emis insight - india renewable energy sector report

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Renewables Sector

India

June 2015



Table of Contents

I. Renewable Energy Sector Overview

1. Sector Highlights

2. Main Indicators

3. Forecast

4. Economic Importance

5. Energy Production

6. Energy Consumption and Installed Capacity

7. Renewable Energy Consumption

8. Renewable Energy Capacity

9. Renewable Energy Capacity By Region

10. Prices and Costs

11. Bank Financing

12. Foreign Direct Investment

13. Manpower

14. Regulatory Framework

15. Government Policy

II. Wind Power

1. Subsector Highlights

2. Government Policy

3. Consumption

4. Installed Capacity

5. Installed Capacity By Region

6. Forecast

III.Solar Power


2. Consumption

3. Installed Capacity

4. Photovoltaic

IV.Other Renewable Energy Sources


2. Biomass And Biofuel

3. Biomass Capacity

V. Main Players

1. M&A Deals

2. M&A Activity

3. TATA Power

4. TATA Power (cont’d)

5. Orient Green

6. Adani Power

7. NTPC

8. NTPC (cont’d)

9. NHPC



I. Renewable Energy Overview

India’s fiscal year runs from Apr 1 to March 31. Thus, FY 2015 (also called fiscal 2015) means Apr 1, 2014 – Mar 31, 2015. In Indian documents, FY (fiscal) 2015 is also labeled FY14-15.

The remaining nine months of calendar 2015, i.e. Apr-Dec, belong to fiscal year 2016.

In order to better align with calendar years and make international comparisons more meaningful, in this report, EMIS has chosen to label data by the year in which most of the result occurred.

Unless otherwise stated, in this report, 2014, for example, means the 12 months between Apr 1, 2014 - Mar 31, 2015, or what in India is referred to as FY 2015.

When sources have not provided details on their year labeling policy, year labels in graphs and tables featured in this report appear as provided by the source.



Sector Highlights

As of April 2015, more than 70% of the aggregated installed power capacity in India is in the public sector (about 30% in the central sector and

about 41% in the state sector). The ownership structure is quite different when it comes to renewables, as almost 90% of the capacity is private

sector owned.

A quarter of the renewable power capacity is installed in Tamil Nadu, 17.8% - in Maharashtra; 14% - in Gujarat; 12.6% - in Karnataka.

Among the problems in the sector are also the lack of appropriate regulations for trade with renewable energy outside the state of generation and

the inadequate grid connectivity, which hinders fast and full evacuation of the produced power. Regulatory issues include the differences in the

transmission charges among states, difficulties in land acquisition and statutory clearances.

Providing financing at reasonable cost is also a challenge. With about 70% of the funding coming from debt, the average interest rate is above 13%.

Thus the high cost of renewable energy generation relative to other conventional sources turns into important limitation for the sector development.

Active government support programs and the recent inclusion of renewable energy in the priority sectors for credit, might provide decisive liquidity

support.

India’s renewable energy sector witnessed quick expansion in the last decade. Installed capacity almost tripled during the 11th five year plan (2007-

2012), increasing from 7.7GW to more than 24 GW in 2014. The strongest expansion was registered in wind energy capacity addition (increase of

10.3GW), followed by small hydropower plants (up by 1.4GW). Solar power generation also shows good growth potential. Policy switches and

unresolved structural problems have recently deterred sectoral growth. For the 2012-2014 period, the achievement of targets for generation of

renewable energy was 76.7%, 84.2% and 108% for each of the three years. The underperformance in the first two periods was due to

discontinuation of some incentives under the wind power sector and delay in obtaining forest area clearances and court cases in some of the states

under small hydropower sector. With the restoration of the benefits in FY 2015 an overachievement of target was reached.

Sector dynamics

Challenges

Ownership



Source:

Key Indicators

Main sector indicators

CEIC; CEA; BP statistical review of energy, June 2015; 1-India’s Central Statistics Office has started publishing GDP data using FY2011-2012 as a

base year. So far only data for FY12-FY15 is available under the new methodology (NAS 2011-2012); 2- calendar years

2010 2011 2012 2013 2014

Electricity, gas and water supply (INR bn, constant

prices)1 - 2.0 2.1 2.1 2.3

Electricity, gas and water supply (share of GDP,

constant prices)1 - 2.5% 2.4% 2.3% 2.3%

FDI in Energy sector (USD mn)2 1,208 1,712 730 560 1,093

Renewable energy consumption 33.8 40.9 48.4 55.2 61.5

Renewable energy capacity installated (MW) 18,455 24,504 27,542 31,692 35,777

Wind energy consumption (TW/h) 21.7 26.4 31.2 34.8 38.4

Wind cumulative capacity installed (MW) 13,065 16,179 18,420 20,150 22,465

Solar (PV) cumulative capacity addition (MW) 69.9 189.5 236.2 480.6 731.0

Biomass consumption (TW/h) 11.8 14.0 15.9 17.5 18.7

Biofuel production (thou, b/doe) 2.3 3.9 4.2 5.0 6.4



Source:

Sector Forecast

Comments

Official targets for capacity addition in 2014-2022 (MW)

Total Electricity Demand (GW/h)

BMI forecast1 for renewable energy sector

Working Group on Power for the 12th Plan; MNRE; 1-BMI e- estimation, f-forecast

The prospects for the sector development are very good, due to the population dynamics and favourable macroeconomic fundamentals.

The conventional power is experiencing difficulties, due to regulatory burdens and fuel shortage and renewables are getting more attractive.

After coming into power in 2014, the current government acknowledged renewables power as one of the priorities for future promotion. The energy targets to be reached at the end of the 13th programing period (i.e. March 2022) were pushed up. The good track record of the winning party in solar power development resulted in expectations for quick revival and expansion of the sector and first signs for upward dynamics in the segment are visible.

1,09

5,55

5

1,17

4,07

4

1,25

8,22

1

1,34

8,39

9

1,44

3,32

6

1,54

4,93

6

1,65

3,70

0

1,77

0,12

0

1,89

4,73

6

2013 2014 2015 2016 2017 2018 2019 2020 2021

Product 2014e 2015f 2016f 2017f 2018f 2019f 2020f 2021f 2022f

Generation (TWh) 45.3 51.4 58.6 66.2 73.5 82.0 90.7 99.6 107.8

Generation(%

change yoy) 13.6 13.5 14.1 12.9 11.0 11.6 10.6 9.9 8.1

Generation (KWh

per capita) 35.7 40.1 45.2 50.5 55.4 61.2 67.0 72.9 78.1

Generation (% of

total electricity) 3.8 4.1 4.4 4.6 4.9 5.1 5.3 5.5 5.6

Capacity (MW) 29,856 33,346 37,769 42,666 47,351 52,496 57,740 63,315 68,341

Capacity (% yoy) 13.1 11.7 13.3 13.0 11.0 10.9 10.0 9.7 7.9

Capacity (% of

total capacity) 12.0 12.7 13.5 14.3 14.9 15.6 16.3 16.8 17.0

Product Solar

Power Wind Small Hydro Biomass

Northern Region 31,120 8,600 2,450 4,149

Western Region 28,410 22,600 125 2,875

Southern Region 26,531 28,200 1,675 2,612

Eastern Region 12,237 - 135 244

North-Eastern Region 1,205 - 615 -

Total 99,533 60,000 5,000 10,000



Source:

Economic Importance

India’s GDP at constant prices

Electricity, gas and water supply (constant prices)

Energy Demand-Supply Gap (GW/h)

Comments

CEIC; CEA;

With growing economy and population, India’s energy demand also

keeps increasing, while electricity shortages are not uncommon.

India traditionally has a negative balance in overall energy

consumption and production. This has resulted in the need to

purchase energy from abroad to cover domestic demand.

The deficit has gradually declined and halved between 2012 and

2014 in both actual and relative terms. The balance improved to -4%

in the period Apr 2014-Mar 2015.

861,

591

936,

913

996,

277

1,00

2,21

7

1,06

8,92

3

788,

355

857,

952

909,

349

959,

829

1,03

0,78

5

-8.5% -8.4% -8.7%

-4.2% -3.6%

2010 2011 2012 2013 2014

Demand Supply Balance, %

2.02 2.07

2.13 2.26

2.47%

2.40%

2.32%

2.29%

2011 2012 2013 2014

INR bn share of GDP

82.06 86.10 91.78 98.65

4.9%

6.6%

7.5%

2011 2012 2013 2014

GDP, INR bn Change, yoy



Comments

Source:

Energy Production

The constantly increasing energy demand in India resulted in strong rise in electricity production. The country’s share in world electricity generation rose

from 3.6% at the beginning of the century to 5.1% in 2014. The increase could have been even stronger in case the government capacity addition targets

had been met.

Almost 60% of the installed capacity is in coal based power plants, which keeps coal as the key fuel for electricity generation. However, the official forecast

for coal demand in FY2017 shows requirement/availability gap of almost 200 mn tonnes, suggesting huge dependence on coal import, possible pressure

on power generation and rising importance of other energy source such as renewables.

Industrial Production Index (FY2005=100) Target/Achievement for Capacity Addition in Various Five Year Plans (MW)

CEIC; BP statistical review of energy, June 2015;

1,100

2,250

4,520

4,579

10,202

14,226

21,401

1,643

19,015

21,180

54,964

200

1,250

2,490

4,685

2,297

5,440

844

28,895

21,230

19,930

23,736

1st Plan

2nd Plan

3rd Plan

4th Plan

5th Plan

6th Plan

7th Plan

8th Plan

9th Plan

10th Plan

11th Plan

Achieved Capacity Addition

Target-Achivement Gap

165

170 172 172

177

180

138

149

155

165

179

177

120

130

140

150

160

170

180

190

2010 2011 2012 2013 2014 Apr'15

Overall Index Electrisityc



Source:

Energy Consumption and Installed Capacity

World consumption breakdown by fuel, 2014 (mtoe)*

India’s Installed Energy Capacity (May 2015)

India consumption breakdown by fuel, 2014 (mtoe)*

Comments

BP statistical review of energy, June 2015; CEA; *-calendar year

The share of renewables in total energy capacity of India stood at

13.1% as at May 2015. The ratio has risen from 2% in 1995.

Nonetheless, renewable sources represent only 2.2% of total energy

generation. The reason is that the capacity factor for renewables is

much lower than for other energy sources like thermal plants.

Oil- 4,211

Coal- 3,882

Natural gas- 3,066

Hydro- 879

Nuclear- 574

Renewables- 317

Oil- 181

Coal- 360

Natural gas- 46

Hydro electric- 30

Renewables- 14

Nuclear energy- 8

Coal, 165,258MW

60.6%

Gas, 23,062MW

8.5%

Diesel, 994MW 0.4% Hydro,

41,632MW 15.3%

Renewables, 35,777MW

13.1%

Nuclear, 5,780MW

2.1%



Source:

Renewable Energy: Consumption

Country-wise renewable energy consumption (2014; share in world consumption)*

India renewables consumption*

BP statistical review of energy, June 2015; * - renewables excl. hydro power; data for calendar year

20.5%

15.4%

10.0%

5.1% 4.9% 4.7% 4.4% 4.2% 3.7%

USA China Germany Spain Brazil Italy India UK Japan

8.6 10.0 14.6

17.7 21.1

27.9

33.8

40.9

48.4

55.2

61.5

60.5%

17.4%

45.4%

20.8% 19.5%

32.4%

20.9% 21.0% 18.5%

13.9% 11.5%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Consumption, MW/h Consumption yoy growth



Source:

Renewable Energy: Capacity

Comments

Installed Capacity as at the end of the period, MW

Renewable energy capacity addition in the 11th Plan (MW)

Type-wise renewable energy capacity addition in 2014 (MW)

CEA; 12th Plan; EMIS calculations

The renewable energy capacity addition accelerated significantly in the past years, rising from 7,761 MW in 2006 to 24,503 MW in FY 2011.

The installation of renewable power capacity in the eleventh five year planning period (Mar 2007-Mar 2012) significantly surpassed the initial targets. That resulted in setting ambitious goals for the current period.

The target for the twelfth five-year plan (ending Mar 2017) is addition of 30,000MW of renewable energy capacity. As of May 2015 (three years into the period) the added capacity stood at 11,273 MW.

10,260

1,419

626

46

1,370

940

9,000

1,400

500

80

1,200

50

Wind

Small Hydro

Biomass power

Waste to energy

Bagasse cogeneration

Solar power

Target Actual

0.0 18.1 902.0 1,628.4

7,760.6

24,503.5 27,541.7

31,692.1

35,777.0

6th Plan 7th Plan 8th Plan 9th Plan10th Plan11th Plan 2012 2013 2014

1,112.1

2307.6

251.7 405.0

8.5

Solar Wind Small hydro Biomass Waste to energy



Comments

Source:

Renewable Energy: Capacity By Region

The Southern and Western regions account for about 42% and 36% of total renewables capacity in India. The leading states are Tamil Nadu

(23.5%), Karnataka (12.6%), Andhra Pradesh (5.4%) and Maharashtra (17.3%), Gujarat (13.2%), and Madhya Pradesh (4.4%).

Region-wise capacity distribution, May 2015 (MW) Top states - capacity addition in 2014 (MW)

CEA; EMIS calculations

Southern 15,117

Western 12,795

Northern 7,157

Eastern 434

North-Eastern 262

Islands 11

1,320.3

524.9 415.5

558.1 678.0

287.4

746.1

162.2 85.0

Tam

il N

adu

Kar

nata

ka

And

hra

Pra

desh

Mah

aras

htra

Mad

hya

Pra

desh

Gyj

arat

Raj

asta

n

Utta

r P

rade

sh

Him

acha

l Pra

desh

Southern region Western region Northern region



Source:

Comments

Prices and Costs

Regarding the cost competitiveness of the sector, a recent study by the U.S.-based Climate Policy Initiative and Indian School of Business

stated that compared to imported coal, the cost of wind power is already competitive, thus requiring no additional government support while

the cost of solar power is expected be competitive by 2019.

On the one hand, the solar energy in India currently costs up to 50 % more than power from sources like coal, according to Reuters estimates.

Prices Electricity (yoy %)

CEIC; Reuters; Climate Policy Initiative

-5

0

5

10

15

20

25

2010 2011 2012 2013 2014 Apr'15

Electricity total Domestic Commercial Agriculture Industry



Source:

Bank Financing

Bank credit stock in power infrastructure Comments

Financing for the power sector rose from 11% to more than 19% of the total bank lending to industry between 2004 and 2014. As at end April 2015, it represented 21.3% of credit stock, rising by 15.4% yoy in the month.

In regard to lending for renewable power projects, there used to be no compulsion or incentive for banks to lend to the specific segment, which often resulted in conventional power projects (much more developed market) crowding out the renewable energy ones (developing market and still relatively riskier). Banks have recently exhausted their limits to lend to power sector companies (incl. generators and distribution companies) and have no capital left to finance renewable energy projects even if they want to.

Therefore, in April 2015, the central bank included renewable energy in the group of priority sectors, to which banks are obliged to lend at least 40% of their net credit. Banks can provide loans up to INR150mn to borrowers for solar, biomass, wind, and small hydropower generation, and also for renewable energy based public utilities like street lighting systems and remote village electrification. For individual households, the loan limit has been set to INR 1mn per borrower. There are no requirements for preferential interest rates to the priority sectors.

In February 2015, Yes Bank made the first green bond issue in India, attracting INR 5bn, which would be lent to renewable energy projects. In March 2015, India’s Export-Import Bank sold USD 500mn of green dollar bonds and, according to Clean Technica, is expected to issue another USD 1,000mn in the following 2 to 5 years.

Another option for financing is attracting foreign direct investors. As much as 100% of the funding for renewable projects is allowed through the automatic route i.e. without official approval.

Reserve bank of India; Government of India; cleantechnica.com

430 601

733

951

1,244

1,878

2,674

3,309

4,158

4,883

5,576 5,652

27.3%

40.0%

21.9%

29.7% 30.9%

50.9%

42.4%

23.8%

25.7%

17.4%

14.2% 15.4%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Apr'15

Credit, INR bn Credit, yoy growth



Source:

Foreign Direct Investment

FDI Inflows in Power sector (calendar years)

FDI Inflow in Non-conventional energy (calendar years)

Sector wise Equity Inward FDI (2000-Apr2015)

CEIC; Department of Industrial Policy and Promotion

Services sector 17.2%

Construction development

9.7%

Telecommunications 6.9%

Computer software and

hardware 6.0% Pharmaceutica

ls 5.3%

Automobile industry 5.0%

Chemicals 4.2%

Power 3.9%

1,20

7.7

1,71

1.6

730.

5

559.

5

1,09

2.7

72.6

5.75% 6.21%

3.21%

2.54%

3.80%

0.93%

2010 2011 2012 2013 2014 Jan-Feb'15

FDI in Power sector, USD mn FDI in Power sector, % of total FDI

475.

5

432.

0

637.

3

928.

1

610.

4

92.0

2.26%

1.57%

2.80%

4.21%

2.12%

1.18%

2010 2011 2012 2013 2014 Jan-Feb'15

FDI in Non-conventional energy, USD mn

FDI in Non-conventional energy, % of total FDI



Source:

Manpower

Manpower at the beginning of the respective Plan period (thou person)

Comments

Man/MW ratio at the end of the various planning periods

Working group on Power for the 12th period

1.8 1.4 1.1

0.9 0.7

2.2 2.0

1.7 1.6 1.4

4.0

3.0

2.3 1.9

1.6

7.5

5.4

4.4

3.7

3.3

9.4

7.0

5.6

4.7

4.2

9th 10th 11th 12th 13th

Thermal incl. Renewables Hydro

Nuclear Transmission & Distribution

Overall

For the targeted total power capacity addition of about 100,000 MW in the 12th plan, the additional workforce requirement is estimated at 400,000 workers of whom about ¾ need to be technicians. An outlay of INR 41.1 bn has been proposed for their training.

The total manpower in the energy sector at the end of the 12th period (2016) is estimated at 1.4 mn people. Another 550,000 would be required in the 13th Plan and in FY2022 the employed in the sector is forecasted at 1.79 million.

169 203 75 81 17 19 37 41

866

1,082

-100

100

300

500

700

900

1,100

1,300

1,500

12th 13th

Distribution

Transmission

Nuclear

Hydro

Thermal



Source:

Regulatory Framework

Energy Act

2003

and

Energy

Conservation

Act 2001

Integrated

Energy

Policy

Renewable

Regulatory

Fund

Mechanism

The Energy Act combined several existing pieces of legislation and its primary

goal was to accelerate growth of the power sector.

With the Energy Conservation Act 2001 was put focus on energy efficiency,

through introducing standards, labeling and energy conservation building

codes.

The Integrated Energy Policy: Report of the Expert Committee, published in

late 2006, offers a framework for all policies regarding production, distribution

and usage of energy resources. It examines the renewable sector regulatory

framework emphasizing the importance of shifting from capital subsidies

towards performance incentives.

The objective of the RRF includes forecasting of wind and solar power

generation, promoting bilateral trading of renewable energy, supporting the

investment in renewable energy projects and encouraging wind and solar

producers to participate in scheduling, among others.

The implementation of the RRF mechanism is delayed.

Like the IEP and RRF,

there are many reports

and plans on the role of

the renewable sources in

energy generation, but

most of them have not

met the required political

commitment for

implementation.

The regulatory base for

renewables is spread in

different acts. There is

no unified law that sets a

full framework for

renewable energy

development in India.

Many of the regulation

applicable for

renewables are effective

also for conventional

power generation, thus

reducing the incentive for

creating greener power

sector.

India Wind Energy Outlook 2012



Source:

Government Policy (cont’d)

How does the

system

work?

RECs

The Central Electricity Regulatory Commission (CERC) determines the tariffs for renewable energy based power

generation applicable to central government power stations and inter-state power transmission. Most of the producers are

however covered by the tariffs determined by the State Electricity Regulatory Commissions (SERC). SERC set the tariff

for all renewable energy projects across the states. The incumbent power Distribution Companies (DISCOM) provide grid

connectivity to the renewable energy project sites, which usually are situated in remote locations away from major load

centers.

The Renewable Energy Certificates (RECs) were introduced in 2010 and are used for inter-state trading of renewable

power. They are used as a proof of the generation of 1MW renewable energy. The certificates can be traded through a

power exchange platform within price range set by CERS and are differentiated into solar and non-solar renewable

sources. Those certificates are time-constrained, being effective only for 365 days, which makes them difficult to get

accepted by financial institutions. The supply of energy on the REC market has increased recently, but the effectiveness of

the market (in terms of sold REC) is still low, as the purchases by DISCOM is minimal.

RPOs

DISCOMs and some large power consumers are obliged to purchase minimum ratio of their total power from renewable

sources. That percentage is called Renewable purchase obligation (RPO). The long-term objective for India is RPO to

reach 15% by FY2020, but SERC set the annual targets for solar and non-solar sources among different states and thus

determine the mid-term RPO trajectory. There are, however, substantial problems with the compliance as the entities in the

majority of the states continue to remain below the RPO trajectory. In some states there was even a reduction in the PRO

targets in order to accommodate the concerns of utilities. One of the reason for the lack of demand in renewable energy is

the financial difficulties (high debt) of the state-owned distribution companies.

The discussion of possible introduction of penalties on DISCOMs as a measure to tackle the non-compliance is another

evidence that renewable energy market is still not fully operational in India.

India Wind Energy Outlook 2012; The Economic Times; India Power Sector.com



II. Wind Energy








Wind Power Sector Highlights

Sector

overview

India, along with China, is among the countries with the highest wind capacity addition growth on the global market

in the past five years. Installed capacity almost quadrupled since 2006 from 6.3 GW to 22.4 GW in 2014. After

overachievements during the 10th and 11th plans, the12th plan for 2012-2016 has a reference target of 15GW.

Another scenario envisages that the capacity could reach 20GW , while 25GW is set as an aspirational target.

In India, as well as in many other countries with developing renewable energy markets, due to the unreliability of

wind power, its growing share target in the electricity mix presents operational challenges to grid operators. The

underdeveloped transmission system in the country could be a big spur for the segment development.

Market

segmentation

India’s wind industry was highly fragmented. When the market started developing, as a result of the tax incentives

and other financial benefits offered by the government, many companies entered the segment. For good part of

them the wind power generation was not a core activity and most of the producers did not have much experience in

the field, but were attracted by the possibility of tax depreciation benefits.

In the last years, there is a clear trend towards selling wind assets to generate cash and exit the non-core activities.

There is a surge of acquisitions of small wind power plants and a concentration of the market is underway.

According to a Bloomberg report, wind utilities, such as Goldman Sachs-backed ReNew Wind Power Pvt., Morgan

Stanley-backed Continuum Wind Energy Pte and IDFC Ltd.’s Green Infra Ltd. unit are seeking to amass GW-scale

portfolios to reduce generation costs, in some cases to lower than those for new coal-based power projects.



Source:

Government Policy

NWEM

Wind power accounts for most of the renewables energy generation in India with a share of about 70%.

In early June 2014, the government announced it will support the development of the segment by launching National Wind

Energy Mission (NWEM). The NWEM was supposed to start operating in mid-2014. It is, however, still awaiting the formal

consent from the Prime Minister. NWEM will offer investment incentives, identify high wind power potential zones, ease

land clearances and regulate tariffs. It will also aim at strengthening the grid infrastructure.

Incentive

For many years, wind power government incentives have played a major role in the wind power growth. The industry could avail of

both accelerated depreciation (AD) and generation-based incentives (GBI). AD was a capital incentive, which offered faster

depreciation of 80% in the first year of the power machinery operation. GBI is an example of performance incentive. The scheme

offers support of INR 10mn for every MW of generated wind energy between the fourth and tenth year of the projects operation.

Both schemes were withdrawn in 2012 and only GBI was re-included in the budget in 2013 and extended till Mar 2017 (end of the 12th

planning period). According to market sources, the removal of subsidies, along with inadequate grid infrastructure for power

evacuation and delays in payments by DISCOM have affected negatively the capacity addition in the past two years.

IREDA

Indian Renewable Energy Development Agency (IREDA) was established by the government as an independent

specialised Public Sector undertaking under the renewable energy ministry. It is a public limited company, whose main goal

is to translate the policies of government of India into action through promoting, developing and financing new and

renewable sources of energy (NRSE) technologies.

As of March 2014, IREDA held about 8% of total wind power capacity in India.

Indian Wind Tribune Manufacturers Association; Global Wind Energy Outlook;



Source:

Government Policy (cont’d)

Budget for

FY 2015-2016

The renewable energy ministry has revised the target for renewable energy to 175,000 MW by 2022, which includes

60,000 MW of wind power.

The following changes came into effect as of 1st March 2015.

Tariff rate of BCD on iron and steel and articles of iron or steel has been increased from 10% to 15%. The effective rate

remains the same.

For claiming BCD and CVD exemption on import of goods for mega power projects, bank guarantee will now be

required to be submitted for an extended period of 66 months instead of earlier 36 months.

Effective median excise duty rate increased from 12.36 % to 12.50 %.

Excise Duty exemption granted on pig iron SG grade and ferro-silicon-magnesium for manufacture of cast components

of wind operated electricity generators, subject to approval by the renewable energy ministry.

Basic customs duty on active energy controller (AEC) for use in the manufacture of renewable power systems (RPS)

inverters is being reduced to 5 % subject to certification by the renewable energy ministry.

The following changes came into effect with the enactment of finance bill.

Increase in clean energy cess from INR100 to INR200 per ton on coal, lignite and peat.

Effective service tax is proposed to be increased from 12.36% to 14%. ²

An enabling provision proposed to be incorporated in finance act for levying a 2 % Swachh Bharat cess on the value of

service on specific services.

Indian Wind Tribune Manufacturers Association;



Source:

Wind Energy Consumption

Top countries by wind consumption, 2014 (TW/h)*

According to the Center for Wind Energy Technology,

India’s wind power potential is 102,778 MW at 80

meters height at 2% land availability (2011).

If that potential is fully utilised, wind sources would

provide only about 8% of the forecast electricity

demand in 2022 (end of the 13th Plan) and 5% of the

demand in 2035.

Another research on wind potential, made by the

US-based Lawrence Berkeley National Laboratory ,

suggests capacity ranging from 2,006 GW at 80

meters to 3,121 GW at 120 meters. renewable

energy ministry has signed a memorandum of

understanding with the laboratory for co-work on the

estimation of wind resource potential and grid

integration.

With many of the older wind turbines being low-

capacity ones, another measure for energy

generation increase is the repowering (replacement

with modern large capacity machines). There are,

however, no policy guidelines or incentives on the

subject.

India’s wind consumption (TW/h)*

Comments

BP statistical review of energy, June 2015; India Wind Energy Outlook 2012; * - Data for calendar year

183.6

158.4

56.0 52.3 38.4 31.6

USA China Germany Spain India UK

21.7

26.4

31.2 34.8

38.4 19.5% 21.3% 18.3%

11.7% 10.3%

2010 2011 2012 2013 2014

Consumption, TW/h Consumption yoy growth



Source:

Wind Energy Installed Capacity

Top countries by cumulative installed wind turbine capacity (MW , Dec 2014)

India’s cumulative installed wind turbine capacity (MW)*

BP statistical review of energy, June 2015; * - Data for calendar year

91,460

66,146

40,500

22,987 22,465

12,809 9,684 9,143 8,556

China USA Germany Spain India UK Canada France Italy

3,000 4,430

6,270 7,845

9,655 10,926

13,065

16,179

18,420 20,150

22,465

875

1,430

1,840 1,575 1,810

1,271

2,139

3,114

2,241

1,730

2,315

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Capacity Capacity addition



Source:

Wind Power Capacity By Regions

Comments

Break-up of installed capacity as at Mar 2014 (kW)

State-wise installed wind capacity (as at 30 Sep 2014)

Indian Wind Tribune Manufacturers Association;

Tamil Nadu 33.4%

Gujarat 16.1%

Maharashtra 19.0%

Rajasthan 13.3%

Karnataka 11.5%

Andhra Pradesh 4.1%

Madhya Pradesh 2.4%

Kerala 0.2% Others 0.01%

Wind generation in India is highly concentrated in the southern and western territories, as about 95% of the installed capacity is in Tamil Nadu, Karnataka, Maharashtra and Gujarat, while Rajasthan is another fast developing state. Almost 35% of the installed capacity is in Tamil Nadu. However, the pace of new addition has decelerated substantially lately, as the companies in the state are facing difficulties to evacuate the power produces due to poor infrastructure, industry representatives were reported as saying. According to the Indian Wind Turbine Manufacturers Association, installed wind energy capacity stood at 23,511MW as of April 2015.

<=500 kW 501 to 1000 kW 1001 to 1500 kW 1501 to 2000kW >2000 kW Total

Andhra Pradesh 88,240 267,400 54,000 144,400 184,800 738,840

Gujarat 199,705 1,295,250 1,179,750 317,200 413,700 3,405,605

Karnataka 62,745 1,099,250 778,950 295,850 94,500 2,331,295

Kerala 225 33,600 - - - 33,825

Maharashtra 297,345 922,960 1,775,500 748,650 280,200 4,024,655

Madhya Pradesh 26,700 200,200 103,750 - 25,200 355,850

Rajasthan 52,725 1,049,050 929,000 264,000 514,650 2,809,425

Tamil Nadu 1,731,155 2,310,950 2,204,600 775,650 232,250 7,254,605

Total Capacity 2,458,840 7,178,660 7,025,550 2,545,750 1,745,300 20,954,100



Source:

Wind Power Forecast

India - total wind power capacity - new policies scenario

GWEC - Global Wind Energy Outlook, Oct 2014

India - total wind power capacity - moderate scenario

India - total wind power capacity - advanced scenario

The scenario is based on assessment of

current directions and intentions in both

national and international energy and climate

policy, even though they may not yet have

been incorporated into formal decisions or

enacted into law.

In addition to the new policies scenario, this

one takes into account existing and planned

national and regional targets for the uptake of

renewable energy in general and wind energy

in particular, and assumes that they are in fact

met.

This is the most ambitious scenario – best case

growth. It assumes an unambiguous commitment to

renewable energy in line with industry

recommendations, the political will to commit to

appropriate policies and the stamina to stick with

them.

22,138 25,121

47,896

83,188

22,465

2014 2015 2020 2030

Forecast Historical data

22,138 25,121 49,111

125,382

22,465

2014 2015 2020 2030

Foracast Historical data

22,268 25,445 55,872

154,207

22,465

2014 2015 2020 2030

Forecast Historical data



III. Solar Energy








Subsector Highlights

Overview

Due to its geographic location, India has about 300 days of sunshine per annum, average daily solar radiation of 4-6

kWh per sq meter and average annual temperatures between 25°C and 27°C. These provide for India’s very good

solar power potential. The sunniest territories are on the southeastern coast (Calcutta – Madras).

Solar energy in the country includes photovoltaic energy (PV) and concentrated solar power (CSP or solar thermal

power). Currently, the solar power generation in India is predominantly through PV, since the CSP projects require

longer preparation period and the production process is more water-consuming.

The market is highly dependent on cheap imported solar PV modules.

National

Solar

Mission until

2013

The development of the solar energy generation is set in the Jawaharlal Nehru National Solar Mission (NSM).

Under the Mission in three phases up to 2022 the grid-connected solar power should expand to 20,000 MW, while

the off-grid installation has to reach 2,000 MW.

The first phase (2010 to 2013) aims at setting up a favourable environment to enable solar technology penetration at

a centralised and decentralised level. It targets grid connection of 1GW - 2GW and off-grid solar applications of

200MW.

National

Solar

Mission

Post 2013

The second phase (2013 to 2017) aims at providing fast competitive solar energy penetration with enforcement of a

mandatory renewable purchase obligation for utilities, backed by a preferential tariff. The grid-connected capacity should be 4,000MW-10,000MW with another 1,000MW off-grid and 15 mn sq meters solar hot water collectors. After a relatively successful first phase however, there was substantial delay in the second one.

By the end of the last phase (2017 to 2022), grid-connected capacity should reach 100,000 MW (increased in Jun 2015 from initial 20,000MW). The target should comprise of 40 gw rooftop and 60 gw through large and medium scale grid connected solar power projects.

The total investment in setting up those 100 GW will be around INR 6,000 bn.



Subsector Highlights (cont’d)

Solar plants

in Uttar

Pradesh

Half a dozen companies have reached agreement with the government of Uttar Pradesh for the construction of solar

power plants, newspaper Pioneer reported in June 2015. The total capacity of the plants, whose capacity ranges

from 5MW to 10MW, will be 225MW. The firms will sell power to the state grid for 25 years. The price is yet to be

determined. The companies are Adani Group, Zee Group and Sukheever Agro Energy Ltd among others.

PV solar

panels

production

In January 2015, India’s Adani Power and US firm SunEdison announced plans to invest up to USD 4bn in what

would be India’s largest solar panel manufacturer, Reuters reported. The plant will be constructed in the state of

Gujarat and is expected to be built in 3 years and create 20,000 work places. The project would provide low-cost

photovoltaic solar panels, thus boosting solar energy generation in the country. Further details are yet to be

announced.

Development

of solar cities

The program is designed to spur the adoption of renewable energy technologies and energy efficiency measures by local governments. Under the scheme, the government provides INR 5mn per city (INR 1mn for preparation of a Master plan, INR 1mn for setting up of solar cell and its functioning for a period of three years; INR 1mn for oversight of implementation during three years and INR 2mn for capacity building). The Solar City should reach a minimum 10% reduction in projected demand of conventional energy at the end of the five-year period as all types of renewable energy based projects like solar, wind, biomass, small hydropower, waste to energy etc. may be installed along with possible energy efficiency measures depending on the need and resource availability in the city. Cities with population between 50,000 and 5,000,000 people can apply. At least one and a maximum five cities per state can be supported by the program to a total of 60 cities. As on January 15, 2015 sanctions at a total cost of INR 227.3mn for 48cities have been issued for Master plan, solar cells and promotional activities. About INR 49.6mn have been extended.



Comments

Source:

Solar Energy: Consumption

Despite the favourable climate, solar energy production is still underdeveloped in India. In 2014, the country accounted for 2.4% of the global

solar energy consumption, compared with 2.1% in 2013 and 0.8% in 2010.

Solar consumption in 2014 (% of world consumption)* Solar consumption (TW/h)*

BP statistical review of energy, June 2015; *-Data is for calendar years

18.8%

15.7%

12.7%

10.4% 10.0%

7.3%

2.4%

Germany China Italy Japan US Spain India

20

3

11

4 2

9

1

26

6

19

6 4

12

1

31

16

22

11 9

13

3

35

29

24

19 19

14

4

Germany China Italy Japan US Spain India

2011 2012 2013 2014



Source:

Solar Energy: Installed Capacity

County-wise cumulative installed photovoltaic power, 2014 (MW)*

India’s cumulative installed photovoltaic power (MW)*

BP statistical review of energy, June 2015; * - Data for calendar years

38,200

28,199

23,300

18,460 18,280

5,660 5,358 5,228 4,136 3,074 731

Germany China Japan Italy USA France Spain UK Australia Belgium India

1 1 1 2 3 24 70

190 236

481

731

1 0 0 1 1

22

46 120

47

244 250

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Cumulated capacity Capacity addition



Source:

Photovoltaic Solar Power

World PV Installation (2010-2011)

One of the requirements for a project to be elligible

for the Mission was the so-called domestic content

requirement (DCR). It was included in the guidelines

to promote the creation of domestic solar

manufacturing industry and is extended over the

production of crystalline silicon modules. Thin film

technologies are exempted from the DCR, and could

be imported, thus resulting in lower costs of the

modules and creating uneven advantage for

introducing thin film PV against silicon PV.

The interim report on NSM (April 2012) has

concluded that the domestic content requirement has

shifted the market towards thin film PV, as they are

used in more than 50% of the projects, a larger

proportion than the global average. They are

however less efficient, thus requiring more land.

As at June 4, 2014, the tentative manufacturing

capacity of cells and modules in India was as follows,

suggesting very low capacity utilisation:

Cells: Installed capacity – 1,368MW;

Capacity under operation: 297MW;

Solar modules: installed capacity – 2,756MW;

Capacity under operation – 1,304 MW;

India PV Installation (2010,2011)

Comments

Interim Report on National Solar Mission, 2012; MNRE

Thin film 14.0%

Silicon 86.0%

Thin film 55.0%

Silicon 45.0%



IV. Other Renewables

India’s fiscal year runs from Apr 1 to March 31. Thus, FY 2015 (also called fiscal 2015) means Apr 1, 2014 – Mar 31, 2015. In Indian documents, FY (fiscal) 2015 is also labeled FY14-15


In order to better align with calendar years and make international comparisons more meaningful, in the Major Players section of this report, EMIS Insight has chosen to label data by the year in

which most of the result occurred. Unless otherwise stated, in the Major Players section of this report, 2014, for example, means the 12 months between Apr 1, 2014 - Mar 31, 2015, or what in

India is referred to as FY 2015. This applies to Indian companies only and may not apply to companies with global operations, which may be presented in this report.




Subsector Highlights

Small Hydro

Projects

India has hydropower potential of 150GW, of which about 84 GW are economically exploitable. As a number of structural

issues hinder the development of large capital-intensive projects, the focus shifts towards smaller scale hydro projects with

output of up to 25MW. According to the renewable energy ministry estimates, the potential for small hydro power projects is 15

GW at almost 5,500 sites. Most of the potential is in the Himalayan states (river-based projects) and in other states that offer

irrigation.

As at March 2015, the small hydro projects in India had total capacity of 4,055MW. In FY2014-2015, the target for new

capacities of 250MW was overachieved by 1.6MW. There is potential for projects with a combined capacity of about 19GW.

The private investment in the segment is low, as interest rates are high and make the debt financing expensive. Despite having

high growth potential, the market niche is still undeveloped and riskier compared to other energy projects.

The renewable energy ministry reported that as of end January 2015 there were 27 manufacturers of small hydro power

turbines who fabricate almost the entire range and type of SHP equipment listed in the renewable energy ministry.

Manufacturers’ capacity is estimated at about 400 MW per year.

Biomass

Cogeneration

According to Energy Alternatives India, the country produces about 450mn-500mn tonnes of biomass annually. In different studies the country’s energy potential is estimated at between 18,000MW and 50,000MW.

The leading states for biomass power projects are Andhra Pradesh, Chattisgarh, Maharashtra, Madhya Pradesh, Gujarat and Tamil Nadu. The installed capacity reached about 1,400MW as at end FY2014-2015, but the addition in the last fiscal was substantially below the 100 MW target at 45MW.

Bagasse cogeneration is predominantly developed in Andhra Pradesh, Tamil Nadu, Karnataka, Maharashtra and Uttar Pradesh. The installed capacity as at March 2015 reached 3,008MW. The target of 300MW I new capacity addition in FY 2014-2015 was overachieved by 60MW.

“Removal of Barriers to Biomass Power Generation in India” (2006-2014) is a project between the United Nations and MNRE, which supports green- and brownfield biomass projects in the country. The funding support is more than USD 5.6 mn.

Recent market reports suggest not so favourabe development of the segment, with claims that more than half of the country’s grid-connected power plants that run on biomass have either shut down or are on the verge of shutting down, due to competition within the biomass power industry and from other industries like cement and brick kilns.



Source:

Biomass And Biofuels

Top countries in geothermal and biomass consumption, 2014*

India’s biofuel production*

India geothermal and biomass consumption (TW/h)*

Comments

BP statistical review of energy, June 2015; MNRE; * - Data for calendar year

The biomass availability in India is about 500mn tonnes per annum.

The potential is estimated at about 120-150mn tonnes per year or

app.18,000 MW. Additional 5 GW could be generated through

bagasse cogeneration in sugar mills.

11.8 14.0 15.9 17.5 18.7

21.1%

18.5%

13.7%

10.5%

6.6%

2010 2011 2012 2013 2014

Consumption, TW/h Consumption yoy growth

2.3

3.9 4.2

5.0

6.4

60.2%

70.2%

8.3%

19.5%

29.1%

2010 2011 2012 2013 2014

Production, tou b/doe Production yoy growth

16.8%

11.1% 9.7% 9.3%

5.3% 5.3% 4.5%

3.7%

USA Brazil Germany China Japan Italy UK India



Source:

Biomass Capacity

State-wise biomass capacity as on 31 Mar 2015 Comments

As at March 2015, there were 165 biomass power plants with a total capacity of about 1400 MW.

Ministry of New and Renewable Energy (MNRE) is promoting efficient utilisation of biomass like agro-industrial and agricultural residues including paddy straw for power generation in the country. Fiscal incentives such as accelereated depreciation, concessional customs duty, excise duty exemption, 10 years income tax holiday and preferential tariff are provided for biomass power projects.

The renewable energy ministry also provides Central Financial Assistance of INR 2.5mn per MW in special category states (North-eastern region, Sikkim, Jammu and Kashmir, Himachal Pradesh and Uttaranchal) and INR 2mn per MW for other states with a cap of INR 15mn per project. The renewable energy ministry reported that it has allocated about INR132.2mn as Central Financial Assistance for biomass power projects during the last three years. There are also incentives for bagasse co-generation by private and public sector sugar mills.

The renewable energy ministry commented that some of the biomass projects have been facing problem of non-viable operations due to high price of biomass and low tariff of electricity in some states.

Government of India

State Capacity (MW)

1 Andhra Pradesh 288

2 Chhattisgarh 250

3 Gujarat 31

4 Haryana 14

5 Karnataka 108

6 Madhya Pradesh 26

7 Maharashtra 198

8 Orissa 20

9 Punjab 69

10 Rajasthan 101

11 Tamil Nadu 212

12 Uttar Pradesh 54

13 West Bengal 26

Total 1,395



V. Main Players




Unless otherwise stated, in this report, 2014, for example, means the 12 months between Apr 1, 2014 - Mar 31, 2015, or what in India is referred to as FY 20145 This applies to Indian companies

only and may not apply to companies with global operations, which may be presented in this report.




Source:

Deals

Top M&A in Jul’2013- Jun’2015

DealWatch

Date Target Company Deal Type Buyer Country of Buyer Deal Value

USD mn

Stake

%

8.6.2015 Applied Solar Technologies India Pvt Ltd MSP Future Fund; Bessemer Venture Partners; Capricorn Investment Group; International

Finance Corporation (IFC)

Australia; United States;

International 40 47

14.5.2015 Wind power assets of Techno Electric Acquisition Buyer(s) unknown in this case - 33 100

4.5.2015 4 wind farm operating subsidiaries of Fersa Energias

Renovables SA Acquisition SunEdison Inc United States 33 100

20.3.2015 Inox Wind Ltd IPO

Sundaram Asset Management Co Ltd; IDFC Asset Management Co Ltd; SBI Funds

Management Pvt Ltd; Grandeur Peak Funds; BlackRock Inc; Reliance Capital Ltd

(RCL); Morgan Stanley Investment Management Inc; Tata AIA Life Insurance Co Ltd;

Birla Sun Life Asset Management Co Ltd; Kotak Mahindra Bank Ltd (KMB); The

Goldman Sachs Group Inc; Swiss Finance Corporation (Mauritius) Ltd; Indus India

Fund (Mauritius) Ltd; Fidelity Worldwide Investment; Buyer(s) unknown in this case

India; United States;

United Kingdom; Bermuda 168 14

11.2.2015 Green Infra Ltd Acquisition Sembcorp Industries Ltd Singapore 170 60

9.10.2014 SolarArise India Projects Pvt Ltd MSP Kotak Mahindra Bank Ltd (KMB); European Investment Bank India; International 33 -

22.9.2014 Wind energy business of Bharati Shipyard Acquisition Ghatge Patil Group India 9 100

14.8.2014 Grapp Energies Pvt Ltd; Green Ripples Pvt Ltd Acquisition Solargise United Kingdom 200 -

28.7.2014 Three India-based wind projects of Atria Power MSP GE Energy Financial Services United States - -

24.7.2014 Orange Powergen Pvt Ltd MSP AT Capital Group Singapore 40 -

3.7.2014 ReNew Power Ventures Pvt Ltd MSP The Goldman Sachs Group Inc; Asian Development Bank; Global Environment Fund United States; Philippines 140 -

23.6.2014 CaptureSolar MSP Concept Solutions & Innovation Cyprus 125 -

20.6.2014 Welspun Renewables Energy Pvt Ltd MSP Asian Development Bank; DEG - Deutsche Investitions- und

Entwicklungsgesellschaft mbH Philippines; Germany 88 -

10.6.2014 KSK Energy Ventures Ltd SPO Qualified Institutional Investors - 68 10

25.4.2014 151 MW solar photovoltaic power project of Welspun MSP GE Energy Financial Services United States 24 -

20.1.2014 Greenko Group MSP Undisclosed investor(s) - 9 2

8.12.2013 ACME Solar Energy Acquisition EDF Energies Nouvelles; EREN France - 50

15.11.2013 Green Infra Ltd MSP CDC Group PLC United Kingdom 25 -

22.10.2013 Claro Energy MSP Angel investors - - -

9.10.2013 AES Saurashtra Windfarms Pvt Ltd Acquisition Tata Power Co Ltd India 24 100

26.8.2013 Two wind farms in Madhya Pradesh Acquisition Continuum Wind Energy Singapore - 100

16.8.2013 TVS Energy Ltd. Acquisition Green Infra Ltd India - 90

5.7.2013 150 MW Gujarat wind mill project Acquisition Bharat Light and Power Pvt Ltd India 53 100



Source:

M&A Activity, Jul’2013-Jun’2015

Number and Value of Deals in India’s Renewable sector

Number of Deals by Deal Type (%)

Number of Deals by Deal Value, USD (%)

Number of Deals by Region of Investors* (%)

DealWatch, EMIS calculations; *Others include investors from more that one region

53.4

49.4

8.5

304.

8

389.

1

32.5

337.

9 106.

7

3

4

1

4

5

1

2

3

Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun

2013 2014 2015

Total value of deals (USD mn) Number of Deals

Acquisition 43.5%

Minority stake purchase

47.8%

IPO 4.3%

SPO 4.3%

India 17.4%

Europe 17.4%

North America 13.0%

Asia 13.0%

Others 21.7%

Unknown 17.4%

0-50mn 43.5%

Undisclosed 21.7%

50.1-100mn 13.0%

100.1-500mn 21.7%



Highlights

Source:

TATA Power

Financial Performance (INR bn)

Other Indicators (INR bn)

Tata Power is among India’s leading privately-held power

producers with a significant international presence.

As of April 2015 the company had an installed generation

capacity of 8,750MW of which 1,383 MW are clean and

renewable energy capacity. Tata Power has a presence in

all the segments of the power sector - generation (thermal,

hydro, solar and wind), transmission, distribution and

trading. It is also a partner in a number of public-private

projects in power generation, transmission and distribution

in India.

The company’s biggest unit – the thermal ultra mega power

project in Mundra, which caters for about 2% of the total

power need in India and half of Tata power generation.

In terms of revenue, about 72% of the company’s revenue

come from the power segment, and 23% - from the coal

segment. The profit structure is again dominated by the

power segment (80%), followed by coal (18%).

The company is listed on both leading Indian bourses –

Bombay Stock Exchange and National Stock Exchange. As

of April 2015 Tata Power capitalization on the BSE stood at

USD 3.02bn.

Company data (consolidated); BSE; EMIS calculations

189.

9

194.

6 260.

2

330.

3

356.

5

195.

7

198.

6 262.

7

333.

9

357.

0

21.4

20.6

-10.

9

1.0

-0.3

2009 2010 2011 2012 2013

Operating Revenue Total Revenue Net Profit

Product 2010 2011 2012 2013 2014

EPS 8.79 -4.98 -1.23 -1.61 0.17

Total Assets 503.4 616.1 672.8 714.0 754.43

Shareholders

Equity 2.4 2.4 2.4 2.4 2.7

Net Debt 213.9 282.3 331.6 336.2 357.0



Highlights

Source:

TATA Power

TPREL financial results (INR mn)

Tata Power Solar

Tata Power Renewable Energy Ltd (TPREL) was

established in 2007 and is headquartered in Mumbai.

It engages in the generation and sale of power from

renewable energy sources in India.

Tata Power has an installed hydro capacity of 573MW.

In consortium with Norway-based SN power TATA is

developing 780MW Dugar Hydro project in India.

Another 400MW are under development abroad.

In 2014 TPREL acquired 39.2MW operating wind farm

at Saurashtra in Gujarat from AES Corporation.

Another 24MW were commissioned in April 2015 at a

wind farm in Rojmal, Gujarat. Thus the total wind

capacity increased to 511MW. Another 150MW are

under construction and are planned to be finalised in

the current fiscal.

The company had 59MW installed solar capacity. It

has partnered with the Australian Sunengry Pty Ltd. to

build the first floating solar plant in India.

In mid May TPREL announced that it plans to expand

its wind and solar power capacity and is considering

both organic and inorganic expansion, it would buy

completed projects as well as projects with

clearances, which are yet to be executed.

Company data; Bloomberg

Tata Power Solar was founded in 1989 as a joint venture

between Tata Group and BP Solar. In 2012 it became part of

Tata Group. The company is headquartered in Bangalore

and operates in three distinct segments – cutting-edge

manufacturing, EPC services for solar power projects and

creating innovative solar products. It has about 700

employees and operates 200 MW and 180 MW of module

and cell manufacturing facility in Bangalore, being India’s

leading solar manufacturer.

2012 2013 2014

Revenue 142.6 651.4 896.5

Net profit 9.5 11.1 44.1



Highlights

Source:

Orient Green

Financial Performance, INR bn

Other Indicators (INR bn)

Orient Green Power Company Ltd., headquartered in

Chennai, is the largest independent operator and

developer of renewable energy power plant in terms of

total installed capacity. The company has developed

energy projects based on biomass, biogas, wind, as

well as small hydro projects.

As of Feb 2015 Orient Green operates aggregate

capacity of 535.23MW, of which 429.2 MW are wind

energy projects and 106 MW are biomass projects.

The company targets 81MW capacity installation.

Orient Green’s wind turbines are located in the states

of Tamil Nadu (1), Gujarat (4), Kerala (2) and Andhra

Pradesh (3). On the international market, projects

have been commenced in Sri Lanka and Croatia.

The 12 operating biomass energy projects are in the

states of Tamil Nadu (4), Maharashtra (2), Andhra

Pradesh (1), Madhya Pradesh (1) and Rajasthan (4).

Orient Green plans to enter the small hydro energy

generation market through joint ventures so as to

benefit from the experience of the partners. Currently

the company has a 15MW plant in Orissa, eastern

India.

Orient Green is listed on the Bombay Stock Exchange

and the National Stock Exchange of India.

Company data;

1.8

2.2

4.2

4.1

4.9

2.1

2.5

4.5

4.2

5.0

0.1

-0.8

-0.8

-2.1

-2.4

2010 2011 2012 2013 2014

Operating Revenue Total Revenue Net Profit (before minority interest)

Product 2010 2011 2012 2013 2014

EPS 0.29 -1.48 -1.49 -3.31 -4.10

Equity Share 4.7 4.7 4.7 5.7 5.7

Assets 24.6 35.6 35.4 35.1 32.6

Net debt 5.1 10.9 16.2 19.0 19.1



Highlights

Source:

Adani Power


Other indicators

Founded in 1988 and based in Gujarat, Adani’s activities include coal mining, cargo handling ( of the coal) and power generation and transmission.

Regarding energy production, the company has specialized in thermal power through Mundra Thermal Power project. At the beginning of April 2014, the company added the fourth 660MW unit to the project.

In Dec’11 the company entered the solar power market, commissioning 40MW PV plant in the Kutch district, Gujarat.

In Feb 2015 Adani was said to have sing Memorandum of understanding with the government of Rajasthan to set ap a 10GW solar park over the next 10years.

In June 2015 Business Standard reported that Adani is to invest INR 50bn in establishing 700MW solar plant in Tamil Nadu. The investment will be part of company’s target of 10,000 MW capacity by 2022.

Adani has total installed power capacity of 8,620MW, thus being among the top private players. It accounted for 15% of the total new capacity addition in India in FY 2014.

The company has five subsidiaries – in Maharashtra, Rajasthan, Dahej, Pench and Kutch. In 2012 the subsidiaries Mundra Power SEZ Ltd., Adani Power Pte Ltd., Singapore and Adani Power (Overseas) Ltd., UAE have been closed and Adani has disinvested its entire holding in Adani Shipping Singapore.

Company’s shares are traded on The National Stock Exchange and the Bombay Stock Exchange.

Company data; Business Standard; Cleantechnica.com; BSE

21.4

40.9

67.8

157.

7 195.

2

21.5

42.4

69.7

159.

5 195.

4

5.1

-2.9

-23.

0 -2.9

-8.2

2010 2011 2012 2013 2014

Operating Revenue Total Revenue Net Profit

Product 2010 2011 2012 2013 2014

EPS 2.36 -1.32 -9.59 -1.04 -2.84

Equity Share

(INR bn) 21.8 21.8 23.9 28.7 28.7

Assets

INR bn) 349.9 513.8 549.6 546.9 -



Highlights

Source:

NTPC


Other indicators

NTPC was set up in 1975 as a state-owned enterprise. Initially the company operated only as a thermal power provider and although it’s still the mainstay of the company, NTPC has spread its activities into consultancy, power trading, ash utilization and coal mining.

Present installed capacity of NTPC is 44,798 MW (including 5,974 MW through JVs) comprising of 38 NTPC stations (17 coal based stations, 7 combined cycle gas/liquid fuel based stations; 7 Joint Venture stations are coal based and one is gas based; 8 projects are for renewable energy). Company’s target for 2032 is capacity of 128,000MW. The fuel mixture will comprise 56% coal, 16% gas , 11% nuclear and 17% renewable sources (incl hydro).

NTPC put into operation its first renewable energy unit in FY 2013. The company has already commissioned 8 solar projects with total capacity of 110 MW while another 15 MW solar PV and 8 MW Small hydro projects are under implementation. Two wind energy projects in Karnataka and Maharashtra with 40MW capacity each are under tendering. The company plans renewable power capacity addition of about 1,000MW by 2017.

Company’s shares are traded on the Bombay stock exchange and the National stock exchange of India.

Company consolidated data

574.

2

649.

6

706.

1 784.

5

799.

4

123.

9

131.

4

166.

1

144.

9

104.

6

93.5

98.1

125.

9

114.

0

99.9

2010 2011 2012 2013 2014

Net sales of energy Profit before tax Net Profit

Product 2010 2011 2012 2013 2014

EPS 11.34 11.90 15.27 13.83 12.11

Equity Share (INR bn) 82.45 82.45 82.45 82.45 82.45

Assets (INR bn) 1,366.1 1,552.6 1,787.1 2,000.4 2,195.8

Capital employed in energy

generation 505.1 624.0 742.7 870.4 1,007.66

Revenue from energy generation 572.4 654.8 708.6 764.9 779.18

Profit before interest and tax from

energy generation 126.6 133.4 173.3 162.8 133.66



Source:

NTPC

Installed capacity NTPC Group (MW)

Installed capacity by type

Energy generation NTPC Group (Bn units)

Regional spread of generating facilities

Company data

34,2

83

37,1

03

41,2

73

43,1

08

44,3

98

2010 2011 2012 2013 2014

236.

7 240.

3

249.

6

250.

6

260.

5

2010 2011 2012 2013 2014

Number of plants Capacity (MW)

NTPC owned

Coal 17 33,675

Gas/Liquid fuel 7 4,017

Hydro 1 600

Renewable energy 8 110

Total 33 38,402

Owned by JVs

Coal and gas 7 6,196

Total 40 44,798

Coal Gas/Liquid Renewable Total

Renewable 9,015 2,344 35 11,394

Western 10,840 1,313 50 12,203

Southern 4,600 360 10 4,970

Eastern 9,220 - 10 9,230

Islands - - 5 5

Hydro - - - 800

JVs 429 1,967 - 6,196

Total 37,904 5,984 110 44,789



Highlights

Source:

NHPC


Other indicators

Founded in 1975, NHPC Ltd (previously known as National Hydroelectric Power Corporation) is a government enterprise. Initially it was focused only in hydropower generation, but has lately expanded its operation in the conventional and non-conventional energy sources in India as well as abroad.

Company’s principal business activity is electricity generation, but it also involved in the spheres of contract, project management and consultancy.

NHPC installed capacity was 6,507MW as of Mar 2015. The company has 20 operational stations – 18 standalone and 2 with its subsidiary NHDC. Under construction are 4 units with a total capacity of 3,290MW. Nine projects with about 7,500MW capacity are awaiting clearances and 4 (2,120MW) are in pipeline.

In 2014 NPHC generated 22,038MW - the highest ever annual generation.

In Feb 2015 NHPC entered a JV with UPNEDAfor the construction of a 50 MW solar project in Jalaun, Uttar Pradesh, which is to be commenced in May, 2016.

In May 2014 NHPC signed Memorandum of understanding with Kerala State Electricity Board Ltd for development of 50MW grid linked solar plant in Kollam district.

The company has 50MW wind energy project in Rajasthan with scheduled completion in Dec’2015.

It is in the process of signing Memorandum of understanding with the governent of West Bengal for the construction of 4 hydropower projects (three with capacity of about 80MW and one – with 48 MW)

Company’s shares are listed on the Bombay Stock Exchange and the National Stock Exchange of India.

In FY 2015 the market capitalization reached INR 220.3bn compared with INR 211.44bn in FY 2014.

Company consolidated data;

49.6

67.8

61.3

71.2

81.0

32.6

43.5

38.9

25.3

37.2

24.6

34.0

28.7

16.3

28.0

2010 2011 2012 2013 2014

Net sales Profit before tax Net Profit

Product 2010 2011 2012 2013 2014

EPS 1.88 2.51 2.13 1.02 2.25

Equity Share

(INR bn) 123.00 123.00 123.00 110.71 110.71

Assets

(INR bn) 541.7 602.9 623.4 614.0 632.7

Debt equity

ratio 0.63 0.68 0.67 0.68 0.61



Contact:

Corporate Headquarters

6-8 Bouverie Street

London EC4Y 8DD

UK

Voice: +44 20 7779 8100

Fax: +44 20 7779 8224

Americas Headquarters

225 Park Avenue South

New York, New York 10003

US

Voice: +1 212 610 2900

Fax: +1 212 610 2950

Asia Headquarters

Eucharistic Congress Bldg. No.

III

4th Floor, 5 Convent Street

Mumbai 400 001

India

Voice: +91 22 22881123

Fax: +91 22 22881137

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