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Aditya Birla Nuvo to sell 49% in renewables unit to Abraaj

Kumar Mangalam Birla-controlled Aditya Birla Nuvo Ltd will sell 49% stake in its wholly owned subsidiary Aditya Birla Renewables Ltd to a unit of international private equity firm Abraaj Group to build a renewable energy platform focused on developing solar power plants in India. The Abraaj Group is a leading private equity investor, managing approximately […]

Kumar Mangalam Birla-controlled Aditya Birla Nuvo Ltd will sell 49% stake in its wholly owned subsidiary Aditya Birla Renewables Ltd to a unit of international private equity firm Abraaj Group to build a renewable energy platform focused on developing solar power plants in India.

The Abraaj Group is a leading private equity investor, managing approximately $9 billion of funds and operating in the growth markets of Africa, Asia, Latin America, the Middle East, and Turkey.

Funds managed by the Abraaj Group have made over 140 investments across 10 sectors, including consumer, energy, financials, healthcare and utilities, its website said.

“As per the SSA, subject to the customary closing conditions and subject to the requisite approvals, Aditya Birla Nuvo and AEIF Mauritius SPV 1 Ltd will hold 51% and 49% of the paid up share capital respectively, in Aditya Birla Renewables,” Aditya Birla Nuvo said in the filing.

The deal comes at a time when the government is pursuing an ambitious target to generate 175,000 megawatts (MW) of green energy by 2022. Of the total 100,000 MW of solar power capacity planned, 20,000 MW will come from solar parks and 40,000 MW each from roof-top and distributed generation projects. The government plans to set up 25 such solar parks. India has around 300 days of sunshine per year.

In July, Japanese telecom and Internet company SoftBank Corp. said it will set up a 20 gigawatt (GW) solar power plant in Andhra Pradesh. SoftBank, along with Bharti Enterprises Ltd and Taiwan’s Foxconn Technology Co. Ltd, in June proposed to invest at least $20 billion in solar energy projects in India through a joint venture, SBG Cleantech.

The Gautam Adani-controlled Adani Group has also started acquiring land to set up a solar park in Tamil Nadu, tipped to be among the world’s largest, with an outlay of Rs4,536 crore.

In July, the board of Aditya Birla Nuvo had approved participation in the bidding process for upcoming central, state and private sector solar power projects.

The proposed entry into the power sector comes eight years after the group exited the power generation business when it sold two proposed 1,000 MW projects and liquidated another one soon after it had completed first-stage work, including land acquisition and environmental clearances.

India needs as much as $200 billion to meet its target of installing 100,000 MW of solar power capacity and 60,000 MW of wind power capacity by 2022.

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Cochin International Airport to be completely powered by Solar energy

According to the press release from the airport authority, Hon. Chief Minister Mr. Oommen Chandy inaugurated the 12 MWp solar power plant, on 18th August 2015, comprising of 46,150 solar panels laid across 45 acres near cargo complex. About 50,000 to 60,000 units of electricity will be consumed by the airport for all its operational […]

According to the press release from the airport authority, Hon. Chief Minister Mr. Oommen Chandy inaugurated the 12 MWp solar power plant, on 18th August 2015, comprising of 46,150 solar panels laid across 45 acres near cargo complex. About 50,000 to 60,000 units of electricity will be consumed by the airport for all its operational functions, and this will be provided by those 46150 solar panels that generate electricity.

This is not something new for the Cochin International Airport, as there was already a 100 kWp solar PV Plant installed on the roof top of the arrival terminal block, and it is there since March 2013. Later, 1 MWp solar PV power plant was placed partly on the roof top and partly on the ground in the Aircraft Maintenance Hangar facility within the Airport premises.

Given how these two plans generated electricity and were successful in providing what was expected, Cochin International Airport Limited (CIAL) decided to scale up and set up a 12MWp solar PV plant, and this aids in the green initiative. The installation is going to be done by M/s Bosch Ltd.

For the need at night hours when sunlight is not available, CIAL has worked out a plan with Kerela State electricity board, where a power banking module will provide the power to the module during the day time, and at night, it would be bought back by CIAL. With this plant, the annual generation of power would account to about 18 million units (which according to CIAL, would normally be enough to power up 10000 homes for one year).

CIAL also said that they would be looking at more alternatives, and given how many water bodies the state has, they will look to take advantage of that and install dam-based solar panels, or hydro power projects to generate electricity with the renewable sources.

This installation will finish by May 2016, and the Chennai International Airport will be fully solar-power operated by then.

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Renewable Energy Opportunity in India

As a part of India’s energy supply, Prime Minister Narendra Modi is focusing more on renewable energy. The focus is basically on solar projects which can be known from the 2014-15 budget declared by Finance minister Arun Jaitley. There is a plan to build 100,000 solar powered pumps and pumping stations. The plan also includes […]

As a part of India’s energy supply, Prime Minister Narendra Modi is focusing more on renewable energy. The focus is basically on solar projects which can be known from the 2014-15 budget declared by Finance minister Arun Jaitley. There is a plan to build 100,000 solar powered pumps and pumping stations. The plan also includes building of canal-top photovoltaic solar arrays. These plans are being supported by the elimination of import tariffs meant for manufacturing of wind turbines and solar panels. For supporting the usage of renewable energy, the levy on coal has been increased from Rs.50 to Rs.100.

These budget initiatives are appearing to be inadequate according to different groups. The budget has received harsh comments from these groups. Irrespective of the harsh criticism, Modi’s administration focuses on introducing renewable energy sources in India. As India is basically dependent on coal which is imported, more percentage of coal is used for electricity generation and the supply cannot fulfil the rest of the energy requirement. The illegal allocation of coal mining has also diminished the availability of energy source in India. The need can be better fulfilled with renewable energy.

The supply constraint and growing demand for renewable energy provides a strong penetration to developing countries like India. Though there exist other players like United States and European countries, India can gain from the competition too. The cost parity of the fossil fuels must stand closer with renewable energy in India though in United States, the fossil fuel stands at a low price because of the flood of supply. Maintaining cost parity between fossil fuel and renewable energy can be the result of handling India’s budget deficits.
The renewable energy can be distributed with more efficacies in comparison to electricity. Due to theft and poor wiring, the distribution of electricity has not reached millions of people. But the renewable sources are more reliable to reach those houses who have not received electricity yet. The aim to electrifying India’s villages has failed due to some of policies. Local units can provide better service than large networks which have to undergo different stages before transmitting electricity. The renewable energy can be transmitted through local units easily which can reach millions of houses established in remote India.

Modi’s administration is prioritizing the economic development of India. It has an aim to eradicate poverty and electrify all the houses that do not receive electricity. For this reason, Modi skipped the “2014 September Climate Summit”. New environment minister Prakash Javadekar believes that safety of environment and climate is more of the responsibility of developed countries not of developing countries like India where till today 20% of people do not receive electricity.

The electricity scarcity can be managed through the introduction of renewable energy. Unlike Germany and Spain, India must focus on the technical aspect of establishing renewable energy. With technical advancement, India must commercialize the renewable energy so that it can reach to every corner of India. By boosting research and development and establishing small scale projects, India can provide renewable energy to every house.

India must try to stay ahead of other countries in establishing low-cost manufacturing of renewable energy technologies. This can contribute greatly towards the Modi administration’s new “Make in India” campaign. India can provide low-cost labour and technology which can be great for establishing renewable energy too.

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India to respond to US WTO notice on domestic sourcing rules under National Solar Mission

India has said it will respond to the United States’ notice challenging the domestic sourcing requirement in its National Solar Mission in 10 days’ time as stipulated under the rules of the World Trade Organization. The US, on Wednesday, filed an official dispute against India at the WTO claiming that the domestic sourcing rules flouted […]

India has said it will respond to the United States’ notice challenging the domestic sourcing requirement in its National Solar Mission in 10 days’ time as stipulated under the rules of the World Trade Organization.

The US, on Wednesday, filed an official dispute against India at the WTO claiming that the domestic sourcing rules flouted global trade norms. It has asked for consultations with India on the matter.

“Our Mission in Geneva has been delivered a notice under Dispute Settlement Understanding that the US has sought a consultation in respect to domestic content policy of National Solar Mission. According to the laid-down procedure, India has to respond within 10 days. We have received the notice and will respond within the prescribed time period,” said Rajiv Kher, Additional Secretary, Commerce Department.

On the basis of the consultations that the US has with India, it will decide whether it wants to take the dispute further by asking for a dispute settlement panel to settle the issue.

India’s national solar program required solar energy producers to use Indian-manufactured solar cells and modules, which in fact put foreign solar products at a disadvantaged position. India has favoured its own solar products since Jan 11, 2010, when it launched national solar program. India also promises solar energy developers participating in the program that the government will buy a certain amount of solar power at a highly subsidized tariff rate, provided that they use Indian made solar equipment instead of imports.

Consultations are the first step in the WTO dispute settlement process. Under WTO rules, if the matter is not resolved through consultations within 60 days, the accuser may request the establishment of a WTO dispute settlement panel.

The US has now placed six complaints against India at the WTO, and while India has eight against America.

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IEA Report: Renewable Energy to See Huge Growth Over Next 5 Years

Renewable energy will be even more popular over the coming years, according to a new International Energy Agency report. Over the next five years, the report predicts a 40% increase in the generation of energy from renewable sources worldwide. If that comes to pass, then renewables would generate 1.5 times the amount of energy currently […]

Renewable energy will be even more popular over the coming years, according to a new International Energy Agency report.

Over the next five years, the report predicts a 40% increase in the generation of energy from renewable sources worldwide. If that comes to pass, then renewables would generate 1.5 times the amount of energy currently produced in the United States.

“Renewable energy is expanding rapidly as technologies mature, with deployment transitioning from support-driven markets to new and potentially more competitive segments in many countries,” IEA Executive Director Maria van der Hoeven said.

Of all the renewable energy sources, the IEA report predicts solar power to see some of the biggest increases. According to the U.S. Department of Energy, solar is the most abundant renewable energy resource worldwide.

Solar power already shows signs of unprecedented growth in the United States. The Wall Street Journal reported that twice as many solar panels will be installed this year as last year. Part of the reason for this expected growth is a decrease in the price of panels.

Solar energy is readily available regardless of location, as all 50 states have enough sunlight to generate power for between 850 to 1,200 houses, according to the Energy Department.

Additionally, the price of installing solar panels has fallen dramatically over the past two years, and this trend is expected to continue. The price of a solar panel on average dropped by about 50% over the past year, according to GTM Research.

Government tax credits help explain some of the drop, as federal incentives account now for about 30% of the price of a solar panel, according to the WSJ. In addition, some states offer additional tax credits to drive the cost down even further.

On top of it all, rising prices on fuels such as oil have renewed interest in solar power for diverse uses, including residential electricity and solar water heating. According to a Harris Interactive poll last year, more than half of respondents placed energy conservation as one of their concerns.

Solar is well positioned as an alternative to fossil fuels, as it is readily available and can provide both electricity and heat. Perhaps this is why the poll showed that more than 75% thought the benefits of solar power outweighed any potential risk.

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Japan approves renewable subsidies

Japan has approved incentives for renewable energy that could unleash billions of dollars in clean-energy investment and help the world’s third-biggest economy shift away from a reliance on nuclear power after the Fukushima disaster. Industry Minister Yukio Edano approved the introduction of feed-in tariffs (FIT), which means higher rates will be paid for renewable energy. […]

Japan has approved incentives for renewable energy that could unleash billions of dollars in clean-energy investment and help the world’s third-biggest economy shift away from a reliance on nuclear power after the Fukushima disaster.

Industry Minister Yukio Edano approved the introduction of feed-in tariffs (FIT), which means higher rates will be paid for renewable energy. The move could expand revenue from renewable generation and related equipment to more than $30 Bn by 2016, brokerage CLSA estimates.

The subsidies from July 1 are one of the few certainties in Japan’s energy landscape, where the government has gone back to the drawing board to write a power policy after the Fukushima radiation crisis, the world’s worst nuclear disaster since Chernobyl in 1986.

The push for renewables is aimed at cutting reliance on not only nuclear, but pricey oil and liquefied natural gas for energy needs.

The scheme requires Japanese utilities to buy electricity from renewable sources such as solar, wind and geothermal at pre-set premiums for up to 20 years. Costs will be passed on to consumers through higher bills.

Utilities will pay 42 yen (53 U.S. cents) per kilowatt hour (kwh) for solar-generated electricity, double the tariff offered in Germany and more than three times that paid in China.

Wind power will be subsidized at least 23.1 yen per kwh, compared with as low as 4.87 euro cents (6 U.S. cents) in Germany.

Subsidies have spurred explosive growth in renewable energy in countries such as Germany, which has nearly tripled its output in less than a decade.

Still, Japan’s aim to accelerate investment in safer, cleaner and self-sufficient energy is starting from a low base: renewable sources apart from large hydro-electric dams account for only 1% of power supply in Japan.

Nuclear power accounted for almost 30% of Japan’s electricity supply before an earthquake and tsunami on March 11 last year triggered the Fukushima disaster.

About 60% came from oil, coal and gas, but that share has risen to almost 90% as safety concerns led to all of Japan’s 50 reactors being shut. The rest of Japan’s electricity comes mostly from hydro.

The government estimates capacity from renewable energy will increase to 22,000 megawatts by the end of March 2013, up from 19,500 MW now, with 2,000 MW of that from solar panels.

But Japan has huge potential to generate renewable energy from the sun, wind and geothermal, analysts say.

CLSA Asia-Pacific predicts solar capacity will jump to about 19 gigawatts by 2016 from about 5 GW or less now, while wind capacity may reach 7.6 GW in four years.

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Indian Govt. Revised 2020 Renewable Energy Targets From 6 to 15%

India’s Union Minister of New and Renewable Energy has announced the increase of the country’s 2020 renewable energy targets, from 6 to 15%. At the Institute of International and European Affairs (IIEA), held in Ireland’s capital, Dublin, Farooq Abdullah additionally said that an action plan has been developed, which lays the ground for 30 GW […]

India’s Union Minister of New and Renewable Energy has announced the increase of the country’s 2020 renewable energy targets, from 6 to 15%.

At the Institute of International and European Affairs (IIEA), held in Ireland’s capital, Dublin, Farooq Abdullah additionally said that an action plan has been developed, which lays the ground for 30 GW of renewable energy generation by 2017. He said that renewables already account for 12% of India’s total installed energy capacity.

In terms of solar, a target of 20 GW of grid connected and two GW of off-grid has been set, under the Jawahar Lal Nehru National Solar Mission, as is already known. Currently, India is just shy of hitting an installed solar capacity of one GW.

Under India’s reverse bidding auction, which has attracted criticism, due to the low bids offered, Farooq Abdullah said that solar electricity prices have fallen from US$0.35/kWh to under $0.17/kWh in the last year. He added that approximately 1.1 million Indian households are already using solar lighting solutions.

Overall, continued the minister, wind accounts for the lion’s share of renewable energy in India, with a reported installed capacity of 17 GW. “Surplus biomass material could also potentially be used to generate about 20 GW of power,” he added.

Outlining the challenges facing the global renewable energy market – investment and technology – he said that India will need an investment of “at least” $50 billion over the next five years.

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REaction 2012 – Conference on renewable energy from July 26, 2012

With the cost of power generated using diesel at over Rs.50,000 crore every year for Indian industry and set to only go up, it is imperative to switch over to renewable energy sources. Seeking to convey this message, organisers of the upcoming ‘REaction 2012,’ a two-day conference on D2R (diesel to renewable), said use of […]

With the cost of power generated using diesel at over Rs.50,000 crore every year for Indian industry and set to only go up, it is imperative to switch over to renewable energy sources.

Seeking to convey this message, organisers of the upcoming ‘REaction 2012,’ a two-day conference on D2R (diesel to renewable), said use of the fuel for power generation remained a major concern for almost every industry. Besides the high cost, of over Rs.15 per kWh, diesel is dirty, non-renewable and its price is dependent on the volatile Middle East.

The conference, being organised by Energy Alternatives India (EAI) here from July 26, would create awareness about the renewable alternatives and showcase how solar PV (photovoltaic), solar thermal, biomass, organic waste, fuel cells and biofuels could partially or fully replace diesel.

A shift from diesel to renewable energy was happening but required a greater push, EAI Director Narasimhan Santhanam said. The participants would include experts from Indian and global renewable energy and clean technology sectors, technology solutions providers and banks, private equity companies and venture capital firms.

Editor of Panchabuta Vineeth Vijayaraghavan said the shift from diesel was not at the desired pace more on account of the mindset than technical challenges. Indo-French Chamber of Commerce & Industry Regional Director Merlin Sarah Simon said the chamber was partnering the EAI for the event.

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China to spend US$27 Bn on energy conservation and renewables

China’s central government plans to spend US$27 Bn this year to promote energy conservation, emission reductions and renewable energy, the Ministry of Finance said. The ministry said China plans to promote more use of energy-saving products and low or no-emission power generation such as solar and wind. It also wants to accelerate the development of […]

China’s central government plans to spend US$27 Bn this year to promote energy conservation, emission reductions and renewable energy, the Ministry of Finance said.

The ministry said China plans to promote more use of energy-saving products and low or no-emission power generation such as solar and wind. It also wants to accelerate the development of renewable energy, as well as energy-saving technologies, such as electric and hybrid cars.

China is the world’s biggest emitter of carbon dioxide (CO2), followed by the United States.

A report by the International Energy Agency (IEA) on Thursday said China spurred a jump in global CO2 emissions to their highest ever recorded level in 2011, offsetting falls in the United States and Europe.

However, its CO2 emissions per unit of GDP, or its carbon intensity, fell by 15% between 2005 and 2011, the IEA said, suggesting the world’s second-largest economy was finding less carbon-consuming ways to fuel growth.

Longer term, China is targeting cuts to its 2020 greenhouse gas emissions by 40-45% compared with 2003 levels and aims to boost its use of renewable energy to 15% of overall energy consumption.

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Renewable energy investments increased 5% to $260bn in 2011

A report from Bloomberg New Energy Finance said that a sluggish economy did not hamper investments in new clean energy projects as they increased 5% to $260Bn in 2011, a record high. U.S. investments in renewable energy moved ahead of China for the first time since 2008, according to the latest data. U.S. projects saw […]

A report from Bloomberg New Energy Finance said that a sluggish economy did not hamper investments in new clean energy projects as they increased 5% to $260Bn in 2011, a record high.

U.S. investments in renewable energy moved ahead of China for the first time since 2008, according to the latest data. U.S. projects saw an investment of $55.9Bn in 2011, up 33% from 2010. China’s investments increased 1% to $47.4Bn.

“The news that the US jumped back into the lead in clean energy investment last year will reassure those who worried that it was falling behind other countries,” said Michael Liebreich, chief executive of Bloomberg New Energy Finance. “However before anyone in Washington celebrates too much, the US figure was achieved thanks in large part to support initiatives such as the federal loan guarantee program and a Treasury grant program which have now expired.”

In 2011, investments in solar technology increased 36% to $136.6Bn, nearly double the $74.9Bn investment in wind power, which was down 17% from 2010. Biomass and waste-to-energy investments decreased 18% to $10.8Bn, geothermal dropped from $3.2Bn to $2.8Bn, small hydro decreased 25% to $3Bn and investments in marine technology were steady at $0.3Bn.

“The performance of solar is even more remarkable when you consider that the price of photovoltaic modules fell by close to 50% during 2011, and now stands 75% lower than three years ago, in mid-2008,” Liebreich said. “The cost of PV technology has fallen, but the volume of PV sold has increased by a much greater factor as it approached competitiveness with other sources of power.”

The previous year also saw the one trillionth dollar invested globally in renewables since 2004. The largest single type of investment was the asset finance of utility-scale renewable energy projects, which increased from a revised $138.3Bn in 2010 to $145.6Bn in 2011.

Venture capital and private equity investment saw an increase of 4% in 2011 to $8.9Bn.

To read the full report, Renewable Investments 2011.

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