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Fi di
Findings from
f a study
d by
b Prayag
P Consulting
C li
March 2010
Outline
Takeaways
Global energy
P t ti l off renewable
Potential bl energy in
i India
I di
• Wind
• Solar
• Small Hydro
• Biomass
Takeaways
• India’s sustained efforts in the past two decades are now bearing
f i as renewable
fruit bl energy and d iits b
benefits
fi get acceptedd and
d
acknowledged
– Emphasis on decentralized energy
• G id i t
Grid-interactive
ti renewable bl power projects
j t b based
d on wind
i d power,
biomass, small hydro and solar are mainly private investment driven,
with favorable tariff policy regimes established by State Electricity
g
Regulatoryy Commissions ((SERC))
– Almost all-renewable power capacity addition during the year has come through
this route
• India has more mature capabilities in Wind Energy and Small Hydro,
while Solar technology is still in the nascent stage
• The State Electricity Regulatory Commission (SERC) mandated
Renewable Purchase Obligation (RPO), an obligation on States that
renewable energy should form some minimum part of the total
power consumption
World power report
• The maximum power consumed worldwide at any given moment is about
12.5 trillion watts (terawatts, or TW), according to the U.S. Energy
Information Administration
– Much of it is powered through coal and other sources
Did you know? Germany and Spain rank first and second, respectively, in world wind
power production
Energy Scenario in India
The government is launching numerous initiatives and policies to increase the generation
of renewable energy
Generation-based incentives
• Wind
– Indian government has launched a Generation-based Incentive of INR 0.5/ kWh
over feed-in tariffs for 4GW of new-build
– It expects to come online between mid-December 2009 and 31 March 2012
– Will allow the investors,
investors apart from getting the tariff determined by the state
regulatory commissions, also get an incentive of 50 paise per unit of electricity
for a period of 10 years, provided they do not claim the benefit of accelerated
depreciation
• Solar
– Financial assistance of Rs 12 per KW hour in case of solar photovoltaic and Rs
10 per KW hour in case of solar thermal power fed to the electricity grid from a
grid interactive solar power plant of a capacity of 1 MWp and above
– This incentive will be worked out taking into account the tariff provided by the
utility to the solar power producer
GBIs are offered by the Government to various forms of renewables over the years to
give a boost
WIND ENERGY
Wind energy in India
• Wind
Wi d electric
l t i generators
t off unit
it sizes
i b
between
t 225 KW and
d11.65
65 MW h
have
been deployed across the country
Did you know? India is now the fifth largest wind power producer in the world, after USA,
Germany, Spain and China
Technology Development and Manufacturing
Base
Wind Electric Generators are
manufactured in the country by
manufacturers through
• Joint ventures or under licensed
production The current annual production capacity of
• Subsidiaries of foreign companies under domestic wind turbines is about 3000 MW
licensed production
• Indian companies with their own
t h l
technology
Export:
• Indigenously produced wind turbines valued at about US$ 600 million were exported
to Australia, Brazil, Portugal, Spain, Turkey and USA during the year
• Wind turbines components such as nacelle, Hub, Bolt box assembly, etc of US$ 50
million were exported to USA
• Wind turbine blades valued at US$ 5.4 million were exported to China and Japan
Market structure in India
with in-house
Loc
Prod
production
Source: Emerging Energy Research, Wind Turbine Supply Chain Strategies, 2009-2020
SOLAR PV
Solar energy in India – bright prospects
• India is home to one of the most abundant solar resources in the world, with 2.97 million square
kilometers of tropical and subtropical land and an average of 250-300 clear sunny days a year
• Nascent segment to explore
– Solar-based
Solar based energy accounts for only 0
0.5%
5% of installed base with a grid
grid-interactive
interactive (grid
(grid-hybrid)
hybrid)
solar power totaling only 2.12 MW from just 33 installations
• Government continuing with the demonstration programmes on grid connected solar photovoltaic
(SPV) power generation
Did you know? The world now produces about 14 GW of solar power, about half of it
added last year
Opportunity for manufacturers
Few players in the market
Current scenario:
Nearly 75 per cent of Tata BP Solar sales come from exports largely to Europe and the U.S
Growth plans include expansion of its module manufacturing facility and thrust on domestic sales
The latest company that has evinced interest in setting up a unit in the Fab City
C is BHEL, which will be
investing Rs 500 crore
• Much of the activity seems to be focused currently on manufacturing — with the manufacturers
th
themselves
l possibly
ibl offering
ff i d design,
i iinstallation
t ll ti and
d monitoring
it i services
i as wellll
• Expected to change in favor of a growing service industry
SMALL HYDRO POWER
Small hydro energy in India
5,415 potential So far 674 small
sites with an hydropower
aggregate capacity projects
of 14,292 MW aggregating to
have been about 22,430
430 MW
identified have been set up
• Out of this in various parts of
potential about the country
Most of the 50% lies in • Out of this174
potential
t ti l iis iin The viability
Th i bilit off Arunachal private sector
Himalayan States these projects Pradesh, SHP projects
as river-based improves with Himachal with an
projects and in increase in the Pradesh, Jammu aggregate
other States on station capacity & Kashmir and capacity of about
irrigation canals Uttarakhand. 887 MW have
Chhattisgarh, been set up
Karnataka, mainly in Andhra
Kerala and Pradesh,
Maharashtra Himachal
Pradesh,
K
Karnataka,
t k
Maharashtra,
Punjab and
Uttarakhand
• http://mnes.nic.in/
p
• http://www.cwet.tn.nic.in/
• http://www.ireda.in/
• htt // h
http://ahec.org.in/
i /
• http://pibmumbai.gov.in/scripts/detail.asp?releaseI
d=E2010PR88
• http://www.indiacore.com/renewable-energy.html
• http://www.business-
standard com/india/news/government launches
standard.com/india/news/government-launches-
incentive-scheme-for-wind-energy-
projects/379955/
Thank you