INDUSTRY STRUCTURE AND DEVELOPMENTS IN RENEWABLE ENERGY:

World is Going Green Today, there is a global urgency to move towards cleaner and greener energy. The recent Inter governmental Panel on Climate Change (IPCC) has underlined the need to develop renewable energy (RE) as the major solution in mitigating climate changes and preventing global warming. At present, only 14% or 160GW of world's total energy demand is met through renewable energy.

The fact that between now and 2030 global energy demand is expected to increase from 1,400 Mtoe to 2,200 Mtoe - an increase of 60% further adds to the magnitude of the problem. Responding to the call, governments world over have shown their support to renewable energy through favorable policies such as fixed tariffs for renewable powered electricity, Renewable Portfolio Standards (RPS), tax incentives, investment grants, Carbon credit mechanisms, etc. As per Indian government data, renewable energy constitutes only 7.9% (10,407MW) of India's overall installed capacity.

To promote the sector, the Indian government has drafted a new RE policy, aimed at generating 15,000MW of power through renewable and non-conventional sources by 2012. The government has also set a medium scale goal of electrification of 24,000 remote villages; deployment of solar water heating systems in 1 mn homes, manufacturing 5mn solar lanterns and 2mn solar home lighting systems; and setting up an additional 3mn family size biogas plants. It is anticipated that the private sector will play a pioneering role in the Indian RE sector.

Investment from the private sector in the renewable energy sector is expected to be in the tune of $8.48bn during the 11th Five Year Plan. Large Demand-Supply gap in Electricity Abundant RE resources like solar, wind, biomass and green plants. Low gestation periods for setting up RE projects with quick return Conducive Government Policies High potential to develop Jatropha as a fuel source in India.

RENEWABLE ENERGY IN INDIA:

HUGE GAP BETWEEN CURRENT CAPACITY AND POTENTIAL:

Source------->Capacity as on March 2007-------->Production Potential

Wind (MW)--------------- ----> 7092.0---------------------------------------------->45000

Small Hydro(up to 25MW)-------->1975.6----------------------------------------->15000

Biomass Power(MW)-------------->524.8--------------------------------------------->19500

Solar Photo Voltaic Power (MW/sq.km) --->2.7-------------------------------->20

Solar Water Heating systems (mn. Sq. mtrs collectors area ) -->1.5------------->140

Biomass gasifiers (MW)------------------->86.5----------------------------->6000

Biogas plants in Nos. (mn)---------------->3.8-----------------------------> 12

Wind Energy: India is today the world's fourth-largest market for wind energy in terms of annual installations with a global market share of 10.9%. But despite technological evolutions, the country was able to add only 902MW of wind power capacity in 2007, compared to its total potential estimated at 45,000MW. Government of India has embarked upon the world's largest wind resource assessment program comprising wind monitoring, wind mapping and complex terrain projects. This program covers 800 stations in 24 states with 193 wind monitoring stations already in operation. Such projects indicate positive signals for the industry and companies operating in wind energy vertical.

Hydel Power: India has a hydroelectric potential of about 150,000MW, however, only 17% of it has been harnessed so far. Indian Government is targeting an additional 50,000 MW of hydro capacity within the next 15-20 years at an estimated cost of Rs 2,000bn. It has taken up various policy measures to liberalize hydel power projects, including the revised hydro policy expected to be unveiled soon. Hydro projects of 20,928MW are at various stages of execution, while projects of 38,731MW are yet to be awarded/under approval.

Biomass Energy: The total potential of Biomass power in India is estimated at 16,000MW, compared to miniscule current installed capacity of 86.5MW. his new source of renewable energy has so far got very little attention from the government. That is changing-how as for this sector to show significant growth, innovations in fuel supply chain is crucial. Sourcing of agricultural residues and wastes and optimizing the logistics cost are the dual requirements for growth of this sector.

Solar Power: In India, we usually have 300 clear sunny days in a year in most parts of the country. This is equal to over 5,000tn kWh/year, which is far more than the total energy consumption of the country in a year. This underlines the scope of generating power and thermal applications using solar energy. In terms of numbers, India has a total potential of producing 160MW/Sq.km in Solar Energy (Solar Photovoltaic and Solar Thermal), but unfortunately only 4.2MW/ sq.km has been harnessed till now.

Bio-Diesel: Worldwide, Jatropha oil is a potential substitute for diesel, providing cheap and renewable source of energy for transport & power. The plant can grow in wastelands, and it yields more than four times as much fuel per hectare as soybean, and ten times as much as corn. Also, Jatropha is a one-stage conversion to bio-diesel. It does not require any engine modification upto 20% blend with petroleum diesel and a minor modification for higher percentage blend. During the year, Government of India has mandated the blending of 10% Jatropha ethanol in 90% gasoline. This mandate has created demand for approximately Rs 3.6bn worth bio-diesel for the entire country, creating tremendous potential for Jatropha in India.

Energy-smart technologies for buildings: According to New Energy Finance, a renewable energy investment research company, energy consumption for residential and commercial buildings lies between 35% and 45% of total global energy consumption, higher than both industry and transport. in the US, 35% of total energy demand is from heating and cooling. Lighting takes up another 33%. So two-thirds of all energy in commercial buildings is accounted for by heating/cooling and lighting. Indian commercial buildings too are likely to consume a lot of energy even though they don't require heating. This presents a big opportunity.