70 per cent was allocated to development projects of small and medium-sized enterprises.

The Groove – Growth from Renewables programme enhances the business capabilities of Finnish small and medium-sized enterprises working with renewable energy by improving their international competitiveness and developing networks with the financier network.

The programme offers assistance in enhancing business skills and networking, with a strong emphasis on international networks.

Companies operating in Finland can apply for funding at any time. Research organisations may apply funding on specific application periods.

Tekes financial contribution is determined based on the novelty of the project, market distance and the size of the company.

Grants will typically be awarded to research and development projects that generate know-how that can be utilised in the long-term. The project as such does not produce a directly marketable product. Instead, product development will be done on later phases utilising the results of the research project.

Acceptable costs include items such as

Salaries relating to project •

The related indirect personnel costs and •overheads, travel costs, materials and supplies costs and under certain conditions, machinery and equipment costs as well as services purchased from external suppliers

Costs relating to the planning of production, •marketing, internationalisation or internal training can be accepted as a part of the project



Costs relating to preparation for market •entry and verification of the functionality of development work may constitute only a part of the costs of a project funded by Tekes

The loan is intended especially for projects that produce a marketable product or service or create a new business concept.

Finnish Industry Investment Ltd.

Finnish Industry Investment Ltd. (FII) is a government-owned profit-orientated investment company. FII is a part of the Team Finland network and national innovation system.

Prospects

FII’s goal is to channel venture capital into growth companies over economic cycles. The Finnish government decided to strengthen growth company financing and capitalise it by 2013.

Special focus areas for FII’s investments will be high value-added growth companies, the mining cluster, the bio-economy and cleantech sectors, and the marine industry’s cluster companies.

Finnish Industry Investment Ltd.Invests in Finnish companies in their growth •and internationalisation stages

Seeks to stimulate Finnish industry, promote •the development and deployment of new

technology, while creating new growth companies, jobs and well-being

Contributes to the innovation system services •by providing venture capital and private equity financing to companies. Financing through exits and governmental equity injections have secured the continuous and growing investment activity

Attracts foreign capital into Finland by •investing in international venture capital and private equity funds and by co-investing in Finnish companies together with international investors. Finnish Industry Investment is a local partner for international investors in Finland

In recent years, average yearly investment •volumes have hit EUR 100 million, divided equally between fund investments and direct investments. Current investments and commitments totalling EUR 700 million have been placed in around 80 investment funds and 80 growth companies



Nopef – Focus on globalisation

The Nordic Project Fund (Nopef) is part of the organisation of the Nordic Council of Ministers (NCM). Nopef is financed by the Nordic Council of Ministers.

The funds are used to strengthen the international competitiveness of small and medium-sized enterprises by providing loans on favourable terms for co-financing feasibility studies, aiming at contributing to the internationalisation of companies. Nopef supports feasibility studies that have strong commercial potential.

This expertise, with emphasis on the pre-investment phase gives Nopef a unique competence to support small and medium-sized companies, in close cooperation with Nordic and national financial institutions and trade organisations.

Nopef is one of the four Nordic financial institutions located in Helsinki. The other three are the Nordic Investment Bank (NIB), the Nordic Development Fund (NDF) and the Nordic Environment Finance Corporation (NEFCO).

Sitra

The Finnish Innovation Fund is operating directly under the Finnish Parliament, thus decision-making processes are tied to parliamentary systems.

New sustainable business

Sitra notes that by 2017 Asia will generate nearly half of the growth of the global economy outside the US.

Asian countries are implementing new green economy and technology, looking for sustainable solutions for environmental problems, energy production and the efficient use of raw materials. Most of the world’s metropolises are in Asia. Two-thirds of Asians will eventually live in cities, consuming the majority of the world’s commodities, services and energy. Cities are both the problem and the solution. India is not an exception in this context.

Sitra concludes that the fortunes of Finland’s economy are bound to Asian growth, hence new investments are targeted at businesses that

Promote health and well-being•

Solve social problems in society•

Improve material and energy efficiency•

Speed up the smart use of natural resources•

Promote an ecological way of life•

Investment terms in a nutshell

Investments on equal terms with other •investors

Good financial return•

Investments typically in the range of •€ 300,000-1 million

Minority ownership of 10-30 per cent in the •first financing round

Investments mainly in equity, but may also •grant convertible loans or regular loans

Always seeking other investors to co-invest •in each company

Commits to the ownership and development •of the company, on average 4 to 10 years

No grants or subsidies nor free support •to companies



MAPPING THE CHANNEL OF SETTING UP BUSINESS

IN INDIA

5.1 Cultural, social and geographical trends apart from market trends

India is a huge country which is like a continent in itself with the territory of India divided into 28 states. Each state has its own set of laws and regulations called as the state governed laws. However, each state is abided by common central government laws. It is important to see the attractiveness of different states when considering India market as per the business potential, business environment, available infrastructure, human resource availability, taxation, etc. The country is diverse and different as you go from one state to another in terms of socio economic culture and demographics. The country has a vast young age population of more than 50 per cent below the age of 25 years and the average age by 2020 will be 29 years, while the population is about 240 times that of Finland.

5.2 Doing business in India

India as a destination to do business has attracted many countries around the world and today it is one of the leading emerging economies. Almost all the sectors in India have grown by and large in the last couple of decades after the liberalisation of the economy in the early nineties. Business in India has advantages of long-term and sustainable business possibilities owing to its large domestic consumption and international business growth in the past. Some of the companies have predetermined way of entry to this market owing to their long business relations with India. However, a very clear entry mode should be chosen by the companies from the options available when planning to associate their business with India. It is important to note that

it’s a price competitive market but promises huge volume growth for feasible business due to its high consumer base.

5.3 Things to keep in mind

It is important to keep things in mind while choosing a specific location by a company for its business. Most importantly, the demographics, right infrastructure, tax rules of the state, vicinity to suppliers, human resource availability, special economic zone, price parity, exit options in case of dissolution. The above stated influences the decision to choose a specific location in comparison to others.

5.4 Different avenues for market entry

A realistic plan should be drawn and the benefits and risks should be discussed before arriving at any conclusion. Recently in 2013, the new Company Law Bill 2012 has been amended replacing the old Company Act Bill of 1956 which has improved the transparency and compliances of companies especially the small and medium and micro industries in India.

The entry option is decided for the client from the below options

Liaison Office (LO) or Branch Office (BO)•

Establishment of 100 per cent wholly-owned •Indian subsidiary of parent company

Joint Venture (JV)•

Strategic acquisition of existing Indian •company

Operating through an agent/representation, •distributor/partner in India

CLEANTECH HANDBOOK – INDIA Mapping the Channel of Setting up Business in India


ROLE OF COMMUNICATION FOR CLEANTECH IN INDIA

Introduction

Like any sector, the biggest challenge facing cleantech companies at the moment is the dynamism of evolving economies. It can be extremely difficult for early-stage companies to access the financing they need to get their technologies off-the-ground and the general atmosphere that is increasingly risk-averse. That said, this backdrop offers a real opportunity for cleantech growth because the technologies that will ultimately be successful are those that work more cheaply, more efficiently, or more intelligently. In a time of austerity, these are the real drivers of cleantech adoption in India and the companies that can get this message right are those that will succeed, regardless of the economic climate.

Importance of communications and PR in cleantech business

There are mixed perceptions about dovetailing communication with business strategy, but it’s clear that the companies getting the communications aspect right are those that are succeeding. Especially in a highly competitive market like India, a good communication will set an excellent example of strong company message that is underpinning the success of the low-carbon sector. Indian media is craving for stories from companies that is all about jobs, investing in the economy and national leadership, which is why there’s such good support for the sector. The truth is that people respond much more to those messages than to climate change issues. However, still a lot of cleantech companies think of PR and communications as something to address when they have the time or money; the reality is that whether or not you are in a position to use an external agency, the success of a communications activity is absolutely integral to your success as a business.

Need for change to be successful in the Indian market

Communication is vital to the success of any company in India and is particularly crucial in the cleantech sector. It’s as important as your

business plan or sales strategy and should be a priority from day one. You could have a magic box that could save the world but if no one knows that it exists or what it does, and no one understands why we’d want it, it won’t make any difference at all. Indian companies irrespective of size are extremely particular about branding for a competitive edge and more so to communicate on behalf of the sector. Given this trend, communication should be considered by Finnish companies as an integral part while developing an entry strategy or while doing business in India.

Cleantech companies – Reach out to mainstream audience in India

The approach is very much about focusing on the bigger picture in India and this is important for two reasons. Firstly, public acceptance and consumer demand are crucial for the vast majority of technologies; unless people understand the benefits of new technologies they are unlikely to accept change. There are also plenty of examples of consumer demand for more sustainable products or services driving innovation. Secondly, it’s important to remember that the stakeholders that companies need to engage with are people. If you can engage those people with your story and reach them on a personal level, they’ll be far more ready to sit through a data-heavy presentation of your growth projections.

Tips to a business start-up looking to communicate its message to the industry

Think about communications from the very beginning; they are integral to the success of any business at any stage of growth. At the very least, it’s important that the company is absolutely clear about what its does and why it matters. Describe your business clearly in one line; it sounds simple enough but it’s amazing how many people can’t do this. Also, develop an awareness of the bigger issues that you are aligned with and how you are helping to address them. Perhaps most importantly of all, present yourself as the company you want to be, i.e. a company with a solution for a green economy.

CLEANTECH HANDBOOK – INDIA Role of Communication for Cleantech in India


Does size of the company matter?

It’s not about size; it’s about how established you are. There are companies of four people who are doing a great job of communicating and really building a profile for themselves in India. In contrast, there are companies with much larger payrolls that no one has really heard of. The basic principles of communication are the same, however, big the company is; the difference is the profile of the company. Once you have a profile and people know who you are and what you do, it becomes more about managing your reputation, which is when companies usually start looking for a PR agency. However, this strategy doesn’t apply to businesses that don’t yet have a reputation. That’s where it’s important to take professional help, who work with companies across all their communication activities to do the hard work of building that profile in the first place.

Should the communication be limited to target journalists/section of the media?

Indian media landscape is dynamic. While setting up the communication plan, avoid limiting

focus to a narrow range of media because the more widely the message is spread the better. Of course certain stories will complement certain publications, but it’s important to make the story as interesting as possible to as many publications as possible. It’s too easy (and too lazy) to just get stories about a lighting client into the lighting press. They should be talked about in the business press, the green media and the mainstream media.

Role of Cleantech Finland

With a national objective to develop the sector into a new cornerstone industry, CLEANTECH FINLAND, acts as a platform dedicated to the Finnish cleantech industry that could offer an excellent understanding of the environment and clearly and effectively communicate the complexities of clean technology in emerging markets including India.

CLEANTECH FINLAND® is a network of top cleantech experts. Cleantech Finland connects clients, partners, investors and other stakeholders with the best cleantech expertise.

CLEANTECH HANDBOOK – INDIA Role of Communication for Cleantech in India


TEAM FINLAND IN INDIA

7.1 Introduction

Team Finland network was set up to support Finland’s external economic relations and promote the country brand, internationalisation of Finnish companies as well as foreign investment directed at Finland. The network brings together actors both from Finland and abroad. At the heart of the Team Finland network are the Ministry of Employment and the Economy, the Ministry for Foreign Affairs and the Ministry of Education and Culture of Finland. Team Finland encourages numerous players promoting Finland and Finnish business into progressively better cooperation.

Around the world there are over 70 local teams which handle Team Finland activities abroad, one of which is in India. Each local team gathers together the Finnish authorities, publicly funded organisations, and other central players representing Finland in the particular region.

The significance of India as a target market for the internationalisation of Finland’s trade and industry has grown. Team Finland in India has officiated several activities to strengthen collaboration between Indian and the Finnish players. Cleantech has been recognised as one of the focus areas of collaboration between Finland and India.

Team Finland network

The Team Finland network promotes Finland’s economic external relations, country branding and promotion activities, internationalisation of enterprises and foreign investment in Finland. Its activities are aimed at enhancing cooperation between Finnish actors operating in these sectors.

The Ministry of Employment and the Economy, the Ministry for Foreign Affairs and the Ministry of Education and Culture form the core of the Team Finland network.

Some of the important Finnish Team Finland network and key actors enhancing Indo-Finnish trade and industry actions include the following publicly funded organisations.

Finnpartnership supports feasible and •commercially viable business partnerships between companies and organisations

in Finland and India with the objective to enhance positive development effects in India

Finnfund, a Finnish development finance •company providing long-term investment loans and risk capital for private projects in India

Finnvera promotes Finnish enterprises’ •activities targeted at India, by granting export guarantees and loans and guarantees for internationalisation

Tekes – the Finnish Funding Agency for •Technology and Innovation represents Finnish innovation actors in India

Finnish Industry Investment Ltd, being a part •of the Finnish national innovation system seeks to stimulate Finnish industry, promote the development and deployment of new technology

Finpro, an MEE Group agency, and its trade •centre’s assist Finnish trade and industry actors in forging contacts and networks in India. It also implements industry-specific projects in the Indian market

In addition,

Sitra, the Finnish Innovation Fund promotes •and stimulates new business models that aim for sustainable well-being

Nopef – which has a focus on globalisation •is financed by the Nordic Council of Ministers. The funds are used to strengthen the international competitiveness of small and medium-sized enterprises by providing loans on favourable terms for co-financing feasibility studies, aiming at contributing to the internationalisation of companies

Internationalisation of Finnish cleantech enterprises and India

The MEE’s export promotion policy aims to ensure that Finnish enterprises have at least equal internationalisation conditions and are operating possibilities in the market compared to the companies of competitor countries. An agreement on economic cooperation between Finland and India entered into force in 2011. On Finland’s side, the agreement on economic

CLEANTECH HANDBOOK – INDIA Team Finland in India


cooperation and the Joint Commission between Finland and India are coordinated by the Ministry for Foreign Affairs.

Under the agreement, a cleantech working group will commence its operations in autumn 2013. With the help of the working group, Finland aims to increase concrete cooperation between companies in the cleantech sector and the Indian authorities and funding organisations, utilising the working group for communications and networking between the countries. Within the working group, the MEE engages in close cooperation with Team Finland network.

The MEE strives, with public services and subsidies, to encourage primarily Small and Medium-sized Enterprises (SMEs) operating on the home market to internationalise their business, as well as to accelerate the internationalisation process of enterprises that have already started exporting.

Furthermore, the MEE is focusing a higher number of innovation policy and export and internationalisation promotion measures on India too. Enterprises can apply to the Centres for Economic Development, Transport and the Environment (ELY Centres) for aid for their internationalisation projects.

7.2 Indo-Finnish Joint Working Group on Clean Technologies and Waste Management is under the Bilateral Joint Commission

The Indo-Finnish Joint Working Group on Clean Technology and Waste Management has been established under the Indo-Finnish Joint Commission. The Joint Working Group (JWG) will implement the Agreement on Economic Cooperation between the Government of the Republic of Finland and the Government of the Republic of India.

The coordinating authorities of the JWG are the Ministry of Employment and Economy on the Finnish side and the Ministry of Environment and

Forests on the Indian side. The JWG shall report on its work to the Indo-Finnish Joint Commission coordinated by the Ministry for Foreign Affairs of Finland and the Ministry of Commerce and Industry of India.

The JWG shall consist of representatives of the Coordinating Authorities and representatives of other ministries, governmental, industrial and financial organisations, as well as enterprises from both sides, as deemed relevant respectively by both sides.

The JWG shall meet once a year or when considered appropriate by the sides either in Finland or in India. The date and place of the meetings shall be mutually agreed upon by the coordinating authorities. Both sides may propose issues to the agenda of the JWG.

After each meeting of the JWG, minutes of the meeting/a protocol will be prepared by the host of the meeting and agreed upon by the coordinating authorities. A mutually decided action plan and progress report will be prepared periodically. Between the official JWG meetings different networking events, workshops, seminars and exchange visits can be organised under the JWG umbrella.

The working language of the JWG shall be English. Both sides shall bear their respective costs arising from functioning of the JWG.

Identified fields of cooperation

Renewable energy (solar, wind, bioenergy)•

Energy efficiency •

Sustainable cities •

Water and wastewater•

Waste management•

Smart grid•

Combined heat and power•

Measuring, analyses and automation•

Climate and environment•

Pollution risk reduction•

Sustainable management of forests•

Facilitating access to cleaner technologies by •small and medium enterprises

Other fields as mutually agreed upon by the •coordinating authorities

Tasks of the Joint Working Group (JWG):

Identification of joint activities and areas for 1. cooperation

Exchanging information and knowledge and 2. sharing experience

Creating favourable conditions and 3. suggesting mechanisms for collaboration

Supporting investments and R&D cooperation 4. in indentified cooperation fields

Scanning on joint funding of mutually 5. agreed projects and activities under the JWG umbrella

Networking of professionals, organisations 6. and enterprises by organising workshops, seminars and exchange visits

CLEANTECH HANDBOOK – INDIA Team Finland in India


KEY CLEANTECH INDUSTRY CONSORTIUMS AND

ORGANISATIONS

Multilateral Organisations

Field Website

UNDP The United Nations' global development network helps India achieve the global Millennium Development Goals (MDGs) and the national objectives

www.in.undp.org/india/en/home.html

USAID Programmes for clean technologies and renewable energy, mitigating global climate change and access to energy and water

transition.usaid.gov/in/

UNIDO The specialised agency of the United Nations that promotes industrial development for poverty reduction, inclusive globalisation and environmental sustainability

www.unido.org/office/ india.html

NORAD Energy, climate change and adaptation www.norad.no/en/ front-page

ICF Helps developing countries adapt to climate change, embark on low-carbon growth and tackle deforestation

www.climatefundsupdate.org/

GIZ Expertise for sustainable development, economic development, food security, health and basic education; and environmental protection, resource conservation and climate change mitigation

www.giz.de

WWF Protection of India’s ecological security. Minimising wasteful consumption and promotion of sustainable and wise use of natural resources by all sectors of society

www.wwfindia.org

IPCC The intergovernmental panel on climate change www.ipcc.ch/

Sustain Asia A corporate sustainability and clean and green technologies investment advisory firm in Asia Pacific

sustainasia.com/en/index.php

Bilateral Organisations

DFID India Sharing skills and expertise in priority areas such a growth, health, food security and climate change

www.gov.uk/government/world/organisations/ dfid-india

SDC The Swiss Agency for Development and Cooperation's emphasis is on innovation, dialogue, capacity building and cooperation in climate change and energy themes

www.swiss-cooperation.admin.ch/india/

WRI India To build transformative solutions that protect the earth and improve people’s lives in India

wri-india.org/about/

Research Organisations

CSE The Centre for Science and Environment (CSE) is a public interest research and advocacy organisation based in New Delhi

www.cseindia.org

CLEANTECH HANDBOOK – INDIA Key Cleantech Industry Consortiums and Organisations


TERI The Energy and Resources Institute focusing its research activities in the fields of energy, environment and sustainable development

www.teriin.org/index.php

Institiutions& Universities

EDF The Economic Development Forum is a Non-Profit Membership organization. The Economic Development Forum provides a platform for companies and individuals to explore sustainable development

www.edf.org/climate/india-finding-paths-sustainable-growth

IIT's Group of autonomous public engineering and management institutes of India

www.iitd.ac.in

Indian NGOs

Development Alternatives

Development Alternatives (DA) has acted as a research and action organisation, designing and delivering eco-solutions for the poor and the marginalised

www.devalt.org/about_us.aspx

SESI Solar Energy Society of India the Indian Section of the International Solar Energy Society (ISES)

www.sesi.in/aboutus.aspx

InWEA Promotion and development of wind power in India

www.inwea.org

INSEDA Integrated Sustainable Energy and Ecological Development Association. Concentrating promotion of renewable energy, ecological and natural resources development programmes with special focus on the implementation of biogas development in rural areas of the country, since 1980

www.inseda.org

CLEANTECH International Foundation

Collaborative non-profit initiative of the users, developers and researchers of clean technologies, dedicated entirely to the use of eco-efficient techniques and practices for environmental impact mitigation of industrial, developmental and human activities

www.cleantechfoundation.org/

CII CII is a non-government, not-for-profit, industry-led and industry-managed organisation, playing a proactive role in India's development process and working to create and sustain an environment conducive to the development of India, partnering industry, government, and civil society, through advisory and consultative processes

www.cii.in/

FICCI A non-government, not-for-profit organisation, an association of business organisations in India. Involved in sector-specific business policy consensus building, and business promotion and networking

www.ficci.com/

ASSOCHAM One of the apex trade associations of India. The organisation represents the interests of trade and commerce in India, and acts as an interface between industry, government and other relevant stakeholders on policy issues and initiatives. The goal of this organisation is to promote both domestic and international trade, and reduce trade barriers while fostering conducive environment for the growth of trade and industry of India

ww`cham.org/

FISME The progressive face of Indian MSMEs and is regarded as such by the Government of India. It is a member of the National MSME Board formed under the MSME Act 2006. FISME is consulted by SME policy making set-up of the country and also works in close coordination with the Ministry of Micro, Small and Medium Enterprises as well as major multilateral and bilateral bodies in India

www.fisme.org.in

CLEANTECH HANDBOOK – INDIA Key Cleantech Industry Consortiums and Organisations


OTHER CLEANTECH ORGANISATIONS IN INDIA

Country Programmes Webpage

Cleantech Holland

Decentralised energy solutions for villages www.cleantechholland.nl/en/

Germany – DCTI (Deutsches Clean TechInstitut)

- GIZ

Energy, sustainable development and industrial development, renewable energy supply for rural areas, commercialisation of solar energy in urban and industrial areas (ComSolar) (BMU)

Indo-German Energy Forum

International Climate Initiative

Green Energy Corridors Project

Indo-German Energy Programme

Integration of Renewable Energies into the Indian Electricity System

www.dcti.de/en/

Norway -INTPOW

Promoting renewable energy www.intpow.no/

UK-Bridge Cleantech

Technology Vision 2020

UK India Business Leaders Climate Group

South Asia Water Initiative

www.bridgecleantech.com/

www.bridgecleantechindia.com/

France-Cleantech

Renewable energy, especially solar www.france-cleantech.fr

www.frenchcleantech.com

Israel NewTech Advances the water and renewable energy sectors by supporting academia and research, encouraging implementation in the local market, and by helping Israeli companies succeed in the international arena

israelnewtech.com/tag/cleantech-israel/

Switzerland- Cleantech

Solutions for water treatment and wastewater management

www.swisscleantech.ch/

www.cleantech-switzerland.com

Swedish Cleantech

Facilitates exports of Swedish cleantech and support the development of Swedish companies and promote research and innovation in this field. Operated and developed by the Swedish Agency for Economic and Regional Growth – Tillväxtverket

swedishcleantech.se

Cleantech Scandinavia

Cooperation and MoU concerning energy efficiency with CII, Indo-Swedish Innovation Platform

www.cleantechscandinavia.com/

USA- Cleantech Group

Helping member companies start and finish projects in India; networking platform for all cleantech sectors

www.cleantech.com

Australia-Cleantech

Facilitates and delivers Australian clean technology investments on behalf of both investors and project proponents

www.auscleantech.com.au/

CLEANTECH HANDBOOK – INDIA Other Cleantech Organisations in India


REFERENCES

envfor.nic.in/about-ministry/about-ministrywww.indiaenvironmentportal.org.in/organisation/ministry-petroleum-and-natural-gaspowermin.nic.in/JSP_SERVLETS/internal.jspwww.mnre.gov.in/mission-and-vision-2/mission-and-vision/www.c2es.org/international/key-country-policies/india/climate-plan-summarywww.pib.nic.in/newsite/erelease.aspx?relid=46172www.cwet.tn.nic.in/html/aboutus.htmljnnurm.nic.in/wrmin.nic.in/index1.asp?linkid=201&langid=1wrmin.nic.in/writereaddata/linkimages/NWP2012Eng6495132651.pdfwww.teriin.org/index.php?option=com_content&task=view&id=17mnre.gov.in/file-manager/UserFiles/biofuel_policy.pdfwww.simplydecoded.com/2013/02/24/a-ninth-mission-national-bio-energy-mission/unfccc.int/cooperation_and_support/financial_mechanism/bilateral_and_multilateral_funding/items/2822.phpwww.earthdirectory.net/India.htmwww.dst.gov.in/moud.gov.in/sites/upload_files/moud/files/Mandate_0_0.pdfwww.indianetzone.com/51/ministry_urban_development.htmwww.finland.org.in/public/default.aspx?contentid=266232&nodeid=46694&contentlan=2&culture=en-USteam.finland.fi/public/default.aspx?nodeid=46788&contentlan=2&culture=en-USwww.google.co.in/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=2&cad=rja&ved=0CEMQFjAB&url=http%3A%2F%2Fwww.researchgate.net%2Fpublication%2F200122206_Wind_energy_in_India_Status_and_future_prospects%2Ffile%2F204c11a7dfe7d34eca11dc7907fdaeee.pdf&ei=Nj_vUeOHGIir4ATN5IDoBA&usg=AFQjCNEPM2qAffppOqELM6KkWmkJo_6Wvw&sig2=MDnPWNCQ918GxFdL1TvTxA&bvm=bv.49641647,d.bGEwww.eai.in/ref/ae/sol/cs/spi/solar_pv_in_india_industry_status_and_trends.htmlwww.mnre.gov.in/centers/sss-nire/(Insitute for Bioenergy under MNRE)www.kpmg.com/Global/en/IssuesAndInsights/ArticlesPublications/Documents/taxes-incentives-renewable-energy-2012.pdf (lobal Investment in RE)www.eai.in/ref/ae/win/business_opportunities.html (Wind energy Business opportuntities)cleanenergyministerial.org/Portals/2/pdfs/CEM4_roundtables_report_web.pdf (Clean Energy Ministerial Meet report ****)www.mnre.gov.in/file-manager/UserFiles/mission_document_JNNSM.pdf (Solar Mission docu-ment MNRE)www.eai.in/ref/ae/sol/sol.html (Unique Proposition why solar)www.mapsofindia.com/maps/nonconventional/solarpower.htm# (Solar project maps)www.ebtc.eu/pdf/110926_REP_EBTC_Greentech_Energy.pdf (List of organisations in Solar, Wind, Bioenergy etcmnre.gov.in/file-manager/UserFiles/strategic_plan_mnre_2011_17.pdfwww.ey.com/Publication/vwLUAssets/Renewable_energy_country_attractiveness_indices_February_2013/$FILE/Renewable_energy_country_attractiveness_indices.pdfsiteresources.worldbank.org/EXTENERGY2/Resources/Unleashing_potential_of_renewables_in_India.pdfgyananalytics.com/The%20Potential%20of%20Renewable%20Energy%20in%20India%20-%202012.pdfwww.eai.in/ref/ae/win/win.html#sthash.qY0uBng5.dpufeqmaglive.com/EQ-ARTICLE-668-Acceleration-Of-Renewable-Energy-With-Emphasis-On-Wind-Energy-Through-Pro-Active-National-Policies-In-India.htmlSource: Report of The Working Group on Power for Twelfth Plan 2012-17, Government of India, Ministry of Powerwww.cityoflondon.gov.uk/business/support-promotion-and-advice/promoting-the-city-internationally/india/Documents/BC_PR_CityofLondon1.pdfwww.eco-ventures.in/pdfs/indian_solar_market_potential_anita.pdftejas.iimb.ac.in/articles/75.phpwww.triplepundit.com/2013/07/renovate-india-renewable-energy-sources/ (Very good article about RE++++)www.salvuscapital.com/iiwes.pdf (Very good wind energy report)LArge solar power plans in India by MNRE (500MW)articles.economictimes.indiatimes.com/2013-06-14/news/39976619_1_solar-power-welspun-energy-mwwww.emergent-ventures.com/docs/energetica-india.pdfwww.gwec.net/wp-content/uploads/2012/11/India-Wind-Energy-Outlook-2012.pdfmnre.gov.in/file-manager/UserFiles/presentation-01082012/Presentation%20on%20Policy%20Issues%20and%2012th%20Plan%20Proposals%20by%20JS,%20MNRE.pdfwww.academicresearchjournals.com/serialjournalmanager/pdf/1364630101.pdf

CLEANTECH HANDBOOK – INDIA References


techcurry.co/indias-wind-power-potential-stands-at-massive-2000-gw-lawrence-berkeley/nexusnovus.com/wind-energy-opportunities-indiawww.emergent-ventures.com/docs/energetica-india.pdfwww.ebtc.eu/pdf/111031_SNA_Snapshot_Biofuels-and-Bio-energy-in-India.pdfwww.simplydecoded.com/2013/02/24/a-ninth-mission-national-bio-energy-mission/Bioenergy mission under NAPCC as Ninth misssionwww.bioenergyindia.org/Capabilities.aspx... Bioebergy council of Indiawww.bioenergyconsult.com/tag/biomass-potential-in-india/www.rcuk.ac.uk/documents/india/BioenergyprogrammeIndia-DBTDrRenuSwarup.pdfGood report on Bioenergy..highlighting barriers www.tech-action.org/Perspectives/BioenergyIndia.pdfwww.tech-action.org/Perspectives/BioenergyIndia.pdfUNEP report on Bioenergywww.unep.org/bioenergy/Portals/48107/doc/issues/issuespaper/Issue%20Paper%207%20-%20REDD%20and%20Bioenergy.pdfVery veryimprotant report on Bioenergy missionwww.eai.in/club/users/Shweta/blogs/7498www.inspirenetwork.org/pdf/issue_7_(mar11).pdfwww.slideshare.net/iaeme/future-potential-of-small-hydro-power-project-in-indiawww.renewableenergyworld.com/rea/news/article/2013/07/financing-indias-small-hydro-capacitywww.thelearningpoint.net/home/infographic-insights---visualizing-data-and-statistics-related-to-india/infographics---visualizing-small-hydro-power-potential-in-india-non-conventional-energy-resourcescleantechnica.com/2013/03/01/indias-budget-includes-145-million-incentive-for-wind-energy-low-cost-funding-for-renewable-energy-projects/#7AbL8J0gwKbb5d6Q.99www.greenfeathers.in/greendirectory/clean-and-green-category.php?page=2&category=66&name=RE-SmallHydrowww.slideshare.net/IPPAI/issues-in-hydro-power-developmentwww.nrel.gov/docs/fy11osti/48948.pdfwww.eai.in/ref/ae/wte/wte.html#sthash.oLAvZVID.dpuf (Background)www.eai.in/ref/ae/wte/pol/policies.html#sthash.4WKP3ywI.dpuf (government policy)www.seas.columbia.edu/earth/wtert/sofos/Natl_%20Master_%20Plan_of_India.pdf (good presenation)wtert.in/25-08-2012-Day2/Regina_Dube.pdfwww.seas.columbia.edu/earth/wtert/sofos/Sustainable%20Solid%20Waste%20Management%20in%20India_Final.pdfSedish waste to energywww.swedenabroad.com/SelectImageX/165865/WtEreportSidafinal.docwtert.in/24-08-2012-Day1/Vikram_Reddy.pdfenvfor.nic.in/divisions/ic/wssd/doc2/ch4_anx.pdfpanchabuta.com/2012/11/29/indian-govt-earmarks-rs-5-4-billion-subsidy-for-rural-electrification/www.tem.fi/en/enterprises/internationalisation/aid_to_individual_enterpriseswww.tem.fi/en/enterprises/internationalisation/joint_export_promotion_projects_of_enterprises_and_project_aidwww.slideshare.net/iaeme/future-potential-of-small-hydro-power-project-in-indiawww.renewableenergyworld.com/rea/news/article/2013/07/financing-indias-small-hydro-capacitywww.thelearningpoint.net/home/infographic-insights---visualizing-data-and-statistics-related-to-india/infographics---visualizing-small-hydro-power-potential-in-india-non-conventional-energy-resourcescleantechnica.com/2013/03/01/indias-budget-includes-145-million-incentive-for-wind-energy-low-cost-funding-for-renewable-energy-projects/#7AbL8J0gwKbb5d6Q.99www.asiapacificpartnership.org/pdf/Projects/Cross-Cutting-Other/PSU/CCO-07-03_Financing_Energy_Efficiency_in_India_Nov_2008.pdfwww05.abb.com/global/scot/scot316.nsf/veritydisplay/bcb30e13c8cbe734c125786400512e26/$file/india.pdfwww.ipeec.org/docs/countryreports/India-Country-report.pdfwww.google.co.in/url?sa=t&rct=j&q=energy%20efficiency%20opportunities%20report%20india&source=web&cd=4&cad=rja&ved=0CDgQFjAD&url=https%3A%2F%2Fwww.econ.umd.edu%2Fresearch%2Fpapers%2F592%2Fdownload%2F346&ei=mvAWUr27I6v24QS1voGYAQ&usg=AFQjCNHOZp8zehWlMLg3OrWCwR0OXrhm6g&bvm=bv.51156542,d.bGEwww.ebtc.eu/pdf/111031_SNA_Snapshot_Energy-Efficiency-in-India.pdfwww.idfc.com/pdf/report/Chapter-4.pdfconference.aimt.edu.in/mba/mba%20paper/CONCEPT%20OF%20GREEN%20FINANCE%20AND%20ITS%20VIABILITY%20IN%20INDIA.pdf

www.irjcjournals.org/ijmssr/Feb2013/9.pdfindianresearchjournals.com/pdf/IJMFSMR/2012/July/3.pdf

www.venturecenter.co.in/funding/www.greenfeathers.in/greendirectory/clean-and-green-category.php?page=2&category=66&name=RE-Smallwww.slideshare.net/IPPAI/issues-in-hydro-power-developmentwww.nrel.gov/docs/fy11osti/48948.pdfwww.climateinvestmentfunds.org/cifnet/country/indiawww.cleantechcluster.fi/en/services/international/?id=158www.ifc.org/wps/wcm/connect/4252af804a95fe15b284f29e0dc67fc6/IFC+Activities+in+Cleantech.pdf?MOD=AJPERESwww.2point6billion.com/news/2011/05/30/asian-development-bank%E2%80%99s-clean-tech-vc-funds-target-china-and-india-9377.htmlwww.thehindubusinessline.com/economy/usaid-commits-100-m-to-india-cleantech-fund/article4843648.eceList of investment funds Indiabridgecleantech.in/index.php/funds/list-of-investment-funds (BridgeCleantech)InfuseMangnetar Venture Pvt limited...USD 100 mIDFCIFCwww.idfc.com/alternatives/pdf/private-equity-financing-for-cleantech-infrastructure.pdf (very good report on CT funding)www.unep.org/pdf/UNEP_Investing.pdfwww.climateinvestmentfunds.org/cif/sites/climateinvestmentfunds.org/files/CTF%20CRP%205%20%20India%20ppt.pdfwww.climateinvestmentfunds.org/cif/sites/climateinvestmentfunds.org/files/CTF_India_investment_plan_101411.pdfentrepreneurindia.in/people/coverstory/the-real-green-shoots/19980/www.hindustantimes.com/business-news/WorldEconomy/IFC-bets-big-on-India-s-green-biz/Article1-1081152.aspxwww.irjcjournals.org/ijmssr/Feb2013/9.pdfindiabudget.nic.in/ub2013-14/bh/bh1.pdfwww.sustainabledevelopment.in/pdf/events/day2/Pankaj_Sindwani.pdftrade.gov/publications/pdfs/india-clean-energy2008.pdfwww.siemens.co.in/sustainable-development-in-india/?stc=inccc020017mospi.nic.in/mospi_new/upload/sel_socio_eco_stats_ind_2001_28oct11.pdf pg 38www.tcpomud.gov.in/Divisions/MUTP/Provisional_Census_Report_2011.pdfmospi.nic.in/Mospi_New/upload/cocsso_data/agenda-IV_20th_cocsso.pdfjnnurm.nic.in/wp-content/uploads/2013/07/sectorwise-details.pdftcpomud.gov.in/Schemes/index.htmlnerudp.nic.in/www.pwc.com/gx/en/capital-projects-infrastructure/assets/gridlines-india-article-2013.pdfwww.business-standard.com/article/economy-policy/land-talks-on-for-smart-cities-project-112080502012_1.htmlwww.mckinsey.com/insights/urbanization/urban_awakening_in_indiawww.moef.nic.inwww.wmrindia.comwww.ebtc.eu/pdf/111031_SNA_Snapshot_Waste-management-in-India.pdfurbanindia.nic.in/programme/lsg/twelfth_5y_plan.pdfhttp://www.nbmcw.com/articles/green-construction/25586-green-building-going-green-concept-on-rise-in-india.htmlhttp://www.wienerberger.in/events/previous-events/the-green-building-congress-2012.html?lpi=1208673813172http://www.nrdc.org/international/india-constructingchange.asphttp://www.noppen.com.cn/upcoming/B1212/index.asp http://greencleanguide.com/2012/08/22/three-primary-rating-systems-for-green-buildings-in-india/http://www.ijetae.com/files/Conference%20ICERTSD-2013/IJETAE_ICERTSD_0213_51.pdfhttp://www.nswaienvis.nic.in/ http://wiego.org/wiego/sewa-bharats-inclusive-solid-waste-management-tool http://www.environment.tn.nic.in/SoE/images/WasteManagement.pdf http://www.moef.nic.in/downloads/public-information/Roadmap-Mgmt-Waste.pdf

CLEANTECH HANDBOOK – INDIA References


ABBREVIATIONS JnNURM: Jawaharlal Nehru National Urban Renewal Mission

JV: Joint Venture

JWG: Joint Working Group

KFW: Kreditanstalt Für Wiederaufbau (Reconstructioncredit Institute)

KITVEN: Karnataka Information Technology

LEED: Leadership in Energy and Environmental Design

LO or BO: Liaison Office or Branch Office

MNRE: Ministry of New and Renewable Energy

MOEF: Ministry of Environment and Forest

MOMSME: Ministry of Micro, Small and Medium Enterprises

MOP: Ministry of Power

MOUD: Ministry of Urban Development

MP: Madhya Pradesh

MSME: Micro, Small and Medium Enterprises

MSW: Municipal Solid Waste

NABARD: National Bank for Agriculture and Rural Development

NAPCC: National Action Plan on Climate Change

NDF: Nordic Development Fund

NEERI: National Environmental Engineering Research Institute

NEFCO: The Nordic Environment Finance Corporation

NERUDP: North Eastern Region Urban Development Programme

NGO: Non-Governmental Organisation

NHPC: National Hydroelectric Power Corporation

NIB: The Nordic Investment Bank

NIF: National Innovation Foundation

NMEEE: National Mission on Enhanced Energy Efficiency

NOPEF: The Nordic Project Fund

NPV: Net Presente Value

NRDC: National Research Development Corporation

NRDMS: Natural Resources Data Management System

O&M: Operations and Maintenance

OECD: Organisation for Economic Cooperation and Development

OPEX: Operational Expenditure

PAT: Perform Achieve and Trade

PCRA: Petroleum Conservation Research Association

PFC: Power Finance Corporation

PPPs: Public Private Partnerships

PV: Photo Voltaic

RBI: Reserve Bank of India

R&D: Research and Development

REC: Renewable Energy Certificates

REDD: Reducing Emissions From Deforestation and Forest Degradation

REEEP: Renewable Energy and Energy Efficiency Partnership

RPOS: Renewable Purchase Obligation

RRECL: Rajasthan Renewable Energy Corporation Ltd.

SCADA: Supervisory Control and Data Acquisition

SCF: Strategic Climate Fund

SDC: Swiss International Cooperation

SEC: Solar Energy Centre

SECI: Solar Energy Corporation of India

SERC: State Electricity Regulatory Commission

SESI: Solar Energy Society of India

SEZs: Special Economic Zones

SGP: Small Grants Programme

SIDBI: Small Industries Development Bank of India and Other Nationalised Banks

SLEM: The Sustainable Land and Ecosystem Management

SPCBs: State Pollution Control Boards

STP: Sewage Treatment Plant

TCPO: Town and Country Planning Organisation

TEKES, THE FINNISH FUNDING AGENCY FOR TECHNOLOGY AND INNOVATION

TEM: Ministry of Employment and The Economy

TERI: The Energy and Resources Institute

TIFAC: Technology Information Forecasting

UIDSSMT: Urban Infrastructure Development Scheme for Small and Medium Towns

ULB: Urban Local Bodies

UN: United Nations

UNDP: United Nations Development Porgramme

UNEP: United National Environment Programme

UNIDO: United Nations Industrial Development Organisation

USAID: United States Agency for International Development

VCF Venture Capital Fund

WB: The World Bank

WRI: World Resources Institute

ADB: Asian Development Bank

AIT: Austrian Institute of Technology and Assessment Council

ASSOCHAM: The Associated Chambers of Commerce and Industry of India

BEE: Bureau of Energy Efficiency

BOOT: Build–Own–Operate–Transfer

BPS: Business Partnership Programme

CAGR: Compound Annual Growth Rate

CAPEX: Capital Expenditure

CEA: Central Electricity Authorithy

CEPT: Centre for Environmental Planning and Technology University

CERC: Central Electricity Regulatory Commission

CES: Centre for Ecological Sciences

CFL: Compact Fluorescent Lamp

CII: Confederation of Indian Industry

CPCW: Central Pollution Control Board

CPHEEO: The Central Public Health and Environment Engineering Organisation

CSE: Centre for Science and Environement

CSIR: Council of Scientific and Industrial Research

CSOs: Civil Society Organisations

CSP: Concentrated Solar Power

CTF: Clean Technology Fund

DA: Development Alternatives

DAC: Development Assistance Committee

DBFOT: Design-Build-Finance-Operate-Transfer

DBO: Design-Build-Operate

DBT: Department of Bio-Technology

DCTI: Deutsches Clean Tech Institute

DFID: Department for International Development

DIT: Department of Information Technology

DMIC: Delhi-Mumbai Industrial Corridor

DMICDC: The Delhi-Mumbai Industrial Corridor Development Corporation Ltd.

DPRs: Detailed Project Reports

DSIR: Department of Scientific and Industrial Research

DST : Department of Science and Technology

ECA: Export Credit Agency

EK: Confederation of Finnish Industries

ELY Centres: Centres for Economic Development, Transport and the Environment

EPC: Engineering, Procurement and Construction

EPCM: Engineering, Procurement and Construction Management

EU: European Union

FDI: Foreign Direct Investment

FICCI: Federation of Indian Chambers of Commerce and Industry

FISME: Federation of Indian Micro, Small and Medium Enterprises

GBI: Generation Based Incentive

GEDA: Gujarat Energy Development Agency

GEF: Global Environemnt Facility

GHG: Green House Gases

GIZ: Deutsche Gesellschaft Für Internationale Zusammenarbeit

GRIHA: Green Rating for Integrated Habitat Assessment

HVAC: Heating, Ventilation and Air Conditioning

IASH: International Association from Small Hydro

ICT: Information Communication Technology

IDFC: Infrastructure Development Finance Company

IFC: International Finance Corporation

IGBC: Indian Green Building Council of NRDC’s (Natural Resource Defence Council of India)

IIT: Indian Institute of Technology

ILC: International Law Commission

IMF: Indian Monitory Fund

INSEDA: The Integrated Sustainable Energy and Ecological Development Association

INTPOW: Norwegian Renewable Energy Partners

INWEA: Indian Wind Energy Association

IPCC: Intergovernmental Panel on Climate Change

IPP: Independent Power Producer Centre for Wind Energy Technology (C-Wet)

IREDA: Indian Renewable Energy Development Agency

IRR: Internal Rate of Return

IWMI: International Water Management Institute

JBIC: Japan Bank Internation Corporation

JICA : Japan International Corporation Agency

JNNSM: Jawaharlal Nehru National Solar Mission

CLEANTECH HANDBOOK – INDIA Abbreviations

Finpro, Trade Centre New Delhi, Mumbai

EditorsShriya RamachandranUlf ÖsterbergAshish Koltewar