theme speech in solar energy conference by Ramesh shivanna on 20.07.2016

Theme speech by Sri. Ramesh Shivanna, Convener, Energy Committee at the Assochem solar energy conference 2016 on 20^th 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 event will discuss the issues and solutions concerning

·        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.