www.pwc.

com
p

Renewable Energy in India: Growth and

Targets
Ministry of New and Renewable Energy (MNRE)
13 May 2015
Strictly Private
and Confidential
12 May 2015

Present Power Scenario of India

Total installed capacity of 263.66 GW and RE capacity of 34.35 GW (13% of Installed
capacity and approximately 7% of electricity produced) (as on March 2015)
Diesel
0 5%
0.5%

Nuclear
2 2%
2.2%
Gas
8.7%

Hydro
15.5%

Wind
8.6%

RES
0 0%
0.0%
RE
13.1%

Coal
60 1%
60.1%

SHP
1.5%
Biomass
0.5%

Bagasse Cogen
1.1%
Solar
1.3%

*Source: MNRE, GoI ; CEA Statistics

GEF National Workshop in India MNRE

13 April, 2015

Renewable Energy: Globally and Indias position

Global Installed RE Capacity
BioPower
16%

Solar PV
25%

CSP
1%

Wind
58%

Global RE installed capacity of 673 GW*

Global Wind: 370 GW* and India 5th with

22 6 GW
22.6

Global Solar: 177 GW** and India 11th with

3.3 GW

*As on Dec 2014: Global Wind Energy Council

**As on Jan 2014, IEA PVPS)

Country wise Wind (GW)

140
120
100
80
60
40
20
0

Country wise Solar (GW)

50

114.6
40
30

65.9
23

22 6
22.6

Workshop on the India Energy Outlook MNRE

US

28.2
23.3
18.5

20

39.2

China

38.2

Germany Spain

10

3.3

0
India

18.2

Germany China

Japan

Italy

13 April, 2015
3

US

India

Support Mechanism for Renewable Power In India

Introduced by almost all states for
RE technologies
Feed in
T iff
Tariffs

States have formulated

RE policies and have
added significant
State RE
capacities
Policies

Accelerated
Depreciation
(AD)

Key
K iinstrument
t
t for
f
success of wind
Also exists for of solar,
biomass projects

Support for
RE

Power shortage
prevails and Energy
p
gy
gap is expected to
increase

High demand
supply energy
gap

GEF National Workshop in India, MNRE

Exemptions
p
and other
incentives

Renewable
Purchase
Obligation
(RPO)

Excise & Custom duty exemptions for

most of the Equipment, Machinery etc.
10 year tax holiday

RPOs mandated by the

EA 2003 and National
Tariff Policy
REC mechanism
launched to fulfill RPOs

13 April, 2015
4

Policy and Regulatory Framework for RE development (1)

Electricity Act (EA), 2003

EA, 2003
1. Section 86 - promotes RE by ensuring
grid connectivity & sale of RE.
2. Section 3 - Central Government to
develop a national policy for optimal
utilization of resources including RE .
3. SERCs to:
Section 86 - fix minimum % energy
purchase from RE sources (RPO).
Section 61 determine tariffs for the
promotion of RE

GEF National Workshop in India, MNRE

National Electricity Policy (NEP), 2005

NEP, 2005
1. Sect
Section
o 5
5.2.20
0o
of NEP p
promotes
o otes
private participation in RE.
2. Section 5.12.1 of NEP targets
capital cost reduction in RE through
competition.
3. Section 5.12.2 of NEP states that
SERCs should specify appropriate
tariffs to promote RE and specify
targets for RE.

13 April, 2015
5

Policy and Regulatory Framework for RE development (2)

National Tariff
Policy (NTP) 2006

NTP, 2006
1 A minimum percentage
1.
procurement should be
made applicable latest
by April 1, 2006
2. A p
preferential tariff to be
determined by SERC to
enable RETs to
compete
3. Procurement of RE by
distribution licensee
through competitive
bidding.

GEF National Workshop in India MNRE

National Action Plan for

Climate Change, 2008

National Action Plan for

Climate Change, 2008
1. A dynamic minimum
renewable purchase
standard (DMRPS) may be
set, with escalation each
year till a pre-defined
d fi d llevell
is reached.
2. NAPCC has set the target
of 5% RE purchase for FY
2009 10 with increase of
2009-10,
1% in target each year for
the next 10 years

REC Mechanism, 2010

REC Mechanism, 2010

1. A mechanism
ec a s which
c will
enable and recognize the
inter-State RE transactions
2. Seeks to address the
mismatch between
availability of RE sources
and the requirement of the
obligated entities to meet
their RPO across States

13 April, 2015
6

RE in India: Status and Revised targets

40000

Source wise renewable capacity ( FY 07-15)

34351 MW
WtE

35000
30000

Solar Power

M
MW

25000

Biomass power

20000
15000

9389MW

Co Gen bagasse

164.1

10000

Small Hydro

5000

Wind Power

2007

2008

2009

2010

2011

2012

2013

Capacities in MW
Source
Installed capacity by Current installed
end of 11th Plan
Capacity
(M h 2012)
(March
(M h 2015)
(March
Solar Power
941
3,383
Wind power
17,352
22,645
Biomass Power
3,225
,
,
4,183
Small Hydro
3,395
4,025
Workshop on the India Energy Outlook MNRE
TOTAL
24,914
34351

2014

2015

Target as per 12th Revised Targets

till 2022
Plan
(M h 2017)
(March
1,00,000
10,941
60,000
32,352
10,000
,
6,125
,
5,000
5,495
13 April, 2015
1,75,0007
54,914

RPO revision with scale up plans

Targets Previously:
RE power as per NAPCC
20%
10%

5%

10%

15%

Solar Power as per NTP

4.00%

3.00%
1.25%

2.00%
0 25%
0.25%

0%

0.00%
2009-10

2014-15

2019-20

2011-12

2016-17

2021-22

N
New
Vi
Vision:
i
Current Situation

Capacity

Installed capacity
stands
sta
ds at 3
34.5
5G
GW

~ 7% power from RE
with each state
RPO
Workshop on the
India Energy
Outlook MNRE
having
specific
RPOs

NAPCC

RE installed capacity
of 142.3GW
o
3G by 2020
0 0

15% RE power by
2020

Scale up targets
175 GW by 2022
Solar 100 GW
Wind 60 GW
RPO of 10.5%
required for 100 GW
April, 2015
solar by132022
8

Projected power requirement

Energy requirement is expected to increase by 200% from FY 15 to FY 30
3500000

Estimated Power Requirement till 2030

1000000
900000

3000000
755719 800000
2500000

700000

MU

500000

434900
1500000

400000
300000

1000000

200000
500000
100000
0

Capacity required (MW)

GEF National Workshop in India MNRE
Source: 18th EPS, CEA
Assumption- Based on average PLF @ 50% prevailing at FY 11, FY 12, FY 13

Energy requirement (MU)

13 April, 2015
9

MW

600000

2000000

Share of RE in future energy mix

175 GW RE will contribute to 18.9%
18 9% of the entire power consumption in India in 2022
200000

18.90%
17.47%

180000

175000

15.86%

MW

14.00%

12.22%

120000

12 00%
12.00%

10.27%

100000
80000

16.00%

14.09%

140000

100000

8.38%
7.24%

18 00%
18.00%

7.26%

10.00%
8.00%

59759

60000

RPO (%)

160000

20.00%

6 00%
6.00%

40000

4.00%
17000

20000

2.00%

0 00%
0.00%
2013-14

2014-15
(p)

2015-16
(p)

2016-17
(p)

Installed Solar Capacity (MW)

GEF National Workshop in India MNRE

2017-18
(p)

2018-19
(p)

2019-20
(p)

2020-21
(p)

Installed renewable capacity (MW)

2021-22
(p)
RPO

13 April, 2015
10

Wind energy across states

3053
MW
3582
MW

568
MW
4370
MW
2549
MW
35
MW

Current Installed capacity of 22645

MW
According to CWET, the wind power
potential in India at 50 m hub-height
is estimated to be 49,130
,
MW and at
80 m hub-height is estimated to be
1,02,788 MW

Growth path
913
MW

17352
35 MW

7394
MW

2011-12
2011
12

GEF National Workshop in India MNRE

22645
6 5 MW

2014-15
2014
15

32352
3
35 MW

2016-17
2016
17

60000 MW

2021-22
2021
22
13 April, 2015
11

Solar Energy across states

Solar Resource

Solar:
3744 MW (March 2015)
185
MW

13
942 MW 72
MW
MW

1000
MW

10
MW
16
558
7
MW 8 MW
MW
32
MW
360
MW
MW 62
MW
242
77
MW
MW
142
MW

Workshop on the India Energy Outlook MNRE

Current Installed capacity of 3744

MW
13 April, 2015
Solar potential stands at 748 GW 12

Solar Power edging towards grid parity

Price of solar power has come down from Rs 17.91/kWh in 2010 to under Rs 7/kWh now.
16
14.5
14
12.76
12
10
8
6

10.95
12.16

9.39

8 98
8.98

7.49
7.0
8.79
8.36

8.5
7.94
8.34

8.03

8.05

8.25

8.057.9
5.97
6.48

6.45
6.45

6.97
6.47
6.86

55
5.5
6.87

7.04
6.17

6.9
6.46
6.71
6 72
6.72
6.94

7.12

6.76

4
NSM Batch NSM
1,, Dec'10 Batch2,,
Dec'11

Orissa,
Mar'12

Karnataka, Madhya
Apr'12
p
Pradesh,,
Jun'12

Highest Bid (Rs./KWh)

Tamil
Nadu
Mar'13

Rajasthan Madhya Karnataka, Andhra Karnataka Telangana

Apr'13
p 3
Pradesh,,
Apr'14
p 4
Pradesh
Oct'14
4
Nov'14
4
Jan 14
Phase 2

Lowest bid (Rs./KWh)

Levelized Tariff (Rs./KWh)

A l i off ttariffs
Analysis
iff suggestt grid
id parity
it 3 years from
f
now, as against
i t anticipated
ti i t d in
i 2022 (JNNSM)

the India
MNRE
13 April, 2015
Workshop
CERC on
solar
PVEnergy
tariffsOutlook
are Rs
6.91/kWh and Rs.7.72/kWh with and without accelerated depreciation
13
benefit respectively for the FY 2014-15

Solar Scale-up Plans- 100 GW Vision

Category 1. Rooftop Projects
40,000 MW

120

Category 2. Large scale Projects

Inside Solar park
Outside Solar Park
20,000 MW
40,000 MW

C
Cumulative
l ti Solar
S l Targets
T
t (GW)

100
80
60
60
40
22
6
12
10
5
1
0
Workshop on the India Energy Outlook MNRE
2015-16
2016-17
2017-18

51.5

Large scale solar

Roof-top

42
32

20

31

40

16

23

2018-19

2019-20

2020-21

2021-22

13 April, 2015
14

40 GW through grid connected rooftop

Status

358 MW Projects sanctioned and 41

MW installed
[Potential for 124 GW exists]

Target

40,000 MW by 2022 of which 10 GW

during 2015-16 to 2017-18.

Current
support

Financial assistance of 15% of the

b
benchmark
h
k [R
[Reduced
d
d ffrom 30% earlier]
li ]

Updates:
p

14 States have rooftop provisions in their Solar Policy and 20 States/UTs have notified regulations

Rooftop included under IPDS and guidelines issued

G id li
Guidelines
iissued
d tto iinclude
l d rooftop
ft under
d h
housing
i lloan and
d9b
banks
k have
h
iissued
d iinstructions
t ti

Central Electricity Authority (CEA) has notified technical standards for connectivity and metering

GEF National Workshop in India MNRE

13 April, 2015
15

MNRE

`
`
`
`

`
`
`
`

Savings in transmission and distribution losses

Low gestation time
No requirement of additional land
Improvement
p
of tail-end g
grid voltages
g and
reduction in system congestion with higher selfconsumption of solar electricity
Local employment generation
Reduction of power bill by supplying surplus
electricity to local electricity supplier
B tt
Battery
elimination
li i ti
makes
k
easy installation
i t ll ti
and
d
reduced cost of system

MNRE

I IIndia
In
di market
k t potential
t ti l ffor rooftop
ft
SPV is
i 124 GW
GW.
GW
352
210
124
0

50

100

150

Technical Potential

200

250

Economic Potential

300

350

Market Potential

400

Present Status in India

360 MW off Solar

S l
Rooftop
f
Projects sanctioned
d by
bMNRE
MNRE and 49.677 MW commissioned
Sector
Commercial
Government
Hospital
Institutional (Schools,
Collages)
Religiousinstitution
Religious
institution
Residential
Total

Installedby Installedby Totalinstalled

SECI(MW) States(MW)
(MW)
11.36
2.36
1.6

12.71
4.893
0.47

24.07
7.253
2.07

3.215

5.131

8.346

0.12
0
18.655

7.52
0.298
31.022

7.64
0.298
49.677

MNRE

`
`

13 States have come out with Solar Policy supporting grid

connected
d rooftop
f
systems :
Andhra Pradesh Chhattisgarh, Gujarat, Haryana, Karnataka,
Kerala Manipur
Kerala,
Manipur, Punjab
Punjab, Rajasthan
Rajasthan, Uttar Pradesh
Pradesh, Tamil
Nadu, Uttarakhand and West Bengal.
SERCs of 20 States/UTs have notified regulations for net
metering/feed-in-tariff mechanism.
Andhra Pradesh, Chhattisgarh, Delhi, Gujarat, Haryana,
Karnataka, Kerala, Tamil Nadu, Uttarakhand , West Bengal,
A d
Andaman
& Ni
Nicobar,
b
Ch
Chandigarh,
di
h D
Dadra
d &N
Nagar H
Haveli,
li
Daman & Diu, Lakshadweep, Pondicherry , Goa, UP,
Rajasthan and Odisha.
Remaining States being pursued to come out with their
policies/regulations.

Sl. No. Parameter

Value

1.

Capacity (in kWp)

100

2
2.

Cost (in Rs)

70 lakh

3.

Equity by developer (20%)

14 lakh + 21 lakh loan from
Borrowing from other sources other sources. It could be
(30%)
SBIs normal lending

4
4.

World Bank loan to developer (50%) 35 lakh

5.

Electricity generation per year

1.50 lakh unit

6
6.

Revenue generation per year

@Rs.7.04 per unit *
(CERC rate for 2015-16)

Rs 10 56 lakh
Rs.10.56

Sl.
Sl
No.
7
7.
8.
9
9.

Parameter

Revenue generation per month

Simple payback period (26)
EMI for world Bank/ADB
(8%, 15 yr, Rs. 35 lakh)
10 EMI for balance 50% equity/borrowing
(12%, 15 yr, Rs. 35 lakh)
11. Total EMI payment by developer
12. Net saving per month to developer (711)) tariff could also be available
Higher
*Higher
developer

Value
Rs. 88,
Rs
88 000/6.62 year
Rs 33,447/
Rs.
33 447/Rs 42,000/
Rs.
42 000/Rs. 75,447/
75,447/Rs. 12,553/for

20 GW through Solar park and UMPPs

17 Parks (12 states) with capacity 12,759 MW approved and request received for 5 more parks
Punjab

Uttarakhand
39 MW

500 + 500 MW

Rajasthan: Bhadla II
700 MW

UP

600 MW

Meghalaya
20 MW

Rajasthan: Bhadla III

and
d Jaisalmer
J i l
1000 + 1000 MW

Gujarat
j
700 MW

AP: Kurnool
1000 MW

MP
750 + 750 MW

AP: Anantpur
1500 MW

Karnataka
2000 MW

Kerala

Workshop on the India Energy Outlook MNRE

200 MW

Telangana
1000 MW

Tamil Nadu
500 MW

13 April, 2015
16

20 GW from Unemployed youth, MSME, Gram panchayats

Size
0.5 MW to 5.0 MW in multiples of 100 kW
Target: 20 GW in 5 years

MNRE Support
Facilitate Loans: Equity support
State Govt. may provide additional grants

Scheme
Beneficiaries
Unemployed Graduates either alone or in
partnership
Panchayats Existing MSMEs
Gram Panchayats,

Implementing agency
SECI on behalf of MNRE
State governments to implement scheme

Key Benefits
Utilization of sub-stations with spare capacities & additional power for states
20,000
000 unemployed youth
Employment to almost 20
Additional grant from states will bring down the cost of power

Workshop on the India Energy Outlook MNRE

13 April, 2015
17

11.3 GW through Grid connected (VGF+NVVN)

VGF

300 MW from 201415 to 2018

2018-19
19
VGF of 1.5-2.5
Cr/MW under
various categories

Defence

3000 MW under Phase

II Batch II
NVVN will bundle
power in 2:1

GEF National Workshop in India MNRE

Large grid
connected

2000 MW from 2015-16 to 2016-17 and

5000 MW from 2016-17 to 2020-21
p &
VGF of 1-1.3 Cr/MW under open
DCR

CPSUs

1000 MW from 2014-15

to 2016-17
VGF of 0.5-1 Cr/MW

NVVN
Bundling

13 April, 2015
18

Punjab Engineering College, Sector 1, Chandigarh

GEF National Workshop in India MNRE

13 April, 2015
19

Government Hospital, Sector 16, Chandigarh

GEF National Workshop in India MNRE

13 April, 2015
20

Govt. College for Girls, Sector 11, Chandigarh

GEF National Workshop in India MNRE

13 April, 2015
21

Reliance 100 MW Solar CLFR Plant in Rajasthan

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13 April, 2015
22

Godawari 50 MW in Pokharan, Rajasthan

GEF National Workshop in India MNRE

13 April, 2015
23

Solar Water Heaters

Park Sheraton, Chennai(40,000 liter/day)

The Taj Ambassador, Delhi (7000 LPD)

S
Sheraton
C
Chola,
C
Chennai
((10,000 liter/day)
/
)

Workshop on the India Energy Outlook MNRE

13 April, 2015
24

Gujarat Solar Park- Charanka

Workshop on the India Energy Outlook MNRE

13 April, 2015
25

150 MW in Neemuch, MP

Workshop on the India Energy Outlook MNRE

13 April, 2015
26

Experience in Implementation of GEF Projects and

Suggestions for New Funding
Experience of the Ministry
Implemented Projects : 2 [Small Hydro & Waste to Energy (Biomethanation)]

Ongoing Projects

: 4 [Grid Connected Biomass Power, Market Development

of Solar Concentrator, Scaling up Solar Thermal
Technology(UNIDO) and Access to Energy for
Productive
d i Uses

Suggestions

Part of the GEF Contribution should be for setting up of actual Projects in the
Field

Demonstration of New Technology (s) / Hybrid System should also be

encouraged
d

In NIM Modality of Implementation, Time required for Operationalization of

the Project should be Factor in into the Project Cycle

Co- financing from Private Sector / Other Sources should be based on

firm
13 April, 2015
Commitment to avoid delays in completion of Projects

Thank You

Tarun Kapoor,
Joint Secretary,
Secretary MNRE