eu-india renewable energy opportunitiesebtc.eu/pdf/130805_rep_a-report-on-eu-india-renewable... ·...

72
A REPORT ON EU-INDIA RENEWABLE ENERGY OPPORTUNITIES A REPORT ON EU-INDIA RENEWABLE ENERGY OPPORTUNITIES

Upload: tranthuy

Post on 03-Apr-2018

234 views

Category:

Documents


9 download

TRANSCRIPT

Page 1: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

A report on

EU-IndIa rEnEwablE EnErgy opportUnItIEs

A report on

EU-IndIa rEnEwablE EnErgy opportUnItIEs

Page 2: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

DISCLAIMER

The technical suggestions/recommendations in the report should not be construed as advice of any form. EBTC shall not be liable for any loss, damage, liability or expense incurred or suffered by use of this report, including, without limitation, any fault, error, omission with respect thereto. Neither EBTC/its partners nor EUROCHAMBRES make any warranty, express or implied or assume legal liability or responsibility for accuracy, completeness, or use of any third party information in the report. The report may include text, information, table or data that may be a copyright of a third party. It is assumed that such information has been obtained through prior consent of the owner by the EBTC affiliates/partners. If anyone is found selling the report or commercially acquiring any gain directly or indirectly, it should be immediately brought to the notice of EBTC for further actions.

TRADEMARk DISCLAIMER:

Any specific name, logo, trademark, sign, and/or design or any other intellectual property referenced herein are merely used for research purpose and are the property of their respective owners. Their reference in this publication does not either implicitly or explicitly constitute a suggestion, warranty, indication or recommendation of the products manufactured, produced, marketed or traded by the respective intellectual property owners/holders.

Copyright ©2010 EBTC/Coventry & Warwickshire Chamber of Commerce (CWCC). Reproduction or retransmission of the materials, in whole or in part in unamended form is allowed provided reference to the valid source is given. Reproduction for commercial aims even with source indication is forbidden. The report is free and available on EBTC website site www.ebtc.eu

EBTC is a European Union initiative managed and implemented by EUROCHAMBRES. This document has been produced with the financial assistance of the European Union. The contents of this document are the sole responsibility of the EBTC/ Coventry & Warwickshire Chamber of Commerce (CWCC) and can under no circumstances be regarded as reflecting the position of the European Union.

Any complains or assertions should be mailed at [email protected]

Page 3: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

A REpORT ONEU-IndIa rEnEwablE EnErgy opportUnItIEs

Contents

1. Introduction 5

BackgroundScopeDefinitions

2. overview 8

3. India – the scenario 12

Current energy needs and energy provisionFuture target needs Grid interactive RE targetsOff grid RE targetsGovernment strategy and policy

4. European Union 21

OverviewRE technology sectorsRE developments by EU countryIndia – Renewable energy sector evaluations

5. solar 35

6. wind 42

7. biomass and waste to Energy 49

8. small Hydro Electric power 56

9. geothermal 60

10. ocean energy 61

11. Clean coal 62

appendices 64

Information sources 68

Page 4: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable
Page 5: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

1. Introduction

Background

This report has been prepared for Coventry & Warwickshire Chamber of Commerce(CWCC), a partner organisation in the European Business and Technology Centre (EBTC) which is a programme co-funded by the European Union and managed and delivered by Eurochambres.

One of the core objectives of EBTC is to address climate change challenges in India and assist businesses and science and research organisations in the EU and India to work together towards generating new business opportunities and technology transfer.

CWCC commissioned a number of reports on the renewable energy (RE) sector - in India and the European Union - which focus on solar, wind and marine/hydro energy. Other clean and/or renewable energy sources such as biomass, waste to energy projects, clean coal and nuclear sources were also covered. This report draws together the outcomes and conclusions of the individual country reports into a summary document which is to be used by EBTC to highlight the opportunities for the EU renewable energy sector to help India meet its climate change challenges. Additional desk research has been carried out as necessary to validate and add to the conclusions reached in the individual country reports, and to fill where possible any information gaps identified in the individual reports.

It is the aim that this final report will encourage European companies and science and research organisations to identify and develop business partnerships with Indian organisations which can, as a result, help to address India’s future energy requirements through renewable sources – thus also addressing the challenges of climate change.

Scope

This publication aims to offer an overview of the opportunities which exist for EU-India development activities in the main sectors of renewable energy: solar, wind, hydro and biomass, with consideration also given to those sectors which are, thus far, less well commercialised, such as wave, tidal, geothermal and clean coal technologies.

After an overview of the present scenario and the projected growth over the next decade, this report aims to highlight some of the priorities identified in India for R&D and technology transfer as the country addresses its renewable energy goals. An overview is also given of the scenario in the EU, highlighting those RE technology sectors which have been developed most effectively in each European region, and thus where opportunities for technology transfer into the Indian market are perhaps most appropriate and will offer the most cost and technology effective outcomes.

This report has a limited scope and it is concentrated mainly on initiatives stimulated at the central level. The States in India each have their own policy for energy and renewable energy, and there are also many initiatives at a local level that cannot realistically be covered in a report of this scope.

Definitions

India is blessed with a variety of renewable energy sources, the main ones being the sun, wind, biomass, biogas, and small hydro power. Large hydro power is also renewable in

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

promoting European Clean Technologies in India & Tackling Climate Change

5

Page 6: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

nature, but has been utilized all over the world for many decades, and is generally not included in the term ‘new and renewable sources of energy’. Municipal and industrial wastes can also be useful sources of energy, but are basically different forms of biomass.

The Indian Ministry of New and Renewable Energy therefore categorises renewable energy for Grid Interactive Renewable Power as comprising (mainly) the following resources:

(i) Solar power(ii) Wind power(iii) Biomass power/Bagasse Cogeneration(iv) Small hydro power

Urban and industrial waste to energy also provides some current small capacity and offers potential in the future.

Off Grid/Decentralized Renewable Energy includes biogas plants, biomass gasifiers (for rural energy supply), solar photo voltaic systems (SPV), rural solar lights, solar thermal systems for water heating etc, micro-hydro systems and water mills, urban & municipal waste to energy (WTE) plants, aero-generators and hybrid systems

Solar energy, experienced as heat and light, can be used through two routes: thethermal route uses the heat for water heating, cooking, drying, water purification, power generation, and other applications; the photovoltaic (PV) route converts the light in solar energy into electricity, which can then be used for a number of purposes such as lighting, pumping, communications, and power supply in unelectrified areas. Energy from the sun has many features which make it an attractive and sustainable option: global distribution, pollution free, and the virtually inexhaustible supply.

Concentrated solar power systems (also called concentrating solar power and CSP) use mirrors or lenses to concentrate a large area of sunlight, or solar thermal energy, onto a small area. Electrical power is produced when the concentrated light is converted to heat, which drives a heat engine (usually a steam turbine) connected to an electrical power generator.

Solar photovoltaics (SPV) is the process of converting solar radiation (sunlight) into electricity using a solar cell - a semi-conducting device made of silicon or other materials, which, when exposed to sunlight, generates electricity. The magnitude of the electric current generated depends on the intensity of the solar radiation, exposed area of the solar cell, the type of material used in fabricating the solar cell, and ambient temperature. Solar cells are connected in series and parallel combinations to form modules which provide power.

Wind power systems range from large scale, grid connected turbines operating within wind farms (either on or off shore), through a range of hybrid systems to small and micro wind turbines which stand alone and can enable power to be provided into remote areas more quickly and cost effectively than via grid connection.

Biomass includes wastes produced during agricultural and forestry operations (for example straws and stalks) or produced as a by-product of processing operations of agricultural produce (e.g., husks, shells, deoiled cakes, etc); wood produced in dedicated energy plantations or recovered from wild bushes/weeds; and the wood waste produced in some industrial operations.

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

EUROpEAN BUSINESS AND TECHNOLOGy CENTRE

6

Page 7: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

nature, but has been utilized all over the world for many decades, and is generally not included in the term ‘new and renewable sources of energy’. Municipal and industrial wastes can also be useful sources of energy, but are basically different forms of biomass.

The Indian Ministry of New and Renewable Energy therefore categorises renewable energy for Grid Interactive Renewable Power as comprising (mainly) the following resources:

(i) Solar power(ii) Wind power(iii) Biomass power/Bagasse Cogeneration(iv) Small hydro power

Urban and industrial waste to energy also provides some current small capacity and offers potential in the future.

Off Grid/Decentralized Renewable Energy includes biogas plants, biomass gasifiers (for rural energy supply), solar photo voltaic systems (SPV), rural solar lights, solar thermal systems for water heating etc, micro-hydro systems and water mills, urban & municipal waste to energy (WTE) plants, aero-generators and hybrid systems

Solar energy, experienced as heat and light, can be used through two routes: thethermal route uses the heat for water heating, cooking, drying, water purification, power generation, and other applications; the photovoltaic (PV) route converts the light in solar energy into electricity, which can then be used for a number of purposes such as lighting, pumping, communications, and power supply in unelectrified areas. Energy from the sun has many features which make it an attractive and sustainable option: global distribution, pollution free, and the virtually inexhaustible supply.

Concentrated solar power systems (also called concentrating solar power and CSP) use mirrors or lenses to concentrate a large area of sunlight, or solar thermal energy, onto a small area. Electrical power is produced when the concentrated light is converted to heat, which drives a heat engine (usually a steam turbine) connected to an electrical power generator.

Solar photovoltaics (SPV) is the process of converting solar radiation (sunlight) into electricity using a solar cell - a semi-conducting device made of silicon or other materials, which, when exposed to sunlight, generates electricity. The magnitude of the electric current generated depends on the intensity of the solar radiation, exposed area of the solar cell, the type of material used in fabricating the solar cell, and ambient temperature. Solar cells are connected in series and parallel combinations to form modules which provide power.

Wind power systems range from large scale, grid connected turbines operating within wind farms (either on or off shore), through a range of hybrid systems to small and micro wind turbines which stand alone and can enable power to be provided into remote areas more quickly and cost effectively than via grid connection.

Biomass includes wastes produced during agricultural and forestry operations (for example straws and stalks) or produced as a by-product of processing operations of agricultural produce (e.g., husks, shells, deoiled cakes, etc); wood produced in dedicated energy plantations or recovered from wild bushes/weeds; and the wood waste produced in some industrial operations.

Cogeneration is the process in which more than one form of energy (such as steam and electricity) is produced in a sequential manner by use of renewable biowaste, including bagasse and rice husk. Bagasse co-generation uses sugarcane bagasse, a solid waste from the sugar cane industry, as a conventional boiler fuel, and for cogeneration with surplus power supplied to the state grid.

Biogas is a clean fuel produced through anaerobic digestion of a variety of organic wastes: animal, agricultural, domestic, and industrial. Anaerobic digestion comprises three steps.

• Decomposition (hydrolysis) of plant or animal matter to break down complex organic materials into simple organic substances

• Conversion of decomposed matter into organic acids• Conversion of acids into methane gas

Hydro power is the largest renewable energy resource being used for the generation of electricity. In India, hydro power projects with a station capacity of up to 25 Megawatt (MW) each fall under the category of small hydro power (SHP). SHP projects can be set up on rivers, canals or at dams.

Ocean energy includes generation of power by harnessing tidal changes or waves (often by the construction of barrages at appropriate coastal points); and ocean thermal energy conversion (OTEC or OTE) which uses the temperature difference that exists between deep and shallow waters to run a heat engine.

Geothermal energy harnesses the heat from the interior of the earth when it comes to, or close to, the earth’s surface.

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

promoting European Clean Technologies in India & Tackling Climate Change

7

Page 8: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

2. Overview

India’s substantial and sustained economic growth is placing enormous demands on its energy resources. Increasing urbanisation and the continuing rapid development of economic prosperity means that consumption of power per capita in India is increasing at a rate which greatly outstrips supply. The country faces potentially severe energy supply issues if it is to continue in its growth as a developing world economy.

With over a billion people, India is already the world’s sixth largest energy consumer. In order to meet its economic and social development goals, the Government of India aims to sustain an economic growth rate of 8% p.a. for the next 25 years. To deliver this growth, it is estimated that India’s energy supply will need to at least double by 2020, and increase by three to four times by 2031-32.

Currently 65% of India’s energy is provided by the traditional thermal providers of coal, oil and gas. Coal makes up the majority of this - around 55% of domestic power capacity - with gas providing nearly 10%. There is a significant risk of lesser thermal capacity being installed in the coming years - because of both production and logistic constraints onindigenous coal, which is generally of poor quality - and therefore also increased dependence on imported coal. India also imports around 80% of its oil; future energy security and cost is therefore a serious issue. Other established sources of energy also provide only part of the answer. Whilst there has been significant accumulation of gas reserves over recent years these will only go a small way to meeting the nations power requirements. Large hydro-electric installations provide over 20% of India’s power capacity but further development is likely to be slow and costly. Nuclear power is also beset with problems.

Installed power capacity (MW) in India at 31 January 2011Technology Capacity installedThermal 93,838Hydro 37,367Renewable 18,842Gas 17,456Nuclear 4,780

Source: MNRE Annual Report

Significant increases in the demand for electricity have been seen at all levels and for all applications - industrial and commercial, institutional and domestic - and despite substantial increases in installed electricity capacity in India, demand has now outstripped supply for the last six decades. As a further detrimental ‘knock-on’ effect, because of the electricity supply shortfall, large quantities of oil products are used to meet power requirements. For example, in rural areas kerosene is used by many communities to provide basic lighting; this further highlights the difficulties faces by large proportions of the country, especially those in rural communities, where there is no access (or very limited access) to electricity or other forms of energy. As much as 50% of the population is affected in this way.

Climate change

India’s response to climate change is an important feature of the energy supply issue. On the environmental front, India, like many developing countries, is facing increasing

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

EUROpEAN BUSINESS AND TECHNOLOGy CENTRE

8

Page 9: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

2. Overview

India’s substantial and sustained economic growth is placing enormous demands on its energy resources. Increasing urbanisation and the continuing rapid development of economic prosperity means that consumption of power per capita in India is increasing at a rate which greatly outstrips supply. The country faces potentially severe energy supply issues if it is to continue in its growth as a developing world economy.

With over a billion people, India is already the world’s sixth largest energy consumer. In order to meet its economic and social development goals, the Government of India aims to sustain an economic growth rate of 8% p.a. for the next 25 years. To deliver this growth, it is estimated that India’s energy supply will need to at least double by 2020, and increase by three to four times by 2031-32.

Currently 65% of India’s energy is provided by the traditional thermal providers of coal, oil and gas. Coal makes up the majority of this - around 55% of domestic power capacity - with gas providing nearly 10%. There is a significant risk of lesser thermal capacity being installed in the coming years - because of both production and logistic constraints onindigenous coal, which is generally of poor quality - and therefore also increased dependence on imported coal. India also imports around 80% of its oil; future energy security and cost is therefore a serious issue. Other established sources of energy also provide only part of the answer. Whilst there has been significant accumulation of gas reserves over recent years these will only go a small way to meeting the nations power requirements. Large hydro-electric installations provide over 20% of India’s power capacity but further development is likely to be slow and costly. Nuclear power is also beset with problems.

Installed power capacity (MW) in India at 31 January 2011Technology Capacity installedThermal 93,838Hydro 37,367Renewable 18,842Gas 17,456Nuclear 4,780

Source: MNRE Annual Report

Significant increases in the demand for electricity have been seen at all levels and for all applications - industrial and commercial, institutional and domestic - and despite substantial increases in installed electricity capacity in India, demand has now outstripped supply for the last six decades. As a further detrimental ‘knock-on’ effect, because of the electricity supply shortfall, large quantities of oil products are used to meet power requirements. For example, in rural areas kerosene is used by many communities to provide basic lighting; this further highlights the difficulties faces by large proportions of the country, especially those in rural communities, where there is no access (or very limited access) to electricity or other forms of energy. As much as 50% of the population is affected in this way.

Climate change

India’s response to climate change is an important feature of the energy supply issue. On the environmental front, India, like many developing countries, is facing increasing

international pressure to reduce its greenhouse emissions. Although it has one of the lowest per capita rates of energy consumption and pollution in the world, its population size and dependence on coal for over 50% of its energy generation makes India one of the world’s significant polluters.

On June 30, 2008, Prime Minister Manmohan Singh released India’s first National Action Plan on Climate Change (NAPCC) outlining existing and future policies and programs to address climate mitigation and adaptation. The plan identified eight core “national missions”, to run through until 2017, and directed Government ministries to submit detailed implementation plans to the Prime Minister’s Council on Climate Change by the end of 2008.

The National Action Plan emphasized the overriding priority of maintaining high economic growth rates to raise living standards in India, and identified measures that could promote development objectives while also yielding benefits for addressing climate change effectively. It stated that these national measures would be more successful with assistance from developed countries, and pledged that India’s per capita greenhouse gas emissions “will at no point exceed that of developed countries even as we pursue our development objectives.”Directly addressing energy issues, the NAPCC included the National Solar Mission and the National Mission for Enhanced Energy Efficiency within its core National missions.

Other initiatives described ongoing programmes:

o Power Generation: The government is mandating the retirement of inefficient coal-fired power plants and supporting the research and development of IGCC (integrated gas combined cycle) and supercritical technologies.

o Renewable Energy: Under the Electricity Act 2003 and the National Tariff Policy 2006, the central and the state electricity regulatory commissions must purchase a certain percentage of grid-based power from renewable sources.

o Energy Efficiency: Under the Energy Conservation Act 2001, large energy-consuming industries are required to undertake energy audits and an energy labelling program for appliances has been introduced.

The country has immense renewable energy (RE) potential, which, if harnessed, can help it control its emissions without compromising on its economic growth, and also help to bridge the supply deficit. Policies are therefore in place which aim to increase the share of clean energy generation (through nuclear, hydro and renewable sources) and make savings through energy efficiency measures.

As a result of the above, India sees the huge contribution that renewable energy can make to alleviate the energy supply problem and at the same time help it address climate change.

National commitment to Renewable Energy (RE)

The importance of developing renewable energy sources has been recognised by India for many years, and it is envisaged and understood that RE will play a key role in providing a significant part of the solution to the country’s energy needs whilst at the same time helping it to achieve real progress towards its climate change goals.

At the Government level, political commitment to renewable energy was seen in the establishment of the first Department of Non-Conventional Energy Sources in 1982 – this was then upgraded to a full-fledged Ministry in 1992 (MNES – Ministry for Non-Conventional Energy Sources) and subsequently renamed the Ministry of New and Renewable Energy (MNRE). India is the only country in the world which has such a national Ministry; the MNRE

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

promoting European Clean Technologies in India & Tackling Climate Change

9

Page 10: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

is the nodal Ministry of the Government of India for all matters relating to new and renewable energy.

The MNRE has a broad remit to develop and facilitate the provision of renewable energy in both grid and non-grid connected applications, including harnessing renewable power, provision of renewable energy to rural areas for lighting, cooking and motive power, use of renewable energy in urban, industrial and commercial applications and development of alternate fuels and applications.

The objective of the Ministry is “to promote renewable energy utilization, develop affordable RE technologies and increase the contribution of renewable energy overall. The Ministry has a wide range of programmes on research and development, demonstration and promotion of renewable energy for rural, urban, commercial and industrial applications as well as for grid-interactive power generation”.

The Ministry adopts a three-fold strategy for the development, promotion and use of renewable energy technologies across the country by (i) providing budgetary support for research, development and demonstration of technologies (ii) facilitating institutional finance through various financial institutions and (iii) promoting private investment through fiscal incentives, tax holidays, depreciation allowances and remunerative returns for power fed into the grid.

Additionally, the Ministry recognises the need to develop the human resources, knowledge and skills available across the sector if it is to achieve its objectives. To this end it has initiated a series of activities including the award of Renewable Energy Fellowships, incorporating renewable energy in academic course curriculums and introducing training programmes for renewable energy professionals.

In 2003, the Electricity Act established a regulatory framework which set out a structure of preferential tariffs and obligations for the purchase of renewable energy, and which provided for a number of financial and fiscal incentives. These activities have indeed acted as a stimulus; in April 2002, renewable energy based power generation installed capacity was 3,497 MW which represented just 3% of the total installed capacity in the country. By January 2011 this had increased 18,842 MW of the total installed capacity of 172,283 MW -a figure which represents 11% of the total.

The growth of renewable energy within the overall energy mix, together with the environment of support and incentives offered, has led to Ernst & Young rating India as the fourth most attractive country for renewable energy investment in the world(behind USA, China and Germany).

According to the MNRE, 23% of the total additions to power capacity generation in India over the three years up to January 2011 were renewable power capacity additions. (Note: this figure does not include additions gained from large hydro generation, which although a renewable source is not counted as such within the totals quoted by MNRE). The major contribution to the renewable capacity additions has come from wind power which represents approximately 70% of the total renewable sector capacity.

As mentioned above, the Government of India faces particular issues associated with the provision of power to rural and poorer parts of the country. Therefore, programmes for the provision of off-grid and stand alone, decentralised systems to generate and distribute power to such regions are an important priority for the MNRE. These programmes prioritise the provision of electricity in rural areas and the provision of renewable cooking energy, with an

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

EUROpEAN BUSINESS AND TECHNOLOGy CENTRE

10

Page 11: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

is the nodal Ministry of the Government of India for all matters relating to new and renewable energy.

The MNRE has a broad remit to develop and facilitate the provision of renewable energy in both grid and non-grid connected applications, including harnessing renewable power, provision of renewable energy to rural areas for lighting, cooking and motive power, use of renewable energy in urban, industrial and commercial applications and development of alternate fuels and applications.

The objective of the Ministry is “to promote renewable energy utilization, develop affordable RE technologies and increase the contribution of renewable energy overall. The Ministry has a wide range of programmes on research and development, demonstration and promotion of renewable energy for rural, urban, commercial and industrial applications as well as for grid-interactive power generation”.

The Ministry adopts a three-fold strategy for the development, promotion and use of renewable energy technologies across the country by (i) providing budgetary support for research, development and demonstration of technologies (ii) facilitating institutional finance through various financial institutions and (iii) promoting private investment through fiscal incentives, tax holidays, depreciation allowances and remunerative returns for power fed into the grid.

Additionally, the Ministry recognises the need to develop the human resources, knowledge and skills available across the sector if it is to achieve its objectives. To this end it has initiated a series of activities including the award of Renewable Energy Fellowships, incorporating renewable energy in academic course curriculums and introducing training programmes for renewable energy professionals.

In 2003, the Electricity Act established a regulatory framework which set out a structure of preferential tariffs and obligations for the purchase of renewable energy, and which provided for a number of financial and fiscal incentives. These activities have indeed acted as a stimulus; in April 2002, renewable energy based power generation installed capacity was 3,497 MW which represented just 3% of the total installed capacity in the country. By January 2011 this had increased 18,842 MW of the total installed capacity of 172,283 MW -a figure which represents 11% of the total.

The growth of renewable energy within the overall energy mix, together with the environment of support and incentives offered, has led to Ernst & Young rating India as the fourth most attractive country for renewable energy investment in the world(behind USA, China and Germany).

According to the MNRE, 23% of the total additions to power capacity generation in India over the three years up to January 2011 were renewable power capacity additions. (Note: this figure does not include additions gained from large hydro generation, which although a renewable source is not counted as such within the totals quoted by MNRE). The major contribution to the renewable capacity additions has come from wind power which represents approximately 70% of the total renewable sector capacity.

As mentioned above, the Government of India faces particular issues associated with the provision of power to rural and poorer parts of the country. Therefore, programmes for the provision of off-grid and stand alone, decentralised systems to generate and distribute power to such regions are an important priority for the MNRE. These programmes prioritise the provision of electricity in rural areas and the provision of renewable cooking energy, with an

associated reduction in the usage (and carbon emissions) of kerosene, diesel and oil. It is expected that these activities will be supported by a reduction in the demand for electricity through the construction of energy efficient buildings and provision of solar water heating.

Below national Government level, responsibility for implementation of programmes lies with individual State Renewable Energy Development Agencies which, in turn, work with other State Government and local administrative bodies, institutions, Non-Governmental Organisations (NGOs) and local village organisations. (Note: there are 28 states and 7 union territories in India).

MNRE is also responsible for specific renewable energy technology centres. These include the Solar Energy Centre near Delhi which carries out testing of solar thermal and solar photovoltaic materials, devices and systems, as well as conducting applied research and training, and the Centre for Wind Energy Technology (C-WET), located in Chennai, which provides technical support for wind energy programmes. The Ministry sponsors R&D programmes conducted in research institutions and laboratories and in industry, both public and private sector. A separate financing institution, the Indian Renewable Energy Development Agency (IREDA), has been established as a public sector undertaking to assist with market development and financing of renewable energy projects.

In drawing up its Strategic Plan for the period 2011-17, MNRE recognised the need to confer with all of the above institutions and bodies, and also with a wider range of additional stakeholders and partners, including Research & Development/Technical institutions, equipment manufacturers and technology providers, the Regulators (Central and State Electricity Regulating Commissions), other Government of India (GoI) Ministries,international financial institutions, developers and investors (specifically including foreign sources), and end users.

India- EU cooperation and support

Co-operation between India and the EU in the field of energy is relatively new.

At the fifth EU-India Summit of 8 November 2004 the political decision was taken to embark in an energy dialogue. Key priorities set for cooperation were development of clean coal technologies, increasing energy efficiency and savings, promoting environment friendly energies as well as assisting India in energy market reforms.

The EU-India Energy Panel was created as the formal instrument of EU-India cooperation in the energy sector and its constitutive meeting was held in June 2005. Four working groups were established, including one to focus on renewable energy and energy efficiency.

The EU – India energy partnership has now reached a mature level. Shared objectivesinclude enhancing energy security and safety, promoting energy efficiency, and pursuingsustainable development through, among other things, the development of clean and renewable energy sources. Energy is an important pillar of both countries long-term policies, the Europe 2020 strategy and the forthcoming Indian Five Year Plan.

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

promoting European Clean Technologies in India & Tackling Climate Change

11

Page 12: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

3. India - the scenario

Current energy needs and energy provision

Renewable energy technologies have excellent potential in India and although considerable progress has been achieved in certain sub-sectors, there is very considerable potential to do more.

India’s current installed power capacity is summarised in the following table

Sector MW %State Sector 83,605.65 44.8Central Sector 57,732.63 30.9Private Sector 45,316.34 24.3Total 186,654.62 100.0

The fuel used to generate this electricity is provided by:

Fuel MW %Total Thermal 122,963.98 65.87 of which: Coal (104,021.38) (55.72) Gas (17,742.85) (9.50) Oil ( 1,199.75) ( 0.64)Hydro (Renewable) 38,748.40 20.75Nuclear 4,780.00 2.56Renewable Energy (RES) 20,162.24 10.80Total 186,654.62 100.00

Data: Indian Ministry of Power 2011

Note: Renewable Energy Sources (RES) include Small Hydro Projects (SHP), Biomass Gasifiers (BG), Biomass Power (BP), Urban & Industrial Waste to Power (U&I) and Wind Energy.

RE therefore currently represents approximately 10% of the country’s power capacity.

A number of factors have combined which together have led to the growth in the renewable energy sector in India, including:

• The country is generously endowed with RE resources: solar, wind, bio-mass materials, urban and industrial wastes and small hydro resources

• There is a large demand-supply gap in electricity• Low gestation periods for setting up RE projects can offer a quick return on

investments• Conducive government policies have been established• There are a large number of financing options available for capital equipment

India has therefore become a land of opportunity for investors in renewable energy technologies. The country has already established a position to provide consultancy services, transfer technologies, set up manufacturing plants and projects on a turnkey basis and organise programmes in other countries. Besides foreign investments, India is looking to international co-operation across the RE technology

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

EUROpEAN BUSINESS AND TECHNOLOGy CENTRE

12

Page 13: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

3. India - the scenario

Current energy needs and energy provision

Renewable energy technologies have excellent potential in India and although considerable progress has been achieved in certain sub-sectors, there is very considerable potential to do more.

India’s current installed power capacity is summarised in the following table

Sector MW %State Sector 83,605.65 44.8Central Sector 57,732.63 30.9Private Sector 45,316.34 24.3Total 186,654.62 100.0

The fuel used to generate this electricity is provided by:

Fuel MW %Total Thermal 122,963.98 65.87 of which: Coal (104,021.38) (55.72) Gas (17,742.85) (9.50) Oil ( 1,199.75) ( 0.64)Hydro (Renewable) 38,748.40 20.75Nuclear 4,780.00 2.56Renewable Energy (RES) 20,162.24 10.80Total 186,654.62 100.00

Data: Indian Ministry of Power 2011

Note: Renewable Energy Sources (RES) include Small Hydro Projects (SHP), Biomass Gasifiers (BG), Biomass Power (BP), Urban & Industrial Waste to Power (U&I) and Wind Energy.

RE therefore currently represents approximately 10% of the country’s power capacity.

A number of factors have combined which together have led to the growth in the renewable energy sector in India, including:

• The country is generously endowed with RE resources: solar, wind, bio-mass materials, urban and industrial wastes and small hydro resources

• There is a large demand-supply gap in electricity• Low gestation periods for setting up RE projects can offer a quick return on

investments• Conducive government policies have been established• There are a large number of financing options available for capital equipment

India has therefore become a land of opportunity for investors in renewable energy technologies. The country has already established a position to provide consultancy services, transfer technologies, set up manufacturing plants and projects on a turnkey basis and organise programmes in other countries. Besides foreign investments, India is looking to international co-operation across the RE technology

spectrum including projects for: manufacturing of low-cost solar photovoltaic cells/modules, fluidized bed biomass gasifiers, advanced technologies for treatment of waste, energy recovery from industrial effluents and sewage, energy from municipal solid waste, fuel cells and electric vehicles.

Indian and European investors can contribute to technology development, manufacture and export of various RE systems and devices. There are many opportunities for increasing the manufacturing capacity of a range of RE technologies across a number of applications: India’s size and power demands mean that low-cost, proven RE devices and systems needto be produced on a mass scale. In rural areas, the focus is on distributed generation through small capacity wind electric generators, standard solar PV power packs, etc on astand-alone basis or via hybrid systems.

India has been an enthusiastic supporter and founding member of the International Renewable Energy Agency (IRENA) and is keen to engage further on the international scene to develop new technologies and drive down the cost of renewable energy.

According to the MNRE Strategic Plan for 2011-17, the current status of development of various grid connected renewable energy sources is as follows:

• Wind power, biomass power/bagasse cogeneration and small hydro powertechnologies are mature and commercially viable per se. However, their deployment isdictated and limited by local resource availability and logistics and environmental conditions.

• Both solar PV and solar thermal technologies are in the developmental stage and real progress will take place only after technologies have been further established and costs have been substantially reduced. Ambitious targets are proposed in the Indian Government’s Solar Mission.

• In the last decade, there have been many developments in wind power technologyleading to the availability of higher capacity and better efficiency turbines and also turbines suiting low-wind density conditions However, issues related to environmental, forest clearance and transmission constraints could potentially affect growth adversely.

• Generation of power from biomass could increase if the Ministry’s efforts regarding creation of dedicated energy plantations bear fruit. However, competitive local use of traditionally available biomass is a limiting factor.

• There is significant potential for small hydro power in the Himalayan and sub-Himalayan region but the power evacuation and transmission network needs expansion. Remoter areas such as these also bring significant logistical constraints.

Future target needs

The Strategic Plan for the New and Renewable Energy Sector for the period 2011-17, published in February 2011 by The Ministry of New And Renewable Energy sets out it’s aspiration to increase the contribution of renewable power in the total installed power generation capacity of the country from 16 per cent to about 18 per cent by 2022, with a 7.3 per cent contribution to electricity mix. This would require an achievement of about 13% over the already ambitious targets proposed.

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

promoting European Clean Technologies in India & Tackling Climate Change

13

Page 14: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

The table below highlights the huge potential for future growth of renewable energy provision against the installed capacity.

Renewable Energy Potential & Installed Capacity (MW)

50000

7000

16000 15000

5000

45000

2.12 58 683 2344 1033

9755

0

10000

20000

30000

40000

50000

60000

Solar Waste toenergy

Biomass Small Hydro Cogeneration Wind

Potentia l Insta l led Capaci ty

Source: MNRE Website (note: as on 31.01.2009)

Grid interactive RE targets

The MNRE has established the following targets for 2011-17 (see table below); these targets were set with a view to the estimated total potential, progress made to date and against the corresponding targets in the previous period, and the general constraints in different renewable sectors.

Targets for Grid interactive RE Power for the period 2011-17(All Figures in MW)

Technologies/Year

Biomass/ Agriwaste

BagasseCogen

Urban & Industrial Waste toEnergy

Small Hydro Power

Solar Wind Total Targets

Cumulative(anticipatedup to 31.03.11)

1025 1616 84 3040 35 13900 19683

2011-12 100 250 20 350 300 800 34202012-13 80 300 25 300 800 2200 37052013-14 80 300 35 300 400 2200 33152014-15 80 250 45 300 400 2200 32752015-16 80 250 55 350 1000 2200 39352016-17 80 250 60 360 1100 2200 4050Total Targetfor the 6-yearperiod

500 1600 240 1960 4000 13400 21700

CumulativeTotal Target

1525 3216 324 5000 4035 27300 41383Say, 41,400

(source: MNRE 2011-17 Strategic Plan)

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

EUROpEAN BUSINESS AND TECHNOLOGy CENTRE

14

Page 15: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

The table below highlights the huge potential for future growth of renewable energy provision against the installed capacity.

Renewable Energy Potential & Installed Capacity (MW)

50000

7000

16000 15000

5000

45000

2.12 58 683 2344 1033

9755

0

10000

20000

30000

40000

50000

60000

Solar Waste toenergy

Biomass Small Hydro Cogeneration Wind

Potentia l Insta l led Capaci ty

Source: MNRE Website (note: as on 31.01.2009)

Grid interactive RE targets

The MNRE has established the following targets for 2011-17 (see table below); these targets were set with a view to the estimated total potential, progress made to date and against the corresponding targets in the previous period, and the general constraints in different renewable sectors.

Targets for Grid interactive RE Power for the period 2011-17(All Figures in MW)

Technologies/Year

Biomass/ Agriwaste

BagasseCogen

Urban & Industrial Waste toEnergy

Small Hydro Power

Solar Wind Total Targets

Cumulative(anticipatedup to 31.03.11)

1025 1616 84 3040 35 13900 19683

2011-12 100 250 20 350 300 800 34202012-13 80 300 25 300 800 2200 37052013-14 80 300 35 300 400 2200 33152014-15 80 250 45 300 400 2200 32752015-16 80 250 55 350 1000 2200 39352016-17 80 250 60 360 1100 2200 4050Total Targetfor the 6-yearperiod

500 1600 240 1960 4000 13400 21700

CumulativeTotal Target

1525 3216 324 5000 4035 27300 41383Say, 41,400

(source: MNRE 2011-17 Strategic Plan)

The targets set out below for the period to 2022 are deemed to be achievable (SMART -Specific, Measurable, Achievable, Realistic, Time-Bound), but the Ministry has also set itself further ‘aspirational targets’ which represent potential growth in capacity for the period to 2022. These aspirational targets feature the biomass/agri-waste, small hydro power and wind energy technology sectors. However, the achievement of these aspirational goals will depend on the interplay of policies, regulations, technology development and resources with a large number of players and stakeholders.

Aspirational Goals for Grid Connected Renewable Power for 2022(All Figures in MW)

Technologies Biomass/Agriwaste

BagasseCogen.

Urban & Industrial Waste toEnergy

Small Hydro Power

Solar Wind Total

SMARTTargets for2022 (MW)

2,500 4,000 800 6,600 20,000 38,500 72,400

AspirationalGoals (MW)

5,000 4,000 800 8,000 20,000 45,000 82,800

Off grid RE targets

Similar targets have been set for off-grid connected RE sources in the 2011-17 strategic plan. Year-by-year targets are set for off grid applications including:

• biogas plants - installation of 150,000–200,000 per year, totalling 1.1 million • biomass gasifiers – 100 additional rural villages to be covered in 2011-12, rising to

200 per year in 2016-17, and 1000 total over the Strategy Plan period• solar PV programme to provide rural electrification of 30 villages in 2011-12, rising to

60 in 2016-17 and a total 270 over the period• decentralised solar PV systems to provide an additional 968 MWp over the period• 1.2-1.3 million rural solar lights to be installed per year throughout the period• 200 micro hydro electric water mills to be installed in 2011-12, rising to 450 in 2016-

17 and a total of 1950 new over the period• 1.1 million sq m additional solar thermal systems for water heating to be added each

year throughout the period.• 10 urban waste to energy plants per year• Industrial waste to energy biopower (biomethanisation of liquid effluents;

combustion/gasification of biomass/rice-husk) – an additional 450 MWeq over the period

• An additional 40,000 improved cookstoves to be installed over the period.

There are also aspirational targets for:

• Decentralised solar energy programmes (solar heating, lighting, small power generation systems). Included are niche applications such as solarisation of telecom towers, large scale use by industrial establishments in the manufacturing sector, increased coverage in areas where diesel is the prime source of energy generation,

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

promoting European Clean Technologies in India & Tackling Climate Change

15

Page 16: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

etc. Achievement of these targets requires support of other Ministries, industries and further resources.

• Rural electrification through RE - the Ministry would like to cover some 10,000 villages using biomass-based systems and over 1000 villages from solar power over the period up to 2022.

• Promoting the benefits of Green buildings as a way of saving conventional energy• RE based cooking systems - initiatives have been launched to identify biogas based

product solutions technologies.

In comparison with individual country specific targets within Europe, those for India are clearly enormous. More detail on specific targets and technologies are included in the sections on each individual renewable energy sector later in this report.

Government strategy and policy

The strengths of the renewable energy sector in India can be summarised as follows:

• There a conducive policy and regulatory framework at central level • The country has excellent resource potential• There is growing technology maturity in certain sectors of the renewable energy

industry• Indigenous manufacturers and developers are now emerging• Renewable energy technologies which can offer off-grid/decentralized energy

solutions – especially important for rural India - are also available

However, the Government also recognises that there are a number of weaknesses which need to be addressed. These include:

• The absence of conducive policy and regulatory framework in some States• The relatively high cost of certain technologies• Acceptability of some technologies to end-users• Inconvenience of use of certain renewable energy based applications in comparison

with conventional means• The quality and therefore reliability of equipment – particularly for decentralized

applications• The lack of availability of adequately skilled, technical manpower• The lack of adequate transmission infrastructure in States for evacuation of

renewable power, and of an adequate distribution and service network• General lack of awareness of end-users

Taking on board the above strengths and weaknesses, the MNRE has put in place a strategic plan designed to ensure targets are met. This incorporates strategies to address a number of core elements:

i) Resource Assessment – the need is to continue to create, update and validate a database of renewable energy resources, through a systematic approach, in association with specialized institutions and experts. Key actions for this element include a comprehensive offshore wind resource mapping exercise and the updating of existing resource maps.

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

EUROpEAN BUSINESS AND TECHNOLOGy CENTRE

16

Page 17: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

etc. Achievement of these targets requires support of other Ministries, industries and further resources.

• Rural electrification through RE - the Ministry would like to cover some 10,000 villages using biomass-based systems and over 1000 villages from solar power over the period up to 2022.

• Promoting the benefits of Green buildings as a way of saving conventional energy• RE based cooking systems - initiatives have been launched to identify biogas based

product solutions technologies.

In comparison with individual country specific targets within Europe, those for India are clearly enormous. More detail on specific targets and technologies are included in the sections on each individual renewable energy sector later in this report.

Government strategy and policy

The strengths of the renewable energy sector in India can be summarised as follows:

• There a conducive policy and regulatory framework at central level • The country has excellent resource potential• There is growing technology maturity in certain sectors of the renewable energy

industry• Indigenous manufacturers and developers are now emerging• Renewable energy technologies which can offer off-grid/decentralized energy

solutions – especially important for rural India - are also available

However, the Government also recognises that there are a number of weaknesses which need to be addressed. These include:

• The absence of conducive policy and regulatory framework in some States• The relatively high cost of certain technologies• Acceptability of some technologies to end-users• Inconvenience of use of certain renewable energy based applications in comparison

with conventional means• The quality and therefore reliability of equipment – particularly for decentralized

applications• The lack of availability of adequately skilled, technical manpower• The lack of adequate transmission infrastructure in States for evacuation of

renewable power, and of an adequate distribution and service network• General lack of awareness of end-users

Taking on board the above strengths and weaknesses, the MNRE has put in place a strategic plan designed to ensure targets are met. This incorporates strategies to address a number of core elements:

i) Resource Assessment – the need is to continue to create, update and validate a database of renewable energy resources, through a systematic approach, in association with specialized institutions and experts. Key actions for this element include a comprehensive offshore wind resource mapping exercise and the updating of existing resource maps.

ii) Research & Development - a number of areas have been identified in which R&D efforts are required and the MNRE will continue to support these efforts in R&D institutions, with industry participation. These include technologies, processes, materials, components, subsystems, products and services etc. in different renewable energy sectors.

Highlighted in the strategy for R&D are:

- Solar PV and solar thermal are seen as being critically important in the short and medium term. For PV, the thrust areas are: development of silicon and other materials, efficient solar cells, thin film materials, concentrating PV technology, PV system design with the objective of significantly reducing the ratio of capital cost to power generation. For Solar Thermal, the thrust areas are development of technologies for power generation, industrial process heat systems, solar cooling; technology improvement for various low temperature applications viz. solar water heating, solar cooking, etc. In both solar PV and solar thermal, storage methods are also important.

- Biomass also has short term priorities: improvements in gasification, various sizes of engines, boilers, etc for various feed-stocks are needed.

- Second generation biofuels are seen to have great promise in the medium term- In the longer term, hydrogen has great potential – production, storage and

distribution. There is recognition that R&D in these areas has to be strengthened, and that storage technologies including fuel cells are also going to be important.

Actions required include encouraging private sector participation in R&D and supporting demonstration projects in emerging technologies in partnership with the private sector. Results-oriented fiscal incentives, rather than R&D grants, are likely.

iii) Opening market channels and introducing new business models - a project approach is being adopted which provides greater focus, better targeting, easier implementation and more effective maintenance and monitoring. The strategy is looking to overcome the weakness that renewable energy technologies often do not benefit from economies of scale as individual projects. New channels and different business models, including those which can involve entrepreneurs, and that result in economies of scale and reduced unit costs are therefore being sought. There is recognition that typical renewable energy projects involve many stakeholders, including:

- Equipment manufacturers and suppliers- Banks and other financiers- Installation service providers- Maintenance service providers- Subsidy providers - Regulators (for grid based renewable projects)- Validators (for projects requiring external validation)- Off-takers of energy

Periodic and regular interaction will be conducted with all concerned stakeholders and the Strategic Plan 2011-17 includes a detailed Stakeholder Engagement Plan.

Efficiencies are to be brought about through aggregation and standardization of channels, financing instruments, documentation; the Ministry is working towards creating mechanisms which help with risk management and reduction in the cost of finance.

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

promoting European Clean Technologies in India & Tackling Climate Change

17

Page 18: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

It is also recognised that the nodal agencies at the state level also have a vital role to play in delivering the renewable energy agenda, and that in the past the performance of the States in the capacity has varied widely. An overall capacity building and communications programme to address this is to be put in place, and budgetary support may be stepped up. Key actions identified include enhancing capability of State Nodal Agency programmes through workshops and training programs, and support to SNAs to take up revenue generation activities through PPP projects.

iv) Regulatory frameworks and policy incentives – MNRE will continue to work closely with the Regulatory Agencies at the centre and state level to promote a framework for promotion of renewable energy technologies. This includes issues relating to tariffs for renewable energy projects, renewable purchase obligations and measures including renewable energy certificates and other market based mechanisms, market and grid connectivity issues, and inter-state exchange of renewable energy.

There is a desire to assist the states in setting up transmission systems required primarily for renewable energy projects. There is also recognition that in some areas specific policies and incentives will need to be tailored vis-a-vis solar parks, tariffs, generation based incentives etc. Strong monitoring and evaluation frameworks for the various schemes and programs also need to be established.

v) Financial support and incentives. The MNRE is continuing to work towards the creation of a fund to promote effective deployment of renewable energy technologies and utilizing this to also promote development in areas with energy access issues. The banking and financing community is being urged to support the renewable energy sector. Financial instruments include subsidy schemes, a Risk Guarantee Fund that will address the technology risks, availability of debt at a lower cost through channels such as external borrowing or tax rebates (both for grid and off-grid projects), and enhancing term lending periods from 5 to 10 years. Solar energy technologies are specifically highlighted as targets for these instruments. The National Clean Energy Fund (NCEF) created by the Government is seen as an ideal vehicle for such projects - this imposes a tax on coal production which is intended to fund clean technologies, including renewables.

Some of the key policy and regulatory instruments being adopted in India include:

• Feed in Tariffs/ Preferential Tariffs (FIT). This integrates the impact of all the cost and benefits of RE into a single instrument. It can be adopted for any developed RE technologies by providing long term investment security and market stability. The impact of this is dependent on accurate determination of tariffs commensurate with financial costs as well as the economic benefits of RE.

This is the most common instrument used in India and has been applied across all active RE technologies. FIT has been introduced by most but not all states and it has been noticed that states with inadequate FITs have experienced slow RE development. However, it is felt that despite being widely used, the absence of consistent FIT determination methodology (not taking into consideration accurate economic costs and benefits) across states has affected optimal development of RE resources across the country.

• Accelerated Depreciation (AD). This is an instrument used in situations where the fund mobilisation by the RE industry is not sufficient. It is aimed at accelerating investment in emerging RE technologies by tapping private investors with large disposable income. The private investors are attracted to this as it helps offset tax liability against investments.

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

EUROpEAN BUSINESS AND TECHNOLOGy CENTRE

18

Page 19: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

It is also recognised that the nodal agencies at the state level also have a vital role to play in delivering the renewable energy agenda, and that in the past the performance of the States in the capacity has varied widely. An overall capacity building and communications programme to address this is to be put in place, and budgetary support may be stepped up. Key actions identified include enhancing capability of State Nodal Agency programmes through workshops and training programs, and support to SNAs to take up revenue generation activities through PPP projects.

iv) Regulatory frameworks and policy incentives – MNRE will continue to work closely with the Regulatory Agencies at the centre and state level to promote a framework for promotion of renewable energy technologies. This includes issues relating to tariffs for renewable energy projects, renewable purchase obligations and measures including renewable energy certificates and other market based mechanisms, market and grid connectivity issues, and inter-state exchange of renewable energy.

There is a desire to assist the states in setting up transmission systems required primarily for renewable energy projects. There is also recognition that in some areas specific policies and incentives will need to be tailored vis-a-vis solar parks, tariffs, generation based incentives etc. Strong monitoring and evaluation frameworks for the various schemes and programs also need to be established.

v) Financial support and incentives. The MNRE is continuing to work towards the creation of a fund to promote effective deployment of renewable energy technologies and utilizing this to also promote development in areas with energy access issues. The banking and financing community is being urged to support the renewable energy sector. Financial instruments include subsidy schemes, a Risk Guarantee Fund that will address the technology risks, availability of debt at a lower cost through channels such as external borrowing or tax rebates (both for grid and off-grid projects), and enhancing term lending periods from 5 to 10 years. Solar energy technologies are specifically highlighted as targets for these instruments. The National Clean Energy Fund (NCEF) created by the Government is seen as an ideal vehicle for such projects - this imposes a tax on coal production which is intended to fund clean technologies, including renewables.

Some of the key policy and regulatory instruments being adopted in India include:

• Feed in Tariffs/ Preferential Tariffs (FIT). This integrates the impact of all the cost and benefits of RE into a single instrument. It can be adopted for any developed RE technologies by providing long term investment security and market stability. The impact of this is dependent on accurate determination of tariffs commensurate with financial costs as well as the economic benefits of RE.

This is the most common instrument used in India and has been applied across all active RE technologies. FIT has been introduced by most but not all states and it has been noticed that states with inadequate FITs have experienced slow RE development. However, it is felt that despite being widely used, the absence of consistent FIT determination methodology (not taking into consideration accurate economic costs and benefits) across states has affected optimal development of RE resources across the country.

• Accelerated Depreciation (AD). This is an instrument used in situations where the fund mobilisation by the RE industry is not sufficient. It is aimed at accelerating investment in emerging RE technologies by tapping private investors with large disposable income. The private investors are attracted to this as it helps offset tax liability against investments.

The instrument is acknowledged as the key instrument for success of the wind energy industry in India. (However, this has also led to the lop-sided focus of investment in the wind sector, which has focused on tax savings rather than efficient energy generation).

• Production Subsidies/Generation Based Incentives (GBI). In order to facilitate investments in new and emerging RE technologies, GBI encourages generation rather than simply capacity installation. It focuses on efficiency in project selection, design, procurement, implementation and operation and thereby allows professional players to emerge and participate early in the developing market.

This has been introduced in India to shift investment focus from capacity addition to efficient energy generation. It is expected to open up new markets for players in the wind and solar markets.

• Renewable Purchase Obligation (RPO). This is a demand side tool for promoting cleaner energy. It also provides a guaranteed market for RE power generated, and can enhance investments.

In India RPOs are mandated by the Electricity Act 2003 and National Tariff Policy. Though it has been adopted by a number of states, its implementation remains variable because of the lack of clarity on implementation methodology and absence of adequate penalty mechanisms.

• Renewable Energy Certificates (REC’s). This addresses geographical constraints to RE development, allows the most economic development of RE and helps realise the RE potential of specific areas. It helps create a market for developers and states to achieve their RPO targets through trading in REC's.

The adoption of REC's is currently being contemplated by the Central Electricity Regulatory Commission (CERC) which is looking at the experiences of various countries, including the UK.

• Carbon Trading. This is a global market-based mechanism to help developed countries to meet their carbon reduction targets by facilitating the adoption of relatively high priced but lower carbon technologies. The funds from the trading of carbon credits allow improvement of economic viability for projects with relatively more costly technologies.

India has one of the largest number of registered and upcoming Clean Development Mechanism (CDM) projects in the world, which is expected to improve the financial viability of a number of projects including those in the energy, infrastructure and industrial sectors.

• Capital Subsidy. This is designed to provide a positive impact on investment by smaller players for development of capital-intensive projects. Capital subsidies help lower costs and improve project viability. This instrument, when combined with production incentives, can provide a balanced approach to enhance financial viability of RE projects.

In developing countries like India, capital subsidy incentives by the government have been substantially responsible for the adoption of expensive RE sources for distributed rural electrification as well as for adoption of cleaner domestic appliances. However, industry experts feel that proper maintenance of assets and consistent monitoring mechanisms, often lacking in India, are required to maintain optimal power generation from such projects.

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

promoting European Clean Technologies in India & Tackling Climate Change

19

Page 20: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

• Tax incentives on capital investments and generation. The objective of tax incentives and tax credit schemes is to lower investments and provide larger cash flows from projects, which in turn increases the economic viability of RE projects.

Tax exemption, mainly through exemptions or reductions on excise and customs duty, are used in India - wind energy players especially benefited from this in the 1990's. In terms of exemption of duties on RE generated power, some Indian states have extended these benefits for the first 5 years of project life.

vi) Skills and Human Resources

There is recognition of the need development of for human resources and skills; these focus on management and financial, and technical /scientific areas (including highly specialised areas) and relate to institutional, Government/State agency and corporate sectors.

Manufacturing is specifically highlighted: “ Small and medium scale manufacturing, industrial undertakings, services and business enterprises (SME) on development of convenient technology packages for different SME groups, technological solution awareness, best practices for renewable energy use, strengthening outreach of renewable energy technologies to consumers etc”.

The Ministry has been implementing human resource development schemes in the renewable energy sector that provide for financial support for organizing training, deputation of professionals in training and study tours (within India and abroad), and the award of fellowships etc. These have been initiated in consultation with academic institutions and industry.

vii) International collaboration

India is a land of opportunity for investors in renewable energy technologies. Besides foreign investments, India is looking forward to international co-operation in manufacture of RE equipment such as low-cost solar photovoltaic cells/modules, fluidized bed biomass gasifiers, advanced technologies for treatment of waste, energy recovery from industrial effluents and sewage, energy from municipal solid waste, fuel cells and electric vehicles.

Foreign investors can contribute to technology development, manufacture and management of renewable energy systems. There are opportunities for enhancing capacity and capability of a wide range of different end-use applications of technologiesacross all the renewable energy technology sectors.

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

EUROpEAN BUSINESS AND TECHNOLOGy CENTRE

20

Page 21: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

• Tax incentives on capital investments and generation. The objective of tax incentives and tax credit schemes is to lower investments and provide larger cash flows from projects, which in turn increases the economic viability of RE projects.

Tax exemption, mainly through exemptions or reductions on excise and customs duty, are used in India - wind energy players especially benefited from this in the 1990's. In terms of exemption of duties on RE generated power, some Indian states have extended these benefits for the first 5 years of project life.

vi) Skills and Human Resources

There is recognition of the need development of for human resources and skills; these focus on management and financial, and technical /scientific areas (including highly specialised areas) and relate to institutional, Government/State agency and corporate sectors.

Manufacturing is specifically highlighted: “ Small and medium scale manufacturing, industrial undertakings, services and business enterprises (SME) on development of convenient technology packages for different SME groups, technological solution awareness, best practices for renewable energy use, strengthening outreach of renewable energy technologies to consumers etc”.

The Ministry has been implementing human resource development schemes in the renewable energy sector that provide for financial support for organizing training, deputation of professionals in training and study tours (within India and abroad), and the award of fellowships etc. These have been initiated in consultation with academic institutions and industry.

vii) International collaboration

India is a land of opportunity for investors in renewable energy technologies. Besides foreign investments, India is looking forward to international co-operation in manufacture of RE equipment such as low-cost solar photovoltaic cells/modules, fluidized bed biomass gasifiers, advanced technologies for treatment of waste, energy recovery from industrial effluents and sewage, energy from municipal solid waste, fuel cells and electric vehicles.

Foreign investors can contribute to technology development, manufacture and management of renewable energy systems. There are opportunities for enhancing capacity and capability of a wide range of different end-use applications of technologiesacross all the renewable energy technology sectors.

4. European Union

Overview

While renewables have begun to make their mark across Europe and provide more environmentally friendly energy, the potential remains to increase their market share and establish them as cost-effective, widely used options. Naturally, some European countries have been more pro-active in the development and take-up of the technology, and some have moved faster than others in seeking to develop international opportunities with developing markets such as India.

At its meeting in Brussels on 8/9 March 2007 the European Council endorsed a binding target of a 20% share of renewable energies in overall EU energy consumption by 2020 and a 10% binding minimum target to be achieved by all Member States for the share of biofuels in overall EU transport petrol and diesel consumption.

The 2009 Directive on the "Promotion of the use of energy from renewable sources" not only set the mandatory targets for the European Union's Member States, but also drafted a planon how to reach the targets for each of them. It also improves the legal framework for promoting renewable electricity, requires national action plans that establish pathways for the development of renewable energy sources including bio-energy, creates cooperation mechanisms to help achieve the targets cost effectively, and establishes the sustainability criteria for biofuels. The date for implementation of the Directive by Member States was December 2010.

A total of about 58.8 GW of new power capacity was constructed in the EU in 2010 and 2.5 GW were decommissioned, resulting in 56.3 GW of new net capacity. Gas-fired power stations accounted for 28.3 GW, or 48% of the newly installed capacity. Solar photovoltaic systems moved to second place with 13.5 GW (23%), followed by 9.4 GW (16%) for wind power; 4.1 GW (7%) MW for coal-fired power stations; 570 MW (> 1%) for biomass; 450 MW (> 1%) for Concentrated Solar Power (CSP), 210 MW (> 1%) for hydro, 230 MW (> 1%) peat and 150 MW (> 1%) waste. The net installation capacity for oil-fired and nuclear power plants was negative, with a decrease of 245 MW and 390 MW respectively. The renewable share of new power installations in the EU was therefore 40% in 2010, reflecting the considerable expertise and experience gained by EU organisations and companies.

Renewable energy technology sectors

According to the European Commission/Institute of Energy and Transport Renewable Energy Snapshots (September 2011), wind energy is highest ranked in newly installed capacities in Europe. In 2010 the additional installed capacity was 10GW with more than 84GW of cumulative installed capacity in 2010, it exceeded the White Paper target of 40GW by more than 100%. The new target of the European Wind Association is aiming at 230GW installed capacity (40GW offshore) in 2020 capable of providing about 20% of European electricity demand. According to the National Renewable Energy Action Plans (NREAP), the installed capacity in 2010 was 84.9GW and will grow to 213.4GW by 2020.

In Europe, the current installed capacity from concentrated solar power (solar thermal energy) is still small (730 MW in Jan 2011), but is steadily accelerating. According to the European Solar Thermal Electricity Association (ESTELA) 30GW of CSP capacity could be installed in Europe generating around 100TWh of electricity in 2020.

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

promoting European Clean Technologies in India & Tackling Climate Change

21

Page 22: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

Solar photovoltaic electricity generation has again increased its cumulative installed capacity by more than 80% to 29GW in 2010. This results in a capacity almost 10 times as high as was foreseen in the White Paper as the Target for 2010. The European Photovoltaic Industry Association published their ambitious vision plan for 2020 in 2010. The new target calls for up to 12% of the European electricity generated with solar photovoltaic electricity generation, or from 380 to 420 TWh. The necessary growth rate would be 36% annually, which is much lower than the industry has seen in the last 8 years. From an industry point of view the target is ambitious, but achievable.However it will need accompanying measures to ensure that the electricity grid will be able to absorb and distribute the generated solar electricity. This is especially important, because 12% of total electricity from solar photovoltaics translates to a cumulative installed PV capacity of 350GW or close to 60% of the total European thermal electricity generation capacity (590GW in 2008) or morethan 40% of the total European electricity generation capacity (800 GW in 2008). Therefore, efficient transmission and storage systems, as well as modern supply and demand management, have to be available to fulfil this vision.

It is expected that if the current growth of electricity generation from biomass continues, bioelectricity generation could be around 230 TWh in 2020, up from 100.5 TWh in 2009. Anuncertainty in this estimation is the competitive use of biomass for other energy uses such as heat and transport fuels. To what effect this will change the development of bioelectricity is not yet clear. Bioelectricity generation, especially via biogas or CHP has the big advantage that biomass is storable and the electricity can be generated on demand. This variable is extremely important for a renewable energy supply and increases the value significantly.

For electricity generation from hydro power (2010: 330 TWh), no major increase is expected as most large hydro resources are already in use today. In addition, it is not clear if the same resources will still be available on a continuous basis in the future if extreme weather conditions become more frequent and additional water resource needs might arise.

Additional renewable electricity generation technologies include geothermal, tidal and wave power with energy generation of 6 TWh and 0.5 TWh respectively in 2010. Their expected growth is of 10.9 TWh and 6 TWh by 2020 respectively, according to the NREAPs. These technologies are in a research and development phase and no major market penetration is happening yet. It is expected that their market introduction will take place within the next decade.

Europe has made significant strides forward in the incorporation of renewable energy sources into its power provision, has taken a leading role in the development and implementation of renewable technologies, and subsequently the opportunities for cooperation with India are significant for both parties.

The relative share of RE in each of the EU 27 countries is shown in the following table, together with the targets for 2020. This data helps to give a picture of those EU countries where renewable energy sources have had most impact on overall energy provision.

Renewable energy shares of gross final consumption of energyRenewable energyshare in 2005

Renewable energyshare in 2009 (prov)

Renewable energy share target for 2020

Austria 23.3 % 29.2 % 34 %Belgium 2.2 % 3.8 % 13 %Bulgaria 9.4 % 11.5 % 16 %

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

EUROpEAN BUSINESS AND TECHNOLOGy CENTRE

22

Page 23: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

Solar photovoltaic electricity generation has again increased its cumulative installed capacity by more than 80% to 29GW in 2010. This results in a capacity almost 10 times as high as was foreseen in the White Paper as the Target for 2010. The European Photovoltaic Industry Association published their ambitious vision plan for 2020 in 2010. The new target calls for up to 12% of the European electricity generated with solar photovoltaic electricity generation, or from 380 to 420 TWh. The necessary growth rate would be 36% annually, which is much lower than the industry has seen in the last 8 years. From an industry point of view the target is ambitious, but achievable.However it will need accompanying measures to ensure that the electricity grid will be able to absorb and distribute the generated solar electricity. This is especially important, because 12% of total electricity from solar photovoltaics translates to a cumulative installed PV capacity of 350GW or close to 60% of the total European thermal electricity generation capacity (590GW in 2008) or morethan 40% of the total European electricity generation capacity (800 GW in 2008). Therefore, efficient transmission and storage systems, as well as modern supply and demand management, have to be available to fulfil this vision.

It is expected that if the current growth of electricity generation from biomass continues, bioelectricity generation could be around 230 TWh in 2020, up from 100.5 TWh in 2009. Anuncertainty in this estimation is the competitive use of biomass for other energy uses such as heat and transport fuels. To what effect this will change the development of bioelectricity is not yet clear. Bioelectricity generation, especially via biogas or CHP has the big advantage that biomass is storable and the electricity can be generated on demand. This variable is extremely important for a renewable energy supply and increases the value significantly.

For electricity generation from hydro power (2010: 330 TWh), no major increase is expected as most large hydro resources are already in use today. In addition, it is not clear if the same resources will still be available on a continuous basis in the future if extreme weather conditions become more frequent and additional water resource needs might arise.

Additional renewable electricity generation technologies include geothermal, tidal and wave power with energy generation of 6 TWh and 0.5 TWh respectively in 2010. Their expected growth is of 10.9 TWh and 6 TWh by 2020 respectively, according to the NREAPs. These technologies are in a research and development phase and no major market penetration is happening yet. It is expected that their market introduction will take place within the next decade.

Europe has made significant strides forward in the incorporation of renewable energy sources into its power provision, has taken a leading role in the development and implementation of renewable technologies, and subsequently the opportunities for cooperation with India are significant for both parties.

The relative share of RE in each of the EU 27 countries is shown in the following table, together with the targets for 2020. This data helps to give a picture of those EU countries where renewable energy sources have had most impact on overall energy provision.

Renewable energy shares of gross final consumption of energyRenewable energyshare in 2005

Renewable energyshare in 2009 (prov)

Renewable energy share target for 2020

Austria 23.3 % 29.2 % 34 %Belgium 2.2 % 3.8 % 13 %Bulgaria 9.4 % 11.5 % 16 %

Cyprus 2.9 % 3.8 % 13 %Czech Republic 6.1 % 8.5 % 13 %Denmark 17.0 % 19.7 % 30 %Estonia 18.0 % 22.7 % 25 %Finland 28.5 % 29.8 % 38 %France 10.3 % 12.4 % 23 %Germany 5.8 % 9.7 % 18 %Greece 6.9 % 7.9 % 18 %Hungary 4.3 % 9.5 % 13 %Ireland 3.1 % 5.1 % 16 %Italy 5.2 % 7.8 % 17 %Latvia 32.6 % 36.8 % 40 %Lithuania 15.0 % 16.9 % 23 %Luxembourg 0.9 % 2.8 % 11 %Malta 0.0 % 0.7 % 10 %Netherlands 2.4 % 4.2 % 14 %Poland 7.2 % 9.4 % 15 %Portugal 20.5 % 25.7 % 31 %Romania 17.8 % 21.6 % 24 %Slovakia 6.7 % 10.0 % 14 %Slovenia 16.0 % 17.5 % 25 %Spain 8.7 % 13.0 % 20 %Sweden 39.8 % 50.2 % 49 %United Kingdom 1.3 % 2.9 % 15 %EU-27 8.5 % 11.6 % 20 %

The table below indicates the comparative capacities of the EU 27 countries in terms of wind energy, solar photovoltaic, solar thermal and biomass production in 2010, illustrating clearly the leading position of Germany in all of these sectors.

However, other countries, although producing and consuming less in absolute power terms, have become leaders in specific technologies - this is in many cases has been driven, at least in part, by the natural resources available to them.

Wind energy(MW)Installed capacity end 2010

Solar PV (MWp) Installed capacity end 2010

Solar Thermalcapacity (KWth)

Primary energy production from solid Biomass2010 (Mtoe)

Austria 1,011 102,596 2,685,556 4,529Belgium 911 787,457 229,703 858Bulgaria 375 17,240 73,710 788Cyprus 82 6,246 500,515 10Czech Republic 215 1,953,100 215,863 2,094Denmark* 3,752 7,065 367,602 1,657Estonia 149 80 2,044 924Finland 197 9,649 23,046 7,680France 5,660 1 054,346 1,101,730 10,481Germany 27,214 17,370,000 9,676,800 12,230Greece 1,208 205,400 2,858,940 812Hungary 295 1,750 104,870 1,489

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

promoting European Clean Technologies in India & Tackling Climate Change

23

Page 24: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

Ireland 1,428 610 92,042 197Italy 5,797 3,478,500 1,870,211 3,019Latvia 31 8 1,358 1,739Lithuania 154 100 1,680 1,002Luxembourg 42 27,273 22,120 40Malta 0 1,670 32,102 0Netherlands 2,237 96,900 313,317 1,033Poland 1,107 1,750 459,123 5,865Portugal 3,898 130,839 470,888 2,582Romania 462 1,940 73,290 3,583Slovakia 3 143,809 85,225 740Slovenia 0,03 36,336 122,710 572Spain 20,676 3,808,081 1,474,806 4,751Sweden 2,163 10,064 226,615 9,202United Kingdom 5,204 74,845 401,254 1,442Total EU -27 84,278 29,327,700 23,487,120 79,318Source EWEA EurObserv’ER European Solar

Thermal Industry federation

EurObserv’ER

RE developments by EU country

The following section provides a comparative assessment of the important renewable energy sector capabilities and developments in the major EU 27 countries.

Germany regards itself as a world leader in the green economy, in particular the use of renewable energy and energy efficiency. Germany’s renewable energy sector is among the most innovative and successful worldwide and is one of the country’s most important growth industries. The sector has an enormous impact on employment and on climate protection. The German government’s ambitious goal is to cut 270 million metric tons of CO2 emissions by 2020.

According to a recent forecast by “Prognos AG” there will be about € 235 billion investment in the German renewable sector by 2020. The sector employed 278,000 people in 2009 and this figure will continue to grow. The importance of the industry is also reflected in education and training. In addition to a wide range of new professional training programmes, there are currently more than 250 different university degrees in Germany focused on renewable energies. More than EUR 1.15 billion is attributed in the coming years for research, technology development and innovation to promote a sustainable energy supply. The current focus of R&D investments is on areas such as biogas, fuel cells, PV thin-film technology, offshore multi-megawatt installations, and solar process heat.

As Europe’s primary wind energy market, Germany represents over 16% of globally installed capacity and is number two in the world after the USA. Germany’s long-standing mechanical and electronic engineering tradition is the backbone underpinning this strong position. A total of 21,164 wind turbines with a capacity of 25,777 MW (megawatt) were installed in Germany by the end of 2009. In the same year 38.0 TWh (terawatt hour) of wind electricity was generated which corresponds to 7 % of Germany’s net electricity consumption.

With regard to solar PV energy, Germany developed into the world’s strongest photovoltaic market in terms of volume with 3.8 GWp (Gigawatt Peak) new PV installations and a share of 52.2 % of the worldwide newly installed capacity in 2009. The turnover came to € 9.5

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

EUROpEAN BUSINESS AND TECHNOLOGy CENTRE

24

Page 25: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

Ireland 1,428 610 92,042 197Italy 5,797 3,478,500 1,870,211 3,019Latvia 31 8 1,358 1,739Lithuania 154 100 1,680 1,002Luxembourg 42 27,273 22,120 40Malta 0 1,670 32,102 0Netherlands 2,237 96,900 313,317 1,033Poland 1,107 1,750 459,123 5,865Portugal 3,898 130,839 470,888 2,582Romania 462 1,940 73,290 3,583Slovakia 3 143,809 85,225 740Slovenia 0,03 36,336 122,710 572Spain 20,676 3,808,081 1,474,806 4,751Sweden 2,163 10,064 226,615 9,202United Kingdom 5,204 74,845 401,254 1,442Total EU -27 84,278 29,327,700 23,487,120 79,318Source EWEA EurObserv’ER European Solar

Thermal Industry federation

EurObserv’ER

RE developments by EU country

The following section provides a comparative assessment of the important renewable energy sector capabilities and developments in the major EU 27 countries.

Germany regards itself as a world leader in the green economy, in particular the use of renewable energy and energy efficiency. Germany’s renewable energy sector is among the most innovative and successful worldwide and is one of the country’s most important growth industries. The sector has an enormous impact on employment and on climate protection. The German government’s ambitious goal is to cut 270 million metric tons of CO2 emissions by 2020.

According to a recent forecast by “Prognos AG” there will be about € 235 billion investment in the German renewable sector by 2020. The sector employed 278,000 people in 2009 and this figure will continue to grow. The importance of the industry is also reflected in education and training. In addition to a wide range of new professional training programmes, there are currently more than 250 different university degrees in Germany focused on renewable energies. More than EUR 1.15 billion is attributed in the coming years for research, technology development and innovation to promote a sustainable energy supply. The current focus of R&D investments is on areas such as biogas, fuel cells, PV thin-film technology, offshore multi-megawatt installations, and solar process heat.

As Europe’s primary wind energy market, Germany represents over 16% of globally installed capacity and is number two in the world after the USA. Germany’s long-standing mechanical and electronic engineering tradition is the backbone underpinning this strong position. A total of 21,164 wind turbines with a capacity of 25,777 MW (megawatt) were installed in Germany by the end of 2009. In the same year 38.0 TWh (terawatt hour) of wind electricity was generated which corresponds to 7 % of Germany’s net electricity consumption.

With regard to solar PV energy, Germany developed into the world’s strongest photovoltaic market in terms of volume with 3.8 GWp (Gigawatt Peak) new PV installations and a share of 52.2 % of the worldwide newly installed capacity in 2009. The turnover came to € 9.5

billion in 2009. The accumulated PV capacity reached 9.8 GWp, corresponding to a total share of 42 % of the globally installed PV capacity - therefore Germany converts more solar energy into electricity than any other country in the world.

Germany is Europe’s leading PV manufacturer and its companies are involved in wafer-based, thin-film and organic PV. There are seventy manufacturers of silicon, wafers and modules and over two hundred PV and equipment suppliers, more than a hundred component manufacturers and hundreds of project development, system integration and installation companies. It is estimated that approximately 70,000 people work in this sector in Germany and German PV manufacturers generate a turnover of around € 8.6 billion. Exports account for almost 50% of this. PV equipment suppliers generated a turnover of €2 billion and an export share of 80 %.

Germany is also Europe’s largest solar thermal market with approximately 1.4 GW of the newly installed solar thermal collector surface area and a turnover of € 1.4 billion in 2008. The total thermal capacity was 7.7 GW. More than 40 % of the installed solar thermal systems in Europe are installed in Germany.

The production of energy in Austria has been characterized by a decline in the share of coal and an increase in the share of renewable energy. Energy from hydro power and biomass are the most important renewable energy sources. The total amount of non hydro installed renewable energy in Austria at the end of 2009 was 1,695 MW and comprised 11,412 installations. 69% of electricity in Austria is produced from renewable resources which is defined as including hydro but excludes nuclear. Installed hydro capacity is 38 TeraWatt hours, there remains the potential to develop 13 TeraWatt hours, using micro hydro. The use of biomass is an area which is of particular interest in a country which has 52% wood coverage. Over 60 biomass boiler companies have been established and exported all over the world. Opportunities are most concentrated in micro hydro, stored water hydro generation, biomass innovation and controls, innovations relating to transport energy usage, low carbon buildings and renovation, decentralised power generation, photovoltaic and geothermal.

Belgium has a long tradition in the field of materials and engineering. This has helped significantly to establish a strong international reputation in the research and development of renewable energy technologies as well as strengthening its position in the supply chain. The initiative for developing the potential is clearly in the hands of the private sector and small start-ups have seized the opportunity to fill the void that was created by the limited investments in renewable energy projects by the dominant supplier on the market Electrabel. These start-up’s have now developed into medium-sized companies with a portfolio of international projects.

Flanders, in the north of Belgium region, is counting on biomass, photovoltaic energy and offshore wind for energy generation, and on increased insulation and better glazing for energy efficiency. Wallonia, the southern half of Belgium, also encourages biomass projects and has ambitious targets for developing onshore wind energy. The Brussels region, due to its limited size, favours combined heat and power installations and small-scale PV.

Hydro power and wind power projects gave Luxembourg a good start in RE in the 1990’s but development stagnated in the first part of the last decade, partly due to limitations on eligibility and budget. While electricity production from small scale hydro has stabilised in recent years, the contributions from wind, photovoltaic and biogas are expected to rise. Luxembourg also counts on biomass projects as a means for growing RE production. The

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

promoting European Clean Technologies in India & Tackling Climate Change

25

Page 26: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

initiative for renewable energy projects in Luxembourg lies predominantly with the public sector.

The most important renewable energy sources and technologies in the Netherlands are the co-firing of biomass in power stations, wind energy, waste incinerators, biofuels for road transport and the consumption of wood by households. Together, these five sources account for more than 70 percent of the final consumption of renewable energy. Almost half of final consumption of energy from renewable sources occurs in the form of electricity. This mainly involves electricity produced by wind turbines and co-firing of biomass in power stations. However, heat from RE sources also delivers an important contribution: 40 percent in 2010.

Renewable electricity generation is dominated by biomass and wind, each accounting for 50% of the market share. Wind turbines onshore accounted for 42% while wind-turbines offshore accounted for 6%; the very high potential of wind turbines offshore is only recentlybeing exploited and is showing a strong capacity increase. Solid biomass with its annual capacity growth of 26% could reach a share of 26%, followed by biowaste (18%) and biogas (7%). The installed capacity of hydro large-scale remains constant, which is similar to biowaste that has a small CAGR of 4%.

Denmark claims to be the most energy efficient nation in the EU and as a result it follows that Danish energy technology is at the forefront – and many of the companies involved in these technological developments are interested in forming strategic alliances, technologytransfer/partnering projects, manufacturing under licence, component supply etc.

Denmark is a relatively small EU market (population of 5.45 million) but is the world’s leading supplier of wind turbines with a market share of over 25%; this gives rise to a demand for all types of components, design, instruments, new technologies using gearless transmission, new materials etc. Denmark has more than 5000 wind turbines - in 2009 wind turbines accounted for about 24% per cent of domestic electricity supply.

Although climatic conditions favour wind power utilisation, geology has enabled the existence of a major oil and gas industry and the exploitation of wave, current, biomass, biogas and solar energy have all being possible and mean that Denmark has enjoyed a high level of energy security from varied energy sources for many years. All this has been achieved without atomic power and this situation is predicted to continue for the foreseeablefuture.

The power generation system has changed from being mostly oil fired to being partly coal-fired, with decentralised CHP plants fired by industrial and household waste and biomass. Combined Heat and Power generation, using the heat for District Heating was also encouraged strongly through fiscal incentives. Biomass currently accounts for approximately 70% of RE generation, mostly in the form of straw, wood chips, wood pellets and renewable waste products such as willow crops. Consumption of biomass for energy production in Denmark more than quadrupled between 1980 and 2009.

Research and investment in wave, current and solar power is also increasing. Denmark has also taken a leading role in the development of clean coal technology and built the world’s first clean coal technology plant, the EU CASTOR pilot plant in Esbjerg on the west coast of Jutland.

Thanks to the variety of available natural energy sources, Finland’s industry has developed a number of global leaders in the supply of machinery and services for renewable energy production and efficiency.

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

EUROpEAN BUSINESS AND TECHNOLOGy CENTRE

26

Page 27: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

initiative for renewable energy projects in Luxembourg lies predominantly with the public sector.

The most important renewable energy sources and technologies in the Netherlands are the co-firing of biomass in power stations, wind energy, waste incinerators, biofuels for road transport and the consumption of wood by households. Together, these five sources account for more than 70 percent of the final consumption of renewable energy. Almost half of final consumption of energy from renewable sources occurs in the form of electricity. This mainly involves electricity produced by wind turbines and co-firing of biomass in power stations. However, heat from RE sources also delivers an important contribution: 40 percent in 2010.

Renewable electricity generation is dominated by biomass and wind, each accounting for 50% of the market share. Wind turbines onshore accounted for 42% while wind-turbines offshore accounted for 6%; the very high potential of wind turbines offshore is only recentlybeing exploited and is showing a strong capacity increase. Solid biomass with its annual capacity growth of 26% could reach a share of 26%, followed by biowaste (18%) and biogas (7%). The installed capacity of hydro large-scale remains constant, which is similar to biowaste that has a small CAGR of 4%.

Denmark claims to be the most energy efficient nation in the EU and as a result it follows that Danish energy technology is at the forefront – and many of the companies involved in these technological developments are interested in forming strategic alliances, technologytransfer/partnering projects, manufacturing under licence, component supply etc.

Denmark is a relatively small EU market (population of 5.45 million) but is the world’s leading supplier of wind turbines with a market share of over 25%; this gives rise to a demand for all types of components, design, instruments, new technologies using gearless transmission, new materials etc. Denmark has more than 5000 wind turbines - in 2009 wind turbines accounted for about 24% per cent of domestic electricity supply.

Although climatic conditions favour wind power utilisation, geology has enabled the existence of a major oil and gas industry and the exploitation of wave, current, biomass, biogas and solar energy have all being possible and mean that Denmark has enjoyed a high level of energy security from varied energy sources for many years. All this has been achieved without atomic power and this situation is predicted to continue for the foreseeablefuture.

The power generation system has changed from being mostly oil fired to being partly coal-fired, with decentralised CHP plants fired by industrial and household waste and biomass. Combined Heat and Power generation, using the heat for District Heating was also encouraged strongly through fiscal incentives. Biomass currently accounts for approximately 70% of RE generation, mostly in the form of straw, wood chips, wood pellets and renewable waste products such as willow crops. Consumption of biomass for energy production in Denmark more than quadrupled between 1980 and 2009.

Research and investment in wave, current and solar power is also increasing. Denmark has also taken a leading role in the development of clean coal technology and built the world’s first clean coal technology plant, the EU CASTOR pilot plant in Esbjerg on the west coast of Jutland.

Thanks to the variety of available natural energy sources, Finland’s industry has developed a number of global leaders in the supply of machinery and services for renewable energy production and efficiency.

There are over 200 hydroelectric power plants in Finland with total nominal capacity around 3000 MW and a production capacity of 13 TWh in an average precipitation year. These power plants can be categorized in 3 different scale by size; large plants over 10 MW, small plants of 1-10 MW and mini plants of below 1 MW. The government plan introduced in April 2010 proposes to expand the existing investment support scheme for mini-scale plants to include also small scale plants. Due to the unfavourable sea conditions in Finland to utilize wave and tidal energy, this industry has not developed in Finland; however, there are some projects where Finnish companies are involved in this area.

There are studies underway to examine the application of carbon capture and storage (CCS) in Finland. The emphasis is especially on solutions appropriate in the Nordic geographical location and for the energy infrastructure of Finland. The whole CCS chain is to be studied starting from different technical solutions for capture, transportation and storage of CO2,through to the effects of CCS application on the energy structure.

The wind power capacity in Finland is 170 MW with125 wind turbines (September 2010). There are around 30 companies in Finland producing mainly parts for windmills. Because of Finnish climate conditions it is not expected that the installation of solar cells will take off until the price of panels drops substantially.

Although not a member of the European Union, Norway is part of the European Economic Area and is affiliated to the EU by the EEA agreement - Norway is a major energy nation in Europe. Bilaterally, the EU-Norway Energy Dialogue principally aims at the coordination of energy policies in a wider sense, including research and technological development in the energy sector and relations with other energy producing countries. 98-99% of total electricity production in Norway is from hydropower and the country is a net exporter of energy.However, both industry and government wishes to build on the knowledge gained from the offshore energy and marine sectors, (which are today seen as world-class), to develop the green energy sector. Norway also has great potential to grow the on and offshore wind energy sector.

Like Norway, energy production in Sweden is virtually fossil-free. However, whilst approximately half of the electricity produced comes from hydropower the remainder is provided by nuclear power. The Swedish Government has pronounced that Sweden’senergy supply should be based on renewable energy and the share of RE sources in the Swedish energy system has increased rapidly during the past decade, from 22% of the total energy supply in 1994 to 28% today.

The use of biomass has increased significantly and accounts for the major part of this increase. In the last decade massive investment into wind power has taken this resource from negligible in 1994 to almost 1 TWh in 2009. The Swedish wind power sector is growing rapidly and in 2008 Sweden had a total of 1,138 wind turbines in 133 of its 290 municipalities. Sweden does not have capability in manufacturing large wind turbines, although some global companies have started to recognise the market potential and are considering setting up production.

Despite the “one region” approach and close ties with each other, the energy markets in the three Baltic states of Estonia, Latvia and Lithuania differ from each other. The leader in renewables is Latvia. This comes from utilizing the ample hydro and forest resources that abound in the country. Despite that, stretching targets have been set by the EC to increase the usage of renewable energy sources in Latvia and in order to reduce natural gas and

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

promoting European Clean Technologies in India & Tackling Climate Change

27

Page 28: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

electricity imports. The greatest potential is seen in the development of local biomass and wind energy.

Electricity and natural gas imports to Lithuania have increased, thus setting a challenge to maintain the existing share of renewable energy. As in Latvia, the most utilised local renewable resources are hydro and biomass. Together with wind energy, these provide the best future opportunities for development of renewable energy generation in Lithuania.Lithuania has a large pool of qualified energy specialists and a long-functioning educational and training system for their development.

In Estonia over 90% of power is currently generated from locally mined oil shale. Renewable electricity in Estonia is mainly produced by small hydro power plants and wind farms, but wood is the dominating local renewable resource in the heating sector. Biomass and wind are seen as the main future renewable energy sources, and investors are also looking intohydro energy.

Although nuclear power dominates in France, renewable energies of various sorts are being actively developed with France having set an ambitious goal that it must now work to achieve. France's energy production consists at present of 80% nuclear energy, 7% conventional fuels, and 13% renewable. By 2020 France’s aim is that renewables will account for at least 23% of total production. No technology and no instrument of public policyis being ruled out to help achieve these goals. Competitiveness Clusters (Pôle de Compétivité) are partnerships between academia, research and industry, which aim to support knowledge transfer and innovative projects, as well as to create local prosperity and employment. 8 regional clusters are related to the energy sector.

France is rich in RE resources, with the largest forest area in Western Europe, the second highest wind energy potential and considerable hydroelectric resources (hydro-electric power currently accounts for over 80% of French "green" electricity). The strong agricultural sector enables the development of bio-energy. In overseas territories, production of solar energy and wave energy is developing.

In November 2008 the Environment Ministry launched an action plan of 50 operational measures (special funds, fiscal incentives, state-supported competitions) stretching acrossthe renewables sector. The action plan completely changes the current scale of production –set to double in 12 years. Wood energy will double over the period, geothermal energy is set for a six-fold rise, heat networks to multiply by 12, wind to multiply by 8 and photovoltaic production by a factor of 400.

France is, after the UK, Europe’s second largest potential source of wind power, but in terms of installed wind power on its territory, it lags well behind Germany and Spain. The onshore wind turbines sector is relatively well established, although resistance to new projects is growing. Offshore wind has been more difficult to establish in France because of shallow sea beds and opposition from local populations, including the fishing industry and environmental groups. However, France is now focussing on the development of offshore projects rather than onshore. The announcement of a 3000 megawatt offshore public tender project is expected to lead to a complete transformation of this industry with new players and the development of services which sees it as an opportunity for development and diversification.

France views marine energy as a strategic energy resource and supports R&D in this technology. However, although it has a large potential for marine energies, it is far behind the UK and Norway in terms of exploiting this resource. The Government has set a target of 6000KW from marine energies by 2020. There are a number of marine energy projects that

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

EUROpEAN BUSINESS AND TECHNOLOGy CENTRE

28

Page 29: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

electricity imports. The greatest potential is seen in the development of local biomass and wind energy.

Electricity and natural gas imports to Lithuania have increased, thus setting a challenge to maintain the existing share of renewable energy. As in Latvia, the most utilised local renewable resources are hydro and biomass. Together with wind energy, these provide the best future opportunities for development of renewable energy generation in Lithuania.Lithuania has a large pool of qualified energy specialists and a long-functioning educational and training system for their development.

In Estonia over 90% of power is currently generated from locally mined oil shale. Renewable electricity in Estonia is mainly produced by small hydro power plants and wind farms, but wood is the dominating local renewable resource in the heating sector. Biomass and wind are seen as the main future renewable energy sources, and investors are also looking intohydro energy.

Although nuclear power dominates in France, renewable energies of various sorts are being actively developed with France having set an ambitious goal that it must now work to achieve. France's energy production consists at present of 80% nuclear energy, 7% conventional fuels, and 13% renewable. By 2020 France’s aim is that renewables will account for at least 23% of total production. No technology and no instrument of public policyis being ruled out to help achieve these goals. Competitiveness Clusters (Pôle de Compétivité) are partnerships between academia, research and industry, which aim to support knowledge transfer and innovative projects, as well as to create local prosperity and employment. 8 regional clusters are related to the energy sector.

France is rich in RE resources, with the largest forest area in Western Europe, the second highest wind energy potential and considerable hydroelectric resources (hydro-electric power currently accounts for over 80% of French "green" electricity). The strong agricultural sector enables the development of bio-energy. In overseas territories, production of solar energy and wave energy is developing.

In November 2008 the Environment Ministry launched an action plan of 50 operational measures (special funds, fiscal incentives, state-supported competitions) stretching acrossthe renewables sector. The action plan completely changes the current scale of production –set to double in 12 years. Wood energy will double over the period, geothermal energy is set for a six-fold rise, heat networks to multiply by 12, wind to multiply by 8 and photovoltaic production by a factor of 400.

France is, after the UK, Europe’s second largest potential source of wind power, but in terms of installed wind power on its territory, it lags well behind Germany and Spain. The onshore wind turbines sector is relatively well established, although resistance to new projects is growing. Offshore wind has been more difficult to establish in France because of shallow sea beds and opposition from local populations, including the fishing industry and environmental groups. However, France is now focussing on the development of offshore projects rather than onshore. The announcement of a 3000 megawatt offshore public tender project is expected to lead to a complete transformation of this industry with new players and the development of services which sees it as an opportunity for development and diversification.

France views marine energy as a strategic energy resource and supports R&D in this technology. However, although it has a large potential for marine energies, it is far behind the UK and Norway in terms of exploiting this resource. The Government has set a target of 6000KW from marine energies by 2020. There are a number of marine energy projects that

are likely to be deployed and connected to the national grid in the near future, the most technologically advanced being wave and tidal. EDF is set to run the world’s first pilot project with seawater turbines designed to harness this power, with up to six ‘hydroliennes’ (a water version of the ‘éolienne’ wind turbine) being installed off the coast of Paimpol from 2011.

Solar water/air heating is an emerging segment with rapid growth. Advantageous feed-in tariffs combined with designing solar panel installations to be more aesthetically pleasing will be key elements to the continued growth of this sub-sector. France has the fifth highest PVpower capacity in Europe, trailing neighbours Germany, Spain and Italy. French solar panel production capacity doubled in 2009 (with around twelve manufacturers). The solar thermal sector progressed by close to 40% per year between 1998 and 2007, then grew by 20% in 2008. Around 75% of the collectors sold in France are German-made.

Additional R&D focusing on reducing costs and addressing safety issues around carboncapture and storage (CCS) is also being undertaken by public research centres.

The United Kingdom is recognised as a leader in many renewable areas including offshore wind, marine supply chain, and services such as maintenance and consultancy etc.

The UK has the best wind resource in Europe and a rapidly growing on and off-shore wind sector. Onshore wind capacity has risen rapidly over the last five years and there are currently 2000 turbines generating over 2400 MW. The sector has seen the fastest developing renewable generation in the UK, with an addition 1500 MW under construction, 5000 MW having been consented and a further 9500 in the planning system. Significant increases are expected in onshore wind energy deployment over the course of the next decade in order to meet the UK’s 2020 renewable energy commitments.

There are currently five offshore wind projects in operation with a capacity of over 400 MW. A further 450 MW capacity is under construction and another 2700 MW has planning consent. The UK Government has announced its intention to see 33GW of capacity deployed by 2020. The London Array project with a capacity of over 1 GW will bethe largest offshore wind project in the world and the UK is expected to lead the world inoffshore wind capacity.

Biomass will play a central role in the UK meeting the EU target of 20 per cent renewable energy by 2020. The UK is quickly developing its biomass market from large scale power generation, using co-firing as well as large-scale biomass specific power projects, through to commercial and small scale systems for both heat and power.

The Carbon Abatement Technologies strategy recognises the UK’s strong asset and infrastructure base to support the development of carbon abatement technologies to lead to an affordable reduction in CO2 emissions from fossil fuel. The strategy includes support for R&D, the demonstration of key components that would form part of an integrated carboncapture and storage (CCS) system, and the demonstration of CO2 capture plant and CO2 storage. The UK is also developing strong academic and industrial expertise in these technologies.

The UK is the world leader in the development and deployment of marine energy devices to convert wave power to electricity and benefits from the globally unique full-scale, grid-connected test facilities for both wave and tidal devices at the European Marine Energy Centre in Scotland.

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

promoting European Clean Technologies in India & Tackling Climate Change

29

Page 30: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

The UK has a relatively unexploited domestic market for PV but the medium to long term potential is significant and comparable to that of Germany. There are however a number of innovative PV companies with a dynamic supply chain and demand for on-site generation and PV in particular is accelerating as tightening building regulations set carbon neutral objectives for new homes by 2016. The UK has world-leading research capabilities in PV at universities, specialist research institutes and industry-focused centres of excellence.

The predominant areas of RE activity in Ireland are wind and hydro, along with issues of energy efficiency. There is little activity of note in solar energy and no clean coal technologies in the Irish market. The country currently has 90 wind farms connected to the system (currently only one off-shore) with a total of 1.16GW of maximum capacity. With over 1,000MW of wind power already connected on the island of Ireland, the wind energy industry has invested over €1bn in generation capacity. The wind industry is planning private investment of between €4bn and €6bn in wind power over the next ten years, requiring atotal annual investment of over €500m. The Irish wind industry believes furtherinterconnection with the UK and Europe is essential to allow Ireland to make full use of its impressive wind resource.

The total hydro connected to the transmission system is 21MW (14 hydroelectric generators). This is 2.8% of the total connected generation capacity. There are a further 52 micro hydroelectric generators connected to the distribution system with an installed capacity of 25.1MW. Further growth in large scale hydro projects is not currently planned but there are six micro generation projects of 11MW capacity contracted for distribution system connections.

It is estimated that an accessible wave energy resource for 2010 of 42 TWh per annum exists within the total limit of Irish waters. The government has a target of 500 MW of installed wave energy capacity by 2020 and an ambition for Ireland to be a world leader in the development of wave energy. It also announced the development of a full scale test site for wave energy devices off the west coast of Ireland, at Belmullet, Co. Mayo, in 2008. There are currently a number of devices designed by Irish companies being tested in the Galway Bay site and at other locations around the world.

The share of RE increased from 6.8% in 2005 to almost 15% in mid 2010. Despite this increase in activity during the past decade, reaching the target of 40% by 2020 will be very challenging.

Spain’s new Renewable Energy Plan for the period 2011-2020 set targets for 2020 which exceed EU objectives, establishing that by 2020 renewables in Spain will account for 22.7% of final energy and 42.3% of electricity production. The Government estimates that by 2012 the share of renewable energy will be 15.5% and 18.8% by 2016.

Spain is the fourth largest solar PV energy producer in the world and second in Europe and by 2007, had exceeded the target of 400 MW anticipated for 2010. Spain is leading in the field of Concentrated Solar Power (CSP): more than 50 solar projects in the country have been approved for construction by the government and, by 2015 more than 2GW will begenerated by CSP. This will comfortably achieve national targets.

The country is also the fourth largest producer of wind power after the USA, Germany and China. Thanks to the on-going commitment to the sub-sector, Spain today boasts an important wind energy sector, employing around 40,000 people. This figure includes turbine builders and internationally renowned developers as well as numerous companies involved in the supply chain. The sector is comprised of more than 700 companies: 19 wind turbine

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

EUROpEAN BUSINESS AND TECHNOLOGy CENTRE

30

Page 31: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

The UK has a relatively unexploited domestic market for PV but the medium to long term potential is significant and comparable to that of Germany. There are however a number of innovative PV companies with a dynamic supply chain and demand for on-site generation and PV in particular is accelerating as tightening building regulations set carbon neutral objectives for new homes by 2016. The UK has world-leading research capabilities in PV at universities, specialist research institutes and industry-focused centres of excellence.

The predominant areas of RE activity in Ireland are wind and hydro, along with issues of energy efficiency. There is little activity of note in solar energy and no clean coal technologies in the Irish market. The country currently has 90 wind farms connected to the system (currently only one off-shore) with a total of 1.16GW of maximum capacity. With over 1,000MW of wind power already connected on the island of Ireland, the wind energy industry has invested over €1bn in generation capacity. The wind industry is planning private investment of between €4bn and €6bn in wind power over the next ten years, requiring atotal annual investment of over €500m. The Irish wind industry believes furtherinterconnection with the UK and Europe is essential to allow Ireland to make full use of its impressive wind resource.

The total hydro connected to the transmission system is 21MW (14 hydroelectric generators). This is 2.8% of the total connected generation capacity. There are a further 52 micro hydroelectric generators connected to the distribution system with an installed capacity of 25.1MW. Further growth in large scale hydro projects is not currently planned but there are six micro generation projects of 11MW capacity contracted for distribution system connections.

It is estimated that an accessible wave energy resource for 2010 of 42 TWh per annum exists within the total limit of Irish waters. The government has a target of 500 MW of installed wave energy capacity by 2020 and an ambition for Ireland to be a world leader in the development of wave energy. It also announced the development of a full scale test site for wave energy devices off the west coast of Ireland, at Belmullet, Co. Mayo, in 2008. There are currently a number of devices designed by Irish companies being tested in the Galway Bay site and at other locations around the world.

The share of RE increased from 6.8% in 2005 to almost 15% in mid 2010. Despite this increase in activity during the past decade, reaching the target of 40% by 2020 will be very challenging.

Spain’s new Renewable Energy Plan for the period 2011-2020 set targets for 2020 which exceed EU objectives, establishing that by 2020 renewables in Spain will account for 22.7% of final energy and 42.3% of electricity production. The Government estimates that by 2012 the share of renewable energy will be 15.5% and 18.8% by 2016.

Spain is the fourth largest solar PV energy producer in the world and second in Europe and by 2007, had exceeded the target of 400 MW anticipated for 2010. Spain is leading in the field of Concentrated Solar Power (CSP): more than 50 solar projects in the country have been approved for construction by the government and, by 2015 more than 2GW will begenerated by CSP. This will comfortably achieve national targets.

The country is also the fourth largest producer of wind power after the USA, Germany and China. Thanks to the on-going commitment to the sub-sector, Spain today boasts an important wind energy sector, employing around 40,000 people. This figure includes turbine builders and internationally renowned developers as well as numerous companies involved in the supply chain. The sector is comprised of more than 700 companies: 19 wind turbine

manufacturers, 270 component manufacturers, 140 wind farm developers, and 277 service providers.

As part of the wind energy strategy in Portugal contracts have been awarded for the creation of two industrial and R&D clusters. A cluster centred in Viana do Castelo District is anchored at a wind turbines industrial plant which hosts 5 factories for complete manufacturing of wind turbines and components in Portugal. The complex includes 2 rotor blade factories, synchronous generator factory, mechatronics factory (electric modules and nacelles) and a concrete tower factory. This industrial complex also has also a focus on R&D and technology transfer. Furthermore a cluster of 29 Portuguese and foreign companies has been created.

Over the last two years, investments in solar energy in Portugal have exceeded the amount for the previous 15 years. The accumulated installed area of solar thermal reached 539,000 m2 at the end of 2009, exceeding the objective for 2010 (520,000 m2) set at the Energy Efficiency Plan.

Portugal is also considered to be among the leaders of the upcoming industry of ocean (wave) energy due to its good natural conditions and infrastructure near the coast. The high buy-back tariff for electricity produced from the ocean waves has attracted investors into this renewable source in Portugal. There is a potential to install 5 GW of potential capacity along the Portuguese coast.

In Italy, wind and solar (both PV and thermal) energy sources are growing in importance. These industries are still comparatively new and the relevant domestic supply chains are still developing e.g. production of PV components, cells, creation of installation companies etc. R&D into new production processes, advanced technology e.g. thin film and solar concentration systems are also stimulating development of the market.

Hydro and geothermal energy have played a more important part in the sector in Italy but, over the last few years as biomass, wind and solar have established themselves, a new domestic supply chain is growing with new manufacturers of components, PV solar panels, system suppliers and installers being set-up. It has also attracted the attention of many foreign companies - particularly from Spain and Germany, and increasingly China - whichhave seen the opportunities and have opened offices and/or production facilities in Italy. The market for wind turbines is in the hands of a few foreign companies, the leader of which is Vestas of Denmark, which employs 700 people at facilities in Puglia. On the back of the development of the sector, local and foreign banks have also entered the market offering financial services and schemes.

The Government has actively encouraged the development of the PV sector through the introduction of incentives and Italy is in a very good position from a solar-energy point of view, growing at a faster rate than the Chinese and Koreans. There is still not a strong domestic supply and production chain although Italian industry is quickly developing a capacity. The Italian government has also introduced incentives to encourage the installation of solar thermal systems and according to Assolterm, the Solar Thermal Trade Association, the sector in Italy has grown significantly since 2006 from 130MWth to about 1.4GWth or almost 2million square metre panels installed by mid 2010.

Wind energy has continued to grow over the last three years following a stop/go position during the late 90's. More than 40% of installed capacity is in the south of the country. As of 2010 no off-shore wind farms were operating although a number of projects had been

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

promoting European Clean Technologies in India & Tackling Climate Change

31

Page 32: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

submitted for evaluation. Little work has been carried out in Italy on marine energy technology.

Wind resources in Greece are among the most attractive in Europe, and wind energy is therefore a priority. It is driving growth in the renewables sector and represents huge investment potential. The largest proportion of renewable power will come from wind farms (7,500 MW) - a new plan has also been introduced for the development of off-shore wind farms.

One of the core components of Greece’s energy profile will be solar PV energy. Greece has immense sun radiation capacity and it is estimated that one third of Greece’s energy requirements could be generated from solar power. Among the many companies that have invested in Greece’s solar sector are organisations from Germany, France, Australia, and United States.

The abundant and cost-effective geothermal resources in Greece are being used in spas, greenhouses, and for drying fruits and vegetables. The widespread use of geothermal heat pumps is becoming a booming market for central heating purposes. In addition, biomass and biofuel have been identified as strong market components with high growth potential.

Poland has experienced rapid economic development in the last two decades but it is heavily dependent on coal, and especially on old and inefficient coal-fired power plants, for its energy. There is scepticism about climate change and about the intrinsic merits of low carbon development. At the end of June 2010 there were 1270 RES installations of capacity of 2,300 MWe installed in Poland; 347 wind plants, 734 hydro plants, 15 biomass plants, 40 co-firing (coal plus biomass) plants, 133 biogas and 2 solar plants. Between them, these installations generated 8.6 TWh of electricity in 2009. Taking into account Polish environmental and economic conditions, development of the Polish RE sources will be based on biomass and wind generation. Hydro, solar and biogas technologies will also be developed but they will be less important. The technological gaps in Poland include lack of Carbon Capture and Storage technologies and offshore wind power generation. Poland could however be among the first countries to participate in projects assessing the possibilities of CCS technology. Two demonstration installations for pumping carbon dioxide underground are to be built in Poland by 2015.

In 2009, RE sources in Slovakia accounted for 7.4% of the total gross energy consumption of the country. According to the Economy Ministry, Slovakia aims to increase this proportion to 14% by 2020. Construction of wind farms has been frozen - the national transmission network operator, SEPS considers wind and solar power plants unstable resources with high production fluctuation. Building solar power plants in Slovakia is an attractive business for investors; despite SEPS’ negative attitude, they and the distributors have issued permits for construction of solar power plants with total installed capacity of 700 MW. Small hydropower plants at present generate 284 GWh of electric energy annually and in five years Slovakia is expected to generate 450 GWh annually. Clean coal technologies (CCT) are not used in Slovakia yet.

The Czech Republic’s 2010 target was to have 8% of its energy generation from renewable sources but the country was behind schedule in reaching its target. PV electricity production enjoyed 500% growth in 2008 but the installed capacity is still very marginal.

Wind electricity production has grown and there are many plans and investors for more wind projects, but project complications and location difficulties mean than often many plans are

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

EUROpEAN BUSINESS AND TECHNOLOGy CENTRE

32

Page 33: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

submitted for evaluation. Little work has been carried out in Italy on marine energy technology.

Wind resources in Greece are among the most attractive in Europe, and wind energy is therefore a priority. It is driving growth in the renewables sector and represents huge investment potential. The largest proportion of renewable power will come from wind farms (7,500 MW) - a new plan has also been introduced for the development of off-shore wind farms.

One of the core components of Greece’s energy profile will be solar PV energy. Greece has immense sun radiation capacity and it is estimated that one third of Greece’s energy requirements could be generated from solar power. Among the many companies that have invested in Greece’s solar sector are organisations from Germany, France, Australia, and United States.

The abundant and cost-effective geothermal resources in Greece are being used in spas, greenhouses, and for drying fruits and vegetables. The widespread use of geothermal heat pumps is becoming a booming market for central heating purposes. In addition, biomass and biofuel have been identified as strong market components with high growth potential.

Poland has experienced rapid economic development in the last two decades but it is heavily dependent on coal, and especially on old and inefficient coal-fired power plants, for its energy. There is scepticism about climate change and about the intrinsic merits of low carbon development. At the end of June 2010 there were 1270 RES installations of capacity of 2,300 MWe installed in Poland; 347 wind plants, 734 hydro plants, 15 biomass plants, 40 co-firing (coal plus biomass) plants, 133 biogas and 2 solar plants. Between them, these installations generated 8.6 TWh of electricity in 2009. Taking into account Polish environmental and economic conditions, development of the Polish RE sources will be based on biomass and wind generation. Hydro, solar and biogas technologies will also be developed but they will be less important. The technological gaps in Poland include lack of Carbon Capture and Storage technologies and offshore wind power generation. Poland could however be among the first countries to participate in projects assessing the possibilities of CCS technology. Two demonstration installations for pumping carbon dioxide underground are to be built in Poland by 2015.

In 2009, RE sources in Slovakia accounted for 7.4% of the total gross energy consumption of the country. According to the Economy Ministry, Slovakia aims to increase this proportion to 14% by 2020. Construction of wind farms has been frozen - the national transmission network operator, SEPS considers wind and solar power plants unstable resources with high production fluctuation. Building solar power plants in Slovakia is an attractive business for investors; despite SEPS’ negative attitude, they and the distributors have issued permits for construction of solar power plants with total installed capacity of 700 MW. Small hydropower plants at present generate 284 GWh of electric energy annually and in five years Slovakia is expected to generate 450 GWh annually. Clean coal technologies (CCT) are not used in Slovakia yet.

The Czech Republic’s 2010 target was to have 8% of its energy generation from renewable sources but the country was behind schedule in reaching its target. PV electricity production enjoyed 500% growth in 2008 but the installed capacity is still very marginal.

Wind electricity production has grown and there are many plans and investors for more wind projects, but project complications and location difficulties mean than often many plans are

not completed. Transmission bottlenecks, line overloading and other difficulties mean wind farms are less attractive than other alternatives.

Approximately 70% of the biomass used in the Czech Republic is for heating. Co-burning will continue to be a fast, simple and low-risk solution; biomass facility construction is crucial to hit indicative targets. Biogas production plants have been undergoing development.

Hydroelectric sources are very important for regulation of the power grid and there is large installed capacity (8% of total installed capacity for electricity production). Most of this capacity has been employed for many years and there is little potential for growth. It is somewhat variable due to hydrologic conditions.

Currently Hungary is one of European Union's most energy import-dependent countries. With practically no coal, oil or gas reserves, Hungary imports over half of its primary energy needs, mainly from Russia, and until recently up to 30% of its electricity demand was also sourced from outside the country's borders. Hungary undertook to increase the share of renewable energy sources (RES) in the country’s electricity production to 3.6% by 2010. The share of RES has grown considerably in recent years and the country surpassed this target as early as 2005, mainly as a result of the introduction of a favourable subsidy scheme. Whether high growth rates can be maintained in the future, however, is widely questioned.

Even though Hungary has outstanding potential for several RE technologies, the level of deployment is relatively low and limited to a small number of technologies. RE has traditionally played a more important role in household heat generation than in power supply, therefore when describing the current status of RE technologies in the country these two sectors are frequently discussed separately. Biomass, mainly firewood, is the single most dominant renewable in heat generation, with a share of 90%, while geothermal also plays a relatively significant role. The significance of biogas, wind power and solar, remains low.Bulgaria is set to dramatically expand its wind power output in the next 10 years reaching over 3,000 MW by 2020 from a current 330MW installed. This will meet 13.5% of Bulgaria`s electricity demand and will significantly contribute to the EU target of achieving 16% of produced electricity from RE sources. Projects for development of wind farms are a key objective of the Bulgarian Government.

The solar resource in Bulgaria is efficient, and solar energy is seen to have great potential. The hydro sector is well-developed and there are many large and small scale projects already completed. Geothermal energy is a very promising resource and there are different projects at various stages of completion. There are some 700 springs and around 160 hydrothermal fields identified as areas of huge potential in the country. Overall however, there are currently few manufacturing facilities for production of RE equipment.

Romania has important and diverse renewables potential across all sectors: hydro (small and large), wind, biomass, biodiesel, solar, geothermal and waste-to-energy. However, most of the major renewable projects developed in the last five years are in the wind energy sector.

Solar energy shows moderate potential throughout the country, but despite Romania’spotential (in terms of solar energy, pre-1989 the country was second in Europe in terms of energy supplied by solar plants), very few projects have been implemented in Romania in the last decade. The largest solar project, Covaci Solar Plant with 480,000 panels generating 35 MW, will be one of the world’s largest thin-film PV power systems, built in the north of Timisoara.

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

promoting European Clean Technologies in India & Tackling Climate Change

33

Page 34: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

Romania has the third highest geothermal energy potential in Europe, but there are very few large projects implemented. Investment in biomass is also considered to be at a low level.Romania has long-term expertise in implementing energy projects but legislation and bureaucracy is seen as complex and fragmented; the national power grid has serious limitations and obsolete infrastructure is in need of refurbishment and upgrading.

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

EUROpEAN BUSINESS AND TECHNOLOGy CENTRE

34

Page 35: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

Romania has the third highest geothermal energy potential in Europe, but there are very few large projects implemented. Investment in biomass is also considered to be at a low level.Romania has long-term expertise in implementing energy projects but legislation and bureaucracy is seen as complex and fragmented; the national power grid has serious limitations and obsolete infrastructure is in need of refurbishment and upgrading.

India – Renewable energy sector evaluations

5. Solar

5.1 Introduction

Solar energy has been identified by the Ministry of New and Renewable Energy as a priority area for India, particularly as India has such an extremely high solar reception capacity. Whilst grid connected capacity is still minimal, many significant projects have been instigated since the launch of the Jawaharlal Nehru National Solar Mission (JNNSM).

The National Mission was launched in 2009 under the brand name SOLAR INDIA and is a major initiative of the Government of India together with the State Governments to promote ecologically sustainable growth, while also addressing India’s energy security challenge. It will also constitute a major contribution by India to the global effort to meet the challenges of climate change.

The importance and relevance of solar energy to India has been clearly identified by MNRE:

• Cost: Solar is currently high in terms of absolute costs when compared to traditionalsources of power such as coal. The objective of the Solar Mission is to create conditions, through rapid scale-up of capacity and technological innovation to drive down costs towards grid parity. The Mission anticipates achieving grid parity by 2022 and parity with coal-based thermal power by 2030, but recognizes that this cost trajectory will depend on the scale of global deployment and technology development and transfer. The Mission recognizes that there are a number of off-grid solar applications, particularly for meeting rural energy needs, which are already cost-effective and provides for their rapid expansion.

• Scalability: India has vast solar energy potential with about 5,000 trillion kWh per year energy incident over India’s land area, with most regions receiving 4-7 kWh per sq. m per day. Technology routes for conversion of solar radiation into heat (solar thermal) and electricity (through solar PV), can effectively be harnessed providing potentially huge scalability for solar energy in India. Solar also provides the ability to generate power on a distributed basis and enables rapid capacity addition with short lead times. Off-grid decentralized and low-temperature applications will be advantageous for rural electrification and meeting other energy needs for power and heating and cooling in both rural and urban areas. The constraint on scalability will be the availability of space, since in all current applications solar power is space intensive. In addition, without effective storage, solar power is characterized by a high degree of variability. In India, this would be particularly true in the monsoon season.

• Environmental impact: Solar energy is environmentally friendly as it has zero emissions while generating electricity or heat.

• Security of source: From an energy security perspective, solar is the most secure of all sources as it is abundantly available, and theoretically a small fraction of the total incident solar energy could meet the entire country’s power requirements.

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

promoting European Clean Technologies in India & Tackling Climate Change

35

Page 36: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

5.2 Targets & Objectives

The Solar mission is seeking “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”. The Mission will adopt a long term approach over three periods:

• Phase 1 - spanning the remaining period of the 11th Plan and first year of the 12th

Plan (up to 2012-13). The first phase will focus on capturing the ‘low-hanging’ options in solar thermal, on promoting off-grid systems to serve populations without access to commercial energy and modest capacity addition in grid-based systems.

• Phase 2 – covering the remaining 4 years of the 12th Plan (2013-17). In this second phase, after taking into account the experience of the initial years, capacity will be aggressively ramped up to create conditions for up scaled and competitive solar energy penetration in the country

• Phase 3 – covering the 13th Plan period (2017-22).

At the end of each plan and mid-term during the 12th and 13th Plans there will be an evaluation of progress and review of capacity and targets for subsequent phases based on emerging cost and technology trends in India and internationally. The aim will be to protect the Government from subsidy exposure in case expected cost reductions do not materialize, or are more rapid than expected.

The Mission targets are:

• To create an enabling policy framework for the deployment of 20,000 MW of solar power by 2022.

• To ramp up capacity of grid-connected solar power generation to 1000 MW by 2013; and an additional 3000 MW by 2017 through the mandatory use of the renewable purchase obligation by utilities backed with a preferential tariff. This capacity can be more than doubled – reaching 10,000MW installed power by 2017 or more, based on enhanced and enabled international finance and technology transfer. The ambitious target for 2022 of 20,000 MW or more will be dependent on the ‘learning’ of the first two phases, which if successful, could lead to conditions of grid-competitive solar power. The transition could be appropriately up scaled, dependent on availability of international finance and technology.

• To create favourable conditions for solar manufacturing capability, particularly solar thermal for indigenous production and market leadership.

• To promote programmes for off grid applications, reaching 1000 MW by 2017 and 2000 MW by 2022.

• To achieve 15 million sq. meters solar thermal collector area by 2017 and 20 millionby 2022.

• To deploy 20 million solar lighting systems for rural areas by 2022.

Strategies to achieve these targets include promotion of solar heating systems using proven and commercially viable technologies, by making solar heating mandatory under building codes and byelaws, introducing and promoting certifications for manufacturers of solar thermal devices, and further supporting the upgrading of these technologies with financial soft loans.

There is also an emphasis on developing and subsidising off-grid opportunities to provide light in areas where grid penetration is not feasible and where small micro-based schemes will make a substantial difference to thousands of villages. A 90% subsidy is available in

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

EUROpEAN BUSINESS AND TECHNOLOGy CENTRE

36

Page 37: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

5.2 Targets & Objectives

The Solar mission is seeking “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”. The Mission will adopt a long term approach over three periods:

• Phase 1 - spanning the remaining period of the 11th Plan and first year of the 12th

Plan (up to 2012-13). The first phase will focus on capturing the ‘low-hanging’ options in solar thermal, on promoting off-grid systems to serve populations without access to commercial energy and modest capacity addition in grid-based systems.

• Phase 2 – covering the remaining 4 years of the 12th Plan (2013-17). In this second phase, after taking into account the experience of the initial years, capacity will be aggressively ramped up to create conditions for up scaled and competitive solar energy penetration in the country

• Phase 3 – covering the 13th Plan period (2017-22).

At the end of each plan and mid-term during the 12th and 13th Plans there will be an evaluation of progress and review of capacity and targets for subsequent phases based on emerging cost and technology trends in India and internationally. The aim will be to protect the Government from subsidy exposure in case expected cost reductions do not materialize, or are more rapid than expected.

The Mission targets are:

• To create an enabling policy framework for the deployment of 20,000 MW of solar power by 2022.

• To ramp up capacity of grid-connected solar power generation to 1000 MW by 2013; and an additional 3000 MW by 2017 through the mandatory use of the renewable purchase obligation by utilities backed with a preferential tariff. This capacity can be more than doubled – reaching 10,000MW installed power by 2017 or more, based on enhanced and enabled international finance and technology transfer. The ambitious target for 2022 of 20,000 MW or more will be dependent on the ‘learning’ of the first two phases, which if successful, could lead to conditions of grid-competitive solar power. The transition could be appropriately up scaled, dependent on availability of international finance and technology.

• To create favourable conditions for solar manufacturing capability, particularly solar thermal for indigenous production and market leadership.

• To promote programmes for off grid applications, reaching 1000 MW by 2017 and 2000 MW by 2022.

• To achieve 15 million sq. meters solar thermal collector area by 2017 and 20 millionby 2022.

• To deploy 20 million solar lighting systems for rural areas by 2022.

Strategies to achieve these targets include promotion of solar heating systems using proven and commercially viable technologies, by making solar heating mandatory under building codes and byelaws, introducing and promoting certifications for manufacturers of solar thermal devices, and further supporting the upgrading of these technologies with financial soft loans.

There is also an emphasis on developing and subsidising off-grid opportunities to provide light in areas where grid penetration is not feasible and where small micro-based schemes will make a substantial difference to thousands of villages. A 90% subsidy is available in

settlements without access to grid electricity. Promotion of other off grid applications including hybrid systems to meet power, heating and cooling requirements is also included –subsidies of up to 30% are also available for promoting innovative applications.

5.3 Regulatory framework and incentives

There is a desire to create a policy and regulatory environment which provides an incentive structure which enables rapid and large-scale capital investment in solar energy applications and encourages technical innovation and lowering of costs.

The National Tariff Policy 2006 mandates the State Electricity Regulatory Commissions (SERC) to fix a minimum percentage of energy purchase from renewable sources which takes into account availability of such resources in the region and impact on retail tariff; there is also a requirement that the State electricity regulators fix a percentage for purchase of solar power. This may start with 0.25% in phase 1 and to go up to 3% by 2022 and may be complemented with a solar specific Renewable Energy Certificate (REC) mechanism to allow utilities and solar power generation companies to buy and sell certificates to meet their solar power purchase obligations.

5.4 Solar manufacturing in India

The Solar Mission aims to take India to a global leadership role in the manufacturing of leading edge solar technologies. Manufacturing capabilities need to be upgraded as the bulk of India’s solar PV industry is currently dependent on imports of critical raw materials and components – including silicon wafers. Indigenous manufacturing of low temperature solar collectors is available but manufacturing capacity for advanced solar collectors for low temperature and concentrating solar collectors and their components for medium and high temperature applications need to be built. The proactive implementation of Special Incentive Packages (SIPs) to promote PV manufacturing plants, including domestic manufacture of silicon material, is included in the Solar Mission strategy.

There is a target of 4-5 GW equivalent of installed capacity by 2020, including setting up of dedicated manufacturing capacities for poly silicon material to make about 2 GW capacity of solar cells annually. India does have PV module manufacturing capacity of about 700 MW, which is expected to increase in the next few years. The present indigenous capacity to manufacture silicon material is very low however, and it is planned that plants be set up in both the public and private sectors. Currently, there is no indigenous capacity/capability for solar thermal power projects; therefore new facilities will be required to manufacture concentrator collectors, receivers and other components to meet the demand for solar thermal power plants.

A mix of local demand creation, financing and incentives are to help achieve these targets. Included in these are zero import duties on capital equipment and raw materials, excise duty exemptions, incentives towards setting up integrated manufacturing plants.

Other incentive packages are to be considered for setting up manufacturing plants for solar thermal systems/devices and components. The strategy also calls for support of SMEs through a variety of financial packages and importantly, will look to ensure that technology transfer from foreign sources is utilised.

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

promoting European Clean Technologies in India & Tackling Climate Change

37

Page 38: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

5.5 Research & Development

Solar India has set out a major R&D initiative to focus on improvement of efficiencies in existing materials, devices and applications and on reducing costs of balance of systems, and establishing new applications by addressing issues related to integration and optimization. There is also a need to develop cost-effective storage technologies and to target space-intensity through the use of better concentrators, the application of nano-technology and use of better and improved materials. The Mission has stated that these elements will be technology neutral, allowing technological innovation and market conditions to determine technology winners.

The support for the R&D strategy therefore includes research at academic/research institutions on materials and devices; applied research on existing processes and developing new technologies; technology validation aimed at field evaluation of materials, components and systems; development of Centres of Excellence on different aspects of solar energy;PPP mode development and support for incubation and innovation

5.6 Human resources

The rapid development of solar energy outlined above will require a significant increase in technically qualified human resource availability, and this needs to be of an international standard. It is expected that at the end of Mission period in 2022 the solar industry will employ at least 100,000 trained and specialized personnel in India, including engineering management and R&D functions. There is a strategy in place which includes plans to train 1000 young scientists and engineers, introduce national and international fellowships for research, certificate courses for existing engineers, and develop special training courses for technicians.

5.7. International Collaboration

Strategic international collaborations and partnerships aimed at meeting the priorities set out under the Solar Mission are being developed, along with effective technology transfer mechanisms and strong IPR protection. Cooperation is encouraged at research organization and at individual levels, and wherever feasible cooperation through bilateral and multilateral arrangements will be facilitated.

The Department of Science and Technology has been supporting joint research with a number of countries under bilateral programmes – this includes an MNRE research programme with the European Union. MNRE is also implementing bilateral projects with Japan, Australia, the USA and others.

5.8 Regional opportunities

There are major opportunities for development of solar energy in India in the following states: (please note: this is not written to be a comprehensive listing)

RajasthanRajasthan receives the maximum solar radiation intensity in India, and coupled with having the minimum average rainfall is ideally suited for solar power generation. It also has inexpensive land available in abundance. As a result, the state is likely to emerge as the power house of the country with the possibilities of setting up installed capacity exceeding 100,000 MW. The Rajasthan Renewable Energy Corporation Limited (RREC) is the Nodal

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

EUROpEAN BUSINESS AND TECHNOLOGy CENTRE

38

Page 39: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

5.5 Research & Development

Solar India has set out a major R&D initiative to focus on improvement of efficiencies in existing materials, devices and applications and on reducing costs of balance of systems, and establishing new applications by addressing issues related to integration and optimization. There is also a need to develop cost-effective storage technologies and to target space-intensity through the use of better concentrators, the application of nano-technology and use of better and improved materials. The Mission has stated that these elements will be technology neutral, allowing technological innovation and market conditions to determine technology winners.

The support for the R&D strategy therefore includes research at academic/research institutions on materials and devices; applied research on existing processes and developing new technologies; technology validation aimed at field evaluation of materials, components and systems; development of Centres of Excellence on different aspects of solar energy;PPP mode development and support for incubation and innovation

5.6 Human resources

The rapid development of solar energy outlined above will require a significant increase in technically qualified human resource availability, and this needs to be of an international standard. It is expected that at the end of Mission period in 2022 the solar industry will employ at least 100,000 trained and specialized personnel in India, including engineering management and R&D functions. There is a strategy in place which includes plans to train 1000 young scientists and engineers, introduce national and international fellowships for research, certificate courses for existing engineers, and develop special training courses for technicians.

5.7. International Collaboration

Strategic international collaborations and partnerships aimed at meeting the priorities set out under the Solar Mission are being developed, along with effective technology transfer mechanisms and strong IPR protection. Cooperation is encouraged at research organization and at individual levels, and wherever feasible cooperation through bilateral and multilateral arrangements will be facilitated.

The Department of Science and Technology has been supporting joint research with a number of countries under bilateral programmes – this includes an MNRE research programme with the European Union. MNRE is also implementing bilateral projects with Japan, Australia, the USA and others.

5.8 Regional opportunities

There are major opportunities for development of solar energy in India in the following states: (please note: this is not written to be a comprehensive listing)

RajasthanRajasthan receives the maximum solar radiation intensity in India, and coupled with having the minimum average rainfall is ideally suited for solar power generation. It also has inexpensive land available in abundance. As a result, the state is likely to emerge as the power house of the country with the possibilities of setting up installed capacity exceeding 100,000 MW. The Rajasthan Renewable Energy Corporation Limited (RREC) is the Nodal

Agency for development of energy from renewable sources in the State of Rajasthan as well as the State Designated Agency for promoting energy efficiency and energy conservation.

The Government of Rajasthan first issued a "Policy for Promoting Generation for Electricity from Non Conventional Energy Sources” in 2004 and State Government incentives include exemption from electricity duty for eligible power producers, incentives available to industries, and faster approvals for proposals for development of power plants based on non-conventional energy sources.

In order to specifically promote solar generation in Rajasthan, the Rajasthan State Regulatory Commission has directed Rajasthan Renewable Energy Corporation Limited (RREC) to identify technically feasible sites for solar power development. The tariff can be determined on a cost plus basis or through competitive bidding. The State Government has received significant levels of interest and many proposals from potential private sectorinvestors to set up solar power plant in the State. RREC facilitates investment in solar power projects.

The State renewable energy body is also developing land banks to facilitate setting up of solar projects in the state to operate on CSP. Additionally, RREC is selecting developers for solar thermal and another solar photovoltaic projects.

HaryanaThe solar insolation level in the State is in the range of 5.5 KWH to 6.5 KWH per square metre of area and the State has about 320 clear sunny days in a year, thus offering a great potential for using solar energy for thermal and electrical energy applications in the State.

The Haryana Renewable Energy Development Agency (HAREDA) is the State Nodal Agency for co-ordinating all activities relating to renewable energy development including generation of power using non-conventional energy sources. HAREDA is responsible for laying down the procedure for inviting the proposals from Independent Power Producers (IPPs), evaluation of project proposals, project approvals and project progress monitoring etc. It also acts as a single window clearing Agency for all renewable energy power projects for facilitating necessary clearances and approvals on behalf of the Govt. of Haryana.

HAREDA has signed an MOU with six private developers to generate 12 MW power from solar energy, having received an excellent response from private developers to set up solar power projects in the State. These projects will be under the MNRE tariff subsidy scheme,and power produced from these projects will be fed to the State Grid.

West BengalThe development of solar energy is promoted and facilitated by the West Bengal Renewable Development Agency (WBREDA), based in Kolkata, under the Department of Power, Government of West Bengal.

West Bengal is one of the leading states in the country with respect to utilisation of RES and WBREDA have implemented a large number of programmes related to solar energy, wind energy, mini and micro hydel and bio-energy. WBREDA helps the State Government, Panchayats (local councils), Municipal Bodies and NGO’s related to the promotion of alternative sources of energy, and also assists other Indian states to formulate project proposals on village electrification through RE sources.

West Bengal receives 1600 kWh/m2 of solar energy per year. Solar energy is being utilised mainly for village electrification but there are some solar thermal energy applications too.

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

promoting European Clean Technologies in India & Tackling Climate Change

39

Page 40: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

The state has made significant progress in respect of village electrification through solar PV, with about 400 out of 2000 villages in West Bengal where conventional electric lines cannot be extended due to the prohibitive cost already electrified through solar PV. These include individual solar home lighting systems and also centralised solar PV power plants (of capacity 25-50 kW range) set up as mini grids in the villages. Total solar PV installed capacity in West Bengal has exceeded 1 MW recently. WBREDA has also installed solar street lights in remote areas of West Bengal, particularly in jetties and forest areas, and has also installed some solar street lights in Kolkata. There are plans to install 50,000 solar home lighting systems in the state during the next five years.

In the area of solar thermal, WBREDA has installed more than 500 thousand liters/day solar water heating systems and sold more than 10,000 solar cookers in West Bengal.

There are more than 30 identified eligible manufacturers of solar PV home lighting systems and eligible manufacturers of solar PV lanterns.

Gujarat Gujarat has high solar radiation levels with 300 days of clear sun and Gujarat Energy Development Agency (GEDA), the State Government Nodal Agency responsible for solar power, has introduced the ‘Solar Power Policy – 2009’ to ensure this is exploited. This policy runs until March 2014 and solar power generators (SPG) installed during this period are eligible for incentives for a period of 25 years or the life span of the project. A maximum of 500 MW is allowed for installation during the operative period of this policy (minimum project capacity for a SPG is 5 MW each).

The key elements include incentives on wheeling charges, exemption from payment of electricity duty, levelled fixed tariffs per unit, and sharing of Clean Development Mechanism(CDM) benefits.

The Government of Gujarat has reiterated its commitment towards development of the renewable energy sector and climate change by allotting 716 MW of solar power capacity to 34 national and international project developers against the 500 MW capacity declared earlier under its Solar Power Policy - 2009. Of the 716 MW, the share of solar PV and solar thermal technology is 365 MW and 351 MW respectively.

The list of the 34 project developers includes some also reported to be keen to set upmanufacturing facilities for various components of solar in the State. Besides bringing in Rs. 120 billion (£1.6 billion) into the State in the next few years, the 716 MW of solar power would generate 1250 million units of green energy annually.

Tamil NaduThe Tamil Nadu Energy Development Agency (TEDA) promotes the use of solar energy through stand alone solar thermal applications and through solar PV applications.

For solar thermal systems the State Government has issued orders making the installation ofsolar water heating systems mandatory in certain types of buildings within and outside the Chennai metropolitan area. These include nursing home/hospitals, hotels and hostels (above specified floor areas/no. of rooms), schools, colleges and other public building and even some individual residential buildings (those with more than 150 sq.m plinth area).The incentives offered by the state government for the installation of solar water heating

systems include soft loans, capital subsidies and 100% subsidies for Government run institutions such as hospitals, hostels etc.

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

EUROpEAN BUSINESS AND TECHNOLOGy CENTRE

40

Page 41: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

The state has made significant progress in respect of village electrification through solar PV, with about 400 out of 2000 villages in West Bengal where conventional electric lines cannot be extended due to the prohibitive cost already electrified through solar PV. These include individual solar home lighting systems and also centralised solar PV power plants (of capacity 25-50 kW range) set up as mini grids in the villages. Total solar PV installed capacity in West Bengal has exceeded 1 MW recently. WBREDA has also installed solar street lights in remote areas of West Bengal, particularly in jetties and forest areas, and has also installed some solar street lights in Kolkata. There are plans to install 50,000 solar home lighting systems in the state during the next five years.

In the area of solar thermal, WBREDA has installed more than 500 thousand liters/day solar water heating systems and sold more than 10,000 solar cookers in West Bengal.

There are more than 30 identified eligible manufacturers of solar PV home lighting systems and eligible manufacturers of solar PV lanterns.

Gujarat Gujarat has high solar radiation levels with 300 days of clear sun and Gujarat Energy Development Agency (GEDA), the State Government Nodal Agency responsible for solar power, has introduced the ‘Solar Power Policy – 2009’ to ensure this is exploited. This policy runs until March 2014 and solar power generators (SPG) installed during this period are eligible for incentives for a period of 25 years or the life span of the project. A maximum of 500 MW is allowed for installation during the operative period of this policy (minimum project capacity for a SPG is 5 MW each).

The key elements include incentives on wheeling charges, exemption from payment of electricity duty, levelled fixed tariffs per unit, and sharing of Clean Development Mechanism(CDM) benefits.

The Government of Gujarat has reiterated its commitment towards development of the renewable energy sector and climate change by allotting 716 MW of solar power capacity to 34 national and international project developers against the 500 MW capacity declared earlier under its Solar Power Policy - 2009. Of the 716 MW, the share of solar PV and solar thermal technology is 365 MW and 351 MW respectively.

The list of the 34 project developers includes some also reported to be keen to set upmanufacturing facilities for various components of solar in the State. Besides bringing in Rs. 120 billion (£1.6 billion) into the State in the next few years, the 716 MW of solar power would generate 1250 million units of green energy annually.

Tamil NaduThe Tamil Nadu Energy Development Agency (TEDA) promotes the use of solar energy through stand alone solar thermal applications and through solar PV applications.

For solar thermal systems the State Government has issued orders making the installation ofsolar water heating systems mandatory in certain types of buildings within and outside the Chennai metropolitan area. These include nursing home/hospitals, hotels and hostels (above specified floor areas/no. of rooms), schools, colleges and other public building and even some individual residential buildings (those with more than 150 sq.m plinth area).The incentives offered by the state government for the installation of solar water heating

systems include soft loans, capital subsidies and 100% subsidies for Government run institutions such as hospitals, hostels etc.

There is a subsidy available for solar air heating systems under MNRE - solar air heating systems are primarily used in the processing of tea leaves, fruits, vegetables, drying of grains, drying of fish, leather and other industrial products. A number of subsidies and incentives are also offered by both the MNRE and the State Government for the installation of different types of solar cookers.

The main use of solar PV systems in the state has so far been for rural electrification and also in street lighting, the total number of such systems installed in Tamil Nadu so far is about 6400. Other SPV applications promoted by the state include SPV home lighting systems, water pumps and stand alone power plants.

Maharashtra Maharashtra has a significant amount of renewable energy potential comprising of variety of RE sources including solar; however, grid based solar power is not yet present in the renewable energy map of the State and solar power based applications constitute a tiny part of the total renewable energy capacity, though Moser Baer and Tata Power have announced plans to set up grid connected solar power projects.

Nagpur has been identified by the Maharashtra Energy Development Agency (MEDA) as the potential district to set up grid based solar power plants. Moser Baer is setting up a 1 MW plant in Chandrapur in Nagpur - the project will use amorphous silicon (a thin film) photo voltaic technology and is one of the largest solar projects with this technology, sourced from Germany. Tata Power has also announced plans to set up a 3MW solar plant at Mulshi in Pune District.

Wind/solar hybrid systems have been implemented in a number of projects, with others in the planning stage. Even though these are small projects in terms of power generation theyhave been quite successful in terms of operational projects.

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

promoting European Clean Technologies in India & Tackling Climate Change

41

Page 42: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

6. Wind

6.1 Introduction

India has made considerable advancement in wind energy and is now the world's fourth largest market in terms of installed capacity of wind energy generators. Wind energy is by far the largest renewable energy segment in India, contributing 70% to the total renewable energy-based installed capacity, and will remain the mainstay of the Indian REsector over the short to medium term. Part of the credit for wind energy’s successful exploitation of the RE sector has been the high level of public private participation (PPP).

The installed capacity of wind energy has grown at a healthy 19% over the last few years to reach 15 GW at the end of March 2011. Incentives such as preferential tariffs, accelerated depreciation and Generation Based Incentives (GBI), along with renewable purchase obligations (RPO), will continue to support the segment.

Over 200 potential sites have been identified, with capacity of generating nearly 50 GW of wind energy, across 12 states. Therefore, wind is likely to play a crucial role in achieving the target of generating 15% of the electricity produced in the country through renewable energy sources by 2020, as envisaged in the National Action Plan on Climate Change.

The Centre for Wind Energy Technology (C-WET), Chennai was established in Tamil Nadu in 1998 as an autonomous institution under the administrative control of the Ministry of New and Renewable Energy. C-WET main activities include resource assessment and testing & certification.

The wind power programme in India was initiated towards the end of Indian Sixth Plan, in 1983-84. A market-oriented strategy was adopted from inception, which has led to the successful commercial development of the technology. The broad based National programme includes wind resource assessment activities; research and development support; implementation of demonstration projects to create awareness and opening up of new sites; involvement of utilities and industry; development of infrastructure capability and capacity for manufacture, installation, operation and maintenance of wind electric generators; and policy support. The programme aims at catalysing commercialisation of wind power generation in the country.

Although a relative newcomer to the wind industry compared with Denmark or the US, a combination of domestic policy support for wind power and the rise of the Pune-based Suzlon Group (now the world’s fifth largest wind turbine supplier) have led India to become the wind energy leader in the developing world.

6.2 Wind Resource Assessment

The Wind Resource Assessment Programme which is being coordinated by C-WET has so far covered 32 States and Union Territories involving establishment of about 650 windmonitoring stations. The cost of setting up a wind monitoring station is shared between Central and State Governments in ratio of 80:20 (90:10 for the North Eastern Region and hilly States). As noted above, the onshore wind power potential has been estimated as almost 50 GW, where wind power density is greater than 200 W/sq.m at 50 m height.

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

EUROpEAN BUSINESS AND TECHNOLOGy CENTRE

42

Page 43: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

6. Wind

6.1 Introduction

India has made considerable advancement in wind energy and is now the world's fourth largest market in terms of installed capacity of wind energy generators. Wind energy is by far the largest renewable energy segment in India, contributing 70% to the total renewable energy-based installed capacity, and will remain the mainstay of the Indian REsector over the short to medium term. Part of the credit for wind energy’s successful exploitation of the RE sector has been the high level of public private participation (PPP).

The installed capacity of wind energy has grown at a healthy 19% over the last few years to reach 15 GW at the end of March 2011. Incentives such as preferential tariffs, accelerated depreciation and Generation Based Incentives (GBI), along with renewable purchase obligations (RPO), will continue to support the segment.

Over 200 potential sites have been identified, with capacity of generating nearly 50 GW of wind energy, across 12 states. Therefore, wind is likely to play a crucial role in achieving the target of generating 15% of the electricity produced in the country through renewable energy sources by 2020, as envisaged in the National Action Plan on Climate Change.

The Centre for Wind Energy Technology (C-WET), Chennai was established in Tamil Nadu in 1998 as an autonomous institution under the administrative control of the Ministry of New and Renewable Energy. C-WET main activities include resource assessment and testing & certification.

The wind power programme in India was initiated towards the end of Indian Sixth Plan, in 1983-84. A market-oriented strategy was adopted from inception, which has led to the successful commercial development of the technology. The broad based National programme includes wind resource assessment activities; research and development support; implementation of demonstration projects to create awareness and opening up of new sites; involvement of utilities and industry; development of infrastructure capability and capacity for manufacture, installation, operation and maintenance of wind electric generators; and policy support. The programme aims at catalysing commercialisation of wind power generation in the country.

Although a relative newcomer to the wind industry compared with Denmark or the US, a combination of domestic policy support for wind power and the rise of the Pune-based Suzlon Group (now the world’s fifth largest wind turbine supplier) have led India to become the wind energy leader in the developing world.

6.2 Wind Resource Assessment

The Wind Resource Assessment Programme which is being coordinated by C-WET has so far covered 32 States and Union Territories involving establishment of about 650 windmonitoring stations. The cost of setting up a wind monitoring station is shared between Central and State Governments in ratio of 80:20 (90:10 for the North Eastern Region and hilly States). As noted above, the onshore wind power potential has been estimated as almost 50 GW, where wind power density is greater than 200 W/sq.m at 50 m height.

C-WET, in association with Riso National Laboratory, Denmark has completed and published an MNRE sponsored Wind Atlas of India.

6.3 Capacity installed

According to the Indian Wind Turbine Manufacturers Association, 16,078 MW total wind energy capacity had been established as of December 2011. This is mainly in Tamil Nadu, Gujarat, Maharashtra, Andhra Pradesh, Karnataka and Rajasthan. Wind electric generators of unit sizes between 225 kW and 2.1 MW have been deployed across the country. A cumulative total of over 100 billion units of electricity have been fed to the state electricity grids up to June 2011.

6.4 Research and Development

Wind is likely to remain the largest source of renewable energy in India for many years.However, the potential capacity can be further expanded with improvement of turbines. In this sector there could be an important demand for technology transfer of technologies to support installation in lower wind regimes and for storage solutions.

The R&D priorities set by the MNRE are:

• Indigenous design, development and manufacturing capability for MW-scale wind electric generators (WEGs)

• Design, development and manufacturing of small WEGs up to 10 kW capacity, and which can start generating power at very low cut in speeds (~ 2 to 2.5 m/sec).

• Design, development and manufacture of submersible direct drive wind pumps in different capacity ranges (up to 10 HP) for low wind regimes.

• R&D on carbon fibre and other new generation composites etc.• R&D on high efficiency electronics for protecting, controlling and optimizing

performance, power management & conversion and establishing connectivity with the grid to export or import power.

6.5 Guidelines for setting up projects

The Ministry has been issuing guidelines for wind power development since July 1995 in order to ensure a balanced growth of the sector. These guidelines relate to preparation of detailed project reports, micro-siting, selection of wind turbine equipment, operation & maintenance, performance evaluation, etc. A list of manufacturers of certified wind turbine machines is issued by C-WET on quarterly basis.

6.6 Promotional and incentive policies

A package of fiscal incentives and other concessions are available for wind power projects. These include 80% accelerated depreciation over one or two years, concessional custom duty for specific critical components, excise duty exemption, income tax exemption on profits for power generation, and reduced wheeling charges as compared to conventional energy.

The State Electricity Regulatory Commissions (SERCs) in Andhra Pradesh, Haryana, Punjab, Madhya Pradesh, Maharashtra, Rajasthan, Tamil Nadu, Gujarat, Kerala, Punjab and West Bengal have announced preferential tariffs for purchase of power from wind power projects. These individual state policies and incentives are collated and published by MNRE.

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

promoting European Clean Technologies in India & Tackling Climate Change

43

Page 44: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

Many states have also announced renewable energy purchase obligations to promote the development of wind power generation.

6.7 Manufacturing of wind electric generators

Wind turbines are being manufactured in India by some 18 manufacturers with 29 models ranging in unit size from 250 – 2500 KW. Manufacture is mainly through joint ventures or under licensed production agreements. Some foreign companies have also set up subsidiaries in India, while there are also others now manufacturing wind turbines without any foreign collaboration. The current annual production capacity of domestic wind turbine industry is in the range of 3000 - 4000 MW. Approximately 70% of Indian manufacture has been achieved in machines of unit sizes up to 500 kW. The import content is somewhat higher in higher capacity machines. As technology is continuously being upgraded India is keen to ensure it keeps up to date with all global developments in this area.

Wind turbine models possessing valid Type Approval Certificates are manufactured by the following Indian companies (with Collaboration/JV partners specified in brackets)

Chiranjjeevi Wind Energy Ltd, Coimbatore District (none)Enercon (India) Ltd, Mumbai (Enercon Gmbh, Germany)Gamesa Wind Turbines Pvt Ltd, Chennai (Gamesa Innovation & Technology SL, Spain)GE India Industrial (GE Infrastructure Technology Int’l LLC, USA)Global Wind Power Ltd, Mumbai (Norwin A/S, Denmark and Fuhrlander AG, Germany)Inox Wind Limited, Noida, Uttar Pradesh (AMSC-WINDTEC GmbH, Austria)Kenersys India Pvt Ltd, Pune (Kenersys GmbH, Germany)Leitner Shriram Manufacturing Ltd, Thiruvallur, Tamil Nadu (Leitwind BV, Netherlands)Pioneer Wincon Private Ltd.,Chennai (none) Regen Powertech Pvt Ltd (Vensys Energy AG, Germany)RRB Energy Ltd, Chennai (Vestas Wind Systems, Denmark)Shriram EPC Ltd, Chennai (TTG Industries Ltd, Chennai)Siva Windturbine India Pvt ltd, Perundurai , Erode District (Wind Technik Nord, Germany)Southern Windfarms Ltd, Chennai (none)Suzlon Energy Ltd, Pune (Suzlon Energy GmbH, Germany)Vestas Wind technology India Pvt LTD (Vestas group, Denmark)Winwind Power Energy Pvt Ltd, Chennai (Winwind Oy, Finland)

Wind Turbine models under Testing & Certification:

Garuda Vaayu Shakthi Ltd , Chennai (none)Global Wind Power Ltd, Mumbai (Lagerwey Wind BV, Netherlands)Pioneer Wincom Pvt Ltd, Chennai (none)Regen Powertech Pvt Ltd, Chennai (Vensys Energy AG, Germany)Shriram EPC Ltd, Chennai (TTG Industries Ltd, Chennai)Suzlon Energy Ltd, Pune (Suzlon Energy GmbH, Germany)

6.8 Business Models in wind energy in India

A notable feature of the Indian wind power programme has been the interest among private investors/developers in setting up of commercial wind power projects. The wind industry in India exhibits three distinct business models: (a) turnkey project development & sale, (b) independent power producers, and (c) pure equipment suppliers. These business models offer approaches for providing the entire range of wind energy related services from site

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

EUROpEAN BUSINESS AND TECHNOLOGy CENTRE

44

Page 45: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

Many states have also announced renewable energy purchase obligations to promote the development of wind power generation.

6.7 Manufacturing of wind electric generators

Wind turbines are being manufactured in India by some 18 manufacturers with 29 models ranging in unit size from 250 – 2500 KW. Manufacture is mainly through joint ventures or under licensed production agreements. Some foreign companies have also set up subsidiaries in India, while there are also others now manufacturing wind turbines without any foreign collaboration. The current annual production capacity of domestic wind turbine industry is in the range of 3000 - 4000 MW. Approximately 70% of Indian manufacture has been achieved in machines of unit sizes up to 500 kW. The import content is somewhat higher in higher capacity machines. As technology is continuously being upgraded India is keen to ensure it keeps up to date with all global developments in this area.

Wind turbine models possessing valid Type Approval Certificates are manufactured by the following Indian companies (with Collaboration/JV partners specified in brackets)

Chiranjjeevi Wind Energy Ltd, Coimbatore District (none)Enercon (India) Ltd, Mumbai (Enercon Gmbh, Germany)Gamesa Wind Turbines Pvt Ltd, Chennai (Gamesa Innovation & Technology SL, Spain)GE India Industrial (GE Infrastructure Technology Int’l LLC, USA)Global Wind Power Ltd, Mumbai (Norwin A/S, Denmark and Fuhrlander AG, Germany)Inox Wind Limited, Noida, Uttar Pradesh (AMSC-WINDTEC GmbH, Austria)Kenersys India Pvt Ltd, Pune (Kenersys GmbH, Germany)Leitner Shriram Manufacturing Ltd, Thiruvallur, Tamil Nadu (Leitwind BV, Netherlands)Pioneer Wincon Private Ltd.,Chennai (none) Regen Powertech Pvt Ltd (Vensys Energy AG, Germany)RRB Energy Ltd, Chennai (Vestas Wind Systems, Denmark)Shriram EPC Ltd, Chennai (TTG Industries Ltd, Chennai)Siva Windturbine India Pvt ltd, Perundurai , Erode District (Wind Technik Nord, Germany)Southern Windfarms Ltd, Chennai (none)Suzlon Energy Ltd, Pune (Suzlon Energy GmbH, Germany)Vestas Wind technology India Pvt LTD (Vestas group, Denmark)Winwind Power Energy Pvt Ltd, Chennai (Winwind Oy, Finland)

Wind Turbine models under Testing & Certification:

Garuda Vaayu Shakthi Ltd , Chennai (none)Global Wind Power Ltd, Mumbai (Lagerwey Wind BV, Netherlands)Pioneer Wincom Pvt Ltd, Chennai (none)Regen Powertech Pvt Ltd, Chennai (Vensys Energy AG, Germany)Shriram EPC Ltd, Chennai (TTG Industries Ltd, Chennai)Suzlon Energy Ltd, Pune (Suzlon Energy GmbH, Germany)

6.8 Business Models in wind energy in India

A notable feature of the Indian wind power programme has been the interest among private investors/developers in setting up of commercial wind power projects. The wind industry in India exhibits three distinct business models: (a) turnkey project development & sale, (b) independent power producers, and (c) pure equipment suppliers. These business models offer approaches for providing the entire range of wind energy related services from site

identification, procurement/contracting, equipment supply, erection, plant operation, and repair and maintenance.

Under the turn key project development and sale model, equipment manufacturers undertake identification of sites, land acquisition and statutory clearances. Once the sale of these sites has been completed with the investors, the sites are developed. The turn key project developer is responsible for engineering procurement and construction (EPC),financing (if required), repair and maintenance and evacuation. In effect the equipment manufacturer is responsible for all functions including clearances, evacuation and operations & maintenance (O&M). This has been the most successful model as the financing model, with investors able to profit from the feed in tariff and to claim accelerated depreciation,allowed equipment manufacturers, who took the maximum risks, to make windfall profits. As the sector and industry was in a development mode, these profits were necessary for the sector to take off. However, with the sector attaining maturity, there is seen to now be a need to bring in greater competition and push manufacturers and investors to higher efficiencies.

With the independent power producer model, a number of players are entering the Indian wind energy market as independent power producers. These wind IPP‘s comprise of power generators such as TATA Power, Roaring 40‘s, Green Infra, BP and equipment manufacturers including Suzlon, Enercon, Vestas etc. Under this model, the investor is also the project site developer. The developer is responsible for procuring equipment, identifying and obtaining land lease, EPC and O&M. Under this model, the main source of revenue is the sale of power to the grid. The IPP model has received an impetus after the announcement of the Generation Based Incentive Scheme.

In the equipment supplier model, the equipment provider takes up the supply of equipment and EPC support. GE in India has adopted this model. However the model has not been especially successful in India where the customers look for complete solutions. Market feedback reflects that until time-accelerated depreciation is available, the market prefers the turnkey project development business model.

6.9 Key issues affecting further development

There are several issues currently being faced by the wind energy sector in India:

i) Absence of competitive pressures to ensure cost efficiency. The Indian wind energy sector suffers from lack of adequate competition as wind energy installations are provided a fixed Feed in Tariff which means they do not have to compete with other power producers under Central Electricity Regulatory Commission (CERC) bidding. Wind energy producers also do not face competition (like players in solar, small hydro or biomass) in the supply of equipment due to the nature of the wind industry in India.

ii) Insufficient Renewable Energy Purchase Obligations (RPO) in some states. RPO is a mechanism for ensuring that states or utilities procure a certain minimum percentage of their total power requirement from RE sources. At present, 16 SERCs have notified RPO targets for their respective states and of these only 8 states have been able to meet their targets.Issues have also occurred in states which have set their RPOs too low. For example, inKarnataka, although the RPO target is 10% (the highest by any state), the state is well endowed with renewable energy potential, be it small hydro, wind or biomass. Once the RPO target had been met, the state utilities were reluctant to purchase either wind or small hydro power from the developers, creating a bottleneck for RE development. Therefore it is felt that once the target has been achieved, a higher RPO target should be set.

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

promoting European Clean Technologies in India & Tackling Climate Change

45

Page 46: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

iii) Inadequate wind resource assessment data. Because of the relationship between wind velocity and output energy a very small percentage difference in average wind speed can lead to a substantial difference in available energy. Therefore, accurate monitoring is critical for the viability of any wind energy project. However a number of cases have come to light where wind energy sites are not generating their projected annual production.

iv) Land acquisition, relief and rehabilitation issues. From the perspective of private sector players, land acquisition issues have emerged as a major problem. A potential way around this issue is to follow the European example and establish off-shore wind farms, particularly in relatively remote regions with good wind speeds.

6.10 Strategic Plan priorities

The MNRE Strategic Plan for 2011-17 sets the following priorities for wind energy over the period:

Wind power re-powering of existing wind turbines: A pilot scheme to be developed

2011

Wind resource assessment: Updating/ expansion of existing data base.Off-shore resource assessment

Ongoing activity2013

Regular interaction with all stakeholders to periodically addresspolicy, regulatory, evacuation transmission matters for wind power.

Regular interaction with States to periodically address landacquisition, E&F clearance and State policy issues.

Ongoing activity

Ongoing activity

Prepare pilot project for off-shore wind 2011-12Support development of evacuation & transmission infrastructure forrenewable power

2011-13

6.11 Regional activity and capacity

Important states for the development of wind energy projects include: Tamil Nadu, Maharashtra, Gujarat, Karnataka, Rajasthan, Madhya Pradesh, Andhra Pradesh, Kerala, as seen in the table below: (Source C-WET July 2011)

India – Wind energy installed capacity

State Capacity in MWTamil Nadu 6160Maharashtra 2358Gujarat 2284Karnataka 1765Rajasthan 1643Madhya Pradesh 276Andhra Pradesh 198Kerala 35Others 4Total 14723

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

EUROpEAN BUSINESS AND TECHNOLOGy CENTRE

46

Page 47: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

iii) Inadequate wind resource assessment data. Because of the relationship between wind velocity and output energy a very small percentage difference in average wind speed can lead to a substantial difference in available energy. Therefore, accurate monitoring is critical for the viability of any wind energy project. However a number of cases have come to light where wind energy sites are not generating their projected annual production.

iv) Land acquisition, relief and rehabilitation issues. From the perspective of private sector players, land acquisition issues have emerged as a major problem. A potential way around this issue is to follow the European example and establish off-shore wind farms, particularly in relatively remote regions with good wind speeds.

6.10 Strategic Plan priorities

The MNRE Strategic Plan for 2011-17 sets the following priorities for wind energy over the period:

Wind power re-powering of existing wind turbines: A pilot scheme to be developed

2011

Wind resource assessment: Updating/ expansion of existing data base.Off-shore resource assessment

Ongoing activity2013

Regular interaction with all stakeholders to periodically addresspolicy, regulatory, evacuation transmission matters for wind power.

Regular interaction with States to periodically address landacquisition, E&F clearance and State policy issues.

Ongoing activity

Ongoing activity

Prepare pilot project for off-shore wind 2011-12Support development of evacuation & transmission infrastructure forrenewable power

2011-13

6.11 Regional activity and capacity

Important states for the development of wind energy projects include: Tamil Nadu, Maharashtra, Gujarat, Karnataka, Rajasthan, Madhya Pradesh, Andhra Pradesh, Kerala, as seen in the table below: (Source C-WET July 2011)

India – Wind energy installed capacity

State Capacity in MWTamil Nadu 6160Maharashtra 2358Gujarat 2284Karnataka 1765Rajasthan 1643Madhya Pradesh 276Andhra Pradesh 198Kerala 35Others 4Total 14723

Tamil NaduWith an installed capacity of 6160 MW as of July 2011, the state is the largest in terms of installed capacity for wind power in India. Wind power contributes to over 27% of the total electricity generated in the state.

The three mountain ranges on the western part of Tamil Nadu in Coimbatore, Tirunelveli and Kanniyakumari districts have been assessed to have a potential of 1650 MW, 1300 MW and 2100 MW respectively and the Tamil Nadu government has promoted wind power in the state. A programme of wind resource assessment to identify the high wind zones in the state was undertaken by the Tamil Nadu Energy Development Agency with funding from the central government in 1985 and the government of Tamil Nadu pioneered the setting up of demonstration wind farms to attract private investment in the sector as early as 1986.

The state government also enabled the setting up in Tamil Nadu of the Centre for Wind Energy Technology (CWET), an autonomous R&D institution under the MNRE which functions as a technical focal point for the development of wind energy in India.

There is currently a high level of private investment in the wind energy sector in the state. This includes manufacturers, developers, consultants and potential investors. This has also been brought about by the various incentives and policies offered by the state.

Some of the other factors that are conducive to development of wind power include favourable terrain to set up wind power plants in potential locations with easy accessibility and adequate infrastructure for power evacuation, including permission for investors to put up their own substations. The average plant load factor also tends to be higher in Tamil Nadu at around 25-30% which leads to higher production of electricity.

The state also encourages use of small aero generators and wind mill water pumping stations to harness wind power for various other applications.

MaharashtraWind energy is the major source of renewable energy in Maharashtra and constitutes close to 70% of the total renewable energy generated. Maharashtra Energy Development Agency (MEDA) has identified some 28 potential wind power projects. In terms of generating capacity, the state ranks second with a total installed capacity of 2358 MW. Investor-friendly policies of the Government of Maharashtra and technical viability of demonstration projects have attracted private investment of more than Rs 11895 crores in the wind sector so far. Nearly 2309 MW of private wind power projects had been installed in the state up to March 2011.

GujaratThe State of Gujarat has the highest wind power potential in the country – approximately10,000 MW. In order to further tap the potential of wind energy, the State Government announced a New Wind Power Policy – 2007, which will remain in operation until 30 June 2012. Wind Turbine Generators (WTGs) installed and commissioned during the period willbecome eligible for the incentives declared under this policy, for a period of twenty years from the date of commissioning or for the life span of the WTGs, whichever is earlier.

KeralaKerala has an estimated potential capacity of 605 MW from wind power. The current installed capacity in the state is only about 35 MW of which a small proportion has been developed as demonstration projects by the state government and the majority have been

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

promoting European Clean Technologies in India & Tackling Climate Change

47

Page 48: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

developed by private players. Studies by the Agency for Non-Conventional Energy and Rural Technology (ANERT) have revealed that the regions with the highest potential for wind power in the state include the Idukki district on the border of Tamil Nadu and the elevated regions of the Palakkad Gap.

Andhra PradeshBased on wind monitoring exercise findings, the southern part of Andhra Pradesh offers the best potential for setting up of wind farms (areas in Anantapur, Cuddapah, Kurnool and parts of Nellore and Chittoor districts). According to MNRE, the estimated gross potential is 8,275 MW in Andhra Pradesh with the technical potential being 2100 MWs. With a view to encouraging investment and to promote wind power projects, the Government of Andhra Pradesh has announced a comprehensive policy and incentives to set up private sector wind power projects. The Non Conventional Energy Development Corporation of Andhra Pradesh Ltd (NEDCAP) is the single window clearance agency to sanction projects up to 20 MW capacity in the State.

Madhya PradeshMadhya Pradesh Urja Vikash Nigam Limited (MPUVN) is the nodal agency for implementing the programmes and policies of the Government of India and the State Government for the renewable energy sector. It has undertaken the task of wind monitoring in the state with thetechnical and financial support of CWET/MNRE. At present four wind monitoring stations are operational at Betul, Satna & Raisen District in Madhya Pradesh and a further seven sites are deemed suitable for wind power generation. The gross potential of wind energy in the state is 5500 MW.

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

EUROpEAN BUSINESS AND TECHNOLOGy CENTRE

48

Page 49: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

developed by private players. Studies by the Agency for Non-Conventional Energy and Rural Technology (ANERT) have revealed that the regions with the highest potential for wind power in the state include the Idukki district on the border of Tamil Nadu and the elevated regions of the Palakkad Gap.

Andhra PradeshBased on wind monitoring exercise findings, the southern part of Andhra Pradesh offers the best potential for setting up of wind farms (areas in Anantapur, Cuddapah, Kurnool and parts of Nellore and Chittoor districts). According to MNRE, the estimated gross potential is 8,275 MW in Andhra Pradesh with the technical potential being 2100 MWs. With a view to encouraging investment and to promote wind power projects, the Government of Andhra Pradesh has announced a comprehensive policy and incentives to set up private sector wind power projects. The Non Conventional Energy Development Corporation of Andhra Pradesh Ltd (NEDCAP) is the single window clearance agency to sanction projects up to 20 MW capacity in the State.

Madhya PradeshMadhya Pradesh Urja Vikash Nigam Limited (MPUVN) is the nodal agency for implementing the programmes and policies of the Government of India and the State Government for the renewable energy sector. It has undertaken the task of wind monitoring in the state with thetechnical and financial support of CWET/MNRE. At present four wind monitoring stations are operational at Betul, Satna & Raisen District in Madhya Pradesh and a further seven sites are deemed suitable for wind power generation. The gross potential of wind energy in the state is 5500 MW.

7. Biomass and Waste to Energy

7.1 Introduction

Biomass is an important source of energy in India, accounting for approximately a third of the total primary fuel sources used in the country. Various technologies, including gasification, combustion and cogeneration can be used for the conversion of biomass materials into electric power.

Biomass-based power generation in India has attracted investments worth USD 120 million and generated more than 5,000 million units of electricity, also providing employment of more than 10 million man-days in rural areas. The country ranks second in the world in biogas utilisation.

The availability of biomass in India is estimated at about 120-150 million tons of usable agricultural residues per year which could be made available for power generation. Principal residues include rice husk, rice straw, bagasse, sugar cane tops and leaves, trash, groundnut shells, cotton stalks, mustard stalks, etc. By using these surplus agricultural residues, more than 18,000 MW of grid quality power could be generated with presently available technologies.

Bagasse is a by-product of the sugar industry, and is produced from crushing sugarcane waste. There is considerable potential for bagasse-based generation which could amount to 5,000 MW. Bagasse-based cogeneration is a process in which waste energy can be used to produce heat or electricity. In the case of the sugarcane industry, cogeneration is the use of a single fuel to produce more than one form of energy in sequence. Cogeneration is not a new concept for the Indian sugarcane industry and MNRE has been promoting bagasse-based cogeneration by providing financial incentives and subsidies to the sugar mills.

Waste to energy generation comprises the use of industrial waste generated from industries such as dairies, distilleries, pulp and paper, tanneries, food and fruit processing units etc, to generate electricity. The current estimates of waste discharge from urban cities translate to an estimated 200 MW of power generation from urban cities. The industrial wastes generated from industries have another potential of around 1000 MW.

Main technology options for setting up waste-to-energy projects include anaerobic digestion/ biomethanation; combustion/incineration; pyrolysis; gasification; landfill gas recovery; and densification/pelletization for waste preparation. The common technologies used include incineration and biomethanation. However, pyrolysis and gasifiaction are also emerging as preferred options. Such projects offer the following advantages:

Quantity of waste is reduced by nearly 60%-90%, depending upon waste composition and technology deployed

Demand for land - for land filling - is substantially reduced Cost of transportation of waste to landfill sites is reduced Net reduction in environmental pollution In the biomentation process, waste slurry could be used as compost, depending upon

waste composition.

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

promoting European Clean Technologies in India & Tackling Climate Change

49

Page 50: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

The estimated installed capacity potential for recovery of energy from industrial wastes is expected to rise to 1600 MWe by 2012 and 2000 MWe by 2017. Industry-wise estimated installed capacity potential for recovery of energy is as follows:

Sector Potential (MWe)2007 2012 2017

Sugar 363 453 567Pulp & Paper 58 72 90Sago/Starch 24 30 37Maize Starch 105 132 164Distillery 503 628 785Dairy 69 77 96Others 165 206 258Total 1287 1598 1997

According to MNRE’s Annual report for 2010-11, under the programme for Energy Recovery From Urban and Industrial Waste, a total of 11 projects with an aggregate capacity of 28.77 MW based on industrial wastes have been completed up to January 31, 2011. In addition, ten projects with an aggregate capacity of about 25 MW were under installation. Completion work on a project for generation of 8 MW power from municipal solid waste in the city of Bengaluru is in final stages and the project is expected to be commissioned during 2011. One project for generation of 16 MW power from municipal solid waste is under construction at Okhla, New Delhi and was to be commissioned in 2011

7.2 National Programmes

To exploit this potential, MNRE has been implementing a biomass energy/co-generation programme for over 10 years. The programme aims at optimum utilisation of biomass materials for power generation or for replacement of conventional fuels through adoption of efficient and state-of-the-art conversion technologies. The technologies being promoted include combustion/ gasification/ cogeneration, using gas/ steam turbines, dual fuel engines/ gas engines, or a combination thereof, either for generation of power alone, or for cogeneration of more than one energy form, for captive and/or grid connected applications. The programme has two main components: biomass power/co-generation & biomass gasification.

The National Program on Energy Recovery from Urban & Industrial wastes aims to promote the setting up of projects for recovery of energy from wastes of a renewable nature from urban and industrial sectors; to create conducive conditions and environment, with fiscal and financial regimes, to develop, demonstrate and disseminate utilisation of wastes for recovery of energy, and to develop and demonstrate new technologies on waste-to-energy through R&D projects and pilot plants.

The scheme is applicable to private and public sector entrepreneurs and organisations as well as NGOs for setting up of waste-to-energy projects on the basis of Build, Own & Operate (BOO), Build, Own, Operate & Transfer (BOOT), Build, Operate & Transfer (BOT) and Build Operate Lease & Transfer (BOLT). It is being implemented through the State Nodal Agencies.

In order to boost biomass-based power generation in the country further, the Government is now preparing a national bio-energy program which will be launched in the 12th Five-Year Plan (2012-17). The Government has allocated INR34b (€1b) for the Biomass Mission and it

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

EUROpEAN BUSINESS AND TECHNOLOGy CENTRE

50

Page 51: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

The estimated installed capacity potential for recovery of energy from industrial wastes is expected to rise to 1600 MWe by 2012 and 2000 MWe by 2017. Industry-wise estimated installed capacity potential for recovery of energy is as follows:

Sector Potential (MWe)2007 2012 2017

Sugar 363 453 567Pulp & Paper 58 72 90Sago/Starch 24 30 37Maize Starch 105 132 164Distillery 503 628 785Dairy 69 77 96Others 165 206 258Total 1287 1598 1997

According to MNRE’s Annual report for 2010-11, under the programme for Energy Recovery From Urban and Industrial Waste, a total of 11 projects with an aggregate capacity of 28.77 MW based on industrial wastes have been completed up to January 31, 2011. In addition, ten projects with an aggregate capacity of about 25 MW were under installation. Completion work on a project for generation of 8 MW power from municipal solid waste in the city of Bengaluru is in final stages and the project is expected to be commissioned during 2011. One project for generation of 16 MW power from municipal solid waste is under construction at Okhla, New Delhi and was to be commissioned in 2011

7.2 National Programmes

To exploit this potential, MNRE has been implementing a biomass energy/co-generation programme for over 10 years. The programme aims at optimum utilisation of biomass materials for power generation or for replacement of conventional fuels through adoption of efficient and state-of-the-art conversion technologies. The technologies being promoted include combustion/ gasification/ cogeneration, using gas/ steam turbines, dual fuel engines/ gas engines, or a combination thereof, either for generation of power alone, or for cogeneration of more than one energy form, for captive and/or grid connected applications. The programme has two main components: biomass power/co-generation & biomass gasification.

The National Program on Energy Recovery from Urban & Industrial wastes aims to promote the setting up of projects for recovery of energy from wastes of a renewable nature from urban and industrial sectors; to create conducive conditions and environment, with fiscal and financial regimes, to develop, demonstrate and disseminate utilisation of wastes for recovery of energy, and to develop and demonstrate new technologies on waste-to-energy through R&D projects and pilot plants.

The scheme is applicable to private and public sector entrepreneurs and organisations as well as NGOs for setting up of waste-to-energy projects on the basis of Build, Own & Operate (BOO), Build, Own, Operate & Transfer (BOOT), Build, Operate & Transfer (BOT) and Build Operate Lease & Transfer (BOLT). It is being implemented through the State Nodal Agencies.

In order to boost biomass-based power generation in the country further, the Government is now preparing a national bio-energy program which will be launched in the 12th Five-Year Plan (2012-17). The Government has allocated INR34b (€1b) for the Biomass Mission and it

is hoped the national initiative will replicate some of the success of the National Solar Mission.

MNRE is also developing a biomass atlas of India (http://lab.cgpl.iisc.ernet.in/Atlas/) which gives state-wise distribution of biomass potential. Remote sensing and GIS technology is being used in the compilation of this resource.

7.3 Regulations and Incentives

The MNRE aims to promote the usage of biomass-based fuels in the country and provides various incentives and benefits for setting up power projects based on biomass and bagasse cogeneration. These incentives are provided in the form of capital subsidy and fiscal incentives. Some of these include the provision of accelerated depreciation (80 percent depreciation in the first year can be claimed for various equipment), relief from taxes and duties (10 years tax holidays and concessional customs and excise duty exemption for machinery and components for initial setting up of projects), exemption from general sales tax in certain states, and term loans provided by IREDA.

7.4 Strategy and approach

As stated in the National Policy on Biofuels (published by MNRE), the focus for development of biofuels in India is to utilize waste and degraded forest and non-forest lands only forcultivation of shrubs and trees bearing non-edible oil seeds for production of bio-diesel. In India, bio-ethanol is produced mainly from molasses, a by-product of the sugar industry. It is envisaged that the next generation of technologies will be based on non-food feedstocks so that the issue of fuel vs. food security is not relevant.

Cultivators, farmers, etc will be encouraged to undertake plantations that provide the feedstock for bio-diesel and bio-ethanol, and corporate organisations will also be enabled to undertake plantations through contract farming involving farmers, cooperatives and self help groups etc. Such cultivation will be supported through a Minimum Support Price for the non-edible oil seeds used to produce bio-diesel. Appropriate financial and fiscal measures will be considered to support the development and promotion and utilization of biofuels.

Research, development and demonstration will also be supported to cover all aspects of feedstock production and biofuels processing for various end-use applications. Emphasis is also to be given to development of second generation biofuels and other new feedstocks for production of bio-diesel and bio-ethanol.

7.5 Capacity Building and Human Resources

Emphasis is being provided to encourage capacity building and training and development of human resources. Universities, Polytechnics and Industrial Training Institutes will be encouraged to introduce suitable curricula to cater to the demand for trained manpower at all levels in different segments of the biofuel sector. Efforts will also be directed at enhancing and expanding consultancy capabilities to meet the diverse requirements of this sector.

State Level Biogas Development and Training Centres are operating in Karanataka, TamilNadu, Madhya Pradesh, West Bengal, Uttar Pradesh, Punjab, Himachal Pradesh,Uttarakhand, Rajasthan, Delhi and Maharashtra.

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

promoting European Clean Technologies in India & Tackling Climate Change

51

Page 52: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

7.6 International Cooperation

Investments and joint ventures in the biofuel sector are encouraged. Under the National Policy, biofuel technologies and projects would be allowed 100% foreign equity through the automatic approval route to attract Foreign Direct Investment (FDI), provided the biofuel is for domestic use only and not for export. However, plantations would not be open for FDIparticipation.

International scientific and technical cooperation in the area of biofuel production, conversion and utilization will be established in accordance with national priorities and socio-economic development strategies and goals. Such cooperation may include joint research and technology development, field studies, pilot scale plants and demonstration projects with the active involvement of research institutions and industry on either side. Technology induction/ transfer will be facilitated, where necessary, with time-bound goals for indigenisation and local manufacturing. Appropriate bilateral and multi-lateral cooperation programmes for the sharing of technologies and funding are to be developed, and participation in international partnerships, where necessary, will also be explored.

7.7 Key issues affecting further development

The following factors have been mooted as having the possibility of affecting potential further development:

Global warming: although biomass is a renewable resource, it still potentially contributes towards global warming because procuring biomass can lead to deforestation. It could result in the conversion of natural habitats into farmlands in order to produce crops, particularlysugarcane. In addition, biomass adds to pollution if it is directly burned – often applicable for people living in rural areas who burn biomass directly as fuel for cooking.

Low capacity utilisation: Capacity utilisation has been observed to be low and one of the reasons is the gradual increase in the costs of biomass fuels and the rise in transportation costs of these raw materials.

Low calorific value: Biomass-based power can be produced using a variety of materials, such as coconut husks, groundnut shells, plywood wastes, etc. However, this means that power derived from biomass sometimes often has a low calorific value.

Unavailability of data: In most of the states, the results shown in the Biomass Atlas do not match with the actual availability of biomass: The Biomass Atlas has not been updated since early 2000 and could be outdated.

High costs / tariff: A major problem faced by sugar companies is the investment costs which have increased with time. This is mainly due to the increasing costs of inputs and the costs of funds, primarily led by steel and cement prices which have almost doubled. A typical bagasse-based project may involve investments of USD 1.2 million per MW. Along with an increase in interest cost, this means that the tariffs of biomass-based power are relatively high. Because of the unregulated nature of biomass market, states with a strong industrial base face strong competition as the price elasticity of biomass for small scale industry is higher than biomass sector.

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

EUROpEAN BUSINESS AND TECHNOLOGy CENTRE

52

Page 53: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

7.6 International Cooperation

Investments and joint ventures in the biofuel sector are encouraged. Under the National Policy, biofuel technologies and projects would be allowed 100% foreign equity through the automatic approval route to attract Foreign Direct Investment (FDI), provided the biofuel is for domestic use only and not for export. However, plantations would not be open for FDIparticipation.

International scientific and technical cooperation in the area of biofuel production, conversion and utilization will be established in accordance with national priorities and socio-economic development strategies and goals. Such cooperation may include joint research and technology development, field studies, pilot scale plants and demonstration projects with the active involvement of research institutions and industry on either side. Technology induction/ transfer will be facilitated, where necessary, with time-bound goals for indigenisation and local manufacturing. Appropriate bilateral and multi-lateral cooperation programmes for the sharing of technologies and funding are to be developed, and participation in international partnerships, where necessary, will also be explored.

7.7 Key issues affecting further development

The following factors have been mooted as having the possibility of affecting potential further development:

Global warming: although biomass is a renewable resource, it still potentially contributes towards global warming because procuring biomass can lead to deforestation. It could result in the conversion of natural habitats into farmlands in order to produce crops, particularlysugarcane. In addition, biomass adds to pollution if it is directly burned – often applicable for people living in rural areas who burn biomass directly as fuel for cooking.

Low capacity utilisation: Capacity utilisation has been observed to be low and one of the reasons is the gradual increase in the costs of biomass fuels and the rise in transportation costs of these raw materials.

Low calorific value: Biomass-based power can be produced using a variety of materials, such as coconut husks, groundnut shells, plywood wastes, etc. However, this means that power derived from biomass sometimes often has a low calorific value.

Unavailability of data: In most of the states, the results shown in the Biomass Atlas do not match with the actual availability of biomass: The Biomass Atlas has not been updated since early 2000 and could be outdated.

High costs / tariff: A major problem faced by sugar companies is the investment costs which have increased with time. This is mainly due to the increasing costs of inputs and the costs of funds, primarily led by steel and cement prices which have almost doubled. A typical bagasse-based project may involve investments of USD 1.2 million per MW. Along with an increase in interest cost, this means that the tariffs of biomass-based power are relatively high. Because of the unregulated nature of biomass market, states with a strong industrial base face strong competition as the price elasticity of biomass for small scale industry is higher than biomass sector.

Limited access to finance: Sugar mills have faced the problem of obtaining financial equity for the upgrading of cogeneration equipment and mill efficiency. In some states, agencies have taken steps along with Infrastructure Leasing & Financial Services Ltd (ILFS) to provide finance, but the amounts were considered to be insufficient.

Promotion of ethanol: India encourages ethanol as a fuel for automobiles and regulations provide for the mandatory blending of 5 percent of ethanol with petrol (to be increased to 10 percent). The government also has plans to free the movement of ethanol across the country and eliminate local taxes thereby increasing its usage.

Lack of Technology: Lack of advanced technology mainly in waste to energy results in lower efficiency and output. This of course also provides an opportunity as well as being seen as a potential issue affecting further development.

7.8 State activity

The role and active participation of the states is crucial in the planning and implementation of biofuel programmes. The State Governments designate a nodal agency for development and promotion of biofuels in their States. Other agencies, panchayati raj (local assembly) institutions, forestry departments, universities, research institutions etc are also associated in these efforts. State Governments are also required to decide on land use for plantation of non-edible oilseed bearing plants or other feedstocks of biofuels, and on allotment of Government wasteland and degraded land for raising such plantations. The creation of necessary infrastructures is to be facilitated to support biofuel projects across the entire value chain.

States active in the development of biomass and waste to energy solutions include the following: (please note: this is not written to be a comprehensive listing)

Tamil NaduThe Tamil Nadu government is promoting the setting up of biomass based power generation projects for various purposes such as generation of power for captive use in industries, sale of power generated/surplus power to TNEB, and for earning revenue under CDM.

Tamil Nadu Energy Development Agency (TEDA) has carried out a district-level biomass assessment study to assess the potential of surplus biomass waste materials to serve as aguide to entrepreneurs wishing to set up biomass based power plants. The state government has also constituted a standing committee to select projects from applications to set up power plants.

The installed capacity of biomass power is about 113 MW in Tamil Nadu, from 12 plants which include two each in Sivakasi and Pudukottai, and one each in Kanchipuram, Tiruvanamallai, Dindigual, Theni, Thanjavur, Madurai, Virudunagar and Thiruvallur districts.

Two more projects with a total capacity of 17.5 MW are nearing completion at Tiruvanamalai and Krishnagiri districts, while four projects with a total capacity of 40 MW are under way in public-private partnership. Nine projects with a capacity of 99 MW have the recommendation of TEDA and are yet to approach the Tamil Nadu Electricity Board for permission to set up.

Tamil Nadu accounts for nearly half the installed capacity of 1,034 MW of bagasse-based cogeneration power in India – the State is one of the leading producers of sugar in India and there are currently about 40 sugar mills operating in the State.

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

promoting European Clean Technologies in India & Tackling Climate Change

53

Page 54: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

Currently all the waste that is collected from the city of Chennai is dumped at two landfills at the outskirts of the city. Projects to recover energy from waste and the composting of organic waste in centralised composting units are yet to be implemented. The Corporation is in the process of drawing up tenders for generation of energy through biomethanation from organic waste. It is estimated that the 151 MW of power can be extracted from solid and liquid urban waste in Tamil Nadu.

PunjabPunjab is predominantly rich in agriculture and contributes the major share to the grain basket of India. It has surplus production of major crops and produces 25% of country’s cotton, 22% of wheat and 55% of rice, even though it has only 1.5% of the total country cultivable area. Punjab has substantial availability of biomass/agricultural waste in the state, sufficient to produce about 1000 MW of electricity.

The Governtment of Punjab has formulated a New and Renewable Sources of Energy Policy-2006 (NRSE- 2006) to maximise the utilisation of RE sources. It plans to add generation capacity of 1000 MW by the year 2020 bringing the share of renewables to a level of 10 %.

Key incentives declared under NRSE-2006 cover wheeling (the PSEB/Licensee will undertake to transmit through its grid the power generated from NRSE projects at a uniform wheeling charge of 2%); sale of power (agreed fixed rate for sale of power to the PSEB/ Licencee from NRSE projects); banking facilities and exemption from electricity duty.

MaharashtraThe bagasse co-generation potential in Maharashtra is around 1250 MW. A total of 292 MW (24 sites) bagasse based co-gen projects and 1 MW biomass based co-gen projects have been commissioned. In order to encourage and motivate investors in co-generation and renewable energy projects, the Govt. of Maharashtra has established the Urjankur Nidhi Trust in the State. The trust has identified 18 sugar factories with potential for implementation of co-gen projects. The total capacity for identified projects is about 137 MW. The projects will be implemented through Special Purpose Vehicles (SPVs) in these identified sugar factories.

In Maharashtra, the power potential from municipal waste is estimated to be 250 MW for solid waste and 37 MW for liquid waste. Techno-economic viability and attractive government policies have created interest in private investors to take up such projects. Further power generation can also be made from potential industrial waste. In this context a total 6.125 MW of projects on industrial waste are commissioned in Maharashtra and 55.40 MW is in the pipeline from municipal solid waste.

Madhya PradeshMadhya Pradesh Urja Vikas Nigam Limited (MPUVNL) is the nodal body for implementing policy and programmes for the state’s renewable energy sector.Rough estimates indicate a potential of around 200 MW of grid feeding biomass energy in Madhya Pradesh, from biomass based sources such as rice husk, mustard crop residue, soya husk, groundnut shell, bagasse, and cotton stalk.

The Indo Lahiri Bio power project in Raipur with a capacity of 6 MW, which was commissioned in Aug 1998, was the country's first rice husk based power plant This plant located at Jaroda near Raipur(Chhattisgarh) feeds all its power directly to the Chhattisgarh Electricity Board's grid.

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

EUROpEAN BUSINESS AND TECHNOLOGy CENTRE

54

Page 55: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

Currently all the waste that is collected from the city of Chennai is dumped at two landfills at the outskirts of the city. Projects to recover energy from waste and the composting of organic waste in centralised composting units are yet to be implemented. The Corporation is in the process of drawing up tenders for generation of energy through biomethanation from organic waste. It is estimated that the 151 MW of power can be extracted from solid and liquid urban waste in Tamil Nadu.

PunjabPunjab is predominantly rich in agriculture and contributes the major share to the grain basket of India. It has surplus production of major crops and produces 25% of country’s cotton, 22% of wheat and 55% of rice, even though it has only 1.5% of the total country cultivable area. Punjab has substantial availability of biomass/agricultural waste in the state, sufficient to produce about 1000 MW of electricity.

The Governtment of Punjab has formulated a New and Renewable Sources of Energy Policy-2006 (NRSE- 2006) to maximise the utilisation of RE sources. It plans to add generation capacity of 1000 MW by the year 2020 bringing the share of renewables to a level of 10 %.

Key incentives declared under NRSE-2006 cover wheeling (the PSEB/Licensee will undertake to transmit through its grid the power generated from NRSE projects at a uniform wheeling charge of 2%); sale of power (agreed fixed rate for sale of power to the PSEB/ Licencee from NRSE projects); banking facilities and exemption from electricity duty.

MaharashtraThe bagasse co-generation potential in Maharashtra is around 1250 MW. A total of 292 MW (24 sites) bagasse based co-gen projects and 1 MW biomass based co-gen projects have been commissioned. In order to encourage and motivate investors in co-generation and renewable energy projects, the Govt. of Maharashtra has established the Urjankur Nidhi Trust in the State. The trust has identified 18 sugar factories with potential for implementation of co-gen projects. The total capacity for identified projects is about 137 MW. The projects will be implemented through Special Purpose Vehicles (SPVs) in these identified sugar factories.

In Maharashtra, the power potential from municipal waste is estimated to be 250 MW for solid waste and 37 MW for liquid waste. Techno-economic viability and attractive government policies have created interest in private investors to take up such projects. Further power generation can also be made from potential industrial waste. In this context a total 6.125 MW of projects on industrial waste are commissioned in Maharashtra and 55.40 MW is in the pipeline from municipal solid waste.

Madhya PradeshMadhya Pradesh Urja Vikas Nigam Limited (MPUVNL) is the nodal body for implementing policy and programmes for the state’s renewable energy sector.Rough estimates indicate a potential of around 200 MW of grid feeding biomass energy in Madhya Pradesh, from biomass based sources such as rice husk, mustard crop residue, soya husk, groundnut shell, bagasse, and cotton stalk.

The Indo Lahiri Bio power project in Raipur with a capacity of 6 MW, which was commissioned in Aug 1998, was the country's first rice husk based power plant This plant located at Jaroda near Raipur(Chhattisgarh) feeds all its power directly to the Chhattisgarh Electricity Board's grid.

DelhiTimarpur Okhla Municipal Solid Waste Management Project: Jindal Ecopolis, the infrastructure arm of Jindal Saw Group was awarded India’s first commercial waste-to-energy plant, at Timarpur, Delhi developed under a concession arrangement with the New Delhi Municipal Corporation. The Rs. 2billion Timarpur plant will convert approximately 2,400 tons of municipal solid waste into 20 MW of power, and will be the largest plant of its kind operational in Asia. Jindal Ecopolis is actively bidding for numerous other plants across India.

Andhra PradeshA number of incentives for the private developers of waste to energy projects operate in the State:

• Central Financial Assistance (CFA) for Municipal Solid Waste (MSW) based projects:Financial Assistance (FA) is to be provided for projects based on different technologies and wastes.

• There is a fast track process for solid waste projects involving use of refuse derived fuel. The strategy includes development of projects for specific cities and inviting bids from project developers and entrepreneurs for setting up of these projects on a public private partnerships (PPP) basis.

• Projects based on high rate bio-methanation technology: Financial assistance will be provided for projects based on power generation from MSW through high rate bio-methanation technology.

• Demonstration Projects for power generation from MSW through new technologies: With the objective of developing indigenous capabilities as well as for demonstration of various new and emerging technologies, financial assistance will be provided for setting up demonstration projects based on gasification/pyrolysis and plasma arc technologies.

• Power generation at sewage treatment plants: Financial assistance will be provided for projects for generation of power from biogas being produced at sewage treatment plants. Project cost can include the cost of engine-genset, hydrogen sulphide (H2S) removal plant and other related equipment.

• Power generation from other urban wastes: Financial assistance can be provided for setting up projects based on bio-methanation technology for power generation from cattle dung, vegetable market and slaughterhouse wastes generated in the urban areas.

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

promoting European Clean Technologies in India & Tackling Climate Change

55

Page 56: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

8. Small Hydro Electric Power

8.1 Introduction

Small Hydro Power (SHP) is utilised for grid connected and off grid power, and is significant as a method of decentralised power generation, especially in hilly regions where the terrain is difficult for promotion of other energy sources. Any projects which harness energy from flowing or falling water from rivers, artificially created storage dams or canal drops and provide between 3 MW and 25 MW are considered as Small Hydro Projects, and aretherefore classified as run-of-river, canal fall based or dam toe based, and further classified as Micro Hydro (station capacity of up to 100kW), Mini Hydro (101 to 2000 kW) or Small Hydro (2501 to 25000 kW).

The SHP sector is moving towards attaining commercial status in India as projects are becoming increasingly economically viable. While small water streams are being tapped in hilly areas, canal drops are being exploited for generation of power in the plain areas. The gestation period for projects and capital investments are also being reduced.

8.2 Capacity and targets

An estimated potential of about 15,000 MW of small hydro power projects exists in India. The MNRE has created a database of potential sites of small hydro and 5,415 potential sites with an aggregate capacity of 14,305.47 MW for projects up to 25 MW have been identified.

Installed capacity as of January 2011 is almost 3000 MW, with the states currently generating most capacity being Karnataka (more than 560 MW), Maharashtra and Himachal Pradesh (more than 230 MW each).

In terms of generation capacity however, it is the northern states which offer the most significant potential (over 50% of the country’s total): Himachal Pradesh offers potential capacity of over 2250 MW, whilst Uttarakhand, Jammu & Kashmir and Arunachal Pradesh all offer around 1500 MW capacity. Between 450 and 550 individual sites have been identified in three of these States (in Jammu & Kashmir it is around 250). In the plain regions Chhattisgarh, Karnataka, Kerala and Maharashtra have sizeable potential. Continuous efforts are being made to identify new potential SHP sites.

Following R&D efforts, new and improved designs of water mills have been developed for mechanical as well as electricity generation of 3-5 kW - these designs were tested at the Alternate Hydro Energy Centre (AHEC) at the Indian Institute of Technology, Roorkee and have been replicated by 6-7 small scale manufacturers. Local organizations such as the Water Mill Associations, cooperative societies, registered NGOs, local bodies, and State Nodal Agencies are being encouraged to install watermills in their areas. A number of NGOs are now propagating water mills for electricity generation to meet small scale electrical requirements of villages. The state of Uttarakhand has taken a lead in setting up electricity generation watermills and over 500 such watermills were installed in remote and isolated areas of the state.

The Ministry’s aim is to add at least 5000 MW of capacity from small hydro projects over the next 10 years or so. The focus of the SHP programme is to lower the cost of equipment, increase its reliability and set up projects in areas which give the maximum advantage in terms of capacity utilisation.

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

EUROpEAN BUSINESS AND TECHNOLOGy CENTRE

56

Page 57: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

8. Small Hydro Electric Power

8.1 Introduction

Small Hydro Power (SHP) is utilised for grid connected and off grid power, and is significant as a method of decentralised power generation, especially in hilly regions where the terrain is difficult for promotion of other energy sources. Any projects which harness energy from flowing or falling water from rivers, artificially created storage dams or canal drops and provide between 3 MW and 25 MW are considered as Small Hydro Projects, and aretherefore classified as run-of-river, canal fall based or dam toe based, and further classified as Micro Hydro (station capacity of up to 100kW), Mini Hydro (101 to 2000 kW) or Small Hydro (2501 to 25000 kW).

The SHP sector is moving towards attaining commercial status in India as projects are becoming increasingly economically viable. While small water streams are being tapped in hilly areas, canal drops are being exploited for generation of power in the plain areas. The gestation period for projects and capital investments are also being reduced.

8.2 Capacity and targets

An estimated potential of about 15,000 MW of small hydro power projects exists in India. The MNRE has created a database of potential sites of small hydro and 5,415 potential sites with an aggregate capacity of 14,305.47 MW for projects up to 25 MW have been identified.

Installed capacity as of January 2011 is almost 3000 MW, with the states currently generating most capacity being Karnataka (more than 560 MW), Maharashtra and Himachal Pradesh (more than 230 MW each).

In terms of generation capacity however, it is the northern states which offer the most significant potential (over 50% of the country’s total): Himachal Pradesh offers potential capacity of over 2250 MW, whilst Uttarakhand, Jammu & Kashmir and Arunachal Pradesh all offer around 1500 MW capacity. Between 450 and 550 individual sites have been identified in three of these States (in Jammu & Kashmir it is around 250). In the plain regions Chhattisgarh, Karnataka, Kerala and Maharashtra have sizeable potential. Continuous efforts are being made to identify new potential SHP sites.

Following R&D efforts, new and improved designs of water mills have been developed for mechanical as well as electricity generation of 3-5 kW - these designs were tested at the Alternate Hydro Energy Centre (AHEC) at the Indian Institute of Technology, Roorkee and have been replicated by 6-7 small scale manufacturers. Local organizations such as the Water Mill Associations, cooperative societies, registered NGOs, local bodies, and State Nodal Agencies are being encouraged to install watermills in their areas. A number of NGOs are now propagating water mills for electricity generation to meet small scale electrical requirements of villages. The state of Uttarakhand has taken a lead in setting up electricity generation watermills and over 500 such watermills were installed in remote and isolated areas of the state.

The Ministry’s aim is to add at least 5000 MW of capacity from small hydro projects over the next 10 years or so. The focus of the SHP programme is to lower the cost of equipment, increase its reliability and set up projects in areas which give the maximum advantage in terms of capacity utilisation.

8.3 Business models

The SHP programme is now essentially private investment driven. 23 States have announced their policies to invite the private sector to set up SHP projects - these projects are normally economically viable and the private sector is showing considerable interest in investing. However, as better sites get exploited, these become more difficult and attendant risks increase. The viability of projects improves with the increase in capacity of the project.

There are two routes used for the allocation of sites in small hydro. Under the MoU (Memorandum of Understanding) route, the state nodal agency invites applications for allocation of sites. The MoU route is desirable for smaller capacity projects as it has lower transaction costs; however it suffers from a lack of transparency and the risk of sub optimal utilisation due to a lack of competition.

Under the bidding route, states invite bids for sites using an identified parameter (free power, upfront premium, tariff or state equity). The project site is transferred to the bidder who quotes the maximum number above the base case for the identified parameter. This method scores over the MoU model as it allows for better prices, penalises developers for inefficiency in project development and operation, and brings greater competition and capacity to the sector.

Manufacturing Base

India has a reasonably well-established manufacturing base for the full range and type of small hydro equipment. There are more than 8 manufacturers in the field of small hydro manufacturing, supplying various types of turbines, generators, control equipment, etc.

8.4 Incentives

A series of steps have been taken to promote development of SHP in a planned manner and to reduce implementation time for projects. The Government provides fiscal and financial incentives to attract private investment in commercial SHP projects, as well as supporting State Governments to set up small hydro projects. Schemes also support renovation and modernization of old SHP projects. Higher levels of support are provided to projects in the North–Eastern States; Sikkim, Jammu & Kashmir, Himachal Pradesh and Uttarakhand.

The Ministry is giving special emphasis to promote use of new designs of water mills for mechanical as well as electricity generation and setting up of micro hydro electric projects. Special programs are being developed with the states to take up an area based approach and involve local organizations such as the Water Mills Associations, cooperative societies, registered NGOs, local bodies, and State Nodal Agencies.

8.5 Other strategic developments

• During the year 2010-11, five training courses were organized by AHEC on design, performance evaluation, testing and other aspects of SHP stations and two training programmes on water mills. An international training course on Small Hydropower -Assessment and Development is also being organised by AHEC for developing countries.

• Standards, manuals and guidelines for various aspects of small hydropower development are being prepared by AHEC through a consultative process and with the sponsorship of MNRE.

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

promoting European Clean Technologies in India & Tackling Climate Change

57

Page 58: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

• A project to set up a small hydro hydraulic turbine R&D laboratory at AHEC with theobjective of creating international level facilities for testing, design and R&D in the area of hydraulic turbines, hydro mechanical equipments, control and instrumentation of small hydro electric power plants has also been sanctioned.

• In order to promote decentralised electricity generation and for meeting electricity requirements of small communities and villages, MNRE launched a pilot scheme to set up 50 portable micro hydel sets of up to 15 KW capacity. Sets were given to 7 States for installation, operation and evaluation, and further sets have now been installed in Uttar Pradesh, Bihar, West Bengal, J&K, Arunachal Pradesh and Himachal Pradesh. These sets are providing electricity to unelectrified villages and are being maintained by local communities. The sets have received a very good response.

8.6 Key issues affecting further development

The small hydro sector suffers from a number of constraints that are impacting its development. Some of these are delays in clearances, approvals and land acquisition; lack of adequate risk mitigation options for SHP developers; access to financing; power transfer, evacuation & access infrastructure issues. Delays in delivery of electromechanical equipment and a lack of adequate manufacturing capacity are also issues which need to be addressed.

On the latter point, most small hydro equipment providers in India are suffering from capacity constraints as the country’s manufacturing capacity is unable to keep up with the growing demand in this sector. Players are reluctant to expand as they are unsure of the future demand. A number of these players have foreign collaborations and in times of high demand either outsource orders to these foreign collaborators or delay deliveries.

8.7 Regional activity

Himachal PradeshHimachal Pradesh has a vast hydro energy potential of approx. 21,000 MW (approx. 750 MW) in the five river basins and the state government attaches significant importance to theexploitation of small hydro potential.

HIMURJA (H.P. Energy Development Agency), an autonomous body established in February 1989 by the State Government has the objective to promote, research, development and popularise renewable energy.

Over 200 hydro projects with an aggregate capacity of 547.50 MW have been identified, with many of these still at MoU stage. Power Purchase Agreements for 38 projects have been signed.

Eight projects have been taken up in Himachal Pradesh under the United Nations Development Programme Global Environment Facility (UNDP- GEF) programme. Out of these projects, 5 projects have been installed and commissioned by HIMURJA state agencies. Three projects have been installed and commissioned by IPPs in the private sector and others (under different programmes) by HIMURJA in the State sector.

Private sector participation is allowed on projects up to 5 MW either where the project is identified by the company or by the Government. SHPs of up to 2.00MW capacity are exclusively reserved for the bonafide Himachalis and Cooperative Societies. (For projects of

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

EUROpEAN BUSINESS AND TECHNOLOGy CENTRE

58

Page 59: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

• A project to set up a small hydro hydraulic turbine R&D laboratory at AHEC with theobjective of creating international level facilities for testing, design and R&D in the area of hydraulic turbines, hydro mechanical equipments, control and instrumentation of small hydro electric power plants has also been sanctioned.

• In order to promote decentralised electricity generation and for meeting electricity requirements of small communities and villages, MNRE launched a pilot scheme to set up 50 portable micro hydel sets of up to 15 KW capacity. Sets were given to 7 States for installation, operation and evaluation, and further sets have now been installed in Uttar Pradesh, Bihar, West Bengal, J&K, Arunachal Pradesh and Himachal Pradesh. These sets are providing electricity to unelectrified villages and are being maintained by local communities. The sets have received a very good response.

8.6 Key issues affecting further development

The small hydro sector suffers from a number of constraints that are impacting its development. Some of these are delays in clearances, approvals and land acquisition; lack of adequate risk mitigation options for SHP developers; access to financing; power transfer, evacuation & access infrastructure issues. Delays in delivery of electromechanical equipment and a lack of adequate manufacturing capacity are also issues which need to be addressed.

On the latter point, most small hydro equipment providers in India are suffering from capacity constraints as the country’s manufacturing capacity is unable to keep up with the growing demand in this sector. Players are reluctant to expand as they are unsure of the future demand. A number of these players have foreign collaborations and in times of high demand either outsource orders to these foreign collaborators or delay deliveries.

8.7 Regional activity

Himachal PradeshHimachal Pradesh has a vast hydro energy potential of approx. 21,000 MW (approx. 750 MW) in the five river basins and the state government attaches significant importance to theexploitation of small hydro potential.

HIMURJA (H.P. Energy Development Agency), an autonomous body established in February 1989 by the State Government has the objective to promote, research, development and popularise renewable energy.

Over 200 hydro projects with an aggregate capacity of 547.50 MW have been identified, with many of these still at MoU stage. Power Purchase Agreements for 38 projects have been signed.

Eight projects have been taken up in Himachal Pradesh under the United Nations Development Programme Global Environment Facility (UNDP- GEF) programme. Out of these projects, 5 projects have been installed and commissioned by HIMURJA state agencies. Three projects have been installed and commissioned by IPPs in the private sector and others (under different programmes) by HIMURJA in the State sector.

Private sector participation is allowed on projects up to 5 MW either where the project is identified by the company or by the Government. SHPs of up to 2.00MW capacity are exclusively reserved for the bonafide Himachalis and Cooperative Societies. (For projects of

up to 5.00 MW, preference is given to bonafide Himachalis). If there is more than one applicant, preference is given to local applicants. No more than 3 projects shall be allottedfor implementation to an IPP.

Uttarakhand Uttarakhand Renewable Energy Development Agency (UREDA) is constructing micro & mini hydro projects (MHPs) for remote village electrification as well as for grid feeding. So far 37 MHPs of composite capacity 3.41 MW have been commissioned and more than 250 villages & hamlets have been electrified through these projects. Since 2005, Uttarakhand has decided to construct MHPs for village electrification with community participation. For construction of these MHPs, tripartite agreements have been signed between UREDA, theAlternate Hydro Energy Center (AHEC) at IIT, Roorkee and Concern User Energy Committee (UCE). IIT is providing technical specialized services for the construction of MHPs, preparation of Detailed Project Report (DPR) etc. and UREDA is providing its services for monitoring, funding and guidance to UEC.

North Eastern States of India Special attention is being given to the development of the eight states of the NE region of the country through a separate budget allocation under various renewable energy programmes. Accordingly, the Ministry allocated 10% of the budgetary support for the deployment of small hydro projects as well as biogas plants, solar systems, remote village electrification, wind energy systems, village energy security projects and energy parks.

Small hydro projects in the North Eastern region are being developed both in grid connected as well as decentralized mode, for which a special incentive package has been developed. So far, 151 SHP projects with an aggregate capacity of 241.27 MW have been set up in the region and another 53 projects aggregating 58.05 MW are under implementation.

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

promoting European Clean Technologies in India & Tackling Climate Change

59

Page 60: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

9. Geothermal

India has reasonably good potential for geothermal and it is estimated that the potential geothermal provinces can produce 10,600 MW of power. As yet geothermal power projects have not been exploited at all, but with increasing environmental problems associated with coal based projects, geothermal could become more important.

Various agencies including the Geological Survey of India (GSI), Oil & Natural Gas Corporation (ONGC), National Geophysical Research Institute (NGRI), and the Central Electricity Authority (CEA) have conducted studies to assess the geothermal potential in India. Valuable data has been generated through these studies. As a result of systematic geothermal exploration down to depths of up to 400 meters, preliminary data has been generated for nearly 340 hot springs in India. The use of geothermal energy has earlier been demonstrated in India for small- scale power generation and thermal applications. Assessing the suitability of sites through magneto- telluric investigations and other studies are also planned.

Potential Sites identified include:

Puga Valley (Jammu & Kashmir) Tatapani (Chhattisgarh) Godavari Basin Manikaran (Himachal Pradesh) Bakreshwar (West Bengal) Tuwa (Gujarat) Unai (Maharashtra) Jalgaon (Maharashtra)

The MNRE is implementing a broad based research, development and demonstration (RD&D) programme for development and promotion of these technologies through research, scientific and academic institutions; national laboratories, universities, industries, state agencies and non-governmental organizations.The key issues faced are:

• energy sources such as wind, solar and hydro are better established and proven to be commercially viable, and therefore more attractive to developers

• the disadvantages of building a geothermal energy plant mainly lie in the exploration stage, which can be extremely capital intensive and high-risk

• some areas of land may have the sufficient hot rocks to supply hot water to a power station, but often these are located in harsh areas.

• as harmful gases can escape from deep within the earth, and the plant must be able to contain any leaked gases, there are therefore potential safety issues.

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

EUROpEAN BUSINESS AND TECHNOLOGy CENTRE

60

Page 61: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

9. Geothermal

India has reasonably good potential for geothermal and it is estimated that the potential geothermal provinces can produce 10,600 MW of power. As yet geothermal power projects have not been exploited at all, but with increasing environmental problems associated with coal based projects, geothermal could become more important.

Various agencies including the Geological Survey of India (GSI), Oil & Natural Gas Corporation (ONGC), National Geophysical Research Institute (NGRI), and the Central Electricity Authority (CEA) have conducted studies to assess the geothermal potential in India. Valuable data has been generated through these studies. As a result of systematic geothermal exploration down to depths of up to 400 meters, preliminary data has been generated for nearly 340 hot springs in India. The use of geothermal energy has earlier been demonstrated in India for small- scale power generation and thermal applications. Assessing the suitability of sites through magneto- telluric investigations and other studies are also planned.

Potential Sites identified include:

Puga Valley (Jammu & Kashmir) Tatapani (Chhattisgarh) Godavari Basin Manikaran (Himachal Pradesh) Bakreshwar (West Bengal) Tuwa (Gujarat) Unai (Maharashtra) Jalgaon (Maharashtra)

The MNRE is implementing a broad based research, development and demonstration (RD&D) programme for development and promotion of these technologies through research, scientific and academic institutions; national laboratories, universities, industries, state agencies and non-governmental organizations.The key issues faced are:

• energy sources such as wind, solar and hydro are better established and proven to be commercially viable, and therefore more attractive to developers

• the disadvantages of building a geothermal energy plant mainly lie in the exploration stage, which can be extremely capital intensive and high-risk

• some areas of land may have the sufficient hot rocks to supply hot water to a power station, but often these are located in harsh areas.

• as harmful gases can escape from deep within the earth, and the plant must be able to contain any leaked gases, there are therefore potential safety issues.

10. Ocean energy

10.1 Tidal energy

European companies, with the support of central governments and the European Union, are positioning themselves to lead the world in tidal energy generation technology, and the United Kingdom (particularly Scotland) is generally seen as world leader in tidal energy research.

In India, surrounded by sea on three sides, the most attractive locations are the Gulf of Cambay and the Gulf of Kachchh in Gujarat on the West Coast, where the maximum tidalrange is 11 m and 8 m, with average tidal ranges of 6.77 m and 5.23 m respectively. Much smaller potential is possible in the Ganges Delta in the Sunderbans in West Bengal this offers good locations for small scale tidal power development. The maximum tidal range in Sunderbans is approximately 5 m with an average tidal range of 2.97 m.

In order to develop and harness about 8000-9000 MW of estimated tidal energy potential for power generation, the MNRE is implementing a tidal energy programme, the first project of which, at 3.75 MW capacity, is being set up by WBREDA through NHPC Ltd. at Durgaduani Creek in Sunderbans. The objective of the tidal energy programme is to study, test and assess the potential of tidal energy in the country and to harness it for power generation.

A number of issues remain to be addressed, including high costs of constructing barrages,damage (erosion, natural fish habitats etc) through altering the ecosystem at the bay where the installation takes place, and from intermittent power provided.

10.2 Wave energy

Wave energy has a potential of 40,000 MW but there are neither installations nor plans announced.

In India the research and development activity for exploring wave energy started at the Ocean Engineering Centre, Indian Institute of Technology, Madras in 1982. Primary estimates indicate that the annual wave energy potential along the Indian coast is between 5 MW to 15 MW per meter, thus a theoretical potential for a coast line of nearly 6000 KW works out to 40000-60000 MW approximately. However, the realistic and economical potential is likely to be considerably less.

As with tidal energy, there are issues to be considered: need for suitable sites where waves are consistently strong, technology and equipment must be able to withstand very rough weather, potential hazards to marine, navigation, and scenic attraction are among these.

These challenges do however also offer opportunities.

10.3 Ocean Thermal Energy

Ocean Thermal Energy has a potential installed capacity of 180,000 MW in India. To date a very small prototype project has been conducted 35km off the Tiruchendur coast (Tamil Nadu), but generally costs of construction and operation of plants mean that this technology has limited appeal at this stage.

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

promoting European Clean Technologies in India & Tackling Climate Change

61

Page 62: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

11. Clean coal

11.1 Introduction

It would be unrealistic to envision India not burning coal for some considerable time into the future. Indeed, India’s coal consumption is set to rise even if other sources of energy are diversified. Therefore, clean-coal technologies, such as Carbon Capture and Storage (CCS) are important.

CCS is a two-step process. First, the carbon dioxide is captured as it enters the atmosphere, and then it is pumped underground for safe storage. While the latter part of the process has been demonstrated, the “capturing” part is underdeveloped and expensive - the Edison Electric Institute estimates that commercial deployment of CCS will require 25 more years of research and cost at least $20 billion. More private investment in CCS technology istherefore needed, but R&D costs are high and investors often see more interest in shorter-term renewable technologies.

Developing clean-coal technologies should not therefore be seen as an immediate and/or reliable solution. However, it is a sector worth investment and research, and the State of Andhra Pradesh, for example, has signed with state-owned Bharat Heavy Electricals to build a 125-megawatt clean-coal plant.

11.2 EU-India cooperation on clean coal

In February 2012 leaders at the EU-India Summit adopted a Joint Declaration on Energy cooperation. The Joint Declaration renews the firm commitment of both sides to enhance cooperation in the energy field, and specifically identifies clean coal as a priority area for mutually beneficial joint activity.

This Declaration is intended to streamline work, with the two parties to now focus on anumber of mutually beneficial topics such as clean coal, energy efficiency, energy safety,renewable energy and smart grids. With regard to resources, the Declaration aims at bringing together European (EU institutions, EU Member States and EU private organisations) and Indian stakeholders to support India in its efforts towards a sustainable economy.

The 6th EU-India Coal Working Group took place in New Delhi in May 2011. Respective energy policy developments were reviewed, with special reference to policies impacting coal production and use. The importance of coal in the energy mix was emphasized, as well as the need to sustainably utilise coal resources and reduce its environmental impact with efficient and modern technologies. European activities to fund Clean Coal Technologies (CCT) and Carbon Capture and Storage (CCS) include two capacity building programmes in India and one new R&D project on the optimisation of IGCC for low rank coal in India.

Programmes

Until recently, the Indian government has focused mainly on improving generation and life-extension of older power plants, and since 1985 nearly 400 units (adding up to more than 40 GW of capacity) have been serviced through the Renovation and Modernization (R&M) programme (CEA, 2004). However, these government programmes are not specifically aimed at improving efficiency - hence, programmes specifically focused on improving fuel efficiency in existing power plants are necessary. As a step forward, the Centre for Power

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

EUROpEAN BUSINESS AND TECHNOLOGy CENTRE

62

Page 63: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

11. Clean coal

11.1 Introduction

It would be unrealistic to envision India not burning coal for some considerable time into the future. Indeed, India’s coal consumption is set to rise even if other sources of energy are diversified. Therefore, clean-coal technologies, such as Carbon Capture and Storage (CCS) are important.

CCS is a two-step process. First, the carbon dioxide is captured as it enters the atmosphere, and then it is pumped underground for safe storage. While the latter part of the process has been demonstrated, the “capturing” part is underdeveloped and expensive - the Edison Electric Institute estimates that commercial deployment of CCS will require 25 more years of research and cost at least $20 billion. More private investment in CCS technology istherefore needed, but R&D costs are high and investors often see more interest in shorter-term renewable technologies.

Developing clean-coal technologies should not therefore be seen as an immediate and/or reliable solution. However, it is a sector worth investment and research, and the State of Andhra Pradesh, for example, has signed with state-owned Bharat Heavy Electricals to build a 125-megawatt clean-coal plant.

11.2 EU-India cooperation on clean coal

In February 2012 leaders at the EU-India Summit adopted a Joint Declaration on Energy cooperation. The Joint Declaration renews the firm commitment of both sides to enhance cooperation in the energy field, and specifically identifies clean coal as a priority area for mutually beneficial joint activity.

This Declaration is intended to streamline work, with the two parties to now focus on anumber of mutually beneficial topics such as clean coal, energy efficiency, energy safety,renewable energy and smart grids. With regard to resources, the Declaration aims at bringing together European (EU institutions, EU Member States and EU private organisations) and Indian stakeholders to support India in its efforts towards a sustainable economy.

The 6th EU-India Coal Working Group took place in New Delhi in May 2011. Respective energy policy developments were reviewed, with special reference to policies impacting coal production and use. The importance of coal in the energy mix was emphasized, as well as the need to sustainably utilise coal resources and reduce its environmental impact with efficient and modern technologies. European activities to fund Clean Coal Technologies (CCT) and Carbon Capture and Storage (CCS) include two capacity building programmes in India and one new R&D project on the optimisation of IGCC for low rank coal in India.

Programmes

Until recently, the Indian government has focused mainly on improving generation and life-extension of older power plants, and since 1985 nearly 400 units (adding up to more than 40 GW of capacity) have been serviced through the Renovation and Modernization (R&M) programme (CEA, 2004). However, these government programmes are not specifically aimed at improving efficiency - hence, programmes specifically focused on improving fuel efficiency in existing power plants are necessary. As a step forward, the Centre for Power

Efficiency & Environmental Protection (CenPEEP), has been set up through NTPC-USAID collaboration. CenPEEP acts as a resource centre for acquiring, demonstrating, and disseminating technologies and practices for reducing greenhouse gas emissions from power plants.

Advanced Coal Technologies

There is now a range of advanced, more efficient, and cleaner technologies for producing electricity using coal. The technologies are becoming more efficient with the use of supercritical and ultra-supercritical steam parameters. Better post-combustion pollution clean-up technologies also are being deployed to improve the environmental performance of PC technologies. Combustion with pure oxygen (oxy-fuel combustion) is under development for facilitating capture of CO2. Fluidized-bed combustion (FBC) technology has been developed for burning lower-quality coals and for high-sulphur and high-moisture-content coals. In addition to combustion, coal gasification followed by combined cycle operation (Integrated Gasification and Combined Cycle (IGCC)) is expected to be deployed commercially with the goal of achieving increased efficiency and easier capture of CO2. These various technologies are at different stages in their development worldwide; all of them have different performance characteristics and technical barriers to overcome.

Power-generation Technologies

Despite a number of technologies being developed, it should be noted that not all advanced power-generation technologies are suitable for Indian domestic coal. Historically, the subcritical technology has been well-adapted for use with Indian coals. Experts feel that more efficient and commercial supercritical technology is likely to be the most relevant for India, especially in the short term.

The government has proposed a new scheme, Ultra Mega Power Plants (UMPP) in which at least nine supercritical plants of 4000 MW each are planned under international bidding. It is expected that these plants will come online by 2017.

Geological storage (CCS)

An assessment of geological storage capacity in India requires further study and exploration. Potential storage sites in India might exist in the Ganges, Brahmaputra and Indus river plains, and along the immediate offshore regions in the Arabian Sea and Bay of Bengal.

The issue of carbon sequestration in India country is in the conceptual stage. The Government of India feels that the technology requires detailed investigations for application. However, pumping carbon dioxide into depleting oil wells in offshore western India is being explored for Enhanced Oil Recovery (EOR). ONGC (the Indian state-owned oil and gascompany) is leading on some of the initial initiatives being currently undertaken in India. It is also actively looking at working along with some of the large UK-based global oil & gas companies as well as some Norwegian and other European oil majors.

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

promoting European Clean Technologies in India & Tackling Climate Change

63

Page 64: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

Appendices

India – Renewable Energy related organisations & State Nodal Agencies

Ministry of New and Renewable Energy (MNRE)Block-14, CGO Complex,Lodhi Road,New Delhi 110 003Phone: +91-11-24361298, 24360707Fax: +91-11-24361298

State Nodal Agencies

ANDHRA PRADESH Vice Chairman & Managing Director Non-Conventional Energy Development Corporation of Andhra Pradesh (NEDCAP) Ltd. 5-8-207/2 Pisgah Complex, Nampally Hyderabad – 500 001. Tel: 040-23201172 (O), Fax: 040-23201666Email : [email protected]

ARUNACHAL PRADESH Director, Arunachal Pradesh Energy Development Agency Urja Bhawan Tadar Tang Marg, Post Box No. 141 Itanagar-791111Tel: 0360-211160 / 216937 (O) Fax: 0360-214426

ASSAMDirector, Assam Energy Development Agency (under Science and Technology Dept. Govt. of Assam) Bigyan Bhawan, Near IDBI Building G S Road, Guwahati-781005Tele:0361-2464619, 2464621, Fax No.0361-2464617Email [email protected] http://www.assamrenewable.org

BIHARDirector, Bihar Renewable Energy Development Agency 1st Floor, Sone Bhawan, Virchand Patel Marg, Patna – 800 001. Tel: 0612-2233572, 2220493 (R); Fax: 0612-2228734Email : [email protected]

CHHATTISGARHPrincipal Secretary Energy and Chief Executive Officer, Chhattisgarh State Renewable Energy Development Agency (CREDA) Mantralaya, DKS Bhawan Raipur (Chhattisgarh) Tel : 0771-2221308, 5080308 (F) 2221163 E-mail: [email protected]

Director Chhattisgarh State Renewable Energy Development Agency MIG/A-20/1 Sector 1, Shankar Nagar, Raipur Tel:0771-2426446; 5022050 (R); 5066770 (Fax) Email : [email protected] [email protected] [email protected]

GOAMember Secretary, Goa Energy Development Agency DST&E Building, 1st Floor, Saligo Plateau Opp. Seminary, Saligao, Bardez Goa – 403511Tel. 271194

GUJARATDirector, Gujarat Energy Development Agency (GEDA) 4th Floor, Block No.11 & 12 Udyog bhawan,Sector-11. Gandhi Nagar-382017Gujarat Tele(079)-23247086/89; Fax: 23247090, E.mail: [email protected] http://www.geda.org.in

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

EUROpEAN BUSINESS AND TECHNOLOGy CENTRE

64

Page 65: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

Appendices

India – Renewable Energy related organisations & State Nodal Agencies

Ministry of New and Renewable Energy (MNRE)Block-14, CGO Complex,Lodhi Road,New Delhi 110 003Phone: +91-11-24361298, 24360707Fax: +91-11-24361298

State Nodal Agencies

ANDHRA PRADESH Vice Chairman & Managing Director Non-Conventional Energy Development Corporation of Andhra Pradesh (NEDCAP) Ltd. 5-8-207/2 Pisgah Complex, Nampally Hyderabad – 500 001. Tel: 040-23201172 (O), Fax: 040-23201666Email : [email protected]

ARUNACHAL PRADESH Director, Arunachal Pradesh Energy Development Agency Urja Bhawan Tadar Tang Marg, Post Box No. 141 Itanagar-791111Tel: 0360-211160 / 216937 (O) Fax: 0360-214426

ASSAMDirector, Assam Energy Development Agency (under Science and Technology Dept. Govt. of Assam) Bigyan Bhawan, Near IDBI Building G S Road, Guwahati-781005Tele:0361-2464619, 2464621, Fax No.0361-2464617Email [email protected] http://www.assamrenewable.org

BIHARDirector, Bihar Renewable Energy Development Agency 1st Floor, Sone Bhawan, Virchand Patel Marg, Patna – 800 001. Tel: 0612-2233572, 2220493 (R); Fax: 0612-2228734Email : [email protected]

CHHATTISGARHPrincipal Secretary Energy and Chief Executive Officer, Chhattisgarh State Renewable Energy Development Agency (CREDA) Mantralaya, DKS Bhawan Raipur (Chhattisgarh) Tel : 0771-2221308, 5080308 (F) 2221163 E-mail: [email protected]

Director Chhattisgarh State Renewable Energy Development Agency MIG/A-20/1 Sector 1, Shankar Nagar, Raipur Tel:0771-2426446; 5022050 (R); 5066770 (Fax) Email : [email protected] [email protected] [email protected]

GOAMember Secretary, Goa Energy Development Agency DST&E Building, 1st Floor, Saligo Plateau Opp. Seminary, Saligao, Bardez Goa – 403511Tel. 271194

GUJARATDirector, Gujarat Energy Development Agency (GEDA) 4th Floor, Block No.11 & 12 Udyog bhawan,Sector-11. Gandhi Nagar-382017Gujarat Tele(079)-23247086/89; Fax: 23247090, E.mail: [email protected] http://www.geda.org.in

HARYANADirector, Haryana Renewal Energy Development Agency (HAREDA) SCO 48, Sector 26 Chandigarh – 160 019 Tel: 0172- 2791917 ,2790918, 2790911(O), 2794185 (R), Fax: 0172-2790928Email : [email protected] http://www.hareda.gov.in

HIMACHAL PRADESHChief Executive, HIMURJA, SDA Complex, Kasumpti, Shimla-171009. Tele:0177-,2620365 (O) 2620371 (R) Fax: 0177-2620365. E Mail: [email protected] http://himurja.nic.in

JAMMU AND KASHMIRChief Executive Officer, Jammu & Kashmir Energy DevelopmentAgency (JAKEDA) 12 BC Road, Rehari, Jammu. Tele:0191 - 2546495, 2552725(R), 2546495 (Fax) Dharrilla, Raj Bagh Srinagar Tele Fax: 0194-2479791

JHARKHAND Director, Jharkhand Renewable Energy Development Agency 328 B, Road No.4 Ashok Nagar Ranchi – 834 002. Tel: 0651-2246970 Fax 0651-2240665Email : [email protected]

KARNATAKA Managing Director, Karnataka Renewable Energy Development Agency Ltd. 1 9, Maj. Gen. A. D. Loganadan, INA Cross, Queen's Road, Bangalore- 560 052 Tele:080-22282220(O), 23365590 (R), Fax-080-22257399. Email : [email protected] http://kredl.kar.nic.in

KERALADirector, Agency for Non-Conventional Energy and Rural Technology (ANERT), PATTOM P.O. PB No.1094, KESAVADASAPURAM Thiruvananthapuram-695 004. Telefax:0471-2440121; 2440122, 2440124 (Fax) 2449854 Email : [email protected]

MADHYA PRADESHManaging Director, MP Urja Vikas Nigam Ltd., Urja Bhawan, Main Road NO.2 Shivaji Nagar, Bhopal –462016Tele: 0755-2556245; 2553595 Fax: 0755-2556245Email : [email protected]

MAHARASHTRADirector General, Maharashtra Energy Development Agency (MEDA) S.No. 191/A, Phase1, 2nd Floor, MHADA Commercial Complex Opp. Tridal Nagar, Yerawada Pune – 411 006. Tel: 020-26614393, 26614403, 26615322 Fax: 020-26615032 Email : [email protected] http://www.mahaurja.com

MANIPURDirector, Manipur Renewable Energy Development Agency (MANIREDA) Department of Science, Technology Sai Road, Takyelpat Imphal-795001Tel: 0385-2222685; FAX: 91-385-224930Email : [email protected]

MEGHALAYADirector, Meghalaya Non-conventional & Rural Energy Development Agency Lower Lachaumiere, Opp. P&T Dispensary, Near BSF Camp (Mawpat) Shillong – 793 001 Telefax: 0364-537343http://mnreda.gov.in

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

promoting European Clean Technologies in India & Tackling Climate Change

65

Page 66: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

MIZORAMDirector, Zoram Energy Development Agency (ZEDA) Zuangtui P.O. Zemabawk Aizawl, Mizoram – 796017Tel: 0389-2350664; 2350664, 2350665 Fax: 2350664 / 2350664 Email : [email protected]

NAGALAND Project Director, Nagaland Renewable Energy Development Agency (NREDA) NRSE Cell Rural Development Department Nagaland Secretariat Kohima, Nagaland Telefax 0370-241408

ORISSAChief Executive Officer, Orissa Renewable Energy Development Agency S-59, Mancheswar Industrial Estate Bhubaneswar – 751 010 Tel: 0674-2580660 (O), Fax :2586368 http://www.oredaorissa.com

PUNJABChief Executive, Punjab Energy Development Agency SCO 134-136, Sector 34-AChandigarh – 160 036 Tel: 0172-2663392; EPBX 2663328/2663382, Fax: 0172-2646384Email : [email protected]@[email protected]

RAJASTHAN Chairman & Managing Director, Rajasthan Renewable Energy Corporation Limited E-166, Yudhister Marg, ‘C’ Scheme Jaipur – 302 001 Tel: 0141-2225898 / 2228198 (O), Fax: 0141-2226028Email : [email protected]@datainfosys.net

SIKKIMDirector, Sikkim Renewable Energy Development Agency, Government of Sikkim D.P.H. Road (Near Janta Bhawan) Gangtok – 737 101 Tel: 03592- 22659, Fax: 03592-22245Email : [email protected]

TAMIL NADUChairman & Managing Director, Tamil Nadu Energy Development Agency (TEDA) EVK Sampath Building, Chennai – 600 006 Tel: 044-28224832 Fax: 044-28236592Email : [email protected]

TRIPURAChief Executive Officer, Tripura Renewable Energy Development Agency Vigyan Bhawan, 2nd Floor, Pandit Nehru Complex West Tripura , Agartala – 799 006 Tel: 0381-2225900, 232-6139 (O), Fax. 0381-225900Email : [email protected]

UTTAR PRADESHChairman and Director, Non-conventional Energy Development Agency (NEDA), U.P. Vibhuti Khand, Gomti Nagar Lucknow – 226 010 Tel: 0522-2720652 (O); Fax: 0522-2720779, 2720829Email : [email protected] http://neda.up.nic.in

UTTRAKHANDDirector, Uttrakhand Renewable Energy (UREDA) Development Agency Energy Park Campus Industrial Area, Patel Nagar, Dehradun-248001 Tele :0135-2710560; Fax No. 0135-2521553Email : [email protected]

WEST BENGALDirector, West Bengal Renewable Energy Development Agency Bikalpa Shakti Bhawan, Plot- J-1/10, EP & GP Block,Salt Lake Electronice Complex, Sector- V, Kolkatta-700091Tel.033-23575038, 23575348 (O),Fax 23575037, 23575347 Email : [email protected] http://www.wbreda.org

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

EUROpEAN BUSINESS AND TECHNOLOGy CENTRE

66

Page 67: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

MIZORAMDirector, Zoram Energy Development Agency (ZEDA) Zuangtui P.O. Zemabawk Aizawl, Mizoram – 796017Tel: 0389-2350664; 2350664, 2350665 Fax: 2350664 / 2350664 Email : [email protected]

NAGALAND Project Director, Nagaland Renewable Energy Development Agency (NREDA) NRSE Cell Rural Development Department Nagaland Secretariat Kohima, Nagaland Telefax 0370-241408

ORISSAChief Executive Officer, Orissa Renewable Energy Development Agency S-59, Mancheswar Industrial Estate Bhubaneswar – 751 010 Tel: 0674-2580660 (O), Fax :2586368 http://www.oredaorissa.com

PUNJABChief Executive, Punjab Energy Development Agency SCO 134-136, Sector 34-AChandigarh – 160 036 Tel: 0172-2663392; EPBX 2663328/2663382, Fax: 0172-2646384Email : [email protected]@[email protected]

RAJASTHAN Chairman & Managing Director, Rajasthan Renewable Energy Corporation Limited E-166, Yudhister Marg, ‘C’ Scheme Jaipur – 302 001 Tel: 0141-2225898 / 2228198 (O), Fax: 0141-2226028Email : [email protected]@datainfosys.net

SIKKIMDirector, Sikkim Renewable Energy Development Agency, Government of Sikkim D.P.H. Road (Near Janta Bhawan) Gangtok – 737 101 Tel: 03592- 22659, Fax: 03592-22245Email : [email protected]

TAMIL NADUChairman & Managing Director, Tamil Nadu Energy Development Agency (TEDA) EVK Sampath Building, Chennai – 600 006 Tel: 044-28224832 Fax: 044-28236592Email : [email protected]

TRIPURAChief Executive Officer, Tripura Renewable Energy Development Agency Vigyan Bhawan, 2nd Floor, Pandit Nehru Complex West Tripura , Agartala – 799 006 Tel: 0381-2225900, 232-6139 (O), Fax. 0381-225900Email : [email protected]

UTTAR PRADESHChairman and Director, Non-conventional Energy Development Agency (NEDA), U.P. Vibhuti Khand, Gomti Nagar Lucknow – 226 010 Tel: 0522-2720652 (O); Fax: 0522-2720779, 2720829Email : [email protected] http://neda.up.nic.in

UTTRAKHANDDirector, Uttrakhand Renewable Energy (UREDA) Development Agency Energy Park Campus Industrial Area, Patel Nagar, Dehradun-248001 Tele :0135-2710560; Fax No. 0135-2521553Email : [email protected]

WEST BENGALDirector, West Bengal Renewable Energy Development Agency Bikalpa Shakti Bhawan, Plot- J-1/10, EP & GP Block,Salt Lake Electronice Complex, Sector- V, Kolkatta-700091Tel.033-23575038, 23575348 (O),Fax 23575037, 23575347 Email : [email protected] http://www.wbreda.org

IREDA Indian Renewable Energy Development Agency Ltd. (IREDA),Core - 4 -A, East Court, First Floor, India Habitat Centre Complex , Lodhi Road, New Delhi - 110 003 Fax 91-11-24602855Email: [email protected] Web Site Address: www.ireda.gov.in

Centre for Wind Energy Technology(C-WET)(An Autonomous Research and Development Institution under the Ministry of New and Renewable Energy) Government of IndiaVelachery - Tambaram Main Road Pallikaranai, Chennai - 600 100Phone / EPABX : +91 - 44 - 2246 3982/ 2246 3983 / 2246 3984 / 2900 1162 / 2900 1167 / 2900 1195 Fax : +91 - 44 - 2246 3980E-mail : [email protected]://www.cwet.tn.nic.in

Solar Energy Centre,MNRE, B-14, CGO Complex Lodhi Road, New Delhi - 110003, Telefax : 0091-11-24360331E-mail:[email protected]

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

promoting European Clean Technologies in India & Tackling Climate Change

67

Page 68: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

Sources of Information

Title / Document/Organisation SourceMinistry of New and Renewable Energy (MNRE), Government of India

www.mnre.gov.in

Strategic Plan for New And Renewable Energy Sector for the Period 2011-17

MNRE

Annual Report for 2010-11 MNREReport of The Working Group on New And Renewable Energy For XIth Five Year Plan (2007-12)

MNRE

The National Policy on Biofuels MNREDirectory of Manufacturers and Suppliers of Systems

MNRE

Towards Building SOLAR INDIA – the Jawaharlal Nehru National Solar Mission

MNRE

Centre for Wind Energy Technology www.cwet.tn.nic.inIndian Renewable Energy Development Agency Ltd

www.ireda.gov.in

Department of Science & Technology, India www.dst.gov.inMinistry Of Power, Government of India www.powermin.nic.inCentral Electricity Regulatory Commission www.cercind.gov.inEuropean Business and Technology Centre (EBTC), Sept 2011

www.ebtc.eu/studies-reports-energy.html

The Renewable Energy Sector in India: an overview of research and activity

EBTC

The European Union and India: A Dynamic, Strategic Partnership

EBTC

Off-grid distributed energy in India – a snapshot EBTCEnergy Efficiency in India – a snapshot EBTCPapers of the India-EU Working Group Meeting on Renewable Energy & Energy Efficiency, January 2007, Brussels

http://ec.europa.eu

Integrated Energy Policy 2006 Government of India Planning Commission

Indian Wind Energy Association www.inwea.orgIndian Wind Turbine Manufacturers Association www.indianwindpower.comIndian Wind Power Association www.windpro.org/Solar Energy Society Of India (Sesi) www.sesi.in/BioIndustry Council of India www.bioenergyindia.orgElectricityIndia.com www.electricityindia.comEnergy Alternatives India www.eai.in Report on Delhi International Renewable Energy Congress

http://mnre.gov.in/pdf/DIREC-2010-Report.pdf

EU-India S&T Cooperation www.euindiacoop.org/electronic_library.php

Renewable Energy: Present scenario and future focus – Gujarat/Denmark Conference Oct 2011

http://geda.gujarat.gov.in

6th Renewable Energy India Expo 2012 http://renewableenergyindiaexpo.com/

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

EUROpEAN BUSINESS AND TECHNOLOGy CENTRE

68

Page 69: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

Sources of Information

Title / Document/Organisation SourceMinistry of New and Renewable Energy (MNRE), Government of India

www.mnre.gov.in

Strategic Plan for New And Renewable Energy Sector for the Period 2011-17

MNRE

Annual Report for 2010-11 MNREReport of The Working Group on New And Renewable Energy For XIth Five Year Plan (2007-12)

MNRE

The National Policy on Biofuels MNREDirectory of Manufacturers and Suppliers of Systems

MNRE

Towards Building SOLAR INDIA – the Jawaharlal Nehru National Solar Mission

MNRE

Centre for Wind Energy Technology www.cwet.tn.nic.inIndian Renewable Energy Development Agency Ltd

www.ireda.gov.in

Department of Science & Technology, India www.dst.gov.inMinistry Of Power, Government of India www.powermin.nic.inCentral Electricity Regulatory Commission www.cercind.gov.inEuropean Business and Technology Centre (EBTC), Sept 2011

www.ebtc.eu/studies-reports-energy.html

The Renewable Energy Sector in India: an overview of research and activity

EBTC

The European Union and India: A Dynamic, Strategic Partnership

EBTC

Off-grid distributed energy in India – a snapshot EBTCEnergy Efficiency in India – a snapshot EBTCPapers of the India-EU Working Group Meeting on Renewable Energy & Energy Efficiency, January 2007, Brussels

http://ec.europa.eu

Integrated Energy Policy 2006 Government of India Planning Commission

Indian Wind Energy Association www.inwea.orgIndian Wind Turbine Manufacturers Association www.indianwindpower.comIndian Wind Power Association www.windpro.org/Solar Energy Society Of India (Sesi) www.sesi.in/BioIndustry Council of India www.bioenergyindia.orgElectricityIndia.com www.electricityindia.comEnergy Alternatives India www.eai.in Report on Delhi International Renewable Energy Congress

http://mnre.gov.in/pdf/DIREC-2010-Report.pdf

EU-India S&T Cooperation www.euindiacoop.org/electronic_library.php

Renewable Energy: Present scenario and future focus – Gujarat/Denmark Conference Oct 2011

http://geda.gujarat.gov.in

6th Renewable Energy India Expo 2012 http://renewableenergyindiaexpo.com/

Reenergy 2012 www.renergy2012.comThe Federation of Indian Chambers of Commerce and Industry (FICCI)

www.ficci.com

Confederation of Indian Industry www.cii.inAssociated Chambers of Commerce and Industry of India

www.assocham.org

World Energy Outlook International Energy Agencywww.iea.org/weo

International Renewable Energy Agency http://www.irena.orgRenewable Energy Country Attractiveness Indices

Ernst & Youngwww.ey.com

World Wind Energy Association http://www.wwindea.orgGlobal Solar Thermal Energy Council http://www.solarthermalworld.org/node/10

66European Commission: Energy Strategy for Europe ; Targets; Progress Reports etc

http://ec.europa.eu/energy/index_en.htm

Renewable Energy Snapshots 2011: EC Joint Research Centre Institute for Energy and Transport

www.jrc.ec.europa.eu/

Renewables Make the Difference http://ec.europa.eu/energy/publications/doc/2011_renewable_difference_en.pdf

Joint Declaration for Enhanced Cooperation on Energy between the European Union and the Government of India

http://ec.europa.eu/energy/international/bilateral_cooperation/doc/india/20120210_joint_declaration_eu_india.pdf

European Renewable Energy Council www.erec.orgEPIA – the European Photovoltaic Industry Association

www.epia.org/

NOF Energy www.nofenergy.co.ukUK Energy Excellence www.ukenergyexcellence.com/US Energy Information Administration www.eia.govThe Energy Industries Council www.the-eic.comWind Energy Production monitoring in France www.suivi-eolien.comState of the Industry Report: Onshore and Offshore Wind

www.bwea.com/pdf/publications/SOI_2011.pdf

Small Wind Systems, UK market report www.bwea.com/pdf/publications/8942_Report_WEB.pdf

Wave and Tidal Energy in the UK www.bwea.com/pdf/publications/WandT_SoI_report.pdf

Rebirth of UK Manufacturing: Creating a World-class Industry

www.bwea.com/pdf/publications/RebirthVol2.pdf

Center for Climate and Energy Solutions www.pewclimate.orgEngineering and Physical Sciences Research Council

http://www.epsrc.ac.uk

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

promoting European Clean Technologies in India & Tackling Climate Change

69

Page 70: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

UK Trade & Investment market information reports:

Country covered Title Source DateLow carbon and Energy Sector in India

OMIS report UKTI 2010

Austria OMIS report UKTI Sept 2010Baltics (Combined) OMIS Executive Summary UKTI 10 Sept 2010Belgium OMIS report UKTI 6 Sept 2010Benelux(Combined) OMIS report UKTI 6 Sept 2010Bulgaria OMIS report UKTI 27 Aug 2010Cyprus OMIS report UKTI 18 Sept 2010Czech Republic OMIS report UKTI 27 Aug 2010Denmark OMIS report UKTI 2010Estonia OMIS report UKTI 27 Aug 2010Finland OMIS report UKTI 30 Sept 2010France OMIS report UKTI 27 Aug 2010Germany OMIS Energy Efficiency in

ConstructionUKTI 20 Oct 2010

Germany OMIS Renewable Energy UKTI 20 Oct 2010Germany OMIS Solar Energy UKTI 20 Oct 2010Germany OMIS Wind Energy UKTI 20 Oct 2010Greece OMIS report UKTI 31 Aug 2010Hungary OMIS report UKTI Sept 2010Iberia (Combined) OMIS report UKTI 31 Aug 2010Iceland OMIS report UKTI 2010Ireland OMIS report UKTI 23 Aug 2010Italy OMIS report UKTI 26 Aug 2010Latvia OMIS report UKTI 1 Sept 2010Lithuania OMIS report UKTI 3 Sept 2010Luxembourg OMIS report UKTI 6 Sept 2010Netherlands OMIS Report UKTI 6 Sept 2010Norway OMIS report UKTI 27 Sept 2010Poland OMIS report UKTI 31 Aug 2010Portugal OMIS report UKTI 31 Aug 2010Romania OMIS report UKTI 20 Sept 2010Slovakia OMIS report UKTI 24 Aug 2010Spain OMIS report UKTI 31 Aug 2010Sweden OMIS report UKTI 2010

A REpORT ON EU-INDIA RENEWABLE ENERGy OppORTUNITIES

EUROpEAN BUSINESS AND TECHNOLOGy CENTRE

70

Page 71: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

UK Trade & Investment market information reports:

Country covered Title Source DateLow carbon and Energy Sector in India

OMIS report UKTI 2010

Austria OMIS report UKTI Sept 2010Baltics (Combined) OMIS Executive Summary UKTI 10 Sept 2010Belgium OMIS report UKTI 6 Sept 2010Benelux(Combined) OMIS report UKTI 6 Sept 2010Bulgaria OMIS report UKTI 27 Aug 2010Cyprus OMIS report UKTI 18 Sept 2010Czech Republic OMIS report UKTI 27 Aug 2010Denmark OMIS report UKTI 2010Estonia OMIS report UKTI 27 Aug 2010Finland OMIS report UKTI 30 Sept 2010France OMIS report UKTI 27 Aug 2010Germany OMIS Energy Efficiency in

ConstructionUKTI 20 Oct 2010

Germany OMIS Renewable Energy UKTI 20 Oct 2010Germany OMIS Solar Energy UKTI 20 Oct 2010Germany OMIS Wind Energy UKTI 20 Oct 2010Greece OMIS report UKTI 31 Aug 2010Hungary OMIS report UKTI Sept 2010Iberia (Combined) OMIS report UKTI 31 Aug 2010Iceland OMIS report UKTI 2010Ireland OMIS report UKTI 23 Aug 2010Italy OMIS report UKTI 26 Aug 2010Latvia OMIS report UKTI 1 Sept 2010Lithuania OMIS report UKTI 3 Sept 2010Luxembourg OMIS report UKTI 6 Sept 2010Netherlands OMIS Report UKTI 6 Sept 2010Norway OMIS report UKTI 27 Sept 2010Poland OMIS report UKTI 31 Aug 2010Portugal OMIS report UKTI 31 Aug 2010Romania OMIS report UKTI 20 Sept 2010Slovakia OMIS report UKTI 24 Aug 2010Spain OMIS report UKTI 31 Aug 2010Sweden OMIS report UKTI 2010

Page 72: EU-IndIa rEnEwablE EnErgy opportUnItIEsebtc.eu/pdf/130805_REP_A-Report-on-EU-India-Renewable... · biomass and waste to Energy 49 ... India is blessed with a variety of renewable

130805_REP

This publication has been produced with the assistance of the European Union. The views expressed in this publication are those of the authors and do not necessarily reflect the views of EBTC or the European Union.

The European Business and Technology Centre (EBTC) supports EU companies and researchers on their market entry to India by offering long-term hands-on support with a myriad of services. With offices in India’s metros of New Delhi, Mumbai, Bengaluru and Kolkata, EBTC is well placed to offer complete end-to-end solutions to companies who want to enter and flourish in the Indian market.

EBTC’s efforts focus on 4 key sectors – Biotech, Energy, Environment and Transport – all of which offer enormous scope for closer EU-India collaboration, be it in business, science or technology. As the connecting platform between business, research, and government, EBTC ensures that EU players are well networked with a solid base from which to develop their venture.

EBTC New Delhi (Head Office)DLTA Complex, South Block, 1st Floor1, Africa Avenue, New Delhi 110 029, INDIATel: +91 11 3352 1500Fax: +91 11 3352 1501E-mail: [email protected]

New Delhi | Mumbai | Bengaluru | Kolkata | Brussels © E

urop

ean

Bus

ines

s an

d Te

chno

logy

Cen

tre,

201

0.