MARKETING RESEARCH SEMESTER IV Topic: Renewable enewable Resources of Energy nergy Solar Energy India

Group member: Vijay Dadhwal -- 017 Dolly Yagnik -- 112

MMM (2011-2014) (2011

ACKNOWLEDGEMENT

At first, I deeply express my gratitude to PROF. BHATTCHARYA for giving us an opportunity to work on this very challenging and interesting project and more importantly making us equipped with all the knowledge and insights required for this project - Renewable Resources of Energy - Solar Energy in India. This project has proved to be an educational and rewarding experience for us, which has helped us gain considerable amount of knowledge and a preamble view of the pragmatic world.

MMM (2011-2014)

Marketing Research

Welingkar Institute of Management

INDEX
Sr.No 1 COMPANY PROFILE Heading Page No. 3 Remark

RESEARCHERS OBJECTIVE

CURRENT SCENARIO IN ENERGY SECTOR

INDIAN SOLAR MARKET ESTIMATE

FUTURE OUTLOOK SLEPT ANALYSIS OF EXTERNAL FACTORS

10

SWOT ANAYLSIS

13

MAJOR PLAYERS

15

CONCLUSION

17

10

CASE STUDY

21

11

REFERENCES

27

MMM (2011-2014)

Marketing Research

Welingkar Institute of Management

COMPANY PROFILE: ABC is a leading global provider of solar electricity solutions.

Around 2,300 employees work in ABC's worldwide organization. Headquartered in Sandvika, Norway, our production facilities include the silicon materials plants in Moses Lake, Washington and Butte, Montana in the USA. ABC reported strong operational performance in 2012 with cost reductions and improved market position both in Silicon and Solar. ABC is focusing on those region where can profitably grow its business, while building long term options in clean energy technologies. As well as delivering substantial environmental benefits. They are looking for organic growth and focusing on South Asia region.

MMM (2011-2014)

Marketing Research

Welingkar Institute of Management

RESEARCHERS OBJECTIVE:

Analysis the Indian market and growth prospective for Solar industries Government and local states support for renewable source of energy And major constrain to Indian market

MMM (2011-2014)

Marketing Research

Welingkar Institute of Management

CURRENT SCENARIO IN ENERGY SECTOR:

The economy of The Republic of India is the tenth-largest in the world by nominal GDP [1]($1.848 trillion 2011)and parity (PPP). The country is one of the G-20 major economies and a member of BRICS. Economic growth rate is around 4.96%
[3]

the third[2]

largest by purchasing

power

of GDP for the 201213 fiscal year.

India faced peak power deficit of over (9.8% of requirement) 8,200 MW in Jan13 and power shortage of 12,295 MW in December12.[4] The Indian government with Jawaharlal Nehru National Solar Missions ambitious target of 20,000MW of solar power by 2022
[5]

is supported by policy incentives for

projects in phase-I and phase-II stage, such as solar power purchase obligations, attractive feed-in tariffs and incentives to set up land-based and rooftop solar installations. States like Gujarat, Maharashtra and Tamil Nadu have also come out with their solar policies to incentivize the set up of solar power projects. The policies also lay emphasis on using indigenously manufactured modules for getting the above incentives. Further, as per the studies done by various independent agencies, the size of the solar market in India will go up to anywhere between 800 to 1,200MW by the year 2014-15.

[1] [2] [3] [4]

Source: http://data.worldbank.org/country/india)

(source: http://en.wikipedia.org/wiki/Economy_of_India#cite_note-IMF_GDP-1) (Source: http://dbie.rbi.org.in/DBIE/dbie.rbi?site=home) (source:http://articles.economictimes.indiatimes.com/2013-02-

17/news/37144674_1_power-deficit-shortfall-in-generation-capacity-cea-report)
[5]

(source: http://www.mnre.gov.in/solar-mission/jnnsm/introduction-2/)

http://www.mnre.gov.in/ http://www.renewableenergyindiaexpo.com/ MMM (2011-2014) Marketing Research Welingkar Institute of Management 5

Annual installed capacities projections

20,000
20000 15000

10,000

MW

10000 5000 0 2009-10 10 2010-11 2011-12 2012-13 2013-17 2017-2022

13

456.55

1000

Period in Year
Capacity in (MW)

ALL INDIA GENERATING INSTALLED CAPACITY (MW) (as on 28-02-13) 28 13)

MW, Thermal, 144,544

150,000

100,000 MW 50,000 MW, Hydro, 39,449 MW, RES** (MNRE), 25,856 MW, Captive, 34444 MW, Nuclear, 4,780

0 Thermal Hydro Nuclear RES** (MNRE) Captive Power Generation Source

Thermal Hydro Nuclear RES** (MNRE) Captive

ALL INDIA GENERATING INSTALLED CAPACITY (MW) (as on 28-02-2013) 28 2013) Source : http://www.powermin.nic.in Thermal, 58% 60% 50% 40% 30% Hydro (Renewable), 16% Captive, 14% 20% Nuclear, 2% RES** (MNRE), 10% 10% 0% Thermal Nuclear Power Generation Source Captive
%

MMM (2011-2014)

Marketing Research

Welingkar Institute of Management

INDIAN SOLAR MARKET ESTIMATE:

In 2012 FY, the renewable source of energy seen the growth of 25,000 MW an in that 17,352 MW of generation, WIND continues to account for 70% of installed capacity. RE generation from Small Hydro power is 3395 MW |Biomass power is 3224 MW and solar power is 1028 MW. Capacity addition of 30,000 MW is planned from various renewable energy technologies in the coming five years by 2017 , in that Wind Energy is estimated to contribute 15,000 MW followed by solar power at 10,000 MW, small hydro by 2100 MW and biomass power by 2700 MW.(Figure A )

20000 18000 16000 14000 12000 10000 8000 6000 4000 2000 0 Wind Energy Small Hydro Power Biomass Power Solar Power 2017 2012

Source : http://www.powermin.nic.in/ 1

(Figure A)

MMM (2011-2014)

Marketing Research

Welingkar Institute of Management

The Indian solar industry witnessed remarkable installation growth during the financial year, with installed PV capacity reaching close to 1 GW by the end of FY2012, up from under 100 MW of capacity at the end of 2010.(Figure B)

Figure B

MMM (2011-2014)

Marketing Research

Welingkar Institute of Management

FUTURE OUTLOOK The Indian solar energy sector has been growing constantly in the past few years and is projected to grow further in future due to Governments initiatives such as tax exemptions and subsidies. With huge decline in the cost of solar power it has become more competitive than diesel. According to the research report Indian Solar Energy Market Outlook 2012 by RNCOS E-Services Services Private Limited Indian solar energy industry exhibits huge potential to become one of the top producers of solar energy in the world in coming years. The sector is now receiving continuous support from both central and state governments. The Indian Solar Energy Market has developed over the last few years mainly due to the National Solar Mission (NSM) and the State Solar programs. Annual installed capacities/projections are as under: Annual installed capacities/ projections are as under:

Table: 1 Year Capacity in (MW) 2009-10 5 2010-11 11 13 2011-12 456.55 2012-13 800-1,000 2013-17 4,00010,000 2017-2022 20,000

Annual installed capacities projections

20,000
20000 15000

10,000

MW10000
5000 0 2009-10 2010-11 2011-12 2012-13 2013-17 2017-2022 2022

13

456.55

1000

Period in Year
Capacity in (MW)

Annual installed capacities/ projections

MMM (2011-2014)

Marketing Research

Welingkar Institute of Management

SLEPT ANALYSIS OF EXTERNAL FACTORS:

POLITICAL OPPORTUNITIES: Conducive Policy & Regulatory Framework for Renewable Energy, domestically. Availability of funds for renewable energy Regulatory developments in grid and market integration of RE Growing private sector interest in RE

POLITICAL THREATS: Non availability of financial resources for supporting RE Political support at the State Government level/institutions vary widely Lack of interest to support such resources by other ministries

ECONOMIC OPPORTUNITIES: Increasing price of oil Increasing energy demand-supply gap Increasing pressure on availability of conventional fuel sources such as coal Several regions in the country with international markets no access to grid power Possibility of significant reduction in costs of solar technologies

ECONOMIC THREATS: Continuation of high subsidies for diesel, kerosene, cooking gas Readiness of financial institutions to take on risks Ability to maintain cost competitiveness vis--vis international markets

SOCIO CULTURAL OPPORTUNITIES: Significant potential of employability

MMM (2011-2014) 10

Marketing Research

Welingkar Institute of Management

SOCIO CULTURAL THREATS:

Resistance from local community/ end-users towards use of certain technologies (e.g. waste to energy)

TECHNOLOGICAL OPPORTUNITIES:

Technology break-through in solar New technology breakthrough for example, second generation biofuel technology breakthrough Development of storage technology

TECHNOLOGICAL THREATS:

Infrastructure bottlenecks

ENVIRONMENTAL OPPORTUNITIES:

Decreasing domestic coal allocations Increasing awareness of climate change concerns

LEGAL OPPORTUNITIES:

Conducive legal framework Electricity Act, National Energy Policy, National Tariff Policy National Action Plan on Climate Change Kyoto Protocol and new Global Climate Protocol

MMM (2011-2014) 11

Marketing Research

Welingkar Institute of Management

GOVERNMENT POLICY:

The Jawaharlal Nehru National Solar Mission was launched on the 11th January, 2010 by the Prime Minister. Today India is becoming one of the worlds most attractive markets for Renewable Energy investments. Indias rise has been due to the effective policy and regulatory support for development of Renewable Energy Technologies (RETs). Various policy measures such as Jawaharlal Nehru National Solar Mission (JNNSM) Feed-in-Tariff, Accelerated Depreciation (AD), Generation Based Incentives (GBI), Renewable Purchase Obligations (RPO) and Renewable Energy Certificates (RECs) have helped in the rapid growth of Renewable Energy deployment in the country. The Mission has set the ambitious target of deploying 20,000 MW of grid connected solar power by 2022 is aimed at reducing the cost of solar power generation in the country through

long term policy; large scale deployment goals; Aggressive R&D; and Domestic production of critical raw materials, components and products, as a result to achieve grid tariff parity by 2022. Mission will create an enabling policy framework to achieve this objective and make India a global leader in solar energy

Along with above demand and supply side measures to promote Renewable Energy growth in India, various states have come up with their state Solar policies to provide an enabling framework for growth of Renewable Energy in India.

MMM (2011-2014) 12

Marketing Research

Welingkar Institute of Management

STRENGTHS AND WEAKNESSES OF RENEWABLE ENERGY SECTOR IN INDIA:

Strengths:

Conducive policy and regulatory framework at central level Good resource potential Growing technology maturity in certain sectors such as grid connected wind power Emergence of indigenous manufacturers and developers Ability of renewable energy technologies to offer off grid decentralized energy solutions

Weaknesses:

Absence of conducive policy and regulatory framework in some States High cost of certain technologies Current acceptability of end-users Inconvenience of use of certain renewable energy based applications vis-a- vis conventional means Quality and therefore reliability of equipment particularly for decentralized applications Lack of availability of adequately skilled, technical manpower Lack of adequate transmission infrastructure in states for evacuation of renewable power Lack of implementation infrastructure General lack of awareness of end-users Lack of adequate distribution and service network

MMM (2011-2014) 13

Marketing Research

Welingkar Institute of Management

THREATS A significant reduction or elimination of government subsidies and economic incentives or change in government policies Increasing competition and overcapacities resulting in dumping of products in target markets as well as in the domestic market Dumping of products by Chinese and other foreign players Technology obsolescence High manufacturing and input costs (especially commodities) Significant increase in interest rates in the domestic market Steep fall in the module prices

OPPORTUNITIES Focus on sustainable clean energy sources worldwide given the depleting and polluting conventional forms of energy and provides for strong growth opportunity for renewable forms of energy. Solar energy being a freely and abundantly available fuel matching the peak electricity demand requirements is one of the most suited forms for energy generation Emergence of new markets for solar power like North America region, China, Japan and India given the recent policy initiatives in these countries. Indian solar market growing at a fast pace on the back of Jawaharlal National Solar Mission and state level projects. Focus on both grid-connected and off-grid/rooftop projects driving the demand for solar EPC services. Favorable policy initiatives expected in the near future. Emergence of the REC mechanism in India that aims to provide further impetus to renewable sources of energy including solar energy by enabling obligated entities to meet their renewable targets. Rapidly approaching grid parity for solar power globally as well as in the Indian market.

MMM (2011-2014) 14

Marketing Research

Welingkar Institute of Management

MMM (2011-2014) 15

Marketing Research

Welingkar Institute of Management

MAJOR PLAYERS OF THE INDUSTRY & MARKET SHARE

1)

Tata Power Solar Systems

Tata Power Solar is a fully integrated solar solutions provider from wafer to cell, module, subsystems, systems, installation, commissioning, maintenance, service and training. Years 1991-1992 2011-2012 Sales turnover (Million) 160 9,304

Source: http://www.tatapowersolar.com/about_us/about_tata_solar.html#.UWZDUqJ http://www.tatapowersolar.com/about_us/about_tata_solar.html#.UWZDUqJbv0

2) Moser Baer Solar Limited

Established in 1983 in New Delhi, Moser Baer is one of Indias leading technology companies. Moser Baer's flagship company, Moser Baer India Limited (MBIL) has successfully developed cutting edge technologies to become the worlds second largest manufacturer of optical storage media. Current Production Capacity - Crystalline Cells - 190 MW - Crystalline Modules - 165 MW - Thin Film Modules - 50 MW Solar EPC business witnessed robust growth during the 2011-12 2011 12 year with over ov 110 MW* of projects executed.

MMM (2011-2014) 16

Marketing Research

Welingkar Institute of Management

3) Indosolar Limited Indosolar Limited is the leading Indian manufacturer of solar photovoltaic cells. Current manufacturing capacity is 160 MWp with an average efficiency rating of 16+%, peaking at 17.2%. Production capacity will be expanded to 360 MWp by FY 2013-14, and Line C will have the capability to produce both multi and mono crystalline cells. Machinery and technology have been supplied by industry leader, SCHMID GMBH, on a turnkey basis. Source: http://www.moserbaersolar.com/about-strategic-alliances.asp?links=ab5 http://moserbaer.com/

4) Reliance Solar Group The solar energy initiative of Reliance aims to bring solar energy systems and solutions primarily to remote and rural areas and bring about a transformation in the quality of life. As part of this initiative, Reliance Solar is developing and offering a range of products, systems and solutions- from solar lanterns, home lighting systems, street lighting systems, water purification systems, refrigeration systems to solar air conditioners - all based on solar energy. These products, systems and solutions are part of the downstream component of the solar value chain. Reliance is concurrently working on developing the upstream and midstream components in an integrated manner- from polysilicon to ingots, wafers, cells and modules.

MMM (2011-2014) 17

Marketing Research

Welingkar Institute of Management

CONCLUSION: The Indian government has aggressively boosted the penetration of use of solar energy. As it heavily depend upon oil and coal import (80%[1] and 20%[2]).

The government had set the target to achieve 20000MW solar energy based on-grid and off-grid electricity generation through national and states policies.(figure 3)

80% of the Indian region are receiving average annual sum 2005 2150 kWh/m2 (isolation) of Solar Radiation (Chart A). 40 % regions are receiving more than 5.25 KWh/hr/day isolation and 50% of regions are receiving in between 4-5.25 KWh/hr/day isolation (Chart B & C).

The Indian solar market will grow at the rate of 45% till 2020 to achieve Jawaharlal National Solar Mission.(reference : table:1)

Source: http://www.indianexpress.com/news/india-cuts-crude-oil-import-from-iran-by-11--to15.5-mt/949764/ http://www.upi.com/Business_News/Energy-Resources/2012/07/17/India-to-boost-coalimports/UPI-57211342549923/ MNRE Website & Wikipedia MMM (2011-2014) 18 Marketing Research Welingkar Institute of Management
[2] [1]

Chart A

MMM (2011-2014) 19

Marketing Research

Welingkar Institute of Management

Chart B

MMM (2011-2014) 20

Marketing Research

Welingkar Institute of Management

Chart C

MMM (2011-2014) 21

Marketing Research

Welingkar Institute of Management

Case Study of Kakadpana Test Project in Nasik District of Maharashtra

The trial run of Gasifier in Kakadpana test project in Nasik District of Maharashtra was started on 13th April, 2011. One Gasifier of 10 kW capacity has been installed and commissioned fully in the project on 16th April, 2011. Kakadpana hamlet consists of 85 households and has Warli ST Population, which is known for warli painting. The hamlet is situated at a distance of about 110 Kms from District Headquarter and 40 Kms. from Block Headquarter Trimbakeshwar. The village is surrounded by thin Forest. This project has been implemented by Gomukh; Environmental Trust for Sustainable Development, Pune and Maharashtra Energy Development Agency (MEDA) has been the monitoring & coordinating agency for this project. The biomass gasifier meets the daily requirement of domestic lighting in 85 households, street lighting and other entertainment activities. Each household has been provided with two light points and one power point for domestic lighting and entertainment. With the introduction of electricity, the lifestyle of the villagers has been changed. The smile on the faces of the villagers can be seen clearly and indicates that their distant dream of light is fulfilled so easily and become true, which they never expected in this life. They now started working late in the evening, especially women folk and also go to bed very late at night, which resulted increase in their income. The students are also started studying during night. The electricity is being provided in the village for 6-7 hrs. everyday i.e. from 7.00 PM to 2.00 AM at night. The GOMUKH, NGO is now planning to dig a bore well in the village to solve their drinking water, as well as partial irrigational problem, which is at present acute in the village. On the demand of villagers, GOMUKH is also planning to construct a Community Hall in the village and place a Colour Television, so that the maximum no. of villagers may be benefited and watch the useful programmes of their interest, including National News. The fear of wild animals has reduced, as 10 street lights have been installed in the village, which provide adequate illumination during night. This has brought a sea change in their outlook towards development of their village. The villagers have decided to use the power generated for many other applications, such as, flour mill, chafe/fodder cutter machines and water pumps. 2 Nos. of biogas plants are also being installed in the village for meeting out their cooking requirements. The VEC has undertaken plantation of Karanj & fuel wood in 5 hectare land, which would provide biomass for running the gasifier.

MMM (2011-2014) 22

Marketing Research

Welingkar Institute of Management

T & D Poll Street Light

Biomass Gasifier

Biomass Gasifier Shed

Household Light

Source:http://mnre.gov.in/file-manager/UserFiles/case_study_vesp.htm

MMM (2011-2014) 23

Marketing Research

Welingkar Institute of Management

Case Study of Project Surya- Improved Cook stoves Intervention

Over three billion people, living in developing countries, rely on burning of firewood crop residue, and cattle dung in traditional mud stove/threestone/open fire to prepare daily meals. Smoke from such traditional cooking is toxic for the women and children resulting in loss of nearly two million lives annually. Literature reviews indicate that indoor air pollution significantly increases the risk of pneumonia in children and chronic bronchitis and other ailments in women. Smoke plumes during cooking also consist of climate change agents such as black carbon (light-absorbing carbon particles) and potent greenhouse gases,such as carbon dioxide and methane.

There are commercially available improved cooking technologies that are clean (less smoke per kilogram of fuel burnt), fuel-efficient (less fuel required per meal cooked), and with better firepower (heat). Adoption of such technologies can help improve health (less exposure to smoke: quantity and time), reduce drudgery (less fuel consumption: less effort to collect and process firewood, and quick cooking less time spent in kitchen), save forest (less felling for firewood), and slow down global warming.

Inspired by the belief that stoves must adapt to people and traditional cooking habits, not the other way around, TERI (The Energy and Resources Institute) has developed variants of forced-draft cook stoves that meet the socio-cultural and economic objectivity of the rural population of India. A series of prototype clean cook stoves have been developed including a top-loading single-pot stove, a front-loading single-pot stove, and a front-loading double-pot stove each of which employs a fan-based forced draft to aid combustion and a standardized stove combustion chamber that can be fitted with additional components that meet localized needs. In addition, where possible, all components of the stove system will be based on nut-and-bolt systems and use parts that are commonly available even in village markets (like AAA dry cell batteries for powering the fan).The stoves provide options such as a solar charging unit and adding additional stove heads for large families.

Project Surya Project Surya is a cook stove intervention that aims to provide sustainable, effective incentive-based action plans, infrastructure, and novel technologies to enable rural communities to switch over to improved cooking technologies. Its uniqueness also lies in its science focus: undertaking the most comprehensive and rigorous scientific evaluation to date on the efficacy of reducing biomass-fuelled cooking on climate warming, air pollution, health, and human well-being.

MMM (2011-2014) 24

Marketing Research

Welingkar Institute of Management

Strategy

Project Surya has been undertaking an unprecedented effort to measure and document the impact of cleaner cooking practices on people and the planet. The aim is to deploy improved cooking technologies in rural communities. This technology change will rapidly cut emissions of major pollutants, including black carbon. The project will measure the resulting black carbon hole across space and time to quantify the multisector and impacts of better cooking technologies. It aims to use two low-cost sensor technologies (patent pending) to estimate black carbon emission savings due to improved stove usage. The first technology provides real- time data of stove usagehow often and how long. The sensor attached to the stove records the temperature (high temperature signifies usage) and transmits real-time temperature readings through an adapter circuit and thermistor to and attached mobile phone through its headset jack. This technology can be operated on any Java-enabled low-cost mobile phone that is widely available with these households. The second technology utilizes a miniaturized aerosol sampler where a filter is exposed to the indoor air particles. Any cell phone with camera and GPRS can be used to photograph the filter and wirelessly transmit the picture to a centralized server. A complex computer algorithm will then estimate black carbon emissions from the blackness of the filter in the picture. These low-cost wireless technologies can aid in mainstreaming black carbon emission savings in carbon finance by addressing two primary barriers to claim carbon credits: it dramatically reduces the transaction costs; and provides technology-centric, verifiable, and cost-effective monitoring of stove usage.

MMM (2011-2014) 25

Marketing Research

Welingkar Institute of Management

Results

The pilot phase of Project Surya was successfully completed in 2011, the highlights of which are listed below.

Various cook stove technologies were tested in field to identify the best technologies from the perspective of mitigating black carbon emission. Baseline measurements of black carbon were collected before and after the dissemination of improved cook stoves in 485 households in one village situated in Uttar Pradesh. Demonstrated link between indoor and outdoor concentrations of black carbon in and around the Surya pilot village with cooking activities. Identified forced-draft stoves as superior amongst improved stove technologies. Developed low-cost cell phone-based technologies that make it possible to measure black carbon on the ground with unprecedented spatial resolution for the first time. Established and validated methodologies to measure black carbon from space, in order to scale the results beyond the deployment site. Identifying socioeconomic barriers and drivers related to cook stove adoption.

Outlook

Project Surya is now positioned to embark on the demonstration phase, which requires an area that is large enough to be captured by satellite sensors (approximately 100 square kilometres) and a population of about 50,000 people to constitute a valid and viable test spanning approximately 40 neighbouring villages. TERI is working with NEXLEAF Analytics and the University of California, San Diego, to develop a robust, low-cost, and reliable methodology to claim carbon credits. Furthermore, TERI is continuing to conduct research, development, customization (to suit local cooking practices and fuel availability) and demonstration of affordable cooking technologies to improve access to modern energy. While the work has been primarily focused India, similar initiatives have been launched in Africa. MMM (2011-2014) 26 Marketing Research Welingkar Institute of Management

Partners will continue to develop and foster linkages with the private sector including financial institutions, government agencies, civil society, and other stakeholders. Indeed, the efforts placed in conducting extensive research into improved cooking activities will provide direction for existing stakeholders to produce more effective and scalable alternative cooking technologies.

Stove Demonstration of a stove

Stove Experiment Source: http://mnre.gov.in/file-manager/UserFiles/compendium.pdf

MMM (2011-2014) 27

Marketing Research

Welingkar Institute of Management

REFERENCES

http://www.bp.com/productlanding.do?categoryId=7041&contentId=7046652 http://www.solarishi.com/2009/06/indian-solar-energy-current-scenario.html http://mnre.gov.in/filemanager/UserFiles/presentations_solar_workshop_24072012.htm http://www.mnre.gov.in/solar-mission/jnnsm/introduction-2/ http://www.moserbaersolar.com/about-overview.asp?links=ab1 http://www.relsolar.com/ http://www.indosolar.co.in/ http://www.webelsolar.com/ http://www.renewableenergyindiaexpo.com/ http://mnre.gov.in/sec/solar-assmnt.htm http://www.eai.in/club/users/krupali/blogs/627

MMM (2011-2014) 28

Marketing Research

Welingkar Institute of Management