Wednesday, January 21, 2009

Renowned foreign companies to invest in Energy & Petrochemical Sector



 

Gujarat to get immensely benefited by tie ups in innovative technologies and knowledge partnerships in energy sector

 

The Government of Gujarat has taken note of the growing recognition of impacts of climate change at the local, national and global levels. The challenges of climate change and global warming is continuously threatening the world community. The global market for power has been expanding faster in conventional area than sourced from renewable energy. Acknowledging concerns of the current global scenario of volatile fossil fuel costs, global warming & climate change, and to harness the vast potential of Gujarat, which has the highest wind power potential in the country, the Government of Government led by its powerful chief minister Shri Narendra Modi has taken bold initiatives to make the investment in power by renewable sources sector attractive and recently announced new solar and wind power policies in this direction.

 
The energy systems based on coal, oil and gas have enormous environmental impacts. Carbon dioxide emissions from use of these fuels will cause large-scale climatic change within a single human lifetime. It is imperative to act now so as to reduce emissions of carbon dioxide; and to protect the people and ecosystems which are most vulnerable to the inevitable climatic change. Power from the renewable sources significantly reduces CO2 emissions- a key factor in the fight against dangerous climate change. 

Shri Saurabhbhai Patel, Minister of Energy & Petrochemicals, Govt. of Gujarat says, "Renewable energy is non-polluting, environment-friendly, relatively reasonably priced and has a shorter gestation period as compared to conventional power. Wind-power provides a double benefit both by reducing global warming and by creating additional local climate changes that reduces the impacts of such warming to some extent. It is indeed in the State's long term interest to promote further capacity addition in wind power generation."

The State Government, ably led by Hon'ble Chief Minister Shri Narendra Modi, recognizes the fact that unless the use of power from renewable sources grows sufficient large enough to make a dent on the current electric power system, the climatic effects of wind power will be negligible. It is plausible, however, that significant local climate change could occur in areas where wind farms are set up even if wind supplies a small fraction of the electricity demand.

During the recently concluded Vibrant Gujarat Global Investors Summit-2009, the renewable energy sector was the key area of focus of MoUs in the 'Oil, Gas & Power' sector. A record number of international companies or companies with foreign partners have not only shown keen interest in setting up power plants based on renewable, unconventional sources but also entered into agreement to setup plants in the immediate future. 

One of the largest investments has been committed by USA's Astonfield company who will be putting up 200 MW capacity Solar Photovoltaic plants with an investment 3,600 crores. Likewise, yet another solar technology based plant will be set up another American major company NextGen Syndicate LLC who will be setting up 310 MW solar power plant with an investment of 4500 crores. 

Altogether, MoUs for 1787 Mw of Solar PV and 1640 MW of Solar Thermal projects have been signed having a varied range of technology options. Further, many investors propose to set up manufacturing bases in the state for solar power related equipment such as Archean Group of Companies, PLG Power Ltd., Sunkon Energy Ltd. etc.

The Vibrant Gujarat Global Investors Summit ably steered by country's most popular Chief Minister Shri Narendrabhai Modi has also resulted in some of the innovative technologies based plants coming to the state. The Tata Power Company entered into a MoU with Government of Gujarat for setting up a 5 MW Geo-Thermal plant in the state. The company plans to initially set up a demonstration plant to be scaled up later depending on the reservoir potential. Similarly, another 5 MW power generation project based on wave energy is planned to be set up near Gulf of Khambat, by a company - Om Sai Mantra Power Generation Ltd. having tie-up with an Israeli technology provider.

According to Hon'ble Minister for Energy & Petrochemical, Govt. of Gujarat, Shri Saurabh bhai Patel, " During the summit, technology sharing agreements were signed by many State PSUs with leading international giants in the sector. GSPC signed a MoU with Schlumberger Asia Services Ltd. for strategic technical alliance for Oil & Gas Exploration & Production that is likely to result in accurate reserves estimation, effective field development and optimal reservoir management. The activities under this MOU range from data acquisition and management, data processing and interpretation, consultancy, integrated project management, joint R&D, oilfield operations and information technology. Also, a MoU was entered into with M/S Shell Gas and Power Developments for identification and evaluation of potential coal gasification opportunities in the state. 

In what could be termed as another achievement in energy sector is the knowledge partnerships agreements with some of the world's best companies and institutions. Gandhinagar based Pandit Deendayal Petroleum University has tied up with for sharing advancements in technologies and management knowledge with USA's Florida University and also with ACRi institution of Los Angeles for enhancing scientific & academic cooperation."

Gujarat has been in the forefront of implementing environment friendly initiatives through state owned companies as also with private sector participation. From the traditional high cost coal based plants to the newer combined cycle gas based plants and renewable sources like biomass, solar, wind and tidal energy, the emphasis is on the supply of reliable and quality power to cities and villages alike.

The energy systems based on coal, oil and gas have enormous environmental impacts. Carbon dioxide emissions from use of these fuels will cause large-scale climatic change within a single human lifetime. It is imperative to act now so as to reduce emissions of carbon dioxide; and to protect the people and ecosystems which are most vulnerable to the inevitable climatic change. 


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