ENERGY NEWS DECEMBER-2020

Petroleum Conservation Research Association Sanrakshan Bhawan 10, Bhikaji Cama Place New Delhi 110066

INDEX

S. NO. SUBJECT PAGE

1 TRANSPORT

1.1 -E-Vehicles (EV) 1-10

2 ENVIRONMENT

2.1 - Air, Water & Sound pollution 10-15

3 ENERGY CONSERVATION

3.1 -Oil & Gas 16-19

3.2 -Electricity 19-23

4 RENEWABLES ENERGY

4.1 -Solar 24-30

4.2 -Wind 30-60

5 OTHERS 60-72

This Energy News contains excerpts of articles picked up from selected daily newspapers & magazines.

Pure EV signs MoU for indigenous lithium-ion technology

IIT Hyderabad-incubated startup Pure EV is collaborating with CSIR-CECRI on indigenizing Lithium-Ion Battery (LIB) technology for electric vehicles. Pure EV has signed a MoU with CSIR-CECRI to undertake joint research on the production of battery packs, validation of LIB cells and addressing the specific requirements to ensure the suitability of developed LIBs for critical performance at the Standard Operating Procedure (SoP) conditions. Lithium battery is the most reliable and commercially-viable choice for electric vehicles across the world. Currently, in India, Lithium cells are mainly imported from China, which is a very critical dependence necessary for final battery packs required for electric vehicles. To address this market monopoly, CSIR has launched a project titled, 'CSIR Innovation Centre for Next Generation Energy Storage Solutions (ICeNGESS)' with an aim to produce LIBs on a 100 MW scale. Pure EV is an electric vehicle vertical of the startup PuREnergy that is engaged in design and development of advanced LIBs manufacturing with core focus on battery thermal management system, hence making it one of the top picks in this mission. Speaking about this mission, V.K. Saraswat, Member, NITI Aayog, Government of India, said, "Achieving self-reliance and developing core competence in Lithium cells manufacturing is critical for the emergence of electric vehicles as a predominant mode of transportation in India. Since we are starting from a low base, it is critical that the eminent institutions working in the

1 cell manufacturing also collaborate with the industry partners who can carry out accelerated testing to provide the necessary feedback for further improvements."

Highlighting the impact of this collaboration between Pure and CSIR-CECRI, Saraswat said, "This collaboration between Pure EV and CECRI will lead to important outcomes on areas like Battery Thermal Management System (BTMS) and Safety which are critical for mass scale commercialization of these cells. NITI Aayog strongly encourages such partnerships which can lead to a more flexible supply chain for the evolution for an important industry like electric vehicles."

Rohit Vadera, Chief Executive Officer, Pure EV, said, "This collaboration with CSIR-CECRI to manufacture lithium batteries with indigenous cells for our high- speed EV 2W is a matter of pride for Pure EV due to the long term interests of the nation. Our extensive R&D work in the battery thermal management system gives us unique insights in the battery performance and lifecycle enhancement. We will work closely with the CECRI team in enabling them to realise the full potential of their initiative. We will carry out extensive testing for performance validation across various EV 2W models across the pan India terrain conditions and benchmark with respect to the imported cells and providing them crucial feedback to achieve mass scale commercialization." ***** Charging up battery storage capacity

Aman HansWith growing concerns on environment protection and on achieving energy security, and with major technological advancements, especially in the 2 field of battery storage during last decade, the world is today witnessing an unprecedented disruption in the way the energy sector and mobility once operated. Much can be inferred from the recent market signals. First, the valuation of the global e-vehicle giant Tesla has reached $500 billion, that is, more than the next 10 automakers combined. More significantly, its valuation is now more than ExxonMobil, Shell and BP combined, the three oil giants of the past century. It may be argued by few that there exists some froth in this, but the situation gives a clear indication of financial markets' firm expectation that EVs and batteries are the future growth areas, while oil shall slowly decay and may probably die out in the next two decades, or even faster. Second, increasing penetration of renewable energy, along with provision of energy storage solutions (ESS), the world is well-poised to leap to the next wave of energy transition. Even today, if the ESS component is considered in computing effective cost of renewable energy (RE) generation, the per unit is already closer to, or even lower, than the cost of electricity from conventional sources such as coal — typically a greenfield non-pithead plant.

This disruption is already evident in India with many recent successful tenders of MNRE with the provision of ESS, enabling the nation to achieve 40 per cent renewable energy penetration target by 2030. Going forward, once there is a framework with more conducive policies and with emphasis on support infrastructure and cost-effective options of advance battery storage, both these (e-mobility and renewable energy) disruptions shall transform into an indispensable force. An event that is now well-factored into future business strategies of the global markets. In alignment with government’s vision for Atmanirbhar Bharat, or self-reliant India, the Centre had set up the National Mission on Transformative Mobility and Battery Storage. The core objective of the mission has been to obtain overarching cohesiveness in policy framework for promoting e-mobility and battery storage in the country. The mission, taking a cue from these global developments and early market signals regarding the advanced battery manufacturing and that it represents one of the largest economic opportunities of the 21st century, proposed an integrated programme to facilitate Advance Chemistry Cells (ACCs) and battery storage manufacturing in the country.

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Nodal body

NITI Aayog, which is the nodal steering body for the mission, has already drafted the programme framework and the model bid documents have now been published on its website to initiate stakeholder consultation.

India in the past has missed multiple opportunities to tap the potential of ‘Make in India’ in various sunrise industries like manufacturing of solar panels, semi- conductors and accessories. These opportunities have been lost to other globally competitive industrial countries that have extended suitable incentives and provided requisite infrastructure for such industries to thrive. Same is the case with advance battery manufacturing, where various nations are extending financial incentives for promoting the domestic industry. The programme lays down a composite framework to ensure optimal risk allocation to ensure bankability of projects and ensure ease of doing business for the potential investors in advance battery manufacturing in India. It enables the beneficiary firms to obtain cash subsidy as additional financial incentive on the basis of a transparent mechanism. The subsidy shall compensate them for various infrastructural deficiencies that exists compared to the global markets. Further, no specific technology is being focussed upon or being incentivised under the programme and thus the sops would be given solely on the basis of performance specifications and output.

India’s expected demand for advance batteries till 2030 is about 1100 GWh across different use cases. This would be ample to support the economies of scale and the target of 50 GWh capacity of advanced battery storage manufacturing in India, as proposed under the programme, through commissioning of 4-5 Giga-scale factories by 2025. It is imperative to understand the opportunity cost incidental to our nation on account of foregoing robust domestic supply chain of advance cells and battery storage. Hence, taking this into consideration, the programme has laid emphasis on developing the overall domestic battery manufacturing ecosystem. Though this cannot be done overnight, it has to be achieved in a phased manner. For this reason, beneficiary firms would be given a grace period of five years from the appointment date to ensure adequate localisation and implementation of the committed capacity. While the first few years may see the high-scale import of cell components, 4 higher value capture translating into lower imports is expected in the years to follow.

Oil and gas

Furthermore, in the current scenario, Indian vehicles run on imported oil and gas. As of FY19, the country’s dependence on oil imports stood at 84 per cent, a sharp increase from the 77 per cent in FY14. As the nation progresses towards clean mobility, if there is inadequate supply of domestic advance batteries, India will simply go from being an oil-dependent country to a cell-dependent one in the absence of such a programme. In fact, according to government data, India imported ₹8,500 crore worth of lithium-ion batteries in 2018-19 and about similar levels in 2019-20. That is, six times higher than in 2014-15. Hence, through a collaborative approach, along with support and participation of various State governments, the proposed programme on advance battery storage will ensure that India captures the economic opportunities at hand, while delivering societal and environmental benefits that will improve quality of life for our citizens. These benefits shall outweigh any short-term disruptions. A transition of this nature will enable the nation to save ₹2-3 lakh crore by avoiding oil imports and, in addition, almost ₹3.5 lakh crore of advance battery imports by 2030, enhancing our energy security and curtailing our import dependency and therefore making our nation truly ‘atmanirbhar’. *****

Hybrid cars are quietly selling faster than fully electric vehicles

Hybrid cars are seeing a quiet resurgence as the boom in electric vehicles spurs automakers to give the older, cheaper technology a second look. This year has been an extraordinary one for electric-car manufacturers. Investors have embraced makers of pure-electric vehicles, driving the share prices of Tesla Inc. and Chinese competitor Nio Inc. to stratospheric levels. Drivers are also coming on board, with EV sales from China to Europe rising despite the pandemic. But the market risks becoming a crowded one, with more than 500 EV models expected to be available globally by 2022. Many conventional automakers are mulling their options, trying to decide which technologies will reign in the decades between now and a full transition away from combustion engines. The 5 investment decisions they make today could determine whether they sink or swim. While hybrids, which blend the power of a gasoline engine with electric motors and batteries, are now more than two decades old — the first Prius debuted in Japan in 1997 — they’re still seeing demand even as EVs loom large. Ford Motor Co. and Toyota Motor Corp. are among those releasing fresh hybrid versions of their flagship marques and investing anew in their hybrid component supply chains. While non-plug-in hybrids aren’t subject to the same sort of generous subsidies meted out to electric vehicles in China, Europe and California, their appeal has been rising after a multiyear slump. Hybrid sales in the U.S. rose 17% last year from 2018; in the European Union they rose 22% over the same period as the region braces for tightening emissions regulations. In China, Japanese brands — which claim the biggest share of the hybrid market globally — sold about 30% more hybrids, making the segment one of the market’s fastest growing. Electric-car sales by contrast increased 6% in 2019 from 2018, well down on previous years’ double-digit growth.

The reasons are severalfold. Hybrids offer savings at the pump, while not sparking the same range anxiety as EVs. And because hybrid cars are supported by a gasoline engine, therefore requiring smaller and less expensive battery packs, their overall costs are lower — an attractive prospect for a consumer wanting a car that’s better for the environment but who’s not able to shell out top dollar for a Tesla.

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That’s the dilemma facing car buyers such as John Briggs, a mechanical engineer living in Massachusetts who values fuel efficiency but isn’t ready to make a complete transition to EVs. He’s keeping his trusty hybrid Prius even though he bought Nissan Motor Co.’s popular electric Leaf five years ago.

“The nice thing about our Prius, it’s an efficient car and its range isn’t limiting like our EV’s is,” said Briggs, whose wife uses the Leaf for a short commute to and from work. They take the Prius for longer trips to go hiking on weekends. “It’s just not practical to have to stop and the charging time takes too long.”

Ford’s 2021 inaugural F-150 truck, part of the 43-year-best-selling F-series, is set to be the first full-hybrid, full-size truck available on the market. Toyota’s 2021 iteration of its bestselling crossover Rav4 is a plug-in hybrid called the RAV4 Prime that’s the automaker’s most powerful model of the car yet. In fact, hybrid sales are projected to keep growing until they peak in 2027 with a market value of $792 billion, according to IDTechEx.

Capital Question- Hybrid Rav4s outsold their gas-only counterparts in the U.S. in June, a rare occurrence that lends credence to Toyota’s theory that there’s demand for new hybrid versions of its existing models that come with added fuel-economy, torque and power. In April, a Toyota and Panasonic Corp.-led battery venture called Prime Planet Energy & Solutions Inc. began operations. It aims to produce batteries for 500,000 hybrid vehicles a year, starting in 2022.

“For now, we’re going to firmly move forward with making batteries for hybrid vehicles as they are today’s standard,” Prime Planet Chief Executive Officer Hiroaki Koda said, acknowledging that an industry shift to full-electric or fuel-cell vehicles will require flexibility and some change in direction.

That’s a question mark in some analysts’ minds, too. Will tying up too much capital in the hybrid-vehicle pipeline inhibit carmakers’ ability to invest in electric vehicles down the track? It is afterall a segment that’s expected to skyrocket to 64 million units from about 2 million units in annual sales over the next two decades as battery costs fall and consumer tastes shift. Similarly, while elevated oil prices and strict fuel-economy regulations can drive up hybrid sales, if either of those factors gets too strong, the market will be pushed toward full EVs,

7 according to Colin McKerracher, head of advanced transport at Bloomberg New Energy Finance.

Stepping Stone- Indeed, Honda Motor Co. is set to stop selling gas and diesel- only cars in Europe by 2022, Honda Europe Senior Vice President Ian Howells told Autocar in an interview published last week, suggesting a more decisive shift to hybrids. Toyota sees hybrids making up a quarter of sales, Bob Carter, Toyota’s executive vice president for North America sales, told reporters last week. That’s up from about 16% currently and capacity constraints are the only reason the company isn’t selling more hybrids now, he said. Toyota, which hasn’t released a mass-market all-electric car in any major market except China, will have to “quickly change its tune” on plug-in vehicles and EVs and sell more of them or risk falling short of the European Union’s regulations on fleet emissions by 2025, McKerracher said. “Eventually you reach a place where you’re at 70, 80, 90% hybrids and then you’re out of room to keep hitting those tightening regulations just by hybridizing vehicles.” Toyota however sees hybrids as a necessary stepping stone to other next-generation technologies. The world’s second-largest automaker is investing heavily in fuel-cell vehicles and battery EVs, Chief Competitive Officer Shigeki Terashi said at a briefing last month, but until those technologies mature, “hybrid vehicles are most practical.” Toyota is expected to invest about $13.5 billion through the end of the decade in electrifying its vehicles, as it targets sales of 4.5 million hybrids and one million full-EVs and fuel cell vehicles a year by 2030 or sooner. ***** Electrification: Powering the Shift for Two-Wheeler Segment towards Electric Mobility

Pune (Maharashtra): The future of electric two-wheeler market is growing rapidly and the major drivers for this market are the increasing health-conscious consumers, high traffic congestions, environmental concerns and initiatives which focus on reduction of toxic emissions. According to Fortune Business Insights, The Global E-bike segment was USD 10.05 billion in 2019 which will rapidly grow to 10.90 billion by 2027 whereas the Indian two-wheeler segment is expected to grow at a CAGR of over 44% during the period 2019-2025 as per

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Report linker. Adoption of any product or service is highly dependent upon how easily it seeps into human behavior. In India, rising consumer awareness, strong push by the government authorities and falling battery prices would favor a robust growth outlook for the E-bike segment. As per a recent study by Booz & Company for electric vehicles in India, a mere 5% conversion of vehicles to electric vehicles can save 45 lakh litre of petrol every year. It is also found that even after considering the pollution caused in electricity generation, each E-bike can save up to 350 Kg of CO2 emission each year. Major factors which are driving the attention towards the electrification revolution are as follows:

Pricing: Post BS-VI emission norms, the implementation cost of an electric two- wheeler is lower than traditional combustion engine vehicles. If the company delineates down to the cost of ownership like Annual Maintenance Charges, vehicle maintenance, RTO registration and so on, the cost adoption barrier has been eliminated.

Cost Acquisition: Running and maintenance cost are the pain points of the Indian consumers. Adoption of electric two-wheelers will not only be cost-effective but will also be the most affordable commodity across the country. With less than 9-10 moving parts, as against 100s in a traditional combustion engine vehicle, it becomes considerably cheap to maintain and service. Thus, in no way are electric two-wheelers more cumbersome to maintain or run but are rather economical and hassle-free. Unlike diesel or petrol vehicles, there is no need of any lubricant or expensive engine oil for electric two-wheelers.

Highest Torque Level: The torque of an electric two-wheeler is commendable and worth mentioning. The EVs have the highest torque level, greater than that of IC engines, as there is no loss of energy by combustion of fuel.

At times, transition from petrol to EVs seems to be an uphill task however, it can shape up India's learning curve and if done right the first time, it might prove to be a boon for the entire auto segment. Auto players along with financial institutions are coming together to empower the consumers purchasing ability through a variety of personal loan offerings. One such personal loan is the E-Bike loan specially designed to fuel the consumers' desires for buying electric

9 vehicles. People at LoanTap, are glad to be a part of the change and the company will continue to be an enabler in India's road towards a sustainable future. ***** Clean fuel must for NCR units: Central Pollution Control Board

Central Pollution Control Board (CPCB) has directed Delhi Pollution Control Committee (DPCC) and state pollution control boards of Uttar Pradesh, Rajasthan and Haryana to allow only those new industrial units that use cleaner fuels in Delhi-NCR. The decision has been taken considering the deteriorating air quality. CPCB in its order to chairmen of DPCC, Uttar Pradesh Pollution Control Board, Rajasthan Pollution Control Board and Haryana Pollution Control Board said: "Considering the fact that already directions have been issued to all the existing industries in Delhi-NCR to switch over to cleaner fuels, it has been decided that only those new industrial units will be allowed to set up in Delhi- NCR, which use cleaner fuels, including natural gas (CNG/PNG), liquefied petroleum gas, biogas, propane and butane." CPCB has asked the pollution control boards and the committee to exercise their powers conferred under Section 18 (1) (b) of Air (Prevention and Control of Pollution) Act, 1981. It has also sought an action taken report within 30 days. A DPCC official said, "Delhi government modified rules in 2018 under which only those industries will be given consent by DPCC that use cleaner fuels. Nearly 65-70 units in Delhi are in the process of converting to cleaner fuels while 20 other units in two industrial units are waiting for cleaner gas supply." During a meeting of high-level taskforce in December 2018, CPCB had decided that all industries in Delhi-NCR where gas supply was available should switch to PNG. CPCB in July 2019 had asked DPCC and SPCBs of NCR-Delhi to close down all industrial units in Delhi-NCR where PNG supply was available and industry had not shifted to PNG. However, after receiving a number of representations from industry associations expressing concerns on cost viability and time period needed for such conversion, CPCB told state pollution control boards of Rajasthan, Uttar Pradesh and Haryana that while their representations were being examined, coercive action might not be initiated at this stage against the industrial units in NCR, which otherwise were following the prescribed environment norms. In its order, CPCB said that industries located in 24 districts of Delhi, Uttar Pradesh, Haryana and Rajasthan 10 had been discharging environmental pollutants directly or indirectly into the ambient air. ***** Climate goals need 6 per cent yearly fossil fuel cuts, UN says

Oil, gas and coal production must fall six percent a year in order to limit catastrophic global warming, the United Nations warned Wednesday, even as high-polluting nations bank on fossil fuels to drive their Covid-19 recoveries. The UN's annual Production Gap assessment measures the difference between the Paris Agreement climate goals and nations' planned production of fossil fuels. Wednesday's edition found that despite this year's dip in production due to the pandemic, that gap remains large: countries plan a two-percent annual increase through 2030.

This is equivalent to more than double the fossil fuel production that would be consistent with the Paris deal's more ambitious goal of limiting warming to 1.5C (2.7 Fahrenheit) above pre-industrial levels. The assessment comes at a critical juncture in humanity's battle to stave off the worst effects of climate change, with several major polluters including China and Japan having pledged to reach net-zero emissions within decades. But the report authors stressed that emissions need lowering immediately, and that the Covid-19 pandemic offered governments a golden opportunity to rebuild their economies without relying on polluting fuels.

"The research is abundantly clear that we face severe climate disruption if countries continue to produce fossil fuels at current levels, let alone at their planned increases," said Michael Lazarus, lead author and director of the Stockholm Environment Institute's US Center.

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"The research is similarly clear on the solution: government policies that decrease both the demand and supply for fossil fuels and support communities currently dependent on them."

- Climate vs industry - The 2015 Paris accord saw nations promise to limit warming to "well below" 2C through sweeping emissions cuts.

With just over 1C of warming so far, extreme weather events such as wildfires and tropical storms have been rendered more powerful and frequent by rising temperatures.

The UN calculates that to keep the 1.5C goal within reach, nations need to reduce emissions by more than 7.5 percent every year this decade. The UN Environment Programme report on Wednesday said fossil fuel production needs to fall 6 percent each year in order to achieve such emissions cuts. This decade, coal, oil and gas production would have to decline annually by 11 percent, 4.0 percent and 3.0 percent, respectively, it found. But rich polluters plan not only to continue producing fossil fuels, but also expand their extraction and use. The report showed paths that governments could take for a "just and equitable transition away from fossil fuels" in the wake of Covid-19. Yet G20 governments have already committed $230 billion in pandemic recovery measures to sectors responsible for fossil fuel production and use, compared with $150 billion for green tech.

"The pandemic-driven demand shock and the plunge of oil prices this year has once again demonstrated the vulnerability of many fossil-fuel-dependent regions and communities," said Ivetta Garasimchuk, a lead author from the International Institute for Sustainable Development (IISD).

"The only way out of this trap is diversification of these economies beyond fossil fuels."

The industry watchdog Global Witness said in an extensive 2019 report that all new upstream oil and gas projects were incompatible with the 1.5C emissions pathway. Wednesday's report suggested policymakers wind down fossil fuel subsidies, restrict production and funnel stimulus money to green investments.

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"The production and use of coal, oil and gas needs to decrease quickly if we are to achieve the goals of the Paris Agreement," said UN Secretary-General Antonio Guterres.

He said immediate action was needed to ensure "a climate-safe future and strong, sustainable economies for all countries". ***** For sustainable economic development, net zero emissions in 2060 As the world marks the fifth anniversary of the Paris Agreement and commits to redouble efforts to tackle climate change, India should take the opportunity to set the ambition bar. To remind the world that it will take more than ambition to deal with the biggest challenge confronting humanity, it will require solidarity and collaboration. On December 12, Prime Minister Narendra Modi should take the opportunity to set an ambitious target for India—a commitment to achieving climate neutrality around 2060. A commitment that is ambitious for any country as it will require a complete transformation of the economy but more so for a low-middle income country with a huge population with millions of households that just now been electrified. Not to mention other developmental deficits that India needs to overcome. India should set this high bar of ambition not because other G-20 countries, particularly BASIC partners, have announced carbon or climate neutrality targets. India should do so because sustained economic growth essential to improving the living standards of all its people while limiting their vulnerability to climate change requires that adopting low-carbon and low- waste options. A climate neutrality or net zero target demonstrates the political commitment to this transformation. The economic impact of the pandemic notwithstanding the government is working towards building a $5 trillion economy by 2024. Making good on this target will require substantial investments tapping into domestic and international financial flows. A net zero target will give investors a sense of India’s development trajectory. It will signal investors that India recognises the risk that climate change poses and is taking measures to mitigate this risk. There is a view that India’s ambitious renewable energy programme and other measures and that it is the only G20 country with a NDC that is compliant to the Paris temperature goal of below 2C is strong signal 13 for investors. Proponents of this view cite the record flows of foreign direct investment in 2020. This “advantage” may well be temporary as more developing and developed countries set net zero targets and pathways. India is likely to find itself in competition for investments necessary for the transformation that a net zero emissions economy requires. Prime Minister Modi has consistently identified climate change as the biggest challenge facing humanity. India is particularly vulnerable with the incidence and intensity of heat waves set to rise, changes in monsoon and precipitation patterns, and the increase in cyclones on both coasts of the country. A net zero target is clear signal that recognition of the challenge will be reflected in policy and action. India’s pollution problem is another reason for setting a new zero target. The promise of ensuring minimal emission will require transforming the key sectors of the economy—energy, transport, agriculture, industry, buildings. A transformation that will produce less waste, use resources more efficiently and effectively, and promote sustainable production and consumption. This transition will help tackle the persistent air and water pollution problems.

A net zero target, which will effectively require reducing greenhouse gas emissions substantially (or in India’s case avoiding emissions) and balancing out unavoidable emissions with sinks such as forests or use of technological solutions for carbon capture and use. This will require a transformation that will create new economic opportunities, improve lives through improved ecosystems that sustain life on earth, raise productivity.

With major economies setting net zero targets, it is clear which direction the world is moving in. If India wishes to compete effectively and grow it will need to transition to a low carbon economy. And it must begin by building its policies and regulations to make the transition. A climate neutrality target is a first and bold step in this direction. It is therefore in India’s self-interest that it takes this ambitious step. The transformation required will not be easy. That India’s initial nationally determined contribution is in compliance of the Paris Agreement’s temperature goal and that it is set to meet its 2030 targets provides a good base for this transition. The energy sector is critical in this transformation. The bulk of India’s emissions, according to GoI’s biennial report to the UN, is from energy: 73.2%. Of this, 57% is from electricity, with the remaining from manufacturing

14 and construction, transport, and commercial, institutional, and residential use. Experts say that India’s path to net zero runs through the electricity sector. As a milestone, India should consider peaking its emissions by 2035. Enhancing renewable energy capacity target to 450 GW by 2030 (which corresponds to a 40 to 43 per cent share of electricity generated and 60 to 65 per cent of electricity generating capacity), decarbonising the railway network by 2030, transforming fossil fuel companies such as Coal India into energy companies (the coal major has pledged to set up 3000MW of solar projects and become a net zero company by 2023-24) are among the actions and policy decisions that will underpin the transition.

As will the decision to shutdown inefficient coal power plants—10GW of coal powered thermal plants (accounting for 5 per cent of coal power capacity) have already been identified for closure. The focus on efforts by industry—24 major companies have committed to emission reduction and enhanced use of renewable energy. Other efforts such as restoration of 24 million hectares of degraded land and the increased adoption of zero-budget farming will underpin the transition. While these measures are important, they are by no means sufficient for the complete transformation that a net zero target requires. The government will need to take steps to create the institutional and regulatory structures that will make this transition possible and sustainable. The transformation will not be easy. And India will need to depend on the spirit of solidarity and collaboration that underpins to the Paris Agreement to make the transition to climate neutrality a reality. This is India’s “standing at the edge of the cliff” moment. There is no doubt that the world is moving towards a low carbon economy. India can choose to keep standing at the edge of cliff only to be pushed over by the force of circumstance or to jump now, taking the right kind of precautions and safety measures to ensure a smoother descent off the cliff. The choice to make is clear.

A commitment by Prime Minister Modi to achieve climate neutrality by 2060 will give a clear signal from the highest levels that will unlock financial investments, promote innovations and provide direction to make this transformation and transition a reality. ***** 15

Denmark to end oil and gas exploration in North Sea in 2050

Denmark's government on Thursday agreed with a majority in parliament to put an end to all oil and gas exploration and extraction in the North Sea by 2050 as well as cancel its latest licensing round. The future of Denmark's oil and gas operations in the North Sea has been a political issue after the Nordic country agreed last year on one of the world's most ambitious climate targets of reducing emissions by 70% by 2030 and being climate neutral in 2050. The deal agreed by lawmakers late on Thursday will cancel a planned eighth licensing round and any future tenders, while also making 2050 the last year in which to extract fossil fuels in the North Sea.

"We are now putting a final end to the fossil era," Climate Minister Dan Joergensen said in a statement.

The eighth licensing round faced large uncertainty after energy major Total withdrew from the tender process in October, leaving only one applicant remaining. Denmark is the largest producer of oil and gas in the European Union, which does not include Norway and the U.K., both much larger producers. Denmark is estimated to produce 83,000 barrels of crude oil and another 21,000 barrels of oil equivalent in 2020.

The cancelled tender and an end-date in 2050 would translate into a total loss of 13 billion Danish crowns ($2.1 billion), the Ministry of Climate, Energy and Utilities estimated, but it said this amount was subject to substantial uncertainty.

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In June, an independent government adviser recommended ending any future oil and gas exploration in the North Sea, saying a continuation would hurt the country's ambitions as a front-runner on fighting climate change. ($1 = 6.1263 Danish crowns) ***** PEC+ agrees slight easing of oil cuts from January

OPEC and Russia on Thursday agreed to slightly ease their deep oil output cuts from January by 500,000 barrels per day but failed to find a compromise on a broader and longer term policy for the rest of next year. The increase means the Organization of the Petroleum Exporting Countries and Russia, a group known as OPEC+, would move to cutting production by 7.2 million bpd, or 7% of global demand from January, compared with current cuts of 7.7 million bpd. The curbs are being implemented to tackle weak oil demand amid a second coronavirus wave. OPEC+ had been expected to extend existing cuts until at least March, after backing down from earlier plans to boost output by 2 million bpd. But after hopes for a speedy approval of anti-virus vaccines spurred an oil price rally at the end of November, several producers started questioning the need to keep such a tight rein on oil policy, as advocated by OPEC leader Saudi Arabia. OPEC+ sources have said Russia, Iraq, Nigeria and the United Arab Emirates have all to a certain extent expressed interest in supplying the market with more oil in 2021. Russian Deputy Prime Minister Alexander Novak said the group would now gather every month to decide on output policies beyond January with monthly increases not exceeding 500,000 bpd.

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"This is a good decision as it allows us to stop and pause and review what needs to be done in order not to hurt the market," Novak said. Novak said compensatory cuts for countries which overproduced in previous months had been extended until March 2021. Saudi Energy Minister Prince Abdulaziz bin Salman said the meeting was difficult due to differences between many members.

"It is very excruciating, tiring and frustrating... For two or three days I threw in the towel, but the towel comes back to me," said Prince Abdulaziz. OPEC+ has to strike a delicate balance between pushing up oil prices enough to help their budgets but not by so much that rival U.S. output surges. U.S. shale production tends to climb above $50 a barrel. Monthly meetings by OPEC+ will make price moves more volatile and complicate hedging by U.S. oil producers. "We have seen some hedging but we haven't seen an onslaught yet. As prices go up, hedging will increase," said Gary Ross, co-founder of BlackGold Investors. After the OPEC decision, Brent crude prices extended gains, settling nearly 1% higher at $48.71 a barrel. "We still don't know what will happen to Iranian and Venezuelan supplies after the arrival of (new U.S. President Joe) Biden. So there are clearly some oversupply risks," said Ross. ***** Iran outlines budget, promises less reliance on oil amid U.S. sanctions

Iran's government presented a draft state budget of about $33.7 billion to parliament on Wednesday, promising less reliance on oil revenues and higher 18 growth despite U.S. sanctions that have crippled the Islamic Republic's economy, Iranian media reported. The value of the draft budget is set about 8,413 trillion rials, up 74% from last year's figures in rial terms but lower than last year's budget of $38.8 billion in hard currency terms because of the sharp fall of Iran's currency.

"The next year's budget bill focuses on infrastructure reforms, health, creating jobs, non-oil exports and the nation's welfare," according to Iran's state news agency IRNA. Iran's next fiscal year starts on March 21. A budget official, quoted by Iranian news agencies, said an oil price of $40 per barrel was used in budget calculations. President Hassan Rouhani said in a televised cabinet meeting that Iran expected to sell more oil next year, adding that the government planned to use state bonds and selling of state properties as sources of revenue.

"We believe Iran will sell more oil next year, around 2.3 million barrels per day, including the exports and domestically," Rouhani said. "But the revenue will be used to develop or empower the underprivileged. This does not mean that our budget has become more dependent on oil." It is estimated that Iran exports less than 300,000 barrels of oil per day (bpd), compared to a peak of 2.8 million bpd in 2018, when Washington exited Iran's 2015 nuclear deal with six powers and reimposed sanctions that have hit Iran's economy hard by sharply cutting its vital oil exports. U.S. President-elect Joe Biden, who will take office on Jan. 20, has said that he would return to the pact and would lift sanctions if Tehran returned to "strict compliance with the nuclear deal." Parliament speaker Mohammad Baqer Qalibaf, a critic of Rouhani, said "what we really need to achieve in terms of revenue is zero reliance on oil income", state media reported. "Our oil income should be used for infrastructure reforms and not for the budget," he said. ***** EESL, MSEDCL commission eight megawatt solar energy project in Maharashtra

State-owned EESL and the Maharashtra State Electricity Distribution Company on Tuesday announced commissioning of about 8 megawatt solar-agro project at Devdaithan, Maharashtra. The 7987 KW project in Ahmednagar district is part 19 of Energy Efficiency Services Ltd's (EESL) commitment to the state under the Mukhya Mantri Saur Krishi Vahini Yojana, wherein it will supply the state discom with 679 MW of solar power. The project was completed in six months. As a part of the initiative, the discom's agri-feeders are being transformed into solar agri- feeders. EESL has already installed two solar projects in Ahmednagar district, including a 507 KW project in Ashwi and 858 KW project in Koplewadi. Under these projects, EESL has transformed feeders supplying electricity for agri- purposes into solar feeders, which are helping 3,000 agricultural consumers.

The initiative has also reduced 11,500 tonne in CO2 emissions, which will result into Rs 2.2 crore savings to the discom per year. EESL has invested Rs 33.7 crore in this project.

As a part of a MoU with MSEDCL, EESL installs, finances, operates, and maintains decentralized power plants (0.5 MW- 10 MW) in the open spaces around MSEDCL sub-stations.

"Our teams are working tirelessly to solarise MSEDCL's unused substation land so that more and more Maharashtra customers can benefit from the initiative," Rajat Sud, Managing Director, EESL, said.

Maharashtra State Electricity Distribution Company (MSEDCL) Chairman and MD Aseemkumar Gupta said the initiative has the potential of providing a high- quality energy source to the agricultural sector and will be beneficial to millions of farmers across Maharashtra. It will also greatly benefit the state's distribution companies.

"By supporting the implementation of the Mukhya Mantri Saur Krishi Vahini Yojana throughout the state, we will enable the state to produce 1.4 crore units of low-carbon electricity, while reducing CO2 emissions by 9.73 lakh tonne," Gupta said. *****

20

India marches towards 100% access to LPG, electricity, but gaps remain

Twesh MishraNew Delhi, December 10 India has attained almost 100 per cent access to clean cooking fuel and electricity supply. This mammoth achievement is on the back of a conscious push towards boosting and democratising energy 21 access, which has been on the Centre’s agenda for a while. The BJP-led government claims most credit for this exercise as it has practically doubled the number of LPG, or cooking gas, consumers in the country since 2014. This increase was driven by deposit-free LPG connections for the poorest in the country through the Pradhan Mantri Ujjwala Yojana (PMUY). Till date, over eight crore new LPG consumers have been created through this programme. The deposit-free connections form the largest chunk of new additions since 2014. It is estimated that there were 14.8 crore LPG consumers in 2014; today these numbers have swelled to nearly 28 crore. According to official estimates, LPG penetration has now reached 98 per cent of Indian households. A more modest but equally significant progress has been reported in the electrification of villages and, subsequently, households.

Power for all

Over 19,000 villages have been electrified under the Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) since its launch in 2015. This is minuscule in comparison to the over 6.5 lakh villages that were already electrified in the country then. At its core, the DDUGJY is considered a rechristened Rajiv Gandhi Gram Jyoti Yojana (RGGJY), a similar programme run by the UPA governments before 2014. The present dispensation claims it had to go the extra mile to connect some remote villages as the previous governments went after the low- hanging fruit. While most electrification is complete, the government still identifies some villages (the number varies) as un-electrified and work-in- progress because of access issues. But the second leg of the electrification programme, the Pradhan Mantri Sahaj Bijli Har Ghar Yojana - Saubhagya was the much-needed extra mile. Some 2.8 crore households have been electrified under the programme since its launch in October 2017. These were added to the existing 21.3 crore electrified households present in the country, taking the total number of homes with electricity access closer to 25 crore.

Metered connections

Interestingly, not all of these Saubhagya homes were seeing electricity for the first time. According to officials tracking the progress of these schemes, the numbers include some who were using illegal electricity connections which are

22 now metered. This also explains the noticeable difference between the near 100 per cent access claims in the flagship schemes and the numbers on the ground. ***** Grow biofuel crops to augment earning: Gadkari tells farmers

Our BureauNew Delhi, December 10Farmers in Bihar should diversify to produce biofuel crops in order to increase their earning potential, said Nitin Gadkari Minister for Road Transport and Highways. He was inaugurating a national highway bridge in Bihar. Gadkari, who is also the MSME Minister, said that making ethanol from corn, sugarcane, biomass and rice (husk) can augment farmers’ income.

‘Set up biofuel units’

Pointing out that the market price of corn is almost 40 per cent lower than the Minimum Support Price, Gadkari said Bihar could focus on setting up factories and use these farm produce for making biofuels as that can complement farmers’ income. He said he will take steps to provide loan assistance for such projects.

“Ten per cent ethanol blending is permitted for petrol and diesel…Demand (for ethanol) is much higher than the availability. Vehicle manufacturers like Bajaj and TVS have started making bikes that run with 100 percent ethanol…,” added Gadkari.

He said the Road Transport and Highways Ministry was probably constructing the most number of bridges in Bihar and Assam due to the presence of long stretches of rivers — Ganga and Brahmaputra

Gadkari assured that the six-lane Koilwar Bridge on Sone River will be completed within a year. He inaugurated three lanes of the bridge that were ready. The bridge will connect Bihar and Uttar Pradesh. *****

23

Strong gusts push up wind power generation

Wind power generation across the state surged substantially with stronger winds blowing over past few days. The average wind power production jumped to 1,808MW on Sunday, which was almost six times the 315MW generation registered on Monday last week. The electricity generated from the wind energy sources was even higher at 2,753MW, 3,365MW and 3,440MW on Saturday, Friday and Thursday respectively, shows daily data compiled by the Western Region Load Dispatch Centre (WRLDC), which is a central government entity. The generation was as low as 16 MW on Tuesday.

“The wind speed has accelerated over the past few days, which has pushed up wind power generation the state. The production had even crossed 3,000MW mark on Thursday and Friday last week,” said K K Bajaj, a city-based energy and regulatory expert. With electricity generated from wind being cheaper than the 24 conventional power, higher wind power generation is beneficial to consumers. According to the Indian Wind Turbine Manufacturers Association (IWTMA), Gujarat’s current installed wind power generation capacity is 7,542 MW. The state also added 1,468MW wind power generation capacity in 2019-20, which was the highest among all Indian states. Gujarat currently ranks second in terms of installed generation capacity. ***** Houston Company to build first U.S. vessel to support offshore wind boom

A Houston-based company said on Thursday it will build the first U.S. flagged vessel to install offshore wind projects off the east coast of the United States in preparation for an expected construction boom in the nascent industry. Great Lakes Dredge & Dock Corporation said the vessel for subsea rock installation would comply with the 100-year old Jones Act -- which requires goods moved between U.S. ports to be carried by domestically-built ships staffed by U.S. crews -- and could be operational as soon as early 2024. The construction timeline would coincide with those of major U.S. offshore wind projects in the pipeline. East coast states have set targets to procure large amounts of offshore wind power over the next 15 years. There are 14 projects in development that are expected to be operational by 2026, according to the American Wind Energy Association.

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"The full potential direct, indirect and induced economic benefits of offshore wind development have yet to be calculated because the various aspects and value of the supply chain are still unknown and yet to be developed. The potential impacts are staggering," said Lasse Petterson, GLDD's chief executive officer.

The United States, with just over 40 megawatts of offshore wind energy capacity, lags far behind Europe where there is 22,000 MW. But President-elect Joe Biden is promising to usher in a swift transition to renewable energy sources to fight climate change. Last month, Danish renewable energy giant Orsted and North America's Building Trades Unions announced they will partner to train an offshore wind construction workforce to build the firm's pipeline of projects down the U.S. East Coast. Analyst Rystadt Energy warned last week of a shortage of installation vessels worldwide. There are currently only 32 active turbine installation vessels globally and 14 dedicated foundation installation vessels. ***** France to push investment ties with India; Renewable Energy in focus

Ambassador of France to India Emmanuel Lenain will pay an official visit to Chennai, on December 7-8, aimed at strengthening economic and investment cooperation between France including the Reunion Islands and Tamil Nadu with which Paris share historical ties. France shares a close and long-standing relationship with Tamil Nadu which includes deep cultural and people-to-people 26 ties in particular between the state and France’s Reunion Island. Moreover, owing to its manufacturing and innovation-oriented ecosystem, Tamil Nadu, especially Chennai, has emerged as a hub of French business and investments in India. Tamil Nadu is home to more than 140 French companies and attracts a significant share of all French investments in India. French companies are present in many priority sectors such as automotive, healthcare, industry, digital technologies, services, or energy. Despite the pandemic, they have continued investing in Tamil Nadu, with significant projects such as Engie’s 250 MW wind power plant in Tuticorin and Total’s new LPG plan in Coimbatore. To reflect this growing partnership, France decided in 2017 to open a Bureau de France in Chennai whose mission is to boost cooperation, exchanges, and mobility, including that of students, between France and Tamil Nadu. During this visit, Lenain will meet Chief Minister of Tamil Nadu, Thiru Edappadi K. Palaniswami. The talks will focus on how France and French companies can continue contributing to Tamil Nadu’s ambitious development goals in the areas of industry, R&D and renewable energy. Lenain will also highlight the significant business opportunities for Indian companies wishing to invest in France, particularly in La Réunion Island.

In this context, the Ambassador will also hold talks with Tamil Nadu’s Minister for Industry, Thiru M.C. Sampath, and participate in the signing ceremony of a memorandum of understanding between Industrial Guidance and Export Promotion Bureau of Tamil Nadu and the Indo-French Chamber of Commerce and Industry. This MoU establishes a framework to facilitate connections between French businesses and Tamil Nadu, enabling investments and promoting ease of doing business. Among the many French companies that are present in Tamil Nadu, Lenain will visit Air Liquide’s medical systems facility where medical ventilators are manufactured. During the pandemic, Air Liquide Medical Systems India ramped up production to supply 1000 ventilators to Tamil Nadu’s hospitals, mirroring the support that the France and India lent each other during this crisis. In order to promote France as an attractive investment destination for Tamil Nadu’s companies, the envoy will visit the main factory of the Royal Enfield motorbike company which has established a site in France to address the European market. In 2019, France became the top FDI destination in Europe and in the context of Brexit, will be cementing its position as the 27 gateway to Europe for Indian investors. Cooperation in climate and environment is a major pillar of Indo-French partnership, both at the bilateral level and on the international stage. Lenain will also visit Kabadiwala, an Indian start-up that aims to revolutionize urban waste management through digital solutions. ***** Urbanisation and future energy pathways

For the first time in history, most of the world's population is living in urban areas, even in less-developed regions, and that will soon be true even if rapidly urbanising China is excluded. Like the shift in the centre of the global economy from the North Atlantic to Asia, the transition from fossil to non-fossil energy, and population aging, urbanisation is one of the economic mega-trends. It is in the rapidly growing cities and megacities of Asia, the Middle East, Africa and Latin America where the predominant shape of the future energy system will be determined. Urban populations first overtook their rural counterparts in 2007, according to estimates compiled by the United Nations based on national definitions of urban and rural. In more-developed regions, defined by the United Nations as North America, Europe, Japan and Australia/New Zealand, an urban majority first emerged during the 1930s and 1940s. In less-developed regions, however, that happened for the first time only in the last five years, driven mostly by the great migration from the countryside to the cities in China. Even excluding China, the less-developed regions of the world will have an urban majority for the first time by 2023 ("World urbanisation projections", United Nations, 2018). Rural populations have, however, continued to rise in absolute 28 terms (https://tmsnrt.rs/3gTRdwB), but that too is about to change as the rapid migration to cities outweighs the natural reproduction and increase in rural areas.

Rural populations are projected to peak between 2021 (globally), 2024 (less- developed regions) and 2036 (less-developed regions outside China).

By contrast, urban populations are expected to grow every year in both more- developed and less-developed areas through 2050.

ENERGY TRANSITION

The anticipated transition to a non-fossil energy system will play out in urban centres, especially in Asia and other less-developed regions. But the interaction between urbanisation and energy use is ambiguous. Densely populated urban areas tend to consume less energy per person, especially for mobility, because they can support more public transportation systems, including for daily commuting and other short journeys.

Urban residents tend to be more concerned about air pollution, and more willing and able to push for pollution controls to reduce health risks, at least once incomes pass a certain threshold. But urban areas also generate higher levels of productivity and personal incomes, which translates into increased demand for energy services, including long-distance transportation, such as cross-border aviation. Urbanisation could therefore either increase or reduce per capita energy consumption, depending on specific technology and policy choices, including land use and transportation planning. Increased urbanisation could be compatible with a wide range of different energy systems - ranging from petroleum-fuelled cars and aircraft to wind and solar-powered electric cars, buses and trains.

ALTERNATIVE FUTURES

Any credible projection for the global energy system must locate it within the context of other mega-trends. Treating the development of the global energy system in isolation makes no sense; energy pathways must be consistent with urbanisation, population aging and the shift of economic activity towards Asia. The global system's evolution will depend first and foremost on technology and 29 policy choices, ranging from intervention to laissez-faire, in the rapidly growing urban centres of Asia and other less-developed regions. These are the areas that will see fastest population growth, greatest potential increase in per capita energy consumption, and where technology and policy choices will have the most impact at global scale. Nonetheless, urban populations in more-developed regions have an important role to play, through demonstration effects, pioneering technology, learning curves, and the golden rule of "do unto others as you would wish them to do unto you". Already urbanised populations in more- developed regions cannot credibly demand their newly urbanising counterparts in less-developed regions avoid increased carbon emissions unless they are prepared to do the same. And energy system choices by the declining rural populations in both more-developed and less-developed areas are important for similar reasons. ***** India's leadership on solar, industry transition reason to believe climate goals can be achieved: UN

India's leadership on solar and industry transition is the reason to believe the world can achieve its climate goals, a top UN official has said, asserting that as governments look to restart their economies after COVID-19, it is vital to pursue a recovery that is not only sustainable, resilient and fair, but also job-rich. UN Deputy Secretary General Amina Mohammed highlighted "encouraging news" on global efforts to overcome climate change while attending a webinar titled 'People and Climate- Just Transition in Practice' last week. "Today there is encouraging news: Japan and the Republic of Korea, together with more than 110 other countries, have now pledged carbon neutrality by 2050. China says it will do so before 2060. India's leadership on solar and the industry transition is reason to believe that we can achieve our climate goals," she said. She said the European Union and its Member States had a strong history of leadership on climate action, including the commitment to achieve net zero emissions by 2050.

"It is essential that the European Union delivers on its promise to adopt a new climate target this year, by coming forward with a baseline of reducing emissions by at least 55 per cent by 2030," she said, adding that it is also crucial for the

30

European Union to accelerate its transition toward renewable energy. Amina stressed that there must be no new coal, and all existing coal in the European Union and in all OECD (Organisation for Economic Co-operation and Development) countries should be phased out by 2030, and by 2040 elsewhere. "And the financing of fossil fuels internationally must come to an end," she added. The top UN official underscored that as governments look to restart their economies following the devastation from COVID-19, it was vital that they pursue a recovery that is not only sustainable, resilient and fair, but also job-rich. "The notion that we must choose between climate action and economic strength has been proven wrong. Investments in renewable energy yield three times more jobs than investments in fossil fuels," she said. A just transition must be a managed transition, she said, urging all governments to work with stakeholders to develop a credible, just transition plans. "Meeting the climate challenge means major shifts in our economies and societies, and these will naturally bring significant impacts on people, families and communities that touch the core of their identities and well-being. A just transition cannot be an afterthought; it an integral part of climate action and a responsibility for all of us," she said. ***** No electrical inspection for solar plants up to 250kWp

To achieve the target of 69MW solar power generation that the ministry of new and renewable energy has set for 2022 after enhancing it from 50MW, the UT

31 administration has now decided that there will be no electrical inspection for installation of solar plants up to 250 kWp (kilowatts peak).

The decision was taken in a review meeting UT adviser Manoj Parida held with the heads of different departments to sort out differences and to encourage them to work as a team. Sources said electrical inspection used to take about four months. Talking to the TOI, Debendra Dalai, director, Chandigarh Renewable Energy and Science and Technology Promotion Society (Crest), said this major decision would cover installation of all solar plants in residential category and even government plants up to 250kWp. Besides, it was also decided that the electrical department would give a technical feasibility report within a week to further speed up installation, he added. Crest is the nodal agency for installation of solar projects in the city, but coordination was required with the UT departments of engineering, electricity, urban planning, chief architect office and Municipal Corporation. Sources said these departments had time and again raised objections and created hurdles in installation of key solar projects, thereby delaying them or hiking their costs. The objections were related to design, house inspection and no objection to projects. The administration has achieved a target of 37.5MW as of now.

To encourage people, the Central government had even released Rs 5 crore to the administration, which is being used to transfer solar subsidy to the residents. The government had recently notified the new subsidy scheme for the rooftop solar units, wherein the subsidy amount has been raised from 30% to 40% for panels up to 3kWp capacity. For units from 4kWp to 10kWp, the subsidy will be 20%. There will be no subsidy for plants above 10kWp. Earlier, 30% subsidy was given to all applicants irrespective of the plant capacity. ***** Power Minister: Focus on being net zero in solar cities

Solar or green cities will focus on being net zero energy consumption by generating more energy through green sources than they use, according to Minister of State (Independent Charge) for Power and New and Renewable Energy, RK Singh. This goal is a part of the various initiatives on the Centre’s anvil for promotion of clean energy adoption. 32

“Each State should declare at least one city (either a capital city or any renowned tourist destination) as a solar or green city. Such cities would have green sources as the primary means of meeting energy requirements. There will be rooftop solar, solarised street lights, and ‘waste to energy’ plants in these cities; vehicles in that city can run on electricity and it will be a model city to showcase to the world,” Singh said at the third RE-Invest conference.

“If the energy requirements cannot be met, there will be fiscal support from the Centre for setting up a solar park in the vicinity of the city to meet requirements. Promotion of electric mobility in these cities will ensure that the pollution levels there are brought down. Since all solar projects will be connected to the grid, any surplus or shortfall will be managed,” he said.

“It is not necessary that there would be 24x7 consumption of just renewable energy in such a city. The focus should be that clean energy generation outpaces the total demand of a city, this will ensure that it is a net zero city. Twelve States have already chosen their cities for this project, most have picked their capital cities, others have opted for the most popular tourism spot,” Singh added.

Solarising cold storages-

He also said there are new schemes on the anvil to solarise cold storages and cow shelters. According to Singh, the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM KUSUM) scheme now has elements of accountability in the form of incentives to farmers for preserving groundwater table. Singh also said that suggestions from Himachal Pradesh and other States to promote the use of renewable energy will be looked into. Commenting on implementation of the KUSUM scheme, Singh said, “Irrigation is required in fields for hardly 150 days a year. For the remaining roughly 200 days, the electricity generated from solar pumps distributed under the KUSUM scheme will be available free of cost to the State government’s discom.”

“Since the electricity will be free for the farmer, there is a possibility that there will be overuse, which may adversely affect the groundwater table. To contain this, every farmer will be allotted a projected monthly consumption of solar power based on the existing pump capacity and irrigable farm land. If the water

33 and power consumption remain below that level, there will be a monthly cash benefit to the farmer linked to the electricity savings,” he said.

“Through this, each State will save between ₹6,000 crore and ₹12,000 crore in the form of agricultural subsidy for power consumption,” Singh added. “The concerns regarding evacuation of power that have been raised will be addressed. PowerGrid will be developing the required infrastructure in Lahaul and Spiti, and the Chenab Valley. New schemes will be formulated for solarising gaushalas (cow shelters), and cold storages. This will lower the costs to farmers for using cold storages,” he said.

On setting up hubs, Singh said, “There will be an open competition between States for setting up solar manufacturing hubs. The State which provides land and power at the cheapest rates will be offered the opportunity to host the hub. In addition to solar enterprises, other businesses related to the power sector will also come up where the hub will be established.” ***** Sungrow’s optimized solution drives long term value creation for Indian customer

The government of India has laid out an ambitious vision of renewable energy installations of 175 GW by 2022 and 450 GW by 2030 to bring affordable and sustainable energy to all its citizens. In line with this, India has made impressive progress in recent years by adding more than 36 GW of solar capacity till date. 34

Now it is expected to be the largest contributor to the renewable’s upswing in 2021, with the country’s annual additions almost doubling from 2020, as per a recent report by IEA. Further, the latest reverse auction of 1070 MW Rajasthan tender by SECI, drawing the lowest tariff of INR 2/kWh (2.7 cents/kWh) indicates the rising investor confidence in this booming market. Sungrow, the global leading inverter solution supplier for renewables, has made significant stride over the last six years since its entry to India’s growing solar market. Sungrow has been at the forefront in clean energy business over more than last 23 years, by offering its innovative products, solutions and services across the globe. As of June 2020, it has reached more than 120 GW installations across the globe. As the leading supplier of PV inverters, it has been ranked “100% bankable” for last two years consecutively, as per Bloomberg New Energy Finance (BNEF) reports. These credentials establish the ease and confidence towards non-recourse financing of large-scale utility solar projects run by Sungrow’s Inverters in any part of the world. The recent pandemic has tested the resilience and soundness of Sungrow’s business. Despite all the odds, it has been able to achieve a 55.57% Y-o-Y growth in its top line in 1H 2020 buoyed by large scale shipment across the continents. Commensurate with the global numbers, Sungrow also delivered an outstanding performance in India by shipping more than 2 GW of PV inverters only in three quarters. This helped Sungrow to garner No.1 position with a healthy market share of 28% in H1 2020 as per Mercom’s latest Leaderboard Report. And the same position was continued in Q3 2020 taking the total shipment tally over 6 GW in India

Trend setter in the Indian solar industry- Since its entry to the Indian solar market, Sungrow has consistently brought and offered new and innovative solutions for its customers which have set the market trend to be followed by others as well. Starting with its 2.5 MW containerized central inverter to remove the bottleneck of having indoor inverter room, to 3.125 MW central inverter to enable a block size up to 12.5 MW were the first-time technological innovations in the Indian solar industry. Both became the industry standard subsequently after the success and huge acceptance by the Indian customers.

Unique Product Basket- Sungrow is among the only few companies which manufacture and offer both central and string inverters. With the vision “to be

35 the leader in clean power conversion technologies”, it is the only company to have double-digit market share in both central and string inverter categories consistently over the last five years. This shows the value proposition of Sungrow’s products offer in both utility and C&I segment. Sungrow has also recently launched residential products in India to enter the retail market, offering its world-class solutions to end consumers.

Central Inverter- With the solar industry rapidly changing, the declining PPA tariff, the pressure of investment costs, the more stringent grid demand and land-use application procedure, as well as requirements on easier O&M, are some of the challenges which a utility-scale solar project brings. These new requirements and standards set a higher threshold for the inverter. Sungrow had the first-mover advantage with its flagship central inverter of 3.125 MW capacity in this range, as it offered multiple benefits in terms of BoS saving and higher yield to the customers. This product has got a resounding success in India as it only has been shipped to several solar projects for more than a cumulative capacity of 3.5 GW. Buoyed by its greater acceptance and success, Sungrow introduced the highest rated central inverter till date of 5 MW (SG5000UD-20) to meet very specific project and customer requirements. This new solution minimizes land utilization and enables cost savings on transportation, installation, commissioning and O&M, enabling an optimized LCOE.

String Inverter- As the market slowly started to diversify the applications, Sungrow launched the most powerful 1500V string inverter of 250 kW to meet the new demands. International Solar Energy Research Centre Konstanz indicates that the lowest LCOE of 1￠/kWh is expected in 2021/2022 and the leading technologies to achieve this goal will be a bifacial module plus tracker system. The SG250HX-IN is embedded with 12 MPPTs to adapt complex terrain, perfectly matching the bifacial modules. It also has the option to provide reserved power, supply and communication interface to the tracker system while supporting I-V curve scanning and diagnosis. SG250HX-IN provides an ingress protection rating of IP66 for all chambers and anti-corrosion design with C5 protection degree, making it ideal for applications in coastal areas, chemical industrial region and other typical harsh conditions. As one of the best-selling 1500V PV inverter solutions, it has been deployed over 5 GW till now, across the

36 globe. Sungrow’s CX series inverters for the C&I segment have also been front runner among the competitors while giving a comprehensive solution to the customers considering overall system cost, power generation efficiency, return on investment and O&M. The CX series (SG33CX, SG50CX and SG110CX) inverters have given an edge to Sungrow’s leadership position in the Indian rooftop solar market and to garner No.1 position.

Long Term Positioning- “Sungrow has a long-term plan for the Indian solar market. Sungrow has been a proponent of Make in India initiative, by establishing a state-of-the-art manufacturing facility of 3 GW annual production capacity at Bengaluru to drive its long-term vision. Now we are also exploring to expand and make it bigger as the local market demand is expected to grow at a faster pace” – said Mr. Sunil Badesra, Business Head, Sungrow India. Sungrow is one of the few suppliers having expertise in both PV and energy storage solutions. Sungrow offers complete battery integrated storage solutions embedded with BMS and other ancillaries for safety and protection for various grid-scale applications. Equipped with an industry-leading sales, technical support and after-sales service team, offering responsive and adept service, Sungrow ensures cost-optimized and hassle-free solutions for its customers. Till now Sungrow’s storage solutions are running over 1000 installations including a few in India without a single case of safety concerns displaying the strict standards of Sungrow’s products. The rising demand for clean energy and the push towards low-carbon energy sources are leading the increasing capacity addition of solar projects in India. Indian solar marketplace stands as one of the bright spots for coming decades with a prosperous future of solar-plus-storage. Carrying the success torch of its PV inverter business in India, Sungrow looks forward to having a strong foothold in Battery energy storage business as well. Sungrow is committed to being a key stakeholder in India’s drive towards clean energy transition. It will continue to innovate and offer optimized solutions with its philosophy of “Design meets Demand” and ensure greater success of its customers.

About Sungrow- Sungrow Power Supply Co., Ltd ("Sungrow") is the world's most bankable inverter brand with over 120 GW installed worldwide as of June 2020. Founded in 1997 by University Professor Cao Renxian, Sungrow is a leader in the

37 research and development of solar inverters, with the largest dedicated R&D team in the industry and a broad product portfolio offering PV inverter solutions and energy storage systems for utility-scale, commercial, and residential applications, as well as internationally recognized floating PV plant solutions. With a strong 23-year track record in the PV space, Sungrow products power installations in over 120 countries, maintaining a worldwide market share of over 15%. Learn more about Sungrow by visiting https://en.sungrowpower.com/. ***** India´s renewable energy dreams face tough reality

Prime Minister Narendra Modi at two international fora last week said India would add over 220 gigawatts (GW) of renewable energy capacity by 2022 and 450 GW by 2030. The industry would have lauded his insistence on having a green future both at the G20 Summit and the inauguration of REInvest but the facts on the ground tell a different story. Tendering has been aggressive with 18 Gw of solar power projects awarded in the past two years by the central agency, Solar Energy Corporation of India, or SECI, but 16 Gw of these projects do not have power purchase agreements (PPAs), revealed a recent report by the Central Electricity Authority (CEA), the technical arm of the Ministry of Power. This includes projects bagged by sector majors like ReNew Power, ACME Solar, Adani Green, SoftBank Energy, etc.

Lack of transmission infra

The report said close to 24 GW of solar capacity in the country did not have transmission connectivity for projects awarded by other central and state agencies. Then there are companies, such as ReNew Power, Sprng Energy, and Mytrah Energy that have requested an extension for their wind projects because of lack of transmission infrastructure to be built by stateowned Power Grid Corporation of India.

“The transmission mismatch story in thermal power is getting repeated in renewables now. The government is asking developers to build projects where the transmission network exists. But these are, in most cases, not the sites which

38 are renewablerich,” said a senior sector expert. When the BJP came to power at the Centre in 2014, it set a target of 175 Gw of renewable capacity by 2022. Of this, 100 Gw would come from solar, 60 Gw from wind and balance from other green sources. India has also committed to source 40 per cent of its energy needs from nonfossil sources at the Paris Climate Change conference in 2015.

Uncertainty abound

Currently, the country´s solar and wind capacity stands at 32 Gw and 38 Gw, respectively, while 13 Gw of solar and 7.3 Gw of wind power capacity is under construction.

“There hasn´t been any ma -jor policy development which has been favourable for the sector. It has just been aggressive bidding and mega tenders. No one is sure how much of it will actually come. Projects with ultralow tariffs will be the most difficult to execute. The government is positive that renewable tariff will fall further. It might fall but it is not creating any value in the sector,” said a senior executive of a leading energy firm. Wind power capacity totall -ing 1.4 Gw has been unilaterally cancelled by project developers, including Torrent Power, Inox Wind, and ReNew Wind Energy.

Recently, ACME Solar sought the CERC´s nod to cancel its 600Mw solar power project in Rajasthan, which it won at a record low tariff of ₹ 2.44 per unit. The pandemic has further complicated the issues for the sector with construction getting delayed and states shying away from buying renewable power. This paper recently reported that the lockdown, supplychain disruption of Chinese solar imports, delay in transmission connections, and reluctance of states to purchase renewable energy have delayed 39.4 Gw of solar and wind projects in the country. A total of 22 Gw of projects are to be awarded in two to three months. There is, however, not a single standalone wind power project in the planned capacity. There are either solar power projects or solarwind hybrid power projects.

Economies of scale

Industry watchers are, however, betting on the volume that the government is pushing in the sector. In the latest commentary, Ankit Hakhu, director at CRISIL

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Ratings, said the sagging economy and a weak financial sector may pose challenges to fund the credit requirement, but the scale being offered with fresh tenders could ease refinancing.

“With growing scale, the sector will churn out around 18 Gw of fresh stabilised portfolio with top developers over the next three years that are amenable to refinancing.

That means an aggregate debt capital of ₹ 70,000 crore can be freed up to fund Greenfield capacities,” he said. ***** Solar energy to cut energy costs for the manufacturing sector

The Covid-19 pandemic has brought the world to a standstill and has impacted almost every sector. Now, with unlock 4.0 when the things are settling down, every industry can cope up with the damage caused by the lockdown as per its capabilities and requirements. The solar energy sector has been highly affected in these unprecedented times. There is a lot of uncertainty in the industry currently and the sector should bounce back after this crisis ends. That will decide how quickly we achieve our renewable energy target of 100 GW by 2022. The solar rooftop sector has been badly affected because of two reasons -- high labor cost and dependence on commercial and industrial sectors. Power demand in India has come down by 25-30 per cent today. This decline in demand with reduced collection and slow recovery will adversely impact already stressed distribution companies by creating a cash gap of around Rs 40,000 crore. 40

Industries invite very high fixed costs with reference to their monthly power bills. Solar power can come to their rescue by reducing their bills by Up to 80 per cent. The reduction is dependent on factors like load and consumption profile; state policy; technology used and design. With Levelised Cost of Electricity at less than Rs 2 per Kilowatt Hour, corporates are rising up to the challenge of investing in solar in-site and off-site solutions. A company can reduce its power bill by upto 90 per cdent by setting up a solar power plant on-site on their roof top or ground area. This is the highest preferred mode of installation since the asset is synchronised with the loads on a live basis and the plant is insulated from policy variability. The financial modes of execution are either the capex (self investment) or opex (third party investment) route. Banks and lending institutions have taken note of the reliability of solar power and the high returns of the project. They have, thus, started aggressively funding solar projects for captive use. Under the opex model, a third party sells power at a pre agreed tariff bound by a Power Purchase Agreement usually with a 12-15 year term. There is also an off-site mode of setting up a solar power plant in a remote location and transmitting the power to the industry’s location. Whichever the Technical or financial model selected by an industry, investing in solar plants is a no-brainier. In most cases, investing in a solar project gives an industry greater returns than existing business.

Impact due to Covid-19

Due to covid-19 and nationwide lockdown, ongoing solar projects have been halted, power companies are facing disruption and developers are concerned about the delays their projects are facing because of the production slowdown in China. Even today, the solar industry relies on China for around 80 per cent of its requirement of solar supply. Solar power equipment imports in January 2020 had declined by about 70 per cent as compared to January 2019. Industry players have been facing delays in procurement of modules, solar cells and other components because of covid-19. Also, about 85 per cent of the labour in the solar energy sector includes migrants and many of them have returned to their villages and are likely to be away for some time until the lockdown is completely lifted.

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Challenges post lockdown

Once the lockdown is over, a major area of impact in the performance of solar energy plants will be availability of spares and manpower for maintenance. As the high wind season is approaching in the coming months, planned maintenance will also become a challenge. Execution work at new projects have come to a standstill. Even though force majeure conditions will enable extension for completion period; migrant labour will take quite some time to reach project sites. Solar energy projects, unlike other infrastructure projects, hardly take 6-9 months to complete once land and evacuation facilities are available and this is only possible by deploying a large number of workforce for a shorter duration.

Role of solar energy sector in economic recovery post Covid

The solar capacity addition in India in Q1 2020 was the lowest since Q4 2016. However, according to a recent report by the International Energy Agency (IEA), while renewables are not immune to the COVID-19 crisis, they are more resilient than other fuels. The agency noted that in 2021, the solar energy sector is expected to spring back up as currently delayed projects start to come back online. In 2021, it expects to reach the same level of renewable capacity additions globally as in 2019. Renewable energy, especially the solar energy sector, is at the cusp of this opportunity as it delivers cheaper, cleaner electricity – with the right regulatory and policy framework, it could be the way forward when compared to conventional electricity.

Moreover, the number of direct and indirect jobs that will be created as a result of the construction and maintenance of renewable assets will be an added advantage post the lockdown is lifted to revive the economy when increasing unemployment is a concern. Renewable energy, especially from solar, has long edged past the point of grid parity and is now cheaper than conventional energy. This economic rationale would itself mean a fillip for renewable energy in the post-COVID-19 phase. The power sector is a lead indicator of economic growth. After lockdown, we expect a lot of incremental power capacity addition to be from renewables. Thus, investment in renewable energy is a precursor to the health of the economy. This will add value to revive the economy. This pandemic is also a lesson for companies to not rely solely on one country for their technical

42 equipment and move towards being more diversified. The construction phase of solar, however, is very employment-intensive and, to some extent, operation and maintenance of solar generate significant employment in our communities. Thus, job security and job creation will probably be the most important factors in determining how India manages to combat the economic slowdown post- COVID-19. Operations and maintenance of solar assets results in part-time employment opportunities to several thousand people from remote and rural areas.

Government’s role to revive the economy post Covid

The Government of India has also taken many proactive fiscal measures like Repo rate cut to 4.4 per cent, three months moratorium on principal and interest repayment for term loan and working capital facilities to revive the solar energy sector. The solar industry is seeking some respite from the government so that they can stay afloat during this economic crisis and work towards meeting the long-term renewable energy targets of the country. A strong and strategic revival plan is very important post covid for the industry to help achieve its targets on time.

More targeted policy introduction is to be done to support decentralized projects such as rooftop solar and provide incentive to domestic production of solar cells, modules, and other equipment. This crisis provides an opportunity to the government to lead by example and create a stimulus plan which is green, efficient and progressive. Recently, the International Renewable Energy Agency’s (IRENA) Coalition for Action wrote to governments putting forth recommendations on how governments can ensure a rapid and sustained economic recovery of the renewable energy sector that aligns with climate and sustainability objectives. They emphasized the role renewable energy could play in these strategies by providing reliable, easy-to-mobilize and cost-effective electricity for essential services. Post Covid, more financial aid is required to boost local manufacturing, given India relies on China for about 80 per cent of its solar inputs. The centre should grant more financial aid to the solar energy sector and decentralised model of solar energy development that does not endanger grasslands and desert ecosystems. Government-supported financial

43 institutions need to step forward and take the lead in scaling up long-term investment into India’s solar energy sector. ***** Achieving the 2030 target of 450 GW of renewable energy - A prescription for India

In order to meet its climate commitments, and to achieve energy security, India has ambitious renewable energy targets by 2030 [1].

India’s nationally determined contributions (NDC) at the Paris UNFCCC conference of parties (COP) in 2015, imply 350 GW of renewable energy capacity. Recently, in the Climate Week in New York in 2019, the aspirations have increased to 450 GW of renewable energy capacity [2].

India has made significant progress towards these targets. As of September 30, 2020, the renewable capacity stood at approximately 90 GW [3].

This includes 38 GW of wind energy and 36 GW of solar energy. While wind energy has been growing steadily since the early 2000s, the growth in solar energy has been achieved in the last decade.

However, India still has a long way to go! To get to the stated targets, it needs to install more than 250 GW of renewable energy capacity in 10 years, or 25- 35GW of renewable energy capacity per year. This is more than twice of what India has been achieving in recent times [4], and is by no means going to be easy. 44

In particular, this would require concerted policy effort, including on the following: (1) demand creation for renewable energy; (2) revenue certainty for renewable energy power projects; (3) risk reduction for development, construction, and operation of these projects; and (4) system integration of variable and intermittent renewable energy supply.

First, on demand creation, the ambitious targets need to be converted to legally binding renewable portfolio standards, at the level of not only states but also large central generators [5]. These standards, when designed appropriately, are very effective in driving large-scale renewable deployment in an effective manner [6].

Second, on revenue certainty, India needs to continue auctioning renewable capacity at fixed (on inflation adjusted) price long-term power purchase agreements (PPAs). This revenue certainty, ideally over the lifetime of renewable energy power plants, allows low-cost financing of capital intensive assets [7] where the auctions, in turn, enable provision of lowest cost renewable power to consumers [8].

Third, on risk reduction, there is continued need to keep operational and project development risks low, to ensure there is adequate supply of low-cost capital available for renewable energy projects [9].

While these projects are in operation, India needs to ensure that these PPAs are paid on a regular basis. One of the key risks in investing in renewable energy projects in India is the tenuous financial situation of the primary off-takers, the distribution companies (DISCOMs) [10], which raises questions around their ability to pay on time [11]. This is known as the off-taker risk.

While fixing the DISCOMs is a priority in the long-term, and multiple schemes have been tried sequentially, including UDAY [12] and ADITYA [13] in recent times, which have had variable levels of success; 14 publicly funded payment security mechanisms [15], which guarantee coverage of payment shortfalls, would need to be used in the short-term to provide comfort to investors [16].

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To further reduce risks in project development, India needs to continue development of large renewable energy parks, which address the two key risks of land availability and transmission interconnection. These parks have been already shown to be effective in driving solar energy deployment in India [17].

Finally, on system integration, based on multiple recent and ongoing investigations [18], India needs to make sure that the renewable energy is appropriately supported by increased transmission capacity, agriculture load shift, and battery storage deployment. At the same time, India does not need to develop any significant new coal plant capacity beyond 2022. According to these investigations, not only a largely fossil-free path is technically and operationally possible, it is also likely to be cost-effective.

The increased transmission capacity of more than 100 GW would be needed to connected RE-rich locations – such as Rajasthan for solar energy and Tamil Nadu for wind energy – with demand centers, and is likely to be an extension of the Green Corridors initiative, implemented in order to reach India’s 2022 target of 175 GW renewable energy capacity.

The agriculture load shift [19], which is a form of demand side solution, of more than 50 GW would be needed to ensure that the agriculture consumption is during the renewable (especially solar) energy hours. This would require extension of the agriculture feeder separation [20], similar to the rural feeder separation already implemented in many India states.

Finally, increased battery storage deployment would require a battery storage mission, similar to the solar mission where a 50 GW/200 GWh (or higher) national target would be accompanied by corresponding state-level targets [21]. One way to procure this battery storage capacity would be to execute renewable energy plus storage auctions, similar to Hawaii [22], which has been experimenting with many innovative PPA structures, such as the renewable dispatch able generation PPA. In this context, it would be key to allow the DISCOMs and/or the system operator’s control of the batteries, so as to enable their efficient usage for supporting required system flexibility services, such as primary reserves as well as ancillary service.

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While India’s renewable energy targets are ambitious, and getting to these targets would require significant deployment on a yearly basis, these targets can be reached, provided the multi-pronged approach outlined above, including on demand creation, revenue certainty, risk reduction, and system integration. ***** A brighter sun may shine in 2021

The year 2020 will be remembered in the renewable energy (RE) industry as the one that saw solar tariffs drop to ₹2 a kWh (kilowatt-hour) from ₹17, and round- the-clock supply of renewable power. The New Year promises to be no less eventful. Two noteworthy developments are very likely in 2021. First, you will not be wrong in assuming that the total installed RE capacity will cross the 100- GW mark. As of October 31, it has reached 89.63 GW. Experts, such as Girishkumar Kadam of the ratings, research and analysis agency ICRA, believe that capacity addition in the coming year will be 11-12 GW, given the projects awarded. The execution backlog is estimated at 50 GW, held up because of the pandemic. Total capacities awarded through tenders — the sum of under- construction projects and those yet to begin — have been put at 78 GW.

The second development is the emergence of a new class of RE assets — merchant capacities. This, in keeping with the trend, is more likely to happen in solar energy than in wind. The government is pushing all energy developers, including RE, into the market, to democratise price discovery.

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A green exchange

Accordingly, the country’s premier energy exchange, IEX, has started G-TAM — ‘green term-ahead’ market — a separate platform for a wind or solar developer to sell power in the market.

Currently, G-TAM is restricted to delivery up to 11 days, though one can offer to sell or buy RE on any or all the 11 days. But this will change soon. Bids can be placed for longer terms, as they are for conventional energy. It is only a mere formality of a Supreme Court clearance that is holding this back. RE developers will find this heartening, for the simple reason that they will get good prices for their electricity. For instance, the average market clearing price for delivery on December 8 was ₹2.56 a kWh, with the maximum going all the way up to ₹3.78. While the developers get a good price, it is also not bad for the buyers — mainly the various electricity distribution companies, since these prices are still lower than the average power purchase cost that the discoms incur. IEX launched G- TAM on August 21. Rohit Bajaj, who heads Business Development at IEX, says many developers are showing interest in the platform and observing how prices behave over a longer period. Of course, developers are also waiting for longer- term contracts to be enabled. In time, a solar developer who wins a Solar Energy Corporation of India (SECI) bid for, say, 100 MW, will upsize his capacity to 125 MW or 150 MW, earmarking the generation from the extra capacity for sales over the market. Merchant capacities will therefore improve developers’ financial health.

Who else benefits?

Three other classes of developers are expected to benefit from G-TAM. First, the round-the-clock RE project developers, who have to build capacities to meet peak demand. Generation from other times can be sold through G-TAM. Second, the existing ‘opex’ model players such as CleanMax Solar, who build and own solar power plants and sell only electricity, typically under medium-term power purchase agreements. They will no longer have to worry about the next customer if a contract ends. The third type of sellers consists of projects that have completed installation but are yet to get clearances to start supplying. Perhaps, based on these developments, some experts believe that the bad run

48 that the renewable energy sector has been through might take a favourable turn in 2021. Kadam expects renewable energy installations to go up to 160 GW by March 2025, accounting for 34 per cent of the total electricity capacity then, estimated at 470 GW. Today, it is 24 per cent.

Capacity addition of this order will mean investments of ₹4 lakh crore between now and March 2025. A crucial enabler will be the successor to the government’s UDAY (Ujjwal Discom Assurance Yojana) scheme. UDAY failed to make a sufficient difference to the finances of discoms. The pandemic has eaten into their already anaemic entrails, but the expectation is that the successor scheme will be better. To use a cliché, there is light — and renewable, at that — at the end of the tunnel. ***** Kutch — from a fossil fuel powerhouse to a renewable energy giant

Ahmedabad, December 14It’s Kutch’s moment in the Sun, literally. As Prime Minister Narendra Modi lays the foundation stone on Tuesday for what is dubbed as the world's largest single-location hybrid energy park in Vighakot village, this border district in Gujarat aspires to become a global renewable energy powerhouse. From the days of darkness in the pre-Independence era to giant windmills and shining solar panels covering large swathes today, Kutch has transformed into an energy hub. The upcoming 30 Gigawatt (GW) renewable

49 energy hybrid park — wind and solar — is seen as a big step for India in its commitment towards climate change. About a fifth of the targeted 175-GW of renewable energy in the country will now be in Kutch. The State government estimates the project will get investments of ₹1.25-lakh crore from solar and wind players, who will sell the electricity generated to the Solar Energy Corporation of India (SECI).

The first light

Kutch's first encounter with electricity happened in 1915 at a wedding function of the princely family of late Maharao Madansinhji Jadeja. The Darbargarh palace was lit up with electric lamps powered by a specially-arranged 110-Watt 15-horsepower diesel engine.

Then came its first 6-MW thermal plant set up at Kandla in 1959 and subsequently a lignite-based plant at Panandhro, the foundation stone of which was laid by then Prime Minister Morarji Desai in November, 1979. The preference and technology was for mineral-based power generation to tap into Kutch's rich lignite deposits.As the thermal capacities kept increasing, the district that is spread over 45,600 square km — a little bigger than Switzerland — saw an influx of investors from the power sector, mostly coal-based. Tata Power's 4,000 MW thermal plant under the Central government's Ultra Mega Power Project (UMPP) scheme and Adani Group’s 3,300 MW Supercritical Mundra Power Project turned Kutch into a power house. But a big renewable energy push came in the early 2000s through the State nodal agency, Gujarat Energy Development Authority. Suzlon Energy became the driver for Kutch's windmill revolution even as environmentalists raised concerns over its impact on migratory birds.

While locals hail Kutch’s remarkable work on the energy front, they have a few demands too. “The district must get incentives such as subsidised power in return. The water-starved district still awaits full-fledged access to the Narmada canal network,” said Kirti Khatri, a veteran on Kutch development. *****

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Gujarat to get India's largest renewable energy generation park

India's largest renewable energy generation park will come up in Gujarat with a generation capacity of 30 gigawatts (GW). The foundation stone of Hybrid Renewable Energy Park near Vighakot village in Gujarat's Kutch district will be laid by Prime Minister Narendra Modi on Tuesday, the PMO said. During his day- long visit to his home state, the Prime Minister will also lay foundation stone of a desalination plant and a fully automated milk processing and packing plant in Kutch, the statement added. The Renewable Energy Park will be spread over 72,600 hectares, and have dedicated zones for wind and solar energy storage as well as an exclusive zone for wind park activities. Harnessing its vast coastline, Gujarat is taking a significant step to transform seawater to potable drinking water with the upcoming desalination plant at Mandvi, Kutch. The plant with capacity of 10 crore litre per day (100 MLD) will strengthen water security in Gujarat by complementing the Narmada Grid, Sauni network and treated waste water infrastructure. It will be an important milestone for sustainable and affordable water resource harvesting in the country. Nearly 8 lakh people across the regions of Mundra, Lakhpat, Abdasa and Nakhatrana talukas will receive desalinated water from this plant, which will also help in sharing the surplus with upstream districts of Bhachau, Rapar and Gandhidham. It is one of the five upcoming desalination plants in Gujarat -- Dahej (100 MLD), Dwarka (70 MLD), Ghogha Bhavnagar (70 MLD), and Gir Somnath (30 MLD). Modi will also lay the foundation stone of the fully automated milk processing and packing plant at Sarhad Dairy Anjar, Kutch. The plant costing Rs 121 crore will have the capacity

51 to process 2 lakh litres per day. Gujarat Chief Minister Vijay Rupani will be present on the occasion. The Prime Minister will also undertake a visit to the White Rann, followed by participation in a cultural programme. ***** Month into launch, India's first solar-powered miniature train garners huge tourist attraction

A month into its launch, India's first solar energy-driven miniature train at Veli Tourist Village in Thiruvananthapuram has become a major attraction for tourists in Kerala, even amid the ongoing COVID-19 pandemic. Gokul, who visited the Veli Tourist Village on Saturday, called the miniature train ride the highlight of his trip. "I, along with my family, enjoyed the train ride. I hope they (government) expand this (rail network)," said Gokul, adding the train was clean and sanitised. Another visitor Anil Kumar said that since it runs on solar energy, there will not be any health hazard. The train was flagged off by Chief Minister Pinarayi Vijayan on November 2. He said the eco-friendly solar-powered 2.5-km miniature railway will enable visitors to enjoy the scenic beauty of the place. "The Rs 10-crore project is the first of its kind in the country", the chief minister had said. As per an official release, the miniature train is modelled on a vintage steam locomotive with artificial steam spouting from the engine, and the station house designed in a traditional style. "The surplus energy generated by the system is routed to the Kerala State Electricity Board's grid," the release said. *****

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UK PM praises India's 'incredible' solar power strides at climate summit

British Prime Minister Boris Johnson has hailed the “incredible things” being done by India in the solar energy sector as he warned that the emergency facing the world from climate change was far more destructive than even the coronavirus pandemic. Johnson said this in his address to the Climate Ambition Summit this weekend, co-hosted by the UK to mark the fifth anniversary of the Paris climate agreement. In his speech to the virtual summit, which was earlier addressed by Prime Minister Narendra Modi among around 70 heads of state and government, the British prime minister reiterated the UK's pledge to radically cut dependence on fossil fuels.

“We're going ahead with a massive solar programme, even though we can't hope to emulate the incredible things being done by India, Australia or Morocco for instance,” he said.

“Today, we're putting our foot to the accelerator – in a carbon friendly way of course – with a Ten Point Plan for a Green Industrial Revolution. We want to turn the UK into the Saudi Arabia of wind power generation, enough wind power by 2030 to supply every single one of our homes with electricity… Hydro of course – we're liberating the awesome potential of hydrogen, whether for homes or all sorts of uses,” he said.

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The summit, held as a precursor to the UK's hosting of the United Nations' COP26 summit in November 2021, included addresses urging the world's economies to "stop the assault" on the planet and increase their ambition on cutting the greenhouse gases that drive climate change.

United Nations Secretary General Antonio Guterres warned leaders that the world was heading for a "catastrophic" 3 degrees Celsius of warming, as he urged them to declare a state of climate emergency in their countries until they become carbon neutral.

"Have we made any real progress at this summit? And the answer to that is: yes," said Alok Sharma, the UK's Business Secretary and President of COP26.

“But they will also ask, have we done enough to put the world on track to limit warming to 1.5 degrees Celsius, and protect people and nature from the effects of climate change? To make the Paris Agreement a reality. Friends, we must be honest with ourselves, the answer to that, is currently: no. As encouraging as all this ambition is. It is not enough," he said Earlier on Saturday, Johnson said advances in renewable energy technologies would "save our planet and create millions of high-skilled jobs" as the UK announced an end to support for the fossil fuel sector overseas. Described as a significant move as in the last four years, the UK government supported 21 billion pounds of UK oil and gas exports through trade promotion and export finance. The new policy will be implemented after a short period of consultation and is intended to come into force as soon as possible before COP26 next year. "Together we can use scientific advances to protect our entire planet - our biosphere – against a challenge far worse, far more destructive even than the coronavirus. And by the promethean power of our invention, we can begin to defend the Earth against the disaster of global warming," said Johnson. The UK had recently also announced a new commitment to reduce its greenhouse gas emissions by at least 68 per cent by 2030, compared to 1990 levels. The UK claims this means its Nationally Determined Contribution (NDC) under the Paris Climate Agreement is now among the highest in the world and commits the country to cutting emissions at one of the fastest rates of any major economy. *****

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Renewable energy capacity crosses 90 GW in November

G BalachandarChennai, December 14The total installed capacity of Indian renewable sector has surpassed 90,000 MW during November 2020 amid continuing challenges for the developers in the segment. The new capacity addition in the renewable energy segment has been slow so far in this fiscal. During November, an estimated 463 MW of new capacity was added in the RE sector, taking the cumulative RE energy capacity in India to about 90.4 GW as on November 30, 2020. For the April-November 2020 period, the RE segment has added a total new capacity of 3321 MW, which is little less than 1/4th of the capacity addition target for this fiscal. The government has fixed a new capacity target of 14,380 MW for this fiscal. Solar power is expected to add about 11,000 MW (9,000 MW from ground-mounted projects and 2,000 MW through rooftop capacity), while the wind power segment is expected to bring in 3,000 MW of capacity. During the eight-month period of this fiscal, solar segment added 2,283 MW (includes of 1,396 MW of ground-mounted and 887 MW of rooftop), while wind power segment brought in 690 MW of new capacity to the grid, according to the data of Union Ministry of New and Renewable Energy (MNRE).

Moderate tender activity- Tender activity was moderate during this November with only three utility scale tenders issued for a capacity of 110 MW and two rooftop solar tenders for a total capacity 60 MW were issued. “Both tender issuance and auctions have been slowing down month-on-month. Multiple amendments in bidding guidelines, changes in tender specifications and

55 unwillingness of Discoms to sign PPA have resulted in uncertainty in the market,” says a report of Bridge to India, a renewable energy consulting firm. Meanwhile, the Centre has also come out with more measures to support the developers, who have been facing financial crunch and challenges in securing bank limits.

Relaxations- Recently the Ministry of Finance has relaxed requirements of performance bank guarantee (PBG) and earnest money deposit (EMD). It instructed the public sector undertakings (PSUs) to reduce PBG for new tenders and contracts issued by December 31, 2021, to 3 per cent of the contract value from the earlier 5-10 per cent. PSUs have also been instructed not to demand any EMD in tenders issued until December 31, 2021. Bidders will instead submit a bid security declaration form as part of the bid response. These measures are aimed at reducing the cost relating to PBG and EMD. Wind energy sector, where project installations decelerated in recent years, has sought efforts by the government to lower barriers and intensify grid infrastructure and land allocations to revive auction appetite and resolve the execution challenges facing India’s wind market. ***** Boosting solar manufacturing in India

India’s installed solar power generation capacity stands at around 35 Gigawatt today, while it was a mere 0.2 GW in 2010. This commendable growth in the last decade has largely been achieved through imports of solar equipment from China, Singapore, Vietnam, and Taiwan. A robust domestic supply chain of solar equipment manufacturing in India will promote self-reliance, energy security

56 and preserve valuable forex reserves. However, challenges in developing a manufacturing ecosystem need to be addressed.

Current Indian Solar PV supply landscape- India has added around 34 GW of solar power generation capacity over the last 5 years. While our domestic manufacturing capacity of 10 GW of modules is sufficient to meet this demand, we imported over 80 per cent local demand for modules across 2015-19. The total value of solar cell and module imports over FY15-19 stood at around $ 12.4 billion. There would be a sustainable demand for solar equipment over the next decade with India’s targets of achieving 100 GW solar capacity by 2022 and over 300 GW by 2030. Our continued reliance on imports could lead to an incremental trade deficit in excess of $100 billion in the next 10 years. Development of domestic solar manufacturing would help reduce this deficit, promote self-reliance and enhance energy security while bringing in investment and employment opportunity. Although there is a growing consensus in the RE industry to promote domestic solar PV manufacturing, our domestic manufacturers face multi-dimensional challenges which need to be actively addressed.

Challenges with current domestic manufacturing- Solar manufacturing in India currently operates largely in the downstream activities of the value chain and primarily depend on imports of ingots and wafers as raw materials. Heavy reliance on imports of upstream components results in foreign suppliers having substantial control on the prices, restricting the ability of domestic manufacturers to cut costs and be price-competitive in the global market. Over the years, Chinese solar PV equipment has been more competitively priced, and this market pressure has deterred new investors entering the domestic manufacturing industry. Module manufacturing has low technological barriers and investment requirement. Up to 94 per cent of the total cost of module assembly is contributed solely by solar cells and other raw material. As we start moving up the value chain, the process becomes technology & capital intensive. There has been little focus on developing upstream capacity, causing a ripple effect on the price competitiveness of domestic modules. High capital expenditure and term loan interests discourage investors to enter upstream activities. Furthermore, low production capacity and utilization limit economies

57 of scale. Therefore, focused efforts to boost upstream activities and scale of operations is vital.

Building a domestic solar manufacturing ecosystem- Low levels of capacity utilization could increase the cost of modules by up to 5-15 per cent. Creating local demand could enable existing players to increase utilization and cut costs to some extent. However, a domestic value chain system is critical in further reducing our costs and bringing in new investments. The key areas of focus in building a domestic manufacturing ecosystem in India are:

1. Capital Expenditure & Project Finance: Lending rates are high (10-12 per cent opposed to 3-5 per cent in China) and banks prefer to lend over the short-term.

2. Technology: This industry has a high rate of technological obsolescence (outdated in 2-3 years). With limited R&D happening in India, manufacturing solutions are majorly imported with continuous dependence on OEM for upgradation.

3. Labour: India offers lower wage structures and access to a vast labour market. However, under 5 per cent of our workforce has undergone formal skill training.

4. Energy: Utilities provide unreliable supply of electricity and at a high cost, due to cross-subsidisation requirements.

Government interventions in the past- Domestic manufacturers would require protection even with a vertically integrated ecosystem to compete with Chinese

58 manufacturers. While India has taken measures in the past to promote the domestic industry, these have had limited impact and have been unable to generate investor confidence. The government has also taken measures like the introduction of Approved List of Module Manufacturers (effective from Oct 2020) to ensure reliability of domestic equipment and reducing the corporate tax rates for new manufacturing companies from 29 per cent to 17 per cent. MNRE has also announced a Basic Customs Duty of up to 25 per cent on modules and 15 per cent on cells from August 2020, which shall be increased to up to 40 per cent and 20-30 per cent respectively in the next year. While this can promote our domestic manufacturing, more clarity is required on its implementation and timelines. India has so far focused on promoting downstream solar manufacturing. While some of our peers have done the same, the need of the hour in an Indian context is to take concrete measures for the holistic development of our manufacturing ecosystem.

Way Forward- The identified set of measures would enable domestic manufacturers to gradually cut their costs by increasing utilisation, leveraging a local supply chain and increasing competitiveness with imports.

- Trade barriers: BCD should be applicable for 4-5 years to attract new investors, protect them over at least one technology cycle and facilitate technology up gradation. As around 63 per cent of our cell and 43 per cent of our module manufacturing capacity is in SEZs, BCD should only be applicable on the value of imported goods and not on the value addition in SEZs. Also, export subsidies for domestic manufacturers should be increased from 2 per cent to 10 per cent to increase competitiveness in global markets.

- Financial support: Subsidies for manufacturers should be provided upfront against a bank guarantee to avoid disbursement delays. For RE developers using domestic equipment interest subvention should be offered for a period of 25 years to incentivise domestic procurement.

- Demand creation: Existing DCR schemes such as CPSU, KUSUM & rooftop solar schemes need to be expedited and supported with greater viability gap funding. The schemes should have segregation of capacity for modules and for both cells and modules.

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- Tax incentives to attract FDI: The government must offer tax holidays with a higher degree of relaxation for ingot or wafer manufacturing facilities.

- R&D support: The government must set up R&D centres supported by capital grants, subsidies and tax exemptions.

- Development of ancillary infrastructure: We must encourage domestic manufacturing of balance of system (inverters, glass, EVAs, etc.) through capital grants and other incentives. ***** To catch the rays of investments

How can India attract investment to shore up its renewable resources and alternative energy sector, and meet its target of 175 GW by 2022?

Some cues are provided in the Sustainable Development Goals (SDG) Investor Map Report for India, 2020, released last week by UNDP India and Invest India. It identifies stumbling blocks to bringing in domestic and foreign investments of $100 billion, estimated by the government as required to bolster the renewable sector, which has seen a dip in investor interest for various reasons including the post-Covid- 19 financial crisis. Consultations with industry experts threw up a host of issues impeding investment. Private players found land acquisition a difficult proposition, as also auction cancellations and renegotiated power

60 contracts. Apart from revised qualification requirements, they wanted a cap on the lowest quote and a fillip for newer and more efficient technologies. They also raised the issue of low, unfeasible tariffs. Next, the components used in manufacturing renewable energy-based products are imported at a high cost. There is dependence on Chile, Argentina, Bolivia, China, Congo and the US for core components of lithium-ion batteries. It will be a few years before India can reach the economies of scale to make these components. Another downside is the difficulty in integrating renewable energy into the Indian grid structure as there is no system to facilitate efficient electricity trading between states with surplus renewable generation. Establishing smart grids could help in this and in catering for storage. In addition, investors were wary of the mounting dues from distributors: Data from the Central Electricity Authority shows that in 2019, discoms owed $1.29 billion (around ₹9,500 crore) to renewable power producers. At present, the country’s installed renewable energy capacity is 87.26 GW, which includes 34.81 GW of solar, 37.74 GW of wind, 9.86 GW of biomass and 4.68 GW of small hydro. “Key investment deals in renewable energy sector [in 2020] amounted to $8.4 billion (₹61,000 crore), of which 41 per cent was in solar, 10 per cent in wind, while 1 per cent was for storage or solar,” Karanraj Chaudri, Advisor, India/ South Asia, Social Impact Investments, UNDP, told BusinessLine. The report identifies roof-top solar, floating solar, hybrid projects and electric vehicle-related technology as best opportunities for investors. The SDG report has explored prospects for investors in other sectors as well. These include education, healthcare, food and financial services. The aim is to ensure India keeps pace with its SDG commitments as it is found to be one of the countries most vulnerable to climate change. *****

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Germany scraps renewable fee on green hydrogen to encourage new technology

Germany's government on Wednesday lifted a charge levied on power prices to support renewable energy for producers of so-called green hydrogen, part of a bid to encourage the nascent technology for low-carbon fuels. The Berlin cabinet decided to waive the renewable energy fee under the EEG feed-in tariff law for electricity derived from wind and solar sources following an economy ministry initiative, government sources said. Green hydrogen, which is produced via electrolysis while conventional hydrogen is produced using fossil fuels, is meant to help decarbonise energy used in industry, transport and for heating buildings. Germany hopes to close the cost gap between the two products within 10-15 years, helped by a 9 billion euro ($10.8 billion) national strategy it passed earlier this year to meet long-term climate goals and transform its industries. The draft law said hydrogen could be key to building up climate-neutral energy sources and storage, but that it was important to cut its costs. "In view of the currently still high costs of hydrogen production, a market ramp-up - and the associated reduction in investment costs through economies of scale and learning effects - is only possible through creating cost-cutting framework conditions," it said. The government estimated that between 230 and 290 projects would apply for the waivers up to 2030. The government also intends to monitor effects of the measure in 2022 and look into further activities to boost green electricity in power systems. The EEG surcharge was introduced to support the expansion of carbon-free green power from wind and solar plants. The government capped it 62 earlier this year to help household customers for whom it makes up a fifth of their power bills, and because renewable production costs have fallen steeply. ($1 = 0.8302 euros) ***** Top projects to watch in the global push for hydrogen

Projects to produce clean hydrogen by splitting water, or from fossil fuels plus carbon capture, are under way or on the drawing board around the world. Developing demand is essential to get the ball rolling. Using hydrogen in industries that would be impossible or too costly to electrify will drive growth. Following are some ground-breaking projects underway worldwide.

SAUDI ARABIA: GREEN AMMONIA- Saudi Arabia's Neom planned city is working with the kingdom's ACWA Power and U.S. chemicals firm Air Products on a $5 billion project to build a 1.2 million tonnes a year green ammonia plant, which will use hydrogen produced from an electrolyser powered by more than 4 GW of solar, wind and storage. Production is due to begin in 2025.

CHINA: GREEN HYDROGEN- State-owned Beijing Jingneng Power Co is building a 23 billion yuan ($3.5 billion) green hydrogen plant in Inner Mongolia, to be powered by 5 gigawatt (GW) of solar and wind energy. The plant, due to be completed in 2021, will have a capacity of 500,000 tonnes of hydrogen a year.

JAPAN/AUSTRALIA: HYDROGEN FROM BROWN COAL- A A$500 million ($370 million) pilot project, led by Kawasaki Heavy Industries and backed by the

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Japanese and Australian governments, plans to ship its first cargo of hydrogen extracted from brown coal in Australia's Victoria state in March 2021.

The shipment would be on the world's first dedicated hydrogen carrier, KHI's Suiso Frontier. If the project goes commercial, it aims to capture and bury carbon dioxide released in the process under the seabed off the coast of Victoria.

NORWAY: GREEN AMMONIA- Norwegian chemicals group Yara plans to convert its Porsgrunn ammonia plant by 2026 to make ammonia from green hydrogen produced by electrolysis powered by renewable energy. The plant produces 500,000 tonnes of ammonia a year.

SWEDEN: HYBRIT GREEN STEEL- Swedish venture HYBRIT, owned by SSAB, state- owned utility Vattenfall and miner LKAB, began test operations at a 1.4 billion crown ($165 million) green steel pilot plant in August. SSAB aims to have fossil- free steel commercially available by 2026.

SCOTLAND: HYDROGEN IN HOMES- Scotland is running the world's first trial of 100% green hydrogen instead of gas for cooking and heating in 300 homes, in a project backed by Britain's Office of Gas and Electricity Markets.

SOUTH KOREA: HYDROGEN REFUELING- Hydrogen Energy Network, or HyNet, is a joint venture of 13 companies led by Hyundai Motor Co, Korea Gas Corp and Air Liquide Korea, backed by the South Korean government. It plans to install 100 hydrogen refueling stations in the country by 2022.

UNITED STATES: GREEN POWER-The Long Ridge Energy Terminal, under construction in Ohio, will have a 485-megawatt natural gas power plant designed to run entirely on hydrogen within a decade. The plant, set to begin operating in late 2021, will initially blend hydrogen into its gas stream. Long Ridge is owned by a unit of Fortress Transportation and Infrastructure Investors LLC and an affiliate of Chicago-based asset management firm GCM Grosvenor. ($1 = 1.3466 Australian dollars) *****

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Focus on hydrogen to meet zero emissions target

India plans to use hydrogen in a big way, including extracting it from coal, as part of a bouquet of measures towards achieving a net zero carbon emissions target. With China and 65 other countries having announced such a target already, the government is working on a feasible roadmap to make similar commitments. Prime Minister Narendra Modi had indicated as much at the Climate Ambition Summit on Friday.

“We must not only revise our ambitions, but also review our achievements against targets already set India will not only meet its own targets, but will also exceed your expectations,” he said.

Hence, the Ministry of New and Renewable Energy (MNRE) is asking for additional money for a hydrogen mission and has moved a cabinet note on it. The ministry has been supported by Niti Aayog member V K Saraswat, who has pitched for hydrogen extraction from a range of options, including coal and biogas. If the plan is adopted, the axe could, to some extent, fall on the expansion plans of the natural gas economy.

A simulation exercise by Niti Aayog shows that clean hydrogen could cut up to 34 per cent of global greenhouse gas emissions. But this needs a supportive policy environment. Hence the cabinet note for extra funds to expand the use of hydrogen. The Niti Aayog has also recommended that the gas pipelines being 65 laid across the country should eventually be used to transport hydrogen. Different ministries feel that it would be possible to adopt this mix of approaches as the price of renewable energy has reached a low of ₹ 2 per unit. Besides, globally, breakthrough advances in carbon capture technology are expected soon. This will leave more room for the use of coal to make hydrogen. Coal based power generation can grow to 248 GW in FY27 from the current 206 GW (as on August 2020).

Hydrogen is mostly extracted from natural gas, but India, under its aatmanirbhar (selfreliant) route, wants to deploy coal at one end and renewable energy at the other to extract hydrogen. India has large reserves of coal and the price of electricity generated from renewable energy is falling every year. The country imports almost 50 per cent of the natural gas it consumes, and the percentage is expected to go up despite efforts to locate domestic sources. So it is attractive to use technology employing both these options. These demonstrations could put a question mark on India´s hunger for natural gas. However, an expert said that since natural gas will be required for the production of urea and as fuel for domestic cooking for the foreseeable future, the current levels of imports are unlikely to be affected.

But there is no doubt that the government is now far keener to tap into hydrogen than natural gas. “India should exclusively focus on electrolysis until carbon capture and storage is a viable option for integration with coalbased hydrogen generation,” Saraswat said at a recent energy sector event. Hydrogen is not a fuel, but, like electricity, is an efficient carrier of energy.

While automobiles and railways are moving to renewable energybased generation of electricity, industrial units such as those that produce steel or cement cannot get the heat they need from these sources. Hydrogen, though, can generate the required level of heat. The catch is that currently hydrogen is generated primarily from natural gas through a process known as steam methane reform. However, if it can be generated by splitting water in an electrolysis reaction, it becomes what is known as blue hydrogen a renewable energy source. Both MNRE and Niti Aayog mandarins believe that it is more economical to produce hydrogen through electrolysis. By 2025, electrolysis capacity globally is expected to grow 55 times compared to 2015. They are also 66 hopeful that in another five years, the technology for carbon capture and sequestration will have matured enough to make coal based hydrogen generation a green option. The process is as follows: In a two stage reaction of coal with steam under high pressure, the final output is hydrogen and carbon dioxide. The hydrogen shall be used while the technology of carbon capture will ensure that no carbon dioxide is released into the atmosphere. Since hydrogen extracted from natural gas also leaves a carbon dioxide residue, Indian experts reckon it is better to invest in the abundant domestic coal reserves to do the trick.

“When considering a pathway to keep the rise of global temperature within 2 degrees Celsius by 2050, hydrogen consistently plays a critical role. There is no other viable pathway to decarbonisation,” the Niti Aayog member said. At current prices of renewable energy, MNRE estimates that each kilo of hydrogen can be generated in a range of ₹ 200 to ₹ 250, which is comparable to other energy prices.

Last week, Indian Oil and UKbased LanzaTech offered the media a demonstration of the process of capturing carbon dioxide using bio waste and refinery residues. ***** Who will spearhead Biden's climate, energy and agriculture policies?

President-elect Joe Biden has promised an overhaul of U.S. energy and environment policy to fight climate change, with a goal of bringing the economy to net-zero emissions by 2050. Although still to be defined, the plan includes ramping up clean energy technology and usage, reducing dependence on fossil fuels, federal procurement of clean energy technology and re-engaging the United States in a global pact to fight warming. Here are the people who have made Biden's shortlist for central roles in his energy and environment agenda:

ENVIRONMENTAL PROTECTION AGENCY ADMINISTRATOR

* Michael Regan, Secretary, North Carolina Department of Environmental Quality, since 2017 67

Regan has been part of a push to hold big companies like Duke Energy Corp accountable for pollution. Under his leadership of the state agency, Duke Energy agreed to the largest coal ash cleanup in the United States in January.

* Mary Nichols, chairwoman of California's Air Resources Board

As California's top environmental regulator, she has worked with industry and environmental groups to craft the state's ambitious environmental regulations, from an economy-wide cap and trade program to fuel efficiency requirements for vehicles. The former EPA assistant administrator during the Clinton administration told Reuters that California's auto emissions deal could serve as a good template for federal standards

* Heather McTeer Toney, national field director of Moms Clean Air Force

A former regional EPA administrator for the U.S. Southeast during the Obama administration, Toney is a favorite of progressives. She has trained diverse officials on leadership and climate in over 15 countries, including France, Kenya, Nigeria, Portugal and Senegal. She told Reuters the agency should explore how to better use the Civil Rights Act to protect poor and minority communities from pollution.

* Collin O'Mara, chief executive officer of the National Wildlife Federation, the country's biggest wildlife conservation organization

The federation advocates for the protection of wild lands and animals, as well as for outdoor enthusiasts. Previously the youngest person to head up the Delaware Department of Natural Resources and Environmental Control, from 2009 to 2014, O'Mara has been advising Biden's transition team on policy.

WHITE HOUSE DOMESTIC CLIMATE COORDINATOR

* Gina McCarthy, President, Natural Resources Defense Counsel

McCarthy headed the U.S. Environmental Protection Agency in the Obama administration, and was key to writing his signature climate change policy requiring steep emissions cuts from the electricity sector, the Clean Power Plan.

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* Ali Zaidi, deputy secretary for Energy and Environment and chairman of Climate Policy and Finance, New York State

As deputy director of the Office of Management and Budget under President Barack Obama, Zaidi led the administration's implementation of the Climate Action Plan. He now leads New York's ambitious efforts on climate policy and finance.

* Washington Governor Jay Inslee

Inslee ran in the 2020 Democratic presidential primary on a platform focused primarily on climate change. The Biden campaign embraced many of his proposed multi-sector climate change policies.

* Jennifer Granholm, adjunct professor, University of California School of Law

The former Michigan governor (2003-2011) set up a climate action policy for her state in 2007 and worked with the auto industry and the Obama administration on an auto industry bailout that would spur the deployment of low-emission or zero-emission vehicles. She wrote an opinion piece in the Detroit News about the need for a low-carbon COVID-19 economic recovery.

INTERIOR SECRETARY

* Deb Haaland, U.S. representative, New Mexico

The New Mexico Democrat would be the first Native American to head a cabinet agency. Her nomination to head the department, which oversees the millions of acres of federal and tribal land, has been pushed by members of Congress, Indigenous leaders and progressive activists. She told Reuters that Interior should be "promoting and increasing clean-energy leases" on federal land and should create more national monuments.

* Tom Udall, U.S. senator, New Mexico

The son of former Interior Secretary Stewart Udall, Udall is a long-time Biden friend and former aide and is retiring from the Senate this year. He told Reuters that if nominated to the post, he would set a goal to make federal lands carbon neutral by restoring and protecting forests and shrub lands so they absorb as 69 much carbon as is produced on them and that President Donald Trump's moves to open new parts of the Arctic to drilling would be quickly challenged.

* Michael Connor, attorney, WilmerHale

Also a Native American, Connor served as deputy secretary of the Interior Department under Obama. His early work there focused on negotiations with Indian tribes, state representatives, and private water users to secure water rights settlements. He works as a lawyer on tribal, environmental and energy issues at WilmerHale, alongside former Interior Secretary and Biden friend Ken Salazar.

ENERGY SECRETARY

* Elizabeth Sherwood-Randall, professor, Georgia Institute of Technology

A former adviser to Biden when he was in the U.S. Senate, she served in the Obama administration as deputy secretary of energy, where she led an initiative to address cyber and physical challenges to the power grid.

* Arun Majumdar, professor, Stanford University

Majumdar was the first director of the U.S. Department of Energy's agency that promotes and funds research and development of advanced energy technologies and also served as acting undersecretary of energy from March 2011 to June 2012. He worked at Alphabet Inc's Google as vice president for energy before joining Stanford's faculty.

* Ernest Moniz, president and CEO of Energy Futures Initiative

Moniz is a nuclear physicist who served as Obama's second energy secretary, and was a technical expert on Obama's team that struck the 2015 deal on Iran's nuclear program. He has been criticized by some environmental groups for supporting a role for natural gas in a U.S. transition toward zero-emissions.

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AGRICULTURE SECRETARY

* Tom Vilsack, president and CEO of U.S. Dairy Export Council

Biden plans to nominate the former Iowa governor, according to two sources familiar with the decision, a choice that would reassure farmers but disappoint climate and nutrition activists. Vilsack held the job under Obama (2009-2017) and actively campaigned for Biden in farm country, acting as his rural and agriculture adviser during the election bid. *****

Plastic firms seek regulator for raw material pricing, easing of imports

Our BureauMumbai, December 2Plastic manufacturers and processors have urged Prime Minister Narendra Modi to constitute a regulatory authority to curb undue profiteering by petrochemical companies. Hit by sharp increase in price of raw material (resin), ten leading plastics associations have written to Modi demanding constitution of Petrochemical Regulatory Authority to ensure that the PSUs such as IOCL, GAIL, BPCL support the domestic processing units by ensuring adequate supply at a fair price.

‘Ease raw material imports’

They urged the government to stop imposing barriers such as anti-dumping duty and mandatory BIS standards as demand for several polymers exceed domestic production. They also want an immediate ban on export of raw material to ease domestic supply and check price rise. The plastics industry consists of over 50,000 plastics processing units of which 90 per cent are MSME’s. It contributes more than ₹3 lakh crore to the country’s GDP.

Chandrakant Turakhia, President, the All India Plastics Manufacturers Association said the prices of the raw materials such as PVC, ABS, polypropylene, PC, PET have increased by 20-140 per cent over the last five months.

“The petrochemical companies are taking advantage of the surge in polymer prices by restricting the supplies to domestic processing units and releasing the 71 material after increasing the prices at regular intervals,” he said in the letter. Compared to international prices, the rationale for price increase by domestic producers are not justified, he added.

Since domestic petrochemical producers do not enter into forward contracts like in overseas, price manipulation by domestic companies become easy, it said. *****

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