Renewable Energy event organized by FICCI
Market Potentials and Business Applications for Renewable Energy and Energy Efficiency in India at Hannover Messe
NEW DELHI(N4C Desk)- As part of the Partner Country Programme, India organized a renewable energy event on “Market Potentials and Business Applications for Renewable Energy and Energy Efficiency in India” at Hannover on April 14. Four MOUs were signed at the Renewable Energy event organized by FICCI, Ministry of New and Renewable Energy, Government of India and the Indo German Energy Forum, the German Federal Ministry of Energy (BMWi) and the German Renewable Energy Federation (BEE). This day-long event was held as part of India’s programme as the Partner Country.
Thorsten Harden from the German Federation Ministry of Energy while speaking at the event said “we need to combine India’s advantage of democracy, demography and demand with Germany’s technological expertise. The 10th anniversary of the Indo-German Energy Forum will be celebrated in October this year. We see a new wave of change in India. RE-Invest 2015 demonstrated industry’s commitment to the Prime Minister’s goal of 24X7 energy. We need to reshape the IGEF to meet the needs of the new renewable energy targets. Learning from each other’s experiences will help in delivering the solutions to meet the targets set.”
Upendra Tripathy, Secretary, Ministry of New and Renewable Energy, Government of India, in his address said we can learn a lot from Germany. Germany’s own target of 80% renewable energy by 2050 is an impressive target. The challenge in India is who will buy the power. We need to bring down the cost of power, the cost of input, cost of finance, cost of evacuation and transaction. RE-Invest 2015 was an eye opener as it generated 273 GW of commitments in renewable energy, and a huge interest from the private sector. MNRE has also brought innovation by bringing in the concept of solar parks to centralize solar power generation and reduce costs. The World Bank is financing one solar park. This is an area KfW could also look at financing.” He also added that Germany’s forecasting error for solar is 7% and for wind is 3%, whereas India’s forecasting error is 37%. This is an area where India could learn from Germany.
Dr Arbind Prasad, Director General, FICCI said “It is an opportune moment for us to discuss the renewable energy opportunity in Hannover as Hannover represents Germany’s innovation and manufacturing excellence and it coincides very well with India’s thrust on Make in India where we will need to look at excellence in manufacturing to enhance our competitiveness at home and globally. We believe Germany can help shape the ecosystem for renewable energy in India, an ecosystem that needs skill development, research and development, testing facilities, supply chain for manufacturing, and all this Germany is very well positioned to offer.”
The Indo-German Energy Forum has several ongoing initiatives in India with the Indian Ministry of New and Renewable Energy. Among these are the Renewable Energy Supply in Rural Areas (RESRA), TRIGEN, Solar Data Mapping and Monitoring (SOLMAP), Commercialization of Solar Energy in Urban And Industrial Areas (COMSOLAR), Integration of Renewable Energy into the Indian electricity system (I-RE).
Renewables in India is meeting an unmet demand unlike in other countries where renewables is replacing other sources of energy generation.
During the two industry panel discussions – one on Make in India for renewable energy and the second on Investment Opportunities in Renewable Energy in India, companies on the panel highlighted what is needed to make in India. The following key recommendations were made:
- Knowledge Management and how to integrate RE into grid
- Bringing SMEs from Germany to India to augment the supply chain for wind industry in India
- There is huge shortage of inverters, transformers, and other components of the ecosystem that needs to be enhanced in order to give the Make in India a big push.
- Setting up large competitive manufacturing facilities to sustain the Make in India motto
- Focus on large scale and sustainable projects
- Setting up the ecosystem to enhance competitiveness where German industry with innovation and disruptive technology can play a big role
- Smart grids is another area of collaboration to be explored with Germany
- Need to improve the traditional energy system in India
- Research institution and industry can collaborate to address the challenges
- Germany draws high respect in India due to its engineering capabilities. If German engineering product made in India happens, then there will be immense demand.
- Manufacturing turbines in India and balance of systems is a big opportunity for collaboration in the wind energy in India
- Extend the potential of Indian renewable energy sector to technology development
- Training of manpower for renewable energy sector in India can be a huge opportunity for Germany
- Companies need to be competitive on a global scale. There is need for high tech cooperation to enable Indian manufacturers to be globally competitive. Government needs to provide the framework conditions for the market to develop. There is a political will to remove the barriers.
The German speakers alluded to the fact that outside Germany, India is the most attractive market for German companies without doubt. The major issues to be tackled jointly are regulatory uncertainties, the policy frameworks decided by state governments and not by the Centre, the contractual terms, simplification of legal and administrative procedures. German companies can deliver products and components from the engineering point of view. German companies can come in with international finance when they enter the Indian market. This is possible if the project sizes are big. The framework conditions need to be created for the market to develop.
The Indian and German companies and institutions which spoke at the event included ACME Cleantech Solutions, Energy Efficiency Services Limited, Fraunhofer ISE, German Solar Association, German Wind Association, KFW Development Bank, Mytrah Energy India, Sindicatum Sustainable Resources, Suzlon India, Vestas and Vikram Solar.