europe india chamber of commerce, spain investment opportunities in india in the solar energy sector...
TRANSCRIPT
Europe India Chamber of Commerce, Spain
INVESTMENT OPPORTUNITIES IN INDIA IN THE SOLAR ENERGY SECTOR
Gour Saraff, Director EICC Spain
Incredible INDIA
•
•
•
•
•
•
4th Largest Global Economy
Fastest Growing Free Market Democracy
IT & Engineering Superpower
Rich Mineral Base
Vibrant Capital Market
Large Infrastructure–
–
–
–
2nd largest Rail network
5th largest power market
334 airports, 12 major & 87 minor ports
400 Million telephone connections
US
$ b
n
167
7965 65 63
3622
8 6 4
80
40
160
120
Strong focus to drive infrastructure growth200 Infrastructure Investment (2007-12)
~ US$ 500 bn
0
Source: Planning commission (XIth five year plan)
Government is putting lot of emphasis on infrastructure investment andgrowth
Positive regulatory reforms remain a key driver of growth
Power being the major thrust area
Infrastructure investment may be doubled (~1 trillion) in 12th fiveyear plan (2012-17)
Source EstimatedPotential(GW)
Installed(GW)as31Mar’11
WindPower
48.5 13.18
Biomass&WastetoEnergy
23.7 2.67
SmallHydro
15.0 2.95
SolarPower
30~40MW/sq.km
0.03
India has a large potential for RE
Wind energy constitutes largest commercially exploited RE source in India.
RE capacity is 10-11% of total grid installed capacity base
Barely 20-22% of the total potential has been tapped excluding solar energy
Solar power is merely 0.2% (32.4 MW) of Grid interactive RE power
But potential of Solar power in India is far more thanother RE sources
8
RE Potentialin India
(Source: MNRE, Annual report 2010-11)
Installedcapacity – 18.8 GW (as 31Mar’11)
Small Hydro Power15.7%
Wind Power70.0%
Biomass & Wasteto Power14.2%
Solar Power0.2%
(Source: MNRE, Annual report 2010-11)
153
575
778Power Requirement (GW)
425
306
220
POWER HUNGRY ECONOMY
2006-07 2011-12 2016-17 2021-22 2026-27 2031-32
(Source: Integrated Energy Policy - Planning Commission Report 2006)
• There has been a continuous shotage of power to the tune of average 10~12%
• Economic growth derives for increse in the demand
• Expected demand, at current growth rate of 8%, to cross 750 GW in 2031~32
• A major part of this demand to be fulfilled by Renewable Energy
Blackout a harbinger of power needs to come?
Back
6
India Solar Radiation map
• Every Sq. km of area can generate
40 MW power
• Rajasthan and Gujarat has
abundant and desert and unfertile
land with no other alternative
usage
• 35,000sq. km of desert area set
aside for solar power can generate
14 Lakh MW of power – Equivalent
to 8 times of current generation
capacity
Solar Power PotentialHigh Solar Isolation levels in IndiaThe North Western Partof India(Gujarat & Rajasthan) gets highlevelsof solarradiations, almostthroughouttheyear.
Solar Radiation Map of India
5
GeographicFit
solar irradiation.• 250 to 300 clear sunny days.• Equivalent energy potential is about 5000 trillion
KWh` per year.
• Enabling Policy Framework in place – NationalSolar Mission.
• “Power for all” by 2012 –stated goal of GOI.
Solar Power– Natural Fit for India
• India located in the equatorial belt with high
6
Company history
Source:http://www.oksolar.com/abctech/images/world_solar_radiation_large.gif
Policy Fit
Socio-economic
Fit
• Fossil fuels have finite life – Solar has potential toreduce large energy import bill in the long run.
• Energy security – critical for national security• 10% of solar capable land will reduce emissions
equivalent to 5909 mtoe/year.
• Large areas of barren land in underdevelopedparts of the country ideal for solar power plants.
• Large parts of rural India have no access toelectricity grid.
• Job creation potential high.• Huge potential for manufacturing – can become
global leader in adoption of solar technology.
Jawaharlal Nehru Solar Mission
National Action Plan on Climate Change:• Solar Mission envisaged to give boost to solar power – launched
on 11 January 2010• Large-scale solar power generation an identified thrust area
Solar Mission Aim:• Rapid and large-scale diffusion of solar power generation
14
technologies• Building local manufacturing, R&D and human resource
capability• Reduction of cost to move towards grid parity.
Proposed targets (2022):• 20,000 MW grid-power installed capacity• 2,000 MW off-grid power• 20 mln. sq.m thermal collectors
Cumulative targets under Solar MissionIndia is endowed with vast solarenergy potential:
-About 5,000 trillion kWh/yearenergy is incidentover India’s land
Source: Jawaharlal Nehru National Solar Mission: Towards Building Solar India
AnnualSolarMarketOff-take(MW) 17-18
18-19
19-20
20-21
21-22
Grid-connectedSolarPotential
ResidentialRooftop 1024
1356
3600
5341
7677
UtilityScaleSolarPower(CSPandPV)
1043
2229
3570
5084
8146
Off-gridSolarApplicationPotential
Solar-poweredAgriculturePumpsets
268 563 3969
4639
6730
Solar-poweredTelecomTowers 318 380 414 562 612
TotalAnnualSolarMarket 2653
4528
11553
15626
23165
Tremendous growth projected in Off-Gridsegment
(Source: KPMG in India’s The Rising Sun, May 2011)
10
With decrease in cost of solar power, the residential rooftop and agriculture will be fastest growing segment
Solar power, with its ability to provide day time power, can meet the agriculture power demand from the farmerswithout being connected to grid
Solar power is already competitive with the effective price of diesel based power for Telecom towers. It haspotential to replace ~30% of diesel consumption.
Grid parity in next 10 yearsLevelizedCost Comparisonof Utility-scale PV and ConventionalPower at Grid
17
(Source: KPMG’s Solar Grid Parity Model*Note that the CDM benefit of INR 0.60 / KWH has been factored in the Solar Costs)
In India grid parity to happen in 2019-20 when the levelized tariffs from solarpower are comparable with the levelized tariffs of grid power
The Energy Sector Institutional Structure at Centre...
Government of India
PlanningCommission
Ministry of Coal
Ministry ofPower
Ministry ofPetroleum &Natural Gas
Ministry of NewandRenewable
Department ofAtomic Energy
Ministry ofEnvironment &
Forests
CERC / CEA / BEE
5
India is the only country worldwide to have a dedicated ministry for promotion ofrenewable energy– Ministry of New and Renewable Energy(MNRE)
Central PollutionControl Board
IndianRenewableEnergyDevelopment Agency
Upstream / DownstreamCompanies
Energy
Utilities / NTPC / NHPC/ POWERGRID / PTC /
PFC / REC
Source: Clean Energy: An Exporter’s Guide to India (2008)
…And the RE Institutional Structure at the State Level…
State Government
State RenewableDevelopment Agency
State Electricity RegulatoryCommission
Department ofEnvironment
State PollutionControl Board
Department ofPower
State Utilities / GENCOs /DISCOMs / TRANSCOMs
6
ElectricalInspectorate
Most States have State Nodal Agencies (SNAs) to oversee their respectiveimplementationof renewable energyprograms
Source: Clean Energy: An Exporter’s Guide to India (2008)
Provide the Overall RE Institutional Support Structure
IREDA
Solar Energy Centre /Other R&D Institutes
Ministry of New &RenewableEnergy
(MNRE)
SERCs
CERC / CEAPlanning Commission Ministry of Power / REC Ministry of Finance
Banks / NBFCs /Multilaterals
7
Policy Flow R&D Flow Fund Flow Implementation Flow
NVVN
SDREDAs / SNAs / NGOs /Akshay Urja Shops
State Utilities / GENCOs /DISCOMS / TANSCOMSSolar Cells, Modules &
Systems Manufacturers
End Users & Producers:: Individuals / Corporates/ Government/ IPPs
Source: Framework Adapted from India: Renewable Energy Report (APCTT-UNESCAP); Analysis
Cu
mu
lati
ve
Sola
r C
ap
aci
ty (
GW
)
An
nu
al S
ola
r M
ark
et
(G
W)
India will be the next solar capital of the World
2.02.7
23.2
0.75.2
13.1
44.8
15.6
68.0
10
20
50
40
70
60
80
5
1530
10
25
20
30
35
9
00
2011-12 2014-15 2017-18 2020-21 2021-22
Annual Solar Market
(Source: KPMG’s Solar Market Potential Model)
Till dategrowth was in EuropeCAGR of ~ 60% for both CSP & Solar PVtechnology in the last 5 years in the world
Source: REN21
Cumulative Solar Capacity
Next growth will be in India.By 2021-22, cumulative Solar capacity will be 68 GW
Key DriversStrong Government supportDecreasing cost of Solar powerHuge Off grid requirement of Agriculture/Rural segment
EICC
How can you participate:
Joint venture with Indian partner
FDI
Participate in any area of the value chain:
Production to EPC to Financing to Maintenance
EICC
Gracias y Namaskar.