Lanco Group to Invest $125 Million in Wind Power as India Unveils Plans for Climate Change

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Lanco Group (Hyderabad, Andhra Pradesh), a power and infrastructure major, is planning a foray into the wind-energy sector with an initial investment of $125 million. The private-sector player plans to set up a facility to manufacture wind turbines in the southern Union Territory of Puducherry. It also plans to set up windfarms in India, Europe and the U.S.

The group is aiming for a commercial launch of wind energy by September 2009 and has a target of developing a total installed capacity of 1,000 megawatts (MW). It is exploring opportunities to set up small wind projects with installed capacities of 2 MW and is in the process of chalking out the technology aspects of its venture in collaboration with German companies.

The group is also evaluating options in the nuclear and solar energy fields. The company is setting up five projects in the hydropower sector with a total installed capacity of 742 MW. Two of these projects have already been registered as clean development mechanism projects with the United Nations Framework Convention on Climate Change (UNFCCC).

The Lanco Group's decision comes at a time when India is renewing its focus on harnessing renewable energy sources to tackle the global issue of climate change. On June 30, India's Prime Minister Manmohan Singh unveiled the National Action Plan on Climate Change to promote the adoption of renewable energy sources with increased focus on solar power. The Times of India reported that the document highlights that "India will engage actively in multilateral negotiations in the [UNFCCC] in a positive, constructive and forward-looking manner." The document also emphasizes that, "Our objective will be to establish an effective, cooperative and equitable global approach based on the principle of common but differentiated responsibilities and relative capabilities enshrined in the UNFCCC." Though the plan currently lacks a budget and plan of action, a council on climate change comprising stakeholders from the civil society, government and industry has been set up to formulate directives and explore investment sources.

India remains noncommittal on setting targets to limit greenhouse gas (GHG) emissions. The prime minister reportedly rejected international calls to set limits on emissions but said, "Despite our developmental imperatives, our per-capita GHG emissions will not exceed the per-capita GHG emissions of the developed industrialized countries". India contributes to nearly 4% of the global GHG emissions and ranks as one of the world's top polluters. Carbon-dioxide emissions in the country amount to 1 metric ton per person as against the global average of 4.25 metric tons per person. Emissions amount to 20 million metric tons per person in the U.S. India is currently not under the imposition of the 1997 Kyoto Protocol, which is the only global agreement that specifically limits GHG emissions.

India and Brazil tie for second in the world as sellers of carbon credits, accounting for a share of 6% in 2007 after China, which topped the list with 73%. According to the World Bank's "State and Trends of the Carbon Market 2008" report, India accounts for only 15% of the projects in the clean-development-mechanism pipeline. The report states that the high-price expectation for certified emission reductions is a significant factor that has hindered the country's market growth. India has generated 30 million carbon credits and has an additional 140 million credits to push into the global arena.

Although South Africa is expected to be one of the areas worst affected by global warming, the Ganges River in India is expected to lose two-thirds of its monsoon flow, resulting in water shortages that could affect 500 million people, or half the country's population. India aims to increase photovoltaic production to 1,000 MW per year in addition to establishing 1,000 MW of concentrated solar thermal power generation capacity by 2017. Concentrated solar thermal technologies include dish/engine units, trough systems and towers that heat molten salt or water for further use to run a generator to produce electricity.

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