DARE - Because Entrepreneurs Do

Call it concern for environment or plain economics, many a businesses around the world are striking gold in ‘green’ pastures

When the United Nations Environment Programme (UNEP) released its report on the global flow of capital into the sustainable energy sector, a few months ago in Paris, the figures established firmly the growing clout of a new breed of businesses.

Fast depleting natural resources, particularly oil and coal, rising crude petroleum prices and dramatic climate changes have been instrumental in the sharp growth of a new category of commercial activity called environmental business.

According to the UNEP’s Global Trends in Sustainable Energy Investment 2007 report, global investment capital flowing into sustainable energy rose from $80 billion in 2005 to a record $100.4 billion in 2006. This breaks up into $70.9 billion invested into companies and new sector opportunities in 2006, a 43% jump from 2005 and 158% over the last two years, the report said, and added that an additional about $29.5 billion entered the sector in 2006 through mergers and acquisitions, leveraged buyouts and asset refinancing.

Renewable energy is just one of the various business opportunities that have grown around all the hue and cry over energy security, global warming and pollution. Others tapping the huge market for environmental goods are automakers with their electric and hybrid car models and consumer electronics companies with their energy-efficient home appliances. If US is the role-model for business trends the world over, then the recent figures by the American Solar Energy Society (ASES) are heartening and could be seen as an indication of things to come in developing countries such as India. According to ASES, renewable energy and energy-efficiency industries generated $1 trillion in revenue in 2006 in the US, and the figure could reach $4.5 trillion by 2030.

US-based Environmental Business International, the publisher of Environmental Business Journal, has coined a new term – Healthy Products, Healthy Planet Sectors (HP2) – those consumer goods and services that are offered in the name of environmental sustainability. It even includes services like eco-tourism in its list of businesses that have grown around the concern for climate change.

Renewable energy
The hottest sector in environmental business today, renewable energy refers to the optimum utilization of natural resources such as water, wind, sunlight and biomass. The sector is bound to witness exceptional growth given the government’s efforts to reduce the country’s dependence on crude oil (India imports 70% of its crude oil requirements and pays one of the highest prices in terms of purchasing power parity) and meet its growing energy needs.

According to estimates, renewable sources contribute only 7.7% of the country’s total power generation, as against the world average of 13%. This leaves scope for massive growth of the solar and wind energy sector. Currently 11,000 MW of power is being produced from renewable sources. During the 11th Five Year Plan, 15,000 MW of capacity addition is being targeted by the Plan panel. A renewable energy SEZ is also in the offing.

No wonder then, the wind power sector has seen some good action lately. It began with the completion of Suzlon Energy’s acquisition of Germany’s REpower Systems in June this year. Pune-based Suzlon now has the global market share of 6% in the wind power sector. Kalyani Group, parent of the world’s second-largest forging company, Bharat Forge, has grown its presence in the sector by recently acquiring Germany’s wind turbine maker RSBconsult GmbH. NTPC and leading developer DLF are also said to be exploring the possibility of entering the lucrative wind power business. Tata Power is setting up a 100 MW wind power project in Maharashtra with financial assistance from Asian Development Bank and Indian Renewable Energy Development Agency (IREDA). ONGC has taken up a 100 MW wind project of 50 MW each in Gujarat and Karnataka. Reliance Energy has commissioned a 8.37 MW project in Karnataka besides other projects.

All this action comes in the backdrop of India being the world’s fourth largest wind energy producer with an installed capacity of over 7,000 MW.

However, there is potential for 45,000 MW, according to government. Worldwide, the installed capacity of wind power is 78,728 MW as on March 31, 2007. A National Renewable Energy Policy, now under consideration, envisages 10% of total installed capacity through renewables.

Thanks to the plenty of solar energy that India gets, this is one segment of renewable energy that is high on both the government’s and private sector’s agenda. This can be gauged by the recent statement of Minister for New and Renewable Energy Vilas Muttemwar, who said the government was contemplating providing solar energy to 25,000 unelectrified villages by 2012. Reliance Industries is also mulling foraying into solar power generation and is likey to start some pilot projects in Maharshtra.

Opportunities in the solar energy sector are in the development of
Solar PV (photovoltaic) and solar heating systems. SPV systems have found applications in households, agriculture, telecommunications, defence and railways among others. In the last two decades, the cost of manufacturing of PV has gone down significantly, increasing affordability for dispersed rural applications. Non-grid solar thermal technologies include water heating systems, solar cookers, solar drying applications and solar thermal building designs. These technologies on the other hand help conserve energy in heating and cooling applications, especially in urban and semi-urban environment.

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written by lanvin shoes for sale, December 07, 2010

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written by Ganesh raj, December 16, 2009

I am well aware of the scope of the Renewable energy sector and wish to make my carreer in this industry,i donot have the money and infrastructure,i have a 17+ years of experience in infrastructure,presently i work for a MNC distribution, i would like enter in this industry other than sales any where in Bengal,bihar and Orissa,pls suggest

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written by Karan Gupta, April 07, 2009

Hi!

I am well aware of the scope of the energy sector as the non-renewable sources are getting vanished and the renewable sources are new taste with evergreen effects. I would like to enter in this business with minimum investment and want to start my own venture. So anybody there to guide and build anything in Ludhiana, Punjab(North India), where this tide is at its lowest stage, kindly contact me at er.karangupta@yahoo.in

Thanks & Regards,
Karan Gupta

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