TABLE OF CONTENTS

1.

Renewable Energy Sector

1.1

Global Scenario

1.2

India Scenario

1.3

Gujarat Scenario

1.4

Gujarat Scenario: Success Stories

1.5

Gujarat Scenario: Vision 2020 and Investment Opportunities

1.6

Government Initiatives and Interventions

1. RENEWABLE ENERGY SECTOR

1.1 RENEWABLE ENERGY SECTOR: GLOBAL SCENARIO

RENEWABLE ENERGY SECTOR: GLOBAL SCENARIO

Sufficient renewable energy resources are available to satisfy Worlds current and future energy demand.
Solar energy alone could meet the existing global energy needs 10,000 times over
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
USD 95.2 billion in 2012

Top 6
countries
RE capacity,
Dec.2012

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

China

US

Germany

Spain

Italy

India

World Total Energy Consumption (Quadrillion, Btu)

1000

Total
OECD

CAGR: 1.5%

800

Total
Non
OECD
World
Total

600
400

500
400
300
200
100
0

Renewable Power Capacities

480
(Gigawatts)

200
0
2010

2020

2030

Source: REN 21, www.cleantechnica.com

2040
Note: RE stands for Renewable Energy

210

128

90

86

71

31

29

24

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
market development

Global new investment in

renewable energy (annual)

billion
USD

Solar PV cell production

(annual)

GW

71

100

84.2

83.1

22.4

22.5

118

138

Countries with feed-in policies #

94

99

Countries with policy targets

300

2012
244

Biodiesel production (annual)

400

2011
279

Ethanol production (annual)

500

Unit

billion
litres
billion
litres

Energy
dependence
and energy
security
Technological
progress
driving down
capital cost

Global Clean Energy Projected Growth

2013 - 2023 (USD Billion)

397.8
247.6

145.6
97.8

200

100

58.5

93.8

158.4
91.3

0
Total

Biofuels

Wind Power

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

Solar Power

2013
2023

GROWH
DRIVERS

Focus on
sustainability
and lowering
environmental
impact

Continued
growth in
energy
demand

Stakeholder
pressure for
environmen
tal action

1.2 RENEWABLE ENERGY SECTOR: INDIA SCENARIO

RENEWABLE ENERGY SECTOR: INDIA SCENARIO

Renewable energy is becoming an increasingly important element of Indias national energy mix
As per the Ministry of New and Renewable Energy (MNRE), Indias total renewable potential is ~245 GW, however the current
installed capacity is only 28 GW
Wind energy dominates Indias renewable energy sector. As on 31st March, 2013 wind accounts for ~68 percent (i.e. 19.05 GW) of
Indias 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
By 2050, 69 percent of the countrys energy generation will be from renewable energy (Greenpeace vision)

Break-up of installed power generation capacity

Installed capacity of renewable energy in India

6%

58.30%

Wind

12.80%
0.30%

12.30%

small hydro
Biomass

12.90%

Solar

0.50%
9%
Coal

Renewable

67.90%

17.70%
2.10%
Hydro

Nuclear

Oil

Source: Ministry of Power, Government of India;

Ministry of New and Renewable Energy, Government of India

Gas

Others

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 (%)
China
U.S.A

15.7%

2.2%

26.6%

3.0%

Germany
Spain

2.9%

India

2.7%

State wise installed capacity (MW)

20000
18000
16000
14000
12000
10000
8000
6000
4000
2000
0

France

6.5%

Italy
21.2%

8.1%
11.1%

UK
Canada
Rest of World

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

19565

7196
3294 3250 2717 2170

514 386 35.1 4.3

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
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

JNNSM Capacity addition target

Phase 1
(2009-13)

Utility grid
power including
roof top
(MW)

1100

Phase 2
(2013-17)
400010000

Phase3
(2017-22)
20000

State wise split of solar power projects (MW)

23 37

115

Gujarat
Rajasthan

100

Maharashtra

852

Off grid
installations
(MW)

200

1000

2000

Solar collectors
(million square
meters)

15

20

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

553

Andhra Pradesh
Madhya Pradesh
Others

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-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

3000
2000

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

All India

Gujarat

Bihar

Haryana

Rajasthan

Punjab

Chattisgarh

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

Andhra

538 491 380 249.9

124.591.3 45.3 43.3 30.5

Karnataka

1000

776 756

Tamil Nadu

1000

2000

Maharashtra

CAGR: 21.6%

Uttar

3000

4000

Biomass power installed capacity

(MW)

RENEWABLE ENERGY SECTOR INDIA SCENARIO: SMALL HYDRO POWER

Small Hydro1 Power Capacity increased with CAGR of 11.35

percent from 1.905 MW to 3,632 MW between FY07-FY13
MNRE is providing 'Central Financial Assistance (CFA)' to set up small/micro hydro projects both in public and private sectors
Financial assistance of around 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

Small Hydro power generation in

India (MW)
4000
3500
3000
2500
2000
1500
1000
500
0

CAGR: 11.35%

State wise installed capacity

(MW)
4000
3500
3000
2500
2000
1500
1000
500
0

3632

964

588

943
300 219 175 158 155 131

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 projects
Fast-track project approval- significantly fewer environmental or CERC clearances required compared to conventional
power projects
Easier to achieve financial closure vis--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 Indias 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 Indias renewable energy basket
Share of RE in total energy mix in Gujarat is ~18 percent
Gujarats share of RE sources in Western Region is 46
percent

Total
Potential
(India),
MW

Total
potential
(Gujarat),
MW

RE Installed
Capacity MW

Wind

45,000

12,000

3,250

Solar

> 100,000

69,000

852.31

Source

Timely tariff revisions have made the sector viable

enabling the state to set up adequate generation capacity
Uninterrupted power supply attracts companies to set up
business in Gujarat

Installed power capacity in Gujarat

Break up RE source in Gujarat

21.30%

76%

0.20%
0.70%
Wind

17.80%

Solar
Biomass

1.70%
Thermal
Nuclear

2.50%
Renewable
Hydro

Source: Energy & Petrochemicals Department, Government of Gujarat,

Gujarat Energy Development Agency Note: RE stands for Renewable Energy

77.80%

Small 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 percent
in 2009-10 to 15 percent of the energy mix by 2020 (National Action Plan on Climate Change).
According to TERI, The overall renewable energy potential in Gujarat is very high, considering if all the identified suitable
lands can be made available. Gujarat's overall integrated renewable energy potential is estimated to be around 748.77 GW

SOURCE

RESOURCE

POTENTIAL

Sun

Solar Radiation

5.75
kWh/Sq.m./day

Biomass

24 million Tonnes

900 MWe

Biogas

200 lakh cattle

population

933 MWe

Energy Plantation

67 lakh Ha.
Wasteland

15000 MWe

Wind

Coastline & Hilly

Regions

12000 MWe

The state has signed power purchase agreements (PPAs) for solar power generation with 80 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

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.

Gujarat: At a Glance
Potential: 12000 MW
Installed Capacity: 3250 MW till date
Cost: USD 1 million per MW

The Centre for Wind Energy Technology, an

autonomous R&D institution under MNRE, has
identified and approved 40 sites for wind energy
deployment with annual average wind power
density greater than 200 W/sq. m. at a 50 m
height in Gujarat
Over a period of last more than 25 years more
than 65 sites have been monitored for the wind
speed and wind power density, and over 50 sites
have been found feasible for harnessing wind
power

Source: TERI, Gujarat Energy Development Agency

Wind Power Density in Gujarat, W/m2

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
Wind Power capacity (in MW)
4000
3000
2000
1000
0

CAGR: 48%
271 555

1,171 1,485

1,782 2,095

2,885 3010

In November 2008 Gujarat won the Best Wind

Power Developer State (Percentage Increase)
Award 2008 for achieving the maximum capacity
additions during the two consequent year FY07
and FY 08 alone the coast of Saurashtra

WIND POWER POLICY AND GERC REGULATORY FEATURES

Eligible Unit:
Sale:
Tariff:
Open Access / 3rd party sale:
Wheeling:
Land:

Source: GEDA, GERC0

Any company/corporate body/association/body of individuals

Fixed tariff
INR 4.15 kWh for 25 years
Allowed banking
At 66 kV: Normal charges as applicable to open access
Below 66 kV: Normal charges as applicable to open access + 10% of generated fed to the grid
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
highest direct solar insolation of 6.4 kWh/sq. m. / day
throughout the year
The sites do not require sun tracing

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

GHI

DNI

Jamnagar

2,216

2,697

Junagadh

2,212

2,661

Navsari

2,110

2,427

Patan

1,883

2,008

Source: TERI, Gujarat Energy Development Agency

RENEWABLE ENERGY SECTOR GUJARAT SCENARIO: SOLAR POWER

77 plants totaling to about 891 MW capacity were commissioned in Gujarat up to March 2014
GUJARATS LARGEST SOLAR POWER PLANTS
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 Asias First Solar Park
Village Charanka, Ta:Santalpur, Patan 2024 hectares of
wasteland
For setting up 3000MW Generation & Manufacturing
Facilities
258 MW Capacity Power Plants have been installed
GPCL is the Project Managers

Plant
Adani Enterprises Ltd.

SOLAR POWER POLICY :

STATE POLICY IN THE COUNTRY

Tata Power Company Ltd.

Jamnagar

25

Alex Astral Power Pvt. Ltd.

Patan

25

Roha Dyechem Pvt. Ltd.

Patan

25

Patan

25

Patan

20

Patan

20

Porbandar

20

Ltd.
Kiran Energy Solar Power Pvt.

CAPACITY, MW

Phase I allotment

57

406.5

PLG Photovoltaic

Phase II allotment

27

562.0

Hiraco Renewable Energy

968.5

Pvt. Ltd.

Total

84

Source: TERI, Gujarat Energy Development Agency

40
25

DEVELOPERS
(NOS.)

PHASE

Kachchh

MW

Sanland Real Estate Pvt. Ltd. Banaskantha

Sun Edison Energy India Pvt.

1ST

District

Ltd.

RENEWABLE ENERGY SECTOR GUJARAT SCENARIO: SOLAR POWER - TARIFF

Summary of solar Tariffs, Rs./kWh (projects commissioned Jan 29, 2012 - March 31, 2015)
APR 1, 2013
MAR 31, 2014

APR 1, 2014
MAR 31, 2015

9.70

9.02

8.39

First 12 years

10.52

9.64

8.82

Subsequent 13 years

7.00

7.00

7.00

10.92

10.15

9.44

First 12 years

11.97

10.96

10.03

Subsequent 13 years

7.50

7.50

7.50

10.82

10.07

12.18

11.33

PERIOD

JAN 29, 2012 MAR 31, 2012

Megawatt - scale PV projects availing accelerated depreciation

Levelized tariff for 25 years

Megawatt - scale PV projects not availing accelerated depreciation

Levelized tariff for 25 years

Kilowatt - scale PV projects availing accelerated depreciation

Levelized tariff for 25 years

11.64

Kilowatt - scale PV projects availing accelerated depreciation

Levelized tariff for 25 years

13.10

LEVELIZED TARIFF FOR SOLAR THERMAL PROJECTS

With accelerated depreciation benefit

11.83 per kWh for 25 years

Without accelerated depreciation benefit

13.23 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 Honble APTEL vide Judgment dated 17.04.2013 in
Appeal No. 75 of 2012.

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
Vadodara

Crop Residue
Forest Residue

13.23 MW waste-toenergy power

generation projects

BIO-ENERGY PROGRAMMES
Institutional biogas plants 9835 m3/day capacity in various institutions across
the state
Indias first and Asias biggest power plant based on biomass gasification has
recently been commissioned at village Kothara in the border district of Kutch,
Gujarat. The project is expected to generate 500 KW electricity from its two
generating units
Source: TERI, Gujarat Energy Development Agency

DISTRICTS WITH THE HIGHEST

BIOMASS POTENTIAL, MW
Rajkot
Jamnagar
Bhavnagar
Junagadh
Surendranagar
Amreli

CROP
228
203
192
168
142
137

Junagadh
The dangs
Sabarkantha
Valsad
Dahod
Banaskantha

FOREST
18
18
16
15
12
11

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

10 KW capacity wind-solar hybrid system

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

4,000 KW SPV-based grid-connected power

generating rooftop systems at government
buildings
240 solar rooftop systems of 1 KW each
commissioned at godowns
6 solar hybrid systems of 5 KW each
commissioned on government buildings
Source: MNRE, GEDA

Ministry of New and Renewable Energy (MNRE) has

launched a program on Development of Solar Cities on
January 24, 2011
The program assists Urban Local Governments in:

Preparation of a master plan for increasing energy

efficiency and renewable energy supply in the city

Setting-up institutional arrangements for the

implementation of the master plan.

Awareness generation and capacity building

activities.
The program aims at minimum 10% reduction in
projected demand of conventional energy at the end of
five years, which can be achieved through a combination of
energy efficiency measures and enhancing supply from
renewable energy sources.

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
ROLE OF PROJECT DEVELOPER
In this programme the developer is selected through a transparent competitive bidding
process. The selected developer will finance/Install/Own/Operate and maintain PV roof
systems on owners roof tops
The energy generated from this system will be sold to Distribution Company and Distribution
Company will pay duly approved tariff to 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 system
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
Asias 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
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
Processed
applications

GERC/CERC

Tariff
determination

Government
agencies

Tariff
determination

KEY FEATURES
Area: approx. 2,024 Ha
Capacity Installed: 258 MW
No. of developers: 20

Policy
directives

Project
funding

GPCL
Nodal Agency for Solar
Park development
Infrastructure
development charge

Shared with solar developer,

manufacture, R&D setup

Source: Gujarat Energy Development Agency, Gujarat Power Corporation Ltd

Transmission
infrastructure

GETCO

Water
availability

SSNNL

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
AWARD MERITS:
Gave a discrete definition of solar park in
the Indian context
Worlds largest multi-developer and multibeneficiary solar park with targeted 500 MW
Solar 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

training to the villages in various fields
Source: Gujarat Energy Development Agency, Gujarat Power Corporation Ltd

RENEWABLE ENERGY SECTORGUJARAT SCENARIO:

INDIAS FIRST CANAL TOP SOLAR POWER PROJECT
Gujarat has initiated the worlds 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
the local electricity grid and utilized by nearby towns and villages

TECHNICAL DETAIL

Projected energy production: 1.6 million

units/year/MW

Irradiation: 4.6 6.4 kWh/m2

Installed capacity: 1 MWp

Technology: polycrystalline solar modules, 280 Wp

Number of modules: 3616

Canal length used: 750 m

Power evacuation system: 11 KV

Source: GSECL

INNOVATIVE IDEAS

Cover the canal with Solar Panels to

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
less maintenance cost

Pilot Project is for 1 MW

RENEWABLE ENERGY SECTOR GUJARAT SCENARIO: BIO ENERGY

Various Bio energy projects have been implemented in Gujarat. Few of them are enlisted below:
0.95 MW biogas based power project at Sayaji Industries, Kathwada, 2009-10
Sayaji Industries, Kathwada is dealing with maize starch products. As a result of maize corn milling,
grinding and processing, about 14000 nm3 biogas is generated. Earlier biogas was being used in the
coal fired boilers. Under the MNRE programme of energy recovery from industrial & commercial
wastes, the biogas based power project was taken up. The project commissioned in April'2009 and
has been running successfully at about 80% PLF since 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

0.833 MWeq.(10000 nm3/day) capacity maize starch industry liquid waste based
biomethanation plant at Sayaji Industries Ltd., Kathwada, 2010-11
Sayaji Industries, Kathwada increased its maize grinding capacity from 325 MT/day to 550 MT/day, the
effluent also increased with higher COD value of about 16000 to 20000 KGs COD. One 10000 nm3/day
capacity biomethanation 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 SECTOR

GUJARAT SCENARIO: LARGE RE PLAYERS IN GUJARAT

Solar power
developers

Solar PV
manufac-turers

Wind power
developers

Wind equipment
manufac-turers

Sonki Solar India

1.5 GUJARAT SCENARIO: VISION 2020 AND INVESTMENT OPPORTUNITIES

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
12th five year Plan period

Source /
Technology

Installed
capacity (MW)
as on May 2012

FY13

FY14

FY15

FY16

FY17

Capacity
additions 12th
Plan

Wind

3,352

326

377

456

498

508

2,165

SHP

15

BIO

41.2

35

45

55

60

44

239

Solar

891

209

331

331

441

560

1,872

572

758

848

1,002

1,117

4,297

WTE
Total

4,291.2

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

RENEWABLE ENERGY SECTOR GUJARAT SCENARIO: 2020

Fund requirement
Non- Conventional power projects
under private sector

PROJECT

FUND REQUIRED
(USD BILLION)

Wind

2.65

SHP

0.02

Bio Mass

0.24

Solar

3.82

WTE

0.01

Total

6.74

Development of distributed
gas based power combined
with non conventional
sources

Tidal and geothermal

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

Development of windsolar hybrid

installations and
biomass projects
Development of large
scale solar parks and
canal-top solar projects

Offshore wind
projects development

Source: Energy & Petrochemicals Department, Government of Gujarat

Development of solar
manufacturing capacities

Development of projects
under solar rooftop
programme (Bhavnagar,
Surat, Rajkot, Mehsana)

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.
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
consultation with Central Government

DISTRICTS WITH THE HIGHEST HYBRID POTENTIAL, MW

WIND SOLAR HYBRID INSTALLATION, MW
Rajkot
Kachchh
Jamnagar
Surendranagar
Amreli
Bhavnagar
Sabarkantha
Banaskantha
Junagadh

23,182
16,151
8,707
6,625
3,585
2,514
2,303
2,044
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
TIDAL POTENTIAL IN GUJARAT, MW

GUJARAT GEOTHERMAL POTENTIAL IS CONCENTRATED IN CAMBAY

Tidal potential

POTENTIAL SITE

Source: TERI, Gujarat Energy Development Agency

TIDAL ENERGY POTENTIAL,

MW

Gulf of Kachchh

1200

Gulf of Khambat

7000

Total

8200

1.6 GOVERNMENT INITIATIVES AND INTERVENTIONS

Renewable Energy Sector Government Initiatives &

Interventions
A robust regulatory framework has been put in place to realize Indias 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 SERCs
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
years.
Source: Ministry of Power, Government of India; Ministry of New and Renewable Energy, Government of India

Renewable Energy Sector

Government 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.
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

A. 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
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
C. Support projects

Grid: 1,100
MW
Off-grid: 200
MW

Grid: 4-10,000
MW

Grid: 20,000
MW

Off-grid: 1000
MW

Off-grid: 2000
MW

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

Centre of excellence and incubation

Demonstration and pilot projects
100MW parabolic trough based

100-150MW solar hybrid plant

Renewable Energy Sector

Government Initiatives & Interventions- Support mechanism for RE in India
Indian Experience

Policy Instrument

Being used for all active RE technologies. introduced by most states

Feed in Tariffs/ Preferential Tariffs
except J&K, Bihar, Jharkhand, Odisha and the North Eastern states.
Preferred by developers because it enhances project bankability

Accelerated Depreciation (AD)

Generation Based Incentives (GBI)

Renewable Purchase Obligation
(RPO)
Clean Energy Cess

Renewable Energy Certificates

(RECs)

Incentives for Developers

Financial as well as economic costs and
benefits of RE are not yet factored in FIT
Technology upgradation
could lead to better returns as it is not
considered in FIT

Acknowledged as the key instrument for success of wind industry in

India
Most wind installations in India have been developed under AD.
Recently introduced to shift investment focus from capacity addition
to electricity generation move from capital subsidies (AD) to
generation based incentive.
RPOs are mandated by the Electricity Act 2003 and National Tariff

Policy
RPOs adopted by 23 SERCs

The government plans to develop these funds for development of

renewable energy

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
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

The sector has attained scale &

commercial viability on its own.
Presents avenues for additional
guaranteed revenues for project
developers
Readymade market for renewable
power sources

Helps renewable power developers to

trade REC's and realise the value of
power
Additional cushion for developers to
increase their project returns and RoE

Carbon Trading

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 of

developer

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

Source: State RE Policies

Renewable Energy Sector

Government Initiatives & Interventions
Renewable Energy Certificates

Overview

Eligibility

A renewable generating entity that has:

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

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 year
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

Renewable Purchase Obligations

In 2007, the Government released draft versions of a new policy which seeks to increase the target to 20 percent by 2020
Several State Regulators (SERC) have translated this national target into Renewable Purchase Obligations (RPO)
RPOs mandate the minimum quantum of electricity which distribution utilities in the States have to source from renewable
sources (failing which, a penalty may be imposed on them)
On a pan-Indian basis, the total RPO commitment by the 12 States that have implemented it constitutes ~5.33 percent of
the total power consumption in 2007-08
The RPO system passes on the onus of increasing renewable energy consumption to the State DISCOMS effectively the cost
of acquiring this renewable electricity is passed onto the consumer through higher power tariffs
Source: Ministry of New and Renewable Energy, Government of India

FOR ADDITIONAL INFORMATION CONNECT US @

Energy and Petrochemicals Deapartment

http://www.guj-epd.gov.in

Gujarat Energy Development Agency

http://www.geda.gujarat.gov.in

Gujarat Power Corporation Ltd

http://www.gpclindia.com

Gujarat Energy Research & Management Institute

http://www.germi.org

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