Vibrant Gujarat Summit Profile for Energy Spectrum Sector

Vibrant Gujarat ‐ 2015
Renewable Energy: Sector Profile

Table of Contents
3. Renewable Energy sector
3.1 Global Scenario
3.2 India Scenario
3.3 Gujarat Scenario
3.4 Gujarat Scenario – Vision 2020 & Investment Opportunities
3.5 Government Initiatives & Interventions
4. Advantage Gujarat
5. Doing business in Gujarat
6. Tax and Regulatory Framework in Gujarat

3.1 Renewable Energy Sector:
Global Scenario

Renewable Energy Sector
Global Scenario
Sufficient renewable energy resources are available to satisfy World’s current and future energy
demand. Solar energy alone could meet the existing global energy needs 10,000 times over
• From 2011 to 2012 renewable energy capacity saw a growth of 8.5 1 China
percent 2 US
3 Germany
4 Spain
and reached to a total renewable energy capacity of
1,470GW in 2012
• Solar industry experienced a market growth of 18 percent in 2013
• Biofuels grew modestly in 2013, with global production of ethanol
and biodiesel sprouting up to USD 97 8 97.8 billion in investment
compared to USD 95.2 billion in 2012
• Wind energy saw an investment of ~USD 58.5 billion in 2013
Top 6
countries
RE capacity,
Dec 5 Italy
6 India
Dec.2012
World Total energy consumption (Quadrillion, Btu) Renewable Power Capacities (Gigawatts)
600 480
400
1000
800
Total
OECD
600 Total Non
210
CAGR: 1.5%
200
0
128 90 86 71 31 29 24
400
200
OECD
World
Total
0
2010 2020 2030 2040
Source: REN 21, www.cleantechnica.com 5
Note: RE stands for Renewable Energy

Global Scenario
European Union has expressed commitment to a 20:20:20 ambition: 20 percent emissions reduction,
20 percent renewable energy and 20 percent improvement in energy efficiency by 2020
Selected indicators of RE market
d l t
Unit 2011 2012
development E
Global new investment in
billion
279 244
renewable energy (annual)
USD
Solar PV cell production (annual) GW 71 100
billi
Energy
dependence
and energy
security
Growth
Continued
growth in
energy
demand
Ethanol production (annual)
billion
litres
84.2 83.1
Biodiesel production (annual)
billion
litres
22.4 22.5
Countries with policy targets # 118 138
Technological
progress
driving down
capital cost
500
Global Clean Energy Projected Growth
2013 ‐ 2023 (USD Billion)
Drivers
p y g Countries with feed‐in policies # 94 99
247.6
97.8
58 5
91.3
397.8
145.6
93.8
158.4
400
300
200
100
2013
2023
Stakeholder
pressure for
environmen
tal action
Focus on
sustainability
and lowering
environmental
impact
6
58.5
0
Total Biofuels Wind Power Solar Power
Source: REN 21, Clean Edge, Inc. , 2014

India Scenario

India Scenario
Renewable energy is becoming an increasingly important element of India’s national
energy mix
• As per the Ministry of New and Renewable Energy (MNRE), India’s total renewable potential is ~245 GW,
however the current installed capacity is only 28 GW
• Wind energy dominates India’s renewable energy sector. As on 31st March, 2013 wind accounts for ~68 percent
(i.e. 19.05 GW) of India’s total renewable installed capacity
• To boost the growth of renewable energy in India, Government of India and many state governments have
i tii dth i t ll ti f bl th h i li i d fi l
incentivized the installation of renewable energy through various policies and fiscal measures
• By 2050, 69 percent of the country’s energy generation will be from renewable energy (Greenpeace vision)
Break‐up of installed power generation capacity Installed capacity of renewable energy in India
58.30%
12.80%
6%
0.30%
Wind
small hydro
12.30%
17.70%
0.50%
9% 67.90%
2.10%
12.90%
y
Biomass
Solar
Others
Coal Renewable Hydro Nuclear Oil Gas
Source: Ministry of Power, Government of India; Ministry of New and Renewable Energy, Government of India 8

India Scenario: Wind Energy
India ranks fifth in the world in wind power installed capacity with an installed capacity
of19,565 MW (as on June 30th, 2013)
• To drive commercialization of wind power, promote research and development in wind power and to
support wind power projects in country, Government of India initiated the “Wind Power Program” in the
year 1984
• Wind power accounts for 8.5 percent of total energy mix of India
• percent of wind power comes from states: Tamil Nadu, Gujarat, Maharashtra, Rajasthan and
95 pe ce t o d po e co es o 5 states a adu, Guja at, a a as t a, ajast a a d
Karnataka)
Global installed capacity of wind energy
(%)
China
20000
19565
State wise installed capacity (MW)
26.6%
2.2%
3.0%
2.9%
15.7%
U.S.A
Germany
Spain
India
15000
10000
7196
6.5%
8.1% 21.2%
2.7%
France
Italy
UK
Canada
5000 3294 3250 2717 2170
0
514 386 35.1 4.3
11.1% Rest of World
Source: Ministry of New and Renewable Energy, Government of India; IGEF 9

India Scenario: Solar Energy
India has one of the highest irradiation levels in the world
• Policies at the central government and state government level are the main growth drivers of solar energy
sector
• Regulations like Renewable Purchase Obligations (RPOs) inclusion with favorable policies play a major role in
growth of the solar sector
• Gujarat was the first state to release the solar policy in year 2009. In 2010 MNRE launched the Jawaharlal
Nehru National solar Mission (JNNSM) with the objective to add 20 GW of solar power projects by the year
State wise split of solar power projects (MW) JNNSM Capacity addition target
2022
23 37
100
115
Gujarat
Rajasthan
Phase 1
(2009‐13)
Phase 2
(2013‐17)
Phase3
(2017‐22)
Utility grid power
including roof top
(MW)
1100 4000‐10000 20000
852
553
Maharashtra
Andhra Pradesh
Madhya Pradesh
Others
Off grid
installations
(MW)
200 1000 2000
Solar collectors
10
(million square
meters)
7 15 20
Source: Ministry of New and Renewable Energy, Government of India; IGEF

India Scenario: Bio Energy
Bio energy comprises of bio mass, bio fuels and bio gas. A total of 4,449 MW capacity has been
installed in bio energy in both grid connected and off grid capacities in India as on March 31st,
2013
Bi • Biomass based power generation grew at a CAGR of 21.6 percent and increased from 1,112 MW to 3,601 MW between
FY07‐FY13
• 65 percent of biomass based generation comes from baggase based co‐generation
• MNRE is drafting a new policy for National Bio Energy Mission which will be implemented in two phases. Phase1 will be
d executed in th 12th f five year l plan d and h Phase 2 in th 13th f five year l
plan
• Incentives of USD 557 million will be provided in phase 1 to add 3000 MW capacity during the period
Growth of Biomass based power generation
( MW)
Biomass power installed capacity
(MW)
4000
3000
)
CAGR: 21.6%
4000
3000
2000
776 756
3601
2000
1000
1000
0
538 491 380 249.9
124.5 91.3 45.3 43.3 30.5
11
0
2006‐07 2007‐08 2008‐09 2009‐10 2010‐11 2011‐12 2012‐13
Source: Ministry of New and Renewable Energy, Government of India; IGEF

India Scenario: Small Hydro Power
Small Hydro1 Power Capacity increased with CAGR of 11.35 percent from 1.905 MW to
3,632 MW between FY07-FY13
• MNRE is providing 'Central Financial Assistance (CFA)' to set up small/micro hydro projects both in public and private
sectors
• Financial assistance of around INR 150 crore is being provided to the states by the centre for the development of small
hydro‐power projects
• Government created a data base for the potential sites for small hydro projects and identified 6,474 such sites with a
potential of ~19.8 MW
• MNRE signed MOU with IIT, Roorkee for development of small hydropower plants on a contractual basis
Small Hydro power generation in India
(MW)
State wise installed capacity
(MW)
4000
3632
4000 CAGR: 11.35%
3000
3500
3000
2500
2000
1500
1000
964
588
300
943
2000
1000
0
500
0
219 175 158 155 131
Source: Ministry of New and Renewable Energy, Government of India; IGEF, Economic Times 12
1. Projects under 25 MW capacity are considered as “Small Hydro Power” and comes under renewable energy source in India

India Scenario: Way forward
Interplay of favorable risk-return profile at project level coupled with the emerging Indian
merchant power opportunity creates a positive strategic framework for Indian renewable IPP
players
Project Level
•Shorter time‐to‐commissioning than conventional power projects
•Fast‐track project approval‐ significantly fewer environmental or CERC clearances required compared to conventional
power projects
•Easier to achieve financial closure vis‐à‐vis larger projects, Greater predictability of project execution
•Plethora of small‐to‐mid size units in “locally constrained” entrepreneurial setups: ideal for consolidation play
•Bidding route not mandatory for new capacities
Financial Perspective
•Low working capital requirements, particularly for small hydro and wind projects
•Ability to boost returns through emissions trading options
•Regulatory support, including preferential tariffs
•Fiscal incentives (subsidies, grants and tax incentives) available in some States
Sustainability
•Lower fuel sourcing and pricing risk compared to conventional power projects
•Opportunity to de‐risk asset portfolio through geographic and technological options‐ exposure to multiple markets,
regulatory regimes, technologies and climatic conditions
•Lower social friction concerns by promoting ‘inclusive growth’
•Broadening fuel base complements efforts to decouple India’s economic growth from emissions growth and helps to
achieve energy security
Fund Requirement
• Consolidated for renewable fund requirement estimated by MNRE (Strategic plan new and energy sector for the period
13
2011 ‐17 is:
‐ For grid connected renewable energy technologies – USD 2.6 billion
‐ For off grid renewable energy programs – USD 2.7 billion
Source: Vibrant Gujarat Website

3.3 Renewable Energy Sector: Gujarat
Scenario

Gujarat Scenario
Gujarat was a power deficient state barely a decade ago, but now has a surplus power and a
vibrant energy sector. Gujarat contributes ~ 15 percent to India’s renewable energy basket
Total Total
• Share of RE in total energy mix in Gujarat is ~18 percent
• Gujarat’s share of RE sources in Western Region is 46
Source
percent
• Timely tariff revisions have made the sector viable
enabling the state to set up adequate generation capacity 45,000 12,000 3,250
• Uninterrupted power supply attracts companies to set up
Solar > 100,000 69,000 852.31 business in Gujarat
Potential
(India),
MW
potential
(Gujarat),
MW
RE Installed
Capacity MW
Wind 45 000 12 000 3 250
Installed power capacity in Gujarat Break up RE source in Gujarat
21.30%
0.20%
0.70%
Wind
76% 17.80%
1.70%
77.80%
Solar
Biomass
Small Hydro
2.50%
Thermal Renewable Nuclear Hydro
Source: Energy & Petrochemicals Department, Government of Gujarat, Gujarat Energy Development Agency 15
Note: RE stands for Renewable Energy

Gujarat Scenario: Renewable Energy Potential
Renewable Energy in Gujarat by 2020 aims at increase of RE power to the national grid, from
5 percent in 2009-10 to 15 percent of the energy mix by 2020
(National Action Plan on Climate Change).
According TERI “The high to TERI, overall renewable energy potential in Gujarat is very high, considering if all the
identified suitable lands can be made available. Gujarat's overall integrated renewable energy potential is
estimated to be around 748.77 GW”
Source Resource Potential
Sun Solar Radiation 5.75 kWh/Sq.m./day
Biomass 24 million Tonnes 900 MWe
Biogas
200 lakh cattle
population
933 MWe
Energy Plantation 67 lakh Ha.Wasteland 15000 MWe
Wind Coastline & Hilly Regions 12000 MWe
The state has signed power purchase agreements (PPAs) for solar power generation with 80
i t l f 25 i l di T t P USb dS Edi i dM B S l
private players for years, including Tata Power, US-based SunEdision and Moser Baer Solar.
These deals are worth USD 3 billion
Source: Gujarat Power Corporation Limited, TERI, Economic Times, CII, India Today 16

Gujarat Scenario: Renewable Energy Map
Gujarat has a large amount of waste land along with good solar radiation and wind flow for
most of the year. Biomass, Tidal, Geothermal resources are also available in the state.
Source: Gujarat Energy Development Agency 17

Gujarat Scenario: Wind Power
Gujarat has the second largest Wind Power Plant installed capacity in the country which is
about 3250 MW . Annually generating about 5447 million units of electricity.
Gujarat: At a Glance Wind Power Density in Gujarat, W/m2
• Potential: 12000 MW
• Installed Capacity: 3250 MW till date
• Cost: INR 60 million per MW
• The Centre for Wind Energy Technology,
an autonomous R&D institution under
MNRE, has identified and approved 40
sites for wind energy deployment with
annual average wind power density
greater than 200 W/sq. m. at a 50 m
height in Gujarat
• Over a period of last more than 25 years
more than 65 sites have been monitored
for the wind speed and wind power
density, y,
and over 50 sites have been
found feasible for harnessing wind power
Source: TERI, Gujarat Energy Development Agency 18

Gujarat Scenario: Wind Power
The State of Gujarat with its longest coast line in the country and inland windy sites has a
potential of 12,000 MW of wind power
In November 2008 Gujarat won the Best
Wind Power capacity (in MW)
Wind Power Developer State
(Percentage Increase) Award 2008 for
4000
3000
2000
271 555
CAGR: 48% 2,885 3010
1,171 1,485 1,782 2,095
1000 achieving the maximum capacity additions
during the two consequent year FY07 and FY
08 alone the coast of Saurashtra
0
Wind Power Policy and GERC regulatory features
Eligible Unit: Any company/corporate body/association/body of individuals
Sale: Fixed tariff
Tariff: INR 4.15 kWh for 25 years
Open Access / 3rd
party sale:
Allowed banking
Wheeling:
At 66 kV: Normal charges as applicable to open access
Below 66 kV: Normal charges as applicable to open access + 10% of generated fed to the grid
Land:
On a Private Land ; On a Revenue waste land @ 1 hectare per Wind turbine generator on long term
lease of 20 years to the developer
Source: GEDA, GERC 19

Gujarat Scenario: Solar Power
Gujarat has the highest solar generation potential in India –300 days of 5.6 to 6.0 kWh/sq.m/day
solar radiation
• In Gujarat there is a potential of generating 10,000
MW from 1 percent of available wasteland
• The area with the highest solar potential is the district
of Kachchh which gets 310 sunny days in a year and
has the highest direct solar insolation of 6.4 kWh/sq.
m. / day throughout the year
• The sites do not require sun tracing
• Government would be spending about INR 2100
crores/ year for 1400 MU generated by 824 MW
Solar Power Plants in Gujarat for next 12 years
Districts with the highest GH/DN Irradiance,
kWh/m /m2/year
GHI DNI
Jamnagar 2,216 2,697
Junagadh 2,212 2,661
20
Navsari 2,110 2,427
Patan 1,883 2,008
Source: TERI, Gujarat Energy Development Agency

Gujarat Scenario: Solar Power
77 plants totaling to about 852.31 MW capacity were commissioned in Gujarat up to March 2013
Gujarat’s largest solar power plants
Plant District MW
• Gujarat has taken a lead over other states in renewable
energy initiatives particularly in solar power generation It
Adani Enterprises Ltd. Kachchh 40
Sanland Real Estate Pvt. Ltd. Banaskantha 25
T P C L d J 25
initiatives, generation. is the first state in India to achieve RPO target
• Gujarat also has Asia’s First Solar Park
• Village Charanka, Ta:Santalpur, Patan 2024 hectares of
wasteland
Tata Power Company Ltd. Jamnagar Alex Astral Power Pvt. Ltd. Patan 25
Roha Dyechem Pvt. Ltd. Patan 25
• For setting up 3000MW Generation & Manufacturing
Facilities
• 258 MW Capacity Power Plants have been installed
• GPCL the Sun Edison Energy India Pvt.
Ltd.
Patan 25
Kiran Energy Solar Power
Patan 20
is Project Managers
Solar Power Policy : 1st state policy in the country
Pvt. Ltd.
PLG Photovoltaic Patan 20
Hiraco Renewable Energy
Phase
Developers
(Nos.)
Capacity, MW
Phase I allotment 57 406.5
Phase II allotment 27 562 0
21
gy
Pvt. Ltd.
Porbandar 20
562.0
Total 84 968.5

Gujarat Scenario: Solar Power - Tariff
Summary of solar Tariffs, Rs./kWh (projects commissioned Jan 29, 2012 - March 31, 2015)
Period
Jan 29, 2012 –Mar 31,
2012
Apr 1, 2013 –
Mar 31, 2014
Apr 1, 2014 –
Mar 31, 2015
Megawatt ‐ scale PV projects availing accelerated depreciation
Levelized tariff for 25 years 9.28 8.63 8.03
First 12 years 9.98 9.13 8.35
Subsequent 13 years 7.00 7.00 7.00
Megawatt ‐ scale PV projects not availing accelerated depreciation
First 12 years 11.25 10.30 9.42
Subsequent 13 years 7.50 7.50 7.50
Kilowatt ‐ scale PV projects availing accelerated depreciation
Kilowatt ‐ scale PV projects availing accelerated depreciation
Levelized Tariff for Solar Thermal Projects
With accelerated p depreciation benefit 11.55 p per kWh for 25 y
years
Without accelerated depreciation benefit 12.91 per kWh for 25 years
Source: GERC Order no. 1 of 2012: Determination of Tariff for Procurement by the Distribution Licensees and Others from Solar Energy Projects, Jan 2012 22

Gujarat Scenario: Solar Power – Project Locations
Geographical locations of Solar power projects
Source: GETCO 23

Gujarat Scenario: Bio Energy
The total bio-mass potential for Gujarat is about 1,800 MW from crop residue and about 140 MW
from forest residue
Biomass potential in Gujarat
Di t i t ith th hi h t
31.20 MW
capacity biomass
projects
commissioned in
Districts with the highest
biomass potential, MW
Crop
Rajkot 228
Jamnagar 203
Amreli, Junagadh
and Vadodara
13.23 MW
Crop Residue
Forest Residue
F t
g
Bhavnagar 192
Junagadh 168
Surendranagar 142
Amreli 137
waste‐to‐energy
power generation
projects
Forest
Junagadh 18
The dangs 18
Sabarkantha 16
Valsad 15
Bio‐energy programmes
• Institutional biogas plants 9835 m3/day capacity in various institutions across
the state
• India’s first and Asia’s biggest power plant based on biomass gasification has
recently been commissioned at village Kothara in the border district of Kutch
24
Dahod 12
Banaskantha 11
Kutch,
Gujarat. The project is expected to generate 500 KW electricity from its two
generating units

3.4 Renewable Energy Sector: Gujarat
Scenario – Success stories

Gujarat Scenario: Model solar city project - Gandhinagar
Government of India declared Gandhinagar as a Model Solar City setting example for
Solar Cities throughout India and other nations
Gandhinagar: The Model Solar City project Ministry of New and Renewable Energy (MNRE) has launched
a program on “Development Solar Cities” on January 24
10 KW capacity wind‐solar hybrid system
commissioned at Udyog Bhavan, Gandhinagar
of Cities 24,
2011
The program assists Urban Local Governments in:
• Preparation of a master plan for increasing energy
19 solar rooftop systems of 10 KW each
commissioned at government buildings,
Gandhinagar
p p g gy
efficiency and renewable energy supply in the city
• Setting‐up institutional arrangements for the
implementation of the master plan.
• Awareness generation and capacity building activities.
1,240 KW SPV‐based grid‐connected power
generating rooftop systems at government
buildings
The program aims at minimum 10% reduction in projected
demand of conventional energy at the end of five years, which
can be achieved through a combination of energy efficiency
measures and enhancing supply from renewable energy
240 solar rooftop systems of 1 KW each
commissioned at godowns
6 solar hybrid systems of 5 KW each
g pp y gy
sources.
commissioned on government buildings
Source: MNRE, GEDA 26

Gujarat Scenario: 5 MW Gandhinagar Solar Rooftop Programme
Government of Gujarat has launched the ambitious “Gandhinagar (Solar) Photovoltaic Rooftop
Programme” to encourage alternative clean energy sources like solar energy as well as social
participation to advance towards energy self-sustainability
Opportunity for rooftop owners
•This Programme provides an opportunity to property owners in Gandhinagar City for participation by
offering their rooftop or terrace for installation of Solar Photovoltaic System for solar power
generation
Th f t ill b id “G I ti ” hi h h ll b b d th it (kWh) f
• The owner of property will be paid a Green Incentive,” which shall be based on the units of
electricity generated by the SPV system installed on their property
Role of project developer
• In this programme the developer is selected through a transparent competitive bidding process process. The
selected developer will finance/Install/Own/Operate and maintain PV roof systems on owners roof
tops
•The energy generated from this system will be sold to Distribution Company and Distribution
Company will pay duly approved tariff to developers
• S l Selected developers will execute the ““Green Incentive and Lease Agreement”” with individual property
owners, whose rooftop or terrace will be utilized for the SPV system
To be implemented in
• Surat
• Rajkot
• Mehsana
27
• Bhavnagar
• Vadodara
Source: Gujarat Energy Development Agency, Gujarat Power Corporation Ltd

Gujarat Scenario: Gujarat Solar Park – Making India a Solar hub
Asia’s largest "Gujarat Solar Park" to mitigate impact of Climate Change and to protect environment for our
future generation, making Solar Sector vibrant and viable not only in India but also across the Globe
Concentrated zone of p development for solar p
power related activities
• Solar thermal/ PV generation based projects, Solar components manufacturing/ assembling
• Research and development, Capacity Building
• Single window facility for solar power project developers for providing common
Gujarat Solar Park Park, Charanka Charanka, Patan district
GEDA Financial Institutes
Policy directives
Project funding
Processed
applications
GPCL
Nodal Agency for Solar Park
development
GETCO
SSNNL
GERC/CERC
Government agencies
Transmission
infrastructure
Water availability
Tariff determination
Tariff determination
Infrastructure
development charge
Sh d i h l d l
Key Features
Area: approx. 2,024 Ha
Capacity Installed: 258 MW
28
Shared with solar developer,
manufacture, R&D setup
No. of developers: 20

Gujarat Scenario: Gujarat Solar Park – Making India a Solar hub
The only project in Power sector of India that has won this prestigious award
Award merits:
• Gave a discrete definition of “solar park” in the
Indian context
• World’s largest multi‐developer and multi‐beneficiary
solar park with targeted 500 MW
Solar Power Projects at single location
Social Commitment:
• All‐weather road connectivity
• Water to carry out cultivation activities
• Drinking water facility to the Charanka village
• Ambulance service
• State of the art facilit pro ide
29
State‐of‐the‐training facility to provide
training to the villages in various fields

Gujarat Scenario: India’s first canal top Solar power Project
Gujarat has initiated the world’s first canal-based solar power project on Narmada branch
canal new Chandrasan village of Mehsana district
Energy generated from this pilot project will be
directly fed into the local electricity grid and utilized
by nearby towns and villages
Innovative Ideas
• Cover the canal with Solar Panels to
• Save Land @ 5 acre per MW
• Minimize evaporation from canal (9 liters
Technical Detail
• Projected energy production: 1.6 million units/year/MW
million water saving per MW per year)
• Produce eco‐friendly power
• Shadowing effect of panel results in reduced
photosynthesis and less algae growth leading to
• Irradiation: 4.6 – 6.4 kWh/m2
• Installed capacity: 1 MWp
• Technology: polycrystalline solar modules, 280 Wp
• Number of modules: 3616
• Canal length used: 750 m
less maintenance cost
• Pilot Project is for 1 MW
• Power evacuation system: 11 KV
Source: GSECL 30

Gujarat Scenario: Bio energy
Various Bio energy projects have been implemented in Gujarat. Few of them are enlisted
below:
0 0.95 95 MW biogas based power project at Sayaji Industries Industries, Kathwada Kathwada, 2009 2009‐10
• Sayaji Industries, Kathwada is dealing with maize starch products. As a result of maize corn milling, grinding and
processing, about 14000 nm3 biogas is generated. Earlier biogas was being used in the coal fired boilers. Under the
MNRE programme of energy recovery from industrial & commercial wastes, the biogas based power project was
taken up up. The project commissioned in April April'2009 and has been running successfully at about 80% PLF since
commissioning.
12000 nm3 biogas per day (1 MWeq.) maize starch industry liquid waste based
biomethanation plant by Gujarat Ambuja Exports Ltd., at Dalpur , Dist: S.K., 2009‐10
• 12000nm3 /day capacity biomethanation plant is completed & commissioned in December 2009 under MNRE
waste‐to‐energy (WTE) scheme. Plant has been running successfully since its commissioning date. Produced biogas
gas is used in 100% biogas engines in CPP
0.833 MWeq.(10000 nm3/day) capacity maize starch industry liquid waste based
biomethanation plant at Sayaji Industries Ltd., Kathwada, 2010‐11
• Sayaji Industries, Kathwada increased its maize grinding capacity from 325 MT/day to 550 MT/day, the effluent also
increased with higher COD value of about 16000 to 20000 KGs COD. One 10000 nm3/day capacity biomethanation
31
g / y p y
plant has been installed & commissioned December 2011.The same is working with more than 80% efficiency. The
produced biogas is used in its CPP
Source: Gujarat Energy Development Agency

Gujarat Scenario: Large RE Players in Gujarat
Solar power
developers
Solar PV
manufac‐turers
. Sonki Solar India
turers
Wind
power
developers
Wind
equipment
f
32
manufac‐turers

Gujarat Scenario – Vision 2020 & Investment
Opportunities

Gujarat Scenario: 2020
NAPCC goal: 1 percent annual increase of RE power to the national grid, from 5 percent
in 2009-10 to 15 percent of the energy mix by 2020
Source / Installed capacity
(MW) as on 12th five year Plan period
Capacity additions
May
Technology 12th Pl
2012
FY13 FY14 FY15 FY16 FY17 Plan
Wind 2,885 326 377 456 498 508 2,165
SHP 6 2 3 4 3 3 15
BIO 20 35 45 55 60 44 239
Solar 655 209 331 331 441 560 1,872
WTE 0 2 2 0 2 6
Total 3,566 572 758 848 1,002 1,117 4,297
Expected capacity addition in RE sector by
2017 will be 4,297 MW with highest
contribution from wind – 50 percent and solar
– 44 percent
Total installed capacity from RE sources by
2017 – 7,863 MW
Source: Energy & Petrochemicals Department, Government of Gujarat 34

Gujarat Scenario: 2020
Fund requirement
Non‐ Conventional power
projects under private sector
Development of
distributed gas based
power combined with
non conventional sources
Development of wind‐solar
hybrid
installations and
biomass projects
Tidal and geothermal
projects first at a pilot
scale, and then at a
commercial scale
Project Fund required
(USD billion)
Development of large
scale solar parks and
canal‐top solar projects
Wind 2.65
SHP 0.02
Development of solar
manufacturing
iti
p p j
Offshore wind projects
development
Bio Mass 0.24
Solar 3.82
capacities
Development of
projects under solar
rooftop programme
p
WTE 0.01
Total 6 74
35
pp g
(Bhavnagar, Surat,
Rajkot, Mehsana)
6.74
Source: Energy & Petrochemicals Department, Government of Gujarat

Gujarat Scenario: Investment Opportunities
The state endeavors to become a leader in terms of capacity and introduction of new
technologies in other renewable energy sources, like wind-solar hybrid, WTE, OTEC, tidal
energy, etc.
• The total potential for wind solar hybrid installations is about 74,000 MW with the largest potential in Rajkot
and Kachchh
• Gujarat has a 1,600 km coast line and good wind velocity offshore. The total offshore wind potential is about
4,000 MW
• Preliminary activities have been initiated to explore Off Off‐shore wind mill projects installation in consultation
Districts with the highest hybrid potential, MW
Wind solar hybrid installation, MW
with Central Government
Rajkot 23,182
Kachchh 16,151
Jamnagar 8,707
Surendranagar 6,625
Amreli 3,585
Bhavnagar 2,514
Sabarkantha 2,303
k h
36
Banaskantha 2,044
Junagadh 2,038
Source: TERI, Gujarat Energy Development Agency, Gujarat Power Corporation Ltd

Gujarat Scenario: Investment Opportunities
Geothermal power pilot projects are being planned in the state. Gujarat is set to tap geothermal
electricity through resources which are available in Cambay between Narmada and Tapi river
Gujarat geothermal potential is concentrated in
Cambay
Tidal Potential in Gujarat, MW
y
Tidal potential
Potential site Tidal energy potential, MW
Gulf of Kachchh 1200
Gulf of Khambat 7000
Total 8200
37

Government Initiatives & Interventions
38

A robust regulatory framework has been put in place to realize India’s wind, hydro, solar
and biomass potential
Electricity Act 2003
•Mandated State Electricity Regulatory Commissions (SERCs) to
•Promote generation of electricity from renewable sources of energy by providing suitable measures for
connectivity with the grid and sale of electricity to any person
•Fix certain minimum percentages p g for purchase of renewable power
National Electricity Policy 2005
•Further provided for progressive increase in generation of electricity from renewable sources and
supported purchases by distribution companies through competitive bidding process
Tariff Policy 2006
•Provided for fixation by SERCs of a minimum percentage of Renewable Purchase Obligation (RPO) from RE
sources taking into account availability of such resources in the region and its impact on retail tariffs and
procurement by distribution companies at preferential tariffs determined by the SERCs
National Action Plan on Climate Change 2008
•Outlined existing and future policies and programs addressing climate mitigation and adaptation
•NAPCC has advised that starting 2009‐10, RPOs be set at 5% of total grids purchase, and be increased by 1%
each year for 10 years.
39
Source: Ministry of Power, Government of India; Ministry of New and Renewable Energy, Government of India

Government Initiatives & Interventions- National Solar Mission
Objective of the National Solar Mission is to establish India as a global leader in Solar
Energy, by creating the policy conditions for its diffusion across the country as quickly
as possible.
A. 20 GW Grid based solar power projects by 2022
• Large power plants (5 MW solar PV; 5 to 100 MW CSP
in NSM 1 and 5MW to 50MW solar PV in NSM 2)
100 MW rooftop and small projects
• Accelerate generation capacity addition to drive down
costs and achieve grid parity by 2022
• National Tariff Policy amended (January 2011) for
mandatory Solar RPOs for all power utilities
Phase 1: 2010‐
13
Phase 2: 2013‐
17
Phase 3: 2017‐
22
• Connected below 33 kV. Target (10 MW of up to 100kW;
and 90 MW of 0.1 to 2 MW.
B. 2000 MW off‐Grid project by 2022
Policy
framework to
attract and
scale‐up
Market based
on FIT and
mandatory
solar RPO
Grid
competitive
solar power
• Off grid solar and decentralized solar applications.
• Capital and interest subsidy; Refinance by IREDA et al
• Other channels to supply & maintain Products
p
Grid: 1,100
MW
Off‐grid: 200
Grid: 4‐10,000
MW
Off‐grid: 1000
Grid: 20,000
MW
Off‐grid: 2000
C. Support projects
• Centre of excellence and incubation
• Demonstration and pilot projects
• 100MW MW MW MW parabolic trough based
• 100‐150MW solar hybrid plant
Source: Ministry of New and Renewable Energy, Government of India 40

Government Initiatives & Interventions- Support mechanism for RE in India
Policy Instrument Indian Experience Incentives for Developers
Feed in Tariffs/ Preferential
Tariffs
• Being used for all active RE technologies. introduced by most states
except J&K, Bihar, Jharkhand, Odisha and the North Eastern states.
P f db d l b i h j b k bili
• Financial as well as economic costs and
benefits of RE are not yet factored in FIT
• Technology upgradation
• Preferred by developers because it enhances project bankability could lead to better returns as it is not
considered in FIT
Accelerated Depreciation (AD)
• Acknowledged as the key instrument for success of wind industry in
India
• Most wind installations in India have been developed under AD.
• The sector has attained scale &
commercial viability on its own.
Generation Based Incentives • Recently introduced to shift investment focus from capacity addition • Presents avenues for additional
(GBI)
y p y
to electricity generation – move from capital subsidies (AD) to
generation based incentive.
guaranteed revenues for project
developers
Renewable Purchase Obligation
(RPO)
• RPOs are mandated by the Electricity Act 2003 and National Tariff
Policy
• RPOs adopted by 23 SERCs
• Readymade market for renewable
power sources
Clean Energy Cess • The government plans to develop these funds for development of
renewable energy
Renewable Energy Certificates
(REC’s)
• MNRE and CERC have developed a REC regime which has kicked off
recently
• Serves as a mechanism to fulfill the RPO obligations thereby
reducing • Helps renewable power developers to
trade REC's and realise the value of
power
penalties
Carbon Trading
• India has largest number of registered and pipeline CDM projects in
the world.
• Helped to push the RE industry by making projects more financially
attractive
• Additional cushion for developers to
increase their project returns and RoE
Tax Incentives ‐ Exemptions on
• Tax exemption instruments such as exemptions or reductions on
• Tax Incentives help improving RoE of
h d h l f
xemptions Capital Investments and
Generation
excise and customs duty have been introduced
developer
State RE Policies • Examples of state with policies for RE include Karnataka, Punjab,
Source: 41
Madhya Pradesh, Gujarat, Himachal Pradesh, Uttarakhand etc
• The number of clearances required for
renewable projects has come down

• One REC to be issued for every MWh of electricity fed to the grid and metered at the bus‐bar of generator
• REC issued is valid for a period of 1 year
O i
Renewable Energy Certificates
• Not related to Carbon Credits, both mechanisms operate independent of each other.
• Pricing of REC component:
• Sold in the exchange within a range of floor price and ceiling price as fixed by CERC from time to time
• A renewable generating entity that has:
Overview
g g y
• Not entered into any PPA at a preferential tariff
• Sells its power to a local distribution licensee at a cost at or below the Average Power Purchase Cost (excl. RE
power cost)
• Sells power either to the third party or through Power Exchanges
Eligibility
Renewable Purchase Obligations
• In 2007, the Government released draft versions of a new policy which seeks to increase the target to 20 percent by
2020
• Several State Regulators (“SERC”) have translated this national target into Renewable Purchase Obligations (RPO)
• RPOs mandate the minimum quantum of electricity which distribution utilities in the States have to source from
renewable sources (failing which, a penalty may be imposed on them)
• On a pan‐Indian basis, the total RPO commitment by the 12 States that have implemented it constitutes ~5.33
percent total power consumption 2007‐08
42
of the in • The RPO system passes on the onus of increasing renewable energy consumption to the State DISCOMS – effectively
the cost of acquiring this renewable electricity is passed onto the consumer through higher power tariffs
Source: Ministry of New and Renewable Energy, Government of India

Organised By Knowledge Partner Event Partner
43
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