Renewable Energy Market Updates

Transcription

1 India s Largest REC Trading Company Renewable Energy Market Updates Vibhav Nuwal April 2017 Bangalore New Delhi Mumbai Chennai Hyderabad Indore Jaipur

2 Key trends in Renewable Energy Industry Ambitious target for RE Falling prices Increasing complexity of markets and regulations Increasing % of RE in the grid 2

3 Ambitious targets for RE India s Renewable Energy target is 175 GW by the year To achieve this target, a average of 21.7 GW capacity needs to be added on an yearly basis for the next 6 years. 3

4 Falling Prices Solar Power Capital Cost/ MW 4

5 Solar tariff in recent months 5

6 Increasing complexity....of markets Options available: Power exchanges Open access Renewable energy Roof-top Auctioning vs FIT...of regulations Regulations to comply with: RPO Energy efficiency Forecasting & scheduling Changes on the horizon: Electricity Act Renewable Energy Act 6

7 Case study - Changing power mix Before Changing power mix over time After 7

8 Increasing % of renewable energy in the grid Installed Capacity (MW) RE as % to total

9 What is RPO? RPO refers to regulations that require large consumers/ distributors of electricity to consume a certain minimum percentage of electricity from renewable sources Requires Consumption of Renewable Energy State RPO laws have been in place for a few years Have not been enforced due to lack of options to comply That hurdle has now been removed with the introduction of Renewable Energy Certificates (more on this later) RPO applies to: Distribution Licensees Captive Generators Open Access consumers Slight variation in some states 9

10 Context of RPO regulations Electricity Act 2003 specifies RPO requirements Objective is to encourage RE investment and spread the burden across the country rather than in a few states India s commitments towards greenhouse gas reductions at the international stage Commitment to reduce carbon intensity by 20-25% by 2020 Several programs launched a result. RECs and EE markets are part of that 10

11 Renewable Energy Certificates in India 11

12 What are RECs? RECs are similar to carbon credits they are tradable and are be available to RE power producers They are be traded domestically Electricity distributors and captive generators have legally binding obligations to consumer RE Power (or RECs) 12

13 Decision framework Purchase RECs Consumer Invest in RE capacity Procure RE power from third parties 13

14 REC Market Existing REC inventory as on March 31st 2017: 1,78,34,679 14

15 Energy Efficiency Markets 15

16 Energy Efficiency Markets Demand of ESCerts is likely to be low; sporadic Price of ESCerts will play a key role in the market 16

17 Proposed Changes in the electricity act 17

18 Proposed Changes in the electricity act 18

19 Impacts of changes in the energy act 19

20 about 20

21 The Ecosystem & Engagements - REConnect Energy Ministry Regulator Renewable Conventional Transmission Distribution Consumer Investor Relations Policy Research Transactions Mgmt. Predictive Analytics Weather / Energy Data 450+ Clients, 5 Grid Operators 21

22 Office Utility Scale Predictive Analytics Service Portfolio Transactions Mgmt. Wind/Solar Forecasting & Scheduling 43% RE Transactions Management 3 GW Predictive Analytics 70% Wind/Solar/Demand Forecasting 90 GW Largest in India 22

23 Ram Kumar, 12Y Work Exp. in Business Dev. Madhusudan, 15Y Work Exp. in IT Platforms (MBA: Symbiosis) (MBA: RSM, the Netherlands) Vibhav Nuwal, 15Y Work Exp. in Finance, Energy Vishal Pandya, 11Y Work Exp. in Power Markets (MBA, Columbia Uni) (M.Tech, Power Systems, IIT Bombay) 23

24 Best Indian Start-up, Indo-German Boot Camp (GIZ), Social Impact Lab - Berlin, Germany Top 30 Global Energy Start-ups, NewEnergy Expo-2017, Astana, Kazakhstan Top 50 Indian Start-ups, The Smart CEO , Bangalore, India Best Wind Energy Forecaster of the Year (2014/15/16), Indian Wind Energy Forum Technology Start-up Enterprise of the Year (Energy & Utilities) , 24MRC Network, India Good for India - Digital Energy Solutions, Times Network, Digital India Awards 2017 Top 100 CleanTech Start-ups, Start-up Energy Transition Awards - Berlin,

25 Equity Partner India s First Cleantech Venture Fund An MNRE + IIM Ahmedabad initiative Core Focus To promote innovation in Indian Clean-Tech space with focus on Energy & Renewables Key venture fund partners of INFUSE are... 25