MONTHLY SECTOR UPDATEIssue| November 2020
POWER SECTOR Meeting UN’s Sustainable Development Goals
(SDGs)
1
2
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News and Announcements
Key Players updates
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“Electricity is an example of a general-
purpose technology, like the steam engine
before it. General purpose technologies drive
most economic growth, because they
unleash cascades of complementary
innovations.”
-Erik Brynjolfsson
Issue| November 2020
Meeting UN’s Sustainable Development Goals
(SDGs)
Source:
Opportunity2030: The Standard Chartered SDG Investment
Map
In September 2015, India adopted the 2030Agenda during the United Nations Summitwherein, Energy is closely connected with 74%of the 169 targets related to the 17 SustainableDevelopment Goals (SDGs) which the countrymust achieve by 2030. Post this, India submittedits Nationally Determined Contributions (NDCs)for the period 2021–2030 to the United NationsFramework Convention on Climate Change(UNFCCC) and ever since the Government ofIndia (GOI) has been strategizing ambitiouslyfor improving the installed capacity ofRenewable Energy sources when 75% of it's ourelectricity is currently generated by coal-firedpower plants.
Various frameworks have been laid down toensure a shift to RE generated electricity whilemeeting the electricity requirements andaspirations of 1.3 billion people across theIndian borders. Integrating all low-carbonenergy technologies with coal along withensuring reliability, security, and affordability ofelectric supply, while constantly balancing itwith sustainable development has been thepriority of the Central government. India is alsoformulating and implementing pioneeringschemes to clean up our dependence on thecoal sector while increasing the integration ofrenewable energy into the National PowerGrid.
According to the Standard Chartered SDGInvestment Map, in order to meet the UnitedNation's sustainable development goals(SDGs), India needs USD 2.64 trillion investment.Furthermore, the country needs to make USD2,633.9 billion investment by 2030. Out of thisexpected amount, USD 1,558.8 billion is forclean Energy, USD 505.5 billion for transportinfrastructure, USD 377.4 billion for digitalaccess, and USD 192.2 billion for clean waterand sanitation, as per the report.
The report states that "Of the total US$2.64trillion of investment needed, the potentialinvestment opportunity for the private sector isa whopping US$1.12 trillion with US$701.5 billion
going into clean energy, USD 226.5 billion fordigital access, USD 176.9 billion in transportinfrastructure, and USD 19.2 billion for cleanwater and sanitation." Thus, the opportunityfor private sector investors across allemerging markets to help India in achievingthe UN SDG goals stands clear, and this studyhas identified the specific areas for theprivate sector to contribute to and directlyimprove the lives of millions of Indians overthe next decades.
Climate change is sure to hit the mostvulnerable, the hardest and theIntergovernmental Panel on ClimateChange special report on the 1.5-degreegoal of the Paris Agreement has clearlyrevealed that if temperature limit isbreached, India will face the brunt of theclimate crisis. The current circumstancesmake it all the more inevitable for privateand public entities to responsibly take up theagenda of clean energy and driveinnovations to enable India in achieving theUN SGD goals.
Prime Minister Narendra Modi has alreadygiven the call for connecting solar energysupply across Indian borders, putting forththe mantra of 'One World One Sun OneGrid'. Under the OSOWOG program, Indiaenvisions an interconnected powertransmission grid across the country for thesupply of clean energy. Through leaps likethese and with nationwide schemes tofacilitate the shift to clean energy, thegovernment has shown its keen interest inensuring modern and sustainable energy forall. India has made enormous progress onrenewable energy, low-carbon alternatives,and increased energy efficiency, and it isnow time to make use of the potential in thisarea that remains unrealized.
Nilaya VarmaCo-Founder & CEOPrimus Partners
Issue| November 2020
News & Announcements
1. Power consumption in India registered agrowth of 5.6 percent in September at 113.54billion units (BU) after six-month gap sinceMarch this year, as per an official statement bythe Ministry of Power, Government of India.
2. NITI Aayog, Ministry of New & RenewableEnergy (MNRE), and Invest India organized aglobal symposium ‘India PV Edge 2020’ onOctober 6, 2020. It was a one of its kind platformfor global cutting-edge technology providers,equipment makers, and PV champions topresent their technologies to the Indianstakeholders who are drawing up their PVmanufacturing plans and collaborate, in orderto boost the ‘Make in India’ campaign. Theparticipating companies also had theopportunity to hear from the Indianpolicymakers involved in developingmanufacturing schemes. Around 60 prominentIndian and global CEOs attended the event.India’s most prominent policy makershighlighted India’s strong motivation onrenewable energy, the investment climate andthe country’s ambition and opportunities insolar manufacturing. The symposium discussedthe 2008–09 financial crisis after which greenmeasures accounted for 16% of the totalstimulus measures and concluded that in orderto recover from the COVID-19-inflicted impacton the global economy and to battle theimpending hazard of global warming, allparticipating governments must be ambitiousand decisive towards clean investments in theenergy sector. International cooperation andleveraging strengths are crucial in these timeswas emphasized on.
As part of an important announcement by theUnion Power Minister, it was declared in thesymposium that Future power bids will includebids for advanced technology.
3. The Union Power Ministry has proposed tobring new rules to allow quick compensation topower plants for additional costs arising fromchange in legal events or modifications inconsents or licenses associated with various
projects. The move is aimed at avoiding longdrawn regulatory procedures for incontestablecases, adding to stress in the already troubledsector. It also aims to cut down frivolouslitigations besides multiple cases over similarclaims to enable regulatory commissions focuson genuine disputes. The rules also propose thatrenewable power plants, if served curtailmentnotices by Discoms 24 hours in advance, shallmandatorily sell that unscheduled electricity inpower exchanges.
4. Power Finance Corporation Ltd and JammuKashmir Power Corporation Ltd (JKPCL) havesigned and exchanged an agreement forLiquidity Infusion Scheme under “AatmanirbharBharat Abhiyaan” for the Jammu and KashmirUnion Territory to use the money sanctionedunder this scheme to clear the outstandingdues of CPSU, GENCOs & TRANSCOs, IPPs andRE Generators and to help gencos to remainafloat.
5. The Third Assembly of the International SolarAlliance held on 14th October 2020 wasattended by 34 ISA Members ministers. 53Member countries and 5 Signatories andProspective Member countries participated tothe Assembly in all. India and France were re-elected as the President and Co- President ofthe International Solar Alliance (ISA) for a termof two years, along with four new Vice-Presidents to represent the four regions of ISA.The representatives of Fiji & Nauru for AsiaPacific Region; Mauritius & Niger for AfricaRegion; UK & Netherlands for Europe and othersRegion, and Cuba and Guyana for LatinAmerica and Caribbean Region assumed thevice presidency.
Source:Press Information Bureau, Government of India
Issue| November 2020
Key Players Updates
Source:
Energyworld.com,
from The Economic Times
• The Public Investment Board (PIB) hasrecommended that the 850-MW Ratle
hydroelectric power project bedeveloped through a joint venture
company of the JK PowerDevelopment Corporation and the
National Hydroelectric PowerCorporation. The PIB has also
recommended an investmentapproval for INR 5,281.94 crore for the
project, including an infusion of equityof INR 808.14 crore by NHPC in the
JVC, the spokesperson said. The equitycontribution of JKPDC in the company
pegged at INR 776.44 crore will beprovided as grant from the Centre.
• The Energy and Resources Institute
(TERI) has launched an online ratingtool, ‘the Portal for Renewable Energy
Action Assessment Metrics(PRAMAAN)’, for organizations to
assess their actions towards renewablepower. The portal offers a set of
indicators for an organization to assessits progress in moving towards a low-
carbon future and can be used as aframework to prioritize electricity
options, assess risks, identifyopportunities, set targets and develop
a sustainable energy roadmap.
• A major fire, which broke out at thecoal dump yard of National Thermal
Power Corporation (NTPC) in PakriBarwaidh mining site. NTPC authorities
said that about 5.5 lakh metric tonneof coal is kept the dump yard but they
are unable to transport them becauseof protests by landowners (raiyyats)
led by Barkagaon MLA Amba Prasadin the area. The protestors are
demanding increased compensationand compliance of other norms for
the land acquired by NTPC for thePakri Barwaidh coal mining project.
• Global investment firm KKR has todaylaunched a newly-created platform to
acquire renewable energy assets in India.Headquartered in Mumbai, called
Virescent Infrastructure with an aim toexpand its portfolio of operational
renewable energy assets, enabled byinvestments predominantly made through
KKR’s infrastructure fund. Virescent is all setto identify investment opportunities that
have stable cash flows stemming fromlong-term contracts with state
governments and central governmentacross India.
• The Board of Directors of NHPC have
approved the proposal to merge LancoTeesta Hydro Power Ltd with it), under
Section 232 of the Companies Act, 2013subject to approval of Government of
India. Lanco Teesta Hydro Power is asubsidiary of NHPC that had won the bid
to take over the 500 MW Teesta VI hydropower project under the corporate
insolvency resolution process (CIRP).
• National Thermal Power CorporationLimited (NTPC Ltd) is collaborating with
cement manufacturers across India tosupply fly ash to achieve 100 per cent
utilization of the by-product producedduring power generation. NTPC is using
the Indian Railway network to transport flyash in an economical and environment-
friendly manner. NTPC Rihand (UttarPradesh) is the first power plant to send
conditioned fly ash to cementmanufacturers.
• The Andhra Pradesh state government
has decided to set up Pumped HydroStorage Power Projects (PSP) to promote
new renewable energy power plants tobalance fluctuations in total input power
from the existing renewable energy plants.These PSP projects will act as largescale
energy storage stations.
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Primus Partners has been set up to partner with clients in ‘navigating’ India, by experts with decades of
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DisclaimerThe report is prepared using information of a general nature and is not intended to address the circumstances of any
particular individual or entity. The report has been prepared from various public sources and the information received
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Nilaya Varma
Co-Founder & CEO
Pooja Ahluwalia
Vice President, Head of
Research
Suvi Jain
Consultant, Public
Policy
Abinash Chaudhary
Vice President, Lead –
Public Policy Realization