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Current power mix is fossil fuel dependent and has India’s Installed Generating Capacity
following negatives Total = 152,000 MW
Price volatility/ subsidy dependent
Energy security
Impact on environment
Long gestation period
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India Faces Significant Energy Challenges in
Achieving Its Development Goals Over the Next 20 Years
Meeting
Meeting Rising
Rising Strengthening
Strengthening Electrifying
Electrifying
Power
Power Demand
Demand Energy
Energy Security
Security the
the Masses
Masses
•• Historically
Historically there
there has
has •• Traditional
Traditional thermal
thermal •• 42%
42% of
of the
the population
population
been
been aa 10GW
10GW power
power plants
plants supply over
supply over 60%60% has
has no access to
no access to
shortage
shortage perper annum,
annum, of
of the
the nation’s
nation’s current
current electricity
electricity (90
(90 million
million
with
with aa 10.5%
10.5% peak
peak time
time power
power households)
households)
electricity shortage
electricity shortage •• India
India imports
imports over
over 65%65% •• Most
Most traditional
traditional thermal
thermal
•• Over
Over the
the next
next 55 years,
years, of its current petroleum
of its current petroleum and
and hydro plants located
hydro plants located
per
per capita
capita consumption
consumption and
and coal
coal requirements,
requirements, far
far from
from distributed
distributed
is
is expected
expected toto jump
jump expected
expected to grow
to grow asas populations,
populations, contributing
contributing
from 580kWh
from 580kWh to to domestic
domestic coal reserves
coal reserves to
to high
high transmission
transmission
1000kWh,
1000kWh, driving
driving total
total diminish
diminish and
and distribution
distribution losses
losses
shortage above
shortage above 25GW 25GW of
of over 27%
over 27%
•• 25GW
25GW of of captive
captive diesel
diesel
generation
generation has sprung up
has sprung up
to
to support
support industrial
industrial
growth
growth –– 90+%
90+% of of fuel
fuel
imported
imported
Clean,
Clean, locally-sourced
locally-sourced renewable
renewable energy
energy will
will be
be essential
essential ifif India
India is
is to
to
achieve
achieve targeted
targeted long-term
long-term GDP
GDP growth
growth ofof 9-10%
9-10% p.a
p.a
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Source: Ministry of Power, President of India Energy Review
The Government of India Has Recognized That Renewable
Energy Must Play a Critical Role in Addressing the Energy Gap
President
President of
of India
India Energy
Energy Review:
Review:
Demand
Demand Increase
Increase Will
Will Drive
Drive Greater
Greater
Solar
Emphasis
Emphasis on
on Renewable
Renewable Energy
Energy
400,000MW
Solar 14%
Renewables 10%
Hydro 20%
Nuclear 6%
Hydro 25%
Thermal 50%
Nuclear 3% • “With both a good solar resource and a large
Thermal consumer base in the same place, India’s long-
Diesel 1%
Gas 10%
term solar potential is perhaps unparalleled” —
Coal 52% Goldman Sachs
• With high solar insolation and abundant cheap
land, solar can be deployed across India to power
distributed populations
Geothermal
1,600
Other renewables
Solar thermal
1,400 (heat only)
Primary Energy Use (EJ/a)
1,200
Solar power
(photovoltaics and
1,000 solar thermal
generation)
800
Wind
600 Biomass
(advanced)
Biomass
400 (traditional)
Hydroelectricity
Nuclear Power
200 Gas
Coal
Oil
0
2000 2010 2020 2030 2040 2050 2100
PHASE I PHASE II
(Govt Policy (Post- Govt Policy)
very important)
7%
6%
5%
4%
Convergence /
India – Estimated price Peak Grid Parity
of peak electricity today:
Rs. 6.50/KWh
Post 2014, India can substitute expensive sources such as diesel with solar to meet growing peak power demand
Astonfield estimates that base load grid parity can be achieved by 2020-23* - beyond that point, abundantly
available domestic solar power will be cheaper than imported coal, positioning India to be energy independent
* Assumes that conventional power tariff escalates at roughly 5-7% per annum
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Source: Stephen O’Rourke/Deutsche Bank / Astonfield Analysis
Regulatory and Policy Developments in Recent Years Have
Increasingly Supported the Growth of a Solar Sector in India
India
India has
has seen
seen aa movement
movement from
from dispersed,
dispersed,
small-scale
small-scale programs
programs toto aa cohesive,
cohesive, large-scale
large-scale national
national platform
platform
6
Jawaharlal Nehru National Solar Mission
– Existing projects under development meeting specified criteria eligible for migration
under JNNSM , balance capacity to be allocated on “Expression of Interest” basis
• Draft EOI guidelines limit capacity allocation to 5 MW per developer for PV : benefits of
economies of scale might be hampered
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Jawaharlal Nehru National Solar Mission : Challenges for
Developer
– Economies of scale
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JNNSM : structured to promote project viability and rapid
execution
• Work with Discoms to standardize bankable PPAs for solar projects <25MW
The states that have already gone through this process or that can
complete it by Q310 will establish early leadership of solar sector
10
Key issues impeding the growth of solar program
11
To realize potential of solar power, India should have
capabilities across PV Value chain
Glass that is used as substrate Thin-Film manufacturing line where deposition Schematic diagram of a CdTe module
and integration take place
India can be a global solar PV manufacturer , though presence across the value
chain is imperative
12
Robust solar policy and right regulatory framework required to
stimulate demand for solar power generation
Stimulating generation lays the foundation for long-term viability of the sector
13
Enabling regulatory framework is a must at state level based on
CERC notified norms
Solar Program
Development Required: Why this is necessary:
14
With Government Concessions Across the Country, Astonfield
is the Largest Diversified Renewable Energy Company in India
Haryana
3MW
• Concessions in hand in 7
Solar states and active business
development across 13
Rajasthan Bihar states
30MW Solar 300MW Solar
100MW Biomass
• 20MW of solar and 10MW of
biomass in execution in 2010
Gujarat
200MW Solar
• Total of 803MW of solar and
110MW of biomass currently
West Bengal in the MOU/Allocation stage
2x 5MW Solar
10MW • Close to 2,000MW of pre-MOU
Biomass
opportunities currently in the
Andhra Pradesh
250MW Solar public sector pipeline
Karnataka
10MW Solar • Three offices across India and
Astonfield Office global HQ in New York City
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THANK YOU
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