RENEWABLE ENERGY

GLOBAL SUMMARY & IMPLICATIONS FOR INDIA

AMIT THAKUR | MAYANK JAIN | SANTHANAKRISHNAN O | NAGARAJ SOGALE | ARASU VENKATESH

RENEWABLE
ENERGY
GLOBAL MARKET & INDUSTRY OVERVIEW

RENEWABLE ENERGY

Solar Energy

Wind Energy

Hydro-electric Power

Bioenergy (Biomass)

Geothermal Energy

Ocean Energy

GLOBAL RE INSTALLED
CAPACITY STATUS, 2008 2012

Solar PV, 60% ann.

Concentrating Solar Thermal Power, 40% ann.

Wind Power, 25% ann.

Hydropower , 3 4% ann.

Geothermal Power, 3 4% ann.

Biopower, 8% ann.

CONTINUED RENEWABLE
ENERGY GROWTH

Avg. Ann. Growth Rates of REC & Biofuel Production, End-2007 2012

GLOBAL RENEWABLE ENERGY

SHARE 2011

Estimated Renewable Energy Share of Global Final Energy Consumption, 2011

GLOBAL RENEWABLE ENERGY

SHARE 2012

Estimated Renewable Energy Share of Global Final Energy Consumption, 2012

GLOBAL RENEWABLE ENERGY

SHARE for electricity 2013

Estimated Renewable Energy Share of Global Electricity Production,End-2013

TREND FROM 2008 2012

Rise in demand

International Economic Crisis

Trade Disputes

Policy Uncertainty

Declining Support

Environmental Impact

2008 2012, Increase in Installed RE Capacity

2011 Final Energy Consumption, 19%

Renewable Energy A Vital Part of the Global Energy Mix

TREND IN 2012

Price reductions due to Economies of Scale

Solar PV

Wind Power

Relative Global Market Growth Slowdown, 2012

Uncertain Policy Environments

Declining Policy Support Europe / China / India

Challenges for Equipment Manufacturers

Falling Prices

Renewables more affordable for broader range of consumers

Asia / Latin America / Middle East / Africa

WORLDWIDE RE POWER
CAPACITY & PRODUCTION, 2012

Total Worldwide RE Power Capacity, 1470 GW

Hydropower, 990 GW

Other Renewables, 480 GW

Wind Power, 39%

Hydropower, 26%

Solar Power, 26% (100 GW)

Estimated RE Share of Global Electricity

Production, End-2012

RE POWER SECTOR SUMMARY

2013

RE Power Capacities in the World, EU-28, BRICS & Top 6, 2013

Renewable Electric Power Global Capacity, Top Regions And Countries, 2012

RENEWABLE
ENERGY
AN INDIAN STUDY
CURRENT STATUS & SCENARIO

INSTALLED ENERGY CAPACITY

2007 2013

Historical Installed Energy Capacity, 2007 2013

OVERALL ENERGY DEFICIT

2012-13

* Source: CEA

PEAK ENERGY DEFICIT

2012-13

* Source: CEA

ENERGY DEFICIT
CONCLUSION

Country in Overall Energy Deficit

North-East / Western / Southern Regions face regional

imbalances

Targeted Capacity Addition (2012-2017): 75,785 MW

Planned Coal Based Capacity: 62,695 MW

Renewable Energy is poised to fill the gap

Solar Energy has highest growth potential

Equivalent Energy Potential: 6000 Mill GWh/year

**Source: Report of the Working Group on Power for Twelfth Plan (2012-17); Ministry of Power; January 2012

POLICIES INFLUENCING GROWTH

OF RENEWABLE ENERGY

Financial Incentives

Capital subsidy, Grant or

Rebate

Tax Incentives

Energy Production Payment

Public Financing

Public Investment

Loans

Public Competitive Bidding

Regulatory Policies

Feed-In Tariff

Utility Quota Obligation

Net Metering

Obligation & Mandate

Tradable RE Certificate

IMPETUS FOR SOLAR ENERGY

IN INDIA

Jawaharlal Nehru National Solar Mission (JNNSM)

Feed-in-Tariff (FIT)

Accelerated Depreciation (AD)

Generation Based Incentives (GBI)

Renewable Purchase Obligations (RPO)

Renewable Energy Certificates (REC)

Solar City Concept

INITIATIVES FOR SOLAR

CAPACITY ADDITION
CAPACITY ADDITION

NVVN
Bidding
550 MW

Migration
Scheme
50.5 MW

RPSSGP

92 MW

State
Policies

Other
Schemes

1322.5
MW

126 MW

National Solar Mission

Total Installed Capacity 2632 MW

REC
Scheme
491 MW

SOLAR CAPACITY
REQUIREMENT

Solar Capacity requirements by 2022 were determined

As per National Tariff Policy

Solar RPO Target of 3% by 2022

Average CUF for Solar Power Tech to be 19%

Key Inference

To achieve such capacity, states have come with RPOs, with yearly targets,
based on model regulation by FOR

STATE INITIATIVES, 2011 2022

Every state needs to formulate a Renewable Energy Policy

in line with National Solar Mission

STATE INITIATIVES TO PROMOTE

SOLAR POWER

STATE INITIATIVES FOR SOLAR

ROOFTOPS

STATEWISE CAPACITY ADDITION

2014

Major Contributors

Gujarat

Madhya Pradesh

Maharashtra

Rajasthan

STATE RPO COMPLIANCE

STATUS

UERC imposed penalty of Rs.20,000 for non-compliance

Directed compliance by March-2014, else face further penalty

CHALLENGES

Political challenges in enforcement of RPO compliance

Regulatory and Institutional roadblocks in Project allocation

Lack of clarity on REC mechanism beyond 2017

No incentives to produce beyond RPO targets

Non-eligibility of Non-Grid generators

No market support for unsold RECs

Allowances of Bi-lateral Transactions of RECs

THANK YOU