Market Research Report : Biomass Market in India 2011


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Biomass market in India is growing steadily as new initiatives are being taken and investments start flowing in. Additionally, the government is giving various incentives and subsidies to promote the usage of biomass power. These measures can go a long way if the gap in demand and supply needs to be bridged and India has to attain energy security.

The report begins with an introduction section where the break-up of the energy mix has been highlighted and also the estimated capacity addition in the 12th five year plan in renewable energy sector. It also highlights the major technologies employed by the biomass sector. The overview section shows the potential of the biomass sector and estimated growth of biomass over the years. Furthermore, the market overview section explains the capacity additions which have taken place in last few years and the top 5 states in India in terms of installed capacity of biomass power. The market overview section also focuses on the investment pattern of private vs. state government in biomass sector. The various resources used to create biomass have been covered and include the biomass resources in India.

The major driver identified is depleting coal reserves. Due to the depletion of the finite natural source of energy, coal, players are looking at an alternate source of energy. India remains power deficient in peak demand conditions so this gap can be filled by the rising capacity additions through biomass power. It has been found out that setting up a biomass plant needs less capital investment compared to other forms of renewable energy. Other important drivers identified include the major investments that have taken place in this sector in the recent past. Companies in the food processing sector have also ventured into biomass power generation business. Many PE investors have picked up stakes in biomass power generating companies. Shifting from technologies which are less efficient to technologies which are more efficient so that in the long run the cost of electricity/unit is likely to reduce is among the drivers identified. The challenges identified are that the cost of electricity generated through biomass power plants is still more than coal fired plants. Also non-availability of raw materials is a major hurdle for the manufacturers and increasing cost of raw materials are responsible for the margins getting squeezed.

In the government initiatives section various fiscal incentives doled out by the government to the manufacturers in order to promote biomass power in India are highlighted. Government regulations and policies in this space are discussed.

The competition section includes brief profiles of the major players in the market along with their financials towards providing an insight into the operations of players in the space.. Strategic recommendations for this market have also been provided in the report.

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Market Research Report : Biomass Market in India 2011

  1. 1. Biomass Market In IndiaBiomass Market In IndiaSeptember 2011
  2. 2. Executive Summary • India has a strong potential to grow in the biomass sector Market  • New initiatives are strengthening the biomass sector Overview • Renewable energy contributes A % to the total demand for energy Drivers Challenges  Depleting coal reserves  Unavailability of raw material  India remains energy deficient India remains energy deficient  Commercially costly Commercially costly  Drivers &   Low capital investmentChallenges  Technological progress  Major investments • Renewable Energy PolicyGovernment  • Fiscal IncentivesRegulations • Biomass Power Program & National Biomass Gasification Program • Mandatory Renewable power purchase & National Bio‐energy Mission Major Players in the MarketCompetition p Player 1 aye Player 2 aye Player 3 aye 3 Player 4 aye BIOMASS MARKET IN INDIA 2011.PPT 2
  3. 3. •Introduction Introduction•Market Overview•Drivers & Challenges Di & Ch ll•Government Initiatives•Competition•Strategic Recommendations Strategic Recommendations•Appendix BIOMASS MARKET IN INDIA 2011.PPT 3
  4. 4. In India, thermal power largely dominates the energy sector due to its cost advantagesIntroduction (1/2) Renewable Energy addition in 20‐‐‐‐‐• Indian energy sector is largely dominated by the thermal energy 15.000• To meet the increase in the total peak power demand a6 and energy requirement, an additional K MW of 10.000 capacity is proposed to be added during 20‐‐‐‐‐ a5 5.000• Private sector players contribute almost ~B % of total p y a3 a4 a1 a2 generating capacity addition in G th Plan and are set 0 to go beyond K2 % during Hth Plan A B C D E F• As per the ABC, India has a total potential of about R MW for power generation from different renewable p g energy sources (excluding solar) Break up of Energy Mix (20‐‐) B k fE Mi (20 )  X MW through wind power M N  Y MW by small hydro power a b  Z MW of biomass co generation and waste to energy biomass, co‐generation waste‐to‐energy O power c• Solar energy potential adds up to a minimum of ABC  e Q MW  d P BIOMASS MARKET IN INDIA 2011.PPT 4
  5. 5. Biomass market in India is still in its nascent stage and has strong potential to growMarket Overview – Biomass (1/3)  Market Size and Potential (20‐‐)• Although the potential of biomass sector in India is  huge, very little of it has been tapped so far J 20,000 b• Biomass market is further likely to assume  importance as India imports the bulk requirements of  15,000 Capacity Potential petrol and coal 10,000 a• Bio‐energy is obtained from biomass primarily  through the techniques of direct combustion and  through the techniques of direct combustion and 5,000 5 000 gasification 0• Biomass power is of  strategic importance to India as  India produces about D mn tons of biomass per year  Estimated Growth in the Market• Apart from biomass power being an important Apart from biomass power being an important  source of energy, it can also provide job  opportunities  especially in the rural areas 8,000 D  In many cases the farmers with the help of  local groups  6,000 D% have developed wasteland for energy crop plantations have developed wasteland for energy crop plantations 4,000 C 2,000 B A 0 20-- 20-- 20-- 20-- BIOMASS MARKET IN INDIA 2011.PPT 5
  6. 6. Drivers & Challenges – Summary  Drivers Depleting coal reserves D l ti l Challenges Ch ll India remains energy deficient Unavailability of raw material Low capital investment Commercially costly Technological progress Major investments BIOMASS MARKET IN INDIA 2011.PPT 6
  7. 7. Major Players (1/12)Company Snapshot: Player 1Corporate Information Financial PerformanceHeadquarters Place 1 Place 1 Revenue Net Income DFounded 20‐‐ 15 1.0Products/ 10 C Product 1, Service 1 BServices Services 0.5 5 AKey People ABC, XYZ 0 0.0 20-- 20-- 20-- 20--Business HighlightsBusiness Highlights• Player 1  operates as an engineering, procurement, and construction (EPC) company in India • This company has recently launched an an IPO in 20‐‐  The company plans to invest in three biomass‐ based plants of A  MW each in Punjab and another B biomass plants of K MW each in  Rajasthan  Rajasthan  The company will use refuse derived fuel from its municipal solid waste business as fuel for the plants BIOMASS MARKET IN INDIA 2011.PPT 7
  8. 8. Thank you for the attentionThe Biomass Market – India report is part of Netscribes’ Cleantech Industry Series. For more detailed information or customized research requirements please contact:Gaurav Kumar Gagan Uppal  lPhone: +91 33 4064 6214 Phone: +91 22 4098 7530E‐Mail: E‐Mail: gagan.uppal@netscribes.comResearch on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick Research on India is a product of Netscribes (India) Pvt Ltd Research on India is dedicated to disseminating information and providing quickinsights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries onAbout NetscribesNetscribes is a knowledge‐consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment &  g g f g p y p p fbusiness research, business & corporate intelligence, content‐management services, and knowledge‐software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one‐stop shop designed to fulfil clients’ profitability and growth objectives.Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Disclaimer: This report is published for general information only Although high standards have been used the preparation Research on IndiaNetscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. BIOMASS MARKET IN INDIA 2011.PPT 8