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Thursday 8 September 2011

The Threads of Hope in Energy

Many, of certain vintage, would remember Winds of Change that Klaus Meine sang in 1990. The context was fall of Berlin wall, the end of communism and the subsequent integration of East Germany with its West brethren. Two decades after, the underlying spirit of the song, of the German heavy metal band Scorpions’ vocalist, finds relevance in energy sector in India. The mental blocks are dissolving; from it rising, the green shoots.

The doctrine of sustainable development is making sense to many of the captains of industry. The deployment of renewable energy is more than altruism; it is profitable too. For, the truth has dawned that the conventional energy solutions has almost run out of steam. Changing tack has become necessary—well, for the reason that businesses exist, to ensure long-term profitability.

Living symbiotically with nature, consequently, is gaining credence. The choice for green energy is growing.  Many of them feel that the investment in renewable energy such as solar and wind should increase quickly. The government’s role, according to the industry, is to create a policy framework that ensures solar photovoltaic cells and solar thermal cells become the norm. “The only sustainable path to staying in black is, in fact, to go green,” remarked Mukul Saxena, Head, corporate research and technologies, Siemens India, sometime back in a conclave organised by Mint.  

Hard facts too point a similar wave. The wind energy sector has attracted foreign direct investment of Rs 1,510 crore over the past three years. “In the renewable energy sector, wind energy has emerged the fastest growing category,” the Minister of New & Renewable Energy, Dr Farooq Abdullah, informed the Lok Sabha a week ago. The mantra of maximisation of profit has taken a new course. 

The twin currents that would drive the shift towards green energy are investment and innovation. There would be collaboration between large and small companies. “Large companies that will lead some innovation will have to collaborate with smaller ones to develop that kind of technology,” opines Venkatesh Valluri, chairman and president, Ingersoll Rand (India).

How do we spread new technology in renewable energy quickly to reach a critical mass? The option, interestingly, could be either top-down or bottom-up. “The husk power generation in Bihar is a business innovation. For big companies, it is not so much about changing the source of power but rather conserving the power they use. It is different for each section. If you reduce air conditioning in your office by one degree, it may reduce power consumption by 10-12 percent,” explains Girish Paranjpe, Managing Director, Bloom Energy.

For long, India’s policy makers couldn’t estimate India’s natural advantages.  For them, it was like the proverbial space beneath an oil lamp. “We have nine months of sunshine, while Germany, with six months of sunshine, is the solar technology leader,” analyses Niranjan Khatri, general manager, WelcomEnviron Initiatives, ITC WelcomGroup. The perception is changing. The intent to go green is now perceived as a business opportunity. The idea is catching up. One initiative is influencing the birth of the other.  A case in point is IBM smartgrid.

Raghunandan KS, Director, Integrated Technology Services, IBM India and South Asia, explains IBM smart grid, “It is a part of IBM smarter planet project. For sustainable cities, it will encompass multiple technologies starting from water management, power optimisation to having sustainable use of technology. There are stages to adoption.

The first stage is compliance to certain government norms. The second is social consciousness, a citizen phase. The third is the innovation phase, where you look at not just doing the right things but also look for financial opportunities—a business development opportunity in helping other companies and the society to become greener, while also making our own business greener.” 

The evolution of thought is evident in business model. The leading green companies wish to steer away from government largesse. “Just as subsidy is not a good idea, tax is also not a good idea. Green initiatives have an economic rationale by themselves,” asserts Raghunandan.

The private enterprises, interestingly, are catalysing the public policy in India’s energy landscape. The winds of change are real.

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