Renewable energy future in India is discussed.

1. Renewable Energy in
India: Status and
Future Prospects
“……the time is running out…soon, there will
be nothing left to burn on earth but earth
itself…”
2010

2. ENERGY IN INDIA: AN OVERVIEW
 India consumes 3.7% of the world’s commercial
energy making it the 5th largest consumer of energy
globally.
 Total installed capacity of 1,44,912 MW.
 350 kgoe per capita primary commercial energy
consumption. 22% of world average.
 Per capita electricity consumption: 600 kWhr per
year.
 About 80% of total rural energy consumption comes
from non-commercial energy.
 84% villages electrified. 44% of rural households
electrified.

3. INDIAN POWER SECTOR
Source: Ministry of New and Renewable Energy

4. ENERGY CONSUMPTION TREND

5. ENERGY SCENARIO IN INDIA
 Rapid economic development & Increasing
population = High demand for Energy
 A sustained 8% GDP growth of India requires an
annual increase of:
 a) Commercial energy supply from 3.7% to 6.1%
 b) Total primary energy supply from 2.2% to 5.1%
 Limited supply of COAL, coupled with its poor
quality, low level of technologies advancements and
high environmental hazards.
 Limited domestic reserves and uncertain foreign
supply of hydrocarbons.

6. WHY RENEWABLE ENERGY FOR INDIA?
Power shortage
Rising Prices of Oils & Gases
Ecological Hazards
Ample resources and sites available
Abundant sunshine
Government incentive
Increased financing options

7. BENEFITS OF RENEWABLE ENERGY
 Avoid the high costs involved in transmission
capex.
 Avoid distribution losses – Technical & otherwise
 Avoid recurring fuel cost
 Boost the rural economy
 Encourage self help groups & self dependence
 Enable village co-operatives to supply and / or
monitor distribution
 Make available much needed energy for basic
needs at the doorstep at affordable prices.

8. INSTALLED CAPACITY FROM RENEWABLE
ENERGY
Source: Ministry of New and Renewable Energy

9. CURRENT FOCUS
 Promoting rural energy for productive uses and
linked social benefits
 Promoting renewable energy for rural electrification
and industrial applications
 Enhancing access of the rural poor to affordable
and sustainable energy services
 Supporting training and capacity building for
manufacture, local assembly and maintenance of
renewable energy technologies / systems
 Organizing global forum activities and providing
strategic expert advice on renewable energy
technologies and energy policy planning and
institutional framework

10. RENEWABLE ENERGY DEPLOYMENT
Wind installation (global) 60,000 MW (cumulative)
India’s share (and position) 6270 MW(fourth in the
world)
SPV cell production (global) 1,700 MW (in 2005)
India’s share (and position) 37 MW (seventh in the
world)
Biogas plants (global) 16 million units
(cumulative)
India’s share (and position) 3.9 million family size units
(second in the world)
Solar Thermal (global) 110 million sq.m
(cumulative)
India’s share (and position) 1.65 million sq. m (ninth in
the world)
Source: Ministry of New and Renewable Energy

11. INDIA RENEWABLE POWER POTENTIAL
Renewable
Resource
Estimated
Potential
Remarks
Wind Power 45,000 MW Sites with wind densities of 300
W/m2 or higher with 9% of assessed
area available for wind farms
requiring 12 ha/MW.
Biomass Power 45,000 MW 20 mha of wastelands yielding 10
MT/ha/annum of woody biomass
giving 4000 kcal/ kg with system
efficiency of 30% and operating at
75% PLF.
Solar Power 50,000 MW Assuming solar energy:
4-6 kWhr/ m2/ day and depending
upon future developments making
solar technology cost-competitive for
grid power applications.
Small Hydro
Power
15,000 MW
Bio-Energy 24,000 MW
Source: Ministry of New and Renewable Energy

12. COMMERCIAL ENERGY IMPORTS FOR
8% GDP
Fuel Range of
Requirement
in
Scenarios
Assumed
Domestic
Production
Range of
Imports
Import
(Percent)
Oil (Mt) 350–486 35 315–451 90–93
Natural Gas
(Mtoe)
100–197 100 0-97 0-49
Coal (Mtoe) 632-1022 560 72-462 11-45
Total
Commercial
Primary
Energy
1351-1702 ---- 387-1,010 29-59
Source: Energy Policy Report, Planning Commission, India

13. INDIA – AN ATTRACTIVE RENEWABLE
ENERGY MARKET
 India has a large potential for energy generation by
utilization of renewable energy source
 MNRE has planed a target capacity addition of
10,000 MW during the 11th five year plan
 10% of annual power capacity additions to be from
Renewable between 2003-2012
 As per the E&Y’s renewable energy index, which
takes into account various factors governing
renewable energy growth in a country, India is
ranked 3rd overall.
 High potential for development across various
renewable source

14. INDIAN WIND ENERGY SECTOR
OVERVIEW
CURRENT SCENARIO
 4th largest producers of wind energy in the world.
 India’s current installed wind capacity is 8.7 GW
(approx. 10% of the world’s total installed capacity).
 Capacity growth has been strong with a 22% CAGR
over last decade.
 Tamil Nadu, Maharashtra & Karnataka are the
leaders in wind capacity.

15. INDIAN WIND ENERGY SECTOR
OVERVIEW
FUTURE POTENTIAL
 Cumulative installed capacity is expected to reach 12
GW by 2010.
 Generation based subsidy of Rs 0.50per unit recently
announced for 10 years (limit of 5 MW per developer
and 50 MW in aggregate).

16. KEY TREND IN INDIA WIND ENERGY
INDUSTRY
Manufacturer
Value Chain
Manufacturing
Erecting &
Commissioning
Guarantees &
Maintenance
Developer
Chain
Site Identification
Contracts &
Clearances
Operation
 All players in India undertaking a Dual Role –
Manufacturing & Developer
 Various Indian Companies are looking to enter the
sector
 Infrastructure Developers
 Electrical Equipment Manufacturers

17. INDIAN SOLAR ENERGY MARKET
OVERVIEW
MASSIVE POTENTIAL OF INDIA
 Huge potential for Solar Energy development in India
 High sunshine days, abundance of sites make soalr
energy an enticing prospect
MARKET IN GROWTH STAGE
 Installed manufacturing capacity has grown from a
meager 10 MW in 2000 to a total of 335 MW by 2007.
 India is now 7th worldwide in Solar PV Cell production
 Generation capacities expected to pick up with
generation linked subsidy announced by government

18. KEY TRENDS IN INDIAN SOLAR
INDUSTRY
EXPANSION ACROSS THE BOARD
 Various existing players planning Brownfield
expansion.
 Huge new Greenfield facilities being planned.
KEY DRIVERS INCLUDE:
 Low operating costs
 Capital subsidy (20/25%) by government for large
semi-conductor based units (for large investments
above certain limits)
 Possibility of Solar Energy development locally.
 Public and private capital in abundant supply.

19. INDIAN HYDRO POWER SECTOR
OVERVIEW
POTENTIAL FOR HYDRO POWER GENERATION
 India ranks 8th in terms of hydro-electricity generated
 Potential to provide energy in remote and hilly areas
where extension of an electrical transmission grid
system is uneconomical
 Till now, 14 States have announced policies for setting
up commercial SHP projects.
KEY POSITIVE
 Proven Technology
 Low O&M Costs
 High energy conversion efficiency (70%)

20. INDIAN HYDRO POWER SECTOR
OVERVIEW
KEY DRAWBACKS
 High gestation period
 High capital costs (per MW)
 Social Costs
FUTURE POTENTIAL
 Hydro capacity expected to reach 57 GW by 2012.
 Small hydro potential is expected close to 15 GW.
 MNRE has introduced subsidy schemes for SHPs up to
25 MW.
 Well-established manufacturing base for full range and
type of small hydro equipments.

21. BIOMASS ENERGY OVERVIEW
Bio Mass
Resources
• Agricultural Crops and Residues
• Oil Bearing Plants
• Woody Biomass
• Industrial and Municipal Waste
Supply
System
• Harvesting
• Collection
• Handling
• Storage
Conversion
• Biochemical
• Thermo chemical
• Physical/Chemical
End
Products
• Heat Electricity
• Transport Fuels
• Solid Fuels

22. INDIAN BIOMASS MARKET OVERVIEW
CHALLENGES
 Small sized
 Dependence on
agricultural output
 Insecure raw material
linkage
 Shortage of
equipment
 Lack of cheap
financing, both debt
& equity
 Currently, few
focused biomass
players
POTENTIAL
 20 GW of power
may be generated
from 300 MT of
agro waste
(currently
produced)
 50% currently
burnt in the open
 Less than 3%
potential realized
 Can revolutionize
pace of rural
electrification.
DRIVERS
 Agro based
economy
 Large, Unexploited
domestic resource
 Favorably aligned
regulatory
environment
 Simple technology
 Power deficit
across states

23. SUMMARY OF POTENTIAL RETURNS IN
RE BASE GENERATION PROJECTS
 Given the comparatively higher cost of generating
energy from renewable sources, necessity for
financial support for the industry.
 Government has introduced subsidies to make
returns attractive for developers.
 Indicative expected returns:
Type of
Project
Returns
Wind Hydro
(PPA)
Hydro
(Merchant)
Biomass Solar
Costs (Rs. Cr/MW) 5-6 5-6 5-6 4-5 18-20
Equity IRR 20-25 15-18 20-25 16-20 --

24. THANK YOU