Renewable Energy Industry

RENEWABLE ENERGY INDUSTRY 2019
1. Introduction:-
What is “Renewable Energy” and where does it come
from? We all think we know and some of us may even
be able to name some of the most prominent sources of
renewable energy, but do we really understand the
purpose of each type (such as how and where it is
used), how much energy it can generate or its wider
economic or benefits? Here, we attempt to cut through
the fog and give a clear and decisive summary of the
information presently available on renewable energy environmentalscience.org
and associated technologies. Put simply, renewable

energies are those generated from sources that do not have a finite end, or those that can be
recycled, typically from natural sources - like solar power, wind power and water power. These
are the examples that we think about most when we hear the term “renewable energy” but they
are not the only sources.
We use energy every day of our lives - our electronic devices require electricity for power, our
streetlights need the same for lighting, our vehicles require gasoline and diesel. We fuel our
homes with domestic oil, propane or electricity from a national or local grid for lighting, heating
and for powering our devices. You're reading this project that is hosted on a server that needs
power, as does the computer with which you are viewing the site. The places we work use
computers, phone networks, security systems and servers, as do our shopping malls, parking
lots, sports stadiums, cars, airplanes and so on. All of these things require power from fuel.
The world is doing what it can to reduce carbon emissions and limit the global average
temperature change with a new agreement decided in 2015 at the Paris Climate Summit (or
COP21). To move forward, we also need to realize that there is only so much that can possibly
1 G.H. PATEL PG INSTITUTE OF BUSINESS MANAGEMENT

be done in limiting GHG output as the human population only increases and puts more
demands on our energy infrastructure . To further help the environment and secure the future
of the planet for our children and their children, we need to move to renewable sources for our
energy generation.
A History of Renewable Energy:-

It may or may not come as a surprise to learn that before the discovery of coal deposits around
the time of the Industrial Revolution, most of the energy we used for lighting and heating was
from renewable sources - with one or two exceptions. Then we discovered coal, which fueled
the industrial revolution in the western world, and later still learnt to tap oil in greater quantities
leading to an acceleration of technologies that would take us into the 20th century. Throughout
most of human history and pre-history, we burned what would today be known as “bio mass”:
plant material such as wood, grass, mosses and so on, to fuel our hearths and later,
homesteads. It became an important fuel source, hence why the hearth and the fireplace was
central to homes until relatively recently.
From one perspective, the discovery and utilization of fire is a history of civilization, and a
history of the use of renewable energy. Humanity continued in that fashion for many thousands
of years before the discovery of oils (though obviously in smaller quantities than later) in
antiquity and the mass drilling of oil during the industrial age. Other uses of renewable in
antiquity include animal power (using cattle to drive ploughs or turn millstones) and wind for
the sail that has driven trade for some 8,000 years of human history. The use of water sources,
such as creating dams to harness the power of the fluid motion of water, is not a new idea
either.
It was in the 1970s that we began to look back towards some of these ancient methods and
technologies to provide the power sources of tomorrow. Peak oil and peak coal was theorized
as far back as the 1870s. Remarkably, even during the Industrial Revolution, some thinkers
were theorizing on and developing concepts of solar technology to prepare for a post coal

world. The reason may have changed, but the thinking has not as many of the modern
developments are for a post oil world. We have known since early in the process of mass
mining of coal and oil, that there would be a peak and a time when these resources ran out.
Theories and investment in solar technology lasted until the outbreak of WWI. Even in 1912, a
paper in Scientific American hypothesized that soon, fossil fuels would run out leaving solar
power our only option.
The concept of peak oil in the 1950s began a new drive towards renewable. Solar, hydro and
others were seized upon by both environmentalists and industrialists. They were both equally
concerned about the exponential growth in human population, in oil consumption, and realized
that it is a finite resource and will run out regardless of the size of the supply today. A growing
environmental movement, the development of environmental sciences and a push against
pollution (such as the Clean Air Act in the US and equivalents in other countries most of which
passed in the 1960s-1970s) meant that more than ever before, renewable energy became not
just a scientific innovation for the future, but a necessity.
Since then, there have been successive debates about whether we have reached peak oil.
Many experts agree that it happened around 2008. New pockets are getting fewer and fewer
and smaller and smaller. Shockingly, demand has outstripped supply since 1986, spurring on
economists, scientific researchers and environmental campaigners to hasten its demise by
campaigning that what is in the ground to remain in the ground. Instability in oil-producing
countries has led to fluctuations, particularly since the 1990s, and that has brought another
issue to the world's attention - energy security.
Energy security has been a major concern to world leaders since the end of the 20th century,
but even more so since the beginning of the 21st century. The term refers to the link between
each country's national security, and the availability of that country to resources for energy
production and consumption. If a country loses, or finds it has restricted access, to oil and
other resources, instability is likely as energy is rationed. Energy security can be the result of
armed conflict or political instability in gas or oil-producing countries, or a buying country

having access restricted when a producing country deliberately cuts a supply.
Renewable Energy: The Figures
According to a report by the International Energy Agency, the increase of amount of electricity
produced from renewable sources increased from just over 13% in 2012 to 22% the following
year. They also predict that that figure should hit 26% by 2020. In terms of total generation,
renewable accounts for 19% of our present usage. More clearly needs to be done though for
the reasons stated below, but these figures are encouraging from the perspective of the use of
renewable on its own. Most long-term forecast models predict that use will triple between 2012
and 2040, with a greater amount should the planet hit 2⁰ of warming.
We can break these figures down even further and look at the divide between renewable
energy types. These are:
 9% from biomass
 2% as non-biomass heat energy
 8% from hydro electricity generation
 2% of electricity generated from geothermal, biomass, wind and solar power
1.2 Objective:-
1. To know the history and evolution of the Renewable Energy industry in India and
2. To study the various factors contributing to its growth.
3. To study the marketing strategies, distribution channels, technology used and future
plans of the industry.
4. To perform financial analysis of the industry.
5. To carry out the industry analysis using various techniques such as PESTEL Analysis,
SWOT Analysis and Porter’s Five Forces Model.

1.3 Scope:-
The study is limited to collection, analysis and presentation of macro analysis of Renewable
Energy industry. The scope of the study is limited to the analysis of functional aspects
(Finance, Marketing, HR, and Strategic Management) and the financial analysis is done for the
period of last 5 years.
1.4 Methodology:-
The methodology adopted was exploratory research using secondary data. The basic
knowledge about the workings of Renewable Energy industry was gathered through secondary
data available on internet and all related documents such as journals, magazines and
publications available in the institute library. The quantum of information available on the
subject matter is enormous and updated.
1.5 Limitation:-
There are certain limitations of the study. These are:
i. Data may not be completely reliable as they have been collected from secondary sources.
ii.Data for market share was not available as the market is dominated by foreign players.
1.6 Importance:-
 Fossil Fuels Are Limited
The first and main reason for why governments and businesses are keen to move to
renewable energies as soon as possible is that fossil fuels are a finite resource. We may or
may not have reached peak oil - the point at which demand outstrips supply -and by current
figures, many experts seem to agree we did so around 2008 with only external factors creating
fluctuations in demand making it difficult to predict precisely when it will run out. That is

another debate entirely that our politicians and economists have argued for decades, and will
continue to arguefor many years to come. Whichever way we look at it, fossil fuels will run out
eventually and it will take some 10,000,000 years to replenish what we have used in around
150 years.
As the human population increases, our rate of consumption of these fossil fuels also
increases. Geologists and others whose job it is to locate and access these pockets of crude
oil are finding it increasingly difficult to locate and extract new sources. Whether we have 1
year or 100 years left of oil, many argue that what is left should remain in the ground because
it is not sustainable - it will run out eventually and so we should prepare for a post-fossil fuel
world now.
 Carbon Emissions & Climate Change
The most immediate problem, particularly in light of the COP21 agreement of 2016, and the
changes we have seen to the climate in the last 150 years, is climate change and the carbon
emissions that are forcing it. In the last few years especially, no part of the world has been
untouched by freak weather conditions. Most continents have recorded record high
temperatures in summer, record lows in winter and increased frequency of typhoons and
hurricanes, record dry spells, drought and flooding. There is no doubt that these freak weather
conditions are affecting every country.
Most renewable energy sources, and the technology used to harness them, are low carbon
emission. In most cases, once installed they have minimal or no carbon output and can still
provide our energy needs. We can never go fully carbon neutral as it takes resources to make
a solar panel, build a dam and so on, but it is a critical and significant reduction of our carbon
output. What we do need to do, is to take the steps we can to reduce our carbon footprint for
international regulations, to help those in the developing world, and to protect ourselves
against the freak weather. We also know that the ice caps are melting and the sea levels are
rising which creates food shortages and national instability as well as being an expensive
situation for our insurance.

 Energy Security
Energy security is a relative newcomer to public perception when we consider the greater need
for renewable energy. The beginning of this decade has seen instability in the Middle East.
The Arab Spring swept across Algeria, Tunisia, Libya, Egypt and Syria leading to pro-
democracy demonstrations. There are ongoing problems in Syria with the rise and spread of
ISIS. Why have these political issues in other parts of the world encouraged the rest of the
world to think about its energy plan?
The Middle East is one of the biggest suppliers of oil to the world. South America also
produced oil, North America and South America supplies coal and the UK, Russia and other
European Atlantic powers mine for gas. New tension between Russia and the west, firstly over
Ukraine and secondly over Syria, has led to increased distrust between world powers. Being
dependent on other countries for our energy supply is problematic in itself, but when
international relations between supplier and supplied sour, increased wholesale prices
threatening to destabilize the economy is the least that could happen. If a supply is cut off,
then disaster could strike. For this reason alone, we need spare capacity and multiple avenues
of energy acquisition.
Energy security will become a much greater factor as fossil fuels begin to dwindle. More than
ever before, demands on energy supply often outstrip supply of conventional production
forcing prices up. It is expected that increased tension over acquisition and protection of
resources could lead to global conflict. Some are already arguing that the crisis in Syria is less
about campaign for democracy reform in a major Middle Eastern power, and more a result of
ongoing regional climate crisis. Former farmers who have fled to Europe and beyond have
cited drought as the major catalyst for the civil war in the country.
The price of oil has fluctuated greatly in the last 10-15 years - from an all-time high in 2012 to
2013 to record lows in 2015 to 2016. Oil prices have a knock on effect for the economy when
they are at the extreme and lead to protests. We must remember that oil is a commodity and
when prices are erratic, it affects jobs all over the world.

 Economic Stability
Related to some of the issues mentioned above, where renewable energy offers a constant
and sustained supply (such as hydroelectric, wave power, solar and biofuels), energy prices
are likely to remain stable and in turn, keep the economy stable. In many cases, energy
produced from renewable sources is already cheaper than that produced by non-renewable
means. Mentioned above, Idaho produces a large amount of energy from geothermal sources.
Another example is Texas where energy produced from wind power is noticeably cheaper for
the state's citizens.
 Environmental Damage
As fossil fuel supply gets harder to acquire, and prospectors search for new pockets of oil and
have to drill longer and deeper to acquire it, there has been conflict between environmental
groups and industry and between governments and both groups when local wildlife and
environmentally sensitive areas are threatened. Here in the US, public consciousness and the
need to protect our wildlife and natural landscapes means that many new developments are
protested with concerns of environmental damage. Ongoing protests against fracking and new
drilling in Europe and North America and recent examples. Though some renewable will have
an environmental impact, many do not and when built, have no further impact - unlike ongoing
drilling.
 Public Health
Oil, gas and coal drilling and mining have high levels of pollution that are pumped into local
environments and the wider atmosphere, so while protestors attempt to prevent the building of
pipelines or new prospecting in virgin areas and wilderness, it is as much about public health
as it is about conservation. We have known for decades about the knock on effect of industrial
processes for public health. Few renewable are entirely emission-free, but their output is much
lower than conventional fossil fuel acquisition and processing.

2. Growth and Evolution:-

It is not hidden anymore that India has a vast supply of renewable resources and it has one of
the largest programs in world for deploying renewable energy products and systems. India is
the only country in the world to have an exclusive ministry for renewable energy development,
the Ministry of New and Renewable Energy (MNRE) which has launched one of the world’s
largest and ambitious programs on renewable energy. This project gives a brief overview of
various renewable energy resources, their status in India, the socio-economic impact of
renewable energy resources (RES), challenges associated with it and the future of RES in
India.
2.1 Current Scenario of Renewable Energy in India:-
Over the years, renewable energy sector has emerged as a significant player in India
especially affecting the power generation capacity. This supports the government’s agenda of
sustainable development while becoming an integral part in meeting the nation’s energy
needs. For past two years, the Indian Government has taken several initiatives such as
introduction of the concept of solar parks, organizing RE-Invest 2015—a global investors’
meet, launching of a massive grid connected rooftop solar programme, earmarking of
Rs.38,000 crore (Euros 4 billion) for a Green Energy Corridor, eight-fold increase in clean
environment cess from Rs.50 per tonne to Rs.400 per tonne (Euro 0.62 to Euros 5 per tonne) ,
solar pump scheme with a target of installing 100,000 solar pumps and programme to train
50,000 people for solar installations under the Surya Mitra scheme, no inter-state transmission
charges and losses to be levied for solar and wind power, compulsory procurement of 100 per
cent power from waste to energy plants, and Renewable Generation Obligations on new
thermal and lignite plants, etc.
Advantages of India:
1. Robust Demand: With the growing Indian economy, the electricity consumption is

projected to reach 15,280 TWh by 2040.
2. Increasing Investments: With Indian government’s ambitious targets, the sector

has become quite attractive to foreign and Indian investors. It is expected to attract
investments upto USD 80 billion (Euros 70 billion) in next four years.
3. Competitive Advantage: Indian has sunlight available throughout the year and has
a large hydropower potential.
Renewable Energy Targets:
The Indian Government has increased the target of renewable energy capacity to 175 GW by
the year 2022 which includes 100 GW from solar, 60 GW from wind, 10 GW from bio-power
and 5 GW from small hydro-power.
Installed grid interactive renewable power capacity (excluding large hydropower) as of

31 March 2018 (RES MNRE)
Source Total Installed 2022 Target
Capacity (MW) (MW)
Wind Power 34,046 60,000
Solar Power 21,651 1,00,000
Biomass Power (Biomass & Gasification and 8,701 10,000

Bagasse Cogeneration)
Waste-to-Power 138
Small Hydro Power 4,486 5,000
TOTAL 69,022 1,75,000
2.2 Product Profile: Different Renewable Energy Sources (RES)

Renewable are by definition unlimited, but it is important to note that not all forms are
environmentally friendly. Here, we look at some of the most common types of renewable
energy and discuss their advantages and limitations.
2.2.1 Hydroelectricity:-
Using water's motion power to generate electricity is not a new concept; we have been doing
so for around one hundred years and most
countries have some form of water generated
electricity source. There are two basic forms of
using water for green energy needs.
Hydroelectricity is produced by processing
and controlling the flow of water through a
dam. This is one of the most encouraging
alamy.com
forms of renewable energy. Globally, it
generates some 3,500 terawatts of power and
has increased year on year since 2003. Hydroelectric power is likely to be one of our most
common forms of energy production in the next few years and in the post oil world.
Advantages of Hydroelectric Power
The building of dams at key strategic places as decided by environmental engineer’s means
that energy generation can be increased or decreased depending on the needs of the
community that uses it. During times of low use output may be reduced, and increased during
times of high output need; these changes can be made quickly compared to oil production
which has a delay due to the need to refine the raw product. The speed with which output of
hydroelectricity can be changed is a major advantage to our growing energy needs.
Hydroelectricity is one of the lowest cost forms of energy as it requires no fuel; this means no
mining, no processing, and no transportation cost. It was estimated in 2010 that the average

cost of a kilowatt-hour of energy produced by hydroelectricity was 3-5c.
It is one of the cleanest forms of energy. Though the construction process of building and
maintaining a dam will mean carbon emissions, this is the only output - still a significant
reduction over the burning of fossil fuels. The relative cheapness of construction and
maintenance, and the low cost of generation means it is used increasingly in both the
developed and the developing world.
Finally, dams do not exist purely for their energy generation; they have many uses today.
Flooding and drought are a major cause for concern with many countries having suffered both
in recent years, often one season after another. Dams regulate water supply during floods and
maintain water supplies during a drought. Building Aswan Dam may very well have prevented
drought in Egypt in the 1980s when countries around them (Sudan, Ethiopia) suffered horrific
drought.
Disadvantages of Hydroelectric Power
Hydroelectricity and dam building does not come without cost and it's important that
environmental engineers and decision makers keep this in mind when planning the siting of a
new facility. Building a dam destroys an area of landscape and changes the ecology
downstream; this cannot be avoided, even where there is an extant river that is being modified.
Dam building can and does destroy important cultural landscapes too. Using Aswan Dam as
an example again, the river valley flooded to create the high water table that would sit behind
the dam destroyed an important archaeological landscape. Although many relics were saved
and features recorded, and the international community came together to move Philae Temple
block by block, the cultural landscape around the original site was lost forever.
In tropical areas, higher levels of methane output have been recorded from and around the
reservoirs; this has been put down to the higher levels of anaerobic chemical processes. It's
important to note that methane output is much lower in more temperate areas.
Finally, the potential for failure of a dam is catastrophic. Should it burst, any settlement in the

valley below would be flooded, leading possibly to loss of human life, destroyed houses,
disrupted power supply to all the homes affected and possibly flooding of the winder landscape
beyond, more ecological damage, more loss of human life. Thankfully, burst dams are rare and
when they do occur, usually cause minimal disruption.
2.2.2 Tidal Power:-
Tidal power is not yet common but it has

been demonstrated that it is possible to
generate electricity at sea by reacting to the
ebb and flow of the oceans. This a common
form of power generation across the Atlantic, in
the eastern US states and Western Europe
(with the UK being one of the early
developers thanks to the high tidal ranges
around the Orkney Islands). Its take up has not
been wholesale elsewhere yet for a number iamrenew.com
of reasons. Tidal power generators come in

four general types.
 Stream generators use the water flow to power a turbine which then generates
electricity.
 Tidal barrage uses small dam like structures alongside natural features under water
that seize the potential energy as the water flows in and converts it to mechanical energy
as it flows out.
 Tidal lagoons are still in development, but they work in a similar fashion to the
barrage but are completely artificial.
 Dynamic tidal power is still theoretical and has not been tried, but requires the
building of dams that are tens of kilometers long to regulate water flow.

Advantages of Tidal Power
The first major advantage is that tidal power is more predictable than other well-known
renewable systems such as wind and solar power thanks to the natural relationship between
The Moon and the Earth. The pattern of the tides is predictable to a high degree of accuracy, a
system on which we have been reliant for thousands of years of human existence. We have
accurately measured these systems that people living in coastal areas where there is more
than a minor variation, know the high and low tide times. This has always helped plan a
number of maritime functions and now it is helping us begin to generate electricity.
The second advantage is that the volume of water on the planet is fairly constant and unlikely
to run out, even without a significant temperature rise way beyond the 2-3⁰ predicted by
climate scientists at present. Melting ice caps is not likely to affect these tidal ranges by a great
degree, as the Moon is the only influencing factor on the fluctuations.
The third and most important is the low input to high output production. The density of water
and its tidal motions means that we can, in theory, produce a lot of energy even from low wave
activity. Choppy seas and stormy weather is not required to generate massive amounts of
energy.
Disadvantages of Tidal Power
The technology has largely not been taken up due to high cost. It is mostly still in development
stage so some authorities are reluctant to invest in the technology while there are still cheaper
alternatives available.
As mentioned above, the technology is limited to those areas of the world with a wide variation
in its tidal range to warrant harnessing the power of the sea - this includes the eastern
seaboard of North America and Western Europe but few other places. The overwhelming
majority of coastal sites will not be suitable for this technology.
Underwater ecologies are just as delicate as land ecologies and any intrusion into the seabed

or disruption to the natural marine landscape is going to affect the wildlife and alter it forever;
what's worse is it seems that we don't know what (if any) long term effects are on the marine
ecology.
2.2.3 Solar:-
We can be pedantic and point out that the

sun is not renewable, that it has a finite end -
but the fact that it has some 4.5bn years of life
left in it is not a major or immediate cause for
worry. Solar power is arguably one of the
best-known renewable energy sources and
many argue that solar power should have
been more common much earlier than it smart-energy.com
was. Interest began in the 19 th century with

the same people who understand that coal would eventually run out. Heavy investment in
fossil fuels meant that it went undeveloped until the late 1970s when instability of oil supply
began again (1973 Embargo and 1979 Crisis). Also, growing environmental awareness and
the prominence of peak oil meant we once again need to look for cleaner energies. There are
two basic types of solar energy:
 Photovoltaic: These are the most common form and have always been, but the
new breed that have been in development since the year 2000-2005, and that which are
now increasingly common on top of our homes, use the same basic technology as that
used in the 1970s and 1980s. Each cell converts the light of the sun into electrical energy,
which can then be used to power electrical devices.
 Concentrated Solar Power (CSP): If you have ever seen a solar array using a large
number of curved panels, it is most likely this type of technology. They may look similar to
PV, but they work differently in that they draw in a concentrated beam of sunlight,
reflecting it through a system of mirrors. The resulting heat generated by the process
activates a turbine that produces electricity through a conventional generator. Where PV


produces energy from light, this produces energy from heat.
Advantages of Solar Power
The most obvious advantage is that it will last as long as the sun will last - which is billions of
years against the maximum 70-80 years that we believe is the remaining life span of our oil
supply, and against the several decades of gas and coal. It is a very flexible energy source and
not only can it generate electricity, but can be used to heat water directly, and is a source of
light.
The second is the cost saving of the system. Many people are concerned about the cost of the
initial outlay, but they are far cheaper today than they were in the 1980s and far more efficient,
representing long-term investment and saving. They are noise-free and work all the time too.
Plus, if you use your solar panels in line with your local or national grid, you can save a lot of
money using solar energy. In some cases, you may be able to feed that energy back to the
supply, effectively selling it, and making money in the process. Once installed, they are low
maintenance and with very little pollution compared to other forms of fuel.
As it will be an important form of our energy supply in years to come, it is constantly under
development. Investment in better technologies is likely to lead to more efficient systems in
future.
Disadvantages of Solar Power
There are three major disadvantages to solar. Firstly, their efficiency drops during cloudier
days, during the winter when there is less sunlight generally, and during storms. Though the
PV systems of today are far more efficient than they used to be, there is still a way to go. If you
live in warmer and sunnier climes (such as California, Texas, Arizona and so on) you are likely
to get more efficient use out of them than you would living in the northern states or places in
the world where there is less sunshine.
The second disadvantage is that you need to consider careful placement. The rotation of the

Earth doesn't need to be explained here beyond the understanding that the sun does not
remain in the same place all day. It rises in the east and sets in the west. Unless you have an
expensive system by which to rotate your panels, or panels on every slant of your roof to
capture sunlight at every stage of the day (and most don't because both systems would be
expensive) your PV paneling will be less efficient at certain times of the day.
The third is what to do with all that energy and power to get maximum efficient use of the
energy that the PV panels capture. You may purchase batteries to stop all that energy going to
waste, but these can be expensive even if it is energy efficient. What most people do though is
use energy generated from solar sources during the day and use grid power at night - for the
environmentally conscious person this could be counterproductive for what they are trying to
achieve.
2.2.4 Wind Power:-
There are few countries in the world that

do not use wind-generated energy.
Often subject to campaigns to have
them shut down or planning permission
refused, to many they are a blot on the
landscape that ruins a perfectly
attractive natural view. To others, they
are a great way of harnessing an
unlimited resource generated by the en,wikipedia.org
natural processes of the planet's

weather systems. We have captured the wind for thousands of years - it drove our ships until
relatively recently, and in many places still grinds our wheat into flour.
The same principle is behind the generation of electricity through the turbines of wind farms. At
sea or on land, these giant spinning windmills capture the power of the air around it. Some
countries have made a national industry of generating its power from wind. In 2015, Denmark

broke its own world record by producing over 40% of its national power from wind
energy. Wind power is far more popular in Europe than in North America, with nearly have of
the global capacity produced across various European countries. Many of these are at sea
where most of the wind power is produced.
Advantages of Wind Power
The advantages of wind power are well-documented. Firstly, wind is a constant as it is part of
the planet's natural weather cycles. There is nowhere on Earth untouched by wind, not at sea
or on land. There is greater levels of wind at sea as the topography does not act as wind
breaks as it does on land, this means greater potential to harness energy and most wind farms
are at sea. This is a potentially limitless source of energy if it can be properly harnessed.
Despite jokes about meteorologists always getting it wrong, the weather is predictable and
certainly within a day or two. This means that turbines can be altered for maximum efficiency
of use to generate as much energy as possible. Because it is efficient, it is also very low cost
compared to most others - including other forms of renewable energy, arguably the cheapest
form available. They can also be placed in rural areas on ranches, where they make minimal
impact on the land.
Disadvantages of Wind Power
The optimum siting of wind farms is often counterintuitive to the needs of the people that will
use the energy it generates. Wind sources are best out at sea where there are no cities, and
on large, expansive plains (here in the US on large, expansive, flat ranches) which are far from
the settlements that will need it. That means there needs to be great investment in an
infrastructure to transport the energy from the place of generation to the place of consumption
if we are to use wind power as a major power source.
Like solar power, wind energy generation is not constant and varies from season to season
and even day to day, even though periods of low and high wind can be easily predicted. This
means that warm, dry summers with very little wind means that other sources of energy

generation will be needed to make up any potential shortfall.
Energy from wind generation is also geographically limited. As mentioned above, the best
places are at sea and on vast plains. There are areas where they are completely unsuitable
such as in mountain valleys and in urban sites where natural and artificial structures will shield
any turbines from wind capture. On top of mountains may be a good place, but the wind must
be strong enough to warrant placement. Poor placement could be a hindrance and not an
advantage to power generation.
2.2.5 Geothermal:-
One of the most intriguing concepts of

renewable energy, and one being used in
the US today, is harnessing heat from under
the surface of the planet produced as a
result of geological processes such as
natural heat loss, volcanic activity, or from
perfectly normal and safe processes such as
radioactive decay. We have used the heat of britannica.com
the Earth for centuries; hot springs all over

the world have been places of spiritual significance and centers of settlement. Indeed, one of
the first examples of this form of energy is in the Roman city of Bath in England. Not only were
the hot springs a source of the famous public baths in the city, but they were used to warm
local houses and to provide a constant supply of hot, clean water to the city's population.
We have come a long way since then, and today there are many geothermal power processing
plants across the world providing clean energy to local areas. In the US, the most significant
states that use geothermal power are Idaho, Hawaii, Alaska and Nevada mostly as a result of
harnessing volcanic and tectonic processes.

Advantages of Geothermal Power
Geothermal energy is one of, if not the, cleanest form of energy production available. We are
feeding off the heat generated by the natural motions of the Earth as it spins on its axis. The
planet is a hotbed of geological activity that is constant and renewable. It only produces as
much greenhouse gas as it would produce anyway, so there is no increase in the carbon
footprint when harnessing this power source. Lower production cost also means lower
maintenance costs and lower end cost to the consumer. Multiple studies have shown that
geothermal energy is one of the cheapest forms presently available.
Many consider this a great answer to our growing energy needs. Though big power plants
supply towns and cities, it is possible for houses to install their own simple geothermal power
system that will only have minimal impact on the ground beneath the surface. These simple
units available for the home vary in terms of usefulness and efficiency, but it is possible for
every home in the US to have one, simply drawing off the heat from below ground.
Disadvantages of Geothermal Power
The major disadvantage of geothermal power is that for the most efficient use, they are
geographically limited. The best use is from areas close to tectonic plate boundaries and areas
of high volcanic activity. Where these are present, they can produce a limitless supply of
energy that will not deplete the more reliant we become on it, but in other areas it may not be
particularly intensive, nor profitable. It may not be the best source of energy in parts of the
world with little to no volcanic activity and in a temperate climate.
While the harnessing of such energy does not produce greenhouse gases in itself, we must
remember that a large volume of carbon, methane and other harmful gases do exist beneath
the surface. Locally, there is potential for major environmental disaster should these be
released as a result of feeding off the geothermal energy; globally, we are trying to reduce the
amount of GHG released into the atmosphere. Any increase would be unintentional, but
counterproductive to a cleaner, greener world nonetheless.

There is a heavy upfront cost that could mean initially, that energy produced as a result of this
process would be relatively expensive to the end consumer. Building large geothermal energy
harnessing complexes can be expensive and intense, and maintenance costs may be high.
That said, in the long run it will still be a cheaper alternative than dwindling fossil fuel sources.
2.2.6 Bio-fuel & Biomass:-
Bio-fuel is the production of the

types of fuel we use in our
vehicles (though normally and
typically diesel) from plants or
other organic matter rather than
from the fossil fuels extracted
from the ground. Bio-fuels are
produced in one of two ways:
 Directly processing a alternative-energy-news.info
raw plant material, such as

extracting its natural oils, and processing it into a type of fuel
 Extraction of residues or decomposing matter as a result of natural anaerobic

processes (such as broken down by bacteria or algae into an alcohol substance – bio-
ethanol)
Biomass is different from bio-fuel in that it is waste organic material such as wood and other
plant matter, and not a derivative byproduct that results from processing. Biomass is chopped
wood (logs and kindling), grasses, leaves, brush and scrub, and other raw organic material
that may burn and produce energy, including manure and animal dung. In the past, and indeed
in areas where there are few trees to burn as fuel (Arctic Circle) people may burn bone or as a
source of fuel.
Advantages of Bio-fuels and Biomass
Whether burning the organic material itself or resulting substances that are processed from the

breakdown of the raw organic material, as it is organic it is renewable. These are not a finite
resource so long as we continue to plant vegetation to replace that which we harvest.
Thankfully, there are now laws in many countries to ensure that deforestation does not happen
on the sort of scale we used to see - even though in some places it is still very much an
ongoing challenge to prevent further deforestation in environmentally sensitive areas (Brazil
and Borneo for example).
Flexibility of source is a considerable advantage for bio-fuels and biomass, especially when
producing liquid fuels such as ethanol. Different topographies are suitable for different types of
crop, which means that most countries should be able to produce bio-fuels - it is not limited to
one crop type. You can easily produce it in temperate areas of the US as you could in more
tropical or arid locations. Also, anything organic will burn and produce energy as it request
resource investment to grow - a food supply, water supply and sunshine to photosynthesize.
The other obvious advantage on a slightly related note, is localizing supply and not being
dependent on international trade for fuel. Bio-fuel or biomass that is produced in a shorter
radius will have a much lower carbon footprint for having eliminated the transportation process
of getting fuel from source to consumer, and of course increases energy security.
Disadvantages of Bio-fuels and Biomass
To many, bio-fuels are a stopgap at best until we can find something cleaner and greener than
ethanol. The energy output of bio-fuels and biomass is much lower than conventional fossil
fuels and much greater quantity is needed to produce the same energy output; this is
counterproductive to the lower carbon emissions of the fuel type. As a knock-on effect, more
areas of land will be required to produce bio-fuels and biomass, meaning that we will need
more land on a planet that is a finite size.
On a related note and one of the major contentions of the use of bio-fuel and biomass is how
we can justify turning over virgin land to agriculture to supply the world with fuel and energy
while half the world's (estimated) population still starves. Aside from the ethics, more pressure

on the land will mean less space to produce food and higher food prices, and more water use
turned over to keep our energy needs supplied. By volume of land, bio-fuels and biomass
production for the purpose of energy is simply not that efficient.
2.3 Renewable and the Economy:-

Any fundamental shift in technology is going to raise concerns about the economic impact of
said technology. Typically, we hear questions similar to the following:
 How will people employed in existing technology sector going to be affected, will it
cost jobs?
 Will this new technology require fewer jobs overall?
 How will we train the next generation to use / engineer this technology?
 What will be the economic impact on the local economy / the country / the world?
 How will the global market be affected by this disruptive technology?
 Is it risky for individuals, businesses and the country to invest in this disruptive
technology? What if it fails? (The “the old system works, why change it?” argument)
It's perfectly natural to fear the new technology as it displaces that which we have become
accustomed. However, these fears are often misplaced; if history has shown us anything, it is
that technology drives employment as new job opportunities open to investors, new
businesses start up and the world adapts to the new technology with enthusiasm and further
investment, not recession and job losses. Some technologies will become obsolete and result
in job losses, but overall the trend is an upward one.
Already here in the US, the green economy employs more people than ever before. There was
significant increase in the industry between 2006 and 2011 and again between 2011 and 2015
with more expected -particularly in wind and solar power. Between 2010 and 2011 alone, the
solar industry grew by 6.8%. Green technology is here to stay, and it is already providing jobs


all over the world, just as the fossil fuel industry does at present. As we become more and
more reliant on it, we can expect more jobs in line with human population growth, not just in
line with reducing our dependence on fossil fuel and increasing reliance on renewable.
The biggest economic advantage to localizing our energy supply is that most of the money
spent goes to those people producing the raw parts rather than to importing products at great
cost that provides fewer people with jobs and is not good for the economy or the environment.
This means supporting jobs locally and nationally. As the US is a world leader of technology to
supply renewable energy, we already have the benefit of exporting American industry - another
great economic benefit of the renewable industry.
Economic benefits are not just about job creation though; there is a second important aspect
and that is the cost of living. Time and time again, we have seen that energy from renewable is
cheaper to produce than that produced by conventional fossil fuels with solar leading the way
in getting cheaper and cheaper every year. A lower cost of living means more money in the
pocket for the average citizen, which means more money to put into other areas of the
economy - savings and expenditure. These prices are also likely to remain stable compared to
the fluctuating (and sometimes erratic) nature of fossil fuels. Since the economic downturn of
2008, oil gas and coal have all spiked and dropped. This is not good for any country's
economy, and certainly not for the global market.
2.4 Government initiatives:-

Some initiatives by the Government of India to boost the Indian renewable energy sector are
as follows:
1. A new Hydropower policy for 2018-28 has been drafted for the growth of hydro
projects in the country.
2. The Government of India has announced plans to implement a US$ 238 million
(Euros 210 million) National Mission on advanced ultra-supercritical technologies for
cleaner coal utilization.

3. The Ministry of New and Renewable Energy (MNRE) has decided to provide custom
and excise duty benefits to the solar rooftop sector, which in turn will lower the cost of
setting up as well as generate power, thus boosting growth.
4. Around 4.96 million household size biogas plants were installed in the country under
the National Biogas and Manure Management Programme (NBMMP) by 2016-17.
5. The Indian Railways is taking increased efforts through sustained energy efficient
measures and maximum use of clean fuel to cut down emission level by 33 per cent by
2030.
2.4.1 Government Initiative Objective:-
1. to contribute to the alleviation of climate change through reducing greenhouse gas
emissions;
2. to contribute to the regional target of 12% of electricity generation by 2012, and 40%
by 2025 from renewable energy sources;
3. to assist the diversification of energy supply and a more competitive energy market;
4. encourage economic growth and rural diversification associated with the

development of an indigenous renewable energy industry;
5. to ensure that the environmental, landscape, visual and amenity impacts associated
with renewable energy development are adequately addressed;
6. to ensure appropriate protection of the Region’s built and natural, and cultural
heritage features;
7. to promote knowledge of and greater acceptance by the public of prospective

renewable energy developments that are appropriately located;
8. to foster greater community involvement in renewable energy projects and

encourage use


of community benefits; and
9. promote greater application of the principles of Passive Solar Design in the design,
siting and layout of new development.
2.5 Future Prospects of Renewable Energy in India:-

With right investments in green technologies, we can say that India is well positioned to
achieve the ambitious renewable energy targets. The pursuit towards cleaner energy will play
a key role in supporting country’s transition to a full sustainable energy system. It is not a
hidden fact that India is the world’s fourth-largest carbon emitter with its total population of 1.3
billion people with power sector contributing majorly to the same. However, in the recent years,
India has made significant progress in field of renewable energy. Global climate change
concerns have pushed the Government to develop a detailed plan for clean and sustainable
power for all.
As per the research by University of Technology (LUT) in Finland, owning to an abundance of

renewable resources, there is a great potential for India to move into a fully renewable
electricity system by 2050. This is possible if we can employ sophisticated technologies.
Renewable energy’s development in India looks bright as around 293 global and domestic
companies have committed to generate 266 GW of solar, wind, mini hydel and biomass-based
power in India over the next decade. This would entail an investment of $310 billion - $350
billion (Euros 27 billion to Euros 30 billion). The International Finance Corporation, the
investment arm of the World Bank Group, is planning to invest about $6 billion (Euros 5 billion)
by 2022 in several sustainable and renewable energy programs in India. With the investment
potential of INR 15 trillion (Euros 187 billion) over the next four to five years in Indian power
sector indicates immense opportunities in power generation, distribution, transmission and
equipment. Further, renewable energy storage market in India is also expected to witness
robust growth, over the next decade, once the cost of storage declines, which is likely to
happen because of sheer volume growth through the electric vehicle route.

3. Demand Analysis:-
3.1 Demand Determination of the Industry:-
The Indian renewable energy is ranked 4th in wind power, 5th in solar power and 5th in
renewable power installed capacity as of 2018. Installed renewable power generation capacity
has increased at a fast pace over the past few years, posting a CAGR of 19.78 per cent
between FY14–18. Power generation from renewable energy sources in India reached 101.84
billion units in FY18 and 126.76 billion units during April 2018-March 2019. As of October
2018, India ranked 5th in installed renewable energy capacity. India ranked second among the
emerging economies to lead to transition to clean energy in 2018.
India added record 80.46 GW of renewable energy capacity as on June 2019 which includes
29.55 GW from Solar & 36.37 GW from Wind power. It is expected that India will overachieve
its Paris Agreement goals. The total solar installations at the end of June 2019 reached 31.5
GW.
As of July 30, 2019, the installed renewable energy capacity is 80.63 GW, of which solar and
wind comprises 30.07 GW and 36.68 GW respectively. Biomass and small hydro power
constitute 9.81GW and 4.6 GW, respectively. Overall, India added 8.62 GW of grid interactive
renewable energy capacity in FY19. The renewable energy sector’s capacity during the first
quarter of fiscal year 2019-20 is higher at 2,151 MW.
The Ministry of New and Renewable Energy, Government of India, has formulated an action
plan to achieve a total capacity of 60 GW from hydro power and 175 GW from other RES by
March, 2022, which includes 100 GW of Solar power, 60 GW from wind power, 10 GW from
biomass power and 5 GW from small hydro power. Government plans to establish renewable
energy capacity of 500 GW by 2030. This has been proving to be the major thrust for the
sector in India as the market players have enough incentives to move to clean source.
Government of India is aiming to achieve 225 GW of renewable energy capacity by 2022,

much ahead of its target of 175 GW as per the Paris Agreement. Under Union Budget 2019-
20, Rs 4,272.16 crore (US$ 611.26 million) has been allocated for grid-interactive renewable
energy schemes and projects. The Government of India allocated Rs 3,004.90 crore (US$
416.48 million) in the budget 2019-20 for development of solar power projects including both
grid-interactive and off-grid and decentralised categories. During January-March 2019, solar
sector received an investment of US$ 2.8 billion. As India looks to meet its energy demand on
its own, which is expected to reach 15,820 TWh by 2040, renewable energy is set to play an
important role. By 2030, renewable sources are expected to help meet 40 per cent of India’s
power needs. New investments in clean energy in the country reached US$ 11 billion in 2017.
In the first half of 2018, investments in clean energy in India reached US$ 7.4 billion. The non-
conventional energy sector received a total FDI equity inflow of US$ 7.83 billion in FY19.
As of 2019, India is building a solar power plant in Rajasthan, which will be world’s largest, with
a capacity of 2,255 MW. The international equity investment in the India’s clean energy sector
was US$ 283 million in 2016, US$ 532 million in 2017 and US$ 1.02 billion in 2018. The
renewable energy space in India has become very attractive from investors’ perspective and
has received FDI inflow of US$ 7.83 billion between April 2000 and March 2019.
3.2 Life Cycle Stage:-





greenmatch.co.uk

4. Marketing Strategy Analysis:-

4.1 Renewable Energy Market
The global renewable energy market was valued at $928.0 Billion in 2017, and is expected to
reach $1,512.3 Billion by 2025, registering a CAGR of 6.1% from 2018 to 2025. Renewable
energy technologies convert the energy from different natural sources such as sun, tides, wind
and others, into its usable forms such as electricity.
The global renewable energy market is anticipated to grow significantly during the forecast
period owing to increased emissions of greenhouse gases (GHGs), particularly CO2 due to
utilization of fossil fuels for generation of energy. In addition, limited presence of fossil fuel on
the earth as well its volatile prices fuels the renewable energy market. However, generation of
energy from renewable sources requires huge investment. This factor is anticipated to hamper
the market growth during the forecast period. Furthermore, in the Middle East, fossil fuels are
majorly used to generate energy owing to its cost effective nature as compared to other
regions. This hampers the growth of the market. On the contrary, continuous advancement in
technologies and increased government funding in renewable energy sector to offer lucrative
growth opportunities during the assessment period. The renewable energy market size is
increasing due to rise in stringent government regulations regarding climate change in the
developed and developing economies.
The renewable energy market is segmented into type, end use, and region. Based on type, the
market is divided into hydroelectric power, wind power, bioenergy, solar energy, and
geothermal energy. Based on end use, the market is categorized into residential, commercial,
industrial, and others. Based on region, it is analyzed across North America, Europe, Asia-
Pacific, and LAMEA.
Asia-Pacific is expected to grow at the fastest rate during the forecast period. Owing to
increase in demand for energy due to rise in industrialization in developing countries such as

China, and India. Presence of these countries boosts the renewable energy market owing to
factors such as rise in population, rapid industrialization along with favorable policies for the
renewable energy sector.
The renewable energy market analysis covers in-depth information of major industry
participants. Some of the major players in the market include ABB Ltd., General Electric (GE),
The Tata Power Company Limited (Tata Power), Innergex, Enel Spa (Enel), Xcel Energy Inc.
(Xcel Energy), EDF, Geronimo Energy, Invenergy, and ACCIONA.
Other players in the value chain of the market include Vestas Wind Systems A/S, UpWind
Solutions, Inc., Senvion S.A., and Sinovel Wind Group Co., Ltd. ENERCON GmbH.
Key players are adopting numerous strategies such as product launch, acquisition,
collaboration, partnership, and business expansion, to stay competitive in the market. For
instance, Innergex acquired Alterra. The acquisition included two geothermal facilities in
Iceland. This acquisition added 485 MW (gross 1,049 MW) of renewable energy assets, to its
portfolio.
In addition, Enel won the first ever renewable energy tender in India through its subsidiary BLP
Energy Private Limited. Enel is expected to invest $290 billion in the construction of the wind
farm. The plant is scheduled to start its operations in the second half of 2019 and is estimated
to generate 1, 000 GWh of renewable energy. This expansion has reinforced its presence in
the India renewable energy market.

Renewable energy Market Share, by Type
Based on type, the market is classified into hydroelectric power, wind power, bioenergy, solar
energy, and geothermal energy. The hydroelectric power segment is expected to dominate the
market during the forecast period. Furthermore, the solar energy segment is expected to grow
at the highest growth rate during the forecast period.
Renewable Energy Market Share, by End Use


Based on end use, the renewable energy market is classified into residential, commercial,
industrial, and others. The industrial segment is expected to account for the highest market
share.
Renewable Energy Market Share, by Region
Key Benefits For Renewable Energy Market:
 The report provides an in-depth analysis of the forecast along with the current and
future renewable energy market trends.
 This report highlights the key drivers, opportunities, and restraints of the market
along with the impact analyses in the forecast period.
 The renewable energy market forecast is studied from 2018 to 2025.
 Porter’s five forces analysis helps analyze the potential of the buyers & suppliers
and the competitive scenario of the renewable energy industry for strategy building.
 A comprehensive analysis of the factors that drive and restrain the renewable
energy market growth is provided.
 The qualitative data in this report aims on market dynamics, trends, and
developments.
 The renewable energy market size is provided in terms of volume as well as
revenue.
 An extensive analysis of various regions provides insights that are expected to allow
companies to strategically plan their business moves.
 The profiles of key players along with their key strategic developments are enlisted
in the report
4.2 Key Issues and Current Trends in Renewable Energy:-
India has witnessed increasing capacity additions in renewable energy (RE) with an installed
capacity of close to 22 GW for solar and 34 GW for wind as on March 31, 2018. The

achievement of the planned capacity shall have the country’s task cut out in terms of planning
the transmission infrastructure and managing the integration of the laid-out capacities with the

grid, which indeed is a challenge. The transmission infrastructure is still a fragile link observing
additions far from what was envisaged to evacuate the kind of green power injected in the grid.
Although, the central government has embarked upon the Green Energy Corridor (GEC)
initiative and the integration of storage systems on grid scale is envisioned, there are
challenges to Challenges to Grid Integration of Renewable Energy in India setting up the
evacuation infrastructure. As observed, the biggest challenge is to guarantee that transmission
systems are in place before the renewable projects are ready, since executing transmission
projects takes up to five years as compared to the 12–18 months in case of solar projects.
• Difference in Number of Demand Centres and the Available Corridors for RE
There is some incongruity in the number of demand centres and the available corridors for RE
due to the lack of an effective plan to design a dedicated infrastructure for RE evacuation. For
instance, the 1 GW substation project at Kayathar in Tamil Nadu, which was scheduled to be
commissioned in early 2018 could not be commissioned on time because independent power
producers are more inclined to evacuate the power to Gujarat and Maharashtra which have
adequate demand centres as compared to the north-eastern states through the planned
corridor. This is because there are limited demand centres to consume the power and less
likelihood to earn premium under open access in the north-eastern states. However, the GEC
is being established to evacuate power from large scale renewable energy systems, therefore
are being implemented in states where RE resource is huge and large RE projects are coming
up. The excess power being generated in these states are being transmitted to other states
through the national grid. The grid infrastructure to connect to the demand centres is already in
place and any strengthening required is done by the States.
• Distance
In the case of solar power, distance is a major constraint for the planned long range
transmission due to the power purchase agreements (PPAs) under the auctions of solar
power. Six states in the western and southern parts account for 80% of the country’s installed


solar capacity but only 38% of the power demand, and at present India lacks affordable
storage facilities for RE power. However, on a positive note the excess power being generated
in these states are being transmitted to other states through the national grid, i.e., Inter State
Transmission System
• Inadequacies in Grid Infrastructure
Adequate transmission networks for upcoming RE projects have been planned and are under
approval. These would be set up as and when Stage-II connectivity is received from
developers so as to match the grid infrastructure with RE generation and to not keep the grid
idle. But there is a need to address issues of the existing grid infrastructure. In India, several
electrical parts of the country are unevenly connected to the national grid in order to optimally
evacuate large wind farms or solar parks, which otherwise demand the installation of the entire
infrastructure. Although the GEC programme is aimed at evacuating power from renewable-
energy-rich states to other states through 765 kV and 400 kV high-voltage transmission lines,
but there have been delays1 and infrastructural development does not match the pace of
tenders coming out. In some states, tenders are released without consulting the respective
state electricity regulatory commission (SERC); as a result, when PPAs go to regulatory
commissions for approval, they get held up because the SERC cites a lack of transmission
infrastructure.
• Backing Down of Wind Power in Wind Rich States
In spite of the must-run status for renewables, given their near-zero variable/marginal costs
and higher ranking in the merit order, there have been some instances of backing down of
renewable power, especially wind power. Ideally, such generation cannot be backed down
except in the case of grid contingency. The Indian Wind Power Association has noted that the
Tamil Nadu State Load Dispatch Centre (TNSLDC) has been backing down 50% of the wind
generation in the state, as ‘variation in wind power endangers the grid’. (CERC, 2016). This is
causing financial losses for wind generators. In 2015–16, there was an apparent backing down


of 5000 MU of wind power. At a tariff of `3.5/kWh, this adds up to a potential loss of `1,650
crore. At present, there is no provision for compensation for ‘deemed generation’ when wind
power generators are available but are backed down by grid operators. Grid operators and
generation owners face major technical issues, such as intermittency (which is an uncontrolled
variability) and location dependency. The three distinct issues that affect the grid integration of
wind and solar energy are:
Variability of resources: Power plant operators cannot control the wind and solar output
because wind speeds and solar intensity vary dramatically, affecting power output. To balance
the supply and demand on an instantaneous basis, there should be additional energy input as
well as peripheral ancillary services, such as voltage and frequency regulation.
Unpredictability: The availability of wind and solar energy is unpredictable to an extent.

Electricity is only produced when the wind is blowing, and the presence of sunlight is crucial for
PV systems to work. Systems that use advanced forecasting technologies can manage
unpredictability. The availability of standby reserves to supply power when the renewable
sources provide less power than predicted and the presence of dispatchable load to soak up
excess power in case of renewables producing more power than predicted are parts of
technological systems.
Location dependence: Quality wind and solar resources that are most feasible for renewable
energy generation are, unfortunately, based only in specific locations, and unlike in the case of
various fossil fuels, such as coal, oil, gas or uranium, transporting them to a generation plant
that is grid optimal is not possible. Generation is co-located with the resource, and the place
where the power is ultimately used is often far from these locations. Connecting wind and solar
energy resources to the grid involves the use of new transmission capacity. Moreover,
transmission costs are especially high for offshore wind resources, often utilizing technology
not employed in land-based transmission lines.

4.3 Renewable Energy Market Segmentation:-
The renewable energy market is segmented based on type, end use, and region.
Renewable Energy Market Segments:-
A) By Type:
 Hydroelectric Power  Solar Energy

 Wind Power Energy  Geothermal Energ
 Bioenergy
B) By End Use:
 Residential  Industrial
 Commercial  Others
C) By Region:
 North America o France o Japan

o U.S. o Italy o South Korea
o Canada o Spain o Rest of Asia-
o Mexico o Rest of Pacific
 Europe Europe  LAMEA
o Sweden  Asia-Pacific o Brazil
o Austria o China o Saudi Arabia
o Germany o India o South Africa
o UK o Australia o Rest of
o Indonesia LAMEA


4.4 Quality and Technology in Renewable Energy Industry
Renewable Energy Technologies
Renewable energy technologies produce marketable energy by converting natural phenomena

into useful forms of energy. These technologies use the sun’s energy and its direct and indirect
effects on the earth (solar radiation, wind, falling water, and various plants; i.e., biomass),
gravitational forces (tides), and the heat of the earth’s core (geothermal) as the resources from
which energy is produced. These resources have massive energy potential; however, they are
generally diffused and not fully accessible, and most of them are intermittent and have distinct
regional variability’s. These characteristics give rise to difficult, but solvable, technical and
economical challenges. Nowadays, significant progress is made by improving the collection
and conversion efficiencies, lowering the initial and maintenance costs, and increasing the
reliability and applicability of renewable energy systems.
Worldwide research and development in the field of renewable energy resources and systems
has been carried out during the last two decades. Energy conversion systems that are based
on renewable energy technologies appeared to be cost effective compared to the projected
high cost of oil. Furthermore, renewable energy systems can have a beneficial impact on the
environmental, economic, and political issues of the world. At the end of 2001 the total
installed capacity of renewable energy systems was equivalent to 9% of the total electricity
generation (Sayigh, 2001). As was seen before, by applying the renewable energy-intensive
scenario, the global consumption of renewable sources by 2050 would reach 318 EJ
(Johanson et al., 1993).
4.5 Pricing and Promotion:-
4.5.1 Pricing:-
India’s renewable energy cost is the lowest in the Asia Pacific, consultancy Wood Mackenzie,
2019

India’s levelised cost of electricity (LCOE) using solar photovoltaic has fallen to $38 per
megawatt hour (MWh) this year, 14% cheaper than coal-fired power that has traditionally been
the cheapest source of power generation, WoodMac said.
LCOE comprises the cost of generating a megawatt-hour (MWh) of electricity, the upfront
capital and development cost and the cost of equity and debt finance and operating and
maintenance fees.
“India is the second-largest power market in Asia Pacific with installed power capacity of 421
gigawatts (GW). Solar capacity is expected to reach 38 GW in 2019
4.5.2 Promotion:-
The government is promoting renewable energy industry in various ways..like by making

policy, supporting programmes and through various projects..
Policy measures for promotion of new & renewable energy
The Government of India has undertaken a number of policy measures for increasing share of
renewable energy in India's energy mix. These, inter-alia, include:
a) Provision of Renewable Purchase Obligation (RPO) under the National Tariff Policy;
b) Notification of the long term growth trajectory of RPO for solar and non-solar energy for
next 3 years from 2016-17, 2017-18 and 2018-19;
c) Development of Solar Parks and Ultra Mega Solar Power Projects;
d) Development of power transmission network through Green Energy Corridor project;
e) Making roof top solar as a part of housing loan provided by banks;
f) Waiver of Inter-State Transmission Charges and losses;
g) Repowering of Wind Power Projects for optimal utilization of wind resources;

h) Offshore wind energy policy for development of offshore wind energy in the Indian
Exclusive Economic Zone;
i) Supporting research and development on various aspects of renewable energy including
with industry participation;
j) Financial incentives for off-grid and decentralized renewable energy systems and devices
for meeting energy needs for cooking, lighting and productive purposes; and
k) Permitting 100 percent Foreign Direct Investment in sector through automatic route.
The Government of India has set up a target of installing 175 GW capacity through renewables
by 2022. As on 28.02.2018, a total capacity of 65 GW had been installed in the country.
The lowest tariff discovered for solar at Bhadala solar Park in Rajasthan in May 2017, and for
wind in the tariff-based capacity auction of Gujarat Urja Vikas Nigam Ltd in December 2017
were Rs. 2.44/KWh and Rs 2.43/KWh respectively. However, the cost of production of energy
from solar and wind energy sources varies from place to place depending upon, inter-alia,
insolation, wind speed, cost of land, cost of financing and basic infrastructure. It is true that in
some projects tariff of solar and wind power discovered is in the range or even lesser as
compared to the cost of coal based thermal power plants.
 Information and Public Awareness Programme
The objective of “Information & Public Awareness Programme” is to disseminate information

on new and renewable sources of energy (NRSE) systems/devices through variety of media
like electronic, print & exhibition as well as outdoor media, thereby popularizing and creating
awareness about such systems and devices. It also brings to the fore benefits, technological
developments and promotional activities taking place in the renewable energy arena from time
to time. The role of Information and Public Awareness Programme for inculcating the
importance of renewable energy amongst masses has been assuming increasing significance
in recent times. The Programme is implemented mainly through State Nodal Agencies,

Directorate of Advertising & Visual Publicity (DAVP), Doordarshan, All India Radio (AIR), and
Department of Posts, etc.
 Special Area Demonstration Project Programme
The Special Area Demonstration Project Scheme of the Ministry has been introduced with the
objective of demonstrating application of various renewable energy systems in a project mode
at places of national and international importance including world heritage sites, heritage
monuments, religious locations and places of public interest to create greater awareness of
renewable and to supplement the energy requirement at such locations
 Human Resources Development Programme
Ministry has been implementing a comprehensive Human Resource Development Programme

with the objective of institutionalizing the renewable energy education and training in the
country with the following overall goals:
1. To update the professionals working in the field of renewable energy on technological,

economical and social issues and management of the science and technology and public
administration through infusion of scientific temper and accountability;
2. To infuse commitment towards building of partnership and participatory decision-

making;
3. To be responsive to the challenge of changing framework needs in policy, institutional,

legal, trade, IPR, knowledge management, organizational and technological
development;
4. To strive for improving performance and efficiency of renewable energy systems and
devices to make them cost competitive;
5. To provide adequate knowledge of the technical issues that are essential to help
executives in Government, banking and financial sector with non-technical background
about renewable energy;


6. To bring about attitudinal changes among the renewable energy professionals and
those working in the mainstream power sector to enhance the use of renewable energy
for energy security of the country; and
7. To act as a facilitator for improving the skill sets of professionals and executives in the
renewable energy industry and also in research and development institutions.
 Planning & coordination
The Planning and Co-ordination Division is responsible for overall planning and budgeting
plans schemes/programmes of the Ministry and matters related to Reforms, Policy measures,
Fiscal concessions, etc. Its work involves maintaining a close liaison with different Programme
Divisions of the Ministry and with other concerned Ministries/Departments/States, State Nodal
Agencies, etc. on a regular basis.
 Seminar & Symposia
The Ministry provides support to universities, academic institutions/colleges, non-governmental

organizations, Government Departments, etc. for organizing workshops, seminars,
conferences to provide a forum for professionals, students, policy-makers, managers,
economists, industry representatives, etc., to interact and share their views on identified thrust
areas related to renewable or any other emerging area impinging on technology, innovation in
regard to renewables.
 Technology Information Forecasting, Assessment & Databank(TIFAD)
Technology Information Forecasting, Assessment and Data Bank (TIFAD) have got a vast
potential in terms of establishment of a dynamic mechanism for creation of databank on
information for state-of-the-art technology through technology forecasting and assessment.
This can be achieved by way of creation of facilities for utilization of Information Technology
Tools at the MNRE Headquarters, State Nodal Agencies, Technology Institutions,
manufacturers, NGOs and other organizations in the country and utilization of Internet to


access global database in the area of renewable energy.
TIFAD: Objectives
 Creation of Computerization and Information Technology (IT) facilities for the Ministry
Headquarters, its Regional Offices and the Solar Energy Centre.
 Creation of facilities for internet/intranet access and establishing linkages with the
Technology Institutions/Technology Providers in the area of renewable energy nationally
and globally through VSAT systems, Modems and other IT tools.
 Creation and Updation of Databases/Databanks and establishment of the Technology

Information System in the area of renewable energy in the country.
 Involving as well as providing guidelines and financial support to nodal agencies,

industries, technology institutions, Consultants and Non-Governmental Organisations,
involved in the area of renewable energy in the country, for creation of IT facilities,
Databanks and maintaining minimum standards.
 Creation of facilities and development of Software for establishment of Management

Information System (MIS) and computerised on-line electronic monitoring of projects and
programmes in the area of renewable energy in the country.
 Taking up activities on Patents and Technology Information, Forecasting and

Assessment in the area of renewable energy.
TIFAD: Achievement
100% Computerization has been achieved. 250 nos. of computer based workstations have
been created for providing computerization facility at the Ministry’s Headquarters, its 9
Regional Offices and Solar Energy Centre.
Local Area Network (LAN) has been established in the two building of the Ministry’s
Headquarters for providing connectivity to various Computers installed in the Ministry. In order

to provide connectivity between the Computers installed in the two buildings and fast data
communication, LANs set up in these buildings of the Ministry have been integrated through
laying of Fiber Optics Cable.
E-mail and Internet facility have been extended to all the Officers at the Ministry’s
Headquarters. E-mail facility has also been provided to the 9 Regional Offices and the Solar
Energy Centre.
All the Officers and officials of the Ministry’s Headquarters, its Regional Offices and the Solar
energy Centre have been provided training in the use of computers through NIC and other
professional organizations.
Specialized Training Programmes on Basic Concepts of Data Management and Networking

Services & Applications is being organized at NIC for all the Officers of MNRE, its Regional
Offices and Solar Energy Centre.
The MNRE has already prepared its Web-site in English as well as in Hindi through its in-
house efforts. The MNRE Web-site gives a comprehensive picture of the development and
utilization of renewable energy sources in India.
The Ministry has started Information and Facilitation Centre with Computer facility at its
Headquarters for an easy access to various types of information by the visitors coming to this
Ministry.

Promotion of renewable energy generation in India- Programme of Activities
 ReNew Solar Power Project in AP  Sheopur Solar Power Project,

 Lingasugur Wind Power Project in Madhya Pradesh
Karnataka  Pratapgarh Wind Power Project,
 Rajgarh Wind Power Project in Rajasthan
Rajasthan  Vaspet IV Wind Power Project,
 Mandsaur Wind Power Project in Maharashtra
Madhya Pradesh  Dangri Wind Power Project,
 Bhesada Wind Power Project in Rajasthan
Rajasthan  Welturi II wind power project in
Maharashtra
4.6 Logistic Management
Renewable energy cargo can be bulky and in the majority of cases requires door-to-door
transportation of a large number of containers from one continent to another or urgent air
freight delivery. On average, such projects take a year and a half to come to fruition due to the
socioeconomic, environmental and governmental factors involved.
90% of shipments are DAP and require door-to-door service with efficient handling at all
stages of the project, from collection at the factory, through to warehousing and ultimately,
delivery at the farm or power station, taking into account the most appropriate methods of
transport at all times. This means that most cases require specialist project cargo handling.
We have expert staff dedicated to handling these types of projects, in addition to our Project
Cargo division, which specialises in the transport of industrial projects involving oversized and
heavy cargo.


Logistic Solution for Renewable Energy Industry:
 SHIPPING
Shipping is the main method of transport used when a renewable energy plant needs to be set
up and maintained due to the large amount of equipment involved, its size and the distances
covered.
 AIR FREIGHT
Urgent shipments to send replacement components and maintain the plants. Air freight is the
fastest way to cover long distances between suppliers and the site or plant.
 MULTI-SUPPLIER CONSOLIDATION
If your materials come from different suppliers, multi-supplier consolidation is the best logistics
solution for the renewable energy industry. We group the goods from your various suppliers
together so that containers are transported carrying only your cargo. This leads to significant
savings of time and money given that once the containers have arrived in port they are
transferred directly to your warehouse, thus reducing destination handling costs.

4.7 Major Players in India for renewable energy:-
4.7.1. TATA POWER SOLAR
 Leading solar player in India

 Largest integrated solar player in the country
 Shipped 1 GW solar modules worldwide in 2017
 Module manufacturing capacity of 400 MW
 Cell Manufacturing capacity of 300 MW

 29 years of experience
Consolidated total income of Rs 29,493 crore (US$ 42.19 billion) in FY19
Tata Power Solar Systems Ltd is part of the Tata Group and the largest integrated solar power
player in the country. It has three separate business segments – manufacturing of solar cells
and modules, engineering, procurement and construction (EPC) for solar power projects and
other solar products. It provides customised and specialised solutions for various sectors like,
education, banking, healthcare, telecom, etc. and operates in both rural and urban areas.
Important years for company
 2019 Tata Power Solar commissioned 70 kW solar rooftop installation at India

International Centre.
 2018 Tata Power Solar received an award for Active Promotion of TBEM.
 2018 Tata Power installs solar rooftop solar solution at Cricket Club of India, Mumbai
 2018 Launched extensive residential rooftop solution across India
 2017 Shipped 1 GW modules worldwide
 2015 Ranked #1 in the solar rooftop market by Bridge To India
 2012 Became a wholly owned subsidiary of the Tata Group
 2007 Became the largest cell manufacturer in India
 2005 Won Gold for Manufacturing Excellence by Frost & Sullivan
 2001 Module manufacturing expansion initiated
 1991 Commenced commercial manufacturing
 1989 Tata Power and BP Solar partner to establish Tata BP Solar

4.7.2.SUZLON ENERGY
 Vertically integrated, future-ready wind turbine manufacturer

 Presence in 18 countries

 Over 17,900 MW of installed capacity worldwide

 15 manufacturing units and 8 R&D facilities
 More than two decades of rich experience in the wind energy sector
 Consolidated total income of Rs 5,074.64 crore (US$ 726.08 million) in FY19 and stood at
Rs 833 crore (US$ 119.19 million) in Q1 FY20.
Suzlon is one of India’s leading renewable energy companies. Its services span the entire life
of wind energy projects. It designs, develops, manufactures wind turbine generators (WTGs). It
also provides allied services, providing it a strong presence across the wind power value chain.
It does business in 18 countries across six continents. It also has the largest installed wind
energy capacity in India and installed 626 MW of capacity in FY18.
 2019 Suzlon Global Services Limited bagged 1st Prize at the IMC Ramkrishna Bajaj
National Quality Award
 2018 Sale of subsidiary SE Solar and Gale Solarfarms to CLP Wind Farms
 2017 Achieved 10,000 MW of installed wind energy in India
 2013 Crossed 1,000 MW in Kutch, Gujarat; developing India’s largest wind park
 2011 Launched new range of wind turbine machines
 2009 Became the only wind power company in the world to achieve Superbrand status
 2005 Secured its first contracts in China and South Korea, Successful initial public offer
(IPO)
 2004 Opened representative office in China
 2002 First export order shipped to the US
 1995 Started by Mr Tulsi Tanti in Gujarat

4.7.3.RENEW POWER
 Operational capacity of 3.92 GW

 Revenue of Rs 24,616.69 crore (US$ 352.22 million) in FY18.
 India’s largest renewable energy independent power producer
ReNew Power Ventures operates as an independent power producer. The company engages
in the generation of non-conventional energy through solar and wind power. It sells its power to
state electricity boards and large industrial companies in India. It was founded in 2011 and
commenced operations in 2012 with their first project with a capacity of producing 25.20 MW
located in Jasdan, Gujarat. Today, Renew Power is India’s largest renewable energy
Independent Power Producer with a capacity of more than 5,800 MW of wind & solar power
assets across the country. Of this, more than 3,900 MW of assets are already operational.
 2019 At Vidya School, 5.12kW solar-rooftop system was inaugurated which was installed
by ReNew Power.,Received World Quality Congress Awards 2019 for Best Solar Utility of
the Yearand Best Solar Innovation.
 2019 ReNew Power announced commissioning of its 300 MW solar plant at Pavagada
Solar Park in Karnataka.
 2018 Achieved a total operational capacity of 3.92 GW,Acquired OEPL and KCT with an
operational portfolio of 858.10 MW and 103.10 MW Respectively.
 2017 Acquired the assets of Vikram Solar Group.
 2017 Became the first renewable energy IPP in India to reach 1 GW of renewable
commissioned capacity.

 2016 Doubled operational capacity and achieved a total commissioned capacity of 986.90
MW.
 2016 Became the first renewable energy independent power producer (“IPP”) of India to

raise Rupee denominated masala bonds.

 2015 Commissioned their first large distributed solar energy project with a capacity of 860
kWp.
 2014 Investments by GSW, ADB and GEF in the form of equity.
 2012 Commissioned their first utility scale wind energy project with 25.2MW capacity.
Other companies in renewable energy industry in india
Vestas India
One of the biggest wind energy companies in India and the world by some margin, Vestas
began operation in India back in 1979. The company has a major global presence in more than
70 countries. Since its inception in 1970, the firm has emerged to be the market leader in
harnessing wind energy and has so far installed wind energy farms capable of producing 57
GigaWatt of energy.
Regen Powertech Pvt. Ltd.
Regen Powertech is one of the most diversified wind energy companies in India. The company
not only deals in the manufacture of wind turbines, but also in other services including
consultancy, supply, and erection of wind energy-related projects. Regen is based in India,
with headquarters in Chennai. The company’s manufacturing plant, however, is located in
Andhra Pradesh.
Enercon India Pvt. Ltd.
Enercon India functions in India under the banner of Wind World Ltd. The company was
founded in 1983, and today is capable of producing 28 GW of wind energy. Apart from power


generation, the company also deals in other sectors like technical and business support.
Enercon is surely one of the leading companies in India and elsewhere in harnessing wind
energy and is rightfully a part of the top 500 companies of Engineering News Record (ENR).
GE Wind Energy Ltd.
The company is originally based in the US but has major operations going on India. Since
1980, the company has been one of the leading manufacturers of low and medium frequency
converters for wind turbines. Currently, the company has the bandwidth to produce 26 GW of
wind energy.
Indowind Energy Ltd.
Stationed in Chennai, the company largely deals in producing wind energy from dedicated
wind farms. Indowind works round the clock to make sure that the energy generated by their
wind energy farms keeps on coming continuously.
Orient Green Power Ltd.
Orient Green Power Ltd. has managed to build an efficient infrastructure for harnessing wind
energy. Their wind farms, which are spread across in the states of Tamil Nadu, Maharashtra,
Gujarat, and Andhra Pradesh are capable of utilising even the slowest of winds to produce
energy. In a short span of only 10 years, the company, headquartered in Chennai, has
managed to open branches in countries o0f Europe and South Asia.
Inox Wind Ltd.
Inox began operation in 2006 and is based in NOIDA. The company plays a diversified role in

the business, as it deals in the acquisition of sites for constructing wind energy farms, and also
takes care of the resources required for erection and the entire infrastructure of the farms. In
fact, the company’s plant in Madhya Pradesh is considered to be the biggest in India.
NHPC
NHPC Limited (erstwhile National Hydroelectric Power Corporation) is an

Indian Hydropower generation company that was incorporated in the year 1975 with an
authorised capital of Rs. 2000 million and with an objective to plan, promote and organise an
integrated and efficient development of hydroelectric power in all aspects. Later on NHPC
expanded its objects to include other sources of energy like Solar, Geothermal, Tidal, Wind
etc.
At present, NHPC is a Mini Ratna Category-I Enterprise of the Govt. of India with an
authorised share capital of Rs. 150,000 Million. With an investment base of over Rs. 387,180
Million Approx., NHPC is among the top ten companies in the country in terms of investment.
Baira Suil Power station in Salooni Tehsil of Chamba district was the first project undertaken
by NHPC. Shri Balraj Joshi is the current CMD of NHPC.
SJVN
SJVN Limited, a Mini Ratna, Category-I and Schedule –‘A’ CPSE under administrative control
of Ministry of Power, Govt. of India, was incorporated on May 24, 1988 as a joint venture of the
Government of India (GOI) and the Government of Himachal Pradesh (GOHP). SJVN is now a
listed Company having shareholders pattern of 61.93 % with Govt. of India, 26.85% with Govt.
of Himachal Pradesh and rest of 11.22 % with Public. The present paid up capital and
authorized capital of SJVN is Rs. 3,929.80 Crore and Rs. 7,000 Crore respectively.The Net
Worth as on 31.03.2019 is Rs.11238.78 Crore.
Beginning with a single Project and single State operation (i.e. India’s largest 1500 MW Nathpa


Jhakri Hydro Power Station in Himachal Pradesh) the Company has commissioned five
projects totaling 2015.2 MW of installed capacity including wind and solar power. SJVN is
presently implementing power projects in Himachal Pradesh, Uttarakhand, Bihar, Maharashtra
and Gujarat in India besides neighbouring countries viz. Nepal and Bhutan .
4.8 Market share of various firms by capacity:-
ibef.org

5. Financial Analysis:-
The process of reviewing and analyzing a company’s financial statements to make better
economic decisions is called analysis of financial statements. In other words, the process of
determining financial strengths and weaknesses of the entity by establishing
the strategic relationship between the items of the balance sheet, profit and loss account, and
other financial statements.
The term ‘analysis’ means the simplification of financial data by methodical classification of the
data given in the financial statements, ‘interpretation’ means, ‘explaining the meaning and
significance of the data so simplified.’ However, both’ analysis and interpretation’ are interlinked
and complementary to each other.

5.1 Profit Margin Analysis-
5.1.2 Gross Profit Margin:-
Gross profit margin is a ratio that indicates the performance of a company's sales and
production. This ratio is made by accounting for the cost of goods sold—which include all costs
generated to produce or provide your product or service—and your total revenue. If your
business has a gross profit margin of 24%, it means that 24% of your total revenue became
profit.
A higher gross profit margin indicates efficient processes in a company. A lower ratio indicates
your processes may \not be as efficient as they could be.
Gross Profit Margin= (Revenue-COGS)/Revenue
Company/Year 2018-19 2017-18 2016-17 2015-16 2014-15

Suzlon Energy 0.81 13.33 20.35 12.65 1.58
Inox Wind 10.13 -11.87 18.32 17.57 17.40
NHPC 65.27 68.37 73.60 70.79 74.35
Sterling & Wilson
10.33 8.01 - - -
Solar
BF Utilities 78.55 77.81 76.98 70.68 72.56
SJVN 86.13 91.64 98.08 98.73 102.39
Interpretation:-
The data for companies shows that there does not seems any clear trend in term of increasing
or decreasing trends in existing industry. BF Utilities gross margin was constant over last 5
year. While SJVN net profit margin was decreased by 20% and all other companies gross
margin was also decreased by 5-15%. Therefore, It can be interpreted that the renewable
industry has a scope for higher gross margin.

5.1.2 Operating Margin:-
Operating Profit Margin is profitability or performance ratio used to calculate the percentage of

profit a company produces from its operations, prior to subtracting taxes and interest charges.
It is calculated by dividing the operating profit by total revenue and expressing as a
percentage. The margin is also known as EBIT (Earnings Before Interest and Tax) Margin
Operating Profit Margin differs across companies and industries and is often used as a metric
for benchmarking one company against similar companies within the same industry. It can
reveal the top performers within an industry and indicate the need for further research
regarding why a particular company is outperforming or falling behind its peers.
Operating Margin= Operating Income/Net Sales
Company/Year 2018-19 2017-18 2016-17 2015-16 2014-15

Suzlon Energy -5.98 9.12 17.29 8.52 -2.47
Inox Wind 5.53 -22.76 17.04 16.78 16.65
NHPC 46.82 49.43 56.65 53.65 53.54
Sterling & Wilson
10.24 7.96 - - -
Solar
BF Utilities 66.94 62.20 59.20 63.05 67.17
SJVN 71.43 75.28 72.70 71.58 79.64
Interpretation:-
BF Utilities has a constant operating margin over the 5 year whereas remaining all has seen a
gradual decreasing in its operating margin over year due to cost burden.

5.1.3 Net Profit Margin:-
Net profit margin is the percentage of revenue left after all expenses have been deducted from
sales. The measurement reveals the amount of profit that a business can extract from its total
sales. The net sales part of the equation is gross sales minus all sales deductions, such as
sales allowances. The formula is:
(Net profits ÷ Net sales) x 100 = Net profit margin
This measurement is typically made for a standard reporting period, such as a month, quarter,
or year, and is included in the income statement of the reporting entity.
Company/Year 2018-19 2017-18 2016-17 2015-16 2014-15

Suzlon Energy -30.47 -4.79 7.07 6.40 -45.7
Inox Wind -2.76 -39.09 8.88 10.36 10.93
NHPC 31.51 35.90 40.32 34.88 33.94
Sterling & Wilson
7.74 6.55 - - -
Solar
BF Utilities 16.06 8.98 -8.71 1.06 23.25
SJVN 51.33 54.81 57.52 56.38 59.50
Interpretation:-
The Net Profit margin shows distinct results for Renewable Energy Industry. The big player of
the market are earning net profit margin around 30-50%.

5.2 Cost Structure Analysis:-
Cost structure analysis shows the component of total cost to the company. Cost Structure
Analysis is a common process for production manufacturing companies. The activity reviews
all type of costs necessary to complete production processes. Different cost structure analysis
methods include a review on the types of costs, cost behavior and break-even analysis. Each
method focuses on the different part of the company’s business activities in order to define
how efficiently and effectively the company completes activities.
2018-19
Suzlon Inox Wind NHPC Sterling & BF Utilities SJVN
Particulars
Energy Wilson
Solar
Cost Of Materials 2,956.50 883.44 12.68 5,609.09 - -
Consumed
Operating And Direct 0.00 179.62 800.75 1,538.77 36.63 -
Expenses
Changes In Inventories 41.85 -45.69 - 1.27 0.09 -
Of FG,WIP And Stock-In
Trade
Employee Benefit 874.16 93.79 1,849.93 284.16 51.29 316.41
Expenses
Finance Costs 1,269.91 168.61 895.14 84.65 205.28 235.33
Depreciation And 341.85 66.06 1,657.96 7.80 52.02 390.26
Amortization Expenses
Other Expenses 1,160.93 204.03 1,319.60 165.02 29.34 305.34
Total 6,645.20 1,549.85 6,536.06 7,690.76 374.65 1,247.34

5.3 Leverage Analysis:-
5.3.1 Financial Coverage Ratio:-
A Coverage Ratio is any one of a group of financial ratios used to measure a company’s ability
to pay its financial obligations. A higher ratio indicates a greater ability of the company to meet
its financial obligations while a lower ratio indicates a lesser ability. Coverage ratios are
commonly used by creditors and lenders to determine the financial standing of a
prospective borrower.
Company/Year 2018-19 2017-18 2016-17 2015-16 2014-15

Suzlon Energy 0.27 0.84 2.40 4.58 -0.43
Inox Wind 1.36 -0.47 3.55 7.91 8.34
NHPC 6.04 5.57 4.87 4.81 4.11
BF Utilities 13.45 6.07 3.07 1.90 2.27
SJVN 9.72 24.40 57.57 11.79 44.69
Interpretation:-
The coverage ratio is results for companies’ ability to pay its debts. The basic interpretation for
this is that the ability of companies to pay its debts is decreasing during last 5 years.

5.4 Profitability Ratio:-
5.4.1 Return on Equity/Net Worth:-
Return on equity (ROE) is a measure of financial performance calculated by dividing net

income by shareholders' equity. Because shareholders' equity is equal to a company’s assets
minus its debt, ROE could be thought of as the return on net assets.
ROE is considered a measure of how effectively management is using a company’s assets to

create profits.
Return on Equity= Net Income/Shareholder’s Equity
Company/Year 2018-19 2017-18 2016-17 2015-16 2014-15

Suzlon Energy 17.91 5.38 -12.53 -7.74 100.38
Inox Wind -2.01 -9.36 13.85 24.44 21.29
NHPC 8.42 8.36 10.44 8.22 8.10
Sterling & Wilson
75.97 230.00 - - -
Solar
BF Utilities -14.51 -8.22 -1.05 -1.34 -26.92
SJVN 12.11 11.41 13.41 12.44 16.43
Interpretation:-
The ROE results for the renewable industry shows that there is no clear trend for the return to
its equity shareholders. NHPC and SJVN gives regular return over 5 years. While other
companies’ gives negative return during last 5 years.

5.4.2 Return on Investment:-
Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an

investment or compare the efficiency of a number of different investments. ROI tries to directly
measure the amount of return on a particular investment, relative to the investment’s cost. To
calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment.
The result is expressed as a percentage or a ratio.
ROI= Earnings before Interest and Tax/ Capital Employed
Company/Year 2018-19 2017-18 2016-17 2015-16 2014-15

Suzlon Energy -17.21 -3.38 7.05 5.99 -42.14
Inox Wind -0.83 -4.57 5.88 9.65 9.21
NHPC 3.88 3.99 5.03 4.14 3.93
Sterling & Wilson
11.85 9.18 - - -
Solar
BF Utilities 1.91 1.32 0.17 0.13 2.74
SJVN 9.09 8.48 10.01 9.14 11.45
Interpretation:-
The ROI results for the Renewable Energy Industry Claims for a Negative as well as positive
return on investment.

5.5 Du Pont Analysis:-
The DuPont analysis (also known as the DuPont identity or DuPont model) is a framework for
analyzing fundamental performance popularized by the DuPont Corporation. DuPont analysis
is a useful technique used to decompose the different drivers of return on equity (ROE).
Decomposition of ROE allows investors to focus on the key metrics of financial performance
individually to identify strengths and weaknesses.
There are three major financial metrics that drive return on equity (ROE): operating efficiency,
asset use efficiency and financial leverage. Operating efficiency is represented by net profit
margin or net income divided by total sales or revenue. Asset use efficiency is measured by
the asset turnover ratio. Leverage is measured by the equity multiplier, which is equal to
average assets divided by average equity.

Company/Year 2018-19 2017-18 2016-17 2015-16 2014-15

Suzlon Energy 17.91 5.38 -12.53 -7.74 100.38
Inox Wind -2.01 -9.36 13.85 24.44 21.29
NHPC 8.42 8.36 10.44 8.22 8.10
Sterling & Wilson
75.97 230.00 - - -
Solar
BF Utilities -14.51 -8.22 -1.05 -1.34 -26.92
SJVN 12.11 11.41 13.41 12.44 16.43
Interpretation:-
The DuPont results for the renewable industry shows that there is no clear trend for the return
to its equity shareholders. NHPC and SJVN gives regular return over 5 years. While other
companies’ gives negative return during last 5 years.

5.6 Earnings per Share:-
Earnings per share (EPS) are calculated as a company's profit divided by the outstanding
shares of its common stock. The resulting number serves as an indicator of a company's
profitability. It is common for a company to report EPS that is adjusted for extraordinary
items and potential share dilution. The higher a company's EPS, the more profitable it is
considered.
EPS= (Net Income-Dividends on Preferred stock)/Outstanding Equity Shares
Company/Year 2018-19 2017-18 2016-17 2015-16 2014-15

Suzlon Energy -2.87 -0.72 1.71 1.22 -30.49
Inox Wind -1.80 -8.45 13.67 20.78 14.81
NHPC 2.54 2.45 2.74 2.35 2.25
Sterling & Wilson
39.85 29.97 - - -
Solar
BF Utilities 19.11 9.57 -7.78 0.82 16.32
SJVN 3.48 2.97 3.79 3.41 4.05
Interpretation:-
The Data for EPS shows that only Sterling & Wilson solar, BF Utilities are able to earn higher
earnings per share among all other companies. This is because the other companies are
having a lower profit to share among lager base of equity shareholders.

5.7 Dividend Payout Ratio:-
Dividend per share (DPS) is the sum of declared dividends issued by a company for every
ordinary share outstanding. The figure is calculated by dividing the total dividends paid out by
a business, including interim dividends, over a period of time by the number of
outstanding ordinary shares issued. A company's DPS is often derived using the dividend paid
in the most recent quarter, which is also used to calculate the dividend yield.
DPS= (Sum of all periodic dividends in a year+ Sum of all special dividend in a year)/
Weighted average of common shares outstanding during the year
Company/Year Face Value 2018-19 2017-18 2016-17 2015-16 2014-15

Suzlon Energy 2 0.00 0.00 0.00 0.00 0.00
Inox Wind 10 0.00 0.00 0.00 0.00 0.00
NHPC 10 38.54 49.78 83.32 56.16 26.66
Sterling & Wilson 1
0.00 0.00 - - -
Solar
BF Utilities 5 0.00 0.00 0.00 0.00 0.00
SJVN 10 43.26 64.34 73.00 30.86 25.90
Interpretation:-
The data shows that only NHPC and SJVN gives dividend on regular basis. While other
companies are not interested in distribute dividend.

5.8 Price Earning Analysis:-
The price-to-earnings ratio (P/E ratio) is the ratio for valuing a company that measures its
current share price relative to its per-share earnings (EPS). The price-to-earnings ratio is also
sometimes known as the price multiple or the earnings multiple.
P/E ratios are used by investors and analysts to determine the relative value of a company's
shares in an apples-to-apples comparison. It can also be used to compare a company against
its own historical record or to compare aggregate markets against one another or over time.
PER= Market Value per Share/ Earnings per Share
Company/YearSuzlon Energy Inox Wind NHPC Sterling & SJVN

Wilson Solar
2018-19 0.00 0.00 8.16 0.00 5.76
Interpretation:-
The P/E analysis shows that in the renewable energy industry, the performances of all
companies are very decent.

5.9 Sustainable Growth Rate Analysis:-
The sustainable growth rate (SGR) is the maximum rate of growth that a company or social
enterprise can sustain without having to finance growth with additional equity or debt. The
SGR involves maximizing sales and revenue growth without increasing financial leverage.
Achieving the SGR can help a company prevent being over-leveraged and avoid financial
distress.
SGR= Return on Equity * (1-Dividend per Share)
Company/Year 2018-19 2017-18 2016-17 2015-16 2014-15

Suzlon Energy 17.91 5.38 -12.53 -7.74 100.38
Inox Wind -2.01 -9.36 13.85 24.44 21.29
NHPC 5.17 4.20 1.75 3.60 5.94
Sterling & Wilson
75.97 230.00 - - -
Solar
BF Utilities -14.51 -8.22 -1.05 -1.34 -26.92
SJVN 6.87 4.06 3.62 8.60 12.17
Interpretation:-
The growth figure for all companies shows gradually negative in the growth rate over the
years.

6. Industry Analysis:-
6.1 PESTEL Analysis:-
freeonlinetemplate.com
PESTEL analysis is a strategic tool to analyze the macro environment of the organization.
PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors
that impact the macro environment of Renewable Energy
PESTEL analysis provides great detail about operating challenges Renewable Energy Group,
Inc. will face in prevalent macro environment other than competitive forces. For example an
Industry may be highly profitable with a strong growth trajectory but it won't be any good for
Renewable Energy Group, Inc. if it is situated in unstable political environment.

6.1.1 Political Factors that Impact Renewable Energy:-
Political factors play a significant role in determining the factors that can impact Renewable
Energy Group, Inc.'s long term profitability in a certain country or market. Renewable Energy
Group, Inc. is operating in Oil & Gas Refining & Marketing in more than dozen countries and
expose itself to different types of political environment and political system risks. The achieve
success in such a dynamic Oil & Gas Refining & Marketing industry across various countries is
to diversify the systematic risks of political environment. Renewable Energy Group, Inc. can
closely analyze the following factors before entering or investing in a certain market-
 Political stability and importance of Oil & Gas Refining & Marketing sector in the country's
economy.
 Risk of military invasion
 Level of corruption - especially levels of regulation in Basic Materials sector.
 Bureaucracy and interference in Oil & Gas Refining & Marketing industry by government.
 Legal framework for contract enforcement
 Intellectual property protection
 Trade regulations & tariffs related to Basic Materials
 Favored trading partners
 Anti-trust laws related to Oil & Gas Refining & Marketing
 Pricing regulations – Are there any pricing regulatory mechanism for Basic Materials
 Taxation - tax rates and incentives
 Wage legislation - minimum wage and overtime
 Work week regulations in Oil & Gas Refining & Marketing
 Mandatory employee benefits
 Industrial safety regulations in the Basic Materials sector.
 Product labeling and other requirements in Oil & Gas Refining & Marketing

6.1.2 Economic Factors that Impact Renewable Energy:-
The Macro environment factors such as – inflation rate, savings rate, interest rate, foreign
exchange rate and economic cycle determine the aggregate demand and aggregate
investment in an economy. While micro environment factors such as competition norms impact
the competitive advantage of the firm. Renewable Energy Group, Inc. can use country’s
economic factor such as growth rate, inflation & industry’s economic indicators such as Oil &
Gas Refining & Marketing industry growth rate, consumer spending etc to forecast the growth
trajectory of not only --sectoryname-- sector but also that of the organization. Economic factors
that Renewable Energy Group, Inc. should consider while conducting PESTEL analysis are -
Type of economic system in countries of operation – what type of economic system there is
and how stable it is.
 Government intervention in the free market and related Basic Materials

 Exchange rates & stability of host country currency.
 Efficiency of financial markets – Does Renewable Energy Group, Inc. needs to raise capital
in local market?
 Infrastructure quality in Oil & Gas Refining & Marketing industry
 Comparative advantages of host country and Basic Materials sector in the particular
country.
 Skill level of workforce in Oil & Gas Refining & Marketing industry.
 Education level in the economy
 Labour costs and productivity in the economy
 Business cycle stage (e.g. prosperity, recession, recovery)
 Economic growth rate
 Discretionary income
 Unemployment rate
 Inflation rate
 Interest rates


6.1.3 Social Factors that Impact Renewable Energy:-
Society’s culture and way of doing things impact the culture of an organization in an
environment. Shared beliefs and attitudes of the population play a great role in how marketers
at Renewable Energy Group, Inc. will understand the customers of a given market and how
they design the marketing message for Oil & Gas Refining & Marketing industry consumers.
Social factors that leadership of Renewable Energy Group, Inc. should analyze for PESTEL
analysis are -
 Demographics and skill level of the population

 Class structure, hierarchy and power structure in the society.
 Education level as well as education standard in the Renewable Energy industry
 Culture (gender roles, social conventions etc.)
 Entrepreneurial spirit and broader nature of the society. Some societies encourage
entrepreneurship while some don’t.
 Attitudes (health, environmental consciousness, etc.)
 Leisure interests
6.1.4 Technological Factors that Impact Renewable Energy:-
Technology is fast disrupting various industries across the board. Transportation industry is a
good case to illustrate this point. Over the last 5 years the industry has been transforming
really fast, not even giving chance to the established players to cope with the changes. Taxi
industry is now dominated by players like Uber and Lyft. Car industry is fast moving toward
automation led by technology firm such as Google & manufacturing is disrupted by Tesla,
which has stated an electronic car revolution.
A firm should not only do technological analysis of the industry but also the speed at which
technology disrupts that industry. Slow speed will give more time while fast speed of
technological disruption may give a firm little time to cope and be profitable. Technology

analysis involves understanding the following impacts -
 Recent technological developments by Renewable Energy Group, Inc. competitors

 Technology's impact on product offering
 Impact on cost structure in Oil & Gas Refining & Marketing industry
 Impact on value chain structure in Basic Materials sector
 Rate of technological diffusion
6.1.5 Environmental Factors that Impact Renewable Energy:-
Different markets have different norms or environmental standards which can impact the
profitability of an organization in those markets. Even within a country often states can have
different environmental laws and liability laws. For example in United States – Texas and
Florida have different liability clauses in case of mishaps or environmental disaster. Similarly a
lot of European countries give healthy tax breaks to companies that operate in the renewable
sector.
Before entering new markets or starting a new business in existing market the firm should
carefully evaluate the environmental standards that are required to operate in those markets.
Some of the environmental factors that a firm should consider beforehand are -
 Weather
 Climate change
 Laws regulating environment pollution
 Air and water pollution regulations in Oil & Gas Refining & Marketing industry
 Recycling
 Waste management in Basic Materials sector
 Attitudes toward “green” or ecological products
 Endangered species
 Attitudes toward and support for renewable energy

6.1.6 Legal Factors that Impact Renewable Energy:-
In number of countries, the legal framework and institutions are not robust enough to protect
the intellectual property rights of an organization. A firm should carefully evaluate before
entering such markets as it can lead to theft of organization’s secret sauce thus the overall
competitive edge. Some of the legal factors that Renewable Energy Group, Inc. leadership
should consider while entering a new market are -
 Anti-trust law in Oil & Gas Refining & Marketing industry and overall in the country.
 Discrimination law
 Copyright, patents / Intellectual property law
 Consumer protection and e-commerce
 Employment law
 Health and safety law
 Data Protection
6.2 Porter’s Five Forces Analysis:-
blog.v-comply.com


A model was put forward by Michael. E. Porter in an article in the Harvard Business Review in
1979. This model, known as Porter's Five Forces Model is a strategic management tool that
helps determine the competitive landscape of an industry. Each of the five forces mentioned in
the model and their strengths help strategic planners understand the inherent profit potential
within an industry. The strengths of these forces vary across the industry to industry, which
means that every industry is different regarding the profitability and attractiveness. The
structure of an industry, even though it is stable, can change over time. These Porter’s five
forces are as follows:
 Threat of New Entrants

 Bargaining Power of Suppliers
 Bargaining Power of Buyers
 Threat of Substitute Products or Services
 Rivalry Among Existing Firms
The Porter’s Five Forces model can be used to analyse the industry in which Renewable
Energy Group Inc operates, in terms of attractiveness through inherent profit potential. The
information analysed using the model can be used by strategic planners for Renewable Energy
Group Inc to make strategic decisions.
Renewable Energy Group Inc Porter’s Five Forces Analysis
This section analyses Renewable Energy Group Inc using each of the five forces of Porter’s
model.
6.2.1. Threat of New Entrants:-
 The economies of scale is fairly difficult to achieve in the industry in which Renewable
Energy Group Inc operates. This makes it easier for those producing large capacitates to
have a cost advantage. It also makes production costlier for new entrants. This makes the
threats of new entrants a weaker force.

 The product differentiation is strong within the industry, where firms in the industry sell

differentiated products rather a standardised product. Customers also look for

differentiated products. There is a strong emphasis on advertising and customer services
as well. All of these factors make the threat of new entrants a weak force within this
industry.
 The capital requirements within the industry are high, therefore, making it difficult for new
entrants to set up businesses as high expenditures need to be incurred. Capital
expenditure is also high because of high Research and Development costs. All of these
factors make the threat of new entrants a weaker force within this industry.
 The access to distribution networks is easy for new entrants, which can easily set up their
distribution channels and come into the business. With only a few retail outlets selling the
product type, it is easy for any new entrant to get its product on the shelves. All of these
factors make the threat of new entrants a strong force within this industry.
 The government policies within the industry require strict licensing and legal requirements
to be fulfilled before a company can start selling. This makes it difficult for new entrants to
join the industry, therefore, making the threat of new entrants a weak force.
How Renewable Energy Group Inc can tackle the Threat of New Entrants?
 Renewable Energy Group Inc can take advantage of the economies of scale it has within
the industry, fighting off new entrants through its cost advantage.
 Renewable Energy Group Inc can focus on innovation to differentiate its products from that
of new entrants. It can spend on marketing to build strong brand identification. This will
help it retain its customers rather than losing them to new entrants.
6.2.2. Bargaining Power of Suppliers:-
 The number of suppliers in the industry in which Renewable Energy Group Inc operates
is a lot compared to the buyers. This means that the suppliers have less control over
prices and this makes the bargaining power of suppliers a weak force.
 The product that these suppliers provide are fairly standardised, less differentiated and


have low switching costs. This makes it easier for buyers like Renewable Energy Group
Inc to switch suppliers. This makes the bargaining power of suppliers a weaker force.
 The suppliers do not contend with other products within this industry. This means that
there are no other substitutes for the product other than the ones that the suppliers
provide. This makes the bargaining power of suppliers a stronger force within the
industry.
 The suppliers do not provide a credible threat for forward integration into the industry in
which Renewable Energy Group Inc operates. This makes the bargaining power of
suppliers a weaker force within the industry.
 The industry in which Renewable Energy Group Inc operates is an important customer
for its suppliers. This means that the industry’s profits are closely tied to that of the
suppliers. These suppliers, therefore, have to provide reasonable pricing. This makes the
bargaining power of suppliers a weaker force within the industry.
How Renewable Energy Group Inc can tackle the Bargaining Power of Suppliers?
 Renewable Energy Group Inc can purchase raw materials from its suppliers at a low
cost. If the costs or products are not suitable for Renewable Energy Group Inc, it can then
switch its suppliers because switching costs are low.
 It can have multiple suppliers within its supply chain. For example, Renewable Energy
Group Inc can have different suppliers for its different geographic locations. This way it
can ensure efficiency within its supply chain.
 As the industry is an important customer for its suppliers, Renewable Energy Group Inc
can benefit from developing close relationships with its suppliers where both of them
benefit.
6.2.3. Bargaining Power of Buyers:-
 The number of suppliers in the industry in which Renewable Energy Group Inc operates
is

a lot more than the number of firms producing the products. This means that the buyers
have a few firms to choose from, and therefore, do not have much control over prices.
This makes the bargaining power of buyers a weaker force within the industry.
 The product differentiation within the industry is high, which means that the buyers are
not able to find alternative firms producing a particular product. This difficulty in switching
makes the bargaining power of buyers a weaker force within the industry.
 The income of the buyers within the industry is low. This means that there is pressure to
purchase at low prices, making the buyers more price sensitive. This makes the buying
power of buyers a weaker force within the industry.
 The quality of the products is important to the buyers, and these buyers make frequent
purchases. This means that the buyers in the industry are less price sensitive. This
makes the bargaining power of buyers a weaker force within the industry.
 There is no significant threat to the buyers to integrate backwards. This makes the
bargaining threat of buyers a weaker force within the industry.
How Renewable Energy Group Inc can tackle the Bargaining Power of Buyers?
 Renewable Energy Group Inc can focus on innovation and differentiation to attract more
buyers. Product differentiation and quality of products are important to buyers within the
industry, and Renewable Energy Group Inc can attract a large number of customers by
focusing on these.
 Renewable Energy Group Inc needs to build a large customer base, as the bargaining
power of buyers is weak. It can do this through marketing efforts aimed at building brand
loyalty.
 Renewable Energy Group Inc can take advantage of its economies of scale to develop
a cost advantage and sell at low prices to the low-income buyers of the industry. This way
it will be able to attract a large number of buyers.

6.2.4. Threat of Substitute Products or Services:-
 There are very few substitutes available for the products that are produced in the
industry in which Renewable Energy Group Inc operates. The very few substitutes that
are available are also produced by low profit earning industries. This means that there is
no ceiling on the maximum profit that firms can earn in the industry in which Renewable
Energy Group Inc operates. All of these factors make the threat of substitute products a
weaker force within the industry.
 The very few substitutes available are of high quality but are way more expensive.
Comparatively, firms producing within the industry in which Renewable Energy Group Inc
operates sell at a lower price than substitutes, with adequate quality. This means that
buyers are less likely to switch to substitute products. This means that the threat of
substitute products is weak within the industry.
How Renewable Energy Group Inc can tackle the Threat of Substitute Products?
 Renewable Energy Group Inc can focus on providing greater quality in its products. As
a result, buyers would choose its products, which provide greater quality at a lower price
as compared to substitute products that provide greater quality but at a higher price.
 Renewable Energy Group Inc can focus on differentiating its products. This will ensure
that buyers see its products as unique and do not shift easily to substitute products that
do not provide these unique benefits. It can provide such unique benefits to its customers
by better understanding their needs through market research, and providing what the
customer wants.
6.2.5. Rivalry Among Existing Firms:-
 The number of competitors in the industry in which Renewable Energy Group Inc
operates are very few. Most of these are also large in size. This means that firms in the
industry will not make moves without being unnoticed. This makes the rivalry among


existing firms a weaker force within the industry.
 The very few competitors have a large market share. This means that these will engage
in competitive actions to gain position and become market leaders. This makes the rivalry
among existing firms a stronger force within the industry.
 The industry in which Renewable Energy Group Inc is growing every year and is
expected to continue to do this for a few years ahead. A positive Industry growth means
that competitors are less likely to engage in completive actions because they do not need
to capture market share from each other. This makes the rivalry among existing firms a
weaker force within the industry.
 The fixed costs are high within the industry in which Renewable Energy Group Inc
operates. This makes the companies within the industry to push to full capacity. This also
means these companies to reduce their prices when demand slackens. This makes the
rivalry among existing firms a stronger force within the industry.
 The products produced within the industry in which Renewable Energy Group Inc
operates are highly differentiated. As a result, it is difficult for competing firms to win the
customers of each other because of each of their products in unique. This makes the
rivalry among existing firms a weaker force within the industry.
 The production of products within the industry requires an increase in capacity by large
increments. This makes the industry prone to disruptions in the supply-demand balance,
often leading to overproduction. Overproduction means that companies have to cut down
prices to ensure that its products sell. This makes the rivalry among existing firms a
stronger force within the industry.
 The exit barriers within the industry are particularly high due to high investment required
in capital and assets to operate. The exit barriers are also high due to government
regulations and restrictions. This makes firms within the industry reluctant to leave the
business, and these continue to produce even at low profits. This makes the rivalry
among existing firms a stronger force within the industry.
 The strategies of the firms within the industry are diverse, which means they are unique
to

each other in terms of strategy. This results in them running head-on into each other
regarding strategy. This makes the rivalry among existing firms a strong force within the
industry.
How Renewable Energy Group Inc can tackle the Rivalry Among Existing Firms?
 Renewable Energy Group Inc needs to focus on differentiating its products so that the
actions of competitors will have less effect on its customers that seek its unique products.
 As the industry is growing, Renewable Energy Group Inc can focus on new customers
rather than winning the ones from existing companies.
 Renewable Energy Group Inc can conduct market research to understand the supply-
demand situation within the industry and prevent overproduction.
Implications of Porter Five Forces on Renewable Energy Group Inc
By using the information in Renewable Energy Group Inc five forces analysis, strategic
planners will be able to understand how different factors under each of the five forces affect
the profitability of the industry. A stronger force means lower profitability, and a weaker force
means greater profitability. Based on this a judgement of the industry's profitability can be
made and used in strategic planning.
6.3 SWOT Analysis:-
thebalancesmb.com


SWOT analysis is a strategic planning tool that can be used by Renewable Energy Group, Inc.
managers to do a situational analysis of the organization . It is a handy technique to evaluate
the present Strengths (S), Weakness (W), Opportunities (O) & Threats (T) Renewable Energy
Group, Inc. is facing in its current business environment.
The Renewable Energy Group, Inc. is one of the leading organizations in its industry.
Renewable Energy Group, Inc. maintains its dominant position in market by carefully analyzing
and reviewing the SWOT analysis. SWOT analysis a highly interactive process and requires
effective coordination among various departments within the organization such as – marketing,
finance, operations, management information systems and strategic planning.
The SWOT Analysis framework enables an organization to identify the internal strategic

factors such as -strengths and weaknesses, & external strategic factors such as -
opportunities and threats. It leads to a 2X2 matrix – also called SWOT Matrix.
The Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis / Matrix enables the

managers of the Renewable Energy Group, Inc. to develop four types of strategies:
 SO (strengths-opportunities) Strategies
 WO (weaknesses-opportunities) Strategies
 ST (strengths-threats) Strategies
 WT (weaknesses-threats) Strategies

SWOT Matrix Strategies Objective:-
The central purpose of SWOT matrix is to identify the strategies that a firm can use to exploit
external opportunities, counter threats, and build on & protect Renewable Energy Group, Inc.
strengths, and eradicate its weaknesses.


6.3.1Strengths of Renewable Energy Group, Inc. – Internal Strategic

Factors:-
As one of the leading companies in its industry, Renewable Energy Group, Inc. has numerous
strengths that enable it to thrive in the market place. These strengths not only help it to protect
the market share in existing markets but also help in penetrating new markets.
 Highly successful at Go To Market strategies for its products.
 Automation of activities brought consistency of quality to Renewable Energy Group,

Inc. products and has enabled the company to scale up and scale down based on the
demand conditions in the market.
 Highly skilled workforce through successful training and learning programs.

Renewable Energy Group, Inc. is investing huge resources in training and development
of its employees resulting in a workforce that is not only highly skilled but also motivated
to achieve more.
 Strong dealer community – It has built a culture among distributor & dealers where
the dealers not only promote company’s products but also invest in training the sales
team to explain to the customer how he/she can extract the maximum benefits out of the
products.
 Reliable suppliers – It has a strong base of reliable supplier of raw material thus
enabling the company to overcome any supply chain bottlenecks.
 Good Returns on Capital Expenditure – Renewable Energy Group, Inc. is relatively

successful at execution of new projects and generated good returns on capital
expenditure by building new revenue streams.
 Strong distribution network – Over the years Renewable Energy Group, Inc. has built
a reliable distribution network that can reach majority of its potential market.

 Successful track record of developing new products – product innovation.

6.3.2. Weakness of Renewable Energy Group, Inc. – Internal Strategic

Factors:-
Weaknesses are the areas where Renewable Energy Group, Inc. can improve upon. Strategy
is about making choices and weakness are the areas where an organization can improve
using SWOT analysis and build on its competitive advantage and strategic positioning
 Organization structure is only compatible with present business model thus limiting
expansion in adjacent product segments.
 Limited success outside core business – Even though Renewable Energy Group,
Inc. is one of the leading organizations in its industry it has faced challenges in moving to
other product segments with its present culture.
 Need more investment in new technologJies. Given the scale of expansion and
different geographies the company is planning to expand into, Renewable Energy Group,
Inc. needs to put more money in technology to integrate the processes across the board.
Right now the investment in technologies is not at par with the vision of the company.
 Days inventory is high compare to the competitors – making the company raise
more capital to invest in the channel. This can impact the long term growth of Renewable
Energy Group, Inc.
 Not highly successful at integrating firms with different work culture. As mentioned
earlier even though Renewable Energy Group, Inc. is successful at integrating small
companies it has its share of failure to merge firms that have different work culture.
 Not very good at product demand forecasting leading to higher rate of missed
opportunities compare to its competitors. One of the reason why the days inventory is

high compare to its competitors is that Renewable Energy Group, Inc. is not very good at
demand forecasting thus end up keeping higher inventory both in-house and in channel.
 The marketing of the products left a lot to be desired. Even though the product is a
success in terms of sale but its positioning and unique selling proposition is not clearly
defined which can lead to the attacks in this segment from the competitors.

6.3.3. Opportunities for Renewable Energy Group, Inc. – External Strategic

Factors:-
 New environmental policies – The new opportunities will create a level playing field
for all the players in the industry. It represent a great opportunity for Renewable Energy
Group, Inc. to drive home its advantage in new technology and gain market share in the
new product category.
 The new technology provides an opportunity to Renewable Energy Group, Inc. to

practices differentiated pricing strategy in the new market. It will enable the firm to
maintain its loyal customers with great service and lure new customers through other
value oriented propositions.
 Lower inflation rate – The low inflation rate bring more stability in the market, enable
credit at lower interest rate to the customers of Renewable Energy Group, Inc..
 Opening up of new markets because of government agreement – the adoption of

new technology standard and government free trade agreement has provided Renewable
Energy Group, Inc. an opportunity to enter a new emerging market.
 Government green drive also opens an opportunity for procurement of Renewable

Energy Group, Inc. products by the state as well as federal government contractors.
 Decreasing cost of transportation because of lower shipping prices can also bring
down the cost of Renewable Energy Group, Inc.’s products thus providing an opportunity
to the company - either to boost its profitability or pass on the benefits to the customers to
gain market share.
 New customers from online channel – Over the past few years the company has
invested vast sum of money into the online platform. This investment has opened new
sales channel for Renewable Energy Group, Inc.. In the next few years the company can

leverage this opportunity by knowing its customer better and serving their needs using big
data analytics.
 Stable free cash flow provides opportunities to invest in adjacent product segments.
With more cash in bank the company can invest in new technologies as well as in new
products segments. This should open a window of opportunity for Renewable Energy

Group, Inc. in other product categories.
6.3.4. Threats Renewable Energy Group, Inc. Facing - External Strategic

Factors:-
 Liability laws in different countries are different and Renewable Energy Group, Inc.
may be exposed to various liability claims given change in policies in those markets.
 No regular supply of innovative products – Over the years the company has
developed numerous products but those are often response to the development by other
players. Secondly the supply of new products is not regular thus leading to high and low
swings in the sales number over period of time.
 Shortage of skilled workforce in certain global market represents a threat to steady

growth of profits for Renewable Energy Group, Inc. in those markets.
 New technologies developed by the competitor or market disruptor could be a

serious threat to the industry in medium to long term future.
 Changing consumer buying behaviour from online channel could be a threat to the
existing physical infrastructure driven supply chain model.
 Intense competition – Stable profitability has increased the number of players in the
industry over last two years which has put downward pressure on not only profitability but
also on overall sales.
 Increasing trend toward isolationism in the American economy can lead to similar
reaction from other government thus negatively impacting the international sales.
 Rising raw material can pose a threat to the Renewable Energy Group, Inc.
profitability.

Limitations of SWOT Analysis for Renewable:-
Although the SWOT analysis is widely used as a strategic planning tool, the analysis does
have its share of limitations.
 Certain capabilities or factors of an organization can be both a strength and

weakness at

the same time. This is one of the major limitations Jof SWOT analysis . For example
changing environmental regulations can be both a threat to company it can also be an
opportunity in a sense that it will enable the company to be on a level playing field or at
advantage to competitors if it able to develop the products faster than the competitors.
 SWOT does not show how to achieve a competitive advantage, so it must not be an
end in itself.
 The matrix is only a starting point for a discussion on how proposed strategies could
be implemented. It provided an evaluation window but not an implementation plan based
on strategic competitiveness of Renewable Energy Group, Inc.
 SWOT is a static assessment - analysis of status quo with few prospective changes.
As circumstances, capabilities, threats, and strategies change, the dynamics of a
competitive environment may not be revealed in a single matrix.
 SWOT analysis may lead the firm to overemphasize a single internal or external
factor in formulating strategies. There are interrelationships among the key internal and
external factors that SWOT does not reveal that may be important in devising strategies.

7. Futuristic Scenario of the Renewable

Energy Industry:-
Post-Independence, India's first Prime Minister, Shri Jawahar Lal Nehru while inaugurating the
Bhakra Nangal Dam (having a potential to generate 1500 MW of Power) described it as the
'New Temple of Resurgent India'. However, except hydro power, the other two abundant
energy resources - wind and solar remained untapped in the last 70 years mainly due to lack
of political will and unviability of relevant technologies.
This fact is not hidden from anyone that India is the world's fourth-largest carbon emitter with
its population of 1.3 billion people with power sector contributing majorly to the same. But in
the recent years, India has made significant strides in the renewable energy space. The
Climate Change concern across the Globe has further propelled the Government and Decision
Makers to develop a detailed blue print for clean and sustainable power for all.
As part of the initial commitments to the Paris Climate Accord, India plans to reduce its carbon
emission intensity - emission per unit of GDP - by 33-35% from 2005 levels over 15 years. It is
working towards producing 40% of its installed electricity capacity by 2030 from non-fossil
fuels. This would lead to a significant shift from coal-based power generation to renewable
energy sources. To achieve these challenging statistics, it has to produce 100 gigawatt from
solar, 60 gigawatt from wind, 10 gigawatt from biomass and 5 gigawatt from small hydropower
by 2022.
And this seems quite an uphill task as the renewable energy development in India is still in its
nascent stage. As per the Ministry of Power, Govt. of India, India's energy mix is evolving
slowly with fossil fuels meeting 82% of demand; Coal remaining the dominant fuel with a
57.9% share of total production in 2018. However, there is also a silver lining behind the dark
cloud, with the share of coal in the energy mix projected to fall to 50% by 2040, while the share
of renewables rises significantly. Renewables will overtake gas and then oil by 2020 as the
second largest source of energy production.

As per the International Energy Agency's (IEA) Renewables Report, Solar and Wind represent
90% of the country's capacity growth, which is the result of auctions for contracts to develop
power-generation capacity that have yielded some of the world's lowest prices for both
technologies. The country, which presently has low conventional energy resources in
comparison to the energy needs of the huge population and the swiftly growing economy, can
foster the enormous potential of solar energy. Under the leadership of Prime Minister Narendra
Modi India is committed towards the development of renewable energy infrastructure. The 175
GW target for 2022 and the formation of ISA led by India and France is another example of the
same. Apart from solar, the country is also exploring hydro power potential in the north-eastern
states which are an abode to the hydro power opportunities.
Besides the above, change in the energy mix will also ride upon innovative technologies,
growing energy demand, strong wind and solar resources, policy support, and growing
investments et al and will ensure smart, reliable, clean and affordable energy to over a billion
people with an energy consumption growth of 4.2% p.a., faster than all major economies in the
world, overtaking China as the largest growth market for renewable energy by the late 2020s.
Another research by University of Technology (LUT) in Finland expounds that India has a huge
potential to move into a fully renewable electricity system by 2050, owing to an abundance of
renewable resources. If only we can optimally leverage sophisticated technologies to harness
proactive collaboration with the industry, academia and energy innovation ecosystem, the
region can move straight to affordable renewable systems. Such renewable energy systems
can works mainly on clean energy, solar energy, wind energy and other new age storage
solutions. Solar photovoltaics is the most economical electricity source and batteries satisfy the
night-time electricity demand. In addition to covering India's electricity demand for power, such
system simulation can also cover for seawater desalination and synthetic natural gas beyond
other measures.
With the right investments in such green technologies, India is well positioned to achieve all
this. This is significant given India's burgeoning electricity demand and the persistent supply
demand gap along with the summer shortages and outages, the pursuit towards cleaner

energy sources will have a crucial role in enabling the country's transition to a fully sustainable
energy system. Ensuring those projects secure the necessary financing to enable that
development, however, remains a challenge, with a large proportion of Southeast Asian
projects considered unbankable. The bankability of renewable energy projects has always
been an issue owing to off takers' inability to absorb power and pay for it.
Amongst the various developments that have taken place in the solar and wind power
segments this year, the ones that would have a long-term impact on the power sector include
bidding in the wind segment, which would mean that utilities would not scout for wind sites and
choose wind turbine suppliers through competitive measures. Another vital strand is the
government would tender 20,000 MW of solar capacity, which would perhaps be the largest
block of capacity to be auctioned in a single tranche for the first time globally. The
government's strong resolve to heightened quality standards for imported solar photovoltaic
(PV) modules, enforced through inspections will further help procurers get over 25 years of
module life. This reflects a national commitment to green energy and shows how the country is
fast transitioning towards a renewable-focused economy expediting renewable capacity build-
up and removing the difficulties being encountered by developers and manufacturers.
The future looks bright as nearly 293 global and domestic companies have committed to
generate 266 GW of solar, wind, mini hydel and biomass-based power in India over the next
decade. The initiative would entail an investment of $310 billion-$350 billion. For instance, the
International Finance Corporation, the investment arm of the World Bank Group, is planning to
invest about $6 billion by 2022 in several sustainable and renewable energy programmes in
India.
The Indian power sector has an investment potential of Rs 15 trillion over the next four to five
years, which indicates immense opportunities in power generation, distribution, transmission
and equipment. While there is plenty of capital chasing the opportunities in the renewable
sector, there are several risks that need to be kept in view, including counterparty risks both in
terms of developers and procurers.

The good news is renewable energy storage system market in India is expected to witness
robust growth, over the next decade, once the cost of storage declines, which is likely to
happen because of the sheer volume growth through the electric vehicle route. However, the
success will only be possible when the FAME 2 will meet its desired objectives.
To draw a parallel with other countries, in December TESLA's 100MW Hornsdale Power
Reserve battery system in South Australia delivered 100 MW into the national electricity grid in
140 milliseconds, instantly powering 1,70,000 homes when the Loy Yang coal power plant
suddenly went offline. This testifies, why energy storage has become a complementary
solution for renewable energy, which is seasonal and intermittent for ensuring 24×7, robust
supply of energy. The thrust on solar and wind projects has increased the challenges in
maintaining system stability, which is encouraging developers to support power grid networks
with battery storage to help manage the variations in power supply. Renewable energy
projects backed with battery technology could transform the energy scenario in India.
However, the challenge is to develop a technology that is suitable for large renewable energy
projects. As per industry reports, the deployment of energy storage is anticipated to grow over
40 per cent annually in the next 10 years, with around 80 GW of additional storage capacity.
We have undertaken proof-of-concept in battery energy storage systems, wherein large
lithium-ion battery banks are being deployed in Delhi.
As India's leading renewable energy players with a gross generation capacity of 3,210 MW
through clean non-fossil sources, we are committed to transform the sector in sync with the
government's vision of promoting renewable energy building a total capacity of 20,000 MW by
2025, of which 30-40 per cent would be based on non-fossil fuel. The need of the hour is
addressing the bankability of renewable energy projects which has always been an issue in
India, owing to off-takers' inability to absorb power and pay for it.
The power purchase agreement structure needs to be strengthened further to make renewable
energy projects more bankable. There are states which, owing to their fiscal challenges, are
not encouraging the must-run status of renewables and are forcing such capacities to back
down when wind velocities are unfavourable. The government, therefore, should enforce must-

run status as an obligation for all consumers to buy a good proportion of clean and green
power. We also need to address some challenges faced by power producers which include
high fuel supply risk, time overruns at plants, and the limited paying capacity of the financially
weak distribution utilities due to pre-defined RPOs in their PPAs.
Last but not the least, in order to remain energy positive and to make the most of renewable
energy sources, we will have to parallelly focus on aggressive promotion of energy efficiency
practices as India's Energy demand will witness an exponential spurge owning to the lighting
and cooling requirements due to the varied climatic conditions, the developments in the
Electric Mobility, growth of the Industries as well as rural electrification. The World Bank in its
report titled 'Utility scale DSM opportunities and business models in India' has pegged India's
energy efficiency market at Rs 1.6 lakh /- crore by considering the end use energy efficiency
opportunities which is four times the Rs 44,000/- crore in 2010, against the backdrop of the
success of the Government of India's UJALA scheme to distribute LED bulbs (Bachhat Lamp
Yojana). Till now, over 28 Crore LEDs have been sold across the country which has resulted in
energy savings to the tune of 36,545 MUs and avoided peak demand of 7317 MW. In
monetary terms, savings of around Rs. 14,618/- crores have been achieved. This will also
provide a very good market for companies manufacturing energy efficient lighting and
appliances as well as companies providing DSM solutions
India is facing an acute energy scarcity which is hampering its industrial growth and economic
progress. Setting up of new power plants is inevitably dependent on import of highly volatile
fossil fuels. Thus, it is essential to tackle the energy crisis through judicious utilization of
abundant the renewable energy resources, such as biomass energy, solar energy, wind
energy and geothermal energy. Apart from augmenting the energy supply, renewable
resources will help India in mitigating climate change. India is heavily dependent on fossil fuels
for its energy needs. Most of the power generation is carried out by coal and mineral oil-based
power plants which contribute heavily to greenhouse gases emission.
The average per capita consumption of energy in India is around 500 W, which is much lower
than that of developed countries like USA, Europe, Australia, Japan etc. However, this figure is

expected to rise sharply due to high economic growth and rapid industrialization. The
consumption of electricity is growing on the worldwide basis. Energy is a necessity and
sustainable renewable energy is a vital link in industrialization and development of India. A
transition from conventional energy systems to those based on renewable resources is
necessary to meet the ever-increasing demand for energy and to address environmental
concerns.
A Glance At Renewable Energy Sources In India:-
1) Solar Energy
Solar power, a clean renewable resource with zero emission, has got tremendous potential of
energy which can be harnessed using a variety of devices. With recent developments, solar
energy systems are easily available for industrial and domestic use with the added advantage
of minimum maintenance. Solar energy could be made financially viable with government tax
incentives and rebates.
An exclusive solar generation system of capacity of 250 to kWh units per month would cost
around Rs. 5 Lacs, with present pricing and taxes. Most of the developed countries are
switching over to solar energy as one of the prime renewable energy source. The current
architectural designs make provision for photovoltaic cells and necessary circuitry while
making building plans.
2) Wind Energy
Wind power is one of the most efficient alternative energy sources. There has been good deal
of development in wind turbine technology over the last decade with many new companies
joining the fray. Wind turbines have become larger, efficiencies and availabilities have
improved and wind farm concept has become popular. It could be combined with solar,
especially for a total self-sustainability project.
The economics of wind energy is already strong, despite the relative immaturity of the industry.

The downward trend in wind energy costs is predicted to continue. As the world market in wind
turbines continues to boom, wind turbine prices will continue to fall. India now ranks as a ‘wind
superpower’ having a net potential of about 45,000 MW only from 13 identified states.
3) Hydro Electric Power
India has a huge hydro power potential, out of which around 20% has been realized so far.
New hydro projects are facing serious resistance from environmentalists. Resettlement of the
displaced people with their lands becomes major issue.
4) Biomass Energy
Biomass energy can play a major role in reducing India’s reliance on fossil fuels by making use
of thermo-chemical conversion technologies. In addition, the increased utilization of biomass-
based fuels will be instrumental in safeguarding the environment, creating new job
opportunities, sustainable development and health improvements in rural areas. Biomass
energy could also aid in modernizing the agricultural economy. A large amount of energy is
expended in the cultivation and processing of crops like sugarcane, food grains, vegetables
and fruits which can be recovered by utilizing energy-rich residues for energy production. The
integration of biomass-fuelled gasifies and coal-fired energy generation would be
advantageous in terms of improved flexibility in response to fluctuations in biomass availability
with lower investment costs.
Proposed Guidelines for Power Consumers in India:-
Explore all possibilities to set-up an independent power plant making use of renewable
resources like solar, wind and biomass.
• Use of government / utility electricity supply, only in case of emergency.

• Energy savings by using low wattage / high luminous lamps (LED).
• Use of power factor improves.
• Regular maintenance and servicing of electrical equipments.

• Avoidance of inverters and large storage batteries (except emergency).

• Intelligent power factor correctors to minimize energy losses in capacitor at lower load
conditions.
• Frequent energy audits
Proposed Guidelines for Policy Makers in India
Vigorous promotion of renewable energy by government agencies, corporate, public sector,

academic institutions etc.
• Establishment of national-level body to increase awareness of renewable energy at grass-

root level
• Financial support and sponsorship for research and development in renewable energy
technologies.
• Ambitious goals and targets for power generation non-conventional sources.
• Installation of solar / wind / biomass power generation systems and energy saving in every
government office to encourage and inspire people.
• Restriction on using large battery energy storage systems.
• Compulsory installation of solar water heating systems for all urban residential and
commercial establishments.
• Mandatory renewable energy systems provision for new residential, commercial and
industrial buildings.
• Attractive incentives and subsidies for installation and successful operation of renewable
energy equipment.
• Abolishing duties / taxes on import of small-scale renewable energy generating equipment
• Cultivation of energy crops on marginal and degraded land
• Use of biofuels in vehicles.
• Soft loans for setting up renewable energy enterprises.
• Additional incentives for buyers and manufacturers of renewable energy equipments in
rural areas.

Guidelines for Research Professionals
Development of comprehensive educational and awareness modules for renewable energy

systems.
• Development of cost-effective, high-efficiency and long-lasting photovoltaic cells.

• Development of high efficiency wind turbines, ranging from 300 W – 10 kW, to generate
energy even at low wind velocity.
• Development of small-scale, low maintenance biomass gasifiers to make use of abundant
biomass resources in rural areas for cogeneration

8. Conclusion:-
With 300 clear sunny days, over a dozen perennial rivers and a coastline of more than 7,500
KMs, India since the age of Puranas, had realised the importance of the sun and other sources
of renewable energy and the power they possess for the benefit of its inhabitants.
There is an urgent need for transition from petroleum-based energy systems to one based on
renewable resources to decrease reliance on depleting reserves of fossil fuels and to mitigate
climate change. In addition, renewable energy has the potential to create many employment
opportunities at all levels, especially in rural areas. An emphasis on presenting the real picture
of massive renewable energy potential, it would be possible to attract foreign investments to
herald a Green Energy Revolution in India.

9. Bibliography:-
https://www.environmentalscience.org/renewable-energy
https://yffpindia.wordpress.com/2015/07/12/scope-of-renewable-energy-in-india/
https://www.ibef.org/industry/renewable-energy.aspx
https://www.indiary.org/en/legal-advice/Renewable-Energy-in-India-Current-Status-and-Future-
Potential-2-79-429
https://www.investopedia.com/terms/g/gross_profit_margin.asp
https://www.investopedia.com/terms/o/operatingmargin.asp
https://www.investopedia.com/terms/n/net_margin.asp
https://www.ubaconsultants.com/en/services/financial-investment-management/cost-structure-
analysis
https://corporatefinanceinstitute.com/resources/knowledge/finance/coverage-ratio-overview/
https://www.investopedia.com/terms/r/returnonequity.asp
https://www.investopedia.com/terms/r/returnoninvestment.asp
https://www.investopedia.com/terms/d/dupontanalysis.asp
https://www.investopedia.com/terms/e/eps.asp
https://www.investopedia.com/terms/d/dividendpayoutratio.asp
https://www.investopedia.com/terms/p/price-earningsratio.asp
https://www.investopedia.com/terms/s/sustainablegrowthrate.asp
https://www.moneycontrol.com/financials/suzlon%20energy/consolidated-ratiosVI/SE17
https://www.moneycontrol.com/financials/inox%20wind/consolidated-ratiosVI/IW

https://www.moneycontrol.com/financials/nhpc/consolidated-ratiosVI/N07
https://www.moneycontrol.com/financials/sterling%20%20wils/consolidated-ratiosVI/SWS
https://www.moneycontrol.com/financials/bf%20utilities/consolidated-ratiosVI/BFU
https://www.moneycontrol.com/financials/sjvn/consolidated-ratiosVI/S11

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RENEWABLE ENERGY INDUSTRY 2019

and associated technologies. Put simply, renewable

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A History of Renewable Energy:-

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having access restricted when a producing country deliberately cuts a supply.

Renewable Energy: The Figures

 2% as non-biomass heat energy

 8% from hydro electricity generation

 2% of electricity generated from geothermal, biomass, wind and solar power

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 Carbon Emissions & Climate Change

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2. Growth and Evolution:-

2.1 Current Scenario of Renewable Energy in India:-

1. Robust Demand: With the growing Indian economy, the electricity consumption is

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projected to reach 15,280 TWh by 2040.

2. Increasing Investments: With Indian government’s ambitious targets, the sector

Renewable Energy Targets:

Installed grid interactive renewable power capacity (excluding large hydropower) as of

Source Total Installed 2022 Target

Capacity (MW) (MW)

Wind Power 34,046 60,000

Solar Power 21,651 1,00,000

Biomass Power (Biomass & Gasification and 8,701 10,000

Small Hydro Power 4,486 5,000

TOTAL 69,022 1,75,000

2.2 Product Profile: Different Renewable Energy Sources (RES)

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Advantages of Hydroelectric Power

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cost of a kilowatt-hour of energy produced by hydroelectricity was 3-5c.

Disadvantages of Hydroelectric Power

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2.2.2 Tidal Power:-

Tidal power is not yet common but it has

of reasons. Tidal power generators come in

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Advantages of Tidal Power

Disadvantages of Tidal Power

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We can be pedantic and point out that the

was. Interest began in the 19 th century with

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produces energy from light, this produces energy from heat.

Advantages of Solar Power

Disadvantages of Solar Power

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2.2.4 Wind Power:-

There are few countries in the world that

natural processes of the planet's

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Advantages of Wind Power

Disadvantages of Wind Power

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generation will be needed to make up any potential shortfall.

One of the most intriguing concepts of