Category: Latest News

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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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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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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Suzlon Energy Signs MoU With AP Govt For 3,000mw Power Projec

Suzlon Energy, has signed a MoU with the Andhra Pradesh government for setting up of capacities to generate about 3,000 mw of wind power till 2016. The proposal entails an investment of about Rs18,000 crore. Under the MoU, which was signed at the recent Partnership Summit in Hyderabad, the state government will facilitate Suzlon in […]

Suzlon Energy, has signed a MoU with the Andhra Pradesh government for setting up of capacities to generate about 3,000 mw of wind power till 2016. The proposal entails an investment of about Rs18,000 crore.

Under the MoU, which was signed at the recent Partnership Summit in Hyderabad, the state government will facilitate Suzlon in obtaining necessary permissions, registrations, approvals and clearances for the development of wind farms in the state.

Suzlon, in turn, will play the role of a developer and facilitate the channelisation of investments into the state from its customers investing in wind energy.

Tulsi Tanti, chairman, Suzlon Group, said, “This not only reinforces Andhra Pradesh’s position as one of India’s emerging markets in wind energy, but also illustrates their commitment to power a low-carbon economy by embracing progressive policies to power rapidly growing economy of the state.”

The agreement covers the development planned in the districts of Tallimadugula, Alankarayanipeta, Gandikota, Vajrakarur, Tirumalayapalli and other parts of Andhra Pradesh. Andhra Pradesh is a key emerging wind market in the country, with medium to low wind sites ideally suited to Suzlon’s new S9X suite of turbines.

The state government, according to sources, is keen on making use of the proposal to develop a model for setting up of renewable energy sources and focus on developing clusters of wind and solar farms.

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Suzlon planning new wind project in south Australia

Wind power company Suzlon Energy is planning a USD 1.3 Bn project in regional South Australia to power 225,000 homes a year. Suzlon Energy Australia said the USD 1.3 Bn wind farm will be built 20 kilometres South-West of Ardrossan, a small town on the East Coast of the Yorke Peninsula. It said up to […]

Wind Power ProjectWind power company Suzlon Energy is planning a USD 1.3 Bn project in regional South Australia to power 225,000 homes a year.

Suzlon Energy Australia said the USD 1.3 Bn wind farm will be built 20 kilometres South-West of Ardrossan, a small town on the East Coast of the Yorke Peninsula.

It said up to 180 turbines will generate 600 Mw of energy and deliver power to 225,000 homes in Adelaide via an undersea cable.

The project is expected to create 500 construction jobs and 50 ongoing jobs will be completed by the end of 2015, it said.

Suzlon Energy Australia Commercial Director Chris Judd said the company was approached by local landowners last year to develop the project.

“It’s basically been a landowner-developed project and this has been a dream of theirs for over seven years now, so the beauty of this project is that it does come with some seven years of homework and data, etc, behind it to help justify its economics,” he said.

Suzlon is also involved with wind farm projects at Hallett, North of Adelaide.

Premier Mike Rann said the Yorke Peninsula proposal will add to South Australia’s green credentials.

It was reported that Rann met with the company, the biggest wind turbine supplier in India and the world’s fifth-largest, during a trade trip to the South Asian nation earlier this month, where he stated that Suzlon had “really been helping us in generating wind power”.

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US Approves Blythe Solar Power Project

The biggest solar project that plans to provide power to more than 3,00,000 homes in southern California was permitted by the US interior department. The US$6 Bn, 1,000MW project, a joint venture of Solar Millennium AGand Ferrostaal AG, will be located on federal lands near Blythe, in the southern tip of California. “The Blythe Solar […]

The biggest solar project that plans to provide power to more than 3,00,000 homes in southern California was permitted by the US interior department.

approval for blythe solar energy project

The US$6 Bn, 1,000MW project, a joint venture of Solar Millennium AGand Ferrostaal AG, will be located on federal lands near Blythe, in the southern tip of California.

“The Blythe Solar Power Project is a major milestone in our nation’s renewable energy economy and shows that the United States intends to compete and lead in the technologies of the future,” said US interior secretary Ken Salazar.

This the 6th solar power project approved by the department in the last few weeks, which together have the potential to generate 2,800 MW of electricity, enough to power 2 million homes.

The project will consist of four concentrated solar electric generation facilities that would equal to the generation capacity of a large natural gas or coal-fired power plant.

Rows of curved mirrors up to 192m long will collect heat energy from the sun. The project will have thousands of mirrors lined up on the desert floor.

The project will be built in four units of 250MW each. The first 250MW should be up and running in 2013 and the second one in 2014.

Project’s operators expect approval from the Energy Department by the end of the year for a loan guarantee to cover 75 to 80% of the estimated US$3 Bn cost for the first units of the project.

The solar project, once fully operational, is expected to reduce carbon dioxide emissions by almost 1 MMTPA, which is equivalent to removing 1,45,000 cars off the highway.

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