Transcript Slide 1

Energy Needs of India and
Opportunities for Solar, Alternate
Energy and ICT Sector
Presentation at CMAI CES Press Conference
By
NK Goyal, President CMAI
Chairman Emeritus, TEMA
Vice Chairman ITU APT
Chairman, ITPS Dubai
Member, Governing Board Telecom Equipment and Services Export
Promotion Council
(Gov. of India)
Las Vegas, January 9th 2013
www.cmai.asia, www.cmaievents.com
CES, 2009 being inaugurated and ribbon cutting at Las Vegas on 8th January, 2009 by NK Goyal with Sir
Howard Stringer, Chairman & CEO of Sony Corporation, Mr. Tom Hanks, the American movie star,
Mr.Gary Yacoubian, Chairman CEA & President of Myer-Emco AudioVideo, Mr. Gary Saprio, Vice
President of CEA, Ms. Qu., Presixdent, CECC China, Mr. Patrick Lavelle, President and CEO of Audiovox,
Mr. Peter Lesser, President and CEO of X-10 (USA) Inc, Mr. Loyd Ivey, Chairman and CEO of MiTek
Electronics and Communications, Mr. Jay McLellan, President and CEO of Home Automation, Inc. (HAI),
Mr. Mike Mohr, President of Celluphone, Mr.Grant Russell, President of Kleen Concepts
Advantage India







GDP Crossed USD 1 Trillion Mark since 2007-08
4th largest Economy in world on Purchasing Power Parity basis
Growing well in excess of 8% per annum for last three years.
Current GDP Growth: 8.5%
USD 380 Bn. Projected infrastructure investment in next 5 years
Large Domestic Market:

560 Mn. consumers in 20-49 age group expected by 2015

5th largest consumer market by 2025

Increased disposable incomes & changing lifestyles
Human capital:

Third largest pool of scientific & technical manpower
(2,00,000 Engineering Gradates Annually)

Over 500 universities (20,000 colleges)

Large English speaking population
India Story- Leaders Speak
Energy Needs of World







Energy and environment are essential for sustainable development
From 1980 to 2008 total world primary energy demand grew by 66% and
by 2030 projected to grow by 40%, average 1.5% per annum. Demand in
Asia, projected to average 4.7% per year
Over 70% of the increased energy demand is from Developing Countries,
led by China and India.
Maximum energy use grew in China and India as 146% and 91 % from
1990 to 2008: the Africa by 70%, Latin America by 66%, the USA by 20%
and world overall grew by 39%
UN predicting world population growth from 6.6 billion in 2007 to 8.2
billion by 2030, demand for energy to increase substantially
About 20% of world’s energy is generated from coal and about 60% from
oil and natural gas
Because of extensive use of fossil fuel such as coal, oil and natural gas,
the harmful emissions of Green House Gasses such as Carbon Dioxide
increases the GHG level and causes the Greenhouse Effect and eventually
global warming
CMAI Dedicated
Initiatives for Energy Needs




CMAI has set up a Energy Fund of 500 Mn. USD with
help from angel ventures, investors to promote energy
development projects in India
This fund can be used for technology development,
Research and Development, Innovations in energy
sector and seed capital
CMAI is looking for partnerships, joint ventures,
technology providers to empower renewable sector.
CMAI will provide one window service to investors and
entrepreneurs in this behalf for project identification,
studies, evaluation, financing follow up, Government
approvals and marketing strategies,
India & CMAI looking
for Technologies and Projects





Technology has driven mankind in its progress since ages in its
growth path
With the depleting fossil fuels and skyrocketing prices of
available natural resources, technologists worldwide have
turned to innovative ideas to uninterruptedly power this growth
CMAI is looking for new innovative technologies for developing
alternative energy, solar, wind, biomass, hydrogen cells,
geothermal heat etc.
Also looking for energy efficient technologies. The current 15%
capacity utilization factor for a solar unit needs improvement.
This equates to around 6.2 MW of solar needed to cater to a 1
MW load
CMAI also looking for investors And manufacturing
India…the
1.2 Bn. People Country




India is a Country with more than 1.2 Bn. people
accounting for more than 17% of world’s population.
Seventh largest Country in the world with total land
area of 3,287,263 sq kilometers. It has a land frontier
of 15,200 km and coastline of 7,517 km
India has 28 States and 7 Union Territories.
It faces a formidable challenge in providing
adequate energy supplies to users at a reasonable
cost
India Energy Gaps





India needs an investment of at least $135 Bn. to provide universal
access of electricity to its population(International Energy Agency)
India is world's fourth largest energy consumer after United States,
China and Russia. Perfect storm is brewing in the energy space as
India will continue to experience insatiable energy demand growth
over the next several years.
The total electricity demand of the Country during the year is
1,40,090 MW of which 1,25,234 MW is expected to be met, leaving
a gap of 14,856 MW, (Central Electricity Authority)
The anticipated peak shortage in the Country would be 10.6 per
cent
From current installed base of 170 GW, India will build up to 316
GW by 2020. In the same time-frame, the demand gap will grow
from 19GW to 103GW, an increase of 5x!
Cont….India Energy Gaps



Per capita average annual domestic electricity consumption in
India in 2009 was 96 kWh in rural areas and 288 kWh in urban
areas, in contrast to the worldwide per capita annual average of
2600 kWh and 6200 kWh in the European Union
It is expected that with growth rate of 9% TPES (Total Primary
Energy Supply) requirement for India in 2021- 22 will be around
1192 Mtoe ( Million Tonn Oil Equivalent) which will further
increase to around 2043 Mtoe by the year 2031-32.
India will add between 600 GW to 1200 GW of additional new
power generation capacity before 2050. This added new
capacity is equivalent to the 740 GW of total power generation
capacity of European Union (EU-27) in 2005 (International
Energy Agency)
Electricity Sector in India





An installed capacity of 210.936 GW (Nov 2012), the world's
fifth largest. Captive power plants generate an additional 31.5
GW.
Non Renewable Power Plants constitute 88.55% of the installed
capacity and 11.45% of Renewable Capacity.
India generated 855 BU (855 000 MU i.e. 855 TWh) electricity
during 2011-12 fiscal.
Coal-fired plants account for 56% of India's installed electricity
capacity, compared to South Africa's 92%; China's 77%; and
Australia's 76%. After coal, renewal hydropower accounts for
19%, renewable energy for 12% and natural gas for about 9%.
Over 300 Mn. Indian citizens had no access to electricity. Over
one third of India's rural population lacked electricity, as did 6%
of the urban population( December, 2011)
India’s Energy from Coal



India ranks third amongst the coal producing Countries
in the world. Still India faces coal shortage of 23.96 MT
or so, which is met through imports mainly by steel,
power and cement sectors
Coal reserves (84 Bn. tones) may last for about 200
years but cash content & environmental reasons are the
major concerns. The exploitable coal concern may not
last for more than 100 years
Despite its low per capita CO 2 emission of less than 1
ton, India contributed over 4% of world total CO 2
emission in 2000
Energy Gaps for Petroleum




India lacks in petroleum resources which needs
precious foreign reserve.
India hardly has around 0.4% of the world’s proven
reserves of crude oil.
The known reserves of oil and natural gas may last
hardly for 18 and 26 years respectively at the current
reserves to production ratio (2004).
In this scenario, all types of energy are welcome
conventional, nuclear, and renewable.
Alternative Energy Paths




The sunlight which reaches the earth’s surface can provide
7,900 times more energy than we currently use. Each square
meter of land is exposed to enough sunlight to produce 1,700
kWh of power every year.
Renewable Energy comes from natural resources such as
Sunlight, Wind, Ocean, Rain, Tides, and Geothermal Heat, hydro
power, hydrogen derived from renewable resources . These
are naturally replenished
As of 2010, about 16% of global final energy consumption
comes from renewable, with 10% coming from traditional
biomass
New renewable (small hydro, modern biomass, wind, solar,
geothermal, and biofuels) accounted for another 2.8% and are
growing very rapidly
India Largest
Potential for Alternate Energy




India has one of the highest potentials for the effective use of
renewable energy
India is the world’s fifth largest producer of wind power after
Denmark, Germany, Spain, and the USA
India is world's most active players in renewable energy
utilization especially wind energy. As on December, 2011 India
had an installed capacity of about 22.4 GW of renewal
technologies-based electricity, exceeding the total installed
electricity capacity in Austria by all technologies.
In spite of having low greenhouse gas emissions per capita,
India has already become the 3th largest emitter in the world,
according to the International Energy Association. That means
immense international pressure to respond and develop Green
Technologies
India’s Hunt for
Alternate Energy




India strategically located in South Asia, which peninsula is a
natural paradise ranging from Himalayas from North to the Seas
of South
India has many perineal rivers from North to South, their
energy is immense and it is non exhaustible
There is a significant potential in India for generation of power
from renewable energy sources- small hydro, biomass, and solar
energy
Ample opportunities for Alternate energy, Solar energy, Bio
Mass energy and Innovative Smart Grid applications
Indian Telecom
Sector - the show stealer




Indian Telecom requires 14 Bn. units of energy and it ends
up consuming around 2 Bn. liters of diesel. Energy
requirement projected to reach 26 billion units by 2012
Because of limited & uncertain grid power, Telecom Tower
Companies are meeting 60% of their needs from diesel
and only 40% from grid
TRAI, Indian Telecom Regulator proposed 50 per cent of
all towers in the rural areas be powered by hybrid
renewable sources by the year 2015. Total towers
estimated 4,00,000.
Indian Tower Infrastructure Industry Carbon Footprint now
stands at 5.3 Mn. Tones exclusively from the burning of
Diesel.
India - the resurgence


National Action Plan on Climate Change announced
on 30th June 2008 outlines Indian strategy to enable
the Country to adapt climate change and enhance
the ecological sustainability of India’s development
path.
It provides for:



Deployment of appropriate technologies for extensive and
accelerated adaptation, and mitigation of green house gases
Innovative market, regulatory and voluntary mechanisms to
promote Sustainable Development
National Solar Mission, National Mission for a Green India
India Incentivizes
Alternate Energy



The Ministry of New and Renewable Energy [MNRE]
currently provides capital subsidy of 30 per cent at
INR 81 per W and soft loans at 5 % interest across
the Country.
Additionally, a capital subsidy of 90 % is provided for
installation of off-grid solar systems for special
category states of North Eastern India, Sikkim, J&K,
Himachal Pradesh and Uttarakhand
Separate provision for innovative applications of solar
systems whereby the pilot and demonstration
projects can avail a Central Finance Assistance up to
100 per cent.
Cont.. India
Incentivizes Alternate Energy


Government Committed to support the Solar Energy
scale-up while also reducing solar costs. Over 1,600
MW of Power Purchase Agreements(PPAs) have
already been signed
Renewable Purchase Obligation (RPO) is being
implemented across the Country. Under this
Distribution companies and captive consumers will
have to source 5% to 15% over ten years of their
energy from renewable sources. Within this, solarspecific RPO of 0.25%, slated to grow to 3% over the
same time frame.
India Solar Energy Potential






Globally investment in clean technology in 2011 was USD 260 Bn.
India’s investment was $10.3 Bn.
India gets 300 sunny days a year that can help generate about 5
trillion MW of energy
Solar energy potential in India is estimated about 70GW by 2022
with Over $42 Bn. Investment.
Ministry of New and Renewable Energy (MNRE) target to add 20
GW grid-tied Solar Power by 2022 and also addition of 2000 MW
decentralized solar systems [off-grid] and an additional aspiration
target of 2000 MW
India’s total solar installations is expected to grow from 54 MW in
2010 to more than 9,000 MW in 2016
Installed Solar Photovoltaic (PV) technology capacity 300
MW(2011 end). Increased by 170% to 800 MW by May 2012
clocking a growth rate of 170 per cent
Government
Procurement of Electronics
•
Multi-Billion dollar investment plans in mega programs offer tremendous
opportunities for electronics manufacturing:
- Roll out of Broadband to over 600,000 villages – National Optical Fibre
Network (NOFN) Plan approved
- National Knowledge Network with 100GB connectivity for over 20,000
colleges and research institutions
- National eGovernance Program spanning Central Ministries and all State
Governments
- National Mission to provide Computers to over 100,000 schools
- Digitization of Television Broadcast Network by 2015 - significant opportunity
for Set Top Box consumption and manufacturing
- Indian Unique Identification Project (UID) offers tremendous opportunities for
technology and products (Biometrics, ID Cards, etc.).
- Roll out of 3G, Wimax and 4G
Favorable Policy Framework
•
A Triad of Policies to drive a National Agenda for ICTE
- National Policy on Electronics
- National Policy on Information Technology
- National Telecom Policy
•
Vision
To create a globally competitive electronics design and manufacturing (ESDM)
industry to meet the Country's needs and serve the international market.
•
Key Objectives
•
•
Turnover in ESDM sector of USD 400 Bn. by 2020 involving:
- Investment of USD 100 Bn.
- Employment to 28 Mn. people at various levels
Achieve global leadership in VLSI, chip design and other frontier technical areas
and achieve turnover of USD 55 Bn. by 2020.
Increase export in ESDM sector from USD 5.5 Bn. to USD 80 Bn. by 2020
India Telecom Opportunities
•
Second largest telecom penetration, world’s highest monthly additions
•
980 Mn. Subscribers: . Wireless: 950 Mn.
•
Indian Telecom sector to witness huge investments to the tune of USD110 Bn.
during 2012-2017
•
Telecom Subscribers to cross 1.5 Bn. by 2015 and 5 Bn. by 2020.
•
About 25 per cent (Approx. 300 Mn.) would be 3G/4G subscribers, requiring
scaling up the infrastructure
•
About USD 70 Bn. estimated investment in rolling out green field 2G, 3G/4G
and WiMax networks, while USD 25 Bn. required to set up an extra 200,000 odd telecom towers across the Country
•
The total investment in the pan-India Broadband rollout expected to be
USD 20 Bn. while another USD 20 Bn. will be invested in augmenting the
transmission network
National Optical Fiber Network
& Broadband Eco-system
• Project approved on 25.10.2011 to connect 2,50,000 Gram Panchayats (GPs)
through OFC
• Project to be implemented by NOFN-SPV Bharat Broadband Network Ltd
• Envisaged as a Centre-State joint effort.
• Govt. of India to fund the project through the Universal Service Obligation Fund
(USOF) Rs. 20,000 Cr.($4Bn.)
• State Govts. are expected to contribute by way of not levying any RoW charges
(including reinstatement charges)
• At least 100Mbps is available at each GP
• E-health, e-education, e-governance & e-commerce applications & Video
conferencing facilities can be provided
• NOFN Project implementation time - 24 months (by 31.10.2013)
About CMAI







CMAI prime Integrated Association of India representing all
verticals of ICE, telecom sector of India in India having more
than 48,500 members and 54 MOUs with International
organizations with branch offices in Japan, Korea, Singapore,
Taiwan, China
It offers one window service for information dissemination,
guidance on setting up businesses in India
It connects to Industries, Government, Trade and Business
It is involved in policy formulations with Government and other
stake holders for Technology Innovations, Indigenous
manufacturing
It is developing scientific knowledge and practical means for
protecting human ecology and environment from the harmful
effects of environmental hazards like e waste, radiation etc.
It assists manufacturers to maximize competitiveness in the
domestic and international markets.
It also offers consultancy services on turn key basis through its
member companies
About CMAI
With CMAI membership, you gain access, authority, and
intelligence designed to help you to:







Protect interests when standards and policies are being
formulated
Engage peers regularly about market challenges or
business opportunities
Access timely news, information, and market intelligence
Expand business to overseas markets efficiently and
effectively
Gain a competitive advantage through convergence
Take the Lead on green initiatives in the ICTE Industry
Participate in Indian and global Exhibitions, Seminars,
Workshops
Thanks get Connected [email protected]
Ph No. - +91 98111 29879
www.cmai.asia