Renjini Liza varghese

 India is far behind in comparison to other countries in energy efficiency, what role electrical products play in this?
Energy consumption is higher in countries like Russia, China and India. It can be attributed to the fast phased growth rate registering in these countries.  While talking about energy efficiency, it should be off generation, distribution and at the consumption level as well. Transmission losses in India stands at 16-17 per cent which is higher.  Top line technology incorporated in advanced model equipment gives the most efficient output.

Could you please elaborate on the technology side?
IGBT or insulated-gate bipolar transistor is a three-terminal power semiconductor device, noted for high efficiency and fast switching. It switches electric power in many modern appliances: electric cars, variable speed refrigerators, air-conditioners, and even stereo systems with digital amplifiers. It helps to lower the harmonic distortions and hence provides superior power quality.  It also enables higher efficiency of equipments.  To give you an example, Eaton’s 9395 is the best example. These products comes with 0.99 energy saving levels which are very high in efficiency levels.

How has unique product designing helped to improve efficiency of Eaton Products?
Eaton’s product focus on efficiency, reliability and safety – drives innovation in materials, technologies and design principles that helps improve efficiency.  Some key examples of this are evident from Eaton’s industry leading 9395 UPS platform: a) Sustainability is achieved with innovative UPS design and high efficiency rating which significantly lower the total cost of ownership. Small footprint and lightweight reduce costs of transportation and installation. b) Strong power performance with active power factor control (PFC) provides unbeatable 0.99 input power factor and minimises ITHD. This greatly reduces interference with other upstream equipment and enhances 9395 UPS compatibility with generators. c) Highest availability and reliability is achieved with Powerware HotSync paralleling technology that enables 9395 UPS to be paralleled for both redundancy and capacity. Advanced paralleling options also ensure your UPS system can easily adapt to increasing power requirements.

Where do you see India lacking in curtailing the losses in the transmission segment?
India has a matured distribution system, however, requires more intelligent load control system, smart meters and grid technology. For a power hungry country like India, theft remains a major concern. It is a price sensitive one as well.  Adaptation of cutting edge technologies will enhance to bring down the losses.  

Electrical sector has grownhigher in last few years with consolidation? How do you see the market going forward?
Electrical segment continue to grow as more and more geographies are being electrified. In India, there is always a demand supply gap.  So you see the market growing for UPS, generators etc.  Addition of more generation capacity also means the demand for electrical equipments on the rise.

How much did it help the company by setting up manufacturing units in India?
Every product comes with a premium attached to it. Localisation helped the company to rationalise its operations in terms of saving time, reducing logistical hassles and above all brought in a lot of flexibility.

Compare India and China market/ Asia market with special thrust on Japan?
Both in China and India we see the demand on the upper curve. I would say China is rather ahead in generation capacity, and in transmission and distribution. The magnitude of deployment in China is non-comparable. However, India is catching up fast, may be in another two years time it will be on the same level.

Eaton’s India plans?
The company set a sales traget of  US $500 million by 2015 in India.  We are putting inplace different initiatives to achieve the set target, pne of it is by setting up a Greenfield manufacturing unit.  The company is looking at growing both organically and inorganically. We see a lot of opportunity to grow here.  We give a lot of thrust to R&D, the aim is to develop the next generation of break- through technologies in the electrical segment.

Vaclav Bartuska, Ambassador at large for energy security for Czech Republic

Renjini Liza Varghese

Measuring 9 on Richter scale, earthquakes which devastated Japan and triggered a nuclear disaster has raised question about the safety of adopting nuclear energy. However, Vaclav Bartuska, Ambassador at large for energy security for Czech Republic, points out that little has changed post Japan nuclear incident. Excerpts

Q: What, according to you, is the major change that happened post Fukushima nuclear disaster?
A: Nothing has really changed. Countries, which are pro-nuclear are going ahead with their programmes and those who were against nuclear programmes continue with their stands. The real question is how the democratic countries will look at the nuclear plans two years from now.  It depends a great deal on how fast Japan able to contain Fukushima. It will also address what, how and why behind the disaster.

Q:  Many countries are looking at increasing their dependency on nuclear to meet their power requirements. Are the uranium deposits sufficient to meet the increasing demand?�
A: Kazakhstan, Australia, Canada, Czech Republic are the major suppliers now, and it seems that enough supply is available now. China is planning for 200 reactors in next 20 years; India also has in significant number. If the numbers are doubled, then there will be a problem. But I personally don’t believe those many numbers will be built.
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Q:  Post Japan, some countries have announced a slow-down in nuclear programmes. Your comment.
 A: It really depends on how Japan will be controlled. It is not yet under control. Whether it is human error or miscalculation of the safety measures is not known yet. So we need to wait for the Japan research/ enquiry report to find out what and where it went wrong. The problem will be for democratic countries where there should be consultation with people will face a tough time explaining why keen on going nuclear. Then there could be a slowdown.  

Q:  A country like India has more renewable energy potential. Do you see a need for this country to move to nuclear for power generation?
A: I don’t advice any country other than mine. But I will add here yes, India has a higher potential in solar. Not sure about bio-fuel because of the water problem. However India cannot ignore nuclear power, may be as a backup for solar and wind power. India still has a 30 per cent population not having access to electricity.

Q:  Do you see a paradigm shift in the security standards while setting up nuclear plants after the Japan incident?
A: The responses will be different from country to country. For countries like Japan, US and Korea, which are highly prone to earthquakes, have a higher safety measures in place. My country Czech, which is not under the quake threat zone, the safety standards are different.

Q:  Has your country revisited the nuclear programmes post Fukushima?
A: Czech is a 75 per cent pro-nuclear before the Japan incident and still continues. Yes there is a 10 per cent slowing but continue to be 65 per cent pro –nuclear. If Japan goes on in the present condition for half a year or one year or rather the bad news keeps coming, then there might be a change. No one can predict what will happens a year from now. 

Q:  What is the role of technology and is there any proven technology available in the world which countries like India can adapt?
A: We are more and more dependent on technologies, unless people understand. Fewer and fewer people understand and that is the biggest dilemma of evolving technologies. Do we understand the technology of mobile or computer? No, still we use it. We adopt technologies with out understanding it fully.

Q:  Where do you see the more demand coming from, India or China?
A: As of now, it is China as China has got more nuclear projects in the implementation stage. India is not far behind. We see it coming closer to China in the current decade.

Brad Gammons, VP sales and solutions, IBM’s Global Energy & Utilities Industry

Renjini Liza Varghese

A country like India, which has higher T&D losses, is looking at implementing smart grid technologies. Could you please explain the smart grid?

Smart grid technology offers both the consumer and the energy utility many benefits. Tens of billions of dollars in operating costs can be saved by improving efficiencies in the transmission and distribution systems which can dramatically reduce the need to build more power plants and transmission lines. A next-gen grid that anticipates, detects, and responds to problems quickly could reduce wide-area outages to near zero. While price increases are likely, they could come more gradually than with the old system. By integrating clean renewable energy sources like solar and wind with the grid, we can shrink our carbon footprint and reduce dependency on foreign energy sources. For consumers, the benefits could be substantial, as well. If their energy providers are more efficient, their energy bills will come at a lower rate.

India is far behind its peers in adapting to newer technologies. Where is India poised on the smart grid transformation journey?
Electric utilities and policy makers worldwide, including India, are accelerating the transformation of electricity networks and in India, pilot implementations are already on the immediate horizon. The fact is smart grid is no longer just a concept; it’s a necessity.  To meet the needs of the millions of India citizens, who experience inadequate and unreliable access to energy services, India must do something to transform its energy services in a mannet that is economically viable, sustainable, affordable and efficient.

What are the technological transformation happening in smart grid in the western countries who lead the smart grid revolution?
Smart grid success stories around the world all have one thing in common – collaboration. Each successful utility has multiple stakeholders across the energy value chain involved in areas such as generation, transmission, distribution, retail, consumption, conservation, standards, regulation, and so on.  In each of the cases where we see successful smart grid work, there is always deep collaboration between multiple parties – industry, academia, and the public sector.

a) In Australia, the “Smart Grid, Smart City” project, Australia’s first commercial scale-smart grid, announced at the end of last year  by the Australian Prime Minister, is a consortium of entities working together to develop a more efficient, robust, and consumer-friendly electricity network – by developing, among other capabilities, distributed generation, smart metering, and demand-management solutions.

b) In the United State, Pacific Northwest National Laboratory project on the Olympic Peninsula in the Northwest, has implemented a virtual market place and automated controls, which adjusts appliances and thermostats based on comfort preferences and price sensitivity settings by homeowners – every five minutes. This allows consumers to choose to automatically curtail energy use in response to higher price signals when electricity delivery is constrained.  This led to 10 per cent  lower electricity bills and to a 15 per cent reduction in peak demand.  The first project was so successful, that it is being expanded in scope to span five different U.S. states and 11 utilities.

c) And in Denmark, the EDISON project is focused on developing an intelligent infrastructure to optimize charging of electric vehicles via renewable energy. This will eventually help the country to move from 20 per cent wind energy – already the highest percentage in the world — to 80 per cent over the course of one generation.

d)In China, Shanghai Power, part of the largest utility in the world, State Grid Corporation of China, has implemented a very innovative solution called the “Integrated Distribution Outage Planner”,  IDOP, to automate their business processes to manage maintenance – which is aimed at minimizing outages and, as a result, saving over US $5 million each month.

In technology front, what is in the offing for smart grids from IBM?
IBM experts are working with utility companies globally to add a layer of digital intelligence to their grids. These smart grids use sensors, smart meters, digital controls and analytic tools to automate, monitor and control the flow of energy across operations – from power plant to plug. A power company can optimise grid performance, prevent outages, restore outages faster and allow consumers to manage energy right down to the individual networked appliance. “Smart” grids can incorporate new sustainable sources such as wind and solar generation, and interact locally with distributed power sources, or plug-in electric vehicles. IBM’s Intelligent Utility Network solutions help leading utility companies fundamentally transform the way power is generated, distributed and used. From network revitalisation, to asset management, to plant operations, IBM offers smarter solutions, practices and technology that help utilities transform into new symbols of power in the 21st century.

Equal stress is given to T&D in India off late. How long will it take for India to be at par in smart grids?
Every country is at a different point in its journey towards building smarter energy services.  As India’s economy and population continue to grow, the government is focusing on increasing the country’s electrical generation capacity and modernizing the power grid. Programs like “Power for all by 2012”, Ultra Mega Power Plants (UMPPs), Restructured Accelerated Power Development & Reforms Program (R-APDRP), Rajiv Gandhi Grameen Vidyutkaran Yojana (RGGVY), Jawaharlal Nehru National Solar Mission etc are important initiatives that are accelerating the transformation of the power sector in India. In May 2010 the Ministry of Power launched India Smart Grid Forum (ISGF) – a public private partnership for coordinated development and faster adoption of smart grid technologies in India. The government has decided to make Adviser to the Prime Minister on Public Information Infrastructure and Innovation Dr. Sam Pitroda the head of the “India Smart Grid Task Force.” The task force was set up to evolve a road map for development and deployment of smart and intelligent grid technologies with the aim of making India a world leader in this realm.

Elaborate on IBM’s initiatives and projects in smart grids? Elaborate on the recent collaboration with Indian government and institutes like IIT’s?
IBM offers solutions for the optimization of the entire energy value chain – power generation, transmission, distribution and renewables; and we are actively engaged with forward looking utilities in all these segments of the industry. Right now IBM is involved in more than 150 Smart Grid projects across the globe.  IBM recently signed a unique collaboration with Indian Institute of Technology (IIT) Madras and IIT Kharagpur with the goal of developing systems that would help power grids become more efficient and resilient. The systems will analyze power grid data for predictive insights and will also help optimize grid utilization to enhance productivity and reduce power waste. The project is part of IBM’s Open Collaborative Research (OCR) program, an initiative to foster innovation through university-industry research collaboration.

Majority of Indian villages still does not have access to grid connected power. Do you see smart grids address this problem?�
Smart grid technologies can help address the challenges India has in ensuring reliable access to all citizens. Smart grid technologies allow energy providers to manage the power distribution more efficiently, to forecast demand and supply, integrate renewable sources into the grid and reduce costs for managing assets as well as giving. Leveraging the technologies now available and the experiences of others can even put India in a position to leap-frog other nations around the world.

There are Individual captive solar and wind energy producers in India who is looking at connecting to the grid. Explain the role of smart grid in this context?
Wind and solar power are amongst the cleanest and most abundant forms of renewable energy. In fact, wind power is the fastest growing source of electricity in the world. With an annual growth rate of 39 per cent, this is the largest increase in capacity on record — helped significantly by economic stimulus funding for green energy. Now is the time to make both our existing and new wind farms smarter. IBM has created a portfolio of solutions that include software, field technologies, analytics and short-range weather forecasting to help wind farm operators optimize the performance of turbines, better predict and balance power output and commercialize wind output as a trading commodity. While IBM has been working with key industry stakeholders to establish common standards; about 25 percent of manufacturers have done so, IBM solutions work across all 14 operating systems.

What according to you are the other areas, India should look at improving to have more energy efficiency?
Transformation of the energy industry will need strong collaboration across all the stakeholders – both government and private. IBM is promoting the adoption of smart grids around the world by participating in organizations that are defining the future of the industry, and driving standards and emerging technologies. IBM is one of the founding members of GridWise Alliance – a public private partnership promoted by US Department of Energy. Also, in 2007 IBM formed the Global Intelligent Utility Network Coalition. Together, this coalition of utility companies—which includes NDPL from India—collectively serves 115 million energy consumers globally, and not only works to implement smart grid in their respective markets, but also actively promotes smart grid development across the globe.

In an off-grid scenario, what are the smart equipments which will ensure the maximum energy utilization?
While the industry seems to have been moving pretty rapidly over last few years, we are only at the beginning of the modernization of the electric system. Although the industry has made positive strides forward, we need to do better job of evolving the discussion around – what smart grid is and why it’s important. Energy transformation is as important as healthcare, and the world must collaborate to create a smarter, sustainable planet.

What is your vision for the company?

What measures company is taking to reduce its carbon footprint?
Reduction of carbon footprint in power generation is under progress. We have developed ultra super critical system, which will reduce emission by 6 per cent. We have a target of generating 30 per cent of our production from non thermal sources by the year 2030. The Centre for Power Efficiency & Environmental Protection is engaged in mitigating of green house gas emission. NTPC has avoided 28 million tonnes of Co2 in the last 14 years, while in the year 2009-10 alone 2.72 million tonnes of Co2 has been avoided.  We have also created a greener wealth of 18.80 million trees.

Has company’s plan to tie up with NPCIL for entering in to nuclear power generation been officiated?
Yes we have an understanding with NPCIL. We are setting up a plant In Haryana, the location has been identified by the Haryana government. The proposed JV company will have 51 per cent equity participation of NPCIL and rest 49 per cent will be held by NTPC. We have also requested government for independent permission to set up nuclear power plants. After 123 agreement we can also go for technology transfer permission. 

NTPC was looking to buy coal mines abroad, has those plans been finalised?
Our board took a decision to foray into acquiring coal mines abroad. We have a consumption requirement of about 12 million tonnes, we have requested Coal India to ensure supply of the same. There are some issues still needs to be ironed out. We are looking at Indonesia and New South Wales, Australia. Have already received two bore samples from Australia, but the problem is high moisture and high iron content. Currently we are importing 4 million tones of coal on our own.

What were the reasons for scaling down the target for NTPC in 11th plan from 17,760 Mw to 13,750 Mw? Does this affect the overall plan of NTPC to become a 75,000 Mw company by the 12th plan?
This figure of 17,760 Mw or 13750 Mw is not true. The target for 11th Plan was 9,200 Mw, set up in consultation with Planning Commission and power ministry. I am not only hopeful but sure that we will definitely achieve the target. I really can’t comment on what happened last year, but my fiscal target of generating 3,000 Mw will be achieved & also the target of 39,140 Mw generation by the end of 11th Plan will be achieved.

Is NTPC having a re look at its strategy of entering in to hydro generation after Utrakhand project setback?
First of all, I would clear, that we haven’t received official communication about Loahariaganj Pala Hydro project (Utrakhand), though it has been under suspension on the advice of the centre government. Ganga River Basin Authority has cleared the project. There is no question of re looking into strategy, because we have got the approval only after the statutory clearance.

There were media reports about NTPC looking for out of court settlement in its gas dispute case with RIL, Your comment.
We are on a very strong wicket; there is no question of out of court settlement for Kawas Gandhar project. Though, we have asked the government for firm gas allocation of 22 mmcmd. We can use the gas for Kawas Gandhar projects also; this won’t weaken our case with RIL. I had a word with Solicitor General in this regard.

Is NTPC looking to import LNG for its gas based power plants?  Has any long term deal for LNG import been finalised?
We are planning to import LNG. No deals have been finalised yet. Had talks with Qatar, they are ready to supply gas in return for equity in the project. We are even ready for this and further talks are on.

Gayatri Ramanathan

Tell us about your Edmonton and Mississippi projects.

Enerkem’s Edmonton and Mississippi waste-to-bio-fuels projects are very similar in scope, both using municipal solid waste (MSW) to produce second-generation ethanol. These projects will be located at regional landfill sites and will produce 36 million litres of advanced fuel. Construction of the Edmonton bio-fuels facility has started, with an official groundbreaking ceremony that took place in August 2010. The Mississippi project will begin construction early 2011.

What is the cost of putting up such a plant from scratch?

The estimated cost for building an Enerkem project like our Missisippi and Edmonton waste-to-bio-fuel facilities is approximately CAD 80 million. 

What is the size of the North American markets for such bio-fuels?

The North American market is driven by government mandates that ensure that gasoline contains a minimum volume of renewable fuel. This is called a Renewable Fuel Standard in Canada and the United States. In the US, the renewable fuel standard calls for the production of approximately 36 billion litres. This amount increases to 136 billion litres, which is a market potential of approximately CAD 70 billion for 2022. In Canada, the renewable fuels mandate requires the production of approximately two billion litres of ethanol, for a five per cent blend.       

Enerkem’s technology also answers the need for a sustainable alternative to land-filling. This solution is needed in North America, where, in the US alone, an estimated total of 413 million tonnes of MSW was generated in 2006, of which approximately 64 per cent would be land-filled – not recycled, composted or combusted for electricity (BioCycle, 2006) . In Canada, an estimated 35 million tonnes of MSW was generated in 2006, with only 22 per cent of this being recycled.   

What is the scope for such projects in emerging economies such as India which use a lot of biomass and have an electricity and fuel shortage. What is the scope for using such a project in rural electrification projects or distributed generation projects?     

Enerkem’s proprietary clean technology can be implemented in rural and urban regions. In using waste and residual biomass, Enerkem’s projects help reduce land-filling, while producing clean energy, such as electricity and fuels. 

I believe the technology is feedstock-agnostic. Does it mean that it can use feed stocks such as sugarcane waste or other agri-waste?

Enerkem’s technology is feedstock-flexible. The company’s primary feedstock is urban waste – garbage. However, it can use a wide-range of carbon-rich waste biomass, such as forest and agricultural residues (including sugarcane waste).

What is the saving in terms of fossil fuel usage from putting up a such a plant?

A typical Enerkem facility will produce enough bio-fuels to fuel over 400,000 cars per year running on a five per cent ethanol blend. A third-party life-cycle analysis concluded that in replacing a portion of fossil fuels and by reducing waste land-filling, greenhouse gas emissions are reduced by approximately 80 per cent.

Typically how many jobs would such a plant generate?

An Enerkem plant typically creates at least 50 permanent jobs as well as over 100 additional jobs during the construction phase.

What are benefits of using a thermo-chemical process Vs using a biological process? What would be a better option for India?    

There are two main advantages to using a thermo-chemical process, instead of a biological process. Firstly, thermo-chemical technologies have the ability to use a wide variety of feedstock, including heterogeneous biomass, such as garbage. Secondly, this process can produce electricity as well as bio-fuels. Therefore, a thermo-chemical process provides more opportunities for India, in terms of project development.

Luc Resteigne vice president nuclear, Tractebel

Luc Resteigne, Tractebel’s vice president nuclear on the challenges faced by the Indian nuclear power sector

As project consultants, what issues and challenges do you foresee in the Indian nuclear power sector?

The issues and challenges from a project consultant’s perspective are as follows:

Reliable engineering partner (for varied technologies), local vendors, sub contractors; strategic alliances with clear responsibility and risk distribution between alliance partners

• Critical manpower for project execution / operations for Nuclear power developer / EPC contractor/PMC consultant
• Project management and QA/QC organization (in-house or outsourcing), training of existing manpower in the latest PM tools and technology / PDMS  / piping softwares, etc.
• Sustainable fuel linkage and associated logistics, fuel pricing mechanism
• Environment and safety management
• Availability of good construction contractors
• Timely project implementation
• Land acquisition
• Management and disposal of radioactive material
• Adequate and timely funding
• Suitable policy interventions
• Manufacturing readiness of major vendors for forging components, equipment and capacity build up of workshops for future growth
• Clear and efficient permits and licensing procedures

Do you think that current targets are achievable given the constraints in technology imports, and other project management constraints, especially on the human resources front?

India has a plan to increase nuclear capacity from the present 4 Gw (2010) - 20Gw (2020) – 63 Gw (2032). These targets are ambitious and challenging, however achievable, subject to adequate and timely mitigation of points mentioned above.

How will the Indian nuclear power generation sector be impacted by the civil nuclear bill? How will it impact costs? What will be the long term impact on the growth of a private sector in nuclear power in India?

Quite difficult to assess at this point in time. The reaction is quite mixed at the present moment. The Indian government has made a decision with due considerations to past events like the Bhopal disaster. However, their decision is in variance to existing practices. We will have to wait and watch the reactions from the industry and contractors. At least, we now have a basis on which the concerned entities can assess associated risks and make requisite business decisions.

The Indian Industry feels that with suppliers liability included in the bill, there will be no incentive for foreign suppliers to indigenise equipment and cost of the nuclear power equipment will remain high? Do you agree with this view?

This view is not entirely correct; incentives shall be available to foreign suppliers who set up manufacturing facilities in India. The incentives in all forms, i.e., fiscal, capex, tax, etc., shall be attractive to encourage foreign suppliers to indigenise equipment meeting international and local standard requirements. The cost of equipment shall not be high as all respective major technology suppliers have committed to NPCIL during conclusion of MOU and specific agreement to have local partners to support localisation of components and equipment. Foreign players are in advanced stage of implementing localisation of plant and equipment, e.g., L&T, Bharat Forge, BHEL, etc. Hence, on conclusions the cost of indigenous equipment shall come down.

Osama Saleh GAFI chairman

We have many success stories in renewables

Osama Saleh, chairman of Egypt’s General Authority for Investment on the renewable energy sector investment potential that Egypt offers entrepreneurs

Makarand Gadgil

In which segments of renewable energy do you expect investment from Indian entrepreneurs?

Egypt is seeking to attract leaders from the renewable energy sector to invest in Egypt. According  to the Renewables 2010, a global status report for 2010, India was ranked the fifth worldwide in total existing wind power capacity and is rapidly expanding many forms of rural renewable such as biogas and solar PV. With India’s commitments to renewable energy, Egypt wishes to work closely with the Indian government and entrepreneurs to harness Egypt’s potential in the renewable energy sector. There are plenty of opportunities for Indian entrepreneurs to invest in various solar and wind energy sectors.
In the solar sector, Indian entrepreneurs can invest in projects like the 100 Mw Kom Ombo Solar PV project located in southern Egypt near the Aswan high dam or the 30 Mw CSP project in Marsa Alam city. Another project Egypt is planning is in Upper Egypt, the Future solar energy project, which aims at creating a sustainable supply of electricity for Europe, the Middle East and North Africa. Egypt aims to construct the first green industrial park in this zone. It will require all participating companies to be environmentally-friendly, thus making Egypt eligible for carbon credits.

In wind energy, the Gulf of Zayt 120 Mw private sector wind farm is located 400km south of Cairo. The government allocated more than 7,600 sq km of desert land appropriate for future wind projects in Gulf of Suez at east and west of the Nile, and this was based on the results of the Egypt wind atlas. The project started in April 2010. Upper Egypt (Future projects): the Egyptian government has allocated land in the area of Upper Egypt at governorates of Beni Suef, Minya, and Assuit with total of 6,418 km.

I would like to highlight some success stories of  from renewable sector in Egypt which will give confidence to Indian investors like Zafarana 425 Mw wind Farm: this wind farm was implemented in several stages (60, 80, 85, 80, 120MW) starting in 2001, through the governmental cooperation  with Germany, Denmark, Spain, and Japan. The total production reached about 941 Gw during the fiscal year 2008-2009, saving nearly 203 thousand tons of oil equivalents and reducing the emission of approximately 513 thousand tons of carbon dioxide.

What advantages does Egypt offer over other countries in the region?

The high wind speed in the Gulf of Suez which is comparable to North West Europe. With Egypt producing almost 57 per cent of the region’s total wind energy, it has already become the leading producer, ahead of Morocco, Iran and Tunisia. Furthermore, the Suez Canal area has one of the highest consistent wind speeds in the world at 10 meters per second. Other important areas include the Western and Eastern deserts, in addition to the Red Sea coast along the Gulf of Aqaba. The solar atlas was issued in 1991, clearly highlights the fact that Egypt as one of the sun belt countries which is endowed with high intensity of direct solar radiation ranging between 1970 – 2600 kwh / m2 / year from North to South. The sunshine duration ranges from 9–11 hours with few cloudy days all over the year. The high intensity of direct solar radiation (2,000- 2,600 KWh/m2) in Egypt shows high potential for solar energy development, especially in Upper Egypt.

Apart from these natural advantages, Egypt offers many policy and fiscal initiatives which makes Egypt an attractive investment destination: all land for the projects is in possession of New and Renewable Energy Agency( NERA),  NERA has also carried detailed studies in association with international consultants of the environmental impact on the projects including bird migration.  Besides this, long term power purchase agreement for 20 to 25 years are signed which are guaranteed by the Egyptian government. Egypt also offers incentives like no import duty on equipment and portion of the tariff is paid to developer in foreign currency.

Are you looking at investment in Egypt’s Exploration and Production Sector (E&P) sector from Indian companies like ONGC, RIL, and Essar?

The petrochemicals sector represents about 12 per cent of Egypt’s total industrial production and is worth around US $7 billion annually, but we are expecting the sector to grow more.

What is the total quantum of investment Egypt is looking at from Indian entrepreneurs?

Despite the financial crisis Egypt secured US $8.1 billion as FDI inflows in 2008-09; in 2007-08 Egypt had secured US $13.2 billion. There are nearly 293 Indian firms operating in Egypt with a combined capital of 586 million Egyptian pounds. As many as 157 Indian companies have established themselves in Egypt in the past five years. Egypt offers a good economic climate for investing and in Egypt prices remain spectacularly low. Indian companies operating in Egypt in chemical and metal industries, communications and information technology and car components have expressed their interest in increasing investments in the country.

Gloria Pina

 Gayatri Ramanathan 

How is Latin America and the Caribbean region’s current energy situation; which countries face acute energy shortages and which ones are relatively better off; what factors affect the energy situation in each of these countries?

The Latin America and the Caribbean Region has been and continues to be challenging and promising at the same time: though blessed with substantial sources of energy unevenly distributed. Major oil reserves in Venezuela; hydro and bio-fuels in Brazil and huge amount of gas reserves in Venezuela, Bolivia, Peru and Trinidad & Tobago, these have not been sufficient to propel a sustainable and harmonious economic and social development amongst the countries of the region.

The region has an oil exporter and hydro energy generator profile. Although it seems contradictory, in many Latin American countries, a significant share of the population still does not have access to adequate supply of energy. Approximately, 14 per cent of the total population in Latin America does not have access to electricity.

Chile is one of the most economically developed countries of the region and is at the same time, one of the countries with greater constraints on energy resources, making it highly dependent on imports. In 2004, Argentina cut its natural gas exports to Chile as a result of a domestic energy crisis. Since then, Argentine natural gas exports to Chile have fluctuated considerably, impacting its economic activity and forcing the government to reconsider its energy options. Chile is now focusing on diversifying both its energy suppliers and supplies. The Chilean government and private firms began developing liquefied natural gas (LNG) terminals in 2006. The first LNG terminal began operations in 2009 and another is expected to come online this year.

Currently, Brazil is the largest methanol producer, while Trinidad & Tobago is major LNG exporter. In the case of gas, the region has huge reserves but also has a limited potential due to political risk present in some producing countries. In some countries, nationalism and political leadership against open market prevents private, particularly foreign investment.

Is there an existing roadmap to move towards a lower carbon growth path or even a broad agreement on how to move towards a more sustainable energy growth path?

Compared to others, in the Latin America and the Caribbean region efforts to implement technologies for CO2 capture and storage (CCS) can be described as very shy. Globally, the total number of active or planned projects does not include any from this region. Factors affecting: Government involvement and lack of funding. As of yet, there is no commitment, or a sense of urgency.

Energy Equity has become a popular phrase. Do you see it happening in Latin America in the foreseeable future; what factors in your view hinder its achievement currently and how can they be changed?

According to the World Energy Council, the definition of energy sustainability implies three fundamental dimensions: energy security, social equity and environmental impact mitigation. The social equity concerns the accessibility and affordability of energy supply to the people.

Population growth and economic development could double the energy need in the decades to come. Even though the energy mix will gradually change in the near future, fossil fuels will continue to dominate the mix. Some technologies like CCS could be an excellent way to mitigate CO2 emissions. For that government support is essential. According to the International Energy Agency, governments, industry and public stakeholders must act rapidly to demonstrate CCS at scale around the world.

What is your expectation from the Cancun climate summit later this year?

I am afraid that my expectations are very much in line with the official position of developing countries, particularly the BRIC countries, which have expressed doubts about the results that could throw the Cancun Summit in December 2010. After what has become known as the failure of Copenhagen last December, not producing a clear commitment by the Annexe I countries, there seems to be a general consensus that not much progress will be achieved in Cancun: A Kyoto replacement treaty is not likely to be signed at Cancun.

But we can always expect that within the two weeks of discussions, some progress could take place on agreements relating to the available technologies (CCS) whose application is almost essential, in the near term, as well as the managing of the Copenhagen Green Fund, and major investments needed to achieve global climate stabilization proposed in Copenhagen (preventing global temperatures from increasing by more than two degrees Celsius above pre-industrial levels). Let’s hope for the best.

What is the rationale behind introducing the Renewable Energy Certificates?

Under the Prime Minister’s mission on climate change, out of the country’s total electricity consumption, 15 per cent should come from renewable sources by 2020 and to achieve this goal the Central Electricity Regulatory Commission (CERC) along with the Forum of Regulators created the renewable purchase obligation (RPO) under which each distribution utility will have to source at least five per cent of its total power purchase in 2010, increasing by one per cent every year till 2020.

While some states are blessed with renewable energy resources, others are not, and among those who are blessed with renewable energy sources, very few have taken proactive steps to achieve their renewable potential.

Those distribution utility which don’t have adequate power purchase agreements from renewable sources to meet their RPO requirements can buy RECs and it will considered deemed fulfilment of RP obligations.

How will the REC market function and by when will the trading start?

As in the case of share markets, there are designated depositories in the case of RECs too. The National Load Dispatch Centre (NLDC) will work as depository of the RECs and they can be traded through the two power exchanges IEX and PXIL which are currently operating. We are trying to launch the trading of RECs by the end of September.

The industry fears that in the absence of any punitive mechanisms or non- mandatory nature of the RPO, there will be very few takers for the RECs?

That’s why we have suggested to the government that it should include the tariff policy for non-solar sources of renewable energy in the National Mission on Climate Change as it did in the case of solar power. Let me also add that all the state level regulators have agreed to RPOs at the Forum of Regulators. They have to now frame the respective state- wise rules.

But state distribution utilities are complaining that those who hold RECs will indulge in profiteering and it will lead to an increase in tariffs for the common consumers?

To prevent profiteering, we have fixed the minimum and maximum price at which RECs can be traded and the market can discover the price in that band. Also, we are not allowing the traders to participate in REC trade. And these restrictions will be in place at least till the REC markets in country become broad based and develop sufficient depth.

Even if it is made mandatory to meet RP obligations through RECs, very few state distribution utilities have sufficient cash to buy them?

In that case, the designated state government agency can buy them. For example for Maharashtra, the Maharashtra Energy Development Agency (MEDA) will buy RECs on behalf of the Mahadiscom and Mahadiscom can claim the funds spent by state’s designated agency through its annual revenue requirement (ARR) and pay it back to MEDA.

In the case of solar, the industry has expressed apprehensions, especially about projects which are not covered by the national solar mission and are subject to state regulatory mechanism as there is wide variance between tariffs set by different state electricity regulators.

If someone is not happy with the tariff determined by the SERCs then that generator should challenged it before Appellate Tribunal for Electricity (ATE).

Do you see in the near future energy from renewable sources achieving grid parity?

The power from wind sector has already achieved that status. One can easily compare the cost of wind power with power from gas-based stations. In the Indian context, it is also achievable in the case of solar. The price for setting up a solar power station is already coming down significantly and the cost of fuel in the case of thermal power is also increasing.

How will National Fund for Development of Clean Energy be utilised?

It is completely the government’s prerogative but I believe that a part of it will be used for subsidising solar projects which will come post 2013, as the facility of bundling of solar power with unallocated capacity of NTPC is till only 2013.

James Abraham, CEO Sunborne Energy

Renjini Liza Varghese

India has a huge solar power potential. How do you see the market shaping up in this segment?
The government has come out with a plan to tap the solar energy potential in the country with the Jawaharlal Nehru National Solar Mission (JNNSM). The sector is still in a very nascent stage.  Majority of the players will adopt proven technology from other countries. Right now, the concentration we see is in the solar photovoltaic. But for solar thermal it is a wait and watch attitude, for now at least.
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Do think the plan of achieving the 20 Gw by 2022, the target set under the solar mission, is achievable?
The target of 1Gw by 2013 as the first phase of solar mission is doable; 5 Gw in the second phase appears to be an achievable target too with some subsidies. However, in the last phase of the solar mission, we may not achieve the set target.
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Solar pv as you said is being adopted widely now in the country. But there are lot of complaints about the quality of the product being distributed in the country. Your comment?
 As I said earlier, it is in the premature stage. Like any other industry, we see a lot of fly by night players here as well. These are the initial hitches of a growing segment.  Solar pv the high prices may be also playing a role in making the consumers opting for cheaper models available in the market. The prices will reduce as competition is increasing. The products are 20 per cent cheaper than a few years back. It will be 20 per cent more cheaper by 2014.
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Cost of production and tariff is a major concern for players in the field. Especially for those who are looking at solar thermal. Going forward, where do you figure in solar thermal?
Rajasthan, Gujarat, Madhya Pradesh and parts of Maharashtra are the best states to set up solar projects. Our target is 50 Mw grid connected solar thermal. In this, there are only few players present because of the high cost involved. We need large investments to set up a solar thermal plant – the requirement is anywhere between Rs 700-800 crore. The solar power tariff levelisation wil be with that of diesel generated power. Given the present tariffs, we can say, it could be around Rs 9 per unit.
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Does it mean that medium-sized captive power generators will move to solar?
Yes, the medium sized operator will be opting for solar more. Malls for instance, where your dependence on electricity after sunset is only for a few hours. Right now, these commercial establishments are dependent on diesel generated power.�
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When do you see solar becoming economically viable?
I see it becoming economical by 2014. And by the end of that decade, 24 hour solar power should become a reality. Currently it is solar pv which is the leading technology, but in the second phase of the JNNSM, pv will be only 10 per cent and by the end of third phase, it will be 10- 15 per cent solar pv and the rest will be solar thermal. In pv, efficiencies are rising while material and process costs are coming down. In solar thermal, operating temperatures are increasing and components are becoming commoditised.�
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Which places do you see India lacking in solar power?
There is very little R&D in solar in India and this needs to change quickly. The sector players should take advantage of the local supply chain to bring down the cost. Going forward, for those states which are looking at balancing their energy basket will surely will turn to solar thermal.