Energy Supply

The need to increase energy supply to fuel economic growth and social development requires cleaner, more efficient ways of generation, transmission, and distribution of electricity. . In addition, adopting cleaner technologies for established methods of power generation using fossil energy and developing and disseminating renewable energy technologies are also critical steps in addressing the significant energy supply side challenges of improving environmental performance and reducing GHG emissions in the continued effort to meet global energy demands in a sustainable manner.

APP energy supply activities are making cleaner power production a reality. Each of the four Task Forces addressing energy supply issues – Cleaner Fossil Energy, Coal Mining, Power Generation and Transmission, and Renewable Energy and Distributed Generation – is working to capitalize on the significant opportunities that currently exist to implement efficiencies, performance improvements, and cleaner technologies, as well as to develop the next generation of clean energy technologies that will drive our energy future.

Key United States Government-supported Energy Supply activities include:

Cleaner Fossil Energy Task Force

[INCLUDE IMAGE OF PIE CHART TITLED "CO2 emissions from Fossil Fuel Consumption: APP Countries 54%, Rest of World 46%"]

The Cleaner Fossil Energy Task Force focuses its efforts in five primary categories: carbon capture and storage (CCS); post-combustion capture, oxy-fuel combustion, and other advanced technologies; coal gasification and liquefaction; energy market access for gas; and gas handling infrastructure improvements. Through the Task Force, the United States has been particularly active in promoting the development of CCS technologies through researcher exchanges and capacity building that transfers knowledge and experience in areas like regulatory frameworks, carbon sequestration technologies, geological storage site identification, and integrated gasification combined cycle (IGCC) technologies. Carbon capture and storage technologies have the potential to reduce CO2 emissions from coal-fired power plants to near zero and there are indications that CCS will in the future be an integral part of fossil fuel power generation.

U.S., South Korea Combine Efforts on Cleaner Fossil Energy Research and Development

Through the Cleaner Fossil Energy Task Force, the United States and South Korea are cooperating on a number of cleaner fossil energy technologies, including IGCC and CCS. Under a bilateral agreement between the DOE’s National Energy Technology Laboratory (NETL) and the Korea Institute of Energy Research (KIER), R&D cooperation has begun in eight clean fossil energy areas. The cooperation between NETL and KIER will encompass joint R&D and publications, exchanges of R&D materials and equipment, and short- and long-term R&D personnel assignments, among other activities. The first joint seminar will be hosted by NETL in 2007 and discussions are already underway to include all APP member economies in future events.

Building Regulatory Capacity in China: Guidelines for Safe and Effective Carbon Capture and Storage

Selected for funding by the DOS in 2008, this project will work towards the development of Chinese guidelines for safe carbon capture and storage (CCS). The World Resources Institute and Tsinghua University will work together to build capacity to speed the demonstration of CCS technologies by defining recommended guidelines and best practices for safe and effective CCS. Given the abundance of coal resources in China and the increasing role they are playing the energy supply sector of the Chinese economy, Tsinghua University’s Low Carbon Energy Laboratory understands the value of developing guidelines for CCS and engaging policy makers to build regulatory and institutional capacities. By preparing these guidelines while simultaneously developing technical capacity, this project will enhance the ability of CCS experts and stakeholders to build capacity for safe geologic storage of CO2 in a country with tremendous potential to take advantage of CCS technology. The guidelines will encompass all stages of the CCS process, including capture, transport and storage. Substantial effort will also be placed on collaborative development of guidelines for ensuring safety over the long term and developing regulatory recommendations and guidelines for long-term stewardship of CCS sites.

Evaluating and Reducing GHG Emissions from Liquefied Natural Gas (LNG)

Operations The American Petroleum Institute (API), a U.S. private-sector member of the Cleaner Fossil Energy Task Force, is leading a project to develop GHG estimation methodology for the Oil & Natural Gas industry in APP countries. A recent study by EPA concluded that current emission estimation methods may not accurately reflect actual GHG emissions from LNG operations; despite a similarity in the equipment used, sources in LNG operations differ in many aspects from sources in natural gas transmission and underground storage operations, resulting in often incorrect analyses of GHG emissions from LNG. To address this problem, API will develop consistent and comprehensive internationally accepted methodologies to estimate methane, carbon dioxide, and other GHG emissions from liquefied natural gas (LNG) facilities, processing, and associated infrastructure. API will incorporate trade organizations, individual companies, and other key stakeholders from all APP countries in the development of these methodologies. Once completed, API will promote the adoption of these emissions estimation methodologies throughout APP Partner countries, as well as to the larger group of industry stakeholders.

Coal Mining Task Force

[INCLUDE PIE CHART TITLED "Coal Consumption, APP Countries 69%, Rest of World 31%"] [INCLUDE PIE CHART TITLED "Coal Recoverable Reserves, APP Countries 59%, Rest of World 41%"] Work conducted through the APP’s Coal Mining Task Force actively engages Partner countries in continued international efforts towards improving overall mining and transportation efficiency, increasing deployment of coal cleaning and other technologies, encouraging technological innovation, and strengthening policy and regulatory frameworks to promote safe and efficient mining practices.

Annual world coal consumption is about 5,800 million short tons and has increased at a faster rate than any other fuel, rising by almost five percent in the past two years. Coal consumption is projected to nearly double by the year 2030 to meet the challenge of economic development and its growing demand for energy, with China and India accounting for 70 percent of the projected consumption increase.

APP Efforts Open, Expand Coal Cleaning Market in India

A significant portion of the coal in India and China is of poor quality and the majority is not cleaned prior to utilization. This results in high shipping costs, low thermal efficiencies, and high maintenance costs at power plants, and contributes to high CO2 emissions per unit of electricity produced. The Coal Mining Task Force has focused on evaluating various technologies that can improve the quality of the coals mined before shipping and utilization.

Task Force participants continue their work on a variety of activities to improve and promote the expansion of coal beneficiation and processing in Partner countries. Engineers from Partner countries are exchanging best coal cleaning technologies and practices through information sharing, leading to improved power plant efficiency, and reduced carbon dioxide and sulfur emissions.

Coal Mining Task Force work has opened and continues to advance the substantial market for coal beneficiation, or coal cleaning, in India. In an outstanding example of the public-private collaboration fostered by APP activities, the U.S. private sector first heard about Coal India Limited’s interest in opening coal beneficiation plants through Task Force meetings. Coal India, India’s largest coal mining company, is now actively seeking U.S. companies to bid on its projects.

The growth potential, environmental benefits and opportunities for commercial involvement in this newly opened market are tremendous. Coal beneficiation significantly improves power plant thermal efficiencies by reducing impurities, thereby increasing coal’s energy value and reducing overall GHG emissions.

Projected benefits of using clean coal in India include 4-5 percent improvements in power plant efficiency (the equivalent of building 12 new 500 MW plants), 15 percent reductions in GHG emissions from existing power plants (approximately 10-15 million tons avoided CO2/yr), and a gain of approximately 20 percent in railway coal transport capacity.

The United States is deeply involved in coal cleaning work, particularly in India. For example, with APP funding from the DOS, Virginia Tech’s Center for Advanced Separation Technologies is currently demonstrating a pilot-scale deshaling unit to be installed at a coal site in India. By testing this pilot-scale deshaling unit, which was developed by Virginia Tech with support from DOE, Indian and U.S. engineers will be able to develop full-scale units for commercial use. Benefits include reduced GHG emissions and fly ash precursors of environmental concern like arsenic, selenium, chromium and mercury, as well as increased railway transport capacity and power plant efficiency.

In addition, Coal India Ltd. (CIL) approved, in April 2008, a coal beneficiation plant simulator project facilitated jointly by DOE’s Office of Fossil Energy and India’s Ministry of Coal, under the US-Indo Energy Dialogue Coal Working Group, and the Coal Mining Task Force. This project will further facilitate emissions reductions and energy savings in key coal-producing regions. The project team, which includes Sharpe International LLC, Bharat Heavy Electricals Ltd., Central Fuel Research Institute, and the Central Mine Planning and Design Institute, will develop a simulator for the design of new coal beneficiation plants and the optimization of existing plants to conserve energy, and reduce cleaning costs and coal waste.

Promoting Better Use of Coal Mine Methane

Globally, coal mine methane contributes about 10 percent of all human-related methane emissions. Capturing and using potentially explosive coal mine methane (CMM), a clean-burning energy source, can reduce GHG emissions while improving mine safety, productivity and revenues. India and the United States are working together to promote the use of more effective drilling and methane drainage techniques and increased recovery and use of low-quality CMM sources. To facilitate CMM recovery and utilization, EPA is currently funding a CMM feasibility study at the Hebi mine in Henan, China. Australia, China, and the United States are also working together on integrated coal and methane extraction activities.

Fostering Sustainable Development in the Mining Industry

Coal Mining Task Force participants are integrating the environmental, economic, and social aspects of coal mining, setting social and environmental benchmarks which go beyond currently prescribed regulations, and improving information exchange and the broader use of current technologies and practices. The Task Force promotes the use of 12 best practice handbooks produced by the Australian government on subjects ranging from community engagement and development to managing acid and metalliferous drainage, as well as a best practices handbook by the U.S. National Academy of Sciences on the placement of coal combustion by-products in coal mines. Three additional handbooks on key topics are also in development. Handbook topics in the series have been the subject of workshops such as an April 2008 event on mine rehabilitation, closure, and completion in Kolkata, India. Through these workshops, the Task Force is building key Partner country implementers’ awareness of the recommended best mining practices.

Reducing Environmental Impacts While Advancing Coal Mine Health and Safety

By promoting leading health and safety practices to significantly reduce the number of yearly accidents, the Coal Mining Task Force is accelerating the deployment of technologies and practices that can improve the economics and efficiencies of coal mining while improving mine safety and reducing environmental impacts. The United States is contributing a crucial element of this project by collecting and presenting information on health and safety training within the four primary coal-producing partner countries and comparing the health and safety practices in each. This project begins with an overall comparison of the health and safety curriculum within each country and then provides an example of leading practices based on these comparisons. There is an individual report for each of the four partner countries that elaborates on the information presented in the comparison report and a table, or Quick Guide, that summarizes the information. This document explains the health and safety training requirements in each of the four partner countries and highlights leading practices in each in order to compile a baseline training curriculum as well as recommendations that can be used by all countries with a coal mining industry.

Fires and explosions in coal mines are often triggered by methane gas and coal dust. Removing methane from the mine not only improves worker safety but also has an environmental benefit if the methane is captured and used as an energy source, thus reducing GHG emissions from coal mining. Task Force activities are promoting opportunities to capture and utilize coal mine ventilation air methane and coal seam gas captured in advance of mining (pre-mine drainage). The Task Force is also assisting in the detection and management of dust, reducing both the potential for spontaneous combustion and the incidence of mine related diseases for coal mine workers.

Stabilizing Overburden Piles for Safety in India

Opencast coal mining will continue to remain an important option in several Partner countries for at least the next two decades. Overburden, the material overlying the coal, must be removed during mining and placed elsewhere in a manner that safely minimizes ground space. While gently-sloping overburden dumps would be ideal, this approach requires more ground space, thus a balance must be struck between minimizing footprint and ensuring stability of the dumped overburden so it does not slide and cause accidents or production shutdowns. The stability of overburden dumps, already an acute problem in some mines, will continue to pose a problem for some opencast mines, as mining depths are projected to increase and available surface area shrinks.

Coal Mining Task Force activities in India included a providing a team of U.S. experts who visited 5 Western Coalfields Ltd. and Northern Coalfields Ltd. Mines and a workshop at the CIL Coal Mine Planning and Design Institute (CMPDI) in Ranchi to exchange knowledge and experiences with CIL engineers on slope stability principles, slope stability analysis and monitoring techniques, and spoil-fill construction practices. Workshop participants discussed problems encountered at the CIL mine sites and explored several potential remedies. A short report of the site visits and conclusions is in review.

Controlling Coalfield Fires

Coal fires are a significant source of global carbon emissions that uselessly waste valuable energy resources. CLMTF activities involving China, India, Australia, and the United States are actively addressing uncontrolled coal fires. For example, a project focusing on field examinations in coalfields in Australia and India will help develop appropriate prevention and control strategies for coal fires in underground mines, thereby improving the safety and economics of the coal mining industry while reducing GHG emissions. The U.S. and China are currently developing ways to build on China's ongoing coal fire monitoring efforts in Xinjiang province, focusing on improving detection accuracy using geophysical techniques, the results of which would then be verified by fire extinguishment and actual measurements.

Acceleration of Underground Coal Gasification in India

Underground Coal Gasification (UCG) is a proven technology for accessing energy resources in unminable coal seams by producing synthetic gas for power generation, synthetic liquid fuels, natural gas or chemicals. Although India and China have good potential for underground coal gasification, UGC is an untried technology in both countries Through this project, the U.S., India and Australia will share information and best practices, such as gasification impacts on ground water, mitigation measures, and experiences with regulatory arrangements. DOE sponsored a workshop for information exchange on UCG best practices in Kolkata, India with over 100 government and private sector attendees. DOE, including the Office of Fossil Energy, the National Energy Technology Laboratory (NETL) and the Lawrence Livermore National Laboratory (LLNL) are in discussions with the India Ministry of Coal, Coal India Ltd, and the Central Institute for Mining and Fuels Research to provide technical assistance identification of potential commercial UCG plant sites and design and implementation of a pilot UCG plant.

Power Generation and Transmission Task Force

[INCLUDE PIE CHART TITLED "Electricity Consumption: A PP Countries 54%, Rest of World 46%"] The Power Generation and Transmission Task Force works to foster cooperation in the power sector among APP countries through projects that improve efficiency and environmental performance at existing power plants of all types, introduce fuel switching and/or multi-firing in thermal power systems, implement loss reduction in electricity transmission and distribution (T&D), and foster improved demand side management. The United States is integrally involved in the Power Generation and Transmission Task Force, particularly through sharing experience and best practices in demand side management, improving efficiency at thermal power plants, and fostering extensive capacity building through a series of peer reviews.

Utility Exchanges Foster Efficiency Improvements

Throughout Asia-Pacific Region "I was impressed by the level of expertise in the individuals representing the foreign countries’ various utilities, as well as the attendees from the United States. Not only were they able to derive solutions for ongoing heat rate improvement problems, but they were able to equate these improvements to avoided emissions from the units. It would give any host generating station a great start on developing efficiency or environmentally driven projects that require payback or budget driven priorities for expenditures."

- Pat Hartley, Manager, Alliant Energy’s Edgewater Generating Station, Sheboygan, Wisconsin. Alliant hosted a spring 2008 APP Peer Review at its Edgewater plant, which operates three coal-fired units generating a total of 803 MW.

Through an ongoing APP Power Generation and Transmission Task Force-supported series of utility exchanges, more than 300 engineers with expertise in various areas of the power industry are sharing best practices on more efficient power generation and transmission with their international peers.

Most recently, in June 2008, Australia hosted a brown coal (lignite) best practice workshop targeting personnel responsible for the daily monitoring, operation maintenance, and plant efficiency of lignite plants. Other events in this series of utility exchanges and site visits have included a Japanese-hosted peer review event on efficiency of coal-fired thermal power, a Chinese-hosted site visit on plasma ignition technology in power generation, a U.S.-hosted workshop focused on advanced power generation, efficiency gains, and emissions reduction, a U.S.-hosted workshop on hydroelectric generation efficiency, an Indian-hosted workshop on coal-fired thermal power plants and best practices in power generation, and an inaugural set of site visits hosted by U.S. utility American Electric Power on operational and environmental efficiencies for coal-fired power plants.

Recent Peer Reviews have centered on a checklist of items for attention initially drafted by Japanese experts with input from the U.S. private utility sector that was then reviewed in detail by power plant experts from all Partner countries, which can be found online at http://www.fepc.or.jp/english/environment/asia-pacific/green_handbook_peer/index.html. The checklist has proved so useful that, after an Indian-hosted February 2008 peer review, India requested more than 100 copies of guidelines on the checklist and its use in increasing power plant efficiency for distribution to power plant operators throughout India. Private sector Task Force participants from the U.S. are also using the checklist to upgrade their own internal procedures.

Such knowledge sharing is of critical importance. Simple, low-cost best-practice improvements can increase the efficiency of many power plants by at least 1.5% - which, for example, could reduce CO2 emissions in India alone by over 10 million tons per year.

California Energy Commission and California Public Utilities Commission Partner with Indian State of Maharashtra to Promote Demand Side Management

As in the United States, India’s power generation activities take place mainly at the state level. In conjunction with DOE’s Lawrence Berkeley National Laboratory, the U.S. has been working to transfer the knowledge base in demand side management (DSM) of the California Energy Commission and California Public Utilities Commission to the Indian state of Maharashtra, which includes the city of Mumbai and its surroundings. Energy regulators and utilities in California have used extensive DSM initiatives to maintain its per capita electricity usage at a relatively constant level over the past 20 years despite an annually increasing gross demand, to the Indian state of Maharashtra, which includes the city of Mumbai and its surroundings. Maharashtra currently faces a 5,000 MW shortfall in energy production – some 30 percent of its power needs – which results in daily rolling blackouts throughout the state; some regions receive power for only four to six hours per day. However, the demand side energy efficiency (EE) improvements expected as a result of this project will help alleviate the state’s electricity shortage, increase industrial output, and reduce GHG emissions. These energy efficiency investments are expected to pay for themselves in increased revenue to the power utilities while at the same time reducing electricity expenses for consumers, which could reduce the state’s fiscal deficit by 17%.

As a result of extensive training and workshops since the project began in September 2007, in April 2008 the Maharashtra Electricity Regulatory Commission (MERC) has approved a large budget for DSM initiatives in conjunction with four major utility companies in the state. This is the first budget for DSM to be implemented in India and will make a significant contribution to energy efficiency in the state. With this funding, Reliance Energy, one of the largest utility companies in India, has completed extensive research on their load profile and has designed a program to promote the replacement of 50,000 inefficient refrigerators in Maharashtra which will soon begin. Additionally, an Inter-Utility Working Group is currently being established to promote collaboration on DSM between Maharashtra’s public and private utilities and to foster greater exchange of knowledge in the state.

The success of this project has prompted exploratory talks with the Delhi Electricity Regulatory Commission about the possibility of expanding the DSM program to the Indian capital. Recently, LBNL staff presented the California and Maharashtra findings to the chairpersons of all Indian state electricity regulatory commissions at a meeting of the Forum of Regulators (FR). FR is chaired by the Central Electricity Regulatory Commission. At the meeting at least five additional states expressed an interest in developing similar DSM programs. This clearly demonstrates the enormous potential that demand side management has to improve environmental performance in developing countries while facilitating economic growth.

Assessments Support Dramatic Efficiency Improvements in Indian Power Plants

Coal's use in power generation and other applications in India poses environmental concerns because of emissions of carbon dioxide (CO2), nitrogen oxides, sulfur dioxide, and particulates from the country's older, less efficient coal-fired units. As part of its APP activities, the U.S. DOS-funded technical support to increase the operating efficiency and improve the environmental performance of two large Indian power plants, Kolaghat in West Bengal and Ropar in Punjab. Project activities focused on determining potential areas for efficiency improvement. The project also introduced a heat rate improvement program in the plants to track and maintain performance. An initial assessment concluded that when the recommended changes are implemented in full, both 1260 MW plants could improve their boiler efficiency by up to 4 percent and ultimately achieve 10-15 percent reduction in total CO2 emissions along with regaining up to 30 MWs of lost generating capacity in one of the plants. Subsequently, DOE provided the critical diagnostic equipment needed to optimize performance of these power plants.

As of October 2008, diagnostic equipment was on its way to the plants and initial efficiency improvements were set to begin. The state utilities of both Punjab and West Bengal will be able to utilize this equipment and training that power plant staff have received to implement similar efficiency improvements at the other power stations in the two states, which total approximately 7000 MW of additional installed capacity. As such, this project has the potential to significantly improve efficiency, reduce emissions, and increase revenues in plants that make up around 9,500 MW of India’s total generating capacity of 130,000 MW. This efficiency-improving strategy is based on proven environmentally and financially sound business practices used in U.S. power plants for decades, and similar programs supported by USAID in India for the last 12 years. It has received praise from the Indian power plant managers. Discussions are underway on how to turn an Indian power plant, possibly one of these, into a model plant where engineers from other state utilities be trained in best practices for power plant operations and to learn from their colleagues’ experiences.

Task Force Supports Energy and Market Regulatory Forum

An Australia-hosted Energy Regulatory and Market Forum on 25-27 June 2008 provided an ongoing mechanism for information sharing, capacity building, and cooperative development of the regulatory arrangements conducive to efficient energy market development. The Forum, U.S. contributions to which are led by the Federal Energy Regulatory Commission, aims to establish a shared understanding of the regulatory framework and market arrangements governing power generation and transmission operation in Partner countries. The Steering Committee, which first met in August 2007, agreed on 2-year work plan, focused on: Clean Energy Development, Energy Infrastructure and Market Regulatory Arrangements, and Reliability and Energy Security. The Forum has released the first volume of a report outlining electricity market design and regulatory structure within each country, with a second volume expected in late 2008. The Forum has also commissioned a Reliability and Security Review which will be available by the end of 2008.

Renewable Energy and Distributed Generation

[INCLUDE PIE CHART TITLED "Renewable Energy Electric Power Generation: APP Countries 39%, Rest of World 61%"] The Renewable Energy and Distributed Generation Task Force is working to promote renewable energy technologies, such as hydro, solar, geothermal, and wind, which generate virtually zero emissions. It is also seeking to advance distributed generation as a model that can significantly reduce emissions and promote greater cost efficiencies, while responding to the demographics of energy poverty, thereby increasing access to modern energy services. To achieve those objectives, the Task Force will strive to identify barriers to technology transfer and financing associated with deployment of these technologies, focusing on those that are cost-competitive with both on- and off-grid applications.

Large Scale Solar Power in India: Facilitating a Pilot Plant

Morse Associates, with APP funding awarded by DOS, is currently facilitating the development of a 1 MW solar photovoltaic (PV) power plant for the Tata Power Company, Ltd near the city of Mumbai, India. This project builds on existing work that Tata Power has undertaken with BP Solar to identify opportunities for introducing solar power into Tata’s generating capacity. India’s solar market potential is enormous, and expanding the use of large-scale solar PV will create a growing contribution to GHG emission reductions. Tata Power, one of the largest energy providers in India, has committed to constructing the 1 MW plant and is currently working to arrange financing. This project is also developing a systematic assessment of solar generating opportunities in Tata’s service areas by identifying key technologies and methodologies for solar PV generation, building capacity for measuring and identifying suitable sites for solar plants, and assisting Tata in negotiations to obtain financing for a 1 MW PV plant. This project should pave the way for the future development of much larger solar PV plants - on the scale of several hundred megawatts - within the next few years.

APP Assists with New Regulatory Structures for Renewable Energy and Distributed Generation

With funding from the DOS in support of APP goals, the U.S. Energy Association (USEA) is leading an ongoing series of best practices exchanges in the Indian states of West Bengal, Gujarat, and Punjab on the critical issue of grid interconnection for renewable energy and distributed generation projects. This has already resulted in helping the Power Trading Corporation (PTC) shape key regulations on access, licensing, and market competition. Founded in 1999, PTC is a government-initiated public-private partnership whose focus is to develop a commercially vibrant power market in India. PTC successfully introduced the concept of trading in the India power sector.

The USEA exchange program included public policy makers from U.S. and Indian governments, private industry, and regulators and included key stakeholders Power Grid Corporation of India, The Central Electricity Regulatory Commission (CERC), West Bengal State Electricity Board, Pennsylvania Public Utility Commission, and New York Public Service. According to CERC, the program provided inputs that went into the responses, comments, and suggestions on National Electricity Policy, National Tariff Policy, and Hydro Policy etc. and also for improvising procedures on inter-state open access.

"Recently, CERC had come out with a discussion paper on how to promote 'Co-generation and Generation of electricity from Renewable Sources of Energy' – and our participation in the renewable energy workshop at Kolkata and previous exchange was useful in framing suitable response on the discussion paper and in conveying our view/suggestions to CERC on how to promote RE.” - Rakesh Kumar, PTC India

Orb Energy Taps into India’s Solar Potential Photo caption: Karnataka state shop owner Abdul Hamid, left, who recently purchased a Solectric 120 system from an APP-facilitated Orb Energy branch, says this solar powered system “reduces our commercial bill for electricity, and [is] very helpful for our business when there is electricity supply failure.” Restaurant owner Zafrulla Abdul Jabbar Khan, right, says his system, also purchased from an APP-facilitated branch, is “[o]ne of the best alternate back up power solutions when there is no power from the KEB (Karnataka Electricity Board). I’m satisfied with good light. [The system h]elps us still do our business effectively when there is a power cut.”

Through a DOS-funded APP project, Orb Energy is expanding the commercial solar photovoltaic (PV) market in India to 50 new branch locations beyond the southern and central parts of Karnataka state housing the company’s existing branches. This grant facilitates market-scoping activities in northern Karnataka, southern Maharashtra, eastern Andhra Pradesh, and north Kerala, where potential solar potential is enormous and customers have few to no options to buy a larger AC solar power unit. Orb's PV systems are used for back-up power and solar thermal systems for hot water and a range of solar lighting solutions, which offer significant promise for climate protection in India, as PV devices lower GHG emissions through the displacement of kerosene, diesel fuel and grid electricity. Orb’s unique franchise model also advances local sustainable economic growth and economic entrepreneurship. The new locations will reach rural customers that currently suffer up to thirteen hours of power cuts each day. Already well ahead of schedule, by 2010 this project will realize the installation of more than 1 MW of PV systems, and is expected to eliminate 50,000 tons of CO2 emissions.

Market Development for Renewable Energy in India

The high transmission and distribution losses that India currently experiences (estimated at 30-50 percent) and the many communities that receive unreliable power provide a major opportunity for intervention. Increasing the share of distributed generation operating on renewable energy sources in the total electricity mix will have a significant impact on both clean energy supply as well as emission reductions. Policy, regulatory and financial “market enabling” frameworks to advance green technologies such as biomass, solar, waste-to-energy, small hydro, fuels cells and micro-turbines will be facilitated.

The program is an expansion and continuation of current work of USAID/India under its Clean Technology Initiative Project (CTI). With support from DOS, USAID is providing this inherently governmental function in partnership with the state regulatory commission, the state renewable energy development agency and the state government. In partnership with the Indian Ministry of New and Renewable Energy, USAID has successfully completed to date three training programs for over 150 participants on Regulatory and Policy Issues in Renewable energy. Five additional programs are planned during FY 2008. In addition, the project is planning to assist MNRE on the design and development of Renewable Energy Certificates as well as establishing manufacturing and quality standards on renewable energy products, devices and systems produced by small and medium industry.

U.S. APP Participant Converts Coke Oven Gas to Clean Heat and Power in China

U.S. APP participant Solar Turbines, Incorporated, a wholly owned subsidiary of Caterpillar Inc., has commercially placed 15 MWe of clean energy technology systems in, and is in negotiations for commercial placement of additional units of clean energy systems for the coking industry in China’s industrial provinces. The benefits of using such an integrated systems approach with their technology are to create electricity and thermal energy using polluting coke oven gas while reducing CO2. The emissions reductions are significant. For example, by using Solar Industrial gas turbines, Chinese customer Shandong Jinneng Coal Gasification Company Ltd. is reducing CO2 emissions by 40,000 tons per year, equivalent to the amount of CO2 emissions produced in a year by 6,600 cars – a record so impressive it helped the Coal Gasification company garner the first U.S. EPA International CHP (combined heat and power) award ever given to a foreign business. Solar Turbines has also organized “coke oven gas to useful energy” seminars in key industrial provinces, and is working to organize similar seminars throughout China.

Accelerating Distributed Generation - Combined Heat and Power Applications in China

Through this project, which was selected for funding by the DOS in 2008, the World Alliance for Distributed Energy (WADE Foundation) will work towards finding ways to expand grid-based CHP in the Chinese cities of Shanxi, Shandong, Hebei, Guandong, and Jiangsu. The project will build upon work by the EPA, as well as previous WADE experience, to identify both barriers and opportunities in China and to develop a more detailed comprehensive understanding of the potential for CHP and DG in China at the provincial level. A quantitative analysis of the five provinces will consist of utilizing the WADE Distributed energy level and creation of a best practices industry handbook disseminated through provincial training workshops. Finally, exchanges bringing Chinese officials to the U.S. for an up-close look at high-performing CHP equipment will reveal policy gaps and highlight opportunities, and potential incentives to promote further CHP usage at the local level.

Bridging the Economic Divide through Renewable Energy Based Empowerment Rural

Entrepreneurship Zones (REZ) have resulted in increased deployment of green power in India by providing critical outreach and support services to businesses in key sectors. Through this DOS-funded project, the Society for Development Alternatives is using REZs to promote green power by developing a portfolio of connected businesses, focused on the building materials and traditional skill-based craft sectors, and coupled with necessary support services such as green power. Additionally this project is demonstrating the financial and institutional viability of REZs and is building and nurturing partnerships for leveraging policy support and financial investments to accelerate the adoption and replication of REZs throughout India. Project organizers have met with the Ministry of New and Renewable Energy in New Delhi to explore joint implementation and funding leverage.