Powering ahead in solar sustainability: India’s response

Solar energy is one of the proposed solutions for fighting climate change and liberating the world from fossil fuels. It has captured the collective imagination of many countries as the photovoltaic panels look shiny, clean, futuristic and green. According to the 2017 Global Risks Report of the World Economic Forum, climate change is ranked as one of the top 3 trends that will shape global developments over the next 10 years. It is among the highest existential risks in terms of likelihood and impact.
 
The Jawaharlal Nehru National Solar Mission (JNNSM) aims to install 100 GW of grid-connected PV systems by 2022 (Government of India, 2011), a five-time increase and over 30 times more solar than the current installations. The ambitious targets in India are supported by strong government action in support of the Paris Agreement’s focus on clean energy expansion. To this end, the government also intends to bring solar power to every home by 2019. It has invested in 25 solar parks, that can potentially increase India’s total installed solar capacity by almost tenfold.
 
Since 2012, India has installed over 1 GW of PV, annually achieving a cumulative capacity of almost 5 GW in 2015 (IRENA, 2016b). Today, India is amongst the top ten PV markets in the world (IEA-PVPS, 2014b) but the Indian power sector faces two main challenges. One, the need to alleviate energy poverty as more than one-third of the population lacks electricity access. Two, increased electricity demand (5-6 times by 2050) arising from rapid economic growth. Large-scale PV deployment has taken place only recently so major end-of-life PV waste volumes in India may not be expected until after 2030. This waste could average 50,000-320,000 tonnes by 2030, possibly culminating in 4.4-7.5 million tonnes by 2050. Currently, India has no specific PV-related waste regulations.
 
NTPC occupies the premier position in the Indian energy sector in terms of size and efficiency vis-à-vis setting up power projects and generating electricity. It aims to help generate reliable power and related solutions at competitive prices, using locally available sources, in a sustainable manner, with efficient and innovative eco-friendly technologies and multiple energy sources. With an increasing presence in the power value chain, NTPC is well on its way to becoming a major power in India’s sustainable and responsible growth story.
 
Any form of energy production has a flip side and solar energy is no exception. Its impact may not be anywhere near coal-fired power plants, but photovoltaic modules and solar cells are manufactured using a concoction of toxic chemicals i.e. arsenic, cadmium telluride, hexafluoroethane, lead and polyvinyl fluoride. These do not pose much of a threat during a solar panel’s working life, but the problem occurs at the beginning and end of a solar panel’s life. The toxins are released during the manufacturing process and when they hit the scrap decades later, workers are put at risk.
 
According to a Silicon Valley Toxics Report, “the solar PV industry has the potential to provide enormous environmental benefits, but the toxic materials contained in solar panels will present a serious danger to public health and the environment if they are not disposed of properly when they reach the end of their useful lives. The solar industry involves a lot of toxic chemicals and we have to look at the lifecycle of these materials, from mining to manufacturing.”
 
Standard back sheets usually contain polyvinyl fluoride, lead, chromium, cadmium, selenium, arsenic, and antimony. The dominant fluoro-based outer layers are driven by the Chinese market. Unfortunately, many producers have successfully advocated for their inclusion in the technical requirements for state-issued PV projects. Similarly, in India, there is a perception that durability of solar panels is compromised without fluor. This hampers the use of proven alternatives that may offer better performance and durability at competitive prices while lowering carbon footprints and improving recyclable production waste.
 
The sustainable growth of photovoltaics can play an increasing role in the decarbonisation of the power mix. Companies must phase out this class of toxic chemicals as the choices made today will have consequences for material needs and the end-of-life treatment in the future. Companies must play a key role in endorsing sustainability and responsible business. They must drive sustainability in selected areas across operations and product portfolios, while engaging in targeted advocacy to enable both.
 
Clean and green sources of electricity are a product of renewable energy technologies. With their abundant supply, they form the backbone for India’s energy security and energy independence as envisaged by 2020. Renewable energy forms the foundation of India’s emissions reduction strategy. Today, India must aim to lead the global response to climate change via decisive action and clean energy development.
 
 
Aditi Rukhaiyar
November 28, 2018

 
 

source https://indiaoutbound.org/powering-ahead-in-solar-sustainability-indias-response/

Communication *must* be specifically designed to suit particular contexts or characteristics of target groups, encourage participation of individuals and the community. https://t.co/zluw36qNOC

Communication *must* be specifically designed to suit particular contexts or characteristics of target groups, encourage participation of individuals and the community.https://t.co/zluw36qNOC

— India Outbound (@india_outbound) November 28, 2018

from Twitter : https://twitter.com/india_outbound

UK – India: Real Strategic Shift in Relationship needed

The weather may have been cold,but during Prime Minister Modi’s visit to the UK in 2015, there was clear warmth between the then British Prime Minister David Cameron and his guest; yet, in the last visit, when the weather was definitely warmer in April this year, the chill in the relationship was clear to even the casual observer.
 
Terse exchanges on Britain becoming the safe haven for Indians who have been accused of swindling the tax payers in their own country to India’s refusal to sign the MoU on ‘repatriation of illegal immigrants, the situation couldn’t have been more starkly different from the Cameron – Modi bonhomie and the slogan “Two Great Countries – One Common Future.”
 
Trade & Cooperation Still Continues….
 
Not with standing the confusion and frost in the inter-governmental relationship, the private sector and the people to people engagement across various sectors, enabled often by what PM Modi calls the “living bridge” – the British Indians alongside governmental initiatives, have ensured that cooperation continued with cross-border investments and trade between the two countries, across a range of sectors including new ones in life sciences and infrastructure among others.
 
There was 15% increase in bi-lateral trade in 2017 reaching 18 billion pounds,after a few years of falling numbers. The private sector confidence in each other’s markets continues to grow and today UK businesses employ over 800,000 Indians, while 800 Indian businesses in the UK employ over 100,000 people. London city has established itself as the premier place for India to raise capital to meets its trillion-dollar requirement to transform infrastructure; and masala bonds have raised over $4 billion so far.
 
Although much of the progress have been driven by the private sector, the governments in both countries have invested in collaborative programmes such as the Access India Programme, Urban gateway or the innovative £50 million Newton Bhabha Fund co-created by the UK and Indian governments is stimulating UK and Indian scientific research into tackling the challenges that deter India’s socio-economic development. The UK’s proactive support in helping India improve its rankings on Ease of Doing Business has been widely recognised and acknowledged from the highest levels of the Indian Government.
 
Despite all these progress, one cannot help but think the relationship is increasingly seeming to be siloed and “transactional” rather than a comprehensive win – win strategic dialogue. Because we can do so much more!!
 
Why is the Partnership vital?
 
The United Kingdom and India can truly be partners in helping each other achieve their mutual aspirations and together be a force for good in tackling climate change, alleviating poverty, empowering people around the globe, especially the commonwealth, through access to technology, education and healthcare – a partnership Prime Minister Modi himself has anointed an “unbeatable combination.”
 
This is not altruism – instead,this partnership is “realpolitik”; and it strategically benefits both, UK and India.
 
Prime Minister Modi’s vision of a transformed and New India with focused campaigns on “Digital India”, “Make in India”, “Smart Cities Mission”,“Startup India”, “Skill India” and efforts to bring the country’s infrastructure to 21st century standards, fits well with UK’s expertise and skills set, including the ability to help India raise capital from London. These partnerships have already been proven to be fruitful and mutually beneficial.
 
Beyond the obvious transactional nature of these partnerships around specific areas, this opportunity presents the Commonwealth as a potential growth market and an influential international alliance that can counter Chinese expansionism and hard power; while delivering growth and prosperity for the millions at home and abroad.
 
Sadly, flawed perceptions and misplaced expectations exacerbated by lack of diplomatic sensitivities have created a situation where the full potential of the relationship is not even really being discussed, let alone being realized. The challenges and issues around the visa regime and labour mobility are not insurmountable and flexibility on both sides along with mutual respect and trust could resolve this impasse.
 
This is indeed a failure of both governments and also that of the British Indian community, especially those self-appointed “community leaders” of Lutyens London.

 
Shamit Ghosh
November 27, 2018
 

source https://indiaoutbound.org/uk-india-real-strategic-shift-in-relationship-needed/

India’s Solar Power Revolution

India’s solar power revolution started with the launch of the National Solar Mission in 2010 that targeted adding 20 GW by 2022. The objective of containing global warming, as reflected in the Paris Agreement, requires India to be a global leader of renewable energy, as the third largest emitter of CO2. India was one of the first countries to have a dedicated ministry for renewable energy. In 2014, even before the Paris climate agreement, the government increased the solar energy capacity target by almost five times to 100 gigawatt (GW) by 2022.
 
With its current momentum and an enabling policy environment, India is strategically positioned to achieve its solar-related goals. The International Solar Alliance is an ambitious solar diplomacy project that brings together around 121 solar energy-rich countries with the agenda of ensuring affordable, reliable and sustainable energy. These countries intend to collaborate on increasing the use of solar energy and mobilize $1 trillion in investments by 2030.
 
In the past two years, India has increased the overall share of renewables in its energy mix and is committed to raise this installed capacity from 18% to 40% by 2030. India’s commitment to solar power as a sustainable source of energy reflects innovative solutions and energy efficiency initiatives to supply 24*7 electricity to people by 2030. Given its solar belt, India is at the forefront of the transformation of world energy markets towards profitable renewable energy sources. It has sought creative solutions in hosting solar panels by installing rooftop solar panels and floating solar platforms.
 
Solar is suited to addressing the issues of cost, access, air quality and security in the energy sector and has the potential for economic and environmental transformation. The progress of renewable energy in India is driven by governmental support, targets and economics rather than a consumer push towards being green and curbing the long-term impact of a largely invisible climate change. Stakeholders have been gearing to address this challenge through increased awareness and improved solutions.
 
Today, the available solar systems can easily solve basic energy needs to a large extent, especially in rural areas, but there is a lack of awareness about India’s solar potential coupled with high capital costs. The main challenge of unpredictability and intermittency can be solved via improvements in storage technology. India’s current system of kerosene subsidies impacts the distribution of off-grid solar lighting solutions. The purchase of solar appliances, unlike kerosene, is not spread over time and hence, poor households face affordability issues. Thus, off-grid solar penetration must be enhanced by transitioning from kerosene to solar lighting.
 
Solar energy installations have been present in India for over two decades but earlier, technical innovation was not focused upon. However, this is changing as researchers across institutions are developing ways of improving efficiencies and finding new solar applications. Solar technologies like anti-soiling coatings and backsheets for PV solar glass can help optimize production in solar farms by maximizing returns in terms of longer optimum performance, more energy output, cost-effective maintenance of solar farms and recycling processes.
 
Today, India is amongst the top three PV markets in the world. Large-scale PV deployment has taken place only recently so major end-of-life PV waste volumes in India may not be expected until after 2030. However, sustainable growth of photovoltaics can play an increasing role in the decarbonization of the power mix. These must remain green in both the production and end-of-life management stage.
 
The development of renewable energy solutions and durable product innovations demand strategic collaborations that promote clean technologies and responsible production and consumption, based on reducing adverse environmental impacts by eliminating toxic materials. Technology can play a critical role in achieving future renewable energy balance.As the future of renewable energy, the solar sector must be made environmentally and financially viable in the long run. The underlying rationale must be to make solar energy clean. Thus, issues related to recycling processes in solar need to be urgently addressed via a strong policy-based approach in order to avoid harmful future implications.
 
With a projected capacity addition of 8.8 GW (5% of global solar capacity), India emerged as the world’s third biggest solar market in 2017, after China and the US.With falling prices and increasing efficiencies of solar panels, solar power can become more attractive than competing power sources. Thus, there is a need to efficiently and cost effectively convert this capacity efficiently into robust energy supply.Otherwise, the uncertainties in the renewable space could prompt India to rethink its energy mix and climate action commitments rather than shape the global response to climate change.
 
Aditi Rukhaiyar
November 26, 2018
 

source https://indiaoutbound.org/indias-solar-power-revolution/

Hidden hunger: an invisible menace in India

Hidden hunger is caused by micronutrient deficiency i.e. the lack of minerals and vitamins that are essential in small amounts, for adequate growth and development of the human body. Thus, hidden hunger is a form of malnutrition wherein their intake or absorption is not enough to sustain overall good health. Micronutrient deficiency can lead to low immunity levels, hampered motor and cognitive development, stunted growth or even increased morbidity and mortality. However, unlike under-nutrition, its signs and effects are usually “invisible” and hence, are often ignored or remain unnoticed. Clinical signs include night blindness caused by Vitamin A deficiency, goiter due to inadequate intake of iodine etc. Certain micronutrient deficiencies lead to development disorders and are interlinked in complex ways.

The burden of hidden hunger in India is reflected in the persistently high levels of anemia prevalent especially amongst women and children, despite the presence of a massive iron and folic acid supplementation program running since 2012. Often, the micronutrient needs of people remain unmet due to poor diets, disease or lack of adequate nutrition during pregnancy and lactation (FAO 2013). Moreover, the malnutrition problem in India reflects a unique development paradox i.e. rapid economic growth alongside decelerating decline in under-nutrition. Inherent discrepancies exist between the recommended daily allowance of a specific vitamin and the personal requirements of individuals.

The transition from traditional diets to highly processed and energy-dense ones that are high on calories but low on micronutrient content or those centered around staple crops like wheat, rice and maize, is a major contributor to the problem of hidden hunger in India. In rural areas, diets complete with different types of pulses, millets, oilseeds and seasonal vegetables are being replaced by the subsidized wheat and rice supplied by the Public Distribution system or the mid-day meal scheme. This transition contributes to the triple burden of malnutrition in India i.e. under-nutrition, micronutrient deficiency and over-nutrition (obesity). The consumption of locally produced and diverse foods, including nutrient-rich vegetables and foods, are key to curbing hidden hunger.

Poverty or budget constraints limit access to dietary diversity. A rise in food prices entails consumers to focus on affordable staple foods while cutting down the consumption of non-staple foods that are rich in micronutrients. Diversification of diets entails the inclusion of food items that belong to different food groups as all the micronutrient requirements cannot be fulfilled from a couple of food groups. This implies the regular intake of different types and varieties of foods in adequate quantities. Food fortification is a cost-effective approach to address the issue of micronutrient deficiencies, beyond the relatively narrow solution of providing vitamin supplements. This implies enriching food items to boost their micronutrient content and nutritional value.

The nutritional challenge of hidden hunger calls for urgent and sustained action, both, at the policy and ground level, especially amongst the most vulnerable sections of the population that are trapped in an intergenerational cycle of nutrition deprivation. This entails comprehensive and cross-sectoral action by multiple stakeholders like the government, private sector, NGOs and international organizations. This will ensure faster, inclusive and sustainable growth of healthy and productive citizens.

India Outbound
November 23, 2018

source https://indiaoutbound.org/hidden-hunger-an-invisible-menace-in-india/

Nutritional significance of the first 1000 days

The human brain develops throughout a person’s life but exhibits maximum plasticity and growth in the 1000 days spanning the period between conception and the first two years of the child’s post-natal life. This period provides a unique window of opportunity to lay strong foundations of neurodevelopment, growth and health. Inadequate or lack of nutrition during this time can cause long-term damage to cognitive and development functions as well as nutritional deficiencies that are irreversible. In addition, any later-stage investments in nutrition and health are heavily undermined vis-à-vis the realization of the child’s development potential.
 
According to a policy brief by WHO, childhood stunting, an irreversible outcome of inadequate nutrition and repeated bouts of infection during the first 1000 days, is one of the most significant impediments to human development. Projections indicate that the continuation of current trends will lead to 127 million children under 5 being stunted by 2025. Stunting is inextricably linked with other nutrition targets i.e. anemia in women, low birth weight, obesity, exclusive breastfeeding and wasting. Stunting can also economically drain a country by reducing its GDP by up to 3%.
 
For a country like India, harnessing the long-term dividends from its young demographic is a significant challenge. One of the preconditions for sustainable development is the existence of a well-nourished and healthy population and consequently, the success of government flagship programmes like Make in India, Skill India and Digital India is tied to the availability of a healthy workforce. Therefore, lack of investments in early childhood development can prove to be a policy blunder.
 
Malnutrition is 100% preventable and evidence-based interventions that specifically target the first 1000 days are not only cost-effective and affordable, but can alleviate severe socio-economic and health consequences, while yielding massive long-term returns. These must focus on prevention by ensuring that pregnant and lactating mothers are adequately nourished. Exclusive breastfeeding practices in the first six months followed by optimal and complementary feeding until 23 months is crucial. This continued breastfeeding ensures the intake of crucial nutrients that may be lacking in complementary diets, especially in resource-poor settings.
 
Provision of balanced and diversified diets with adequate nutrient content(folic acid, iron, polyunsaturated fatty acids, colostrum etc.) can ensure stronger physical and mental development of children so that they become productive adults with healthy eating habits. From the health perspective, these children are ten times more likely to overcome life-threatening childhood diseases. Thus, it is critical that pregnant women and infants are provided with appropriate nutrients as both under-nutrition and over-nutrition can cause health risks for them.If stunted children rapidly gain weight after 2 years, they increasingly risk become overweight or obese later in life, leading to further risks of lifestyle diseases like coronary issues, hypertension, diabetes.
 
Adequate availability of nutrition-rich foods and diets need to be supported by nutrition-sensitive interventions. These include household practices like hand-washing with soap to prevent infections, behaviour change to adopt the best sanitation and hygiene practices and availability of safe water supply.
 
Unless, government interventions and public-private collaborations do not converge their efforts to effectively target the first 1000 days, the invisible, pernicious and intergenerational cycle of maternal and child malnutrition will continue to pose a critical public health concern, embodying severe challenges and consequences.
 
Aditi Rukhaiyar
November 22, 2018

source https://indiaoutbound.org/nutritional-significance-of-the-first-1000-days/

Broadening the scope of the ICDS programme to combat nutrition

The Integrated Child Development Services (ICDS) is the world’s largest food security project and a unique outreach programme, aimed at meeting the nutritional, pre-school education and primary healthcare needs of children under the age of six and those of pregnant/lactating mothers from the most vulnerable sections of society. Designed to combat the multi-dimensional causes and complex inter-generational nature of malnutrition, ICDS has the potential to have long-term impact on human development and economic growth. Gaps between its policy intentions and actual implementation must be addressed by dealing with underlying fiscal and institutional implications.
 
Under the ICDS scheme, supplementary nutrition is provided to bridge the gap between the Average Daily Intake (ADI) and the Recommended Dietary Allowance (RDA). Challenges in implementation range from the type of services actually being delivered, characteristics of the beneficiaries being served and geographical areas being targeted. Clear criteria need to be set for quality assurance and supplementary feeding activities must be designed better for effective targeting.In addition, there must be some standardization of the nutritional component, prioritization of educational outreach and investment in anganwadi centers.
 
The challenge of providing aspirational, affordable and available nutrient-rich diets reflects a significant potential forincentivizing production of nutritionally rich food and supplements across the value chain. Particular region-specific diets lack some micro-nutrients that can be supplied to augment (not substitute) hot-cooked meals. Fresh, balanced and culturally-appropriate food can be supplemented with packaged mixes. Fortification of staples like flour, rice, wheat and edible oils is a cost-effective solution for the enhancement of nutrient intake. This will entail some changes in ICDS guidelines to promote the use of fortified inputs in the hot-cooked meals.ICDS must prioritize decentralized and locally produced food made by self-help and women’s groups, thus providing fresh food to children and other potential positive spin-offs like employment for women or spurring the local food economy. Thus, even if packed readymade food is not included, the corporate sector can play a role in helping the government provide nutrient-rich food.
 
The private sector can play a critical role in filling delivery gaps using a targeted and evidence-based approach. Public-private partnerships or private sector engagements can help scale up food fortification initiatives andleverage technological solutions by complementing government outreach efforts through mass education and awareness campaigns within communities. The underlying rationale is that multi-lateral stakeholder participation within the corporate and civil society is required to curb institutional and market limitations and effectively cater to the needs of the marginalized communities. Limitations in last-mile delivery are compounded by scarcity in channels that mandate communication of simple yet timely and important information regarding nutrition to pregnant and lactating mothers.
 
Anganwadi centers comprise an important pillar of engagement and accountability within the ICDS program. These can truly become game-changers in broadening the scope of the ICDS. Food distribution plays a crucial role in attracting women and children to anganwadi centers whereinbeneficiaries also receive other important services like ante-natal care, growth monitoring, nutrition counselling etc. The mobilization of anganwadi centerscan be enhanced with increased community involvement and improvement in the quality of service delivery.Long-term success of policy implementation and targeting requires a paradigm shift in stakeholder engagement in order to complement India’s economic achievements with social welfare gains.
 
Aditi Rukhaiyar
November 21, 2018

source https://indiaoutbound.org/broadening-the-scope-of-the-icds-programme-to-combat-nutrition/

Nutrition education: Key to effective implementation of campaigns

Amul milk ads evoke nostalgic childhood memories of the 90s. They effectively captured myriad messages i.e. the importance of consuming milk and milk products, women’s empowerment and dairy farming as a self-sustaining industry. In 2015, Ching Secret’s “India Ke Hunger Ki Bajao!”, in partnership with the NGO Akshaya Patra and actor Ranveer Singh as brand ambassador, spread the message that “it takes only INR 750 to feed a child for a whole year.” The campaign’s website served as an information and donation hub, giving actionable voice to the cause encapsulated in its tagline. Such focused media campaigns reflect the importance of nutrition education.

According to the Journal of Nutrition education and Behaviour, “nutrition education” broadly refers to “any combination of educational strategies, accompanied by environmental supports, designed to facilitate voluntary adoption of food choices and other food- and nutrition-related behaviors conducive to health and well-being”. Key to building food security and fostering sustainable development, it is “delivered through multiple venues and involves activities at the individual, community, and policy levels” (Isobel Contento, 2011). It extends beyond “education” as merely an information-providing process to include communication strategies (motivational campaigns), provision of skills (facilitating people’s ability to take action), and providing enabling environments (supporting/reinforcing actions).
 
Nutrition education activities constantly influence public policies, increase knowledge of myriad nutritious foods and nutrient values, influence behaviors, attitudes and beliefs as well as develop motivation to adopt healthy eating practices. Community-based tools like radio, theatre and street plays are commonly used to help build people’s confidence and ability to discriminate between credible nutrition information and deceptive/misleading commercial food advertisements. In the long run, these measures help shift perceptions of relevant stakeholders, especially among vulnerable groups.

Availability and affordability shape people’s choices regardless of prevalent nutrition-sensitive food systems. This influences nutritional statuses and the nature of sustainable production. In this context, education and awareness importantly empower people/consumers to seek, select and demand better nutritional outcomes, while claiming their rights. People can then accept responsibilities to improve their nutrient intake via informed choices.

Often, there are multiple impediments to the implementation of nutrition-related initiatives on each level despite political will and proactive commitment towards the goal of achieving zero hunger. These include political chaos, delayed decision-making and lack of departmental leadership. Centrality must be accorded to education and targeted awareness-raising interventions. It is also essential to ensure the availability of a committed and well-equipped and knowledgeable workforce at all levels, to garner widespread community-level support and build public opinion.

Overall, awareness campaigns should target everyone, not just those affected by food insecurity. These must present new ideas or information in a concise, compelling and inspiring manner, to avoid saturation. Usually, “Change Leaders” embody the intended change and become drivers within the community. “Early Adopters” cognitively embrace the change, but usually need guidance for implementation. Gradually, “Followers” adopt the change, following interventions and reiterative reinforcements through Behaviour Change Communication (BCC) by the Change Leaders. The “Laggards” need the most work in terms of convincing.

Inaccurate attitudes, practices and beliefs alongside certain traditional values and food taboos, long-established dietary and snacking habits, food distribution patterns in the family, ideas about child feeding, and lack of knowledge of food hygiene and sanitation, contribute to malnutrition. Thus, communication must be specifically designed to suit particular contexts or characteristics of target groups, encourage participation of individuals and the community, strengthen local knowledge and emphasize the value of local food, dietary and eating patterns (FAO, 2010).

Aditi Rukhaiyar
November 20, 2018

source https://indiaoutbound.org/nutrition-education-key-to-effective-implementation-of-campaigns/

Brazil: A model for curbing malnutrition

A 2016 essay, titled Nutrition and Equality: Brazil’s success in reducing stunting among the poorest, written by Meagan Keefe, attributes the massive advances in the status of child health and nutrition to the rapid progress in health care and economic development in Brazil. This extended to the reduction in poverty, improving nutrition and food security and reducing socio-economic inequalities in malnutrition via a multi-sectoral approach that included targeted income redistribution as well as social protection in the form of universal access to health, education and sanitation services.
 
Brazil’s programs and policies led to dramatic reductions in child stunting levels by about 80% and related socio-economic and geographical inequalities across the country. Other domains of intervention included: family purchasing power, water supply and sanitation, maternal schooling and maternal/child health. The single most crucial factor that led to a decline in child undernutrition was the transformation in women’s education between 1996 and 2007.
 

 
Brazil initiated its national food security policy framework (Fome Zero or Zero Hunger) in 2003 that integrated socio-economic policies to combat poverty and hunger. In 2004, the consolidation of the largest cash transfer program for nutrition and health in the world led to the creation of a broad social protection program called BolsaFamilia, encompassing 54 different initiatives and programmes within the country’s strategy for food security.
 
Through the National School Feeding Program and the Food Acquisition Program, Brazil successfully linked the supply from the small-holder farmers to the demand from food-based social protection programs. This led to an increase in their minimum wages, purchasing power, food and nutritional security as well as expansion in agricultural production, rural incomes, farmer credit and agricultural input procurement programs.
 
In 2009, the government integrated investments in school meals with smallholder agricultural policies to strengthen those and improve the attendance and performance in schools.The redefinition of its National Program for the Strengthening of Family Farms (PRONAF) led to an improvement in production through technical assistance, increased credit access, marketing support and infrastructure to boost the quantity and quality of food produced.
 
The National Program for the Promotion of Breastfeeding was established in 1981 to sensitize decision makers and the general public via advocacy campaigns, about the relationship between optimal breastfeeding and maternal and child health, while also training health workers about lactation and engagement of civil society organizations, such as the International Baby Food Action Network to increase community awareness.
 
A universal tax-funded national health service was established in 1988 as a result of a civil society campaign that demanded health reforms in the 1980s. This led to a radical decentralization process that allowed for greater participation of relevant stakeholders in the decision-making processes. Each level of the government extended support for the implementation of the national health policy. This led to a significant increase in the coverage of prenatal and vaccination care as well as investments in human resources and technology across the country.
 
Brazil’s food security framework was transformed between 1996 and 2006 with institutional structures designed to facilitate the realization of the human right to adequate food. In the 1990s, the country’s civil society proactively brought food and nutrition security to the national agenda as well as the design and implementation of the national nutrition policies. The Food Security and Nutrition Law strengthened Brazil’s legal framework for food security and nutrition, institutionalized this cooperation in 2010 by establishing institutions to facilitate collaboration among ministries and within the different levels of government. The programs were funded in such a manner that it facilitated inter-sectoral cooperation at the local level.
 
The membership of the highly institutionalized National Food and Nutrition Security Council (CONSEA) consisted of the civil society and the government. With its own formal structure, legal standing and budget allocation, it provided a mechanism for the involvement of the civil society in policy processes, especially vis-à-vis the implementation of an information system (including 50 indicators across 6 food security dimensions i.e. food availability, income and living conditions, food production, health, education, nutrition, access to adequate food and water as well as related services) that monitors food security and nutrition, guides policy decisions and documents progress.
 
Brazil’s approach to malnutrition by framing nutritional challenges within a national poverty reduction agenda is a cogent example of how pro-poor policies like investments in human and social capital through health and nutrition programs as well as conditional cash transfers can aid strong political will to combat malnutrition. The sustenance of nutrition security gains depends upon the maintenance of economic growth and policies of income redistribution. This must be supported by the universalization of elementary and secondary education while addressing challenges related to the adequate availability of health care and sanitation services.
 
 
India Outbound
November 19, 2018

source https://indiaoutbound.org/brazil-a-model-for-curbing-malnutrition/

What does the #future of #energy look like? The bigger picture. https://t.co/xIMtrGtvzR

What does the #future of #energy look like? The bigger picture.https://t.co/xIMtrGtvzR

— India Outbound (@india_outbound) November 20, 2018

from Twitter : https://twitter.com/india_outbound

Beholding The World’s Energy Future

Historically, the availability, access and control of oil, as a vital economic resource has shaped global power relations. It has led to the creation of many powerful countries and has been the source of multiple wars and conflicts in the last few decades. For instance, Saudi Arabia was one of the poorest countries in the world during the 1930s, but with the discovery of oil, its fortunes transformed massively. Saudi Arabia amassed $515.6 billion in sovereign wealth funds and became the lynchpin of a mighty oil cartel, exerting pressure on the world economy by rationing the oil supply and regulating prices.
However, today, the Unites States has emerged as a formidable player, by reducing its dependence on Iraq, Venezuela, Saudi Arabia and other OPEC (Organisation of the Petroleum Exporting Countries) countries. The US underwent the Shale Revolution in 2016, by adopting multi-pad wells, fracking and deep drilling, alongside crunching vast amounts of data to refine their techniques and making IT investments. By innovating and cutting down costs, the US became incredibly efficient, leading to massive government deficits and slumps in the oil revenues of the OPEC countries. Their move to drive oil prices perilously low failed as American free-market capitalism won over 40% of the global oil output. Their subsequent strategy to increase oil prices and impose production limits failed too, as American output increased. The US is now likely to become the world’s largest oil producer by the end of 2019.

The increase in the supply of oil and gas in the world markets has benefitted consumers due to a fall in prices. Oil is meets one-third of the world’s energy and hence, is the primary fuel. By 2040, the world’s energy use is poised to rise by 30%. However, the consumption of oil as fuel is a major contributor to global warming and the processes of extraction are not environment-friendly at all, due to their heavy dependence on resources like water. The rising energy demand must be met by cleaner sources, in order to prevent the devastating impacts of global warming.
Technologies for renewable sources of energy are no longer as expensive as they used to be. In fact, many countries are now racing towards creating and developing new and more efficient technologies to be able to harness their potential and reduce pollution. Securing energy independence and self-sufficiency is a key motivation for these countries and the one leading from the front is China. China is the largest consumer of coal and the second largest of oil. But, it is also leading the world towards clean energy. Today, 33% of the world’s solar and wind panels are installed in China. Moreover, China is responsible for selling more electric cars than any other country in the world.
The long-term transition to clean renewable energy can yield multiple new global challenges. These include the creation of tensions in unstable parts of the Middle-East with heavy reliance on the oil economy as they focus their efforts on preventing the revenue from drying up. Secondly, wind and sunlight are intermittent natural resources and therefore, harnessing them efficiently will mean the establishment of vast shared energy grids that span geo-political borders to ensure efficient and constant supply. Thus, in order for the world to have a shared energy future, a great collaboration needs to be fostered across the major economic powers as well as other countries of the world. Otherwise, any wars that might be fought over scarce resources could possibly be much worse in the 21st century, as compared to the 20th century.

India Outbound
November 16,2018

source https://indiaoutbound.org/beholding-the-worlds-energy-future/

Boosting India’s Fintech Ecosystem

Fintech, a portmanteau of financial technology, refers to technology that enables and supports financial and other banking services, by automating their use and delivery. Fintech goes beyond payments technology to cover sub-segments like lending, wealth management, credit reporting etc. Financial institutions are being transformed in terms of their roles and responsibilities, products and services as well as distribution channels, shaped by changing consumer expectations (need for digital finance and inclusion, smartphone adoption) and regulatory landscapes.
 
The transition of the mobile network in India into a legitimate software services platform has led to an explosion of fintech enterprise and innovation in India. The six benefits of the Indian growth story include access, inclusion, connectivity, ease of living, opportunity and accountability.This has made it an attractive destination for companies and start-ups, with India’s scale having the potential to enable fintech products to go global by reducing costs and risks.The ecosystem has flourished given the considerable efforts of financial institutions, start-ups, the government, regulators and venture capitalists to create a dynamic and collaborative environment. Specifically, the government has adopted a reformist stance towards digital transformation of the economy, based on current and future innovations in areas like artificial intelligence, block chain technologies and data analytics, data intelligence and distributed ledger technology.
 

 
This aggressive promotion of a cashless economy and a strengthened infrastructure for startups is reflected in initiatives like Start-Up India, income tax exemptions for start-ups during the first 3 years, selective tax rebates, RuPay, introduction of UPI or Unified Payment Interface or launching the Application Programming Interface Exchange or APIX). According to PM Modi, fintech can fight global financial crimes, combat money laundering and improve the living conditions of human beings “through direct contact with the most marginalised”. The Indian government is also expediting the shift to a presence, paper and cash-less service delivery system, popularly known as India Stack.
 
Despite funding and unprecedented growth at 135%, fintech startups grapple with multiple structural and operational limitations. The Ministry of Finance reported that financial innovations get stalled because “Indian regulators are disproportionately focused on averting scams. This generates a regulatory bias of blocking innovation in order to be safe, and an industry bias of avoiding untested ideas since they expose firms to the risk of frauds.”
 

 
A KPMG-NASSCHOM study titled Fintech in India – Powering a digital economy, released in September 2018, highlights the transition to a cashless economy, establishment of regulatory sandboxes and access to internet services can help better understand the viability of opportunities available and mitigate inherent risks. Fintech companies need to adopt creative and cost-effective ways to channel domain expertise and achieve due-diligence/regulatory compliance, in embracing existing IT solutions to create robust innovations. While fintech startups are on the rise and are fast becoming key enablers for the businesses of traditional financial institutions, India is yet to see the emergence of a home grown player that will sustainably transform the existing ecosystem with new business models that achieve a competitive edge in unison with global standards.
 
 
India Outbound
November 15,2018
 

source https://indiaoutbound.org/boosting-indias-fintech-ecosystem/

Chinese technological ascension

source https://indiaoutbound.org/chinese-technological-ascension/

How Developing Countries Especially BRICS (namely China, India and Brazil) Are Leading The Way In Solar Energy?

The progress in development of the BRICS countries has been marked by the increase in the quantum of clean renewable energy production. With the continuous rise in population growth, especially in the developing countries, there has been a greater increase in the demand and consumption of energy, thus strengthening concerns regarding environmental degradation and climatic changes. As a result of this, some countries have shown major shifts in critical thinking vis-à-vis solutions for meeting the energy demands, by transitioning from conventional oil and gas to renewables, especially solar energy.

The countries that are located in the arid, tropical and sub-tropical regions of the world have an advantage in terms highest receptivity of solar irradiance, due to their latitudinal positions. Brazil, India, China, and South Africa fall in these red zones. The United Nations Environment Programme (UNEP) has developed a loan programme to simulate renewable energy market helping countries like India, Morocco, Kenya, and Tunisia to finance solar power systems. Kenya has become the largest developer of solar power systems in terms of installation per capita in the world.

China is the leader in the world’s solar power sector and has the highest annual power production at 598800 kWh per year. However, there is a striking contrast between the values of per capita energy consumption. In the USA, it is as high as 12877 kWh per year, while China and India consume 3974 kWh per year and 985 kWh per year respectively. Developed countries like Norway, Kuwait, Canada, UAE, Sweden and Iceland have high levels of per capita consumption too.
The domestic solar industry in China is currently experiencing a downturn, as the Chinese government has halted the allocation of quotas for new projects, until further notice. Moreover, the tariffs on the electricity generated from clean energy has been lowered by 6.7-9% depending on the region i.e. 0.05 yuan per kilowatt hour, effective as of June 1, 2018.
In Brazil, the solar sector is progressing regardless of the political and economic environment, with an alignment of certain basic drivers i.e. availability of a competitive technology, a business sector capable of innovation and more consumers wanting the technology, resulting in a growing market. At the beginning of 2018, Brazil reached the historical mark of 1 GW of installed PV capacity and is expected to reach 2 GW at the end of the year. In addition to this, 3.7 GW of solar has been contracted by the government via auctions and the growth of distributed generation is surpassing initial forecasts.
India has the world’s third fastest expanding solar power program, ranked after China and USA. In 2017 alone, India added a record 9,255 MW of solar power with another 9,627 MW of solar projects under development. India launched its National Solar Mission in 2010 under the National Action Plan on Climate Change, with plans to generate 20 GW by 2022. India’s Solar Power capacity has increased from 2650 MWe in 2014 to the current level of 12,200 MWe and the tariff has dramatically reduced from INR 13 per kWh in 2014 to INR 2.44 per kWh.

India Outbound
November 12, 2018

source https://indiaoutbound.org/how-developing-countries-especially-brics-namely-china-india-and-brazil-are-leading-the-way-in-solar-energy/

Overview Of India-Netherlands Trade And Investment

Indo-Dutch relations has a history of over 400 years. Official relations, centered on economic and commercial bilateral ties, were established in 1947. The Dutch government identified India as an important economic partner in the early 1980s. Economic relations further strengthened after the liberalization of the Indian economy in the 1990s. In 2006, former Prime Minister Balkenende declared India, China and Russia as priority countries in Dutch foreign policy. To commemorate the 70th anniversary of diplomatic relations, PM Modi visited Netherlands in June 2017. This provided a significant boost to the multi-faceted cooperation. In addition to this, a successful festival was organized to showcase Indian music, art and dance. Multiple bilateral agreements and MOUs were signed across diverse areas, covering economic and commercial cooperation, culture, science and technology and education. Moreover, both countries share common ideals of democracy, pluralism and the rule of law.

In the financial year 2016-17, Netherlands was the fifth largest investor of FDI into India (US$ 3.37 billion), the 28th largest trading partner globally and the 6th largest trading partner in the EU. Cumulative investments amounted to US$ 22.63 billion comprising 6% of total FDI inflows between the periods of April 2000 to September 2017. Two-way trade stood at US$ 6.9 billion in 2016-17 with a balance of trade in favour of India of US $ 3.17 billion. Europe is India’s biggest trading partner and 20% of India’s export to Europe enters through the Netherlands. Indian exports to the Netherlands included: petroleum products and related materials (19.8%), apparel and clothing, textile yarns, fabrics and made-up articles (15.3%), organic chemicals (7.9%), vegetables and fruits (5.3%) and electric machinery (3.6%). Dutch exports to India included metalliferrous ores, metal scrap, plastics and general industrial machinery.

Many Dutch MNCs (Shell, Unilever) and major banks (ING, Rabobank) have their production sites and business operations in India. Dutch SMEs with niche technologies and world class expertise are also actively looking to enter the Indian market. India is a source of useful technical know-how, besides FDI, in a variety of sectors – water management, upgrading of ports and airports, dredging, agro-processing, telecommunication, energy, oil refining, chemicals, and financial services. As a result of the transparency, flexibility and stability of the Dutch tax system, there are 174 Indian companies presently based in the Netherlands. Indian companies like Tata Steel, Appollo-Vredestein and Hinduja Group have been involved in mergers and acquisitions and many are exploring possibilities for further tie-ups.

ASSOCHAM, India’s apex chamber, set up an office in Netherlands in December 2015, as a gateway to Europe and in June 2017, the Institute of Chartered Accountants of India (ICAI) opened an office in Amsterdam. The Netherlands-India Chamber of Commerce & Trade (NICCT) has set up an office in Mumba in February 2016. Netherlands backed India’s Missile Technology Control Regime (MTCR) membership.

Improvement in ease-of-travel and connectivity, with the successful implementation of the electronic Tourism Visa (eTV) in the Netherlands starting August 15, 2015, has provided a new impetus to tourism and business flows. Jet Airways has daily non-stop flights to and from Amsterdam from Mumbai, Delhi and Bangalore as well as one from Toronto. As of 2017, the Royal Dutch Airlines (KLM) is also operating three direct flights per week between Mumbai and Amsterdam.

Water is a prime sector of cooperation as exemplified by the joint water technology initiative, Dutch Indian Water Alliance for Leadership Initiative (DIWALI). Cooperation must be boosted in water conservation and irrigation. Both countries have committed to the climate change accord and hence, need to strengthen cooperation in the development of renewable energy. Thus, India and Netherlands are natural partners in economic cooperation and there is scope for further growth in the trade relations.

India Outbound
November 8, 2018

source https://indiaoutbound.org/overview-of-india-netherlands-trade-and-investment/

India’s Growth In Wealth Relative To The World

India’s growth story reflects an overall upward trend in wealth during the 21^st century, despite a setback in 2008 due to the global financial crisis and bumps caused by currency fluctuations. The annual growth of wealth per adult averaged 8% during 2000-2018. After falling by 26% in 2008, it rebounded and grew at an average rate of 7% up to 2018. After a year of slow growth, the wealth per adult in India is estimated at USD 7,020 in mid-2018, due to an exchange rate drop of 6%.

The financial assets recovered from the 2008 financial crisis and have continued to contribute substantially to the growth of household wealth, by accounting for 41% of the increase in the gross wealth worldwide. Two-thirds of this rise occurred in North America. The non-financial assets have grown at a faster rate in recent years and have provided the impetus to overall growth in all the regions, except North America, in the past year. This has accounted for over 75% of the rise in Europe and China, and all of the rise in India.
North America added USD 6.5 trillion to its stock of household wealth, out of which USD 6.3 trillion was added in the US. Europe’s contribution was an addition of USD 4.4 trillion, China’s was USD 2.3 trillion and Asia-Pacific’s (excluding India and China) was almost USD 1 trillion. However, India, Africa and Latin America saw a combined net loss. The 6,5% loss in Latin America, in part due to the economic troubles of Brazil and Argentina as well as the adverse currency movements, exceeded the percentage gains in China, Europe or North America. However, in considering smoothed exchange rates, the growth of wealth was positive in Latin America and slightly higher in India and Africa.
The biggest gains and losses can be attributed to exchange-rate movements. These have been relatively stable over the past year, in comparison with its recent history. Amongst the G7 countries, India and China, the changes in exchange-rate versus the US dollar did not exceed 3%, apart from the 6% depreciation in India and Russia.

As is typical of developing countries, personal wealth in India is dominated by property and other real assets, comprising 91% of estimated household assets. Household debt has risen at an overall rate of 7.1% with an increase in all regions except Africa, and double-digit growth in China and India. However, personal debts constitute only USD 840 or 11% of the gross assets, even after making adjustments for under-reporting. This implies that while indebtedness is a severe problem for many poor people in India, the overall household debt as a proportion of assets in India is lower than in most developed countries.
The results of the Credit Suisse Global Wealth Report reiterates the unequal growth of wealth in India. Not everybody has been able to achieve a share of the rising wealth in the country. The considerable wealth poverty is reflected in the fact that 91% of the adult population has wealth below USD 10,000. At the other extreme, a small fraction of the population (0.6% of adults) has a net worth over USD 100,000. However, owing to India’s large population, this translates into 4.8 million people. Also, the country has 404,000 adults in the top 1% of global wealth holders (share of 0.8%), 3,400 adults have wealth over USD 50 million and 1,500 have more than USD 100 million.

India Outbound
November 6, 2018

source https://indiaoutbound.org/indias-growth-in-wealth-relative-to-the-world/

Where does India stand in global wealth distribution in 2018?

The Credit Suisse Global Wealth Report provides extensive information on global household wealth. Over the last one year, the global aggregate wealth has risen from approximately USD 14 trillion to USD 317 trillion, at a growth rate of 4.6%. While lower than the previous year, this growth rate is higher than the average growth rate in the post-2008 era. Moreover, it sufficiently outpaced population growth, leading to a record increase of roughly 3.2% in the wealth per person.

However, the global level of wealth, equivalent of a global figure of USD 63,100 per person does not take into account the massive variations in distribution across the regions and countries of the world. Such geographical imbalances in the distribution of household wealth is shown below.

North America and Europe together account for 60% of total household wealth, but comprise a meagre 17% of the world adult population. The discrepancy is modest in China and in the Asia-Pacific region (excluding China and India), where the population share is about 30% higher than the wealth share. But the population share is more than three times the wealth share in Latin America, nine times the wealth share in India, and 15 times the wealth share in Africa.
As of mid-2018, in order to be amongst the wealthiest sections of the world, a person requires net assets of just USD 4,210. However, to be a part of the top 10% of global wealth holders, USD 93,170 is required, while in order to belong to the top 1%, USD 871,320 is required.
India, alongside other heavily populated countries like Russia, Brazil, Indonesia, Philippines and Turkey, belong to the “frontier wealth” range of USD 5,000 to USD 25,000. This range covers the largest land surface.
The regional pattern of wealth has been illustrated in the figure below, by assigning individuals to their corresponding global wealth positions.

The contrast between India and China is the most striking aspect of this regional composition of global wealth distribution in 2018. Comprising almost half the worldwide membership of deciles 7-9, most Chinese adults belong to the upper-middle section of global wealth distribution. This can be attributed to the country’s record of growth in combination with rising asset values and currency appreciation. China accounts for almost 18% of the top decile of global wealth holders and is slightly behind the US (20%) in terms of number of residents, but way ahead of Japan, France, Germany, Italy and the United Kingdom.
China has now clearly established itself in second place in the world’s hierarchy of wealth. In contrast, more than a quarter of the residents of India are heavily concentrated in the bottom half of the distribution. However, the high wealth inequality and immense population level in India indicate that India has a significant chunk of members in the top wealth categories.

India Outbound
November 5, 2018

source https://indiaoutbound.org/where-does-india-stand-in-global-wealth-distribution-in-2018/

Municipal bonds for solar financing

 

According to a report titled Scaling up Rooftop Solar Power in India: The Potential of Solar Municipal Bonds, third-party financing models can address two of three barriers that hinder the adoption of rooftop solar in India i.e. high upfront capital expenditure and perceived performance risk. However, they have limited success vis-à-vis access to debt capital for project developers. The inadequate availability can be attributed to limited avenues for raising debt capital, stressed commercial banks, credit quality concerns, limited long-term capital opportunities for Indian financial institutions and small ticket size of investments leading to high transaction costs.
In such a context, municipal financing, via issuance of municipal bonds, can potentially increase debt availability for rooftop solar project developers, while reducing costs up to 12%. Here, a municipal entity becomes a finance aggregator for the renewable energy project developers. The municipal bond funds are disbursed via a Public Private Partnership (PPP) approach. The aggregation of projects allows for the developers to access the debt capital markets.
There are several market advantages of municipalities as potential rooftop solar finance aggregators.

• Institutional goals and mandates: their target-based responsibilities to increase the deployment of renewable energy provides a built-incentive for rooftop solar
• Access to debt capital markets: their larger balance sheets put them in a better position than rooftop solar developers
• Superior credit profiles: most municipalities are rated investment-grade, allowing them to raise debt capital at lower costs
• Access to public guarantees: as public entities, municipalities have relatively better access to public guarantees, as compared to private project developers. These are typically needed to achieve the necessary risk-reduction for attracting institutional investment
• Diverse revenue sources: the multiple sources of revenues (property taxes etc.) available to municipalities can provide additional security to investors
• Good consumer engagement: their relatively closer proximity to consumers can help the government facilitate the aggregation of rooftop solar projects faster
Apart from the reduction in financing costs, solar municipal bonds can potentially mobilize significant untapped investments (from domestic institutional investors etc.) into the rooftop solar sector as well as build their capacity to access debt capital markets. They need to utilize innovative transaction structures.
Despite the promising role of municipalities as financial aggregators, there exist multiple implementation barriers:
• There is no statutory/constitutional mandate for municipal corporations to promote electricity or power generation
• Solar municipal bonds need to achieve high credit ratings: since the Indian debt capital market is relatively shallow, it fails to attract enough investors if the credit rating of the bond is below AA or A+. Hence, high credit ratings of the municipal bonds is critical for the success of this financing model
• The novelty of the approach implies that the transaction costs are higher than in case of self-ownership or third-party financing models

Despite being a radical and futuristic model, municipal financing for rooftop solar can be crucial for India to achieve its rooftop solar target by 2022, provided the barriers are eliminated. This will not only contribute to the scaling up of rooftop solar, but will also enable the municipal corporations to utilize a similar financing structure for other infrastructure projects.
India Outbound
November 2, 2018

source https://indiaoutbound.org/municipal-bonds-for-solar-financing/

The rooftop solar power sector in India

A report titled Scaling up Rooftop Solar Power in India: The Potential of Solar Municipal Bonds highlights the current scenario and possible way forward for the rooftop solar sector in India. It delves into the potential of municipal bonds as a means to finance the scaling-up of rooftop solar and lays out in detail the design and implementation for the same.

For India to achieve its national target of 40 GW of renewable energy by 2022, the rooftop solar sector needs to increase 32 times its present capacity. As of December 2016, the total installed rooftop solar capacity is 1.25 GW, the largest share of which has been deployed by the industrial sector, followed by the commercial and then the residential sector. The industrial sector is expected to meet the remaining target and to host a target of 12.06 GW, it has to increase its capacity by about 37 times. Assuming that the residential and public buildings will contribute 10 GW to rooftop solar by 2022, they need to increase their shares by 21 times to meet the national targets.

The considerable gap between installed and expected capacity can be met by 2022 only with significant investments in the rooftop solar capacity. These investments are subject to the costs of solar panels, capital, labor and operations, and levels of national and state-specific subsidies and taxes.

The key factors that drive the adoption of rooftop solar in India include:

• the expected cost savings in electricity:

  The gaps between rooftop solar and conventional sources of electricity is decreasing quickly. In the residential sector, it has already achieved grid parity in states like Maharashtra, Uttar Pradesh and Rajasthan. Rooftop solar has become competitive in the government sector in Haryana, Delhi, Uttar Pradesh, Andhra Pradesh and Karnataka.

• energy access (need for an alternative electricity source): the issue of access to affordable power plagues Indian households in both rural and urban areas as 304 million people still lack access to electricity (NITI Aayog 2017), despite the rapidly decreasing power deficit across India. In such a context, rooftop solar provides a less harmful and price-volatile alternative.
• “green” benefits: the social image of being “green” and environment-friendly appeals to some consumers in the commercial, industrial and public sectors, even if it means paying higher than grid power or making capital investments.
• and government mandates i.e. the need to mitigate climate change risk: the government and state-wise Renewable Purchase Obligations (RPOs) apply only to the industrial and commercial segments. The government prescribed solar-specific RPO is set to rise to 3% by 2022.

Given these drivers, the growth of rooftop solar technology in India is still hampered by multiple barriers. These barriers need to be resolved adequately by the measures that will accelerate the adoption of rooftop solar in India.

• High upfront capital expenditure or costs of installation for a non-core business activity
• Limited access to debt and finance: The suspicions around performance in this relatively nascent sector make banks reluctant to lend to solar rooftop projects, thereby leading to high borrowing costs. Developers thus, do not approach banks for loans, especially for smaller size projects due to the proportionately higher transaction cost. In addition to this, the third-party debt capital market (bond issuance) in India is still marginal. Thus, most rooftop solar projects in India are being financed with equity capital with minimal debt during development stages (BNEF 2016). As the cost of equity capital is usually more expensive than debt, the overall project cost then becomes more expensive.
• Consumer perception of performance and risks: As a relatively new technology in India, rooftop solar is not always expected to perform as expected over its lifetime. There are also trust issues since the new entrepreneurs in the market do not have much of a track record yet.
• Challenges in the implementation of net-metering policies: 27 states and union territories have issued policies as per the 2013 model net metering regulations but only a few have started actual implementation. The poor/slow progress can be attributed to issues like passive opposition from DISCOMs, inadequate policy frameworks and insufficient training at the local utility level.
• High costs of energy storage: Since solar power can be generated only during the day time, energy storage is crucial for ensuring night time usage or during times of low solar radiation. The current prices of rooftop solar systems with battery storage can be INR 90,000-1,35,000 per kW depending on voltage. The issue of consumer-owned, behind the meter energy storage can become less pressing if effective net-metering policies are properly implemented and supported by front-of the meter and grid- based storage.

 
India Outbound
November 1,2018
 
 
 

source https://indiaoutbound.org/the-rooftop-solar-power-sector-in-india/