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IBEF RENEWABLE ENERGY: EMERGING TRENDS & POTENTIAL · 1. Renewable Energy: Introduction Renewable Energy:Emerging Trends & Potential 4 From 430MW in 2002-03 to over 17000 MW in 2010-11,

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Page 1: IBEF RENEWABLE ENERGY: EMERGING TRENDS & POTENTIAL · 1. Renewable Energy: Introduction Renewable Energy:Emerging Trends & Potential 4 From 430MW in 2002-03 to over 17000 MW in 2010-11,

INDIA BRAND EQUITY FOUNDATION

www.ibef.org

IBEF

Neeraj.Arya
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RENEWABLE ENERGY: EMERGING TRENDS & POTENTIAL
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1. RENEWABLE ENERGY: INTRODUCTION
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2. INDIA'S RENEWABLE ENERGY STORY TILL NOW
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3. POLICY ENVIRONMENT FOR RENEWABLE ENERGY
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CONTENTS
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2.1 Wind Sector: Overview
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2.2 Solar power sector: Overview
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3.1 Changing paradigm of renewable energy policies in India
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4. NEW INNOVATIONS AND TRENDS IN RENEWABLE ENERGY
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4.1 Wind-New Innovations and trends in renewable energy
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4.2 Wind-Technological innovations: Higher hub height and rotor sweep areas
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4.3 Wind-Emerging trends in Business models: Shift from depreciation benefit
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4.4 Wind-New trends in Business models: Changing nature of power sale
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4.5 Solar Energy: New Innovations and trends in renewable energy
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4.6 Solar-Aggressive bidding in NSM shows market confidence in solar energy in India
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4.7 Solar-New trends in financing: External debts and External Commercial
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4.8 Solar-New trends in financing: Supplier coupled credit/financing
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4.9 Solar -New trends in financing: Solar RECs to provide attractive returns on
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4.10 Solar-sector attracts attention of global suppliers
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models to Independent Power Producers
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borrowings (ECBs)
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solar energy
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5. FUTURE OUTLOOK FOR RENEWABLE ENERGY SECTOR IN INDIA
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6. WIND: FUTURE OUTLOOK
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CONTENTS
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6.1 The Wind power potential in India set to multiply
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6.2 Wind power to cost lower in future: On path to achieve parity with coal power
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6.3 Wind power forecasted to grow to 43GW by 2020
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7. SOLAR: FUTURE OUTLOOK
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7.1 Solar energy costs in India to reduce
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7.2 Solar RECs to enhance returns on solar energy projects in India
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7.3 Solar technology manufacturing takes off in India
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7.3 Solar Power to reach 20 GW by 2022
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7. END NOTES
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1. Renewable Energy: Introduction
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Renewable Energy:Emerging Trends & Potential 4
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From 430MW in 2002-03 to over 17000 MW in 2010-11, India's renewable energy sector has grown by 40 times in the last eight years. India's installed renewable energy capacity as the share of total installed capacity is one of the highest in the world at 9% and continues to grow. India ranks fifth in the world in terms of installed wind capacity as per the latest figures. Wind and solar power sectors are expected to grow significantly in the next decade. The last year saw India adding over 2000 MW of wind power alone while the next 10 years will see India adding 20000 MW of solar power.
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Renewable energy sector is a continuously evolving sector. There are continuous changes in technology, market conditions and policy environment which have led to the emergence of new trends within the industry. India's renewable policy initiatives that began in 1982 to support R&D initiatives in renewable energy have matured over time to set ambitious goals of renewable energy installation for the country. These goals aim to upscale renewable energy into a significant component of the country's energy future. India's National Action Plan on Climate Change (NAPCC) aims to achieve 15% share for renewable power in the total electricity mix by 2020. A number of programmes and government schemes are being introduced to achieve these goals. Most important of them being the Jawaharlal Nehru National Solar Mission (JNNSM). JNNSM is one of the most ambitious renewable energy programmes of its kind in the world. It aims to install 20,000 MW of solar energy in India by 2022.
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2. India's renewable energy story till now
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In 2010, wind power capacity reached at an impressive 13,0651 MW which puts India at the fifth position in the world in terms of installed wind power capacity2. The wind energy sector in India has shown a compounded annual growth rate of 50% during the last ten years which makes it the fastest growing energy technology. Tamil Nadu, Karnataka and Maharashtra are the leading states in installed wind capacity.
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2.1 Wind Sector: Overview
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0.2 1.5 1.7 2.1 3.04.4

6.37.8

9.7 10.913.1

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

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Renewable Energy:Emerging Trends & Potential 5
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India has also emerged as one of the major wind energy equipment export nations. Indian wind energy equipment exports stood at $975 million in 2009-103. Majority of these exports were to United States, Australia and Brazil. Suzlon with a global market share of 9.8% is the world's third largest wind energy company4 in the world and symbolic of India's progress in Wind Energy.
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The wind turbine manufacturing capacities are rapidly rising in the country. The annual wind turbine manufacturing capacity in 2007 was 2000 MW which rose to 7500 MW in 2010 and is expected to increase to 13000 MW by 20135.
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Installed Wind Capacity (GW)
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Figure 1: Installed Wind Capacity in India: Source: Global Wind Energy Council
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2.2 Solar power sector: Overview
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Solar is the most abundant renewable energy. About 5000 trillion KWh is incident upon the land area of India every day. The total potential is virtually unlimited. India has taken up the ambitious National Solar Mission which aims to add 20000 MW of solar power by 2022 and the mission aims to achieve grid parity by 2022 and parity with coal based power by 20306. India currently has 1000 MW of solar modules manufacturing capacity & 600 MW of solar cell manufacturing capacity7. The National Solar Mission aims to increase this manufacturing capacity to 2000 MW by 20208.
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Renewable Energy:Emerging Trends & Potential 6
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3. Policy Environment for renewable energy
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Renewable energy sector in India first received policy support with the formalisation of Department of Non-Conventional Energy Sources (DNES) in 1980s. Although the focus on renewable energy was for a very long time limited to research & development phase, the larger vision of scaling up renewable energy to levels where it would become an important component of electricity generation was established much later. Instrumental in doing this was the introduction of The Electricity Act 2003 and Integrated Energy Policy (IEP). The Electricity Act 2003 recognised the potential of renewable energy and suggested promotion of renewable energy and steps to provide grid integration of renewable energy. IEP took this further by recommending a special focus on renewable power.Accordingly, the Five Year Plans in India targeted at increased generation of electricity from renewable energy sources. The 11th Five Year Plan aims at 24 GW of energy generation from renewable sources by the end of 2012.
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3.1 Changing paradigm of renewable energy policies in India
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The policy landscape for renewable energy sector in India has been continously evolving and we observe three different phases of renewable energy policy in India
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Direct subsdies & tax breaks
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Performance linked incentives
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Market mechanisms
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In the earliest days when renewable energy was a nascent sector in India and technology was new to developers and investors alike, policies aimed at providing direct subsidies like capital subsidies or attractive depreciation linked tax breaks. However these policy supports will be phased out gradually.The present status of capital subsidies and depreciation schemes is discussed below.
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Renewable Energy:Emerging Trends & Potential 7
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Direct capital subsidies schemes: Capital subsidies are provided for biomass projects and to demonstration projects in the wind sector by the Ministry of New & Renewable Energy (MNRE). The subsidies are provided according to a conditions set by MNRE.Eligibility criteria for availing capital subsidies are:
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Biomass Power (combustion)
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1. Minimum 62 bar steam pressure 2. Maximum of upto 15% use of fossil fuel of total energy consumption in K. cals or as per DPR, whichever is less. 3. For only new boilers and turbines (capacity limited to in accordance with the estimated potential in a state)
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Table 1: Capital Subsidy Eligibility; Source: MNRE
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Co-generation
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1. Minimum 40 bar steam pressure 2. Maximum of upto 15% use of fossil fuel of total energy consumption in K. cals. or as per DPR, whichever is less, during crushing season.
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1. WEG installed capacity greater than 500 KW 2. Not more than 1% of technical potential of the state or 6MW, whichever is less 3. States where commercial activity has not yet been initiated. / taken off
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Wind Energy (only for State Governments)
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The subsidy for a 1 MW biomass plant is 20-25 MW depending upon the state. Cogeneration plants working at higher pressure can receive subsidies upto INR 40-60 Lakhs.
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Tax breaks & Accelerated Depreciation: Accelerated depreciation scheme is one of the most important driving force for development of wind energy projects. The scheme allows a project developer to claim 80% of the depreciation in the the first year of installation.Initially, 100% depreciation was also allowed which was later scaled down to 80%. Additionally a ten year tax holiday has also been provided to profits and gains of new industrial undertakings set up anywhere in India which generate power through renewable technologies.
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Renewable Energy:Emerging Trends & Potential 8
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Performance linked incentives: As the performance metrics of renewable energy (most notably in wind sector) have become available, performance linked incentives became easier to administrate. This saw emergence of performance linked incentives in the form of attractive preferential tariffs and more recently the generation based incentives (GBI). Performance linked incentives have existed along with the earlier direct subsidies and taxation based schemes. Preferential tariff refers to the special tariff at which Electricity Boards buy renewable power.
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Performance linked incentives in the form of generation based incentives (GBI) and subsidised feed in tariffs from State Electricity Boards have also been provided to renewable energy projects as financial incentives. Feed in tariffs will be instrumental in first phase of National Solar Mission where special tariffs in the range of INR 10.9 5 to INR 13 would be provided. Similarly special feed in tariffs are provided to renewable power projects across states. The feed in tariff differs from state to state and differs for each technology. It is determined by the Electricity Regulatory Commission in each state. For example the feed in tariff for biomass power ranges from INR 2.80 per unit in Kerala to INR 5.05 per unit in Punjab9.
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In 2009, MNRE also introduced a generation based incentive for wind projects. Under GBI, electricity producers will be provided with INR 0.50 for each unit of electricity fed into grid for a period not less than 4 years and upto 10 years.
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However, now policies in India are increasingly focusing on market based mechanisms to promote renewable energy. In recent times market mechanisms like Renewable Energy Purchase Obligations (RPOs) and PAT (perform Achieve & Trade) have been introduced. These market based mechanisms will accelerate the growth of renewable energy as project developers would not have to be dependent upon the government schemes for project viability.However this transition will occur for different technologies at different times.
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Renewable Energy:Emerging Trends & Potential 9
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Market Based mechanisms: Renewable Purchase Obligations: In 2010, Central Elcetricity Regulatory Commission declared the the Renewable Energy Certificate (REC) mechanism. The REC mechanism will work in conjunction with the Renewable Purchase Obligations(RPOs) mandated for all indian states under Electricity Act 2003. This renewable purchase obligation would be in the form of a minimum share of electricity consumed that each state is required to meet through the use of renewable energy. The obligation would increase each year till a target of 15% share of renewable energy in the overall electricity mix is met by 2020. Within the overall RPO, a sub quota - a certain fraction of the total RPO- has been set for solar energy. This quota would have to be met only through solar power.For Example, State of Haryana has set a solar obligation of 0.25% within the total RPO of 10%. Therefore 0.25% of the total electricity consumed in Haryana would necessarily have to come from solar power. This solar quota will increase by 0.25% each year to reach 3% by 202010.
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However the availability of renewable energy resources differ from state to state. This makes it difficult for states with low renewable energy resources to meet the RPOs. Therefore to ease the compliance of RPOs a mechanism for Renewable Energy Certifciates (RECs) has been set up. Each renewable energy generator will be given RECs for each MWH of electricity they produce.RECs will be issued through a central agency. This REC will only represent the environmental nature of the renewable energy. The producer is still free to sell his electricity generated anywhere. However in such a case developer cannot avail of any other incentives schemes for renewable energy.
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RPO
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State Electricity Board
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RECs sold
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Renewable Project 2
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Renewable Project 1
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RECs issued
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Electricity sold
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Central REC issuing authority
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Buyer
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Renewable Energy:Emerging Trends & Potential 10
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Those states which are not able to meet their RPOs by purchasing renewable energy directly can comply by purchasing RECs and submitting the same as a proxy for their RPOs. The RECs would be traded on power exchanges. Floor price (the minimum price at which an REC can be traded) and forbearance price (The maximum price at which an REC can be traded) for RECs have already been set up by Central Electricity Regulatory Commission (CERC).
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The first trading session of RECs occurred on 30 March 2011 at the Indin Energy Exchange and Power Exchange India ltd.11 A total of 424 RECs were reported to have been traded.RECs are expected to emerge as a significant renewable energy financing platform in future.
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Market Based mechanisms: Perform, Achieve & Trade (PATs): Perform, Achieve & Trade (PAT) is another energy efficiency market mechanism being implemented in India by the Bureau of Energy Efficiency with the core focus of energy efficiency. In a manner similar to European Union's carbon cap and trade mechanism, energy efficiency targets would be given to industries. Industries who perform better will be provided energy efficiency certificates (ecerts) which can be traded in energy markets. Industries can achieve their targets by either directly achieving the efficiency targets or buying ecerts from the market.
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Companies can additionally also achieve their targets by procuring renewable energy. Renewable energy use will not be counted under the targets and therefore will help companies in compliance. Such market mechanisms can additionally increase the benefits of using renewable energy.
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Other Policy Measures: Long term leasing rights with government support: Concessionary leasing rights for land for renewable energy are available from state governments. However it differs from state to state and within each state, differs from one renewable technology to other. For example, Rajasthan provides land to solar project developers at concessionary rates i.e. at 10% of the average rates in the district12 or Andhra Pradesh provides land to developers to harness upto a maximum of 200 MW of wind power13.
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100% Foreign Direct Investment (FDI) allowed in Renewable energy sector in 2009
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Renewable Energy:Emerging Trends & Potential 11
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4. New Innovations and trends in renewable energy
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4.1 Wind-New Innovations and trends in renewable energy
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New technological trends, changing market structure & policy environment are constantly bringing new trends in the wind sector. Some of the new trends emerging in the wind sector have been detailed in the following sections.
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4.2 Wind-Technological innovations: Higher hub height and rotor sweep
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In the overall turbine design there is a shift towards larger and higher rated wind turbines. Larger wind turbines call for higher heights of the wind turbine tower as well as longer blades resulting in a much larger sweep area. E.g. a 1.25 MW rated turbine would work with a 54 m hub height and a swept area of 3200 sq. m against which a 2.1 MW rated turbine would require a hub height of 79 m and it will sweep an area of 6000 sq. m. This increases the power generation capacity of the turbine14.
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While the trend towards higher generation capacity turbines has been a continuous process, the recent times have seen an unprecedented acceleration of the trend in India. Compared to the average rated capacity of wind turbines in 2000 at 0.3 MW, 0.75 MW in 200815 turbine capacity currently being deployed in India is at 2-2.5 MW range. Commercially available models with Indian manufacturers have moved from sub 1 MW wind turbines to turbines in 2-2.5MW capacity now16.
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4.3 Wind-Emerging trends in Business models: Shift from depreciation
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There are several factors contributing to a shift towards Independent Power Producers1 (IPPs) in wind power projects from the earlier model of developing wind farms as a sub asset within other core businesses. The factors that made this earlier model more attractive were (a) the depreciation benefits being a greater financial incentive than the power sales revenue (b) risk of financing a standalone wind power entity. However -as explained further- most of these factors are not likely to be true in future.
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1 Independent Power Producers refer to the corporate entities who are pure play power generation companies
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areas
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benefit models to Independent Power Producers
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Renewable Energy:Emerging Trends & Potential 12
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End of the accelerated depreciation: The Indian government is now moving to a direct tax code in 2012. The accelerated depreciation benefits will be terminated when the direct tax code is introduced17.
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Revenues stream from power sales getting strengthened: The wind technology has considerably matured over the last decade and the cost of generation of wind has decreased continuously. From the early days when the cost was estimated to be nearer to INR 5 per unit or higher, it has come down to the range of INR 2.5 -3.5 per unit18 19. This enhances the competitiveness of wind generated power with the rates for commercially available electricity. Estimated returns in wind energy can be in the range of 15-35%20 with higher returns being realized with combination of high performance sites and currently available wind turbines of higher wattage.
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Reduced financial risk of financing Independent Wind Power Producers: Recent developments in wind technology and resultant improved returns in wind business have made wind power projects financially attractive even without the depreciation benefits. This is leading to a shift towards IPPs in wind sector. Thousands of megawatts in installed wind capacity have also increased the acceptability of wind technology with financial lenders and independent power producers are increasingly eliciting interest from leading financers. IDFC ltd., a leading infrastructure finance company noted, "A pure play renewable energy company is always of interest to IDFC" after its 33 million euro deal with Acciona- a power producer- for its Tamil Nadu wind farms21. IFC has invested $55 million22 as a hybrid debt -equity investment in Simran Wind project which is an IPP. It would be interesting to note that even public sector banks like State Bank of India (SBI) are now investing in their own wind farms. Last year SBI inaugurated its own 15 MW captive wind farm in Tamil Nadu23. SBI has also lent to wind power projects earlier24. More than 30% of the projects developed in 2011-12 would be based on IPP model25.
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Renewable Energy:Emerging Trends & Potential 13
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4.4 Wind-New trends in Business models: Changing nature of power sale
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The entire transformation in the wind sector is also leading to the changing nature of power purchase agreements. Due to competitive pricing of wind power, wind project developers are increasingly confident to sell their power through the `merchant sales' route. Merchant sales is a risk prone selling platform where power sellers get into short term agreements for power sales rather than long term agreements. Short term agreements allow sellers to realise higher revenues when higher prices prevail due to the power price fluctuations with the risk of realizing lower revenues when lower prices prevail in the market. On the other hand, although long term agreement de-risks the sales, it does not allow the seller to realise higher revenues when higher prices prevail. The increased tendency of wind power traders to go for merchant sales only demonstrates the degree to which wind projects have matured which is allowing sellers to take on extra risk at the energy bourses.
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4.5 Solar Energy: New Innovations and trends in renewable energy
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Installing one MW of solar power costs INR 120 million-INR 150 million. Given the higher cost of solar power, the most important emerging trend in the solar industry is focused on the financial aspects of solar power.
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4.6 Solar-Aggressive bidding in NSM shows market confidence in solar
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The National Solar Mission (NSM) is the centrestone of the financial incentives for solar technology. The first round of the Mission required the solar developers to competitively bid for the special feed in tariffs for solar power. The competitive bids meant that only those developers with the lower bids would be allotted the special feed in tariffs. Given the optimistic perception of solar energy, most developers with future ambitions in the solar bid aggressively during the first phase of NSM. From an earlier estimate of INR 15 per unit for solar PV, the lowest bid went as low as INR 10.9526 with many bids nearer to INR 12 per unit.
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energy in India
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Renewable Energy:Emerging Trends & Potential 14
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4.7 Solar-New trends in financing: External debts and External Commercial
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External commercial borrowings are allowed for infrastructure expansion in India. Solar power developers are increasingly accessing foreign capital at low interest rates to boost their equity returns on the project. E.g. Rural Electrification Corporation in 2010 raised $400 million for solar and wind energy plants through ECBs27. Use of ECBs can reduce the cost for the producer by INR 2 per unit28.
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4.8 Solar-New trends in financing: Supplier coupled credit/financing
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The margins in a solar power plant are very tight due to competitive bidding. Therefore to operate within these tight margins project developers and their stakeholders are working on un-conventional financial structuring. Supplier coupled financing is one such new trend. The core idea is that when a project developer raises capital from a different entity and uses that capital to buy solar equipments from another entity, he has to pay margins to each of these entities. Therefore the margins paid to different entities increase the final cost of project. Therefore an innovative way of reducing the project cost would be to reduce entities involved in a project development. In cases where technology provider assumes the extra role of capital provider the overall margins paid could be lowered.
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Technology providers can play this role as many technology providers are foreign entities in solar business. Thus these entities have access to low cost capital available in foreign markets. They can channelize this low cost capital in an appropriately structured manner and thus reduce the overall margins that a project developer pays.
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4.9 Solar -New trends in financing: Solar RECs to provide attractive
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Renewable energy certificates mechanism will emerge as one of the most important financial instruments to finance renewable energy in the near future. However the provision of Solar `Renewable Purchase Obligation' (RPO) within the overall RPO mechanism will make REC mechanism particularly attractive for the solar sector. Solar RPO refers to the fraction of overall electricity that can only be met through solar power or solar renewable energy certificates (Solar RECs). Project developers generating solar power would be issued solar RECs which can be sold at energy exchanges. Forbearance price at INR 17 (maximum price of Solar REC) and floor price (minimum price for Solar REC) at INR 12 have been declared by CERC. Ability to sell solar RECs within the range of INR 12-17 will make the solar project viable without the government subsidies or special `feed in tariff'. This will not only help projects financially but the market based mechanism will also accelerate project development. Infact the prices for Solar RECs are likely to trade at higher end of the above range given the fact that the first REC session on 30th March saw a demand for over 30000 solar RECs29.
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4.10 Solar-sector attracts attention of global suppliers
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International suppliers are increasingly focusing on the Indian market in the wake of the National Solar Mission. As international suppliers set their sights on Indian market the price of solar panels in the domestic market is expected to reduce.
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returns on solar energy
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5. Future Outlook for renewable energy sector in India
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Wind and Solar energy sectors will lead the growth in the Indian renewable energy sectors. Wind and Solar technologies have the largest growth potential among all renewable energy technologies and therefore are the most scalable technologies. The adjoining figure illustrates the growth potential for all renewable technologies.
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Figure 2: RE potentials; Source MNRE, EVI Analysis
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The figure below illustrates the expected growth of renewable energy in India in the coming decade. Majority of this growth will come from solar and wind energy sectors. Growth in renewable energy is expected to accelerate in future due to a number of technological and market developments as detailed in the report earlier. The section briefly describes the impact of these developments on the potential of wind and solar energy sector.
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RE future capacity forecasts (GW)
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Figure 3: Future growth forecasts: Source: 11th 5 year plan
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6. Wind: Future Outlook
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As explained earlier, wind turbines in 2-3 MW range are available now. The increased turbine size has also made it economical to develop wind farms in `class 3' type regions too. Earlier wind farms were being developed in only `Class 2' and `Class 1' sites. Class refers to the classification of sites with respect to the wind speeds available on the site. Higher wind speeds results in higher energy generation. Class 1 & Class 2 sites have superior wind speeds. Hence these sites have higher power generation potential and therefore are more economical. Now with the ability to develop class 3 sites economically, the wind power potential of the country has greatly increased. The present potential of 65000 MW30 was based on earlier trends. The future potential with class 3 sites included, the potential will be many times the earlier potential. Although the exact figures are yet to emerge but this potential could be in excess of 150,000 MW, experts opine. This growth in potential will ensure an explosive growth for the industry for many more years to come.
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6.1 The Wind power potential in India set to multiply
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6.2 Wind power to cost lower in future: On path to achieve parity with
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Availability of increased wattage of wind turbines will also improve the cost economics. The currently available class of turbines will bring down the cost per unit of wind energy generation. Estimates show that the cost per MW has reduced by 20-30% due to availability of higher sized wind turbines, beginning
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from 2010. This will result in cost per unit reduction of 20-25%31. In future, the size of wind turbines deployed in India will further increase from the present 2-3 MW range to over 5MW and the trend of setting up of offshore windfarms could emerge. can move offshore. Thus the trend of increasing turbine capacities and reducing costs is likely to continue. Wind power has already achieved grid parity for grid prices ranging between INR 2-532. Grid parity refers to the condition where the cost of renewable power is equal to or less than the cost of grid power. In future parity is likely to be achieved with coal based power for coal based power costing around INR 2 per unit.
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6.3 Wind power forecasted to grow to 43GW by 2020
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In light of above facts- higher future potential & lowering costs- the growth in wind sector will continue to accelerate. In 2009 India added 1.2 GW in wind power, in 2010 India added in excess of 2 GW. If the current trend continues, as is likely to, India could add 4 GW annually by 2020 and the overall capacity could accelerate to over 43 GW by 202033. The estimation is on the conservative side.
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7. Solar: Future Outlook
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7.1 Solar energy costs in India to reduce
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As described earlier innovative financial structuring of projects will bring down the costs of solar energy in India. External borrowings or supplier linked financing will reduce the costs by 10-15% per unit34 of solar electricity. These prices are further expected to go down as the competition within International suppliers - attracted to Indian market-intensifies.
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Solar RECs will take a centre stage in solar project financing. Selling of Solar REC by developers will increase the Internal Rate of Return (IRR) of solar plants by 7-20% to take overall returns in 25-40% range35. This will continue to generate the market interest in solar projects and fuel the growth of this sector. Market mechanisms like Solar RPOs will also increase the robustness of Indian solar energy sector and boost investor confidence.
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7.2 Solar RECs to enhance returns on solar energy projects in India
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In 2010, India's domestic photovoltaic module manufacturing capacity crossed 1 GW which is 10% of the global manufacturing capacity36. Growth prospect in the Indian solar sector is attracting both Indian and global players to set up their solar equipment manufacturing base in the country. US based, Abound group is also actively planning to set up their manufacturing base in India37. Lanco is setting up India's first integrated solar PV equipment manufacturing SEZ in Chhattisgarh at the cost of INR 3000 crores38. The plant will have the capacity to manufacture 250 MW of solar modules.
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7.3 Solar technology manufacturing takes off in India
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7.4 Solar Power to reach 20 GW by 2022
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Under the National Solar Mission, India is slated to reach 20,000 MW capacity by 2022. The strong market based mechanisms -REC mechanisms and-being implemented by the Indian government are attracting project developers and investors into Indian market. This along with the continued cost reductions will drive string growth in solar energy in future.
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By 2020, Indian renewable energy is forecasted to cross 80 GW of which majority of the capacity will come from wind and solar energy.
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8. End Notes
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1. Global Wind Energy Council 2. Indian Wind Energy Association 3. India to export $1.4b worth wind turbine, spares in FY11, http://www.mydigitalfc.com/power/india-export-14b-worth-wind-turbine-spares-fy11-590 : Accessed Apr 1, 2011 4. Suzlon 5. Ministry of New and Renewable Energy (MNRE), WISE, Global Wind Energy Council 6. Jawaharlal Nehru National Solar Mission, Towards Building SOLAR INDIA, Govt. Of India 7. Explanatory memo for benchmark capital cost norms for solar PV & solar thermal power projects, CERC, 2011 8. Jawaharlal Nehru National Solar Mission, Towards Building SOLAR INDIA, Govt. Of India 9. http://www.mnre.gov.in/prog-biomasspower.htm; Last Accessed 3 Apr 2011 10. Haryana Electricity Regulatory Commission 11. http://www.climate-connect.co.uk/Home/?q=node/475; Last Accessed 5th Apr 2011. 12. IREDA 13. http://www.nedcap.gov.in/Wind_Energy.aspx?ID=29 ; Last accessed 3 Apr 2011 14. Product Spec Sheet, Suzlon 15. Wind Power, Technology & Trends in India, Rajindra Valsalan, Winwind, 2008 16. EVI analysis, Suzlon, Kenersys 17. http://www.mnre.gov.in/gbi-scheme.htm 18. EVI Analysis 19. http://www.igovernment.in/site/wind-power%E2%80%99s-share-be-24-2030-38176 ; Accessed 5 Apr 2011 20. EVI analysis 21. Acciona 22. http://www.mydigitalfc.com/enterprises/ifc-plans-invest-55m-wind-energy-firm-553 ; Accessed 3 Apr 2011 23. http://articles.economictimes.indiatimes.com/2010-04-23/news/27587704_1_windmills-wind-power-mw-capacity ; Accessed 2 Apr 2011
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24. http://www.moneycontrol.com/news/business/indian-energy-achieves-fin-closureits-248mw-wind-farm_353895.html ; Accessed 2 Apr 2011 25. EVI Insights 26. Down to Earth, Bidding exposes solar tariff game, Kandhari R, 2010 27. http://www.dnaindia.com/money/report_rural-electrification-corporation-to-raise-1-bn-via-ecb-this-fiscal_1412884; Last Accessed 3rd Apr 2011 28. EVI Analysis 29. Indian Energy Exchange ; Last Accessed 6th Apr 2011 30. Indian Wind Energy Association 31. EVI Analysis based on modeling results and our interactions with project developers 32. Indian Energy Exchange 33. EVI Analysis based on past trends 34. EVI Analysis 35. EVI Analysis based on modeling results and Solar REC price range determined by CERC 36. http://www.dnaindia.com/money/report_indian-photovoltaic-production-capacity-tops-1-gw-per-year_1347891 ; Last Accessed 6th Apr 2011 37. http://www.business-standard.com/india/news/solarsis-abound-venture-mulls-solar-pv-plant/429534/ ; Accessed 6th Apr 2011 38. http://www.thehindubusinessline.com/industry-and-economy/article1327226.ece ; Accessed 6 th April
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DISCLAIMER
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India Brand Equity Foundation (“IBEF”) engaged Emergent Ventures International (EVI) to prepare this presentation and the same has been prepared by EVI in consultation with IBEF. All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of IBEF. This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the information is accurate to the best of EVI’s and IBEF’s knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice. EVI and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this presentation. Neither EVI nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this presentation.