renewable energy - government of tamil...
TRANSCRIPT
RENEWABLE ENERGY SECTOR
Renewable Energy : Indian scenario
Renewable Energy: Tamil Nadu Scenario
Investment Opportunities
Government Support
CONTENTS
Renewable Energy – Global Scenario Renewable energy contributes 1/5th of the global power production. It has the potential to satisfy 100% of the growing global energy demands
78.4%
2.6%
19.0%
Fossil Fuels
Nuclear Power
Renewable energy
Global Renewable energy generation by origin
International Energy Outlook 2011 forecasts energy consumption growth by 53% between 2008 and 2035. It is expected to reach 770 quadrillion Btu India ranks #6 in the global RE capacity with an installed capacity of 27GW (without including hydro)
118
93
78
32
31
27
China
US
Germany
Spain
Italy
India
Renewable power capacity (GW)
Renewable energy share (including-hydro) of global
electricity production is 19%
Renewable energy has had a healthy growth owing to increasing focus through policy shifts
0 50 100 150 200
Countries with Policy targetsFeed-in
RPS / quota policiesTendering Policy
Heat Obligations/mandatesBio-fuel obligations
Number of states/province/country
2013
811
1560
2003 2013G
igaw
att
Global Renewable Power Generation Wind Power
Concentrating SolarThermal Power
Solar PV
Geothermal
Bio Mass
Renewable Energy - Indian Scenario Renewable energy sources currently contribute 30% of the installed capacity and is
expected to increase to 34% by 2017
176.1
4.8
40.8
21.1
3.8
4.0
0.1 2.6
72.5
Installed Capacity Mix in India (GW), 2014
Thermal Nuclear HydroWind Power Small Hydro Power Biomass Power
• For the period 2012-17, the target capacity addition for power sector is 118 GW out of which the target addition for renewable energy is 30,000 MW. This implies that 25% of the planned capacity addition is in the renewable segment
Thermal. 68%
Hydro. 18%
Nuclear. 2% Renewable
. 12%
Fuel wise generation mix, 2013
Thermal. 63%
Hydro. 21%
Nuclear. 3%
Renewable. 13%
Fuel wise generation mix by 2017 – projection
Section 2 – Indian Scenario
Renewable energy investment stemmed from the landmark Electricity Act 2003 and the subsequent policies & instruments.
Electricity Act 2003
•Mandated State Electricity Regulatory Commissions (SERCs) to promote power generation from renewable sources through proper grid connectivity and open access
•Fix certain minimum percentages for purchase of renewable power
National Electricity
Policy 2005
•Further provided for progressive increase in generation of electricity from renewable sources and supported purchases by distribution companies through competitive bidding process
Tariff Policy 2006
•Provided for fixation by SERCs of a minimum percentage of Renewable Purchase Obligation (RPO) from RE sources taking into account availability of such resources in the region and its impact on retail tariffs and procurement by distribution companies at preferential tariffs determined by the SERCs
National Action Plan on Climate
Change 2008
•Outlined existing and future policies and programs addressing climate mitigation and adaptation
•NAPCC has advised that starting 2009-10, RPOs be set at 5% of total grids purchase, and be increased by 1% each year for 10 years.
Policy Instrument Positives for Private sector investment
Feed in Tariffs/ Preferential
Tariffs
Financial as well as economic costs and benefits of RE are not yet factored in FIT.
Accelerated Depreciation Result of which, there is commercial viability in this business
Generation Based Incentives Avenues for additional guaranteed revenues for project developers
Renewable Purchase
Obligation
Readymade market for renewable power sources
Renewable Energy
Certificates (REC’s)
Helps renewable power developers to trade REC's and realise the value of power
Carbon Trading Additional revenue stream for developers to increase their financial returns
Tax Incentives Improved Return on Equity for developer
Renewable Energy - Tamil Nadu
Tamil Nadu is a pioneer in harnessing its renewable energy potential in India as compared to its peers.
#1 State in renewable energy capacity
among all the Indian States #10 global installed capacity of wind power generation units and also #1 in India. #2 installed capacity of cogeneration power plants in the country 39.6% of the total power capacity from renewable energy sources
6636 7504
7999 8219
2011 2012 2013 2014
Renewable Energy Capacity (MW)
CAGR – 7%
Tamil Nadu’s Competitive Advantage
Wind power in Tamil Nadu – Advantageous geographic position and progressive policy initiatives
Ramnathapuram
Theni
Tirunelveli
Kanyakumari
Thoothukudi
Dindigul
Coimbatore
Wind power passes in Tamil Nadu S. No. Areas Annual Average Wind Speeds
1 Palghat Pass, Coimbatore, Erode 18-22
2 Shencottah Pass, Tirunelveli,
Tuticorin 18-22
3 Aralvoimozhi Pass, Kanyakumari 19-25
4 Kambam Pass , Theni District 19-25
5 Palghat Pass, Coimbatore, Erode 18-22
• The regulations allow for sale to third parties through open access.
• Wheeling charges for transmission of power using the network is at 40% of the conventional power.
• The State has allocated USD 377 Million and USD 198 Million in two phases for provision of transmission capacity for wind and solar sources
Progressive policy initiatives
Solar Power in Tamil Nadu – Geographic advantage of tropical region and initiatives to become national leader in solar power by achieving 3000MW
• India has solar incidence in the range of 4 – 7 kWH/sq.m./day, while Tamil Nadu enjoys solar incidence of 5.5 - 6 kWh/sq.m/day.
• This sector which has hitherto been untapped with a cumulative capacity of only 119.06 MW.
• Tamil Nadu is pioneer in announcing net metering policy
• Hence, Tamil Nadu is a potential destination for solar investment
Geographical Advantage
•The State has an outlay of INR 55,000 crore (USD 9.16 Billion) for solar energy sector alone. This is more than 10% of the total allocation for Power sector
Investment Outlay
•Solar rooftop has been made mandatory for all new State Government buildings. PV system will also be installed in old buildings in phased manner
Solar rooftop programme
•Refund of 50% of the VAT component on capital goods (if these are manufactures in Tamil Nadu) exclusively for captive power generation
•Electricity tax exemption for sale to utility & captive sales for 5 years
Tax Concessions
•Domestic roof top installations with support from the State Government
• Net metering policy to encourage more number of installations
•Compulsory roof tops in all government buildings
•Solar water heating systems in public building and industrial buildings
•A total capacity of 1500 MW to promote development of solar capacity (of varied capacities ranging from 1MW to over 10 M.
Other features
Key features of solar energy policy 2012
Renewable energy sector • Tamil Nadu Global Investors Meet 2015
Biomass in Tamil Nadu – USD 200 million opportunity of untapped potential
228
272
500
Installed Capacity Untapped potential Total
Cap
acit
y in
MW
Biomass Capacity/Potential in TN
• Available potential is 272MW.
• As per TANGEDCO, the approximate cost of setting up a biomass facility is INR 4.45 crore per MW (USD 0.74 Million). Therefore an investment potential of USD 200 Million.
Features of the Biomass power policy under the TNERC regulations. • Any company/corporate body/association/body of
individuals can set up a biomass power generation unit
The applicable tariff for the current year is under
revision. However, the tariff for the last year is Rs 4.85
per MW.
• The scheme allows for 3rd party sale and open access.
• Wheeling charges at 50% of conventional power
Cogen in Tamil Nadu – Raw material availability and investment policies
Raw material availability
• The raw material for power generation using cogeneration plants is bagasse which is generated form sugar factories.
• Tamil Nadu is the third largest sugar producer in India with 43 factories and it accounts for about 10% of the total production.
• There are 29 plants in the State that together account for the capacity of 659 MW of cogen power capacity.
• This capacity is spread across the State in the delta region, Districts of Erode, Coimbatore, Tirunelveli etc.
TNERC policies promoting investment • Any company/corporate body/association/body of
individuals can set up a biomass power generation unit
• The applicable tariff for the current year is under revision. However, the tariff for the last year is Rs. 3.76 per kWHr.
• The scheme allows for 3rd party sale and open access.
• Wheeling charges at 7.5% of energy wheeled for Low tension services and 5% for others.
Opportunities for Investment in Renewable Energy in Tamil Nadu
Tamil Nadu is conducive for investment across the spectrum in the renewable energy sector
Development of wind-solar hybrid installations and biomass projects
Offshore wind projects development
Development of solar PV manufacturing capabilities
Tidel projects first at pilot scale, and then at commercial scale
Development of large scale solar and wind parks
Government Support
Tamil Nadu been the most forward looking State in terms of sustainable power development
Energy Department
Tamil Nadu
Electricity Board
(TNEB) Limited
Tamil Nadu
Generation and
distribution
Corporation
Limited
(TANGEDCO)
Tamil Nadu
Transmission
Corporation
Limited
(TANTRANSCO)
Tamil Nadu Energy
Development
Agency (TEDA)
- Set up in 1984 to
migrate the State
from fossil to
renewable energy
Tamil Nadu Power Finance and Infrastructure Development Corporation Limited (TNPFIDC)
Chief Electrical Inspector to Government (CEIG)
This has been achieved largely on account of the State’s focused policy making and drive to capitalize on the opportunity.
The current programmes as part of the policy initiative..
CM’s Solar Powered Green House Scheme 0.3 Million houses will be constructed with solar powered lighting systems from 2011-12 to 2015-16 in rural areas
CM’s Solar Rooftop Capital Incentive Scheme A capital subsidy of $300 (INR 20, 000) per kW of installation over and above the GoI’s 30% subsidy under the MNRE scheme
Bio Energy Bio energy program's objective is to optimally utilize the vast biomass resource for power and cogeneration through biomass gasifier & biomass plants
Solar Energy The State’s ambitious solar energy policy 2012 is aiming to add 3000MW of solar in Tamil Nadu by 2015 which is ~16% of the total installed capacity in Tamil Nadu
Wind Energy Wind is a success story of Tamil Nadu. The State has identified Kambam pass in Theni District for wind
energy development. Currently 3 passes are in operation.
Wind Solar Hybrid System A wind solar hybrid is a way to offset the seasonality of these power sources. Also the cost of the hybrid is 40-50% cheaper than pure play solar systems.
Additional Chief Secretary - Government of Tamil Nadu Industries Department
Phone: 91-44-25671383 Fax: 91-44-25670822 Email: [email protected], [email protected]
Nodal agency
Tamil Nadu Industrial Guidance and Export Promotion Bureau
19-A, Rukmini Lakshmipathy Road, Egmore, Chennai-600 008
Phone: 91-44-2855 3118
Email: [email protected]
Visit us at www.tamilnadugim.com