“About 5,000 trillion kWh per year

energy is incident over India’s land

area with most parts receiving 4-7 kWh
per sq. m per day. Hence both solar
thermal and solar photovoltaics can
effectively be harnessed providing huge
scalability for solar in India”.

INDIA NATIONAL SOLAR MISSION

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INDIA
Harnessing the Sun
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India – Solar Energy: What’s Going On

•Indian National Solar Mission : to set up 20GW by 2022
•State governments’ plans of over 5GW
• 50MW under GBI Scheme(Generation Based Incentive) by 2012
•Grid and Off Grid opportunities like rural, New Cities (SEZs), captive plants for industry,
Defence, Public Sector, roof top.
•Rural Electrification is a big priority for Government.
•Solar cities and parks will be established all around India
•State controlled NTPC to add 315 MW solar energy capacity
•Solar applications will become more popular and common
• PV Module/BOS Manufacturing, Engineering, Monitoring, Accounting systems, parts and
supplies will be create opportunities
•R&D , Education and Training drives started by Government
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India National Solar Mission Roadmap

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State Programs
•Gujarat - 37 Projects for 716 MW ; 3GW with Clinton Foundation
•Rajasthan – 49 proposals for 1524 MW; 100 GW est. potential
•Haryana – 12 MW projects in pipeline
•Punjab - 19 MW projects in pipeline
•Uttrakhand – a renewable energy policy announced
• Maharshtra, Madhya Pradesh – Developing policies and Projects

Existing Installed Solar Energy capacity is only about 4MW

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Off Grid Opportunities

• Remote Village Electrification Programme*

• Power irrigation pump sets
• Back up power generation/replacement of diesel
• Telecom towers
• Captive power generation,
• Urban applications
• City /street and Highway lighting
• Solar water heaters
• Solar cooking for institutional use
(*Indian Govt. -9075 remote villages are still without electricity)
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Risks & Challenges

• Land acquisition remains the Single Biggest Challenge
• Bureaucracy, Corruption
• Conflicting Policies between Federal and State Governments
• Too many regulations, regulators and government agencies to deal with
• Requirement of allocations & permissions like for Land use, Power Evacuation, Pollution,
Water linkage, PwD, Town Planning etc
• Policy Weaknesses – consistency, uniformity (Centre/states Feed in tariffs) , PPAs, Regulatory
framework are untested and weak
• Grid Parity and power fluctuations, Grid Quality, Theft, Non-Payment
• Lack of Experience: Absence of Trained technicians, Engineers and Managers
•Operational hazards – recovery of tariff revenue , power losses, land disputes, stakeholder
problems.
• Partnership Disputes, Repatriation of Dividends
•Policy and Tariffs in flux
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What we offer International Energy Companies

Indian Policy Expertise

+ Execution Capability
+ Local Risk Mitigation +
Technology Protection
+Engineering+Finance
+Operations

We Deliver Results
•
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A Robust Partner for India

• Norasco Offers Cleantech Projects, Technology, Finance and
Execution Expertise.

•Norasco provides India Entry, Strategy for Leadership, Mitigates

Local Risks

•Norasco Green Advisory to Indian cities, industrial houses and

Cluster programs creates opportunities.

We Build Long term Partnerships and remain engaged through the

life of projects.
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India Strategy & Solutions for

• International Module Manufacturers
• International System integrators/EPCs
• BOS Manufacturers/Suppliers
• Indian States/Municipalities/Panchayats (Village Bodies)
• State Transmission Utilities (STUs)
• Developers (IPPs)
• Land Owners
• Project Financiers
• International Foundations
• Industrial Houses/ Entrepreneurs
•Venture Capitalists /Private Equity Investors
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Information

Private & Confidential – for discussion purpose only

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India National Solar Mission Highlights -1

• to set up stand alone rural solar power plants in special category States
and remote, difficult and border areas

• to set up Manufacturing including balance of system components. 4-5

GW per year

• to ensure that transfer of technology is built into Government and

private procurement from foreign sources
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India National Solar Mission Highlights -2

• NTPC’s 100% subsidiary NTPC Vidyut Vyapar Nigam Ltd. (NVVN) is agency for
entering into a Power Purchase Agreement (PPA)
•Central Electricity Regulatory Commission(CERC) has notified levalised tariffs of Rs
18.44/kWh (Euro 0.29) for PV & Rs 13.45/kWh (Euro 0.21) for Thermal for FY
2009-10.
•The key driver to be through a Renewable Purchase Obligation (RPO) mandated for
power utilities, with a specific solar component.
• This could be complemented with a solar specific Renewable Energy Certificate (REC)
mechanism to allow utilities and solar power generation companies to buy and sell
certificates to meet their solar power purchase obligations.
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Current CERC Guidelines for Solar PV India

Capital Cost: Rs.17 Crore/MW (Euro 2.66mn)
Capacity Utilisation Factor: 19%
O&M Expenses :
9 lakhs/MW (Euro 14k) for 1st year of operation ; escalating @5.72% p.a.
Tariff /Project life = Rs 18.44 (Euro 0.29) for 25 years

CERC’s Financial Assumptions for PV plant:

Debt :Equity ratio 70:30
Loan Interest : 14.29%, Loan Repayment : 10 years
Return on Equity: 19% pa(first 1o years) and 24% pa from 11th year
Weighted average Return on Equity : 22%
(CERC-Central Electricity Regulatory Commission) 1 Euro= 64 INR
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Source: MNRE
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Norasco has presence in

New Delhi
London
Moscow
Washington, DC
Limassol, Cyprus
Madrid
Copenhagen
Dubai

Impeccable Record in emerging markets since 1993

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Mr. Sanjay Goyal, CEO

Tel: +44.20.32399882
Fax: +44.20.79002189
Email: norasco@norasco.com

This document is only for information purposes and is work in process.

Norasco does not provide banking, legal, accounting or tax services and
is not regulated by any financial services authority.