Transcript Presentation to Hon’ble Minister, MNRE, GoI

New & Renewable Energy
PRESENTATION By
Agenda – I
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Energy Scenario
Power Reforms
RE Imperative
RE Scenario
RE Policy Enablers
RE Targets
RE Investments
Attractiveness
Energy Scenario
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Power Capacity
 Thermal
 Hydro
 Renewable
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– 156 GW
- 100 GW
- 37 GW
- 15 GW
Per Capita Consumption
RE Share in Generation
Energy Served Population
Peak Deficit
Energy Deficit
AT&C Losses
–
–
–
–
–
–
730 units
4%
60%
12%
11%
30%
Power Reforms
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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
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Fiscal & Financial Incentives
RPO Targets
National Solar Mission
RE Imperative
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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
Issues with RE Projects
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Remote Locations
Infirm Power, difficult to schedule
Limited Generation period, requires storage
High Generation Cost due to
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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
RE Policy Enablers
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Dedicated Ministry – MNRE
Dedicated Financial Institution - IREDA
Comprehensive Resource Assessment
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Wind Atlas
Solar Radiation Mapping
Identification of Hydro sites
Enabling Legislations
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NAPCC
Purchase Obligations
Preferential Tariffs/ GBI/ RE Certificate
Guaranteed off-take, Must-Run status
Fiscal & Financial Incentives
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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, 3rd Party Sale & Trading
NAPCC Snapshot – 8 Missions
Indian RE Scenario
Total Potential
(in GW)
Harnessed
(in GW)
Wind
48
11
Small Hydro
15
2.6
Cogeneration
5
1.2
17
0.8
Unlimited
6
Sector
Biomass
Solar
Note: Grid connected capacity as on 31-Oct-2009
Investments in Indian RE
Parameters
Total Investments
2007
USD 3.3 Bln
2008
% Change
USD 3.7 Bln
12%
SOURCE-WISE
VC & PE
USD 133 Mln
USD 493 Mln
280%
Foreign Exchanges
USD 756 Mln
--
--
Domestic Bourses
USD 646 Mln
USD 74 Mln
(85%)
M&A
USD 585 Mln
USD 585 Mln
--
SECTOR-WISE
Wind
USD 2.2 Bln
USD 2.6 Bln
17%
Solar
USD 18 Mln
USD 347 Mln
1800%
SHP
USD 135 Mln
USD 543 Mln
300%
Bio-Fuel
USD 251 Mln
USD 49 Mln
(80%)
USD 2.5 Bln
USD 3.2 Bln
25%
Asset Finance
2012 RE Targets & Investments
Sector
Capacity*
(MW)
USD Mln
per MW
Investments
USD Bln
Wind
6250
1.1
7
Solar**
1000
3
3
860
1.4
1.2
Biomass
1380
1.00
1.3
TOTAL
9500
Small Hydro
By 2012
12.5
25000
(*) 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
ATTRACTIVE INVESTMENT
DESTINATION
Indian Economy
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Fastest growing free market
democracy
4th largest economy
GDP growth @ 8%
Infrastructure
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2nd largest Rail network
334 airports
12 major ports & 87 minor ports
400 Million telephone connections
5th largest power market
IT & Engineering Superpower
FDI in India
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100% FDI allowed in power
Generation,
Transmission
&
Distribution
Government has set up Foreign
Investment
Implementation
Authority
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One-stop service to foreign investors
Obtaining necessary approvals
Sorting operational problems
www.investinginindia.in
INDIA: Ideal Destination
Business
India
USA
US$ 35
Billion FDI in
UK
2008-09
China
ICT
India
USA
China
UK
Financial
USA
China
UK
India
Motor
China
USA
India
Poland
Electronics
China
India
USA
UK
Pharma
USA
China
India
UK
Source: IBM-PLI – Global Investment Locations Database, GILD
FDI in Indian Power Sector
Year
Power Sector RE Sector
(US $ Mln)
(US $ Mln)
2008-09
985
85
2007-08
968
43
2006-07
158
2
ABOUT IREDA
Agenda – II
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Introduction
Operational Areas
Financing Schemes
Resource Base
Performance Highlights
International Partnerships
Recognition
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
Operational Areas
Sectors being financed:
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Wind
Small & Medium Hydro
Biomass Power & Cogeneration
Solar
Waste to Energy
EE & Conservation
Bio Fuels/ Alternate Fuels
Other Activities
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Intermediary for providing financing
facilities for various MNRE Schemes
Implementing Agency for GBI scheme
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
Outreach
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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
Cumulative Performance
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No of Projects Sanctioned
Total Loan Sanctions
Loan Disbursements
Sanctioned Power Capacity
Commissioned Capacity
Conventional Fuel Replacement
As on 31/03/2009
:1892
:Rs.10,356 Cr
:Rs. 5,754 Cr
:3616 MW
:1902 MW
:13L MTCR/Yr
India’ RE Portfolio
IREDA’ Share
Sector
Bio-Power
Total
MW
IREDA
MW
% Share
703.0
224.8
32.0%
10242.0
907.9
8.9%
SHP
2428.8
300.0
12.4%
Co-Gen
1049.0
494.6
47.1%
W2E
59.0
24.7
41.8%
Solar
2.9
NIL
NIL
14484.7
1951.9
13.5%
Wind
TOTAL
As on 31/03/2009
Highlights
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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%
International Partnerships
Lines of Credit Availed
 Govt of Netherlands, 1991
 World Bank (1st LoC), 1993
 DANIDA, 1993
 Asian Development Bank, 1997
 KfW, Germany (1st LoC), 1999
 World Bank (2nd LoC), 2001
 KfW, Germany(2nd LoC), 2008
 KfW, Germany (3rd LoC)
:18 Million Dutch Guilders
:$ 145 Million
:$ 15 Million
:$ 100 Million
:€ 61 Million
:$ 110 Million
:€ 50 Million
:€ 19.9 Million
Lines of Credit in Pipeline
 AFD (France)
 JICA (Japan)
:€ 70 Million
:$ 100 Million
Lender’s Perceptions
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ADB -
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World Bank -
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KFW -
IREDA has satisfactorily performed the operational
and institutional responsibilities in accordance with the
diverse objectives for which it was created.
IREDA is well motivated, active and has
strong interest in incorporating environmental costs and
benefits into economic analysis.
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.
Recognition
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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.
THANK YOU