Vibrant Gujarat Summit Profile for Energy Spectrum Sector

Vibrant Gujarat ‐ 2015

Renewable Energy: Sector Profile

Table of ContentsTable of Contents

3. Renewable Energy sector

3.1 Global Scenario

3.2 India Scenario

3.3 Gujarat Scenario

3.4 Gujarat Scenario – Vision 2020 & Investment Opportunities

3.5 Government Initiatives & Interventions

4. Advantage Gujarat

5. Doing business in Gujarat5. Doing business in Gujarat

6. Tax and Regulatory Framework in Gujarat

3. Renewable Energy Sector

3.1 Renewable Energy Sector:

Global Scenario

Renewable Energy SectorGlobal Scenario

Sufficient renewable energy resources are available to satisfy World’s current and future energy demand. Solar energy alone could meet the existing global energy needs 10,000 times over

1 China• From 2011 to 2012 renewable energy capacity saw a growth of 8.5 percent and reached to a total renewable energy capacity of

2 US

3 Germany

4 Spain

percent and reached to a total renewable energy capacity of 1,470GW in 2012

• Solar industry experienced a market growth of 18 percent in 2013

• Biofuels grew modestly in 2013, with global production of ethanol and biodiesel sprouting up to USD 97 8 billion in investment

Top 6 countries

RE capacity, Dec 2012

Renewable Power Capacities (Gigawatts)World Total energy consumption (Quadrillion, Btu)

5 Italy

6 India

and biodiesel sprouting up to USD 97.8 billion in investment compared to USD 95.2 billion in 2012

• Wind energy saw an investment of ~USD 58.5 billion in 2013

Dec.2012

400

600 480

210600

800

1000Total OECD

Total Non

CAGR: 1.5%

0

200210

128 90 86 71 31 29 24

200

400

600 Total Non OECD

World Total

5Source: REN 21, www.cleantechnica.com Note: RE stands for Renewable Energy

0

2010 2020 2030 2040

Renewable Energy SectorGlobal Scenario

European Union has expressed commitment to a 20:20:20 ambition: 20 percent emissions reduction, 20 percent renewable energy and 20 percent improvement in energy efficiency by 2020

Selected indicators of RE market d l t

Unit 2011 2012Edevelopment

Global new investment in renewable energy (annual)

billion USD

279 244

Solar PV cell production (annual) GW 71 100

billi

Energy dependence and energy security

Growth

Continued growth in energy demand

Ethanol production (annual)billion litres

84.2 83.1

Biodiesel production (annual)billion litres

22.4 22.5

Countries with policy targets # 118 138

Technological progress

driving down capital cost

500

Global Clean Energy Projected Growth 2013 ‐ 2023 (USD Billion)

Growth Drivers

demandp y g

Countries with feed‐in policies # 94 99

capital cost

247.6

97.858 5

91.3

397.8

145.693.8

158.4

100

200

300

400

500

2013

2023

Stakeholder pressure for environmental action

Focus on sustainability and lowering environmental

impact

6

58.5

0

100

Total Biofuels Wind Power Solar Power

2023

Source: REN 21, Clean Edge, Inc. , 2014

impact


India Scenario

Renewable Energy SectorIndia Scenario

Renewable energy is becoming an increasingly important element of India’s national energy mix

• As per the Ministry of New and Renewable Energy (MNRE), India’s total renewable potential is ~245 GW, however the current installed capacity is only 28 GW

• Wind energy dominates India’s renewable energy sector. As on 31st March, 2013 wind accounts for ~68 percent (i.e. 19.05 GW) of India’s total renewable installed capacity

• To boost the growth of renewable energy in India, Government of India and many state governments have i ti i d th i t ll ti f bl th h i li i d fi l

Break‐up of installed power generation capacity Installed capacity of renewable energy in India

incentivized the installation of renewable energy through various policies and fiscal measures• By 2050, 69 percent of the country’s energy generation will be from renewable energy (Greenpeace vision)

58.30%

12.80%

6%

0.30%Wind

small hydro12.30%

17.70%2.10%

0.50%

9% 67.90%

12.90%

y

Biomass

Solar

Others

8Source: Ministry of Power, Government of India; Ministry of New and Renewable Energy, Government of India

Coal Renewable Hydro Nuclear Oil Gas

Renewable Energy SectorIndia Scenario: Wind Energy

India ranks fifth in the world in wind power installed capacity with an installed capacity of19,565 MW (as on June 30th, 2013)

• To drive commercialization of wind power, promote research and development in wind power and to support wind power projects in country, Government of India initiated the “Wind Power Program” in the year 1984

• Wind power accounts for 8.5 percent of total energy mix of India• 95 percent of wind power comes from 5 states: Tamil Nadu, Gujarat, Maharashtra, Rajasthan and

Global installed capacity of wind energy (%)

China 2000019565

State wise installed capacity (MW)

95 pe ce t o d po e co es o 5 states a adu, Guja at, a a as t a, ajast a a dKarnataka)

26.6%

2.9%

3.0%

2.2%15.7%

China

U.S.A

Germany

Spain

India

10000

15000

7196

21.2%8.1%

6.5%

2.7%India

France

Italy

UK

Canada

0

5000 3294 3250 2717 2170514 386 35.1 4.3

9Source: Ministry of New and Renewable Energy, Government of India; IGEF

11.1% Rest of World

Renewable Energy SectorIndia Scenario: Solar Energy

India has one of the highest irradiation levels in the world

• Policies at the central government and state government level are the main growth drivers of solar energy sectorsector

• Regulations like Renewable Purchase Obligations (RPOs) inclusion with favorable policies play a major role in growth of the solar sector

• Gujarat was the first state to release the solar policy in year 2009. In 2010 MNRE launched the Jawaharlal Nehru National solar Mission (JNNSM) with the objective to add 20 GW of solar power projects by the year

State wise split of solar power projects (MW)JNNSM Capacity addition target

2022

100

23 37115

Gujarat

Rajasthan

Phase 1 (2009‐13)

Phase 2 (2013‐17)

Phase3 (2017‐22)

Utility grid power including roof top(MW)

1100 4000‐10000 20000

852

553

Maharashtra

Andhra Pradesh

Madhya Pradesh

Others

(MW)

Off grid installations (MW)

200 1000 2000

Solar collectors

10

(million square meters)

7 15 20

Source: Ministry of New and Renewable Energy, Government of India; IGEF

Renewable Energy SectorIndia Scenario: Bio Energy

Bio energy comprises of bio mass, bio fuels and bio gas. A total of 4,449 MW capacity has been installed in bio energy in both grid connected and off grid capacities in India as on March 31st,

2013

Bi b d ti t CAGR f 21 6 t d i d f 1 112 MW t 3 601 MW b t• Biomass based power generation grew at a CAGR of 21.6 percent and increased from 1,112 MW to 3,601 MW between FY07‐FY13

• 65 percent of biomass based generation comes from baggase based co‐generation

• MNRE is drafting a new policy for National Bio Energy Mission which will be implemented in two phases. Phase1 will be d th f l d h th f l

Growth of Biomass based power generation (MW)

Biomass power installed capacity (MW)

executed in 12th five year plan and Phase 2 in 13th five year plan

• Incentives of USD 557 million will be provided in phase 1 to add 3000 MW capacity during the period

3000

4000

( )

CAGR: 21.6%2000

3000

4000

776 756

3601(MW)

1000

20000

1000776 756

538 491 380 249.9124.5 91.3 45.3 43.3 30.5

11

0

2006‐07 2007‐08 2008‐09 2009‐10 2010‐11 2011‐12 2012‐13

Source: Ministry of New and Renewable Energy, Government of India; IGEF

Renewable Energy SectorIndia Scenario: Small Hydro Power

Small Hydro1 Power Capacity increased with CAGR of 11.35 percent from 1.905 MW to 3,632 MW between FY07-FY13

• MNRE is providing 'Central Financial Assistance (CFA)' to set up small/micro hydro projects both in public and private sectors

• Financial assistance of around INR 150 crore is being provided to the states by the centre for the development of small hydro‐power projects

• Government created a data base for the potential sites for small hydro projects and identified 6,474 such sites with a potential of ~19 8 MWpotential of 19.8 MW

• MNRE signed MOU with IIT, Roorkee for development of small hydropower plants on a contractual basis

Small Hydro power generation in India (MW)

4000 3632

State wise installed capacity(MW)

3000

4000 CAGR: 11.35%

1000150020002500300035004000

964588

300

943

3632

0

1000

2000

05001000 300 219 175 158 155 131

12Source: Ministry of New and Renewable Energy, Government of India; IGEF, Economic Times1. Projects under 25 MW capacity are considered as “Small Hydro Power” and comes under renewable energy source in India

Renewable Energy SectorIndia Scenario: Way forward

Interplay of favorable risk-return profile at project level coupled with the emerging Indian merchant power opportunity creates a positive strategic framework for Indian renewable IPP

playersProject Level

•Shorter time‐to‐commissioning than conventional power projects•Fast‐track project approval‐ significantly fewer environmental or CERC clearances required compared to conventional power projects•Easier to achieve financial closure vis‐à‐vis larger projects, Greater predictability of project execution•Plethora of small‐to‐mid size units in “locally constrained” entrepreneurial setups: ideal for consolidation play•Bidding route not mandatory for new capacitiesBidding route not mandatory for new capacities

Financial Perspective

•Low working capital requirements, particularly for small hydro and wind projects•Ability to boost returns through emissions trading options•Regulatory support, including preferential tariffsi l i i ( b idi d i i ) il bl i S•Fiscal incentives (subsidies, grants and tax incentives) available in some States

Sustainability

•Lower fuel sourcing and pricing risk compared to conventional power projects•Opportunity to de‐risk asset portfolio through geographic and technological options‐ exposure to multiple markets, regulatory regimes, technologies and climatic conditions•Lower social friction concerns by promoting ‘inclusive growth’•Broadening fuel base complements efforts to decouple India’s economic growth from emissions growth and helps to achieve energy security

Fund Requirement

• Consolidated fund requirement estimated by MNRE (Strategic plan for new and renewable energy sector for the period

13

• Consolidated fund requirement estimated by MNRE (Strategic plan for new and renewable energy sector for the period 2011 ‐17 is:

‐ For grid connected renewable energy technologies – USD 2.6 billion

‐ For off grid renewable energy programs – USD 2.7 billion

Source: Vibrant Gujarat Website

3.3 Renewable Energy Sector: Gujarat

S iScenario

Renewable Energy SectorGujarat ScenarioGujarat was a power deficient state barely a decade ago, but now has a surplus power and a vibrant energy sector. Gujarat contributes ~ 15 percent to India’s renewable energy basket

Total Total • Share of RE in total energy mix in Gujarat is ~18 percent

Source Potential (India), MW

potential (Gujarat),

MW

RE Installed Capacity MW

Wind 45 000 12 000 3 250

• Gujarat’s share of RE sources in Western Region is 46 percent

• Timely tariff revisions have made the sector viable enabling the state to set up adequate generation capacity Wind 45,000 12,000 3,250

Solar > 100,000 69,000 852.31• Uninterrupted power supply attracts companies to set up business in Gujarat

Installed power capacity in Gujarat Break up RE source in GujaratInstalled power capacity in Gujarat

21.30%0.70%0.20%

Break up RE source in Gujarat

Wind76% 17.80%

1.70%77.80%

Solar

Biomass

Small Hydro

15Source: Energy & Petrochemicals Department, Government of Gujarat, Gujarat Energy Development AgencyNote: RE stands for Renewable Energy

2.50%Thermal Renewable Nuclear Hydro

Renewable Energy SectorGujarat Scenario: Renewable Energy PotentialRenewable Energy in Gujarat by 2020 aims at increase of RE power to the national grid, from

5 percent in 2009-10 to 15 percent of the energy mix by 2020 (National Action Plan on Climate Change).

According to TERI “The overall renewable energy potential in Gujarat is very high considering if all the

Source Resource Potential

According to TERI, The overall renewable energy potential in Gujarat is very high, considering if all the identified suitable lands can be made available. Gujarat's overall integrated renewable energy potential is

estimated to be around 748.77 GW”

Source Resource Potential

Sun Solar Radiation 5.75 kWh/Sq.m./day

Biomass 24 million Tonnes 900 MWe

Biogas200 lakh cattle population

933 MWe

Energy Plantation 67 lakh Ha. Wasteland 15000 MWe

Wind Coastline & Hilly Regions 12000 MWe

The state has signed power purchase agreements (PPAs) for solar power generation with 80 i t l f 25 i l di T t P US b d S Edi i d M B S l

16Source: Gujarat Power Corporation Limited, TERI, Economic Times, CII, India Today

private players for 25 years, including Tata Power, US-based SunEdision and Moser Baer Solar. These deals are worth USD 3 billion

Renewable Energy SectorGujarat Scenario: Renewable Energy Map

Gujarat has a large amount of waste land along with good solar radiation and wind flow for most of the year. Biomass, Tidal, Geothermal resources are also available in the state.

17Source: Gujarat Energy Development Agency

Renewable Energy SectorGujarat Scenario: Wind Power

Gujarat has the second largest Wind Power Plant installed capacity in the country which is about 3250 MW . Annually generating about 5447 million units of electricity.

Wind Power Density in Gujarat, W/m2Gujarat: At a Glance

• Potential: 12000 MW• Installed Capacity: 3250 MW till date• Cost: INR 60 million per MW

• The Centre for Wind Energy Technology, an autonomous R&D institution under MNRE, has identified and approved 40 sites for wind energy deployment with annual average wind power density greater than 200 W/sq. m. at a 50 m height in Gujarat

• Over a period of last more than 25 years more than 65 sites have been monitored for the wind speed and wind power density, and over 50 sites have been

18Source: TERI, Gujarat Energy Development Agency

y,found feasible for harnessing wind power

Renewable Energy SectorGujarat Scenario: Wind Power

The State of Gujarat with its longest coast line in the country and inland windy sites has a potential of 12,000 MW of wind power

In November 2008 Gujarat won the Best

Wind Power capacity (in MW)

In November 2008 Gujarat won the Best Wind Power Developer State

(Percentage Increase) Award 2008 for achieving the maximum capacity additions 1000

2000

3000

4000

271 5551,171 1,485 1,782 2,095

2,885 3010CAGR: 48%

during the two consequent year FY07 and FY 08 alone the coast of Saurashtra

0

Eligible Unit: Any company/corporate body/association/body of individualsSale: Fixed tariffTariff: INR 4.15 kWh for 25 years

Wind Power Policy and GERC regulatory features

Open Access / 3rd party sale:

Allowed banking

Wheeling:At 66 kV: Normal charges as applicable to open accessBelow 66 kV: Normal charges as applicable to open access + 10% of generated fed to the grid

19Source: GEDA, GERC

Land:On a Private Land ; On a Revenue waste land @ 1 hectare per Wind turbine generator on long term lease of 20 years to the developer

Renewable Energy SectorGujarat Scenario: Solar Power

Gujarat has the highest solar generation potential in India –300 days of 5.6 to 6.0 kWh/sq.m/day solar radiation

• In Gujarat there is a potential of generating 10 000• In Gujarat there is a potential of generating 10,000 MW from 1 percent of available wasteland

• The area with the highest solar potential is the district of Kachchh which gets 310 sunny days in a year and has the highest direct solar insolation of 6 4 kWh/sqhas the highest direct solar insolation of 6.4 kWh/sq. m. / day throughout the year

• The sites do not require sun tracing• Government would be spending about INR 2100 crores/ year for 1400 MU generated by 824 MW

Districts with the highest GH/DN Irradiance, kWh/m2/year

Solar Power Plants in Gujarat for next 12 years

GHI DNIJamnagar 2,216 2,697Junagadh 2,212 2,661

kWh/m /year

20

Navsari 2,110 2,427Patan 1,883 2,008

Source: TERI, Gujarat Energy Development Agency

Renewable Energy SectorGujarat Scenario: Solar Power

77 plants totaling to about 852.31 MW capacity were commissioned in Gujarat up to March 2013

Gujarat’s largest solar power plants

Plant District MW• Gujarat has taken a lead over other states in renewable energy initiatives particularly in solar power generation It Plant District MW

Adani Enterprises Ltd. Kachchh 40

Sanland Real Estate Pvt. Ltd. Banaskantha 25

T P C L d J 25

energy initiatives, particularly in solar power generation. It is the first state in India to achieve RPO target

• Gujarat also has Asia’s First Solar Park • Village Charanka, Ta:Santalpur, Patan 2024 hectares of

wasteland Tata Power Company Ltd. Jamnagar 25

Alex Astral Power Pvt. Ltd. Patan 25

Roha Dyechem Pvt. Ltd. Patan 25

wasteland• For setting up 3000MW Generation & Manufacturing

Facilities• 258 MW Capacity Power Plants have been installed• GPCL is the Project Managers

Sun Edison Energy India Pvt.

Ltd.Patan 25

Kiran Energy Solar Power Patan 20

GPCL is the Project Managers

Solar Power Policy : 1st state policy in the country

Pvt. Ltd.Patan 20

PLG Photovoltaic Patan 20

Hiraco Renewable Energy

PhaseDevelopers

(Nos.)Capacity, MW

Phase I allotment 57 406.5

Phase II allotment 27 562 0

21

gy

Pvt. Ltd.Porbandar 20

Phase II allotment 27 562.0

Total 84 968.5


Renewable Energy SectorGujarat Scenario: Solar Power - Tariff

Summary of solar Tariffs, Rs./kWh (projects commissioned Jan 29, 2012 - March 31, 2015)

PeriodJan 29, 2012 –Mar 31,

2012Apr 1, 2013 –Mar 31, 2014

Apr 1, 2014 –Mar 31, 2015

Megawatt ‐ scale PV projects availing accelerated depreciation

Levelized tariff for 25 years 9.28 8.63 8.03

First 12 years 9.98 9.13 8.35

Subsequent 13 years 7 00 7 00 7 00Subsequent 13 years 7.00 7.00 7.00

Megawatt ‐ scale PV projects not availing accelerated depreciation


First 12 years 11.25 10.30 9.42

Subsequent 13 years 7.50 7.50 7.50

Kilowatt ‐ scale PV projects availing accelerated depreciation


Kilowatt ‐ scale PV projects availing accelerated depreciation


Levelized Tariff for Solar Thermal Projects

With accelerated depreciation benefit 11.55 per kWh for 25 years

22Source: GERC Order no. 1 of 2012: Determination of Tariff for Procurement by the Distribution Licensees and Others from Solar Energy Projects, Jan 2012

p p y

Without accelerated depreciation benefit 12.91 per kWh for 25 years

Renewable Energy SectorGujarat Scenario: Solar Power – Project Locations

Geographical locations of Solar power projects

23Source: GETCO

Renewable Energy SectorGujarat Scenario: Bio Energy

The total bio-mass potential for Gujarat is about 1,800 MW from crop residue and about 140 MW from forest residue

Biomass potential in Gujarat

Di t i t ith th hi h t

31.20 MW capacity biomass projects commissioned in

CropRajkot 228

Jamnagar 203

Districts with the highest biomass potential, MW

Amreli, Junagadh and Vadodara

13.23 MW

Crop Residue

Forest Residue

F t

gBhavnagar 192 Junagadh 168

Surendranagar 142 Amreli 137

waste‐to‐energy power generation projects

ForestJunagadh 18 The dangs 18 Sabarkantha 16

Valsad 15

Bio‐energy programmes• Institutional biogas plants 9835 m3/day capacity in various institutions acrossthe state

• India’s first and Asia’s biggest power plant based on biomass gasification hasrecently been commissioned at village Kothara in the border district of Kutch

24

Dahod 12 Banaskantha 11

recently been commissioned at village Kothara in the border district of Kutch,Gujarat. The project is expected to generate 500 KW electricity from its twogenerating units


3.4 Renewable Energy Sector: Gujarat

S i S iScenario – Success stories

Renewable Energy SectorGujarat Scenario: Model solar city project - GandhinagarGovernment of India declared Gandhinagar as a Model Solar City setting example for

Solar Cities throughout India and other nations

Gandhinagar: The Model Solar City project Ministry of New and Renewable Energy (MNRE) has launched a program on “Development of Solar Cities” on January 24

10 KW capacity wind‐solar hybrid system commissioned at Udyog Bhavan, Gandhinagar

The program assists Urban Local Governments in:• Preparation of a master plan for increasing energy

a program on Development of Solar Cities on January 24, 2011

19 solar rooftop systems of 10 KW each commissioned at government buildings, Gandhinagar

p p g gyefficiency and renewable energy supply in the city

• Setting‐up institutional arrangements for theimplementation of the master plan.

• Awareness generation and capacity building activities.

1,240 KW SPV‐based grid‐connected power generating rooftop systems at government buildings

The program aims at minimum 10% reduction in projecteddemand of conventional energy at the end of five years, whichcan be achieved through a combination of energy efficiencymeasures and enhancing supply from renewable energy

240 solar rooftop systems of 1 KW each commissioned at godowns

6 solar hybrid systems of 5 KW each

g pp y gysources.

26Source: MNRE, GEDA

6 solar hybrid systems of 5 KW each commissioned on government buildings

Renewable Energy SectorGujarat Scenario: 5 MW Gandhinagar Solar Rooftop Programme

Government of Gujarat has launched the ambitious “Gandhinagar (Solar) Photovoltaic Rooftop Programme” to encourage alternative clean energy sources like solar energy as well as social

participation to advance towards energy self-sustainability

Opportunity for rooftop owners

•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 generationTh f t ill b id “G I ti ” hi h h ll b b d th it (kWh) f

Opportunity for rooftop owners

•The owner of property will be paid a “Green Incentive,” which shall be based on the units (kWh) of electricity generated by the SPV system installed on their property

• In this programme the developer is selected through a transparent competitive bidding process The

Role of project developer

• In this programme the developer is selected through a transparent competitive bidding process. The selected developer will finance/Install/Own/Operate and maintain PV roof systems on owners roof tops

• The energy generated from this system will be sold to Distribution Company and Distribution Company will pay duly approved tariff to developersS l t d d l ill t th “G I ti d L A t” ith i di id l t• Selected developers will execute the “Green Incentive and Lease Agreement” with individual property owners, whose rooftop or terrace will be utilized for the SPV system

To be implemented in• Surat• Rajkot• Mehsana

27

• Mehsana• Bhavnagar• Vadodara

Source: Gujarat Energy Development Agency, Gujarat Power Corporation Ltd

Renewable Energy SectorGujarat Scenario: Gujarat Solar Park – Making India a Solar hub

Asia’s largest "Gujarat Solar Park" to mitigate impact of Climate Change and to protect environment for our future generation, making Solar Sector vibrant and viable not only in India but also across the Globe

Concentrated zone of development for solar power related activities

Gujarat Solar Park Charanka Patan district

p p• Solar thermal/ PV generation based projects, Solar components manufacturing/ assembling• Research and development, Capacity Building• Single window facility for solar power project developers for providing common

Gujarat Solar Park, Charanka, Patan district

GEDA Financial Institutes

Policy directivesProject funding

Processed applicationsapplications

GPCLNodal Agency for Solar Park

development

GETCO

SSNNL

GERC/CERC

Government agencies

Transmission infrastructure

Water availability

Tariff determination

Tariff determination

Infrastructure development charge

Sh d i h l d l

Area: approx. 2,024 HaCapacity Installed: 258 MW

Key Features

28

Shared with solar developer, manufacture, R&D setup

Capacity Installed: 258 MWNo. of developers: 20


Renewable Energy SectorGujarat Scenario: Gujarat Solar Park – Making India a Solar hub

The only project in Power sector of India that has won this prestigious award

Award merits:• Gave a discrete definition of “solar park” in the

Indian contextIndian context• World’s largest multi‐developer and multi‐

beneficiary solar park with targeted 500 MWSolar Power Projects at single location

Social Commitment:• All‐weather road connectivity• Water to carry out cultivation activities• Drinking water facility to the Charanka village• Ambulance service• State of the art training facilit to pro ide

29

• State‐of‐the‐art training facility to provide training to the villages in various fields


Renewable Energy SectorGujarat Scenario: India’s first canal top Solar power Project

Gujarat has initiated the world’s first canal-based solar power project on Narmada branch canal new Chandrasan village of Mehsana district

Energy generated from this pilot project will bedi l f d i h l l l i i id d ili ddirectly fed into the local electricity grid and utilizedby nearby towns and villages

Innovative Ideas• Cover the canal with Solar Panels to• Save Land @ 5 acre per MW• Minimize evaporation from canal (9 million liters

Technical Detail• Projected energy production: 1.6 million units/year/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

• Irradiation: 4.6 – 6.4 kWh/m2• Installed capacity: 1 MWp• Technology: polycrystalline solar modules, 280 Wp• Number of modules: 3616• Canal length used: 750 m

30Source: GSECL

less maintenance cost• Pilot Project is for 1 MW

Canal length used: 750 m• Power evacuation system: 11 KV

Renewable Energy SectorGujarat Scenario: Bio energy

0 95 MW biogas based power project at Sayaji Industries Kathwada 2009‐10

Various Bio energy projects have been implemented in Gujarat. Few of them are enlisted below:

• Sayaji Industries, Kathwada is dealing with maize starch products. As a result of maize corn milling, grinding and processing, about 14000 nm3 biogas is generated. Earlier biogas was being used in the coal fired boilers. Under the MNRE programme of energy recovery from industrial & commercial wastes, the biogas based power project was taken up The project commissioned in April'2009 and has been running successfully at about 80% PLF since

0.95 MW biogas based power project at Sayaji Industries, Kathwada, 2009 10

taken up. The project commissioned in April 2009 and has been running successfully at about 80% PLF since commissioning.

12000 nm3 biogas per day (1 MWeq.) maize starch industry liquid waste based biomethanation plant by Gujarat Ambuja Exports Ltd., at Dalpur , Dist: S.K., 2009‐10

• 12000nm3 /day capacity biomethanation plant is completed & commissioned in December 2009 under MNRE waste‐to‐energy (WTE) scheme. Plant has been running successfully since its commissioning date. Produced biogas gas is used in 100% biogas engines in CPP

• Sayaji Industries, Kathwada increased its maize grinding capacity from 325 MT/day to 550 MT/day, the effluent also increased with higher COD value of about 16000 to 20000 KGs COD. One 10000 nm3/day capacity biomethanation

0.833 MWeq.(10000 nm3/day) capacity maize starch industry liquid waste based biomethanation plant at Sayaji Industries Ltd., Kathwada, 2010‐11

31

g / y p yplant has been installed & commissioned December 2011.The same is working with more than 80% efficiency. The produced biogas is used in its CPP

Source: Gujarat Energy Development Agency

Renewable Energy SectorGujarat Scenario: Large RE Players in Gujarat

Solar power developers

Solar PV manufac‐turers

Sonki Solar India.turers

Wind power p

developers

Wind equipment

f

32

manufac‐turers


Gujarat Scenario – Vision 2020 & Investment

Opportunities

Renewable Energy SectorGujarat Scenario: 2020NAPCC goal: 1 percent annual increase of RE power to the national grid, from 5 percent

in 2009-10 to 15 percent of the energy mix by 2020

Source / Installed capacity (MW) as on May

12th five year Plan periodCapacity additions

12th PlTechnology(MW) as on May

201212th PlanFY13 FY14 FY15 FY16 FY17

Wind 2,885 326 377 456 498 508 2,165

SHP 6 2 3 4 3 3 15

BIO 20 35 45 55 60 44 239

Solar 655 209 331 331 441 560 1,872

WTE 0 2 2 0 2 6

Total 3,566 572 758 848 1,002 1,117 4,297

Expected capacity addition in RE sector by 2017 will be 4 297 MW with highest2017 will be 4,297 MW with highest

contribution from wind – 50 percent and solar – 44 percent

Total installed capacity from RE sources by

34Source: Energy & Petrochemicals Department, Government of Gujarat

Total installed capacity from RE sources by 2017 – 7,863 MW

Renewable Energy SectorGujarat Scenario: 2020

Fund requirementNon‐ Conventional power

projects under private sector

Development of distributed gas based power combined with

non conventional sources

Development of wind‐solar hybrid

installations and biomass projects

Tidal and geothermal projects first at a pilot scale, and then at a commercial scale

Project Fund required(USD billion)

biomass projects

Development of large scale solar parks and

canal‐top solar projects

commercial scaleWind 2.65

SHP 0.02

Development of solar manufacturing

iti

p p j

Offshore wind projects development

Bio Mass 0.24

Solar 3.82capacities

Development of projects under solar rooftop programme

p

WTE 0.01

Total 6 74

35

p p g(Bhavnagar, Surat, Rajkot, Mehsana)

Total 6.74

Source: Energy & Petrochemicals Department, Government of Gujarat

Renewable Energy SectorGujarat Scenario: Investment Opportunities

The state endeavors to become a leader in terms of capacity and introduction of new technologies in other renewable energy sources, like wind-solar hybrid, WTE, OTEC, tidal

energy, etc.

• The total potential for wind solar hybrid installations is about 74 000 MW with the largest potential in Rajkot• The total potential for wind solar hybrid installations is about 74,000 MW with the largest potential in Rajkot and Kachchh

• Gujarat has a 1,600 km coast line and good wind velocity offshore. The total offshore wind potential is about 4,000 MW

• Preliminary activities have been initiated to explore Off‐shore wind mill projects installation in consultation

Wind solar hybrid installation, MW

Districts with the highest hybrid potential, MW

Preliminary activities have been initiated to explore Off shore wind mill projects installation in consultation with Central Government

Rajkot 23,182

Kachchh 16,151

Jamnagar 8,707

Surendranagar 6 625Surendranagar 6,625

Amreli 3,585

Bhavnagar 2,514

Sabarkantha 2,303

k h

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Banaskantha 2,044

Junagadh 2,038

Source: TERI, Gujarat Energy Development Agency, Gujarat Power Corporation Ltd

Renewable Energy SectorGujarat Scenario: Investment Opportunities

Geothermal power pilot projects are being planned in the state. Gujarat is set to tap geothermal electricity through resources which are available in Cambay between Narmada and Tapi river

Gujarat geothermal potential is concentrated in Cambay

Tidal Potential in Gujarat, MWy

Tidal potential

Potential site Tidal energy potential, MW

Gulf of Kachchh 1200

Gulf of Khambat 7000

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Gulf of Khambat 7000

Total 8200



Government Initiatives & Interventions

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Renewable Energy SectorGovernment Initiatives & InterventionsA robust regulatory framework has been put in place to realize India’s wind, hydro, solar

and biomass potential

Electricity Act 2003

•Mandated State Electricity Regulatory Commissions (SERCs) to•Promote generation of electricity from renewable sources of energy by providing suitable measures for connectivity with the grid and sale of electricity to any person

•Fix certain minimum percentages for purchase of renewable powerp g p p

National Electricity Policy 2005

•Further provided for progressive increase in generation of electricity from renewable sources and supported purchases by distribution companies through competitive bidding process

Tariff Policy 2006

•Provided for fixation by SERCs of a minimum percentage of Renewable Purchase Obligation (RPO) from RE sources taking into account availability of such resources in the region and its impact on retail tariffs and procurement by distribution companies at preferential tariffs determined by the SERCs

National Action Plan on Climate Change 2008

•Outlined existing and future policies and programs addressing climate mitigation and adaptation

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•NAPCC has advised that starting 2009‐10, RPOs be set at 5% of total grids purchase, and be increased by 1% each year for 10 years.

Source: Ministry of Power, Government of India; Ministry of New and Renewable Energy, Government of India

Renewable Energy SectorGovernment Initiatives & Interventions- National Solar MissionObjective of the National Solar Mission is to establish India as a global leader in Solar

Energy, by creating the policy conditions for its diffusion across the country as quickly as possible.

A. 20 GW Grid based solar power projects by 2022A. 20 GW Grid based solar power projects by 2022

• Large power plants (5 MW solar PV; 5 to 100 MW CSP in NSM 1 and 5MW to 50MW solar PV in NSM 2)

100 MW rooftop and small projects

• Accelerate generation capacity addition to drive down costs and achieve grid parity by 2022

• National Tariff Policy amended (January 2011) for mandatory Solar RPOs for all power utilities

Phase 1: 2010‐13

Phase 2: 2013‐17

Phase 3: 2017‐22

• Connected below 33 kV. Target (10 MW of up to 100kW; and 90 MW of 0.1 to 2 MW.

B. 2000 MW off‐Grid project by 2022

Policy framework to attract and scale‐up

Market based on FIT and mandatory solar RPO

Grid competitive solar power

• Off grid solar and decentralized solar applications.

• Capital and interest subsidy; Refinance by IREDA et al

• Other channels to supply & maintain Products p

Grid: 1,100 MWOff‐grid: 200

Grid: 4‐10,000 MW

Off‐grid: 1000

Grid: 20,000 MW

Off‐grid: 2000

C. Support projects

• Centre of excellence and incubation

• Demonstration and pilot projects

• 100MW parabolic trough based

40Source: Ministry of New and Renewable Energy, Government of India

MW MW MW• 100MW parabolic trough based

• 100‐150MW solar hybrid plant

Renewable Energy SectorGovernment Initiatives & Interventions- Support mechanism for RE in India

Policy Instrument Indian Experience Incentives for Developers

Feed in Tariffs/ Preferential Tariffs

• Being used for all active RE technologies. introduced by most states except J&K, Bihar, Jharkhand, Odisha and the North Eastern states. P f d b d l b i h j b k bili

• Financial as well as economic costs and benefits of RE are not yet factored in FIT

• Technology upgradation ld l d b i iTariffs • Preferred by developers because it enhances project bankability could lead to better returns as it is not

considered in FIT

Accelerated Depreciation (AD)• Acknowledged as the key instrument for success of wind industry in

India • Most wind installations in India have been developed under AD.

• The sector has attained scale & commercial viability on its own.

Generation Based Incentives • Recently introduced to shift investment focus from capacity addition • Presents avenues for additional Generation Based Incentives (GBI)

y p yto electricity generation – move from capital subsidies (AD) to generation based incentive.

guaranteed revenues for project developers

Renewable Purchase Obligation (RPO)

• RPOs are mandated by the Electricity Act 2003 and National Tariff Policy

• RPOs adopted by 23 SERCs

• Readymade market for renewable power sources

Clean Energy Cess• The government plans to develop these funds for development of

renewable energy

Renewable Energy Certificates (REC’s)

• MNRE and CERC have developed a REC regime which has kicked off recently

• Serves as a mechanism to fulfill the RPO obligations thereby reducing penalties

• Helps renewable power developers to trade REC's and realise the value of power

reducing penalties

Carbon Trading

• India has largest number of registered and pipeline CDM projects in the world.

• Helped to push the RE industry by making projects more financially attractive

• Additional cushion for developers to increase their project returns and RoE

Tax Incentives ‐ Exemptions on h d h l f

41Source:

Tax Incentives xemptions onCapital Investments and

Generation

• Tax exemption instruments such as exemptions or reductions on excise and customs duty have been introduced

• Tax Incentives help improving RoE ofdeveloper

State RE Policies• Examples of state with policies for RE include Karnataka, Punjab,

Madhya Pradesh, Gujarat, Himachal Pradesh, Uttarakhand etc• The number of clearances required for

renewable projects has come down

Renewable Energy SectorGovernment Initiatives & Interventions

• One REC to be issued for every MWh of electricity fed to the grid and metered at the bus‐bar of generator

• REC issued is valid for a period of 1 yearO i

Renewable Energy Certificates

• Not related to Carbon Credits, both mechanisms operate independent of each other.

• Pricing of REC component:

• Sold in the exchange within a range of floor price and ceiling price as fixed by CERC from time to time

• A renewable generating entity that has:

Overview

g g y

• Not entered into any PPA at a preferential tariff

• Sells its power to a local distribution licensee at a cost at or below the Average Power Purchase Cost (excl. RE power cost)

• Sells power either to the third party or through Power Exchanges

Eligibility

Renewable Purchase Obligations

• In 2007, the Government released draft versions of a new policy which seeks to increase the target to 20 percent by 2020

• Several State Regulators (“SERC”) have translated this national target into Renewable Purchase Obligations (RPO)• RPOs mandate the minimum quantum of electricity which distribution utilities in the States have to source from renewable sources (failing which, a penalty may be imposed on them)

• On a pan‐Indian basis, the total RPO commitment by the 12 States that have implemented it constitutes ~5.33 percent of the total power consumption in 2007‐08

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percent of the total power consumption in 2007‐08• The RPO system passes on the onus of increasing renewable energy consumption to the State DISCOMS – effectively the cost of acquiring this renewable electricity is passed onto the consumer through higher power tariffs

Source: Ministry of New and Renewable Energy, Government of India

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Vibrant Gujarat Summit Profile for Energy Spectrum Sector

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