Green Energy

Wind power is now cheaper than coal-based electricity in India – but the industry is worried

This tariff crash comes at a time when India’s wind energy sector is already in the doldrums.

After a steep fall in solar power prices in India, it is now the turn of wind energy.

During an auction conducted last week by the state-run Solar Energy Corporation of India for 1,000 megawatts of wind power installations, tariffs fell to a new low of Rs 2.64 per unit, down 24% from even the previous low of Rs 3.46. The prices are now competitive with the solar energy segment which hit a record-low of Rs 2.44 per unit in May, also during auctions conducted by Solar Energy Corporation of India. Renewable energy in India is now cheaper than coal-based power, which costs around Rs 3.20 per unit.

Earlier this year, the Narendra Modi government had amended the method to determine wind energy tariffs, allowing the market to fix prices rather than having a regulator do it. This new system has led to a slide in prices. “The main reason is simply increased competition,” renewable energy consultancy Bridge to India said in a note referring to the price wars.

This tariff crash comes at a time when India’s wind energy sector is already in the doldrums.

Following the introduction of the new tariff-determination system, the central and state governments – at least until last week – hadn’t conducted any wind farm auctions, leaving companies without a pipeline of projects to work on. Energy distribution firms have also wanted to pull out of previously-signed power purchase agreements, instead pressuring power firms to sell at the newly-discovered low rates for renewable energy. As a result, the sector has seen a sharp fall in new capacity additions in 2017 compared to the previous year.

The slowdown has also driven down wind turbine costs and lowered the expectations of return on investments, resulting in tariff reduction, Sunil Jain, CEO of Hero Future Energies, told Quartz. Based in New Delhi, Jain’s wind farm company has around 500 MW of installed capacity. The availability of more efficient and advanced wind turbines has also helped, Jain added.

While falling tariffs make renewable power more attractive to consumers, it creates risks for investors and lenders, Bridge to India said. Energy distribution companies, which have already signed power purchase agreements at higher rates, will also take a hit. “We believe that the new wind tariffs are too aggressive,” Bridge to India said.

“The viability of these projects would depend on the project execution capability of the firms involved,” CARE Ratings said in a note. “This includes land acquisition to set up projects in areas with grid connectivity.”

This article first appeared on Quartz.

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Relying on the power of habits to solve India’s mammoth sanitation problem

Adopting three simple habits can help maximise the benefits of existing sanitation infrastructure.

India’s sanitation problem is well documented – the country was recently declared as having the highest number of people living without basic sanitation facilities. Sanitation encompasses all conditions relating to public health - especially sewage disposal and access to clean drinking water. Due to associated losses in productivity caused by sickness, increased healthcare costs and increased mortality, India recorded a loss of 5.2% of its GDP to poor sanitation in 2015. As tremendous as the economic losses are, the on-ground, human consequences of poor sanitation are grim - about one in 10 deaths, according to the World Bank.

Poor sanitation contributes to about 10% of the world’s disease burden and is linked to even those diseases that may not present any correlation at first. For example, while lack of nutrition is a direct cause of anaemia, poor sanitation can contribute to the problem by causing intestinal diseases which prevent people from absorbing nutrition from their food. In fact, a study found a correlation between improved sanitation and reduced prevalence of anaemia in 14 Indian states. Diarrhoeal diseases, the most well-known consequence of poor sanitation, are the third largest cause of child mortality in India. They are also linked to undernutrition and stunting in children - 38% of Indian children exhibit stunted growth. Improved sanitation can also help reduce prevalence of neglected tropical diseases (NTDs). Though not a cause of high mortality rate, NTDs impair physical and cognitive development, contribute to mother and child illness and death and affect overall productivity. NTDs caused by parasitic worms - such as hookworms, whipworms etc. - infect millions every year and spread through open defecation. Improving toilet access and access to clean drinking water can significantly boost disease control programmes for diarrhoea, NTDs and other correlated conditions.

Unfortunately, with about 732 million people who have no access to toilets, India currently accounts for more than half of the world population that defecates in the open. India also accounts for the largest rural population living without access to clean water. Only 16% of India’s rural population is currently served by piped water.

However, there is cause for optimism. In the three years of Swachh Bharat Abhiyan, the country’s sanitation coverage has risen from 39% to 65% and eight states and Union Territories have been declared open defecation free. But lasting change cannot be ensured by the proliferation of sanitation infrastructure alone. Ensuring the usage of toilets is as important as building them, more so due to the cultural preference for open defecation in rural India.

According to the World Bank, hygiene promotion is essential to realise the potential of infrastructure investments in sanitation. Behavioural intervention is most successful when it targets few behaviours with the most potential for impact. An area of public health where behavioural training has made an impact is WASH - water, sanitation and hygiene - a key issue of UN Sustainable Development Goal 6. Compliance to WASH practices has the potential to reduce illness and death, poverty and improve overall socio-economic development. The UN has even marked observance days for each - World Water Day for water (22 March), World Toilet Day for sanitation (19 November) and Global Handwashing Day for hygiene (15 October).

At its simplest, the benefits of WASH can be availed through three simple habits that safeguard against disease - washing hands before eating, drinking clean water and using a clean toilet. Handwashing and use of toilets are some of the most important behavioural interventions that keep diarrhoeal diseases from spreading, while clean drinking water is essential to prevent water-borne diseases and adverse health effects of toxic contaminants. In India, Hindustan Unilever Limited launched the Swachh Aadat Swachh Bharat initiative, a WASH behaviour change programme, to complement the Swachh Bharat Abhiyan. Through its on-ground behaviour change model, SASB seeks to promote the three basic WASH habits to create long-lasting personal hygiene compliance among the populations it serves.

This touching film made as a part of SASB’s awareness campaign shows how lack of knowledge of basic hygiene practices means children miss out on developmental milestones due to preventable diseases.

Play

SASB created the Swachhata curriculum, a textbook to encourage adoption of personal hygiene among school going children. It makes use of conceptual learning to teach primary school students about cleanliness, germs and clean habits in an engaging manner. Swachh Basti is an extensive urban outreach programme for sensitising urban slum residents about WASH habits through demos, skits and etc. in partnership with key local stakeholders such as doctors, anganwadi workers and support groups. In Ghatkopar, Mumbai, HUL built the first-of-its-kind Suvidha Centre - an urban water, hygiene and sanitation community centre. It provides toilets, handwashing and shower facilities, safe drinking water and state-of-the-art laundry operations at an affordable cost to about 1,500 residents of the area.

HUL’s factory workers also act as Swachhata Doots, or messengers of change who teach the three habits of WASH in their own villages. This mobile-led rural behaviour change communication model also provides a volunteering opportunity to those who are busy but wish to make a difference. A toolkit especially designed for this purpose helps volunteers approach, explain and teach people in their immediate vicinity - their drivers, cooks, domestic helps etc. - about the three simple habits for better hygiene. This helps cast the net of awareness wider as regular interaction is conducive to habit formation. To learn more about their volunteering programme, click here. To learn more about the Swachh Aadat Swachh Bharat initiative, click here.

This article was produced by the Scroll marketing team on behalf of Hindustan Unilever and not by the Scroll editorial team.