Presentation on theme: "ENERGY 4EVER Case for Renewable Energy in India"— Presentation transcript:
1ENERGY 4EVER Case for Renewable Energy in India Mr. Mukul KasliwalChairmanEntegra Limited.
2FUEL BASKET- INDIAN POWER SECTOR (June 2006) THERMAL : MWHYDEL : MWNUCLEAR : MWRENEWABLES : MWTOTAL INSTALLED CAPACITY : MW(Source : Ministry of Power)
3ENERGY SCENARIO - INDIA Continued economic development &Increasing population = High demand for EnergyA sustained 8% GDP growth of India requires an annual growth of:a) Commercial energy supply from 5.2% to 6.1%b) Total primary energy supply from 4.3% to 5.1%
4ENERGY SCENARIO - INDIA (Contd..) India’s current energy basket is coal dominated and is likely tostay this way in future.Limited domestic coal supply coupled with its poor quality,low level of technological advancements and high instance ofenvironmental perils pose serious challenges for efficient useof coal.Limited domestic reserves and uncertain foreign supply ofhydrocarbons in wake of their rising international price haveseriously impaired country’s energy security.
5ENERGY SCENARIO - INDIA (Contd..) There is a pressing need to exploreAlternate Fuel Optionswhich are sustainable, locally availableand eco friendly benign
6CASE FOR RENEWABLE ENERGY Why Renewable Energy (RE) is the preferred option for IndiaIndia has the necessary inputs such as:High untapped potential (an estimated 100,000 MW)Vast land resources for production of Biomass & Bio-fuelsAbundant sunshineLarge population & growing consumption will lead to greaterpressure on the ecology.- hence need for close watch on emissionsPlentiful sites for Wind Energy and Small Hydro
7CASE FOR RENEWABLE ENERGY (Contd..) Why Renewable Energy is particularly relevant for rural IndiaNearly 55% of India’s rural population have no access toOn-Grid SystemsVision 2012 of India aims for complete householdelectrification in the country, providing minimum lifelineelectricity consumption of one unit per household/day
8CASE FOR RENEWABLE ENERGY (Contd..) Importance of Stand-alone RE Systems:Stand –alone RE systems are the best choice for Remote Locations asAvoided Transmission costAvoided Transmission & Distribution losesThe high cost value of extending traditional grid network tothese areas as also huge distribution losses make Stand-aloneSystems very attractive for rural India. i.e. they are + ve NPVRE also bring gains for Indian economy by way ofClean Development Mechanism projects.
9RE IN INDIA A well established FRAMEWORK The Ministry of Non-Conventional Energy Sources (MNES)is the nodal agency involved in facilitating growth of RE in IndiaThe Ministry’s mandate covers the entire RE sector.RE sources covered by MNES are: Solar Wind Small / Mini / Macro Hydel Biomass Energy from Urban & Industrial Wastes Hydrogen Energy & Fuel Cells Geothermal Tidal Energy sources
10RE IN INDIA (Contd..)Indian Renewable Energy Development Agency (IREDA)is working as a non-banking financial company under theadministrative control of MNES to provide term loans forRE projects.MNES has established three specialized technical institutionsviz. Solar Energy Center (SEC), Center for Wind EnergyTechnology (C-WET) and Sardar Swaran Singh Instituteof Renewable Energy.
11RE IN INDIA : FACTSHEET S.No. Sources/Technologies Potential Estimated Achievement as on1Wind Power (MW)45,0005,340.602Small Hydro - upto 25 MW (MW)15,0001,826.433Biomass Power (MW)Biomass Gasifiers (MW)19,00016,000912.5369.874Solar Photovoltaic (MW/Sq. Km.)202.745Solar Water Heating Systems (Million Sq. Mtr. Collector Area)1401.06Biogas Plant (Number in Million)123.77Improved Biomass Chulha or Cooking stoves (Number in Million)12035.2*8Urban & Industrial Waste (MW)1,70045.78Source: MNES; *As on March 31, 2003
12TARGET FOR ELEVENTH FIVE YEAR PLAN (2007-12) Wind Power – 3,500 MWSmall Hydro Power – 1,400 MWBiomass Power/ Co-generation/ Gasification – 1,725 MWSolar Power – 25 MWSolar Thermal Power – 110 MWEnergy from Urban/Industrial waste – 140 MWTotal fund Required – US$ 8.96 BillionBudgetary Support by Government of India – US$ 0.48 BillionPrivate Sector Investment (Equity + Loan) – US$ 8.48 Billion
13RE IN INDIA – ENABLING LEGISLATIONS To mainstream RE into national’s energy matrix, it is stronglyfelt that India needs a comprehensive “Renewable EnergyPolicy” on lines of similar successful legislations likeGermany, UK, Spain, Denmark, etc.Legislations including the Electricity Act, 2003 and NationalTariff policy have tried to promote RE by mandating stateelectricity regulatory commissions (SERCs) to ensure inclusionof RE-based electricity in energy mix of state utilities.
14RE – ENABLING LEGISLATIONS (Contd..) SERCs of Andhra Pradesh, Karnataka, Gujarat, MadhyaPradesh and Orissa have issued final regulations specifyingquotas of RE based electricity generation.States of Tamil Nadu, Kerala, Rajasthan and Uttar Pradeshhave issued consultation papers in this regard.
15RE - FINANCIAL / FISCAL INCENTIVES Income Tax Holiday Accelerated Depreciation Concessional Custom Duty / Duty Free Import Capital Subsidy Energy buyback, power wheeling and banking facilities Sales Tax concession benefits Electricity Tax exemptionDemand cut concession offered to industrial consumers whoestablish power generating units from renewable energy sources
16RE - OTHER PROCEDURAL COMFORTS Industrial clearance is not required for setting up ofrenewable energy industryNo clearance is required from Central Electricity Authorityfor power generation projects up to US$ 21 million.Facilities for promotion of export oriented units are availablefor renewable energy industry also.Financial support is available to renewable energy industriesfor taking up R&D projects with technology institutionsAssistance for Export Promotion and Market DevelopmentBlending of Ethanol is allowed up to 5% with Gasoline andsimilar provisions is being extended to Bio Fuels
17WHY INVEST IN INDIAN RE SECTOR Among the World’s Largest Renewable Energy ProgrammeExclusive Federal Ministry to deal with Renewables (Perhaps the only country to have it)Exclusive Financial Institution for funding Renewable ProjectsStrong Manufacturing Base and Fast Growing EconomyAvailability of Cheap Skilled Man powerVast Untapped Consumer baseFavorable Government PolicyModerate tax ratesFinancial/Fiscal IncentivesEmerging CDM Market
18OPPORTUNITIES IN THE NEAR TERM Vastly untapped solar energyBio fuels produced from non-edible oil seedsGeothermal Energy – There are 300 geothermal spring sites spread throughout the countryOcean/Tidal EnergyFuel cells for standalone operationsSmall Electric Cars
19EMERGING OPTIONS - HYDROGEN Emerging options that comes with in 5 yearsHydrogen – widely being recognized as clean, reliable and sustainable source enhancing India’s energy security.MNES has set up a National Hydrogen Energy Board; Five Expert Groups on hydrogen production, its storage, applications in transport & power generation, and hydrogen system integration.
20EMERGING OPTIONS - HYDROGEN (Contd..) Based on the reports of these Expert Groups, the National Hydrogen Energy Road Map has been drawn. The Road Map has identified two major initiatives:Green Initiative for Future Transport &Green Initiative for Power GenerationThe Road Map under these specific initiatives has evolved a Hydrogen Vision 2020 where the target is to introduce up to 1 million hydrogen fueled vehicles and 1000 MW of decentralized hydrogen-based power generation by 2020 through public-private partnerships.