Professional Documents
Culture Documents
SECTOR PROFILE
Table of Contents
1
01
INDIA - PREFERRED INVESTMENT DESTINATION
15.0%
11th largest importer in the world Construction
7%
02
ADVANTAGE INDIA
Land of abundant
World's largest
natural
nat resources
democracy with
dem
and
a nd diverse
1.2 billion people
climatic conditions
Enabling business
environment
en Str
Strong Market
with greater global
wit Fu
Fundamentals
participation
Access to
Impetus on
technology as
tec
Infrastructure
Infra
a result of the
Development
D
IT revolution
Progressive
simplification and Competitively
rationalization
rati of priced
pric skilled
direct and indirect labour
tax structures
03
GUJARAT - PREFERRED INVESTMENT DESTINATION IN INDIA
2
04
GUJARAT HAS BEEN RANKED 1ST AS PER THE “ECONOMIC FREEDOM RANKINGS
FOR THE STATES OF INDIA, 2012” REPORT
3
06
RENEWABLE ENERGY AND TECHNOLOGIES
GLOBAL SCENARIO
India
3
3.1 07
GLOBAL RENEWABLES
Global Annual
• Solar energy alone could meet existing
Energy Consumption global energy needs 10,000 times over
Solar (Continents) Coal
Wind Gas
Biomass Oil
Geothermal Nuclear
Ocean & Wave Primary Energy
Hydro Consumption
quadrillion Btu 0
1990 2000 2008 2015 2020 2025 2030 2035
OECD Non-OECD
Source: REN21., 12th PwC Annual Global Power & Utilities Survey
08
DRIVERS OF GLOBAL RE MARKET DEVELOPMENT
Source: REN21., 12th PwC Annual Global Power & Utilities Survey
09
RENEWABLE ENERGY AND TECHNOLOGIES
INDIAN SCENARIO
10
3.2
RENEWABLE ENERGY – GROWING SHARE IN FUEL MIX
4,780 , 2%
0.3% 2%
38,990 Wind Power
, 20% 5% 9%
Thermal Small Hydro Power
Nuclear Biomass Power
Hydro 24,503 14%
, 12% Bagasse Cogeneration
RES Waste to Power
131,603 70%
, 66% Solar Power (SPV)
• India has an installed renewable capacity of 24,500 MW (excluding large hydro) as on March 2012
• Renewable energy is 12% in total capacity and 4% of energy generation.
• By 2050 69% of energy generation will be from renewable energy (Greenpeace vision)
11
INDIA’ S RENEWABLE ENERGY OPTIONS
12
POLICIES AND REGULATIONS
National • Further provided for progressive increase in generation of electricity from renewable
Electricity sources and supported purchases by distribution companies through competitive bidding
Policy 2005 process
• Outlined existing and future policies and programs addressing climate mitigation and
National Action adaptation
Plan on Climate
Change 2008 • NAPCC has advised that starting 2009-10, RPOs be set at 5% of total grid purchase, and be
increased by 1% each year for 10 years.
13
POLICIES AND REGULATIONS – NATIONAL SOLAR MISSION
14
SUPPORT MECHANISM FOR RENEWABLE POWER IN INDIA
Feed in Tariffs/ • Being used for all active RE technologies. introduced by most states • Financial as well as economic costs and
Preferential Tariffs except J&K, Bihar, Jharkhand, Odisha and the North Eastern states. benefits of RE are not yet factored in FIT
• Preferred by developers because it enhances project bankability • Technology upgradation could lead to better
returns as it is not considered in FIT
Accelerated • Acknowledged as the key instrument for success of wind industry • The sector has attained scale & commercial
Depreciation (AD) in India viability on its own.
• Most wind installations in India have been developed under AD.
Generation Based • Recently introduced to shift investment focus from capacity addition • Presents avenues for additional guaranteed
Incentives (GBI) to electricity generation – move from capital subsidies (AD) to revenues for project developers
generation based incentive.
Renewable • RPOs are mandated by the Electricity Act 2003 and National Tariff Policy • Readymade market for renewable
Purchase • RPOs adopted by 23 SERCs power sources
Obligation (RPO)
Clean Energy • The government plans to develop these funds for development of
Cess renewable energy
Renewable • MNRE and CERC have developed a REC regime which has kicked • Helps renewable power developers
Energy Certificates off recently to trade RECs and realise the value
(RECs) • Serves as a mechanism to fulfill the RPO obligations thereby reducing of power
penalties
Carbon • India has largest number of registered and pipeline CDM projects • Additional cushion for developers
Trading in the world. to increase their project returns
• Helped to push the RE industry by making projects more financially and RoE
attractive
Tax Incentives - • Tax exemption instruments such as exemptions or reductions on excise • Tax Incentives help improving RoE of
Exemptions on and customs duty have been introduced developer
Capital Investments
and Generation
State RE • Examples of state with policies for RE include Karnataka, Punjab, Madhya • The number of clearances required for
Policies Pradesh, Gujarat, Himachal Pradesh, Uttarakhand etc renewable projects has come down
15
RENEWABLE ENERGY CERTIFICATE
Information related to accredited RE plants for registered entities sent to REC registry
5 6
Issuance of REC
RE Generator Central REC
REC exchange
Registry (NLDC)
3 Information
related to RE
Sale of electricity at par with
generation
conventional power Auditing Panel
4
16
RENEWABLE PURCHASE OBLIGATIONS
Chhattisgarh 5.25%
17
CLEAN ENERGY SECTOR IN INDIA-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-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 Perspectives
• 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 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
18
RENEWABLE ENERGY AND TECHNOLOGIES
GUJARAT SCENARIO
3.3 19
GUJARAT – RENEWABLE ENERGY POWERHOUSE
Source: EPD
20
WIND POWER IN GUJARAT
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.
21
WIND POWER IN GUJARAT
3500
2,885 In November 2008 Gujarat won the Best
3000 CAGR
2500 48% Wind Power Developer State (Percentage
2000
1500 Increase) Award 2008 for achieving the
1000
271
maximum capacity additions during
500
0 the two consequent year FY07 and
Up to
2005-06
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 FY 08 alone the coast of Saurashtra
22
SOLAR POWER IN GUJARAT
23
SOLAR POWER IN GUJARAT
654.81 MW of solar power capacities commissioned Gujarat has taken the lead over other states in renewable
energy initiatives, particularly in solar power generation.
by 64 developers in the state of Gujarat It is the first state in India to achieve RPO target
24
SOLAR POWER IN GUJARAT
25
SOLAR POWER IN GUJARAT
Summary of solar Tariffs, Rs./kWh
(projects commissioned Jan 29, 2012 - March 31, 2015)
Source: GERC Order No. 1 of 2012: Determination of tariff for Procurement by the Distribution Licensees and others
from Solar Energy Projects; 27 Jan. 2012
26
BIOENERGY IN GUJARAT
Crop Residue
Forest Residue
Bioenergy power generation
27
BIOENERGY IN GUJARAT
Tariff for Biomass based power projects to be commissioned in the state of Gujarat
during the control period (June 2010 – March 2013), Rs/kWh
Source: GERC Order No. 5 of 2010: Determination of tariff for Procurement of Power by Distribution Licensees from
Biomass based Power Generator and Other Commercial Issues, 17 May 2010
GERC Order No. 4 of 2010:Determination of tariff for Procurement of Power by Distribution Licensees from Bagasse
based co-generation Power Plants and Other Commercial Issues, 31 May 2010
28
NEW ENERGY IN GUJARAT
The state endeavors to become the 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 Gujarat has the 1,600 km coast line
hybrid installations is about and good wind velocity offshore.
74,000 MW with the largest potential The total offshore wind
in Rajkot and Kachchh potential is about 4,000 MW
29
NEW ENERGY IN GUJARAT
30
RENEWABLE ENERGY AND TECHNOLOGIES
SUCCESS STORIES IN GUJARAT
The program assists Urban Local Governments in: 10 KW capacity wind-solar hybrid system
• Preparation of a master plan for increasing energy commissioned at Udyog Bhavan, Gandhinagar
efficiency and renewable energy supply in the city
• Setting-up institutional arrangements for the 19 solar rooftop systems of 10 KW each
implementation of the master plan. commissioned at government buildings
• Awareness generation and capacity building in Sachivalaya, Gandhinagar
activities.
1,240 KW SPV-based grid-connected
power generating rooftop systems at
The program aims at minimum 10% reduction in government buildings
projected demand of conventional energy at the
end of five years, which can be achieved through a
combination of energy efficiency measures and 240 solar rooftop systems of 1 KW each
enhancing supply from renewable energy sources commissioned at godowns
32
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
To be implemented in
• Surat
• Rajkot
• Mehsana
• Bhavnagar
• Vadodara
• 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 (SPV) for solar power
• 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 the 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 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
Source: GPCL
33
SOLAR PARK – FLAGSHIP PROJECT OF GUJARAT
34
GUJARAT SOLAR PARK – CII’S MOST INNOVATIVE ENVIRONMENT PROJECT AWARD
Award merits:
• Given a discrete definition of “solar park”
in the Indian context
• World’s largest multi- developer and
multi-beneficiary 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 Charanka village
• Ambulance service
• State-of-the-art training facility to provide
training to the villages in various fields
35
INDIA’S FIRST CANAL-TOP SOLAR POWER PROJECT
• Projected energy production: 1.5 million Cover the canal with Solar Panels to
units/year/MW
• Save Land @ 5 acre per MW
• Irradiation: 4.6 – 6.4 kWh/m2
• Minimize evaporation from canal (9 million liters
• Installed capacity: 1 MWp water saving per MW per year)
• Technology: polycrystalline solar modules, 280 Wp • Produce eco-friendly power
• Number of modules: 3616 • Shadowing effect of panel results in reduced
photosynthesis and less algae growth leading to
• Canal length used: 750 m
less maintenance cost
• Power evacuation system: 11 KV
Source: GSECL
36
BIOENERGY
12000 nm3 biogas per day (1 MWeq.) maize starch industry liquid waste based biomethanation
plant by Gujarat Ambuja Exports Ltd., at Dalpur , Dist: Sabarkantha 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.
An up flow anaerobic sludge blanket technology reactor (UASB) having total bio-gas generation capacity of
4800 nm3/day has been installed at M/s Anil Starch Products Ltd. under waste-to-energy project related interest
subsidy scheme of MNRE for WTE projects during financial year 2000-2001
This project was commissioned during FY98 under MNRE capital investment subsidy scheme on WTE projects by
Kanoria Chemicals Industries Ltd.
Source: GEDA
37
GUJARAT – PREFERRED DESTINATION FOR INVESTMENTS IN RENEWABLES
Renewable Energy Sector received a major boost at Vibrant Gujarat Summit in 2009 and 2011
Special Investment Packages announced for Solar and Wind Power Generation
2011
Sector MoU signed Capacity Amount Employment
(Nos) (MW) (USD billion) Generation
Potential (Nos)
2009
• Highest number of MoUs signed in the renewable energy sector (32% of total number of MoUs)
• Total capital investment of USD 22 billion
• 70 MoUs signed for solar and wind power projects for 10,321 MWe.
• Expected employment generation is 45,000 over the next five years
38
LARGE RENEWABLE ENERGY PLAYERS IN GUJARAT
TATA BP Solar India Ltd. JJ PV Solar Pvt. Limited Euro Solar Power Pvt. Ltd.
Wind equipment
manufacturers
39
RENEWABLE ENERGY AND TECHNOLOGIES
SCENARIO IN GUJARAT BY 2020 AND INVESTMENT OPPORTUNITIES
Source: TERI,
40
GEDA,GEDA
iNDEXTb
3.5
RENEWABLE ENERGY IN GUJARAT BY 2020
41
INVESTMENT OPPORTUNITIES
Development of
distributed gas
based power combined
with non
conventional sources
Fund requirement
Non- Conventional power Tidal and geothermal Development of
projects under private sector projects first at a pilot wind-solar hybrid
scale, and then at a installations and
commercial scales biomass projects
Development of
projects under solar
rooftop programme
(Bhavnagar, Surat,
Rajkot, Mehsana)
42
ADVANTAGE GUJARAT
44
GUJARAT – INDIA’S ECONOMIC POWERHOUSE
45
GUJARAT – ROBUST INFRASTRUCTURE
46
GUJARAT – STRONG URBAN, SOCIAL AND EDUCATIONAL INFRASTRUCTURE
47
GUJARAT – LAND OF INNOVATIVE HUMAN CAPITAL
48
GUJARAT – NEW PARADIGM FOR INDUSTRIAL GROWTH
The current phase – involving Integrated development of large areas like SIRs,
PCPIR and DMIC – is poised to transform the industrial scenario in the state
• Chemical
• Textile • Delhi Mumbai Industrial Corridor
• Pharma
202 Industrial
• IT / ITeS • GIDC Industrial Estates
Estates
• Electronics • Petroleum, Chemicals and
• Engineering Petrochemicals Investment Region
• Biotech • Knowledge corridor
83 product
clusters • Gems & • Logistics parks
Jewellery • Theme towns
49
GUJARAT - PROACTIVE GOVERNANCE
Source: Socio-Economic Review Gujarat, 2011-12, Department of Economic affairs, March 2009
50
OPPORTUNITIES TO INVEST IN GUJARAT
51
DOING BUSINESS IN GUJARAT
52
5
OVERALL FRAMEWORK FOR DOING BUSINESS
53
TAX FRAMEWORK
54
EXCHANGE CONTROL REGIME
55
FRAMEWORK FOR SETTING UP INDUSTRY IN GUJARAT
56
KEY GOVERNMENT AGENCIES
58
KEY CONTACT PERSONS
59
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Head Office: Block No. 18, 2nd Floor, Udyog Bhavan, GH-4, Sector 11, Gandhinagar 382 010 Gujarat, INDIA
Phone: +91-79-23250492/93 Fax: +91-79-23250490
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