REEEP Newsflash: January 2009 Volume 2, Issue 1 REEEP Newsflash, the monthly electronic news service, brings you latest news and developments in the area of renewable energy and energy efficiency in India and other South Asian countries. This service is prepared by REEEP South Asia. REEEP (Renewable Energy and Energy Efficiency Partnership) actively structures policy initiatives for clean energy markets and facilitates financing mechanisms for sustainable energy projects. Archives of the newsflash are available on the REEEP South Asia Secretariat web site (http://www.aeinetwork.org/reeep/index.htm) and the REEEP international secretariat website on the South Asia Secretariat web page (http://www.reeep.org/442/southasia.htm). In this issue: Energy efficiency • India: ESIC, BEE sign MoU for boosting energy efficiency • India: Haryana to develop two green cities Renewable energy • India: Solar table lamps for rural students • India: Gujarat may get Rs 100-billion investment in solar sector • India: Hydrogen R&D project to take off in 3-4 years • PSUs upbeat on alternative energy • Bangladesh to receive $100 million loan from World Bank • Turkish firm to set up 50 MW wind farm in Pakistan worth $120 million • Pakistan: Short-term renewable energy policy extended • India: Gains in renewable energy • India: Singapore company to set up Rs 5000 million energy projects Energy efficiency India: ESIC, BEE sign MoU for boosting energy efficiency The Pioneer, 17 January 2009 A memorandum of understanding was signed between the ESI Corporation and BEE (Bureau of Energy Efficiency) by the Chief Engineer, ESIC and Secretary, BEE. Mr P C Chaturvedi, Director General, ESIC, Mr Rajiv Datt, Financial Commissioner, ESIC and other senior officers of the ESIC and BEE were also present. The MoU aims at advancing and implementing energy efficient measures in various hospitals, commercial buildings, residential colonies being owned and operated or authorized by the ESIC all over India. This memorandum will remain in force till 15 January 2010. The memorandum can be extended further by the mutual consent of both parties. Installation of energy-saving devices is a win-win situation for both the ESIC and the installer, as investment can be recovered within a short period. The benefits shall be shared by the installers and the ESIC and will be good for the country as a whole. To start with, the devices are to be installed in ESI hospitals in Jhilmil and Rohini. India: Haryana to develop two green cities The Financial Express, 28 January 2009 The state of Haryana has got in-principle approval to develop Gurgaon as a solar city by using renewable energy sources for power generation. The proposal for Faridabad has also been forwarded to the ministry of new and renewable energy for approval. The step is being taken in the wake of rising electricity demand-which has gone up by 15% over the last couple of years-in the major cities of the state. The ministry has already announced to spend close to Rs 300 million (Rs 50 lakh per city) for development of 60 solar/green cities pan India during the eleventh Plan. The government scheme is a step forward towards reducing the green house gas emissions and promoting renewable energy in the urban areas. As per the latest UN report one million people are moving to urban areas each week. It is estimated that around two-thirds of the world population will be living in cities by 2050. Cities like London, New York, Tokyo have achieved major reduction in carbon emissions by shifting to renewable energy. Now India is toeing the line by initiating the solar cities programme. The ministry of new and renewable energy has granted in-principle approval to 15 other cities also to be developed into solar cities. http://www.financialexpress.com/news/haryana-to-develop-two-green-cities/415784/ Renewable energy India: Solar table lamps for rural students The Hindu, 2 January 2009 The HAREDA (Haryana Renewable Energy Development Agency) has come up with an innovative scheme to provide LED (Light Emitting Diode)-based solar table lamps called 'Shikshadeep' to the students who are facing difficulty in studying due to power shortages in the rural areas. 'Shikshadeep' was basically a portable lighting device which would work for four to five hours daily. The lamp and battery would be warranted for a period of five years whereas the solar panel would be warranted for ten years. The approximate cost of one such lamp would be Rs1600. He said the girl students of the rural schools who top in their schools in the annual examinations of Class V, VIII, X and XII would be provided Shikshadeep free of cost. HAREDA has also decided to provide one solar educational kit per school in all 3000 secondary schools of the State on demonstration basis to popularize Photo Voltaic technology among the students. The cost of these kits would be shared by the State and Central Governments in the ratio of 50:50. http://www.hindu.com/2009/01/02/stories/2009010259440500.htm India: Gujarat may get Rs 100-billion investment in solar sector Business Standard, 5 January 2009 Gujarat is likely to see investments in solar energy sector to the tune of Rs 100-120 billion. As many as twenty companies are likely to invest in the sector at the upcoming Vibrant Gujarat Global Investors Summit 2009 which would generate over 1000 MW of solar power, said a senior government official close to the development. These include Reliance Industries, Essar group, ADAG group, Tata Power, Indiabulls, Suryachakra and Euro group. All these companies have lined up proposals in photovoltaic, thermal and hybrid solar projects to the state government. The state has meanwhile sought the expertise of US-based John Byrne, a Nobel Laureate, to help chart the state's solar roadmap. A separate policy called 'Gujarat Solar Policy' to give boost to the players will be out shortly along with a separate tariff. Gujarat has been the first state wherein the country's first power project proposals by Reliance and Euro group have been approved by the Centre. Tata Power has begun trial runs in Kutch district and intends to set up a 200 MW project in the state. http://www.business-standard.com/india/storypage.php?autono=345199 India: Hydrogen R&D project to take off in 3-4 years The Economic Times, 12 January 2009 Using hydrogen as auto fuel in India seems to be a distant dream as it would take 3-4 years to start a major research and development project for the purpose. Mr M B Lal, chairman of scientific advisory committee of oil ministry said that about Rs 1000 million seed money is available, but more funds would be required to meet the requirement. The oil companies as well as government would have to shell out more funds for the project. India: PSUs upbeat on alternative energy Business Standard, 18 January 2009 Despite the sharp fall in crude oil prices globally, government-owned oil companies are not scaling back their research and development spends on alternative and renewable energy. They have, in fact, been aggressively increasing their outlays for such programmes. For instance, IOC, the nation's biggest marketer and refiner, doubled its R&D spend from Rs 300 million to Rs 600 million this year. The company is conducting research in areas like biodegradable lubricants and oil refining technology. The company will shortly commission a pilot at its Faridabad centre, where it will install technology for coal gassification and production of ethanol from biomass. BPCL, which is also a government-owned refiner and marketer, increased it R&D spend by 20% from Rs 250 million last year to Rs 300 million this year. The company could look at similar or increased spends in the next financial year. The company is focusing on bio-diesel and bio-lubricants, converting biomass into bio-ethanol, nanotechnology, and making more efficient solar PV cells. The state-run refiner is also planning to use hydrogen fuel cell technology to generate 1000 Mw over the next three to five years. Fuel cell technology converts chemical energy into electrical energy, with heat and water as byproducts. Most fuel cells use hydrogen and oxygen as chemicals. http://www.business-standard.com/india/news/psus-upbeatalternativeenergy/12/48/346421/ Bangladesh to receive $100 million loan from World Bank Planet Ark, 19 January 2009 The World Bank plans to lend Bangladesh $100 million by June to promote renewable sources of energy, particularly solar power. Bangladesh's main source of energy, natural gas, is depleting fast and its recoverable gas reserve will meet demand only up to 2012, the state-run oil, gas and mineral corporation, Petrobangla, has said. Bangladesh now faces a shortage of over 250 million cubic feet of gas per day (mmcfd) against demand for over 2000 mmcfd. Compounding problems, power generation has been hampered over the last few years as nearly 80 percent of the country's electricity is produced using gas. The government has formulated a renewable energy policy to encourage the private and public sectors to develop alternative sources of energy, with the aim of meeting up to 10 percent of total electricity demand through renewable energy. Japan has said that it had pledged to lend Bangladesh nearly $440 million for power generation and bridge construction projects. http://planetark.org/wen/51261 Turkish firm to set up 50 MW wind farm in Pakistan worth $120 million Power Engineering, 21 January 2009 Turkish company Zorlu Enerji (Pvt) Ltd will establish a wind farm of 50 MW at an estimated cost of $120 million in Pakistan and later the capacity of the farm will be extended to 250 MW. The energy power purchase agreement was signed for 6 MW of electricity generated at the company facility in Jhimpir. http://pepei.pennnet.com/display_article/350641/6/ARTCL/none/none/1/Turkish-firm-toset-up-50-MW-wind-farm-in-Pakistan-worth-$120m/ Pakistan: Short-term renewable energy policy extended Business Recorder, 21 January 2009 The Board of Directors of EADB (Alternative Energy Development Board) has approved the extension of short-term renewable energy policy till December this year. The decision was taken at the 17th meeting of the board that was chaired by Federal Minister for Water and Power and Chairman AEDB. The short term policy approved by the federal cabinet in December 2006 was meant for successful business and technology demonstration, appropriate regulatory framework, market and resource assessment, rural energy programme design, pilot testing of decentralized energy provision, capacity building, development of RE financing and market facilitation measures. This policy was to be taken over by more comprehensive medium term policy, which is still under formulation. The board also decided to approach provincial governments for provision of wasteland for bio-diesel plantation. Several private sector organizations have shown interest in bio-diesel production and have sought land for plantations. Bio-diesel can be extracted from sunflower, canola, mustard, rape seed, soyabean, pongame (SukhChaien), castor seed and jatropha. http://brecorder.com/survey/index.php India: Gains in renewable energy The Financial Express, 27 January 2009 The 11th Five-Year Plan envisages an addition of 78,500 MW of new capacity to arrive at a cumulative target of 2,00,000 MW by 2011-12, in order to meet peak demand needs, which will accelerate as the government implements it plans to electrify 45% of the households that are yet to be connected to the electricity grid. Though the project appears to be ambitious, the process has already been initiated. The capacity target for renewable energy is 14,000 MW, which will add to the 8,175 MW installed by the end of 10th Plan. Renewable energy will constitute nearly 11% of total installed capacity by the terminal year of the Eleventh Plan as against only 6% by the end of last plan. Indian efforts in renewable energy are commendable considering the 20% target set up by the developed countries for 2020. The necessity to be aggressive on renewable energy does not need emphasis in the context of global warming resulting from fossil fuels and mankind's search for nature's plentiful gifts to meet the demand and avoid wastages. http://www.financialexpress.com/news/gains-in-renewable-energy/415422/ India: Singapore company to set up Rs 5000 million energy projects The Financial Express, 31 January 2009 All Green Energy India, a subsidiary of Singapore-based All Green Energy Pvt Ltd, will invest around Rs 5000 million to set up 10 biomass-based renewable energy projects in the next three years, a top official of the company said. The investment will be raised through debt and equity at 70:30 ratio and negotiations are on with local banks and private equity players for raising funds. Initially in the first quarter of 2009, the company will start constructing three projects, each in Tamil Nadu, Karnataka and Madhya Pradesh, he added. Each project involving an investment of Rs 500 million will commence operation by March 2010. The remaining projects will be completed in the next two to three years. http://www.financialexpress.com/news/Singapore-co-to-set-up-Rs-500cr-energyprojects/417263/