CHALLENGES & OPPORTUNITIES FORRENEWABLE ENERGY IN INDIAN PERSPECTIVE                         United Business Institutes   ...
PROJECT REPORT: Challenges & Opportunities For                                            “Renewable energy in Indian Pers...
PROJECT REPORT: Challenges & Opportunities For                                              “Renewable energy in Indian Pe...
PROJECT REPORT: Challenges & Opportunities For                                             “Renewable energy in Indian Per...
PROJECT REPORT: Challenges & Opportunities For                                             “Renewable energy in Indian Per...
PROJECT REPORT: Challenges & Opportunities For                                             “Renewable energy in Indian Per...
PROJECT REPORT: Challenges & Opportunities For                                              “Renewable energy in Indian Pe...
PROJECT REPORT: Challenges & Opportunities For                                              “Renewable energy in Indian Pe...
PROJECT REPORT: Challenges & Opportunities For                                              “Renewable energy in Indian Pe...
PROJECT REPORT: Challenges & Opportunities For                                                                         “Re...
PROJECT REPORT: Challenges & Opportunities For                                                                       “Rene...
PROJECT REPORT: Challenges & Opportunities For                                                                         “Re...
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PROJECT REPORT: Challenges & Opportunities For        14                                               “Renewable energy i...
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Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
Challenges & opportunities for renewable energy in india
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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.

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  • great info
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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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Challenges & opportunities for renewable energy in india

  1. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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

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