1. Europe India Chamber of Commerce, Spain
INVESTMENT OPPORTUNITIES IN INDIA IN THE SOLAR ENERGY SECTOR
Gour Saraff, Director EICC Spain

2. Incredible INDIA • 4th Largest Global Economy
Fastest Growing Free Market Democracy
IT & Engineering Superpower
Rich Mineral Base
Vibrant Capital Market
Large Infrastructure –
2nd largest Rail network
5th largest power market
334 airports, 12 major & 87 minor ports
400 Million telephone connections

3. Strong focus to drive infrastructure growth
200 Infrastructure Investment ( )
167
~ US$ 500 bn
160
120
US $ bn 79 80 40 65 65 63 36 22 8 6 4
Source: Planning commission (XIth five year plan)
Government is putting lot of emphasis on infrastructure investment and
growth
Positive regulatory reforms remain a key driver of growth
Power being the major thrust area
Infrastructure investment may be doubled (~1 trillion) in 12th five
year plan ( )

4. India has a large potential for RE
RE Potentialin India
(Source: MNRE, Annual report )
Installedcapacity – 18.8 GW (as 31Mar’11)
Small Hydro Power
15.7%
Wind Power
70.0%
Biomass & Waste
to Power
14.2%
Solar Power
0.2%
(Source: MNRE, Annual report )
Source
Estimated
Potential(GW)
Installed(GW)
as31Mar’11
WindPower
48.5
13.18
Biomass&
Wasteto
Energy
23.7
2.67
SmallHydro
15.0
2.95
SolarPower
30~40
MW/sq.km
0.03
Wind energy constitutes largest commercially exploited RE source in India.
RE capacity is 10-11% of total grid installed capacity base
Barely 20-22% of the total potential has been tapped excluding solar energy
Solar power is merely 0.2% (32.4 MW) of Grid interactive RE power
But potential of Solar power in India is far more than
other RE sources 8

5. POWER HUNGRY ECONOMY
Power Requirement (GW)
425
306
220
778
575
153
(Source: Integrated Energy Policy - Planning Commission Report 2006)
• There has been a continuous shotage of power to the tune of average 10~12%
• Economic growth derives for increse in the demand
• Expected demand, at current growth rate of 8%, to cross 750 GW in 2031~32
• A major part of this demand to be fulfilled by Renewable Energy

6. Blackout a harbinger of power needs to come?

7. Back 6

8. India Solar Radiation map
• Every Sq. km of area can generate
40 MW power
• Rajasthan and Gujarat has
abundant and desert and unfertile
land with no other alternative
usage
• 35,000sq. km of desert area set
aside for solar power can generate
14 Lakh MW of power – Equivalent
to 8 times of current generation
capacity

9. Solar Power Potential Solar Radiation Map of India
High Solar Isolation levels in India
The North Western Partof India
(Gujarat & Rajasthan) gets high
levelsof solarradiations, almost
throughouttheyear.
Solar Radiation Map of India 5

10. Solar Power– Natural Fit for India
• India located in the equatorial belt with high
Geographic
Fit
solar irradiation.
• 250 to 300 clear sunny days.
• Equivalent energy potential is about 5000 trillion
KWh` per year.
• Enabling Policy Framework in place – National
Solar Mission.
• “Power for all” by 2012 –stated goal of GOI.
Policy Fit
Socio-
economic
Fit
• Fossil fuels have finite life – Solar has potential to
reduce large energy import bill in the long run.
• Energy security – critical for national security
• 10% of solar capable land will reduce emissions
equivalent to 5909 mtoe/year.
• Large areas of barren land in underdeveloped
parts of the country ideal for solar power plants.
• Large parts of rural India have no access to
electricity grid.
• Job creation potential high.
• Huge potential for manufacturing – can become
global leader in adoption of solar technology.
Company history
Source:
ion_large.gif 6

11. Jawaharlal Nehru Solar Mission
National Action Plan on Climate Change:
• Solar Mission envisaged to give boost to solar power – launched
on 11 January 2010
• Large-scale solar power generation an identified thrust area
Solar Mission Aim:
• Rapid and large-scale diffusion of solar power generation
technologies
• Building local manufacturing, R&D and human resource
capability
• Reduction of cost to move towards grid parity.
Proposed targets (2022):
• 20,000 MW grid-power installed capacity
• 2,000 MW off-grid power
• mln. sq.m thermal collectors 14

12. Cumulative targets under Solar Mission
India is endowed with vast solarenergy potential:
-About 5,000 trillion kWh/yearenergy is incidentover India’s land
Source: Jawaharlal Nehru National Solar Mission: Towards Building Solar India

13. Tremendous growth projected in Off-Grid segment
AnnualSolarMarketOff-take(MW)
17-18
18-19
19-20
20-21
21-22
Grid-connectedSolarPotential
ResidentialRooftop
1024
1356
3600
5341
7677
UtilityScaleSolarPower(CSPandPV)
1043
2229
3570
5084
8146
Off-gridSolarApplicationPotential
Solar-poweredAgriculturePumpsets
268
563
3969
4639
6730
Solar-poweredTelecomTowers
318
380
414
562
612
TotalAnnualSolarMarket
2653
4528
11553
15626
23165
(Source: KPMG in India’s The Rising Sun, May 2011)
With decrease in cost of solar power, the residential rooftop and agriculture will be fastest growing segment
Solar power, with its ability to provide day time power, can meet the agriculture power demand from the farmers
without being connected to grid
Solar power is already competitive with the effective price of diesel based power for Telecom towers. It has
potential to replace ~30% of diesel consumption. 10

14. Grid parity in next 10 years
LevelizedCost Comparisonof Utility-scale PV and ConventionalPower at Grid
(Source: KPMG’s Solar Grid Parity Model
*Note that the CDM benefit of INR 0.60 / KWH has been factored in the Solar Costs)
In India grid parity to happen in when the levelized tariffs from solar
power are comparable with the levelized tariffs of grid power 17

15. The Energy Sector Institutional Structure at Centre...
Government of India
Planning
Commission
Ministry of
Power
Ministry of
Environment &
Forests
Ministry of
Petroleum &
Natural Gas
Ministry of New
andRenewable
Department of
Atomic Energy
CERC / CEA / BEE
Ministry of Coal
Energy
Utilities / NTPC / NHPC
/ POWERGRID / PTC /
PFC / REC
Central Pollution
Control Board
IndianRenewableEnergy
Development Agency
Upstream / Downstream
Companies
India is the only country worldwide to have a dedicated ministry for promotion of
renewable energy– Ministry of New and Renewable Energy(MNRE)
Source: Clean Energy: An Exporter’s Guide to India (2008) 5

16. …And the RE Institutional Structure at the State Level…
State Government
State Electricity Regulatory
Commission
Department of
Environment
State Pollution
Control Board
Department of
Power
State Utilities / GENCOs /
DISCOMs / TRANSCOMs
State Renewable
Development Agency
Electrical
Inspectorate
Most States have State Nodal Agencies (SNAs) to oversee their respective
implementationof renewable energyprograms
Source: Clean Energy: An Exporter’s Guide to India (2008) 6

17. Provide the Overall RE Institutional Support Structure
Planning Commission
CERC / CEA
Ministry of Power / REC
Ministry of Finance
Ministry of New &
RenewableEnergy
(MNRE)
SERCs
Banks / NBFCs /
Multilaterals
Solar Energy Centre /
Other R&D Institutes
IREDA
NVVN
SDREDAs / SNAs / NGOs /
Akshay Urja Shops
State Utilities / GENCOs /
DISCOMS / TANSCOMS
Solar Cells, Modules &
Systems Manufacturers
End Users & Producers:: Individuals / Corporates/ Government/ IPPs
Policy Flow
R&D Flow
Fund Flow
Implementation Flow
Source: Framework Adapted from India: Renewable Energy Report (APCTT-UNESCAP); Analysis 7

18. India will be the next solar capital of the World35 80
68.0 30 70 60 25 20
23.2
44.8
15.6 50 40
Annual Solar Market (GW)
Cumulative Solar Capacity (GW) 15 30 10 20
13.1 5
5.2
2.7 10
0.7
2.0
Annual Solar Market
(Source: KPMG’s Solar Market Potential Model)
Till dategrowth was in Europe
CAGR of ~ 60% for both CSP & Solar PV
technology in the last 5 years in the world
Source: REN21
Cumulative Solar Capacity
Next growth will be in India.
By , cumulative Solar capacity will be 68 GW
Key Drivers
Strong Government support
Decreasing cost of Solar power
Huge Off grid requirement of Agriculture/Rural segment 9

19. EICC How can you participate: Joint venture with Indian partner FDI
Participate in any area of the value chain:
Production to EPC to Financing to Maintenance

20. EICC
Gracias y Namaskar.