Challenges & opportunities for renewable energy in india

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This is a Report describes the overview of the renewable energy sources in India and potentiality of power generation and also includes the rules and regulations for the non conventional energy.

This is a Report describes the overview of the renewable energy sources in India and potentiality of power generation and also includes the rules and regulations for the non conventional energy.

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  • Increasing power shortages in almost all the states in India is the big concerns nowadays. I think only except Gujarat, other states are facing the severe power crisis. I've done power deficit analysis for few states like Andhra Pradesh. Maharashtra and Gujarat for past 5 years and found Andhra Pradesh has the most severe electricity shortage. Please read more here http://greencleanguide.com/2013/02/05/electricity-scenario-of-the-state-of-andhra-pradesh/ and http://greencleanguide.com/2013/01/01/electricity-scenario-of-the-state-of-gujarat/ Renewable energy might be a solution for future
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  • 1. CHALLENGES & OPPORTUNITIES FORRENEWABLE ENERGY IN INDIAN PERSPECTIVE United Business Institutes Belgium, Europe PROJECT REPORTSubmitted in partial fulfilment of the requirements for the award of the INTERNATIONAL MBA IN POWER By SOUMYADEEP BHUNIA (UBI/MBA/I/AP11/3389) Under the guidance of Mr. VIVEK ZAVERI (Manager Energy Audit) JARO EDUCATION MUMBAI January 2012
  • 2. PROJECT REPORT: Challenges & Opportunities For “Renewable energy in Indian Perspective Renewable Perspective” DECLARATIONI, Soumyadeep Bhunia hereby declare that this project report titled Challenges &Opportunities for Renewable Energy in Indian Perspective submitted in partial or nergyfulfilment of the requirement for the International MBA in Power is my original workand it has not formed the basis for the award of any other degree. ot (Signature of the Student) Soumyadeep BhuniaPlace: AhmedabadDate: 30th January 2012 (I)jaro education
  • 3. PROJECT REPORT: Challenges & Opportunities For “Renewable energy in Indian Perspective Renewable Perspective” ACKNOWLEDGMENTIt gives me a great sense of achievement and pleasures to present this report on myMBA Final project undertaken in the IInd semester as a part of o my curriculum. I ndowe special debt and gratitude to Mr. Vivek Zaveri (Manager Energy Audit at V ManagerConserve Energy Solution India for his consistent support and invaluable India)guidance throughout this endeavour. Whenever I was puzzled and confused aboutthe concepts, his innovative ideas gave me a way to proceed. His sincerity,thoroughness and perseverance had been a great source of inspiration for me. It isonly his cognizant guidance and motivation that my efforts saw light of the day.I also acknowledge all the energy experts from where I gathered the data for thisproject.I also take this opportunity to acknowledge my friends and colleague for their pportunitycontribution & myself for my individual efforts in the completion of this report.Finally, I have no words to express my deep sense of gratitude to my institute JaroEducation on behalf of United Business Institute for giving me this opportunity toprepare this project report and in particular Mr. V. Zaveri for his guidance and repare report,support.Regards,SOUMYADEEP BHUNIA (II)jaro education
  • 4. PROJECT REPORT: Challenges & Opportunities For “Renewable energy in Indian Perspective Renewable Perspective” CERTIFICATE FROM PROJECT GUIDEThis is to certify that the work contained in this report on “Challenges &Opportunities for Renewable Energy in Indian Perspective” by Soumyadeep Bhuniastudent of International MBA in Power Jaro Education on behalf of United Business Power,Institute, Belgium was done under my guidance and supervision for his Final Projectduring the IInd semester.To the best of my knowledge & belief the work has been based on the investigationmade, data collected & analyzed by him & this work has not been submittedanywhere else for any other university or institution. The work has been completed to my satisfaction. 30.01.2012Date: _____________ ________ ____________________ Mr. Vivek Zaveri AhmedabadPlace: _____________ Manager V Conservation Energy onservation Solutions India Pvt. Ltd. Noida (III)jaro education
  • 5. PROJECT REPORT: Challenges & Opportunities For “Renewable energy in Indian Perspective Renewable Perspective” PREFACERenewable energy in India is a sector that is still undeveloped. India was the firstcountry in the world to set up a ministry of non conventional energy resources, in non-conventionalearly 1980s. However its success has been very spotty. In recent years India hasbeen lagging behind other nations in the use of renewable energy (RE). The share of nationsRE in the energy sector is 10.63 % (as on 31/03/11) of total generation capacity ofIndia. Renewable energy in India comes under the purview of the Ministry of Newand Renewable Energy.80% of global population lives in developing areas. Of the 6.0 billion populations, in lationthe OECD countries the total number is approximately 1.2 billion – North America(0.4), Europe (0.6), Asia Pacific (0.2). In the non OECD countries, the population is non-OECDthe balance 80% and i.e. 4.8 billion consisting of Asia Pacific (3.2), Russia Russia-Caspian(0.3), Middle-East (0.2), Africa (0.8) and Latin America (0.4). By the year 2030, the Eastglobal population is projected to be 8.0 billion rising at the rate of 0.9% per year andin the year 2030, the OECD countries would consist of North America (0.5), Europe 0,(0.6) and Asia Pacific (0.2), the total being 1.3 from the present level of 1.2 billion.The balance 7.7 billion would be in non OECD countries. Therefore, during the non-OECDperiod 2005-2030, the population rise in the non OECD countries would be higher non-OECDthan the population growth in the OECD countries. And, as a result, by the year2030, the global population in the OECD countries would be a little more than 16%and the balance about 84% would in t non-OECD countries. theAs regards energy consumption, 16% of the global population in the OECDcountries, would consume, by the year 2030, more than 40% of energy and thebalance about 84% of the global population in the non OECD areas would consume non-OECDa little less than 60% of the total energy consumed in the world. No doubt, during the leperiod 2005 to 2030, the rate of growth of energy consumption in the non non-OECDcountries would be higher than in OECD countries and would vary between 1.3% inthe Russian-Caspian area to 3.2% in the Asia Pacific areas, as opposed to the rate anof growth of energy consumption during this period in the OECD countries being inthe range of 0.6% in North America to 0.9% in the Asia Pacific region. (IV)jaro education
  • 6. PROJECT REPORT: Challenges & Opportunities For “Renewable energy in Indian Perspective Renewable Perspective”Still as mentioned earlier, by the year 2030, 16% of global population would byconsume as much as 40% of the energy and the balance 84% of the globalpopulation would consume less than 60% of energy. Providing access to adequateenergy to their people is really a challenge for developing countries. developingIndia is one of the countries where the present level of energy consumption, by worldstandards, is very low. The estimate of annual energy consumption in India is about330 Million Tones Oil Equivalent (MTOE) for the year 2004. Accordingly, t the percapita consumption of energy is about 305 Kilogram Oil Equivalent (KGOE). Ascompared to this, the energy consumption in some of the other countries is of theorder of over 4050 for Japan, over 4275 for South Korea, about 1200 for China,about 7850 for USA, about 4670 for OECD countries and the world average is about1690.Total Installed Capacity of power generation in India (as on 30 30-06-2011) is176,990.40 MW. Among them a . about 65.34% of the electricity consumed in India isgenerated by thermal power plants, 21.53% by hydroelectric power plants, 2.70% bynuclear power plants and 10.42% by Renewable Energy Sources. More than 50% ofIndias commercial energy demand is met through the countrys vast coal reserves.The country has also invested heavily in recent years in renewable energy utilization, heavilyespecially wind energy. In 2010, Indias installed wind generated electric capacitywas 14,550 MW. Additionally, India has committed massive amount of funds for theconstruction of various nuclear reactors which would generate at least 30,000 MW. reactorsIn July 2009, India unveiled a $19 billion plan to produce 20,000 MW of solar powerby 2022.India has a vast supply of renewable energy resources, and it has one of the largestprograms in the world for deploying renewable energy products and systems.Indeed, it is the only country in the world to have an exclusive ministry for renewableenergy development, the Ministry of Non Conventional Energy Sources (MNES). Non-ConventionalSince its formation, the Ministry has launched one of the world’s largest and most ofambitious programs on renewable energy. Based on various promotional efforts putin place by MNES, significant progress is being made in power generation fromrenewable energy sources. In October, MNES was renamed the Ministr of New and MinistryRenewable Energy. (V)jaro education
  • 7. PROJECT REPORT: Challenges & Opportunities For “Renewable energy in Indian Perspective Renewable Perspective”Specifically, 3,700 MW are currently powered by renewable energy sources. This isprojected to be 10,000 MW from renewable energy by 2012. The key drivers forrenewable energy are the following: 1. The demand-supply gap, especially as population increases supply 2. A large untapped potential 3. Concern for the environment 4. The need to strengthen India’s energy security 5. Pressure on high-emission industry sectors from their shareholders emission 6. A viable solution for rural electrificationAlso, with a commitment to rural electrification, the Ministry of Power has acceleratedthe Rural Electrification Program with a target of 100,000 villages by 2012.In recent years, India has emerged as one of the leading destinations for investorsfrom developed countries. This attraction is partially due to the lower cost of edmanpower and good quality production. The expansion of investments has broughtbenefits of employment, development, and growth in the quality of life, but only to themajor cities. This sector only represents a small portion of the total population. Theremaining population still lives in very poor conditions.India is now the eleventh largest economy in the world, fourth in terms of purchasingpower. It is poised to make tremendous economic strides over the next ten years, economicwith significant development already in the planning stages. This report gives anoverview of the renewable energies market in India. We look at the current status ofrenewable markets in India, the energy needs of the country, forecasts ofconsumption and production, and we assess whether India can power its growth andits society with renewable resources.The Ministry of Power has set an agenda of providing Power to All by 2012. It seeksto achieve this objective through a comprehensive and holistic approach to power throughsector development envisaging a six level intervention strategy at the National,State, SEB, Distribution, Feeder and Consumer levels. (VI)jaro education
  • 8. PROJECT REPORT: Challenges & Opportunities For “Renewable energy in Indian Perspective Renewable Perspective” EXECUTIVE SUMMARYSecure, reliable and affordable energy supplies are fundamental to global economicstability and growth. The challenges ahead of us include the adequacy of energysupplies, the threat of disruptive climate change and the huge investmentrequirements to meet the growing global energy needs, particularly in the developing particularlycountries.Future energy demand and supply are subject to numerous uncertainties, most ofwhich are difficult to predict. Such as energy prices, particularly oil prices, globaleconomic growth rate, demographic changes, technological advances, government technologicalpolicies and consumer behaviour. In such a complex market, energy projections areprimarily based on historical information. The primary objective of any energy energy-scenario analysis must be to analyze the main driving forces that wou shape our wouldenergy future and the options ahead of us, rather than making accurate quantitativeprojections. According to Paul Saffo (2007) ―Whether a specific forecast actually Whetherturns out to be accurate is only part of the picture -- even a broken clock i right twice isa day. Above all, the forecasters task is to map uncertainty, for in a world where ouractions in the present influence the future, uncertainty are opportunity.This programme is looked after by the Ministry of Non Conventional Sources of Non-Conventionalenergy. Since the availability of fossil fuel is on the decline therefore, in this backdrop ergy.the norms for conventional or renewable sources of energy (RSE) is givenimportance not only in India but has attracted the global attention.The main RSE are as follows: Solar Power Wind Power Hydro Power Geo Thermal Tidal/Ocean energy Ocean Bio fuel/Alternative fuels (VII)jaro education
  • 9. PROJECT REPORT: Challenges & Opportunities For “Renewable energy in Indian Perspective Renewable Perspective”Evolution of power transformer technology in the country during the past fivedecades is quite impressive. There are manufacturers in the country with full accessto the latest technology at the global level. Some of the manufacturers haveimpressive R&D set up to support the technology.Renewable energy is very much promoted by the Chinese Government. At the sametime as the law was passed, the Chinese Government set a target for renewable sed,energy to contribute 10% of the country’s gross energy consumption by 2020, ahuge increase from the current 1%.It has been felt that there is rising demand for energy, food and raw materials by apopulation of 2.5 billion Chinese and Indians. Both these countries have large coal pulationdominated energy systems in the world and the use of fossil fuels such as coal andoil releases carbon dioxide (Co2) into the air which adds to the greenhouse gaseswhich lead to global warming. dThe power generation in the country is planned through funds provided by theCentral Sector, State Sector and Private Sector. The power shortages noticed is ofthe order of 11%. In the opinion of the experts such short fall can be red reducedthrough proper management and thus almost 40% energy can be saved. It has beennoticed that one watt saved at the point of consumption is more than 1.5 wattsgenerated. In terms of Investment it costs around Rs.40 million to generate one MWof new generation plant, but if the same Rs.40 million is spent on conservation of erationenergy methods, it can provide up to 3 MW of avoidable generation capacity.There are about 80,000 villages yet to be electrified for which provision has beenmade to electrify 62,000 villages from grid supply in the Tenth Plan. It is planned thatparticipation of decentralized power producers shall be ensured, particularly forelectrification of remote villages in which village level organizations shall play a ectrificationcrucial role for the rural electrification programme. (VIII)jaro education
  • 10. PROJECT REPORT: Challenges & Opportunities For “Renewable energy in Indian Perspective Renewable Perspective” TABLE OF CONTENTSContentsDECLARATION ................................ ......................................... I ................................................................................................................................ACKNOWLEDGMENT............................................................................................................................. .............................................................................................................................II .............................................................................................................................CERTIFICATE FROM PROJECT GUIDE....................................................................................................III GUIDE..................................................................................................PREFACE............................................................................................................................. ...............................................................................................................................................IV .............................................................................................................................EXECUTIVE SUMMARY........................................................................................................................VII SUMMARY........................................................................................................................1.0 INTRODUCTION ................................ ............................................................................................................................... 13 ............................... 1.1 Primary and Secondary Energy ................................................................................................ 13 ................................... 1.2 Commercial Energy and Non Commercial Energy ................................................................ ...................................... 14 1.2.1 Commercial Energy ................................ ................................................................................................ .............................................. 14 1.2.2 Non-Commercial Energy ................................................................................................ Commercial ...................................... 14 1.3 Renewable and Non-Renewable Energy................................................................ Renewable ..................................................... 14 1.4 PURPOSE OF STUDY ................................ ................................................................................................ ................................................ 15 1.5 OBJECTIVE OF THE PROJECT PROJECT................................................................................................ 16 .................................... 1.6 IDENTIFICATION OF PROBLEM ................................................................................................ 16 ................................ 1.7 RESEARCH METHODOLOGY ................................................................................................ 17 .................................... 2.0 INDIAN ENERGY AND CLIMATE CHANGE STATUS ................................................................ ....................................... 17 2.1 Commercial Energy Consumption .............................................................................................. 19 .............................. 2.2 The Power Market in India and the Role of Renewable Energy ................................ ................................................. 20 2.3 Power Consumption................................ ................................................................................................ .................................................... 22 2.4 Power Generation Capacity ................................................................................................ ........................................ 243.0 THE STATUS OF RENEWABLE ENERGY IN INDIA................................................................ .............................................. 28 3.1 Renewable Energy Share of Electricity ................................................................ ....................................................... 29 3.2 Renewable Energy Application in Industrial Use and Transportation ................................ ........................................ 31 3.3 Grid Connection and Status Overview ................................................................ ........................................................ 33 3.4 Tradable Renewable Energy Credits ................................................................ ........................................................... 334.0 VARIOUS SOURCE OF RENEWABLE ENERGY OPPORTUNITIES IN INDIA ................................ ......................................... 34 4.1 Solar ................................................................ ................................................................................................ ............................................ 35 4.1.1 Solar energy potential ................................................................................................ .......................................... 36 4.1.2 Solar thermal power generation technologies ................................................................ 37 .................................... 4.1.3 Solar thermal power generation program of India .............................................................. 39 .............................. 4.1.4 Opportunities for solar thermal power generation in India ................................ ................................................ 39 4.1.5 PV & CSP Ratio ................................ ................................................................................................ ..................................................... 40jaro education
  • 11. PROJECT REPORT: Challenges & Opportunities For “Renewable energy in Indian Perspective Renewable Perspective” 4.1.6 Domestic Content (PV) ................................................................................................ ......................................... 40 4.1.7 Domestic Content (CSP) ................................................................................................ ....................................... 41 4.1.8 Jawaharlal Nehru National Solar Mission ................................................................ ............................................ 42 4.1.8 Solar Farming Potential in India ................................................................ ........................................................... 43 4.1.9 Challenges ................................ ................................................................................................ ............................................................ 48 4.2 Wind ................................................................ ................................................................................................ ............................................ 48 4.2.1 Wind Energy for power generation ................................................................ ..................................................... 48 4.2.2 India’s Unique Proposition for Wind Energy: Energy:................................................................ ....................................... 50 4.2.3 Wind Power Capacity Installed in India ................................................................ ............................................... 52 4.2.4 Wind Energy Business Opportunities in India ................................................................ ...................................... 54 4.2.5 Power Plant Development stapes and opportunity in India ................................ ................................................ 55 4.2.6 Central and State Government Policies for Supporting Wind Power Projects .................... 57 Policies 4.3 Small Hydro ................................ ................................................................................................................................ 60 ................................. 4.3.1 Introduction ................................ ................................................................................................ ......................................................... 60 4.3.2 Small Hydro Power Programme ................................................................ ........................................................... 61 4.3.3 Small hydro installed capacity and progress................................................................ ........................................ 62 4.3.4 Standards for Small Hydro ................................................................................................ 64 ................................... 4.3.5 States with Policy for Private SHP Proje ................................................................ Projects .......................................... 64 4.3.6 Watermills ................................ ................................................................................................ ............................................................ 65 4.3.7 Manufacturing Status Status................................................................................................ ........................................... 66 4.3.8 Technical and consultation Services ................................................................ .................................................... 66 4.3.9 Real Time Digital Simulator for SHP ................................................................ ..................................................... 66 4.3.10 Constraints in SHP ................................ ................................................................................................ .............................................. 66 4.4 Geothermal Energy ................................ ................................................................................................ ..................................................... 66 4.4.1 Status and Trends ................................ ................................................................................................ ................................................ 67 4.4.2 Characteristics and Applications of Geothermal Energy ................................ ..................................................... 68 4.4.3 Geothermal Energy Scenario: India and world ................................................................ 69 .................................... 4.4.4 Technology ................................ ................................................................................................ ........................................................... 70 4.4.5 Potential India ................................ ................................................................................................ ...................................................... 72 4.4.6 Historical Capacity & Consumption Data ................................................................ ............................................. 73 4.4.7 Cost, Price and Challenges ................................................................................................ 74 ................................... 4.4.8 Drilling ................................ ................................................................................................................................ 75 .................................. 4.4.9 Transmission ................................ ................................................................................................ ........................................................ 75 4.4.10 Barriers ................................ ............................................................................................................................... 76 ............................... 4.4.11 Geo Thermal companies in India ................................................................ ....................................................... 76jaro education
  • 12. PROJECT REPORT: Challenges & Opportunities For “Renewable energy in Indian Perspective Renewable Perspective” 4.4.12 RD&D Priorities ................................ ................................................................................................ .................................................. 76 4.5 Tidal Energy ................................ ................................................................................................................................ 77 ................................. 4.5.1 Technology ................................ ................................................................................................ ........................................................... 78 4.5.2 Potential of tidal energy in India ................................................................ .......................................................... 78 4.5.3 Proposed tidal power projects in India ................................................................ ................................................ 79 4.5.4 Kachchh Tidal Power Project ............................................................................................... 79 ............................... 4.5.5 Durgaduani Creek ................................ ................................................................................................ ................................................ 79 4.5.6 Tidal Barriers ................................ ................................................................................................ ........................................................ 80 4.6 Wave Power ................................ ................................................................................................................................ 81 ................................ 4.6.1 Technology ................................ ................................................................................................ ........................................................... 81 4.6.2 Potential of Wave energy in India................................................................ ........................................................ 81 2.6.3 Barriers ................................ ................................................................................................................................ 82 ................................. 4.7 Biofuel ................................ ................................................................................................................................ ......................................... 82 4.7.1 Economics of biodiesel production from Jatropha .............................................................. 83 .............................. 4.7.2 Project operation and crediting period period................................................................ ................................................ 84 4.7.3 Project cost and financing ................................................................................................ 84 .................................... 4.7.4 Project status ................................ ................................................................................................ ....................................................... 84 4.7.5 Biodiesel industry growth ................................................................................................ 84 ....................................5.0 CONCLUSION..................................................................................................................................86 CONCLUSION.....................................................................................................................6.0 BIBLIOGRAPHY................................................................................................................................89 ..............................................................................................................................jaro education
  • 13. PROJECT REPORT: Challenges & Opportunities For 13 “Renewable energy in Indian Perspective Renewable Perspective”1.0 INTRODUCTIONEnergy is one of the major inputs for the economic development of any country. Inthe case of the developing countries, the energy sector assumes a criticalimportance in view of the ever increasing energy needs requiring huge investments ever-increasingto meet them.Energy can be classified into several types based on the following criteria: • Primary and Secondary energy • Commercial and Non commercial energy • Renewable and Non-Renewable energy Renewable1.1 Primary and Secondary EnergyPrimary energy sources are those that are either found or stored in nature. Commonprimary energy sources are coal, oil, natural gas, and biomass (such as wood).Other primary energy sources available include nuclear energy from radioactivesubstances, thermal energy stored in earth’s interior, and potential energy due to storedearth’s gravity. The major primary and secondary energy sources are shown inFigure 1. Figure 1: Major Primary and Secondary SourcesPrimary energy sources are mostly converted in industrial utilities into secondaryenergy sources; for example coal, oil or gas converted into steam and electricity.jaro education
  • 14. PROJECT REPORT: Challenges & Opportunities For 14 “Renewable energy in Indian Perspective Renewable Perspective”1.2 Commercial Energy and Non Commercial Energy1.2.1 Commercial EnergyThe energy sources that are available in the market for a definite price are known ascommercial energy. By far the most important forms of commercial energy areelectricity, coal and refined petroleum products. Commercial energy forms the basisof industrial, agricultural, transport and commercial development in the modern ial,world. In the industrialized countries, commercialized fuels are predominant sourcenot only for economic production, but also for many household tasks of generalpopulation.Examples: Electricity, lignite, coal, oil, natural gas etc.1.2.2 Non-Commercial Energy CommercialThe energy sources that are not available in the commercial market for a price areclassified as non-commercial energy. Non commercial energy sources include fuels commercial Non-commercialsuch as firewood, cattle dung and agricultural wastes, which are traditionally wood,gathered, and not bought at a price used especially in rural households. These arealso called traditional fuels. Non commercial energy is often ignored in energy Non-commercialaccounting.Example: Firewood, agro waste in rural areas; solar energy for water heating, wood, forelectricity generation, for drying grain, fish and fruits; animal power for transport,threshing, lifting water for irrigation, crushing sugarcane; wind energy for lifting waterand electricity generation.1.3 Renewable and Non- -Renewable EnergyRenewable energy is energy obtained from sources that are essentiallyinexhaustible. Examples of renewable resources include wind power, solar power,geothermal energy, tidal power and hydroelectric power (See Figure 2). The most powerimportant feature of renewable energy is that it can be harnessed without the releaseof harmful pollutants. Non-renewable energy is the conventional fossil fuels such as renewablecoal, oil and gas, which are likely to deplete with time.jaro education
  • 15. PROJECT REPORT: Challenges & Opportunities For 15 “Renewable energy in Indian Perspective Renewable Perspective” Figure 2: Renewable and Non-Renewable Energy1.4 PURPOSE OF STUDYTo provide an overview of renewable energy sources available in India and the opotentiality of the various resources The government of India is formulating policies ity resources.to promote the application of renewable energy technologies. Va Various opportunityand constrain to develop new Renewable Energy projects in different location as peravailable resource will assist the process of developing renewable energy sector forIndia.In terms of scope: The study covers solar energy, wind energy, small hydro, wave energy and geothermal energy The study compares estimates of the cost of electricity produced from renewable energy and the present cost of fossil fuel based electricity ewable generated in India The study presents an assessment of available renewable energy he technologies and steps of business developments in India considering the available renewable energy resou resources, strategic location with ongoing projects overview The study considers mechanisms used to provide financial incentives for promoting renewable energy projects, and identifies mechanisms which could be applied in India.The technological development of renewable energy technologies is an ongoingprocess and technologies which are not economically viable today may very soonbecome relevant for India due to the present rapid technological development ofrenewable energy technologies.jaro education
  • 16. PROJECT REPORT: Challenges & Opportunities For 16 “Renewable energy in Indian Perspective Renewable Perspective”1.5 OBJECTIVE OF THE PROJECT To provide an overview of renewable energy resources and recent development status Detailed geographical location identification for different sources of renewable energy To make an overall cost estimation overview for power generation in selective renewable energy source Preparation of business development steps for selective resources Making a brief of renewable energy future in I India.1.6 IDENTIFICATION OF PROBLEMIndia is perceived as a developing country, but it is developing at a pace that is notmatched by many others. We have experienced significant economic growth. Yet thefact remains that our growth is constrained by energy supply and availability.Although we have seen an impressive increase in installed capacity additio from addition,barely about 1,350 MW at the time of independence (1947) to about 160,000 MWtoday, over 90,000 MW of new generation capacity is required in the next sevenyears. A corresponding investment is required in transmission and distribution.The increasing appetite for energy that has developed in the recent past has been ngfurther complicated by rapidly diminishing conventional sources, like oil and coal. Tofurther add to the problems of increased demand and constrained supply, there areserious questions about pursuing a fossil fuel led growth strategy, especially in the fuel-ledcontext of environmental concerns. The challenge facing a developing nation suchas ours is to meet our increasing energy needs while minimizing the damage to theenvironment.This is why, while striving to bridge our energy deficit, India want to increase the , wantsshare of clean, sustainable, new and renewable energy sources. Whether or notrenewable energy completely replaces fossil fuel, we are determined to developrenewable energy to its fullest potential.jaro education
  • 17. PROJECT REPORT: Challenges & Opportunities For 17 “Renewable energy in Indian Perspective Renewable Perspective”1.7 RESEARCH METHODOLOGY1.7.1 DATA COLLECTION:The task of data collection begins after a research problem has been defined and theresearch design/plan chalked out. The data are collected in order to get the result ofthe problem.1.7.2 SECONDARY DATA:These are the data which have been collected by desktop study which have alreadybeen passed through the statistical process. In this the researchers have to decidewhich sort of data he would be going to use. So the secondary data is also collectedin order to get the information. The data collected was from the articles bydistinguished publications, manuals, journals, magazines, and books.1.7.3 SAMPLE DESIGN:The sample is taken from the various government and non government web websites asreal time data was not possible to get due to immobility and the time factor. Themethod used to select sample is Convenient Sampling Method.In this study I have taken the data from various sites of to analyze Challenges &Opportunities for “Renewable energy in Indian Perspective”. For this I have analyzed ewable Perspective”.the charts, and diagrams.2.0 INDIAN ENERGY AND CLIMATE CHANGE STATUSIn 2008, India accounted for 17.7% of the world population but was the fifth fifth-largestconsumer of energy, accounting for 3.8% of global consumption. India’s total 3.8%commercial energy supply is dominated by coal and largely imported oil with largely-importedrenewable energy resources contributing less than 1% (this does not include hydro >25 MW). Coal also dominates the power generation mix, tho though renewableresources now account for approximately 10% of installed capacity. The currentpower-generating capacity is insufficient to meet current demand, and in 2009 generating 2009–2010,India experienced a generation deficit of approximately 10% (84 TWh) and acorresponding peak load deficit of 12.7% (over 15 GW). India’s frequent electricity espondingshortages are estimated to have cost the Indian economy 6% of gross domesticproduct (GDP) in financial year 2007 2008. To power the economic growth currently 2007–2008.being targeted, it is estimated that India will need to more than double its installed tgenerating capacity to over 300 GW by 2017. In recent years, control overgenerating facilities has shifted from being dominantly controlled by the states to thefederal government and private entities, including those who have set up captive privatejaro education
  • 18. PROJECT REPORT: Challenges & Opportunities For 18 “Renewable energy in Indian Perspective Renewable Perspective”power plants to power their industrial facilities. The private sector is dominant inrenewable energy generation. India’s energy future will not just be shaped by thecentral grid and large-scale gen scale generating facilities fuelling industrial growth but also bythe goal of increasing the well being of India’s poor populations by providing well-beingelectricity access to the approximately 400 million citizens without. The Governmentof India recognizes that development of local, renewable resources is critical to resourcesensure that India is able to meet social, economic, and environmental objectives andhas supported the development of renewable energy through several policy actions.Energy planning in India is taking place in the context of climate c changenegotiations. India participates in the international climate negotiation process, haspledged to reduce its economy’s greenhouse gas (GHG) intensity, and has pledgedthat its per capita emissions will not exceed those of developed nations. India hasimplemented a National Action Plan on Climate Change (NAPCC), which suggestedthat 15% of energy could come from renewable sources by 2020. The NAPCC haseight National Missions, one of which is focused specifically on renewable energy:The Jawaharlal Nehru National Solar Mission (JNNSM). India is an active participant ruof the Clean Development Mechanism (CDM) with the second largest number ofprojects registered among all countries participating, the majority of which arerenewable energy projects.The electricity intensity of the Indian economy the percentage growth of electricity he economy—theconsumption that correlates with 1% of economic growth fell from approximately growth—fell3.14% in the 1950s to 0.97% in the 1990s.11 In 2007, it was at 0.73%. The mainreason for this reduction is that India’s growth until now was based more on the sservice sector (with an electricity intensity of only 0.11%) than on growth in industrialproduction (with an electricity intensity of 1.91%).12 Today, for each 1% of economicgrowth, India needs around0.75% of additional energy.13 The Planning Commission of India, which coordinatesIndian long-term policy, analyzes different scenarios; one scenario assessed that this termvalue could fall to 0.67% between 2021 2021–2022 and 2031–2032.14 India is fac 2032.14 facing aformidable challenge to build up its energy infrastructure fast enough to keep pacewith economic and social changes. Energy requirements have risen sharply in recentyears, and this trend is likely to continue in the foreseeable future. It is driven byIndia’s strong economic and population growth as well as by changing lifestylepatterns. Growth and modernization essentially follow the energy intensive Western energy-intensivejaro education
  • 19. PROJECT REPORT: Challenges & Opportunities For 19 “Renewable energy in Indian Perspective Renewable Perspective”model of the 19th and 20th centuries, in which economic growth correlates with acomparable growth in the energy use. eFor GDP annual growth of 8%, the Planning Commission estimates that thecommercial energy supply would have to increase at the very least by three to fourtimes by 2031–2032 and the electricity generation capacity by five to six times over 20322003–2004 levels.15 In 2031 2032, India will require approximately 1,500 2004 2031– 1,500–2,300million tonnes of oil equivalent (MTOE) to cover its total commercial energy needs.16The Indian government by itself does not have sufficient financial resou resources to solvethe problem of energy shortages. It must rely on cooperation with the private sectorto meet future energy requirements. This opens up interesting market opportunitiesfor international companies.2.1 Commercial Energy ConsumptionIndia’s share of the global commercial energy19 consumption in 2008 was 3.8% re(433 of 11,295 MTOE), increased from 2.9% over the past 10 years, thus making itthe fifth largest consumer of commercial energy. By comparison, China holds 19.6%of the population and consu consumes 17.7% of commercial energy. Figure 3: Worldwide consumption of primary sources of energy by country (2008)jaro education
  • 20. PROJECT REPORT: Challenges & Opportunities For 20 “Renewable energy in Indian Perspective Renewable Perspective”India’s total consumption of commercial energy increased from 295 MTOE in theyear 2000 to 433 MTOE in 2008 with an average annual growth rate of 4.9% Coal isby far the most important energy source for India; it provides more than half of thecommercial energy supply. Oil, mostly imported, is the second most importantsource of energy, followed by gas and hydropowe (see Figure 1-4). So far, nuclear hydropower 4).(atomic) power covers only a small portion of the commercial energy requirement(approximately 1.5%). With less than 1%, renewable energy plays a minor role (thisdoes not include hydro > 25 MW), and therefore, it is not even visible in Figure 1 1-3,though its share is projected to increase significantly. The traditional use of biomass(e.g., for cooking) has not been included here as a source of energy. However, the2001 Census points out that approximately 139 million of the total 194 millionhouseholds22 in India (72%) are using traditional forms of energy such as firewood,crop residue, wood chips, and cow dung cakes for cooking.23 The majority of thesehouseholds are in rural areas. Firewood, used by approximately 101 millionhouseholds, is the main cooking fuel in India. Figure 4: Percentage share of commercial energy sources in India2.2 The Power Market in India and the Role of Renewable EnergyWhile India has been making progress in different infrastructural areas such as theconstruction of roads and expansion of the telecommunication system, the powerjaro education
  • 21. PROJECT REPORT: Challenges & Opportunities For 21 “Renewable energy in Indian Perspective Renewable Perspective”infrastructure has not kept pace with the growing requirements. India’s power marketis confronted with major challenges regarding the quantity as well as the quality of ontedthe electricity supply. The base load capacity will probably need to exceed 400 GW base-loadby 2017. In order to match this requirement, India must more than double its totalinstalled capacity, which as of March 2010 was 159 GW.25 Moreover, India’s power acity,sector must ensure a stable supply of fuels from indigenous and imported energysources, provide power to millions of new customers, and provide cheap power fordevelopment purposes, all while reducing emissions. On the quality side, the whileelectricity grid shows high voltage fluctuations and power outages in almost all partsof the country on many days for several hours.26 According to the “GlobalCompetitiveness Report,” in 2009 2009–2010 (weighted average), India ranked 110 edamong 139 countries in the category “Quality of Electricity Supply.”27 The powerdeficit reported for 2008–2009 was almost 84 TWh, which is almost 10% of the total 2009requirement; the peak demand deficit was more than 12.7% at over 15 GW.28 The overelectricity undersupply in India is estimated to cost the economy as much as INR 34(USD 0.68) to INR 112 (USD 2.24) for each missing kilowatt hour. Thus, the total kilowatt-hour.cost of the power deficit of 85 billion kWh in financial year 2007 2008 amo 2007–2008 amounted to atleast INR 2,890 billion (USD 58 billion), or almost 6% of the GDP.29 Another reportstates that there is an approximately 7% decrease in the turnovers of Indiancompanies due to power cuts.30 As a consequence, many factories, businesses,and private customers have set up their own power generation capacities in the form ivateof captive power plants or diesel generators in order to ensure their power supply.This provides an attractive opportunity for renewable energy solutions; they competenot with power produced relatively cheaply by large coal plants but with much moreexpensive diesel back-up up generators. Until 1991, the Indian governmentmonopolized the power market. There were only a few private actors, and the CEAhad sole responsibility for giv giving techno-economic clearance to new plants. economicHowever, the public sector has been unable to cater to the growing demand forpower, and in the future, investment requirements in the public sector will far exceedthe resources. Current energy policies therefore place an emphasis on the thereforeintegration of the private sector along the entire value chain: from the generation ofpower to transmission and distribution.jaro education
  • 22. PROJECT REPORT: Challenges & Opportunities For 22 “Renewable energy in Indian Perspective Renewable Perspective”The Electricity Act 2003 displaced former energy laws and expanded themcomprehensively.31 The aim of the act was the modernization and liberalization of 31the energy sector through the implementation of a market model with differentbuyers and sellers. The main points included making it easier to constructdecentralized power plants, especially in rural areas and for captive use by especiallycommunities, and giving power producer’s free access to the distribution grid toenable wheeling. Producers could also choose to sell power directly to consumersrather than through the financially weak State Electricity Boards (SEBs). Through the ElectricityElectricity Act, the different legal frameworks are to be unified at a state level topromote foreign direct investment in the country. Given the long term energy deficit long-termand the growth trajectory of the Indian economy, the Indian investment communityhas responded positively. However, international investors are still hesitant. Thelargest barrier to more foreign private investment in the energy market is the energyprice itself. In many customer sections and regions, they are too low to generate arestable and attractive returns. Despite being an impractical drain on resources, thegovernment has so far failed to adjust prices. The key reason is that cheap or freeelectricity is an important political token in a country where the majority of the thepopulation still lives on a very low income.2.3 Power ConsumptionIndia’s average power consumption per person was 733 kWh in 2009, and theaverage annual rate of increase since 2003 was 4.4%, 33 as shown in Figure Figure 5 :Per capita annual electricity consumption in Indiajaro education
  • 23. PROJECT REPORT: Challenges & Opportunities For 23 “Renewable energy in Indian Perspective Renewable Perspective”In 2008, a total of 596,943 GWh were consumed in India. The largest consumer wasindustry with 274,531 GWh (46%), followed by households with 124,562 GWh(21%), and agriculture with 107,835 GWh (18%). In the commercial sector (e.g., tureoffices and shops), 48,047 GWh (8%) were consumed, 11,615 GWh (2%) in railtraffic, and 30,353 GWh (5%) in various other sectors. Figure 6 : India electricity consumption sector-wise (utilities & non-utilities, 2008 utilities, 2008–2009)Between 1980 and 2009, energy consumption increased by almost seven times from85,334 GWh to 596,943 GWh, which corresponds to an average annual growth rateof approximately 7.1%. The strongest increase was the consumption by privatehouseholds, which increased by almost 14 times since 1980 at an average annualgrowth rate of 10%. The reason for this increase was the inclusion of several millionnew households, corresponding to the increase in electrical household appliances electricalsuch as refrigerators and air conditioners. The agricultural share increased seven seven-fold at an annual growth rate of 7.6% between 1980 and 2008. The reason for astrong growth in the agricultural sector is, first, the inclusion of more rural areas, and inclusionsecond, the provision of power to farmers at reduced, or even frees rates in many frees,areas. The consequence of this latter practice was the widespread purchase ofcheap and inefficient water pumps that continue to run almost uninterrupted. Theslowest growth in power consumption was seen in the industrial sector at 5.9% perjaro education
  • 24. PROJECT REPORT: Challenges & Opportunities For 24 “Renewable energy in Indian Perspective Renewable Perspective”year, which still corresponds to a five fold increase.37 The main drivers for the five-foldstrong growth in the demand for power are the overall economic growth, the power power-intensive manufacturing industry that is growing disproportionately fast, the rapidlyrising consumption in households due to the affordability of new electricalappliances, the planned provision of power to 96,000 currently un electrified villages, un-electrifiedand the provision of power for latent demand, which is currently unfulfilled becauseof frequent power cuts.2.4 Power Generation CapacityThe total power generation capacity in India in March 2010 was 159 GW. Of this,64.3% was fossil-fuel-fired power plants (coal, gas, and diesel), 23.1% hydropower, fired2.9% nuclear power, and 9.7% renewable energ energy. (Renewable energy includes small hydropower plants (< 25 MW), biomass gasification, biomass Renewable energy, urban and industrial waste energy, solar energy, and wind energy energy) Figure 7 : Installed capacities for power generation in India according to energy source (March 2010)The composition of the power sector has changed significantly in the last 30 years.The power generation capacity controlled directly by the central government hasincreased from 12% to 32%. At the same time, the fraction of generation capacity thecontrolled by the individual states fell from 83% to 50%. Generation capacitycontrolled by the private sector more than tripled from 5% to 18%. The private sectordominates in power generation from renewable energy sourc sources.jaro education
  • 25. PROJECT REPORT: Challenges & Opportunities For 25 “Renewable energy in Indian Perspective Renewable Perspective” (Includes small hydropower plants (< 25 MW), biomass gasification, biomass energy, urban and Includes industrial waste energy, solar energy, and wind energy energy) Figure 8 : Percentage of public and private sector power generation capacityThe National Electricity Policy (NEP) assumes that the per capita electricityconsumption will increase to 1,000 kWh by 2012. To cover this demand, thegovernment is planning to add 78,700 MW of capacity during the Eleventh Five 78,700 Five-YearPlan43 (Eleventh Plan) ending March 2012. As of April 2010, 22,552 MW of newinstallation toward that goal had been achieved. There are further projects underconstruction with a total capacity of 39,822 MW. A per the mid-term plan review, As termcapacity additions of 62,374 MW are likely to be achieved with a high degree ofcertainty and another 12,000 MW with best efforts.44 Figure 1 shows India’s 1-9capacity growth from the end of the Eighth Plan in 1997 to project projections through theend of the Eleventh Plan.jaro education
  • 26. PROJECT REPORT: Challenges & Opportunities For 26 “Renewable energy in Indian Perspective Renewable Perspective” Figure 9 : Development of installed electrical capacities of utilities and non utilities in India non-utilitiesFigure shows the technology breakdown of the 78,700 MW targeted in the EleventhPlan. The largest share of 59,693 MW is to be provided by thermal power plants.Additionally, 15,627 MW is to be provided by hydro and 3,380 MW by nuclear power.The central government undertakings, such as those of the National Thermal PowerCorporation or the National Hydro Power Corporation, will contribute the most. r Figure 10 : Forecast growth in capacity by the end of the Eleventh Plan according to sector (2012)jaro education
  • 27. PROJECT REPORT: Challenges & Opportunities For 27 “Renewable energy in Indian Perspective Renewable Perspective”In March 2009, the gross electricity generation48 by utilities in India was 746.6 TWh. utilitiesIn addition, 95.9 TWh was generated by non utilities and another 5.9 TWh were net non-utilitiesimports.The total generation available was thus 848.4 TWh, which corresponds to a rise of3.3% as compared to the previous year.49 As these figures show, the trend in figuresgrowth rates is inadequate in view of the rapid increase in demand for power. Figure 11 : Power Generation GrowthElectricity Generation Efficiency Conventional thermal power generation in Indiafaces three main challenges:1. The low average conversion efficiency of the plants (30%).2. The low quality of the coal itself, which has high ash content and a low calorificvalue (3,500–4,000 kcal/kg).51 4,0003. The fixed electricity off-take price, which does not reward efficiency gains. takeIt is estimated that at least 25% 25%–30% of the capacity in power plants in India is old nand inefficient and operates at high heat rates and low utilization levels.52 Toovercome these challenges, the Indian government has implemented acomprehensive program that includes a large scale renovation and modernizatio large-scale modernizationjaro education
  • 28. PROJECT REPORT: Challenges & Opportunities For 28 “Renewable energy in Indian Perspective Renewable Perspective”(R&M) program for existing power plants, the promotion of supercritical technologyfor Ultra Mega Power Projects at pithead locations, the promotion of use of importedhigher quality coal (from South Africa, Australia, and Indonesia) for coastal location locations,the set-up of coal washing facilities for domestic coal, and the promotion of an IGCC uptechnology for gas plants. Also, new power plant projects are being awarded via acompetitive bidding process based on the lowest price offer for electricity sold to t thegrid. Since 1985, nearly 400 units (over 40 GW) have been serviced through theR&M program. According to The Energy and Resources Institute (TERI), R&M couldimprove electricity generation by 30%, reduce emissions by 47%, and increaseenergy conversion efficiency by 23%.53 The R&M program currently faces twochallenges to successful completion. First, the rising electricity demand makes itdifficult to take plants off the grid for maintenance work. Second, sometimes thecosts to repair or upgrade old power generation equipment exceed 50% of the costs powerof an entirely new plant. In such cases, repair is not economically viable. However,given the rising demand, such plants cannot be taken off the grid either. Althoughmany newer, privately operated plants are more efficient than state are state-owned plants,there is still a technology deficit across the power generation sector, mainly withrespect to the latest supercritical technology. The performance of India’s existingsupercritical power plants has so far failed to meet expectations.54 This presents a togreat opportunity for international technical cooperation.3.0 THE STATUS OF RENEWABLE ENERGY IN INDIAIndia has over 17 GW of installed renewable power generating capacity. Installedwind capacity is the largest share at over 12 GW, followed by small hydro at 2.8 GW.The remainder is dominated by bio energy, with solar contributing only 15 MW. TheEleventh Plan calls for grid connected renewable energy to exceed 25 GW by 2012. grid-connectedJNNSM targets total capacity of 20 GW grid-connected solar power by 2022. connectedRenewable energy technologies are being deployed at industrial facilities to providesupplemental power from the grid, and over 70% of wind installations are used forthis purpose. Biofuels have not yet reached a significant scale in India. India’sMinistry of New and Renewable Energy (MNRE) supports the further deployment ofrenewable technologies through policy actions, capacity building, and oversight oftheir wind and solar research institutes. The Indian Renewable Energy Development RenewableAgency (IREDA) provides financial assistance for renewable projects with fundingjaro education
  • 29. PROJECT REPORT: Challenges & Opportunities For 29 “Renewable energy in Indian Perspective Renewable Perspective”from the Indian government and international organizations; they are alsoresponsible for implementing many of the Indian government’s renewable ener energyincentive policies. There are several additional Indian government bodies withinitiatives that extends into renewable energy, and there have been several majorpolicy actions in the last decade that have increased the viability of increaseddeployment of renewable technologies in India, ranging from electricity sector reformto rural electrification initiatives. Several incentive schemes are available for thevarious renewable technologies, and these range from investment investment-orienteddepreciation benefits to generation oriented preferential tariffs. Many states are now generation-orientedestablishing Renewable Purchase Obligations (RPOs), which has stimulateddevelopment of a tradable Renewable Energy Certificate (REC) program.3.1 Renewable Energy Share of ElectricityAs of June 2010, India was one of the world leaders in installed renewable energycapacity, with a total capacity of 17,594 MW (utility and non non-utility),58 whichrepresents approximately 10% of India’s total installed electric generatingcapacity.59 Of that total, 17,174 MW were grid connected projects, and the hat grid-connectedremaining 2.4% of installed renewable capacity consisted of off grid systems.60 The off-gridwind industry has achieved the greatest success in India with an installed capacity of12,009 MW at the end of June 2010. India has also installed 2,767 MW of small Junehydro plants (with sizes of less than 25 MW each), 1,412 MW of grid grid-connectedcogeneration from bagasse, and 901 MW of biomass based power from agro biomass-basedresidues. Waste-to-energy projects have an installed capacity of 72 MW. India has energy capacityoff-grid renewable power capacities of 238 MW from biomass cogeneration, 125 MW gridfrom biogas, 53 MW from waste energy, 3 MW from solar PV plants, and 1 MW waste-to-energy,from hybrid systems.With the recently announced JNNSM described in Chapter 4, India hopes to develop Chaptermore of its solar resource potential. As of June 2010, solar PV plants in India hadreached a cumulative generation capacity of approximately 15.2 MW. This isapproximately 0.07% of JNNSM’s 2022 target of 22 GW.62 As reported by CSPToday, JNNSM’s goal would “make India the producer of almost three , three-quarters ofthe worlds total solar energy output.”63 By the end of the Tenth Plan (2007), Indiaachieved a cumulative installed capacity of 10.161 GW of renewable energy (seeTable 2-1). Additions totaling 15 GW are targeted during the Eleventh Plan to bring 1).the total installed grid-connected renewable generating capacity to over 25 GW. connectedjaro education
  • 30. PROJECT REPORT: Challenges & Opportunities For 30 “Renewable energy in Indian Perspective Renewable Perspective”Wind energy is expected to contribute approximately two thirds of the added two-thirdscapacity in this plan period. If India is able to achieve its renewable energy goals by2022 (by the end of the Thirteenth Plan), it will reach a total of 74 GW of installedcapacity for wind, solar energy, biomass, and small hydropower, with wind and solarexpected to account for more than 80% of the installed renewable power.Table 1: Table Development of Grid-connected Renewable Power in India (in MW) connected Achieved In Process Anticipated Targets Five-year By the End of 10th Plan Anticipated By the End of By the End of Plan the 9th Plan (additions in the 11th the 11th Plan the 13th Plan (cumulative during Plan (cumulative (cumulative installed plan (additions installed installed capacity) period) during plan capacity) capacity) period) Years Through 2002 - 2007 - 2012 Through 2012 Through 2002 2007 2022 Wind 1,667 5,415 10,500 17,582 40,000 Small 1,438 520 1400 3,358 6,500 Hydro Biomass 368 750 2,100 3,218 7,500 Solar 2 1 1,000 1,003 20,000 Total 3,475 6,686 15,000 25,161 74,000Although the government provides assistance for renewable energy implementationin the form of generation-based incentives (GBIs), subsidies, subsidized credits, and basedreduced import duties, the Indian market does not offer investors a framework that isas investor-friendly as in some developed countries. The main reason is that friendlyrenewable energy sources are not systematically prioritized over non non-renewablesources at a given national budget and a given power demand scenario. While themarket certainly offers great opportunities for investors, it also requires adaptationand entrepreneurship to develop solutions that specifically fit the Indian scenario.Off-grid applications for rural electrification and captive power for industries offer a gridpromising opportunity for renewable energy technologies in India. Both of these tyapplications can benefit from renewable energys advantages over conventionalenergy sources: local control of the energy resource and power system andjaro education
  • 31. PROJECT REPORT: Challenges & Opportunities For 31 “Renewable energy in Indian Perspective Renewable Perspective”suitability to smaller-scale applications. Renewable energys competition is typically scaleeither a costly connection to the national grid or diesel generator based power with generator-basedits high maintenance and fuel costs. On average, the cost of producing power for acoal plant is about INR 2 (USD 0.03) per kWh, while electricity from a diesel kWh,generator plant is approximately INR 10 (USD 0.20) per kWh To compete effectively kWh.with these established technologies, renewable energy technologies requirebusiness models adapted to the characteristics of renewable powe plants that powerinclude plans for efficient marketing, distribution, operation and maintenance, andaccess to financing. For on grid application of renewable energy, growth depends on on-gridgrid infrastructure improvements and the continued reduction of renewable energycosts. Currently, wind, small hydro, and biomass are the most cost cost-competitiverenewable options. Solar technologies, including concentrated solar power (CSP)and PV, are the least competitive but offer the greatest opportunity for growthbecause of the high potential. It therefore receives the most financial support interms of government incentives. Energy Type Electricity Source Generation Costsin INRIkWh (USDIkWh) Coal 1—2 (0.02—0.04) 1 IIcKinsey - Powering India Nuclear 2—3 (0.04—0.06) 2 McKinsey - Powering India Large Hydro 3-4 3 (0.06—0.08) IbicKinsey - Powering India Gas 4—6 (0.08—0.12) 4 McKinsey - Powering India Diesel 10+ (0.20+) McKinsey - Powering India Wind (on-shore) 3—4.5 (006—0.09) 3 Industry experts Small Hydro 3—4 006—0,08 3 Industry experts Biomass 4—5 (0.06—0.10) 4 Industry experts Solar (CSP) 10—15 (0.20—0.30) 10 Industry experts Solar (PV) 12—20 (0.24—0.40) 12 Industry experts Table 2 : Table Power Generation Costs in India by Energy Source 20083.2 Renewable Energy Application in Industrial Use and TransportationA large percentage of renewable energy in India is covered under captive generationfor industrial use. This is especially true in the wind market where 70% of electricityfrom wind projects is produced for direct consumption by large industrial facilities to smitigate the effect of frequent shortages of electricity from the national grid.jaro education
  • 32. PROJECT REPORT: Challenges & Opportunities For 32 “Renewable energy in Indian Perspective Renewable Perspective”Telecommunications companies are also looking toward renewable energy as theysearch for new solutions to power India’s 250,000 telecom towers. Systems such as osolar PV-based hybrid systems provide a less polluting alternative to diesel power, basedserve as a hedge against increasing diesel fuel prices, and help minimize thelogistical challenges of transporting and storing diesel fuel at remote tower locations.For the last 2 years, solar cooling has been a buzzword in the industry. While itsattraction in a country as sunny and hot as India is obvious, the technology is stillunder development and is not yet economically viable. There are, however, some yetdemonstration sites such as the Muni Seva Ashram in Gujarat, which uses parabolicScheffler-type dishes to supply a 100 ton air-conditioning system. type 100-For the last 2 years, solar cooling has been a buzzword in the industry. While its inattraction in a country as sunny and hot as India is obvious, the technology is stillunder development and is not yet economically viable. There are, however, somedemonstration sites such as the Muni Seva Ashram in Gujarat, whic uses parabolic whichScheffler-type dishes to supply a 100 ton air-conditioning system.68 On the type 100- conditioningtransportation front, there have been initiatives to switch to alternative transportationfuels such as compressed natural gas and electricity. The Reva, develope by the developedMaini Group, is India’s—and one of the world’s first commercially available electric and world’s—firstcar. TATA and General Electric are also in the process of developing electricvehicles. In addition, highly visible pilot projects are deployed to increase publicinterest in renewable energy technologies. The October 2010 CommonwealthGames in New Delhi are showcasing renewable energy for transportation and otheruses including the utilization of at least 1,000 solar rickshaws, which use PV PV-powered motors for transporting athletes at the games.69 Also, a 1 MW PV plant will sportingprovide electricity for one of the stadiums at the games.70 Liquid bio fuels, namelyethanol and biodiesel, are considered substitutes for petroleum- petroleum derivedtransportation fuels. In India, ethanol is produced by the fermentation of molasses, a ethanolby-product of the sugar industry, but more advanced conversion technologies are productunder development, which will allow it to be made from more abundantlignocelluloses biomass resources such as forest and agricultural residues. Biodiesel agriculturalproduction is currently very small, using non edible oilseeds, waste oil, animal fat, non-edibleand used cooking oil as feedstock. However, given the fact that India consumesmore diesel than gasoline in the transportation sector, it is expected that thejaro education
  • 33. PROJECT REPORT: Challenges & Opportunities For 33 “Renewable energy in Indian Perspective Renewable Perspective”production of biodiesel and other biomass derived diesel substitutes will grow over biomass-derivedthe next decade.3.3 Grid Connection and Status OverviewIn March 2009, the Indian power network had a total length of 7.49 million circuitkilometres (ckm).91 In comparison to the power generation sector, investments intothe transmission and distribution networks have been lower in recent years.Nevertheless, the transmission network has improved considerably. The distributionnetwork, however, remains in a poor state. In the ongoing Eleventh Plan, the high er, high-voltage network is to be extended by around 95,000 ckm to a capacity of more than178,000 mega volt amperes (MVA). In the low voltage area, an additional 3,253,773 low-voltageckm and a capacity of 214,000 MVA are to be added. Another extremely important 4,000task is the “Power for All by 2012” mission,92 declared by the Government of India India—the ambitious goal of providing power to all Indian villages by 2012, to a large extentthrough grid access.3.4 Tradable Renewable Energy Credits bleNaturally, the availability of renewable energy sources differs across India. In somestates, such as Delhi, the potential for harnessing renewable energy compared to thedemand for energy is very small. In other states, such as Tamil Nadu for wind,Rajasthan for solar, or Himachal Pradesh for hydro, it is very high. This offersopportunities for inter-state trading in the form of RECs. Such trade allows for more stateeconomically efficient development of renewable energy throughout the country asdistribution licensees in states with limited resources can purchase RECs associatedwith renewable generation in other states where it is less expensive to developrenewable energy projects. In this way, each state’s RPO can be met in the mosteconomically efficient manner. In January 2010, CERC announced the terms andconditions for a tradable REC program as follows:• “There will be a central agency, to be designated by CERC, for registering REgenerators participating in the scheme.• The renewable energy generators will have two options either sell the renewableenergy at a preferential tariff fixed by the concerned Electricity RegulatoryCommission, or sell the electricity generation and environmental attributesassociated with RE generation separately. eration• On choosing the second option, the environmental attributes can be exchanged inthe form of REC. Price of the electricity component would be equivalent to thejaro education
  • 34. PROJECT REPORT: Challenges & Opportunities For 34 “Renewable energy in Indian Perspective Renewable Perspective”weighted average power purchase cost to the distribution company, including short-term power purchase but excluding renewable power purchase cost.• The central agency will issue the REC to renewable energy generators.• The value of one REC will be equivalent to 1 MWh of electricity delivered to the gridfrom renewable energy sources. nergy• The REC will be exchanged only in the power exchanges approved by CERCwithin the band of a floor price and a forbearance (ceiling) price to be determined byCERC from time to time.”95 CERC issued an amendment to the terms in September2010 clarifying participation of captive generation plants and restricting participation 10of any generator terminating an existing PPA to sell power under the REC scheme.The two paths under which renewable power will be sold under the REC programare illustrated in Figure. Figure 12 : Route for sale of renewable energy generation4.0 VARIOUS SOURCE OF RENEWABLE ENERGY OPPORTUNITIES ININDIAThere is an urgent need for transition from petroleum based energy systems to one petroleum-basedbased on renewable resources to decrease reliance on depleting reserves of fossilfuels and to mitigate climate change. In addition, renewable energy has the potentialto create many employment opportunities at all levels, especially in rural areas. An ateemphasis on presenting the real picture of massive renewable energy potential, itjaro education
  • 35. PROJECT REPORT: Challenges & Opportunities For 35 “Renewable energy in Indian Perspective Renewable Perspective”would be possible to attract foreign investments to herald a Green Energy Revolutionin India.India is facing an acute energy scarcity which is hampering its industrial growth andeconomic progress. Setting up of new power plants is inevitably dependent on importof highly volatile fossil fuels. Thus, it is essential to tackle the energy crisis throughjudicious utilization of abundant the renewable energy resources, such as biomassenergy, solar energy, wind energy and geothermal energy. Apart from augmenting .the energy supply, renewable resources will help India in mitigating climate change.India is heavily dependent on fossil fuels for its energy needs. Most of the powergeneration is carried out by coal and mineral oil based power plants which contribute oil-basedheavily to greenhouse gases emission.The average per capita consumption of energy in India is around 500 W, which is energymuch lower than that of developed countries like USA, Europe, Australia, Japan etc.However, this figure is expected to rise sharply due to high economic growth andrapid industrialization. The consumption of electricity is growing on the worldwide electricitybasis. Energy is a necessity and sustainable renewable energy is a vital link inindustrialization and development of India. A transition from conventional energysystems to those based on renewable resources is necessary to meet the ever-increasing demand for energy and to address environmental concerns.4.1 SolarIndia has huge untapped solar offgrid opportunities, given its ability to provide energyto vast untapped remote rural areas, the scope of providing backup power t cell totowers and its inherent potential to replace precious fossil fuels, said a solarequipment company.The off-grid opportunities are significant, given the cost involved in offgrid gridapplications when compared to huge financial investments to be made to set upgrids.Moreover, specific government incentives to promote off grid applications, rapidexpansion of wireless telecom and telecom companies desire to reduce operatingcost for base stations (due to diesel cost and losses in diesel pilferage) are a alsoexpected to prompt growth in off off-grid opportunities.The potential of replacing huge usage of kerosene used for lighting rural homesmakes off-grid applications desirable. Off grid PV application examples include grid Off-gridremote village electrification, power irrigation pump sets, telecom towers, backupjaro education
  • 36. PROJECT REPORT: Challenges & Opportunities For 36 “Renewable energy in Indian Perspective Renewable Perspective”power generation, captive power generation and city, street, billboard and highway ion,lighting.India already has the worlds best solar resources and can position itself to be globalleader in Solar PV. To meet energy demands, the government has approved theJawaharlal Nehru National Solar Mission, aimed at generating 20,000 MW by 2022. rlalIndias Jawaharlal Nehru National Solar Mission (JNNSM), a major initiative of thegovernment of India, has set itself a goal of creating an enabling policy framework fordeploying 20GW of solar power by 2022. Indias objectives and intentions are 0GWcommendable. Yet, as we have seen globally, once governments announce theirintentions to develop a solar incentive program – a variety of interest groups, eachwith their own agenda, get involved to put their stamp on the policy. The final output involvedof the recently released policy guidelines reflects both the overarching objectives ofdeveloping clean solar power, addressing power shortages and stakeholderconcessions.This is our preliminary perspective on the recently released guidelines for new grid grid-connected solar power projects in India. In the future, we will take further in in-depthlooks at specific policy aspects and India’s opportunities and challenges as themarket develops.4.1.1 Solar energy potentialIndia is located in the equatorial sun belt of the earth, thereby receiving abundantradiant energy from the sun. The India Meteorological Department maintains anationwide network of radiation stations, which measure solar radiation, an also the anddaily duration of sunshine. In most parts of India, clear sunny weather is experienced250 to 300 days a year. The annual global radiation varies from 1600 to 2200 2kWh/m , which is comparable with radiation received in the tropical and sub-tropicalregions. The equivalent energy potential is about 6,000 million GWh of energy peryear. Figure 1 shows map of India with solar radiation levels in different parts of thecountry. It can be observed that although the highest annual global radia radiation isreceived in Rajasthan, northern Gujarat and parts of Ladakh region, the parts ofAndhra Pradesh, Maharashtra, Madhya Pradesh also receive fairly large amount ofradiation as compared to many parts of the world especially Japan, Europe and theUS where development and deployment of solar technologies is maximum. erejaro education
  • 37. PROJECT REPORT: Challenges & Opportunities For 37 “Renewable energy in Indian Perspective Renewable Perspective” Figure 13: Solar radiation on India4.1.2 Solar thermal power generation technologiesSolar Thermal Power systems, also known as Concentrating Solar Power sys systems,use concentrated solar radiation as a high temperature energy source to produceelectricity using thermal route. Since the average operating temperature of stationary 0non-concentrating collectors is low (max up to 120 C) as compared to the desirable concentrating 0input temperatures of heat engines (above 300 C), the concentrating collectors areused for such applications. These technologies are appropriate for applicationswhere direct solar radiation is high. The mechanism of conversion of solar toelectricity is fundamentally similar to the traditional thermal power plants except useof solar energy as source of heat. In the basic process of conversion of solar into heat energy, an incident solarirradiance is collected and concentrated by concentrating solar collectors or mirrors, collectorsand generated heat is used to heat the thermic fluids such as heat transfer oils, air orwater/steam, depending on the plant design, acts as heat carrier and/or as storagemedia. The hot thermic fluid is used to generated steam or hot gases, which are then gases,used to operate a heat engine. In these systems, the efficiency of the collectorreduces marginally as its operating temperature increases, whereas the efficiency ofthe heat engine increases with the increase in its operating temperat temperature.jaro education
  • 38. PROJECT REPORT: Challenges & Opportunities For 38 “Renewable energy in Indian Perspective Renewable Perspective”4.1.2.1 Concentrating solar collectorsSolar collectors are used to produce heat from solar radiation. High temperaturesolar energy collectors are basically of three types;a. Parabolic trough system: at the receiver can reach 400° C and produce steam for generating electricity.b. Power tower system: The reflected rays of the sun are always aimed at the receiver, where temperatures well above 1000° C can be reached.c. Parabolic dish systems: Parabolic dish systems can reach 1000° C at the ic receiver, and achieve the highest efficiencies for converting solar energy to electricity.4.1.2.2 Solar chimneyThis is a fairly simple concept. Solar chimney has a tall chimney at the center of thefield, which is covered with glass. The solar heat generates hot air in the gap sbetween the ground and the gall cover which is then passed through the centraltower to its upper end due to density difference between relatively cooler air outsidethe upper end of the tower and hotter air inside tower. While travelling up this air erdrives wind turbines located inside the tower. These systems need relatively lesscomponents and were supposed to be cheaper. However, low operating efficiency,and need for a tall tower of height of the order of 1000m made this technology a heightchallenging one. A pilot solar chimney project was installed in Spain to test theconcept. This 50kW capacity plant was successfully operated between 1982 to 1989.Figure 14 shows the picture of this plant. Recently, Enviro Mission Limited, an Recently,Australian company, has started work on setting up first of its five projects based onsolar chimney concept in Australia.The Luz Company which developed parabolic trough collector based solar thermalpower technology went out of business in 1990’s which was a major setback for the ntdevelopment of solar thermal power technology. Figure 14 14:50 Kw Solar chimney pilot project, Manzanares, Spainjaro education
  • 39. PROJECT REPORT: Challenges & Opportunities For 39 “Renewable energy in Indian Perspective Renewable Perspective”4.1.3 Solar thermal power generation program of IndiaIn India the first Solar Thermal Power Plant of 50kW capacity has been installed byMNES following the parabolic trough collector technology (line focussing) atGwalpahari, Gurgaon, which was commissioned in 1989 and operated till 1990, afterwhich the plant was shut down due to lack of spares. The plant is being revived with edevelopment of components such as mirrors, tracking system etc. A Solar Thermal Power Plant of 140MW at Mathania in Rajasthan, has beenproposed and sanctioned by the Government in Rajasthan. The project configurationof 140MW Integrated Solar Combined Cycle Power Plant involves a 35MW solarpower generating system and a 105MW conventional power component and theGEF has approved a grant of US$ 40 million for the project. The Gove Government ofGermany has agreed to provide a soft loan of DM 116.8 million and a commercialloan of DM 133.2 million for the project.In addition a commercial power plant based on Solar Chimney technology was alsostudied in North-Western part of Rajasthan. The project was to be implemented in Westernfive stages. stIn the 1 stage the power output shall be 1.75MW, which shall be enhanced to35MW, 70MW, 126.3MW and 200MW in subsequent stages. The height of the solarchimney, which would initially be 300m, shall be increased gradually to 1000m. Cost increasedof electricity through this plant is expected to be Rs. 2.25 / kWh. However, due tosecurity and other reasons the project was dropped.BHEL limited, an Indian company in power equipments manufacturing, had built asolar dish based power plant in 1990’s as a part of research and development shprogram of then the Ministry of Non conventional Energy Sources. The project was Non-conventionalpartly funded by the US Government. Six dishes were used in this plant.Few states like Andhra Pardesh, Gujarat had prepared feasibility studies for solarthermal power plants in 1990’s. However, not much work was carried out later on.4.1.4 Opportunities for solar thermal power generation in IndiaSolar thermal power generation can play a significant important role in meeting the importantdemand supply gap for electricity. Three types of applications are possible 1. Rural electrification using solar dish collector technology 2. Typically these dishes care of 10 to 25 kW capacity each and use striling engine for power generation. These can be developed for village level erjaro education
  • 40. PROJECT REPORT: Challenges & Opportunities For 40 “Renewable energy in Indian Perspective Renewable Perspective” distributed generation by hybridizing them with biomass gasifier for hot air generation. 3. Integration of solar thermal power plants with existing industries such as paper, dairy or sugar industry, which has cogeneration units. stry, Many industries have steam turbine sets for cogeneration. These can be coupled with solar thermal power plants. Typically these units are of 5 to 250 MW capacities and can be coupled with solar thermal power plants. Thi This approach will reduce the capital investment on steam turbines and associated power-house infrastructure thus reducing the cost of generation of solar house electricity 4. Integration of solar thermal power generation unit with existing coal thermal power plants. The study shows that savings of up to 24% is possible during ts. 0 periods of high isolation for feed water heating to 241 C (4).4.1.5 PV & CSP RatioThe JNNSM calls for a total aggregated capacity of 1 gigawatt of grid connectedsolar projects to be developed under the bundling scheme in Phase through 2013. Phase-ISolar PV technology projects and Solar Thermal technology projects are to bedeployed at a ratio of 50:50, in MW terms. This provision is scheduled to bereviewed again in one year time to determine the need for modification. determineThe JNNSM is trying to encourage the development of both PV and CSPtechnologies by giving each equal weight. However, by allotting specific quotas foreach technology, the JNNSM is dictating the ratio of technology that ca be built canrather than allowing the market to select the most efficient and cost effectivetechnology for India. If CSP is deemed an unviable option for most developers andthere is a rush towards PV technology, it could create a situation where PVapplications are rejected due to oversubscription while CSP quotas are not filled. A cationsscenario like this can slow down solar development progress country country-wide andcause unwanted delay as the markets wait for this provision to be revisited. On aglobal scale, PV installations exceed CSP installations by a ratio of over 20 times.4.1.6 Domestic Content (PV)Solar PV Projects using crystalline silicon technology selected in the first batchduring FY2010-11 will be mandated to use modules manufactured in India. For Solar 11PV Projects selected in the second batch during FY2011 12, they will be required to FY2011-12,use cells and modules manufactured in India.jaro education
  • 41. PROJECT REPORT: Challenges & Opportunities For 41 “Renewable energy in Indian Perspective Renewable Perspective”The domestic content policy is intended to create incentives to develop domesticmanufacturing, investments and jo jobs.Thin film and CPV can still be procured from any vendor in the world and equipmentshortage should not be a problem as the allocation is so small compared tomanufacturing capacities. However, since the PV allocation is so small (150 MW in2010-11, and remaining in 2011 2012), it is not enough to realize gains from nd 2011-2012),economies of scale. Domestic content rules create unwanted attention from theWTO and trading partners. This puts Indian manufacturers in a delicate situation asthey still have to export to European countries as the Indian manufacturing capacityper year might be more than the 500MW allocated for PV over 3 years, not tomention that capacity could be cut even further if half the project developers chooseto use thin film. Ontario has enacted a similar policy and has been threatened by the enactedEU and Japan of possible legal challenge in the WTO due to the protectionist policy.Thus, the domestic content policy has the potential to hurt the Indian solar exportindustry as an unintended consequen consequence.The policy also creates uncertainty in the mind of investors as they are told to buyfrom manufacturers mandated by the JNNSM instead of allowing developers toselect panels based on the best prices and efficiencies available anywhere in theworld. This could be another cause for foreign investors to take a “wait and see” isapproach as the market in the first 3 years may not be attractive enough to warrantlarge investments.This also causes a high level of uncertainty and confusion due to the patchwork ofdomestic policy (2010-11 - crystalline silicon modules – domestic only, thin film andCPV can be imported, CSP – 30% of components other than land has to bedomestic); 2011-12 - crystalline silicon modules and cells – domestic only). Itappears that this provision is an attempt to please “all parties” and has made the ispolicy unnecessarily complicated to be implemented.4.1.7 Domestic Content (CSP)It is mandatory for project developers to ensure 30% of local content in all theirplants/installations for solar thermal technology. Land is excluded.This gives developers the advantage of procuring the main components of CSP fromanywhere in the world, while also creating a boost to domestic BOS vendors. Thatsaid, there is an uncertainty factor relating to BOS vendor products and quality asCSP has been non-existent in India. existentjaro education
  • 42. PROJECT REPORT: Challenges & Opportunities For 42 “Renewable energy in Indian Perspective Renewable Perspective”Our complete analysis on the entire set of guidelines, which include PhasingAllocation of Capacity, Number of Applications (PV and CSP), Technical Criteria forPV and CSP, Connectivity to the Grid, Selection of Projects based on Tariff(Bidding), the Role of States and the Role of Carbon Financing, can be found here.4.1.8 Jawaharlal Nehru National Solar MissionJNNSM promises to catapult India into becoming the Largest Mark for Solar MarketEnergy in the World. In fact, India’s Solar Energy sector has the potential to be thebiggest Energy Opportunity of the 21st century. Solar Energy in India is poised totake off in a exponential manner because of a unique confluence of favoura favourableSupply and Demand factors .India currently has less than 500 MW of Solar Energycapacity which accounts for less than 0.1% of India’s total electricity capacity. Thispicture is going to radically change over the next decade because of thefollowing factors. 1. India has very high insulation (solar radiation in layman language) which makes solar energy much cheaper to produce solar power in India compared to countries like Germany, Denmark etc. Germany despite receiving only 50% of India’s solar radiation has more than 9 GW of solar energy capacity already installed and is going to probably hit 14 GW by 2010 2010. 2. India has a huge electricity demand supply gap – Large parts of India regularly face blackouts for lack of electricity supply leading to huge monetary losses .It has been estimated that India suffers from more than 15 15-20% supply shortage in times of peak power. Major cities like Gurgaon regularly face 8 8-10 hours of power cuts in summer months. 3. Lack of power grid availability – Solar Energy is ideally su suited for providing power to those areas which don’t have power lines connecting it. Large parts of India don’t have electricity grid connectivity and it is cheaper to power them through solar energy rather than extending power lines 4. Increasing expensive and unreliable electricity supply - The rates of and electricity prices are going up rapidly each year due to a combination of factors like higher costs of fossil fuels, increasing capital expenditure by utilities and privatization of power. Not only is the power expensive, the quality and reliability of the supplied electricity is very poor. A study has found that poor farmers who receive “free electricity” in India are willing to pay for quality electricity supply rather than do with the “unreliable free power”jaro education
  • 43. PROJECT REPORT: Challenges & Opportunities For 43 “Renewable energy in Indian Perspective Renewable Perspective” 5. Solar Energy approaching Grid Parity – The costs of Solar Energy has been decreasing rapidly over the last 2 years. Despite solar energy prices being higher than other forms of electricity, it is expected that solar energy will equal that of grid prices in the next 5 years in most parts of the globe. Solar rid Energy is the only form of Energy whose cost trend has been declining over the long term while all other major forms of energy have seen their costs increasing. 6. Strong Support from the Govern Government – Solar Energy needs a push from the Government in terms of regulation and incentives as it is a costliest form of power currently. The Indian government through the Jawaharlal Nehru National Solar Mission has provided strong support to the growth of this industry. The government has set a target of 20 GW by 2022 with 1000 MW of solar power to be set up through private investment by 2013. CERC guidelines aims at providing 20% + returns to private investors through a higher guaranteed rate to electricity generate from solar power ( FIT) electricity 7. Solar Energy is a Non Polluting Green Form of Energy – The biggest Non-Polluting advantage for solar energy is that it is a non Carbon Dioxide emitting form of non-Carbon power .While other fossil fuel forms of Energy place have large unaccounte unaccounted costs in terms of pollution, health hazards, global warming and environmental destruction (BP Oil Spill), Solar along with other forms of Renewable Energy have none of these harmful effects. 8. Solar Energy is virtually Unlimited – While Coal, Gas, Oil are eventually going to be depleted over the next 20 100 years, Solar Energy is a virtually 20-100 unlimited source of energy. The amount of Solar Energy striking the earth is much more than humans will ever need.4.1.8 Solar Farming Potential in IndiaThe newest crop in India could be electricity from the sun. “Solar Farming” can helpchange India’s energy economy to clean and efficient renewable energy during theday when it is needed the most, create millions of jobs, and could help India achieveenergy independence and better national security. gyImagine a crop that can be harvested daily on the most barren desert and arid land,with no fertilizer or tillage, and that produces no harmful emissions. Imagine anenergy source so bountiful that it can provide many times more energy than we providecould ever expect to need or use. An hour’s worth of sunlight bathing the planetjaro education
  • 44. PROJECT REPORT: Challenges & Opportunities For 44 “Renewable energy in Indian Perspective Renewable Perspective”holds far more energy than humans worldwide consume in a year. You don’t have toimagine it — it’s real and it’s here. Solar energy is an abundant enormous resource ndantthat is readily available to all countries throughout the world, and all the space abovethe earth. It is clean, no waste comes from it, and it’s “free.”This “free” source of electricity can be used to supply the energy needs of homes,farms and businesses. Through the use of Photovoltaic (PV), ConcentratedPhotovoltaic (CPV) or Concentrated Solar Power (CSP), sunlight is converted intoelectricity that can provide power to businesses, homes, and drive motors.I firmly believe that, to meet all its energy needs, India should diversify its energy mixby accelerating the use of all forms of Renewable Energy technologies (includingPV, thermal solar, wind power, biomass, biogas, and hydro), and more proactivelypromote energy efficiency. However, in this article, I will only focus on the “Solar ciency.Farming Potential in India.” My previous article explores “How Concentrated Solar “HowPower (CSP) Technology Can Meet India’s Future Power Needs Needs”4.1.8.1 How to Implement Solar FarmingSome governments are providing huge grants or subsidies to fund community solarfarm projects as part of their energy programs. Solar farming can help advanceIndia’s use of renewable energy and help assure achievement of economicdevelopment goals. To successfully implement Solar Farming requires feed tariffs. successfully feed-inThis allows farmers to invest with the security of 20 to 25 year Government Grants.The energy from these farms is purchased directly by utilities, who often sign 10 to20 year energy purchase contracts with solar farm owners thereby securing low contracts low-costenergy for the end user.Solar farms will also play a vital role in reducing greenhouse gas emissions thatcontribute to global warming. Solar farming is truly environmentally friendly. Byinstalling solar farm equipment, you’ll also considerably boost the value of yourproperty – it’s a great selling point should you decide to sell your farm.4.1.8.2 The Future of Solar Farming in Modern IndiaIndia is blessed with a vast Solar Energy potential. About 5,000 trillion kWh of solar 5,000energy is incident over India every year. Each day most parts of the country receive4-7 kWh per square meter of land area5. India’s deserts and farm land are the 7sunniest in the world, and thus suitable for large scale power produc large-scale production. The IndianGovernment should embrace favourable tax structures and consider providingfinancial resources to fund projects to put up community solar farms as part of theirjaro education
  • 45. PROJECT REPORT: Challenges & Opportunities For 45 “Renewable energy in Indian Perspective Renewable Perspective”energy development programs. India can become the Saudi Arabia of clean SolarEnergy.Solar electricity could also shift about 90 percent of daily trip mileage from gasolineto electricity by encouraging increased use of plug in hybrid cars. For drivers in India plug-inthis means that the cost per mile could be reduced by one one-fourth (in today’s prices).A decline in solar panel prices over the last two years also has contributed toexponential increases in solar deployment worldwide and lower project costs. A newtechnology that also holds promise is Concentrated Photovoltaic (CPV). F First broughtto commercial operation in 2008, CPV uses a concentrating optical system thatfocuses a large area of sunlight onto the individual photovoltaic cells. This featuremakes CPV panels two to three times more efficient (approximately 40%) atconverting sunlight to electricity as compared to silicon based PV (15% to 20%) and rting silicon-basedthin films (9% to 13%). Figure 15: Efficiency Comparison of Solar TechnologiesMajor cost reductions will be realized through mass manufacturing. The steepincrease in system efficiency, combined with decreases in manufacturing costs cou couldlevelise the cost of energy for CPV at around $0.10/kWh by 2015. Various incentives eby Central and State governments, including tax credits and feed feed-in tariffs, canfurther reduce the cost. Cost reductions are so dramatic that Bloomberg recentlyreported solar energy could soon rival coal. The cost has become so competitiveduring peak times in Japan and California that the U.S. Department of Energy’s goalof $1 per watt for large projects by 2017 may happen a lot sooner. attjaro education
  • 46. PROJECT REPORT: Challenges & Opportunities For 46 “Renewable energy in Indian Perspective Renewable Perspective”In my opinion, all new energy production in India could be from renewable sourcesby 2030 and all existing generation could be converted to renewable energy by2050, if deployment is backed by the right enabling public policies.4.1.8.3 Farming Solar Energy in SpaceHarvesting solar power from space through orbiting solar farms sounds extremelyinteresting. The concept of solar panels beaming down energy from space has longbeen thought as too costly and difficult. Japanese researchers at the Institute for ostlyLaser Technology in Osaka have produced up to 180 watts of laser power fromsunlight. Scientists in Hokkaido have completed tests of a power transmissionsystem designed to send energy in micro microwave form to Earth.Japan has already started working towards its goal by developing a technology for a1-gigawatt solar farm, which would include four square kilometres of solar panels gigawattstationed 36,000 kilometres above the earth’s surface. The energy that will beproduced by the solar farm would be enough to supply power to nearly 400,000average Japanese homes.California’s next source of renewable power could be an orbiting set of solar panels,high above the equator that would beam electricity back to earth via a receivingstation in Fresno County. Sometime before 2016, Solaren Corp. plans to launch theworld’s first orbiting solar farm to provide a steady flow of electricity day and night.Receivers on the ground would take the energy – transmitted thr through a beam ofelectromagnetic waves – and feed it into California’s power grid. Pacific Gas andElectric Co. have agreed to buy power from a start up company to solve the growingdemand for clean energy.4.1.8.4 Future of Solar FarmingSolar energy represents a bright spot on India’s economic front. If India makes amassive switch from coal, oil, natural gas and nuclear power plants to solar andother renewable sources, it is possible that 100% of India’s electricity could be fromrenewable energy by 2050. Solar energy would require the creation of a vast region bleof photovoltaic cells in the Southwest and other parts of the country that couldoperate at night as well as during the day. Excess daytime energy can be stored invarious forms such as molten or liquid salt (a mixture of sodium nitrate and uchpotassium nitrate), compressed air, pumped hydro, hydrogen, battery storage, etc.,which would be used as an energy source during nighttimes hours.jaro education
  • 47. PROJECT REPORT: Challenges & Opportunities For 47 “Renewable energy in Indian Perspective Renewable Perspective”Solar Energy will be competitive with coal as improved and efficient solar cells, coalconcentrated photovoltaic (CPV) and concentrated solar power (CSP) enter themarket. I predict that solar farming advancements and growth would empowerIndia’s rural economies and companies will move their operations from urban areas operationsto rural areas due to cheaper land and labour within the solar belt.Solar Farming is a renewable source of energy and the greenest form of commercialenergy. Solar Energy has become the leading alternative to the costly and ecodisasters associated with fossil fuels. I urge the Government of India to acceleratethe country’s solar energy expansion plans and policies by implementinggovernment subsidies for residential solar power through renewable energy rebatesand feed-in tariffs. Solar Farming is a great concept for an efficient use of barren fs.land and to develop large utility scale solar energy farms to meet India’s economicdevelopment goals.For example, Google is investing $168 Million in the biggest Solar Farm ever. Whencompleted in 2013, the Mojave Desert mpleted Desert-based Ivan Pah Solar Electric Generating ahSystem will send approximately 2,600 megawatts of power to the grid, doubling theamount of solar thermal power produced in the U.S and generating enoughelectricity to power 140,000 California homes when operating at full capacity. 00I personally think there are no technological or economic barriers to supplying almost100% of India’s energy demand through the use of clean renewable energy fromsolar, wind, hydro and biogas by 2050. India needs a radical transformation ofenergy system to the efficient use of renewable energies, especially solar power.Solar Energy is a game-changing program for India. India must accelerate and changingencourage the domestic development of renewable energy now. It is a question of now.whether we have the societal and political will to achieve this goal to eliminate ourwasteful spending and dependence on foreign sources of energy. The IndianGovernment should provide favourable government policies to ease the perm permittingprocess and to provide start up capital to promote the growth of solar energy. State start-upand central governments should provide initiatives and other support in order toincrease solar power plant capacity. India could potentially increase grid grid-connectedsolar power generation capacity to over 200,000 MW by 2030, if adequate resourcesand incentives are provided. Solar energy is a Win Win situation for India and the Win-Winenvironment, and has the potential to power India’s economy, create millions of newjobs and change the face of India as a Green Nation.jaro education
  • 48. PROJECT REPORT: Challenges & Opportunities For 48 “Renewable energy in Indian Perspective Renewable Perspective”4.1.9 ChallengesSolar thermal power plants need detailed feasibility study and technologyidentification along with proper solar radiation resource assessment. The currentstatus of international technology and its availability and financial and commercial technologyfeasibility in the context of India is not clear. The delays in finalizing technology forMathania plant have created a negative impression about the technology.Solar thermal power generation technology is coming back as commercially viable technologytechnology in many parts of the world. India needs to take fresh initiative to assessthe latest technology and its feasibility in the Indian context. These projects can availbenefits like CDM and considering the solar radiation levels in India these plants canbe commercially viable in near future.The MNRE and SEC (Solar Energy Center) should take initiative to study thesetechnologies and develop feasibility reports for suitable applications. Leadingresearch institutes such as TERI can take up these studies.4.2 WindWinds are caused by the uneven heating of the atmosphere by the sun, theirregularities of the earths surface, and rotation of the earth. The earth’s surface ismade of different types of land and water. These surfaces absorb the sun’s heat at anddifferent rates, giving rise to the differences in temperature and subsequently towinds. During the day, the air above the land heats up more quickly than the air overwater. The warm air over the land expands and rises, and the heavier, cooler air expandsrushes in to take its place, creating winds. At night, the winds are reversed becausethe air cools more rapidly over land than over water. In the same way, the largeatmospheric winds that circle the earth are created because the land near the earths createdequator is heated more by the sun than the land near the North and SouthPoles. Humans use this wind flow for many purposes: sailing boats, pumping water,grinding mills and also generating electricity. Wind turbines convert the kineticenergy of the moving wind into electricity.4.2.1 Wind Energy for power generationWind Energy, like solar is a free energy resource. But is much intermittent than solar.Wind speeds may vary within minutes and affect the power generation and in casesof high speeds- may result in overloading of generator. Energy from the wind can betapped using turbines.jaro education
  • 49. PROJECT REPORT: Challenges & Opportunities For 49 “Renewable energy in Indian Perspective Renewable Perspective”Setting up of these turbines needs little research before being established. Be it asmall wind turbine on a house, a commercial wind farm or any offshore installation,all of them, at first, need the Wind Resource to be determined in the area ofproposed site. The Wind Resource data is an estimation of average and peak windspeeds at a location based on various meteorological. The next step is to determine meteorological.access to the transmission lines or nearest control centre where the powergenerated from the turbines can be conditioned, refined, stored or transmitted. It isalso necessary to survey the impact of putting up wind turbines on the community turbinesand wildlife in the locality. If sufficient wind resources are found, the developer willsecure land leases from property owners, obtain the necessary permits andfinancing; purchase and install wind turbines. The completed facility is often sold toan independent operator called an independent power producer (IPP) who generateselectricity to sell to the local utility, although some utilities own and operate windfarms directly. Wind mills can be set up ranging scales of: On-shore grid connected Wind Turbine systems Off-shore Wind turbine systems shore Small Wind and Hybrid Energy Decentralized systems4.2.1.1 Advantages Can be used for both distributed generation or grid interactive power generation using on-shore or off shore technolo shore technologies. Ranges of power producing turbines are available. Micro turbines are capable Micro-turbines of producing 300W to 1MW and large wind turbines have typical size of 35kW 35kW- 3MW. Wind turbine is suitable to install in remote rural area, water pumping and grinding mills Average capacity factor can be close or higher than 30% erage4.2.1.2 Disadvantages The total cost can be cheaper than solar system but more expensive than hydro. Electricity production depends on wind speed, location, season and air on- temperature. Hence various monitoring systems are needed and may cost expensive. High percentage of the hardware cost (for large WT) is mostly spent on the tower designed to support the turbinejaro education
  • 50. PROJECT REPORT: Challenges & Opportunities For 50 “Renewable energy in Indian Perspective Renewable Perspective”4.2.2 India’s Unique Proposition for Wind Energy: s 4.2.2.1 Geographic Location and Wind Potential: The potential is far from exhausted. It is estimated that with the current level of technology, the ‘on-shore’ potential for utilization of wind energy for electricity shore’ generation is of the order of 65,000 MW. India also is blessed with 751 7517km of coastline and its territorial waters extend up to 12 nautical miles into the sea. The unexploited resource availability has the potential to sustain the growth of wind energy sector in India in the years to come. Potential areas can be identified on Indian map using Wind Power Density map. C-WET, one of pioneering Wind Research organization in the country is leading in all such resource studies and has launched its Wind Resource map. In a step towards identifying and properly exploiting these wind resources, MNRE has resources, estimated state-wise wind power potential in the country. wise Figure 16: Wind power Density Mapjaro education
  • 51. PROJECT REPORT: Challenges & Opportunities For 51 “Renewable energy in Indian Perspective Renewable Perspective” 4.2.2.2 World Market Share: According to REN21- Global Status Report 2011 (GSR-2011), Indian company - 2011), Suzlon was among top ten manufacturers of Wind Turbine manufacturer’s in the world with world market share of 6.7%. Also major world companies are pouring into the fast evolving Wind Energy market in India: Vestas, GE Wind, Enercon and Gamesa have already opened up their establishments across their various cities in India. 4.2.2.3 Installed Capacity: According to MNRE‘s achieving report, The cumulative installed capacity of Grid Interactive Wind Energy in India by the end of September 2011 was 14989MW (of which 833MW was i installed during 2011-2012 against a target of 2012 2400MW). Aero generators and hybrid systems contributed 1.20MW during 2011-12 to yield cumulative off grid wind capacity of 15.55MW. 12 off-grid 4.2.2.4 India in the windy world: In 2008, India shared 6.58% of total wind energy installed capacity around the world, according to World Wind Energy Report 2008. According to GSR Report-2008. GSR-2011, the world witnessed highest renewable energy installations through wind energy. Total installed capacity of wind energy reached 198GW by the end of 2010. India ranked third in the world in annual capacity additions and fifth in terms of total wind energy installed capacity. India has been able to fast pace its growth in wind energy installations and bring down costs of power production. The GSR 20 2011 reported on-shore wind power (1.5 shore (1.5-3.5MW; Rotor diameter 60-100m) at 5 9 cents/kWh and off shore wind power (1.5 100m) 5-9 (1.5-5MW; Rotor diameter 75-120m) at 10 20 cents/kWh. But India’s onshore wind power 120m) 10-20 cost reached 6-9cents/kWh in 2008 itself (Indian Renewable En 9cents/kWh Energy Status Report-2010). 4.2.2.5 Clean Wind to overcome power shortage: Electricity losses in India during transmission and distribution have been extremely high over the years and this reached a worst proportion of about 24.7% during 2010-11. India is in a pressing need to tide over a peak power 11. in shortfall of 13% by reducing losses due to theft. Theft of electricity, common in most parts of urban India, amounts to 1.5% of India’s GDP. Due to shortage of electricity, power cuts are common throughout India and this has adverselyjaro education
  • 52. PROJECT REPORT: Challenges & Opportunities For 52 “Renewable energy in Indian Perspective Renewable Perspective” affected the country’s economic growth. Hence a cheaper, non non-polluting and environment friendly solution to power rural India is needed. 4.2.2.6 Wind energy as job generator: Wind energy utilization creates many more jobs than centralized, non non- renewable energy sources. The wind sector worldwide has become a major job generator: Within only three years, the wind sector worldwide almost doubled the number of jobs from 235,000 in 2005 to 440,000 in the year 2008. These highly skilled employees are contributing to the generation of 260 T Wh led of electricity.4.2.3 Wind Power Capacity Installed in IndiaThe Wind power programme in India was initiated towards the end of the Sixth Plan,in 1983-84. A market-oriented strategy was adopted from inception, which has led to orientedthe successful commercial development of the technology. The broad basedNational programme includes wind resource assessment activities; research anddevelopment support; implementation of demonstration projects to create awarenessand opening up of new sites; involvement of utilities and industry; development ofinfrastructure capability and capacity for manufacture, installation, operation andmaintenance of wind electric generators; and policy support. The programme aims atcatalyzing commercialisation of wind power generation in the country. The WindResources Assessment Programme is being implemented through the State NodalAgencies, Field Research Unit of Indian Institute of Tropical Meteorology (IITM (IITM-FRU)and Center for Wind Energy Technology (C or (C-WET).Wind in India are influenced by the strong south west summer monsoon, which south-weststarts in May-June, when cool, humid air moves towards the land and the weaker June,north-east winter monsoon, which starts in October, when cool, dry sir moves easttowards the ocean. During the period march to August, the winds are uniformlystrong over the whole Indian Peninsula, except the eastern peninsular coast. Windspeeds during the period November to march are relatively weak, though higherwinds are available during a part of the period on the Tamil Nadu coastline. reA notable feature of the Indian programme has been the interest among privateinvestors/developers in setting up of commercial wind power projects. The grosspotential is 48,561 MW (sour (source C-wet) and a total of about 14,158.00 MW ofcommercial projects have been established until March 31, 2011.jaro education
  • 53. PROJECT REPORT: Challenges & Opportunities For 53 “Renewable energy in Indian Perspective Renewable Perspective” The break-up of projects implemented in prominent wind potential states (as on up March 31, 2011) is as given below State-wise Wind Power Inst wise Installed Capacity In India Gross Total Potential Capacity State (MW) (MW) till 31.03.2011 Andhra Pradesh 8968 200.2 Gujarat 10,645 2175.6 Karnataka 11,531 1730.1 Kerala 1171 32.8 Madhya Pradesh 1019 275.5 Maharashtra 4584 2310.7 Orissa 255 - Rajasthan 4858 1524.7 Tamil Nadu 5530 5904.4 Others 4 Total 48,561 14,158 (All India) Table 3: Total installed Capacity (MW) till 31.03.2011 Wind power potential has been assessed assuming 1% of land availability for wind farms requiring @12 ha/MW in sites having wind power density in excess of 200 W/sq.m. at 50 m hub-height height.Sl. Name of the Up to 2006- 2007- 2008- 2009- 2009 Up to Cumu- 2005-06 2005No. State 2005 07 08 09 10 Jan.11 lative Andhra1 0.721 0.079 0.111 0.101 0.333 0.106 0.067 1.518 Pradesh2 Gujarat 1.332 0.286 0.455 0.851 2.104 2.988 2.309 10.3253 Karnataka 1.409 0.935 1.397 1.84 1.723 2.895 2.362 12.5614 Kerala 0.047 0 0 0 0 0.065 0.059 0.171 Madhya5 0.3 0.03 0.07 0.069 0.003 0.082 0.039 0.593 Pradesh6 Maharashtra 2.65 0.79 1.714 1.804 2.207 2.778 2.368 14.3117 Rajasthan 0.494 0.427 0.532 0.682 0.758 1.127 1.049 5.0698 Tamil Nadu 11.97 3.444 5.268 6.066 6.206 8.146 8.017 49.117 Total 18.925 5.991 9.547 11.413 13.334 18.187 16.27 93.665 Table 4: State : State-Wise Cumulative Wind Generation Data in (BU) jaro education
  • 54. PROJECT REPORT: Challenges & Opportunities For 54 “Renewable energy in Indian Perspective Renewable Perspective”4.2.4 Wind Energy Business Opportunities i India inThe wind energy value chain consists of a number of specific and distinct steps -from the supply of raw materials to the transmission of electricity. These steps, along transmissionwith the prominent supporting products and services for each, are given below. Theillustration here also provides a bird’s eye view of the opportunities available along bird’s-eyethe entire wind energy value chain.A trend in the wind energy industry that entrepreneurs should be aware of is themove by incumbents towards vertical integration along this value chain. And there isa reason for the vertical integration efforts. With supply chain bottlenecks a constantthreat, many of the large wind firms have responded by buying out suppliers of eat,critical components such as blades, generators, and gearboxes. By bringingsuppliers in house, they could ensure they would get the products they needed ontime, and at an acceptable price. le Figure 17: Diagram of Wind Business Optionsjaro education
  • 55. PROJECT REPORT: Challenges & Opportunities For 55 “Renewable energy in Indian Perspective Renewable Perspective”However this applies only to large organizations. A detailed analysis of this valuechain brings out opportunities in each stage for small and medium players too.4.2.5 Power Plant Development stapes and opportunity in IndiaWind farm developers are responsible for developing the wind project from conceptto commissioning, and they undertake all the planning, design and projectdevelopment work in this regard. As part of their role, wind power project developersalso take up the role of establishing access to capital for investment, construction ofroads and related infrastructure that can accommodate the transport of heavyindustrial equipment and components.Depending on the nature of contract, the wind project developer sometimes has amanaging interest in the project when it is complete, but in most cases the realownership lies with the wind farm owner. Figure 18 Various components of Wind mill with material link 18:jaro education
  • 56. PROJECT REPORT: Challenges & Opportunities For 56 “Renewable energy in Indian Perspective Renewable Perspective”4.2.5.1 Raw Materials ProductionA wide range of materials are used for wind turbine construction. While steel isperhaps the most important material in this context, a diverse list of raw materials arerequired to produce the vast number of components that comprise a wind farm. Theillustration shown on the right, provides a detailed review of the materials andcomponents used in the production of wind turbines. There is a move in India toindigenize wind turbine component production; this could lead to significantopportunities for suppliers of raw materials that go into the production of thesecomponents.Indian producers of the above raw materials should hence explore how they canbecome suppliers to this sector.4.2.5.2 Original Equipment ManufacturingIn the wind energy sector, turbine manufacturers represent the predominant OEMsegment. OEMs usually manufacture some of the critical components such as thenacelle in-house, and blades and towers are produced either by the OEM or house,fabricated to the OEM’s specifications by a supplier. While opportunities do exist fornew OEMs in India with the projected continuous growth in the wind industry, itshould be noted that this is an area that faces intense competition from large gl globalcompanies, and entering the OEM domain will require significant capital andmarketing investments.To encourage indigenous manufacturing of wind turbines and to facilitate transfer ofnew technology, MNRE is expected to introduce local content require requirements for windturbines.4.2.5.3 Component ManufacturingComponent manufacturers manufacture a wide range of mechanical and electricalcomponents, including generators, hydraulics, sensors, hardware, drives, powerdistribution, composites, cabling, big steel, castings, forgings, bearings, gearboxes. steel,The primary components in a wind energy generating system are: Rotors,Blades, Nacelle Controls, Generator, Tower Components and Power Electronicscomponents. A modern wind turbine consists of about 8000 unique components.4.2.5.4 Trading OpportunitiesShould a market for micro-wind turbines emerge in future, opportunities could arise -windfor traders and small system integrators, similar to what is happening in the solar PVindustry in India where rooftop solar systems are set to take off soon. Opportunities systemsjaro education
  • 57. PROJECT REPORT: Challenges & Opportunities For 57 “Renewable energy in Indian Perspective Renewable Perspective”to trade in the power produced are however likely to expand significantly. Currently,it is possible for wind power producers to sell electricity to the grid, use it for captiveconsumption or sell it to third parties. With the emergence of independent power parties.exchanges and with the likely liberalization and streamlining of power distributionacross states, the opportunities to trade in power are likely to increase and becomemore lucrative. With the advent of the RPO/REC mechanism in India, there has been RPO/RECsignificant demand for non-solar (wind, small hydro, biomass etc.) over the past few -solarmonths.The high demand for non solar RECs is mostly met through wind energy based non-solarREC. In light of this, REC accreditation, advisory and trading services present a accreditation,significant opportunity waiting to be capitalized.4.2.6 Central and State Government Policies for Supporting Wind Power Projects4.2.6.1 Central Government Policies ntThe General guidelines for developing Wind Power Projects and o other policies andprogrammes are discussed below.4.2.6.2 CERC Tariff Orders for Procurement of Power from Wind Energy Generators fromCentral Electricity Regulatory Commission in its order dated 16/09/2009 introduced 16/09/2009its regulations and tariff orders for procuring wind power into the grid; for controlperiod from 16/09/2009 to 31/03/2012. The tariff structure consisting of fixed costcomponents: Return on Equity, Interest on loan Capital, Depreciati Depreciation, Interest onWorking Capital and Operation & Maintenance Expenses. Detailed tariff structureand regulations are like that: Description CERC Regulation Capital cost Rs5.15 Crore/MW, linked to indexation formula Commercial operational 25 years life (including evacuation systems) Return on Equity 19% for first 10 years and 24% from 11th year pre pre- tax Debt Equity Ratio 70:30 Interest on loan Average SBI long term PLR plus 150 basis points Depreciation 7% per annumjaro education
  • 58. PROJECT REPORT: Challenges & Opportunities For 58 “Renewable energy in Indian Perspective Renewable Perspective” Description CERC Regulation Interest on Working Capital Average SBI short term PLR plus 100 basis points Operational and Rs. 6.50 lakh/MW Maintenance cost Escalation 5.72% per annum Capacity Utilization Factor for wind power density 200-250: 20%for wind power 250: density 250-300: 23%for wind power density 300 300- 400: 27%for wind power density above 400: 30% Sharing of CDM Benefits First year: 100% to the project developer Second year: 10% beneficiaries, to be increased at 10% per annum up to 50%.Thereafter to be shared on equal basis Taxes and Duties Tariff determined should be exclusive of taxes and duties levied by government provided allowed as pass through on actual basis Table 5: Detailed tariff structure4.2.6.3 Accelerated DepreciationThe main incentive for wind power projects in the past was accelerated depreciation.This tax benefit allows projects to deduct up to 80% of value of wind powerequipment during first year of project operation. Investors are given tax benefits up to10 years. Wind Power producers receiving accelerated depreciation benefits mustregister with and provide generation data to IREDA and are not eligible to receivemore recent Generation Based incentives.4.2.6.4 Indirect Tax BenefitsThis includes concessions on excise duty and reduction in customs duty for windpower equipment. Wind powered electricity generators and water pumping windmills, aero-generators and battery chargers are except from excise duties. Indirect generatorstax benefits for manufacturers of specific energy parts vary from 5 5-25% dependingupon the component.jaro education
  • 59. PROJECT REPORT: Challenges & Opportunities For 59 “Renewable energy in Indian Perspective Renewable Perspective”4.2.6.5 Central-Level Generation Level Generation-Based IncentivesOffered by the central government since June 2008 and administered by IREDA, theGBI for wind is available for independent power producers with a minimum installedcapacity of 5 MW for projects commissioned on or before 31/03/2012. As ofDecember 2009, the GBI is set at INR 0.50/kWh (USD 0.01/kWh) of grid connected grid-electricity for a minimum of 4 years and a maximum of 10 years, up to a maximum of maximumINR 6.2 million (USD 140,000) per MW. The scheme will deploy a total of INR 3.8billion (USD 81 million) until 2012 and aims to incentivize capacity additions of 4,000MW. Wind power producers receiving a GBI must register with and providegeneration data to IREDA. The GBI is offered in addition to SERC’s state preferentialrenewable energy tariffs. However, IPPs using GBIs cannot also take advantage ofaccelerated depreciation benefits. The GBI program will be reviewed at the end ofthe Eleventh Plan and revised as deemed appropriate. As of December 2011, 58projects had been registered under this scheme with over 288.8 MW commissioned. MW(Tamil Nadu-30, Rajasthan 30, Rajasthan-21, Gujarat-3; Andhra Pradesh, Maharashtra andKarnataka-1 each).4.2.6.6 Renewable Purchase ObligationsSeveral states have implemented RPOs with a requirement that renewable energysupplies between 1% and 15% of total electricity. The impact of the RPOs on winddevelopment may depend on the penalties and enforcement of the targets as well as enforcementan effective REC market to promote development of areas of the country with themost abundant wind resources. More details are available under state initiatives andpolicies towards Wind Power development.4.2.6.7 Renewable Energy Certificates: Framework on Forbearance and Floor Prices ergy andThis is framed to be applicable from 1st April 2012 for a control period of 5 years. control period up to FY Control period 1st Apr 2012 In Rs/MWh 2012 onwards Non Solar REC Solar REC Non Solar REC Solar RECForbearance 3,900 17,000 3,480 13,690PriceFloor Price 1,500 12,000 1,400 9,880More details on the APPC and RE tariffs is available in the “”Order on Forbearance &Floor Price dated 23-8-2011”. 2011”.jaro education
  • 60. PROJECT REPORT: Challenges & Opportunities For 60 “Renewable energy in Indian Perspective Renewable Perspective”4.2.6.8 Small Wind Energy and Hybrid Systems Programme ndThis programme is implemented through State Nodal Agencies for meeting waterpumping and small power requirements in rural/semi urban/urban windy areas for rural/semi-urban/urbanthe categories of users:Individuals, farmers, NGOs, Central / State Government agencies, local bodies and GovernmentPanchayats, Autonomous Institutions, Research Organizations, CooperativeSocieties, Corporate Bodies, Small Business Establishments, Banks, etc. Category Cost Central Financial AssistanceGear type Water Rs. 80,000 Maximum 50% of Ex-works cost in general worksPumping Windmill places Maximum 90% of Ex Ex-works for un-Auroville type Rs.1,50,000 electrified islandsWindmillsWind Solar Hybrid Rs. Rs. 1,50,000/kW for Government, Public,Systems 2,50,000/kW Charitable, R&D, Academic and other non profit making organizations Rs. 1,00,000/kW for other beneficiaries not covered aboveA cumulative capacity of 608kW of wind solar hybrid systems and 1180 waterpumping windmills have been installed by 31st July 2010.4.3 Small Hydro4.3.1 IntroductionHydropower is a renewable, non polluting and environmentally benign source of non-pollutingenergy. It is perhaps the oldest renewable energy technique known to the mankindfor mechanical energy conversion as well as electricity generation.Hydropower represents use of water resources towards inflation free energy due to rabsence of fuel cost with mature technology characterized by highest prime movingefficiency and spectacular operational flexibility. Out of the total power generationinstalled capacity of 167077 MW (January 2011) in the country, hydro power 077contributes about 25% i.e. 37,367 MW.Hydro Power Project ClassificationHydro power projects are generally categorized in two segments i.e. small and largehydro. In India, hydro projects up to 25 MW station capacities have been categorizedas Small Hydro Power (SHP) projects. While Ministry of Power, Government of Indiajaro education
  • 61. PROJECT REPORT: Challenges & Opportunities For 61 “Renewable energy in Indian Perspective Renewable Perspective”is responsible for large hydro projects, the mandate for the subject small hydro esponsiblepower (up to 25 MW) is given to Ministry of New and Renewable Energy. Smallhydro power projects are further classified as Station Class Capacity in kW Micro Hydro Up to 100 Mini Hydro 101 to 2000 Small Hydro 2001 to 25000 Table 6: Small Hydro power projects classification4.3.2 Small Hydro Power ProgrammeSmall Hydro Power (SHP) Programme is one of the thrust areas of power generationfrom renewable in the Ministry of New and Renewable Energy. It has beenrecognized that small hydropower projects can play a critical role in improving theoverall energy scenario of the country and in particular for remote and inaccessibleareas. The Ministry is encouraging development of small hydro projects both in thepublic as well as private sector. Equal attention is being paid to grid grid-interactive anddecentralized projects.4.3.2.1 AimThe Ministry’s aim is that the SHP installed capacity should be about 6000 MW bythe end of 12th Plan. The focus of the SHP programme is to lower the cost ofequipment, increase its reliability and set up projects in areas which give themaximum advantage in terms of capacity utilisation.4.3.2.2 PotentialAn estimated potential of about 15,000 MW of small hydro power projects exists inIndia. Ministry of New and Renewable Energy has created a database of potentialsites of small hydro and 5718 potential sites with an aggregate capacity of 15384MW for projects up to 25 MW capacity have been identified.Identification of new potential sites and strengthening of database for alreadyidentified sites is an ongoing process. In this direction, the Ministry has been givingfinancial support to state governments/ agencies for identification of new potentialSHP sites & preparation of state perspective plan.jaro education
  • 62. PROJECT REPORT: Challenges & Opportunities For 62 “Renewable energy in Indian Perspective Renewable Perspective”4.3.3 Small hydro installed capacity and progressThe total installed capacity of small hydro power projects (up to 25 MW) as on31.01.2011 is 2953 MW from 801 projects and 271 projects with aggregate capacity rojectsof 914 MW are under construction.State wise numbers and aggregate capacity of SHP projects (up to 25 mw) potential, tateinstalled & under implementation (As on 31.1.2011) Projects Installed Projects under Potential Implementation Sl. No. State Total Capacity Capacity Nos. Capacity Nos. Nos. (MW) (MW) (MW) 1 Andhra Pradesh 497 560.18 62 189.83 18 61.75 2 Arunachal Pradesh 550 1,328.68 101 78.835 28 38.71 3 Assam 119 238.69 4 27.11 4 15 4 Bihar 95 213.25 18 58.3 11 36.31 5 Chattisgarh 184 993.11 6 19.05 1 1.2 6 Goa 6 6.5 1 0.05 - - 7 Gujarat 292 196.97 4 12.6 - 8 Haryana 33 110.05 7 70.1 2 3.4 9 Himachal Pradesh 536 2,267.81 112 375.385 40 132.2 10 J&K 246 1,417.80 34 129.33 5 5.91 11 Jharkhand 103 208.95 6 4.05 8 34.85 12 Karnataka 138 747.59 111 725.05 18 107.5 13 Kerala 245 704.1 20 136.87 7 23.8 14 Madhya Pradesh 299 803.64 11 86.16 4 19.9 15 Maharashtra 255 732.63 39 263.825 15 51.7 16 Manipur 114 109.13 8 5.45 3 2.75 17 Meghalaya 101 229.8 4 31.03 3 1.7 18 Mizoram 75 166.93 18 36.47 1 0.5 19 Nagaland 99 188.98 10 28.67 4 4.2 20 Orissa 222 295.47 10 79.625 5 3.93 21 Punjab 237 393.23 43 153.2 15 21.4 22 Rajasthan 66 57.17 10 23.85 - - 23 Sikkim 91 265.55 16 47.11 2 5.2 24 Tamil Nadu 197 659.51 16 94.05 6 33 25 Tripura 13 46.86 3 16.01 - - 26 Uttar Pradesh 251 460.75 7 23.3 - - 27 Uttarakhand 444 1,577.44 95 134.12 55 230.65 28 West Bengal 203 396.11 24 98.9 16 79.25 29 A&N Islands 7 7.27 1 5.25 - - Total 5718 15384.2 801 2953.58 271 914.81 Table 7: State wise numbers and aggregate capacity of SHP projectsjaro education
  • 63. PROJECT REPORT: Challenges & Opportunities For 63 “Renewable energy in Indian Perspective Renewable Perspective”While in early 90s, most of the SHP projects were set up in the public sector, fromlast 10 years or so, most of the capacity addition is now coming through privatesector projects. Beginning of the 21st century saw near commercialization in thesmall hydro sector. Private sector entrepreneurs found attractive businessopportunities in small hydro and state governments also felt that the private feltparticipation may be necessary in tapping the full potential of rivers and canals forpower generation. The private sector has been attracted by these projects due totheir small adoptable capacity matching with their captive requirement or even as requirementsaffordable investment opportunities. In line with Government of India policy, 18states have announced their policy for inviting private sector to set up SHP projects.The Government of India announced the Electricity Act in 2003, Electricity Policy in2005 and Tariff Policy in 2006 to create a conducive atmosphere for investments inthe power sector. Small hydropower projects are now governed by these policiesand the tariff is decided by the State Electricity Regulatory Commissions (SERCs) a asper the Tariff Policy.During the 10th Plan, Following have been year wise capacity addition from SHP year-wiseprojects. Target Capacity Cumulative (in addition SHP Year MW) during installed the year capacity (in MW) (in MW) 2002- -03 80 80.39 1519.28 2003- -04 80 84.04 1603.32 2004- -05 100 102.31 1705.63 2005- -06 130 120.8 1826.43 2006- -07 160 149.16 1975.59 Table 8: 10th Plan year-wise capacity addition from SHP :A target of adding 1400 MW during the 11th Plan (2007 2012) Fixed (2007-2012) Target Capacity Cumulative (in addition SHP Year MW) during the installed year capacity (in MW) (in MW) 2007-08 08 200 205.25 2180.84 2008-09 09 250 248.93 2429.77 2009-10 10 300 305.25 2735.02 300 218.37 2010-11 11 (31.01.2011) Table 9: During last 3 Years foll following has been the achievementsjaro education
  • 64. PROJECT REPORT: Challenges & Opportunities For 64 “Renewable energy in Indian Perspective Renewable Perspective”4.3.4 Standards for Small HydroIn order to ensure project quality/performance, the MNRE has been insisting toadhere to IEC/International standards for equipment and civil works. The subsidyavailable from the Ministry is linked to use of equipment manufactured to IEC orother prescribed international standards. The equipment in the project is required toconfirm to the following IEC standards. Equipment Standard Turbines and generator IEC 60034 – 1: 1983 (rotating electrical IEC 61366-1: 1998 machines) IEC 61116-1992 IS: 4722-2001 IS 12800-1991 Field Acceptance Test for IEC 60041: 1991 Hydraulic performance of turbine Governing system for IEC 60308 hydraulic turbines Transformers IS 3156 – 1992 IS 2705 – 1992 IS 2026 - 1983 Inlet valves for hydro IS 7326 – 1902 power stations & systems Table 10: IEC standardsRecently the Ministry has given an assignment to AHEC, IIT Roorkee to revisit theexisting standards and come out with standards/manuals/guidelines for improvingreliability and quality of small hydro power projects in the country.4.3.5 States with Policy for Private SHP Projects23 States namely, Andhra Pradehsh, Arunachal Pradesh, Assam, Bihar, Pradesh,Chattisgarh, Gujarat, Haryana, Himachal Pradesh, Jammu and Kashmir,Karnataka, Kerala, Madhya Pradesh, Maharashtra, Manipur, Meghalaya,Mizoram, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttarakhand, UttarPradesh and West Bengal have announced policies for setting up announcedcommercial SHP projects through private sector participation. Thefacilities available in the States include wheeling of power produced,banking, buy-back of power, facility for third party sale, etc. backjaro education
  • 65. PROJECT REPORT: Challenges & Opportunities For 65 “Renewable energy in Indian Perspective Renewable Perspective” Sl. State Total Total No. Number capacity (MW) 1 Andhra Pradesh 43 104.43 2 Assam 1 0.1 3 Gujarat 2 5.6 4 Himachal Pradesh 63 271.25 5 Haryana 2 7.4 6 Jammu & Kashmir 2 17.5 7 Karnataka 95 694.9 8 Kerala 3 36 9 Madhya Pradesh 1 2.2 10 Maharashtra 13 74 11 Orissa 2 32 12 Punjab 18 26.2 13 Tamil Nadu 1 0.35 14 Uttaranchal 10 48.3 15 West Bengal 5 6.45 Total 261 1326.68 Table 11 : As on 31.12.20104.3.6 WatermillsWater wheels, commonly known as `gharats, have traditionally been used in theHimalayan regions for rice hulling, milling of grain and other mechanical applications.These water mills are normally of very old design and work at very low efficiencies. Ithas been estimated that there are more than 1.5 lakh potential water mill sites in thecountry. New and improved designs of water mills have been developed formechanical as well as electricity generation of 3 kW. 3-5The Ministry is providing subsidy for development and up gradation of water mills.Local organizations such as the Water Mill Associations, cooperative societies, sregistered NGOs, local bodies, and State Nodal Agencies are being encouraged totake up these activities. A number of NGOs are now propagating water mills forelectricity generation to meet small scale electrical requirements of villages. smallUttaranchal has taken a lead in setting up electricity generation watermills and over450 such watermills were installed in remote and isolated areas of the state.Nagaland has recently commenced setting up watermills/micro hydel sets for rural watermills/microelectrification. Watermills are also being installed in Arunachal Pradesh, HimachalPradesh, J&K, Karnataka and Manipur.jaro education
  • 66. PROJECT REPORT: Challenges & Opportunities For 66 “Renewable energy in Indian Perspective Renewable Perspective”4.3.7 Manufacturing StatusIndia has a wide base of manufacturers of equipment for small hydr power hydroprojects. State-of-the-art equipment is available indigenously. 20 manufacturers artfabricate almost the entire range and type of SHP equipment. Manufacturer’scapacity is estimated at about 300 MW per year. In addition, there are about 5manufactures that are producing micro hydel and watermill equipment. ures4.3.8 Technical and consultation ServicesConsultancy services in the field of small hydro projects are available from a numberof Government / private consultancy organizations. The Ministry is strengtheningtechnical institutions to provide such services. AHEC, IIT Roorkee is providing fullrange of technical services in the field of small hydro including survey andinvestigation, DPR preparation, project design etc. On site testing facility has beencreated at AHEC to test SHP stations for their performance.4.3.9 Real Time Digital Simulator for SHPA Real Time simulator has been set up at AHEC which would provide hands onexperience to operators of SHP stations. It is the first SHP simulator in the country.The simulator is capable of replicate all conditions of a hydro power station. AHEC isoffering regular training programmes for operators and engineers of SHP stations.4.3.10 Constraints in SHPThe main reasons for lack of success with small hydro power developer are; Failure due to improper design. Failure due to non standard practices adopted in production. Over estimate of the efficiency and constancy of stream flow. Improper Penstock design to allow the plant operates at full capacity. operates No established O&M practice. Plants operating in remote areas of the country.4.4 Geothermal EnergyGeothermal energy is a major contributor to electricity production in at least 24countries. There is also an increasing widespread use of direct application of usegeothermal heat, for example, for space heat and domestic water heating.Geothermal energy recovered as heat takes two general forms: steam or hot water ispiped into facilities where it provides ambient heating for comfort. Alt Alternatively, heatpump technology is used to recover earth heat by pumping a confined heat heat-transferfluid through a heat exchanger embedded in a warm body of soil. Geothermal heat isjaro education
  • 67. PROJECT REPORT: Challenges & Opportunities For 67 “Renewable energy in Indian Perspective Renewable Perspective”used to generate electrical power primarily through direct steam productio or by productionflashing produced hot brine to release steam, which drives a turbine/generator set tomake electrical power. An evolving technology expected to see major application inthe future is “binary” electrical generation, in which a produced geothermal fl fluidheats a drive fluid (e.g., volatile organic fluid or ammonia) in a closed closed-loop powergeneration unit.4.4.1 Status and TrendsHeat energy continuously flows to the Earth’s surface from its interior, where centraltemperatures of about 6 000° exist. The predominant source of the Earth’s heat is Cthe gradual decay of long-lived radioactive isotopes (40K, 232Th, 235U and 238U). livedThe outward transfer of heat occurs by means of conductive heat flow andconvective flows of molten mantle beneath the Earth’s crust. This results in a mean Earth’sheat flux at the Earth’s surface of 80kW/km2 approximately. This heat flux, however,is not distributed uniformly over the Earth’s surface; rather, it is concentrated alongactive tectonic plate boundaries where volcanic activity transports high temperaturemolten material to the near surface.Although volcanoes erupts small portions of this molten rock that feeds them, the svast majority of it remains at depths of 5 to 20 km, where it is in the form of liquid orsolidifying magma bodies that release heat to surrounding rock. Under the right ingconditions, water can penetrate into these hot rock zones, resulting in the formationof high temperature geothermal systems containing hot water, water and steam, orsteam, at depths of 500 m to >3,000 m.Worldwide geothermal energy recovery currently contributes around 13,000megawatts (MW) of electrical power (a little over 8 percent of total electricitycapacity). There is significant potential for expanded geothermal electricitygeneration, up to 73 GW with current technology, and up to 138 GW with enhanced neration,geothermal systems (EGS) technology (Gawell 2004).There also are opportunities for expanded use of geothermal direct heat utilization,with capacity nearly doubling from 2000 to 2005, and with at least 13 new countriesusing geothermal heat for the first time. About half of the existing geothermal heatcapacity exists as geothermal heat pumps for building heating and cooling, with 2million pumps used in over 30 countries. Table no 10 displays past and projectedfuture trends in the cost of geothermal power.jaro education
  • 68. PROJECT REPORT: Challenges & Opportunities For 68 “Renewable energy in Indian Perspective Renewable Perspective” Table 12 : Geothermal Power Cost Curve4.4.2 Characteristics and Applications of Geothermal EnergyGeothermal energy is an enormous, underused heat and power resource thatis clean (emits little or no greenhouse gases), reliable (average system availabilityof 95%), and home grown (making us less dependent on foreign oil). Geothermalresources range from shallow ground to hot water and rock several miles below theEarths surface, and even farther down to the extremely hot molten rock calledmagma. Mile-or-more-deep wells can be drilled into underground reservoirs to tap deepsteam and very hot water that can be brought to the surface for use in a variety ofapplications.The general characteristics of geothermal energy that make it of significantimportance for both electricity production and direct use include: • Extensive global distribution; it is accessible to both developed and developing countries. ntries. • Environmentally friendly nature; it has low emission of sulphur, CO2 and other greenhouse gases. • Indigenous nature; it is independent of external supply and demand effects and fluctuations in exchange rates. • Independence of weather and season. • Contribution to the development of diversified power sources.jaro education
  • 69. PROJECT REPORT: Challenges & Opportunities For 69 “Renewable energy in Indian Perspective Renewable Perspective” Figure 19: Geo Thermal plant basic mechanismGeothermal energy can be used very effectively in both on and off-grid on-developments, and is especially useful in rural electrification schemes. Its use spans rurala large range from power generation to direct heat uses, the latter possible usingboth low temperature resources and “cascade” methods. Cascade methods utilisethe hot water remaining from higher temperature applications (e.g., electricity applicationsgeneration) in successively lower temperature processes, which may include binarysystems to generate further power and direct heat uses (bathing and swimming;space heating, including district heating; greenhouse and open grou ground heating;industrial process heat; aquaculture pond and raceway heating; agricultural drying;etc.)4.4.3 Geothermal Energy Scenario: India and worldGeothermal power plants operated in at least 24 countries in 2010, and geothermalenergy was used directly for heat in at least 78 countries. These countries currently lyhave geothermal power plants with a total capacity of 10.7 GW, but 88% of it isgenerated in just seven countries: the United States, the Philippines, Indonesia,Mexico, Italy, New Zealand, and Iceland. The most significant capacity increases andsince 2004 were seen in Iceland and Turkey. Both countries doubled their capacity.jaro education
  • 70. PROJECT REPORT: Challenges & Opportunities For 70 “Renewable energy in Indian Perspective Renewable Perspective”Iceland has the largest share of geothermal power contributing to electricity supply(25%), followed by the Philippines (18%).The number of countries utilizing geothermal energy to generate electricity has morethan doubled since 1975, increasing from 10 in 1975 to 24 in 2004. In 2003, totalgeothermal energy supply was 20 MToE (metric Tonne Oil Equivalent), accountingfor 0.4% of total primary energy supply in IEA member countries. The share ofgeothermal in total renewable energy supply was 7.1%. Over the last 20 years,capital costs for geothermal power systems decreased by a significant 50%. Suchlarge cost reductions are often the result of solving the “easier” problems associated twith science and technology improvement in the early years of development.Although geothermal power development slowed in 2010, with global capacityreaching just over 11 GW, a significant acceleration in the rate of deployment isexpected as advanced technologies allow for development in new countries. Heatoutput from geothermal sources increased by an average rate of almost 9% annuallyover the past decade, due mainly to rapid growth in the use of ground ground-source heatpumps. Use of geothermal energy for combined heat and power is also on the rise.India has reasonably good potential for geothermal; the potential geothermalprovinces can produce 10,600 MW of power (but experts are confident only to theextent of 100 MW). But yet geothermal power projects has not been exploited at all,owing to a variety of reasons, the chief being the availability of plentiful coal at cheapcosts. However, with increasing environmental problems with coal based projects, withIndia will need to start depending on clean and eco friendly energy sources in future; eco-friendlyone of which could be geothermal.4.4.4 TechnologyMile-or-more-deep wells can be drilled into underground reservoirs to tap steam and deepvery hot water that drive turbines that drive electricity generators. Four types of aterpower plants are operating today:4.4.4.1 Flashed steam plantThe extremely hot water from drill holes when released from the deep reservoirs highpressure steam (termed as flashed steam) is released. This force of steam is used torotate turbines. The steam gets condensed and is converted into water again, whichis returned to the reservoir. Flashed steam plants are widely distributed throughoutthe world.jaro education
  • 71. PROJECT REPORT: Challenges & Opportunities For 71 “Renewable energy in Indian Perspective Renewable Perspective”4.4.4.2 Dry steam plantUsually geysers are the main source of dry steam. Those geothermal reservoirswhich mostly produce steam and little water are used in electricity productionsystems. As steam from the reservoir shoots out, it is used to rotate a turbine, aftersending the steam through a rock rock-catcher. The rock-catcher protects the turbine catcherfrom rocks which come along with the steam.4.4.4.3 Binary power plantIn this type of power plant, the geothermal water is passed through a heat exchangerwhere its heat is transferred to a secondary liquid, namely isobutene, iso transferred iso-pentane orammonia–water mixture present in an adjacent, separate pipe. Due to this double water double-liquid heat exchanger system, it is called a binary power plant. The secondary liquidwhich is also called as working fluid, should have lower boiling point than water. Itturns into vapour on getting required heat from the hot water. The vapour from theworking fluid is used to rotate turbines. The binary system is therefore useful ingeothermal reservoirs which are relatively low in temperature gradient. Since the relativelysystem is a completely closed one, there is minimum chance of heat loss. Hot wateris immediately recycled back into the reservoir. The working fluid is also condensedback to the liquid and used over and over again.4.4.4.4 Hybrid power plantSome geothermal fields produce boiling water as well as steam, which are also usedin power generation. In this system of power generation, the flashed and binarysystems are combined to make use of both steam and hot water. Efficiency of hybrid water.power plants is however less than that of the dry steam plants.4.4.4.5 Enhanced geothermal systemThe term enhanced geothermal systems (EGS), also known as engineeredgeothermal systems (formerly hot dry rock geothermal), refers to a variety ofengineering techniques used to artificially create hydrothermal resources(underground steam and hot water) that can be used to generate electricity. thatTraditional geothermal plants exploit naturally occurring hydrothermal reservoirs andare limited by the size and location of such natural reservoirs. EGS reduces theseconstraints by allowing for the creation of hydrothermal reservoirs in deep, hot but hydrothermalnaturally dry geological formations.EGS techniques can also extend the lifespan ofnaturally occurring hydrothermal resources. Given the costs and limited full full-scalesystem research to date, EGS remains in its infancy, with only a few research and infancy,jaro education
  • 72. PROJECT REPORT: Challenges & Opportunities For 72 “Renewable energy in Indian Perspective Renewable Perspective”pilot projects existing around the world and no commercial scale EGS plants to date. commercial-scaleThe technology is so promising, however, that a number of studies have found thatEGS could quickly become widespread.4.4.5 Potential India Figure 20: Indian probable regions for Geo TharmalIt has been estimated from geological, geochemical, shallow geophysical andshallow drilling data it is estimated that India has about 10,000 MWe of geothermalpower potential that can be harnessed for various purposes. Rocks covered on the tialsurface of India ranging in age from more than 4500 million years to the present dayand distributed in different geographical units. The rocks comprise of Archean,Proterozoic, the marine and continental Palaeozoic, Mesozoic, Teritary, Quaternary neetc., More than 300 hot spring locations have been identified by Geological survey ofIndia (Thussu, 2000). The surface temperature of the hot springs ranges from 35 Cto as much as 98 C. These hot springs have been grouped together and termed asdifferent geothermal provinces based on their occurrence in specific geotectonicregions, geological and strutural regions such as occurrence in orogenic belt regions,jaro education
  • 73. PROJECT REPORT: Challenges & Opportunities For 73 “Renewable energy in Indian Perspective Renewable Perspective”structural grabens, deep fault zones, active volcanic regions etc., Different orogenic zones,regions are – Himalayan geothermal province, Naga Lushai geothermal province, Naga-LushaiAndaman-Nicobar Islands geothermal province and non orogenic regions are – Nicobar non-orogenicCambay graben, Son-Narmada Narmada-Tapi graben, west coast, Damodar valley, Mahanadivalley, Godavari valley etc. Puga Valley (J&K) Tatapani (Chhattisgarh) Godavari Basin Manikaran (Himachal Pradesh) Bakreshwar (West Bengal) Tuwa (Gujarat) Unai (Maharashtra) Jalgaon (Maharashtra)4.4.6 Historical Capacity & Consumption DataThere is no installed geothermal generating capacity as of now and only direct uses(e.g. drying) have been detailed. Total thermal installed 203 capacity in MWt: Direct use in TJ/year 1,606.30 Direct use in GWh/year 446.2 Capacity factor 0.25 Table 13: Direct Uses Geothermal Field Estimated (min.) Status reservoir Temp (Approx) Puga geothermal 240oC at 2000m From geochemical and deep field geophysical studies (MT) Tattapani Sarguja 120oC - 150oC at 500 Magneto telluric survey done by (Chhattisgarh) meter and 200 Cat NGRI 2000 m Tapoban Chamoli 100oC at 430 meter Magneto telluric survey done by (Uttarakhand) NGRI Cambay Garben 160oC at 1900 meter Steam discharge was estimated 3000 (Gujrat) (From Oil cu meter/ day with high exploration temperature gradient. borehole)jaro education
  • 74. PROJECT REPORT: Challenges & Opportunities For 74 “Renewable energy in Indian Perspective Renewable Perspective” Badrinath Chamoli 150oC estimated Magneto-telluric study was done by telluric (Uttarakhand) NGRI Deep drilling required to ascertain geothermal field Geothermal Field Reservoir Temp Status (Approx) Surajkund 110oC Magneto-telluric study was done by telluric Hazaribagh NGRI. (Jharkhand) Heat rate 128.6 mW/m2 Manikaran 100oC Magneto-telluric study was done by telluric Kullu (H P) NGRI Heat flow rate 130 mW/m2 Kasol 110oC Magneto-telluric study was done by telluric Kullu (H P) NGRI Table 14 : Current ProjectsThere are no operational geothermal plants in India.4.4.7 Cost, Price and ChallengesUnlike traditional power plants that run on fuel that must be purchased over the life ofthe plant, geothermal power plants use a renewable resource that is not susceptibleto price fluctuations.New geothermal plants currently are generating electricity from 0.05$ to 0.08$ perkilowatt hour (kwh).Once capital costs .Once the capital costs have been recovered capitalprice of power can decrease below 0.05$ per kwh. The price of geothermal is withinrange of other electricity choices available today when the costs of the lifetime of theplant are considered.Most of the costs related to geothermal power plants are related to resource geothermalexploration and plant construction. Like oil and gas exploration, it is expensive andbecause only one in five wells yield a reservoir suitable for development .Geothermaldevelopers must prove that they have reliable resource before they can secure reliablemillions of dollar required to develop geothermal resources.jaro education
  • 75. PROJECT REPORT: Challenges & Opportunities For 75 “Renewable energy in Indian Perspective Renewable Perspective” Figure 21: Geo thermal power costing4.4.8 DrillingAlthough the cost of generating geothermal has decreased by 25 percent during thelast two decades, exploration and drilling remain expensive and risky. Drilling Costsalone account for as much as one one-third to one-half to the total cost of a geothermal halfproject. Locating the best resources can be difficult; and developers may drill manydry wells before they discover a viable resource. Because rocks in geothermal areasare usually extremely hard and hot, developers must frequently replace drillingequipment. Individual productive geothermal wells generally yield between 2MW and5MW of electricity; each may cost from $1 million to $5 million to drill. A few highlyproductive wells are capable of producing 25 MW or more of electricity.4.4.9 TransmissionGeothermal power plants must be located near specific areas near a reservoirbecause it is not practical to transport steam or hot water over distances greater thantwo miles. Since many of the best geothermal resources are located in rural areas ,developers may be limited by their ability to supply electricity to the grid. New power erslines are expensive to construct and difficult to site. Many existing transmission linesare operating near capacity and may not be able to transmit electricity withoutsignificant upgrades. Consequently, any significant increase in the number of icantgeothermal power plants will be limited by those plants ability to connect, upgrade orjaro education
  • 76. PROJECT REPORT: Challenges & Opportunities For 76 “Renewable energy in Indian Perspective Renewable Perspective”build new lines to access to the power grid and whether the grid is able to deliveradditional power to the market. wer4.4.10 Barriers Finding a suitable build location. Energy source such as wind, solar and hydro are more popular and better established; these factors could make developers decided against geothermal. Main disadvantages of building a geothermal energy plant mainly lie in the exploration stage, which can be extremely capital intensive and high high-risk; many companies who commission surveys are often disappointed, as quite often, the land they were interested in, cannot support a geotherm energy geothermal plant. Some areas of land may have the sufficient hot rocks to supply hot water to a power station, but many of these areas are located in harsh areas of the world (near the poles), or high up in mountains. Harmful gases can escape from deep within the earth, through the holes within drilled by the constructors. The plant must be able to contain any leaked gases, but disposing of the gas can be very tricky to do safely.4.4.11 Geo Thermal companies in India Panx Geothermal LNJ Bhilwara Tata Power Thermax NTPC Avin Energy Systems GeoSyndicate Power Private Limited4.4.12 RD&D PrioritiesIn the case of geothermal energy, several topics are identified as being key to itsadvancement in the global market place. These are related to cost reduction,sustainable use, expansion of use into new geographical regions, and new eapplications. The priorities are categorized as “general” or specific to RD&D.jaro education
  • 77. PROJECT REPORT: Challenges & Opportunities For 77 “Renewable energy in Indian Perspective Renewable Perspective”General priorities: Life-cycle analysis of geothermal power generation and direct use systems. cycle Sustainable production from geothermal resources. Power generation through improved conversion efficiency cycles. Use of shallow geothermal resources for small scale individual users. small-scale Studies of induced seismicity related to geothermal power generation (conventional systems and enhanced geothermal systems. nventionalSpecific RD&D priorities: Commercial development of EGS. Development of better exploration, resource confirmation and management tools. Development of deep (>3 000 m) geothermal resources. Geothermal co-generation (power and heat). generation4.5 Tidal EnergyOcean can produce two types of energy: thermal energy from the suns heat, andmechanical energy from the tides and waves. The fact that the marine renewablesector is less well developed than other energy industries presents companies with industriesboth opportunities and challenges. The lack of an established industry structure canmake entry into the market uncertain for newcomers. However, this lack of structurealso means that companies are potentially more able to create and take toopportunities than is possible in other parts of the energy industry that are developedand more mature. A wide range of companies are involved in the marine renewablesector. The figure below shows the key segments of the sector - services that areneeded for the successful completion of a project range from insurance and finance,resource assessments, environmental surveys, design, manufacture, offshoreconstruction, operation and decommissioning.Tides are generated through a combination of forces exerted by the gravitational pull combinationof the sun and the moon and the rotation of the earth. The relative motion of thethree bodies produces different tidal cycles which affect the range of the tides. Inaddition, the tidal range is increased substantially by local effects such as shelving, substantiallyfunnelling, reflection and resonance. Energy can be extracted from tides by creatinga reservoir or basin behind a barrage and then passing tidal waters through turbinesin the barrage to generate electricity. Tidal energy is extremely site specific requires Tidalmean tidal differences greater than 4 meters and also favourable topographicaljaro education
  • 78. PROJECT REPORT: Challenges & Opportunities For 78 “Renewable energy in Indian Perspective Renewable Perspective”conditions, such as estuaries or certain types of bays in order to bring down costs ofdams etc. Since India is surrounded by sea on three sides, its potential to harnesstidal energy has been recognized by the Government of India.4.5.1 TechnologyTidal barrage is a way of converting the energy of tides into electric power. A tidalbarrage works in a similar way to that of a hydroelectric scheme, except that the damis much bigger and spans a river estuary. When the tide goes in and out, the waterflows through tunnels in the barrage. The ebb and flow of the tides can be used toturn a turbine, or it can be used to push air through a pipe, which then turns a throughturbine. Company Class Technology Country Year Stage Aqua Marine Tidal Horizontal Power Axis Turbine UK 2007 Prototype Verdant Tidal Horizontal Power Axis Turbine US 2000 Commercial Marine Tidal Horizontal Current Axis Turbine UK 2000 Commercial Turbines SMD Tidal Horizontal Hydrovision Axis Turbine UK 2003 Prototype Open-Hydro Tidal Open Center Pre- Pre Turbine Ireland 2006 Commercial Hammerfest Tidal Horizontal Strom Axis Turbine Norway 2007 Pilot Table 15: Commercial Status of Tidal Stream Devices (as on 2009)4.5.2 Potential of tidal energy in IndiaThe most attractive locations are the Gulf of Cambay and the Gulf of Kachchh on thewest coast where the maximum tidal range is 11 m and 8 m with average tidal rangeof 6.77 m and 5.23 m respectively. The Ganges Delta in the Sunderbans in WestBengal also has good locations for small scale tidal power development. Themaximum tidal range in Sunderbans is approximately 5 m with an averag tidal averagerange of 2.97 m.The identified economic tidal power potential in India is of the order of 8000 8000-9000MW with about 7000 MW in the Gulf of Cambay about 1200 MW in the Gulf ofKachchh and less than 100 MW in Sundarbans.jaro education
  • 79. PROJECT REPORT: Challenges & Opportunities For 79 “Renewable energy in Indian Perspective Renewable Perspective”4.5.3 Proposed tidal power projects in IndiaMinistry of New and Renewable Energy said in Feb 2011 that it may provide financialincentives for as much as 50 percent of the cost for projects seeking to demonstratetidal power.4.5.4 Kachchh Tidal Power Project In, 1970, the CEA had identified this tidal project in the Gulf of Kachchh in A Gujarat. The investigations were formally launched in 1982. Sea bed analysis and studies for preparation of feasibility report were of highly specialized and complex nature without precedence in the country. More than twelve specialized organizations of Govt. of India and Govt. of Gujarat were involved in the field of investigations. The techno economic feasibility study has been techno-economic completed in a very scientific and systematic manner and the feasib feasibility report completed in 1988. The proposed tidal power scheme envisages an installation of 900 MW project biggest in the world, located in the Hansthal Creek, 25 Kms. from Kandla Port in District. The main tidal rockfill barrage of 3.25 Km length was pr proposed to be constructed across Hansthal Creek which will accommodate the power house, sluice gates and navigational lock. It envisages installation of 900 MW capacity comprising of 36 geared bulb type turbo-generators units of 25 MW each and 48 sluice gat each of 10 M. generators gates x 12 M. size would generate 1690 Gwh of energy annually. Unfortunately, this project execution has not been taken up so far because of unknown reasons. In Jan 2011, the state of Gujarat announced plans to install Asia’s first commercial-scale tidal current power plant; the state government approved scale the construction of a 50 MW project in the Gulf of Kutch.4.5.5 Durgaduani CreekThe countrys first tidal power generation project is coming up at Durgaduani Creekof the Sundarbans. The 3.75 mw capacity Durgaduani Creek tidal energy project is a .technology demonstration project and will span over an area of 4.5 km. (Oct 2008data).jaro education
  • 80. PROJECT REPORT: Challenges & Opportunities For 80 “Renewable energy in Indian Perspective Renewable Perspective”4.5.6 Tidal Barriers Intermittent supply - Cost and environmental problems, particularly barrag barrage systems are less attractive than some other forms of renewable energy. Global estimates put the price of generation at 13 15 cents/kWh (no Indian 13-15 estimates available) Cost - The disadvantages of using tidal and wave energy must be considered before jumping to conclusion that this renewable, clean resource is the ing answer to all our problems. The main detriment is the cost of those plants. The altering of the ecosystem at the bay - Damages like reduced flushing, winter icing and erosion can change the vegetation of the area and disrupt the vegetation balance. Similar to other ocean energies, tidal energy has several prerequisites that make it only available in a small number of regions. For a tidal power plant to produce electricity effectively (about 85% efficiency), it requires a basin or a gulf that has a mean tidal amplitude (the differences between spring and neap tide) of 7 meters or above. It is also desirable to have semi-diurnal tides where there are two high and low tides every day. A diurnal barrage across an estuary is very expensive to build, and affects a very wide area - the environment is changed for many miles upstream and downstream. Many birds rely on the tide uncovering the mud flats so that they can feed. There are few suitable sites for tidal barrages. Only provides power for around 10 hours each day, when the tide is actually moving in or out. Present designs do not produce a lot of electricity, and barrages across river estuaries can change the flow of water and, consequently, the habitat for birds and other wildlife Expensive to construct Power is often generated when there is little demand for electricity Limited construction locations Barrages may block outlets to open water. Although locks can be installed, this is often a slow and expensive process process. Barrages affect fish migration and other wildlife many fish like salmon swim wildlife- up to the barrages and are killed by the spinning turbines. Fish ladders may be used to allow passage for the fish, but these are never 100% effective. Barrages may also destroy the habitat of the wildlife living near it destroyjaro education
  • 81. PROJECT REPORT: Challenges & Opportunities For 81 “Renewable energy in Indian Perspective Renewable Perspective” Barrages may affect the tidal level - the change in tidal level may affect navigation, recreation, cause flooding of the shoreline and affect local marine life Tidal plants are expensive to build They can only be built on ocean coastlines, which mean that for communities which are far away from the sea, its useless.4.6 Wave PowerOcean wave energy is captured directly from surface waves or from pressurefluctuations below the surface. Wave power systems convert the motion of thewaves into usable mechanical energy which in lump can be used to generateelectricity. Waves are caused by wind blowing on the surface of the water. Whereastidal power relies on the mass movement of the water body, waves act as a carrierfor kinetic energy generated by the wind.4.6.1 Technology1. Float Or Buoy Systems that use the rise and fall of ocean swells to drivehydraulic pumps. The object can be mounted to a floating raft or to a device fixed onthe ocean bed. A series of anchored buoys rise and fall with the wave. The ofmovement is used to run an electrical generator to produce electricity which is thentransmitted ashore by underwater power cables.2. Oscillating Water Column Devices in which the in-and-out motion of wave at out wavesthe shore enters a column and force air to turn a turbine. The column fills with wateras the wave rises and empties as it descends. In the process, air inside the columnis compressed and heats up, creating energy. This energy is harnessed and sent t toshore by electrical cable.3. Tapered Channel relies on a shore mounted structure to channel and concentratethe waves driving them into an elevated reservoir. Water flow out of this reservoir isused to generate electricity using standard hydropower technologies. technologies.4.6.2 Potential of Wave energy in IndiaThe potential along the 6000 Km of coast is about 40,000 MW. This energy ishowever less intensive than what is available in more northern and southernlatitudes. In India the research and development activity for exploring wave energystarted at the Ocean Engineering Centre, Indian Institute of Technology, Madras in1982. Primary estimates indicate that the annual wave energy potential along theIndian coast is between 5 MW to 15 MW per meter, thus a theoretical potential for ajaro education
  • 82. PROJECT REPORT: Challenges & Opportunities For 82 “Renewable energy in Indian Perspective Renewable Perspective”coast line of nearly 6000 KW works out to 40000-60000 MW approximately. 60000However, the realistic and economical potential is likely to be considerably less. Status Location Installed Capacity Prototype Thiruruvananthpuram, 150 Kw Plant Vizhinjam Fisheries Harbor Table 16: Wave energy projects in India2.6.3 Barriers Depends on the waves – variable energy supply Global estimates put the price of power generation from Waves at 15 15-17 cents/kWh (no Indian cost estimates available) Needs a suitable site, where waves are consistently strong Some designs are noisy Must be able to withstand very rough weather Visual impact if above water or on shore Poses a possible threat to navigation from collisions due to the low profile of the wave energy devices above the water, making them undetectable either above by direct sighting or by radar May interfere with mooring and anchorage lines with commercial and sport sport- fishing May degrade scenic ocean front views from wave energy devices located near or on the shore, and from onshore overhead electric transmission lines.4.7 BiofuelBiofuel development in India centers mainly around the cultivation and processing ofJatropha plant seeds which are very rich in oil (40%). The drivers for this are historic,functional, economic, environmental, moral and political. Jatropha oil has been used ic,in India for several decades as biodiesel for the diesel fuel requirements of remoterural and forest communities; jatropha oil can be used directly after extraction (i.e.without refining) in diesel generators and engines. Jatropha has the potential toprovide economic benefits at the local level since under suitable management it hasthe potential to grow in dry marginal non agricultural lands, thereby allowing villagers non-agriculturaland farmers to leverage non farm land for income generation. As well, increased erage non-farmJatropha oil production delivers economic benefits to India on the macroeconomic ornational level as it reduces the nations fossil fuel import bill for diesel production (themain transportation fuel used in the country); minimizing the expenditure of Indias onjaro education
  • 83. PROJECT REPORT: Challenges & Opportunities For 83 “Renewable energy in Indian Perspective Renewable Perspective”foreign-currency reserves for fuel allowing India to increase its growing foreign currencycurrency reserves (which can be better spent on capital expenditures for industrialinputs and production). And since Jatropha oil is carbon neutral, large . carbon-neutral, large-scaleproduction will improve the countrys carbon emissions profile. Finally, since no foodproducing farmland is required for producing this biofuel (unlike corn or sugar caneethanol, or palm oil diesel), it is considered the most politically and morally diesel),acceptable choice among Indias current biofuel options; it has no known negativeimpact on the production of the massive amounts grains and other vital agriculturegoods India produces to meet the food requirements of its massive population (circa requirements1.1 Billion people as of 2008). Other biofuels which displace food crops from viableagricultural land such as corn ethanol or palm biodiesel have caused serious priceincreases for basic food grains and edible oils in other countries.Indias total biodiesel requirement is projected to grow to 3.6 Million Metric Tons in2011-12, with the positive performance of the domestic automobile industry. Analysis 12,from Frost & Sullivan, Strategic Analysis of the Indian Biofuels Industry reveals that Indian Industry,the market is an emerging one and has a long way to go before it catches up withglobal competitors.The Government is currently implementing an ethanol blending program and ethanol-blendingconsidering initiatives in the form of mandates for biodiesel. Due to these strategies, mandatesthe rising population, and the growing energy demand from the transport sector,biofuels can be assured of a significant market in India. On 12 September 2008, theIndian Government announced its National Biofuel Policy. It aims to meet 20% ofIndias diesel demand with fuel derived from plants. That will mean setting aside140,000 square kilometres of land. Presently fuel yielding plants cover less than5,000 square kilometres.4.7.1 Economics of biodiesel produ production from JatrophaProcessing large quantities of oil and the consequent production of glycerol will likelydepress the price of glycerol. If new applications are found to create additionaldemand for glycerol, its price could be stabilized. The above table shows that the tablecost of the feed material is the dominating factor in determining the production costof biodiesel. Even if we neglect the credit for glycerol recovery and sale, the cost ofbiodiesel from Jatropha oil at Rs. 21/litre ($0.47/litre) is very competitive with the verymanufacturing cost of petroleum diesel.jaro education
  • 84. PROJECT REPORT: Challenges & Opportunities For 84 “Renewable energy in Indian Perspective Renewable Perspective” Table 17: Summary of cost of biodiesel production4.7.2 Project operation and crediting period .7.2The project will operate at 70 per cent capacity during the first year and at 100 percent from year two onwards. The carbon emission reduction crediting periods areorganized into three seven- -year intervals, for a total of 21 years.4.7.3 Project cost and financingThe capital cost to be raised through issuance of shares is estimated at Rs. 171 sharesmillion.4.7.4 Project statusThe transesterification plant construction and commissioning is expected to becompleted in coming years. Availability of feedstock is the biggest factor affecting the .start of operations. Since it will take five years for the Pongamia Pinnata trees to willgrow and produce seeds, the initial oil feedstock has to be procured from Jatropha oranimal fats. In the case of feed from animal fats, additional pre pre-treatment isnecessary to neutralize the free fatty acids present in fats; otherwise these acids willreact with the alkaline catalyst and adversely affect the transesterification process.Approval from the CDM Executive Board for certified emission reductions isexpected soon.4.7.5 Biodiesel industry growth wthIndia has just finished the pilot stage and is entering the incubation stage. The EU iswell into the growth phase. For instance, the UK is setting up two plants totalling350,000 t/year capacities in 2005 alone, and a few more are planned in the nearfuture. Of course the hectic growth pace in Europe is fuelled by the EuropeanCommission mandate that biofuels comprise 2 per cent of the fuel consumption by2005 and 5.75 per cent by 2010.Diesel consumption in India is estimated at 66.91 million tons in 2011 2011-2012. Giventhis figure, the biodiesel required for 20 per cent blending would be 13.38 millionjaro education
  • 85. PROJECT REPORT: Challenges & Opportunities For 85 “Renewable energy in Indian Perspective Renewable Perspective”tons. Obtaining biodiesel in this amount is quite a daunting task and involves about14 million hectares of land under Jatropha cultivation. To put it in p perspective, theland currently under sugarcane cultivation is 4.36 million hectares. India may have toimport biodiesel or vegetable oil feedstock or even oilseeds. Figure 22: Biodiesel industry growth curveIn conclusion, the biofuels industry is poised to make important contributions tomeeting India’s energy needs by supplying clean domestic fuel. The ethanol industryis mature, but with efficiency improvements, the use of alternate crops and thedeployment of new technologies like enzymatic fermentation of cellulosic material, itcan easily supply the ethanol requirements for 5 per cent or even 10 per cent ethanolblending. As for biodiesel, R&D work on high oil yielding Jatropha seeds is complete oil-yieldingand pilot projects for plantations and transesterification plants are under way. The ojectsindustry is in the incubation stage, but large scale Jatropha cultivation and the large-scaleinfrastructure for oilseed collection and oil extraction must be established before theindustry can be placed on a rapid growth track. In the meantime imports could help, rapid-growthas could income generated from the sale of certified emission reductions frombiodiesel projects approved by the CDM executive board.jaro education
  • 86. PROJECT REPORT: Challenges & Opportunities For 86 “Renewable energy in Indian Perspective Renewable Perspective”5. CONCLUSIONIndia has a severe electricity shortage. It needs massive additions in capacity to electricitymeet the demand of its rapidly growing economy. The country’s overall powerdeficit—11 percent in 2009 has risen steadily, from 8.4 percent in 2006. About 11 2009—has100,000 villages (17 percent) remain unelectrified, and almost 400 million Indians unelectrified,are without electricity coverage. India’s per capita consumption (639 kWh) is one ofthe lowest in the world.The Integrated Energy Policy Report, 2006, estimates that India will need to increaseprimary energy supply by three to four times and electricity generation by five to sixtimes to meet the lifeline per capita consumption needs of its citizens and to sustaina 8 percent growth rate. The government plans to provide universal access and toincrease per capita consumption to 1,000 kWh by 2012. This translates into a sumptionrequired generation capacity of 800GW compared to 160GW today. The need tobring on new generation capacity and to improve operational efficiency in capacity—andtransmission and distribution distribution—is clear.Renewable energy can be an important part of India’s plan not only to add new rgycapacity but also to increase energy security, address environmental concerns, andlead the massive market for renewable energy. More than three-fourths of India’s three-electricity production depends on coal and natural gas. At current usage levels, dependsIndia’s coal reserves are projected to run out in 45 years. India already imports 10percent of its coal for electricity generation, and the figure is projected to increase to16 percent by 2011.Like coal, gas and oil have witnessed considerable price volatility in recent years. oal,Development of renewable energy sources, which are indigenous and distributedand have low marginal costs of generation, can increase energy security bydiversifying supply, reducing import dependence, and mitigating fuel price volatility. ucingAccelerating the use of renewable energy is also indispensable if India is to meet itscommitments to reduce its carbon intensity. The power sector contributes nearly halfof the country’s carbon emissions. On average, every 1GW of additional renewable onenergy capacity reduces CO2 emissions by 3.3 million tons a year. Local ancillarybenefits in terms of reduced mortality and morbidity from lower particulateconcentrations are estimated at 334 lives saved/million tons of carbon abated. livesRenewable energy development can also be an important tool for spurring regionaleconomic development, particularly for many underdeveloped states, which have thejaro education
  • 87. PROJECT REPORT: Challenges & Opportunities For 87 “Renewable energy in Indian Perspective Renewable Perspective”greatest potential for developing such resources. It can provide secure electricitysupply to foster domestic industrial development, attract new investments, andhence serve as an important employment growth engine, generating additionalincome.Renewable energy is seen as the next big technology industry, with the potential totransform the trillion dollar energy industry across the world. China seized thisinitiative to become a world leader in manufacturing renewable energy equipment.India’s early and aggressive incentives for the wind sector h have led to thedevelopment of world-class players. Investing in renewable energy would enable classIndia to develop globally competitive industries and technologies that can providenew opportunities for growth and leadership by corporate India.Almost 400 million Indians about a third of the subcontinent’s population ion Indians—about population—don’thave access to electricity. This power deficit, which includes about 100,000 un un-electrified villages, places India’s per capita electricity consumption at just 639kWh—among the world’s lowes rates. among lowestThe access gap is complicated by another problem: more than three three-quarters ofIndia’s electricity is produced by burning coal and natural gas. With India’s rapidly rapidly-growing population— currently 1.1 billion along with its strong economic growth in billion—alongrecent years, its carbon emissions were over 1.6 billion tons in 2007, among theworld’s highest.This is unsustainable, not only from a climate change standpoint, but also becauseIndia’s coal reserves are projected to run out in four decades. India alr already importsabout 10% of its coal for electricity generation, and this is expected to reach 16% thisyear.India’s national and state governments are taking action to correct this vicious circleof power deficits and mounting carbon emissions. The national government has set a nationaltarget of increasing renewable energy generation by 40 gigawatts (GW) by 2022, upfrom current capacity of 15 GW, itself a threefold increase since 2005. Still,renewable sources account for just 3.5% of India’s energy generation a present, so atthe scale of the challenge is formidable. The cost of meeting it will be high unless thetremendous innovative capacity of India and market reforms can be coordinated tomake India a clean energy leader.An excellent new study, Unleashing the Potential of Renewable Energy in India,produced by a World Bank team led by my colleague Gevorg Sargsyan, andjaro education
  • 88. PROJECT REPORT: Challenges & Opportunities For 88 “Renewable energy in Indian Perspective Renewable Perspective”supported by the Energy Sector Management Assistance Program (ESMAP),estimates that achieving the Indian government’s renewable energy goals for thenext decade will cost $10 - $64 billion in subsidies. The lower-cost scenario is based coston developing low-diversity, low cost renewable energy sources, while the higher diversity, low-cost higher-cost estimate is based on a renewable energy mix that is high-diversity, including diversity,high-cost sources like solar. Spread over 10 years, the low cost option is within cost low-costreach. And if fossil fuel prices continue to rise free of distorting subsidies the rise—free subsidies—higher-cost scenarios grow more viable. costBut power generation is just part of the challenge involved in exploiting India’sestimated 150 GW of renewable energy potential; the other challenge istransmission and distribution of the power to far flung areas of the country. A $1 $1-billion World Bank loan approved in 2009 is helping to turn this around. It supportsimplementation of a plan by India’s national power transmission utility, PowergridCorporation, to strengthen five transmission systems in the northern, western andsouthern regions of the country. This will enable transfer of power from energy country.surplus regions to towns and villages in under served regions of the country. It will under-servedalso increase the integration of national grid, resulting in a more reliable system andreduced transmission losses.By 2050, some estimates put India’s power generation requirements at one terawatt,or one trillion watts. This would be a six fold increase in India’s current installed six-foldpower capacity. It is a big challenge. But it is a big opportunity too, for Indiancompanies, for the creation of Indian jobs, for greater Indian prosperity. Because ies,most of India’s power plants have yet to be built, India has options that manycountries can only dream of. Instead of being locked into following a high high-carbonenergy track, India can lead the way to a lower carbon, renewable energy path. ia lower-carbon,India is already home to Suzlon, the third leading wind energy installer worldwide,with almost 10% of the total global market. Other innovative companies in solarenergy, biomass energy production, and energy efficiency are growing in India’s production,vibrant entrepreneurial sector. In addition, India’s waterways offer abundant smallhydropower potential that remains untapped because the transmission anddistribution capacity is inadequate.jaro education
  • 89. PROJECT REPORT: Challenges & Opportunities For 89 “Renewable energy in Indian Perspective Renewable Perspective”6. BIBLIOGRAPHYWeb Links 1. http://en.wikipedia.org/wiki/Renewable_energy_in_India 2. http://en.wikipedia.org/wiki/Biofuel_in_India 3. http://en.wikipedia.org/wiki/Electricity_sector_in_India 4. http://www.indiasolar.com/survey http://www.indiasolar.com/survey-swh.htm 5. http://www.triplepundit.com 6. http://www.prlog.org/11363349 http://www.prlog.org/11363349-solar-power-business-opportunities-in- -india-solar-and- wind-power-as-viable-solution.html solution.html 7. http://uk.ibtimes.com/articles/20110803/indiagrowing http://uk.ibtimes.com/articles/20110803/indiagrowing-solar-power-potential.htm potential.htm 8. http://www.business-opportunities.biz/2005/02/28/solar opportunities.biz/2005/02/28/solar-power-business business-idea/ 9. http://www.renewableenergyworld.com/rea/news/article/2010/08/indias http://www.renewableenergyworld.com/rea/news/article/2010/08/indias-solar- opportunities-and-challenges challenges 10. http://www.business-standard.com/india/news/huge andard.com/india/news/huge-solar-power-potential potential-in-india-solar- equipment-co/101166/on co/101166/on 11. http://www.greenworldinvestor.com/201 http://www.greenworldinvestor.com/2010/05/30/solar-energy-in-india- -biggest- oppurtunity-in-energy-in in-the-21st-century/ 12. http://www.eai.in/ref/ae/win/win.html 13. http://www.inwea.org/aboutwind http://www.inwea.org/aboutwindenergy.htm 14. http://www.eai.in/ref/ae/win/business_opportunities.html 15. http://www.eai.in/ref/ae/win/policies.html 16. http://www.alternative- -energy-news.info/future-renewable-energy-india/ india/ 17. http://mnre.gov.in/prog http://mnre.gov.in/prog-smallhydro.htm 18. http://www.eai.in/ref/ae/oce/oce.html 19. http://www.geda.org.in/other_sources/other_re_sources.htm 20. http://www.daviddarling.info/encyclopedia/T/AE_tidal_barrage.html http://www.geda.org.in/other_sources/other_re_sources.htm http://www.powertoday.co.in/fut4.html http://www.virtualsciencefair.org/2006/wong6j2/tidal.html 21. http://www.accessv.com/~shawgrp/energy.htm 22. nptel.iitm.ac.in/courses/Webcourse.../pdf/.../student_slides08.pdf 23. http://www.niot.res.in/projects/desal/desalination_waveenergy http://www.niot.res.in/projects/desal/desalination_waveenergyin.php www.ese.iitb.ac.in/.../Sceneario%20of%20renewable%20energy%20in%20india(R.B.).pdf – http://www.ioes.saga-u.ac.jp/english/about u.ac.jp/english/about-india-otec_e.html 24. http://en.wikipedia.org/wiki/Biofuel_in_Indiajaro education
  • 90. PROJECT REPORT: Challenges & Opportunities For 90 “Renewable energy in Indian Perspective Renewable Perspective” 25. http://www.renewableenergyworld.com/rea/news/article/2011/02/indias-renewable- http://www.renewableenergyworld.com/rea/news/article/2011/02/indias future-challenges-and-prospects prospects 26. http://blogs.worldbank.org/climatechange/node/760Articles 1. Energy Scenario India 2. Indian Renewable Energy Status Report Background Report for DIREC 2010 3. Background Report 4. Increasing Global Renewable Energy Market Share, Recent Trends and Perspective (Beijing International Renewable Energy Conference) Beijing 5. Energy Revolution “A Sustainable Global Energy Outlook 6. Renewables 2011 ” Global Stat Report” Status 7. Renewable Energy in India: Opportunities and Challenges by E&Y 8. Overview of Renewable Energy Potential of India by Global Energy Network Institute 9. Energy Policy Scenarios to 2050 by World Energy Council 10. Energy Policy Scenarios to 2050 Issues and options 2050: 11. Overview Of Small Hydro Power Development In Himalayan Region by Manoj Kumar Kesharwani 12. Small Hydro Potential In India by R.Venkateswaram 13. Making solar thermal power generation in India a reality – Overview of technologies, opportunities and chal challenges 14. Offshore wind Power In India “Opportunities And Challenges” “Opportunities 15. India’s Renewable Energy Sector - Potential and Investment Opportunitiesjaro education