Renewable EnergySector Profile

India Scenario

India’s Renewable Energy BasketBreak up of the 72 GW InstalledRenewable Power (GW, % Share)1.2 , 2%9.4 , 13% In line with the Paris Climate Agreement, Ministry of New &Renewable Energy, Government of India announced therenewable energy target of installing 175 GW capacity by2022. India is set on track to achieve the target earlier thanplanned & the target for 2022 has now been set to 227 GW. India stand 5th in terms of renewable energy capacity with aninstalled capacity of 72 GW with another 40 GW underdevelopment.India has targeted to become amongst the top 3 countriesglobally by 2022.Wind Power4.5 , 6%Solar Power34.3 , 47%Small Hydro PowerBio Power23.0 , 32%Others Renewables (Excluding large hydro power projects) accountsfor 72 GW out of the total 332 GW installed power capacitywhich is approximately 21.7%.27 GW has been added only in the last three years.Source: MNRE-GoI, IBEF, EPD-GoGIndia is giving a strong push to renewable energy in line withits commitment to cut carbon emissions by 35%.Renewable energy sources to generate at least 40% of powerneeds by 2030. India is now coming up with new schemes for Floating solar &offshore wind power projects to diversify.India is taking a leading role in the formation of anInternational Solar Alliance (ISA) with 121 countries.3

Wind EnergyIndia has become the worlds 4th largest wind producer with an installedcapacity of 34.29 GW & projects under development for another 14 GW.A low tariff of US 0.04 /unit has been achieved through transparentbidding & adequate facilitation from the government11.70 GW out of the 34.29 GW of wind energy has been installed onlyduring the last three years.India saw the largest ever wind power capacity addition of 5.5 GW in2016-2017 exceeding the target by 38%.The most promising sites are in the west and south, with around 90% ofthe potential in the states of Tamil Nadu, Andhra Pradesh, MadhyaPradesh, Karnataka, Maharashtra and GujaratSource: MNRE-GoI, IBEF, EPD-GoG; 1US INR 654

Solar EnergyIndia has become the worlds 6th largest Solar producer with an installedcapacity of 21.8 GW including 1219 MW from Solar roof top & projectsunder development for another 33 GW.A low tariff of US 0.04 /unit has been achieved through transparentbidding & adequate facilitation from the government12.87 GW out of the 16.6 GW of Solar energy has been installed onlyduring the last three years with the biggest ever capacity addition of 5.5GW added in 2017-18.National Solar MissionSolar LightingSolar Roof TopOver 4 million solarlighting systems areoperational in thecountry with approx. 2million being addedduring the last 4 years.155 MW of capacity hasbeen added between Apr- Jun’ 18, taking thecumulative achievementto 1219 MW.Source: MNRE-GoI, IBEF, EPD-GoG; 1US INR 65Solar Parks35 Solar parks with anaggregate capacity of20.5 GW have beenapproved in 21 states.Solar DefenseSolar PumpsAgainst a set target of300 MWs, projects witha cumulative capacity of357.5 MW have beensanctioned by defenseestablishments.Approx. 142,000 solarpumps have beeninstalled in the countrytill Nov’17 with approx.131,000 being installedduring the last 4 years.5

Biomass EnergyA total of 9.4 GW grid connected capacity has been installed in bio energyin India. Biomass power includes installations from biomass combustion,biomass gasification and bagasse co-generation.The total number of biogas plant installations in the country isapproximately 5 million.Family type biogas plants mainly for rural & semi-urban households areset up under the National Biogas & Manure Management Program.With government’s ambitious green energy targets, the sector has becomequite attractive for both foreign & domestic investors.GoI launched a National Policy on Biofuels aimed at cutting oil imports.Viability Gap Funding & Tax Incentives are offered for bio refineries.Sugar beet, sweet sorghum, corn, cassava, damaged food grains like wheat,broken rice, and rotten potatoes have now being allowed for production.Source: MNRE-GoI, IBEF6

Central Government IncentivesFDI up to 100% ispermitted under theautomatic route forrenewable energygeneration and distributionprojectsExemption from exciseduties on componentsused in making solarpanelsNo inter-state transmissioncharges and losses leviedfor solar & wind powerSource: MNRE-GoI, IBEF, EPD-GoG;A 10-year tax holidayfor solar power &biomass powerprojectsA green energy corridor,the intra-statetransmission system isbeing implemented across8 renewable rich statesincluding Gujarat toevacuate 20 GW of energyCapital & interestsubsidies and viabilitygap funding to makeprojects economicallyviableSpecial incentives forexports from India inrenewable energytechnology underrenewable sector-specificSEZ7

Central Government InitiativesNational Offshore WindPolicy, 2015 Promotes deploymentof Offshore Wind Farmsup to 12 nautical milesfrom coast. Researchand Developmentactivities to take placeup to ExclusiveEconomic Zone (EEZ)of 200 nautical miles. Single windowclearance is offered. Tax holiday of 10 yearsforoffshorewindgenerationSource: IBEFRepowering PolicyWind-Solar Hybrid Policy Promotes optimumutilization of wind energyresources by creatingfacilitative framework forrepowering. Aims to achieve a hybridwind-solar capacity of10 GW by 2022 All fiscal & financialbenefits offered to newwind power projects willbe extended torepowering projects An interest rebate of 0.25per cent over the interestrebate offered to newwind energy projects willbe provided Hybridization of the twotechnologies will helpin: Minimizingvariability Optimalutilization ofinfrastructureincluding land andtransmissionsystemsRenewable PurchaseObligations (RPO’s) RPO is a mechanism bywhich obligated entitiesare obliged to purchasecertain percentage ofpower from renewableenergy sources. Also, floor prices of theRenewable EnergyCertificates (REC) havebeen set to providecertainty to companies.The floor price has beenset at approximately US 144 per Megawatt.8

Gujarat Scenario

Gujarat’s Renewable Energy BasketBreak up of the 7350 MW InstalledRenewable Power (MW, % Share)60.8, 1%1681.85,23%Wind PowerSolar PowerOther5607.35,76%The State has a total potential of 85 GW in wind energy and 85 GWin solar energySource: MNRE-GoI, IBEF, EPD-GoG;Gujarat contributes approximately 12% to India’s Renewableenergy basket.10

Wind EnergyGujarat is the 2nd largest producer of wind power in India. The state has a strong base ofwind turbine & equipment manufacturers.The Centre for wind energy technology, an autonomous R&D institution under MNRE,has identified and approved total 82 Wind Monitoring Stations for wind energydeployment with annual average wind power density greater than 200 W/sq. m. at Metmast height of 20/25/50/80/100/120 meters in Gujarat.Wind power developersWind equipment manufacturersSource: MNRE-GoI, IBEF, EPD-GoG;11

Solar EnergyGujarat accounts for 8 % of India’s total installed solar power.Gujarat has one of Asia’s largest solar park with a capacity of over 750MW in Charanka.India’s largest solar cell and module manufacturer, Adani Solar is basedout of Mundra, Gujarat. Adani aims to become a fully integrated solar PVmanufacturer.Solar power developersSource: MNRE-GoI, IBEF, EPD-GoG;Solar PVmanufacturers12

Biomass EnergyThe total bio-mass potential for Gujarat is about 1,800 MW from cropresidue and about 140 MW from forest residue53.10 MW capacity biomass projects commissioned in Amreli, Junagadhand Vadodara16.77 MW waste-to-energy power generation projectsInstitutional biogas plants with capacity 15730 m3/day across the stateBiomass EnergyCompaniesSource: MNRE-GoI, IBEF, EPD-GoG;13

State GovernmentIncentives14

Government IncentivesSolar Power Subsidy of INR 10,000 per kW forinstalling residential rooftopsolar systems at privateresidences; with maximum limitof subsidy of INR 20,000/- perconsumer Support under policy of GoG : Solar Projects with sale ofpower to DisComs undercompetitive bidding Solar Projects under RECmechanism with sale of powerto DisComs at APPC Solar Projects with sale ofpower under NSM Solar Projects with sale ofpower to third party underopen-access Electricitygeneratedandconsumed for self consumption/ sale to third party within theState shall be exempted frompayment of electricity dutyWind PowerSmall HydelWaste to Energy Support under policy of GoG : Support under policy of GoG : Support under policy of GoG : Land: Revenue waste land @ 1hectare per Wind turbinegenerator on long term lease of20 years to the Developer at alease rent of Rs. 10,000 / ha/year Exemption from demand cut tothe extent of 50% of installedcapacity of wind power projectin case of captive consumption& third party sale within thestate. Electricity generated &consumed for selfconsumption/sale to third partywithin the state shall beexempted from payment ofelectricity duty Exemption from demand cutto the extent of 50% ofinstalled capacity of SmallHydel Project in case ofcaptive consumption andthird party sale within theState Electricity generated andconsumed for selfconsumption / sale to thirdparty within the State shall beexempted from payment ofelectricity duty Land available to the projectdeveloper at token lease rentof Re. 1/- per annum byMunicipal Corporation orconcerned Urban Local Body(ULB). No tax/cess/royalty/levy tobe charged by ULB. Support for Viability GapFunding Power generated andconsumed exempted frompayment of electricity duty Exemption from demand cutto the extent of 50% ofinstalled capacity of thePower Project based on UrbanSolid WasteSource: MNRE-GoI, IBEF, EPD-GoG, GEDA; GoG - Government of Gujarat15


Investment OpportunitiesCommissioned& UnderDevelopmentProjects (GW)FY 19(GW)FY 20(GW)Targetby ind46.65101066.65Small Hydro4.980.50.5Bio-mass9.50.50110.62India SourceFloating solar &Offshore windTotalCommissionedProjects (GW)Targetby 8.8855.9821Small 31---1.16156227.621,0967.317.1172Gujarat SourceOthersTotalIndia is set to become the 3rd largest renewable energy produce in the world by2022 & has set its Renewable Energy Target to 227 GW from the earlier 175 GW.This addition is expected to require another US 50 Bn more in investments.Gujarat Electricity Regulatory Commission (GERC) hasenhanced the renewable power obligation (RPO) from thecurrent 10 per cent to 17 per cent for the next four yearsIndia has ranked second in the Renewable Energy Attractiveness Index 2017.Non-conventional energy has received FDI inflow ofUS 6.26 Bn.Source: MNRE-GoI, IBEF, Business standard, EPD-GoG;17

Investment Opportunities-Wind PowerIndia has a strong manufacturing base of wind powerequipment. There are 20 approved manufacturers with53 models having assorted ratings of wind turbineGenerators in MW scaleCost of the wind turbines is substantially lower ascompared to Europe or the USAThe total assessed wind resource of India goes upexponentially to 600 GW at 120 m from the 320 GW at100 ringTradingOpportunitiesBusiness OpportunitiesMachinerySuppliersSource: MNRE-GoI, IBEF, EPD-GoG;MaintenanceServiceWind farmDeveloper18

Investment Opportunities-Solar Power60 solar cities will be developed in India as a part ofMinistry of New & Renewable Energy’s Solar Citiesprogram.India has taken a lead in the formation of anInternational Solar Alliance (ISA) with 121 countries.Multiple solar parks have been approved in Gujaratunder the Solar Park Scheme such as Dholera (5GW),Raghanesda (700 MW) & Harsad (500 MW).ManufacturingCells andModulesManufacturingcore products –Ingots & WafersManufacturingBoS Utility GridBusiness OpportunitiesDue to its favorable location in the solar belt, India receives about 300 daysof sunshine a year making it the most lucrative destination for Solarinstallation. Solar installation in India is expected to increase 360 % by2020Source: MNRE-GoI, IBEF, EPD-GoG;Installation &SupportMaintenanceservicesPower PlantDeveloper19

Investment Opportunities- BiomassPowerRapid urbanisation and industrialisation over therecent decades has resulted in increased wastegeneration in Indian citiesWaste to Energy (WtE) projects could play a criticalrole in achieving safe and integrated solid wastemanagement in an environmentally sound, sociallyaccepted, and economically feasible manner.Feedstockproducers ss OpportunitiesInstallation &SupportSource: MNRE-GoI, IBEF, EPD-GoG;EquipmentManufacturers &TechnologysuppliersPowerProducers20

Investment Opportunities- Off ShoreWind Power1000 MW Offshore wind park is coming up on thecoast of Gujarat in PipavavCost of the wind turbines is substantially lower ascompared to Europe or the USAThe total assessed wind resource of India goes upexponentially to 600 GW at 120 m from the 320 GW at100 m.ManufacturingCells andModulesManufacturingcore products –Ingots & WafersManufacturingBoS Utility GridBusiness OpportunitiesInstallation &SupportSource: MNRE-GoI, IBEF, EPD-GoG;Training,Consulting & ITSupportServicesPower PlantDeveloper21

Success Storiesfrom Gujarat22

Charanka Solar ParkCharanka Solar Park is being built on a 2,000-hectare(4,900-acre) plot of land near Charanka village inPatan district, northern GujaratThis hosts about 32 different projects by differentdevelopers with generating capacity of 600 MW.When fully built out, the Charanka Solar Park will hostover 750 MW of solar power systems using state-ofthe-art thin film technology.The investment cost for the Charanka solar parkamounts to approximately US 650 million.The integrated "Solar Park" has state of artinfrastructure with provision to harness rain waterbesides power evacuation at the door steps.Source: MNRE-GoI, IBEF, Business Standard, EPD-GoG; 1 US 65 INR23

Model Solar City Project- GandhinagarGovernment of India declared Gandhinagar as a ModelSolar City setting example for Solar Cities throughoutIndia and other nationsTotal installed capacity on government buildings,Gandhinagar is 10 MW which contributes about 5.3%of the total Energy demandOut of the total 10 MW installed capacity, 4 MW is SPVbased grid-connected power generating rooftopsystems at government buildingsProgram aims at minimum 10% reduction in projecteddemand of conventional energy at the end of 5 yearsSource: MNRE-GoI, IBEF, EPD-GoG;24

Solar Rooftop Programme: RENT AROOF4.9 MW solar rooftops have been setup in Gandhinagaras part of the Model Solar City Project on GovernmentBuildings which contributes 5.23% of the totalconsumption of the Gandhinagar city324 locations have been covered in Gandhinagarincluding 270 households and 54 GovernmentBuildingsThe programme has been replicated in Vadodara toowhere solar rooftops with capacity of 4 MW aresetup.The owner of property is paid a “Green Incentive” onthe basis of units (kWh) of electricity generated by theSPV system installed on the propertyGandhinagar & Vadodara Solar Rooftop ProgrammeSource: MNRE-GoI, IBEF, EPD-GoG;This Programme provides an opportunity to propertyowners in Gandhinagar City for participation byoffering their rooftop or terrace for installation of SolarPhotovoltaic System for solar power generation25

World’s First Canal Top Solar PowerProjectTECHNICAL DETAIL Projected energy production: 1.6 millionunits/year/MW Irradiation: 4.6 – 6.4 kWh/m2 Installed capacity: 1 MWp Technology: polycrystalline solar modules, 280Wp Number of modules: 3616 Canal length used: 750 m Power evacuation system: 11 KVGujarat has initiated the world’s first canal-based solar power project onNarmada branch canal new Chandrasan village of Mehsana districtSource: MNRE-GoI, IBEF, EPD-GoG;INNOVATIVE IDEAS Cover the canal with Solar Panels to Save Land @ 5 acre per MW Minimize evaporation from canal (9 million literswater saving per MW per year) Produce eco-friendly power Shadowing effect of panel results in reducedphotosynthesis and less algae growth leading toless maintenance cost Pilot Project is for 1 MW26

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National Solar Mission Solar Lighting Solar Pumps Solar Parks Solar Roof Top Solar Defense Approx. 142,000 solar pumps have been installed in the country till Nov’17 with approx. 131,000 being installed during the last 4 years. 35 Solar parks with an aggregate capacity of 20.5 GW