Climate Change, India's Rise, and a Great Opportunity for Taiwan's Green Technologies

JESSICA LEE（China Productivity Center APO Affairs Department）

Rise of India, Climate Change, and the High Demand for Green Technologies

India, with a population of 1.252 billion in 2013, is currently the world's third-largest carbon emitter and faces challenging issues such as energy shortages and environmental pollution. Prime Minister Modi has been actively promoting universal access to electricity and the development of a modern industrial economy while striving to minimize carbon emissions, thus driving the demand for green energies. According to a research by CleanTechnica, India accounts for 14% of the global solar market demand. Following the Modi administration's policy goal of installing 100 GW of solar power system by 2022, Mr. Pranav Mehta, Chairman of the National Solar Energy Federation of India (NSEFI) and Chairman of the Global Solar Council (GSC), stated that "India has accomplished only 13 GW of solar module installations. To meet the target on time, a demand is expected at 87 GW in the next five years." The current solar module production capacity in India is only 4-5 GW, and its battery production capacity is only 2 GW. The urgent need is prominent for building solar module automation plants and the procurement of raw materials. In the Goods and Services Tax (GST) implemented nationwide on July 1, 2017, the GST rate for solar components is only 5%, significantly lower than the originally proposed 18%. The improved investment environment in India, with simplified reviewing formalities and reduced time and cost has provided a favorable opportunity for Taiwanese enterprises to expand their business in at least 17 provinces in India.

Along with the rapid economic rise, India is embracing innovative technologies to promote transformation. Demonstrative solar energy systems are installed on old government buildings and schools as well as on new buildings with new distribution models. Small factories are also adopting solar power, and rural areas are where solar energy systems are best integrated to alleviate poverty and stimulate innovative green energy generation, storage, and distribution. Modi's goal is to build a world-class renewable energy industry, and the construction of large-scale solar power plants provides great investment opportunities for solar energy companies. Taiwan has advantages in solar energy in terms of the manufacturing and design integration. This is the competitive edge against the low-price but poor-quality products and services from mainland China. The timing is now excellent for Taiwanese companies to launch innovative integration applications in rural areas in India.

India is also grappling with the consequences of global warming and rapid industrialization, which lead to environmental pollution and water resource crisis, all of which are crucial to the well-being of its population. A McKinsey report estimated that the water supply will decrease by 50% in India by 2030, and nearly 100 million people will face severe shortage of drinking water. The latest data from the website "Water" indicates that 770 million people in India lack safe drinking water and 769 million people have no access to sanitation facilities. Rapid population growth and water resource wastage are significant contributors to India's worsening water crisis. India's population will continue to grow and reach 1.7 billion by 2050, meaning enormous pressure on water supply.

According to the latest bulletin from the Central Water Commission of India, the urgent demand for water resources in India has been elevated to the level of national security. The current demand revolves around addressing water scarcity, improving groundwater quality, and treating and recycling of industrial wastewater. The rapid urbanization in India has led to a significant increase in water demand while people in rural areas are faced with severe health issues by relying on underground water for drinking purposes. This situation has compelled the Indian government to pursue active development of water sources and increased demand for water treatment and supply equipment, presenting excellent investment opportunities for the water treatment industry worldwide. India has been identified as an important water-stressed country in the 2016 UN survey on water scarcity worldwide. The estimation is that water treatment and water recycling applications are essential technologies needed in over one-third of the regions worldwide in the future.

The demand for green energy and water resources faced by India presents an opportunity for export of Taiwan’s integrated solutions of solar energy storage and water pollution control. Besides the competitive advantage in solar system integration, Taiwan has made significant progress in factory pollution control over the past two decades and in enhancing water treatment and recycling technologies. This has given us a favorable position in the global water resource market.

Given India's vast territory as the largest country in South Asia with a population of nearly 1.3 billion and 22 official languages, Taiwan, with 97% of its enterprises on the scale of small and medium-sized enterprises, may find it risky for individual companies to explore the Indian market independently. Facing the opportunities and challenges in India, the green technology industry may take an approach of "resource integration". By leveraging the advanced technologies in solar energy systems, energy storage systems, and water resource companies, collaborative efforts may be launched with the Indian government and the private sector on market research, training, and technological cooperation to innovate and promote the application of green technologies. This will allow the relevant enterprises in Taiwan to develop the market in India following the New Southbound Policy by adapting to the trend of climate change, facilitating the transfer of green technologies, seeking industrial collaboration, establishing applicable business models, and achieving mutual prosperity and benefits.

Promoting the Green Economy, Government-industry Collaboration, and Resource Integration for Market in India

To promote the green economy and government-industry collaboration in the opportunities presented by the rise of India, China Productivity Center finds it crucial for our government to expedite industrial innovation and utilize the long-standing collaboration with the Asian Productivity Organization (APO). Both India and Taiwan are founding members of APO and have been engaged in collaboration for over 50 years within the framework along with the 19 member organizations to promote productivity enhancement and industry development.

In response to the wave of climate change and green business opportunities, the APO Center of Excellence on Green Productivity (APO COE on GP) was established in 2013. In 2014, the team of green technology experts (APO COE on GP Green Farming Team) started close collaboration with its productivity counterpart in India, the National Productivity Center (NPC) under the Ministry of Commerce and Industry. They have worked together on policy sharing, technology exchanges, and green technology demonstrations through technical discussions, reciprocal visits, and business model applications.

In 2016, green technology enterprises from Taiwan were formally invited by NPC to join the Center of Excellent in Training for Energy Efficiency (CETEE) at the internationally renowned Dr. Ambedkar Institute of Productivity (AIP) in Chennai, the capital city of Tamil Nadu, following the footsteps of Japan and South Korea. NPC expects the green technology enterprises from Taiwan to provide free-of-charge showcase of their equipment at CETEE, for technical training and practical applications. Through research analysis and course design, placement marketing is practiced for the technologies and equipment from Taiwan so as to enhance product exposure and entry opportunities in India.

Based on the longstanding relationship between CPC and its counterpart, NPC, NPC also continues to assist green technology industries from Taiwan to accelerating its development in India for operation in TECEE in Chennai, for the shared goal of sustainable development within APO. In 2017, NPC has listed solar energy integration and water resources as important areas of technological cooperation. It aims to deepen connections with the central and local governments in India and invite Indian enterprises to promote bilateral collaboration through resource integration. This collaboration includes the need analysis, technical training, and demonstration projects, such as solar energy applications in rural areas and wastewater treatment in factories. The goal is the advancement of green technologies and the creation of sustainable economic growth through the establishment of business models.

Government Resources Utilized for Promotion in India: Introduction to the AIP Center of Excellence for Training in Energy Efficiency (CETEE)

The Center of Excellence for Training in Energy Efficiency (CETEE) is an internationally recognized training institution jointly established by the National Productivity Center (NPC) of the Indian Ministry of Commerce and Industry, the Japanese government, and the industry stakeholders. It is located at the AIP in Chennai, India. The purpose is to serve as a platform for practical training in energy efficiency and theory and application integration. With devices provided by Japan and South Korea, the laboratory facilitates practical training in energy efficiency. NPC regularly organizes training, practical exercises, energy audits, and energy management certification at CETEE.

CETEE represents the collaboration between the governments of India and Japan and the enterprises of green energy technologies, including the Bureau of Energy Efficiency (BEE) of India and the Japanese government agencies such as NEDO, JICA, Sumitomo, Sumikin, and other companies, for constructing and transferring technology equipment and conducting energy efficiency training and certification. CETEE conducts training for over 2,000 government and industrial professionals annually. It also invites close collaboration with Taiwan within the framework of APO for industry engagement, policy advocation, and application of green energy-related technologies using advanced technologies from Taiwan.

In 2015, NPC and Taiwan jointly started the APO India Demonstration Project. Tainergy Co., Ltd. of the Kenmec Group from Taiwan was invited to join effort with operators in Chennai to complete a 20 kW solar system demonstration project at AIP. This serves as a training and utilization model for representatives from India and the international community in the field of energy efficiency, energy conservation, and carbon reduction measures, in the promotion of green technology and the creation of sustainable economic growth through the establishment of business models. In 2016, NPC extended an invitation to Taiwan's energy-efficient and green technology enterprises to have their equipment stationed at AIP CETEE free of charge.