Compendium of Solar Energy Success Stories from Across the Globe
Total Page:16
File Type:pdf, Size:1020Kb
Compendium of Global Success Stories in SOLARENERGY Climate Change as a Driver of Energy Efficiency in MSMEs TITLE Compendium of Global Success Stories in Solar Energy YEAR October, 2016 AUTHORS Chandan Bhavnani, Himanshu Shekhar, Arnesh Sharma, Eisha Popli (YES BANK) No part of this publication may be reproduced in any form by photo, photoprint, microfilm or any COPYRIGHT other means without the written permission of YES BANK Ltd. This report is the publication of YES BANK Limited (“YES BANK”) and so YES BANK have editorial control over the content, including opinions, advice, statements, services, offers etc. that is represented in this report. However, YES BANK will not be liable for any loss or damage caused by the reader’s reliance on information obtained through this report. This report may contain third party contents and third-party resources. YES BANK takes no responsibility for third party content, advertisements or third party applications that are printed on or through this report, nor does it take any responsibility for the goods or services provided by its advertisers or for any error, omission, deletion, defect, theft or destruction or unauthorized access to, or alteration of, any user communication. Further, YES BANK does not assume any responsibility or liability for any loss or damage, including personal injury or death, resulting from use of this report or from any content for communications or materials available on this report. The contents are provided for your reference only. The reader/ buyer understands that except for the information, products and services clearly identified as being supplied by YES BANK, it does not operate, control or endorse any information, products, or services appearing in the report in any way. All other information, products and services offered through the report are offered by third parties, which are not affiliated in any manner to YES BANK. DISCLAIMER The reader/ buyer hereby disclaims and waives any right and/ or claim, they may have against YES BANK with respect to third party products and services. All materials provided in the report is provided on “As is” basis and YES BANK makes no representation or warranty, express or implied, including, but not limited to, warranties of merchantability, fitness for a particular purpose, title or non – infringement. As to documents, content, graphics published in the report, YES BANK makes no representation or warranty that the contents of such documents, articles are free from error or suitable for any purpose; nor that the implementation of such contents will not infringe any third party patents, copyrights, trademarks or other rights. In no event shall YES BANK or its content providers be liable for any damages whatsoever, whether direct, indirect, special, consequential and/or incidental, including without limitation, damages arising from loss of data or information, loss of profits, business interruption, or arising from the access and/or use or inability to access and/or use content and/or any service available in this report, even if YES BANK is advised of the possibility of such loss. Maps depicted in the report are graphical representation for general representation only. YES BANK Ltd. Registered and Head Office 9th Floor, Nehru Centre, Dr. Annie Besant Road, Worli, Mumbai - 400 018 Te l : +91 22 6669 9000 Fax : +91 22 2497 4088 CONTACTS Northern Regional Office 48, Nyaya Marg, Chanakyapuri, New Delhi – 110 021 Tel : +91 11 6656 9000 Email : [email protected] Website : www.yesbank.in FOREWORD The world’s energy demand is projected to experience a staggering growth of 48% from 2012 to 2040. This ever-increasing demand, coupled with dwindling fossil fuel reserves and the increasing concern for climate change have brought the world to a stage where transition to a low carbon and climate resilient economy is the only way forward. Renewable energy sources have been embraced by the world as the fastest-growing source of energy, at an average rate of 2.6%, with investments in renewables rising to nearly USD 286 billion in 2015 alone – a six fold increase as compared to 2004 and, for the first time, more than half of all added power generation capacity, and a fourth of the world’s electricity needs being met by renewable energy today. Given these positive developments, all stakeholders including financial institutions, investors, governments and businesses need to mobilize green capital, channelize flows away from the unsustainable practices and take de-carbonization to the next level of maturity. However, the gap of USD 70 billion in climate finance needs to be bridged by institutions such as World Bank Group, Asian Development Bank, African Development Bank and other multilateral and bilateral agencies will have to come together for developing innovative financial mechanisms including credit enhancement schemes as well as reducing high hedging costs to create a larger impact. Further, mainstreaming of low carbon development and greater adoption of clean energy would need leveraging the ‘power of the collective’ to work with momentum and make this transformation happen. The historic launch of International Solar Alliance (ISA) in November 2015 at COP21 has created a new global landscape for galvanizing ‘collective action’ towards greater solar energy adoption. This requires global multiactor coalitions, to come together with enormous amount of will, favorable policies and ability to mobilize the USD 1,000 billion towards solar. Each member country would need to take into account its current infrastructure, natural resources and the stage of its socio-economic development to move forward towards a low carbon economy. A powerful coalition like the ISA, has presented a unique opportunity to accelerate momentum within countries, businesses and financial institutions to champion innovative pathways, reshape global action and invest in green technologies and solutions to scale up climate revolution. Aligned to this, in its endeavor to support the mammoth renewable energy targets of the Indian Government, YES BANK, fifth largest private sector bank in India, has proactively committed to target mobilizing USD 5 billion towards climate action in India by 2020, including funding 5,000 MW of clean energy. With one of the largest renewable energy portfolio in the country, the bank has facilitated financing towards generation of 1,311 MW in FY 2015-16, out of which solar projects constituted a significant 74%. Through our experience in the sector, we have realized that there is a need to maximize capital flows, access to new technologies and expertise and seamless exchange of knowledge amongst stakeholders. I would like to thank the ISA Secretariat and the Union Ministry of New and Renewable Energy for providing with an opportunity to partner and provide insights on successful case studies from across the world in this Compendium titled “Global Success Stories in Solar Energy”. I am confident that this compendium would serve as a harbinger, enabling all stakeholders to take pride, learn and adapt from the many successful stories presented. This compendium would be a valuable resource for policy makers, development finance institutions, social entrepreneurs and developers in improving their understanding of how ‘Solar’ can fuel a Renaissance in the global economy. Thank You. Sincerely, Rana Kapoor Managing Director & CEO Chairman Acknowledgements We would like to express our profound gratitude to various stakeholders for extending their exceedingly valuable observations, comments and sharing the cases that have helped make this report holistic. Our special thanks to Ministry of New and Renewable Energy, Government of India for guiding us during the process of developing this report. We would also like to thank the following for their contributions: 9 Mr Clement Rouchouse, Counselor for Economic Affairs, Embassy of France 9 Ms Deepa Kaushal, Secretary, Embassy of Argentina 9 Mr Deepak Malhotra, Investment Officer, IFC 9 His Excellency Mr Desh Sahae, Honorary Consul, Consulate of the Kingdom of Tonga 9 His Excellency Mr K S Bhalla, Honorary Consul General of the Republic of Nauru 9 Mr Michiel Bierkens, Head of Economic Cluster, Embassy of the Kingdom of the Netherlands 9 Her Excellency Ms Mossi Nyamale Rosette, Ambassador, Embassy of the Democratic Republic of Congo 9 Ms Namita Vikas, Group President & Managing Director, Climate Strategy & Responsible Banking, YES BANK 9 Ms Priya Dagar, Senior Policy Advisor (Energy,Environment & Climate Change), Embassy of the Kingdom of the Netherlands 9 Mr Stefan Hediger, Deputy Director, KfW India 9 Ms Susanne Dorasil, Head of Economic Cooperation & Development, Embassy of Germany 9 Mr Vinod Kumar N, Business Development Manager Cleantech and Agri Business, Australian Trade and Investment Commission (Austrade) Table of Contents Introduction .............................................................................................................................................. 13 Africa .......................................................................................................................................................... 17 Success Story 1: Scaling the Solar Market Garden, Benin ................................................................ 18 Success Story 2: Blazing Tube Solar Cooker, Burkina Faso ................................................................ 19 Success Story 3: Solar Bakery Project, Burundi ................................................................................