Renewable Energy Market Potential and Policy Overview in India Ministry of New and Renewable Energy Government of India Hannover, 14 th April,2015 Webpage: www.mnre.nic.in 1
Structure Renewable Energy Scenario in India Market Potential Policy Overview 2
Indian Power Sector at a Glance Total installed capacity : 2,63,663 MW Renewable, 13.04% Gas 8.71% Nuclear 2.19% Hydro 15.50% Thermal 60.56% Thermal Hydro Gas Renewable Nuclear 1,59,695 40,867 22,971 34,350 5,780 Renewable contributes 34,350 MW 13.04% If we take large hydro under RE 28.54% 3
Present Status-Renewable Energy Total Installed capacity 34,350 MW Biomass / Cogeneration 4,290 (12.49%) Solar Power, 3,380 (9.85%) Small Hydro 4,017 (11.69%) Wind Power, 22,663 (65.97%) 4
1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Megawatts 40000 Renewable Energy Installed Capacity - Growth 35000 30000 28067.26 31702.73 34350.39 25000 20000 19974.48 24914.26 15000 10000 5000 0 14791.57 16817.04 10256.6 12402.74 6160.74 4880.47 8088.06 3178.77 5311.4 2906.49 3518.36 Renewable Energy in MW Years 5
Future market opportunities In next 12 years India s electricity requirement to grow 2.5 times Electricity shortage estimated at 25-35 GW Climate Change is also an important issue (RPO/RGO) 400 Million people still without access to electricity India is dependent on oil imports for 80% of its demand 6
Renewable Energy Potential in India RE Type Potential (MW) Wind Power (at 80m hub height) 102,788 Solar Power 748,980 Small Hydro 20,000 Biomass including cogeneration 23,000 Waste to Energy 2,600 Biogas 1,280 7
RE Policy Enablers in India Dedicated Ministry since 1982: MNRE Dedicated Financial Institution IREDA & banks with green energy commitments. Dedicated Technical Institutions NIWE, NISE, and SECI Comprehensive Resource Assessment Wind Atlas/ Solar Radiation Mapping/ Hydro Sites Enabling instruments Renewable Power Obligations, Renewable Generation Obligations, Bundling & Preferential feed-in-tariffs Fiscal & Financial Incentives State specific RE policies 8
Support Mechanism for Renewable Power In India State RE policies Demand supply gap to continue to affect power availability Exemptions and other incentives RPOs & RECs Accelerated Depreciation (AD) and Generation based incentive Feed in Tariffs/ Preferential Tariffs Capital subsidy of 25 % for manufacturing. a. Energy in concurrent list; b. State level renewable and solar policies a. Expected to increase in coming 2-3 years due to lack of present investments in power sector a. 100% exemption in Excise Duty for many RE project components. b. Concessional Customs Duty of 5% for selected RE project components, AD, GBI, Capital Subsidy c. 10 year tax holiday d. State Policies a. RPOs targets to be doubled soon b. RPOs adopted by 26 SERCs c. REC mechanism launched to fulfil the RPO obligations a. Key instrument for success of wind in India a. Preferred by developers because it enhances project bankability. b. Introduced by almost all states for RE technologies 9
Policy and Regulatory Structure Electricity Act, 2003: Umbrella act for electricity generation, transmission, distribution and trading activities as well in India It forms the basis for : National Electricity Policy, 2005 National Tariff Policy, 2006 National Electricity Plan by Central Electricity Authority (CEA) Determination of Preferential Tariff for different RE sources Open Access Regulations Renewable Energy Policy 10
Renewable Energy Targets India targets by 2022: 100 GW of solar 60 GW of wind 10 GW of bio-energy 5 GW of SHP Total target : 175 GW by 2022 Increased focus on SHP, bio-energy, new & emerging technologies Setting up RE manufacturing bases in India Setting up a RE University and a Green Jobs Skill Council to create multiple job opportunities Investment opportunity : US$ 200 billion 11
Business Opportunities Manufacturing in RE sector Site Assessment agencies Project Developers Institutional Investors Equipment suppliers EPC and O&M Contractors Distributors 12
Number USD Billion 14 12 10 8 6 4 2 0 2 2.9 Clean Energy Investment in India 4.7 5.6 4.7 4.2 7.6 12.3 6.85 5.6 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Clean energy investment, 2013, $billion Asset finance Public Market VC/PE Total Solar 0.9-0.01 1.0 Bio-fuels 0.03 - - 0.03 SHP 0.7-0.01 0.7 Biomass 0.5-0.02 0.6 Wind 3.2-0.1 3.3 Source: Bloomberg Finance Report, 2014 Market largely driven by asset-based finance (94% of the total investment) Institutional investors are either state-owned or bilateral and multilateral institutions Development Banks-IREDA, continue to represent a key source of funds for RE investments The estimated investment in Indian market will be about 100 billion USD in coming 4 years Source: Bloomberg Finance Report, 2014 200 150 100 50 0 Investors in RE Space 180 51 26 30 37 24 9 6 16 21 11 Total registered in India Active in RE Sector 13
Green Energy Corridor In 2012, Powergrid has planned high capacity transmission systems (green energy corridors) for evacuation of renewable power Aggregate capital outlay of around INR 425 billion(usd 6.964 billion) (~EUR 5 billion). With the implementation of the Green corridor, the pockets of the RE generation would get grid interactive and thereby the restrictions on RE evacuation, losses would reduce. The planned systems are: Inter State Transmission System Transmission Line 765kV 400kV Substations 765kV 400kV 3,400 ckm 2,780 ckm 620 ckm 18,000 MVA (6 nos.) 15,000 MVA (5 nos.) 3,000 MVA (1 no.) Estimated Investment : Rs. 9,081 Cr (USD 1,487.96 mn.) Source: Powergrid 14
Solar Resource Measurement Stations Phase I 51 Phase II 60 MEDA 04 AMS 04 Total 119 15
Wind Atlas Map 16
RE-INVEST 2015 / 2016 RE-Invest 2015 Key Statistics Total Speakers Total Delegates Total Companies Represented Total Media Representatives 202, from 29 countries 2860, from 42 countries 578 Indian, 124 International 164, from 88 Publications / Agencies THE EXHIBITION Total Exhibitors 118 Country Pavilions Germany, UK, Italy, UAE Green Energy Commitments Manufacturing Commitments Financing Commitments 387 companies of 273 GW 17 companies of 62.10 GW 30 banks and Fls to finance 70.50 GW 17
Thank You 18