Renewable Energy in India Sumant Sinha, Chairman & CEO, ReNew Power Ventures Pvt. Ltd. October 2012

About ReNew Power 2 ReNew was established in November 2010 Goldman Sachs infused $250 million into the company in September 2011, making ReNew the best capitalized company in the Indian renewables sector ReNew commissioned its first wind project of 25.2 MW in Gujarat in March 2012 Till date, the company has commissioned almost 100 MW all over India Its key equipment suppliers are Enercon, Gamesa, Suzlon, ReGen and Kenersys ReNew is run by a team of about 50 professionals with quality industry experience ReNew aims to establish itself as the top IPP in the renewables sector

World Renewable Energy Scenario 3 CountryCapacity (MW) China17,631 USA6,810 India3,019 Germany2,086 UK1,293 Canada1,267 Spain1,050 Italy950 France830 Sweden763 CountryCapacity (MW) China44,733 USA40,180 Germany27,214 Spain20,676 India13,065 Italy5,797 France5,660 UK5,204 Canada4,009 Denmark3,752 Total Wind Capacity in Dec 2010Wind Capacity Added in 2011 CountryCapacity (MW) Germany17,320 Italy3,502 Japan3,618 United States2,534 Spain3,915 China800 France1,054 Czech Republic1,952 Belgium1,044 Australia571 South Korea656 Canada291 Greece205 India161 Total Solar Capacity in Dec 2010Solar Capacity Added in 2011 CountryCapacity (MW) Italy9,280 Germany7,500 China2,200 United States1,855 France1,522 Japan1,296 Belgium776 Australia774 Greece426 Canada363 Spain355 India266 South Korea92 Czech Republic7 According to BP, India ranks 14 th in terms of cumulative capacity and 12 th in terms of capacity added from January to December The introduction of the JNNSM shall prove to be a great impetus in bolstering India’s growth in Solar PV. According to GWEC, India ranks 5 th in terms of cumulative capacity and 3 rd in terms of capacity added from January to December This goes to show wind energy investment in India is on the rise.

Renewable Energy in India 4 ResourceInstalled Capacity (MW) Wind Power17,967 Small Hydro Power3,434 Bio Power3,413 Solar Power1,044 Total25,858 According to MNRE India has a total of mapped potential of 150 GW Only 15% of the total mapped potential has been developed in the country The energy potential is likely to be even greater than 150 GW, as significant generation capacity has not yet been mapped. The National Action Plan on Climate Change was released by the Prime Minister on 30 th June 2008 The NAPCC has recommended increasing the share of renewable energy to 10% by 2015 and 15% by 2020 India requires a tremendous renewable energy growth in the next decade SOURCE: MNRE, Capacity as on 31 st Mar 12

Wind Sector 5  Wind currently makes up ~70% of India’s renewable energy capacity, and is expected to grow at ~12% through to 2017  Majority of growth has been due to the accelerated tax depreciation benefit market, which has now been withdrawn by the government  More recently, policy initiatives have ensured that there has been a shift toward growth in capacities produced by Independent Power Producers (IPPs) Wind power capacity has been growing significantly over the last few years SOURCE: MNRE, KPMG Yearly wind capacity additions, GW

Wind capacity potential estimates range from 49 GW to 100 GW Wind Potential in India 6 GWEC has estimated a wind potential of 100 GW across India C-WET study estimated 49 GW Current installed capacity is 15 GW SOURCE: C-WET, MNRE  A long coastline and relatively low construction costs could make India a favored destination for off-shore power State-wise capacities and potential, GW, As on 03/2012 SOURCE: MNRE, C-WET In India only 30% of potential is utilized

Solar Energy in India 7 Solar energy has emerged as one of the leading RE technologies SOURCE: SolarGIS  According to data released by MNRE, as of June 2012, ~1030 MW of solar PV power generation capacity has been commissioned. Rounds of bidding under the National Solar Mission Solar ThermalSolar PV Batch 1 (2010) Batch 2 (2011) Total Allocation470 MW150MW355MW Allocation 7 Solar Thermal Projects of 20 – 100 MW each 30 Solar PV Projects of 5 MW 26 Solar PV Projects of MW Tariff Average: INR INR INR INR 9.4 Participation Primarily domestic players - private and public Foreign as well as domestic players Locations Rajasthan leading with ~85% Rajasthan leading with ~70% Rajasthan leading with ~86%

Projected Capacity 8 Aspirations as per Government’s Five Year Plans SOURCE: Planning Commission, KPMG As a proportion of total power capacity additions, renewables have increased by ~11% Solar is expected to be a large contributor to next 5 year capacity plan Based on RPOs, the wind energy capacity addition is projected to increase by ~48 GW by 2020

Challenges 9...however, they face several issues  Inadequate transmission and evacuation infrastructure  REC mechanism:  RPO enforceability not clear  Longer pricing visibility needed  Banks not willing to fund  GBI extension and increase  Very high interest rates  Banks’ exposure reducing due to conventional power lending  Need to carve out a separate limit for renewables  Health of SEB’s and overall health of the power sector  Slow evolution of the overall regulatory environment  Execution Issues  Land Mafia  Local Villagers  Timely Financing

Room for Collaboration 10  Access to R&D in the solar space through names like Montealto, Sener, Abengoa and Acciona  Access to technology  Superior forecasting tools for scheduling  Grid management systems for increasing proportion of renewables in the total energy basket  The CDM market needs to be more robust to support capacity in India  Integrated supply chain. Gamesa has already developed a significant presence in the wind sector in India  Long term financing for projects  Spanish Export-Import Bank (CESCE)  Private banks such as Santander

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