Transcript National Solar Mission

Indian Solar Power Development:
Opportunities
By
Debashish Majumdar
Chairman & Managing Director
Indian Renewable Energy Development Agency Limited
New Delhi ( India )
Washington DC
Nov 5, 2009
Contents

Overview: Power & RE Sector
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IREDA
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Preview: Solar Mission
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Opportunities
Indian Economy
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Fastest growing free market democracy
4th largest economy
Average GDP growth @ 8%
2nd largest Rail network, 334 airports
12 major ports & 187 minor ports
400 Million telephone connections
5th largest power market
Strong IT & Engineering base
Current Power Scenario
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Installed Capacity
:150 GW
Power Growth
: 6%
Power Trading
: 3%
Per capita consumption:700Kwh
Transmission Capacity: 21 GW
Power Mix
Renewable
10%
Gas
11%
Nuclear
3%
Thermal
52%
Hydro
24%
Thermal
81,484 MW
Hydro
36,917 MW
Gas
16,386 MW
Renewable
15,141 MW
Nuclear
4120 MW
Challenges
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Huge Unmet Demand
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Energy Security
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Peak Deficit – 12%
Half of population lacks power
Dependence upon Imports
Low-carbon/ Sustainable Growth
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4th Largest Carbon Emitter
RE Imperative
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Enormous potential
Equitable distribution
Promotes Energy Security
Bridges demand-supply gap
Low carbon growth trajectory
Provides lifeline energy in rural areas
DSM measure in Urban areas
Contains urban migration
RE Potential & Achievements
Sector
Potential
( In MW)
Capacity
As on 30 Sept 2009
Wind
45195
10464
Small Hydro
15000
2461
5000
1155
16881
773
2700
59
84,776
14,912
Cogeneration
Biomass
WTE
Total:
Solar PV
4^
(^) Excluding decentralized systems
Policies for Renewable Power
•
The Electricity Act 2003, mandates to:
• Create competition, protect consumers’ interest & power for all.
• Facilitate private sector investments
• Permit stand-alone systems – rural areas
• Provide open access
• Determination of preferential tariff
• Specify minimum percentages for purchase of renewable power.
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17 States have announced RE Policy
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Future Policy Direction
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Introduction of Generation Based Incentives.
Introduction of Penal provisions for not meeting RPOs.
Introduction of Tradable Renewable Energy Certificates.
Indian Renewable Energy Development Agency Limited
At a Glance
Evolution of IREDA
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
Mission
Be a pioneering, participant friendly and competitive
institution for financing and promoting self-sustaining
investment in energy generation from renewable sources,
energy efficiency and environment technologies for
sustainable development.
Areas of Operation
Sectors being financed:
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Wind
Small & Medium Hydro
Biomass Power & Cogeneration
Solar
Waste to Energy
Energy Efficiency & Conservation
Bio Fuels/ Alternate Fuels
Project Financing Schemes
Equipment Financing Schemes
Financing Through Intermediaries
Highlights
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Dedicated FI for RE Financing – Unique in the World
Specialized knowledge of RE / EE sector
Recognized internationally – High Brand Equity
Multilaterals/ Bilaterals prefer working with IREDA
Perceived as a leader in the sector
Profit earning & dividend paying
Rated Excellent for FY 2007-08
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Expected Rating Excellent for FY 2008-09
NBFC as per RBI Classification
ISO 9001:2000 Certified Company
Successes
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Developed RE through innovative financing.
Encouraged entry of private sector in RE.
Catalyzed market development leading
commercialization of RE
Helped in creating capabilities in :
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manufacturing
design & engineering
O&M
Assisted in framing of conducive RE policies
Highest share in RE Financing.
to
Cumulative Performance
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No. of Projects Sanctioned
Total Loan Sanctions
: 1892 Projects
: 2290 Million US$
Loan Disbursements
Sanctioned Power Capacity
Conventional Fuel Replacement
: 1270 Million US$
: 3616 MW
:1.3 mln MTCR/Yr
As on 31/03/2009
Resource Base
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Authorized Share Capital
Paid-up Capital
Net-worth
Domestic Borrowings
International Borrowings
: 221 Million US$
: 115 Million US$
: 193 Million US$
: 172 Million US$
: 205 Million US$
International Partners
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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
NORDIC Investment Bank
EXIM Bank, USA
: 18 Million Dutch Guilders
:$ 145 Million
:$ 15 Million
:$ 100 Million
:€ 61.35 Million
:$ 110 Million
:€ 50 Million
: $ 50 Million
: $ 50 Million
Lines of Credit in Pipeline
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KfW, Germany(3rd LoC)
AFD (France)
JICA (Japan)
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ADB
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:€ 19.9 Million
:€ 100 Million
:$ 100 Million
:$ 200 Million
National Solar Mission
(A quick preview)
Aims & Objectives
Aim:
Setting up an enabling
environment for solar technology
penetration in the country both at
centralized and decentralized levels
Objective:
Establish India as
global leader in solar energy,
creating policy conditions for
diffusion across the country
quickly as possible
a
by
its
as
Expectation
20,000 MW Solar Power
by
2020
Expected Policy Enablers (I)
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Utility scale power generation
(including Roof Top)
-Solar specific RPO (3% by 2022)
-Generation Based Incentives (GBI) to
reduce impact on tariff
Off-Grid power generation
-Capital subsidy for new applications
-Soft re-finance facility via IREDA
Low-cost quality Manufacturing
-Capital Subsidy for solar thermal
exists for Solar PV)
-Soft loans from IREDA
(already
Expected Policy Enablers (II)
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Promoting Solar Collectors (Water Heaters)
-Provisions under building bylaws
-Certification/ rating
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Solar Thermal Demonstration Projects
-Storage & Hybrid Mode
R&D
 Funding under PPP mode for:
-Efficiency improvements
-Cost reduction
-Energy Storage
Expected Policy Enablers (III)
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Fiscal:
- Customs and Excise Duty exemptions on
specified materials, equipment and systems
Opportunities
Opportunity: Solar Manufacturing
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Low base – 700 MW
Duty exemptions
100% FDI permitted
Cheap skilled workforce
20 GW market by 2022 (NSM)
Single window clearance
SIPS scheme for Fab units
Dedicated export zones (SEZ)
Opportunity: Solar Generation
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Mission mode approach
Attractive tariff (GBI)
Tax breaks
Low-cost finance
Long term PPA
Revenue – CDM & REC
100% FDI permitted
Best Practices from Wind
Investment Opportunity
Sector
Capacity
Addition*
Total
Cost/MW
Investments
Unit
MW
MW
MW
US $Mn
US $Bn
10,000
20,000
30,000
1.00
20.00
Solar PV
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15,000
15,000
3.50
52.50
Solar Th
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5,000
5,000
2.50
12.50
SHP
2,000
8,000
10,000
1.00
8.00
Biomass
2,000
7,000
9,000
1.00
7.00
Wind
TOTAL
(*) Estimated Figures
100.00
70 GW
US$100 Bn
Opportunity
India: Investment Opportunities
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Strong and clear policy framework providing enabling
environment.
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Structures in place to facilitate power trading, open access
etc.
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Power sector growth (5%) yet to catch up with GDP growth
rate (8%) – creating market demand.
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Large supply-demand gap in power sector.
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Very large potential of RE yet to be tapped.
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Mature financial markets
Advantage IREDA
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IREDA has emerged as a dominant player and continues to maintain its
position in serving RE & EE sectors.
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Self-sustaining institution, earning profits since inception.
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Has earned the trust and confidence of prestigious institutions like
World Bank, GEF, ADB, KfW etc.
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Ability to finance wide range of projects in RE & EE sectors.
IREDA welcomes you to join hands to create a better
tomorrow.
Thank you !
Indian Renewable Energy Development Agency Limited
3rd Floor, August Kranti Bhawan, Bhikaiji cama Place, New Delhi – 110 066, India
Email : [email protected]
www.ireda.in
National Solar Mission (NSM)
Applications
Units
2013
2017
2022
Grid
MW
1000
4000
20000
Off-Grid
MW
200
1000
2000
Thermal
Mn m2
7
15
20
Manufacturing
MW/yr
1500
5000
10000
RE Investments
Parameters
2007
2008
Growth
Total Investments
USD 3.3 Bn
USD 3.7 Bn
12%
VC & PE
USD 133 Mn
USD 493 Mn
280%
Foreign Exchanges
USD 756 Mn
--
--
Domestic Bourses
USD 646 Mn
USD 74 Mn
(85%)
Merger &Acquisitions
USD 585 Mn
USD 585 Mn
--
Wind
USD 2.2 Bn
USD 2.6 Bn
17%
Solar
USD 18 Mn
USD 347 Mn
1800%
SHP
USD 135 Mn
USD 543 Mn
300%
Bio-Fuel
USD 251 Mn
USD 49 Mn
(80%)
Asset Finance
USD 2.5 Bn
USD 3.2 Bn
25%
Solar Providence
Sun: Worshipped since Ages
Solar Advantage for India
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300 sunny days in a year
5-7 kWh/m2
Large scale Solar Thermal Plants
SPV providing lifeline energy
SPV for Railways, Telecom towers
DSM in urban areas
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SPV Roof-tops/ Battery charging
Solar Heating & Cooling systems
India: Ideal Investment Destination
FDI of
US$ 35Bn
2008-09
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
Source: IBM-PLI – Global Investment Locations Database, GILD