Challenges Opportunities For Renewable Energy in India

CHALLENGES & OPPORTUNITIES FOR
RENEWABLE ENERGY IN INDIAN PERSPECTIVE
United Business Institutes

Belgium, Europe
PROJECT REPORT
Submitted in partial fulfilment of the requirements for the award of the
INTERNATIONAL MBA IN POWER
By
SOUMYADEEP BHUNIA
(UBI/MBA/I/AP11/3389)
Under the guidance of

Mr. VIVEK ZAVERI
(Manager Energy Audit)
JARO EDUCATION
MUMBAI
January 2012
PROJECT REPORT: Challenges & Opportunities For

Renewable
Renewable energy in Indian Perspective
Perspective
DECLARATION
I, Soumyadeep Bhunia hereby declare that this project report titled Challenges &
Opportunities for
or Renewable Energy
nergy in Indian Perspective submitted in partial
fulfilment of the requirement for the International MBA in Power is my original work
and it has not
ot formed the basis for the award of any other degree.
(Signature of the Student)

Soumyadeep Bhunia
Place: Ahmedabad
Date: 30th January 2012
(I)
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ACKNOWLEDGMENT
It gives me a great sense of achievement and pleasures to present this report on my

MBA Final project undertaken in the IInd
nd semester as a part of o my curriculum. I
owe special debt and gratitude to Mr. Vivek Zaveri (Manager
Manager Energy Audit at V
Conserve Energy Solution India)
India for his consistent support and invaluable
guidance throughout this endeavour. Whenever I was puzzled and confused about
the concepts, his innovative ideas gave me a way to proceed. His sincerity,
thoroughness and perseverance had been a great source of inspiration for me. It is
only his cognizant guidance and motivation that my efforts saw light of the day.
I also acknowledge all the energy experts from where I gathered the data for this
project.
pportunity to acknowledge my friends and colleague for their
I also take this opportunity
contribution & myself for my individual efforts in the completion of this report.
Finally, I have no words to express my deep sense of gratitude to my institute Jaro
Education on behalf of United Business Institute for giving me this opportunity to
prepare
repare this project report,
report and in particular Mr. V. Zaveri for his guidance and
support.
Regards,
SOUMYADEEP BHUNIA
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CERTIFICATE FROM PROJECT GUIDE
This is to certify that the work contained in this report on Challenges &
Opportunities for Renewable Energy in Indian Perspective by Soumyadeep Bhunia
student of International MBA in Power,
Power Jaro Education on behalf of United Business
Institute, Belgium was done under my guidance and supervision for his Final Project
during the IInd semester.
To the best of my knowledge & belief the work has been based on the investigation
made, data collected & analyzed by him & this work has not been submitted
anywhere else for any other university or institution.
The work has been completed to my satisfaction.
30.01.2012
Date: _____________
________
____________________
Mr. Vivek Zaveri
Ahmedabad
Place: _____________
Manager
V Conservation
onservation Energy
Solutions India Pvt. Ltd.
Noida
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PREFACE
Renewable energy in India is a sector that is still undeveloped. India was the first
country in the world to set up a ministry of non-conventional
non conventional energy resources, in
early 1980s. However its success has been very spotty. In recent years India has
been lagging behind other nations
nations in the use of renewable energy (RE). The share of
RE in the energy sector is 10.63 % (as on 31/03/11) of total generation capacity of
India. Renewable energy in India comes under the purview of the Ministry of New
and Renewable Energy.
80% of global population
lation lives in developing areas. Of the 6.0 billion populations, in
the OECD countries the total number is approximately 1.2 billion North America
(0.4), Europe (0.6), Asia Pacific (0.2). In the non-OECD
non OECD countries, the population is
the balance 80% and i.e. 4.8 billion consisting of Asia Pacific (3.2), Russia-Caspian
Russia
(0.3), Middle-East
East (0.2), Africa (0.8) and Latin America (0.4). By the year 2030, the
global population is projected to be 8.0 billion rising at the rate of 0.9% per year and
in the year 2030,
0, the OECD countries would consist of North America (0.5), Europe
(0.6) and Asia Pacific (0.2), the total being 1.3 from the present level of 1.2 billion.
The balance 7.7 billion would be in non-OECD
non OECD countries. Therefore, during the
period 2005-2030, the population rise in the non-OECD
non OECD countries would be higher
than the population growth in the OECD countries. And, as a result, by the year
2030, the global population in the OECD countries would be a little more than 16%
and the balance about 84% would in the
t non-OECD countries.
As regards energy consumption, 16% of the global population in the OECD
countries, would consume, by the year 2030, more than 40% of energy and the
balance about 84% of the global population in the non-OECD
non OECD areas would consume
a little
le less than 60% of the total energy consumed in the world. No doubt, during the
period 2005 to 2030, the rate of growth of energy consumption in the non-OECD
non
countries would be higher than in OECD countries and would vary between 1.3% in
the Russian-Caspian
an area to 3.2% in the Asia Pacific areas, as opposed to the rate
of growth of energy consumption during this period in the OECD countries being in
the range of 0.6% in North America to 0.9% in the Asia Pacific region.
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Still as mentioned earlier, by

by the year 2030, 16% of global population would
consume as much as 40% of the energy and the balance 84% of the global
population would consume less than 60% of energy. Providing access to adequate
energy to their people is really a challenge for developing
developing countries.
India is one of the countries where the present level of energy consumption, by world
standards, is very low. The estimate of annual energy consumption in India is about
330 Million Tones Oil Equivalent (MTOE) for the year 2004. Accordingly, the
t
per
capita consumption of energy is about 305 Kilogram Oil Equivalent (KGOE). As
compared to this, the energy consumption in some of the other countries is of the
order of over 4050 for Japan, over 4275 for South Korea, about 1200 for China,
about 7850 for USA, about 4670 for OECD countries and the world average is about
1690.
Total Installed Capacity of power generation in India (as on 30-06-2011)
30
is
176,990.40 MW.. Among them about
a
65.34% of the electricity consumed in India is
generated by thermal power plants, 21.53% by hydroelectric power plants, 2.70% by
nuclear power plants and 10.42% by Renewable Energy Sources. More than 50% of
India's commercial energy demand is met through the country's vast coal reserves.
The country has also invested heavily
heavily in recent years in renewable energy utilization,
especially wind energy. In 2010, India's installed wind generated electric capacity
was 14,550 MW. Additionally, India has committed massive amount of funds for the
construction of various nuclear reactors
reactors which would generate at least 30,000 MW.
In July 2009, India unveiled a $19 billion plan to produce 20,000 MW of solar power
by 2022.
India has a vast supply of renewable energy resources, and it has one of the largest
programs in the world for deploying renewable energy products and systems.
Indeed, it is the only country in the world to have an exclusive ministry for renewable
energy development, the Ministry of Non-Conventional
Non Conventional Energy Sources (MNES).
Since its formation, the Ministry has launched one of
of the worlds largest and most
ambitious programs on renewable energy. Based on various promotional efforts put
in place by MNES, significant progress is being made in power generation from
renewable energy sources. In October, MNES was renamed the Ministry
Ministr of New and
Renewable Energy.
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Specifically, 3,700 MW are currently powered by renewable energy sources. This is

projected to be 10,000 MW from renewable energy by 2012. The key drivers for
renewable energy are the following:
1. The demand-supply
supply gap, especially as population increases
2. A large untapped potential
3. Concern for the environment
4. The need to strengthen Indias energy security
5. Pressure on high-emission
emission industry sectors from their shareholders
6. A viable solution for rural electrification
Also, with a commitment to rural electrification, the Ministry of Power has accelerated
the Rural Electrification Program with a target of 100,000 villages by 2012.
In recent years, India has emerged as one of the leading destinations for investors
from developed
ed countries. This attraction is partially due to the lower cost of
manpower and good quality production. The expansion of investments has brought
benefits of employment, development, and growth in the quality of life, but only to the
major cities. This sector only represents a small portion of the total population. The
remaining population still lives in very poor conditions.
India is now the eleventh largest economy in the world, fourth in terms of purchasing
power. It is poised to make tremendous economic
economic strides over the next ten years,
with significant development already in the planning stages. This report gives an
overview of the renewable energies market in India. We look at the current status of
renewable markets in India, the energy needs of the country, forecasts of
consumption and production, and we assess whether India can power its growth and
its society with renewable resources.
The Ministry of Power has set an agenda of providing Power to All by 2012. It seeks
to achieve this objective through
through a comprehensive and holistic approach to power
sector development envisaging a six level intervention strategy at the National,
State, SEB, Distribution, Feeder and Consumer levels.
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EXECUTIVE SUMMARY
Secure, reliable and affordable energy supplies are fundamental to global economic
stability and growth. The challenges ahead of us include the adequacy of energy
supplies, the threat of disruptive climate change and the huge investment
requirements to meet the growing global energy needs, particularly
particularly in the developing
countries.
Future energy demand and supply are subject to numerous uncertainties, most of
which are difficult to predict. Such as energy prices, particularly oil prices, global
economic growth rate, demographic changes, technological
technological advances, government
policies and consumer behaviour. In such a complex market, energy projections are
primarily based on historical information. The primary objective of any energyenergy
scenario analysis must be to analyze the main driving forces that would
wou shape our
energy future and the options ahead of us, rather than making accurate quantitative
projections. According to Paul Saffo (2007) Whether
Whether a specific forecast actually
turns out to be accurate is only part of the picture -- even a broken clock is
i right twice
a day. Above all, the forecaster's task is to map uncertainty, for in a world where our
actions in the present influence the future, uncertainty are opportunity.
This programme is looked after by the Ministry of Non-Conventional
Non Conventional Sources of
energy.
ergy. Since the availability of fossil fuel is on the decline therefore, in this backdrop
the norms for conventional or renewable sources of energy (RSE) is given
importance not only in India but has attracted the global attention.
The main RSE are as follows:
Solar Power
Wind Power
Hydro Power
Geo Thermal
Tidal/Ocean
Ocean energy
Bio fuel/Alternative fuels
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Evolution of power transformer technology in the country during the past five
decades is quite impressive. There are manufacturers in the country with full access
to the latest technology at the global level. Some of the manufacturers have
impressive R&D set up to support the technology.
Renewable energy is very much promoted by the Chinese Government. At the same
time as the law was passed,
sed, the Chinese Government set a target for renewable
energy to contribute 10% of the countrys gross energy consumption by 2020, a
huge increase from the current 1%.
It has been felt that there is rising demand for energy, food and raw materials by a
population
pulation of 2.5 billion Chinese and Indians. Both these countries have large coal
dominated energy systems in the world and the use of fossil fuels such as coal and
oil releases carbon dioxide (Co2) into the air which adds to the greenhouse gases
which lead
d to global warming.
The power generation in the country is planned through funds provided by the
Central Sector, State Sector and Private Sector. The power shortages noticed is of
the order of 11%. In the opinion of the experts such short fall can be reduced
red
through proper management and thus almost 40% energy can be saved. It has been
noticed that one watt saved at the point of consumption is more than 1.5 watts
generated. In terms of Investment it costs around Rs.40 million to generate one MW
of new generation
eration plant, but if the same Rs.40 million is spent on conservation of
energy methods, it can provide up to 3 MW of avoidable generation capacity.
There are about 80,000 villages yet to be electrified for which provision has been
made to electrify 62,000 villages from grid supply in the Tenth Plan. It is planned that
participation of decentralized power producers shall be ensured, particularly for
electrification
ectrification of remote villages in which village level organizations shall play a
crucial role for the rural electrification programme.
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TABLE OF CONTENTS
Contents
DECLARATION ................................................................................................................................
................................
......................................... I
ACKNOWLEDGMENT.............................................................................................................................
.............................................................................................................................
.............................................................................................................................II
CERTIFICATE FROM PROJECT GUIDE..................................................................................................
GUIDE....................................................................................................III
PREFACE.............................................................................................................................
.............................................................................................................................
...............................................................................................................................................IV
EXECUTIVE SUMMARY........................................................................................................................
SUMMARY........................................................................................................................VII
1.0 INTRODUCTION ...............................................................................................................................
................................
............................... 13
1.1 Primary and Secondary Energy ................................................................................................
................................... 13
1.2 Commercial Energy and Non Commercial Energy ................................................................
...................................... 14
1.2.1 Commercial Energy ................................................................................................
................................
.............................................. 14
1.2.2 Non-Commercial
Commercial Energy ................................................................................................
...................................... 14
1.3 Renewable and Non-Renewable
Renewable Energy................................................................
..................................................... 14
1.4 PURPOSE OF STUDY ................................................................................................
................................
................................................ 15
1.5 OBJECTIVE OF THE PROJECT................................................................................................
PROJECT
.................................... 16
1.6 IDENTIFICATION OF PROBLEM ................................................................................................
................................ 16
1.7 RESEARCH METHODOLOGY ................................................................................................
.................................... 17
2.0 INDIAN ENERGY AND CLIMATE CHANGE STATUS ................................................................
....................................... 17
2.1 Commercial Energy Consumption ..............................................................................................
.............................. 19
2.2 The Power Market in India and the Role of Renewable Energy .................................................
................................
20
2.3 Power Consumption................................
................................................................................................
.................................................... 22
2.4 Power Generation Capacity ................................................................................................
........................................ 24
3.0 THE STATUS OF RENEWABLE ENERGY IN INDIA................................................................
.............................................. 28
3.1 Renewable Energy Share of Electricity ................................................................
....................................................... 29
3.2 Renewable Energy Application in Industrial Use and Transportation ........................................
................................
31
3.3 Grid Connection and Status Overview ................................................................
........................................................ 33
3.4 Tradable Renewable Energy Credits ................................................................
........................................................... 33
4.0 VARIOUS SOURCE OF RENEWABLE ENERGY OPPORTUNITIES IN INDIA .........................................
................................
34
4.1 Solar ................................................................
................................................................................................
............................................ 35
4.1.1 Solar energy potential ................................................................................................
.......................................... 36
4.1.2 Solar thermal power generation technologies ................................................................
.................................... 37
4.1.3 Solar thermal power generation program of India ..............................................................
.............................. 39
4.1.4 Opportunities for solar thermal power generation in India ................................................
................................
39
4.1.5 PV & CSP Ratio ................................................................................................
................................
..................................................... 40
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4.1.6 Domestic Content (PV) ................................................................................................

......................................... 40
4.1.7 Domestic Content (CSP) ................................................................................................
....................................... 41
4.1.8 Jawaharlal Nehru National Solar Mission ................................................................
............................................ 42
4.1.8 Solar Farming Potential in India ................................................................
........................................................... 43
4.1.9 Challenges ................................................................................................
................................
............................................................ 48
4.2 Wind ................................................................
................................................................................................
............................................ 48
4.2.1 Wind Energy for power generation ................................................................
..................................................... 48
4.2.2 Indias Unique Proposition for Wind Energy:................................................................
Energy:
....................................... 50
4.2.3 Wind Power Capacity Installed in India ................................................................
............................................... 52
4.2.4 Wind Energy Business Opportunities in India ................................................................
...................................... 54
4.2.5 Power Plant Development stapes and opportunity in India ................................................
................................
55
4.2.6 Central and State Government Policies
Policies for Supporting Wind Power Projects .................... 57
4.3 Small Hydro ................................................................................................................................
................................
................................. 60
4.3.1 Introduction ................................................................................................
................................
......................................................... 60
4.3.2 Small Hydro Power Programme ................................................................
........................................................... 61
4.3.3 Small hydro installed capacity and progress................................................................
........................................ 62
4.3.4 Standards for Small Hydro ................................................................................................
................................... 64
4.3.5 States with Policy for Private SHP Projects
Proje ................................................................
.......................................... 64
4.3.6 Watermills ................................................................................................
................................
............................................................ 65
4.3.7 Manufacturing Status................................................................................................
Status
........................................... 66
4.3.8 Technical and consultation Services ................................................................
.................................................... 66
4.3.9 Real Time Digital Simulator for SHP ................................................................
..................................................... 66
4.3.10 Constraints in SHP ................................................................................................
................................
.............................................. 66
4.4 Geothermal Energy ................................................................................................
................................
..................................................... 66
4.4.1 Status and Trends ................................................................................................
................................
................................................ 67
4.4.2 Characteristics and Applications of Geothermal Energy .....................................................
................................
68
4.4.3 Geothermal Energy Scenario: India and world ................................................................
.................................... 69
4.4.4 Technology ................................................................................................
................................
........................................................... 70
4.4.5 Potential India ................................................................................................
................................
...................................................... 72
4.4.6 Historical Capacity & Consumption Data ................................................................
............................................. 73
4.4.7 Cost, Price and Challenges ................................................................................................
................................... 74
4.4.8 Drilling ................................................................................................................................
................................
.................................. 75
4.4.9 Transmission ................................................................................................
................................
........................................................ 75
4.4.10 Barriers ...............................................................................................................................
................................
............................... 76
4.4.11 Geo Thermal companies in India ................................................................
....................................................... 76
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4.4.12 RD&D Priorities ................................................................................................

................................
.................................................. 76
4.5 Tidal Energy ................................................................................................................................
................................
................................. 77
4.5.1 Technology ................................................................................................
................................
........................................................... 78
4.5.2 Potential of tidal energy in India ................................................................
.......................................................... 78
4.5.3 Proposed tidal power projects in India ................................................................
................................................ 79
4.5.4 Kachchh Tidal Power Project ...............................................................................................
............................... 79
4.5.5 Durgaduani Creek ................................................................................................
................................
................................................ 79
4.5.6 Tidal Barriers ................................................................................................
................................
........................................................ 80
4.6 Wave Power ................................................................................................................................
................................
................................ 81
4.6.1 Technology ................................................................................................
................................
........................................................... 81
4.6.2 Potential of Wave energy in India................................................................
........................................................ 81
2.6.3 Barriers ................................................................................................................................
................................
................................. 82
4.7 Biofuel ................................................................................................................................
................................
......................................... 82
4.7.1 Economics of biodiesel production from Jatropha ..............................................................
.............................. 83
4.7.2 Project operation and crediting period................................................................
period
................................................ 84
4.7.3 Project cost and financing ................................................................................................
.................................... 84
4.7.4 Project status ................................................................................................
................................
....................................................... 84
4.7.5 Biodiesel industry growth ................................................................................................
.................................... 84
5.0 CONCLUSION.....................................................................................................................
CONCLUSION..................................................................................................................................86
6.0 BIBLIOGRAPHY................................................................................................
..............................................................................................................................
................................89
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1.0 INTRODUCTION
Energy is one of the major inputs for the economic development of any country. In
the case of the developing countries, the energy sector assumes a critical
importance in view of the ever-increasing
ever increasing energy needs requiring huge investments
to meet them.
Energy can be classified into several types based on the following criteria:
Primary and Secondary energy
Commercial and Non commercial energy
Renewable and Non-Renewable
Renewable energy
1.1 Primary and Secondary Energy

Primary energy sources are those that are either found or stored in nature. Common
primary energy sources are coal, oil, natural gas, and biomass (such as wood).
Other primary energy sources available include nuclear energy from radioactive
substances, thermal energy stored
stored in earths interior, and potential energy due to
earths gravity. The major primary and secondary energy sources are shown in
Figure 1.
Figure 1: Major Primary and Secondary Sources
Primary energy sources are mostly converted in industrial utilities into secondary
energy sources; for example coal, oil or gas converted into steam and electricity.
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1.2 Commercial Energy and Non Commercial Energy

1.2.1 Commercial Energy
The energy sources that are available in the market for a definite price are known as
commercial energy. By far the most important forms of commercial energy are
electricity, coal and refined petroleum products. Commercial energy forms the basis
of industrial,
ial, agricultural, transport and commercial development in the modern
world. In the industrialized countries, commercialized fuels are predominant source
not only for economic production, but also for many household tasks of general
population.
Examples: Electricity, lignite, coal, oil, natural gas etc.
1.2.2 Non-Commercial
Commercial Energy
The energy sources that are not available in the commercial market for a price are
classified as non-commercial
commercial energy. Non-commercial
Non commercial energy sources include fuels
such as firewood,
wood, cattle dung and agricultural wastes, which are traditionally
gathered, and not bought at a price used especially in rural households. These are
also called traditional fuels. Non-commercial
Non commercial energy is often ignored in energy
accounting.
Example: Firewood,
wood, agro waste in rural areas; solar energy for
for water heating,
electricity generation, for drying grain, fish and fruits; animal power for transport,
threshing, lifting water for irrigation, crushing sugarcane; wind energy for lifting water
and electricity generation.
1.3 Renewable and Non--Renewable Energy

Renewable energy is energy obtained from sources that are essentially
inexhaustible. Examples of renewable resources include wind power, solar power,
geothermal energy, tidal power and hydroelectric power
power (See Figure 2). The most
important feature of renewable energy is that it can be harnessed without the release
of harmful pollutants. Non-renewable
renewable energy is the conventional fossil fuels such as
coal, oil and gas, which are likely to deplete with time.
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Figure 2: Renewable and Non-Renewable Energy
1.4 PURPOSE OF STUDY
To
o provide an overview of renewable energy sources available in India and the
potentiality
ity of the various resources.
resources The government of India is formulating policies
to promote the application of renewable energy technologies. Various
Va
opportunity
and constrain to develop new Renewable Energy projects in different location as per
available resource will assist the process of developing renewable energy sector for
India.
In terms of scope:
The study covers solar energy, wind energy, small hydro, wave energy and
geothermal energy
The study compares estimates of the cost of electricity produced from
renewable
ewable energy and the present cost of fossil fuel based electricity
generated in India
The
he study presents an assessment of available renewable energy
technologies and steps of business developments in India considering the
available renewable energy resources,
resou
strategic location with ongoing projects
overview
The study considers mechanisms used to provide financial incentives for
promoting renewable energy projects, and identifies mechanisms which could
be applied in India.
The technological development of renewable energy technologies is an ongoing
process and technologies which are not economically viable today may very soon
become relevant for India due to the present rapid technological development of
renewable energy technologies.
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1.5 OBJECTIVE OF THE PROJECT
To provide an overview of renewable energy resources and recent

development status
Detailed geographical location identification for different sources of renewable
energy
To make an overall cost estimation overview for power generation in selective
renewable energy source
Preparation of business development steps for selective resources
Making a brief of renewable energy future in India.
I
1.6 IDENTIFICATION OF PROBLEM
India is perceived as a developing country, but it is developing at a pace that is not

matched by many others. We have experienced significant economic growth. Yet the
fact remains that our growth is constrained by energy supply and availability.
Although we have seen an impressive increase in installed capacity addition,
additio from
barely about 1,350 MW at the time of independence (1947) to about 160,000 MW
today, over 90,000 MW of new generation capacity is required in the next seven
years. A corresponding investment is required in transmission and distribution.
The increasing
ng appetite for energy that has developed in the recent past has been
further complicated by rapidly diminishing conventional sources, like oil and coal. To
further add to the problems of increased demand and constrained supply, there are
serious questions about pursuing a fossil fuel-led
fuel led growth strategy, especially in the
context of environmental concerns. The challenge facing a developing nation such
as ours is to meet our increasing energy needs while minimizing the damage to the
environment.
This is why,, while striving to bridge our energy deficit, India wants
want to increase the
share of clean, sustainable, new and renewable energy sources. Whether or not
renewable energy completely replaces fossil fuel, we are determined to develop
renewable energy to its fullest potential.
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1.7 RESEARCH METHODOLOGY

1.7.1 DATA COLLECTION:
The task of data collection begins after a research problem has been defined and the
research design/plan chalked out. The data are collected in order to get the result of
the problem.
1.7.2 SECONDARY DATA:
These are the data which have been collected by desktop study which have already
been passed through the statistical process. In this the researchers have to decide
which sort of data he would be going to use. So the secondary data is also collected
in order to get the information. The data collected was from the articles by
distinguished publications, manuals, journals, magazines, and books.
1.7.3 SAMPLE DESIGN:
The sample is taken from the various government and non government websites
web
as
real time data was not possible to get due to immobility and the time factor. The
method used to select sample is Convenient Sampling Method.
In this study I have taken the data from various sites of to analyze Challenges &
Opportunities for Renewable
ewable energy in Indian Perspective.
Perspective. For this I have analyzed
the charts, and diagrams.
2.0 INDIAN ENERGY AND CLIMATE CHANGE STATUS

In 2008, India accounted for 17.7% of the world population but was the fifth-largest
fifth
consumer of energy, accounting for 3.8%
3.8% of global consumption. Indias total
commercial energy supply is dominated by coal and largely-imported
largely imported oil with
renewable energy resources contributing less than 1% (this does not include hydro >
25 MW). Coal also dominates the power generation mix, though
tho
renewable
resources now account for approximately 10% of installed capacity. The current
power-generating
generating capacity is insufficient to meet current demand, and in 20092010,
2009
India experienced a generation deficit of approximately 10% (84 TWh) and a
corresponding
esponding peak load deficit of 12.7% (over 15 GW). Indias frequent electricity
shortages are estimated to have cost the Indian economy 6% of gross domestic
product (GDP) in financial year 20072008.
2007 2008. To power the economic growth currently
being targeted, itt is estimated that India will need to more than double its installed
generating capacity to over 300 GW by 2017. In recent years, control over
generating facilities has shifted from being dominantly controlled by the states to the
federal government and private
private entities, including those who have set up captive
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power plants to power their industrial facilities. The private sector is dominant in
renewable energy generation. Indias energy future will not just be shaped by the
central grid and large-scale
scale generating
gen
facilities fuelling industrial growth but also by
the goal of increasing the well-being
well being of Indias poor populations by providing
electricity access to the approximately 400 million citizens without. The Government
of India recognizes that development of local, renewable resources
resources is critical to
ensure that India is able to meet social, economic, and environmental objectives and
has supported the development of renewable energy through several policy actions.
Energy planning in India is taking place in the context of climate change
c
negotiations. India participates in the international climate negotiation process, has
pledged to reduce its economys greenhouse gas (GHG) intensity, and has pledged
that its per capita emissions will not exceed those of developed nations. India has
implemented a National Action Plan on Climate Change (NAPCC), which suggested
that 15% of energy could come from renewable sources by 2020. The NAPCC has
eight National Missions, one of which is focused specifically on renewable energy:
The Jawaharlal Nehru
ru National Solar Mission (JNNSM). India is an active participant
of the Clean Development Mechanism (CDM) with the second largest number of
projects registered among all countries participating, the majority of which are
renewable energy projects.
The
he electricity intensity of the Indian economythe
economy the percentage growth of electricity
consumption that correlates with 1% of economic growthfell
growth fell from approximately
3.14% in the 1950s to 0.97% in the 1990s.11 In 2007, it was at 0.73%. The main
reason for thiss reduction is that Indias growth until now was based more on the
service sector (with an electricity intensity of only 0.11%) than on growth in industrial
production (with an electricity intensity of 1.91%).12 Today, for each 1% of economic
growth, India needs around
0.75% of additional energy.13 The Planning Commission of India, which coordinates
Indian long-term
term policy, analyzes different scenarios; one scenario assessed that this
value could fall to 0.67% between 20212022
2021
and 20312032.14
2032.14 India is facing
fac
a
formidable challenge to build up its energy infrastructure fast enough to keep pace
with economic and social changes. Energy requirements have risen sharply in recent
years, and this trend is likely to continue in the foreseeable future. It is driven by
Indias strong economic and population growth as well as by changing lifestyle
patterns. Growth and modernization essentially follow the energy-intensive
energy intensive Western
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model of the 19th and 20th centuries, in which economic growth correlates with a
comparable
e growth in the energy use.
For GDP annual growth of 8%, the Planning Commission estimates that the
commercial energy supply would have to increase at the very least by three to four
times by 20312032
2032 and the electricity generation capacity by five to six times over
20032004
2004 levels.15 In 2031
2031 2032, India will require approximately 1,5002,300
1,500
million tonnes of oil equivalent (MTOE) to cover its total commercial energy needs.16
The Indian government by itself does not have sufficient financial resources
resou
to solve
the problem of energy shortages. It must rely on cooperation with the private sector
to meet future energy requirements. This opens up interesting market opportunities
for international companies.
2.1 Commercial Energy Consumption

Indias share
re of the global commercial energy19 consumption in 2008 was 3.8%
(433 of 11,295 MTOE), increased from 2.9% over the past 10 years, thus making it
the fifth largest consumer of commercial energy. By comparison, China holds 19.6%
of the population and consumes
consu
17.7% of commercial energy.
Figure 3: Worldwide consumption of primary sources of energy by country (2008)
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Indias total consumption of commercial energy increased from 295 MTOE in the
year 2000 to 433 MTOE in 2008 with an average annual growth rate of 4.9% Coal is
by far the most important energy source for India; it provides more than half of the
commercial energy supply. Oil, mostly imported, is the second most important
source of energy, followed by gas and hydropower
hydropowe (see Figure 1-4).
4). So far, nuclear
(atomic) power covers only a small portion of the commercial energy requirement
(approximately 1.5%). With less than 1%, renewable energy plays a minor role (this
does not include hydro > 25 MW), and therefore, it is not even visible in Figure 1-3,
1
though its share is projected to increase significantly. The traditional use of biomass
(e.g., for cooking) has not been included here as a source of energy. However, the
2001 Census points out that approximately 139 million of the total 194 million
households22 in India (72%) are using traditional forms of energy such as firewood,
crop residue, wood chips, and cow dung cakes for cooking.23 The majority of these
households are in rural areas. Firewood, used by approximately 101 million
households, is the main cooking fuel in India.
Figure 4: Percentage share of commercial energy sources in India
2.2 The Power Market in India and the Role of Renewable Energy
While India has been making progress in different infrastructural areas such as the
construction of roads and expansion of the telecommunication system, the power
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infrastructure has not kept pace with the growing requirements. Indias power market
is confronted
onted with major challenges regarding the quantity as well as the quality of
the electricity supply. The base-load
base load capacity will probably need to exceed 400 GW
by 2017. In order to match this requirement, India must more than double its total
installed capacity,
acity, which as of March 2010 was 159 GW.25 Moreover, Indias power
sector must ensure a stable supply of fuels from indigenous and imported energy
sources, provide power to millions of new customers, and provide cheap power for
development purposes, all while
while reducing emissions. On the quality side, the
electricity grid shows high voltage fluctuations and power outages in almost all parts
of the country on many days for several hours.26 According to the Global
Competitiveness Report, in 20092010
2009
(weighted
ed average), India ranked 110
among 139 countries in the category Quality of Electricity Supply.27 The power
deficit reported for 20082009
2009 was almost 84 TWh, which is almost 10% of the total
requirement; the peak demand deficit was more than 12.7% at over
over 15 GW.28 The
electricity undersupply in India is estimated to cost the economy as much as INR 34
(USD 0.68) to INR 112 (USD 2.24) for each missing kilowatt-hour.
kilowatt hour. Thus, the total
cost of the power deficit of 85 billion kWh in financial year 20072008
2007 2008 amounted
amo
to at
least INR 2,890 billion (USD 58 billion), or almost 6% of the GDP.29 Another report
states that there is an approximately 7% decrease in the turnovers of Indian
companies due to power cuts.30 As a consequence, many factories, businesses,
and private
ivate customers have set up their own power generation capacities in the form
of captive power plants or diesel generators in order to ensure their power supply.
This provides an attractive opportunity for renewable energy solutions; they compete
not with power produced relatively cheaply by large coal plants but with much more
expensive
diesel back-up
up
generators.
Until 1991, the Indian
government
monopolized the power market. There were only a few private actors, and the CEA
had sole responsibility for giving
giv
techno-economic
economic clearance to new plants.
However, the public sector has been unable to cater to the growing demand for
power, and in the future, investment requirements in the public sector will far exceed
the resources. Current energy policies therefore
therefore place an emphasis on the
integration of the private sector along the entire value chain: from the generation of
power to transmission and distribution.
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The Electricity Act 2003 displaced former energy laws and expanded them
comprehensively.31
31 The aim of the act was the modernization and liberalization of
the energy sector through the implementation of a market model with different
buyers and sellers. The main points included making it easier to construct
decentralized power plants, especially
especially in rural areas and for captive use by
communities, and giving power producers free access to the distribution grid to
enable wheeling. Producers could also choose to sell power directly to consumers
rather than through the financially weak State Electricity
Electricity Boards (SEBs). Through the
Electricity Act, the different legal frameworks are to be unified at a state level to
promote foreign direct investment in the country. Given the long-term
long term energy deficit
and the growth trajectory of the Indian economy, the Indian investment community
has responded positively. However, international investors are still hesitant. The
largest barrier to more foreign private investment in the energy market is the energy
price itself. In many customer sections and regions, they are
are too low to generate
stable and attractive returns. Despite being an impractical drain on resources, the
government has so far failed to adjust prices. The key reason is that cheap or free
electricity is an important political token in a country where the
the majority of the
population still lives on a very low income.
2.3 Power Consumption

Indias average power consumption per person was 733 kWh in 2009, and the
average annual rate of increase since 2003 was 4.4%, 33 as shown in Figure
Figure 5 :Per capita annual electricity consumption in India
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In 2008, a total of 596,943 GWh were consumed in India. The largest consumer was
industry with 274,531 GWh (46%), followed by households with 124,562 GWh
(21%), and agriculture
ture with 107,835 GWh (18%). In the commercial sector (e.g.,
offices and shops), 48,047 GWh (8%) were consumed, 11,615 GWh (2%) in rail
traffic, and 30,353 GWh (5%) in various other sectors.
Figure 6 : India electricity consumption sector-wise (utilities & non-utilities,

utilities, 20082009)
2008
Between 1980 and 2009, energy consumption increased by almost seven times from
85,334 GWh to 596,943 GWh, which corresponds to an average annual growth rate
of approximately 7.1%. The strongest increase was the consumption by private
households, which increased by almost 14 times since 1980 at an average annual
growth rate of 10%. The reason for this increase was the inclusion of several million
new households, corresponding to the increase in electrical
electrical household appliances
such as refrigerators and air conditioners. The agricultural share increased sevenseven
fold at an annual growth rate of 7.6% between 1980 and 2008. The reason for a
strong growth in the agricultural sector is, first, the inclusion
inclusion of more rural areas, and
second, the provision of power to farmers at reduced, or even frees,
frees rates in many
areas. The consequence of this latter practice was the widespread purchase of
cheap and inefficient water pumps that continue to run almost uninterrupted. The
slowest growth in power consumption was seen in the industrial sector at 5.9% per
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year, which still corresponds to a five-fold

five fold increase.37 The main drivers for the
strong growth in the demand for power are the overall economic growth, the powerpower
intensive manufacturing industry that is growing disproportionately fast, the rapidly
rising consumption in households due to the affordability of new electrical
appliances, the planned provision of power to 96,000 currently un-electrified
un electrified villages,
and the provision of power for latent demand, which is currently unfulfilled because
of frequent power cuts.
2.4 Power Generation Capacity

The total power generation capacity in India in March 2010 was 159 GW. Of this,
64.3% was fossil-fuel-fired
fired power plants (coal, gas, and diesel), 23.1% hydropower,
2.9% nuclear power, and 9.7% renewable energy.
energ
(Renewable
Renewable energy includes small hydropower plants (< 25 MW), biomass gasification, biomass
energy, urban and industrial waste energy, solar energy, and wind energy)
energy
Figure 7 : Installed capacities for power generation in India according to energy source (March 2010)
The composition of the power sector has changed significantly in the last 30 years.
The power generation capacity controlled directly by the central government has
increased from 12% to 32%. At the same time, the
the fraction of generation capacity
controlled by the individual states fell from 83% to 50%. Generation capacity
controlled by the private sector more than tripled from 5% to 18%. The private sector
dominates in power generation from renewable energy sources.
sourc
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(Includes
Includes small hydropower plants (< 25 MW), biomass gasification, biomass energy, urban and
industrial waste energy, solar energy, and wind energy)
energy
Figure 8 : Percentage of public and private sector power generation capacity
The National Electricity Policy (NEP) assumes that the per capita electricity
consumption will increase to 1,000 kWh by 2012. To cover this demand, the
government is planning to add 78,700
78,700 MW of capacity during the Eleventh Five-Year
Five
Plan43 (Eleventh Plan) ending March 2012. As of April 2010, 22,552 MW of new
installation toward that goal had been achieved. There are further projects under
construction with a total capacity of 39,822 MW. As
A per the mid-term
term plan review,
capacity additions of 62,374 MW are likely to be achieved with a high degree of
certainty and another 12,000 MW with best efforts.44 Figure 1-9
1 shows Indias
capacity growth from the end of the Eighth Plan in 1997 to projections
project
through the
end of the Eleventh Plan.
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Figure 9 : Development of installed electrical capacities of utilities and non-utilities

non utilities in India
Figure shows the technology breakdown of the 78,700 MW targeted in the Eleventh
Plan. The largest share of 59,693 MW is to be provided by thermal power plants.
Additionally, 15,627 MW is to be provided by hydro and 3,380 MW by nuclear power.
The central government undertakings, such as those of the National Thermal Power
Corporation orr the National Hydro Power Corporation, will contribute the most.
Figure 10 : Forecast growth in capacity by the end of the Eleventh Plan according to sector (2012)
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In March 2009, the gross electricity generation48 by utilities

utilities in India was 746.6 TWh.
In addition, 95.9 TWh was generated by non-utilities
non utilities and another 5.9 TWh were net
imports.
The total generation available was thus 848.4 TWh, which corresponds to a rise of
3.3% as compared to the previous year.49 As these figures
figures show, the trend in
growth rates is inadequate in view of the rapid increase in demand for power.
Figure 11 : Power Generation Growth
Electricity Generation Efficiency Conventional thermal power generation in India

faces three main challenges:
1. The low average conversion efficiency of the plants (30%).
2. The low quality of the coal itself, which has high ash content and a low calorific
value (3,5004,000
4,000 kcal/kg).51
3. The fixed electricity off-take
take price, which does not reward efficiency gains.
It is estimated that at least 25%30%

25%
of the capacity in
n power plants in India is old
and inefficient and operates at high heat rates and low utilization levels.52 To
overcome
these
challenges,
the
Indian
government
has
implemented
comprehensive program that includes a large-scale

large scale renovation and modernization
modernizatio
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Perspective
(R&M) program for existing power plants, the promotion of supercritical technology
for Ultra Mega Power Projects at pithead locations, the promotion of use of imported
higher quality coal (from South Africa, Australia, and Indonesia) for coastal locations,
location
the set-up
up of coal washing facilities for domestic coal, and the promotion of an IGCC
technology for gas plants. Also, new power plant projects are being awarded via a
competitive bidding process based on the lowest price offer for electricity sold to the
t
grid. Since 1985, nearly 400 units (over 40 GW) have been serviced through the
R&M program. According to The Energy and Resources Institute (TERI), R&M could
improve electricity generation by 30%, reduce emissions by 47%, and increase
energy conversion efficiency by 23%.53 The R&M program currently faces two
challenges to successful completion. First, the rising electricity demand makes it
difficult to take plants off the grid for maintenance work. Second, sometimes the
costs to repair or upgrade old power
power generation equipment exceed 50% of the costs
of an entirely new plant. In such cases, repair is not economically viable. However,
given the rising demand, such plants cannot be taken off the grid either. Although
many newer, privately operated plants are
are more efficient than state-owned
state
plants,
there is still a technology deficit across the power generation sector, mainly with
respect to the latest supercritical technology. The performance of Indias existing
supercritical power plants has so far failed to
to meet expectations.54 This presents a
great opportunity for international technical cooperation.
3.0 THE STATUS OF RENEWABLE ENERGY IN INDIA

India has over 17 GW of installed renewable power generating capacity. Installed
wind capacity is the largest share at over 12 GW, followed by small hydro at 2.8 GW.
The remainder is dominated by bio energy, with solar contributing only 15 MW. The
Eleventh Plan calls for grid-connected
grid connected renewable energy to exceed 25 GW by 2012.
JNNSM targets total capacity of 20 GW grid-connected
connected solar power by 2022.
Renewable energy technologies are being deployed at industrial facilities to provide
supplemental power from the grid, and over 70% of wind installations are used for
this purpose. Biofuels have not yet reached a significant scale in India. Indias
Ministry of New and Renewable Energy (MNRE) supports the further deployment of
renewable technologies through policy actions, capacity building, and oversight of
their wind and solar research institutes. The Indian Renewable
Renewable Energy Development
Agency (IREDA) provides financial assistance for renewable projects with funding
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from the Indian government and international organizations; they are also
responsible for implementing many of the Indian governments renewable energy
ener
incentive policies. There are several additional Indian government bodies with
initiatives that extends into renewable energy, and there have been several major
policy actions in the last decade that have increased the viability of increased
deployment of renewable technologies in India, ranging from electricity sector reform
to rural electrification initiatives. Several incentive schemes are available for the
various renewable technologies, and these range from investment-oriented
investment
depreciation benefits to generation-oriented
generation oriented preferential tariffs. Many states are now
establishing Renewable Purchase Obligations (RPOs), which has stimulated
development of a tradable Renewable Energy Certificate (REC) program.
3.1 Renewable Energy Share of Electricity

As of June 2010, India was one of the world leaders in installed renewable energy
capacity, with a total capacity of 17,594 MW (utility and non-utility),58
non
which
represents approximately 10% of Indias total installed electric generating
capacity.59 Of that
hat total, 17,174 MW were grid-connected
grid connected projects, and the
remaining 2.4% of installed renewable capacity consisted of off-grid
off grid systems.60 The
wind industry has achieved the greatest success in India with an installed capacity of
12,009 MW at the end of June
June 2010. India has also installed 2,767 MW of small
hydro plants (with sizes of less than 25 MW each), 1,412 MW of grid-connected
grid
cogeneration from bagasse, and 901 MW of biomass-based
biomass based power from agro
residues. Waste-to-energy
energy projects have an installed capacity
capacity of 72 MW. India has
off-grid
grid renewable power capacities of 238 MW from biomass cogeneration, 125 MW
from biogas, 53 MW from waste-to-energy,
waste energy, 3 MW from solar PV plants, and 1 MW
from hybrid systems.
With the recently announced JNNSM described in Chapter
Chapter 4, India hopes to develop
more of its solar resource potential. As of June 2010, solar PV plants in India had
reached a cumulative generation capacity of approximately 15.2 MW. This is
approximately 0.07% of JNNSMs 2022 target of 22 GW.62 As reported by CSP
Today,, JNNSMs goal would make India the producer of almost three-quarters
three
of
the world's total solar energy output.63 By the end of the Tenth Plan (2007), India
achieved a cumulative installed capacity of 10.161 GW of renewable energy (see
Table 2-1).
1). Additions totaling 15 GW are targeted during the Eleventh Plan to bring
the total installed grid-connected
connected renewable generating capacity to over 25 GW.
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Wind energy is expected to contribute approximately two-thirds

two thirds of the added
capacity in this plan period. If India is able to achieve its renewable energy goals by
2022 (by the end of the Thirteenth Plan), it will reach a total of 74 GW of installed
capacity for wind, solar energy, biomass, and small hydropower, with wind and solar
expected to account for more than 80% of the installed renewable power.
Table 1: Table Development of Grid-connected
connected Renewable Power in India (in MW)
Achieved
In Process
Anticipated
Targets
Five-year
By the End of
10th Plan
Anticipated
By the End of
By the End of
Plan
the 9th Plan
(additions
in the 11th
the 11th Plan
the 13th Plan
(cumulative
during
Plan
(cumulative
(cumulative
installed
plan
(additions
installed
installed
capacity)
period)
during plan
capacity)
capacity)
Through 2012
Through
period)
Years
Through
2002 -
2007 - 2012
2002
2007
Wind
1,667
5,415
10,500
17,582
40,000
Small
1,438
520
1400
3,358
6,500
Biomass
368
750
2,100
3,218
7,500
Solar
1,000
1,003
20,000
Total
3,475
6,686
15,000
25,161
74,000
2022
Hydro
Although the government provides assistance for renewable energy implementation

in the form of generation-based
based incentives (GBIs), subsidies, subsidized credits, and
reduced import duties, the Indian market does not offer investors a framework that is
as investor-friendly
friendly as in some developed countries. The main reason is that
renewable energy sources are not systematically prioritized over non-renewable
non
sources at a given national budget and a given power demand scenario. While the
market certainly offers great opportunities for investors, it also requires adaptation
and entrepreneurship to develop solutions that specifically fit the Indian scenario.
Off-grid
grid applications for rural electrification and captive power for industries offer a
promising opportunity
ty for renewable energy technologies in India. Both of these
applications can benefit from renewable energy's advantages over conventional
energy sources: local control of the energy resource and power system and
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suitability to smaller-scale
scale applications. Renewable energy's competition is typically
either a costly connection to the national grid or diesel generator-based
generator based power with
its high maintenance and fuel costs. On average, the cost of producing power for a
coal plant is about INR 2 (USD 0.03) per kWh,
kWh, while electricity from a diesel
generator plant is approximately INR 10 (USD 0.20) per kWh.
kWh To compete effectively
with these established technologies, renewable energy technologies require
business models adapted to the characteristics of renewable power
powe plants that
include plans for efficient marketing, distribution, operation and maintenance, and
access to financing. For on-grid
on grid application of renewable energy, growth depends on
grid infrastructure improvements and the continued reduction of renewable energy
costs. Currently, wind, small hydro, and biomass are the most cost-competitive
cost
renewable options. Solar technologies, including concentrated solar power (CSP)
and PV, are the least competitive but offer the greatest opportunity for growth
because of the high potential. It therefore receives the most financial support in
terms of government incentives.
Energy Type
Electricity
Source
Generation Costsin
INRIkWh (USDIkWh)
Coal
1
12
(0.020.04)
IIcKinsey - Powering India
Nuclear
2
23
(0.040.06)
McKinsey - Powering India
Large Hydro
3 (0.060.08)
3-4
IbicKinsey - Powering India
Gas
4
46
(0.080.12)
Diesel
10+ (0.20+)
Wind (on-shore)
3
34.5
(0060.09)
Industry experts
Small Hydro
3
34
0060,08
Industry experts
Biomass
4
45
(0.060.10)
Industry experts
Solar (CSP)
10
1015
(0.200.30)
Industry experts
Solar (PV)
12
1220
(0.240.40)
Industry experts
Table 2 : Table Power Generation Costs in India by Energy Source 2008
3.2 Renewable Energy Application in Industrial Use and Transportation

A large percentage of renewable energy in India is covered under captive generation
for industrial use. This is especially true in the wind market where 70% of electricity
from wind projectss is produced for direct consumption by large industrial facilities to
mitigate the effect of frequent shortages of electricity from the national grid.
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Telecommunications companies are also looking toward renewable energy as they

search for new solutions to
o power Indias 250,000 telecom towers. Systems such as
solar PV-based
based hybrid systems provide a less polluting alternative to diesel power,
serve as a hedge against increasing diesel fuel prices, and help minimize the
logistical challenges of transporting and storing diesel fuel at remote tower locations.
For the last 2 years, solar cooling has been a buzzword in the industry. While its
attraction in a country as sunny and hot as India is obvious, the technology is still
under development and is not yet
yet economically viable. There are, however, some
demonstration sites such as the Muni Seva Ashram in Gujarat, which uses parabolic
Scheffler-type
type dishes to supply a 100100 ton air-conditioning system.
For the last 2 years, solar cooling has been a buzzword in
in the industry. While its
attraction in a country as sunny and hot as India is obvious, the technology is still
under development and is not yet economically viable. There are, however, some
demonstration sites such as the Muni Seva Ashram in Gujarat, which
whic uses parabolic
Scheffler-type
type dishes to supply a 100100 ton air-conditioning
conditioning system.68 On the
transportation front, there have been initiatives to switch to alternative transportation
fuels such as compressed natural gas and electricity. The Reva, developed
develope by the
Maini Group, is Indiasand
and one of the worldsfirst
worlds first commercially available electric
car. TATA and General Electric are also in the process of developing electric
vehicles. In addition, highly visible pilot projects are deployed to increase public
interest in renewable energy technologies. The October 2010 Commonwealth
Games in New Delhi are showcasing renewable energy for transportation and other
uses including the utilization of at least 1,000 solar rickshaws, which use PVPV
powered motors for transporting
sporting athletes at the games.69 Also, a 1 MW PV plant will
provide electricity for one of the stadiums at the games.70 Liquid bio fuels, namely
ethanol
and
biodiesel,
are
considered
substitutes
for
petroleum
petroleum-
derived
transportation fuels. In India, ethanol

ethanol is produced by the fermentation of molasses, a
by-product
product of the sugar industry, but more advanced conversion technologies are
under development, which will allow it to be made from more abundant
lignocelluloses biomass resources such as forest and agricultural
agricultural residues. Biodiesel
production is currently very small, using non-edible
non edible oilseeds, waste oil, animal fat,
and used cooking oil as feedstock. However, given the fact that India consumes
more diesel than gasoline in the transportation sector, it is expected that the
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production of biodiesel and other biomass-derived

biomass derived diesel substitutes will grow over
the next decade.
3.3 Grid Connection and Status Overview

In March 2009, the Indian power network had a total length of 7.49 million circuit
kilometres (ckm).91 In comparison to the power generation sector, investments into
the transmission and distribution networks have been lower in recent years.
Nevertheless, the transmission network has improved considerably. The distribution
network, however,
er, remains in a poor state. In the ongoing Eleventh Plan, the highhigh
voltage network is to be extended by around 95,000 ckm to a capacity of more than
178,000 mega volt amperes (MVA). In the low-voltage
low voltage area, an additional 3,253,773
ckm and a capacity of 214,000
4,000 MVA are to be added. Another extremely important
task is the Power for All by 2012 mission,92 declared by the Government of India
India
the ambitious goal of providing power to all Indian villages by 2012, to a large extent
through grid access.
3.4 Tradable
ble Renewable Energy Credits
Naturally, the availability of renewable energy sources differs across India. In some
states, such as Delhi, the potential for harnessing renewable energy compared to the
demand for energy is very small. In other states, such as Tamil Nadu for wind,
Rajasthan for solar, or Himachal Pradesh for hydro, it is very high. This offers
opportunities for inter-state
state trading in the form of RECs. Such trade allows for more
economically efficient development of renewable energy throughout the country as
distribution licensees in states with limited resources can purchase RECs associated
with renewable generation in other states where it is less expensive to develop
renewable energy projects. In this way, each states RPO can be met in the most
economically efficient manner. In January 2010, CERC announced the terms and
conditions for a tradable REC program as follows:
There will be a central agency, to be designated by CERC, for registering RE
generators participating in the scheme.
The renewable energy generators will have two options either sell the renewable
energy at a preferential tariff fixed by the concerned Electricity Regulatory
Commission, or sell the electricity generation and environmental attributes
associated with RE generation
eration separately.
On choosing the second option, the environmental attributes can be exchanged in
the form of REC. Price of the electricity component would be equivalent to the
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Perspective
weighted average power purchase cost to the distribution company, including shortterm power purchase but excluding renewable power purchase cost.
The central agency will issue the REC to renewable energy generators.
The value of one REC will be equivalent to 1 MWh of electricity delivered to the grid
from renewable energy
nergy sources.
The REC will be exchanged only in the power exchanges approved by CERC
within the band of a floor price and a forbearance (ceiling) price to be determined by
CERC from time to time.95 CERC issued an amendment to the terms in September
2010
10 clarifying participation of captive generation plants and restricting participation
of any generator terminating an existing PPA to sell power under the REC scheme.
The two paths under which renewable power will be sold under the REC program
are illustrated in Figure.
Figure 12 : Route for sale of renewable energy generation
4.0 VARIOUS SOURCE OF RENEWABLE ENERGY OPPORTUNITIES IN

INDIA
There is an urgent need for transition from petroleum-based
petroleum based energy systems to one
based on renewable resources to decrease reliance on depleting reserves of fossil
fuels and to mitigate climate change. In addition, renewable energy has the potential
to create
ate many employment opportunities at all levels, especially in rural areas. An
emphasis on presenting the real picture of massive renewable energy potential, it
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would be possible to attract foreign investments to herald a Green Energy Revolution

in India.
India is facing an acute energy scarcity which is hampering its industrial growth and
economic progress. Setting up of new power plants is inevitably dependent on import
of highly volatile fossil fuels. Thus, it is essential to tackle the energy crisis through
judicious utilization of abundant the renewable energy resources, such as biomass
energy, solar energy, wind energy and geothermal energy.. Apart from augmenting
the energy supply, renewable resources will help India in mitigating climate change.
India is heavily dependent on fossil fuels for its energy needs. Most of the power
generation is carried out by coal and mineral oil-based
oil based power plants which contribute
heavily to greenhouse gases emission.
The average per capita consumption of energy
energy in India is around 500 W, which is
much lower than that of developed countries like USA, Europe, Australia, Japan etc.
However, this figure is expected to rise sharply due to high economic growth and
rapid industrialization. The consumption of electricity
electricity is growing on the worldwide
basis. Energy is a necessity and sustainable renewable energy is a vital link in
industrialization and development of India. A transition from conventional energy
systems to those based on renewable resources is necessary to meet the everincreasing demand for energy and to address environmental concerns.
4.1 Solar
India has huge untapped solar offgrid opportunities, given its ability to provide energy
to vast untapped remote rural areas, the scope of providing backup power to
t cell
towers and its inherent potential to replace precious fossil fuels, said a solar
equipment company.
The off-grid
grid opportunities are significant, given the cost involved in offgrid
applications when compared to huge financial investments to be made to set up
grids.
Moreover, specific government incentives to promote off grid applications, rapid
expansion of wireless telecom and telecom companies' desire to reduce operating
cost for base stations (due to diesel cost and losses in diesel pilferage) are also
a
expected to prompt growth in off-grid
off
opportunities.
The potential of replacing huge usage of kerosene used for lighting rural homes
makes off-grid
grid applications desirable. Off-grid
Off grid PV application examples include
remote village electrification, power irrigation pump sets, telecom towers, backup
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power generation,
ion, captive power generation and city, street, billboard and highway
lighting.
India already has the world's best solar resources and can position itself to be global
leader in Solar PV. To meet energy demands, the government has approved the
Jawaharlal
rlal Nehru National Solar Mission, aimed at generating 20,000 MW by 2022.
India's Jawaharlal Nehru National Solar Mission (JNNSM), a major initiative of the
government of India, has set itself a goal of creating an enabling policy framework for
deploying 20GW
0GW of solar power by 2022. India's objectives and intentions are
commendable. Yet, as we have seen globally, once governments announce their
intentions to develop a solar incentive program a variety of interest groups, each
with their own agenda, get involved
involved to put their stamp on the policy. The final output
of the recently released policy guidelines reflects both the overarching objectives of
developing clean solar power, addressing power shortages and stakeholder
concessions.
This is our preliminary perspective on the recently released guidelines for new gridgrid
connected solar power projects in India. In the future, we will take further in-depth
in
looks at specific policy aspects and Indias opportunities and challenges as the
market develops.
4.1.1 Solar energy potential
India is located in the equatorial sun belt of the earth, thereby receiving abundant
radiant energy from the sun. The India Meteorological Department maintains a
nationwide network of radiation stations, which measure solar radiation, and
an also the
daily duration of sunshine. In most parts of India, clear sunny weather is experienced
250 to 300 days a year. The annual global radiation varies from 1600 to 2200
2
kWh/m , which is comparable with radiation received in the tropical and sub-tropical
regions. The equivalent energy potential is about 6,000 million GWh of energy per
year. Figure 1 shows map of India with solar radiation levels in different parts of the
country. It can be observed that although the highest annual global radiation
radia
is
received in Rajasthan, northern Gujarat and parts of Ladakh region, the parts of
Andhra Pradesh, Maharashtra, Madhya Pradesh also receive fairly large amount of
radiation as compared to many parts of the world especially Japan, Europe and the
US where
ere development and deployment of solar technologies is maximum.
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Figure 13: Solar radiation on India
4.1.2 Solar thermal power generation technologies
Solar Thermal Power systems, also known as Concentrating Solar Power systems,
sys
use concentrated solar radiation as a high temperature energy source to produce
electricity using thermal route. Since the average operating temperature of stationary
0
non-concentrating
concentrating collectors is low (max up to 120 C) as compared to the desirable
0
input temperatures of heat engines (above 300 C), the concentrating collectors are
used for such applications. These technologies are appropriate for applications
where direct solar radiation is high. The mechanism of conversion of solar to
electricity is fundamentally similar to the traditional thermal power plants except use
of solar energy as source of heat.
In the basic process of conversion of solar into heat energy, an incident solar
irradiance is collected and concentrated by concentrating solar collectors
collectors or mirrors,
and generated heat is used to heat the thermic fluids such as heat transfer oils, air or
water/steam, depending on the plant design, acts as heat carrier and/or as storage
media. The hot thermic fluid is used to generated steam or hot gases,
gases, which are then
used to operate a heat engine. In these systems, the efficiency of the collector
reduces marginally as its operating temperature increases, whereas the efficiency of
the heat engine increases with the increase in its operating temperature.
temperat
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4.1.2.1 Concentrating solar collectors
Solar collectors are used to produce heat from solar radiation. High temperature
solar energy collectors are basically of three types;
a. Parabolic trough system: at the receiver can reach 400 C and produce steam
for generating electricity.
b. Power tower system: The reflected rays of the sun are always aimed at the
receiver, where temperatures well above 1000 C can be reached.
c. Parabolic dish systems: Parabolic
ic dish systems can reach 1000 C at the
receiver, and achieve the highest efficiencies for converting solar energy to
electricity.
4.1.2.2 Solar chimney
This is a fairly simple concept. Solar chimney has a tall chimney at the center of the
field, which iss covered with glass. The solar heat generates hot air in the gap
between the ground and the gall cover which is then passed through the central
tower to its upper end due to density difference between relatively cooler air outside
the upper end of the tower
er and hotter air inside tower. While travelling up this air
drives wind turbines located inside the tower. These systems need relatively less
components and were supposed to be cheaper. However, low operating efficiency,
and need for a tall tower of height
height of the order of 1000m made this technology a
challenging one. A pilot solar chimney project was installed in Spain to test the
concept. This 50kW capacity plant was successfully operated between 1982 to 1989.
Figure 14 shows the picture of this plant. Recently,
Recently, Enviro Mission Limited, an
Australian company, has started work on setting up first of its five projects based on
solar chimney concept in Australia.
The Luz Company which developed parabolic trough collector based solar thermal
power technology went
nt out of business in 1990s which was a major setback for the
development of solar thermal power technology.
Figure 14:50
14
Kw Solar chimney
pilot project, Manzanares,
Spain
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4.1.3 Solar thermal power generation program of India
In India the first Solar Thermal Power Plant of 50kW capacity has been installed by
MNES following the parabolic trough collector technology (line focussing) at
Gwalpahari, Gurgaon, which was commissioned in 1989 and operated till 1990, after
which the
e plant was shut down due to lack of spares. The plant is being revived with
development of components such as mirrors, tracking system etc.
A Solar Thermal Power Plant of 140MW at Mathania in Rajasthan, has been
proposed and sanctioned by the Government in Rajasthan. The project configuration
of 140MW Integrated Solar Combined Cycle Power Plant involves a 35MW solar
power generating system and a 105MW conventional power component and the
GEF has approved a grant of US$ 40 million for the project. The Government
Gove
of
Germany has agreed to provide a soft loan of DM 116.8 million and a commercial
loan of DM 133.2 million for the project.
In addition a commercial power plant based on Solar Chimney technology was also
studied in North-Western
Western part of Rajasthan. The project was to be implemented in
five stages.
st
In the 1 stage the power output shall be 1.75MW, which shall be enhanced to
35MW, 70MW, 126.3MW and 200MW in subsequent stages. The height of the solar
chimney, which would initially be 300m, shall be increased
increased gradually to 1000m. Cost
of electricity through this plant is expected to be Rs. 2.25 / kWh. However, due to
security and other reasons the project was dropped.
BHEL limited, an Indian company in power equipments manufacturing, had built a
solar dish
sh based power plant in 1990s as a part of research and development
program of then the Ministry of Non-conventional
Non conventional Energy Sources. The project was
partly funded by the US Government. Six dishes were used in this plant.
Few states like Andhra Pardesh, Gujarat had prepared feasibility studies for solar
thermal power plants in 1990s. However, not much work was carried out later on.
4.1.4 Opportunities for solar thermal power generation in India
Solar thermal power generation can play a significant important

important role in meeting the
demand supply gap for electricity. Three types of applications are possible
1. Rural electrification using solar dish collector technology
2. Typically these dishes care of 10 to 25 kW capacity each and use striling
engine for power
er generation. These can be developed for village level
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distributed generation by hybridizing them with biomass gasifier for hot air
generation.
3. Integration of solar thermal power plants with existing industries such as paper,
dairy or sugar industry,
stry, which has cogeneration units.
Many industries have steam turbine sets for cogeneration. These can be
coupled with solar thermal power plants. Typically these units are of 5 to 250
MW capacities and can be coupled with solar thermal power plants. This
Thi
approach will reduce the capital investment on steam turbines and associated
power-house
house infrastructure thus reducing the cost of generation of solar
electricity
4. Integration of solar thermal power generation unit with existing coal thermal
power plants.
ts. The study shows that savings of up to 24% is possible during
0
periods of high isolation for feed water heating to 241 C (4).

4.1.5 PV & CSP Ratio
The JNNSM calls for a total aggregated capacity of 1 gigawatt of grid connected
solar projects to be developed under the bundling scheme in Phase-I
Phase through 2013.
Solar PV technology projects and Solar Thermal technology projects are to be
deployed at a ratio of 50:50, in MW terms. This provision is scheduled to be
reviewed again in one year time to determine
determine the need for modification.
The JNNSM is trying to encourage the development of both PV and CSP
technologies by giving each equal weight. However, by allotting specific quotas for
each technology, the JNNSM is dictating the ratio of technology that can
ca be built
rather than allowing the market to select the most efficient and cost effective
technology for India. If CSP is deemed an unviable option for most developers and
there is a rush towards PV technology, it could create a situation where PV
applications
cations are rejected due to oversubscription while CSP quotas are not filled. A
scenario like this can slow down solar development progress country-wide
country
and
cause unwanted delay as the markets wait for this provision to be revisited. On a
global scale, PV installations exceed CSP installations by a ratio of over 20 times.
4.1.6 Domestic Content (PV)
Solar PV Projects using crystalline silicon technology selected in the first batch
during FY2010-11
11 will be mandated to use modules manufactured in India. For Solar
PV Projects selected in the second batch during FY2011-12,
FY2011 12, they will be required to
use cells and modules manufactured in India.
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The domestic content policy is intended to create incentives to develop domestic

manufacturing, investments and jobs.
jo
Thin film and CPV can still be procured from any vendor in the world and equipment
shortage should not be a problem as the allocation is so small compared to
manufacturing capacities. However, since the PV allocation is so small (150 MW in
2010-11, and
nd remaining in 2011-2012),
2011 2012), it is not enough to realize gains from
economies of scale. Domestic content rules create unwanted attention from the
WTO and trading partners. This puts Indian manufacturers in a delicate situation as
they still have to export to European countries as the Indian manufacturing capacity
per year might be more than the 500MW allocated for PV over 3 years, not to
mention that capacity could be cut even further if half the project developers choose
to use thin film. Ontario has enacted
enacted a similar policy and has been threatened by the
EU and Japan of possible legal challenge in the WTO due to the protectionist policy.
Thus, the domestic content policy has the potential to hurt the Indian solar export
industry as an unintended consequence.
consequen
The policy also creates uncertainty in the mind of investors as they are told to buy
from manufacturers mandated by the JNNSM instead of allowing developers to
select panels based on the best prices and efficiencies available anywhere in the
world. This
is could be another cause for foreign investors to take a wait and see
approach as the market in the first 3 years may not be attractive enough to warrant
large investments.
This also causes a high level of uncertainty and confusion due to the patchwork of
domestic policy (2010-11 - crystalline silicon modules domestic only, thin film and
CPV can be imported, CSP 30% of components other than land has to be
domestic); 2011-12 - crystalline silicon modules and cells domestic only). It
appears that this
is provision is an attempt to please all parties and has made the
policy unnecessarily complicated to be implemented.
4.1.7 Domestic Content (CSP)
It is mandatory for project developers to ensure 30% of local content in all their
plants/installations for solar thermal technology. Land is excluded.
This gives developers the advantage of procuring the main components of CSP from
anywhere in the world, while also creating a boost to domestic BOS vendors. That
said, there is an uncertainty factor relating to BOS vendor products and quality as
CSP has been non-existent
existent in India.
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Our complete analysis on the entire set of guidelines, which include Phasing
Allocation of Capacity, Number of Applications (PV and CSP), Technical Criteria for
PV and CSP, Connectivity to the Grid, Selection of Projects based on Tariff
(Bidding), the Role of States and the Role of Carbon Financing, can be found here.
4.1.8 Jawaharlal Nehru National Solar Mission
JNNSM promises to catapult India into becoming the Largest Market

Mark for Solar
Energy in the World. In fact, Indias Solar Energy sector has the potential to be the
biggest Energy Opportunity of the 21st century. Solar Energy in India is poised to
take off in a exponential manner because of a unique confluence of favourable
favoura
Supply and Demand factors .India currently has less than 500 MW of Solar Energy
capacity which accounts for less than 0.1% of Indias total electricity capacity. This
picture is going to radically change over the next decade because of the
following factors.
1. India has very high insulation (solar radiation in layman language) which
makes solar energy much cheaper to produce solar power in India compared
to countries like Germany, Denmark etc. Germany despite receiving only 50%
of Indias solar radiation has more than 9 GW of solar energy capacity already
installed and is going to probably hit 14 GW by 2010.
2010
2. India has a huge electricity demand supply gap Large parts of India
regularly face blackouts for lack of electricity supply leading to huge monetary
losses .It has been estimated that India suffers from more than 15-20%
15
supply
shortage in times of peak power. Major cities like Gurgaon regularly face 8-10
8
hours of power cuts in summer months.
3. Lack of power grid availability Solar Energy is ideally suited
su
for providing
power to those areas which dont have power lines connecting it. Large parts
of India dont have electricity grid connectivity and it is cheaper to power them
through solar energy rather than extending power lines
4. Increasing expensive and
and unreliable electricity supply - The rates of
electricity prices are going up rapidly each year due to a combination of
factors like higher costs of fossil fuels, increasing capital expenditure by
utilities and privatization of power. Not only is the power expensive, the quality
and reliability of the supplied electricity is very poor. A study has found that
poor farmers who receive free electricity in India are willing to pay for
quality electricity supply rather than do with the unreliable free power
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5. Solar Energy approaching Grid Parity The costs of Solar Energy has
been decreasing rapidly over the last 2 years. Despite solar energy prices
being higher than other forms of electricity, it is expected that solar energy will
equal that of grid
rid prices in the next 5 years in most parts of the globe. Solar
Energy is the only form of Energy whose cost trend has been declining over
the long term while all other major forms of energy have seen their costs
increasing.
6. Strong Support from the Government
Govern
Solar Energy needs a push from
the Government in terms of regulation and incentives as it is a costliest form
of power currently. The Indian government through the Jawaharlal Nehru
National Solar Mission has provided strong support to the growth of this
industry. The government has set a target of 20 GW by 2022 with 1000 MW of
solar power to be set up through private investment by 2013. CERC
guidelines aims at providing 20% + returns to private investors through a
higher guaranteed rate to electricity
electricity generate from solar power ( FIT)
7. Solar Energy is a Non-Polluting
Non Polluting Green Form of Energy The biggest
advantage for solar energy is that it is a non-Carbon
non Carbon Dioxide emitting form of
power .While other fossil fuel forms of Energy place have large unaccounted
unaccounte
costs in terms of pollution, health hazards, global warming and environmental
destruction (BP Oil Spill), Solar along with other forms of Renewable Energy
have none of these harmful effects.
8. Solar Energy is virtually Unlimited While Coal, Gas, Oil are eventually
going to be depleted over the next 20-100
20 100 years, Solar Energy is a virtually
unlimited source of energy. The amount of Solar Energy striking the earth is
much more than humans will ever need.
4.1.8 Solar Farming Potential in India
The newest crop in India could be electricity from the sun. Solar Farming can help
change Indias energy economy to clean and efficient renewable energy during the
day when it is needed the most, create millions of jobs, and could help India achieve
energy
gy independence and better national security.
Imagine a crop that can be harvested daily on the most barren desert and arid land,
with no fertilizer or tillage, and that produces no harmful emissions. Imagine an
energy source so bountiful that it can provide
provide many times more energy than we
could ever expect to need or use. An hours worth of sunlight bathing the planet
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holds far more energy than humans worldwide consume in a year. You dont have to
imagine it its real and its here. Solar energy is an abundant
ndant enormous resource
that is readily available to all countries throughout the world, and all the space above
the earth. It is clean, no waste comes from it, and its free.
This free source of electricity can be used to supply the energy needs of homes,
farms and businesses. Through the use of Photovoltaic (PV), Concentrated
Photovoltaic (CPV) or Concentrated Solar Power (CSP), sunlight is converted into
electricity that can provide power to businesses, homes, and drive motors.
I firmly believe that, to meet all its energy needs, India should diversify its energy mix
by accelerating the use of all forms of Renewable Energy technologies (including
PV, thermal solar, wind power, biomass, biogas, and hydro), and more proactively
promote energy efficiency.
ciency. However, in this article, I will only focus on the Solar
Farming Potential in India. My previous article explores How
How Concentrated Solar
Power (CSP) Technology Can Meet Indias Future Power Needs
Needs
4.1.8.1 How to Implement Solar Farming
Some governments are providing huge grants or subsidies to fund community solar
farm projects as part of their energy programs. Solar farming can help advance
Indias use of renewable energy and help assure achievement of economic
development goals. To successfully
successfully implement Solar Farming requires feed-in
feed tariffs.
This allows farmers to invest with the security of 20 to 25 year Government Grants.
The energy from these farms is purchased directly by utilities, who often sign 10 to
20 year energy purchase contracts
contracts with solar farm owners thereby securing low-cost
low
energy for the end user.
Solar farms will also play a vital role in reducing greenhouse gas emissions that
contribute to global warming. Solar farming is truly environmentally friendly. By
installing solar farm equipment, youll also considerably boost the value of your
property its a great selling point should you decide to sell your farm.
4.1.8.2 The Future of Solar Farming in Modern India
India is blessed with a vast Solar Energy potential. About 5,000

5,000 trillion kWh of solar
energy is incident over India every year. Each day most parts of the country receive
4-7
7 kWh per square meter of land area5. Indias deserts and farm land are the
sunniest in the world, and thus suitable for large-scale
large scale power production.
produc
The Indian
Government should embrace favourable tax structures and consider providing
financial resources to fund projects to put up community solar farms as part of their
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energy development programs. India can become the Saudi Arabia of clean Solar
Energy.
Solar electricity could also shift about 90 percent of daily trip mileage from gasoline
to electricity by encouraging increased use of plug-in
plug in hybrid cars. For drivers in India
this means that the cost per mile could be reduced by one-fourth
one
(in todays prices).
A decline in solar panel prices over the last two years also has contributed to
exponential increases in solar deployment worldwide and lower project costs. A new
technology that also holds promise is Concentrated Photovoltaic (CPV). First
F
brought
to commercial operation in 2008, CPV uses a concentrating optical system that
focuses a large area of sunlight onto the individual photovoltaic cells. This feature
makes CPV panels two to three times more efficient (approximately 40%) at
converting
rting sunlight to electricity as compared to silicon-based
silicon based PV (15% to 20%) and
thin films (9% to 13%).
Figure 15: Efficiency Comparison of Solar Technologies
Major cost reductions will be realized through mass manufacturing. The steep
increase in system efficiency, combined with decreases in manufacturing costs could
cou
levelise
e the cost of energy for CPV at around $0.10/kWh by 2015. Various incentives
by Central and State governments, including tax credits and feed-in
feed
tariffs, can
further reduce the cost. Cost reductions are so dramatic that Bloomberg recently
reported solar energy could soon rival coal. The cost has become so competitive
during peak times in Japan and California that the U.S. Department of Energys goal
of $1 per watt
att for large projects by 2017 may happen a lot sooner.
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In my opinion, all new energy production in India could be from renewable sources
by 2030 and all existing generation could be converted to renewable energy by
2050, if deployment is backed by the right enabling public policies.
4.1.8.3 Farming Solar Energy in Space
Harvesting solar power from space through orbiting solar farms sounds extremely
interesting. The concept of solar panels beaming down energy from space has long
been thought as too costly
ostly and difficult. Japanese researchers at the Institute for
Laser Technology in Osaka have produced up to 180 watts of laser power from
sunlight. Scientists in Hokkaido have completed tests of a power transmission
system designed to send energy in microwave
micro
form to Earth.
Japan has already started working towards its goal by developing a technology for a
1-gigawatt
gigawatt solar farm, which would include four square kilometres of solar panels
stationed 36,000 kilometres above the earths surface. The energy that will be
produced by the solar farm would be enough to supply power to nearly 400,000
average Japanese homes.
Californias next source of renewable power could be an orbiting set of solar panels,
high above the equator that would beam electricity back to earth via a receiving
station in Fresno County. Sometime before 2016, Solaren Corp. plans to launch the
worlds first orbiting solar farm to provide a steady flow of electricity day and night.
Receivers on the ground would take the energy transmitted through
thr
a beam of
electromagnetic waves and feed it into Californias power grid. Pacific Gas and
Electric Co. have agreed to buy power from a start up company to solve the growing
demand for clean energy.
4.1.8.4 Future of Solar Farming
Solar energy represents a bright spot on Indias economic front. If India makes a
massive switch from coal, oil, natural gas and nuclear power plants to solar and
other renewable sources, it is possible that 100% of Indias electricity could be from
renewable
ble energy by 2050. Solar energy would require the creation of a vast region
of photovoltaic cells in the Southwest and other parts of the country that could
operate at night as well as during the day. Excess daytime energy can be stored in
various forms such
uch as molten or liquid salt (a mixture of sodium nitrate and
potassium nitrate), compressed air, pumped hydro, hydrogen, battery storage, etc.,
which would be used as an energy source during nighttimes hours.
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Solar Energy will be competitive with coal

coal as improved and efficient solar cells,
concentrated photovoltaic (CPV) and concentrated solar power (CSP) enter the
market. I predict that solar farming advancements and growth would empower
Indias rural economies and companies will move their operations
operations from urban areas
to rural areas due to cheaper land and labour within the solar belt.
Solar Farming is a renewable source of energy and the greenest form of commercial
energy. Solar Energy has become the leading alternative to the costly and eco
disasters associated with fossil fuels. I urge the Government of India to accelerate
the countrys solar energy expansion plans and policies by implementing
government subsidies for residential solar power through renewable energy rebates
and feed-in tariffs.
fs. Solar Farming is a great concept for an efficient use of barren
land and to develop large utility scale solar energy farms to meet Indias economic
development goals.
For example, Google is investing $168 Million in the biggest Solar Farm ever. When
completed
mpleted in 2013, the Mojave Desert-based
Desert
Ivan Pah
ah Solar Electric Generating
System will send approximately 2,600 megawatts of power to the grid, doubling the
amount of solar thermal power produced in the U.S and generating enough
electricity to power 140,000
00 California homes when operating at full capacity.
I personally think there are no technological or economic barriers to supplying almost
100% of Indias energy demand through the use of clean renewable energy from
solar, wind, hydro and biogas by 2050. India needs a radical transformation of
energy system to the efficient use of renewable energies, especially solar power.
Solar Energy is a game-changing
changing program for India. India must accelerate and
encourage the domestic development of renewable energy now.
now. It is a question of
whether we have the societal and political will to achieve this goal to eliminate our
wasteful spending and dependence on foreign sources of energy. The Indian
Government should provide favourable government policies to ease the permitting
perm
process and to provide start-up
start up capital to promote the growth of solar energy. State
and central governments should provide initiatives and other support in order to
increase solar power plant capacity. India could potentially increase grid-connected
grid
solar power generation capacity to over 200,000 MW by 2030, if adequate resources
and incentives are provided. Solar energy is a Win-Win
Win Win situation for India and the
environment, and has the potential to power Indias economy, create millions of new
jobs and change the face of India as a Green Nation.
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4.1.9 Challenges
Solar thermal power plants need detailed feasibility study and technology
identification along with proper solar radiation resource assessment. The current
status of international technology
technology and its availability and financial and commercial
feasibility in the context of India is not clear. The delays in finalizing technology for
Mathania plant have created a negative impression about the technology.
Solar thermal power generation technology
technology is coming back as commercially viable
technology in many parts of the world. India needs to take fresh initiative to assess
the latest technology and its feasibility in the Indian context. These projects can avail
benefits like CDM and considering the solar radiation levels in India these plants can
be commercially viable in near future.
The MNRE and SEC (Solar Energy Center) should take initiative to study these
technologies and develop feasibility reports for suitable applications. Leading
research institutes such as TERI can take up these studies.
4.2 Wind
Winds are caused by the uneven heating of the atmosphere by the sun, the
irregularities of the earth's surface, and rotation of the earth. The earths surface is
made of different types of land and
and water. These surfaces absorb the suns heat at
different rates, giving rise to the differences in temperature and subsequently to
winds. During the day, the air above the land heats up more quickly than the air over
water. The warm air over the land expands
expands and rises, and the heavier, cooler air
rushes in to take its place, creating winds. At night, the winds are reversed because
the air cools more rapidly over land than over water. In the same way, the large
atmospheric winds that circle the earth are created
created because the land near the earth's
equator is heated more by the sun than the land near the North and South
Poles. Humans use this wind flow for many purposes: sailing boats, pumping water,
grinding mills and also generating electricity. Wind turbines convert the kinetic
energy of the moving wind into electricity.
4.2.1 Wind Energy for power generation
Wind Energy, like solar is a free energy resource. But is much intermittent than solar.
Wind speeds may vary within minutes and affect the power generation and in cases
of high speeds- may result in overloading of generator. Energy from the wind can be
tapped using turbines.
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Setting up of these turbines needs little research before being established. Be it a

small wind turbine on a house, a commercial wind farm or any offshore installation,
all of them, at first, need the Wind Resource to be determined in the area of
proposed site. The Wind Resource data is an estimation of average and peak wind
speeds at a location based on various meteorological.
meteorological. The next step is to determine
access to the transmission lines or nearest control centre where the power
generated from the turbines can be conditioned, refined, stored or transmitted. It is
also necessary to survey the impact of putting up wind turbines
turbines on the community
and wildlife in the locality. If sufficient wind resources are found, the developer will
secure land leases from property owners, obtain the necessary permits and
financing; purchase and install wind turbines. The completed facility is often sold to
an independent operator called an independent power producer (IPP) who generates
electricity to sell to the local utility, although some utilities own and operate wind
farms directly. Wind mills can be set up ranging scales of:
On-shore grid connected Wind Turbine systems
Off-shore
shore Wind turbine systems
Small Wind and Hybrid Energy Decentralized systems
4.2.1.1 Advantages
Can be used for both distributed generation or grid interactive power

generation using on-shore
shore or off shore technologies.
technolo
Ranges of power producing turbines are available. Micro-turbines
Micro turbines are capable
of producing 300W to 1MW and large wind turbines have typical size of 35kW35kW
3MW.
Wind turbine is suitable to install in remote rural area, water pumping and
grinding mills
Average
erage capacity factor can be close or higher than 30%
4.2.1.2 Disadvantages
The total cost can be cheaper than solar system but more expensive than
hydro.
Electricity production depends onon wind speed, location, season and air
temperature. Hence various monitoring systems are needed and may cost
expensive.
High percentage of the hardware cost (for large WT) is mostly spent on the
tower designed to support the turbine
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4.2.2 Indiass Unique Proposition for Wind Energy:

4.2.2.1 Geographic Location and Wind Potential:
The potential is far from exhausted. It is estimated that with the current level of
technology, the on-shore
shore potential for utilization of wind energy for electricity
generation is of the order of 65,000 MW. India also is blessed with 7517km
751
of
coastline and its territorial waters extend up to 12 nautical miles into the sea.
The unexploited resource availability has the potential to sustain the growth of
wind energy sector in India in the years to come. Potential areas can be
identified on Indian map using Wind Power Density map. C-WET, one of
pioneering Wind Research organization in the country is leading in all such
resource studies and has launched its Wind Resource map. In a step towards
identifying and properly exploiting these wind resources,
resources, MNRE has
estimated state-wise
wise wind power potential in the country.
Figure 16: Wind power Density Map
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4.2.2.2 World Market Share:
According to REN21-- Global Status Report 2011 (GSR-2011),

2011), Indian company
Suzlon was among top ten manufacturers of Wind Turbine manufacturers in
the world with world market share of 6.7%. Also major world companies are
pouring into the fast evolving Wind Energy market in India: Vestas, GE Wind,
Enercon and Gamesa have already opened up their
their establishments across
various cities in India.
4.2.2.3 Installed Capacity:
According to MNREs achieving report, The cumulative installed capacity of

Grid Interactive Wind Energy in India by the end of September 2011 was
14989MW (of which 833MW was installed
i
during 2011-2012
2012 against a target of
2400MW). Aero generators and hybrid systems contributed 1.20MW during
2011-12
12 to yield cumulative off-grid
off grid wind capacity of 15.55MW.
4.2.2.4 India in the windy world:
In 2008, India shared 6.58% of total wind energy installed capacity around the
world, according to World Wind Energy Report-2008.
Report 2008. According to GSR-2011,
GSR
the world witnessed highest renewable energy installations through wind
energy. Total installed capacity of wind energy reached 198GW by the end of
2010. India ranked third in the world in annual capacity additions and fifth in
terms of total wind energy installed capacity. India has been able to fast pace
its growth in wind energy installations and bring down costs of power
production. The GSR 2011
20
reported on-shore
shore wind power (1.5-3.5MW;
(1.5
Rotor
diameter 60-100m)
100m) at 5-9
5 9 cents/kWh and off shore wind power (1.5-5MW;
(1.5
Rotor diameter 75-120m)
120m) at 10-20
10 20 cents/kWh. But Indias onshore wind power
cost reached 6-9cents/kWh
9cents/kWh in 2008 itself (Indian Renewable Energy
En
Status
Report-2010).
4.2.2.5 Clean Wind to overcome power shortage:
Electricity losses in India during transmission and distribution have been

extremely high over the years and this reached a worst proportion of about
24.7% during 2010-11.
11. India is in
in a pressing need to tide over a peak power
shortfall of 13% by reducing losses due to theft. Theft of electricity, common in
most parts of urban India, amounts to 1.5% of Indias GDP. Due to shortage of
electricity, power cuts are common throughout India and this has adversely
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affected the countrys economic growth. Hence a cheaper, non-polluting

non
and
environment friendly solution to power rural India is needed.
4.2.2.6 Wind energy as job generator:
Wind energy utilization creates many more jobs than centralized, nonnon
renewable energy sources. The wind sector worldwide has become a major
job generator: Within only three years, the wind sector worldwide almost
doubled the number of jobs from 235,000 in 2005 to 440,000 in the year 2008.
These highly skilled
led employees are contributing to the generation of 260 T Wh
of electricity.
4.2.3 Wind Power Capacity Installed in India
The Wind power programme in India was initiated towards the end of the Sixth Plan,
in 1983-84. A market-oriented
oriented strategy was adopted from inception, which has led to
the successful commercial development of the technology. The broad based
National programme includes wind resource assessment activities; research and
development support; implementation of demonstration projects to create awareness
and opening up of new sites; involvement of utilities and industry; development of
infrastructure capability and capacity for manufacture, installation, operation and
maintenance of wind electric generators; and policy support. The programme aims at
catalyzing commercialisation of wind power generation in the country. The Wind
Resources Assessment Programme is being implemented through the State Nodal
Agencies, Field Research Unit of Indian Institute of Tropical Meteorology (IITM-FRU)
(IITM
and Center for
or Wind Energy Technology (C-WET).
(C
Wind in India are influenced by the strong south-west
south west summer monsoon, which
starts in May-June,
June, when cool, humid air moves towards the land and the weaker
north-east
east winter monsoon, which starts in October, when cool, dry sir moves
towards the ocean. During the period march to August, the winds are uniformly
strong over the whole Indian Peninsula, except the eastern peninsular coast. Wind
speeds during the period November to march are relatively weak, though higher
winds are
re available during a part of the period on the Tamil Nadu coastline.
A notable feature of the Indian programme has been the interest among private
investors/developers in setting up of commercial wind power projects. The gross
potential is 48,561 MW (source
(sour
C-wet) and a total of about 14,158.00 MW of
commercial projects have been established until March 31, 2011.
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The break-up
up of projects implemented in prominent wind potential states (as on
March 31, 2011) is as given below
State-wise
wise Wind Power Installed
Inst
Capacity In
India
Gross
Potential
(MW)
State
Andhra Pradesh
Gujarat
Karnataka
Kerala
Madhya Pradesh
Maharashtra
Orissa
Rajasthan
Tamil Nadu
Others
Total
(All India)
Total
Capacity
(MW) till
31.03.2011
8968
10,645
11,531
1171
1019
4584
255
4858
5530
48,561
200.2
2175.6
1730.1
32.8
275.5
2310.7
1524.7
5904.4
4
14,158
Table 3: Total installed Capacity (MW) till 31.03.2011
Wind power potential has been assessed assuming 1% of land availability for wind
farms requiring @12 ha/MW in sites having wind power density in excess of 200
W/sq.m. at 50 m hub-height
height.
Sl.
No.
Name of the
State
Up to
2005
2005
2005-06
200607
200708
200809
20092009
10
Up to
Jan.11
Cumulative
0.721
0.079
0.111
0.101
0.333
0.106
0.067
1.518
Andhra
Pradesh
Gujarat
1.332
0.286
0.455
0.851
2.104
2.988
2.309
10.325
Karnataka
1.409
0.935
1.397
1.84
1.723
2.895
2.362
12.561
Kerala
0.047
0.065
0.059
0.171
Madhya
Pradesh
0.3
0.03
0.07
0.069
0.003
0.082
0.039
0.593
Maharashtra
2.65
0.79
1.714
1.804
2.207
2.778
2.368
14.311
Rajasthan
0.494
0.427
0.532
0.682
0.758
1.127
1.049
5.069
Tamil Nadu
11.97
3.444
5.268
6.066
6.206
8.146
8.017
49.117
11.413
13.334
18.187
16.27
93.665
Total
18.925
5.991
9.547
Table 4:: State-Wise

State
Cumulative Wind Generation Data in (BU)
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4.2.4 Wind Energy Business Opportunities in

i India
The wind energy value chain consists of a number of specific and distinct steps from the supply of raw materials to the transmission
transmission of electricity. These steps, along
with the prominent supporting products and services for each, are given below. The
illustration here also provides a birds-eye
birds eye view of the opportunities available along
the entire wind energy value chain.
A trend in the wind energy industry that entrepreneurs should be aware of is the
move by incumbents towards vertical integration along this value chain. And there is
a reason for the vertical integration efforts. With supply chain bottlenecks a constant
threat,
eat, many of the large wind firms have responded by buying out suppliers of
critical components such as blades, generators, and gearboxes. By bringing
suppliers in house, they could ensure they would get the products they needed on
time, and at an acceptable
le price.
Figure 17: Diagram of Wind Business Options
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However this applies only to large organizations. A detailed analysis of this value
chain brings out opportunities in each stage for small and medium players too.
4.2.5 Power Plant Development stapes and opportunity in India
Wind farm developers are responsible for developing the wind project from concept
to commissioning, and they undertake all the planning, design and project
development work in this regard. As part of their role, wind power project developers
also take up the role of establishing access to capital for investment, construction of
roads and related infrastructure that can accommodate the transport of heavy
industrial equipment and components.
Depending on the nature of contract, the wind project developer sometimes has a
managing interest in the project when it is complete, but in most cases the real
ownership lies with the wind farm owner.
Figure 18:
18 Various components of Wind mill with material link
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4.2.5.1 Raw Materials Production
A wide range of materials are used for wind turbine construction. While steel is
perhaps the most important material in this context, a diverse list of raw materials are
required to produce the vast number of components that comprise a wind farm. The
illustration shown on the right, provides a detailed review of the materials and
components used in the production of wind turbines. There is a move in India to
indigenize wind turbine component production; this could lead to significant
opportunities for suppliers of raw materials that go into the production of these
components.
Indian producers of the above raw materials should hence explore how they can
become suppliers to this sector.
4.2.5.2 Original Equipment Manufacturing
In the wind energy sector, turbine manufacturers represent the predominant OEM
segment. OEMs usually manufacture some of the critical components such as the
nacelle in-house,
house, and blades and towers are produced either by the OEM or
fabricated to the OEMs specifications by a supplier. While opportunities do exist for
new OEMs in India with the projected continuous growth in the wind industry, it
should be noted that this is an area that faces intense competition from large global
gl
companies, and entering the OEM domain will require significant capital and
marketing investments.
To encourage indigenous manufacturing of wind turbines and to facilitate transfer of
new technology, MNRE is expected to introduce local content requirements
require
for wind
turbines.
4.2.5.3 Component Manufacturing
Component manufacturers manufacture a wide range of mechanical and electrical

components, including generators, hydraulics, sensors, hardware, drives, power
distribution, composites, cabling, big steel,
steel, castings, forgings, bearings, gearboxes.
The primary components in a wind energy generating system are: Rotors,
Blades, Nacelle Controls, Generator, Tower Components and Power Electronics
components. A modern wind turbine consists of about 8000 unique components.
4.2.5.4 Trading Opportunities
Should a market for micro--wind

wind turbines emerge in future, opportunities could arise
for traders and small system integrators, similar to what is happening in the solar PV
industry in India where rooftop solar systems
systems are set to take off soon. Opportunities
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to trade in the power produced are however likely to expand significantly. Currently,
it is possible for wind power producers to sell electricity to the grid, use it for captive
consumption or sell it to third parties.
parties. With the emergence of independent power
exchanges and with the likely liberalization and streamlining of power distribution
across states, the opportunities to trade in power are likely to increase and become
more lucrative. With the advent of the RPO/REC
RPO/REC mechanism in India, there has been
significant demand for non--solar
solar (wind, small hydro, biomass etc.) over the past few
months.
The high demand for non-solar
non solar RECs is mostly met through wind energy based
REC. In light of this, REC accreditation,
accreditation, advisory and trading services present a
significant opportunity waiting to be capitalized.
4.2.6 Central and State Government Policies for Supporting Wind Power Projects
4.2.6.1 Central Government
nt Policies
The General guidelines for developing Wind Power Projects and other
o
policies and
programmes are discussed below.
4.2.6.2 CERC Tariff Orders for Procurement of Power from
from Wind Energy Generators
Central Electricity Regulatory Commission in its order dated 16/09/2009

16/09/2009 introduced
its regulations and tariff orders for procuring wind power into the grid; for control
period from 16/09/2009 to 31/03/2012. The tariff structure consisting of fixed cost
components: Return on Equity, Interest on loan Capital, Depreciation,
Depreciati
Interest on
Working Capital and Operation & Maintenance Expenses. Detailed tariff structure
and regulations are like that:
Description
Capital cost
Commercial
CERC Regulation
Rs5.15 Crore/MW, linked to indexation formula
operational 25 years
life (including evacuation

systems)
Return on Equity
19% for first 10 years and 24% from 11th year prepre
tax
Debt Equity Ratio
70:30
Interest on loan
Average SBI long term PLR plus 150 basis points
Depreciation
7% per annum
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Description
CERC Regulation
Interest on Working Capital Average SBI short term PLR plus 100 basis points
Operational
and Rs. 6.50 lakh/MW
Maintenance cost
Escalation
5.72% per annum
Capacity Utilization Factor for wind power density 200-250:

250: 20%for wind power
density 250-300: 23%for wind power density 300300
400: 27%for wind power density above 400: 30%
Sharing of CDM Benefits
First year: 100% to the project developer Second

year: 10% beneficiaries, to be increased at 10% per
annum up to 50%.Thereafter to be shared on equal
basis
Taxes and Duties
Tariff determined should be exclusive of taxes and

duties levied by government provided allowed as
pass through on actual basis
Table 5: Detailed tariff structure
4.2.6.3 Accelerated Depreciation
The main incentive for wind power projects in the past was accelerated depreciation.
This tax benefit allows projects to deduct up to 80% of value of wind power
equipment during first year of project operation. Investors are given tax benefits up to
10 years. Wind Power producers receiving accelerated depreciation benefits must
register with and provide generation data to IREDA and are not eligible to receive
more recent Generation Based incentives.
4.2.6.4 Indirect Tax Benefits
This includes concessions on excise duty and reduction in customs duty for wind
power equipment. Wind powered electricity generators and water pumping wind
mills, aero-generators
generators and battery chargers are except from excise duties. Indirect
tax benefits for manufacturers of specific energy parts vary from 5-25%
5
depending
upon the component.
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4.2.6.5 Central-Level
Level Generation-Based
Generation
Incentives
Offered by the central government since June 2008 and administered by IREDA, the
GBI for wind is available for independent power producers with a minimum installed
capacity of 5 MW for projects commissioned on or before 31/03/2012. As of
December 2009, the GBI is set at INR 0.50/kWh (USD 0.01/kWh) of gridgrid connected
electricity for a minimum of 4 years and a maximum
maximum of 10 years, up to a maximum of
INR 6.2 million (USD 140,000) per MW. The scheme will deploy a total of INR 3.8
billion (USD 81 million) until 2012 and aims to incentivize capacity additions of 4,000
MW. Wind power producers receiving a GBI must register with and provide
generation data to IREDA. The GBI is offered in addition to SERCs state preferential
renewable energy tariffs. However, IPPs using GBIs cannot also take advantage of
accelerated depreciation benefits. The GBI program will be reviewed at the end of
the Eleventh Plan and revised as deemed appropriate. As of December 2011, 58
projects had been registered under this scheme with over 288.8 MW
MW commissioned.
(Tamil Nadu-30,
30, Rajasthan-21,
Rajasthan
Gujarat-3; Andhra Pradesh, Maharashtra and
Karnataka-1 each).
4.2.6.6 Renewable Purchase Obligations
Several states have implemented RPOs with a requirement that renewable energy
supplies between 1% and 15% of total electricity. The impact of the RPOs on wind
development may depend on the penalties and enforcement
enforcement of the targets as well as
an effective REC market to promote development of areas of the country with the
most abundant wind resources. More details are available under state initiatives and
policies towards Wind Power development.
4.2.6.7 Renewable Energy
ergy Certificates: Framework on Forbearance and
and Floor Prices
This is framed to be applicable from 1st April 2012 for a control period of 5 years.
control period up to FY
Control period 1st Apr 2012
2012
onwards
In Rs/MWh
Non Solar REC Solar REC

Forbearance
Non Solar REC
Solar REC
3,900
17,000
3,480
13,690
1,500
12,000
1,400
9,880
Price
Floor Price
More details on the APPC and RE tariffs is available in the Order on Forbearance &
Floor Price dated 23-8-2011.
2011.
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4.2.6.8 Small Wind Energy and

nd Hybrid Systems Programme
This programme is implemented through State Nodal Agencies for meeting water
pumping and small power requirements in rural/semi-urban/urban
rural/semi urban/urban windy areas for
the categories of users:
Individuals, farmers, NGOs, Central / State Government
Government agencies, local bodies and
Panchayats,
Autonomous
Institutions,
Research
Organizations,
Cooperative
Societies, Corporate Bodies, Small Business Establishments, Banks, etc.

Category
Gear
type
Cost
Water Rs. 80,000
Central Financial Assistance

Maximum 50% of Ex-works
works cost in general
Pumping Windmill
places Maximum 90% of Ex-works

Ex
for un-
Auroville
electrified islands
type Rs.1,50,000
Windmills
Wind Solar Hybrid Rs.
Rs.
Systems
Charitable, R&D, Academic and other non profit
2,50,000/kW
1,50,000/kW
for
Government,
Public,
making organizations
Rs. 1,00,000/kW for other beneficiaries not
covered above
A cumulative capacity of 608kW of wind solar hybrid systems and 1180 water
pumping windmills have been installed by 31st July 2010.
4.3 Small Hydro

4.3.1 Introduction
Hydropower is a renewable, non-polluting

non polluting and environmentally benign source of
energy. It is perhaps the oldest renewable energy technique known to the mankind
for mechanical energy conversion as well as electricity generation.
Hydropowerr represents use of water resources towards inflation free energy due to
absence of fuel cost with mature technology characterized by highest prime moving
efficiency and spectacular operational flexibility. Out of the total power generation
installed capacity of 167077
077 MW (January 2011) in the country, hydro power
contributes about 25% i.e. 37,367 MW.
Hydro Power Project Classification
Hydro power projects are generally categorized in two segments i.e. small and large
hydro. In India, hydro projects up to 25 MW station capacities have been categorized
as Small Hydro Power (SHP) projects. While Ministry of Power, Government of India
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is responsible
esponsible for large hydro projects, the mandate for the subject small hydro
power (up to 25 MW) is given to Ministry of New and Renewable Energy. Small
hydro power projects are further classified as
Class
Station
Capacity in kW
Micro Hydro
Mini Hydro
Small Hydro
Up to 100
101 to 2000
2001 to 25000
Table 6: Small Hydro power projects classification
4.3.2 Small Hydro Power Programme
Small Hydro Power (SHP) Programme is one of the thrust areas of power generation
from renewable in the Ministry of New and Renewable Energy. It has been
recognized that small hydropower projects can play a critical role in improving the
overall energy scenario of the country and in particular for remote and inaccessible
areas. The Ministry is encouraging development of small hydro projects both in the
public as well as private sector. Equal attention is being paid to grid-interactive
grid
and
decentralized projects.
4.3.2.1 Aim
The Ministrys aim is that the SHP installed capacity should be about 6000 MW by
the end of 12th Plan. The focus of the SHP programme is to lower the cost of
equipment, increase its reliability and set up projects in areas which give the
maximum advantage in terms of capacity utilisation.
4.3.2.2 Potential
An estimated potential of about 15,000 MW of small hydro power projects exists in

India. Ministry of New and Renewable Energy has created a database of potential
sites of small hydro and 5718 potential sites with an aggregate capacity of 15384
MW for projects up to 25 MW capacity have been identified.
Identification of new potential sites and strengthening of database for already
identified sites is an ongoing process. In this direction, the Ministry has been giving
financial support to state governments/ agencies for identification of new potential
SHP sites & preparation of state perspective plan.
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4.3.3 Small hydro installed capacity and progress
The total installed capacity of small hydro power projects (up to 25 MW) as on
31.01.2011 is 2953 MW from 801 projects and 271 projects
rojects with aggregate capacity
of 914 MW are under construction.
State
tate wise numbers and aggregate capacity of SHP projects (up to 25 mw) potential,
installed & under implementation (As on 31.1.2011)
Potential
Sl. No.
State
Nos.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
Andhra Pradesh
Arunachal Pradesh
Assam
Bihar
Chattisgarh
Goa
Gujarat
Haryana
Himachal Pradesh
J&K
Jharkhand
Karnataka
Kerala
Madhya Pradesh
Maharashtra
Manipur
Meghalaya
Mizoram
Nagaland
Orissa
Punjab
Rajasthan
Sikkim
Tamil Nadu
Tripura
Uttar Pradesh
Uttarakhand
West Bengal
A&N Islands
Total
Total
Capacity
(MW)
Projects Installed
Nos.
Capacity
(MW)
Nos.
Capacity
(MW)
497
550
119
95
184
6
292
33
536
246
103
138
245
299
255
114
101
75
99
222
237
66
91
197
13
251
444
203
7
560.18
1,328.68
238.69
213.25
993.11
6.5
196.97
110.05
2,267.81
1,417.80
208.95
747.59
704.1
803.64
732.63
109.13
229.8
166.93
188.98
295.47
393.23
57.17
265.55
659.51
46.86
460.75
1,577.44
396.11
7.27
62
101
4
18
6
1
4
7
112
34
6
111
20
11
39
8
4
18
10
10
43
10
16
16
3
7
95
24
1
189.83
78.835
27.11
58.3
19.05
0.05
12.6
70.1
375.385
129.33
4.05
725.05
136.87
86.16
263.825
5.45
31.03
36.47
28.67
79.625
153.2
23.85
47.11
94.05
16.01
23.3
134.12
98.9
5.25
18
28
4
11
1
2
40
5
8
18
7
4
15
3
3
1
4
5
15
2
6
55
16
-
3.4
132.2
5.91
34.85
107.5
23.8
19.9
51.7
2.75
1.7
0.5
4.2
3.93
21.4
5.2
33
230.65
79.25
-
5718
15384.2
801
2953.58
271
914.81
Table 7: State wise numbers and aggregate capacity of SHP projects
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Projects under
Implementation
61.75
38.71
15
36.31
1.2
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Renewable
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While in early 90s, most of the SHP projects were set up in the public sector, from
last 10 years or so, most of the capacity addition is now coming through private
sector projects. Beginning of the 21st century saw near commercialization in the
small hydro sector.
Private sector entrepreneurs found attractive business
opportunities in small hydro and state governments also felt

felt that the private
participation may be necessary in tapping the full potential of rivers and canals for
power generation. The private sector has been attracted by these projects due to
their small adoptable capacity matching with their captive requirements
requirement or even as
affordable investment opportunities. In line with Government of India policy, 18
states have announced their policy for inviting private sector to set up SHP projects.
The Government of India announced the Electricity Act in 2003, Electricity Policy in
2005 and Tariff Policy in 2006 to create a conducive atmosphere for investments in
the power sector. Small hydropower projects are now governed by these policies
and the tariff is decided by the State Electricity Regulatory Commissions (SERCs) as
a
per the Tariff Policy.
During the 10th Plan, Following have been year-wise
year wise capacity addition from SHP
projects.
Year
2002--03
2003--04
2004--05
2005--06
2006--07
Target
(in
MW)
Capacity
addition
during
the year
(in MW)
Cumulative
SHP
installed
capacity
(in MW)
80
80
100
130
160
80.39
84.04
102.31
120.8
149.16
1519.28
1603.32
1705.63
1826.43
1975.59
Table 8:: 10th Plan year-wise capacity addition from SHP
A target of adding 1400 MW during the 11th Plan (2007-2012)

(2007 2012) Fixed
Year
2007-08
08
2008-09
09
2009-10
10
2010-11
11
Target
(in
MW)
200
250
300
300
Capacity
addition
during the
year
(in MW)
205.25
248.93
305.25
218.37
(31.01.2011)
Cumulative
SHP
installed
capacity
(in MW)
2180.84
2429.77
2735.02
Table 9: During last 3 Years following

foll
has been the achievements
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4.3.4 Standards for Small Hydro
In order to ensure project quality/performance, the MNRE has been insisting to

adhere to IEC/International standards for equipment and civil works. The subsidy
available from the Ministry is linked to use of equipment manufactured to IEC or
other prescribed international standards. The equipment in the project is required to
confirm to the following IEC standards.
Equipment
Turbines and generator
(rotating electrical
machines)
Field Acceptance Test for

Hydraulic performance of
turbine
Standard
IEC 60034 1: 1983
IEC 61366-1: 1998
IEC 61116-1992
IS: 4722-2001
IS 12800-1991
IEC 60041: 1991
Governing system for

hydraulic turbines
IEC 60308
Transformers
IS 3156 1992
IS 2705 1992
IS 2026 - 1983
Inlet valves for hydro

power stations & systems
IS 7326 1902
Table 10: IEC standards
Recently the Ministry has given an assignment to AHEC, IIT Roorkee to revisit the
existing standards and come out with standards/manuals/guidelines for improving
reliability and quality of small hydro power projects in the country.
4.3.5 States with Policy for Private SHP Projects
23 States namely, Andhra Pradehsh, Arunachal Pradesh,

Pradesh, Assam, Bihar,
Chattisgarh, Gujarat, Haryana, Himachal Pradesh, Jammu and Kashmir,
Karnataka, Kerala, Madhya Pradesh, Maharashtra, Manipur, Meghalaya,
Mizoram, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttarakhand, Uttar
Pradesh and West Bengal have announced
announced policies for setting up
commercial SHP projects through private sector participation. The
facilities available in the States include wheeling of power produced,
banking, buy-back
back of power, facility for third party sale, etc.
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Sl.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
State
Andhra Pradesh
Assam
Gujarat
Himachal Pradesh
Haryana
Jammu & Kashmir
Karnataka
Kerala
Madhya Pradesh
Maharashtra
Orissa
Punjab
Tamil Nadu
Uttaranchal
West Bengal
Total
Total
Number
Total
capacity
(MW)
43
1
2
63
2
2
95
3
1
13
2
18
1
10
5
261
104.43
0.1
5.6
271.25
7.4
17.5
694.9
36
2.2
74
32
26.2
0.35
48.3
6.45
1326.68
Table 11 : As on 31.12.2010
4.3.6 Watermills
Water wheels, commonly
known as `gharats', have traditionally been used in the
Himalayan regions for rice hulling, milling of grain and other mechanical applications.
These water mills are normally of very old design and work at very low efficiencies. It
has been estimated that there are more than 1.5 lakh potential water mill sites in the
country. New and improved designs of water mills have been developed for
mechanical as well as electricity generation of 3-5
3 kW.
The Ministry is providing subsidy for development and up gradation of water mills.
Local organizationss such as the Water Mill Associations, cooperative societies,
registered NGOs, local bodies, and State Nodal Agencies are being encouraged to
take up these activities. A number of NGOs are now propagating water mills for
electricity generation to meet small
small scale electrical requirements of villages.
Uttaranchal has taken a lead in setting up electricity generation watermills and over
450 such watermills were installed in remote and isolated areas of the state.
Nagaland has recently commenced setting up watermills/micro
watermills/micro hydel sets for rural
electrification. Watermills are also being installed in Arunachal Pradesh, Himachal
Pradesh, J&K, Karnataka and Manipur.
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4.3.7 Manufacturing Status
India has a wide base of manufacturers of equipment for small hydro

hydr power
projects. State-of-the-art
art equipment is available indigenously. 20 manufacturers
fabricate almost the entire range and type of SHP equipment. Manufacturers
capacity is estimated at about 300 MW per year. In addition, there are about 5
manufactures
ures that are producing micro hydel and watermill equipment.
4.3.8 Technical and consultation Services
Consultancy services in the field of small hydro projects are available from a number
of Government / private consultancy organizations. The Ministry is strengthening
technical institutions to provide such services. AHEC, IIT Roorkee is providing full
range of technical services in the field of small hydro including survey and
investigation, DPR preparation, project design etc. On site testing facility has been
created at AHEC to test SHP stations for their performance.
4.3.9 Real Time Digital Simulator for SHP
A Real Time simulator has been set up at AHEC which would provide hands on
experience to operators of SHP stations. It is the first SHP simulator in the country.
The simulator is capable of replicate all conditions of a hydro power station. AHEC is
offering regular training programmes for operators and engineers of SHP stations.
4.3.10 Constraints in SHP
The main reasons for lack of success with small hydro power developer are;
Failure due to improper design.
Failure due to non standard practices adopted in production.
Over estimate of the efficiency and constancy of stream flow.
Improper Penstock design to allow the plant operates
operates at full capacity.
No established O&M practice.
Plants operating in remote areas of the country.
4.4 Geothermal Energy

Geothermal energy is a major contributor to electricity production in at least 24
countries. There is also an increasing widespread use
use of direct application of
geothermal heat, for example, for space heat and domestic water heating.
Geothermal energy recovered as heat takes two general forms: steam or hot water is
piped into facilities where it provides ambient heating for comfort. Alternatively,
Alt
heat
pump technology is used to recover earth heat by pumping a confined heat-transfer
heat
fluid through a heat exchanger embedded in a warm body of soil. Geothermal heat is
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used to generate electrical power primarily through direct steam production

productio or by
flashing produced hot brine to release steam, which drives a turbine/generator set to
make electrical power. An evolving technology expected to see major application in
the future is binary electrical generation, in which a produced geothermal fluid
fl
heats a drive fluid (e.g., volatile organic fluid or ammonia) in a closed-loop
closed
power
generation unit.
4.4.1 Status and Trends
Heat energy continuously flows to the Earths surface from its interior, where central
temperatures of about 6 000C exist. The predominant source of the Earths heat is
the gradual decay of long-lived
lived radioactive isotopes (40K, 232Th, 235U and 238U).
The outward transfer of heat occurs by means of conductive heat flow and
convective flows of molten mantle beneath the Earths
Earths crust. This results in a mean
heat flux at the Earths surface of 80kW/km2 approximately. This heat flux, however,
is not distributed uniformly over the Earths surface; rather, it is concentrated along
active tectonic plate boundaries where volcanic activity transports high temperature
molten material to the near surface.
Although volcanoes eruptss small portions of this molten rock that feeds them, the
vast majority of it remains at depths of 5 to 20 km, where it is in the form of liquid or
solidifying
ing magma bodies that release heat to surrounding rock. Under the right
conditions, water can penetrate into these hot rock zones, resulting in the formation
of high temperature geothermal systems containing hot water, water and steam, or
steam, at depths of 500 m to >3,000 m.
Worldwide geothermal energy recovery currently contributes around 13,000
megawatts (MW) of electrical power (a little over 8 percent of total electricity
capacity). There is significant potential for expanded geothermal electricity
generation,
neration, up to 73 GW with current technology, and up to 138 GW with enhanced
geothermal systems (EGS) technology (Gawell 2004).
There also are opportunities for expanded use of geothermal direct heat utilization,
with capacity nearly doubling from 2000 to 2005, and with at least 13 new countries
using geothermal heat for the first time. About half of the existing geothermal heat
capacity exists as geothermal heat pumps for building heating and cooling, with 2
million pumps used in over 30 countries. Table no 10 displays past and projected
future trends in the cost of geothermal power.
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Table 12 : Geothermal Power Cost Curve
4.4.2 Characteristics and Applications of Geothermal Energy
Geothermal energy is an enormous, underused heat and power resource that

is clean (emits little or no greenhouse gases), reliable (average system availability
of 95%), and home grown (making us less dependent on foreign oil). Geothermal
resources range from shallow ground to hot water and rock several miles below the
Earth's surface, and even farther down to the extremely hot molten rock called
magma. Mile-or-more-deep
deep wells can be drilled into underground reservoirs to tap
steam and very hot water that can be brought to the surface for use in a variety of
applications.
The general characteristics of geothermal energy that make it of significant
importance for both electricity production and direct use include:
Extensive global distribution; it is accessible to both developed and

developing countries.
ntries.
Environmentally friendly nature; it has low emission of sulphur, CO2 and other
greenhouse gases.
Indigenous nature; it is independent of external supply and demand effects

and fluctuations in exchange rates.
Independence of weather and season.
Contribution to the development of diversified power sources.
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Figure 19: Geo Thermal plant basic mechanism
Geothermal energy can be used very effectively in both onon and off-grid
developments, and is especially useful in rural
rural electrification schemes. Its use spans
a large range from power generation to direct heat uses, the latter possible using
both low temperature resources and cascade methods. Cascade methods utilise
the hot water remaining from higher temperature applications
applications (e.g., electricity
generation) in successively lower temperature processes, which may include binary
systems to generate further power and direct heat uses (bathing and swimming;
space heating, including district heating; greenhouse and open ground
grou
heating;
industrial process heat; aquaculture pond and raceway heating; agricultural drying;
etc.)
4.4.3 Geothermal Energy Scenario: India and world
Geothermal power plants operated in at least 24 countries in 2010, and geothermal

energy was used directly
ly for heat in at least 78 countries. These countries currently
have geothermal power plants with a total capacity of 10.7 GW, but 88% of it is
generated in just seven countries: the United States, the Philippines, Indonesia,
Mexico, Italy, New Zealand, and
and Iceland. The most significant capacity increases
since 2004 were seen in Iceland and Turkey. Both countries doubled their capacity.
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Iceland has the largest share of geothermal power contributing to electricity supply
(25%), followed by the Philippines (18%).
The number of countries utilizing geothermal energy to generate electricity has more
than doubled since 1975, increasing from 10 in 1975 to 24 in 2004. In 2003, total
geothermal energy supply was 20 MToE (metric Tonne Oil Equivalent), accounting
for 0.4% of total primary energy supply in IEA member countries. The share of
geothermal in total renewable energy supply was 7.1%. Over the last 20 years,
capital costs for geothermal power systems decreased by a significant 50%. Such
large costt reductions are often the result of solving the easier problems associated
with science and technology improvement in the early years of development.
Although geothermal power development slowed in 2010, with global capacity
reaching just over 11 GW, a significant acceleration in the rate of deployment is
expected as advanced technologies allow for development in new countries. Heat
output from geothermal sources increased by an average rate of almost 9% annually
over the past decade, due mainly to rapid growth in the use of ground-source
ground
heat
pumps. Use of geothermal energy for combined heat and power is also on the rise.
India has reasonably good potential for geothermal; the potential geothermal
provinces can produce 10,600 MW of power (but experts are confident only to the
extent of 100 MW). But yet geothermal power projects has not been exploited at all,
owing to a variety of reasons, the chief being the availability of plentiful coal at cheap
costs. However, with increasing environmental problems with
with coal based projects,
India will need to start depending on clean and eco-friendly
eco friendly energy sources in future;
one of which could be geothermal.
4.4.4 Technology
Mile-or-more-deep
deep wells can be drilled into underground reservoirs to tap steam and
very hot water
ater that drive turbines that drive electricity generators. Four types of
power plants are operating today:
4.4.4.1 Flashed steam plant
The extremely hot water from drill holes when released from the deep reservoirs high
pressure steam (termed as flashed steam) is released. This force of steam is used to
rotate turbines. The steam gets condensed and is converted into water again, which
is returned to the reservoir. Flashed steam plants are widely distributed throughout
the world.
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4.4.4.2 Dry steam plant
Usually geysers are the main source of dry steam. Those geothermal reservoirs
which mostly produce steam and little water are used in electricity production
systems. As steam from the reservoir shoots out, it is used to rotate a turbine, after
sending the steam through a rock-catcher.
rock
The rock-catcher
catcher protects the turbine
from rocks which come along with the steam.
4.4.4.3 Binary power plant
In this type of power plant, the geothermal water is passed through a heat exchanger
where its heat is transferred
transferred to a secondary liquid, namely isobutene, iso-pentane
iso
or
ammoniawater
water mixture present in an adjacent, separate pipe. Due to this doubledouble
liquid heat exchanger system, it is called a binary power plant. The secondary liquid
which is also called as working fluid, should have lower boiling point than water. It
turns into vapour on getting required heat from the hot water. The vapour from the
working fluid is used to rotate turbines. The binary system is therefore useful in
geothermal reservoirs which are relatively
relatively low in temperature gradient. Since the
system is a completely closed one, there is minimum chance of heat loss. Hot water
is immediately recycled back into the reservoir. The working fluid is also condensed
back to the liquid and used over and over again.
4.4.4.4 Hybrid power plant
Some geothermal fields produce boiling water as well as steam, which are also used
in power generation. In this system of power generation, the flashed and binary
systems are combined to make use of both steam and hot water.
water. Efficiency of hybrid
power plants is however less than that of the dry steam plants.
4.4.4.5 Enhanced geothermal system
The term enhanced geothermal systems (EGS), also known as engineered

geothermal systems (formerly hot dry rock geothermal), refers to a variety of
engineering
techniques
used
to
artificially
create
hydrothermal
resources
(underground steam and hot water) that

that can be used to generate electricity.
Traditional geothermal plants exploit naturally occurring hydrothermal reservoirs and
are limited by the size and location of such natural reservoirs. EGS reduces these
constraints by allowing for the creation of hydrothermal
hydrothermal reservoirs in deep, hot but
naturally dry geological formations.EGS techniques can also extend the lifespan of
naturally occurring hydrothermal resources. Given the costs and limited full-scale
full
system research to date, EGS remains in its infancy,
infancy, with only a few research and
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pilot projects existing around the world and no commercial-scale

commercial scale EGS plants to date.
The technology is so promising, however, that a number of studies have found that
EGS could quickly become widespread.
4.4.5 Potential India
Figure 20: Indian probable regions for Geo Tharmal
It has been estimated from geological, geochemical, shallow geophysical and

shallow drilling data it is estimated that India has about 10,000 MWe of geothermal
power potential
tial that can be harnessed for various purposes. Rocks covered on the
surface of India ranging in age from more than 4500 million years to the present day
and distributed in different geographical units. The rocks comprise of Archean,
Proterozoic, the marine
ne and continental Palaeozoic, Mesozoic, Teritary, Quaternary
etc., More than 300 hot spring locations have been identified by Geological survey of
India (Thussu, 2000). The surface temperature of the hot springs ranges from 35 C
to as much as 98 C. These hot springs have been grouped together and termed as
different geothermal provinces based on their occurrence in specific geotectonic
regions, geological and strutural regions such as occurrence in orogenic belt regions,
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structural grabens, deep fault zones,

zones, active volcanic regions etc., Different orogenic
regions are Himalayan geothermal province, Naga-Lushai
Naga Lushai geothermal province,
Andaman-Nicobar
Nicobar Islands geothermal province and non-orogenic
non orogenic regions are
Cambay graben, Son-Narmada
Narmada-Tapi graben, west coast, Damodar valley, Mahanadi
valley, Godavari valley etc.
Puga Valley (J&K)
Tatapani (Chhattisgarh)
Godavari Basin Manikaran (Himachal Pradesh)
Bakreshwar (West Bengal)
Tuwa (Gujarat)
Unai (Maharashtra)
Jalgaon (Maharashtra)
4.4.6 Historical Capacity & Consumption Data
There is no installed geothermal generating capacity as of now and only direct uses
(e.g. drying) have been detailed.
Total thermal installed
capacity in MWt:
Direct use in TJ/year
Direct use in GWh/year
Capacity factor
203
1,606.30
446.2
0.25
Table 13: Direct Uses
Geothermal Field
Estimated (min.)
reservoir Temp
(Approx)
Status
Puga geothermal
field
240oC at 2000m
Tattapani Sarguja
(Chhattisgarh)
120oC - 150oC at 500 Magneto telluric survey done by

meter and 200 Cat
NGRI
2000 m
Tapoban Chamoli
(Uttarakhand)
100oC at 430 meter
Cambay Garben
(Gujrat)
160oC at 1900 meter Steam discharge was estimated 3000

(From Oil
cu meter/ day with high
exploration
temperature gradient.
borehole)
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geophysical studies (MT)
Magneto telluric survey done by

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Badrinath Chamoli
(Uttarakhand)
150oC estimated
Magneto-telluric
telluric study was done by
NGRI
Deep drilling required to ascertain
geothermal field
Geothermal Field
Reservoir Temp
(Approx)
Status
Surajkund
Hazaribagh
(Jharkhand)
110oC
Magneto-telluric
NGRI.
Heat rate 128.6 mW/m2
Manikaran
Kullu (H P)
100oC
Magneto-telluric
NGRI
Heat flow rate 130 mW/m2
Kasol
Kullu (H P)
110oC
Magneto-telluric
NGRI
Table 14 : Current Projects
There are no operational geothermal plants in India.

4.4.7 Cost, Price and Challenges
Unlike traditional power plants that run on fuel that must be purchased over the life of
the plant, geothermal power plants use a renewable resource that is not susceptible
to price fluctuations.
New geothermal plants currently are generating electricity from 0.05$ to 0.08$ per
kilowatt hour (kwh).Once capital costs .Once the capital
capital costs have been recovered
price of power can decrease below 0.05$ per kwh. The price of geothermal is within
range of other electricity choices available today when the costs of the lifetime of the
plant are considered.
Most of the costs related to geothermal
geothermal power plants are related to resource
exploration and plant construction. Like oil and gas exploration, it is expensive and
because only one in five wells yield a reservoir suitable for development .Geothermal
developers must prove that they have reliable
reliable resource before they can secure
millions of dollar required to develop geothermal resources.
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Figure 21: Geo thermal power costing
4.4.8 Drilling
Although the cost of generating geothermal has decreased by 25 percent during the
last two decades, exploration and drilling remain expensive and risky. Drilling Costs
alone account for as much as one-third
one
to one-half
half to the total cost of a geothermal
project. Locating the best resources can be difficult; and developers may drill many
dry wells before they discover a viable resource. Because rocks in geothermal areas
are usually extremely hard and hot, developers must frequently replace drilling
equipment. Individual productive geothermal wells generally yield between 2MW and
5MW of electricity; each may cost from $1 million to $5 million to drill. A few highly
productive wells are capable of producing 25 MW or more of electricity.
4.4.9 Transmission
Geothermal power plants must be located near specific areas near a reservoir
because it is not practical to transport steam or hot water over distances greater than
two miles. Since many of the best geothermal resources are located in rural areas ,
developers
ers may be limited by their ability to supply electricity to the grid. New power
lines are expensive to construct and difficult to site. Many existing transmission lines
are operating near capacity and may not be able to transmit electricity without
significant
icant upgrades. Consequently, any significant increase in the number of
geothermal power plants will be limited by those plants ability to connect, upgrade or
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build new lines to access to the power grid and whether the grid is able to deliver
additional power
wer to the market.
4.4.10 Barriers
Finding a suitable build location.

Energy source such as wind, solar and hydro are more popular and better
established;
these
factors
could
make
developers
decided
against
geothermal.
Main disadvantages of building a geothermal energy plant mainly lie in the
exploration stage, which can be extremely capital intensive and high-risk;
high
many companies who commission surveys are often disappointed, as quite
often, the land they were interested in, cannot support a geothermal
geotherm energy
plant.
Some areas of land may have the sufficient hot rocks to supply hot water to a
power station, but many of these areas are located in harsh areas of the world
(near the poles), or high up in mountains.
Harmful gases can escape from deep within
within the earth, through the holes
drilled by the constructors. The plant must be able to contain any leaked
gases, but disposing of the gas can be very tricky to do safely.
4.4.11 Geo Thermal companies in India
Panx Geothermal
LNJ Bhilwara
Tata Power
Thermax
NTPC
Avin Energy Systems
GeoSyndicate Power Private Limited
4.4.12 RD&D Priorities
In the case of geothermal energy, several topics are identified as being key to its
advancement in the global market place. These are related to cost reduction,
sustainable
e use, expansion of use into new geographical regions, and new
applications. The priorities are categorized as general or specific to RD&D.
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General priorities:
Life-cycle
cycle analysis of geothermal power generation and direct use systems.
Sustainable production from geothermal resources.
Power generation through improved conversion efficiency cycles.
Use of shallow geothermal resources for small-scale
small scale individual users.
Studies of induced seismicity related to geothermal power generation
(conventional
nventional systems and enhanced geothermal systems.
Specific RD&D priorities:
Commercial development of EGS.
Development of better exploration, resource confirmation and management
tools.
Development of deep (>3 000 m) geothermal resources.
Geothermal co-generation
generation (power and heat).
4.5 Tidal Energy

Ocean can produce two types of energy: thermal energy from the sun's heat, and
mechanical energy from the tides and waves. The fact that the marine renewable
sector is less well developed than other energy industries
industries presents companies with
both opportunities and challenges. The lack of an established industry structure can
make entry into the market uncertain for newcomers. However, this lack of structure
also means that companies are potentially more able to
to create and take
opportunities than is possible in other parts of the energy industry that are developed
and more mature. A wide range of companies are involved in the marine renewable
sector. The figure below shows the key segments of the sector - services that are
needed for the successful completion of a project range from insurance and finance,
resource assessments, environmental surveys, design, manufacture, offshore
construction, operation and decommissioning.
Tides are generated through a combination
combination of forces exerted by the gravitational pull
of the sun and the moon and the rotation of the earth. The relative motion of the
three bodies produces different tidal cycles which affect the range of the tides. In
addition, the tidal range is increased substantially
substantially by local effects such as shelving,
funnelling, reflection and resonance. Energy can be extracted from tides by creating
a reservoir or basin behind a barrage and then passing tidal waters through turbines
in the barrage to generate electricity. Tidal
Tidal energy is extremely site specific requires
mean tidal differences greater than 4 meters and also favourable topographical
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conditions, such as estuaries or certain types of bays in order to bring down costs of
dams etc. Since India is surrounded by sea on three sides, its potential to harness
tidal energy has been recognized by the Government of India.
4.5.1 Technology
Tidal barrage is a way of converting the energy of tides into electric power. A tidal
barrage works in a similar way to that of a hydroelectric scheme, except that the dam
is much bigger and spans a river estuary. When the tide goes in and out, the water
flows through tunnels in the barrage. The ebb and flow of the tides can be used to
turn a turbine, or it can be used to push air through
through a pipe, which then turns a
turbine.
Company
Class Technology Country Year
Aqua Marine
Power
Verdant
Power
Marine
Current
Turbines
SMD
Hydrovision
Open-Hydro
Tidal
Hammerfest
Strom
Tidal
Tidal
Tidal
Tidal
Tidal
Horizontal
Axis Turbine
Horizontal
Axis Turbine
Horizontal
Axis Turbine
Horizontal
Axis Turbine
Open Center
Turbine
Horizontal
Axis Turbine
Stage
UK
2007
Prototype
US
2000
Commercial
UK
2000
Commercial
UK
2003
Prototype
Ireland
2006
Pre
PreCommercial
Norway
2007
Pilot
Table 15: Commercial Status of Tidal Stream Devices (as on 2009)
4.5.2 Potential of tidal energy in India
The most attractive locations are the Gulf of Cambay and the Gulf of Kachchh on the
west coast where the maximum tidal range is 11 m and 8 m with average tidal range
of 6.77 m and 5.23 m respectively. The Ganges Delta in the Sunderbans in West
Bengal also has good locations for small scale tidal power development. The
maximum tidal range in Sunderbans is approximately 5 m with an average
averag tidal
range of 2.97 m.
The identified economic tidal power potential in India is of the order of 8000-9000
8000
MW with about 7000 MW in the Gulf of Cambay about 1200 MW in the Gulf of
Kachchh and less than 100 MW in Sundarbans.
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4.5.3 Proposed tidal power projects in India
Ministry of New and Renewable Energy said in Feb 2011 that it may provide financial
incentives for as much as 50 percent of the cost for projects seeking to demonstrate
tidal power.
4.5.4 Kachchh Tidal Power Project
In, 1970, the CEA

A had identified this tidal project in the Gulf of Kachchh in
Gujarat. The investigations were formally launched in 1982. Sea bed analysis
and studies for preparation of feasibility report were of highly specialized and
complex nature without precedence in the country. More than twelve
specialized organizations of Govt. of India and Govt. of Gujarat were involved
in the field of investigations. The techno-economic
techno economic feasibility study has been
completed in a very scientific and systematic manner and the feasibility
feasib
report
completed in 1988.
The proposed tidal power scheme envisages an installation of 900 MW
project biggest in the world, located in the Hansthal Creek, 25 Kms. from
Kandla Port in District.
The main tidal rockfill barrage of 3.25 Km length was proposed
pr
to be
constructed across Hansthal Creek which will accommodate the power house,
sluice gates and navigational lock.
It envisages installation of 900 MW capacity comprising of 36 geared bulb
type turbo-generators
generators units of 25 MW each and 48 sluice gates
gat each of 10 M.
x 12 M. size would generate 1690 Gwh of energy annually. Unfortunately, this
project execution has not been taken up so far because of unknown reasons.
In Jan 2011, the state of Gujarat announced plans to install Asias first
commercial-scale
scale tidal current power plant; the state government approved
the construction of a 50 MW project in the Gulf of Kutch.
4.5.5 Durgaduani Creek
The country's first tidal power generation project is coming up at Durgaduani Creek
of the Sundarbans.. The 3.75 mw capacity Durgaduani Creek tidal energy project is a
technology demonstration project and will span over an area of 4.5 km. (Oct 2008
data).
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4.5.6 Tidal Barriers
Intermittent supply - Cost and environmental problems, particularly barrage

barrag
systems are less attractive than some other forms of renewable energy.
Global estimates put the price of generation at 13-15
13 15 cents/kWh (no Indian
estimates available)
Cost - The disadvantages of using tidal and wave energy must be considered
before jumping
ing to conclusion that this renewable, clean resource is the
answer to all our problems. The main detriment is the cost of those plants.
The altering of the ecosystem at the bay - Damages like reduced flushing,
winter icing and erosion can change the vegetation
vegetation of the area and disrupt the
balance. Similar to other ocean energies, tidal energy has several
prerequisites that make it only available in a small number of regions. For a
tidal power plant to produce electricity effectively (about 85% efficiency), it
requires a basin or a gulf that has a mean tidal amplitude (the differences
between spring and neap tide) of 7 meters or above. It is also desirable to
have semi-diurnal
diurnal tides where there are two high and low tides every day. A
barrage across an estuary is very expensive to build, and affects a very wide
area - the environment is changed for many miles upstream and downstream.
Many birds rely on the tide uncovering the mud flats so that they can feed.
There are few suitable sites for tidal barrages.
Only provides power for around 10 hours each day, when the tide is actually
moving in or out.
Present designs do not produce a lot of electricity, and barrages across river
estuaries can change the flow of water and, consequently, the habitat for birds
and other wildlife
Expensive to construct
Power is often generated when there is little demand for electricity
Limited construction locations
Barrages may block outlets to open water. Although locks can be installed,
this is often a slow and expensive process.
process
Barrages affect fish migration and other wildlifewildlife many fish like salmon swim
up to the barrages and are killed by the spinning turbines.
Fish ladders may be used to allow passage for the fish, but these are never
100% effective.
Barrages may also destroy
destroy the habitat of the wildlife living near it
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Barrages may affect the tidal level - the change in tidal level may affect
navigation, recreation, cause flooding of the shoreline and affect local marine
life
Tidal plants are expensive to build
They can only be built on ocean coastlines, which mean that for communities
which are far away from the sea, it's useless.
4.6 Wave Power

Ocean wave energy is captured directly from surface waves or from pressure
fluctuations below the surface. Wave power systems convert the motion of the
waves into usable mechanical energy which in lump can be used to generate
electricity. Waves are caused by wind blowing on the surface of the water. Whereas
tidal power relies on the mass movement of the water body, waves act as a carrier
for kinetic energy generated by the wind.
4.6.1 Technology
1. Float Or Buoy Systems that use the rise and fall of ocean swells to drive
hydraulic pumps. The object can be mounted to a floating raft or to a device fixed on
the ocean bed. A series of
of anchored buoys rise and fall with the wave. The
movement is used to run an electrical generator to produce electricity which is then
transmitted ashore by underwater power cables.
2. Oscillating Water Column Devices in which the in-and-out
out motion of waves
wave at
the shore enters a column and force air to turn a turbine. The column fills with water
as the wave rises and empties as it descends. In the process, air inside the column
is compressed and heats up, creating energy. This energy is harnessed and sent to
t
shore by electrical cable.
3. Tapered Channel relies on a shore mounted structure to channel and concentrate
the waves driving them into an elevated reservoir. Water flow out of this reservoir is
used to generate electricity using standard hydropower technologies.
technologies.
4.6.2 Potential of Wave energy in India
The potential along the 6000 Km of coast is about 40,000 MW. This energy is
however less intensive than what is available in more northern and southern
latitudes. In India the research and development activity for exploring wave energy
started at the Ocean Engineering Centre, Indian Institute of Technology, Madras in
1982. Primary estimates indicate that the annual wave energy potential along the
Indian coast is between 5 MW to 15 MW per meter, thus a theoretical potential for a
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coast line of nearly 6000 KW works out to 40000-60000

60000 MW approximately.
However, the realistic and economical potential is likely to be considerably less.
Status
Prototype
Location
Thiruruvananthpuram,
Vizhinjam Fisheries Harbor
Installed
Capacity
150 Kw Plant
Table 16: Wave energy projects in India
2.6.3 Barriers
Depends on the waves variable energy supply

Global estimates put the price of power generation from Waves at 15-17
15
cents/kWh (no Indian cost estimates available)
Needs a suitable site, where waves are consistently strong
Some designs are noisy
Must be able to withstand very rough weather
Visual impact if above water or on shore
Poses a possible threat to navigation from collisions due to the low profile of
the wave energy devices above
above the water, making them undetectable either
by direct sighting or by radar
May interfere with mooring and anchorage lines with commercial and sportsport
fishing
May degrade scenic ocean front views from wave energy devices located
near or on the shore, and from onshore overhead electric transmission lines.
4.7 Biofuel
Biofuel development in India centers mainly around the cultivation and processing of
Jatropha plant seeds which are very rich in oil (40%). The drivers for this are historic,
functional, economic,
ic, environmental, moral and political. Jatropha oil has been used
in India for several decades as biodiesel for the diesel fuel requirements of remote
rural and forest communities; jatropha oil can be used directly after extraction (i.e.
without refining) in diesel generators and engines. Jatropha has the potential to
provide economic benefits at the local level since under suitable management it has
the potential to grow in dry marginal non-agricultural
non agricultural lands, thereby allowing villagers
and farmers to leverage
erage non-farm
non farm land for income generation. As well, increased
Jatropha oil production delivers economic benefits to India on the macroeconomic or
national level as it reduces the nation's fossil fuel import bill for diesel production (the
main transportation
on fuel used in the country); minimizing the expenditure of India's
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foreign-currency
currency reserves for fuel allowing India to increase its growing foreign
currency reserves (which can be better spent on capital expenditures for industrial
inputs and production).. And since Jatropha oil is carbon-neutral,
carbon neutral, large-scale
large
production will improve the country's carbon emissions profile. Finally, since no food
producing farmland is required for producing this biofuel (unlike corn or sugar cane
ethanol, or palm oil diesel),
diesel), it is considered the most politically and morally
acceptable choice among India's current biofuel options; it has no known negative
impact on the production of the massive amounts grains and other vital agriculture
goods India produces to meet the food requirements
requirements of its massive population (circa
1.1 Billion people as of 2008). Other biofuels which displace food crops from viable
agricultural land such as corn ethanol or palm biodiesel have caused serious price
increases for basic food grains and edible oils in other countries.
India's total biodiesel requirement is projected to grow to 3.6 Million Metric Tons in
2011-12,
12, with the positive performance of the domestic automobile industry. Analysis
from Frost & Sullivan, Strategic Analysis of the Indian
Indian Biofuels Industry,
Industry reveals that
the market is an emerging one and has a long way to go before it catches up with
global competitors.
The Government is currently implementing an ethanol-blending
ethanol blending program and
considering initiatives in the form of mandates
mandates for biodiesel. Due to these strategies,
the rising population, and the growing energy demand from the transport sector,
biofuels can be assured of a significant market in India. On 12 September 2008, the
Indian Government announced its 'National Biofuel Policy'. It aims to meet 20% of
India's diesel demand with fuel derived from plants. That will mean setting aside
140,000 square kilometres of land. Presently fuel yielding plants cover less than
5,000 square kilometres.
4.7.1 Economics of biodiesel production
produ
from Jatropha
Processing large quantities of oil and the consequent production of glycerol will likely
depress the price of glycerol. If new applications are found to create additional
demand for glycerol, its price could be stabilized. The above table
table shows that the
cost of the feed material is the dominating factor in determining the production cost
of biodiesel. Even if we neglect the credit for glycerol recovery and sale, the cost of
biodiesel from Jatropha oil at Rs. 21/litre ($0.47/litre) is very
very competitive with the
manufacturing cost of petroleum diesel.
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Table 17: Summary of cost of biodiesel production
4.7.2
.7.2 Project operation and crediting period
The project will operate at 70 per cent capacity during the first year and at 100 per
cent from year two onwards. The carbon emission reduction crediting periods are
organized into three seven--year intervals, for a total of 21 years.
4.7.3 Project cost and financing
The capital cost to be raised through issuance of shares

shares is estimated at Rs. 171
million.
4.7.4 Project status
The transesterification plant construction and commissioning is expected to be

completed in coming years.. Availability of feedstock is the biggest factor affecting the
start of operations. Since it will
will take five years for the Pongamia Pinnata trees to
grow and produce seeds, the initial oil feedstock has to be procured from Jatropha or
animal fats. In the case of feed from animal fats, additional pre-treatment
pre
is
necessary to neutralize the free fatty acids present in fats; otherwise these acids will
react with the alkaline catalyst and adversely affect the transesterification process.
Approval from the CDM Executive Board for certified emission reductions is
expected soon.
4.7.5 Biodiesel industry growth
wth
India has just finished the pilot stage and is entering the incubation stage. The EU is
well into the growth phase. For instance, the UK is setting up two plants totalling
350,000 t/year capacities in 2005 alone, and a few more are planned in the near
future. Of course the hectic growth pace in Europe is fuelled by the European
Commission mandate that biofuels comprise 2 per cent of the fuel consumption by
2005 and 5.75 per cent by 2010.
Diesel consumption in India is estimated at 66.91 million tons in 2011-2012.
2011
Given
this figure, the biodiesel required for 20 per cent blending would be 13.38 million
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tons. Obtaining biodiesel in this amount is quite a daunting task and involves about
14 million hectares of land under Jatropha cultivation. To put it in perspective,
p
the
land currently under sugarcane cultivation is 4.36 million hectares. India may have to
import biodiesel or vegetable oil feedstock or even oilseeds.
Figure 22: Biodiesel industry growth curve
In conclusion, the biofuels industry is poised to make important contributions to

meeting Indias energy needs by supplying clean domestic fuel. The ethanol industry
is mature, but with efficiency improvements, the use of alternate crops and the
deployment of new technologies like enzymatic fermentation of cellulosic material, it
can easily supply the ethanol requirements for 5 per cent or even 10 per cent ethanol
blending. As for biodiesel, R&D work on high oil-yielding
oil yielding Jatropha seeds is complete
and pilot projects
ojects for plantations and transesterification plants are under way. The
industry is in the incubation stage, but large-scale
large scale Jatropha cultivation and the
infrastructure for oilseed collection and oil extraction must be established before the
industry can be placed on a rapid-growth
rapid growth track. In the meantime imports could help,
as could income generated from the sale of certified emission reductions from
biodiesel projects approved by the CDM executive board.
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5. CONCLUSION
India has a severe electricity
electricity shortage. It needs massive additions in capacity to
meet the demand of its rapidly growing economy. The countrys overall power
deficit11
11 percent in 2009has
2009 has risen steadily, from 8.4 percent in 2006. About
100,000 villages (17 percent) remain unelectrified,
unelectrified, and almost 400 million Indians
are without electricity coverage. Indias per capita consumption (639 kWh) is one of
the lowest in the world.
The Integrated Energy Policy Report, 2006, estimates that India will need to increase
primary energy supply by three to four times and electricity generation by five to six
times to meet the lifeline per capita consumption needs of its citizens and to sustain
a 8 percent growth rate. The government plans to provide universal access and to
increase per capita consumption
sumption to 1,000 kWh by 2012. This translates into a
required generation capacity of 800GW compared to 160GW today. The need to
bring on new generation capacityand
capacity and to improve operational efficiency in
transmission and distributionis
distribution
clear.
Renewable energy
rgy can be an important part of Indias plan not only to add new
capacity but also to increase energy security, address environmental concerns, and
lead the massive market for renewable energy. More than threethree-fourths of Indias
electricity production depends
depends on coal and natural gas. At current usage levels,
Indias coal reserves are projected to run out in 45 years. India already imports 10
percent of its coal for electricity generation, and the figure is projected to increase to
16 percent by 2011.
Like coal,
oal, gas and oil have witnessed considerable price volatility in recent years.
Development of renewable energy sources, which are indigenous and distributed
and have low marginal costs of generation, can increase energy security by
diversifying supply, reducing
ucing import dependence, and mitigating fuel price volatility.
Accelerating the use of renewable energy is also indispensable if India is to meet its
commitments to reduce its carbon intensity. The power sector contributes nearly half
of the countrys carbon
on emissions. On average, every 1GW of additional renewable
energy capacity reduces CO2 emissions by 3.3 million tons a year. Local ancillary
benefits in terms of reduced mortality and morbidity from lower particulate
concentrations are estimated at 334 lives
lives saved/million tons of carbon abated.
Renewable energy development can also be an important tool for spurring regional
economic development, particularly for many underdeveloped states, which have the
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greatest potential for developing such resources. It can provide secure electricity
supply to foster domestic industrial development, attract new investments, and
hence serve as an important employment growth engine, generating additional
income.
Renewable energy is seen as the next big technology industry, with the potential to
transform the trillion dollar energy industry across the world. China seized this
initiative to become a world leader in manufacturing renewable energy equipment.
Indias early and aggressive incentives for the wind sector have
h
led to the
development of world-class
class players. Investing in renewable energy would enable
India to develop globally competitive industries and technologies that can provide
new opportunities for growth and leadership by corporate India.
Almost 400 million
ion Indiansabout
Indians about a third of the subcontinents populationdont
population
have access to electricity. This power deficit, which includes about 100,000 unun
electrified villages, places Indias per capita electricity consumption at just 639
kWhamong
among the worlds lowest
lowes rates.
The access gap is complicated by another problem: more than three-quarters
three
of
Indias electricity is produced by burning coal and natural gas. With Indias rapidlyrapidly
growing population currently 1.1 billionalong
billion along with its strong economic growth in
recent years, its carbon emissions were over 1.6 billion tons in 2007, among the
worlds highest.
This is unsustainable, not only from a climate change standpoint, but also because
Indias coal reserves are projected to run out in four decades. India already
alr
imports
about 10% of its coal for electricity generation, and this is expected to reach 16% this
year.
Indias national and state governments are taking action to correct this vicious circle
of power deficits and mounting carbon emissions. The national
national government has set a
target of increasing renewable energy generation by 40 gigawatts (GW) by 2022, up
from current capacity of 15 GW, itself a threefold increase since 2005.
Still,
renewable sources account for just 3.5% of Indias energy generation at

a present, so
the scale of the challenge is formidable. The cost of meeting it will be high unless the
tremendous innovative capacity of India and market reforms can be coordinated to
make India a clean energy leader.
An excellent new study, Unleashing the Potential of Renewable Energy in India,
produced by a World Bank team led by my colleague Gevorg Sargsyan, and
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supported by the Energy Sector Management Assistance Program (ESMAP),

estimates that achieving the Indian governments renewable energy goals for the
next decade will cost $10 - $64 billion in subsidies. The lower-cost
cost scenario is based
on developing low-diversity,
diversity, low-cost
low cost renewable energy sources, while the higherhigher
cost estimate is based on a renewable energy mix that is high-diversity,
diversity, including
high-cost
cost sources like solar. Spread over 10 years, the low-cost
low cost option is within
reach. And if fossil fuel prices continue to risefree
rise free of distorting subsidies
subsidies the
higher-cost
cost scenarios grow more viable.
But power generation is just part of the challenge involved in exploiting Indias
estimated 150 GW of renewable energy potential; the other challenge is
transmission and distribution of the power to far flung areas of the country. A $1$1
billion World Bank loan approved in 2009 is helping to turn this around. It supports
implementation of a plan by Indias national power transmission utility, Powergrid
Corporation, to strengthen five transmission systems in the northern, western and
southern regions of the country.
country. This will enable transfer of power from energy
surplus regions to towns and villages in under-served
under served regions of the country. It will
also increase the integration of national grid, resulting in a more reliable system and
reduced transmission losses.
By 2050, some estimates put Indias power generation requirements at one terawatt,
or one trillion watts. This would be a six-fold
six fold increase in Indias current installed
power capacity. It is a big challenge. But it is a big opportunity too, for Indian
companies,
ies, for the creation of Indian jobs, for greater Indian prosperity. Because
most of Indias power plants have yet to be built, India has options that many
countries can only dream of. Instead of being locked into following a high-carbon
high
energy track, India
ia can lead the way to a lower-carbon,
lower carbon, renewable energy path.
India is already home to Suzlon, the third leading wind energy installer worldwide,
with almost 10% of the total global market. Other innovative companies in solar
energy, biomass energy production,
production, and energy efficiency are growing in Indias
vibrant entrepreneurial sector. In addition, Indias waterways offer abundant small
hydropower potential that remains untapped because the transmission and
distribution capacity is inadequate.
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6. BIBLIOGRAPHY
Web Links
1. http://en.wikipedia.org/wiki/Renewable_energy_in_India
2. http://en.wikipedia.org/wiki/Biofuel_in_India
3. http://en.wikipedia.org/wiki/Electricity_sector_in_India
4. http://www.indiasolar.com/survey-swh.htm
http://www.indiasolar.com/survey
5. http://www.triplepundit.com
6. http://www.prlog.org/11363349-solar-power-business-opportunities-inhttp://www.prlog.org/11363349
-india-solar-andwind-power-as-viable-solution.html
solution.html
7. http://uk.ibtimes.com/articles/20110803/indiagrowing-solar-power-potential.htm
http://uk.ibtimes.com/articles/20110803/indiagrowing
potential.htm
8. http://www.business-opportunities.biz/2005/02/28/solar
opportunities.biz/2005/02/28/solar-power-business
business-idea/
9. http://www.renewableenergyworld.com/rea/news/article/2010/08/indias-solarhttp://www.renewableenergyworld.com/rea/news/article/2010/08/indias
opportunities-and-challenges
challenges
10. http://www.business-standard.com/india/news/huge
andard.com/india/news/huge-solar-power-potential
potential-in-india-solarequipment-co/101166/on
co/101166/on
11. http://www.greenworldinvestor.com/2010/05/30/solar-energy-in-indiahttp://www.greenworldinvestor.com/201
-biggestoppurtunity-in-energy-in
in-the-21st-century/
12. http://www.eai.in/ref/ae/win/win.html
13. http://www.inwea.org/aboutwindenergy.htm
http://www.inwea.org/aboutwind
14. http://www.eai.in/ref/ae/win/business_opportunities.html
15. http://www.eai.in/ref/ae/win/policies.html
16. http://www.alternative--energy-news.info/future-renewable-energy-india/
india/
17. http://mnre.gov.in/prog-smallhydro.htm
http://mnre.gov.in/prog
18. http://www.eai.in/ref/ae/oce/oce.html
19. http://www.geda.org.in/other_sources/other_re_sources.htm
20. http://www.daviddarling.info/encyclopedia/T/AE_tidal_barrage.html
http://www.geda.org.in/other_sources/other_re_sources.htm
http://www.powertoday.co.in/fut4.html
http://www.virtualsciencefair.org/2006/wong6j2/tidal.html
21. http://www.accessv.com/~shawgrp/energy.htm
22. nptel.iitm.ac.in/courses/Webcourse.../pdf/.../student_slides08.pdf
23. http://www.niot.res.in/projects/desal/desalination_waveenergyin.php
http://www.niot.res.in/projects/desal/desalination_waveenergy
www.ese.iitb.ac.in/.../Sceneario%20of%20renewable%20energy%20in%20india(R.B.).pdf
http://www.ioes.saga-u.ac.jp/english/about
u.ac.jp/english/about-india-otec_e.html
24. http://en.wikipedia.org/wiki/Biofuel_in_India
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25. http://www.renewableenergyworld.com/rea/news/article/2011/02/indias
http://www.renewableenergyworld.com/rea/news/article/2011/02/indias-renewablefuture-challenges-and-prospects
prospects
26. http://blogs.worldbank.org/climatechange/node/760
Articles
1. Energy Scenario India
2. Indian Renewable Energy Status Report Background Report for DIREC 2010
3. Background Report
4. Increasing Global Renewable Energy Market Share, Recent Trends and
Perspective (Beijing
Beijing International Renewable Energy Conference)
5. Energy Revolution A Sustainable Global Energy Outlook
6. Renewables 2011 Global Status
Stat Report
7. Renewable Energy in India: Opportunities and Challenges by E&Y
8. Overview of Renewable Energy Potential of India by Global Energy Network
Institute
9. Energy Policy Scenarios to 2050 by World Energy Council
10. Energy Policy Scenarios to 2050:
2050 Issues and options
11. Overview Of Small Hydro Power Development In Himalayan Region by Manoj
Kumar Kesharwani
12. Small Hydro Potential In India by R.Venkateswaram
13. Making solar thermal power generation in India a reality Overview of
technologies, opportunities and challenges
chal
14. Offshore wind Power In India Opportunities
Opportunities And Challenges
15. Indias Renewable Energy Sector - Potential and Investment Opportunities
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CHALLENGES & OPPORTUNITIES FOR

RENEWABLE ENERGY IN INDIAN PERSPECTIVE

United Business Institutes

INTERNATIONAL MBA IN POWER

Under the guidance of

PROJECT REPORT: Challenges & Opportunities For

(Signature of the Student)

PROJECT REPORT: Challenges & Opportunities For

It gives me a great sense of achievement and pleasures to present this report on my

PROJECT REPORT: Challenges & Opportunities For

CERTIFICATE FROM PROJECT GUIDE

The work has been completed to my satisfaction.

PROJECT REPORT: Challenges & Opportunities For

PROJECT REPORT: Challenges & Opportunities For

Still as mentioned earlier, by

PROJECT REPORT: Challenges & Opportunities For

Specifically, 3,700 MW are currently powered by renewable energy sources. This is

PROJECT REPORT: Challenges & Opportunities For

PROJECT REPORT: Challenges & Opportunities For

PROJECT REPORT: Challenges & Opportunities For

PROJECT REPORT: Challenges & Opportunities For

4.1.6 Domestic Content (PV) ................................................................................................

PROJECT REPORT: Challenges & Opportunities For

4.4.12 RD&D Priorities ................................................................................................

PROJECT REPORT: Challenges & Opportunities For

1.1 Primary and Secondary Energy

Figure 1: Major Primary and Secondary Sources

PROJECT REPORT: Challenges & Opportunities For

1.2 Commercial Energy and Non Commercial Energy

1.3 Renewable and Non--Renewable Energy

PROJECT REPORT: Challenges & Opportunities For

Figure 2: Renewable and Non-Renewable Energy

1.4 PURPOSE OF STUDY

PROJECT REPORT: Challenges & Opportunities For

1.5 OBJECTIVE OF THE PROJECT

To provide an overview of renewable energy resources and recent

India is perceived as a developing country, but it is developing at a pace that is not

PROJECT REPORT: Challenges & Opportunities For

1.7 RESEARCH METHODOLOGY

2.0 INDIAN ENERGY AND CLIMATE CHANGE STATUS

PROJECT REPORT: Challenges & Opportunities For

PROJECT REPORT: Challenges & Opportunities For

2.1 Commercial Energy Consumption

Figure 3: Worldwide consumption of primary sources of energy by country (2008)

PROJECT REPORT: Challenges & Opportunities For

Figure 4: Percentage share of commercial energy sources in India

PROJECT REPORT: Challenges & Opportunities For

Until 1991, the Indian

PROJECT REPORT: Challenges & Opportunities For

2.3 Power Consumption

Figure 5 :Per capita annual electricity consumption in India

PROJECT REPORT: Challenges & Opportunities For

Figure 6 : India electricity consumption sector-wise (utilities & non-utilities,

PROJECT REPORT: Challenges & Opportunities For

year, which still corresponds to a five-fold

2.4 Power Generation Capacity

PROJECT REPORT: Challenges & Opportunities For

PROJECT REPORT: Challenges & Opportunities For

Figure 9 : Development of installed electrical capacities of utilities and non-utilities

PROJECT REPORT: Challenges & Opportunities For

In March 2009, the gross electricity generation48 by utilities

Figure 11 : Power Generation Growth

Electricity Generation Efficiency Conventional thermal power generation in India