story on renewable energy

7/31/2019 Story on Renewable Energy

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30 ConStruCtion week may 2011

Cover Story

89,000MW potential power generation from renewable energy SourCeS


30-40_CW_MAY11_CoverStory.indd 30 4/27/2011 8:28:08 PM


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India aims to facilitate the eneration of 1000 MW of rid connected electricity by 2013. (Pic courtesy: Sujana Enery)

be maximum in renewable energy capacity

addition in the near future, says Tapan Pal, sr.

vice president, business head Power Sector,

HCC Infrastructure.

Earlier this year, HCC signed an MoU

with the government of Gujarat for setting

up a renewable energy park at its proposed

waterfront city at Dholera Special Investment

Region, Ahmedabad, which is a development

similar to Lavasa. This is the first time the

company is entering into renewable energy

with an estimated investment of Rs 12,000

crore. The MoU was signed at the Vibrant

Gujarat Summit.

SolarOn the solar front, in 2009 India launched the

ambitious Jawaharlal Nehru National solar

Mission (JNNSM) with a target capacity of

20GW by 2022. It aims to facilitate the genera-

tion of 1000MW of grid connected electricity

by 2013. This is the largest and most ambitious

programme of its kind anywhere in the world.

With over 400 million citizens who lack access

to modern forms of energy, it also has one of

the largest decentralised off-grid renewable

energy programmes.

Solar Energy, though an emerging sector

in India, has got tremendous potential. One

round of capacity allocation under JNNSM

has already been completed and has received

unprecedented responses from various national

and international companies. A similar response

was received by the Gujarat government for

their solar power plans. It speaks volumes

about the magnitude of the opportunity and

investors confidence in the country, Pal says.

Though HCCs primary focus is on the devel-

opment of thermal and hydro power projects,

the company has made a modest plan to develop

several solar power projects, with Solar Pho-

tovoltaic (SPV) technology.

At present we are considering the oppor-

tunities to develop Solar Photovoltaic projects

in the state of Rajasthan, Madhya Pradesh,

Karnataka and Andhra Pradesh. Though we

are quite ambitious on developing projects in

the said states, the capacity allocation happens

through a competitive bidding process. Also,

the maximum capacity of SPV projects has

been capped at 5MW, leaving limited scope

for large capacity addition. So as of now we

are targeting a capacity of 30MW to 40MW

in next 2-5 years, Pal adds.

Sujana Energy, which sees a huge growth

potential in the solar energy market intends

to be a key player of this revolution. It plans

to set up over 400 MW of solar thermal and

solar PV power plants by 2013. We develop

and provide technology for government and

private companies alike. For the government,

we offer a unique solution in decentralised

distributed power generation schemes with

our solar thermal and hybrid technologies.

Whereas, in case of private companies, we

not only provide technology, but also offer

EPC solutions for their solar projects, he adds.

Like HCC there are other private players

Polic kers reproviding incentivesnd encourgingpltfors for R&D,technolog trnsfer,nufcturing,fnancing projects

nd developing solrissions to rp upcoercil doptionof solr power

Hri Kirn Chereddi,m dc, Sj e

20gWJawaharlal nehru national Solar MiSSion target For 2022



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Financingral eg Pjcs

IndianRenewableEnergyDevelopmentAgency(IREDA),

apubliclimitedgovtcompany,providesnancialsupporttospecicprojectsandschemesforgeneratingelectricityand/orenergythroughnewandrenewablesources.

IRDEAofferstermloanstorenewableenergyprojectsatratesslightlymorefavourablethangeneralcommerciallendingrates.

AsofMarch31,2010,IREDAnanced1,921projectswithaloancommitmentamountstotallingoverRs121.8billion.

PowerFinanceCooperation(PFC),theRuralElectricationCorporation

(REC),andNationalBankforAgriculturalandRuralDevelopment(NABARD)activelyfundrenewableenergyprojects.

CorporatenanciersofrenewableenergyprojectsinIndiaareprimarilyconcentratedonthelargewindandhydropowerprojects.

Thegrowingawarenessandfavourablegovtpolicies&regulatorymechanisms(bothatCentral&Statelevel)haveledtogradualincreaseincondenceofdomesticcommercialbanksprovidingloanstorenewableenergyprojects.

Fully commissioned 5MW Lanco solar power plant in Gujarat

We thk there s ssve opportut the solr spe lobll, for both projetdevelopers d EPc plers. Our strte sto udertke the etre projet developetut. globll, there re ver few EPcopes; ost of the re reol.We see esepotetl there V Sbb,

Ceo, Lac Sla

including Lanco and Punj Lloyd. And many

other companies have begun strengthening

their presence in the renewable energy sec-

tor to keep up.

Punj Lloyd recently signed a 25-year power

purchase agreement with NTPC Vidyut VyaparNigam Ltd (NVVN) for sale of power from a

5MW PV based solar power plant. The com-

pany is building the plant at Phalodi area of

Jodhpur district in Rajasthan. This project

is being set up as part of JNNSM, a program

under the aegis of Ministry of New & Renew-

able Energy and Ministry of Power.

We were one of the 30 developers to have

secured a power purchase agreement in the

first phase of the JNNSM. Punj Lloyd will

operate and maintain the project for 25 years.

The plant is to be commissioned by December

2011. The electricity produced by the plant will

benefit the people of Jodhpur. What made us

unique was that, we were the only pure play

EPC company with a track record in executing

projects ourselves in the power sector out of

the 30 bidders, says Tariq Alam, CEO, PunjLloyd Delta Renewables.

He says that solar has tremendous growth

potential both in utility grid tied systems as

well as in decentralised distributed systems.

The Indian government has launched the

JNNSM, which is a historic development that

will put solar power in the mainstream of Indias

quest for energy security, thereby combating

global warming and climate change. It is a

path-breaking initiative, which has set out an

ambitious target of generating 20,000 MW of

solar power by 2022, Alam adds.

inDiA AMonG TOP 5 CountrieS in terMS of renewAbLe enerGy CAPACity



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space globally, for both project developers and

EPC players. Our strategy is to undertake the

entire project development gamut. Globally,

there are very few EPC companies; most of

them are regional. We see an immense poten-

tial there, says Saibaba.

He says the cost of developing solar projects

has come down considerably over the recent

years. Moreover, global trends indicate that

solar tariffs are also coming on par with grid

power tariffs. So, it will not be very long before

solar power is at parity with the grid, he adds.

Another player, Moser Baer Clean Energy

(MBCEL), has commissioned Indias first Thin

Film based 5 MWp solar farm in Tamil Nadu

in December 2010.

The company has been allocated 3 more

projects, 15 MWp each, by the Gujarat govern-

ment. We see a tremendous opportunity for

solar farms business in Indian market and are

focussed towards creating a large pipeline of

projects. In 2-5 years, our strategy would be to

pick right opportunities in both government

and private segments and build around 1 GW

portfolio of solar projects across the country,

said Rajya Ghei, country head, MBCEL.

Seeing the huge growth potential that the

renewable energy sector offers, global equip-

ment manufacturers are entering the Indian

Challenges

Highinitialinvestment

Reducethecostofelectricitytoachievegridparity

Delayinprojectexecution

LackofinnovationasnewtechnologynotengineeredordevelopedinIndia

ForeigntechnologiesnotfeasiblefortheIndianclimateorgeography

InfrastructureconstraintandpoornancialconditionofSEBs

Lackofadequatedomesticmanufacturingfacility

Coststructureformanufacturingnotgloballycompetitive

Inter-stateleviesveryhighinIndia

formanufacturingNoexportsubsidies

ShortageofqualitymanpowerWit t ittto bco tbid pri Idi widd or powrrkt, w trtdoprtio i t

coutr i 2010 bestablishing an ofcei t Idi wididutr pictr,Ci. It b o rod for wcor ik uto tr t Idirkt wit tt

tcoo product

Jukk-Pkkmki,Psd d Ceo, th Sch

Peranent agnet generator fro The Switch

2500mW renewable Power inDia aDDS annually

market, whereas the existing ones are looking

at expanding their production capacity.

Finland-based The Switch, a new energy

technology company, has recently announced

the expansion of its international presence

by establishing a wholly-owned India office

in Chennai.

It has been a long road for a newcomer

like us to enter the Indian market with latest

technology products. We are also targeting the

country through our existing turbine customers

such as Chinese Dong Fang that has received

orders from India for 166 turbines, which are

based on our permanent magnet technology

and full-power converters, says Jukka-Pekka

Makinen, president and CEO, The Switch.

Its targeted customers in India are wind

turbine manufacturers and solar power system

integrators. The Switch is one of the leading

manufacturers of permanent magnet genera-

tors and full-power converters with power

capacity ranging from 700 KW to 6 MW.

The Indian renewable market exhibits

great growth potential with a government

that actively supports sustainable energy solu-

tions. Wind and solar power play a key role

in the countrys efforts to increase the share

of renewables in the overall energy mix. Cur-

rently, the governments wind power program



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Tata BP solar modules installed in one its projects

Indi is blessed tobe situted between84 N to 376N in the

northern heisphereof the erth. mostprts of the countrreceive sunlightlost throughoutthe er. With bout300 cler sunn dsin er, Indis solrpower reception is

bout 5000 trillionkWh/er

is the fastest growing sector of the overall

renewable energy program and it contributes

almost 75% of the grid connected renewable

energy, says Makinen.

In addition to the governments incentives,

he says, private investors have also shown

strong interest and support for the renewable

sectors potential and development.

The key driver behind the wind power sector

development has been the financial accounting

provision of accelerated depreciation of 80%

which has enabled large profit making compa-

nies, small investors and captive users to tap

the market. The government has recently set

up a generation based incentive of 50 paisa per

unit, which is a particularly welcome incentive

for independent power producers and foreign

direct investors, Makinen adds.

Another leading player in India, Tata BP

Solar (TBPS), a joint venture between Tata

Power Company and BP Solar, offers inno-

vative solar solutions that cater to the needs

of individual customers, large institutions as

well as communities.

The company also manufactures and dis-

tributes solar water heaters for the residential

and institutional customers.

While we continue to service our core

customers in the rural areas and industrial

segments, we have expanded our capabilities

to address the newly emerging market of large

commercial plants of megawatt scale connected

to the grid. We have already secured a large

number of mw-scale projects of 1-2 MW and 5

MW and more and we have a robust pipeline

for the next few years, says K Subramanya,

CEO, Tata BP Solar.

He says that the renewable energy has a

huge potential which needs to be tapped vig-

orously so that India can address the twin

challenges of meeting its energy security needs

and addressing the increasingly urgent ques-

tion of global warming and climate change.

As for solar, the potential is so large that

it is difficult to compute. India is blessed

to be situated between 84 N to 376N in

the northern hemisphere of the earth. Most

parts of the country receive sunlight almost

throughout the year. With about 300 clear

sunny days in a year, Indias solar power

reception is about 5000 trillion kWh/year

which is about 7000 times more than the

total electricity consumption of India,

he adds.

K Subrn,Ceo, t BP S

india inCluded in TOP 10 Clean energy inveStment liSt

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