NEWSLETTER ON SOLAR PV INDUSTRY

RE-INVEST 2015 CONFERENCE Organised by MNRE, Govt. Of India in New

Delhi from15-17th Feb, 2015.

First ever Renewable Energy Global Investors Meet & Expo as a follow up to the ‘Make in India’ initiative inaugurated by Prime Minister of India, Mr. Narenedra Modi. 

First major platform for investment promotion in this sector at Government of India level to signal India’s commitment to the development and scaling up of renewable energy

CENTRAL THEME OF RE-INVEST The main purpose was to attract large scale

investors for renewable energy sector in India .

This event also provides an opportunity for global investment community to connect with energy stakeholders in India.

MAJOR INITIATIVE BY GOVT. As renewable energy contribute about 6.5% in the

electricity mix of country and also it is proposed that this would be taken to about 12% in the next 3 years & 15% by 2022 the Govt. took various initiative to add massive investment in this sector:

• Accelerated Depreciation• Generation based incentive• Feed-in-tariff• Viability gap funding

FDI up to 100% under automatic route is permitted in this sector.

KEY STATISTICS OF THE EVENT Total Speakers: 202, from 29 countries

Total Delegates: 2860, from 42 countries

Total Companies Represented: 578 Indian, 124 International

Total Media Representatives: 164, from 88 Publications / Agencies

Total Exhibitors: 118

Country Pavilions: Germany, UK, Italy, UAE

Total Visitors: 2040 (over and above Conference delegates)

KEY FACTS / TARGETS / COMMITMENTS 

India’s current installed power capacity: 254 GW

India’s current RE portfolio: 33.79 GW

India’s RE generation potential from commercially exploitable resources: 895 GW

India’s RE target for 2022: • Total generation capacity: 175 GW• Solar: 100 GW (60 GW Ground Mount, 40 GW

Roof Top)• Others: 15 GW (Small-Hydro, Biomass)

CONTD.... Total investments expected by 2022: US$ 100 Billion

Total no. of companies committed to India’s RE growth: 293

Total commitment from RE developers: 266 GW

Total commitment from Mfg. sector: 23 GW

Debt funding commitment from Banking sector: 78 GW

Investment commitmen t from overseas companies: 58 GW

REPORT BY  DEUTSCHE BANK Although  Deutsche Bank conceded that this looks quite

ambitious on paper ,complicating issues were addressed using ‘timely and appropriate’ policy mechanisms:

• Lowering the cost of financing• Attracting investment• Making land available

Energy Minister of the Govt. Of India told Ernst & Young that country aimed to meet target even earlier, and wanted to become the world’s no. 1 market for renewable energy by 2019. Current rank is 5th.

For the cost of solar, the report notes that at~12c/kwh, it is already at or below parity with traditional power generated using imported coal in some regions in India.

CONTD... Solar is expected to achieve parity with

domestic coal(~$0.10/kwh) by 2020.

Difference between solar and coal generations has fallen from 7:1 to nearly 1:1 with parity to be achieved against imported coal this year( thanks to new financing innovation).

Deutsche says, this downward price trajectory could be accelerated by the arrival in the investment of yield-cos.

RECENT ISSUE OF INDIAN SOLAR COMPASS In recent issue of Indian Solar Compass a  reputed

Strategic Consulting, Market Intelligence and Project Development company based in India highlights:

Investment of over INR 116 billion ($1.9 billion, €1.4 billion) is expected over the next one year in the Indian solar market

Solar capacity addition of 1,660 MW will happen in India over the next four quarters. This would be a record growth for a 12 months period.

US module supplier First Solar recovers lost ground in India by securing over 100 MW of supply contracts under the National Solar Mission

CONTD..... “Made in India” modules by Waaree, Vikram

Solar and ReneSola, Tata Power Solar are to be used for projects under the DCR category of the NSM.

The price Established EPC contractors such as Juwi, L&T, Sterling & Wilson and Belectric win many projects under the National Solar Mission.

Based on the current contract pipeline, local start up, Rays Power Infra, emerges as one of the largest third-party EPC contractors in the Indian solar market.

CONT.... The price of Chinese C-Si tier I modules fell

by around 10% (in INR terms) in the last four quarters. This is double the long-term trend of 5%. We may be entering a period of accelerated, sustained solar cost reduction.

· The same is true with respect to inverters: Some aggressive players in the central inverters market have spearheaded a price crash to INR 2.7/Wp

SUMMARY Going by the “Make in India” campaign

launched by the new Govt., India has the potential to be a manufacturing powerhouse in the region. However, scores of words have to translate to visible action if we have to achieve anything close to the collective vision of our leaders. Solar PV industry is poised to grow astronomically with the announcement of ambitious, yet attainable target of 100GW solar power capacity by 2022. SEMI’s value proposition is to be a catalyst in the progress of the solar cell manufacturing entities with its advisory & standards driven capabilities.

Thankyou