India has agreed to pay Rs 45,000 crore for the March quarter to state-owned fuel retailers as compensation for selling products at cheaper government-set rates, officials at these companies said on Thursday.The decision, taken on Wednesday, 22 May 2013, has not yet been formally intimated by the finance ministry, but the current tranche will enable the companies to report quarterly profits at their earnings next week, officials at the three companies, who declined to be named, said.The central government partially controls diesel prices and fixes retail prices of liquefied petroleum gas and kerosene to protect the poor, leading to revenue losses at state-run Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL).The three retailers are estimated to have run up total revenue losses of 1.6 trillion rupees in the fiscal year 2012-13.Of this, the finance ministry will pay about 1 trillion rupees by way of cash subsidies while the balance will be borne by state-run upstream companies - Oil and Natural Gas Corp, Oil India Ltd and GAIL (India) - in the form of discounts on sale of crude oil and associated products.India has allowed state-run retailers to gradually raise diesel prices since January, in an attempt to prop up public finances, and has also capped annual sales of subsidised cooking gas cylinders.(Reuters)
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Finance Ministry on 22 May' 2013 agreed to dole out a record Rs 100,000 crore towards diesel and cooking fuel subsidy in 2012-13 but wants pricing formula to be changed from current year to cut down the outgo. Finance Ministry, which had previously given out cash subsidy of Rs 55,000 crore, agreed to give Rs 40,000-45,000 crore more to cover for unmet revenue losses on fuel sale in the fiscal year ending March 31, 2013. The agreement was reached during a meeting Prime Minister Manmohan Singh had with Finance Minister P Chidambaram and Oil Minister M Veerappa Moily here today. "It has been sorted out," Moily told PTI after the meeting. Oil Ministry had been pressing for early release of the remaining subsidy of 2012-13 fiscal as retailers Indian Oil, Hindustan Petroleum and Bharat Petroleum have to close accounts by month end. "We have to get unmet under-recoveries and thats why we met," he said on the meeting. The three retailers in 2012-13 lost Rs 161,029 crore on selling diesel, domestic LPG and kerosene at government controlled rates which are way below market price. Of this, the government has provided Rs 55,000 crore by way of cash subsidy and about Rs 45,000 crore was made good by upstream firms like ONGC. There remained an unmet under-recovery or revenue loss of about Rs 60,000 crore. Upstream firms are expected to chip in another Rs 15,000 crore and the rest had to come from Finance Ministry. "The Finance Ministry has agreed to meet the under- recoveries. The issue has been sorted out," Moily said. In 2011-12, when oil firms lost Rs 138,541 crore in revenue on fuel sales, the government gave out Rs 83,500 crore by way of cash subsidy. This was more than Rs 41,000 crore in doled out in 2010-11 and Rs 26,000 crore in 2009-10. Upstream firms had provided for about 40 per cent or Rs 55,000 crore of the under-recovery in 2011-12, up from Rs 30,297 crore in 2010-11 and Rs 14,430 crore in 2009-10. Moily said issue of changing fuel pricing norm to export parity has been referred to an expert panel led by Kirit Parekh. The Finance Ministry wants petrol and diesel to be priced at a rate they can get in export market, rather than current practice of pricing the fuels after adding transportation and customs duty to the international price. The difference between the Export Parity Price (EPP) being propagated by the finance ministry and the currently in vogue Trade Parity Price is about USD 3-4 per barrels. "This is a matter referred to Kirit Parekh committee. We are to decide on the issue after receiving report from them," he added. Changing to EPP pricing is likely to help Finance Ministry save about Rs 18,000 crore of subsidy. The change is being opposed by the oil industry which says they pay customs duty on importing raw material (crude oil) and naturally should be allowed to charge the same on products they sell. Sources said that private refiners like Reliance Industries and Essar Oil are also likely to get hit if export parity prices are implemented. RIL may take a hit of Rs 2,500 crore on the 10.5 million tonnes of diesel it sells to state-owned retailes while Essar's profit may be dented by Rs 1,860 crore on 7.5 million tonnes of diesel it sells. Private refiners, they said, feel that if they are to get export parity price, then they might as well set up an export-oriented unit (EOU) or a SEZ refinery, sell the fuel in overseas market and avail of tax benefits like 7-year holiday on payment of income tax and duty free imports and exemption from payment of excise duty. These refiners have in no uncertain terms told the public sector fuel retailers that they will not sell auto and cooking fuel at EPP. (PTI)
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Tata DOCOMO has announced on 21 May, that it has entered into an exclusive partnership with GMR Airports, a global leader in creating world class private Airport infrastructure, to offer high-speed Wi-Fi services at Indira Gandhi International Airport - Terminal 3 in Delhi and Rajiv Gandhi Hyderabad International Airport, Hyderabad. The coming together of Tata DoCoMo and GMR Airports, both leaders in their respective fields, is a natural alliance of two partners renowned for breaking new ground and is a first-of-its-kind partnership in India that will cover entire airports including private airline lounges.Passengers transiting through the airport will be able to access the free Wi-Fi services for a specified time, after which the passenger can continue to avail Wi-Fi services by paying for it online. This service allows international passengers to connect to the Wi-Fi services by using their relationship with their home Mobile / Broadband service provider.Reliance Digital Enhances Focus On Technology Solutions Reliance Digital, the electronics arm of Reliance Retail, has introduced a differentiated technology experience for consumers through its new concept stores, Digital Xpress. With three new Digital Xpress stores in Mumbai at Bhandup, Bandra and Prabhadevi, Reliance Digital now focuses on delivering solutions that cater to the emerging entertainment and technology needs of today’s consumers.Reliance Digital Xpress has been designed to create awareness about the latest technological advancements and bring solutions that allow consumers to optimize the utility of their devices and ensure peak performance. Reliance Digital Xpress will help users discover technology solutions for their daily needs that ensure unlimited entertainment, allow them to work better, create functional home solutions and enhance social networking capabilities. All this is made possible by leveraging Reliance Digital’s specialized service support division, ResQ. ResQ has built an enviable reputation and capability to understand and deliver solutions according to consumer needs. Our expert ResQ geeks will offer guidance to customers, demonstrate a solution and help them with installation and networking.The Digital Xpress stores house latest gadgets including smart phones, ultra books, HD speakers, music players, smart TVs and many more such gadgets which make a better lifestyle. Consumers can also learn how to integrate their latest electronic and wireless devices, use video calling from their latest gadget, how to stream movies directly from the cloud or how to use high-tech camera enabled intercoms. The well-trained team at Digital Xpress stores will help to solve any queries and guide consumers through the process of choosing the most apt option that matches their requirements.Le Studio de MONIN In IndiaMONIN, a world leader in gourmet syrup manufacturing and one of the most renowned beverage brands launches its first ever flag ship studio - Le studio de Monin in India under the aegis of Ashish Dubey of Saksham Impex, their trusted partners and exclusive importer since its launch in India in 2003. Located at Golf course Road, Gurgoan, the studio will be a hub of ultimate creativity for Monin customers in B2B space, and will highlight MONIN‘s vision in engaging with its customers. Ashish Dubey, MD - Saksham Impex, “Our vision is to provide excellent service to our patrons and be the preferred distribution partner for our customers by constantly bringing in new products that the industry demands.”With over 100 years of experience, MONIN has become the brand of choice of the gourmet flavour business with over 140 flavours available in more than 140 countries, including the widest range of Premium Syrups, a large assortment of Exclusive Liqueurs, Gourmet Sauces, Frappé Powders, and Fruit Smoothie & Cocktail Mixes. Tasteful and versatile, MONIN answers customers’ expectations for quality, flavour uniqueness, and newness in all applications.Olivier Monin, President – Monin, “Leadership through continuous innovation is our prime motto. We aim to be the most preferred supplier beverage industry and offer solutions not only to the key customers, but to standalone operators who cannot invest in their own R & D.”Nokia Siemens Networks Liquid Broadband Brings Video Optimization SolutionWith mobile video traffic expected to more than double every year until 2015, operators need a new and effective way to satisfy growing demand for network and service quality. Nokia Siemens Networks is launching a combined video optimization solution that delivers a high quality video experience while simultaneously reducing radio network loading by up to 25 per cent. By combining the capabilities of Flexi Content Optimizer, policy management and new real-time congestion awareness, which is unique to Nokia Siemens Networks, operators can match video quality to each user's device.Flexi Content Optimizer adjusts video content and re-scales video streaming to match the smartphone screen size. Users enjoy the best quality video that their smartphones and tablets can support, and because less data is transferred, there is less pressure on radio network capacity. This translates into more efficient use of radio network resources, and lower transmission costs and network investment.Real-time congestion awareness enables the network to react instantly when a base station becomes heavily loaded. Video optimization then ensures that the operator’s most valuable subscribers in a specific location enjoy the best video quality. PE Experts Share Their Views With Entrepreneurs At – Start-Up Summit 2013Franchise India holdings limited hosted its 61st Franchise & Retail show FRO Expo and Startup Summit 2013, the two day show was presented by Franchise India in association with the ministry for MSME and Indian Franchise Association.The discussion started from “The start up eco system, emerging business opportunities in 2013, business of retail, funding challenges and marketing to attract the customers.” PE experts from Everstone Capital, Gilt Edge Financial, Proteus Advisors and Milestone Religare addressed budding entrepreneurs on what VC’s and angel funding companies look for in their business and how they value their business, comprehend how a typical funding deal works out in terms of the processes and how to raise seed or venture capital and do a detailed study of the investors background.Sachin Marya, President, Franchise India Holdings stated, “At Franchise India, we are paving the way for entrepreneurship to uphold India’s economic development as well as curb the country’s problem of unemployment. Our vision is to help aspiring entrepreneurs discover the right business potential to meet their financial goals and business visions, however conservative or grandiose. The Mumbai FRO highlights the fact that franchising may be the way forward with the retail and consumer services sectors being diversified both by consumption demographics and by enthusiastic investors.”
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Over 15,000 MW gas-based capacity is stranded in the country due to non supply of natural gas from RIL's KG basin. "The total capacity of gas-based stations in India is 18,830 MW of which 15,529 MW is fed with gas from RIL. That (15,529 MW) is idle as there is no gas available from RIL, " an official told PTI. The gas-based capacity which is lying idle due to want of fuel comprises central, state as well as private power plants. Six of NTPC's seven gas-based power plants have zero gas available with them. The country's largest power producer's total gas-based capacity stands at 3,955 MW of which 3,605 MW is stranded due to lack of fuel, he said. As many as 37 power stations in the country, which have tied up 33 MMSCMD (million standard cubic metres per day) gas from RIL's KG basin have nil fuel at their disposal, the official added. The are 55 gas-based stations -- 14 (Andhra Pradesh), 12 (Gujarat), 6 (Tamil Nadu), 5 (Assam), 4 each in Delhi and Tripura, 3 each in Rajasthan and Maharashtra, 2 (Uttar Pradesh) and one each in Haryana and Puducherry. All the 4 power gas-based power stations in capital Delhi are not receiving gas from RIL. As many as 10 power stations in Gujarat, 7 in Andhra Pradesh are also stranded for the same reason, the official said. Private power generation company GMR Energy's 220 MW plant at Kakinada in Andhra Pradesh has also not received supply from RIL, he said. The beleaguered Ratnagiri project in Maharashtra with a capacity of 2,220 MW did not receive any natural gas from KG Basin, he added. The supplies from KG-D6 block to power plants were snapped in March this year after output from the eastern offshore fields dropped to an all-time low.(PTI)
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Essar Oil Ltd will sign a $1 billion loan deal with China on Tuesday that sources with knowledge of the matter said would be backed by supply of refined products to top state oil producer PetroChina.Essar Oil could sign a preliminary agreement with China Development Bank (CDB) on Tuesday to borrow that amount during Chinese Prime Minister Li Keqiang's visit to Mumbai, his first foreign trip, the sources said.The Indian firm, controlled by billionaire brothers Shashi and Ravi Ruia, has been replacing its rupee debt with lower-cost, overseas loans and has so far refinanced $481 million."As part of our initiative to dollarise our debt, we have been in discussion with several international banks, including Chinese banks. CDB is part of that conversation," Essar Oil said in a statement on Monday in response to an article in a business daily. It declined to confirm the deal.The group hopes to refinance another $1.8 billion within the next three to six months, Essar Oil Chief Executive L. K. Gupta had said on 10 May.Details on pricing of the products and how shipments would be credited against the loan still need to be worked out, the sources said.The deal could also signal a long-term tie-up on crude supplies, with Essar looking to take ultra-heavy Latin American crude from PetroChina, one of the sources said.Crude oil producers in Latin America have been scouting for new buyers in Asia as the U.S. shale oil and gas boom has reduced demand for their heavy and ultra heavy crudes.Essar has previously purchased Castilla crude from China National United Oil Corp, or Chinaoil, and Ecuador's Napo crude from Petrochina, trade sources said. The Indian refiner aims to meet about 30-40 percent of its oil needs from Latin America, Gupta said earlier this month."We have been sourcing a significant portion of our crude from Latin America. PetroChina is a strong player in this region and will thus continue to be an important trade counter party for us," Essar said in its statement on Monday.Essar Oil, India's second-largest private refiner with a 405,000 barrels per day refinery at Vadinar in western India, is majority owned by London-listed Essar Energy.(Reuters)
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Oil Ministry has moved a Cabinet note to raise the price of natural gas produced by state-owned ONGC and OIL as well as private firms like Reliance Industries to $6.7, less than $8-8.5 hike previously expected. In a note for the Cabinet Committee on Economic Affairs (CCEA), the ministry has proposed raising gas price for state- run firms immediately and that for RIL from April 2014, sources privy to the development said. ONGC/OIL and RIL currently get $4.2 per million British thermal unit as the price of natural gas. The ministry wants Rangarajan Committee recommendation of pricing domestically produced natural gas at an average of international hub prices and cost of imported LNG instead of present mechanism of market discovery be accepted with a minor modification. Instead of Rangarajan panel's suggestion of calculating gas price every month, the ministry has proposed notifying the gas price on a quarterly basis. The gas price based on average of April-June rates would come to $6.775 per mmBtu, much less than doubling of rates previously expected. Sources said the hike in natural gas price by $1 would result Rs 3,155 crore per annum hit on fertiliser plants for producing 23 million tons of urea this fiscal and Rs 4,144 crore a year for 32 million tons of urea production from 2017-18. The impact of every US dollar increase in gas price would be about Rs 10,040 crore per annum on the power sector for 28,000 MW of electricity generating capacity. Sources said ministry wants the pricing formula proposed by the panel to apply to all forms of natural gas - conventional, shale and coal-bed methane (CBM). Also, the price determined shall be applicable to all consuming sectors uniformly. They said it wanted the new pricing guidelines to apply from 2013 itself on all domestically produced gas barring cases where it is either governed by a definite formula prescribed in the Production Sharing Contract (PSC) or the government had previously fixed a tenure for the same. This essentially meant that RIL would get the new price only from April 1, 2014 upon expiry of the fixed five-year term of current rate of $4.205 per mmBtu. State-owned Oil and Natural Gas Corp (ONGC) and Oil India Ltd (OIL) can, however, get the new rates this year itself for gas they produce from fields given to them on nomination basis by the government. Gas from nominated fields, called APM gas, was last revised in June 2010 to $4.2 from $1.79. The Rangarajan panel suggested rates may also not apply to BG Group-operated Panna/Mukta and Tapti fields in the western offshore as the current rates of $5.57-5.73 per mmBtu for the fuel produced from these are derived from a pre-defined formula detailed in the PSC. However, Cairn India's eastern offshore Ravva gas, which is currently priced at $3.5-4.3 per mmBtu, may be revised as per the committee recommendations. The gas price hike proposed falls short of what RIL and its partner BP plc of UK have been seeking. They want domestic gas prices to be freed and benchmarked to the rate at which gas in its liquid form (LNG) is imported into the country. Liquefied natural gas (LNG) currently is imported at about $14 per mmBtu. Sources said the ministry said the Rangarajan panel report needs to be accepted so that domestically produced natural gas prices are fixed in a fair manner and in a way that incentivises production. The panel had suggested taking a weighted average of the US, Europe and Japanese gas hubs or market price and then averaging it with the net imported price of liquefied natural gas (LNG) to give sale price of domestically produced gas. The Rangarajan Committee suggested averaging volume- weighted price of gas at US's Henry Hub, UK's NBP and Japan Customs Cleared prices for the trailing 12 months with the the net price that producer got from exporting LNG to India on a long-term contract. Previously, RIL had from April 2014 wanted to price KG-D6 gas at the rate India pays for importing LNG on a long-term contract from Qatar. India pays 12.67 per cent of the international oil rate plus $0.26 per mmBtu to Qatar. At $100 per barrel oil rate, this translated into a gas price of $12.93. The panel headed by C Rangarajan - Chairman, Economic Advisory Council to the Prime Minister - also suggested gas-on-gas competition after five years.(PTI)
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Opening up the prospects of export of shale gas to energy starved India, the US on 17 May granted conditional authorisation to export domestically produced liquefied natural gas (LNG) to nations that do not have Free Trade Agreement (FTA) with it.In a decision, which has major implications for India, the Department of Energy announced that that it has conditionally authorised Freeport LNG Expansion, LP and FLNG Liquefaction, LLC (Freeport) to export domestically produced LNG to non-FTA countries from Freeport Terminal on Quintana Island in Texas.Given that the companies from countries like China, Japan and Britain have already have an overwhelming stake in this Texas company, India is unlikely to benefit immediately from this grant of license.But the decision paves the way for India, which does not has a FTA with the US, to get its companies seek similar licenses for import of much needed gas from the United States in large quantities from other terminals.The existing federal law generally requires approval of natural gas exports to countries that have an FTA with the United States.For countries that do not have an FTA with the United States, the Natural Gas Act directs the Department of Energy to grant export authorizations unless the Department finds that the proposed exports "will not be consistent with the public interest." In its 132 page order, the Department of Energy said that the proposed exports are likely to yield net economic benefits to the United States."We further find that granting the requested authorization is unlikely to affect adversely the availability of natural gas supplies to domestic consumers or result in natural gas price increases or increased price volatility such as would negate the net economic benefits to the United States," it said.Freeport facility in Texas, the Department of Energy said, is conditionally authorized to export at a rate of up to 1.4 billion cubic feet of natural gas a day (Bcf/d) for a period of 20 years.(PTI)
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The world is getting hotter but we still have not figured out how to implement solar energy in our cities and use it for industry. However, there are some who have spent over forty years turning this dream into reality. Dr Charles Gay, President of Applied Solar at Applied Materials, a $8.7-billion semi-conductor company, grew up poor in a farm in California where they had to burn wood to cook. At school, he figured out the world has to be independent of oil and has spent his lifetime on solar research. Solar apart, he has participated in civil rights movements for black people in the early sixties. He believes India can leapfrog a generation on solar which could be set up on home rooftop and can then supply power to the grid. This movement he feels can create a future of cities. However, he warns there there are too many stakeholders when it comes to commercialising solar power and says they should get together to make solar a reality. Even in countries like the USA where the total installed capacity is 1050.9 GW, less than 1 per cent of the power requirements come from solar. India has a total electricity generation capacity of 211,500 MW, of which less than 1 per cent is solar power. Gay talked to BW|Businessworld's Vishal Krishna about how Applied solar manufacturing cells and wafers for solar panels fit right in to markets like India, which plans to have 20 GW solar power by 2020. Excerpts of the interview: Where do we begin, the world is thinking solar, but can it be a viable proposition?There are jobs (created) to make raw materials, jobs to make the equipment, jobs to make the solar panels, jobs to install the solar panels, jobs for the electronics and the maintenance. It’s a win-win situation. For the environment, it’s a good clean energy source, for global economies it means creation of jobs. It is an exciting time for solar because of this convergence of recognition of the importance of sustainable climate considerations along with economic competitiveness. There are basically three application segments – a home rooftop, a commercial building rooftop, and power plants. So, in the US, many of the power plants range in size from 200 to 700 megawatts. A coal burning power plant is usually 700 megawatts in size. In the US, some of the solar power plants that are being installed are the same in size. People usually meet their own energy need with their own solar panel on rooftops. There are examples of communities today in Davis, California -- which is near the state capital Sacramento -- of zero energy communities. These are communities that can generate the electricity that they need for their own corporate quality of life. Here in India, the commercial building application is a very good one. You know people work in offices in the daytime and they like to have air-conditioning or at least ventilation and fans, lighting, so there’s a perfect match between when the sun is shining and when people need the energy in a commercial building. So companies like Tata Power have very good business models for providing electricity through solar and they can provide the electricity at a price less than the grid; and of course make it reliable, so you have the electricity 24 hours a day or whenever you might need it in a very reliable way, which is very helpful.Are there companies in India that have created sound business models out of solar in India?Yes, there are quite a few companies like Moser Baer, ITC’s Wimco and the Yash Birla that have initiated various kinds of businesses that will facilitate solar power generation. This is a very interesting time in many ways. There’s a good parallel, I think, between the evolution of solar and the evolution of automobiles. Automobile industry, in the USA, had thousands of companies with different ideas which eventually consolidated to a few companies. Looking back, is something like that going to happen in solar?That was a very exciting time of innovation and creativity around manufacturing of automobiles, the creation of infrastructure and also the commissioning of manufacturing units for automobiles. As time passed, these thousands of companies narrowed down to a dozen or two companies globally. But they created lots of jobs, lots of manufacturing jobs and with the scale of cost coming down, many people could afford automobiles. Also, it was representative of autonomy, some independence in a way where people could choose where to go and when they wanted to go there. Imagine if you could do this with electricity, in a certain sense having your own electricity provides you to choose what you want to do with it and how well to use it. Yes India and China are becoming economically powerful and with the quality of life improving, a large fraction of the population are looking for self-reliance. So in many ways, kind of along the lines of Gandhiji’s message to all of us to be self-reliant, being able to provide for our needs. In India solar can actually create self-reliance in rural areas. Bringing electricity to individual homes, you can have a TV or radio or light, this gives young people an opportunity to learn. Here in Bangalore, I don’t know if you are familiar with a company called Selco. Harish Hande is a world recognised innovator for his business models for rural electrification, and he’s very creative. He’s done things like put solar on schools and when kids come to school he makes it possible for them to bring a small light that they can charge while they are in school and take back the lamp to study with at night. And I have for many years now, say for more than 15 years, have a foundation that I run called Greenstar which focuses on rural electrification. We go to villages and install solar-powered community centres. One of the first we did in India was a pilot programme in Hyderabad in 1997 and basically made it possible for village tailors to use solar to run, basically convert treadle sewing machines to electric sewing machines, with the solar panels. Is solar more of an experiment in rural regions?Yes, a lot of this is small entrepreneurs who aren’t seeking self-recognition or promotion but who are really very creative in being able to use electricity effectively all the way from the rural village to your large urban power plants now. It is a lesson to learn from them as solar brings a good balance into the grid. Typically in a utility network system, 40 per cent of the capital would be in the coal burning power plant, 60 per cent is the wire cost, and if you can put power along the length of the wire, you don’t have to add more wire. You can use the existing infrastructure far more cost effectively. So innovations are possible depending on the goals of the state electricity board, for example, the relationship that entrepreneurs can create with government infrastructure. So this is a time of great innovation, a time of business innovation, a time of technology innovation that is coming together.What about the USA, where is solar heading?The US has tremendous wind reserves that more or less go north to south from the middle of the country, so from Texas to North Dakota, say kind of like a wind valley for America, and in Texas a major project is under way that has an average price of electricity at 6 US cents a kilowatt hour, combines wind and solar. This 600 megawatts of wind and 400 megawatts of solar is being installed, and so in combination it’s a very good matching of the resource, and Texas is famous in the US as kind of a unique state, and very independent, and so they have their own utility wire system that can easily make good use of this hybrid of wind and solar to bring costs down even more. Policy is incredibly important especially for the smart grid for making information transparent. Knowing where’s the power needed, when is it needed and then you can use weather forecasting very effectively here to model how much you know if it’s going to be. You can gauge whether it is hot tomorrow and I need extra power, whether I can plan for it. Again we need to utilise the entire infrastructure more effectively, and there’s a very strong tie between weather and energy consumption for example. In the US, the government has created what is called the investment tax credit, different governments have different financial instruments that they made use of. So in the US the investment tax credit has made it possible for new business models to come and these companies are raising money. Recently there was a public offering of a company called Solar City. Similarly, there are home solar companies called SunRun, and Sungevity. These businesses will install solar on your roof and sell you electricity at a price less than the utility price for electricity in exchange for getting to use your roof. They connect to the grid, so in Europe and Japan there’s what’s called a feed-in-terra, this means if you put solar on your roof and you send the electricity into the grid and you are paid a fixed price for that energy guaranteed for 20 years. So it is important to maximise energy delivery and it is possible to work closely with banks to have access to finance and to be able to utilise the feed in terra basically as an investment. Will the next two decades be the time for solar energy?Solar is low risk and low project risk as well, unlike traditional coal and gas plants. In electricity generation, usually there’s time to get a permit and time for construction costs before any cash flow happens. In solar, the time from defining a project to cash flow is extremely short, so on a cash flow basis solar is becoming far more prevalent because the risk of construction delays and unknown risks and questions whether this will work or not are reduced so much. The time to money is reduced so much that in Europe, which is a better example, the majority of the new power generation is solar. Increasingly in the US a large fraction of new generation is solar, coal burning power plants are near the end of their life in the US, which are well over 40 years old, and now many of them don’t meet the environmental control requirements, and are either being replaced with gas turbines or with solar.
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