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ENERGY

Great green energy hope for Germany and India

As Germany and India mark 60 years of diplomatic relations, and with trade between the two countries booming, a huge opportunity is opening for the countries to cooperate in the renewable energy sector, argues Vijeta Rattani.

Great green energy hope for Germany and India
India's First Megawatt Scale Solar Power Plant of India. Photo: DPA

Trade between Germany and India is set to top €20 billion this year – no country of the European Union is more important to India for business.

As the Asian giant’s economy continues to grow it creates a seemingly unquenchable thirst for energy – much of which will have to come from renewable sources. And the government is serious about promoting the industry, creating huge opportunities for German industry, seen as a global leader in the field.

The numbers show how much is needed – there are more than 1.2 billion people living in India and a persistent economic growth rate of six to seven percent. The government’s budget report for 2012-13 says India needs to more than double its current installed generation capacity to over 300 gigawatts by 2017 to be able to provide the people and economy with what is needed.

The issue of climate change and reduction of carbon dioxide emissions is firmly on the agenda, leading Indian authorities to look to Germany for cooperation and inspiration.

There are many domestic Indian initiatives, such as the National Solar Mission, established in 2009 to try to tap into the Indian solar power potential of up to 5,000 TWh (terrawatt hours) per annum. And the Indian government is planning to encourage development and attract investment in the renewable field with tax breaks, loans, tax holidays and subsidies for foreign and domestic investors.

Renewable targets still far away

The country has already recorded the fastest growth in renewable energy investment globally, with a 62 percent rise, according to the Renewable Global Status Report, 2012. But renewable energy only accounts for about six percent of Indian power – a far cry from its 2020 target of at least 15 percent. It needs $50 billion in investment for the renewable sector over the coming five years – creating what could be huge opportunities for German firms.

Many German companies are already heavily involved in India, particular in such areas as mechanical engineering, chemicals, automobiles, trading and electric equipment. But there is still a long way to go in the renewable sector.

This is largely due to the fact that the idea of sustainability is not fully established in India, and many bureaucratic and infrastructure hurdles have to be cleared when setting up a company in this field.

Still, the fact is that India’s renewable sector is evolving and growing each day. And the country is making genuine efforts in undergoing a structural shift in its economy towards a green agenda.

Even though the sector can currently be described as volatile and unpredictable, Germany should focus on long-term adaptive and realistic high-tech business solutions to replicate its domestic green success story in India.

Germany is considered a world leader in the renewable sector, and businesses are finding their way to India’s market. It is the obvious partner for India in the energy sector – the two countries must adopt a strategic vision to enable the technical strengths of German science and business to work profitably in the Indian market.

Vijeta Rattani is a DAAD scholar associated with the Jean Monnet Centre for European Studies, Bremen University and PhD student at the Centre for European Studeis, Jawaharlal Nehru University, India.

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BUSINESS

France’s EDF hails €10billion profit, despite huge UK nuclear charge

French energy giant EDF has unveiled net profit of €10billion and cut its massive debt by increasing nuclear production after problems forced some plants offline.

France's EDF hails €10billion profit, despite huge UK nuclear charge

EDF hailed an “exceptional” year after its loss of €17.9billion in 2022.

Sales slipped 2.6 percent to €139.7billion , but the group managed to slice debt by €10billion euros to €54.4billion.

EDF said however that it had booked a €12.9 billion depreciation linked to difficulties at its Hinkley Point nuclear plant in Britain.

The charge includes €11.2 billion for Hinkley Point assets and €1.7billion at its British subsidiary, EDF Energy, the group explained.

EDF announced last month a fresh delay and additional costs for the giant project hit by repeated cost overruns.

“The year was marked by many events, in particular by the recovery of production and the company’s mobilisation around production recovery,” CEO Luc Remont told reporters.

EDF put its strong showing down to a strong operational performance, notably a significant increase in nuclear generation in France at a time of historically high prices.

That followed a drop in nuclear output in France in 2022. The group had to deal with stress corrosion problems at some reactors while also facing government orders to limit price rises.

The French reactors last year produced around 320.4 TWh, in the upper range of expectations.

Nuclear production had slid back in 2022 to 279 TWh, its lowest level in three decades, because of the corrosion problems and maintenance changes after
the Covid-19 pandemic.

Hinkley Point C is one of a small number of European Pressurised Reactors (EPRs) worldwide, an EDF-led design that has been plagued by cost overruns
running into billions of euros and years of construction delays.

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