Renewable Energy Sector Profile

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1 Renewable Energy Sector Profile

2 India Scenario

3 India s Renewable Energy Basket Break up of the 72 GW Installed Renewable Power (GW, % Share) India is giving a strong push to renewable energy in line with its commitment to cut carbon emissions by 35%. Renewable energy sources to generate at least 40% of power needs by , 2% 9.4, 13% 4.5, 6% 34.3, 47% 23.0, 32% Wind Power Solar Power Small Hydro Power Bio Power Others In line with the Paris Climate Agreement, Ministry of New & Renewable Energy, Government of India announced the renewable energy target of installing 175 GW capacity by India is set on track to achieve the target earlier than planned & the target for 2022 has now been set to 227 GW. India stand 5 th in terms of renewable energy capacity with an installed capacity of 72 GW with another 40 GW under development. India has targeted to become amongst the top 3 countries globally by Renewables (Excluding large hydro power projects) accounts for 72 GW out of the total 332 GW installed power capacity which is approximately 21.7%. 27 GW has been added only in the last three years. India is now coming up with new schemes for Floating solar & offshore wind power projects to diversify. India is taking a leading role in the formation of an International Solar Alliance (ISA) with 121 countries. Source: MNRE-GoI, IBEF, EPD-GoG 3

4 Wind Energy India has become the worlds 4 th largest wind producer with an installed capacity of GW & projects under development for another 14 GW. A low tariff of US $ 0.04 /unit has been achieved through transparent bidding & adequate facilitation from the government GW out of the GW of wind energy has been installed only during the last three years. India saw the largest ever wind power capacity addition of 5.5 GW in exceeding the target by 38%. The most promising sites are in the west and south, with around 90% of the potential in the states of Tamil Nadu, Andhra Pradesh, Madhya Pradesh, Karnataka, Maharashtra and Gujarat Source: MNRE-GoI, IBEF, EPD-GoG; 1US $= INR 65 4

5 Solar Energy India has become the worlds 6 th largest Solar producer with an installed capacity of 21.8 GW including 1219 MW from Solar roof top & projects under development for another 33 GW. A low tariff of US $ 0.04 /unit has been achieved through transparent bidding & adequate facilitation from the government GW out of the 16.6 GW of Solar energy has been installed only during the last three years with the biggest ever capacity addition of 5.5 GW added in National Solar Mission Solar Lighting Over 4 million solar lighting systems are operational in the country with approx. 2 million being added during the last 4 years. Solar Roof Top 155 MW of capacity has been added between Apr - Jun 18, taking the cumulative achievement to 1219 MW. Solar Parks 35 Solar parks with an aggregate capacity of 20.5 GW have been approved in 21 states. Solar Defense Against a set target of 300 MWs, projects with a cumulative capacity of MW have been sanctioned by defense establishments. Solar Pumps Approx. 142,000 solar pumps have been installed in the country till Nov 17 with approx. 131,000 being installed during the last 4 years. Source: MNRE-GoI, IBEF, EPD-GoG; 1US $= INR 65 5

6 Biomass Energy A total of 9.4 GW grid connected capacity has been installed in bio energy in India. Biomass power includes installations from biomass combustion, biomass gasification and bagasse co-generation. The total number of biogas plant installations in the country is approximately 5 million. Family type biogas plants mainly for rural & semi-urban households are set up under the National Biogas & Manure Management Program. With government s ambitious green energy targets, the sector has become quite attractive for both foreign & domestic investors. GoI launched a National Policy on Biofuels aimed at cutting oil imports. Viability Gap Funding & Tax Incentives are offered for bio refineries. Sugar beet, sweet sorghum, corn, cassava, damaged food grains like wheat, broken rice, and rotten potatoes have now being allowed for production. Source: MNRE-GoI, IBEF 6

7 Central Government Incentives FDI up to 100% is permitted under the automatic route for renewable energy generation and distribution projects Exemption from excise duties on components used in making solar panels A 10-year tax holiday for solar power & biomass power projects Capital & interest subsidies and viability gap funding to make projects economically viable No inter-state transmission charges and losses levied for solar & wind power A green energy corridor, the intra-state transmission system is being implemented across 8 renewable rich states including Gujarat to evacuate 20 GW of energy Special incentives for exports from India in renewable energy technology under renewable sector-specific SEZ Source: MNRE-GoI, IBEF, EPD-GoG; 7

8 Central Government Initiatives National Offshore Wind Policy, 2015 Promotes deployment of Offshore Wind Farms up to 12 nautical miles from coast. Research and Development activities to take place up to Exclusive Economic Zone (EEZ) of 200 nautical miles. Single window clearance is offered. Tax holiday of 10 years for offshore wind generation Repowering Policy Promotes optimum utilization of wind energy resources by creating facilitative framework for repowering. All fiscal & financial benefits offered to new wind power projects will be extended to repowering projects An interest rebate of 0.25 per cent over the interest rebate offered to new wind energy projects will be provided Wind-Solar Hybrid Policy Aims to achieve a hybrid wind-solar capacity of 10 GW by 2022 Hybridization of the two technologies will help in: Minimizing variability Optimal utilization of infrastructure including land and transmission systems Renewable Purchase Obligations (RPO s) RPO is a mechanism by which obligated entities are obliged to purchase certain percentage of power from renewable energy sources. Also, floor prices of the Renewable Energy Certificates (REC) have been set to provide certainty to companies. The floor price has been set at approximately US $ 144 per Megawatt. Source: IBEF 8

9 Gujarat Scenario

10 Gujarat s Renewable Energy Basket Break up of the 7350 MW Installed Renewable Power (MW, % Share) 60.8, 1% , 23% , 76% Wind Power Solar Power Other The State has a total potential of 85 GW in wind energy and 85 GW in solar energy Gujarat contributes approximately ~ 12% to India s Renewable energy basket. Source: MNRE-GoI, IBEF, EPD-GoG; 10

11 Wind Energy Gujarat is the 2 nd largest producer of wind power in India. The state has a strong base of wind turbine & equipment manufacturers. The Centre for wind energy technology, an autonomous R&D institution under MNRE, has identified and approved total 82 Wind Monitoring Stations for wind energy deployment with annual average wind power density greater than 200 W/sq. m. at Met mast height of 20/25/50/80/100/120 meters in Gujarat. Wind power developers Wind equipment manufacturers Source: MNRE-GoI, IBEF, EPD-GoG; 11

12 Solar Energy Gujarat accounts for ~8 % of India s total installed solar power. Gujarat has one of Asia s largest solar park with a capacity of over 750 MW in Charanka. India s largest solar cell and module manufacturer, Adani Solar is based out of Mundra, Gujarat. Adani aims to become a fully integrated solar PV manufacturer. Solar power developers Solar PV manufacturers Source: MNRE-GoI, IBEF, EPD-GoG; 12

13 Biomass Energy The total bio-mass potential for Gujarat is about 1,800 MW from crop residue and about 140 MW from forest residue MW capacity biomass projects commissioned in Amreli, Junagadh and Vadodara MW waste-to-energy power generation projects Institutional biogas plants with capacity m3/day across the state Biomass Energy Companies Source: MNRE-GoI, IBEF, EPD-GoG; 13

14 State Government Incentives 14

15 Government Incentives Solar Power Wind Power Small Hydel Waste to Energy Subsidy of INR 10,000 per kw for installing residential rooftop solar systems at private residences; with maximum limit of subsidy of INR 20,000/- per consumer Support under policy of GoG : Solar Projects with sale of power to DisComs under competitive bidding Solar Projects under REC mechanism with sale of power to DisComs at APPC Solar Projects with sale of power under NSM Solar Projects with sale of power to third party under open-access Electricity generated and consumed for self consumption / sale to third party within the State shall be exempted from payment of electricity duty Support under policy of GoG : Land: Revenue waste 1 hectare per Wind turbine generator on long term lease of 20 years to the Developer at a lease rent of Rs. 10,000 / ha/ year Exemption from demand cut to the extent of 50% of installed capacity of wind power project in case of captive consumption & third party sale within the state. Electricity generated & consumed for self consumption/sale to third party within the state shall be exempted from payment of electricity duty Support under policy of GoG : Exemption from demand cut to the extent of 50% of installed capacity of Small Hydel Project in case of captive consumption and third party sale within the State Electricity generated and consumed for self consumption / sale to third party within the State shall be exempted from payment of electricity duty Support under policy of GoG : Land available to the project developer at token lease rent of Re. 1/- per annum by Municipal Corporation or concerned Urban Local Body (ULB). No tax/cess/royalty/levy to be charged by ULB. Support for Viability Gap Funding Power generated and consumed exempted from payment of electricity duty Exemption from demand cut to the extent of 50% of installed capacity of the Power Project based on Urban Solid Waste Source: MNRE-GoI, IBEF, EPD-GoG, GEDA; GoG - Government of Gujarat 15

16 Investment Opportunities 16

17 Investment Opportunities India Source Commissioned & Under Development Projects (GW) FY 19 (GW) FY 20 (GW) Target by 2022 (GW) Total Potential (GW) Gujarat Source Commissioned Projects (GW) Target by 2022 (GW) Total Potential (GW) Solar Wind Small Hydro Bio-mass Floating solar & Offshore wind Total ,096 India is set to become the 3 rd largest renewable energy produce in the world by 2022 & has set its Renewable Energy Target to 227 GW from the earlier 175 GW. This addition is expected to require another US $ 50 Bn more in investments. India has ranked second in the Renewable Energy Attractiveness Index Solar Wind Small Hydro Bio-mass Others Total Gujarat Electricity Regulatory Commission (GERC) has enhanced the renewable power obligation (RPO) from the current 10 per cent to 17 per cent for the next four years Non-conventional energy has received FDI inflow of US $ 6.26 Bn. Source: MNRE-GoI, IBEF, Business standard, EPD-GoG; 17

18 Investment Opportunities-Wind Power India has a strong manufacturing base of wind power equipment. There are 20 approved manufacturers with 53 models having assorted ratings of wind turbine Generators in MW scale Cost of the wind turbines is substantially lower as compared to Europe or the USA The total assessed wind resource of India goes up exponentially to 600 GW at 120 m from the 320 GW at 100 m. Original Equipment Manufacturing Component Manufacturing Trading Opportunities Business Opportunities Machinery Suppliers Maintenance Service Wind farm Developer Source: MNRE-GoI, IBEF, EPD-GoG; 18

19 Investment Opportunities-Solar Power 60 solar cities will be developed in India as a part of Ministry of New & Renewable Energy s Solar Cities program. India has taken a lead in the formation of an International Solar Alliance (ISA) with 121 countries. Multiple solar parks have been approved in Gujarat under the Solar Park Scheme such as Dholera (5GW), Raghanesda (700 MW) & Harsad (500 MW). Manufacturing Cells and Modules Manufacturing core products Ingots & Wafers Manufacturing BoS Utility Grid Business Opportunities Due to its favorable location in the solar belt, India receives about 300 days of sunshine a year making it the most lucrative destination for Solar installation. Solar installation in India is expected to increase 360 % by 2020 Installation Support & Maintenance services Power Plant Developer Source: MNRE-GoI, IBEF, EPD-GoG; 19

20 Investment Opportunities- Biomass Power Rapid urbanisation and industrialisation over the recent decades has resulted in increased waste generation in Indian cities Waste to Energy (WtE) projects could play a critical role in achieving safe and integrated solid waste management in an environmentally sound, socially accepted, and economically feasible manner. Feedstock producers & processors Biofuel companies Transport services Business Opportunities Installation Support & Equipment Manufacturers & Technology suppliers Power Producers Source: MNRE-GoI, IBEF, EPD-GoG; 20

21 Investment Opportunities- Off Shore Wind Power 1000 MW Offshore wind park is coming up on the coast of Gujarat in Pipavav Cost of the wind turbines is substantially lower as compared to Europe or the USA The total assessed wind resource of India goes up exponentially to 600 GW at 120 m from the 320 GW at 100 m. Manufacturing Cells and Modules Manufacturing core products Ingots & Wafers Manufacturing BoS Utility Grid Business Opportunities Installation Support & Training, Consulting & IT Support Services Power Plant Developer Source: MNRE-GoI, IBEF, EPD-GoG; 21

22 Success Stories from Gujarat 22

23 Charanka Solar Park Charanka Solar Park is being built on a 2,000-hectare (4,900-acre) plot of land near Charanka village in Patan district, northern Gujarat This hosts about 32 different projects by different developers with generating capacity of 600 MW. When fully built out, the Charanka Solar Park will host over 750 MW of solar power systems using state-ofthe-art thin film technology. The investment cost for the Charanka solar park amounts to approximately US$650 million. The integrated "Solar Park" has state of art infrastructure with provision to harness rain water besides power evacuation at the door steps. Source: MNRE-GoI, IBEF, Business Standard, EPD-GoG; 1 US$= 65 INR 23

24 Model Solar City Project- Gandhinagar Government of India declared Gandhinagar as a Model Solar City setting example for Solar Cities throughout India and other nations Total installed capacity on government buildings, Gandhinagar is 10 MW which contributes about 5.3% of the total Energy demand Out of the total 10 MW installed capacity, 4 MW is SPVbased grid-connected power generating rooftop systems at government buildings Program aims at minimum 10% reduction in projected demand of conventional energy at the end of 5 years Source: MNRE-GoI, IBEF, EPD-GoG; 24

25 Solar Rooftop Programme: RENT A ROOF 4.9 MW solar rooftops have been setup in Gandhinagar as part of the Model Solar City Project on Government Buildings which contributes 5.23% of the total consumption of the Gandhinagar city 324 locations have been covered in Gandhinagar including 270 households and 54 Government Buildings The programme has been replicated in Vadodara too where solar rooftops with capacity of ~4 MW are setup. The owner of property is paid a Green Incentive on the basis of units (kwh) of electricity generated by the SPV system installed on the property Gandhinagar & Vadodara Solar Rooftop Programme This Programme provides an opportunity to property owners in Gandhinagar City for participation by offering their rooftop or terrace for installation of Solar Photovoltaic System for solar power generation Source: MNRE-GoI, IBEF, EPD-GoG; 25

26 World s First Canal Top Solar Power Project TECHNICAL DETAIL Projected energy production: 1.6 million units/year/mw Irradiation: kwh/m2 Installed capacity: 1 MWp Technology: polycrystalline solar modules, 280 Wp Number of modules: 3616 Canal length used: 750 m Power evacuation system: 11 KV Gujarat has initiated the world s first canal-based solar power project on Narmada branch canal new Chandrasan village of Mehsana district INNOVATIVE IDEAS Cover the canal with Solar Panels to Save 5 acre per MW Minimize evaporation from canal (9 million liters water saving per MW per year) Produce eco-friendly power Shadowing effect of panel results in reduced photosynthesis and less algae growth leading to less maintenance cost Pilot Project is for 1 MW Source: MNRE-GoI, IBEF, EPD-GoG; 26

27 Thank you