Theme speech by Sri.
Ramesh Shivanna, Convener, Energy Committee at the Assochem solar
energy conference 2016 on 20th July, 2016 at 9.30 a.m. at Hotel Shangri-La , Bengaluru
Sri. D K Shivakumar, Hon’ble Minister for Energy, GoK
Shri shankarlinge gowda, IAS,®
chairman KERC
Sri. P Ravikumar, IAS, Additional Chief Secretary,
Government of Karnataka
Shri Rajendra cholan, IAS, Managing Director, BESCOM.
Shri G V Balaram, MD , KREDL
Shri shivkumar chairman Assochem
Shri S Babu co – chairman Assochem
Shri sudharshan, Director Asochem
Distinguished Invitees
Friends from the Print and Electronic
Media
Dear Friends
Ladies and Gentlemen
Good
Morning & I join my chairman in welcoming you all for the ASSOCHAM solar
conference 2016.
It is important for all
stakeholders to contribute to achieve the RE target set by the National RE
mission. There is a need for a robust and integrated policy regime which
attracts investors covering various aspects such as:
Stable and long term
policy framework
Role of Central and
State governments
corridor and Transmission
planning for RE Evacuation
Grid management
protocols
The objective of this
Seminar is to seek inputs from a large number of stakeholders including
industry (developers, system integrators and manufacturers), government (Central
and State), regulators, research institutions and think tanks. These
discussions in the workshop will be used as inputs for the National Energy
Policy (NEP) are being developed by NITI Aayog. It will help frame a robust and
long-term policy environment, which will help achieve the 175 GW of RE target.
·
The implementation of state
government ambitious programme of installing 100GW of Solar Power in the
country by 2022.
·
Sharing experiences of successful
projects the participants will be able to set the benchmark of their
performance and develop system of effective project management of solar
installation.
·
To discuss the support needed from
concerned State Governments regarding various issues of projects.
·
Know the capability of local
manufacturers and suggest improvement.
·
Showcase the investment potential in
Solar Sector to rest of the world to achieve the target for installation of
solar power.
·
Provide platform for entrepreneurs,
financers, mentors and others stakeholders to engage and collaborate across the
world, to share ideas, best practices; develop solutions and partnerships that
benefit India.
At present renewable
sources form about 13% of the total installed capacity of power in India. The state government is currently targeting
to increase renewable energy capacities and this ambitious capacity addition
plans call for several modifications in policy actions, regulatory measures,
technical advancements and suitable investments supports.
India has
the potential to be amongst the top three countries globally in the next five
years in terms of installed capacity of renewable energy, thereby creating
millions of new jobs, reducing poverty and achieving sustained socio-economic
development.
Accordingly,
enhancing the share of renewable in the overall energy basket of the country is
a priority for the Indian government. With solar power at the centre
stage, Government of India has ambitious programme to install 100 GW of solar
electricity by 2022.
Solar has a
prime role to play in energy security, helping to achieve a clean energy mix in
the country. Three main factors – macro drivers, energy market drivers
and technology-specific drivers – drive the market attractiveness for solar in
India. They determine whether the country has a favorable investment
climate.
·
Macro
drivers include the economic and political stability of the country and ease of
doing business.
·
The
country’s energy market is driven by the demand - supply scenario of solar
energy, electricity consumption growth,
reliance on energy imports and energy mix ratios. The power
infrastructure and ability to connect solar energy and availability, cost of
finance for solar energy also drive the market.
·
Technology
specific drivers include attractiveness of a solar project. The
parameters are strength and potential of harnessing solar energy, technology
maturity, forecasted growth and strength of the local supply chain. This
means the state of local manufacturing of solar technologies in the
country.
Nevertheless,
Karnataka has been always fore front among all the states creating innovative
policies.
Various
initiatives are being taken by the Karnataka state government for creating
conducive policy environment for development of Renewable Energy in the state.
However, there is a need to undertake
innovative and concerted efforts with a view to reducing the cost of finance
and cost of technology for speedy deployment of competitive solar power
installations in the state.
There is
need to strengthen the local supply chain: One of the prime issues of
local manufacturing in solar components is that the entire manufacturing chain
is not in India. It is mostly dependent on import of components from
other countries. Differential pricing by foreign suppliers has also added
to the problem for Indian manufacturers. Addressing this challenge should
be one of the major areas of concern of the Government. The Government should
encourage backward integration to expand the chain of production in
India. The Government should encourage procurement of solar energy by
giving the domestic manufacturers preferred status. With these
initiatives in place, Indian manufacturers of solar technologies are expected
to play a bigger role.
When we met
Mr shankarlingegowda chairman of KERC in his office, he asked us one question? What is the consumption of power per day in
the Karnataka state? We understand from him that the total power consumption is
150 Miilions units a day, where as neighboring states like tamilnadu is more
than 300 million units, Andra pradesh/telangana is 275 million units. It means the
state is consuming less energy; it speaks about the industrial growth in the
state. The industrial growth or economy growth is directly measured by the
energy consumption a day. We as representatives of Industry Assochem and the government
should think about this. The large
manufacturing should come to the state. It is very much necessary to bring
manufacturing units in the renewable energy domain in the state. We request honorable
minister to create Industrial park exclusively for the renewable energy
equipments manufacturing in the state with few incentives to invite investors
in the manufacturing.
There is
need for the research and development activities in the state for creating
solar energy, and all the clean energy. Addition to this, clean energy storage
facilities going to be future. Government should encourage and initiate such
research and developmental activities.
Sir, Industry friends sitting here, seeking many
clarifications from the government.
The
different projects are at different stages of implementation.
·
Reverse
bidding PPA’s and its developers facing a challenges like
o Delay in the Land
procurement and NA activities
o Delay in the evacuation approvals
, ROW and so on
o Most of the developers are
seeking for the PPA’s extension without changing the tariff and other terms and
conditions.
·
PPA’s issued under land owner scheme and its
developers has challenges like
o Delay is due to funding challenges without collateral from the banks
o Most of the Land owners are
seeking for the PPA’s extension without changing the tariff, terms and conditions.
·
Rooftop
developers has challenge of
o The earlier solar rooftop policy
and with draw of the policy made investors, developers, bankers uncertain and
unviable about the Rooftop solar scheme.
·
Bilateral
power purchase has question
o Many of the private consumers are
willing to buy from the private solar power generators. Developers looking for
the ease of getting NOC and evacuation approval.
With this
once again I wish to mention all of you, ASSOCHAM always work with government
and other stake holders to promote the Renewable energy by conducting seminars,
conferences and workshops .Discuss the issues and challenges faced by
stakeholders in implementation of Green Energy, here we are with you from this
one day conference with theme “Solar energy- the new investment power path”
Our
panelists from state government, regulators and industry captains will discuss
throughout a day
Have a
wonderful day
Thank you.
