3rd, July, 2002
Ministry of Non Conventional Energy Sources  


ENHANCED COOPERATION AND INVESTMENTS IN RENEWABLE ENERGY SECTOR FROM EUROPE


The visit by a 12 member official-cum-business Renewable Energy Mission led by the Minister of State (Independent Charge) for Non-Conventional Energy Sources, Shri M. Kannappan, to the Netherlands, United Kingdom and Switzerland from June 19-28, 2002 is expected to enhance bilateral cooperation and bring technologies and investments to India in the non-conventional energy sector. The visit was undertaken to present the opportunities arising from Government of India’s plans to add a capacity of 10,000 MW of grid power and electrify 18,000 remote villages through renewables by the end of the Eleventh Five Year Plan in 2012. Significant policy and technological developments are taking place in the Netherlands, United Kingdom and Switzerland in the field of renewable energy, particularly against the backdrop of their emissions reduction obligations under the Kyoto Protocol of the United Nations Framework Convention on Climate Change. They are keen to explore investment opportunities in developing countries under the Clean Development Mechanism (CDM). During his visit, the Minister met with the Energy Ministers of the United Kingdom and Switzerland, and senior officials of the Government of the Netherlands.

In his Address at the Interaction Meet with senior officials of the Dutch Government, renewable energy experts and representatives of industry, organized by the Energy Research Centre of the Netherlands (ECN) on June 20th, 2002 at Amsterdam, the Minister outlined India’s achievements in the renewable energy sector and invited technology transfer and investments in view of the opportunities available in India, particularly under the Clean Development Mechanism (CDM). Both sides agreed to consider enhancing cooperation in several renewable energy areas, including village electrification. ECN and the Centre for Wind Energy Technology (C-WET) of the Ministry of Non-Conventional Energy sources agreed to undertake joint projects in wind energy development in India. In the meetings held at the Directorate General for Environmental Protection of the Dutch Ministry of Housing, Spatial Planning and the Environment, possibilities of Dutch investments under CDM, and the next steps for finalization of the six Indian projects selected under the recent CERUPT tender were discussed. Possibility of Dutch technical assistance in capacity building also emerged during the discussions.

In his meeting with Minister for Energy of the United Kingdom, Mr. Brian Wilson, on June 25th, 2002, Shri Kannappan invited British companies to take advantage of the investment opportunities in India, and evinced keen interest in learning more about the British experience and initiatives in promoting the use of renewable energy. Mr. Wilson briefed the delegation on the United Kingdom’s recent initiatives, including the legislation on "Renewable Energy Obligation". The two Ministers agreed to explore further possibilities of promoting investment, technology collaboration, joint ventures, etc. in several renewable energy areas, and also agreed that the two countries should remain in touch in the context of the forthcoming Johannesburg World Summit on Sustainable Development. The British Minister for Science and Innovation, Lord Sainsbury, also joined the meeting.

In U.K., the delegation also had meetings at the Department of Environment, Forests and Rural Affairs, and with officials of the Climate Change Project Office on issues related to the Kyoto Protocol, the British initiatives and possibilities of capacity building. Senior officials of the World Energy Council called on Shri Kannappan during his stay in London and sought to expand their activities with India’s assistance in the South Asian and other countries of the Region. The Managing Director of IT Power, UK also called on Mr. Kannappan. He informed the Minister about their interest in expanding operations in the renewable energy sector in India.

In the meeting with the Swiss Minister of Environment, Traffic, Energy and Communication, Mr. Moritz Leuenberger at Basel on June 27th, 2002, the two sides agreed to look into the possibilities of technical assistance and financing in several renewable energy sectors, including capacity building in the areas of sustainable energy policy and CDM projects. A Statement of Intent was signed by Indian Renewable Energy Development Agency (IREDA) and Basel Agency for Sustainable Energy (BASE) in the presence of the two Ministers, to define and implement a concrete programme of Indo-Swiss partnership for electrification of remote villages in India. Ambassador, Walter Fust, Director General of Swiss Development Corporation of the Government of Switzerland expressed keen interest in supporting renewable energy projects in India, including the new village electrification initiatives.

In his Keynote Address delivered at the Sun 21 International Energy Forum in Basel, Shri Kannappan gave a brief account of India’s achievements, and expressed the hope that a new Global Agenda with definite goals would emerge at the Johannesburg Summit. The major issues, which will need to be addressed, are sustainable economic growth, poverty alleviation and technology transfer. An Em Power Partnership Programme was launched at the Forum, promoted by an Indian NGO, DESIPOWER for village electrification in India through public-private-community partnership.

The Indian delegation also met with investors and business representatives from Switzerland and Germany, and made presentations on the business opportunities available for investments in India. There was keen interest in developing and promoting projects in India. An official function was hosted by the Minister of Energy of the Canton of Basel, Ms. Barbara Schneider, at the City Hall in Basel in honour of Shri Kannappan and the Indian delegation. She briefed the delegation about the progressive energy laws in Basel and their initiatives in sustainable energy. It was agreed to explore common areas and projects of interest for co-operation between the Canton and Indian institutions and industry.

During the 10-day visit, the Indian Renewable Energy Mission led by Shri Kannappan also visited key renewable energy industries and projects in the three countries. In the Netherlands, they visited the rotor blade design unit of an Indian wind turbine company and two grid-interactive building integrated solar photovoltaic projects, at a large flower auction centre and an exclusive solar city in Amersfoort. In the United Kingdom, they visited the European Technology Centre of BP Solar and a large advanced biomass gasification power plant of Alsthom. In Switzerland, the delegation visited two small hydropower projects near Basel. At the Expo 2002 in Neuchatel and Biel, renewable energy projects on electricity production from biogas, an auto rickshaw project being undertaken jointly with Indian Institute of Science, Bangalore, and a boat powered by solar photovoltaic, was visited.

The Renewable Energy Mission led by Shri Kannappan, the main focus of which was to invite technology collaboration and investments to India in the non-conventional energy sector, elicited favourable response, both from the respective Governments and business communities in the three countries visited by the delegation. This is expected to lead to enhanced bilateral cooperation, collaboration between institutions and industry, and increased investments from those countries in the renewable energy.