1

RENEWABLE ENERGY

INVESTMENT OPPORTUNITY IN

WEST BENGAL

2

ELECTRICITY SCENARIO IN INDIA

INSTALLED CAPACITY : 1,56,000 MW (64.1% THERMAL, 24.4% HYDRO, 8% RENEWABLE, 2.7%

NUCLEAR)

GDP GROWTH RATE : 8% (ELECTRICITY DEMAND INCREASING AT 5%, SUPPLY

DEMAND GAP INCREASING AT PRESENT ABOUT 12%)

ONLY 83.1% VILLAGES ARE ELECTRIFIED. (56% HOUSEHOLDS DO NOT HAVE ACCESS TO

ELECTRICITY)

PER CAPITA ENERGY CONSUMPTION IS 736 KWH/YEAR.

PROJECTION FOR ENERGY REQUIREMENT

3

4

ELECTRICITY SCENARIO IN WEST BENGAL

INSTALLED CAPACITY : 8500 MW (INCLUDING CENTRAL SECTOR).

VILLAGES ELECTRIFIED : 99%

HOUSEHOLD ELECTRIFICATION : 46%

PER CAPITA ELECTRICITY CONSUMPTION : 611 KWH/YEAR.

5

Renewable Energy Portfolio under the Indian Electricity Act, 2003

and SERC order.

6

POTENTIAL OF RENEWABLE ENERGY IN

WEST BENGALBIOMASS INCLUDING RICE HUSK

WIND POWER

SMALL HYDRO POWER

TIDAL POWER

WASTE TO ENERGY

SOLAR POWER

400 MW

450 MW

250 MW

100 MW

169 MW

16000 MW **

** WITH PRESENT LEVEL OF TECHNOLOGY AND AVAILABLE WASTE LAND. ROOF TOP SOLAR PV HAS NOT BEEN CONSIDERED.

7

INSTALLED (MW)

UNDER IMPLEMENTATION (MW)

BIOMASS INCLUDING RICE HUSK

50 40

WIND POWER 3 40

SMALL HYDRO POWER

30 24

TIDAL POWER - 4

WASTE TO ENERGY - 7.5

SOLAR POWER (PV) 7 30

ACHIEVEMENTS

ACHIEVEMENT MADE SO FAR

8

9

COUNTRY’S FIRST MW LEVEL GRID CONNECTED SPV POWER PLANT UNDER OPERATION IN THE STATE

10

FIRST ROOF TOP GRID CONNECTED SOLAR POWER PLANT AT KOLKATA CITY

FIRST ROOF TOP GRID CONNECTED SOLAR POWER PLANT AT KOLKATA CITY

11

BIOMASS GASIFIER POWER PLANT IN SUNDARBAN UNDER OPERATION FOR LAST 10 YRS

12BIOGAS OPERATED MICRO TURBINEBIOGAS OPERATED MICRO TURBINE

13

SOLAR PV POWER PLANT OF CAPACITY 50 KW UNDER OPERATION IN SUNDARBAN FOR LAST 12 YEARS

14

SOLAR HOME SYSTEM IN SUNDARBAN. ABOUT 1,50,000 SYSTEMS ARE NOW WORKING IN THE STATE OF WEST BENGAL

15

COUNTRY’S FIRST SOLAR HOUSING COMPLEX LOCATED AT NEW TOWN, KOLKATA

16

IN ORDER TO HARNESS FULL POTENTIAL THE STATE NEEDS HUGE INVESTMENT.

IN ADDITION THE STATE ALSO ENCOURAGES INVESTMENT IN THE MANUFACTURING OF RENEWABLE ENERGY PRODUCTS. IN THE RECENT PAST RS 400 CRORE (USD 80 MILLION) HAVE BEEN INVESTED IN THE STATE ONLY IN THE SPV MANUFACTURING SECTOR. SOME INVESTMENTS HAVE ALSO COME IN THE GREEN BUILDING SECTOR AND LED MANUFACTURING UNITS.

NATIONAL ACTION PLAN ON CLIMATE CHANGE AND NATIONAL SOLAR MISSION WILL OPEN UP MANY MORE NEW INVESTMENT AREAS IN THE STATE OF WEST BENGAL.

17

MINISTRY OF POWER, GOVERNMENT OF INDIA HAS ALSO ANNOUNCED DDG SCHEME FOR REMOTE RURAL INDIA. SUNDARBAN AREA OF WEST BENGAL IS IDEALLY SUITED FOR SUCH SCHEME.

RENEWABLE ENERGY COULD PLAY A MAJOR ROLE IN INDIA AND IN THE STATE OF WEST BENGAL SINCE WEST BENGAL IS 97% DEPENDENT ON COAL BASED THERMAL GENERATION.

18

PROVISIONS FOR RENEWABLE ENERGY

E ACT 2003

SECTION 86(1)(E) : THE STATE COMMISSION SHALL “PROMOTE” CO-GENERATION AND GENERATION OF ELECTRICITY FROM RENEWABLE SOURCES OF ENERGY BY PROVIDING SUITABLE MEASURES FOR CONNECTIVITY WITH THE GRID AND SALE OF ELECTRICITY TO ANY PERSON, AND ALSO SPECIFY FOR PURCHASE OF ELECTRICITY FROM SUCH SOURCES, A PERCENTAGE OF THE TOTAL CONSUMPTION OF ELECTRICITY IN THE AREA OF DISTRIBUTION LICENSEE.

SECTION 61(H) : THE APPROPRIATE COMMISSION SHALL, SUBJECT TO THE PROVISION OF THE ACT, SPECIFY THE TERMS AND CONDITIONS FOR THE DETERMINATION OF TARIFF AND IN DOING SO, SHALL BE GUIDED BY THE PROMOTION OF CO-GENERATION AND GENERATION OF ELECTRICITY FROM RENEWABLE SOURCES OF ENERGY.

19

BIOMASS RS 4.00 (9 US CENTS) PER KWH PLUS 2.5% ESCALATION

WIND RS 4.00 (9 US CENTS) PER KWH

SMALL HYDRO

RS 3.60 (8 US CENTS) PER KWH

BIOGAS RS 5.00 (11 US CENTS) PER KWH

SOLAR PV RS 15.00 (33 US CENTS/KWH) WITH MNRE, GOI / RS 11.00 (26 US CENTS/KWH) PLUS ACCELERATED DEPRECIATION BENEFITS (UNDER SEC-32 OF IT ACT)

TIDAL TO BE DECIDED ON CASE TO CASE BASIS

TARIFF ORDER ISSUED BY SERC WHICH IS UNDER REVISION.

RENEWABLE ENERGY TARIFF

IN THE STATE OF WEST BENGAL

RPO TO REACH 10% LEVEL BY 2012.

20

INCENTIVES FOR SOLAR INDUSTRY

100% FOREIGN INVESTMENT IS ALLOWED.

CUSTOMS AND EXCISE DUTIES: ZERO OR LOW CUSTOMS & EXCISE DUTY ON MOST ITEMS PRESENTLY USED IN COMMERCIAL PRODUCTION OF SOLAR CELLS / MODULES.

CONCESSIONAL CUSTOM DUTY AND NO EXCISE DUTY ON SOLAR THERMAL CONCENTRATOR STARLING ENGINES, ETC.

80% ACCELERATED DEPRECIATION IN THE FIRST YEAR.

TAX - HOLIDAY FOR SETTING UP UNITS IN BACKWARD AND SPECIFIED AREAS AND POWER GENERATION PROJECTS.

GRANT/LOAN SUPPORT.

R&D.

21

KEEPING IN VIEW THE ABOVE THE STATE HAS CREATED A NEWCORPORATION STYLED AS WEST BENGAL GREEN ENERGY DEVELOPMENT

CORPORATION LIMITED TO ATTRACT INVESTMENT IN THE RENEWABLE ENERGY AND ENERGY EFFICIENCY SECTOR. THE

CORPORATION IS ONE OF THE MOST ACTIVE RENEWABLEENERGY ORGANIZATION IN THE COUNTRY.

22