Volume 2, Issue 1 In this issue: Pakistan: Short

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.
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
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.
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
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.
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.
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.
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.
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.
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.