Presentation on theme: "Europe India Chamber of Commerce, Spain INVESTMENT OPPORTUNITIES IN INDIA IN THE SOLAR ENERGY SECTOR Gour Saraff, Director EICC Spain."— Presentation transcript:
Europe India Chamber of Commerce, Spain INVESTMENT OPPORTUNITIES IN INDIA IN THE SOLAR ENERGY SECTOR Gour Saraff, Director EICC Spain
Incredible INDIA 4 th Largest Global Economy Fastest Growing Free Market Democracy IT & Engineering Superpower Rich Mineral Base Vibrant Capital Market Large Infrastructure –––––––– 2 nd largest Rail network 5 th largest power market 334 airports, 12 major & 87 minor ports 400 Million telephone connections
US $ bn Strong focus to drive infrastructure growth 200 Infrastructure Investment ( ) ~ US$ 500 bn 0 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 12 th five year plan ( )
Source Estimated Potential(GW) Installed(GW) as31Mar11 WindPower Biomass& Wasteto Energy SmallHydro SolarPower 30~40 MW/sq.km 0.03 India has a large potential for RE 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 RE Potentialin India (Source: MNRE, Annual report ) Installedcapacity – 18.8 GW (as 31Mar11) Small Hydro Power 15.7% Wind Power 70.0% Biomass & Waste to Power 14.2% Solar Power 0.2% (Source: MNRE, Annual report )
Power Requirement (GW) POWER HUNGRY ECONOMY (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
Blackout a harbinger of power needs to come?
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
Solar Power Potential 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
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. Solar Power– Natural Fit for India India located in the equatorial belt with high 6 Company history Source: ion_large.gif 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.
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 14 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 20 mln. sq.m thermal collectors
Cumulative targets under Solar Mission India is endowed with vast solarenergy potential: -About 5,000 trillion kWh/yearenergy is incidentover Indias land Source: Jawaharlal Nehru National Solar Mission: Towards Building Solar India
AnnualSolarMarketOff-take(MW) Grid-connectedSolarPotential ResidentialRooftop UtilityScaleSolarPower(CSPandPV) Off-gridSolarApplicationPotential Solar-poweredAgriculturePumpsets Solar-poweredTelecomTowers TotalAnnualSolarMarket Tremendous growth projected in Off-Grid segment (Source: KPMG in Indias The Rising Sun, May 2011) 10 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.
Grid parity in next 10 years LevelizedCost Comparisonof Utility-scale PV and ConventionalPower at Grid 17 (Source: KPMGs 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
The Energy Sector Institutional Structure at Centre... Government of India Planning Commission Ministry of Coal Ministry of Power Ministry of Petroleum & Natural Gas Ministry of New andRenewable Department of Atomic Energy Ministry of Environment & Forests CERC / CEA / BEE 5 India is the only country worldwide to have a dedicated ministry for promotion of renewable energy– Ministry of New and Renewable Energy(MNRE) Central Pollution Control Board IndianRenewableEnergy Development Agency Upstream / Downstream Companies Energy Utilities / NTPC / NHPC / POWERGRID / PTC / PFC / REC Source: Clean Energy: An Exporters Guide to India (2008)
…And the RE Institutional Structure at the State Level… State Government State Renewable Development Agency State Electricity Regulatory Commission Department of Environment State Pollution Control Board Department of Power State Utilities / GENCOs / DISCOMs / TRANSCOMs 6 Electrical Inspectorate Most States have State Nodal Agencies (SNAs) to oversee their respective implementationof renewable energyprograms Source: Clean Energy: An Exporters Guide to India (2008)
Provide the Overall RE Institutional Support Structure IREDA Solar Energy Centre / Other R&D Institutes Ministry of New & RenewableEnergy (MNRE) SERCs CERC / CEA Planning CommissionMinistry of Power / RECMinistry of Finance Banks / NBFCs / Multilaterals 7 Policy Flow R&D Flow Fund FlowImplementation Flow NVVN SDREDAs / SNAs / NGOs / Akshay Urja Shops State Utilities / GENCOs / DISCOMS / TANSCOMS Solar Cells, Modules & Systems Manufacturers End Users & Producers:: Individuals / Corporates/ Government/ IPPs Source: Framework Adapted from India: Renewable Energy Report (APCTT-UNESCAP); Analysis
Cumulative Solar Capacity (GW) Annual Solar Market (GW) India will be the next solar capital of the World Annual Solar Market (Source: KPMGs 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
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