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Vibrant Gujarat Summit Profile for Energy Spectrum Sector

• 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 favourable 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.

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Vibrant Gujarat Summit Profile for Energy Spectrum Sector

  1. 1. Vibrant Gujarat ‐ 2015 Renewable Energy: Sector Profile
  2. 2. 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. 3. 3. Renewable Energy Sector
  4. 4. 3.1 Renewable Energy Sector: Global Scenario
  5. 5. 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
  6. 6. Renewable Energy Sector 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
  7. 7. 3.2 Renewable Energy Sector: India Scenario
  8. 8. Renewable Energy Sector 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
  9. 9. Renewable Energy Sector 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
  10. 10. Renewable Energy Sector 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
  11. 11. Renewable Energy Sector 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
  12. 12. Renewable Energy Sector 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
  13. 13. Renewable Energy Sector 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
  14. 14. 3.3 Renewable Energy Sector: Gujarat Scenario
  15. 15. Renewable Energy Sector 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
  16. 16. Renewable Energy Sector 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
  17. 17. Renewable Energy Sector 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
  18. 18. Renewable Energy Sector 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
  19. 19. Renewable Energy Sector 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
  20. 20. Renewable Energy Sector 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
  21. 21. Renewable Energy Sector 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 Source: TERI, Gujarat Energy Development Agency
  22. 22. Renewable Energy Sector 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 Levelized tariff for 25 years 10.37 9.64 8.97 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 Levelized tariff for 25 years 11.14 10.36 9.63 Kilowatt ‐ scale PV projects availing accelerated depreciation Levelized tariff for 25 years 12.44 11.57 10.76 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
  23. 23. Renewable Energy Sector Gujarat Scenario: Solar Power – Project Locations Geographical locations of Solar power projects Source: GETCO 23
  24. 24. Renewable Energy Sector 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 Source: TERI, Gujarat Energy Development Agency
  25. 25. 3.4 Renewable Energy Sector: Gujarat Scenario – Success stories
  26. 26. Renewable Energy Sector 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
  27. 27. Renewable Energy Sector 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
  28. 28. Renewable Energy Sector 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 Source: Gujarat Energy Development Agency, Gujarat Power Corporation Ltd
  29. 29. Renewable Energy Sector 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 Source: Gujarat Energy Development Agency, Gujarat Power Corporation Ltd
  30. 30. Renewable Energy Sector 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
  31. 31. Renewable Energy Sector 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
  32. 32. Renewable Energy Sector 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
  33. 33. 3.4 Renewable Energy Sector: Gujarat Scenario – Vision 2020 & Investment Opportunities
  34. 34. Renewable Energy Sector 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
  35. 35. Renewable Energy Sector 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
  36. 36. Renewable Energy Sector 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
  37. 37. Renewable Energy Sector 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 Source: TERI, Gujarat Energy Development Agency
  38. 38. 3.5 Renewable Energy Sector: Government Initiatives & Interventions 38
  39. 39. Renewable Energy Sector Government Initiatives & Interventions 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
  40. 40. Renewable Energy Sector 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
  41. 41. Renewable Energy Sector 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
  42. 42. Renewable Energy Sector Government Initiatives & Interventions • 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
  43. 43. Organised By Knowledge Partner Event Partner 43 Visit us at www.vibrantgujarat.com

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  • pateldhruv07

    Oct. 20, 2015

• 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 favourable 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.

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