ADB CSP Program in India

Presentation at Large-Scale Solar Power Development W k h D l t Workshop 9 June 2011 Beijing B iji

Context for ADB Involvement Indias S l E I di Solar Energy Program P ADB Solar Support in India

ADB Energy Policy 2009

Objective
To help DMCs provide reliable, adequate and affordable energy for p p , q gy inclusive growth in a socially, economically and environmentally sustainable way

Key Features

Promoting energy efficiency and renewable energy Promote knowledge management, technology transfer Promoting energy sector reform, capacity building and governance Promoting private sector participation for better efficiency

Asia Solar Energy Initiative

Catalyze 3000 MW of solar projects across Asia over a three year period Asia Solar Energy Forum - Setting up a knowledge management platform on a non-profit basis non-

ADB India Energy CPS

Focus on the generation of and transmission from renewable / low-carbon energy sources. Catalyze private sector participation and the application of clean technologies through innovative PPP g g approaches.

ADB Windows
South Asia Regional Department (Public Sector)
Provides financial and technical assistance related to the energy gy sector to governments and government agencies Sovereign (government guaranteed) or non-sovereign operations with state owned enterprises (w/o government guarantees) Resident Mission leads Country Program work, coordination with government and project implementation

Private Sector Operations Pi t S t O ti

Provides financial and technical assistance to private sector enterprises either through direct loans or guarantees Also i Al invests in clean energy funds t i l f d

ADB Energy Sector Profile in India

ADB Public Sector Operations (2008-10) (2008 Energy Sector lending ~ $ 1558 Million Traditional Focus areas Transmission a d d st but o e pa s o a s ss o and distribution expansion Energy Efficiency Hydropower related Planned Solar energy related interventions Policy Level - Phase 1 of 20,000 MW Solar Mission P j tL Project Level - S l Park projects i Gujarat, l Solar P k j t in G j t Rajasthan and central sector projects Capacity Building Prospects including credit lines to FI

Context for ADB Involvement Indias Solar Energy P I di S l E Program ADB Solar Support in India

India Electricity Requirement

InstalledCapacityRequired(GW)
1200 1000 800 600 400 200 0 200607 201112 201617 202122 202627 203132 PC 8% PC 9%

Source: Integrated Energy Policy Report, Planning Commission (PC)

India Energy Supply Scenarios

DominantCoal(1886MTOE)
76 2 185 486
87 98 35 632 CrudeOil Coal Nuclear l NonCommercial 185 350

ForcedRenewable(1536 ) MTOE)

13

1022 CrudeOil Coal Nuclear l NonCommercial

104 0 NaturalGas Hydro Renewable bl

150 NaturalGas Hydro Renewable bl

Source: Integrated Energy Policy Report, Planning Commission (PC)

Planning Commission outlined need for a solar mission

JNNSM
In 2010, Jawaharlal Nehru National Solar Mission (JNNSM) was unveiled to support eventual development of 20,000 MW of solar power by 2022

Phase 1 (-2013) Grid 1100 MW Off Grid 200 MW

Phase 2 (2014-2017) Grid 4000 MW Off Grid 1000 MW

Phase 3 (2018-2022) Grid 20, 000 MW Off Grid 2000 MW

Source: JNNSM Document, GoI

Different Models
Central sector (JNNSM) Tariff benchmarks based on CERC Agency to coordinate on power purchase and bundling with thermal power for sale to off-takers off New Projects and Migration Scheme State Sector(Gujarat,Rajasthan) State Government policies provide support RPO and tariff decisions by state regulator Typically state trading company coordinate on p power p purchase

CSP Projects
Central Level JNNSM new bidding 470 MW State level Gujarat Solar Park (Charankha) About 150 MW (Charankha) planned Some Issues Technology perceptions Supply Chain Water scarcity Lead time for development

Solar Demonstration Projects

To examine advanced technology configurations not covered under commercial projects that could result in cost reduction. Suggested configurations include solar gas hybrid, air/hybrid cooling, base load solar plant with storage. Feasibility to be assessed and projects to be selected on global bidding basis. Low cost funds for these projects. Comments solicited by MNRE by June 17, 2011

Context for ADB Involvement Indias S l E I di Solar Energy Program P ADB Solar Suport in India

Policy Framework JNNSM

Phase 1
TA Support to MNRE on PPA and eligibility criteria for projects. j Review of domestic lending environment for solar power

Phase 2
Donor coordination to support roadmap for Phase 2 of the NSM (2011)

Project Support Central Level

Demo CSP Projects j under JNNSM (currently under discussion) NTPC - CSP Project Technical Assistance support and possible lending

Project Support - State Level

Solar Parks Masterplan Development and phasing plans Engineering studies for common infrastructure Address stability reliability stability, issues assoc. with evacuation Institutional arrangements Investment models Facilitate stakeholder discussions di ion Safeguard review

Capacity Development
ICASET at IIT Rajasthan
Solar energy R&D Benchmarking of technologies Human resource development

Gujarat
Curriculum design for vocational training programs

Private Sector Financing

Direct Loans to developers for large PV PV, CSP projects Equity investor in RE JV Solar Power Guarantee Facility ($ 150 Million) Milli )
Partial coverage of risks to reduce financing cost T extend l To t d loan tenor f t from l local and foreign banks l df i b k Capacity Building for technical due diligence for local banks

Thank You
For further details, please contact: Yongping Zhai - Director, Energy Division, South Asia Department yzhai@adb.org Ajay Guha - Lead Energy Specialist Energy Division South Asia Department Specialist, Division, aguha@adb.org Naoki Sakai - Senior Climate Change Specialist, Energy Division, South Asia Department nsakai@adb.org Len George Energy Specialist Energy Division South Asia Department Specialist, Division, lgeorge@adb.org