Rebuilding Chennai’s green cover

Last June, Chennai recorded a nine year high of 42 degree Celsius and most importantly this temperature was recorded at Nungambakkam, a well known residential area. This was just one highlight of a scorching summer that Chennai experienced last year. As we prepare to face yet another bout of solar excess, we have to address the increasing climate extremes and the need to have a robust strategy to revert to the green, comparatively colder summers. Surprise as it may be to many, Chennai was not always this hot and actually experienced monsoon, winters and even a good amount of sea breeze during the summers that made life much easier when the mercury rose. 

The connection between local climate patterns and forest cover has been very apparent and obvious but gets little attention due to the absence of a collective consciousness from the city. A study done by a group of scientists from US and Netherlands on Meso-scale climate change due to lowland deforestation in the maritime tropics summaries that sea breeze was considerably stronger in an island assumed to be completely covered with forest than when the vegetation has been transformed to grassland or worse, artificial constructions using concrete.

At Michelin, there is a strong sense of responsibility towards deforestation due to industrial development. The focus towards responsible growth and initiatives based on this focus results in careful audit of the environmental impact. At Thervoy, Kandigai, Michelin has started planting saplings at its industrial site. The saplings are planted inside the manufacturing facility as part of the groups ‘Green Factory’ concept. 1800 saplings have been planted inside the Industrial site till date. Also Michelin has pledged that the plant will not draw any water from the industrial zone’s water tables. Instead water will be taken from the Redhills reservoir, an artificial storage lake 20 kilometers from the site.

We understand the need to contribute to the Chennai’s green cover and more importantly the need to spread this awareness to other citizens. Only then, the collective consciousness can grow and along with it, Chennai’s natural umbrella against the tropical sun.

We have put simple things that you can do to add to the forest cover that can become a reality for the upcoming generation in Chennai. We welcome ideas and thoughts from you that can help this drive get stronger and look forward to seeing your emails at michelinindiaforum@gmail.com.

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Greenhouse Gas Protocol: a New Ally for New Opportunities?

India’s commitment to sustainable economy topics has become a central focus of industrial and political thought. The Greenhouse Gas Protocol (GHG Protocol) is an international accounting tool used by government and business leaders to detect, quantify and control greenhouse gas emissions. It results from the partnership between the World Resources Institute and the World Business Council for Sustainable Development, which brings together the world’s businesses, governments and environmental institutions to work on sustainable issues. The GHG protocol has made its way in India since the Energy Resources Institute partnered with the above-mentioned organizations to launch two new tools, the Product Life Cycle and Corporate Value Chain, to meet new GHG Protocol standards.

The launch took place in Delhi on March 15, 2012. India’s booming industrial and economic growth and its involvement in climate change has made greenhouse gas emissions an essential concern. Value chain management is a new practice that businesses and organizations must address. The two new standards should help companies save money, reduce risks and gain sizeable competitive advantages. The Carbon Disclosure Project 2011 India Report estimates that 57 companies submitted reports and that 89% reported their GHG emissions using GHG protocol standards. More than being committed to world climate issues, the standards allow Indian companies to recognize and target new market opportunities in the field of low carbon products. The Corporate Value Chain standard shows potential opportunities enabling sustainable decisions about production and products. The Product Life Cycle standard enables companies to measure the greenhouse gas emissions of an individual product.

However, implementing the standard means that companies have to incorporate climate and environmental concerns in their developmental strategies. The GHG Protocol represents a big step towards clean and sustainable development, but could put some severe strains on businesses that are not properly prepared to meet expectations. Requirements should not be too drastic, if environmental protection is to become a fundamental principle.

India Shining: Even the Sun Has a Price

Solar projects have grown in number over the past decade but could stall if India does not consider new areas of opportunity. Innovative financing mechanisms that would enable the market to expand are being widely discussed. Public-private partnerships could be the answer, based on the US model. Different tools are under consideration such as the Power Purchase Agreement (PPA) and the use of agency funding to finance solar programs.

The Power Purchase Agreement (PPA) for financing solar energy projects appeals to India. Through a PPA, a third-party investor assumes all financing, installation and maintenance costs, and the district or government agrees to buy the power back, at a fixed reduced rate. This international financing tool provides immediate cost-savings and environmental benefits, while third-party investors (mainly financial institutions) bear all any financial risks incurred by the system.

Agencies could provide another way of financing solar projects as they shave budget earmarked for the purchase of solar energy systems. The government owns the system, its energy production and all the environmental attributes, such as renewable solar energy credits and clean energy credits. If the agency has properly kept budgeted funding, purchasing a system could be a worthwhile option because of lower in-house transaction costs and lower overall costs to the taxpayer.

Such innovative financing mechanisms are of great interest for India that has some of the world’s highest solar resources. However, they involved the further deregulation of private investment. The resources could be obtained through public-private partnerships within and without India. Some companies are pushing India to remove its restrictions on solar technology imports. They are seen as threats cutting American and international businesses out of a promising market. Limiting access to high-quality solar equipment that is available outside India is likely to impede India's solar power production and prevent other investors from developing solar projects in India. India is at a crossroads: will it resolutely take the road to international innovative finance, or it will remain alone with its huge amount of solar resources.

Who knew that waste could be turned into gold?

Its 1.2 billion population and 6.5% GDP growth in 2011 are pushing India towards a drastic shift in its urban and industrial waste policy. The country is plagued with nearly 55 million of tons of municipal solid waste and 38 billion liters of sewage. Greater consumption and rising incomes in India are increasing pressure on the environment. The authorities will have to address waste to energy initiative. Waste to energy technologies can treat and process waste, turn it into renewable energy resources, clear the landfill and reduce greenhouse gas emissions. India’s potential for waste to energy initiatives is greater now that the Indian Government is promoting the technologies.

The Ministry of New and Renewable Energy (MNRE) admits that there is a potential of about 1,700MW from urban waste and 1,300MW from industrial waste. Waste to energy process recovers energy from a fraction of waste, thus clearing the way for the development of a new kind of renewable energy. The potential lies in the great amount of waste available in India and the incentive measures that should be implemented in this field. Waste to energy technology can use thermal conversion, thermo-chemical conversion, biochemical conversion, or electrochemical conversion. This potential combined with highly volatile fuel prices is enough reason for India to take a close look at the energy technology option. It should also be a profitable business as soon as the government provides incentives, such as capital subsidies and feed-in tariffs. Above all, waste to energy could be a key to further energy independence. Yet, according to MNRE, only 24MW have been exploited so far and less than 2% of total potential has been achieved.

Waste to energy technology is a nascent process, requiring several readjustments. One, the new technologies and their equipment have to be imported, putting a greater strain on general costs. State governments do not seem to have really considered this opportunity since no policy guidelines have emerged yet. Indian waste could turn into gold, as it could become one of the new alternatives to energy dependency and provide India with sustainable resources. The next step could be further cooperation with the waste management sector with a view to expanding to other Asian countries.

Solar Power, Still the Cheapest Source of Light for India’s Poorest, Even at Night

India’s power grid is solid, yet sadly still very unequally distributed. In regions such as Uttar Pradesh, for many, being connected to the grid remains wishful thinking. For years, the poorest have struggled with analog means of energy at night, generally relying on relatively expensive, poorly efficient and highly polluting kerosene-based heating and lighting. But now things are starting to change as a revolutionary new start-up is making its way through India, and starting with the country’s poorest.

Created by US-born entrepreneurs Nikhil Jaisanghani and Brian Shaad, Mera Gao Power provides extremely cheap lighting and mobile phone charging services to individual houses by installing solar-powered micro-grids in villages. By subscribing to the service for the initial cost of 40 rupees, each household receives two LED lights and a mobile-charging outlet. The service provides efficient energy per household for 25 rupees per week, a price that the vast majority of the poorest can afford. For most, it’s actually very much worth the investment, as it allows individuals to continue working after dark and largely makes up for the cost of the service.

The start-up has got off to a flying start, allowing parents to cook and work after dark and children to keep on studying. Hopefully, the product should soon translate into a measurable increase in standards of living in the rural communities of Uttar Pradesh. Not to mention that for once a product provides cheaper solution that is actually more ecologically sustainable than what it replaces. Mera Gao Power’s idea is changing lives and the environment, one village at a time. The founders have set a goal of reaching 100,000 households by 2016. We do hope they will.

Laying the Foundations for a Brighter Future: New Light on Indian solar industry

There’s no denying, India is developing at a breathtaking pace. New infrastructures are sprouting up every day, ever-growing numbers of cars are driving on ever-growing numbers of roads, houses are fitted with new appliances; yet, all this comes at the cost of a tremendous amount of energy. India is ready to rise to this challenge. However, if it wants to do so sustainably on a large scale, it cannot turn it back on the solar option. Thankfully, although much is still to be done, things seem to moving along in the right direction. A recently published Natural Resources Defense Council (NRDC) report entitled Laying the Foundation for a Bright Future provides an interesting outlook into the current state of solar energy in India. Indeed, there’s good reason to hope. For instance, Indian solar energy capacity went from 17.8 megawatts in 2010 to an impressive 506.9 megawatts in March 2012. That’s an astonishing advance over such a short time span and definite proof that there is interest in the solar market. However, the report also identifies three major hurdles on India’s road to solar sustainability. One is the technology gap between India and other countries. Two, albeit growing, the global industry is still very fragmented, mainly comprising numerous small-scale plants. Three, the industry is young and plagued by difficulties in obtaining raw materials, inverters and system components, slowing down growth in the sector and making self-sufficiency an issue for India. Obviously, there is still much to do and at many levels, ranging from component suppliers to solar energy producers, including distribution. But there’s a real interest in the burgeoning sector that materialized during the PV Manufacturing Summit on August 1and 2 in Delhi. On that occasion, key industry players met Tarun Kapoor, Joint Secretary of the Ministry of New and Renewable Energy, to discuss solar industry issues. This can be considered as a good starting point for addressing the conclusions of the NRDC report and fuel more energy into an already vibrant sector.

CLEANTECH’s economic promise for India

As one of the fastest-growing emerging markets, India needs innovative and technology-driven solutions to boost its growth. The stakes are high, but so are the potential rewards: energy supply, environmental sustainability and rural development. Indian businesses and government are looking for innovative clean-technology applications, while entrepreneurs from the EU, US and Asia-Pacific are willing to tap into India’s tremendous potential in the cleantech sector, with a focus on solar power. Considering the current challenges of the economy, invaluable opportunities are there for both sides - just waiting to be seized.

So far, Cleantech investments have focused on bringing existing technologies to the Indian markets, rather than on developing entirely new solutions. Innovations mainly consist in modifying and aggregating multiple technologies and creating unique business models adapted to the Indian context. Rural/decentralized power is gaining momentum in cleantech investment industries. With the drop of photovoltaic prices and the vast rural and suburban markets that are underserved by grid power, global entrepreneurs are showing great interest in distributed power generation.

Aside from the opportunities found in a captive market of nearly 100,000 villages across the country, investors would also benefit from an organized move. Early this year, the Indian government set up the Solar Energy Corporation of India (SECI) to oversee the National Solar Mission (NSM), tasked with delivering 20GW of installed solar capacity by 2020 at an estimated cost of USD 20 billion. A research and development program was launched in 2010 under the NSM umbrella, to clear the way for the creation of affordable solar-energy systems through international cooperation.

Foreign entrepreneurs, especially from the UK and US, are exploring India’s rural areas and testing the markets for solar applications. They can rely on local partners offering entirely new ways of selling solar-power products. Innovative marketing, employing local villagers, and innovative pricing, such as pay-as-you-use facilities, are being tested. Startups tapping off-grid energy solutions are burgeoning, while innovative technologies applicable to the waste-to-energy and water sectors are emerging, as are other areas of interest for international partnerships. The Cleantech journey has just begun, but holds great promise for India.

Biogas: Replacing oil with renewable reliable clean energy

It is now a well-accepted truth that the energy produced by human activity is costly for people and the environment. Trying to correct its impact by finding renewable resources and clean energies is the backbone of current efforts for sustainable development. Yet, until now, renewable energies have often been perceived as expensive alternatives to fossil fuels such as oil or coal, which have proved to be efficient and comparatively low-cost.

This week we would like to share with you a project that Michelin India has set up to provide affordable and efficient renewable energies solutions to Indian villages. The company has started a Biogas Initiative in several villages in Tamil Nadu. The goal is to provide close to a hundred families with a reliable, affordable and environmentally friendly source of energy. The key to the venture’s success is its reliance on Biogas. The term Biogas encompasses any mixture of flammable gases (i.e. methane, carbon dioxide) derived from the degradation of organic matter, which can be used to produce light or heat. Simply put, bacteria digests organic matter (such as animal or human waste), producing gaseous fuel that can be used for a range of applications.

The technology has a long list of advantages – not the least of which is reliability, making it a terrific solution in places with erratic oil supplies – but the beauty of the project is that it uses small ‘bioreactors’ to deliver Biogas energy to families. Fuelled with enough cow and human waste, the reactors (ranging from two to three cubic meters in size) can provide heating and light for the whole family. The first biogas reactor has already been installed in the village of Peria Vannan Kuppam and ninety more will be built for as many families in other nearby villages.

World’s first action oriented renewable energy meet

Green energies and sustainable development are bustling growth industries in India. However, as with any quickly developing economic sector, keeping track of the major actors, upcoming startups and thriving wellsprings of tomorrow’s breakthrough ideas can be hard. Thankfully, there are landmark events such as the Reaction meeting which recently took place at the Chennai Trade Centre.

The event took place on July 26th and 27th and is already hailed by many as one of this year’s highpoint for renewable energies. Reaction 2012 has been organized by Energy Alternatives India (EAI) whose knowledge of the Indian renewable energy industry and expertise in clean technology is widely acknowledged. Self-titled “The World’s First Action Oriented Renewable Energy Meet”. The event had been conceived with a large public in mind, targeting professionals, academics, entrepreneurs, corporate actors or financial investors.

Impressively, the event was structured in a way that could prove satisfying to all those different attendees. More than a hundred experts gave presentations and held discussions on a wide range of topics, from biomass, to solar and renewable energies, as well as seminars on regulatory and incentive frameworks. To the satisfaction of many a long list of new topics and emerging ideas were covered in a professional way, bringing a high level of quality and knowledge to the discussions. The event had scheduled tightly meshed talks and presentations with networking opportunities. At a time when efficient and reliable energy production is more relevant than ever renewable energies have a definite window of opportunity to blossom. And the Reaction meeting is definitely at the center of it all.