Indo-German Energy Relations Tobias Winter for Exportinitiative Energy, Bangalore, 9 th Oct. 2018
Business Associations, Think Tanks and Initiatives Selection of different Stakeholders from India and Germany who interact with IGEF 2
German and Indian Solar Association Partnership IGEF Support Office brings associations together 3
Make In India Business Support Programme for German Mittelstand and family owned enterprises financed by Govt. of India Knowledge Partner Legal & Tax Partner - India Legal & Tax Partner - Germany Banking Partners Facilitation Partners Incubation Partner Partner Chamber Technology Partner Exhibition Partner Associate Partner Industry Associations 4
How to finance? Publikationen available in German language and free of cost at http://www.export-erneuerbare.de 5
Selection of print media for electricity with focus on RE For more info please click on cover of publication Market studies Bridge to India leader in reports Link and news 6.500 prints to all stakeholder 17.000 prints to all stakeholders 4.000 prints on behalf of IREDA Government of India Get listed! Cost: 1.000 EUR link to more info #prints not known Powerline Directories for Solar and Power 6
Selection of Stakeholders in Govt. and its entities Different stakeholders from GOI and Govt. of Germany attending the different Subgroup meetings 7
Mayor public entities in Indian solar market One minister with huge responsibility and national entities vs. state level entities National Institute Of Wind Energy (NIWE) Solar Forecasting for upcoming Renewable Energy Management Centers Solar measurement Indian Renewable Energy Development Agency (IREDA) Renewable Energy Finance Association of Renewable Energy Agencies of States (AREAS) Network of all State Nodal Agencies to get access to state Solar Energy Corporation of India Limited (SECI) Implementation of GOI projects National Institute of Solar Energy (NISE) Implementation of GOI research projects and capacity development Central Electricity Authority (CEA) Grid code Power planning Central Electricity Regulatory Commission (CERC) Regulator of tariffs for generating companies Grid code Lead in forum of state regulators National Thermal Power Cooperation (NTPC) Largest public power generator 8
Total Utility Scale PV Capacity Market segments and capacities as per September 2018, all figures in MW https://bridgetoindia.com/reports/india-re-map-i-september-2018/ Commissioned 29 EUR/MWh 9
Indo-German Energy Forum founded in 2006 The Leaders underlined the importance of the Indo-German Energy Forum (IGEF) 10
Stakeholder of IGEF Since 2006 IGEF is the platform for dialogue on energy issues for GOI and Federal Govt. of Germany Indo-German Energy Forum Support Office implemented by: 11
Multilateral Stakeholders Multilateral Stakeholders interacting with Indo-German Energy Forum (IGEF) 12
https://bridgetoindia.com/reports/india-re-map-i-september-2018/ Electricity Generation 2017-18 by source (in%) 15% from RE sources, Karnataka State with 20% above IND average Coal 77% 13
Source: MNRE 2016; CEA 2018; IGEF 2018 Development of Indian Utility Power Capacity (in GW) Massive growth of RE incl. 5 GW Offshore Wind in 2022 and 30 GW in 2027 in 07/2018 now 72 GW 300 250 200 150 238 217 188 2016 2022 2027 175 10 5 275 17 Biomass Small Hydro 8 150 PV 100 50 0 25 26 26 6 10 17 63 44 51 50 Coal Gas Nuclear Large Hydro > 25 MW 8 4 9 29 100 60 100 Renewables Wind 14
Global new investment in RE by region (bio US$) Annual investments in bio US$ (without projects < 1MW) Source: Bloomberg New Energy Finance, March 2017 15
Mixed business and GOI delegations with IGCC Study tour in June 2018 to Intersolar Europe with business associations IGCC and NSEFI 16
Thematic study tours - Green Wicket Study Tour PV on statiums study tour organized by IGEF Support Office 17
B2G at trade fairs Discussion on quality of solar rooftop PV in India 18
Business Roundtable at Intersolar Europe With Hon ble Minister Shri Piyush Goyal 19
Events - B2G and G2G Events E.g. Intersolar India 2016, RE-Invest 2018 or Hannover Trade Fair in Germany 20
1.-4. October, 2019 (tbc); India Expo Centre, New-Delhi https://re-invest.in Total exhibitors: 100+ Visitors: 5.000+ German exhibitors: 6+ 21
Intersolar India 11 th 13 th December 2018, Exhibition & Conference, Bangalore, India 22
18.-20. September, 2019; India Expo Centre, New-Delhi www.renewableenergyindiaexpo.com Total exhibitors: 800+ from 40 countries; 16.000 sqm Visitors: 30.000+ German exhibitors: 36+ German Pavilion by Exportinitiative Energy 23
Total Utility Scale PV Capacity Market segments and capacities as per September 2018 (in MW) around 90% public market https://bridgetoindia.com/reports/india-re-map-i-september-2018/ Commissioned 29 EUR/MWh 24
Captive power market? 84 GW in 2017 Captive Power Plants Total captive power above 1 MW in India estimated already at 84 GW Captive mix in India (especially offsite captive) with increasing RE shares At present mainly coal capacity (mostly onsite captive) Present drivers: 1) need for continuous uninterrupted quality power supply for sustainable industrial operations 2) high industrial tariffs 25
B2B market increasing in PVRT In 03/2018 2,5 GW total installed rooftop capacity Source: http://www.bridgetoindia.com/our-reports/india-solar-map/ 26
Open Access to grid and private PPAs with 3,3 GW connected load of +1 MW, total capacity as per 03/2019 3,3 GW Open Access = buy cheaper RE-power from the open market expected to encourage private investment in electricity supply Open Access to transmission and distribution grid on payment of charges to the utility - high grid usage charges, no cap defined Resistance by local utility / distribution company (DISCOM) Varying implementation across states (positive examples mainly in PV) 20% Captive, 11% REC Mechanism, 69% Third Party (B2I research) 27
https://bridgetoindia.com/reports/india-re-map-i-september-2018/ Total installed PV rooftop capacity approx. 2,5 GW as on March 2018. Most of it industrial rooftop PV on Capex Model 28
Large single rooftop PV in India of 11,5 MWp Fed into local grid through PPA with local DISCOM Source: Larsen & Toubro 29
Large rooftop solar power in Bangalore 1 MWp solar power plant on a build-own-operate CAPEX model Source:www.cleanmaxenergy.com 30
Source: MNRE 2016; CEA 2018; IGEF 2018 Development of Indian Utility Power Capacity (in GW) Massive growth of RE incl. 5 GW Offshore Wind in 2022 and 30 GW in 2027 in 07/2018 now 72 GW 300 250 200 150 238 217 188 2016 2022 2027 175 10 5 275 17 Biomass Small Hydro 8 150 PV 100 50 0 25 26 26 6 10 17 63 44 51 50 Coal Gas Nuclear Large Hydro > 25 MW 8 4 9 29 100 60 100 Renewables Wind 31
www.energyforum.in Please see Event Calendar, Downloads, Publications and Gallery 32
Thank you धन यव द 33
IGEF Support Office Please contact us and ask for Newsletter subscription New Delhi Berlin Indo-German Energy Forum (IGEF) Indo-German Energy Forum (IGEF) c/o Deutsche Gesellschaft für c/o Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Internationale Zusammenarbeit (GIZ) GmbH 1 st Floor, B-5/2, Safdarjung Enclave Köthenerstraße 2 New Delhi 110 029, India 10963 Berlin, Germany T +91 11 4949 5353 (ext. 2172) T +49 30338424 462 M director@energyforum.in M privatesector@energyforum.in W www.energyforum.in W www.energyforum.in 34
https://bridgetoindia.com/reports/india-re-map-i-september-2018/ Cumulative PVRT inverter market share until 09/2017 35
https://bridgetoindia.com/reports/india-re-map-i-september-2018/ PVRT developer market share in 2017 out of 1142 MW 36
https://bridgetoindia.com/reports/india-re-map-i-september-2018/ PVRT EPC market share in 2017 out of 392 MW 37
Road Map for Renewable Power by 2022 India decided to have 175 GW in total by 2022 175 GW 60 GW Wind 100 GW Solar 5 GW Small Hydro 10 GW Biomass 40 GW Solar Park 20 GW Govt./States/ Private/Others 40 GW Solar Rooftop 10% to India s total power requirement 38
Source: IWF, UN, 2017, *Estimades Economic growth of selected wind markets (% of GDP) Highest growth rates in India Country 2012 2013 2014 2015 2016* 2017* 2018* Worldwide 2.5 2.5 2.6 3.2 3.1 3.4 3.6 USA 2.0 2.3 2.6 2.6 1.6 1.9 2.0 China 8.0 8.5 7.3 6.9 6.7 6.5 6.0 Germany 1.0 1.4 1.9 1.5 1.7 1.5 1.5 India 6.5 5.4 6.0 7.6 6.6 7.2 7.7 Turkey 3.0 3.5 5.0 3.0 3.1 3.1 3.5 Pakistan 3.7 3.2 3.2 2.5 3.8 3.1 3.5 South Africa 2.6 3.6 2.7 1.3 2.3 0.8 1.6 Chile 5.6 4.6 4.6 4.6 1.7 1.7 2.0 Argentina 1.9 5.0 3.0 3.0-1.5 2.4 3.0 Brasil 2.5 2.5 0.1-3.8-3.5 0.2 1.5 México 3.8 1.5 2.5 2.6 2.2 1.7 2.0 39
Source: Trading Economics 2017 Credit ratings for selected wind markets India stable with upward trend Country S & P RATING S and P OUTLOOK MOODYS RATING MOODYS OUTLOOK FITCH RATING FITCH OUTLOOK USA AA+ Stable Aaa Stable AAA Stable China AA- Negative Aa3 Negative A+ Stable Germany AAA Stable Ba3 Stable BB- Stable India BBB- Stable Baa3 Postitive BBB- Stable Turkey BB Negative BA1 Stable BB+ Stable Pakistan B Stable B3 Stable B Stable South Africa BBB- Negative Baa2 Negative BBB- Negative Chile AA- Negative Aa3 Stable A+ Negative Argentina B- Stable B3 Stable B Stable Brasil BB Negative Baa2 Negative BB Negative México BBB+ Negative A3 Negative BBB+ Stable 40
Source: Corruption Perceptions Index 2017, Transparency International Anti-Corruption Index (CPI) Challenge to find a partner who is not average, low CPI leads to higher hedging costs World Rank Country CPI 2017 Score 12 Germany 81 16 USA 75 26 Chile 67 71 South África 43 77 China 41 81 India 40 81 Turkey 40 85 Argentina 39 96 Brasil 37 117 Pakistan 32 135 México 29 41
Source: EY-RECAI-51 42
India's PV power capacity Rank 3 worldwide in 2017 in added capacity +7,5 GW Solar added capacity in 2017 20 GW Solar Government of India plans 100 GW by 2022 Area: 3.287.263 km2 Population: 1,3 Bio. GDP nom: 1.965 US$/p.p. Currency: Rupee ( ) (INR) 150 GW by 2030 43