British energy firms advised to target India

Friday, 14 January 2005, 20:30 IST
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LONDON: A leading energy expert from West Midlands has advised British energy companies to target the vast potential of India's burgeoning power industry. Andrew Whitehead, head of energy of law firm Martineau Johnson, toured India recently and said it had significant potential for alternative energy sources, particularly biomass and waste to energy. During the tour, he met Indian businessmen and senior officials of the state electricity boards in Delhi and Maharashtra, and the central electricity regulatory commission in Delhi. "India has a chronic power shortage, with an increasing demand that far outweighs its supply capability and this is an ideal opportunity for West Midlands businesses looking to expand their operations," Whitehead told the media. "If India's power sector is to keep up with its energy needs, huge investment in new generation capacity and network infrastructure is necessary. "Developed countries like the UK can play their part. India has recognised its environmental responsibilities and is progressing a prioritised programme of modernisation and efficiency improvements for its industry, together with a commitment to developing more renewable generation capacity. But it is heavily reliant on overseas technology." Russia's recent endorsement of the Kyoto Protocol, which enables it to come into force, will also provide a boost to India's development programme. Whitehead said: "Indian projects which qualify under the Kyoto Protocol's 'clean development mechanism' could attract significant revenue from the sale of emissions reduction credits." "This could make some economically unsound projects financially viable, especially if, as predicted, prices in the market go up in the light of the Russian ratification. "Furthermore, the coming into force of the EU emissions trading scheme in January should stimulate demand for Kyoto credits - under a recent EU directive, companies can use these credits towards meeting their emissions reduction targets under the EU scheme. "Add to this the demand from several European governments who plan to purchase Kyoto credits on a large scale, and the new carbon emission caps being mooted in Canada and Japan, and you get a clear picture of the considerable market forces building up in favour of clean energy projects in India." Whitehead reckons that against this favourable background, biomass and waste to energy in particular, should prove especially appealing. He added: "The availability of raw material and the small scale of the operations and technology required for a biomass project to operate effectively makes it ideal for the Indian power industry. "Currently, as a result of inadequate infrastructure and generation capacity, vast swathes of India are in need of electrification, and a relatively small biomass plant, utilising local resources, is an excellent way of providing power for a village or community."
Source: IANS