Energy Transition: Special Issue Common Vision:

Uwe Beckmeyer, Upendra Tripathy,

Federal Ministry for Economic AN Secretary, Ministry of New &
Affairs and Energy, Germany
Pg 18
COLLABORATION Renewable Energy
Pg 20
` 100 $ 5 € 3
www.energynext.in

Volume 5 Issue 12 October 2015 Hyderabad Your guide to Renewable Energy

RNI NO.: APENG/2010/38296 Date of Publication: 08/10/2015 Date of Posting: 10/10/2015

Green Alliance
5
ReASoNS
to choose Vikram Solar as your
preferred module and
EPC partner:

1 ExPEriEnCE: Track record of 120 MW installed solar capacity

in India and over 100 MW of O&M experience worldwide

2 ExPansE: Footprints in more than 32 countries

3 End-to-End solutions: Presence across the entire value

chain – R&D, design, manufacturing, distribution and O&M

4 ExCEllEnCE: ISO 9001:2008 certified EPC division,

best-in-class performance modules

Quality: High standards for BOS to guarantee

Made in
india
5
Made for
best components for every power point Vikram solar Pvt ltd
Kolkata 700 107, India
PHONE 1800 212 8200

[email protected]

TIeR 1
M o d u l EEr F o l l o w u s at
M a n u Fa C t u r
BlooMBErG 2015

www.vikramsolar.com
October 2015 | Energy Next | 3
IN THIS ISSUE VOLUME 5 | ISSUE 12 | OCTOBER 2015
RE Thrust
www.energynext.in

18 32
Cover Feature
Good Intentions & Challenges
The German Energy Transition
Germany wants to use its energy reforms to demonstrate
The energy turnaround
that there is not only an ecological, but also an economic & technological
case for a sustainable energy policy. Uwe Beckmeyer, State
Secretary, Federal Ministry for Economic Affairs and Energy,
progress
feels that economic viability must be a central criterion Dr. Hermann Falk,
while implementing energy reforms and if this challenge is Director of Germany’s
mastered, there is a good chance of these reforms being Renewable
emulated by other countries across the globe. Energy Federation
(Bundesverband
Erneuerbare Energie
e.V. - BEE) explains

20 that good German

intentions to power their nation with
100 per cent clean energy also has a
In-conversation good number of challenges to face.
He talks about the development in the
India and Germany share a German RE sector
common vision on RE
Upendra Tripathy, Secretary, MNRE, talks about the common
vision shared by India and Germany towards development
of renewable energy and how India can gain from this
partnership with Germany in green energy.
34
Overview RE&EE

Fostering technological
22 change by bilateral
Perspective cooperation
An overview of
Flexibility a key paradigm for India ongoing cooperation
Availability of the sun and the wind isn’t constant, therefore, between India and
in an energy transition scenario, the ‘flexibility challenge’ Germany focusing
will have to be countered. What is this challenge and how it on renewable energy
could be dealt tells Markus Steigenberger, Deputy Executive, and energy efficiency
Agora Energiwende. which supports India
in the implementation
of a progressive climate policy by
Christoph Blaschke, Advisor, Federal

25 Ministry for Environment, Nature

Conservation, Building and Nuclear
Safety.
Expert Opinion
Fulfilling India’s RE dreams
Tarun Kapoor, Joint Secretary, Ministry of New and
Renewable Energy, shares his views on the initiatives 37
being taken by the government for promotion of Economics
renewable energy and future roadmap.
All to be encouraged
to invest

28
Prof. Claudia Kemfert is
a German economics
expert in the area
of Energy research
Grassroots Analysis and Environmental
protection and here
The Energiewende: A lesson in she puts together all
good governance that there is to rejoice
and to introspect about the developing
Craig Morris, lead author of German Energy Transition, explains
economic dynamics put forth in motion
how Energiewende is a grassroots movement which later on
by Energiewende
became national policy and Germany’s priority.

4 | Energy Next | October 2015

 IN THIS ISSUE

41 64
Job opportunities Interview- Counter view

Is energy turnaround a job- India needs its own

creating machine? approach
Stefan Körzell, DBG, gives a perspective of how the The MD and
‘German Federation of Union’ looks at the job market founder of
that has come across changes due to the energy turn- SuKam, Kunwar
around. He answers what kind of jobs clean energy Sachdev, shares
turn-around brought home and what is the future career his views about
potential in the clean energy sector. how realistic
are the Indian
RE targets and
suggests the
changes that RE stakeholders must

44 Germany’s move into

renewables shakes
need to pay.attention to.

Employment up job market

71
If Germany’s Energiewende lead to a rise in the RE job
Political dialogue
sector then it also resulted in a decline in the number of
jobs that were available in the conventional sector over
the last few years. How healthy are these variations?
IGEF – The best
Sören Amelang, correspondent, Clean Energy Wire practices of
(CLEW), canvasses the current job scenario in Germany.
political dialogue

48 54
The German Sun Lessons from Schwerin

Successful PV market India a big market

launch- Experiences for storage & Indo-German Energy Forum (IGEF)
from Germany Batteries is a 10 years old collaboration that
How solar The city of India and Germany have maintained.
energy entered Schwerin now The two nations have stood strong
the main stream attracts visitors with each other. Christoph Ernesti,
in Germany not only for its Co-Director of the IGEF Support
and grew to romantic scenery Office New Delhi informs what all
generate 34.9 but also for the this collaboration has brought to
TWh solar Europe’s first India and shares his perspective on
electricity in commercial what more can be done.
2014, explains battery power
Gerhard Stryi- plant. Clemens
Hipp, of Energy Policy, Fraunhofer
Institute for Solar Energy Systems.
Triebel, Co-Founder of Younicos,
energy storage system developer,
74
He also suggests how India can explains how the enhanced storage Interview
boost its PV market and make solar solutions can change the way we
reach every household in the nation. perceive the flexibility issue. Backhome: Indian
market looks
impressive
Chennai-born
60 Heiko von Tschischwitz,
LichtBlick CEO, a German IT and
Victor Thamburaj,
founder of iPlon,
Technology energy company, talks about
talks about
‘SchwarmStrom’, an electricity
why India is an
solution that serves to stabilize
“ With SchwarmStrom power grids and in which
attractive clean
energy hub of the
We Make Energy consumers who generate energy
also get to earn money. The
current times and
Intelligent” LichtBlick technology turns a
what more needs
to be done in the Indian RE market.
home into a power plant.

October 2015 | Energy Next | 5

 Your guide to Renewable Energy

A Monthly
Publication
dedicated to the
Renewable Energy
Sector

Be a part
of the
REvolution

Policy Initiatives | Industry Issues | Investment

Technology & Trends | Company Profiles
State Focus | Global Perspective | Market Watch

Advertise today!
Focal Point Media Services Pvt Ltd | 409, Mansarovar Building, 90,
Nehru Place, New Delhi 110019 | www.energynext.in | [email protected]
 FROM the editor

Forging new partnerships

for RE growth
with Germany offering to extend technical
and financial help to support India’s proposed
objective of 175 GW of RE by 2022.
It is imperative to increase synergy
between the two countries and familiarise
each other about their respective energy
targets, development strategies and issues.
This special issue aims to connect German
and Indian RE stakeholders both at a
government-to-government as well as a
business-to-business level. With this issue,
we hope to open up more avenues and

O
offer opportunities to RE stakeholders in
n the occasion of German to increase the share of renewable energy in both the countries.
Chancellor, Angela Merkel’s its energy basket progressively from about On this special occasion, we also
visit to India from October 30% at present to 35% by 2020, 50% by 2030, bring to you an article authored by the
4-6, 2015, Energy Next has 65% by 2040 and 80% by 2050. German State Secretary, Federal Ministry
come out with a special issue focussing on India, on the other hand, has also set out for Economic Affairs and Energy, Uwe
Germany’s path breaking Energiewende on an aggressive path in setting Renewable Beckmeyer, who makes a strong economic
initiative and the potential for Indo- Energy (RE) targets. Currently, the share case for having a sustainable energy
German collaborations in Renewable of RE to the total installed capacity and policy. Valuable insights into the German
Energy (RE). India can look to draw from electricity generation is 13% and 7%, experience have also been provided by
the German experience, as well as reach respectively. The government plans to Markus Steigenberger, Deputy Director,
out to German investors, industry players increase the share of RE generation in AGORA, Energiewende, among others.
and stakeholders in order to attract their electricity generation to 15% by 2022. On the other side, we bring to you the
interest and investment in Indian RE Production from renewable sources is at views of Indian policy makers on how India
ventures and companies. about 37,000 MW at present. The country can learn valuable lessons from Germany so
Germany is making a tectonic shift in plans to produce 175 Giga Watt (GW) of as to become a leader in RE. An interview
the direction of sustainable development. renewable power by 2022, of which 100,000 with Secretary, Ministry of New and
In 2012, Germany was the eighth-largest MW is to come from solar alone, with wind Renewable Resources (MNRE), Upendra
energy consumer in the world and depended contributing another 60,000 MW. Tripathy, brings out the government’s vision
heavily on imports to meet its energy needs. The success of Energiewende has created and intent to promote RE. An article from
Today, Germany ranks as one of the most a lot of interest globally and the know-how Tarun Kapoor, Joint Secretary, MNRE,
energy efficient countries in the world, of German companies is highly in demand. throws light on RE roadmap in India.
drawing almost 30% of electricity needs from There are important lessons to be learnt and
renewable energy. This monumental Energy partnerships to be forged to pass on this
Transition – popularly called Energiewende success. India already shares a long standing
- has been possible due to a combination of relationship with Germany since 1999, when
political will, strategic policies, free market IREDA signed its first line of credit with KfW
competition and grassroots activism, all for promotion of renewable energy.
of which have created a fertile ground for The strategic relationship between the
a green economy, and at the same time, two countries was further strengthened in
have strengthened environmentalism and April this year, when Indian Prime Minister,
entrepreneurship. Narendra Modi, visited Germany. A joint
Energiewende is one of the most defining statement was released by both the countries
projects for not just Germany but the whole
world. The country has signalled its intent to
KS Popli
phase out nuclear energy by 2022, and plans Chairman & Managing Director, IREDA

October 2015 | Energy Next | 7

 letters to the editor

One-Stop Shop for Your cover story this time was a one-stop
shop to know all there is about the state of
Indian renewables Indian States’ growth in renewable energy.
The results give hope. If we can come this
far out of our comfort zones, to protect Enabling Investment Environment
climate and do it smartly at that, leading
to a growth too, then we can definitely Editor-in-Chief K S Popli
go farther and achieve our targets. If not Publications Director Neeraj Daftuar
the whole of the target, then at least an Executive Editor Neeraj Dhankher
impressive length of it can be achieved. Correspondent Areeba Falak

ll Roopa Shekhawat, Banglore Head - Business & Events Anupam Daftuar

Design Flying Tusker Media
Marketing Manager Abhinav Dutta

Bilbao is Impressive promoting and implementing mechanism, set by the joint

The Spanish city, Bilbao, proves solar. It would be nice to see collaboration of the central
For the latest Renewable Energy news.
the potential that modern the blue metro roofs decorated and the state governments, is
log on to www.energynext.in
technologies have to turn a with solar panels. But I’d also a must to ensure a strict RPO
dilapidated city into a smart say that Delhi metro has more compliance in the country.
city. I would strongly agree urgent needs to take care ll K Saraswati, Hyderabad Energy Next is printed by R Ramprasad and published
to the idea of India bringing of too, commuter rush etc. by R Ramprasad on behalf of
Focal Point Media Services Pvt Ltd
in such large scale dramatic Something should be done in Need for variety #407, Fifth Floor,
changes to improve the that regard as well. But yes, As much as I would Pavani Plaza, Khairatabad,
conditions of our cities. But solar is a thumbs up from us congratulate you on being able Hyderabad - 500 004 AP, India.
more focus should be put first Delhiites for our Metro. to bring more and informative Focal Point Media Services Pvt. Ltd. is a joint
venture of Gateway Media Pvt. Ltd, and Invision
on those Indian small towns ll Anish Nigam, New Delhi content every month, I’d also Communications & Research Pvt. Ltd, and printed at
or cities that lack a sustainable point out that the magazine M/s. Kala Jyothi Process Pvt. Ltd.
standard of living instead No to Penalty is lacking variety. The articles 1-1-60/5, RTC Cross Roads, Musheerabad Hyderabad
- 500 020, and Published at Focal Point Media
of improvising the already I agree with KR Nair that a are good, but so much more
Services Pvt. Ltd.
established metropolitans. stringent penalty alone will not and better could be done. I’d #407, Fifth Floor Pavani Plaza Khairatabad,
ll Sanjeev, Hyderabad ensure a strict RPO compliance. suggest you to indulge in more Hyderabad - 500 004 AP. India.
The financial conditions of the comparative analysis across Tel: +91 40 233 000 61, 233 006 26
Fax: +91 40 233 006 65
Great initiative states are not so strong to be various renewable energy
Delhi Metro is in the right able to afford such penalties. sources and bring out some
Editor-in-Chief: K S Popli
to indulge in solar power. It This might even worsen the exclusive perspective of yours Subscribe: Phone: +91 11 2642 4071/72
would also give confidence situation all the more. The idea to enlighten readers with. e-mail : [email protected]
to other institutions and of incentives instead of penalties That would also add to the Write to: Focal Point Media Services Pvt. Ltd. #409,
Mansarovar Building,
organizations to witness seems more appropriate. Also, individuality of the magazine.
90 Nehru Place,
such large infrastructures an independent verification ll Apoorva Bansal, Noida New Delhi-110 019, INDIA
Phone: +91 11-26424071/73
Fax : + 91 11-46507580
Feedback: Please send your feedback and comments to
[email protected]
Please note: Views expressed in the articles are those
of the Authors and may not be shared by the editor or
advisory board members of the editorial board. Unsolicited material
will not be returned.

Copyright: No material published here should

be reproduced in any form without prior written
permission from Focal Point Media.

Prof Rangan Banerjee Arun Gupta Dr Praveen Saxena K P Sukumaran S Chandra Sekhar Yogesh Mehra
IIT-Mumbai Managing Director Former Advisor Former Advisor Managing Director Managing Director
Him Urja Pvt Ltd MNRE MNRE Bhoruka Power Corpn Ltd Wind World (India) Ltd

Contact Write to
Advertise Abhinav Dutta
Marketing Manager
Focal Point Media Services Pvt. Ltd.
409, Manasarover Building
with us +91 9999918270
[email protected]
90, Nehru Place
New Delhi - 110 019

8 | Energy Next | October 2015

 NATIONAL

Govt gives its nod for off-shore wind policy Govt tells thermal
plants to generate
solar power too

F or promotion of off-shore wind power

generation, the central government
has approved a policy framework for
that the government will take sub-approvals
from defense, space and shipping ministry
before going in for auction. MNRE will be T he government has ordered some of
India’s oldest coal-fired power plants
mapping and locating potential sites for the nodal ministry for use of offshore areas to help make solar farms more competitive
offshore wind energy. Power and New of the country and the National Institute by bundling together electricity from
and Renewable Energy minister (MNRE) of Wind Energy (NIWE) will be the nodal both technologies for sale to the grid. The
Piyush Goyal, said that the government agency for allocation of offshore Wind decision requires state-controlled NTPC Ltd
would attract private players by auctioning Energy blocks. This approval has paved the to sell cheaper coal power along with more
sites thereby reducing the cost for erecting way for offshore wind power projects up expensive solar as a single unit. The effect of
power generation units. He further added to seaward distance of 200 nautical miles. the order is to reduce the price distribution
that as and when the scale of operation will Currently, on an experimental basis, a 50 companies pay for solar power and force
increase, the competitiveness of offshore MW power generation unit is being setup them towards cleaner form of energy. The
wind energy will also improve. Goyal said in the country. mechanism is unique to India, since the
state-run distribution companies have been
losing money because they were unable to
charge customers enough to cover the costs
NITI Aayog targets 15% green power share to of electricity they buy in the market.
meet India’s energy requirement by 2030
Govt aims `36,000 crore
T he environment ministry was
informed by the National Institution
minister Prakash Javadekar had said that
India’s submission to the UN will be the investment target for
for Transforming India (NITI) Aayog that most exhaustive, covering all crucial climate Green energy corridors
renewable sources can make up at least change areas — mitigation, adaption, finance,
15 per cent of India’s energy mix by 2030
if present policies are given a push. This
analysis was done as part of the government’s
technology. The analysis shows it would be a
big leap for India as renewable energy currently
contributes to less than 6 per cent of the
T he government is expecting an
investment of `36,000 crore in green
energy corridors across the country. MNRE
strategy to specify India’s climate action country’s energy mix. India’s power demand secretary Upendra Tripathi has said that the
plan to be submitted to the United Nations. by 2030 is expected to be about 10 lakh MW. ministry will gradually develop a ‘new solar
The action plan, called Intended Nationally According to the panel, the biggest contributors or renewable zone policy’ in due course in
Determined Contributions (INDCs), is to enhanced green power will be solar and wind which the accountability and responsibility for
awaiting Cabinet approval. Environment energy, contributing about 70 per cent. land acquisition will be laid with developers
of proposed zones and the Centre will have
no role in such land acquisition process. As
per Tripathy, the ministry would shortly
release Rs 1,074 crore to states of Tamil Nadu
and Rajasthan for setting up of green energy
corridors. The ministry is planning to evolve a
New Solar or Renewable Zone Policy in which
the land acquisition would be effectively done
by developers in consensus with farmers and
that the Centre will perform the role of a third
party in such processes.

10 | Energy Next | October 2015

 NEWS

Wind Energy: India’s potential target upgraded to 302 GW

T he National Institute of Wind
Energy (NIWE) announced that
the total onshore wind energy potential
Indian market. The new assessment
methodology also takes into account
the actual land availability, with land
in the country is 302 GW (determined features categorised into three ranks —
at a hub height of 100 meters). The wasteland, cultivable land, and forest
fresh estimates are six-times the wind land. Out Of the total estimated 302
energy potential determined at a 50 GW potential, 153 GW -wasteland,
meter hub height, and three-times the 146 GW-cultivable land, and 3 GW-
potential estimated at a hub height of forest land is available. The overall
80 metres. The new estimates are in- ranking of the states across the three
line with the latest technology of wind wind potential estimates remains the
turbines and towers available in the same.

Govt calls for utilising rooftop space for solar Govt to support
domestic solar industry
T he Centre has asked its ministries, States
and all educational institutions across the
country to utilise the space available with them
government is providing financial assistance of
15 per cent of the benchmark cost for installation
of grid connected rooftop solar system/project
to install grid connected solar rooftop systems. on four categories of building–residential,
About ten square meter space is required for institutional, government and social sector.
installing one kWp of solar rooftop system. The Under residential class, all types of residential
buildings are covered. The institutional category
cover schools, health institutions including
medical colleges and hospitals, educational
institution (public & private) and R&D institutes.
The government category has central and state
buildings covering all offices, PSUs and all
Panchayati Raj buildings are also covered under
this category. In the social sector category, all
T arun Kapoor, Joint Secretary (Solar),
Ministry of New and Renewable
Energy was reported saying that the PSUs
community centres, welfare homes, old age are committed to supporting the domestic
homes, orphanages, common service centres, solar industry and will look for ways to take
common workshop for artisans or craftsman, etc it ahead. This averment came against the
are eligible. backdrop of India losing its case at the World
Trade Organisation, against a mandatory
buy-local rule, called ‘domestic content
requirement’, or DCR. The general view in
Solar parks to soon get separate Power grid the government is that there wouldn’t be any

P ower Grid Corporation has floated

a second version of the ambitious
Green Corridors project aimed at
state and the balance 4,480MW by state
transmission utilities. Government
officials were reported saying that
problem for the Centre to ask public sector
undertakings to use locally made cells in
their solar projects. It may be recalled how
evacuating power from 20 solar parks while the inter-state lines have been the Centre in May 2014 had refrained from
planned by 12 states. The inter- nominated to Power Grid Corporation, slapping anti-dumping duties on solar cells
state lines will be laid by Power Grid the intra-state lines have also been given from the US, China, Taiwan and Malaysia,
Corporation and the intra-state ones to it for sub-tendering. After 2011, all but assured the domestic industry that they
by the state transmission utilities or transmission projects are required to be would get support from PSUs. India has close
by a tender. Out of a total 22,100MW awarded through competitive bidding, to 1,400 MW of cell capacity and about 2,900
capacity of Ultra Mega Solar Power Parks except projects of strategic importance. MW of module capacity, which can be easily
envisaged in 12 states, about 17,620MW, The Rs 34,000 crore first version of the absorbed by PSUs. Large PSUs such as NTPC,
including 7,500MW from Jammu and Green Corridors project has made slow ONGC and Coal India, and departments such
Kashmir, would be evacuated inter- progress. as the Defence and the Railways, intend to put
up several GWs of solar plants.

October 2015 | Energy Next | 11

 State | News

SPV module manufacturing line inaugurated Punjab attracts `3,500

crore investments for
A nant G. Geete,
Minister of
Heavy Industries &
not only in Rajasthan but also on national level
in the area of renewable energy. By committing
investment in Renewable Energy through captive
solar projects
Public Enterprises, power generation, REIL has installed a 100 KW
inaugurated Roof-Top Solar Plant, which would generate 1.5 lac
new Automatic unit per year, saving would be of `10 lac.
SPV Module Geete showed interest in various products
Manufacturing manufactured by Company, for the dairy sector
Line and 100 KW such as EMT, Automatic Milk Collection Station,
Rooftop SPV Power Ultra Sonic Milk Analyzer, Solar Street Lights,
Plant in Jaipur. New Automatic SPV Module
Manufacturing Line is expected to be one of the
best and reliable production units. Rajasthan
Solar Domestic Lights, Solar Water Pumps, Solar
Auto Tracker, Roof-Top Solar System, etc. and
Information Technology. He also expressed trust
P unjab government received bids from
as many as 18 companies for setting up
solar projects in the state which will attract
Electronics & Instruments Limited (REIL) plays that REIL shall soon achieve 100 MW production investment of Rs 3,500 crore.
an important role in the inclusive national growth capacities with its efforts. Some of the Companies to bid were Sun
Edison, , Solar Pack Corporation-Spain,
First Solar and Sky Power- US Azure Power,
Major airports in Rajasthan to have solar power Emami Power, Hero Group , Sun Pharma,
Acme and Welspun.

T he desert state of Rajasthan will switch

its airports to clean power and use
solar energy to meet their electricity needs.
The state received bids with cumulative
capacity of 1,650 MW as against offered
capacity of 500 MW.
A rooftop solar plant with 100Kws Punjab New and Renewable Energy
capacity was set up at the Jaipur Airport, in Minister Bikram Singh Majithia said
the state’s capital. Now, another 1800Kws the “overwhelming” response from
capacity plant will be set up on the ground international solar power players confirmed
beyond the safety area. would be still there for a balance with solar that the State’s renewable energy policy is
The Airport Authority of India (AAI) energy. There would be devices to keep the the best in the country.
has planned to invest Rs 13-14 crore to run balance of power generation from solar and Majithia added that the hassle free
Jaipur airport’s internal power requirement conventional electricity source. land acquisition and land lease policies,
on solar energy by the end of 2015. The Similarly, a 100-kw solar plant has been incentives, infrastructure and ease of
airport requires 2,000 kws of electricity for set up at Jodhpur airport and efforts are doing business make Punjab an attractive
lighting, air-conditioning, runway lights underway to provide solar power facility in investment destination. Also the five year
and navigational aid. Jaisalmer and Bikaner. AAI is also actively power purchase agreement with electricity
The Conventional source of power working on the airport at Kishagarh. utility - the PSPCL that has got a good credit
rating of A+ has also boosted confidence.

Delhi’s Dialogue Commission aims for 1 GW solar power by 2020

T he Delhi Dialogue Commission (DDC)
presented the draft solar policy for the
capital that proposes to double the capacity
it will save Rs 15,000 every year whereas a
household installation will take seven years
for a family to recover the investment. The
to 2 GW by 2025 i.e. 21 per cent of city’s Average age of solar plant is 25 years, so a
peak power demand. The DDC draft policy family can enjoy free electricity for 17-18
was uploaded on their website for public years, said Khetan.
consultation, which will be finalised and Due to land crunch, Delhi has a huge
submitted to the Delhi government for potential for roof top solar plants. It has a
further approval of the Cabinet. capacity of 31 square kilometre it will give
DDC vice-chairperson Ashish solar energy potential of 2.5 GW. Current
Khetan informed that the payback rooftop solar tariff in Delhi are Rs 6-8 per
time for commercial, industrial and the unit and will remain constant for the next
government units is only 5.5 years and 25 years.

12 | Energy Next | October 2015

 INTERNATIONAL | News

Obama pledges $120M for solar & clean energy Wind to meet 25%
of EU energy needs
T he Obama administration announced
a series of efforts worth more than
$120 million aimed at boosting solar and
electricity by 2030
other clean energy sources in the US.
The initiatives focus on the
Department of Energy, where the bulk
B y 2030 a quarter of the European
Union’s electricity needs could be
supplied by wind farms if member states
of the funding will go to programs to abide by energy and climate pledges.
develop solar power technology and Wind energy provides around 10 percent
get it into homes, businesses and other of the bloc’s electricity but lobby group,
facilities. the European Wind Energy Association
White House said in a fact sheet that (EWEA) said it expects wind capacity
President Obama and Vice President Biden will the Obama administration’s energy. The could reach 320 GW over the next 15 years,
help America transition to cleaner and more White House has been reported saying making a near 25 percent contribution to
distributed energy sources and help households that approximately 734,000 homes have overall electricity supply.
save on their energy bills by promoting smart, solar panels, up from 66,000 homes when “The forecasts are contingent on a
simple, low-cost technologies to, and to address Obama took office. number of factors on the political and
climate change. But solar still only represents a small regulatory front including a clear governance
The actions are expected to help solar sliver of the country’s power generation. structure,” the report said.
power grow in 24 states. Solar power has Solar produced 0.4 percent of the United The 2030 agreement includes cutting
been a top priority and talking point for States’s electricity last year. greenhouse gases by at least 40 percent
versus 1990 and raising the share of
renewable energy to at least 27 percent from
Zambia to triple power generation from solar 20 percent by 2020.

Z ambia expects to triple power output to

6,000 MW in 2 years through expansion
of solar energy by foreign investors.
Not disclosing the planned location,
Zambia Development Agency (ZDA)
Director General Patrick Chisanga said
UK drops out of top
10 RE ranking
Mercurial electricity supplies have hit
mining in the continent’s second biggest
copper producer, where the bulk of its
he had held “very positive” talks with an
unnamed German company aiming to invest
$500 million in a solar power plant. The
T he UK has dropped out of the top ten
of a respected international league
table on renewable energy for the first time
generation capacity of 2,200 MW of power is expected capacity is 400 MW of power in since it began 12 years ago.
water-powered. two steps. In its quarterly report EY said that
The power problems and copper price Another group of investors from Italy were the new Conservative government had
slide have driven the kwacha currency to also said to be looking to set up a solar plant sentenced the renewable energy industry
record lows amid a selloff in commodity- in the Lusaka South multi-facility economic to “death by a thousand cuts” and investor
linked currencies as top copper consumer zone and two others in the Western and confidence in the sector had collapsed
China’s economy has slowed. Northwestern provinces. because of policy changes over the summer.
An EY energy analyst said that
“investors are scratching their heads”
to understand the government’s policy
changes in recent months, putting at risk
the UK’s reputation as a “safe harbour” for
investment. When the last rankings were
published in June, the UK was sat in 8th
place, but it has now dropped to 11th.
The period since the election of the
Conservative government in May has been
deemed by some environmentalists as the
worst for environmental policy in decades.
The report cites the early end of
subsidies for onshore wind and large scale
solar projects for the decline.

October 2015 | Energy Next | 13

 INTERNATIONAL

Green industry hopes policy change under Turnbull Indonesia to get

Turnbull said that the climate policy is $630m from EU
one that has been very well designed. This
stance is perhaps unsurprising given that
Malcolm Turnbull’s push for an emissions
T he Investment Coordinating Board
(BKPM) reported that the European
companies have collectively offered up to
trading scheme cost him the opposition $630 million in investment proposals in
leadership in 2009. renewable energy projects in Indonesia.
This time around, the newly installed During chairman Franky Sibarani’s trip
prime minister is said to be taking cautious to Milan, Italy, BKPM received investment
steps, endorsing the party’s commitment to proposals of as much as $380 million from
‘direct action’ despite publicly opposing it an unnamed Italian power company.
in the past. According to the statement, the Italian

T he renewable energy industry is

celebrating the ascension of Malcolm
Turnbull as Prime Minister of Australia, on
Immediately after rolling Mr Abbott,
Turnbull confirmed his backing for the
Government’s targets to cut emissions by 26-
company hopes to build two renewable
energy power plants in Riau: a $280 million
steam-powered electricity generator with
hopes that he may lead the Coalition towards 28 per cent by 2030. a capacity of 250 megawatts and a $100
policies more supportive of the sector. The new PM was reported saying that the million geothermal power plant with a
However, Turnbull’s early statements have cuts that have been proposed by government capacity of 55 megawatts.
been in favor of retaining the Government’s are absolutely comparable and appropriate, Franky also cited another investment
current climate change policies. and in line with other economies. proposal from the UK, including from an
investor who aims to build a 200 megawatt
solar-powered electricity generator with an

Aspen becomes 3rd US city to achieve 100% RE estimated investment value of $250 million.
BKPM chairman said that the investment

T he City of Aspen, a famed

tourist location in the Rocky
Mountains, Colorado, serves a
goal,”, the city signed a contract with
wholesale electric energy provider
Municipal Energy Agency of Nebraska
coordinating board is now facilitating a
meeting for investors and representatives
from the Perusahaan Listrik Negara (PLN),
population of just over 6,600 people, fulfilling Aspen’s transition to 100% the Energy and Natural Resources Ministry
and its renewable power supply comes renewable on September 10. and potential local partners.
from a combination of wind, hydro, Aspen receives wind energy from
geothermal heat, and solar.
The plan for shifting to renewable
four wind farms in Nebraska and South
Dakota, and the city also uses energy
German bank offers
energy and meeting the challenges of from Ruedi Reservoir, Maroon Creek, $2.25 bn for RE
climate change dates back to 2005. City
Utilities and Environmental Initiatives
director David Hornbacher said in
and Ridgway Reservoir, a hydropower
facility near Montrose. Two utilities,
Aspen Electric Utility and Holy Cross
G ermany has reiterated its commitment
to offer loans worth up to euro 2
billion (US$2.25 billion) from the country’s
order “to achieve this final leg of our Energy, serve the community. development bank, Kreditanstalt für
Wiederaufbau (KfW)to Indonasia.
The bank will provide the loans to state-
funded projects in the energy sector within
the next five years. KfW Office Jakarta senior
sector coordinator Christoph Twerenbold
said the bank would provide the loans as
part of an agreement between Indonesia
and Germany in 2013.The projects to be
financed will comprise small and big hydro
power projects, geothermal, solar power and
transmission network.
Christoph also said that the bank’s main
partner was state electricity firm PLN, which
has received 300 mn euros in loans this year,
out of the bank’s 2 billion euro portfolio.

14 | Energy Next | October 2015

 AZISINDIA2015_Besucher-national _80x200_Layout 1 24.09.15 15:58

New signals
coming from India
India has ambitious objectives for expanding solar energy. The
government plans to increase photovoltaic output by a factor of
30 by 2022, to a total of 100 gigawatts. The state of Maharashtra
has also committed to a determined energy policy: By 2020, the
Maharashtra government intends to install an additional 7.5GW
of photovoltaic power. This policy provides the backdrop for
Intersolar India 2015, taking place in Mumbai, in the heart of
Maharashtra, from November 18. Around 200 exhibitors from all
over the world are expected.

India’s largest exhibition for the solar

industry.
Everything is pointing towards growth of the Indian solar
market, making Intersolar India 2015 a particularly exciting
event. As in the previous year, the Intersolar India Conference
will be held in parallel with the exhibition. The first conference
day sheds light on current market developments. Both the
exhibition and the conference take place at the Bombay India’s Largest Exhibition and
Exhibition Centre (BEC) in Mumbai. The organizers are
expecting around 200 exhibitors and 9,500 visitors.
Conference for the Solar Industry
New government of the state of Maharashtra advocates Bombay Exhibition Centre,
photovoltaics (PV) Intersolar India 2015 will be a reflection of Hall 1, Mumbai
ambitious political goals. After the elections in the Indian state
of Maharashtra just a few months ago, the new government was 200 International exhibitors & 9,500+ potential
formed which is led by Indian Prime Minister Narendra Modi’s buyers await you at the exhibition
party, the Bharatiya Janata Party (BJP). The new government has Network with more than 100 speakers &
already passed its new energy policy, which proposes a marked 500 professional delegates at the conference
expansion of renewable sources of energy. The program envisions Maximise your visit – Intersolar India Conference
the additional installation of 14.4 GW from renewable energies and Exhibition under one roof
by 2020. India is especially interested in building large-scale PV Make your presence to feel the difference
plants: Two fifth of the targeted output is to come from solar at the unlimited business opportunities –
installations on commercial or private roofs, the rest from large Block your dates now!
solar parks. To promote this development, the state is funding
large projects with the equivalent of 290,000 EUR per MW, or up
to 30 per cent of the project costs.

Focus of the conference program:

Market situation and energy storage
The Intersolar India Conference,is expecting 500 solar experts. The
sessions on the first out of three conference days will shed light
on the current developments in the Indian solar market. Energy
storage, remote electricity supply, large-scale PV installations and
project development and financing are part of the program on the
remaining conference days. with special exhibition
Prof. Eicke R. Weber, director of the Fraunhofer Institute for
Join us now!
Solar Energy Systems ISE, and professor of physics/solar energy
at the University of Freiburg, Germany will be keynote speaker,
speaking on “The Role of Solar Energy in our Future, Renewables- Supporters

based Energy System”. The agenda also includes a lecture entitled

“Shifting Gear from MW to GW – India’s Emergence as a
Dominating Global PV Market“.
 The future will see increasing energy prices
Are you prepared for this challenge?

ENERGY EFFICIENCY SPECIALIST

Y

CM

MY

CY

MY

Measure your companies’ energy consumption

Develop your individual energy efficiency strategy
Implement commercially viable energy projects
Save energy, reduce costs and protect the environment

Join our EUREM Energy Efficiency Trainings in

Mumbai, Delhi, Bangalore, Pune, Chennai and Kolkata
Mumbai Gwenda Schobert | Tel: 022-66652128 | E-mail: [email protected]
Bangalore Leonara Correia | Tel: 080-22265650 | E-mail: [email protected]
Delhi Sumati Sud | Tel: 011-47168810 | E-mail: [email protected]
Pune Aadishree Jamkhedkar | Tel: 020-41047124 | E-mail: [email protected]
Chennai Irene Richards | Tel: 044-28340835 | E-mail: [email protected]
Kolkata Rupashri Ghosh | Tel: 033-22837962 | E-mail: [email protected]

http://indien.ahk.de/training/eurem/
Implemented by:
 Special Issue | INDO-GERMAN

GAME CHANGER:
Merkel-Modi Summit

Six months is not considered a long period in geo-politics. But, it has been in case of India and Germany.
In April this year Prime Minister Narendra Modi inaugurated Hannover Messe promoting Make in
India with an eye to get Germany industry for his ambitious 175 Giga Watt (GW) renewable energy
target. Almost six months down the line German Chancellor Angela Merkel will be in Delhi in October
with her senior cabinet colleagues to finalise an array of collaborations in the green energy sector. Her
visit marking 10 years of India-Germany Energy Forum (IGEF) will also showcase the way historic
partnership between the two rising global powers has cemented in the last six months with several
rounds of high level meeting.
Germany had excelled in renewable energy especially solar in the last quarter of the century emerging
as one of the greenest country in the world. India under Prime Minister, Narendra Modi, had opted for a
m
similar sustainable growth pathway now an attraction for global investors including Germans.
India can learn from German expertise in renewable energy to meet PM Modi’s ambitious RE target.
In return, India will provide a unique investment opportunity to German companies to take benefit of
Modi’s Make in India programme.
Merkel-Modi summit in New Delhi is expected to be historic as it would be a win-win for both the
countries. Energy Next provides a detailed insight into the Indo-German collaboration with leaders in
the green space from the two countries sharing their views. Read more inside.

October 2015 | Energy Next | 17

 SPECIAL ISSUE

The German
energy transition

The German Energy Transition – Energiewende –is

one of the most defining projects for us in Germany
and will remain so for the foreseeable future. We
want to use our energy reforms to demonstrate
that there is not only an ecological, but also an
economic case for a sustainable energy policy. By
State Secretary Uwe Beckmeyer, Federal Ministry
for Economic Affairs and Energy, Germany

I
n fact, there are quite a few good reasons are giving rise to the development of new close co-ordination with our European and
for us to undertake these reforms: first technologies and new high-growth sectors international partners. Germany is situated at
of all, Germany is an industrialised providing new jobs. And lastly, Germany the heart of Europe. Our energy industry and
country that wants to phase out nuclear wants to demonstrate that a sustainable energy our energy policy are very much integrated
energy and bring the share of renewables in policy makes sense economically. After all, the with those of our neighbours – both via the
its gross final energy consumption up to 60 more countries on board, the more successful internal energy market and via our cross-
per cent by 2050. Secondly, we want to reduce our efforts to mitigate climate change and to border interconnectors. We continuously
our dependency on foreign gas and oil. If we protect our resources will be. co-ordinate our energy policy with our
look at the current geopolitical situation, it We are well aware that other countries are neighbours, discuss our actions within the
becomes clear just how important this long- following our reforms not only with interest EU, and have embarked on a range of joint
term strategy is – not only for Germany, but and curiosity, but also with a measure of energy projects with our neighbouring
also for Europe as a whole. Thirdly, our reforms scepticism. We do not intend to – and indeed, countries. I would like to build up this co-
are designed to help us attain our greenhouse we cannot – manage the energy reforms operation even more.
gas emissions targets. Fourthly, the changes on our own. On the contrary, we act in The EU is already playing a key role when

18 | Energy Next | October 2015

 Cover feature

it comes to providing a framework for energy

policy. Similarly, many of the objectives
There is no denying the fact that
and targets of energy policy are defined at the energy reforms present us
European level. The best example of this is
the ongoing debate about the 2030 Climate with enormous challenges, but at
and Energy Framework and the greenhouse
gas, renewables, and energy efficiency targets
the same time, they offer major
associated with it. It is important for Europe to opportunities for Germany, for
adopt an ambitious climate and energy strategy
and not to give up its three-pronged approach.
Europe, and the world
The Federal Government of Germany will the most cost-effective technologies, i.e. our electricity production. At the same time,
continue to press for three ambitious targets photovoltaics and wind energy. German power supply system remains to be
to succeed what were dubbed the “20-20-20” Apart from the reform of the Renewable one of the most reliable in an international
targets. The Federal Government believes that Energy Source Act, we have presented the comparison. The energy reforms have already
the EU should decide to cut greenhouse gas Economic Affairs Ministry’s “10-point energy become a driver of innovation. Several new
emissions by at least 40 per cent by 2030 and agenda”, which lists the most important fields of business have emerged and more
to increase the use of renewables to 30 per cent energy projects for this parliament. The than 350,000 jobs have been created. German
by 2030. Furthermore, we are in favour of the 10-point energy agenda shows very clearly companies are among the world leaders on
Commission’s proposal of increasing energy that the amendment of the Renewable Energy energy efficiency, for instance when it comes
efficiency in EU by 30 per cent by 2030. Sources Act was one important step, but many to developing and producing highly efficient
At national level, we are faced with the more steps need to follow, most importantly a building technology, smart homes, and ‘nearly
enormous challenge of co-ordinating our new market design for our electricity markets, zero-energy’ buildings.
various actions. As we implement our new rules on grid expansion, and more action As we conduct all these projects linked to
energy reforms, we must take care that our on energy efficiency. the German energy reforms, we must, however,
electricity supply – from both renewable and There is no denying the fact that the energy never forget to look beyond our own backyard.
conventional sources – is well co-ordinated. reforms present us with enormous challenges, This means not only looking to Europe, but
Among other things, this means that we must but at the same time, they offer major also to the world as a whole. After all, beyond
bring together and merge what have hitherto opportunities for Germany, for Europe, and the European internal energy market, the
been separate energy systems – one based on the world. We have succeeded in developing world’s energy markets are also becoming
fossil fuels and one based on renewable energy new and marketable technologies that can increasingly integrated.
- and look for smart and affordable solutions. compete on the international markets and give For this reason, we engage in close bilateral
This was one our most important objectives us greater access to renewable energy and to and multilateral energy co-operation with
of the reform of the German Renewable Energy energy-efficient technologies. numerous countries across the world. We
Sources Act in 2014. With the reform of the And this is something we have already are cooperating very closely with India in
Act in 2014 we have succeeded in significantly gone on to achieve: In the first half of 2015, the framework of our Indo-German Energy
slowing down further cost increases by renewable energy was used to generate about Forum. In 2016 we will celebrate the 10th
following a set plan as we continue to expand 32 per cent of the country’s gross electricity anniversary of this very successful cooperation.
the use of renewables, and by focusing on consumption, making it the largest source of On a multilateral level we are part of energy
and raw materials partnerships with various
countries, we are active members of the
International Energy Agency and of the
International Renewable Energy Agency
(IRENA), and, of course, the G7 and the G20.
Much needs to be done: we need to make
our energy reforms a success, whilst also
maintaining our energy system for the long
term and boosting the competitiveness of the
German industrial sector. Precisely because
we know that the energy reforms come with a
price tag attached, economic viability must be
a central criterion as we implement them. If we
master this challenge, there is a good chance
that our energy reforms will be emulated across
the world.

October 2015 | Energy Next | 19

 SPECIAL ISSUE

India and Germany share

a common vision on RE
The cooperation between India and Germany is not just about finance and
technology, but also about learning from each other on development of
Renewable Energy (RE). Upendra Tripathy, Secretary, Ministry of New
and Renewable Energy (MNRE), shares his views with Energy Next on
government’s vision in this regard
and monitoring, solar thermal test facility, to investments, finance and
commercialization of solar energy in urban technology?
and industrial areas and energy access in With the present installed capacity of
rural areas. KfW, Germany loan to IREDA around 33 GW, non-hydro renewable
and for creating Green Energy Corridor are power represents over 12 percent in total
shining examples of mutual cooperation. electricity installed capacity. The renewable
In April 2015, India and Germany have power including hydro represents around 29
signed a ‘Letter of Intent’ in Hannover, percent in total electricity installed capacity.
Germany. It provides for establishing We have an aspirational aim of 175 GW by
cooperation to increase the use of solar 2022 that is around 5 fold increase in the
energy in India through technical as well as present capacity. We are highly appreciative
financial cooperation. We intend to enter of Germany’s target of increasing renewable
into an MoU for Indo-German Solar Energy power share in electricity mix to 35 percent
Partnership during the visit of German by 2020 and 50 percent by 2030.

Q
Both India and Germany Chancellor to India in October 2015. India needs additional investment in
have been showing a lot renewable energy. Broad estimates indicate
of interest in each other Germany is a developed market that the investment requirement in the
in recent times. In the joint when it comes to RE, while next seven years would be around US $ 200
statement issued by the two India has also embarked upon billion. It provides ample opportunities for
countries in April 2015, Germany an ambitious RE plan. How foreign investment, including investment
had resolved to support India’s can both countries benefit from Germany. Our general position is of
proposed objective of 175 GW of from each other with regard permitting foreign investment for renewable
renewable energy by 2022 through
technical and financial support for
developing comprehensive solar
rooftop and green energy corridor
projects in India. The German
Chancellor, Angela Merkel, is
now slated to visit India during
October 4-6, 2015. How are two
nations looking to build up on
this partnership in the field of
renewable energy?
India and Germany share a common vision
towards renewable energy development and
deployment. Both the countries have jointly
undertaken projects in the area of renewable
energy, focusing on quality and reliability
testing of solar PV modules, solar mapping

20 | Energy Next | October 2015

 In conversation

energy development and deployment in the

automatic route. We expect low cost finance
and technical assistance particularly in the
areas where Germany has made significant
advances, like, renewables grid integration,
ancillary power markets, forecasting and
technical improvements to local-level
distribution systems.

How German involvement in RE

can contribute to “Make in India”
campaign of the Indian government
with focus on manufacturing of
equipment for RE?
Hannover fair in April 2015 witnessed
Hon’ble Prime Minister of India’s presence
where he expressed views on ‘Make in India’.
In his words the cooperation between the KfW, Germany has committed Euro 1 of action is dovetailing renewable energy
two countries ‘is not just about financial billion for creating Green Energy Corridors into powering cities in a big way. German
flows, new technology or products, it is also for evacuation of renewable energy from experience for large scale solar roof tops
about learning from each other; about seeing generation points to load centres. We could be useful in accelerating solar roof top
possibilities in new ways.’ Renewable energy expect additional low cost loan for creating programme in the Indian cities.
deployment plans make India a favorable transmission infrastructure for solar Parks.
destination for setting up manufacturing units We are working towards Indo-German Solar What steps are proposed to
that not only caters to Indian market but also Partnership that seeks cooperation in the facilitate trade and technology
meets the global requirement competitively. field of solar rooftops; the development of transfer the two nations in RE?
Indigenization and local manufacturing solar parks or solar economic zones; and Renewable energy technologies cannot be
are seen as very important tools for bringing solar off-grid applications to improve the developed in isolation- it seeks global efforts.
down the costs of solar power and achieving access to clean and sustainable energy. The skewed global distribution of intellectual
energy security goal. The current policies property rights could represent an obstacle
provide equal opportunities for investment How can the German experience to the speedier development of renewables.
in setting up manufacturing units by both and expertise be leveraged to If adequate research and development
national and international developers. It is promote off-grid solutions and platforms are established then situation
aimed at acquisition, mastery, diffusion and technology as well as development could be alleviated. Creating partnerships
indigenization & absorption of knowledge, of smart cities in India? between IPR holders and local technology
technology and skills by local actors in India. Under Indo-German Renewable Energy expertise would be required. Further,
Cooperation Renewable Energy Supply investment in renewable energy innovation
Rooftop solar as well as for Rural Areas (RESRA) Project is under space and creation of an atmosphere
upgradation of Green Corridor implementation. The project is expected to offer for pre-competitive research would be
(electrical transmission project) insights for accelerating off-grid deployment necessary. To address this important aspect,
has been two important areas including through new and innovative ways. we are encouraging targeted international
where India is looking to seek Smart energy that include smart meters, technology collaboration.
massive funding. How can demand response and renewable energy A beginning has been made with Germany.
Germany help in this regard? generation are important component for An MoU between National Institute of Solar
Please elaborate. powering the smart cities. The major area Energy (NISE), MNRE and Fraunhofer
Institute of Solar Energy (FISE) of Germany
The current policies provide equal for cooperation in various areas of solar energy
and Hydrogen & Fuel cells was signed in
opportunities for investment in April, 2013. Further under India–Germany
setting up manufacturing units by High Technology Partnership Group (HTPG)
alternative fuels has been identified as one of the
both national and international areas for cooperation. However, much more

developers efforts are needed, and we would welcome new

collaborations in this significant area.

October 2015 | Energy Next | 21

 SPECIAL ISSUE

Flexibility a key
paradigm for India
If India succeeds to deploy 175 GW renewable capacity until 2022, it will be
amongst the few countries in the world that lead the way into a renewable-
driven economy. However, India will not enter entirely new territory. Some
insights still exist to learn from pioneer countries in renewable development.
By Markus Steigenberger
become cost competitive with new renewable electricity generation outmatch
conventional technologies very soon. In investments in new conventional
Germany, already today new solar PV generation. And amongst the newly
installations and new wind turbines are at installed renewable capacity, 2/3rd are
the same cost level like new coal, gas and wind and solar. In Europe, it is almost 80
nuclear plants. per cent of all new investments.
Throughout the world, costs for The shift to wind and solar energy
renewable technologies differ greatly. brings about some challenges. Firstly,
Levelised costs of electricity (LCOE) for electricity generation from wind and
wind onshore and solar PV can easily solar obviously depends on the weather.
vary by the factor two or even three. If the sun shines and the wind blows, they
These differences cannot be explained produce plenty electricity, but in windless
ll Wind and solar will shape by technology costs, but rather by local times and during the night, they produce
future power systems circumstances. LCOEs depend to a little to none. Secondly, both technologies
The most obvious similarity between certain extent on local wind and solar have marginal costs of almost zero, but
the Indian renewable programme and conditions, but, even more important are very high upfront investment costs. In
the German energy transition is the so called soft costs, i.e. administrative other words: Almost the entire costs
technology choice. India intends to burdens or capital costs. occur right at the beginning, but once a
build 100 GW solar and 60 GW wind, wind or solar plant is installed, it delivers
Germany already has 40 GW solar and ll The flexibility electricity basically for free.
40 GW wind, and the German renewable challenge This brings about a paradigm shift in
energy law stipulates an annual growth Wind and solar energy are gaining how our power systems operate. Up to
of 2.5 GW of each. Other renewable more and more market shares. In fact, now, power plants were designed to either
technologies play a secondary role in both since 2013, global investments in new run baseload (i.e. 24/7), mid-merit or peak
countries. Indeed, India and Germany
confirm the views of many experts who Levelised Costs of Electricity in 2015
expect wind and solar energy becoming
the dominant technologies and shaping
future power systems.
There have always been good reasons to
install renewable energy like air quality,
less fuel imports, jobs, reducing CO2
emissions. While, hitherto, renewable
energy was relatively expensive, this
has fundamentally changed in recent
years:costs of wind and solar energy
decreased significantly, and they will

22 | Energy Next | October 2015

 PERSPECTIVE

load. In the future, less and less baseload Electricity generation and consumption in a
plants will be needed as variable RES reduce sample week
the number of load hours of conventional
plants. Instead, the residual power system
will need the ability to balance variable
electricity generation from wind and solar
installations. The key feature of future
power systems is flexibility.
It depicts electricity generation and
consumption in Germany in a sample
week with a share of 50 per cent RES. The
key challenge for the power system is to
cover the residual load (grey colour) in a
cost-effective and reliable manner.
It is thus not the question anymore if we
are able to install high shares of renewable very flexible, and in many cases hard significant. India, for instance, has relatively
energy sources at competitive costs. That coal plants can be retrofitted in order to large hydro resources, some gas plants and
is in principle the case – despite all local deliver flexibility; a huge fleet of hard coal plants that could be
differences. The key question is: How can • Flexible renewable generation: biomass/ retrofitted. However, flexibility options need
we run power systems with high shares of biogas plants can be run in a way to to be incentivised in order to deliver flexible
variable renewables in a reliable and cost- provide electricity when wind and solar do services to the system.
effective way? not deliver; all renewables (including wind In Germany, flexibility is predominantly
and pv) can contribute to ancillary services provided by the grid that allows to evacuate
ll Power systems with such as providing balancing energy; excess electricity and the remaining hard
high shares of wind and • Demand-side management: coal plants. Other options like gas plants,
solar this comprises the modification of flexible biomass plants, demand response,
As described earlier, wind turbines consumption patterns (e.g. load reduction hydro and other storage technologies
and solar panels have running costs of in critical hours or load-shifting from only play a secondary role so far. This
almost zero. Once, they are installed peak to off-peak hours); might change in the future as the German
they produce electricity basically for • Storage allows surplus power generation government is working on new legislation
free. Hence, from an economic point of (e.g. in times of high output from renewables to incentivise all flexibility options to
view, we should strive to use as much of and low demand) to be stored and participate in the market.
this electricity as possible. In times of subsequently realised in times of scarcity; Despite the fact that Germany’s flexibility
oversupply, conventional plants should • Power to-heat, power-to-x, renewables potential is hardly mobilised yet, already
reduce their generation first. Germany curtailment: once higher shares of today it is possible to operate the German
managed to keep the percentage of renewables have been achieved, moderate power system at certain times with very
curtailed renewable energy at the curtailment can reduce the flexibility high shares of renewables. The maximum
negligible level of 0.4 per cent in 2014 (at challenge (e.g. compared to expanding the share of RES in the German electricity
a total RES share of almost 28 per cent). grid to take up renewables generation at system so far occurred on 23 August 2015
Now that India starts to deploy wind and all times). Also, surplus generation can be between 12:00 and 13.00 hours when wind,
solar energy in large quantities, the flexibility utilized effectively in the electricity sector solar, hydro and biomass covered 84 per
of the system will soon become a key feature. is more closely linked with the heating cent of total demand, including 72 per cent
Fortunately, there is a wide range of different sector (power to heat) or other sectors variable generation from wind and solar. As
flexibility options, including (mobility, chemicals, etc.) this was German average, some distribution
• Grids and interconnection: linking Most power systems possess several of grids operated in this moment with up
neighbouring power systems enables these options, and usually the potential is to 100 per cent renewables. However, no
flexibility through access to a larger
resource portfolio and geographical
smoothing effects; Now that India starts to deploy wind
• Flexible conventional power
generation: flexible thermal power plants
and solar energy in large quantities,
are characterized by short start-up times, the flexibility of the system will soon
high ramping rates and low minimum
load levels; gas turbines are considered become a key feature
October 2015 | Energy Next | 23
 SPECIAL ISSUE | PERSPECTIVE

Electricity Generation and Consumption in overall system. Whenever new capacity is

Germany on 23 August 2015 added to the system, regardless if renewable or
conventional, additional costs occur from the
interaction with existing power plants. Usually,
the specific generation costs of the ‘old’ power
plants increase due to the reduction of their
full load hours. In the case of more wind and
solar capacity, this affects specifically baseload
plants (‘utilisation effect’). At the same time,
more flexible peaking and ramping capabilities
are needed (‘back-up’). Figure 4 illustrates the
different cost components.
While grid and balancing costs are relatively
well known, the costs from the interaction
with other power plants heavily depend on the
specific system itself. Obviously, the scale of
the utilisation effect is much higher in a system
with stagnant or even declining demand
like Germany than in a system with growing
reliability issues occurred, the system perspective. It is a key requirement to keep demand like India. And the more flexible a
remained stable. costs for consumers as low as possible – in system is, the lower the cost effect on other
newly industrialised countries like India as power plants. As systems with growing shares
ll System thinking well as in mature economies like Germany. of variable RES will need less and less baseload
reduces costs While actual technology costs of wind and plants and more flexible capabilities overall
In recent years, our understanding of how solar are not more expensive than conventional costs can be reduced by avoiding a lock-in into
power systems can integrate high shares of technologies anymore, there are other costs large baseload capacities.
variable renewables deepened significantly. that one has to keep in mind. First of all, wind The challenges for the Indian renewables
We have seen some small regions successfully and solar trigger additional costs for grid programme are huge, but not insurmountable.
operating their grids in certain times with up expansion and balancing. These costs vary New technical solutions and clever
to 100 per cent renewable electricity supply. from country to country, and they differ from regulatory schemes are needed. But, what
This should give us confidence in our ability technology to technology. In Germany, it is is equally important is the shift in mind-
to transform power systems and to install high assumed that another 5 to 13 EUR/MWh come set of the people and the understanding of
shares of renewables. on top of the generation costs, hence a relative the paradigm shift in the power system. To
However, what deems technically possible small amount. summarize, we can say that
might be challenging from a financial More relevant is the cost effect on the • Variable renewable electricity generation
technologies (wind and solar) will shape future
Different Cost Components of power system power systems as they are a cheap, easily
with growing shares of wind and solar energy accessible and clean source,
• Growing shares of variable RES will oblige
the entire power system to become much more
flexible than today,
• Contrary to common believe, power systems
with high shares of variable RES can be run
cost effectively and reliable,
• However, this requires a system perspective:
The more flexible the entire power system, the
more reliable and the less costly future power
system will be. Hence, deploying high shares of
wind and solar should go along with systemic
changes in the residual system.
The author is deputy executive director
of Agora Energiewende, a Berlin-based
philanthropic think tank focusing on energy
policy. He oversees Agora’s European and
International activities

24 | Energy Next | October 2015

 SPECIAL ISSUE | EXPERT VIEW

Fulfilling India’s RE dreams

The Ministry of New and Renewable Energy (MNRE) is working tirelessly to
achieve the ambitious renewable energy goals set by the Indian government.
While the task is challenging, the plan has been clearly laid out. Tarun Kapoor,
Joint Secretary, MNRE, provides an overview of the RE sector in India and
throws light on the government existing plans to achieve the desired goal
homes that live in darkness today. MW of grid-connected rooftop is being
Every day, With every step, scheme and proposed for the next 7 years. This capacity
regulation, the Ministry is actively working will be generated via the institutional sector
towards bringing about a smooth transition (hospitals, educational institutions, etc.),
to RE in India. industrial & commercial sector and the
Taking into account the fact that currently, housing sector, thereby targeting all types
the share of RE to the total installed capacity of spare roof space available in the country.
and electricity generation is 13% and 7%, For the target of 60,000 MW, we will use
respectively, the ambitious plans of the Medium & Large Scale Grid Connected
Government aims to increase the share of RE Solar Power projects, including projects in
generation from 7% to 18% by 2022, and to Solar Parks as well asthose connected to
achieve this goal the targets have been scaled spare sub-stations of distribution network at

T
upto 175,000 MW by 2022. This includes 33 KV and below by unemployed youths and
oday, as the Government of India 100,000 MW of solar capacity, 60,000 MW farmers and through projects on the land
visualises a brighter future for of wind capacity, 10,000 MW of Biogas and outside the solar parks.
the country, we at the Ministry 5,000 MW from Small-Hydro Projects.
of New and Renewable Energy Taking a holistic approach towards ll Current progress
(MNRE), share the Indian government’s goal increasing solar capacity, we will generate One could easily see the positive effect of the
of providing round the clock electricity for 40,000 MW out of 100,000 MW through National Solar Mission, which was launched
every citizen of the country by the year 2022 Grid connected rooftop projects and 60,000 in January, 2010, and accelerated the growth
through significant promotion of Renewable MW capacity through Large and Medium of solar power in the country, Today, we
Energy, bringing light to the innumerable Scale Solar Projects. The target of 40,000 have about 4232 MW installed capacity of

October 2015 | Energy Next | 25

 SPECIAL ISSUE

Gujarat (250 MW). A few more tenders of

500 MW each are expected to be announced
soon in the southern states of Karnataka and
Tamil Nadu and Uttar Pradesh.
With a view to achieving its goals, the
government has been making a sustained
and concentrated effort to seek investments
from both global and Indian players. The
first ever finance meet on RE in India –
RE-Invest, 2015, was held in February this
year, and aimed to reach out to investors.
The undeniable success of the meet was
a very encouraging sign, and as many
as 387 investors gave “Green Energy
Commitments” to develop 272 GW capacity,
solar power in the country. Keeping up the of JNNSM during 2014-15 and onwards. So while 30 banks and Financial Institutions
momentum, the Ministry has also launched far 150 MWp capacity has been allocated to gave their commitment to finance projects
various schemes to promote solar energy Ordinance Factory Board. aggregating to 70 GW. Additionally, 17
in India. Through these schemes, we are Yet another scheme, with the target of 50 companies also submitted commitments
constantly working towards achieving the MW canal top and 50 MW canal banks solar for setting up manufacturing facilities
goals set for the future. The government has PV projects, was launched in December, aggregating to more than 62 GW. Continuing
approved 1000 MW of grid connected solar 2014. All 50 MW canal top and 50 MW canal the finance meet with the investors, the RE
PV power projects to be set up by central banks projects have been allocated in 8 states Invest 2016 is scheduled to be held during
Public undertaking (CPSUs) and government and are currently under installation. 18-20 February, 2016 in New Delhi.
organization under Central/State scheme/ Displaying a healthy spirit of Cooperative
self use/ 3rd party sale / merchant sale under ll Achievements so far Federalism, Indian states have responded well to
viability gap funding under Batch-V of In the last few years, we have undeniably the call made by the Government, and as many
phase-II of JNNSM. So far, sanctions have seen record breaking progress, and come as 15 states have come out with Solar Policy
been issued for over 924.5 MWp of capacity much closer to fulfilling the Government’s supporting grid solar power and grid connected
under the scheme, while 250 MWp has been vision for Solar Energy in India. The period rooftop systems, while State Electricity
awarded and is under implementation. between 2011-12 and 2014-15 saw the Regulatory Commissions (SERCs) of 21 States/
Another scheme, titled “State specific VGF country’s solar capacity grow rapidly with a UTs have notified regulations for net metering/
scheme” proposes to set up 2000 MW grid CAGR of 38%. Currently, our solar capacity feed-in-tariff mechanism. It is expected that the
connected solar PV power projects under stands at around 4262 MW. Additionally, remaining states will soon follow suit.
JNNSM, Batch-III. This scheme has already the falling cost of modules has resulted in One of the key focus areas for us at
been approved and tenders for 750 MWp the electricity tariff for solar decreasing the Ministry is the financing mechanism
have been issued. We expect to issue the continuously, falling from Rs 17.51/kWh in working through banks, and to promote
tender for the remaining 1250 MWp shortly. 2010 to as low as Rs 5.05/kWh (in the recent solar rooftop, the Department of Financial
In February, 2015, the implementation bidding in Madhya Pradesh). Similarly, the Services has advised all Public Sector
of a project for setting up of 15,000 MW current tariff for wind power in India has Banks to provide loans for grid connected
of Grid Connected Solar PV power plants also seen a downward trend. rooftop solar systems as home loan/ home
through NTPC /NTPC Vidyut Vyapar The National Solar Mission also introduced improvement loan. Furthermore, the Reserve
Nigam Limited under National Solar mission the mechanism of reverse auction for setting Bank of India has also included renewable
was approved. Under this, the 1st phase 3000 up solar projects. These reverse auctions have energy projects under Priority Sector
MWp is under implementation and tenders so far been conducted in the states of Madhya Lending for which bank loans up to a limit
for 2,300 MWp have been issued. Pradesh, Telangana and more recently in of Rs. 15 crore to borrowers will be available
Going further back, in January, 2015, a Punjab. Quite interestingly, similar to the solar for renewable energy projects, including
scheme was launched to set up over 300 auctions in Madhya Pradesh and Telangana, grid connected solar rooftops and ground
MWp of grid connected and off-grid solar the lowest bid prices in Punjab came well mounted systems. For individual households,
PV power projects by defence establishments under INR6/kWh (US$0.09/kWh). One can the loan limit is Rs. 10 lakh per borrower.
under Ministry of Defence and Para Military certainly consider this an encouraging piece CEA has notified technical standards for
Forces under Ministry of Home Affairs of news for the solar sector. metering and Regulations for connectivity.
(MHA) with Viability Gap Funding (VGF). We plan to conduct similar reverse Supplementing these measures are certain
This scheme was launched under Phase II/III auctions in Maharashtra (500 MW) and innovative financing mechanisms, launched

26 | Energy Next | October 2015

 EXPERT VIEW

by the government in 2015 to promote RE

projects. The government is coming out with The government is also encouraging the
tax-free green bonds to enable low interest
rate funding for RE Projects. Furthermore,
setting up of Solar Parks and Ultra Mega
REC, PFC, IREDA, IDBI and private sector Solar Power Projects. A total of 25 Solar
banks have been asked to issue green bonds
to raise funding requirement for RE projects.
Parks with an aggregate capacity of
IREDA will bring out Green Bonds worth 20,000 MW have been planned
Rs. 2000 crore in near future.
The government is also encouraging the was also recently approved, and with the down an institutional structure, thus creating
setting up of Solar Parks and Ultra Mega introduction of this policy, the Government a framework for a transparent and effective
Solar Power Projects. A total of 25 Solar is attempting to replicate the success of the incentive structure.
Parks with an aggregate capacity of 20,000 onshore wind power development in the With the view of integrating RE energy
MW have been planned, of which 21 parks offshore wind power development. The into the national grid, the Government is also
in 17 states with capacity of 14,568 MW have policy will provide a level playing field to all rolling out a Green Energy Corridor Project,
already been approved. Another 10 GW investors/beneficiaries, whether domestic or with financial assistance from Germany.
solar capacity is planned to be set up through international. Already, investments worth Rs 33,000 crore
unemployed youths and farmers, thus Today, we are actively working towards are expected in Green Energy Corridors across
generating both power, and employment. realising India’s energy potential and goals. the country. We at the MNRE are working
Falling in line with the government’s The Renewable Energy Act, 2015, is being on developing a New Solar or Renewable
vision, Indian states have made a concrete formulated in consultation with various Zone Policy in which the accountability and
effort to promote RE, and states like Gujarat, stakeholders. It is important to understand responsibility for land acquisition will lie with
Punjab, Rajasthan, Haryana, Chhattisgarh, that in the given context, increasing the the developers of the proposed zones. We
Madhya Pradesh, Maharashtra, Tamil Nadu share of RE in the energy mix will require expect to be able to provide Rs 100 crore to
and Karnataka have taken various steps enabling policies to stimulate changes not states of Tamil Nadu and Rajasthan for setting
to improve the ease with which business only in policies related to RE deployment up of Green Energy Corridors.
concerning RE can take place. Significant but also in policies related to the planning In yet another promising move, the
investments have already been made in these of the complete energy system. The Government has also embarked upon the
states by Indian and global players alike. mandatory provisions after the enactment National Smart Grid Mission to bring
While Solar Power remains an of Renewable Energy Act will provide efficiency in power supply network and
important RE resource, the government the requisite backbone and framework to facilitate reduction in congestions and
has also provided various incentives that facilitate increase in the use of renewable outages. There are plans to set up 100
specifically promote the Wind sector. The energy for all relevant applications including Smart Cities in India. The Ministry plans to
Accelerated Depreciation was restored for electricity, heat and transport in an effective integrate its Solar Cities with these Smart
wind power to help increase wind capacity and coordinated manner. It will develop a cities. The government is equally committed
and GBI continues to be provided. The supportive ecosystem, well integrated with to promoting other RE sources such as small
National Offshore Wind Energy Policy the energy and electricity system, and lay hydro and biogas production.

ll The road ahead

In order to translate commitments into
implementation, MNRE is organizing
interactive meetings with Project
Developers/ Investors, Financial Institutions
and officials of various State Governments.
With these meetings, we want to chart out
the future course of action and interact
with prospective investors to understand
their requirements, concerns and to provide
the necessary policy support. We are also
working closely with state governments and
other stakeholders to streamline the RE
sector in the country, and so far, the response
received during zonal follow-up interactive
meets has been quite encouraging.

October 2015 | Energy Next | 27

 Special Issue

The Energiewende: A
lesson in good governance
Germany’s energy transition is usually thought of in terms of energy and
climate policy. The full history reveals, however, that it is a grassroots
movement that later became official policy. As such, it tells a tale of
governmental accountability. By Craig Morris
Merkel’s immediate closure of eight radiation. Leaf through documents from
nuclear plants that summer and her that year, however, and you see something
renewed commitment to renewables. else. People knew little about radioactivity
at the time. What you find is plans to build
ll A 40-year-old movement a nuclear reactor and a lead production
A case could therefore be made that the plant in a conservative rural community.
German government adopted a grassroots The government told these folks that
movement’s demands as official energy and industrialization would bring along good
climate policy. This reading would certainly jobs. The local farming community said, no
explain the Energiewende’s popularity. thanks, we already have some.
It would also be unfair to the German Government officials then informed
government, which played a crucial role, to the locals that they were going to get
not mention that it became less authoritarian industry whether they wanted it or
and more accountable to the public. not. The initial protests were small, but
Today, when we hear about the first images of the police brutality there led

C
German protests against a nuclear plant to national outrage. Quickly, tens of
onsider this: German from 1974, we expect to hear concern about thousands of citizens came in with the
energy and climate policy
has a popular brand, the
Energiewende. How did the
German government manage to get the
public to like its ideas?
The short answer is: they didn’t. The
term “Energiewende” was coined in the
1970s in a grassroots movement. It was
the title of a book published in 1980 by
Germany’s Institute for Applied Sciences
(Öko-Institut), a research group that
came out of the movement. The term
finally entered common governmental
jargon in 1998, when the coalition of
Social Democrats and Greens took
office under Chancellor Gerhard
Schroeder. It practically disappeared
from governmental speech under newly
elected Chancellor Angela Merkel starting
in 2005. After Fukushima, Merkel made
the Energiewende a top priority in 2011,
leading many onlookers to mistakenly
conflate the term itself with Chancellor

28 | Energy Next | October 2015

 Grassroots Analysis

goal of overwhelming the police force.

Local police officers pleaded with their
superiors not to order them to act against
their neighbors. Church officials pleaded
with both sides not to do anything they
would regret at church on Sunday. Here,
we see the early conservative roots of the
Energiewende, which was never just a
left-leaning green movement. It always
encompassed all of society.
Pastor Gerhard Richter was one of those
calling for non-violence. Not an opponent
of nuclear, he clearly sympathized with
the protesters in one respect: “We faced
an arrogant economic and political power.
In my opinion, it was more interested in
profits than in serving people’s needs,” he
remembers. Those protests have something
in common with today’s conservative rural
communities protesting against fracking in
my home country of the United States. In
both cases, locals feel that the risks will be
socialized; the profits, privatized.

ll Governmental risk of radiation from nuclear plants. April, the government proposed strict rules,
accountability today After the accident at Chernobyl in 1986 which were understood both as an approval
Of course, radioactivity quickly entered in the Ukraine, practically everyone did. of and a ban on fracking. Technically,
the foreground of the debate. By the time But the original focus on governmental you might say fracking can go ahead any
the accident at Three Mile Island happened accountability to the public is still visible in time – as soon as you find a community
in 1979 near Pittsburgh on the US East the German government’s stances today. that wants it. German energy expert Harry
Coast, many Germans knew about the For instance, in 2012 Berlin announced Lehmann says such an approach is typical
a new law for carbon capture and storage of German policymaking: “We tend to
(CCS). It contained strict conditions refrain from outright bans, which can
for the technology, which was not bring about fierce corporate opposition.
blocked outright – though the effect was Complicated legislation that makes the
a ban. The government intended that business environment unattractive is
effect, and the rationale is telling. As usually more effective.” But the point is not
then-Environmental Minister Altmaier to make Germany bad for investors, as the
explained, “We cannot store carbon country’s economic performance testifies.
dioxide underground against the will Rather, the common good and corporate
of the population. And I do not see any profits sometimes conflict. The German
political acceptance in a single German government frequently sides with the
state for CCS technology.” public. Yet, German industry roars on. A
Fracking has been dealt with similarly. In healthy balance of interests is possible.

A case could therefore be made that

the German government adopted a
grassroots movement’s demands as
part of the official energy and climate
policy of the country
October 2015 | Energy Next | 29
 Special Issue | Grassroots Analysis

ll What can emerging

countries learn from this? Forty years ago, most Germans didn’t
India can learn both from Germany’s
success and shortcomings. First, anyone
know what radiation or renewable
investing in renewables today faces much
lower costs than Germany did. The price
energy was but today Where else
of solar in particular has dropped by 80 but in Germany can you talk about
percent in the past five years. Likewise,
German utilities failed to see renewables renewables with taxi drivers
coming – a mistake no utility would make
today. The lesson for utilities today is to Gurría, Secretary-General of the OECD, small; only an eighth of the investments
jump on the renewable energy bandwagon put it in 2014: came from utilities. India is currently
or get run over by it. “What is noteworthy about Germany’s planning gigantic solar arrays, and they
Second, there are financing lessons. For approach is that it has been more sustained and should be built. But let’s not underestimate
example, renewables require upfront cash, consistent than that of many other countries, the tremendous potential of countless
which citizens may lack – in particular in which have been forced into complete U-turns distributed systems.
countries poorer than Germany. But let’s in their energy transformation by pursuing Does the average citizen know enough?
not overstate the problem; renewables are needlessly costly policies.” Maybe not now, but let people build and
highly scalable. People can begin with the Fourth, conventional energy sector invest, and they will teach each other. The
systems they can afford. They will add experts and policymakers tend to believe Energiewende has been a learning curve
on more as these investments increase that the fastest progress will come from for everyone – the public, policymakers,
their standards of living and incomes. To large central power stations. The UK is and utilities alike. Forty years ago, most
encourage this process, governments need currently considering construction of Germans didn’t know what radiation or
to streamline paperwork and facilitate a new nuclear plant to be completed in renewable energy was. Today, Christine
low-interest bank loans – two things the seven years. It would cover seven percent Lins, the Austrian head of international
German government also did. of domestic power demand. In contrast, renewable energy organization REN21, says
Third, support for the Energiewende the share of renewable energy in German the German public is renewables-savvy:
across party lines has allowed successive electricity supply grew by 12 percentage “Where else but in Germany can you talk
governing coalitions to provide great points in the seven years from 2008 to about renewables with taxi drivers?”
policy certainty for investors. As Angel 2014. Most of these systems were quite Policymakers everywhere want to
improve public education and provide
training for the skills needed tomorrow.
Strengthening economic growth is
crucial, as is making it environmentally
sustainable. Germany has created some
380,000 jobs in renewables, roughly twice
as many as work in in the sector of coal
mining and conventional fuels. Not leaving
rural communities behind in the process
is a challenge, but distributed renewable
energy is ideal in providing access to
clean energy – and often much cheaper
than grid expansion. Another common
goal is making democracy stronger. There
is a policy that does all these things. It’s
called “Energiewende.” Best of all, as a
nice side effect, you get cleaner energy and
mitigate climate change. No wonder the
Energiewende is so popular.
He is the lead author of German Energy
Transition. He directs Petite Planète and
writes every workday for Renewables
International. He is currently co-authoring
a history of the Energiewende with Arne
Jungjohann to be published in 2016

30 | Energy Next | October 2015

 Waste Energie
to aus
Energy Abfall

Projects, Plants and Network

Simple & Efficient Solutions on Waste Management
With Trusted German Technology
Over 40 Years of Experience in Business & Management in Germany

“Swachh Bharat – Clean India”

Our Aim Our Mission
To clean India and To GREEN our
generate electricity future with
from waste renewable energy

Contact us:
Kirchenbungert 1 0
54292 Trier, Germany
Phone: +49 0651 995 6279 | Fax No: +49 0651 995 6203
Mobile: 0151 46329110
Email: [email protected] | Web: www.sgmcranes.com
 Special Issue

The energy turnaround &

technological progress
Worldwide the energy turnaround improves on its own successes year in, year
out. Progress in renewable technologies is boosting development more and
more and in recent years has once more greatly accelerated their expansion.
Dr. Hermann Falk talks about the current challenges faced by Germany is
facing in its transition from conventional to Renewable energy

renewables generate jobs and growth cost reductions, process improvements

worldwide, with especially strong regional and increases in system performance and
value creation. Climate protection also efficiencies. Wind turbine and hydroelectric
benefits, of course, in that renewable power plants made in Germany are a major
energies are the most important resource export. In many countries solar power
for clean air and a clean environment can already be produced more cheaply
worldwide. According to the International than power from coal. In addition, it can
Energy Agency (IEA) two thirds of the usefully be consumed when it occurs - for
emissions that cause climate change airconditioning at noontide and without
are accounted for by the energy sector. any storage requirement.
Decarbonising this sector is absolutely Many new tasks and therefore fields of
essential. However, climate change is operations have also been created in the
not just a matter of ecology, but also of course of restructuring energy supplies
economy. The success story of renewable towards a more decentralized system on the

W
energies, however, is based mainly on the basis of clean, renewable energy sources.
ind and solar energy, fact that they represent the right direction According to IRENA 7.7 million people
which in 2014 reached technologically and economically. now work in the renewable energies field
record global expansion Technology has made enormous leaps worldwide. In a few years this number is
values, have benefited forward and will continue to do so - if only likely to rise to 10 million. For Germany alone
most. Increased by 48 times within because the market is constantly throwing a recently published study by the Federal
10 years, by the end of last year the up new ideas. The technological progress of Ministry of Economics predicts over 230,000
world’s photovoltaic output had risen to recent decades has resulted in substantial net new jobs created by 2050. Today there are
177 gigawatts. At the same time wind
contributed 370 gigawatts to clean power
generation internationally, which represents
an increase by a factor of eight.
Around a quarter (5,400 terawatt hours)
of electricity generation worldwide is now
derived from clean energy sources. The
massive global expansion of clean energy
sources has helped to ensure that for the first
time economic growth has been uncoupled
from emissions of harmful air pollutants.
That’s good news for the energy
turnaround, which is an irreversible
process. It’s also good news for economic
development and prosperity, because

32 | Energy Next | October 2015

 Good Intentions & Challenges

about 371,000 jobs. In India 437,000 people

work in the renewables sector.
The term Electricity Market 2.0
Only environmentally-clean energy covers a range of measures which
generation will enable developing and
emerging countries to generate economic will ensure secure and reliable
success without having to suffer the well-
known consequences of environmental and
energy supplies even under
air pollution and global warming. Renewable fluctuating feed-in conditions.
energy and energy efficiency are the only
reliable ways to achieve the decarbonisation Flexibility is the keyword, bringing
of the energy sector before it’s too late, and
with reasonable costs and risks.
together the production and
This is why the figures which REN21 consumption of the future
presented this summer are good news.
According to the 2015 Global Status producing good results. Based on good wind guaranteed. A number of flexibility options
Report there is a high level of investment yields, in the first six months of this year are already available, including large and
worldwide in renewable energies. From renewables contributed about a third of the small storage facilities. Their rise has been
2013 to 2014 investment rose by 17 percent country’s power supply. This is better than remarkable. In just a few years the number
to around 270 billion US dollars. If large ever before, but should not be allowed to of domestic storage batteries installed in
hydropower plants are included in the disguise the imbalance between the individual Germany has risen to over 20,000. This positive
calculation this figure rises to 301 billion sources. Renewable heating and climate- development has been driven forward by a
US dollars. Last year twice as much was friendly mobility continue to lag well behind dramatic decline in prices and the desire of
invested in renewable generating capacity the targets which have been set. However, it many householders for greater independence.
as in fossil fuel sources, which means that will not be possible to exploit anywhere near The higher the proportion of renewable
for the fifth year running the net investment the full potential of the energy turnaround energies is, the more they need to take
in renewables exceeded investment in without the interlinking of electricity, heating responsibility for the entire system. System
conventional fuels. And there is more. and transport and without a mix of different transformations and flexible structures
In developing countries the increase in renewable energy sources. It is therefore support them in this and are the basic
investment was as high as 36%, resulting in the special responsibility of the Federal requirement for reaching the target, which
a total of 131 billion in 2014. Government to regenerate momentum in the the power supplies exclusively from clean
This momentum must not be interrupted. expansion of renewables. energy sources no later than the year 2050.
It is the task of governments to support The transformation of the energy Accordingly the expansion of renewables
it with suitable conditions so that the system is well under way. If our energy is must correspond to a reduction in coal and
decarbonisation of power generation can produced not by a few large power stations nuclear power generation. The risks of nuclear
succeed by the middle of this century. but by millions of producers distributed power are huge and are just as difficult to
The energy turnaround has much more throughout the country, when it no longer control as it has been to solve the problem
potential than is currently exploited. This is takes place right round the clock but is of disposal. Coal from open-cast mining is a
particularly evident in Germany, which for mainly dependent on the sun and the wind, major source of damage to the climate, and is
many years has been a pioneer in the energy we need to ensure security of supply in totally unsuitable for sustainable and future-
turnaround and now enjoys twice the a different way from before. Germany is oriented energy supplies.
industrial added value than the USA, for currently setting a new course, in order to It is no longer a question of ‘if ’. It’s just
example. It was here that the success story take the changed circumstances into account. a matter how quickly the transition to
began, based largely on the introduction The term Electricity Market 2.0 covers a renewable energies can be created in a
of the Renewable Energies Act (EEG). range of measures which will ensure secure cost-efficient and reliable way. Renewable
145 countries have now established policy and reliable energy supplies even under are already helping to create value and to
frameworks which support and accelerate fluctuating feed-in conditions. Flexibility protect the climate. They create jobs, bring
the development of renewable energies. This is the keyword, bringing together the energy and prosperity even to remote
is the basis which has enabled this record production and consumption of the future regions and are the only way to ensure the
global expansion. while at the same time describing new energy long-term preservation of an environment
However, while other countries move supply objectives. This applies to the markets which will be fit to live in.
forward, developments in Germany are as well as to producers and consumers. The author is the Executive Director of Germany’s
not going so smoothly. The expansion of Production and consumption can be Renewable Energy Federation (Bundesverband
Erneuerbare Energie)- BEE. He graduated in Law at
photovoltaics and bioenergy has almost coordinated with the help of a range of the University of Saarbrücken and at the University
collapsed, and only the wind sector is still instruments and a constant supply can be of Tübingen

October 2015 | Energy Next | 33

 Special Issue

Fostering technological change

by bilateral cooperation
A multi-pronged technology cooperation policy has been initiated under
IKI initiative including demonstration projects, policy advisory and capacity
building. Christoph Blaschke gives an overview of ongoing cooperation with
India with focus on renewable energy and energy efficiency which supports
India in the implementation of a progressive climate policy
is the technology cooperation in the field other developing and newly industrializing
of renewables and efficient use of energy. countries who want to reconcile socio-
This includes projects that strengthen the economic development and the challenges of
investment activity of the private sector climate change and environmental stress.
and mobilize additional public and private An expanding number of countries
funding in climate-friendly technologies by recognize that private and industrial
lowering corresponding investment risks in investments on a very large scale in solar,
the partner countries. wind and efficient use of energy are a
prerequisite for the affordable achievement
ll Creating a policy of climate neutral and livable communities,
framework for a strong businesses, states and regions, and, at the
renewable powered same time, create vast opportunities for
economic development sustainable economic activities. Climate
India’s increasing ambition in the deployment change responses and solutions generate new

T
of renewable energy gives recognition to opportunities and co-benefits by creating
he International Climate Initiative the vital role of solar and wind energy in jobs, spurring economic development and
(IKI) of the German Federal avoiding carbon emissions and is underlined improving air quality.
Ministry for the Environment, by the increase of medium-term target for The German Energiewende (energy
Nature Conservation, Building solar energy to 100GW. The decision to transition) has demonstrated that with
and Nuclear Safety (BMUB) has been transform its energy sector by increasing courageous enabling regulation and financing
financing climate and biodiversity projects in the share of use of renewable energy in frameworks, a combination of demand pull
developing, newly industrializing countries electricity generation consistent with its goal and technology push policies, a virtuous circle
and in the transition countries since 2008. The of 175GW of renewable energy by 2022, is of technology investments and that reduction
IKI supports efforts towards a comprehensive becoming a significant reference point for in costs can be unleashed and ultimately lead
global climate agreement, forms part of
the German climate financing, and fosters
synergies between climate protection and
biodiversity conservation.
Together with the partnering countries new
political, economic and regulatory approaches
are developed and lighthouse projects and
cooperation models implemented. Focusing
on solutions that can be widely replicated,
the funded concepts are supposed to have
a clear multiplier effect. The close political
coordination with the partner countries
ensures that the IKI projects are developed
and tailored to their specific needs.
Important thematic priority within the
area of mitigation greenhouse gas emissions

34 | Energy Next | October 2015

 Overview RE&EE

to exponential growth rates in the deployment

of zero emission technologies. These policies
The hope for limiting global warming below
that have been adopted by a number of other 2°C rests to a great extend in a rapid and
European countries caused important shifts of
investment flows at global scale, lowering the
massive shift of investment flows to solar,
Levelized Cost of Electricity (LCOE) of solar wind and efficient use of energy
technologies in many regions to the same
level or below that of unsubsidized fossil fuel website, launched with support of this energies into the Indian electricity system)
based electricity generation. project, encourages the rapid expansion of aims to encourage the broader use of
The hope for limiting global warming the solar power sector in India by providing decentralized photovoltaic systems on
below 2°C rests to a great extend in a rapid information and latest updates on policy building rooftops and supports the efforts of
and massive shift of investment flows to solar, and regulatory frameworks, contractual the Indian Ministry of New and Renewable
wind and efficient use of energy. Investment agreements (PPA/PSA) and procedural Energy (MNRE) in implementing appropriate
decisions in solar and wind infrastructure requirements to project developers and other regulatory and financial frameworks.
depend largely on a favorable and stable, stakeholders. This includes the analysis of technical
i.e. risk-mitigating, policy environment as Under the SolMap (Solar mapping and requirements of (future) distribution systems
prerequisite for substantial capital availability monitoring) project the establishment and funding mechanisms to increase the
at modest average cost of capital. of a comprehensive country-wide solar proportion of energy from de-central
A number of ongoing and past IKI projects measurement and monitoring programme renewable resources.
support the creation of policy frameworks for has been supported to provide reliable data on
a strong solar- and wind-powered economic solar irradiation and the performance of solar ll Facilitating climate
development by the Indian government power plants currently in operation. With the action implementation by a
in order to create new opportunities for installation of monitoring stations for solar multiplicity of entities on
progressive public and private entities. radiation at 120 sites it has been build up one the ground
The ComSolar project is supporting the of the largest national networks of precision While adequate regulatory frameworks
development of solar energy in both urban solar radiation measurements worldwide. The have to be in place and financing mechanisms
and industrial zones by feasibility studies, Indian Solar Radiation Atlas published in the have to be established and refined over
technology transfer, information campaigns context of the project will also contribute to time, another important aspect of the
and comprehensive capacity building for IRENA’s Global Renewable Energy Atlas. transformative challenge of the Energiewende
the project partners. The Solar Guidelines The I-RE project (Integration of renewable has to be addressed. Climate action at the

October 2015 | Energy Next | 35

 Special Issue | Overview RE&EE

Successful dual strategy described, enabling entities on the ground, should serve as a
model to create new alliances on climate
policy and financing frameworks along with and renewables policies in both countries
specific implementation support should and intensify cooperation on climate and
energy technology issues.
serve as a model to create new alliances on The International Climate Initiative
climate and renewables policies (IKI) of the German Federal Ministry for
the Environment, Nature Conservation,
required scale has to be implemented by electricity requirements by procuring 500MW Building and Nuclear Safety (BMUB) is
a multiplicity of actors on the ground, solar power through a long-term power prepared to further support India in its
contracting authorities and customers, purchase agreement with a developer. effort to develop and deploy renewable, in
which are supposed to take informed The first pilot plant of 400kW for KSCA particular solar, energy technologies and
and provident decisions with long-term has been inaugurated on 15 April 2015 on to create attractive framework conditions
impact on greenhouse gas emissions. With top of the famous M. Chinnaswamy Cricket for progressive public and private
energy generating and consuming urban Stadium in Bangalore. KSCA intends to sector actors who are ready to invest in
infrastructure locking in emissions for increase the capacity to the full potential of the Indian energy transition. German
decades, public and private institutions need the roof (1.3MW) and solarize other stadiums financial institutions are key partners
a long term vision and adjust their investment owned by them in other cities. The successful to leverage investment in sustainable
planning accordingly. implementation of the project has amplified renewable energy technologies in India.
In view of the challenges of climate the interest of Sports Authority of India, The existing and successful dialogue
change and – concurrently – the window Ministry of Youth Affairs and Sports along for a of the Indo-German Energy Forum
of opportunity that has been opened by with Ministry of New and Renewable Energy and the Indo-German Environment
technological change, state and city level (MNRE) to solarize other stadiums and to Forum extensively support sustained
entities are confronted with a growing level encourage all sports authorities in the Indian partnerships and knowledge-sharing on
of complexity and interdependence of their states to install rooftop solar plants through climate and energy technology issues and
decisions. Cities are among the biggest Solar Energy Corporation of India (SECI). foster stronger integration of all actors
emitters of greenhouse gases but, at the concerned with bilateral cooperation in
same time, they are coming ready to act in ll enhancing bilateral this field.
a leading position as they can tap multiple partnership and
The author is an advisor for the Federal
co-benefits by doing so, from job creation cooperation on climate Ministry for the Environment, Nature
and improved air quality to improved and technology Conservation, Building and Nuclear Safety
livability in their ambits. The successful dual strategy described in Berlin, Germany. He is serving as an
advisor for energy system decarbonisation
The support of state, regional and city above, i.e. creating enabling policy and strategies in international climate policy in the
level entities to harness new technologies, financing frameworks along with specific Federal Ministry for the Environment, Nature
policies, financing mechanisms, and implementation support for sectoral Conservation, Building and Nuclear Safety.

economic incentives to build up low carbon

sustainable infrastructures can trigger
important investment activity and accelerate
the necessary change processes decisively,
as the experiences from ongoing policy
advisory activities under ComSolar project
demonstrate. The project supported, for
example, Delhi Metro Rail Corporation
Ltd. (DMRC) and Karnataka State Cricket
Association (KSCA) to integrate rooftop solar
energy systems in their infrastructures by
providing techno-commercial advisory.
While the first pilot project for DMRC of
500kW capacity has been inaugurated back in
August 2014, its success has kicked off a series
of new initiatives, which have led to an installed
capacity of currently 2.8MW and signed
agreements for additional 7MW. Furthermore,
DMRC is considering covering their entire

36 | Energy Next | October 2015

 Special Issue | Economics: the good & the bad

All to be encouraged
to invest

With the on-set of energy turn-around in Germany, the financial markets too
witnessed significant challenges to accommodate the renewables. Prof. Claudia
Kemfert, analyses the economic opportunities that have flooded the clean sector
highly important project. The energy also requires effective load management
turnaround project aims to increase in which supply and demand are
the percentage of renewable energy in harmonised. All these developments will
electricity production from around 28 bring about enormous innovations as
per cent today to 80 per cent by 2050. investment opens up future markets.
The remaining nuclear power plants, the The objective of the energy turnaround
majority of which are in use in the south policy is thus to convert the energy
of Germany, will be shut down by 2022. system: more decentralisation, flexibility
Moreover, it aims to improve energy and dynamism, including smart grids, an
efficiency by making both buildings and optimal control of supply and demand,
transport more sustainable. The energy and more storage in the medium term.
turnaround should therefore lead to Currently, however, there is massive

I
sustainable long-term energy supplies. power-supply overcapacity as a result
n times of falling oil prices, Energy generation structures will of old coal and nuclear power plants
fears of deflation and disputes change considerably, towards more as well as, at times, renewable energy.
concerning EU austerity we are decentralised energy supply structures Overcapacity leads to falling electricity
losing sight of an important ‘energy in which renewable energy, cogeneration prices on the stock market, and cheaper
turnaround’ project which, according systems, intelligent distribution and electricity exported from Germany.
to the federal government is still a storage solutions are interlocked. This However, only a very small portion of

October 2015 | Energy Next | 37

 Special ISSUE

the energy is actually “given away” at

negative prices; in 2012 this made up
The business model necessary for the
a mere 0.03 per cent of the electricity energy turnaround is not profitable due
supply. Nevertheless, the oversupply and
low market price has consequences: The to the massive power supply surplus
efficiency of conventional power plants and the associated low current energy
is diminished. For this reason and due
to the fact that the CO2 prices are at prices, including the currently required
historically low level, lignite-fired power
plants are currently still economical.
innovative and flexible gas power plants
Therefore, the use of lignite-fired power and pumped storage power plants.
plants has risen, and with this so have
the greenhouse gas emissions. Therefore, supply surplus, they also produce too coal-fired power plants disappeared from
the business model necessary for the many greenhouse gases. In addition, they the market, a double dividend could be
energy turnaround is not profitable due are too inflexible in combination with achieved: the market would be adjusted,
to the massive power supply surplus renewable energy. Contrary to claims the electricity prices on the stock market
and the associated low current energy by coal supporters, coal power plants could rise and climate targets could be
prices, including the currently required are not suitable as bridging technologies achieved.
innovative and flexible gas power plants for a sustainable energy policy. Gas The local authorities are the key
and pumped storage power plants. power plants are much more suitable players in the implementation of the
If the federal government also because they are more flexible than coal energy turnaround. Energy savings in
means to take the objective of climate power plants and produce fewer harmful public buildings also have a role to play,
protection seriously, there must be greenhouse gases. But these new, efficient as do the promotion of public transport
significant contributions made to gas power plants, which are so important or of inner cities free of CO2. The
reducing emissions, especially in the for the energy turnaround, are not taking energy turnaround is being successfully
electrical energy sector, as well as in the off because they are not profitable. implemented in municipalities by
construction and mobility energy sectors. Instead of paying new subsidies for electro mobility, targeted promotion of
This can only happen if particularly fossil energies, the electricity market pilot programs for the development of
inefficient old coal power plants are should be tidied up. It is only by market renewable energy, and the promotion of
replaced with renewable energy and adjustments that sufficient scarcity prices combined heat and power plants. But it’s
cogeneration, as well as gas power on the electricity market will again be equally necessary to create transparency,
stations. Old, inefficient coal-fired power achieved, so that the situation can be in order to provide improved information,
plants not only provide a huge power- improved. If the oldest, least efficient education, or the training of decision-
makers and consultants. The economic
opportunities for local communities are
many: In addition to direct added value
and the creation of new jobs, which can
come about from new companies in the
renewable energy sector, for example,
indirect value-added effects can also be
generated. There are now an increasing
number of communities that are actively
and de-centrally implementing the
energy turnaround, and will benefit from
it. Furthermore, enormous amounts of
energy, energy costs and greenhouse gases
can be achieved through improved energy
efficiency in buildings.
At present, the energy turnaround is
affected by a large percentage of private
individuals; this is where 50 per cent of
total investments in renewable energies
originate. Above all, the number of energy
cooperatives is rising rapidly. Energy

38 | Energy Next | October 2015

 Economics: the good & the bad

cooperatives are a form of “civil power”. objectives are pursued by the investment. make unused roof areas of public facilities
The project is referred to as citizens’ power, The main motives of many citizens are available for photovoltaic systems, also has
in which citizens or local firms invest their environmental protection and advancing a positive effect. The majority of energy
own capital in renewable energy systems. the energy turnaround, although financial cooperatives are located in Bavaria, Baden-
Citizens’ energy projects are therefore, motives can’t be entirely disregarded. Württemberg and Lower Saxony and in
thanks to their scale, an essential part of the As part of the “bottom up” energy rural areas within these provinces. Thus
energy turnaround in Germany. Citizens’ turnaround, numerous energy cooperatives a renaissance of the idea of the current
energy projects currently make up about 33 have been founded in Germany in recent co-operatives, which have a long history in
GW and thus 46% of total installed capacity years. In particular after 2006, a real start- Germany, can be spoken about.
of onshore wind, photovoltaic and biomass up boom began: The number of energy However, the annual growth of energy
facilities. In particular, citizens’ energy cooperatives founded under the umbrella cooperatives has recently decreased, this
projects increase acceptance of the energy of the German Cooperative and Raiffeisen is mainly due to changes in the promotion
turnaround. The motivation of citizens to Confederation in 2006 was only 8; two of renewable energy. The initial start-
participate in renewable energy projects can years later, there were already 43, and in up boom is flattening progressively;
follow financial or non-financial objectives, 2010 already 111 cooperatives per year. in 2013, only 129 energy cooperatives
according to a study. The regional The peak was reached in 2011 with 167 were established. Energy cooperatives
investment interests or ethical-ecological newly established energy cooperatives. often have a high equity capital ratio.
investments are the most important factors Volksbank and Raiffeisenbank therefore The DGRV 2013 survey results showed
for some investors, so that they play an important role as initiators of that at the time of establishment, around
are partly willing to forgo returns energy co-operatives. Cooperation with half the energy cooperatives required
if certain social or environmental the local authorities, who, for example, no external funding. The latest DGRV
survey (2014) indicates that almost a
quarter of the cooperatives are fully
As part of the “bottom up” energy financed by their own resources. If
necessary, external capital is mainly
turnaround, numerous energy provided by the cooperative banks (51 per
cooperatives have been founded in cent) or through state subsidies (34 per
cent), in particular the Reconstruction
Germany in recent years, in particular Loan Corporation (Kreditanstalt für
after 2006, a real start-up boom began Wiederaufbau, KfW).

October 2015 | Energy Next | 39

 Special Issue | Economics: the good & the bad

Reliable political conditions are the Reliable political conditions are the
decisive preconditions for investors. In
particular for civil energy cooperatives, the preconditions for investors. For the
existing system for promoting renewable
energy via the EEG has provided great
civil energy cooperatives, the existing
security for investors. When changing system for promoting RE via the EEG has
from fixed feed-in tariffs to direct
marketing, in principle the operator
provided great security for investors
risks rise, including in particular energy to supplier diversity losing out to large, The energy turnaround is currently
cooperatives. Direct marketing applies to strategically operating companies .The primarily a “bottom-up energy turnaround”,
all new plants from 500 kilowatts as of 1st conversion of the promotion of renewable a citizens’ energy revolution, which
August 2014 and for all new plants of 100 energy to pure tender thus represents a increases its acceptance significantly in the
kilowatts as of 1st January 2016. major threat to citizens’ energy projects. general population. The large percentage
Furthermore, by 2017 the subsidy level Therefore, it is vital that the tender of citizens’ private capital in particular also
for EEG plants is to be determined through arrangements should have no discriminatory stimulates competition. These opportunities
invitations to tender. So far, there are few effects and lead to a real cost efficiency. should not be jeopardised by making
experiences with the newly introduced conditions for private investors and energy
tendering model. There has already been ll Conclusion cooperatives more difficult. Not only
some - predominantly rather negative The energy turnaround offers tremendous would the previously successful progress
- experience gained from 2015 in the economic opportunities. Even today, there of the energy turnaround be threatened,
tendering procedure in a pilot phase for are five times as many workers employed but above all general acceptance, which
ground-mounted photovoltaic systems. It in the renewable energy sector than in is so important for the successful
emerged that strategic bidder behaviour the coal industry. If we included not only implementation of the energy turnaround,
was visible and only a few large investors the field of renewable energy but also that would be endangered.
could profit. This correlated with previous of energy efficiency, there would be far
The author is a German economics expert in
experience, that a tendering procedure more employees. The power system must the areas of Energy research and Environmental
associated with high transaction and become more flexible, intelligent and protection. She is a Professor of Energy Economics
financing costs counteracts the higher cost holistic. For this purpose smart grids and and Sustainability at the Hertie School of Governance
in Berlin. She heads the Energy, Transportation, and
efficiency of tender. On the other hand, medium-term storage are required rather Environment department at German Institute for
tendering models can - in principle - lead than fossil energies and old structures. Economic Research (DIW Berlin).

40 | Energy Next | October 2015

 Special Issue | Job Opportunities

Is energy turnaround a
job-creating machine?
By 2050, Germany plans to reduce its CO2 emissions
by 40 per cent compared to 1990 levels. The trade
unions in Germany are committed to ensuring that
these goals are achieved. Many desirable, new “green
jobs” are often mentioned in this context. But is the
energy turnaround really a “job-creating machine”?
And what will be the quality of these new jobs?
Stefan Körzell explains

ll How structural energy industry in the long term and with the consequence of the energy turnaround, but
change has an impact on right social balance. We also need to consider was instead one result of the liberalisation of
employment in the energy the structural changesthat began in the 1990s the energy market in Germany, the scheduled
sector and are still continuing. end of coal production, and the restructuring
The 2000 Renewable Energies Act (EEG) To the present day we can’t really talk of an uncompetitive energy industry in
led to far more wind and photovoltaic about a “job machine” if we consider the East Germany, which shrank massively
projects than had initially been expected. following two points: after reunification. Even before the boom
The incentives provided by this law l7ed to in renewable energies in the early 2000s,
the renewable energy targets being achieved l In the 1990s, Germany’s traditional energy Germany was already undergoing structural
well before the planned deadline. The target industries (lignite, hard coal and gas) saw change associated with a significant decrease
of 30 per cent renewables in the electricity massive layoffs. Only some 200,000 of the in employment. All of this had and continues
mix is now within reach. However, the approx. 400,000 jobs in the industry in 1990 to have an impact on those regions that were
EEG has also triggered a worldwide boom are still available. This, of course, was not the dependent on mining and on coal-fired power
in renewable energies. Wind turbines and
photovoltaics, in particular, have become
so inexpensive that they can now compete
with newly built gas or coal-fired power
plants. And these technologies are even
finding their way to poorer countries,
another welcome side effect of falling prices.
In Germany the energy turnaround is
having an effect on the labour market. And
the growth is impressive: thanks to the
construction and installation of renewable
energy facilities, the number of “green jobs” has
risen from 225,000 in 2006 to approximately
400,000 in 2012. At first glance this is a truly
unique success. However, the situation is a
little more complicated because an energy
turnaround doesn’t simply mean modifying
electricity supplies by adding renewable
sources. It’s also about restructuring the entire

October 2015 | Energy Next | 41

 Special Issue

generation. This problem will continue to

occupy us in the next few years.

l The solar industry in Germany has

been one of the big winners in the boom in
renewable energies since the early 2000s.
Between 2006 and 2012, employment in this
sector has jumped from 40,000 to 114,000
jobs. Since 2013, the number began to drop,
however, because the solar industry in
Germany has proved to be uncompetitive
against very strong competition, particularly
from Asia. The German government has failed
to implement an industrial policy which would
have enabled higher-quality production.
The unions want to make sure that the
energy turnaround does not prove to be efficiency, and use more renewable consulting and carry out high-quality
a “job-killer”. If traditional jobs in the energies in the process. Increased energy renovations.
energy industry disappear, the process efficiency is the neglected second pillar of
must be accompanied with corresponding the energy turnaround: l Making companies generally more
social measures to ensure social stability energy efficient is also an important
and acceptance of the energy turnaround l Many kilowatt hours could be saved if, task. This promotes and preserves
by supporting and integrating displaced for example, buildings were insulated. And competitiveness. Lower energy costs in
workers into the process. For this reason the renovation process itself would create a turn reduce the pressure on other balance
alone, the energy turnaround requires large number of jobs. New efficient boilers sheet items such as personnel costs.
industrial and structural policy planning. not only have to be produced, but also Greater energy efficiency helps preserve
And new jobs in other (energy) sectors need installed and connected to the building’s jobs and local industry.
to be good jobs, i.e. reliable, with employee overall system. Trades people have to Social and ecological structural change is
participation rights, and good pay. be trained to provide competent energy being driven forward by energy innovation

ll Using innovation to
create new jobs
The German trade unions see a lot of
potential in the energy turnaround for
new jobs in traditional occupations
and beyond. This is because traditional
industry and crafts have the skills and
knowledge important for a successful
restructuring of the energy business.
They are supplying the equipment for
the energy turnaround and provide
important products, including those
that help save energy, including: wind
turbines, photovoltaic systems, (smart)
power grids, lightweight bodies for electric
cars, insulation, efficient boilers and
energy-efficient household appliances.
Those working in these areas are well-
trained professionals who have years of
experience. And this experience should
be put to better use. The keyword is
innovation, because companies and
employees could use energy even more
intelligently, operate with greater energy

42 | Energy Next | October 2015

 Job Opportunities

in all these sectors. In addition to jobs in

the renewable fields, new jobs need to be
The renewable energy sectors
created which will help to reduce CO2 have indeed created new jobs, but
emissions and modernize the energy sector.
It is therefore important to speak
high-quality employment is the
not only of “green jobs” but also of the exception rather than the rule
“greening of jobs”. Traditional occupations
in industry and trade can drive the energy One of the facts of the energy turnaround in the industry cannot imagine themselves
turnaround forward with their experience. is that the quality of the jobs in the new working for these companies until their
Consequently, it can actually be difficult to sectors of the energy industry still lags retirement. And this is the case even
define a “green job” with any precision. far behind those in the traditional energy though they identify strongly with the
In order to encourage innovation, the sector. The renewable energy sectors have products and services provided by their
overall conditions also have to be right. indeed created new jobs, but high-quality companies. It’s a fact that “green jobs” are
Government investment in start-ups has employment is the exception rather than not also automatically “good jobs”. The
to be available reliably and consistently. In the rule. There is still a serious wage gap. new industries will damage themselves and
addition, the cost of conversion operations A survey by IG Metall indicates that the the energy turnaround as a whole if their
has to be distributed fairly. Stronger wage level in the wind power industry new jobs do not comply with the guiding
shoulders need to bear more of the load is only about 80 per cent of the average principle of “good work”. Preventing
than the weaker ones. Energy-intensive wage for the manufacturing sector. In worker participation in decision-making
companies are heavily affected by energy the photovoltaics industry, it is only 67 processes, sweatshop wages, and extensive
price increases and must be provided with per cent. Workers in this sector say that use of temporary personnel should not
adequate relief. These industries must be able they are “rather inadequately” paid for become the hallmark of the new energy
to count on being able to offer competitive their work. Not only skilled workers, but sectors. The responsible trade associations
prices. If the right conditions are not in all groups of employees are dissatisfied. and the companies both need to act
place, jobs and, ultimately, acceptance of the In terms of working hours, there is also quickly to correct these abuses and provide
energy turnaround will be at risk. a great need to catch up. More than 40 good working conditions with employee
hours of work a week are considered participation!
ll Good-quality jobs in the “normal” in the industry. It’s therefore no The bottom line is that it is too early
energy turnaround? wonder that a majority of the employees to say whether the energy turnaround is
acting as a job machine. Structural change
is in full swing. In the final analysis, it
needs to be considered as a whole, together
with all of its effects on employment. In
Germany, new jobs have been and are still
being created by the energy turnaround,
but, at the same time, traditional jobs are
being lost. The trade unions are trying
to ensure that the balance between job
gains and losses is at least maintained. In
any decision that is taken, priority should
always be attached to ensuring a social
safety net for the workers affected.
We trade unions are convinced
that more good jobs and innovative
occupations will be created within the
energy industry and we will do everything
to promote this. Industry, politicians, the
trade unions, and society as a whole all
need to work together in order to get the
energy turnaround job machine operating
to full capacity.
The author is a German trade unionist and since
2014 is a member of the Executive Board of the
Federal German Trade Union Federation (DGB).

October 2015 | Energy Next | 43

 SPECIAL ISSUE

Germany’s move into RE

shakes up job market

Germany’s transition to a low-carbon, nuclear-

free economy shakes up the country’s labour
market. The Energiewende has created hundreds
of thousands of new jobs - from solar panel
cleaners to housing insulation specialists
and wind turbine engineers. Sören Amelang,
correspondent, Clean Energy Wire (CLEW) gives
an in-depth analysis of the job market

I
t is beyond dispute that the explains Ulrike Lehr, from the private 370,000 jobs by 2013 in that industry alone,
Energiewende is dramatically research and consulting Institute of Economic according to the energy ministry. About
transforming the world’s fourth largest Structures Research (GWS). But there is no 140,000 of these were in wind power, followed
economy. The changes are so rapid that doubt a considerable share of jobs now depend by 126,000in bio-energy and69,000 in
researchers are having trouble keeping track. on the transition to renewable energies, photovoltaics. There are currently 42.8 million
Take the current rapid growth of the German whether directly or indirectly. people employed in Germany, a country with
wind turbine industry, the spectacular boom “The changes and adaptations in some 81 million inhabitants.
and bust of the solar industry over the past employment structures affect the whole But these figures omit other sectors also
years, or the present predicament of the big economy, “says Thure Traber, from DIW Econ, impacted by the Energiewende, such as
utilities: They all show how fast fortunes can the consultancy arm of think-tank German building insulation, training programmes,
turn on the way to a completely different Institute for Economic Research (DIW). think-tanks and consulting, IT and smart
energy system. technology, power grids (for the growing
“The Energiewende has many different ll Renewables as job motor renewable energy supply), sustainable mobility,
effects on various sectors of the economy,” The move to renewables created about and many others. No official figure exists for

44 | Energy Next | October 2015

 EMPLOYMENT

all Energiewende-created jobs. The German Exports are also a big driver of
Federal Environment Agency (UBA) estimates
that, in total, around one million jobs are tied renewable jobs and business. The
to the Energiewende.
It is impossible to name an exact figure
Renewable Energies Agency (AEE)
because of the Energiewende’s innumerable said in 2014that export accounted for
direct and indirect effects on the labour market.
“In some sectors there’s a direct impact, like on
almost half of all jobs in the renewable
e-mobility, storage and grid technologies. And facilities manufacturing sector.
then there’s an indirect impact on many others
caused by energy prices, or climate protection The German Industry Initiative for Energy expansion of renewable energies. Many large
measures,” Krischan Ostenrath of the Science Efficiency (DENEFF) estimated this year energy-intensive industries are exempt from
Shop Bonn, an NGO focusing on economy that more than 800,000 people are already this surcharge and can therefore benefit from
and sustainability, told the Clean Energy Wire employed in the efficiency sector alone. low wholesale electricity prices.
earlier this year. Businesses benefit - or suffer According to the Initiative, energy efficiency Exports are also a big driver of renewable jobs
- from the Energiewende to different degrees, is often underestimated in terms of job and business. The Renewable Energies Agency
making it hard to calculate the full economic creation, despite the fact that many efficiency (AEE) said in 2014 that export accounted for
impact, he said. installations are extremely labour-intensive. For almost half of all jobs in the renewable facilities
The energy transition is not only changing the example, carpenters and craftsmen are needed manufacturing sector. Germany’s wind turbine
economy as a whole. It has created big industry for every building that’s retrofitted. industry, mostly located on the North Sea and
players such as wind turbine maker Enercon Carola Kantz, from the German Engineering Baltic coasts, sells more than two-thirds of its
or Senvion, or solar panel maker Solar World. Association (VDMA), told the Clean Energy technology to global markets. Wind power
And even some of the best-known traditional Wire earlier this year that every old appliance jobs include employment in pre-production
household names such as Siemens are changing: – from coffee machines to automobiles – stages like steel and mechanical engineering,
While its CEO blamed the Energiewende for replaced by a new, energy efficient model, design, tax consultancy, and management;
cutting some 2,000 jobs in Germany -- mainly is business that can be attributed to the a second stage that includes making
in its gas turbine business -- the company also Energiewende to some extent. She said foundations, rotors and towers, and providing
announced a new factory for wind turbines with VDMA’s largely medium-sized businesses, transportation and administration; and,
some 1,000 jobs in the North of Germany. such as makers of power plant components, finally, construction and installation.
Lehr of GWS estimates 500,000 to 600,000 cables, batteries, transformers, compressors, But not everybody is as bullish about the
jobs in the renewables industry by 2020, and a wide range of construction equipment, Energiewende economy. The conventional
with most in the onshore wind sector. “But “have benefited considerably” from demand energy sector, for example, has been rocked
the Energiewende is much more than power for renewable energy and efficiency-related by the nuclear power phase-out, the rapid
generation – increasing efficiency has positive hardware and technology, much of which ascent of renewables, the fall in wholesale
effects on the labour market in many ways,” they export. This is despite the fact that most electricity prices, the decline in energy
explains Lehr. She estimates an additional of the association’s members have to pay demand, and disastrous investments. The
250,000 jobs in the efficiency sector by 2020. the electricity surcharge, which finances the conventional energy supply sector, including
Germany’s biggest utilities E.ON and RWE,
currently has around 200,000 jobs, down
from almost 600,000 in 1991.
And talk to some German business leaders,
such as those at the Federation of German
Industries (BDI) and the Association of
German Chambers of Commerce and Industry
(DIHK), and you will hear that the high price
of electricity is putting jobs and business
at risk. They argue that manufacturers are
investing less, leaving Germany for better
conditions abroad, or even perishing because
pro-renewables incentives have pushed power
prices higher for end-users.
A DIHK report, titled “More Losers, Fewer
Winners”, asserted in late 2014 that “industry
and trade see themselves as the losers”. In

October 2015 | Energy Next | 45

 SPECIAL ISSUE | EMPLOYMENT

The energy-thirsty manufacturing employment. But differences in research

approaches, methods and assumptions mean
sector makes up about 22 per cent of quantitative results cannot be compared with

gross domestic product, compared to each other directly,” states the ministry.
In contrast, the prominent economist and
15 per cent in the EU on average Energiewende critic Hans-Werner Sinn, of the
Institute for Economic Research (IFO), has
the survey, 34 per cent of companies said the most innovative in the world, with heavy warned that the net effect of the transition is
Energiewende had an adverse impact on their spending on R&D (ranked 4th)—notably with a reduction in the number of jobs. Sebastian
firms – including damaging their competitive an increase from 2.5 to 2.8 percent of GDP in Bolay from the DIHK is also sceptical:
edge in foreign markets, while 14 per cent saw both public and private sectors between 2010 “Because many industrial companies say
its impact as positive. The high price of energy and 2012—and displaying a high capacity for the Energiewende has a negative effect on
and stability of supply were named as culprits. innovation (2nd).” their business and some already have capped
So far, Germany’s manufacturing industry However, some key sectors voice concern. production, one has to assume that, at best,
and the economy as a whole have gone from The electricity price paid by German car the Energiewende does not have an effect on
strength to strength in recent years despite manufacturers, who are for the most part only overall employment.”
headwinds from the euro zone turmoil partially exempt from the electricity surcharge, Most studies arrive at the conclusion that,
and the aftermath of the financial crisis. is more than twice as high as in the US because overall, the effect of the Energiewende on total
Germany’s exports have increased by 17 of energy transition, Matthias Wissmann, employment is not very large. The Institute for
percent in real terms from 2010 to 2014. president of the German Association of the Study of Labor (IZA) concludes that studies
Output from manufacturing rose by around the Automotive Industry (VDA), has said show “both positive and negative employment
10 percent, employment in the manufacturing in the past. “Because of the high cost of effects from a green energy policy. But the
industry was up 7 percent and overall more electricity, some companies are directing their effects are quantitatively moderate, so the
people are in work in Germany than ever investments abroad. In the long-term, this is to overall net employment effect is rather limited”.
before and unemployment is falling despite the detriment of local jobs.” Traber, from DIW Econ, agrees: “All told,
strong immigration. the Energiewende does not have dramatic
The energy-thirsty manufacturing sector ll So what is the net effect? consequences for total employment. Even
makes up about 22 per cent of gross domestic The German government, as well as the critics arrive at relatively small effects
product, compared to 15 per cent in the EU green businesses and lobbies, praise the and the majority of studies point to positive
on average. Around 15 per cent of Germany’s Energiewende as a modernising catalyst that effects,” he says.
workforce is employed in sectors that export benefits German businesses on the whole. Lehr is also convinced that the economy
products as diverse as automobiles, chemicals, Chancellor Angela Merkel and energy minister will be better off with the Energiewende.
machine tools, electronics or steel. Thus, much Sigmar Gabriel often say the project creates Her calculations suggest that by 2020 the
is staked on industrial competitiveness. jobs and revenue and offers huge export total number of jobs will be 120,000 higher
Indeed, Germany has long ranked among potential for German industry. than if the Energiewende did not exist. But
the top five in key global competitiveness Gabriel’s ministry has commissioned various she also warned earlier this year: “Whether
indices. According to the World Economic studies on the net effect of the energy transition the Energiewende creates growth and jobs
Forum’s 2014 European Competitiveness on employment. “All studies conclude that in Germany in the future depends on how
Report, “German companies are among the the Energiewende has a positive effect on seriously it is taken by policymakers and the
private sector. The Energiewende is not a
panacea for economic growth and jobs.” If
policy does not actively back renewable energy
expansion and energy efficiency, much of the
investment to date will be squandered, she
argues. But if supported, she said, “Growth
and employment will benefit in the long term”.
Lehr sees potential for future job creation in
many areas, such as efficiency technologies,
e-mobility, digitalisation of the energy system,
as well as storages and batteries.
Clean Energy Wire is an independent and non-
profit service for journalists covering Germany’s
energy transition - The Reporter’s Guide to the
Energiewende

46 | Energy Next | October 2015

 Special Issue

Successful PV market launch

– experiences from Germany
Solar power has become an important part of German
power generation: 6 per cent was the amount of solar
power in the gross electricity consumption for 2014.
By the end of 2014, more than 1.5 million PV systems
with a capacity of 38.2 GW were installed in Germany,
which generated 34.9 TWh solar electricity in 2014 and
reduced CO2 emissions. Gerhard Stryi-Hipp explains

T
he market launch of photovoltaics PV programme was high though they still hands of commercial generators, mainly of a
in Germany began in 1990 with had to pay 30 per cent of the investment by few large energy utilities, which generated the
the “1000 roofs programme”. themselves. Finally, a total of 2,000 PV systems majority of the electricity with large coal, gas,
Through the installation of 1,000 were funded with an average system size of oil, and nuclear power plants, as well as some
grid-connected PV roof systems, experience 2.6 KW. The 1000 roofs programme was able large hydroelectric plants.
with the grid integration of many decentralised to demonstrate for the first time worldwide The fact, that photovoltaics enables all
solar power systems was to be gained and the that the decentralised connection of many PV citizens, businesses, and institutions to generate
development of technical solutions initiated, systems to the power grid and their fluctuating their own electricity on their roof and feed it
because at that time there were only a few feed does not pose a technical problem if into the grid in very small quantities resulted
PV systems connected to the electricity grid. certain rules are observed. in a revolution in the electricity market.
The price of a PV system was 12,500 EUR However, the introduction of photovoltaics Compared to the large power station in the
(`940,000) per kW of power, which resulted was not only an energy-technical innovation, MW to GW range, the PV systems were tiny
in production costs for solar electricity of but also a revolution in the electricity market. in the KW range. A 1KW PV system generates
approximately 1 EUR (`75) per kWh. Because at the time, private citizens had no about 1,000 kWh of solar power per year
The interest of citizens who had PV roof-top opportunity to generate electricity themselves compared to a large power plant, which can
systems installed on their houses and received and feed it into the grid. Up until then, generate up to 10 billion kWh per year.
an investment grant of 70 per cent under the electricity generation was exclusively in the The expansion of renewable energies
solely by professional utilities that build solar,
wind, and biomass power plants instead
of fossil fuel power plants is theoretically
conceivable, however, in particular in the
field of photovoltaics, this is hard to imagine
since a large number of small systems must
be installed on the roofs of private residences
beside the large ground-mounted PV plants. To
allow these non-professional investors (private
and commercial investors who are beside the
PV system not active in the energy sector) non-
discriminatory access to the electricity market
and to provide sufficient investment security,
the appropriate conditions must be created.
The following aspects must be regulated:
Connection conditions: Who is allowed to
connect their Renewable Energy Sources (RES)
generation system, where to the power grid,
under what conditions,and who bears what

48 | Energy Next | October 2015

 The German Sun

costs for creating the connection?

Feed conditions: Who is allowed under what
conditions to feed what amount of electricity
into the grid?
Accounting: How is the fed electricity
compensated (Gross Metering, Feed-in tariff
FiT) or how is the solar electricity offset against
electricity consumption (Net metering), what
is the Fit-tariff paid, for which period is it
guaranteed and who is paying the FiT?
Compensation adjustment: With what
mechanism is compensation adjusted to
possible changes in the market?
Regulatory framework (Bylaw): what
permissions are necessary (e.g. in building
legislation) and how can the administrative
processes be minimized?

ll Creation of Electricity
Feeding Act
In Germany, the necessary regulatory
framework for RES was created for the first In contrast, photovoltaic was economically per kWh. It was clear that private investors
time in 1990 with the “Electricity Feeding only attractive to investors with additional would only invest on a large scale if the
Act” (Stromeinspeisegesetz). This gave funding programmes. investment was economical, but that financing
the first time every citizen, company, and The political decision for this fundamental the additional cost of solar power through
institution the right to generate electricity change in the electricity market was the result government assistance programmes was not
from RES and made it mandatory for of a strengthened environmental movement possible due to the necessary financial volume.
utilities to connect all renewable energy in Germany. It had formed in response to the However, it was expected that the cost of
systems to the grid. The costs for connection oil crises of the 1970s and increasing pollution. PV systems could be reduced only by mass
incurred must be borne by the utilities on The German population was shocked by the production and technological advances.
their side of the connection point, while nuclear disaster in Chernobyl in 1986 and To break this vicious circle, the concept
the costs on the RES side of the connection many activists and politicians were looking of cost-covering remuneration was
point must be be borne by the operator. for an alternative to the energy supply of fossil developed by local solar initiatives. They
Further, the utilities had to take all of the fuels and nuclear energy. “The Greens” party envisaged orienting the compensation for
offered renewable electricity, i.e. renewable was established in 1980. In 1983 it moved to solar electricity fed into the grid towards
electricity takes priority over the production the Bundestag and of course advocated for the actual costs of the investors of PV
of fossil or nuclear generated electricity. And RES. However, the Electricity Feeding Act was systems and not the cost of electricity
the grid operators must be compensated an initiative of many members from different that had to be paid by the consumer. This
for the RES with a fixed amount per kWh parties and in 1990 it was passed unanimously “cost-covering” compensation was to allow
over 20 years. The compensation was set by the Bundestag. The politically conservative investors a market rate return for their PV
at 90% of the retail electricity price, at the side also supported the Act because it system on the condition that they supplied
time about €9ct (7 INR) per kWh. The also offered a reliable foundation to small a good solar yield for 20 years. The return
Electricity Feeding Act applied to all RES in hydropower operators who had been running was necessary to incite investments and
the same way. Since the wind power could their plants for many decades. to compensate for the operating risk that
already be economically operated with this In the 1990s, photovoltaics were far away exists for all investments in technological
compensation at good locations, in the 1990s from being economically competitive with systems. The refinancing of the cost-covering
there was a lot of expansion of wind power. power generation costs of about €1 (`75) compensation was to be done via a levy on
all electricity customers. Since the quantities
By combining interest-free loans of generated solar power in relation to the

and the increased compensation, total electricity produced were low, this levy
was also very low. This plan was not accepted
according to the EEG, investing in PV by the government in the 1990s. However, it
was still implemented in some cities, because
systems was economically attractive in towns that had their own municipal

October 2015 | Energy Next | 49

 Special Issue

utility, the City Council was able to instruct solely through the EEG and was therefore sales volumes and the experience through a
their utility to grant such compensation for no longer limited. As a result, by 2010 the variety of systems.
solar power. PV market grew rapidly and 7,400 MW
photovoltaic systems were installed. ll A sharp drop in Prices
ll Renewable Energy Since it was expected that the PV system However, unfortunately expectations
Sources Act EEG prices would fall due to the EEG, the have not been met with respect to the
After the change of government in 1998, compensation for new PV systems was to development of a competitive German
the Electricity Feeding Act was replaced be lowered every year to correspond with solar industry. Although a larger number
by the “Renewable Energy Sources Act how much the prices were expected to be of German PV companies have achieved
EEG”(Erneuerbare-Energien-Gesetz) in reduced. Since the solar industry expected very rapid growth and were temporarily
2000. The previous regulations were all a reduction in PV system prices by about amongst the largest global PVcompanies,
taken on except for the compensation 5 per cent per year in the event of rapid the fast-growing competition, especially
scheme. Compensation in the EEG was market expansion, the EEG stated that the from Asia, caused a sharp drop in prices
based on the actual electricity production feed compensation for new PV systems and from 2013 the plummeting PV market
costs and was therefore different for all RES. was to be reduced every year by 5 per cent. volume in Germany rendered some German
In 2000, solar electricity compensation was Every PV system received for 20 years the PV manufacturers, wholesalers, and project
€50ct (`37) per kWh. same compensation on the level of the developers no longer competitive, who then
Financing conditions for PV systems initial compensation which was valid at had to either seek new investors or stop
posed another problem. Because banks the time of initial operation; the reduction their business. The PV companies that are
had no experience with this and could not applied only to new systems and their initial still operating today were able to survive
assess the associated risk, it was difficult compensation. in global competition because they operate
to obtain affordable loans. This is why the The objectives of the PV market launch around the world, provide high quality, and
100,000 Roofs Solar Power Programme was and the EEG were increasing the proportion work very efficiently. To cooperate with
started in 1999, which was to result in the of renewable energy, price reduction of the German PV companiesis of interest to many
installation of about 100,000 PV systems systems, and the development of a German investors around the world in particular
with a total capacity of 300 MW over 5 years. solar industry. The success of the PV due to their long-term experience in the
Interest-free loans were granted for this by market launch was considerably better than design and operation of PV systems and
the state-owned KfW bank and the interest expected. The percentage of solar electricity their high level of system expertise. German
rate differential was financed by the federal in gross electricity demand increased from PV companies and their products are in
budget. By combining interest-free loans 0 per cent in 1990 to 6 per cent in 2014, and demand by many experienced investors
and the increased compensation, according the PV costs of photovoltaics decreased over because the slightly higher investment costs
to the EEG, investing in PV systems was the same period by 90 per cent from €12,500 for high-quality PV systems usually pay
economically attractive. (`940,000) to about €1,250 (`94,000) per higher electricity yields and revenue over the
The PV capacity envisaged in the kW. The price reduction was a result of lifecycle of the system.
programme, which increased annually, was technological progress through increasing The initially high costs, the motivation of
fully delivered and increased from 10 MW the efficiency and reducing material usage investors to generate electricity themselves
in 1999 to 150 MW in 2003. When the through thinner silicon wafers, mass and support programmes such as the 100,000
100,000 roofs programme came to an end production, simpler assembly methods, roofs programme meant that for a long time
in late 2003, the PV market launch occurred and lower distribution costs due to higher mainly small PV rooftop systems of 1 to 10

50 | Energy Next | October 2015

 The German Sun

kW of power were installed in Germany. The has a huge experience. The rapid market a strong market growth, but it must not be
strong market growth between 2004 and 2010 growth in Germany from 2003-2010 shows too high, because otherwise the levies are
was above all driven by medium-sized PV that the ambitious Indian objective is in unnecessarily high and there is no incentive
rooftop systems between 10 and 100 kW. For principle achievable if the necessary political, to implement efficient PV systems.
example, a large number of farmers built PV economic, technical and administrative l The compensation amount should be
systems on their stalls and homes. But smaller conditions are present. India benefits from regularly reviewed and adapted to the market
companies also installed PV systems on their the massive cost-cutting that has already conditions.
production and storage facilities. In addition, been done by PV market development in l At the beginning of the market launch,
a large number of cooperatives and funds Germany, Europe, and worldwide, from which the provision of loans at low interest rates
were created which leased roofs and installed the PV investment costs and solar electricity triggered by the government is very helpful to
PV rooftop systems. This meant that citizens generation costs are now very low and facilitate the access to capital and to provide
without their own roof could also participate competitive in many areas. a reference to which the banks can orient
in PV systems. Large PV systems over 100 the conditions of their loans. In addition,
kW on roofs were implemented on a smaller ll Lessons Learnt foundations should be laid to enable project
scale. The share of large ground mounted PV In Germany, a lot of experience was gained in financing (e.g. non-recourse financing) for
systems between 100 kW and 100 MW was the PV market launch in the areas of funding typical PV rooftop investors with difficulties
rather small due to limited availability of land conditions, financing, product quality, and to provide securities for the loans.
and acceptance by the people. conditions, which may also be useful for l Administrative obstacles must be
The experience in Germany with the India. The most important are: kept as low as possible, i.e. authorisation
launch of photovoltaics in terms of the l PV investors need long-term, reliable, procedures should be used only when
design of programmes and compensation and transparent framework conditions in absolutely necessary and provided with
schemes, the design and operation of the regard to the connection to the power grid, short and transparent processing times.
systems, the production of components, to feed-in the solar electricity, and to the The special framework conditions in the
standardisation and quality assurance as compensation for the solar electricity. The different states and municipalities must be
well as financing and distribution were often conditionsmust be so advantageous that taken into account.
used in other markets around the world. the structural disadvantages compared l A balanced mix of small PV systems on
India already has many years of experience with professional energy companies residential buildings, medium-sized systems,
in photovoltaics, but is only now beginning are compensated and there is sufficient for example on roofs of commercial buildings,
a large roll-out after the Modi government investment security. andground-mounted large-scale systems is
increased the target for the installed PV l The support programmes must be recommended and must be actively promoted
capacity to 100 GW by 2022including 40 designed in such a way that the rate of return by systematicremoval of barriers and market-
GW of PV rooftop systems, where Germany is high enough for PV investors to trigger specific support of market segments, which
are not developing as desired.
l A minimum quality of PV systems must
be supported by the state through the
establishment of technical standards and
education of it.
l The conditions for the grid connection and
grid integration must be developed jointly by
the concerned stakeholders (project developers
and manufacturers of PV systems, grid
operators, utility companies and regulators)
and agreed transparently and reliably.
l For the clarification of disputes between
investors, project developers and PV
manufacturers on one side and the power
companies on the other side, an arbitration
board with experts is recommended to be
established by the government.
The author is head of energy policy and
coordinator “Smart Energy Cities” at the
Fraunhofer Institute for Solar Energy Systems
ISE is physicist and an interdisciplinary expert
on technologies, market development and
policies in renewable energies and sustainable
energy systems

October 2015 | Energy Next | 51

 Special Issue | IN CONVERSATION

“We are keen to develop

solar PV projects in India”
IBC Solar Projects Private Ltd. has been quite active in India in the solar EPC
space. The company is now on a growth path and is keen to make its presence
felt as a project developer for photovoltaic power plants. Reinhard Ling,
Managing Director, IBC Solar Projects Private Ltd, talks to Energy Next on how
the company plans to strengthen its partnership with India in the solar sector
A master plan for devising solar power who believe that it will cover a significant
plant areas in the desert and transmission portion of the ever growing demand in India
lines to the load areas will be key to for low-cost electricity, which is produced
utilizing power from the sun in a most in an environmentally-friendly way without
efficient way. Very instrumental for imported fossil resources. Particularly in
achieving the goals of the government will light of the unstable power grid in India,
be to plan big solar parks throughout India there is enormous potential for off-grid and
to alleviate many hurdles like identifying back-up solutions. Power cuts represent a
proper land, carrying out the conversion big economic risk for companies. Traditional
process of land, applying for and receiving back-up systems with diesel generators are
permits, ensuring evacuation of power by maintenance-intensive, environmentally-
planning transmission corridors. More harmful and depend on expensive raw
uniform regulations and procedures material imports from other countries. What
could further stimulate and accelerate could be better than using the sun as an

Q
India has a vision to add investments in solar power plants in all inexhaustible energy source?
100 GW of solar in the states which have abundant solar resources.
next seven years. How Further stimulation of investments by What role and opportunity do you
bullish are you about the target? Indian and foreign investors could be achieved foresee for IBC Solar in the Indian
This is a very ambitious goal, but we believe by US$-denominated power purchase RE industry in the coming years?
it is achievable. We see that the Indian agreements thus eliminating currency Until now, we have made a name for
Government is changing a lot and is gearing fluctuation risks. Other major concerns relate ourselves as an EPC service provider in
up to achieving this goal through many to terms of the PPAs, which do not conform India. Building on our experiences, we aim
measures, like setting up of transmission with international standards. to establish ourselves as a project developer
corridors or solar parks. Furthermore, by Solar power plants are long-lasting facilities for photovoltaic power plants in the future.
implementing new policies, India is attracting and hence it is essential to ensure that cost- We plan to apply the same approach in
international attention, one can see new efficient but also good quality components India, which we have already been successful
investments coming in for new production are used to enjoy as a result the long-term with in Spain, Portugal, UK, Germany, Italy
facilities of solar components and on top of performance of the PV power plants. The focus and other countries. As a recognized and
this, new international capital coming in for should not be only on generating a return on financially strong project developer, we cover
investments in solar power plants. Overall the investment (IRR) as quickly as possible, but the entire process and value chain, including
government is on a good path to achieving also on the profitability of the PV system over project development and finance, through
the goals by providing an environment, which the entire service life of two decades or more. to plant sales and downstream technical
facilitates the growth in this sector. management with maintenance.
What opportunities do you see for Our aim is to stay long-term in India, as a
What, according to you, are the solar energy applications in the developer, investor and EPC contactor. We will
major challenges that need to off-grid segment? ensure good quality solar power plants and
be addressed to achieve those Photovoltaics is extremely competitive as will stand for mutually beneficial long-term
targets? an energy source. We are not the only ones partnerships!

52 | Energy Next | October 2015

 Special Issue

India a big market for

storage & batteries
Welcome to Schwerin –the oldest city of the start German state of
Mecklenburg-Western Pomerania. Ever since the fall of the wall 25
years ago, tourists have flocked to see the romantic Schwerin Palace,
crowning an island in the Lake Schwerin as well as the city’s largely
intact old town. Clemens Triebel, Co-Founder and Chief Visionary
Officer, Younicos says
primary control power market. To date, increasingly facing: The wind is blowing
in this market, conventional energy turning powerful rotor blades of wind
producers receive money in return turbines in the north, the sun is shining
for quickly boosting on lowering the on solar-roofed houses in the south - yet
performance of their power plants by a the chimneys of coal-fired power plants
few percent in order to bring supply and are blowing out smoke as ever. What may
demand of electricity into equilibrium. look like a farce is a very real problem
Batteries can do this much faster, more anywhere where the annual average share
accurately as well as cheaper - allowing of energy from intermittent renewable
WEMAG to outcompete fossils plants. sources is passing into double digits.
The explanation of this seemingly
ll Why Schwerin matters - absurd phenomenon is straightforward:
everywhere Although more and more renewable
At first glance the sleepy, cold and energy systems are coming online, the
rainy (but windy) north German city of fundamental “architecture” of the power

B
Schwerin seems to have much relevance grid has not adapted. It remains geared
ut that’s not all: For about a for hot, vibrant, fast growing India. towards the needs of fossil and nuclear
year now, Schwerin has also But look closer; you’ll see a core piece thermal power plants.
attracted a different type of the puzzle that is Germany’s so-
of visitor: Since the grand called “Energiewende”: In its first year ll Pay for two, get one
opening of Europe’s first commercial of operation, the WEMAG facility has This lack of flexibility leads to two,
battery power plant in September been forcefully demonstrating the key equally undesirable consequences: Firstly,
2014, hardly a day goes by without a technological and economic role of we increasingly have to turn off renewable
delegation of energy professionals from intelligent storage in any power system generators because fossil and nuclear
around the world paying a visit to “see” trying to incorporate a significant share “must-run” plants “occupy” the grid.
how the state-of-the-art facility of the of cheap, but intermittent power sources. Secondly, it also means that we are paying
regional utility WEMAG is smoothing To understand why, take look at the for two systems: an old centralized, fossil-
frequency variations in wind-swept conundrum the “Energiewende” is nuclear-centric system - and a growing,
West-Mecklenburg. Of course there isn’t
much to “see”– the fully automatic system
is deploying the 5 Megawatts of rated
To us at Younicos it became
power of its high performance lithium- apparent in the early years of this
ion batteries without the need for human
intervention. century that intelligent storage and
At the same time the Battery Park
is earning its keep by competing with
grid management is the key to a
conventional generators in the so-called successful transition to clean energy
54 | Energy Next | October 2015
 Younicos

UK Secretary of State for Energy and Climate Change Amber Rudd being shown around for the commissioning of Europe’s largest battery system, built by Younicos

decentralized system based on clean, but storage and grid management is the renewables. The fact that the sun doesn’t
fluctuating energy sources. We really only key to a successful transition to clean shine at night and the wind may not
need one, but we’re paying for both. Small energy. Thus, since 2006, we have blow for days is not as important as it
wonder everyone is complaining that the been researching and testing battery may seem. Both events can be predicted
energy transition is getting expensive. technologies and developing solutions quite well. The real challenge lies in the
Of course, the need to adjust our to integrate wind and solar power both gust of wind that will make the output
power grid to changing demands is safely and economically into the grid. of the wind farm peak and in the cloud
hardly a surprise for anyone with a that unexpectedly lowers the electricity
basic technological and economic ll It’s easier than you think generation of the solar panels below.
understanding of what the transition One of our biggest surprises came early That’s because in order to keep power grids
to a carbon-free energy means. To us on: Contrary to why one might think, - be they fossil or renewable - stable, power
at Younicos it became apparent in the it takes relatively little storage capacity supply has to equal demand at all times. Too
early years of this century that intelligent to integrate a relatively big share of much power is just as bad as too little.
So far, the grid is being stabilized
mainly by thermal, mainly fossil power
plants. However, such units can use
only a few percent of their capacity to
spontaneously add power to the grid
or, conversely, reduce power supply, by
producing slightly less. The remaining,
“must-run”generation is discharged
into the grid in any case. That’s why the
chimneys of coal fired power plants are
steaming even when wind and solar could
actually provide enough energy.
Batteries can also provide this
balancing function - and have no “must-
run” generation. They are also much
faster and more accurate than thermal
power plants. The combination of these
effects means that each megawatt of
Commissioning of Europe’s first commercial battery power plant in Schwerin
installed battery can replace ten times as

October 2015 | Energy Next | 55

 Special Issue | Younicos

installed globally: Storage is a grid asset

That flexibility is at the core of our and should be treated as such!
second lighthouse project: Europe’s Thankfully, some regulators grid
operators are recognizing this important
largest commercial storage trial infrastructure value of intelligent storage.

in Leighton Buzzard northeast of In Europe, one of the leaders in enhancing

the power system to absorb more
London, showcases even more of renewables, is Italian grid operator Terna,

what is possible today for whose“storage lab”on the island of

Sardinia, we are installing two 1-Megawatt
intelligent high-power lithium-ion-units.
much conventional power plant capacity frequency regulation - however it’s also
that would otherwise be required to keep automatically responding to price signals ll From Italy to India
the grid the stable. and used to shift peak loads or provide With both solar and batter prices on steep
other important system services. decline, what’s good for Italy is good
ll Fast and accurate Such multipurpose use also opens new for India too. Recently the Australian
One the reasons grid stability requires less and additional revenue streams for storage. Renewable Energy Agency (ARENA)
battery than conventional muscle, is that For instance, by peak-shifting just for a few issued a report predicting that battery
batteries nowadays can be much cleverer. weeks in the year, our project will save over prices will fall 40-60% over the next
That’s why we’ve taken extra care to make 6 million British pounds in investment cost five years, with prices for Lithium-Ion
our solutions as smart as possible. Our for transformers, underground cables or batteries falling particularly strongly. Over
intelligent power control and energy power lines, which would otherwise have the (properly managed) battery system’s
management software ensures that the been necessary. lifetime, such prices translate to a levelized
batteries always (a) automatically provide cost of storage of 10 cents/kWh and less.
whichever service is most required - or ll Real value for the grid With large-scale solar energy falling to
desired - at any given moment and that This brings us to one core learning that below 3 cents/kWh over the coming years
they are (b) full or “receptive” enough to we are seeing time and again across this is a powerful, and highly disruptive
do so. Lastly, our software optimizes the ouralmost 100 Megawatts of batteries combination: From technological
battery lifetime by keeping the individual perspective, storage turns clean and cheap,
cells in their “comfort zones”as much as
possible. That’s why leading international
cell manufacturers provide 20-year
performance guarantees on our systems.
Such smart storage is key to making
grids more intelligent, resilient and
flexible. In a nutshell it allows the old
energy system to shrink to the extent that
the new increases. Moreover, in order
to make the transition as efficient as
possible, it is important that batteries,
which are still relatively expensive, last
a long time and can be used flexibly.

ll Europe’s largest
smart network
storage
That flexibility is at the core of our
second lighthouse project: Europe’s
largest commercial storage trial
in Leighton Buzzard northeast
of London, showcases even more
of what is possible today: Just like in
Schwerin the 6 Megawatt / 10 Megawatt-
hour battery is mainly providing

56 | Energy Next | October 2015

 20.5 X 27.5 cm

Topsun Energy Ltd.

Design Capability
Project Management
Safety & Quality
Standard PV Modules

PERC Modules
BI-SUN Modules

BAPV Modules

El-CHECKED HOT-SPOT CONTROLLED LINEAR PID-FREE HIGH YIELD

PROTECTION GOODS FLOW DEGRADATION

QUALITY O w ne PERFORMANCE
of
rs
Cost

hi p

RELIABILITY CUSTOMER SUPPORT

EXCELLENT BANKABILITY INSURANCE DIRECT

WEAK-LIGHT FROM THE
PERFORMANCE MANUFACTURER

Corporate Office : Netherlands Office :

B-101, GIDC, Electronics Zone, Sector-25, Gandhinagar- 382 028, Gujarat, India. Eindstraat 46, 5801 CR Venray, The Netherlands
Phone/Fax: +91 79 23288804, 23288805. • Email: [email protected] Mobile : +31(0)620 97 50 45 • Phone : +31(0)478 64 19 40 • Fax : +31(0)478 51 03 00
Website: www.topsunenergy.com. E-mail : [email protected]

IEC 61215: 2005 Ed 2.0; IEC 61701: 2012,

IEC 61730-1/2: 2013/2012, IEC TS 62804-1
 Special Issue | Younicos

Installation of electrical equipment during the construction of Europe’s first commercial battery power plant

but intermittent solar power into a reliable

energy source. By way of return, cheap
The first baseload technologies
utility-scale solar leverages the effect of driven out of the market will be
storage economically.
Assume for the sake of argument those most (economically) inflexible:
that 50% of electricity is demanded
when neither wind nor solar power are
Nuclear, coal and lignite may look
(sufficiently) available. That implies cheap, but that’s only if they run 24/7
that you’ve already covered 50% of your
energy demand at 5 cents/kWh or less.
for 30 years and more. Once they’re
Add in 50% produced and stored a taken offline their costs explode
combined cost of 15 cents/kWh, and your
average cost is 10 cents/kWh or less. The first baseload technologies driven clean resources and a weak grid makes it
In reality, as I mentioned before, one out of the market will be those most very attractive for companies to turn to a
megawatt of storage can free as much (economically) inflexible: Nuclear, coal combination of batteries and renewables.
as ten megawatts of space on the grid and lignite may look cheap, but that’s only Plug and play grid battery systems
for renewables, so the leverage effect of if they run 24/7 for 30 years and more. ensure highest power quality, which
storage is significantly higher! Once they’re taken offline - even for small protects machinery, optimizes processes
As it’s not simply economic to store periods of time - to make use of cheaper and allows greater energy sufficiency and
every kWh of solar energy, particularly at a renewables, their costs explode. This in security as well as lower energy costs – and
cost of only a few cents per Kilowatt-hour, turn creates even more demand for storage of course a lot less CO2 emissions.
sensible investors will choose to install and renewables, starting a cycle that
Younicos is a German-American technology
(much) more solar and wind than their will see an increasing share of baseload company that develops and sells energy
peak load. The role of, often co-located, generation covered by renewables – in storage systems and control software.The
storage will be to enable that intermittent Europe, in the US and indeed in India too. company integrates battery technologies,power
electronics and control software to create
generation to take over baseload Last, but not least, we see a significant systems that respond to the energy
generation first by providing critical market for storage unfolding in the management requirements of power networks
system services and then increasing by Commercial and Industrial (C&I) segment. of all sizes, including micro-grids

bringing gaps between (renewable) power This holds true everywhere, but in India
production and demand. in particular, the combination ample

58 | Energy Next | October 2015

 SPECIAL ISSUE

“With SchwarmStrom we
make energy intelligent”
The energy world is changing radically: renewable energy is taking over
the market and houses are being transformed into power plants. Heiko von
Tschischwitz, LichtBlick CEO, a German IT and energy company, explains to
Areeba Falak about what LichtBlick is doing to prepare for the energy revolution
manner. Rooftop solar panels, mini power LichtBlick created ‘SchwarmDirigent’, a
plants in the cellar, wind turbines on the cluster management IT platform.
fields – the era of small power plants is only We network and manage solar panels,
just getting started. For instance, in just a few battery storage, combined heat and power
years, investing in photovoltaics systems will units, and other local systems, thus creating an
be more attractive for many consumers even intelligent cluster, which is why we use the term
without subsidies. And that’s when we’ll see a ‘SchwarmStrom.’ After all, the new distributed
real boom in solar energy. energy environment requires a functional
The market for batteries will also operating system to ensure a reliable, affordable
experience a boom in a few years. One will supply. -We’re Creating a Balance Locally
be in electric vehicles, the other in homes, between Energy Supply and Demand
where these small storage units make using
solar panels and combined heat and power How did you come up with the
LichtBlick’s solution is called units more economical. If I store my solar unusual name ‘SchwarmDirigent’
‘SchwarmStrom’ – electricity from a cluster power during the day, I can use it in the for your IT platform?
through the intelligent networking and evening to watch TV and do laundry. -The We’ve already coined a new term for
management of local solar plants, electric Era of Small Power Plants Is Nigh intelligent energy: ‘SchwarmStrom.’ We
vehicles, wind turbines, and combined heat then went in search of a powerful image
and power units. This serves to stabilize Many small energy producers and for the software that manages the cluster.
power grids. And consumers who generate storage units rather than a few “Dirigent” seemed appropriate, as it’s
energy also earn money. large power plants. How exactly German for “conductor,” who brings together
will this change occur? an orchestra of different power plants,

Q
Energy revolution sounds A major challenge associated with the
like a pretty big deal. What energy transition is managing distributed
exactly do you think the generation and batteries in such a way
future will bring? that the power grid remains stable. We
The era of large coal and nuclear power need to create a local balance between
plants is coming to a close. Energy is energy supply and demand – or in other
increasingly being generated in a distributed words, develop the smart grid. That’s why

We network and manage solar

panels, battery storage, combined
heat and power units, and other
local systems, thus creating an
intelligent cluster, which is why we
use the term SchwarmStrom
60 | Energy Next | October 2015
 TECHNOLOGY

storage units and information to create a

melodic symphony. -Our Software Directs
an Orchestra of Distributed Power Plants to
Create a Harmonic Symphony

Has the software been tested?

Yes, we’ve been using it for several years now
with great success. ‘SchwarmDirigent’ is
already managing 1,000 distributed combined
heat and power units that are generating
heat and power in apartment buildings and
schools using mobile communications. These
power plants are especially flexible and will
play a key role in the market in the future.
Based on extensive data, including energy
prices on the stock exchange, weather forecasts the battery of an electric vehicle. If there’s What are the next steps on the
and heat requirements in the building, the not enough electricity, we use the battery or path to the ‘SchwarmStrom’ era?
software determines the most sensible, activate our mini power plants. We’re developing new business ideas
economical mode of operation for the We can, of course, also make the across all levels. Our ‘SchwarmDirigent’
power plants. But that’s only the beginning. customer’s own energy supply more efficient. cluster management IT platform is open to
‘SchwarmDirigent’ is open to technology, so ‘SchwarmDirigent’ can ultimately decide technology. We recently incorporated the
it can also manage other combined heat and where electricity can be most profitably first larger combined heat and power plant
power units and distributed units. marketed at any time. -Electricity is used with an output of 1.2 megawatts into the
where it’s needed when it’s needed cluster. And as part of the feed-in premium
Where does ‘SchwarmDirigent’ (FIP), we’ve already marketed the electricity
market the energy? How do customers benefit from generated by wind farms with an output of
We can optimize just about any kind of the cluster electricity from 500 megawatts using our software.
production, storage and consumption of energy, ‘SchwarmStrom’? We’re currently working with partners
with a variety of optimization options available. They earn money. By marketing their solar and 20 customers to test the management of
We can, for instance, generate energy power or battery capacity, homeowners electric vehicles, whose batteries we charge
during periods of high demand and sell it become electricity providers with LichtBlick’s and discharge when they’re not in use, based
on the stock exchange. Or we can adapt to help. The great part for the customers is that on supply and demand in the power grid.
the requirements of the grid operators, who they don’t have to do anything at all. We take
need a flexible energy supply, to ensure that care of everything and share the revenue LichtBlick is the market leader in
the grid electricity remains stable. If there’s with them. -Customers Earn Money Thanks green energy and green gas. What
too much electricity in the grid, we charge to ‘SchwarmStrom’ role will these business areas
play in the future?
‘SchwarmStrom’ wouldn’t exist today without
our 600,000+ customers. Our classic retail
business – we purchase green energy and sell it
to customers – and the new ‘SchwarmStrom’
business are two sides of the same coin. The
green energy customers of today can become
the power plant operators of tomorrow. But
even then they won’t be autonomous. They’ll
still need our green energy from the grid.
And they’ll be part of the ‘SchwarmStrom’
program, able to earn money with their
photovoltaics system, battery or electric
vehicle. It’s all connected. The result is a
new energy partnership between us and
our customers. -Our Classic Green Energy
Business and ‘SchwarmStrom’ Are Two Sides
of the Same Coin

October 2015 | Energy Next | 61

 SPECIAL ISSUE

Understanding Lichtblick
technology: Mini-swarms
T
here’s an exciting project consumption (Eigenverbrauch) and e-mobility are only charged.
currently underway in Hamburg- (Elektromobilität). For the most part, it’s an Car sharing program
Wilhelmsburg: An apartment issue of simultaneous energy production The residents can use the cars as part of a car-
building is being transformed into a and consumption. All of the elements in the sharing program. Using an app, they reserve
power plant. There’s a photovoltaics system on building are primarily optimized to promote the car and specify directly when they need
the roof, a combined heat and power unit and maximum internal consumption. While we it and how much of a charge they require.
a storage battery in the cellar and two electric can’t control the sun, we can for instance This information is passed on directly to
cars in front of the building. The residents control the combined heat and power (CHP) the ‘SchwarmDirigent’ cluster management
can therefore produce, consume and store unit. The approach is different from that of system. Ideally we can be relatively flexible in
electricity and heat themselves on-site. Our IT LichtBlick’s own ‘ZuhauseKraftwerk’ home how we manage the car battery. For instance,
platform for the energy transition, LichtBlick power plant units, which we designed to if the car is reserved for 6 p.m. at 11 a.m. and
‘SchwarmDirigent,’ optimizes the individual conform to the electricity market. Here we the charging period is maximum two hours,
distributed systems and storage units. The focus on internal consumption in the building we can be flexible about when it is charged –
research project will be completed in 2016 and and power exchange prices and optimize the preferably while the sun is shining and there’s
is supported by the Federal Ministry for the CHP unit accordingly. excess electricity in the building.
Environment, Nature Conservation, Building Early bird discount for more flexibility
and Nuclear Safety. ll More than just a car – Incidentally, the car can be reserved early for
electric car as a storage a 20 percent discount, providing residents
ll A House as a Power Plant- As a manageable consumer, the electric car is with planning security and allowing us
The meaning of ‘3E’? part of the building as well as a storage unit to incorporate the car into our electricity
3E is an abbreviation for the three core for the electricity produced in the building. optimization measures over a longer period of
aspects of the research project: internal However, the batteries aren’t discharged as time. The research project is about providing us
production (Eigenerzeugung), internal they are in our INEES project in Berlin, but with the opportunity to find out if distributed

62 | Energy Next | October 2015

 TECHNOLOGY

systems can be arranged and managed without

limiting the dynamic factor: people. And that
also applies to cars, of course.

ll Consumer and producer-

Reasons why LichtBlick
conducted the research
project
In the future, the energy world will comprise
many distributed generation systems such as
photovoltaics systems and combined heat and
power units. Today’s electricity customer will
be both the consumer and producer. LichtBlick
assumes the role of director of these distributed
systems. They need to be coordinated in such
a way that electricity can be consumed and
produced at the same time as far as possible
and that energy storage is flexible enough to be
able to react to the fluctuations associated with
the generation of renewable energy. We need
to develop systems that can be managed both
centrally and at the building, including storage
batteries in the cellar and electric vehicles.
The research project has brought the future
much closer – all of the components that are
The research project has brought
used here are already mass-produced and sold. the future much closer – all of the
We’d like to get started with pilot projects as
soon as possible after the research phase, so we components that are used here are
can make the 3E apartment building accessible
to a larger market.
already mass-produced and sold
As a smart energy management system, generating electricity. This also reduces the
ll ´SchwarmDirigent` ‘SchwarmDirigent’ plays a key role in the 3E strain on the power grid, as energy is produced
keeps track- Role of apartment building. It basically monitors all and consumed at basically the same time.
‘SchwarmDirigent’ play of the external factors that have an influence Buildings can even support the grid, as the
on energy production and consumption in managed combined heat and power units can
the building. In terms of the building alone, feed electricity into the grid as required. That
that includes the forecast heat requirements doesn’t make the discussion surrounding grid
and electricity consumption, the state of expansion superfluous, but expansion can be
the charge and reservations of the reduced with the 3E concept.
electric car. Factors outside of the
building are weather forecasts. And ll …and even generate
in terms of the electricity market, electricity- benefits of
‘SchwarmDirigent’ monitors power living in a 3E building
exchange prices and, when there’s The 3E concept offers two key benefits for
excess energy in the building and the residents. First of all, electric cars will be
power exchange prices are high, cheaper to use, as the cost of charging will be
can sell it on the exchange rather next to nothing. Secondly, electricity prices
than storing it. will fall considerably once a majority of the
electricity is generated at the building and
ll A contribution to the can even be sold on the power exchange.
energy transition… Another less tangible benefit is the peace of
At the 3E apartment building, renewable mind that comes with knowing your electricity
electricity is generated on site, meaning is renewable and you’re contributing to the
major power plants are no longer required for energy transition.

October 2015 | Energy Next | 63

 Special Issue

Challanges to overcome:
INDIA NEEDS its own
approach

Pioneering the inverter industry of India, Su-

kam has established itself firmly. The MD and
founder, Kunwar Sachdev, in conservation with
Areeba Falak, patiently explains his wide range
of opinions on the ambitious clean energy targets
set by the Indian government, the relevance
of off-grid and DC systems as well the policy
outlook of the current times

Q
The 100 GW target is huge for power differs with hours. On a cloudy day, this augmentation and then plan our projects.
for India and could prove a the generation could be nil, on other days What has been done by Europe and the
game-changer on a global the power generated might be more than US cannot be blindly reciprocated in India.
platform, if achieved. Reflect. needed. Doing on-grid rooftop will also be We have a different set of challenges that
In India a lot is being invested in large MW a challenge because of the old infrastructure require a different approach. Germany is
projects without any proper direction and it having transformers with a limited capacity. the world’s top PV installer with an overall
is not good. If we feed 100 GW into grid, it It should be understood that the clean solar installed capacity of 39 GW by the end of July
will be dangerous because our grids are not energy is only augmentation of power not the 2015, out of which over 90% are solar rooftop
connected. Think about it, solar energy can real power itself. Therefore, the question that mounted on homes. After Germany’s heyday
be used only during the day and the demand we need to address is that when do we need in solar in the 2000s, the German PV industry

64 | Energy Next | October 2015

 interview: counter view

has plummeted drastically. This happened

as a result of the excess electricity being fed
Renewable Energy is the best
to the grid which led to an overload of the solution for rural electrification
national grid. Expansion of solar power has
been cut back quickly and drastically and
program. States can save lots of
approximately 9 GW of PV plants are being power and money by installing solar
asked to shut down. Just as Germany is facing
the problem of too much power in just over street lighting projects
10 years; if we continue at this pace then we
might overload our grids in just 3 years. (Direct Current) because of solar power, DC projects. Mini-grid and DC can be a very
In India we first need to provide power is coming back. Most of the load these days good idea for a small to medium village level.
where there is absolutely no power and such as LCD & LED TV, routers, wireless
for this we need off-grid technology. modems, audio system, LED/ CFL lights, DC What opportunity do you see for
Unfortunately, off-grid has been unable fans, mobile charger, inverter AC & inverter the solar inverter market in India?
to achieve success in India so far. Off-grid refrigerator, laptop charger and PC SMPS etc. Do you think Indian companies
requires a very strong technological base to run on DC supply. DC appliances take lesser are competitive enough to
grow. So, I feel that India needs to re-look at consumption compared to AC equipments. derive benefit from the huge
what they are doing. The huge conversion losses from AC to DC opportunity?
can be curbed with DC micro-grids. We have developed a lot of technologies,
So you think that solar power is In Indian RE market the growth lie in and are continuously working on new and
not a good idea for India? off-grid and DC systems. There has been better technologies. Subsidy creates challenge
Solar has bright future in India but what some development in this regard, especially in in a market for a product to be sold. People
I am saying is that India needs its own villages that have benefitted from off-grid; this don’t want to buy it without subsidy. Soon
approach to address the challenges here. We should be expanded. ordinary inverters will come equipped with
can’t blindly replicate all that is being done inbuilt solar so that at any given time you
by the west. Renewable Energy is good and Alright, so what according to you can connect it to your panels and you can get
needed but should be used first where there are the major bottlenecks that clean energy. We are also developing hybrid
is no power. Off grid should be promoted need to be addressed for India to off-grid and on-grid systems which will be
and the approach towards the subsidy too achieve its ambitious renewable working both ways.
needs a second look. Capital subsidy is a bad energy goals?
idea; instead the way government provides Every state has its own challenges which they For the sake of argument, how
subsidy for on-grid, same should be replicated need to address differently, like Uttar Pradesh would have RE grown if there
for off-grid projects. The amount of energy needs to supply power to remote areas with wouldn’t have been such targets?
you are producing, subsidy should be given solar energy. Every state can save lots of power It is a very good thing to set targets; it
only on that. Also, a better scope is in DC and money by installing solar street lighting motivates us to do well. However, in this case
I feel each state should think individually
taking into account their challenges and then
merge it with the centre’s bigger goal.

Providing energy access to

the rural population in India is
still a critical challenge for the
government. What role do you see
of renewable energy technologies
in rural electrification program?
Providing energy to the rural population
is a challenge for the government, more so
because in some rural places like Haryana,
UP, Bihar villagers do not pay electricity bill.
This results in huge losses to the government
every year. Renewable Energy is the best
solution for rural electrification program.
States can save lots of power and money by
installing solar street lighting projects. Mini-

October 2015 | Energy Next | 65

 SPECIAL ISSUE | interview: counter view

We can’t blindly replicate all that is a way that complements the

requirements of states as well?
being done by the west. Renewable I am saying, the lesser the number of policies,

Energy is good and needed but should the better it is for the nation. I don’t believe in
policies. Let the states decide for themselves the
be used first where there is no power best course for them. The greater aim should
be the development right from the grass roots
grid on DC can be a very good idea for a needs than Germany or any other country. level, not how to charm the Centre by achieving
small to medium village. We cannot emulate them blindly. Germany the set targets. Take the example of IT sector,
Su-Kam has installed mini-grid system in is facing severe problem of grid-overload. it flourished in India without any policies.
two villages of Kannauj, UP. The 250 KWp There is also an overwhelming power Minimum interference from the Centre is
mini-grid system has electrified both the wastage. According to the German Network required for the states to grow sustainably. But
villages. Before the commencement of this Agency, Bundesnetzagentur, 555GW-hrs there should be no exploitation.
project these villages never had electricity but of renewable power went unused in 2013
now they will be completely powered by solar. because of overloading and the surplus Not ‘better’ policies, instead you
Su-Kam has also electrified 40,000 rural had to be discarded. If India does not take don’t need policies at all?
households in Uttar Pradesh with DC a relook at its targets and policies it could The contribution from the Centre that would
systems. Each house has been installed with meet a similar fate as Germany’s. make a difference is a decrease in Interest
a small panel, a battery bank, two LED lights rates to further the sale. Renewables has
and one DC fan. The villagers who had If the focus is only on the bigger been made the priority sector for lending but
never had electricity before this now receive projects and the smaller scale there are no results so far. A change from 12
uninterrupted solar energy supply during is being ignored, where do you to 9 per cent interest rate won’t make much
the day and also at night through the energy think the fault lies for this- In the difference, but a drop to 3-4 per cent would.
stored in the battery. targets or their interpretation by
the people? Enlighten us about the future
Germany has shown the world Both, I guess. Just as I said earlier every state vision for Su-Kam
the success of grid-connected in India has its own set of challenges when it We are working on small solar systems i.e.
solar rooftop systems. India too comes to supplying electricity to its people. off-grid and DC systems. We have already
has a target of installing 40 GW of States have to first evaluate the need of their done a project for the Uttar Pradesh
rooftop capacity by 2022. Do you location. They must analyse what would be Government where we electrified 40,000
think that there is enough policy more feasible there; a huge solar farm, an off- rural households with solar DC system.
and regulatory support in the grid system or a mini-grid DC system We have a strong presence in the Middle
states in that regard? East, Africa and South East Asia. The
People are focusing more on achieving the So, you are saying that we need countries in the Middle East and Africa
huge targets set by the government and better policies to achieve the have power challenges similar to India’s.
putting up big projects. India has different targets set by the Centre in Su-Kam developed the technology that
played a significant role in addressing
the power shortage in India; therefore we
have the technology that these electricity
starved nations need. Also, I’d like to
point out here that in Indian inverter
market, there is no competition from
China. Our technology is so strong that
Chinese products don’t stand a chance.
In the Middle East or Africa, Su-Kam is
a big brand.We export our products to
more than 70 countries. Su-Kam is an apt
example of ‘Make in India’.

Su-Kam Power Systems Ltd. is India’s largest

power solutions company which has presence
in 90 countries worldwide and holds a record
for being the only company in this field to file for
over 100 patents. It manufactures more than 200
products including various solar products, UPS,
batteries and customized solar solutions.

66 | Energy Next | October 2015

 Special Issue

How Energy Efficiency can

drive companies into RE
The Indo-German Chamber of Commerce (IGCC) has successfully implemented
the EUREM-training for ‘Energy Efficiency Specialists in Industries’ in India.
The operations and maintenance managers of companies learn how to detect and
identify the weaknesses related to energy consumption on the shop floors in their
respective factories or services producing units. After the EUREM-training they
also know how to develop and implement commercially viable counter measures
to improve energy consumption with regard to saving energy and reducing power
costs. What unites all EUREM-certified Energy Efficiency Specialists across
industries is the continuous drive to be ‘Proud to Save’

I
t was a proud moment when the seven part of the curriculum. Supporting reduction Indian energy experts to standards, terms and
participants of the EUREM-pilot training of power consumption by implementing conditions prevailing in India, with financial
in Pune received their individual and renewable energy sources was discussed as support by the German Government through
globally recognized ‘Energy Efficiency well, especially hybrid models suitable for its Export Initiative Energy Efficiency as part
Specialist’-certificates early in 2015. They all conditions in India. Learning about financing of the Federal German Ministry for Economics
went through a 21-days-training program of energy efficiency measures as well as their and Energy.
consisting of the whole range of energy importance for achieving sustainability goals as Just attending the training, however, isn’t
efficiency measures for industries at large. part of the business responsibility or even the enough to get certified. As IGCC wants to
Commencing the training with the basics CSR-initiatives of their respective companies see results all EUREM-participants have to
of energy and how to measure energy were some more aspects of the holistic and take part in a written exam. They also have
consumption efficiently they continued to encompassing view into energy efficiency to develop an energy project that identifies,
look into energy management strategies as a tool for improving and optimising calculates and describes commercially
(ISO 50001) and into energy consumption production processes in a commercially viable energy efficiency measures for their
optimisation measures like the use of viable manner. The EUREM-training, initially respective companies which they will have
synchronous motors or a Tri-Generation- developed in Germany and licensed to IGCC to present to an expert panel that will act
process. The main topics of energy efficiency, by the Nuremberg Chamber of Commerce, like a company board which decides on
heating and cooling solutions, cover a major has been carefully adapted by German and investments into the suggested measures.

All EUREM-participants of the first ever EUREM-training in India in Pune

68 | Energy Next | October 2015

 IGCC

Yogesh Inamdar, Associated Vice President

at Bharat Forge Ltd. and already a BEE-
certified Energy Auditor had joined the
EUREM-pilot-training in Pune. He not
only received the EUREM-certificate as one
of the first Energy Efficiency Specialists in
India, with his energy project which IGCC
had shared with the international EUREM-
community he also won the International
EUREM-Award 2015. In a special ceremony
during the International EUREM-conference
in Prague on 22nd and 23rd April, 2015 he
received the Award handed over to him by
the Founder of the EUREM-training, Dr. Award-ceremony for the International EUREM-Award on 2015, in Prague, Czech Republic. Award received is given
Robert Schmidt. by Mr. Bernard Bauer, MD of the Czech-German Chamber of Commerce to Mr. Yogesh Inamdar, the International
EUREM-Award-winner, Bharat Forge
“Participating in the EUREM-training
sessions with all its case study discussions question of the payback period of the fees consumption. The project Yogesh Inamdar
changed my thought process on energy came up, especially keeping in mind that I am spoke about saves Bharat Forge Ltd. 360
saving methods as the training was a trigger already a BEE-certified Energy Auditor,” says MWh power annually, this is equivalent to
for new ideas,” Yogesh Inamdar said in an Yogesh Inamdar, pointing out the difficulties round about 22 lakhs INR. Including the
interview. “One such idea was the use of an in convincing his management to let him join costs of the EUREM-training Bharat Forge
electric drive in one of our cooling towers that the EUREM-training. “Before joining the Ltd. invested 4.65 lakhs INR into this one of
would optimize the flow as per requirement. EUREM I was able to identify and develop many energy efficiency measures proposed by
We received an immediate energy saving of two, three energy efficiency projects in a their employee Yogesh Inamdar, resulting in
40%. During subsequent EUREM-sessions period of six months to finally implement one. a payback period of slightly more than three
the concept of load management using a With putting things into new and different months. As the investment of 4.65 lakhs INR
Programmable Logic Controller (PLC) perspectives during and after the training I was only had to be done only once, the saving of 22
along with shutting down equipment in idle able to come up with two, three projects within lakhs INR will come in annually. This leaves
condition was introduced. The implementation two months which promised extremely short enough room for investments into a Solar
of this idea increased energy saving for payback periods of less than two, three months. PV-rooftop plant for the workshop Yogesh
this project to more than 53%. Continuous Recently I have prepared this year’s plan for Inamdar is in charge of at Bharat Forge Ltd.
thinking and improvement was the key to energy conservation and related investments Implementing this PV-plant willfurther reduce
not only keep increasing the efficiency of this which are not only much more realistic but the energy costs of this manufacturing unit as
project but also winning the International also much more appreciated than ever before. we all know that the sun will not send any bills.
EUREM-Award. We are very proud to win My all together twenty years of experience in It will not only save valuable CO2-emissions,
this award with our Indian style of thinking industries gave me managerial leadership and it will also help Bharat Forge Ltd. to become
and execution as we realized that a ‘Make in emergency handling techniques, however, the more sustainable in its energy mix as well as
India’-project with support from ‘Made in EUREM-training gave me directions to achieve with its image as this is the most efficient way
Germany’ can win us international recognition. my targets much more efficiently and with less to go ‘green’. IGCC will support this way into
Due to this success I have been nominated as investment. The EUREM-training shows the sustainable and responsible business practices
member of the Steering Committee for Energy path to think differently, it includes alternative with offering the EUREM-training not only in
Conservation projects as part of the prestigious ways to execute projects. I learned how to Pune but also at its other locations in India
Bharat Forge Excellence System, an internal optimize operation costs, I learned about new which are Mumbai, New Delhi, Kolkata,
company project for various excellence pillars techniques as well as valuable know-how on Bangalore and Chennai. All companies
based on critical success factors. Energy is alternative fuel possibilities. And I realized having identified a business opportunity in
definitely one of them”, so Yogesh Inamdar that a focussed networking with like-minded becoming energy efficient are most welcome
about the EUREM-training that changed his co-participants and industry experts broadens to let their operation-, maintenance- and
stand and value within Bharat Forge Ltd. my horizon in the field of energy efficiency shop floor managers participate in one
Initially, the proposal to join the EUREM- immensely,” says Yogesh Inamdar in his final of the EUREM-trainings, comparatively
training raised concerns with his management. statement about his successful participation in high returns on investments guaranteed
Would it be worthwhile to pursue this training the EUREM-training. if they implement commercially viable
considering the fees as well as the man-hours Short payback periods for low-investment energy efficiency measures as suggested by
to be spend in the training and during the energy efficiency measures are the key their employees. Conducting businesses
development of the energy project? “The to comparatively high savings in energy responsibly always pays off.

October 2015 | Energy Next | 69

 Special Issue | KfW

India needs to be innovative-

KfW Development Bank
K
fW Development Bank
has been working under
the German Federal
Government to achieve
its goals in international development
cooperation for more than 50 years. In
this regard, KfW is both an experienced
bank and a development institution with
financing expertise, expert knowledge of
development policy and many years of
national and international experience. On
behalf of the German Federal Government,
and primarily the Federal Ministry for
Economic Cooperation and Development
(BMZ), we finance and support programs
and projects that mainly involve public
sector players in developing countries and
emerging economies.
Germany and KfW are longstanding
partners of India. Since the 1950s, more
than 11 billion EUR has been sanctioned
by the German Government through KfW.
The Energy Sector is one of the focal areas
of the Indo-German Cooperation and shall
contribute to meeting the demand for energy transmission capacity. India has developed certification of green buildings, PAT
services in a safe, reliable, and environmentally the “Green Energy Corridor” concept to Scheme and promotion of energy efficient
sustainable manner. Currently KfW finances link generation hotspots to consumers. production technologies in industry. KfW
about 20 energy sector projects with a KfW works with Power grid Corporation works with SIDBI for Energy Efficiency
financing volume of about EUR 2.15bn and and State Transcos to expand its power in MSME, with NHB in energy efficient
further projects amounting of EUR 1.3bn are system and improve its management to housing and with EESL on energy
under preparation. accommodate the strong expansion of efficiency in households and public
In the electricity generation sector, renewables generation and consumption. infrastructure (street lighting).
KfW assists India in expanding its zero- But not all households are on-grid, Beyond market ready technologies and
emission electricity generation based on and access to energy remains a huge business models, India needs innovation
market ready renewable energy sources task for India. The government runs to meet the challenges. By providing
and technologies like solar photovoltaic substantial programs for off-grid power, funding and know-how KfW contributes
and wind as well as small hydropower and and KfW will support investments in of- to such innovation, takes away some
biomass. KfW helps closing the funding Grid systems through IREDA, based on financial risks and transfers its experience
gap for private investors both in terms renewable energy sources. from Germany and the global market. As
of loan tenure and cost of borrowing From the energy usage perspective, the largest development bank in Germany,
through Public Development Banks like India has large potential to reduce the being responsible for implementation
IREDA and REC. KfW also finances energy intensity of its growth. The of many German programs for Energy
public utility investments for utility scale Indian Government has taken initiatives Efficiency and Renewable Energy, as well
generation capacity. to improve energy efficiency on both as parts of the German “Energiewende”,
The additional generation capacity is demand and supply side. Examples in KfW is well placed to transfer such know
mostly on-grid and requires enhanced case are star ratings for household goods, how to India.

70 | Energy Next | October 2015

 Special Issue | political dialogue

IGEF: The best practices

of political dialogue
The Indo-German Energy Forum (IGEF) has been working at the heart of Indo-
German Renewable energy collaboration. Christoph Ernesti, talks about the
Indo-German collaboration, Green energy corridors and the future ahead

political level by the Indian Prime Minister makers and representatives from industry,
and the German Chancellor in 2006. It has associations, financial institutions and research
since then brought together two countries organisations from both India and Germany.
with very high ambitions when it comes to On the German side the Forum is led by the
a sustainable and environmentally friendly Ministry of Economic Affairs and Energy
energy supply, and continues to do so. The (BMWi), while on the Indian side the Ministry
main purpose of the IGEF here is to promote of Power (MoP) is in charge.
an institutionalised energy dialogue between The Support Office has been founded under
the two countries in order to intensify Indo- the International Climate Initiative of the
German cooperation. The main areas the Federal Ministry for the Environment (BMUB)
IGEF works in are energy security, energy in Germany and is run by the implementing

W
efficiency (EE), renewable energy (RE), agencies of the Government of Germany, GIZ
hen the Indian Prime private investment in energy projects as well and KfW. Its function is to liaise between all
Minister Narendra Modi as Collaborative research and development. interested stakeholders of the IGEF to facilitate
visited Germany for the Thus, the generation and distribution of clean the dialogue on all levels. It has offices in New
first time in April 2015, and sustainable energy has been one of its Delhi and Berlin.
his appearance at the Hannover Messe did main areas of work since the beginning.
not only kickstart the famous “make in ll How the Sub Groups work
India” campaign in the partner country. ll Forum and Support Office To understand how the IGEF actually sets
It also marked the 10th anniversary of The two most important parts of the IGEF are developments in motion, especially in the
the longest standing energy partnership its high level steering committee, also called renewable energy (RE) sector, it helps to take
between the two countries, the Indo- “Forum” as well as the IGEF Support Office. a look at the latest Forum-meeting which took
German Energy Forum (IGEF). So far 6 Forum meetings have taken place, the place in February 2015 in New-Delhi. As the
As a great example for a working political last one only in February 2015. The Forum 6th of its kind, it did not only host the meetings
dialogue, IGEF was established on the highest provides a platform for high-level policy of the IGEF Sub Groups 1, 2 and 3, but also

October 2015 | Energy Next | 71

 Special Issue | political dialogue

saw the founding meeting of a 4th. These Sub-

Groups are the real heart of the IGEF. Their
While earlier the focus in India’s RE
topics are efficiency enhancement in fossil sector was mainly on generation,
fuel plants, renewable energy, demand side
efficiency and now, as a fourth group, green
the Indian government has now also
energy corridors (GEC). recognized the need for a strong
The main aim of the Sub Groups is to
identify relevant energy policy issues and
transmission infrastructure that is
challenges in the respective national policies in necessary to distribute the increased
India and Germany within each Sub Group’s
field of action and with strong support from electricity input generated through
the private sector. The goal is to help establish
and foster a transparent and reliable investment
renewable sources.
framework in both countries. This includes acts as the so called Central Transmission renewable energy potential lies in wind and
the reduction of trade barriers between the Utility Corpration (CTU). This means that solar power. Both of these sources have in
two countries and the encouragement and it currently controls about 45,000 kilometres common that they depend on outside factors
stimulation of private sector activities. of transmission lines, which connect the and cannot produce a stable output 24 hours
single states and their power grids. On the a day. A high emphasis therefore has to be put
ll Cooperation for a better state level, smaller State Transmission Utility on flexible regulation capacities and regulation
transmission Corporations (STU) are responsible for the technology.
The newly formed sub group on green transport of electricity. Those STUs are also The solution to this are so called Renewable
energy corridors (GEC), though still young, part of the GEC programme. In total, India’s Energy Management Centres (REMC),
is already a good example for a successful current power grid has a length of more than which are capable to project the production
RE-cooperation between India and Germany. 100,000 kilometres. With the help of the KfW’s of renewable energy and then integrate it into
Already in December 2014, Germany’s funding, an additional 1010 kilometres of the existing energy mix and the transmission
development Bank KfWsigned the necessary interstate lines will be built and about 4000 networks. The REMCs are another key area
papers to support the GEC as one of India’s kilometres of intra state lines. of Indo-German cooperation. German
most ambitious RE-projects so far. The term Solving the current problem of a shortage of Gesellschaftfür Internationale Zusammenarbeit
Green Energy Corridors in this case stands transmission capacity will already increase the (GIZ) is one of the main advisors the the
for a strong expansion of the electricity grid availability of electricity as well as encourage Indian Ministry of New and Renewable Energy
infrastructure in India to go along with the private investors. Furthermore, the GEC (MNRE) regarding the installation of REMCs.
government’s plans of expanding green energy programme is estimated to reduce energy A successful year with a promising outlook
production significantly. losses during transport by 5% in the CTU The campaign “Make in India” is a key
While earlier the focus in India’s RE network alone. This amounts to a total of about initiative of the Indian government and
sector was mainly on generation, the Indian 260 Megawatt (MW), the capacity of a medium reflects in many facets the way the IGEF
government has now also recognized the need sized power plant. has been working to bring the countries
for a strong transmission infrastructure that is The second factor that makes transmission together in the last 10 years. IGEF has
necessary to distribute the increased electricity capacity so crucial for the expansion of green been cooperating with Indian and German
input generated through renewable sources. energy is the relatively high volatility of business associations, the Indian Embassy
The necessity to invest so heavily not only renewable electricity sources. Most of India’s in Berlin and many other stakeholders,
in the generation but also transmission of publishing various publications. Special events
renewable electricity mainly derives from two like sessions at the Intersolar Munich or
factors. The first factor is the geographical Mumbai also contributed to these efforts.
setup of renewable energy production sites. With even stronger ties between the
About 90 % of those are located in only seven countries and thanks to an already promising
states, the largest being Gujarat, Karnataka RE-year 2015, the IGEF is looking forward to
and Maharashtra. Furthermore, even in part III of its implementation, which is set to
economic powerhouses like Maharashtra, the start next year.
clean energy is produced far away from the big
The author is the Co-Director of the IGEF
consumption centres like Mumbai or Pune. Support Office New Dehli. In KFW, the German
Development Bank, he supports the Forum
ll A two level solution especially with the expertise of financial
cooperation and in all issues of Public Relations.
The solution to this challengelies on two He also works on the IGEF-strategy to improve the
levels. The “Powergrid Corporation of India” political dialogue between the stakeholders

72 | Energy Next | October 2015

 SPECIAL ISSUE | COMPANY FEATURE

Topsun modules make project

insurable and bankable

T
he various stake holders of associated with manufacturing. any contingencies due to bankruptcy or
the project such as equity For funding the solar projects banks unsettled warranty claims.
investors, project developers, typically emphasize the stable cash flows on The Indian solar energy sector has
service providers, financial the project’s long-term debt service, equity been growing rapidly, in the past few
institutions and finally equipment investors tend to focus on their expectations years, majorly due to Government’s
suppliers can actively manage long term on investment returns. Therefore PV initiatives such as tax exemptions, DCR,
risk drives arising out of inherent defects, project initiators has to look for suppliers subsidies and near vicinity to grid parity.
unsettled warranty claims and business with outstanding system constituents Gradually India is on its way to become a
interruption revenue losses. that are risk assessed for insurance and favorite investment destination for both
The insurance is a major key active bankability, to bridge the gap between long local and global players. To accelerate
management of project risk drive term warranties and insure for business the sector growth, Insurance & Banking
qualification. It is a result of assessment interruption so that cash flows are secured sector should frame a product as desired
of technical and financial due diligence for long term debt finance. in the Indian context for insurability
to assess the company standing in the PV modules due to their central role & bankability. RoW (rest of the world)
industry. FDD appraisal assessing book and long term warranty, are the most solar energy sector all stake holders are
keeping cash flow statements, sales, crucial technical components of a PV privileged due to insurance risk assessment
business model and overall financial project in both the initial investment by third party. Those qualified for
management measures, for TDD operations and a project’s cash flow, and therefore insurance & bankability are recognized
quality process, review of certifications, receive significantly more consideration as global affiliated units and are cherry-
surveillance audit records, product in in the planning process than inverters picked for project constituents. The Indian
process quality assurance systems, key and balance of components. As such insurance and banking sectors should
supply chain management, warranty gap PV modules are becoming commodity, come forward to address the need to
analysis, past years warranty claims analysis, bankability and third party insurance secure themselves against long term debts
service support are the major validations. is turning into an industry standard and facilitate project proponents in turn
In addition paramount concerns about and financial institutions are eying at facilitating industry to grow in line with
employee welfare and corporate social insurability as guard to protect the debt government initiatives. This new-fangled
responsibility, labor relations and employee recovery in case of business interruption risk coverage mechanism ropes in security
health and safety environmental impacts are and secure warranty terms in case of surveillance industry equally.

October 2015 | Energy Next | 73

 SPECIAL ISSUE

Backhome: Indian
market looks impressive
Schwaebisch Hall based ‘iPLON gmbh’ was set up by Chennai-born Victor
Thamburaj eighteen years back. With the rejuvenated activity in the renewable
quarters of India, iPLON too has journeyed back home. Thamburaj talks to
Areeba Falak about iPLON and the Indian clean energy market
Chennai is a motivation too. We have also offer to India’s “Make in India”
established an office in Chennai. campaign?
Renewable energy companies in Germany
What is your view about the goal (talking more about the SMEs) have been
set by Indian Government of going through a difficult period over the
100GW Solar Power by 2022? last couple of years. India presents an
Goal of 100GW of Solar Energy by 2022 opportunity here. The German companies
set by the Indian Government is a very have vast experience in renewable energy
ambitious goal. To achieve this goal, the technology. This experience can add value
government also has to play its role by to India’s RE industry. However, to be able
providing infrastructure to the companies to do business in India and be competitive,
and making the bureaucratic process the German companies have make use of
transparent and fast. The current Indian the available talent in India. The companies
market situation seems very optimistic but should invest to indigenize their product,

Q
Eighteen years before I feel that a lot still needs to be done on engineering and services. Cost is what
you established iPLON the ground level in terms of infrastructure drives the Indian market and to be un-
in Schwaebisch Hall, development. It depends on how much and competitive in this area can be lethal. Hence
Germany, after you had graduated how Indian fast the Indian government local production (in a phased manner) is
from IIT Madras and worked with is going to take reformative actions and highly necessary. After sales service is the
Bosch. What motivates you now provide support to the industry to achieve its next big issue and to build trust with Indian
to invest in India? target of 100GW by 2022. Germany could be customers, it is important to set-up an
We are investing in the Indian market which a good example in finding solutions to some engineering and development office that can
looks very promising in-spite of the working Indian challenges. customize solutions as per the requirements
difficulties that India presents. The Government of this market. The rewards are definitely
of India has set ambitious targets for Renewable What does Germany have to worth the effort. This is what we have learnt
Energy and is working aggressively under the
leadership of the Prime Minister Narendra
Modi. India is a Sun-rich country. I believe that
going renewables is the best (if not the only) way
for India. The opportunities are huge- for People
and Industry. Renewables and Smart-grids
would generate high-quality jobs for the young
population and iPLON wants to be a part of this
revolution.
iPLON also has operations in other
countries like Italy and Turkey. iPLON has
chosen India now because of its huge potential
for renewable energy and also from India,
iPLON in future can cater to the need of South-
East Asian markets.
Kick-off meeting in Chennai with Ms Susanne Striegler and and Achim Fabig
And the fact that I was born in Coimbatore,

74 | Energy Next | October 2015

 INTERVIEW

in the last 3 years and the ‘Make in India’

campaign is definitely giving this thought a
great boost.
Why German SMEs are planning
to invest in India?
Several German SMEs are planning to
invest in India seeing the huge potential
of the Indian Renewable energy market.
India being a country with more than 300
days of sunlight is still in nascent stage of
tapping its solar potential. German SMEs see
this as an opportunity to implement their
expertise and learning in Indian market.
Few of such companies are Lufft, Stadtwerke,
MKG, etc. They are looking for long term
goals as India can provide them doorway
to other developing economies and better
iPLON partners with welspun energy and conducted a PV workshopo for the studends of Musri Institute of Technology
competitive pricing in the world market. and visited the 50 MW site of Welspun energy

What are the barriers for German need to adopt the system of clean energy, some difficult times in the last 4 years.
SMEs to enter in India? waste management and clean water for the Customers here want to have a single point of
One of the barriers for the German SMEs sustainable and healthy development which contact for a major chunk of the work. Usually
is the trust factor. They are a bit suspicious aligns with the Indian government’s plan of the scope is much more than the SME’s core
about the theft of their technology. And ‘Swachh Bharat Abhiyan’ as well. business. So we haven’t been able to build
also a big factor is the Indian bureaucracy a team to do this so far. And we don’t even
which takes a long time for clearances, which What are some of the intend to go this way. We are on the other
deters the German SMEs from entering the achievements and also failures hand trying to build a network of professional
India market. Payment terms and financial of iPLON India? companies, good at their respective solutions
conditions are also different from Germany. iPLON has till now done more than 1 GWp and cater to the Indian market.
of operation and of that more than 250 MWp
How solar industry can in India alone. Also iPLON has signed an What products and services
contribute in employment MOU for 550MWp with Welspun renewables iPLON offers and what are your
creation? at Hannover Messe. In the distributed solar future plans?
Solar industry can create a large employment segment, we have a strategic tie up with iPLON provides Smart Grid solutions along
opportunity as it will boost the manufacturing Amplus Solar, India’s leading distributed with single window solution for rooftops,
sector of renewable technology. Solar plants solar company on the BOOT model in the Micro grid, isolated grid, utility scale power
need skilled persons with good knowhow. industrial and commercial segment, which plant and telemetry systems. Future plan
This will create a huge demand for skilled has also recently raised a significant funding of iPLON is to be a major player in the
workers for operating and maintaining solar from I Squared Capital. We have a strong operation and maintenance of solar power
plants and energy management as a whole. team in Chennai which is able to do most of plants and contributing in the growth of the
As solar plants are distributed in the rural the engineering and development for these Indian RE industry. Smart Grids with Energy
regions, this gives an opportunity to have projects. Efficiency (Captive power) will also be a
more jobs in the rural regions. Training is the To achieve this, we have been through focus for us.
most important factor here.

From your experience with

It is important to set-up an
German utilities companies, engineering and development
what lesson learnt in Germany
could be applied for rural India? office that can customise solutions
From our experience in Germany, I feel
that if we adopt more to green energy and
as per the requirements of Indian
focus at the rural regions (where most of market. The rewards are definitely
the RE plants are coming up), we can really
uplift the living standard of the people. We worth the effort
October 2015 | Energy Next | 75
 MNRE NEWS

Piyush Goyal invites US investors Indo-US Task

and renewable energy companies force on Clean
Energy Finance
holds meeting
A meeting of Indo-US Task force
on Clean Energy Finance was
held on September 9, 2015, in New
Delhi. The meeting was held under the
chairmanship of the Secretary, MNRE,
to discuss three issues, namely Currency
Risk Mitigation, Credit Enhancement
Mechanism; and Securitization of Assets
developed by US side.

F ICCI in association with USIBC

organized India–U.S. Energy Dialogue
challenges faced by international and
domestic investors in renewable energy
and Investment Roundtable on September space in India. While highlighting the Government
22, 2015, at the sidelines of US-India
Energy Dialogue at Washington DC.
importance of clean energy as a truly
viable and sustainable way of energy launches
Minister of Power, Coal and New and generation and a major driver of low Indian Wind
Renewable Energy, Piyush Goyal, delivered
the keynote address and interacted with
carbon growth, he emphasized on finding
new ways and means to reduce the cost Resource Atlas
leading US and Indian renewable energy of these technologies to enhance their
companies and investors at this event. scale-up. The event was also a roadshow
The Minister highlighted the ambitious for the promotion of the second edition
targets of installing 175 GW of renewable of Renewable Energy Global Investors’
energy in India by 2022 and invited US Meet and Expo (RE-INVEST 2016) to be
renewable energy companies to invest scheduled on 18-20 February, 2016, at
in India. He addressed the issues and New Delhi.

Upendra Tripathy inaugurates

conference on “Green Bonds” P iyush Goyal recently launched
the Indian Wind Resource Atlas
with a tracking level of 100 metres
that can also be used for measuring
solar radiation, providing a tool for
improving project efficiency and grid
management. The new atlas is an
online GIS (geographic information
system) tool to identify regional
and local wind energy potential in
India. The atlas module can also
be used for solar power projects to

A conference on ‘Green Bonds’ was

organized by FICCI on September
8, 2015, in New Delhi. Inaugurating
energy projects as the cost of technology
was difficult to bring down unlike other
inputs such as land and manpower costs.
check parameters for selecting a
site. According to Goyal, the atlas
will help policy makers at Centre
the conference supported by HSBC, He urged lending agencies, including and State Governments to deal
Upendra Tripathy, Secretary, Ministry banks, financial institutions and NBFCs, with issues related to tariff fixation,
of New and Renewable Energy, said that to take ethical responsibility for funding transmission, grade frequency etc
the cost of credit was the most crucial green projects by issuing dedicated ‘green and providing better infrastructure
component for undertaking renewable bonds’. for the investors.

76 | Energy Next | October 2015

 MNRE NEWS

Kochi’s `696 crore solar city master plan approved

T he master plan for Kochi solar
city project has received thumbs
up from the Ministry of New and
Renewable Energy (MNRE). The
city had submitted its plan in June.
The Rs 696-crore project is part of
the Central government scheme to
develop solar cities in select regions
of the country. The master plan has
envisaged that the city will need 975
million units (MU) of power per year
by 2021. It is estimated that the city
can achieve an “aggregate reduction
of 155.42 MU” in five years.

Piyush Goyal inaugurates

National Workshop on Lab India’s solar
Infrastructure energy
installations
reach 4.1 GW

I ndia’s total solar energy installations

reached 4.1 GW by the end of July
this year, according to data released by
the Ministry of New and Renewable

M inister of Power, Coal and New

and Renewable Energy, Piyush
Goyal, inaugurated the National
day national workshop was to discuss
the standards and procedures being
followed for effective implementation
Energy (MNRE). The country has
deployed nearly 358 MW of grid-
connected solar energy capacity in the
workshop on Lab Infrastructure for of testing and certification, identifying first four months of this financial year
Testing, Standardization, Certification the gaps to meet the needs of ensuring 2015/16, with a target to deploy 1.4GW
and Inspection for Renewable Energy quality and reliability of the systems/ by the end of the fiscal year. India has
Deployment Programme, on September products/ components, taking into also installed 234MW of off-grid solar
11, 2015, in New Delhi. The workshop account technology advancements and PV systems overall, but with none
was organized in view of the MNRE’s local requirements. Experts from test labs installed so far this financial year.
ambitious programme of 175 GW associated with testing and certification in Meanwhile the country now has a total
Renewable Energy Deployment solar, wind, etc. and representatives from of nearly 9 MW of solar water heating
Programme. The objective of this one SNAs participated in the workshop. installations.

October 2015 | Energy Next | 77

 IREDA Corner

China sends solar energy business

delegation to India

T
he China New Energy Chamber of The delegation engaged with relevant
Commerce (CNECC) organized
a high-level solar energy business
stakeholders in government and industry
with the purpose of understanding the
Solar Energy
delegation to visit India from September new energy investment landscape in India, Corporation
20-26, 2015, with participation from about
15 leading solar companies like TBEA,
financing and project procurement policies
and the situation in various states. In return,
celebrates
Lerri Solar, Suntech Solar, Hanergy, JA
Solar, Almaden, Epolly New Energy, etc.
the delegation highlighted developments in
the Chinese solar industry.
its Fourth
Foundation Day
K.S. Popli, CMD, IREDA, conferred
Eminent Engineer Award, 2015

S
olar Energy Corporation of
India (SECI) organised its “4th
Foundation Day” on September
20, 2015 at Scope Auditorium New
Delhi. The function was inaugurated
by R.P Watal, Secretary (Finance),

K.
Government of India, along with Dr.
S. Popli, Chairman and Engineers Bhawan, New Delhi. Ashwini Kumar, MD, Shri. Rakesh
Managing Director, K S Popli receiving Eminent Engineer Kumar, Director (PS), C. Kannan,
Indian Renewable Energy Award 2015 at 48th Engineers Day function Director (Finance), Rajeev Bhardwaj,
Development Agency Limited, (IREDA), from Prof. Ashutosh Sharma, Secretary Director (HR), P.C Pankaj, CMD/
was conferred the Eminent Engineer Department of Science and Technology. NEEPCO and B.V Rao, Director /
Award for the year 2015, along with seven Also seen in the picture Prof. J K Gehlawat, IREDA. Many other distinguished
others by Prof. Ashutosh Sharma, Secretary Chairman, IEI-DSC; Sh. PradeepChaturvedi, guests from MNRE, PSUs and industry
Department of Science and Technology on Council Member, IEI-DSC and Er.P C were also present.
September 15, 2015, at a function held in Mishra, Honorary Secretary, IEI-DSC.

78 | Energy Next | October 2015

 IREDA CORNER

IREDA & KfW cooperation for

renewable energy development
I
REDA has a long standing relationship
with the German Development Bank,
Kreditanstalt fur Wiederaufbau (KfW) in
the area of Renewable energy financing. The
relationship dates back to 1999, when IREDA
signed its first line of credit with KfW for
promotion of Renewable Energy.
IREDA has received four lines of credit
with government guarantee from KfW since
1999 for the financing of renewable energy
and energy efficiency in India. Under the first
lines of credit, sectors like solar PV, wind and
co-gen were financed, while the second lines
of credit was extended to small hydro and be fully utilized by Dec’15. Maharashtra and Haryana
co-gen sectors. The third lines of credit was Financing under KfW LoC has enabled o 1 project in biomass sector in the state of
for removing barriers in financing biomass setting of various projects across India. Gujarat and
projects, while the fourth lines of credit was for Following are the details: o 1 project in cogen sector in the state of
small hydro, solar PV, wind and co-gen sectors. • KfW I LoC of Eur 61.36 Million was used Maharashtra
IREDA is presently in discussion with KfW to finance 5 SPV projects in Rajasthan, 3 • KfW IV LoC is on-going and is financing
for two new lines of credit on non-sovereign co-gen projects in Karnataka and Andhra projects in:
basis. These include Euro 100 million under Pradesh, and 26 wind projects in Rajasthan, o Small hydro projects in the states of
the fifth lines of credit for promotion of green Karnataka, Maharashtra, with installed Himanchal Pradesh and Arunanchal Pradesh
power and another Euro 20 million for access capacity of 144.53 MW o Co-gen projects in the states of Karnataka,
to clean energy under the sixth lines of credit • KfW II LoC of Eur 50 Million was used to Maharashtra and Uttar Pradesh
with a focus on business segments like PV, financetotal installed capacity of 76 MW with: o Solar projects in the states of Maharashtra,
hybrid mini-grids, PV irrigation pumps and o 2 projects in small hydro in the states of Jharkhand, Rajasthan, Andhra Pradesh,
household lighting systems. Andhra Pradesh & Karnataka, and Gujarat, Punjab, andMadhya Pradesh
Under the four lines of credit received by o 2 projects in co-gen in the states of Tamil o Wind projects in the states of Rajasthan,
IREDA from KfW for a total value of Euro Nadu and Karnataka Andhra Pradesh, Karnataka, and Maharashtra
331.33 million (Rs 2,264.30 crore), the first • KfW III LoC of Eur 19.97 Million was used KfW has given Technical assistance grant
three lines of credit for a total value of Euro to remove barriers to Biomass power. Said LoC fund under KfW II & IV LoC of total EUR
131.33 million have been utilized, while the financed 41.625 MW of installed capacity and 1.5 Million which is being utilized for capacity
fourth line of credit for Euro 200 million to be 26,000 m3/day of biogas with: development and improvement of IREDA’s
used for promotion of renewable energy is to o 3 projects in waste to energy in the states of environmental and social framework.

Lines of Date of Amount of Amount of Tenure of loan Grace period Utilization

credit signing loan loan (EUR loan (` in cr) (years) (years) Purpose of loan status
agreement Million)
KfW-I 15-07-1999 61.36 301.55 40 5 Promotion of Fully
Line Renewable Energy utilized
KfW-II Sustainable Fully
Line 11-12-2008 50.00 329.76 12 4 Energy utilized
Programme
Removal of
KfW-III 08-10-2009 19.97 130.42 40 11 Barriers to Fully
Line Biomass Power utilized
Generation in India
KfW-IV 07-03-2011 200.00 1,502.57 12 3 Promotion of New On going
Line Renewable Energy
Total 331.33 2,264.30

October 2015 | Energy Next | 79

 Corporate Buzz

SunEdison inks Powe r co mmissions

Azure
with Tamil Nad MoU 30 MW pla
nt in Durg
u
SunEdison signed er has
Azure Pow
a memorandum si o ned the
of understanding commis
ale
first large sc
with the Tamil r plant hattisgarh.
solar powe in Durg, Ch
Nadu state governmen ap ac it y roducer,
t to develop 2 GW of o f 3 0 MW
c
d e n t so lar power p
wind and solar power
Azure, an in
dep e n hhattisgarh
5 years, as part of its lar
in the state in the next
ro je c t u nder the C to
ger plan to develop had won th
e p ply power
15.2 GW of renewable y 2 0 12 -2 017 to sup n C o mpany
energy in the country Solar Polic P o w e r D istributio
by 2022. Pashupathy Go h State Power
palan, SunEdison’s Chhattisgar fo r 2 5 years. Azure t was
President of Asia-Paci
Limited (CP
DC L) 0 MW plan
said that their support
fic and Sub-Saharan Afr
ica rt e d th at the entire 3 c e to the
repo advan
energy future will also
for Tamil Nadu’s clean
m m is si o n ed much in .
co date
help make progress scheduled
towards their larger co
mmitment. contracted

p w ins 50 mw ABB s
Adani G rou
pla nt in UP inver urpasses
wer ter ca 2
solar po pacit GW solar
y in In
Adani Gre
L
en
im ited Powe
dia
Energ y r
the group and autom
has won lant in Utt
ar
solar
ABB s ation
competiti
ve
M W so la r power p a n d inver urpassed technolog
r a 50 Ne w first s te its y
bidding fo r Pradesh uch c r capacity installed solutions
sh . U P N EDA (Utta m e n t Agency), base ompa in Ind
ia. AB
base
of 2 G
Prade Develo p d it ny do
e rg y had invite came had in Ma u B W
Renewab
le E n
rg y P o licy 201 , 3
ri v a te from rch 2 bling the 1 became t of
Solar E n e om p powe multip 015. T G W he
under its bidding fr r le ord he ad install
ri ff-based d solar to so developer dit ed
compe ti ti v e ta
g u p of o n - g ri
ni, lar EP s and ers from le ional 1 GW
s fo r se tt in rt from Ada Autom Cs. P fro a d ing s
companie in g 2 1 5 MW. Apa fo r
ekk m se
said t ation and a Tiitinen lling com olar
its totall o won th
e bid
power un c ts has als capac
hat A
BB
Motio
n
, com
pa
pone
nt
Essel Infr
a p ro je
it. ity fro can deliv Division P ny’s Discr s
50 mw un local m Be er up reside ete
setting up engin n
eerin galuru ea
to 3 G nt,
g and ch ye W of inver
servic ar te
e exp , supporte r
ertise d by
.

Inox Wind bags 100

Mw power project from
Ostro Energy
Inox Wind has
bagged an order
for a 100 MW
wind power
project at Lahori
in Madhya Pradesh from Ostro Energy. Inox will
supply and install 50 units of its advanced 2 MW
DFIG 100 rotor dia Wind Turbine Generators
(WTGs) for Ostro Energy on a turnkey basis.
The rotor has one of the highest swept areas
that make it ideally suited to maximise returns,
especially in low wind areas.

80 | Energy Next | October 2015

 Vestas Wind Systems gets
40 MW order in India
n co mm issions wind
Suzlo ct for NSE
Danish wind turbine
manufacturer pow e r proje
Vestas Wind ine
Systems received a 40 MW turbine order for Wind turb n
uz lo
maker S
a wind project in India. The order was for n c e d the leading
20 units of the V110-2.0 MW turbine for the annou of country’s n
p leti o n je c t fo r
com er pro uzlo
Khambaliya Wind Farm project in India. The wind pow e (NSE). S and
6.25 MW a l S to ck Exchang r s u p p ly
contract includes delivery, installation and ation er fo
commissioning of the wind turbines, as well bourse N e te ch n ical partn ty-five per cent
as th Six
Group w e project. e located
as a five year service agreement. Installation of is s io ning of th tion of NSE offic
co m m sump ject. The
the turbines is expected to be completed in the
f th e e n ergy con t b y th e wind pro ent
o
ai will be
me chievem
second quarter of 2016.
in Mumb is a m ilestone a t S to ck
n ’s firs
ompletio it is India
project c n sin c e ff- se t its
r N S E and Suzlo in d en e rgy to o
fo yw
e to deplo .
Exchang r u sa g e
owe
captive p

i n d F a r ms raises Clay C
CLP W re from green first 2 raft insta
`600 cro powe 00 KW ro lls Rajasth
r plan oftop an’s
bonds Fine b
one c t solar
One of th n
e tablew hin
are m a and cer
PV
CLP India Craft
larges t fo re ig o w er sector, In anufa
c
amic
in the Ind
ian p
rate Gree
n Powe dia roped turer, Clay
investors of corpo s. r in
c ed the is su an ce
- C LP Win d F arm first 2 Systems to Su-Kam
un 00 KW
an no port fo lio thro gh
u set Ra
r its wind 600 crore ble solar
PV po rooftop g jasthan’s
Bonds fo ra ise R s a
Farms will unlisted, redeem consu w
mptio er plant fo tied
rid
CLP Wind , sec ured, pro ce eds from facilit n a r cap
ted h e t
issue of ra ible debentures. T ing the capital y. co
renew Clay Craft mpany’s m e
tiv
n- co n vert d fo r fund pace. able e India anufa
no
will be u s e ewable s phase n is t c
b o n d s th e re n with a ergy in VK he first co turing
these projects in sue Corporate KW ro n inst I, Jaip mpan
ure of its is u
expendit e first to o a
Rajas ftop solar llation of a r. In the se to use
y
P W in d Farms th ian power sector.
is than’s PV sy n add cond
C L Ind KW ro fir ste itiona
nds in the oftop st manufa ms it will l1
Green Bo solar cturin also b 00
PV sy g com ecom
stem
s in to pany usin e
tal. g 200

ct for
namic
s , in pa
cts l l s w o r king on
ETI Dy crore proje Have lightiankegr
e l e s s
`1,000 w i r
ical goo
ds m
it
s said electr n wirele
ss
namic t with Leading orking o xample the
ETI Dy ac rovidin
g
Hav ells is w e
ed a p areas p water solution
s, for
has ink ji Pallonji & w o r k in te - lighting ble to
will be a ip
or
Shapo y (SPCPL) to ke was h ts th a t
tions li and would street li g ugh a ch .
p a n e s o lu ate thro ation t what
Com ructur nergy 00 com m u n ic
e autom Gupta, said tha
infrast renewable e h over Rs 1,0 o m
green r t in h
and also ia CMD, Anil Ra
i ed
ent a n d cts w o
the tw
o be sourc
treatm ork on proje ormed that e lls Ind e th er it will e th e
lly w s in f borate in ts H av
seen is w h
it wou ld b
initia ynamic to colla jec need s to b e
ernm e n t or
be p nio eer.
ET I D re e d ee pro the gov ers, who would
crore. tions have ag rtfolio of thr ts dire c tly by d sp e cial
a po gmen portfolio al own odifie
organis g an initial ted se in div id u
sch em e (m sa id
p in e st a The M-SIPS ), Gupta y the
develo ecured in t h rores. dle On the scheme b
y s s 1 ,000 c o Africa, Mid ep ack ag e
ex ten d e d
alre ad ove r R
d ia t ars . incentiv mme has been rs .
ting to ond In equen
t ye ra five yea
amoun panded bey su b s the prog ent by another
ex sia in m
will be South East A gove rn
a n d
East

October 2015 | Energy Next | 81

 EVENTS

Oct Solar Oct Global Conference Oct Asia Clean Energy

5-9 Plaza 19-21 on Renewable
Energy
27-28 Summit (ACES)
ACES is South East Asia’s
This October, Solarplaza will The three-day conference is leading event focusing
return to New Delhi and being orgnaised by CESD- on renewable energy
Hyderabad, leading a group Net in collaboration with technology, policy and
of 20-30 solar developers, NIT Patna as a step towards finance supported by leading
New Delhi & investors, consultants Patna, realising the set objectives in Singapore, SG, government agencies,
Hyderabad Singapore
and manufacturers for a Bihar, India the RE sector. The conference research institutes and
unique networking tour.. It will cover topics from solar industry in Singapore. It
provides an opportunity to energy, wind energy, bio- brings together regional
meet key-stakeholders and energy, waste-to-energy, tidal thought leaders in both the
government representatives energy, fuel cells, smart grids, public and private sector
and a chance to build and green buildings etc. and try to collaborate on critical
expand the Indian network to address the core issues of issues and opportunities in
with over 100 local key the sector. harnessing clean energy for
players in the solar market. the future.

http://www.ubmindia.in/renewable_
http://www.solarfinancetourindia.com/ energy/home http://www.asiacleanenergysummit.com/

Nov Nov Nov

EWEA 2015 Inter Solar India International
17-20 18-20 20-21 Conference on RE
Europe’s premier wind The conference cum exhibition & Environmental
energy event brings together is touted as India’s largest Engineering
high-level decision makers event in the solar energy
from over 60 nationalities sector focusing on the areas of The conference aims to
from across the world. photovoltaics, energy storage provide a platform to
Paris, The event provides an Mumbai, systems and solar thermal Makassar, postgraduates from across
opportunity for networking India technologies. The event Indonesia the world to present their
France
and exchange of ideas and provides a unique platform to research results, development
technologies for speedy the solar energy stakeholders activities & their experiences,
growth of the sector. It is from across the world to share new ideas, and research results
a great place to find new knowledge needed to expedite about all aspects of renewable
suppliers, check out new the development of the sector. energy and environmental
developments and build engineering. It also provides
partnerships. opportunity for discussing
practical challenges and
possible solutions.

http://www.ewea.org/annual2015/ https://www.intersolar.in/en/home.html http://www.ewea.org/annual2015/

DECEMBER 2015

Dec Dec
7th Annual Conference & The Scottish Green
1-2 Exhibition of Offshore Wind 3 Energy Awards, 2015
construction & Installation
Europe’s best attended meeting point Scottish Renewables is the voice of
dedicated to the Offshore Wind Construction renewable energy in Scotland and
industry in Europe - an interactive experience is committed to realising the full
that will guide, improve & complete your economic, social and environmental
Hamburg strategy for the next wave of construction Galsgow, benefits of renewable energy for
Germany projects. New technologies will be discussed Scotland our country. Both Scotland and the
to combat risk and the possibility for UK benefit from a strong renewable
concurrent cable lay with turbine installation. energy sector in Scotland that delivers
Understand how heavier loads and larger jobs and investment, while cutting
equipment will impact installation vessels carbon emissions and securing our
and plan to mitigate for unexpected costs. energy supplies

http://www.windenergyupdate.com/offshore-construction/
conference-agenda.php https://www.scottishrenewables.com/events/gea2015/

82 | Energy Next | October 2015

Seamless support
for end-to-end solar
solutions under one roof.
In an era of growing energy needs and rising
concerns about the environment, Su-Kam
offers a wide portfolio of solar products Solar Solutions
range from 100 watts to 100 MW. This • Top-On
Roof Grid and Off Grid Solutions
extensive range is suitable for the smallest • Home
Lighting Solution from 5 watt to 100 watt
residential home systems as also multi- • Home
DC Lighting Solutions
megawatt power plants.

Projects
Off-Grid
• Uttar
Pradesh New Energy DevelopmentAgency
• Tripura
Renewable Energy DevelopmentAgency
• Tamil
Nadu Energy DevelopmentAgency
• GATES
Institute of Technology
• Assam
State Electricity Board
• Assam
Rifles
On-Grid
• National
Hydroelectric Power Corporation (NHPC)
• National
Institute of Teacher’s & Training Research
• CREST
(Punjab Engineering College)
• Engineers
India Limited www.su-kam.com
Toll Free No. 1800-102-4423