Renewable Energy in India:

Status and Future Prospects

“……the time is running out…soon, there will be nothing
left to burn on earth but earth itself…”

By:
Tushar Ajitsaria

1
2
Introduction

3
ENERGY IN INDIA: AN
OVERVIEW
India consumes 3.7% of the world’s commercial
energy making it the 5th largest consumer of energy
globally.
Total installed capacity of 1,44,912 MW.
350 kgoe per capita primary commercial energy
consumption. 22% of world average.
Per capita electricity consumption: 600 kWhr per
year.
About 80% of total rural energy consumption
comes from non-commercial energy.
84% villages electrified. 44% of rural households
electrified.
4
INDIAN POWER SECTOR

5
ENERGY CONSUMPTION TREND

6
ENERGY SCENARIO IN INDIA
Rapid economic development & Increasing population =
High demand for Energy

A sustained 8% GDP growth of India requires an annual

increase of:
a) Commercial energy supply from 3.7% to 6.1%
b) Total primary energy supply from 2.2% to 5.1%

Limited supply of COAL, coupled with its poor quality, low

level of technologies advancements and high environmental
hazards.

Limited domestic reserves and uncertain foreign supply of

hydrocarbons.
7
What is renewable energy?
Renewable Energy – “any sustainable energy source that comes from

natural environment.”

Some Aspects of Renewable Energy

It exists perpetually and in abundant in the environment

Ready to be harnessed, inexhaustible

It is a clean alternative to fossil fuels

“energy that is derived from natural process that are replenished

constantly” -- defined by the RENEWABLE ENERGY WORKING PARTY

of the INTERNATIONAL ENERGY AGENCY

8
WHY RENEWABLE ENERGY
FOR INDIA?
Power shortage
Rising Prices of Oils & Gases
Ecological Hazards
Ample resources and sites available
Abundant sunshine
Government incentive
Increased financing options

9
BENEFITS OF RENEWABLE
ENERGY
Avoid the high costs involved in transmission capex.
Avoid distribution losses – Technical & otherwise
Avoid recurring fuel cost
Boost the rural economy
Encourage self help groups & self dependence
Enable village co-operatives to supply and / or monitor
distribution
Make available much needed energy for basic needs
at the doorstep at affordable prices.

10
INSTALLED CAPACITY FROM
RENEWABLE ENERGY

11
Contribution of Renewable Energy in
World Electricity Production

12
Major Renewable Energy Sources
 Hydro Energy
 Wind Energy
 Solar Energy
 Biomass Energy
 Tidal Energy
 Geothermal Energy
 Wave Energy
 Bio-fuel
 Bagasse
13
CURRENT FOCUS
Promoting rural energy for productive uses and
linked social benefits
Promoting renewable energy for rural electrification
and industrial applications
Enhancing access of the rural poor to affordable and
sustainable energy services
Supporting training and capacity building for
manufacture, local assembly and maintenance of
renewable energy technologies / systems
Organizing global forum activities and providing
strategic expert advice on renewable energy
technologies and energy policy planning and
institutional framework
14
 RENEWABLE ENERGY
DEPLOYMENT
Wind installation (global) 60,000 MW (cumulative)
India’s share (and position) 6270 MW(fourth in the world)

SPV cell production (global) 1,700 MW (in 2005)

India’s share (and position) 37 MW (seventh in the world)

Biogas plants (global) 16 million units (cumulative)

India’s share (and position) 3.9 million family size units (second
in the world)
Solar Thermal (global) 110 million sq.m (cumulative)

India’s share (and position) 1.65 million sq. m (ninth in the

world) 15
INDIA RENEWABLE POWER
POTENTIAL
Renewable Estimated Remarks
Resource Potential
Wind Power 45,000 MW Sites with wind densities of 300 W/m2 or
higher with 9% of assessed area
available for wind farms requiring 12
ha/MW.
Biomass Power 45,000 MW 20 mha of wastelands yielding 10
MT/ha/annum of woody biomass giving
4000 kcal/ kg with system efficiency of
30% and operating at 75% PLF.
Solar Power 50,000 MW Assuming solar energy:
4-6 kWhr/ m2/ day and depending upon
future developments making solar
technology cost-competitive for grid
power applications.
16
Small Hydro 15,000 MW
 COMMERCIAL ENERGY
IMPORTS FOR 8% GDP
Fuel Range of Assumed Range Import
Requirement Domestic of (Percent)
in Production Imports
Scenarios
Oil (Mt) 350–486 35 315–451 90–93
Natural Gas 100–197 100 0-97 0-49
(Mtoe)
Coal (Mtoe) 632-1022 560 72-462 11-45
Total 1351-1702 ---- 387-1,010 29-59
Commercial
Primary
17
Energy
INDIA – AN ATTRACTIVE
RENEWABLE ENERGY MARKET
India has a large potential for energy generation by
utilization of renewable energy source
MNRE has planed a target capacity addition of
10,000 MW during the 11th five year plan
10% of annual power capacity additions to be from
Renewable between 2003-2012
As per the E&Y’s renewable energy index, which
takes into account various factors governing
renewable energy growth in a country, India is
ranked 3rd overall.
High potential for development across various
renewable source
18
 Contents
Solar Panels Wind Turbine Generators

19
Wind Energy

20
CURRENT SCENARIO
4th largest producers of wind energy in the
world.
India’s current installed wind capacity is 8.7 GW
(approx. 10% of the world’s total installed
capacity).
Capacity growth has been strong with a 22%
CAGR over last decade.
Tamil Nadu, Maharashtra & Karnataka are the
leaders in wind capacity.

21
FUTURE POTENTIAL
Cumulative installed capacity is expected to reach 12
GW by 2010.
Generation based subsidy of Rs 0.50per unit
recently announced for 10 years (limit of 5 MW per
developer and 50 MW in aggregate).

22
KEY TREND IN INDIA WIND
ENERGY INDUSTRY

All players in India undertaking a Dual Role – Manufacturing

& Developer
Various Indian Companies are looking to enter the sector
Infrastructure Developers
Electrical Equipment Manufacturers
23
Wind Energy – Present Scenario
Wind Power – Fastest growing renewable
energy source
Globally, it grew at the average rate of 27
% pa over the past 10 years.
While in India it grew at the average rate of
33% over the past 9 years.
Presently, India is ranked 4th in the world
in terms of Wind Energy Installed Capacity

Drivers of growth
Environmental Awareness and
Sustainable Development
Growing Global Energy Demand
Improving Competitiveness of
renewable energy
Security of Supply Concerns
New Markets (e.g. India, China etc)
Carbon Trading
Fiscal Benefits by Govt. (PTC, feed in
tariffs, etc) 24
List of Domestic Wind Electric Generators
(WEG) Suppliers.
1) Suzlon Energy – Suzlon Energy is the biggest Wind Energy Company by far with 4-5
Gigawatts of WTG Capacity per year.
2) RRB Energy – The company has a long history and manufactures Wind Turbines at its
plants in Tamil Nadu.The Company has a capacity of 300 MW which it is expanding to
700.
3) NEPC India – This company was one of the wind energy heavyweights and a stock
market darling earlier.However It no longer remains an active player in the Indian
market .Heavy Debt and Bad Management drove to this company to the ground despite
being a pioneer in the Indian Wind Power Market.
4) Auro Mira Energy – The company is more of a Green Utility rather than a full fledged
WEG manufacturer.It has made plans to manufacture Wind Turbines in the future.It has
attracted funds from Baring and IFC to push forward its Green Plans.
5) Regen Powertech - It is a small scale WTG Supplier like RRB Energy which recently
set up a small 300 MW manufacturing facility in Tamil nadu,Andhra Pradesh
6) WinWind – The company is not exactly a domestic company rather one with a Finnish
Origin.It has recently established a 1000 MW capacity in Venga,Tamil Nadu and also has
a 500 MW plant in Finland as well. The company plans to producer 3 MW Turbines at its
Indian plant as well.
7) Pioneer Wincon – The company is a JV between the Pioneer Group and Wincon of
Denmark.It makes small 250 KW Turbines and is a bit player with 30 years of operations in
India.The Company remains a small static player in the Wind Energy Market of India.

25
Solar Energy

26
Solar Energy - Technology
Solar power is by far the Earth's most available energy source, easily capable of
providing many times the total current energy demand.
Solar power is the conversion of sunlight into electricity.
Two main commercial ways of conversion of sunlight into electricity.
Concentrating Solar Thermal Plant (CSP)
Photovoltaic Plants (PV)
CSP and PV both have their markets. PV is very successful in decentralized
applications, whereas CSP offers advantages for central and large-scale
applications. CSP power plants are the most cost-efficient way to generate and
to store dispatch able CO2-free electricity. However, there is no competition
between both. Rather, they have to be seen as complementary technologies.
PLF of CSP – In the range of 20 % to 30 %
PLF of PV – In the range of 15 % to 20 %
27
INDIAN SOLAR ENERGY
MARKET OVERVIEW
MASSIVE POTENTIAL OF INDIA
Huge potential for Solar Energy development in India
High sunshine days, abundance of sites make soalr energy
an enticing prospect

MARKET IN GROWTH STAGE

Installed manufacturing capacity has grown from a meager
10 MW in 2000 to a total of 335 MW by 2007.
India is now 7th worldwide in Solar PV Cell production
Generation capacities expected to pick up with generation
linked subsidy announced by government

28
KEY TRENDS IN INDIAN SOLAR
INDUSTRY
EXPANSION ACROSS THE BOARD
Various existing players planning Brownfield
expansion.
Huge new Greenfield facilities being planned.
planned
KEY DRIVERS INCLUDE:
Low operating costs
Capital subsidy (20/25%) by government for large
semi-conductor based units (for large investments
above certain limits)
Possibility of Solar Energy development locally.
Public and private capital in abundant supply.
29
Solar Energy - Technology
A typical GHI irradiation Map for
India which is used to find a
feasible site for PV Plant.

A typical DNI irradiation Map for

India which is used to find a
feasible site for CSP Plant.

30
Solar Energy – Current Scenario
The total installed capacity of solar
power (Both CSP and PV) as of 2008
is 2826 MW.

In India the total installed capacity of

solar power is around 2 MW.

In India, various government and

private players have entered into
CSP and PV markets.

MNRE has set a target to establish at

least 50 MW of solar projects during
the 11th plan.

31
List of Top Global Solar Energy Companies setting up Base in
India Increasing Rapidly

Solar EPC (Engineering,Procurement and Constuction)

Companies

SunEdision
Gehrlicher Solar
Belectric
SDEM TEGA
American Capital Energy

Solar Thermal Companies

 Siemens
 Areva
eSolar\
32
SUMMARY OF POTENTIAL RETURNS IN RE
BASE GENERATION PROJECTS
Given the comparatively higher cost of generating
energy from renewable sources, necessity for financial
support for the industry.
Government has introduced subsidies to make returns
attractive for developers.
Indicative expected returns:
Type of Wind Hydro Hydro Biomass Solar
Project
Returns (PPA) (Merchant)

Costs (Rs. 5-6 5-6 5-6 4-5 18-20

Cr/MW)
Equity IRR 20-25 15-18 20-25 16-20 --
33
34