“About 5,000 trillion kWh per year energy is incident over India’s land area with most parts receiving 4-7 kWh per sq. m per day. Hence both

solar thermal and solar photovoltaics can effectively be harnessed providing huge scalability for solar in India”.

INDIA NATIONAL SOLAR MISSION

www.norasco.com

INDIA Harnessing the Sun

•Indian National Solar Mission : to set up 20GW by 2022•State governments’ plans of over 5GW•50MW under GBI Scheme (Generation Based Incentive) by 2012•Grid and Off Grid opportunities like Rural, New Cities (SEZs), captive plants for industry, Defence, Public Sector, Roof top.•Rural Electrification is a big priority for Government. •Solar cities and parks will be established all around India•State controlled NTPC to add 315 MW solar energy capacity•Solar applications will become more popular and common• PV Module/BOS Manufacturing, Engineering, Monitoring, Accounting systems, parts and supplies will be create opportunities•R&D , Education and Training drives started by Government

www.norasco.com

India – Solar Energy: What’s Going On

www.norasco.com

India National Solar Mission Roadmap

•Gujarat - 37 Projects for 716 MW ; 3GW with Clinton Foundation•Rajasthan – 49 proposals for 1524 MW; 100 GW est. potential •Haryana – 12 MW projects in pipeline•Punjab - 19 MW projects in pipeline•Karnataka – 6 MW commissioned. 100MW potential estimated.•Uttarakhand – a renewable energy policy announced•Maharashtra, Madhya Pradesh– Developing policies and Projects

State Programs

www.norasco.com

Existing Installed Solar Energy capacity is less than 10MW

• Remote Village Electrification Programme*• Power irrigation pump sets• Back up power generation/replacement of diesel• Telecom towers• Captive power generation, • Urban applications• City /street and Highway lighting• Solar water heaters• Solar cooking for institutional use

(*Indian Govt. - 9075 remote villages are still without electricity)

Off Grid Opportunities

www.norasco.com

• Land acquisition remains the Single Biggest Challenge• Bureaucracy, Corruption• Conflicting Policies between Federal and State Governments• Too many regulations, regulators and government agencies to deal with • Requirement of allocations & permissions like for Land use, Power Evacuation, Pollution, Water linkage, PwD, Town Planning etc• Policy Weaknesses – consistency, uniformity (Centre/states Feed in tariffs), PPAs • Regulatory frameworks are untested and weak• Grid Parity and power fluctuations, Grid Quality, Theft, Non-Payment• Lack of Experience: Absence of Trained technicians, Engineers and Managers• Operational hazards – recovery of tariff revenue , power losses, land disputes • Partnership Disputes, Stakeholder problems, Repatriation of Dividends• Policy and Tariffs in flux

Risks & Challenges

www.norasco.com

Indian Policy Expertise + Execution Capability

+ Local Risk Mitigation + Technology Protection +Engineering+Finance

+Operations

We Deliver Results•

What we offer International Energy Companies

www.norasco.com

• Norasco Offers Cleantech Projects, Technology, Finance and Execution Expertise.

•Norasco provides India Entry, Strategy for Leadership, Mitigates Local Risks

•Norasco Green Advisory to Indian cities, industrial houses and Cluster programs creates opportunities.

We Build Long term Partnerships and remain engaged through the life of projects.

A Robust Partner for India

www.norasco.com

• International Module Manufacturers• International System integrators/EPCs• BOS Manufacturers/Suppliers• Indian States/Municipalities/Panchayats (Village Bodies)• State Transmission Utilities (STUs)• Developers (IPPs)• Land Owners• Project Financiers• International Foundations• Industrial Houses/ Entrepreneurs• Venture Capitalists /Private Equity Investors

India Strategy & Solutions for

www.norasco.com

Information

www.norasco.com

• to set up stand alone rural solar power plants in special category States and remote, difficult and border areas

• to set up Manufacturing including balance of system components. 4-5 GW per year

• to ensure that transfer of technology is built into Government and private procurement from foreign sources

India National Solar Mission Highlights -1

www.norasco.com

• NTPC’s 100% subsidiary NTPC Vidyut Vyapar Nigam Ltd. (NVVN) is agency for entering into a Power Purchase Agreement (PPA)

•Central Electricity Regulatory Commission (CERC) has notified levalised tariffs of Rs 18.44/kWh (Euro 0.29) for PV & Rs 13.45/kWh (Euro 0.21) for Thermal for FY 2009-10.

•The key driver to be through a Renewable Purchase Obligation (RPO) mandated for power utilities, with a specific solar component.

• This could be complemented with a solar specific Renewable Energy Certificate (REC) mechanism to allow utilities and solar power generation companies to buy and sell certificates to meet their solar power purchase obligations.

India National Solar Mission Highlights -2

www.norasco.com

Capital Cost: Rs.17 Crore/MW (Euro 2.66mn)Capacity Utilisation Factor: 19%O&M Expenses :9 lakhs/MW (Euro 14k) for 1st year of operation ; escalating @5.72% p.a.Tariff /Project life = Rs 18.44 (Euro 0.29) for 25 years

CERC’s Financial Assumptions for PV plant:Debt :Equity ratio 70:30Loan Interest : 14.29%, Loan Repayment : 10 yearsReturn on Equity: 19% pa(first 1o years) and 24% pa from 11th yearWeighted average Return on Equity : 22%(CERC-Central Electricity Regulatory Commission) 1 Euro= 64 INR

Current CERC Guidelines for Solar PV India

www.norasco.com

www.norasco.com

www.norasco.com

Source: MNRE

New DelhiLondonMoscow

Washington, DCLimassol, Cyprus

MadridCopenhagen

Dubai

Impeccable Record in emerging markets since 1993

Norasco has presence in

www.norasco.com

Mr. Sanjay Goyal, CEOTel: +44.20.32399882Fax: +44.20.79002189

Email: norasco@norasco.com

This document is only for information purposes and is work in process.Norasco does not provide banking, legal, accounting or tax services and

is not regulated by any financial services authority.

www.norasco.com