vibrant gujarat summit profile for energy spectrum sector

1. RENEWABLE ENERGY SECTOR

1.1 RENEWABLE ENERGY SECTOR: GLOBAL SCENARIO

RENEWABLE ENERGY SECTOR: GLOBAL SCENARIO

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

1 China• From 2011 to 2012 renewable energy capacity saw a growth of 8 5 1 China

2 US

3 Germany

4 Spain

From 2011 to 2012 renewable energy capacity saw a growth of 8.5 percent and reached to a total renewable energy capacity of 1,470GW in 2012

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

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

Top 6 countriesRE capacity,

World Total Energy Consumption (Quadrillion, Btu)

5 Italy

6 India

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

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

Dec.2012

200300400500

480

210128 90 86

Renewable Power Capacities (Gigawatts)

600

800

1000Total OECD

Total Non

CAGR: 1.5%

0100200 128 90 86 71 31 29 24

0

200

400

600 Non OECDWorld Total

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

0

2010 2020 2030 2040

RENEWABLE ENERGY SECTOR: GLOBAL SCENARIO

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

Selected indicators of RE U it 2011 2012Selected indicators of RE market development Unit 2011 2012

Global new investment in renewable energy (annual)

billion USD 279 244

Solar PV cell production (annual) GW 71 100

Energy dependence and energy security

Ethanol production (annual) billion litres 84.2 83.1

Biodiesel production (annual) billion litres 22.4 22.5

Countries with policy targets # 118 138 GROWH DRIVERS

Continued growth in energy demand

Technological progress

driving down capital cost

397.8400

500

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

Countries with feed-in policies # 94 99 DRIVERS

Stakeholder pressure for

Focus on sustainability

247.6

97.858.5 91.3

145.693.8

158.4

0

100

200

300

400

2013

2023

pressure for environmental action

sustainability and lowering environmental

impact

Total Biofuels Wind Power Solar Power

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

1.2 RENEWABLE ENERGY SECTOR: INDIA SCENARIO

RENEWABLE ENERGY SECTOR: INDIA SCENARIO

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

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

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

• To boost the growth of renewable energy in India, Government of India and many state governments have incentivized the installation of renewable energy through various policies and fiscal measures

f h ’ ll b f bl ( )

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

• By 2050, 69 percent of the country’s energy generation will be from renewable energy (Greenpeace vision)

58.30%

12.30%12.90%

12.80%

6%

0.30%Wind

small hydro

Biomass

17.70%2.10%

0.50%

9%

Coal Renewable Hydro Nuclear Oil Gas

67.90%

Solar

Others

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

Coal Renewable Hydro Nuclear Oil Gas

RENEWABLE ENERGY SECTOR INDIA SCENARIO: WIND ENERGY

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

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

• Wind power accounts for 8.5 percent of total energy mix of India

• 95 percent of wind power comes from 5 states: Tamil Nadu, Gujarat, Maharashtra, Rajasthan and Karnataka

Global installed capacity of wind energy (%)

1800020000

19565State wise installed capacity (MW)

26.6%

2.9%

3.0%

2.2%15.7%

China

U.S.A

Germany

Spain2000400060008000

1000012000140001600018000

7196

3294325027172170514 386 35.1 4.3

21.2%8.1%

6.5%

2.7%India

France

Italy

UK

02000

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

11.1%Canada

Rest of World

RENEWABLE ENERGY SECTOR INDIA SCENARIO: SOLAR ENERGY

India has one of the highest irradiation levels in the world

• Policies at the central government and state government level are the main growth drivers of solar energy sector• Regulations like Renewable Purchase Obligations (RPOs) inclusion with favorable policies play a major role in• Regulations like Renewable Purchase Obligations (RPOs) inclusion with favorable policies play a major role in growth of the solar sector

• Gujarat was the first state to release the solar policy in year 2009. In 2010 MNRE launched the Jawaharlal Nehru National solar Mission (JNNSM) with the objective to add 20 GW of solar power projects by the year 2022

37

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

Phase 1 (2009 13)

Phase 2 (2013 17)

Phase3 (2017 22)

100

23 37

115 Gujarat

Rajasthan

Maharashtra

Andhra Pradesh

(2009-13) (2013-17) (2017-22)

Utility grid power including roof top(MW)

1100 4000-10000 20000

852

553

Andhra Pradesh

Madhya Pradesh

Others

Off grid installations (MW)

200 1000 2000

Solar collectors (million square 7 15 20(million square meters)

7 15 20

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

RENEWABLE ENERGY SECTOR INDIA SCENARIO: BIO ENERGY

Bio energy comprises of bio mass, bio fuels and bio gas. A total of 4,449 MW capacity has been installed in bio energy in both grid connected and off grid capacities in India as on March 31st, 2013

• Biomass based power generation grew at a CAGR of 21.6 percent and increased from 1,112 MW to 3,601 MW between FY07‐FY13FY07 FY13

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

• MNRE is drafting a new policy for National Bio Energy Mission which will be implemented in two phases. Phase1 will be executed in 12th five year plan and Phase 2 in 13th five year plan

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

Growth of Biomass based power generation (MW) 4000 3601

Biomass power installed capacity (MW)

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

2000

3000

4000

CAGR: 21.6%

1000

2000

3000

776 756538 491380249.9

124 5

0

1000

2006‐072007‐082008‐092009‐102010‐112011‐122012‐13

0Uttar …

Maharash…

amil Nadu

Karnataka

And

hra …

hattisgarh

Punjab

Rajasthan

Haryana

Bihar

Gujarat

All India

124.591.3 45.343.3 30.5

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

RENEWABLE ENERGY SECTOR INDIA SCENARIO: SMALL HYDRO POWER

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

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

• Financial assistance of around USD25 million is being provided to the states by the centre for the development of small hydro‐power projects

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

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

4000

Small Hydro power generation in India (MW)

C G 11 3 % 35004000 3632

State wise installed capacity(MW)

1000150020002500300035004000 CAGR: 11.35%

0500100015002000250030003500

964588

300 219 175 158 155 131

943

05001000 0

Source: Ministry of New and Renewable Energy, Government of India; IGEF, Economic Times 1. Projects under 25 MW capacity are considered as “Small Hydro Power” and comes under renewable energy source in India

RENEWABLE ENERGY SECTOR INDIA SCENARIO: WAY FORWARD

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

PROJECT LEVEL

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

FINANCIAL PERSPECTIVE

•Low working capital requirements, particularly for small hydro and wind projects•Ability to boost returns through emissions trading options•Regulatory support, including preferential tariffs•Fiscal incentives (subsidies, grants and tax incentives) available in some States

SUSTAINABILITY

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

FUND REQUIREMENT

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

‐ For grid connected renewable energy technologies – USD 2.6 billion

‐ For off grid renewable energy programs – USD 2.7 billion

Source: Vibrant Gujarat Website

1.3 RENEWABLE ENERGY SECTOR: GUJARAT SCENARIO

RENEWABLE ENERGY SECTOR GUJARAT SCENARIO

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

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

Source

Total Potential (India), MW

Total potential (Gujarat),

MW

RE Installed Capacity MW

Wind 45 000 12 000 3 250

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

• Timely tariff revisions have made the sector viable enabling the state to set up adequate generation capacity

Wind 45,000 12,000 3,250

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

Installed power capacity in Gujarat Break up RE source in Gujarat

76% 17.80%

Installed power capacity in Gujarat

21.30%0.70%0.20%

Break up RE source in Gujarat

Wind

Solar

2.50%

1.70%

Thermal Renewable

77.80%

Biomass

Small Hydro

Source: Energy & Petrochemicals Department, Government of Gujarat,Gujarat Energy Development Agency Note: RE stands for Renewable Energy

Nuclear Hydro

RENEWABLE ENERGY SECTOR GUJARAT SCENARIO: RENEWABLE ENERGY POTENTIAL

Renewable Energy in Gujarat by 2020 aims at increase of RE power to the national grid, from 5 percentin 2009‐10 to 15 percent of the energy mix by 2020 (National Action Plan on Climate Change).

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

SOURCE RESOURCE POTENTIAL

5 75

According to TERI, The overall renewable energy potential in Gujarat is very high, considering if all the identified suitable lands can be made available. Gujarat's overall integrated renewable energy potential is estimated to be around 748.77 GW”

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

Biomass 24 million Tonnes 900 MWe

200 lakh cattleBiogas 200 lakh cattle population 933 MWe

Energy Plantation 67 lakh Ha.Wasteland 15000 MWe

Coastline & HillyWind Coastline & Hilly Regions 12000 MWe

The state has signed power purchase agreements (PPAs) for solar power generation with 80 private players for 25 years including Tata Power US‐based SunEdision and Moser Baer Solar These deals are worth USD 3 billion

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

years, including Tata Power, US‐based SunEdision and Moser Baer Solar. These deals are worth USD 3 billion

RENEWABLE ENERGY SECTOR GUJARAT SCENARIO: RENEWABLE ENERGY MAP

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

Source: Gujarat Energy Development Agency

RENEWABLE ENERGY SECTOR GUJARAT SCENARIO: WIND POWER

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

Wind Power Density in Gujarat, W/m2Gujarat: At a Glance Wind Power Density in Gujarat, W/m2

• Potential: 12000 MW• Installed Capacity: 3250 MW till date• Cost: USD 1 million per MW

Gujarat: At a Glance

p

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

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

Source: TERI, Gujarat Energy Development Agency

RENEWABLE ENERGY SECTOR GUJARAT SCENARIO: WIND POWER

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

In November 2008 Gujarat won the Best Wind

Power Developer State (Percentage Increase) 200030004000

5551,1711,485

1,7822,0952,885 3010

Wind Power capacity (in MW)

CAGR: 48%

Award 2008 for achieving the maximum capacity

additions during the two consequent year FY07

and FY 08 alone the coast of Saurashtra

010002000

271 555

Eligible Unit: Any company/corporate body/association/body of individualsSale: Fixed tariff

WIND POWER POLICY AND GERC REGULATORY FEATURES

Sale: Fixed tariffTariff: INR 4.15 kWh for 25 years

Open Access / 3rd party sale: Allowed banking

Wheeling: At 66 kV: Normal charges as applicable to open accessBelow 66 kV: Normal charges as applicable to open access + 10% of generated fed to the gridOn a Private Land ; On a Revenue waste land @ 1 hectare per Wind turbine generator on long term

Source: GEDA, GERC0

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

RENEWABLE ENERGY SECTOR GUJARAT SCENARIO: SOLAR POWER

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

• In Gujarat there is a potential of generating 10,000 MW from

0.1 percent of available wasteland

• The area with the highest solar potential is the district of

Kachchh which gets 310 sunny days in a year and has the highestKachchh which gets 310 sunny days in a year and has the highest

direct solar insolation of 6.4 kWh/sq. m. / day throughout the

year

• The sites do not require sun tracing

GHI DNI

Jamnagar 2 216 2 697

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

Jamnagar 2,216 2,697

Junagadh 2,212 2,661

Navsari 2,110 2,427

Patan 1,883 2,008


RENEWABLE ENERGY SECTOR GUJARAT SCENARIO: SOLAR POWER

77 plants totaling to about 891 MW capacity were commissioned in Gujarat up to March 2014

GUJARAT’S LARGEST SOLAR POWER PLANTS• Gujarat has taken a lead over other states in renewable

Plant District MW

Adani Enterprises Ltd. Kachchh 40

Sanland Real Estate Pvt. Ltd. Banaskantha 25

Gujarat has taken a lead over other states in renewable energy initiatives, particularly in solar power generation. It is the first state in India to achieve RPO target

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

wasteland

Tata Power Company Ltd. Jamnagar 25

Alex Astral Power Pvt. Ltd. Patan 25

Roha Dyechem Pvt. Ltd. Patan 25

wasteland• For setting up 3000MW Generation & Manufacturing

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

Sun Edison Energy India Pvt.

Ltd.Patan 25

Kiran Energy Solar Power Pvt. Patan 20PHASE

DEVELOPERSCAPACITY MW

SOLAR POWER POLICY : 1ST STATE POLICY IN THE COUNTRY

Ltd.Patan 20

PLG Photovoltaic Patan 20

Hiraco Renewable Energy

dPorbandar 20

PHASE(NOS.)

CAPACITY, MW

Phase I allotment 57 406.5

Phase II allotment 27 562.0

Pvt. Ltd.Total 84 968.5


RENEWABLE ENERGY SECTOR GUJARAT SCENARIO: SOLAR POWER ‐ TARIFF

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

PERIOD JAN 29, 2012 –MAR 31, 2012APR 1, 2013 –MAR 31, 2014

APR 1, 2014 –MAR 31, 2015

Megawatt ‐ scale PV projects availing accelerated depreciationMegawatt scale PV projects availing accelerated depreciation

Levelized tariff for 25 years 9.70 9.02 8.39

First 12 years 10.52 9.64 8.82

Subsequent 13 years 7.00 7.00 7.00

Megawatt ‐ scale PV projects not availing accelerated depreciation


First 12 years 11.97 10.96 10.03

Subsequent 13 years 7.50 7.50 7.50

Kilowatt ‐ scale PV projects availing accelerated depreciation


Kilowatt ‐ scale PV projects availing accelerated depreciation

Levelized tariff for 25 years 13 10 12 18 11 33Levelized tariff for 25 years 13.10 12.18 11.33

LEVELIZED TARIFF FOR SOLAR THERMAL PROJECTS

With accelerated depreciation benefit 11.83 per kWh for 25 years

Source: GERC Order no. 1 of 2012: Determination of tariff for procurement of power by distribution licensees and others from Solar Energy Projects for the State of Gujarat – Rehearing in order No.1 of 2012 as per the directions of the Hon’ble APTEL vide Judgment dated 17.04.2013 in Appeal No. 75 of 2012.

Without accelerated depreciation benefit 13.23 per kWh for 25 years

RENEWABLE ENERGY SECTOR GUJARAT SCENARIO: SOLAR POWER – PROJECT LOCATIONS

Geographical locations of Solar power projects

Source: GETCO

RENEWABLE ENERGY SECTOR GUJARAT SCENARIO: BIO ENERGY

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

Biomass potential in Gujarat

41.20 MW capacity biomass projects commissioned in Amreli Junagadh and

Crop Residue

CROPRajkot 228

DISTRICTS WITH THE HIGHEST BIOMASS POTENTIAL, MW

Amreli, Junagadh and Vadodara

13.23 MW waste‐to‐energy power

Crop Residue

Forest ResidueJamnagar 203 Bhavnagar 192 Junagadh 168

Surendranagar 142 Amreli 137

BIO‐ENERGY PROGRAMMES

• Institutional biogas plants 9835 m3/day capacity in various institutions across

generation projects

FORESTJunagadh 18 The dangs 18 Sabarkantha 16

Valsad 15

g p / y p y

the state

• India’s first and Asia’s biggest power plant based on biomass gasification has

recently been commissioned at village Kothara in the border district of Kutch,

Dahod 12 Banaskantha 11

Gujarat. The project is expected to generate 500 KW electricity from its two

generating units


1.4 RENEWABLE ENERGY SECTOR: GUJARAT SCENARIO – SUCCESS STORIES

RENEWABLE ENERGY SECTOR GUJARAT SCENARIO: MODEL SOLAR CITY PROJECT ‐ GANDHINAGAR

Government of India declared Gandhinagar as a Model Solar City setting example for Solar Cities throughout India and other nations

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

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

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

efficiency and renewable energy supply in the cityS i i i i l f h

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

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

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

• Awareness generation and capacity buildingactivities.

The program aims at minimum 10% reduction in

4,000 KW SPV‐based grid‐connected power generating rooftop systems at government buildings

p gprojected demand of conventional energy at the end offive years, which can be achieved through a combination ofenergy efficiency measures and enhancing supply fromrenewable energy sources.

240 solar rooftop systems of 1 KW each commissioned at godowns

6 solar hybrid systems of 5 KW each

Source: MNRE, GEDA

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

RENEWABLE ENERGY SECTOR. GUJARAT SCENARIO: 5 MW GANDHINAGAR SOLAR ROOFTOP PROGRAMME

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

to advance towards energy self‐sustainability

OPPORTUNITY FOR ROOFTOP OWNERS

• This Programme provides an opportunity to property owners in Gandhinagar City for participation by offering their rooftop or terrace for installation of Solar Photovoltaic System for solar power generation

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

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

ROLE OF PROJECT DEVELOPER

process. The selected developer will finance/Install/Own/Operate and maintain PV roof systems on owners roof tops

• The energy generated from this system will be sold to Distribution Company and Distribution Company will pay duly approved tariff to developers

• Selected developers will execute the “Green Incentive and Lease Agreement” with individual property owners, whose rooftop or terrace will be utilized for the SPV systemp p y , p y

TO BE IMPLEMENTED IN• Surat• Rajkot• Mehsana• Bhavnagar• Vadodara

Source: Gujarat Energy Development Agency, Gujarat Power Corporation Ltd

RENEWABLE ENERGY SECTOR GUJARAT SCENARIO: GUJARAT SOLAR PARK – MAKING INDIA A SOLAR HUB

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

Concentrated zone of development for solar power related activities

GUJARAT SOLAR PARK CHARANKA PATAN DISTRICT

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

GUJARAT SOLAR PARK, CHARANKA, PATAN DISTRICT

GEDA FINANCIAL INSTITUTES

Policy directives Project

fundingProcessed applications gpp

GPCLNodal Agency for Solar Park development

GETCO

SSNNL

GERC/CERC

Government agencies

Transmission infrastructure

Water availability

Tariff determination

Tariff determination

Infrastructure development charge

Shared with solar developer,

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

KEY FEATURES

Shared with solar developer, manufacture, R&D setup

p yNo. of developers: 20


RENEWABLE ENERGY SECTOR GUJARAT SCENARIO: GUJARAT SOLAR PARK – MAKING INDIA A SOLAR HUB

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

AWARDMERITS:• Gave a discrete definition of “solar park” in

the Indian contextthe Indian context• World’s largest multi‐developer and multi‐

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

SOCIAL COMMITMENT:• All‐weather road connectivity• Water to carry out cultivation activities• Drinking water facility to the Charanka village• Ambulance service• State‐of‐the‐art training facility to provide• State‐of‐the‐art training facility to provide

training to the villages in various fields


RENEWABLE ENERGY SECTORGUJARAT SCENARIO: INDIA’S FIRST CANAL TOP SOLAR POWER PROJECT

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

Energy generated from this pilot project will be directly fed into h l l l i i id d ili d b b d illthe local electricity grid and utilized by nearby towns and villages

INNOVATIVE IDEAS• Cover the canal with Solar Panels to

S L d @ 5 MW

TECHNICAL DETAIL• Projected energy production: 1.6 million

• Save Land @ 5 acre per MW• Minimize evaporation from canal (9 million liters

water saving per MW per year)• Produce eco‐friendly power• Shadowing effect of panel results in reduced

photosynthesis and less algae growth leading to

units/year/MW• Irradiation: 4.6 – 6.4 kWh/m2• Installed capacity: 1 MWp• Technology: polycrystalline solar modules, 280 Wp• Number of modules: 3616

Source: GSECL

photosynthesis and less algae growth leading to less maintenance cost

• Pilot Project is for 1 MW

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

RENEWABLE ENERGY SECTOR GUJARAT SCENARIO: BIO ENERGY

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

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

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

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

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

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

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

capacity biomethanation plant has been installed & commissioned December 2011.The same is working with more than 80% efficiency. The produced biogas is used in its CPP

Source: Gujarat Energy Development Agency

RENEWABLE ENERGY SECTORGUJARAT SCENARIO: LARGE RE PLAYERS IN GUJARAT

Solar powerSolar power developers

Solar PV manufac‐turers Sonki Solar India.

Wind power developersp

Wind equipment manufac‐turers

RENEWABLE ENERGY SECTOR GUJARAT SCENARIO: 2020

NAPCC goal: 1 percent annual increase of RE power to the national grid, from 5 percent in 2009‐10 to 15 percent of the energy mix by 2020

Source / Installed 12th five year Plan period Capacity Source /Technology

capacity (MW) as on May 2012

additions 12th

PlanFY13 FY14 FY15 FY16 FY17

Wind 3,352 326 377 456 498 508 2,165

SHP 7 2 3 4 3 3 15

BIO 41.2 35 45 55 60 44 239

Solar 891 209 331 331 441 560 1,872

WTE 0 2 2 0 2 6

Total 4,291.2 572 758 848 1,002 1,117 4,297

Expected capacity addition in RE sector by 2017 will be 4,297 MW with highest contribution from wind – 50 percent and

solar – 44 percent Total installed capacity from RE sources

by 2017 7 863 MW

Source: Energy & Petrochemicals Department, Government of Gujarat0

by 2017 – 7,863 MW

RENEWABLE ENERGY SECTOR GUJARAT SCENARIO: 2020

Fund requirementNon‐ Conventional power projects

under private sector

Development of distributed gas based power combined with non conventional

PROJECT FUND REQUIRED(USD BILLION)

under private sector

Development of wind‐solar hybrid

installations and bi j

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

i l l

sources

Wind 2.65

SHP 0.02

biomass projects

Development of large scale solar parks and

canal‐top solar projects

commercial scale

Bio Mass 0.24

Solar 3.82Development of solar

manufacturing capacities Offshore wind

projects development

WTE 0.01

Total 6.74

Development of projects under solar rooftop

programme (Bhavnagar, Surat, Rajkot, Mehsana)

Source: Energy & Petrochemicals Department, Government of Gujarat

RENEWABLE ENERGY SECTOR GUJARAT SCENARIO:INVESTMENT OPPORTUNITIES

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

h l l f d l h b d ll b h h l l• The total potential for wind solar hybrid installations is about 74,000 MW with the largest potential in Rajkot and Kachchh

• Gujarat has a 1,600 km coast line and good wind velocity offshore. The total offshore wind potential is about 5,000 MW

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

WIND SOLAR HYBRID INSTALLATION, MW

DISTRICTS WITH THE HIGHEST HYBRID POTENTIAL, MW

y p p jconsultation with Central Government

WIND SOLAR HYBRID INSTALLATION, MW

Rajkot 23,182

Kachchh 16,151

Jamnagar 8,707

Surendranagar 6 625Surendranagar 6,625

Amreli 3,585

Bhavnagar 2,514

Sabarkantha 2,303

Banaskantha 2,044,

Junagadh 2,038

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

Renewable Energy Sector Gujarat Scenario: Investment Opportunities

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

GUJARAT GEOTHERMAL POTENTIAL IS CONCENTRATED IN CAMBAY TIDAL POTENTIAL IN GUJARAT, MW

Tidal potential

POTENTIAL SITETIDAL ENERGY POTENTIAL,

MW

Gulf of Kachchh 1200

Gulf of Khambat 7000

Total 8200


3.5 Renewable Energy Sector:

Government Initiatives & Interventions

Renewable Energy Sector Government Initiatives & Interventions

A robust regulatory framework has been put in place to realize India’s wind, hydro, solar and biomass potential

Electricity Act 2003

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

• Fix certain minimum percentages for purchase of renewable power

National Electricity Policy 2005

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

Tariff Policy 2006

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

National Action Plan on Climate Change 2008

• Outlined existing and future policies and programs addressing climate mitigation and adaptation• NAPCC has advised that starting 2009‐10, RPOs be set at 5% of total grids purchase, and be increased by 1% each year for 10 g , g p , y yyears.

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

Renewable Energy SectorGovernment Initiatives & Interventions‐ National Solar Mission

Objective of the National Solar Mission is to establish India as a global leader in Solar Energy, by creating the policy conditions for its diffusion across the country as quickly as possible.

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

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

100 MW rooftop and small projects

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

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

Phase 1: 2010‐13 Phase 2: 2013‐17 Phase 3: 2017‐22

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

B. 2000 MW off‐Grid project by 2022

Policy framework to attract and scale‐up

Market based on FIT and mandatory solar RPO

Grid competitive solar power

• Off grid solar and decentralized solar applications.

• Capital and interest subsidy; Refinance by IREDA et al

• Other channels to supply & maintain Products

Grid: 1,100 MWOff‐grid: 200 MW

Grid: 4‐10,000 MW

Off‐grid: 1000 MW

Grid: 20,000 MW

Off‐grid: 2000 MW

C. Support projects

• Centre of excellence and incubation

• Demonstration and pilot projects

• 100MW parabolic trough based

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

MW MW MW 100MW parabolic trough based

• 100‐150MW solar hybrid plant

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

Policy Instrument Indian Experience Incentives for Developers

Feed in Tariffs/ Preferential Tariffs• Being used for all active RE technologies. introduced by most states

except J&K, Bihar, Jharkhand, Odisha and the North Eastern states. P f d b d l b i h j b k bili

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

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

considered in FIT

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

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

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

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

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

guaranteed revenues for project developers

Renewable Purchase Obligation (RPO)

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

• RPOs adopted by 23 SERCs

• Readymade market for renewable power sources

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

renewable energy

Renewable Energy Certificates (REC’s)

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

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

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

reducing penalties

Carbon Trading

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

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

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

Tax Incentives ‐ Exemptions onh d h l f

Source:

Tax Incentives Exemptions on Capital Investments and

Generation

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

• Tax Incentives help improving RoE ofdeveloper

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

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

renewable projects has come down

Renewable Energy SectorGovernment Initiatives & Interventions

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

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

Renewable Energy Certificates

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

• Pricing of REC component:

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

• A renewable generating entity that has:

Overview

g g y

• Not entered into any PPA at a preferential tariff

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

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

Eligibility

Renewable Purchase Obligations

• In 2007, the Government released draft versions of a new policy which seeks to increase the target to 20 percent by 2020• Several State Regulators (“SERC”) have translated this national target into Renewable Purchase Obligations (RPO)Several State Regulators ( SERC ) have translated this national target into Renewable Purchase Obligations (RPO)

• RPOs mandate the minimum quantum of electricity which distribution utilities in the States have to source from renewable sources (failing which, a penalty may be imposed on them)

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

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

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

FOR ADDITIONAL INFORMATION CONNECT US @

Gujarat Energy Development Agency http://www.geda.gujarat.gov.in

Energy and Petrochemicals Deaprtment http://www.guj‐epd.gov.in/

Gujarat Power Corporation Ltd http://www.gpclindia.com

Gujarat Energy Research & Management Institute http://www.germi.org/

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