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HOW COMPANIES ARE
BUYING CLEAN ENERGY
IN INDIA
Deepak Krishnan, Manager, WRI India
TODAY’S SPEAKERS
• Alex Perera, Deputy Director, Energy
Program, WRI
• Deepak Krishnan, Manager, Charge, WRI
India
• Vince...
FLOW OF THE PRESENTATION
I. Setting the Stage
II. About Green Power Market Development
Group (GPMDG)
III. Sector Snapshot ...
SETTING THE
STAGE
TRADITIONAL MARKETS (USA AND EU) HAVE
RETAINED THEIR PRIMACY, BUT OTHER REGIONS,
PRIMARILY ASIA, ARE CATCHING UP
Source: C...
CLEAN ENERGY MINISTERIAL CAMPAIGN
http://www.cleanenergyministerial.org/Our-Work/Campaigns/Corporate-Sourcing-of-
Renewabl...
WHAT IS GREEN POWER
MARKET DEVELOPMENT
GROUP (GPMDG)?
EASY TO REMEMBER MNEMONIC… 
• Good Policies Make Demand (for
corporate RE) Grow
• … if you are not a mnemonic fan…
• Gree...
GPMDG: A PARTNERSHIP OF WORLD RESOURCES INSTITUTE
(WRI) AND CONFEDERATION OF INDIAN INDUSTRY (CII)
• Aggregates demand and...
GPMDG BENEFITS TO INDUSTRY
• Help fulfil RPO obligations and green mandates
for industry
• Connect industry to top RE supp...
2000
GPMDG
founded and
joint by 11
major U.S.
businesses.
2005
GPMDG
model
replicated
in Europe.
2012
GPMDG launched
in In...
Green Power Market Development Group - India
Transaction support for iconic
companies
Policy advocacy
Demand aggregation/ ...
MEMBERS OF GPMDG INDIA
SECTOR
SNAPSHOT: INDIA
DRIVERS OF CHANGE IN INDIA
National
• 175 GW of RE by 2022 (100 GW solar, 60 GW wind)
• 40% of installed capacity to be no...
THEORY OF RE PROCUREMENT: BUSINESS CASE
Diesel
power
₹ 14
₹ 30
Grid
power
₹ 6.3
₹ 8.4
Solar
power
₹ 6.0
₹ 6.5
Wind
power
₹...
THEORY OF RE PROCUREMENT: REGULATORY
COMPLIANCE AND SUSTAINABILITY COMMITMENTS
• Renewable Purchase Obligations (RPOs)
man...
ENABLERS OF CORPORATE RE PROCUREMENT
Open Access Mechanism
Group Captive Scheme
Gross/Net Metering
REC Mechanism
Accelerat...
CHALLENGES FOR CORPORATE RE
PROCUREMENT IN INDIA
•Maharashtra, Karnataka –
additional surcharges for
open access purchases...
WORK IN INDIA
POLICY FOCUSED ACTIVITIES
• Karnataka, Tamil Nadu: Steering committee
based approach
• Maharashtra: Evaluating a sub-commi...
WRI’s Experience Helping Corporations Buy Renewable Energy
WRI’s CollabSolar projectWRI’s support to BIAL’s solar
procurem...
ADOBE’S
EXPERIENCE IN
INDIA
Vince Digneo, Sustainability Strategist, Adobe
Sujatha Ganapathy, Senior Manager – Site Operat...
$5.85B
FY2016
Revenue
Adobe is one of the largest and
most diversified software companies in the world
.
34
Years of
revol...
Adobe’s Renewable Energy Strategy
25
Onsite Collaboration:
NGO’s, peers, governments
Energy Efficiency Offsite PPA’s
Insid...
Adobe Bangalore
WRI’s CollabSolar project
Single large
bundle of
demand for
rooftop
solar power
Buyers of various sizes
Economies of scale...
WRI’s CollabSolar projectWRI’s support to BIAL’s solar
procurement
WRI’s Experience Helping Corporations Buy Renewable Ene...
WRI’s Experience Helping Corporations Buy Renewable Energy
Concept Process Lessons learned
Aggregate bundles at industrial...
WRI’s Experience Helping Corporations Buy Renewable Energy
WRI’s CollabSolar project
Socializing the concept and identifyi...
A GLOBAL
APPROACH
WRI’S GLOBAL RENEWABLE ENERGY WORK:
• Deep dive:
– China
– India
– United States
• Light touch, with partners:
– Vietnam
•...
EVENTS FOR IMMEDIATE ENGAGEMENT
• Enabling Private Sector Clean Energy
Investment in South and Southeast
Asia; March 27-28...
EVENT: ENABLING PRIVATE SECTOR CLEAN ENERGY
INVESTMENT IN SOUTH AND SOUTHEAST ASIA
March 27-28, 2017
Radisson Blu Plaza Ho...
RECOGNIZING FUNDERS
Strategic Core Funding Partners
Bloomberg Philanthropies; Agence Française de Développement (AFD); Iri...
THANK YOU
Deepak Sriram Krishnan
Manager, WRI India
DKrishnan@wri.org
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How Companies Are Buying Clean Energy in India: Lessons from 3 Years of the Green Power Market Development Group

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Lessons from India on how companies, utilities and government can work together to power industry with affordable clean energy. Learn more at https://www.wri.org/events/2017/03/webinar-how-companies-are-buying-clean-energy-india

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How Companies Are Buying Clean Energy in India: Lessons from 3 Years of the Green Power Market Development Group

  1. 1. HOW COMPANIES ARE BUYING CLEAN ENERGY IN INDIA Deepak Krishnan, Manager, WRI India
  2. 2. TODAY’S SPEAKERS • Alex Perera, Deputy Director, Energy Program, WRI • Deepak Krishnan, Manager, Charge, WRI India • Vince Digneo, Sustainability Strategist, Adobe • Sujatha Ganapathy, Senior Manager – Site Operations, Adobe
  3. 3. FLOW OF THE PRESENTATION I. Setting the Stage II. About Green Power Market Development Group (GPMDG) III. Sector Snapshot – India IV. What Does GPMDG Do? V. Adobe’s Experience in India VI. Building on India Work Internationally
  4. 4. SETTING THE STAGE
  5. 5. TRADITIONAL MARKETS (USA AND EU) HAVE RETAINED THEIR PRIMACY, BUT OTHER REGIONS, PRIMARILY ASIA, ARE CATCHING UP Source: Corporate Renewable Energy Procurement Monthly, December 2016, Bloomberg New Energy Finance
  6. 6. CLEAN ENERGY MINISTERIAL CAMPAIGN http://www.cleanenergyministerial.org/Our-Work/Campaigns/Corporate-Sourcing-of- Renewables Goal: get more companies to commit powering operations with renewables and deploy tools and resources to enable more companies large and small, to do so.
  7. 7. WHAT IS GREEN POWER MARKET DEVELOPMENT GROUP (GPMDG)?
  8. 8. EASY TO REMEMBER MNEMONIC…  • Good Policies Make Demand (for corporate RE) Grow • … if you are not a mnemonic fan… • Green Power Market Development Group
  9. 9. GPMDG: A PARTNERSHIP OF WORLD RESOURCES INSTITUTE (WRI) AND CONFEDERATION OF INDIAN INDUSTRY (CII) • Aggregates demand and facilitates deals • Creates interactive platform for buyers, sellers and government • Maps energy requirements of industry • Advocates government to address policy and regulatory issues
  10. 10. GPMDG BENEFITS TO INDUSTRY • Help fulfil RPO obligations and green mandates for industry • Connect industry to top RE suppliers • Address policy and regulatory issues faced by industry
  11. 11. 2000 GPMDG founded and joint by 11 major U.S. businesses. 2005 GPMDG model replicated in Europe. 2012 GPMDG launched in India and has been making tangible progress. 2013 U.S. utility- customer engagements 2014 Corporate RE Buyers’ Principles launched in U.S. WRI’S WORK WITH CORPORATE RE BUYERS
  12. 12. Green Power Market Development Group - India Transaction support for iconic companies Policy advocacy Demand aggregation/ CollabSolar Supported industry representation in convincing Karnataka electricity regulator to waive off grid usage charges for solar projects Provided feedback on the amendments to the captive generation rules by Ministry of Power Started in 2013 in India to replicate WRI’s global renewable energy initiatives. Today, 200+ MW projects in various stages WRI INDIA AND CII AIM TO SCALE UP RENEWABLE ENERGY (RE) IN INDIA BY ENGAGING WITH PRIVATE SECTOR
  13. 13. MEMBERS OF GPMDG INDIA
  14. 14. SECTOR SNAPSHOT: INDIA
  15. 15. DRIVERS OF CHANGE IN INDIA National • 175 GW of RE by 2022 (100 GW solar, 60 GW wind) • 40% of installed capacity to be non-fossil fuel based by 2030 • Electricity in all houses by 2019 • 100 Smart Cities program State • Green Energy Corridor to ensure evacuation from RE plants and inter-state transfer of green energy • States developing strong RE policies, “electricity for all” plans http://mnre.gov.in/file-manager/UserFiles/Achievements-of-Power-Coal-and-MNRE-Nov2015- English.pdf
  16. 16. THEORY OF RE PROCUREMENT: BUSINESS CASE Diesel power ₹ 14 ₹ 30 Grid power ₹ 6.3 ₹ 8.4 Solar power ₹ 6.0 ₹ 6.5 Wind power ₹ 5.5 ₹ 6.5 Cost per kWh of electricity from various sources in India, 2016 3.6 % 3.9 % 3.8 % 3.9 % 4.8 % 5.7 % 3.3 % 5.3 % HT Commercial HT Industrial LT Commercial LT Industrial % average annual increase in electricity tariffs (FY13-17) TANGEDCO BESCOM • Fossil fuel-based electricity prices are rising sharply and continuously • Power deficit is a critical business risk • RE is already cheaper or competitive with grid power and supplements/ augments it
  17. 17. THEORY OF RE PROCUREMENT: REGULATORY COMPLIANCE AND SUSTAINABILITY COMMITMENTS • Renewable Purchase Obligations (RPOs) mandate businesses that procure power from third parties to procure a share of such energy from renewable energy sources • 24 Indian states have notified RPOs • Obligated buyers can also procure Renewable Energy Certificates (RECs) in lieu of direct RE to fulfil their RPO compliance. • Enforcement of penalties for RPO non- compliance is slowly becoming the norm. In Karnataka, non-compliance penalties mandate purchase of RECs to the tune of 110% of the shortfall. • Consumers increasingly prefer products/ services of companies that adhere to the principles of sustainability • Reducing Green House Gas (GHG) emissions by shifting to renewable energy is proven to be an effective way of reducing impacts on the environment. Forums like the India GHG Program help businesses plan such strategies. • Corporates are increasingly aware of this and consider it as one of the elements of their CSR strategy. They also include this as part of their brand positioning by communicating to their consumers about their leadership in sustainability Regulatory Compliance Sustainability Commitments
  18. 18. ENABLERS OF CORPORATE RE PROCUREMENT Open Access Mechanism Group Captive Scheme Gross/Net Metering REC Mechanism Accelerated Depreciation
  19. 19. CHALLENGES FOR CORPORATE RE PROCUREMENT IN INDIA •Maharashtra, Karnataka – additional surcharges for open access purchases •Group captive amendments •Non uniform net/gross metering rules across states
  20. 20. WORK IN INDIA
  21. 21. POLICY FOCUSED ACTIVITIES • Karnataka, Tamil Nadu: Steering committee based approach • Maharashtra: Evaluating a sub-committee based approach
  22. 22. WRI’s Experience Helping Corporations Buy Renewable Energy WRI’s CollabSolar projectWRI’s support to BIAL’s solar procurement WRI’s support to MWC’s aggregated RE procurement WRI supported Bangalore International Airport’s solar procurement by: • Filling-in knowledge gaps at the strategy level • Providing decision making tools • Supporting competitive procurement of solar power
  23. 23. ADOBE’S EXPERIENCE IN INDIA Vince Digneo, Sustainability Strategist, Adobe Sujatha Ganapathy, Senior Manager – Site Operations, Bangalore, Adobe
  24. 24. $5.85B FY2016 Revenue Adobe is one of the largest and most diversified software companies in the world . 34 Years of revolutionizing industries 1%+ Pre-tax profits given to the community ~3,700 Patents* 73% Of employees work in LEED certified workspaces ~16,000 Employees in 37 countries * As of December 2016
  25. 25. Adobe’s Renewable Energy Strategy 25 Onsite Collaboration: NGO’s, peers, governments Energy Efficiency Offsite PPA’s Inside Adobe Outside Adobe
  26. 26. Adobe Bangalore
  27. 27. WRI’s CollabSolar project Single large bundle of demand for rooftop solar power Buyers of various sizes Economies of scale Cheaper pricing Seller Concept Process Lessons learned Convening WRI’s support to BIAL’s solar procurement WRI’s support to MWC’s aggregated RE procurement WRI’s Experience Helping Corporations Buy Renewable Energy
  28. 28. WRI’s CollabSolar projectWRI’s support to BIAL’s solar procurement WRI’s Experience Helping Corporations Buy Renewable Energy Concept Process Lessons learned Socializing the concept (by WRI) Data collection from interested buyers (by WRI) Preliminary site visits (by WRI) Preparation and release of Request for Information (RFI) document (by WRI) Site visits and submission of proposals (by Sellers) Preparation and release of the RFP document (by WRI) Educating the buyers about decision making (by WRI) Analysis & screening of responses to RFI (by WRI) Analysis of the proposals (by WRI) Selection of the winners (by buyers) WRI’s CollabSolar projectWRI’s support to BIAL’s solar procurement WRI’s support to MWC’s aggregated RE procurement
  29. 29. WRI’s Experience Helping Corporations Buy Renewable Energy Concept Process Lessons learned Aggregate bundles at industrial park level to allow for fluctuations of demand and supply Segregate bundles using 2x2 matrix - based on nature of buyer (commercial / industrial) and preference of business model (Capital investment / PPA) Addressing weekend (dynamic) demand, deemed generation & net-metering Addressing the data collection problems Clarify on “CollabSolar rebate” Vs “Cross subsidy within the buyers” Roof space and ownership type Sellers are expected to give an individual price to each buyer based on their credentials and offer a uniform discount that is reflective of the CollabSolar benefit. In case of buyers who operate out of leased spaces, sellers are not comfortable with a third-party PPA based rooftop solar PV installation. Tripartite agreement between the seller, landlord and the buyer is a possible solution in such cases. Neither the sellers nor the buyer wants to pay for the unconsumed power over the weekends. Net- metering is possible solution in such cases. Signing Non-Disclosure Agreements (NDAs) and having detailed clauses about access/ ownership in the next phase can address most of the security concerns of buyers. For MNCs, capital investments need changes in corporate charter and clearance from the head quarters WRI’s CollabSolar projectWRI’s support to BIAL’s solar procurement WRI’s support to MWC’s aggregated RE procurement
  30. 30. WRI’s Experience Helping Corporations Buy Renewable Energy WRI’s CollabSolar project Socializing the concept and identifying the business models WRI met with all the buyers to socialize the concept. Mahindra’s presence was ensured in all the meetings to alleviate concerns about conflict of interest and confidentiality of data. WRI has, with Mahindra’s support, collected data about all aspects of electricity consumption and tariffs. Two feasible business models were presented to buyers after rigorous data analysis. Capacity building for decision making WRI organized a workshop for the interested buyers. RE sellers explained various business models, their offerings and also clarified the concerns of buyers. All the participants were provided with a detailed financial analysis and FAQ documentation. Facilitating the transaction Buyer seller meetings were organized between interested parties. Site visits for detailed assessments and proposal submissions were also facilitated. WRI’s support to BIAL’s solar procurement WRI’s support to MWC’s aggregated RE procurement
  31. 31. A GLOBAL APPROACH
  32. 32. WRI’S GLOBAL RENEWABLE ENERGY WORK: • Deep dive: – China – India – United States • Light touch, with partners: – Vietnam • Exploring: – Colombia – Indonesia – Kenya – Mexico – Philippines
  33. 33. EVENTS FOR IMMEDIATE ENGAGEMENT • Enabling Private Sector Clean Energy Investment in South and Southeast Asia; March 27-28, Bangkok • ConnectKaro, April 5-7, New Delhi • Clean Energy Ministerial, June 6-8, Beijing
  34. 34. EVENT: ENABLING PRIVATE SECTOR CLEAN ENERGY INVESTMENT IN SOUTH AND SOUTHEAST ASIA March 27-28, 2017 Radisson Blu Plaza Hotel, Bangkok, Thailand Details, registration: http://wri-india.org/events/enabling-private-sector-clean-energy-investment- southeast-and-south-asia Attendees • Leading global and regional corporations • Asia-based manufacturers • Government officials from India, Indonesia, Philippines, and Vietnam Objectives • Showcase corporate clean energy goals • Highlight strategies to operationalize clean energy goals within corporate supply chains in Asia • Explore country policies to enable more and faster deployment of clean energy investment Outcomes • Policy recommendations for clean energy investment in key Asian markets • Aggregate corporate demand into bankable deals for financing solar, energy efficiency, and other solutions at scale
  35. 35. RECOGNIZING FUNDERS Strategic Core Funding Partners Bloomberg Philanthropies; Agence Française de Développement (AFD); Irish Aid – Department of Foreign Affairs and Trade; Ministry of Foreign Affairs of the Netherlands; Royal Danish Ministry of Foreign Affairs; Swedish International Development Cooperation Agency (SIDA)
  36. 36. THANK YOU Deepak Sriram Krishnan Manager, WRI India DKrishnan@wri.org

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