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New & Renewable Energy PRESENTATION By. Agenda – I Energy Scenario Power Reforms RE Imperative RE Scenario RE Policy Enablers RE Targets RE Investments.

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Presentation on theme: "New & Renewable Energy PRESENTATION By. Agenda – I Energy Scenario Power Reforms RE Imperative RE Scenario RE Policy Enablers RE Targets RE Investments."— Presentation transcript:

1 New & Renewable Energy PRESENTATION By

2 Agenda – I Energy Scenario Power Reforms RE Imperative RE Scenario RE Policy Enablers RE Targets RE Investments Attractiveness

3 Energy Scenario Power Capacity – 156 GW  Thermal- 100 GW  Hydro- 37 GW  Renewable- 15 GW Per Capita Consumption – 730 units RE Share in Generation– 4% Energy Served Population– 60% Peak Deficit – 12% Energy Deficit – 11% AT&C Losses– 30%

4 Power Reforms Unbundling of utilities De-licensing in Generation & Transmission Mega schemes - UMPP & UMTP Creation of National Grid Franchisee in Distribution Promoting merchant Power Focused approach for Rural Areas Promotion of Renewable Energy  Fiscal & Financial Incentives  RPO Targets  National Solar Mission

5 RE Imperative Enormous RE potential Promotes Energy Security Promotes Sustainable Growth Bridges demand-supply gap Reduced Losses as Generation near consumption Provides lifeline energy (Heat, Light & Power) to rural masses

6 Issues with RE Projects Remote Locations Infirm Power, difficult to schedule Limited Generation period, requires storage High Generation Cost due to  High up-front cost  Low Capacity Factor Under-utilization of transmission facilities Associated with Reactive Power First Generation Entrepreneurs Limited Public Sector Participation Lack of Trained Work-force

7 RE Policy Enablers Dedicated Ministry – MNRE Dedicated Financial Institution - IREDA Comprehensive Resource Assessment  Wind Atlas  Solar Radiation Mapping  Identification of Hydro sites Enabling Legislations  NAPCC  Purchase Obligations  Preferential Tariffs/ GBI/ RE Certificate  Guaranteed off-take, Must-Run status

8 Fiscal & Financial Incentives Excise duty exemptions Income Tax Holiday Accelerated Depreciation Electricity Duty exemption Preferential Tariffs/ GBI/ RE Certificate Interest & Capital subsidies 100% FDI permitted Energy buy-back through long-term PPA Captive, 3 rd Party Sale & Trading

9 NAPCC Snapshot – 8 Missions

10 Indian RE Scenario Sector Total Potential (in GW) Harnessed (in GW) Wind4811 Small Hydro152.6 Cogeneration51.2 Biomass170.8 SolarUnlimited6 Note: Grid connected capacity as on 31-Oct-2009

11 Investments in Indian RE Parameters20072008% Change Total InvestmentsUSD 3.3 BlnUSD 3.7 Bln12% SOURCE-WISE VC & PEUSD 133 MlnUSD 493 Mln280% Foreign ExchangesUSD 756 Mln-- Domestic BoursesUSD 646 MlnUSD 74 Mln(85%) M&AUSD 585 Mln -- SECTOR-WISE WindUSD 2.2 BlnUSD 2.6 Bln17% SolarUSD 18 MlnUSD 347 Mln1800% SHPUSD 135 MlnUSD 543 Mln300% Bio-FuelUSD 251 MlnUSD 49 Mln(80%) Asset FinanceUSD 2.5 BlnUSD 3.2 Bln25%

12 2012 RE Targets & Investments SectorCapacity* (MW) USD Mln per MW Investments USD Bln Wind62501.17 Solar**100033 Small Hydro8601.41.2 Biomass13801.001.3 TOTAL9500 12.5 By 201225000 (*) After deducting for the commissioned capacity as on 31 Oct’09 from MNRE-RFD for Wind, SHP & Biomass (**) Solar – JNNSM (Th-600 MW + PV-400 MW) (^) Cost projections – Inline with CERC guidelines


14 Indian Economy Fastest growing free market democracy 4 th largest economy GDP growth @ 8% Infrastructure  2 nd largest Rail network  334 airports  12 major ports & 87 minor ports  400 Million telephone connections  5 th largest power market IT & Engineering Superpower

15 FDI in India 100% FDI allowed in power Generation, Transmission & Distribution Government has set up Foreign Investment Implementation Authority  One-stop service to foreign investors  Obtaining necessary approvals  Sorting operational problems

16 Source: IBM-PLI – Global Investment Locations Database, GILD INDIA: Ideal Destination Business India USA UK China Financial USA China UK India Motor China USA India Poland ICT India USA China UK Electronics China India USA UK Pharma USA China India UK US$ 35 Billion FDI in 2008-09

17 FDI in Indian Power Sector Year Power Sector (US $ Mln) RE Sector (US $ Mln) 2008-09 98585 2007-08 96843 2006-07 1582


19 Agenda – II Introduction Operational Areas Financing Schemes Resource Base Performance Highlights International Partnerships Recognition

20 Evolution INCEPTION Incorporated under the Companies Act on 11th March, 1987 to promote, develop and extend financial assistance for Renewable Energy and Energy Efficiency/ Conservation Projects. OBJECTIVE Extend financial support to Renewable Energy, Energy Efficiency & Conservation projects MOTTO Energy For Ever

21 Operational Areas Sectors being financed: Wind Small & Medium Hydro Biomass Power & Cogeneration Solar Waste to Energy EE & Conservation Bio Fuels/ Alternate Fuels Other Activities Intermediary for providing financing facilities for various MNRE Schemes Implementing Agency for GBI scheme

22 Financing Offerings Schemes  Project Financing  Equipment Financing  Financing Through Intermediaries Terms  Loan- 70% of Project Cost  Interest -11.25% to 12.15% (based on credit rating)  Repayment - Upto 13 Years New Initiatives  Securitization against future receivables  Structured repayment  Loan syndication under Consortium  Non-recourse financing

23 Outreach Registered & Head office – New Delhi Branch Offices – Chennai & Hyderabad Camp Offices – Kolkata & Ahmedabad Business Development Associates – 50 Nos MoU with PFC, PTC, IIFCL for joint financing Conducts Business Meets, Seminars, workshops Publishes IREDA News & Bulletin on EE

24 Cumulative Performance No of Projects Sanctioned:1892 Total Loan Sanctions:Rs.10,356 Cr Loan Disbursements:Rs. 5,754 Cr Sanctioned Power Capacity:3616 MW Commissioned Capacity:1902 MW Conventional Fuel Replacement:13L MTCR/Yr As on 31/03/2009

25 India ’ RE Portfolio IREDA ’ Share As on 31/03/2009 Sector Total MW IREDA MW% Share Bio-Power703.0224.832.0% Wind10242.0907.98.9% SHP2428.8300.012.4% Co-Gen1049.0494.647.1% W2E59.024.741.8% Solar2.9NIL TOTAL14484.71951.913.5%

26 Highlights Unique FI Dedicated for RE Financing Specialized knowledge of RE & EE High Brand Equity Catalyzed market development leading to commercialization of RE Assisting in policy formulation Profit earning & dividend paying ISO 9001:2000 Certified Company Highest share in RE Financing - 13.5%

27 International Partnerships Lines of Credit Availed Govt of Netherlands, 1991:18 Million Dutch Guilders World Bank (1 st LoC), 1993:$ 145 Million DANIDA, 1993 :$ 15 Million Asian Development Bank, 1997:$ 100 Million KfW, Germany (1 st LoC), 1999:€ 61 Million World Bank (2 nd LoC), 2001:$ 110 Million KfW, Germany(2 nd LoC), 2008:€ 50 Million KfW, Germany (3 rd LoC):€ 19.9 Million Lines of Credit in Pipeline AFD (France):€ 70 Million JICA (Japan):$ 100 Million

28 Lender ’ s Perceptions ADB - IREDA has satisfactorily performed the operational and institutional responsibilities in accordance with the diverse objectives for which it was created. World Bank - IREDA is well motivated, active and has strong interest in incorporating environmental costs and benefits into economic analysis. KFW - despite its fairly young age, IREDA is an able and competent financial institution and has retained its financial strength through years of very rapid growth and in sectors with considerable technological and financial risks.

29 Recognition Second Prize in Water Globe Award Category of the Energy Award 2002 presented at Linz, Austria. World Climate Technology Award for the year 1999 by Climate Technology Initiative (CTI), France.


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