CLIMATE for CHANGE to RENEWABLES

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CLIMATE for CHANGE toRENEWABLES

• Pradeep Chaturvedi
• Chairman
• Indian Association for the Advancement of Science

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Energy Security
The Expert Group on Integrated Energy Policy for
India offered a new definition to energy security
as We are energy secure when we can supply life
line energy to all our citizens irrespective of
their ability to pay for it as well as to meet
their effective demand for safe and convenient
energy to satisfy their various needs at
competitive prices, at all times and within
prescribed confidence level considering shocks
and disruptions that can be reasonably expected.
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VISION

• The broad vision behind the energy policy is
  to reliably meet the demand for energy services
  of all sectors including the lifeline energy
  needs of vulnerable households, in all parts of
  the country, with safe and convenient energy at
  the least cost, in a technically efficient,
  economically viable and sustainable manner.

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IEP General Principles

• Energy market should be competitive to ensure
  economic efficiency and for promoting optimal
  investment
• Public sector investment in energy should be
  supplemented by private investors to expand
  energy supplies
• Both the tax structure and regulatory philosophy
  applied to each energy sector should be
  consistent with the overall energy policy and
  should provide level playing field
• Subsidies should be transparent and targeted
• Energy efficiency is extremely important and can
  be promoted by setting appropriate prices and
  non-price incentives
• PSUs operating in the energy sector must operate
  with autonomy and full accountability

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IEP Climate Security Initiatives

• Energy efficiency in all sectors
• Emphasis on mass transport
• Active policy on renewable energy that stipulates
  renewable portfolio standard
• Promotion of bio-fuels and fuel wood plantations
• Greening India programme
• Accelerated development of nuclear and hydro
  electricity
• Technology Missions for clean technologies
• Focused RD on many climate friendly technologies
• A Solar Technology Mission to make solar power an
  economic option to coal based power

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NAPCC Guiding Principles
n     Protecting the poor and vulnerable sections
of society through an inclusive and sustainable
development strategy, sensitive to climate
change. n       Achieving national growth
objectives through a qualitative change in
direction that enhances ecological
sustainability, leading to further mitigation of
greenhouse gas emissions.
n    Devising efficient and cost-effective
strategies for End Use Demand Side
Management.  n    Deploying appropriate
technologies for both adaptation and mitigation
of greenhouse gases emissions extensively and at
an accelerated pace.  
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• NAPCC Guiding Principles
• Engineering new and innovative forms of market,
  regulatory and voluntary mechanisms to promote
  sustainable development.
• Effecting implementation of programmes through
  unique linkages, including with civil society and
  local government institutions and through public
  private-partnership.
• Welcoming international cooperation for research,
  development, sharing and transfer of technologies
  enabled by additional funding and a global IPR
  regime that enables technology transfer to
  developing countries under the UNFCCC.

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• Actions Relating to GHG Mitigation
• Policy Statements
• Integrated Energy Policy Report 2006
• Electricity Act 2005
• Electricity Tariff Policy 2003
• Petroleum and Natural Gas Regulatory Act 2006
• Rural Electrification Policy 2006
• National Environment Policy 2006
• Energy Conservation Building Code 2007
• Mass Transport National Urban Transport Policy

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Sustainable Growth for India

• Economic crisis opens opportunities in rural
  areas for processing of food and fuel products
• Energy security will gain a new dimension that
  will focus on small quantity sustainable energy
  supplies in any service form supporting
  decentralised income generation opportunities in
  rural and semi urban areas through SME route.
• Higher income distribution in rural areas will
  also call for higher demand for energy services
  for better quality of life. Switching over to
  Renewables makes sense.
• Many of these can be linked to governments
  ongoing schemes or covered under the corporate
  worlds CSR commitments. Many examples already
  exist
• The government is committed to development with
  climate security

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Investment in Renewables

• Unprecedented growth in industry and investment
  set new pace in the global energy revolution in
  the year 2007.
• US 71 billion was invested in new renewable
  power and heating capacity worldwide, of which
  47 was for wind power and 30 for solar PV.
• US10 billion in new solar PV manufacturing
  capacity
• US 4 billion in bio fuels plant additions, and
• US16 billion in research and development.
• Total reaches over US 100 billion for the first
  time in history.
• Investment flows also became more diversified and
  mainstream during 2006 and 2007 including flows
  from
• major commercial and investment banks,
• venture capital and private equity investors,
• multilateral and bilateral development
  organizations, and
• smaller local financiers.

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Investment in Renewables

• 2006 and 2007 saw investors world wide pay much
  greater attention to companies in the renewable
  energy sector.
• This attention translated into higher stock
  valuation and more aggressive industry expansion.
  
• By mid 2007, world wide at least 140 publicly
  traded renewable energy companies or renewable
  energy divisions of major companies had a market
  capitalisation greater than US 40 million each.
• Estimated total market capitalisation of these
  companies and divisions in mid 2007 was more than
  US 100 billion and the number of companies in
  this category jumped significantly over the year,
  from around 85 in 2006.
• Dozens of other companies appeared poised to
  become public and /or attain higher valuations,
  as initial public offerings (IPOs) and strong
  investment flows continued during 2007.

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Policy Trends

• One clear trend is that more and more countries
  are enacting new policy targets for renewable
  energy, or strengthening and extending existing
  targets.
• Policy targets now exist in at least 66 countries
  worldwide. Most targets are for share of
  electricity production, primary energy, and/of
  final energy by future year and the majority aim
  for the 2010-2012 timeframe, although an
  increasing number aim for 2020 and beyond.
• In addition, targets for bio fuels as future
  share of transport energy now exists in several
  countries.

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Policy Trends

• Three key drivers for effective renewable energy
  investments are those of environment policy,
  market liberalization and the falling cost of
  technology. In order to identify the best
  investment opportunities, it is important to pin
  point markets where these three drivers interact.
  
• Difficult global financial situation in 2008 has
  witnessed a major shift that instead of the end
  users investing in devices, new brand of
  intermediaries are emerging who are promoting
  leasing of the equipment, thereby taking away the
  risk of ownership from the end user.

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Issues for Discussion

• Impact of global economic turbulence on economic
  activity and threat and potential for energy
  supply
• Impact of climate change on global economy and
  energy availability and optional supply routes
• Revisit projections/recommendations of the
  Integrated Energy Policy Document and other
  Policy Statements and Acts and develop new
  projections.
• Strategy to fulfill all the energy needs in
  lifeline activities for the poor in the rural
  areas and to provide employment and income
  generation opportunities, mainly in rural and
  semi-urban areas
• Ascertain if the existing policies in the allied
  sectors sectors need any change that will support
  growth of cleaner energy technologies
• Identify changes necessary in Electricity Act to
  support growth of Renewable energy and Energy
  Efficiency Programmes

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Issues for Discussion

• Impact of energy efficiency and energy
  conservation progammes and strategy for their
  accelerated implementation in a time bound manner
• Strategy for enhanced contribution from renewable
  energy sources through time bound targets
• Identify government interventions to promote
  renewable energy applications through market
  instruments
• Study and ascertain as to how the energy
  efficiency programme and renewable energy
  programme should be developed in complementarity
• Conduct micro and macro level studies to develop
  job opportunities in Renewable Energy and Energy
  Efficiency sector
• Promote advance RD through Public-Private-Partici
  pation involving public and private funding

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Way Ahead

• The issue of sustainable energy supply for
  socio-economic growth is too big to rely only on
  the free market and the reputational risk of
  businesses
• Government intervention is needed to drive this
  shift towards energy security in low carbon
  economy.
• India will need comprehensive policy proposals to
  deliver real change for sustainable energy
  solutions.
• A slowing of economy should not be used as an
  excuse not to act
• Decisive action on climate change would stimulate
  the path for low carbon economy at a time when it
  is certainly needed.

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Climate for Change

• India has the Right
• CLIMATE for CHANGE
• to
• Renewables