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Renewable Energy and Technologies

SECTOR PROFILE
Table of Contents

1. India – Preferred Investment Destination


2. Gujarat – Preferred Investment Destination in India
3. Renewable Energy and Technologies
3.1. Global scenario
3.2. Indian scenario
3.3. Gujarat scenario
3.4. Success stories
3.5. Scenario in Gujarat by 2020 and investment opportunities
4. Advantage Gujarat
5. Doing Business in Gujarat
6. Key Government Agencies
INDIA - PREFERRED INVESTMENT DESTINATION

1
01
INDIA - PREFERRED INVESTMENT DESTINATION

Trade Scenario, USD billion FDI Confidence Index, 2012


9th largest economy in the
world by nominal GDP and A.T. Kearney Survey
3rd largest by purchasing 400
China 1.87
350 CAGR CAGR
power parity (PPP) 300 Exports Imports India 1.73
250 14% 14%
200 Brazil 1.6
Recorded the highest growth 150

rates in the mid-2000s 100 US 1.52 Growth


50 Decline
0 Germany 1.52 No Change

One of the fastest growing 1990-91 1994-95 2000-01 2004-05 2010-11


Export Import 0 0.5 1 1.5 2
economies in the world (GDP
growth rate – 8.6% in 2011) FDI - Top Sectors
India is one of the
major G-20 economies: Automobile
Metallurgical Pharmaceuticals
industries
Petroleum
and natural
5%
GDP growth rate the 17th largest exporter and industry
6%
5% gas
3%
Power

15.0%
11th largest importer in the world Construction
7%

9.5% 9.6% 9.3% 8.6% activities Services


10.0% 6.8% 8.0% 10% 30%
5.0%
Main Export Partners
0.0% Real estate
2006 2007 2008 2009 2010 2011 11%

Computer software Telecommunications


Sectors’ contribution to GDP US UAE China Hong Kong
and hardware
11%
12%

2011-12 16% 25% 59%


13% 12% 8% 4%
(A)
2010-11 17% 26% 58%
The 2nd preferred global
(Q)
2009-10 17% 26% 57%
investment destination
Main Import Partners (World Investment Prospects Survey
2008-09 18% 26% 56% 2010-2012 by UNCTAD)
2007-08 19% 25% 56%

2006-07 20% 26% 54% USD 254 billion of FDI inflows


China UAE Saudi Arabia US Australia between April 2000 and
- 200 400 600 800 1,000 1,200
12% 7% 6% 6% 5% March 2012
USD, billion
Agriculture Industry Services

02
ADVANTAGE INDIA

Land of abundant
World's largest
natural
nat resources
democracy with
dem
and
a nd diverse
1.2 billion people
climatic conditions

Enabling business
environment
en Str
Strong Market
with greater global
wit Fu
Fundamentals
participation

Access to
Impetus on
technology as
tec
Infrastructure
Infra
a result of the
Development
D
IT revolution

Progressive
simplification and Competitively
rationalization
rati of priced
pric skilled
direct and indirect labour
tax structures

03
GUJARAT - PREFERRED INVESTMENT DESTINATION IN INDIA

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04
GUJARAT HAS BEEN RANKED 1ST AS PER THE “ECONOMIC FREEDOM RANKINGS
FOR THE STATES OF INDIA, 2012” REPORT

Double digit growth rate with Gross State


Domestic Product of USD 75 billion
(2010-11) growing at a five year average of
10%
Growth in agricultural output in
the state over the last 10 years 11%
A highly industrialized state - Gross State
Domestic Product contribution from
manufacturing sector
28%
Gujarat’s Degree of Openness
(ratio of exports from state to
Gross State Domestic Product)
53%
A state with a population of 60 million and
one of the highest urbanization levels 43%
Increase in seat availability in
technical institutions over last 3 years 100%
A state with a high and
growing literacy rate 79%
A state with one of the highest share in
investments under implemented projects
in India
26%
05
RENEWABLE ENERGY AND TECHNOLOGIES

3
06
RENEWABLE ENERGY AND TECHNOLOGIES
GLOBAL SCENARIO

India

3
3.1 07
GLOBAL RENEWABLES

Established global resources


vs renewable resources
Annual Solar
Irradiation
to the Earth
• Enough renewable energy resources
available to satisfy World’s energy
demand

Global Annual
• Solar energy alone could meet existing
Energy Consumption global energy needs 10,000 times over
Solar (Continents) Coal
Wind Gas
Biomass Oil
Geothermal Nuclear
Ocean & Wave Primary Energy
Hydro Consumption

World Energy Consumption


• International Energy Outlook 1990-2035, (quadrillion Btu)
2011 forecasts energy 500

consumption growth by 53% 400

between 2008 and 2035. 300


200

• It is expected to reach 770 100

quadrillion Btu 0
1990 2000 2008 2015 2020 2025 2030 2035
OECD Non-OECD

• Total renewable power capacity Renewable Electric Power Top 5 countries


in the world (excluding hydro) 400 Capacity, GW, 2010 RE capacity, 2010-11
amounts to 312 GW 300
1. United States
• Renewable energy share 200
2 China
(non-hydro) of global electricity 100
3 Germany
production is 3.3% 0 4 Spain
US na ny in ia ers
• India accounts for 5% of the Wo
rld Chi
Ger
ma Spa Ind Oth 5 India
global renewable electric Wind power Biomass power
power capacity Solar PV
Solar thermal power
Geothermal power
Tidal power

Source: REN21., 12th PwC Annual Global Power & Utilities Survey

08
DRIVERS OF GLOBAL RE MARKET DEVELOPMENT

• Energy Security, energy


from clean and sustainable
Forces driving development of
sources, market competition
renewable energy market
and energy infrastructure are
the main issues of the power
market
Focus on
• Commitment to a 20:20:20 Stakeholder sustainability
ambition (EU) of 20% pressure for and lowering
emissions reduction, 20% environmental environmental
action impact
renewable energy and 20%
i m p rove m e n t i n e n e rg y Energy Continued
efficiency by 2020 dependence growth in
and energy energy
security demand
Technological
progress
driving down
capital cost

Select indicators of RE market Unit 2008 2010


development

Global new investment in billion


renewable energy (annual) USD 130 211 12th PwC Annual Global Power &
Utilities Survey – Cleaner energy
Solar PV cell production (annual) GW 6.9 24 perspectives
Ethanol production (annual) billion litres 67 86 • A major ramping-up of non-hydro
renewables by 2030
Biodiesel production (annual) billion litres 12 19
• 43% is the forecast share of non-
Countries with policy targets # 79 98 fossil fuel in generation by 2030

Countries with feed-in policies # 71 87

Source: REN21., 12th PwC Annual Global Power & Utilities Survey

09
RENEWABLE ENERGY AND TECHNOLOGIES
INDIAN SCENARIO

10
3.2
RENEWABLE ENERGY – GROWING SHARE IN FUEL MIX

Pressure on availability and


Renewable sector is
cost of primary fuels RE market is now seeing a
dominated by private sector
due to growth and slow but definite
and moving towards
climate change actions convergence
IPP scale producers
are the key drivers

India installed capacity mix, MW Renewable capacity, MW

4,780 , 2%

0.3% 2%
38,990 Wind Power
, 20% 5% 9%
Thermal Small Hydro Power
Nuclear Biomass Power
Hydro 24,503 14%
, 12% Bagasse Cogeneration
RES Waste to Power
131,603 70%
, 66% Solar Power (SPV)

• India has an installed renewable capacity of 24,500 MW (excluding large hydro) as on March 2012
• Renewable energy is 12% in total capacity and 4% of energy generation.
• By 2050 69% of energy generation will be from renewable energy (Greenpeace vision)

Source: MoP, MNRE

11
INDIA’ S RENEWABLE ENERGY OPTIONS

Grid Interactive Strengths Challenges


India possesses a large,
untapped renewable • Most established renewable • Seasonality- peaks
energy source in India in monsoon
energy potential • India possesses significant • Higher capital cost per
untapped potential unit of generation- relatively
Wind Power
• Strong domestic lower returns due to maturity
The resource potential is
manufacturing base of markets and strong
large even with • Regulatory support discipline of wind turbine
current assessments manufacturers

• Require significantly lower • Seasonality- for rain-fed rivers,


time to commissioning PLFs contract sharply after
Small Hydro • Fewer environmental or the monsoon months
Power CERC clearances • Relatively capital intensive
(up to 25 MW) • Viable option for base load and longer construction
Renewable Energy for perennial rivers period compared to other
Opportunity, MW • Regulatory support renewable options
140,000
• Abundance of biomass • Availability of quality feedstock
120,000 Bio-Power (Agro (agricultural and forestry round the year- can be a
residues and residues) challenge, particularly for
100,000 plantation) • Viable option for base load single fuel/ bagasse
Bagasse based • Relatively short time to based plants
80,000 commissioning
generation
• Regulatory support
60,000

40,000 Energy from • Large amount of waste • Foreign technology - requires


Waste generated in India adaptability
20,000 • Fuel availability and
seasonality poses challenges
-
Tapped Potential Solar • Large untapped potential • Expensive technology as
Wind Power Small Hydro Power Photovoltaic in India compared to other sources
Biomass Power Bagasse Cogeneration
Waste to Power Solar Power
• Long term solution and • Technology is yet to pick up
Geothermal ability to manage scheduling at commercial scale

12
POLICIES AND REGULATIONS

• Renewable power is expected to constitute a significant part of India’s incremental


capacity addition.
• A robust regulatory framework has been put in place to realize India’s wind, hydel, solar
and biomass potential.

• Mandated State Electricity Regulatory Commissions (SERCs) to


Electricity • Promote generation of electricity from renewable sources of energy by providing
Act 2003 suitable measures for connectivity with the grid and sale of electricity to any person
• Fix certain minimum percentages for purchase of renewable power

National • Further provided for progressive increase in generation of electricity from renewable
Electricity sources and supported purchases by distribution companies through competitive bidding
Policy 2005 process

• Provided for fixation by SERCs of a minimum percentage of Renewable Purchase Obligation


Tariff (RPO) from RE sources taking into account availability of such resources in the region and its
Policy 2006 impact on retail tariffs and procurement by distribution companies at preferential tariffs
determined by the SERCs

• Outlined existing and future policies and programs addressing climate mitigation and
National Action adaptation
Plan on Climate
Change 2008 • NAPCC has advised that starting 2009-10, RPOs be set at 5% of total grid purchase, and be
increased by 1% each year for 10 years.

13
POLICIES AND REGULATIONS – NATIONAL SOLAR MISSION

National Solar Mission


A. 20 GW Grid based solar power
projects by 2022
• Conceived under the National Action Plan on Climate
Change • Large power plants (5 MW solar PV; 5 to
100 MW CSP in NSM 1 and 5MW to
• Establish India as global leader in solar power by creating 50MW solar PV in NSM 2)
favourable policy conditions
100 MW rooftop and small projects
• Accelerate generation capacity addition to drive down
costs and achieve grid parity by 2022 • Connected below 33 kV. Target (10 MW
of up to 100kW ; and 90 MW of 0.1 to
• National Tariff Policy amended (January 2011) for 2 MW.
mandatory Solar RPOs for all power utilities

B. 2000 MW off-Grid project by 2022


Phase 1: 2010-13
• Off grid solar and decentralized solar
Policy framework to Grid: 1,100 MW applications.
attract and scale-up Off-grid: 200 MW
• Capital and interest subsidy; refinance
by IREDA, etc.
• Other channels to supply & maintain
Phase 2: 2013-17 products

Market based on FIT and Grid: 4-10,000 MW


mandatory solar RPO Off-grid: 1,000 MW C. Support projects
• Centre of excellence and incubation
• Demonstration and pilot projects
Phase 3: 2017-22
- 100 MW parabolic trough based
Grid competitive Grid: 20,000 MW - 100-150 MW solar hybrid plant
solar power Off-grid: 2,000 MW
- 50-100 MW CSP with storage
- BIPV projects

14
SUPPORT MECHANISM FOR RENEWABLE POWER IN INDIA

Policy Instrument Indian Experience Positives for Developer

Feed in Tariffs/ • Being used for all active RE technologies. introduced by most states • Financial as well as economic costs and
Preferential Tariffs except J&K, Bihar, Jharkhand, Odisha and the North Eastern states. benefits of RE are not yet factored in FIT
• Preferred by developers because it enhances project bankability • Technology upgradation could lead to better
returns as it is not considered in FIT

Accelerated • Acknowledged as the key instrument for success of wind industry • The sector has attained scale & commercial
Depreciation (AD) in India viability on its own.
• Most wind installations in India have been developed under AD.

Generation Based • Recently introduced to shift investment focus from capacity addition • Presents avenues for additional guaranteed
Incentives (GBI) to electricity generation – move from capital subsidies (AD) to revenues for project developers
generation based incentive.

Renewable • RPOs are mandated by the Electricity Act 2003 and National Tariff Policy • Readymade market for renewable
Purchase • RPOs adopted by 23 SERCs power sources
Obligation (RPO)

Clean Energy • The government plans to develop these funds for development of
Cess renewable energy

Renewable • MNRE and CERC have developed a REC regime which has kicked • Helps renewable power developers
Energy Certificates off recently to trade RECs and realise the value
(RECs) • Serves as a mechanism to fulfill the RPO obligations thereby reducing of power
penalties

Carbon • India has largest number of registered and pipeline CDM projects • Additional cushion for developers
Trading in the world. to increase their project returns
• Helped to push the RE industry by making projects more financially and RoE
attractive

Tax Incentives - • Tax exemption instruments such as exemptions or reductions on excise • Tax Incentives help improving RoE of
Exemptions on and customs duty have been introduced developer
Capital Investments
and Generation

State RE • Examples of state with policies for RE include Karnataka, Punjab, Madhya • The number of clearances required for
Policies Pradesh, Gujarat, Himachal Pradesh, Uttarakhand etc renewable projects has come down

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RENEWABLE ENERGY CERTIFICATE

• Mass market: not subject to the geographic and physical limitations


• One REC to be issued for every MWh of electricity fed to the grid and metered at the bus-bar of generator
• REC issued is valid for a period of 1 year
Overview • Not related to Carbon Credits, both mechanisms operate independent of each other.
• Pricing of REC component:
- Sold in the exchange within a range of floor price and ceiling price as fixed by CERC from time to time

• A renewable generating entity that has:


Not entered into any PPA at a preferential tariff
Eligibility - Sells its power to a local distribution licensee at a cost at or below the Average Power Purchase
Cost (excl. RE power cost)
- Sells power either to the third party or through Power Exchanges

REC: Operational Framework

1 Accreditation of RE power plants (State nodal agency: SNA)

2 Registration of Eligible entities (Central level agency)

Information related to accredited RE plants for registered entities sent to REC registry

5 6
Issuance of REC
RE Generator Central REC
REC exchange
Registry (NLDC)
3 Information
related to RE
Sale of electricity at par with
generation
conventional power Auditing Panel
4

Discom issuing RE State Load


Electricity Energy Despatch Centre Information on REC purchase/redemption
injection certificate
accounting (SLDC)
State Nodal
SERC: Compliance
Agency (SNA)
based on SNA Report

16
RENEWABLE PURCHASE OBLIGATIONS

RPO Targets* (2012)


• The Government has set a target of 10% energy
generation from renewable sources* by 2012
• In 2007, the Government released draft versions STATE RPO (% OF
of a new policy which seeks to increase the target UNITS SOLD)
to 20% by 2020 Andhra Pradesh 5%
• Several State Regulators (“SERC”) have translated Gujarat 6%
this national target into Renewable Purchase
Obligations (RPO) Haryana 1.5%

• RPOs mandate the minimum quantum of Karnataka 7% &10%


electricity which distribution utilities in the Kerala 3.3%
States have to source from renewable sources
(failing which, a penalty may be imposed on Madhya Pradesh 10%
them) Maharashtra 7%
• On a pan-Indian basis, the total RPO Odisha 5%
commitment by the 12 States that have
implemented it constitutes ~5.33% of the total Rajasthan 6%
power consumption in 2007-08 Himachal Pradesh 11.1%
• The RPO system passes on the onus of increasing Tamil Nadu 14%
renewable energy consumption to the State
DISCOMS – effectively the cost of acquiring this Uttar Pradesh 5%
renewable electricity is passed onto the West Bengal 3.8%
consumer through higher power tariffs
Uttarakhand 4.525%

Chhattisgarh 5.25%

* Excludes large hydro projects and nuclear power

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CLEAN ENERGY SECTOR IN INDIA-WAY FORWARD

Interplay of favorable risk-return profile at project level coupled with the emerging Indian
merchant power opportunity creates a positive strategic framework for Indian renewable IPP players

Project Level
• Shorter time-to-commissioning than conventional power projects
• Fast-track project approval- significantly fewer environmental or CERC clearances required
compared to conventional power projects
• Easier to achieve financial closure vis-à-vis larger projects, Greater predictability of project
execution
• Plethora of small-to-mid size units in “locally constrained” entrepreneurial setups: ideal for
consolidation play
• Bidding route not mandatory for new capacities

Financial Perspectives
• Low working capital requirements, particularly for small hydro and wind projects
• Ability to boost returns through emissions trading options
• Regulatory support, including preferential tariffs
• Fiscal incentives (subsidies, grants and tax incentives) available in some States

Sustainability
• Lower fuel sourcing and pricing risk compared to conventional power projects
• Opportunity to de-risk asset portfolio through geographic and technological options- exposure to
multiple markets, regulatory regimes, technologies and climatic conditions
• Lower social friction concerns by promoting ‘inclusive growth’
• Broadening fuel base complements efforts to decouple India’s economic growth from emissions
growth and helps to achieve energy security

Fund requirement
• Consolidated fund requirement estimated by MNRE (Strategic plan for new and renewable energy
sector for the period 2011 -17 is
• For grid connected renewable energy technologies – USD 2.6 billion
• For off grid renewable energy programs – USD 2.7 billion

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RENEWABLE ENERGY AND TECHNOLOGIES
GUJARAT SCENARIO

3.3 19
GUJARAT – RENEWABLE ENERGY POWERHOUSE

Gujarat’s power sector – strong


performer Break up of installed power Break up of installed capacity
capacities in Gujarat, May 2012 from RE source in
Gujarat, May 2012
Collection
97.5 Nuclear
Efficiency
100.1 3% Hydro
(%) SHP
3% 0.2%
BIO
67.0 1%
PLF (%) Renewables Wind
79.8 81% Solar
16%
Thermal 18%
78%
T&D loss 30.6
(%) 20.1

40.0 80.0 120.0


2004-05 2010-11 • Share of renewable energy in total energy mix
in Gujarat is 16%
• Gujarat’s share of energy from renewable
energy sources in Western Region
Gujarat was power deficient is 44% and all India share is 14%
barely a decade ago, but now
has a surplus power and a
vibrant energy sector
The state of Gujarat is blessed with
abundant renewable energy potential
Timely tariff revisions have
made the sector viable enabling Source Total Total RE installed
the state to set up adequate Potential potential Capacity, % of
generation capacity (India), MW (Gujarat), MW total potential
in Gujarat
Wind 45,000 10,000 25.8%
Uninterrupted power supply
attracts companies to set Solar > 100,000 69,000 0.9%
up business in Gujarat Biomass 17,000 1,900 1.6%

Source: EPD

20
WIND POWER IN GUJARAT

The State of Gujarat with its longest coast line in the


country and inland windy sites has a potential of
over 10,000 MW of wind power.

Wind Power Density in Gujarat, W/m2

Over the last 25 years more


than 65 sites have been
monitored for wind
speed and wind power
density, and over 50 sites have
been found feasible for
harnessing wind power

The Centre for Wind Energy Technology, an autonomous R&D institution under MNRE,
has identified and approved 40 sites for wind energy deployment with annual
average wind power density greater than 200 W/sq. m. at a 50 m height in Gujarat.

Source: TERI, GEDA

21
WIND POWER IN GUJARAT

The state, having embarked upon an ambition plan to tap


the large wind power potential, achieved commendable
results: total installed capacity of wind power grew from
271 MW in 2005-06 to 2,885 MW in 2011-12
at CAGR of 48%

Cumulative wind capacity in Gujarat, MW

3500
2,885 In November 2008 Gujarat won the Best
3000 CAGR
2500 48% Wind Power Developer State (Percentage
2000
1500 Increase) Award 2008 for achieving the
1000
271
maximum capacity additions during
500
0 the two consequent year FY07 and
Up to
2005-06
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 FY 08 alone the coast of Saurashtra

Wind Power Policy and GERC regulatory features

Eligible Unit: Any company/corporate body/association/body of individuals


Sale: Fixed tariff
Tariff: Rs. 3.56 / kWh for 25 years
Open Access / 3rd party sale: Allowed
Wheeling: At 66 kV: Normal charges as applicable to open access
Below 66 kV: Normal charges as applicable to open access + 10% of generated
fed to the grid
Land: Revenue waste land @ 1 hectare per Wind turbine generator on long term lease of
20 years to the developer at a lease rent of Rs. 10,000/ha/year
Source: GEDA, GERC

22
SOLAR POWER IN GUJARAT

Gujarat has one of the highest


solar generation potential
in India (solar radiation –
5.6-6.0 kWh/m2/day for 300 days

The area with the highest solar


potential is the district of
Kachchh with the highest direct
solar insolation 6.4 kWh/sq. m.
/ day throughout the year and
310 sunny days.
It covers a total area of 45,652 sq
km and located on the Tropic of
Cancer 23.26 N. The sites do not
require sun tracing.

Districts with the highest


GH/DN Irradiance, kWh/m2/year
GHI DNI
Jamnagar 2,216 2,697
Junagadh 2,212 2,661
Navsari 2,110 2,427
Patan 1,883 2,008

Source: TERI, GEDA

23
SOLAR POWER IN GUJARAT

654.81 MW of solar power capacities commissioned Gujarat has taken the lead over other states in renewable
energy initiatives, particularly in solar power generation.
by 64 developers in the state of Gujarat It is the first state in India to achieve RPO target

Asia’s first 500 MW Solar Power Park at Solar Power Policy


Charanka, district Patan 1st state policy in the country

Phase Developers Capacity,


(Nos.) MW
Phase I allotment 57 406.5
Phase II allotment 27 562.0
Total 84 968.5

Gujarat’s largest solar


power plants, as on May 2012 • 76% of developers who signed PPAs under the
District MW policy have commissioned their projects

Adani Enterprises Ltd. Kachchh 40 • 68% of allocated capacities have been


commissioned. They help
Sanland Real Estate Pvt. Ltd. Banaskantha 25
Tata Power Company Ltd. Jamnagar 25 • generating ~1,048 million kWh of electricity
annually
Alex Astral Power Pvt. Ltd. Patan 25
Roha Dyechem Pvt. Ltd. Patan 25 • avoiding 0.72 million tonnes of coal
annually
Sun Edison Energy India Pvt. Ltd. Patan 25
Kiran Energy Solar Power Pvt. Ltd. Patan 20 • reducing carbon emissions of 1.04 million
PLG Photovoltaic Patan 20 tonnes annually
Hiraco Renewable Energy Pvt. Ltd. Porbandar 20

Source: TERI, GEDA

24
SOLAR POWER IN GUJARAT

Geographical locations of solar power projects

Source: GETCO, GPCL

25
SOLAR POWER IN GUJARAT
Summary of solar Tariffs, Rs./kWh
(projects commissioned Jan 29, 2012 - March 31, 2015)

Period Jan 29, 2012 – Apr 1, 2013 – Apr 1, 2014 –


Mar 31, 2012 Mar 31, 2014 Mar 31, 2015

Megawatt-scale PV projects availing


accelerated depreciation

Levelized tariff for 25 years 9.28 8.63 8.03

First 12 years 9.98 9.13 8.35

Subsequent 13 years 7.00 7.00 7.00

Megawatt-scale PV projects not availing


accelerated depreciation

Levelized tariff for 25 years 10.37 9.64 8.97

First 12 years 11.25 10.30 9.42

Subsequent 13 years 7.50 7.50 7.50

Kilowatt-scale PV projects availing


accelerated depreciation

Levelized tariff for 25 years 11.14 10.36 9.63

Kilowatt-scale PV projects availing


accelerated depreciation

Levelized tariff for 25 years 12.44 11.57 10.76

Levelized Tariff for Solar Thermal Projects


With accelerated depreciation benefit 11.55 per kWh for 25 years
Without accelerated depreciation benefit 12.91 per kWh for 25 years

Source: GERC Order No. 1 of 2012: Determination of tariff for Procurement by the Distribution Licensees and others
from Solar Energy Projects; 27 Jan. 2012

26
BIOENERGY IN GUJARAT

Biomass potential in Gujarat The total biomass potential for


Gujarat is about 1,800 MW from crop
residue and about 140 MW from
forest residue

Crop Residue

Forest Residue
Bioenergy power generation

31.20 MW capacity biomass projects


Districts with the highest biomass potential, MW commissioned in Amreli, Junagadh
and Vadodara
Crop Forest
13.23 MW waste-to-energy power
Rajkot 228 Junagadh 18 generation projects
Jamnagar 203 The dangs 18
Bhavnagar 192 Sabarkantha 16
Bioenergy programmes
Junagadh 168 Valsad 15
Institutional biogas plants 9835 m3/day
Surendranagar 142 Dahod 12
capacity in various institutions
Amreli 137 Banaskantha 11 across the state

Source: TERI, GEDA

27
BIOENERGY IN GUJARAT

Tariff for Biomass based power projects to be commissioned in the state of Gujarat
during the control period (June 2010 – March 2013), Rs/kWh

Tariff Initial 10 years 11th year onwards

With accelerated depreciation 4.40 4.75


Without accelerated depreciation 4.45 4.80

Tariff for Bagasse based co-generation projects to be commissioned in the state of


Gujarat during the control period (June 2010 – May 2013), Rs/kWh

Tariff Initial 10 years 11th year onwards

With accelerated depreciation 4.55 4.90


Without accelerated depreciation 4.61 4.96

Source: GERC Order No. 5 of 2010: Determination of tariff for Procurement of Power by Distribution Licensees from
Biomass based Power Generator and Other Commercial Issues, 17 May 2010
GERC Order No. 4 of 2010:Determination of tariff for Procurement of Power by Distribution Licensees from Bagasse
based co-generation Power Plants and Other Commercial Issues, 31 May 2010

28
NEW ENERGY IN GUJARAT

The state endeavors to become the leader in terms of capacity and introduction
of new technologies in other renewable energy sources, like wind-solar
hybrid, WTE, OTEC, tidal energy, etc.

The total potential for wind solar Gujarat has the 1,600 km coast line
hybrid installations is about and good wind velocity offshore.
74,000 MW with the largest potential The total offshore wind
in Rajkot and Kachchh potential is about 4,000 MW

Districts with the highest hybrid potential, MW

Wind solar hybrid


installation, MW
Rajkot 23,182
Kachchh 16,151
Jamnagar 8,707
Surendranagar 6,625
Amreli 3,585
Bhavnagar 2,514
Sabarkantha 2,303
Banaskantha 2,044
Junagadh 2,038

Source: TERI, GEDA

29
NEW ENERGY IN GUJARAT

Gujarat geothermal potential is Tidal Potential in Gujarat, MW


concentrated in Khambhat

The following two sites were identified as potential sites


for setting up tidal wave based power project in the State:
• Gulf of Khambhat
• Gulf of Kachchh

Potential site Tidal energy


25 MW capacity of geothermal energy is currently
utilized for direct heat in Gujarat (Khambhat) potential, MW

Gulf of Kachchh 503


Gulf of Khambhat 6,303
Geothermal power pilot projects are being
planned in the state Total 6,806

Source: TERI, GEDA, World Geothermal Congress 2010

30
RENEWABLE ENERGY AND TECHNOLOGIES
SUCCESS STORIES IN GUJARAT

Source: TERI, GEDA


3.4 31
MODEL SOLAR CITY PROJECT - GANDHINAGAR

Government of India declared


Gandhinagar as a Model Solar City
setting example for Solar Cities
throughout India and other nations

Ministry of New and Renewable Energy Gandhinagar:


(MNRE) has launched a program on The Model Solar City project
“Development of Solar Cities” on January 24, 2011

The program assists Urban Local Governments in: 10 KW capacity wind-solar hybrid system
• Preparation of a master plan for increasing energy commissioned at Udyog Bhavan, Gandhinagar
efficiency and renewable energy supply in the city
• Setting-up institutional arrangements for the 19 solar rooftop systems of 10 KW each
implementation of the master plan. commissioned at government buildings
• Awareness generation and capacity building in Sachivalaya, Gandhinagar
activities.
1,240 KW SPV-based grid-connected
power generating rooftop systems at
The program aims at minimum 10% reduction in government buildings
projected demand of conventional energy at the
end of five years, which can be achieved through a
combination of energy efficiency measures and 240 solar rooftop systems of 1 KW each
enhancing supply from renewable energy sources commissioned at godowns

Rajkot and Surat have received 6 solar hybrid systems of 5 KW each


in-principle approval under this programme commissioned on government buildings

Source: MNRE, GEDA

32
5 MW GANDHINAGAR SOLAR ROOFTOP PROGRAMME

Government of Gujarat has launched the ambitious “Gandhinagar (Solar) Photovoltaic Rooftop
Programme” to encourage alternative clean energy sources like solar energy as well as social participation to
advance towards energy self-sustainability

To be implemented in
• Surat
• Rajkot
• Mehsana
• Bhavnagar
• Vadodara

Opportunity for rooftop owners

• This Programme provides an opportunity to property owners in Gandhinagar City for participation by offering
their rooftop or terrace for installation of Solar Photovoltaic System (SPV) for solar power
• The owner of property will be paid a “Green Incentive,” which shall be based on the units (kWh) of electricity
generated by the SPV system installed on the property

Role of project developer

• In this programme the developer is selected through a transparent competitive bidding process. The selected
developer will finance/Install/Own/Operate and maintain PV roof systems on owners roof tops
• The energy generated from this system will be sold to Distribution Company and Distribution Company will
pay duly approved tariff to developers
• Selected developers will execute the “Green Incentive and Lease Agreement” with individual property owners,
whose rooftop or terrace will be utilized for the SPV system

Source: GPCL

33
SOLAR PARK – FLAGSHIP PROJECT OF GUJARAT

Solar Park Concept Key Features


Area: approx. 2,000 Ha
Concentrated zone of development for Capacity Installed: 231 MW
solar power related activities No. of developers: 21
• Solar thermal/PV generation based
projects
• Solar components manufacturing/
assembling
• Research and development
• Capacity Building Solar Park Framework
Single window facility for solar power project Gujarat Solar Park, Charanka, Patan district
developers for providing common
GEDA Financial Institutes
infrastructure facilities like
• Land facilities
Processed Policy Project
• Water and drainage facilities applications directives funding

• Water treatment plant


Tariff Transmission GETCO
GERC/CERC
• Electrical network with 66 kV substation for determination GPCL infrastructure
Nodal Agency for Solar
auxiliary power Government Tariff Park development Water SSNNL
agencies determination availability
• 400x220x66 kV substation – Power
evacuation system Infrastructure
development
• Excellent Road (approach and internal charge
roads)
Shared with solar
• Green belt developer,
manufacture, R&D
• Helipad
setup
• Fully developed office space
• Residential accommodation and medical
assistance
Ensure implementation of the policies of
government of Gujarat for development of
the solar power sector

Source: GEDA, GPCL

34
GUJARAT SOLAR PARK – CII’S MOST INNOVATIVE ENVIRONMENT PROJECT AWARD

The only project in Power sector of India


that has won this prestigious award

Award merits:
• Given a discrete definition of “solar park”
in the Indian context
• World’s largest multi- developer and
multi-beneficiary solar park with targeted
500 MW Solar Power Projects at single
location

Social Commitment
• All-weather road connectivity
• Water to carry out cultivation activities
• Drinking water facility to Charanka village
• Ambulance service
• State-of-the-art training facility to provide
training to the villages in various fields

Source: GPCL, GEDA

35
INDIA’S FIRST CANAL-TOP SOLAR POWER PROJECT

Gujarat has initiated the world’s first


canal-based solar power project on Narmada 1 MW CANAL BASED SOLAR POWER PLANT
branch canal new Chandrasan
village of Mehsana district

Energy generated from this pilot project will be


directly fed into the local electricity grid and
utilized by nearby towns and villages

Technical details Innovative ideas

• Projected energy production: 1.5 million Cover the canal with Solar Panels to
units/year/MW
• Save Land @ 5 acre per MW
• Irradiation: 4.6 – 6.4 kWh/m2
• Minimize evaporation from canal (9 million liters
• Installed capacity: 1 MWp water saving per MW per year)
• Technology: polycrystalline solar modules, 280 Wp • Produce eco-friendly power
• Number of modules: 3616 • Shadowing effect of panel results in reduced
photosynthesis and less algae growth leading to
• Canal length used: 750 m
less maintenance cost
• Power evacuation system: 11 KV

Source: GSECL

36
BIOENERGY

0.95 MW biogas based power project at Sayaji Industries, Kathwada, 2009-10


Sayaji Industries, Kathwada is dealing with maize starch products. As a result of maize corn milling, grinding and
processing, about 14000 nm3 biogas is generated. Earlier biogas was being used in the coal fired boilers.
Under the MNRE programme of energy recovery from industrial & commercial wastes, the biogas based power
project was taken up. The project commissioned in April 2009 and has been running successfully at about 80%
PLF since commissioning

12000 nm3 biogas per day (1 MWeq.) maize starch industry liquid waste based biomethanation
plant by Gujarat Ambuja Exports Ltd., at Dalpur , Dist: Sabarkantha 2009-10

12000nm3 /day capacity biomethanation plant is completed & commissioned in December 2009 under MNRE
waste-to-energy (WTE) scheme. Plant has been running successfully since its commissioning date. Produced
biogas gas is used in 100% biogas engines in CPP.

0.833 MWeq.(10000 nm3/day) capacity maize starch industry liquid waste based biomethanation
plant at Sayaji Industries Ltd., Kathwada, 2010-11
Sayaji Industries, Kathwada increased its maize grinding capacity from 325 MT/day to 550 MT/day, the effluent also
increased with higher COD value of about 16000 to 20000 KGs COD. One 10000 nm3/day capacity biomethanation
plant has been installed & commissioned December 2011.The same is working with more than 80% efficiency.
The produced biogas is used in its CPP.

Industrial Waste based 4800 nm3/day capacity biomethanation project at


Anil Starch Products Ltd., Ahmedabad, 2000-01

An up flow anaerobic sludge blanket technology reactor (UASB) having total bio-gas generation capacity of
4800 nm3/day has been installed at M/s Anil Starch Products Ltd. under waste-to-energy project related interest
subsidy scheme of MNRE for WTE projects during financial year 2000-2001

2.0 MW capacity Bio-gas based Power Generation Project, Ankleshwar, 1997-98

This project was commissioned during FY98 under MNRE capital investment subsidy scheme on WTE projects by
Kanoria Chemicals Industries Ltd.

Source: GEDA

37
GUJARAT – PREFERRED DESTINATION FOR INVESTMENTS IN RENEWABLES

Renewable Energy Sector received a major boost at Vibrant Gujarat Summit in 2009 and 2011

Special Investment Packages announced for Solar and Wind Power Generation

2011
Sector MoU signed Capacity Amount Employment
(Nos) (MW) (USD billion) Generation
Potential (Nos)

Solar Equipment Manufacturing 36 2,440 4.5 27,500


Wind Power Generation 28 5,071 6.7 10,142
Tidal Power Generation 1 250 1.1 2,440
Electromagnetism 1
TOTAL 66 7,761 12.3 40,082

2009
• Highest number of MoUs signed in the renewable energy sector (32% of total number of MoUs)
• Total capital investment of USD 22 billion
• 70 MoUs signed for solar and wind power projects for 10,321 MWe.
• Expected employment generation is 45,000 over the next five years

Source: GEDA, iNDEXTb

38
LARGE RENEWABLE ENERGY PLAYERS IN GUJARAT

Solar power developers

TATA BP Solar India Ltd. JJ PV Solar Pvt. Limited Euro Solar Power Pvt. Ltd.

GreenBrilliance Energy Pvt. Ltd. Sonki Solar India Sunrise Technology


Solar PV manufacturers
Jain Energy Star Energy Systems Topsun Energy Limited

Ritika Systems Private Limited Vimal Electronics Waaree

Wind power developers

Wind equipment
manufacturers

39
RENEWABLE ENERGY AND TECHNOLOGIES
SCENARIO IN GUJARAT BY 2020 AND INVESTMENT OPPORTUNITIES

Source: TERI,

40
GEDA,GEDA
iNDEXTb
3.5
RENEWABLE ENERGY IN GUJARAT BY 2020

NAPCC* goal: 1% annual increase of


RE power to the national grid, from 5% in
2009-10 to 15% of the energy mix by 2020

Expected capacity addition in RE sector by 2017


will be 4,297 MW with highest contribution
from wind – 50% and solar – 44%

Total installed capacity from RE


ources by 2017 – 7,863 MW

Source / Installed 12th five year Plan period Capacity


Technology capacity (MW) additions
as on May 2012 FY13 FY14 FY15 FY16 FY17 12th Plan

Wind 2,885 326 377 456 498 508 2,165


SHP 6 2 3 4 3 3 15
BIO 20 35 45 55 60 44 239
Solar 655 209 331 331 441 560 1,872
WTE 0 2 2 0 2 6
Total 3,566 572 758 848 1,002 1,117 4,297

Source: Energy and Petrochemicals Department


* National Action Plan on Climate Change

41
INVESTMENT OPPORTUNITIES

Development of
distributed gas
based power combined
with non
conventional sources

Fund requirement
Non- Conventional power Tidal and geothermal Development of
projects under private sector projects first at a pilot wind-solar hybrid
scale, and then at a installations and
commercial scales biomass projects

Project Fund required


(USD billion) Development of large
scale solar parks and
Wind 2.65 canal-top
SHP 0.02 solar projects

Bio Mass 0.24


Solar 3.82
Offshore wind Development of solar
WTE 0.01
projects manufacturing
Total 6.74 development capacities

Development of
projects under solar
rooftop programme
(Bhavnagar, Surat,
Rajkot, Mehsana)

Source: Energy and Petrochemicals Department, Government of Gujarat

42
ADVANTAGE GUJARAT

Source: TERI, GEDA


4 43
GUJARAT – THE STATE WITH STRATEGIC LOCATION

44
GUJARAT – INDIA’S ECONOMIC POWERHOUSE

45
GUJARAT – ROBUST INFRASTRUCTURE

46
GUJARAT – STRONG URBAN, SOCIAL AND EDUCATIONAL INFRASTRUCTURE

47
GUJARAT – LAND OF INNOVATIVE HUMAN CAPITAL

48
GUJARAT – NEW PARADIGM FOR INDUSTRIAL GROWTH

The current phase – involving Integrated development of large areas like SIRs,
PCPIR and DMIC – is poised to transform the industrial scenario in the state

Integrated large area


developments

SEZs • Special Investment Regions


• Multi product (>100 sq. km.) and Industrial Areas
(50-100 sq. km.)
Level of Integration

• Chemical
• Textile • Delhi Mumbai Industrial Corridor
• Pharma
202 Industrial
• IT / ITeS • GIDC Industrial Estates
Estates
• Electronics • Petroleum, Chemicals and
• Engineering Petrochemicals Investment Region
• Biotech • Knowledge corridor
83 product
clusters • Gems & • Logistics parks
Jewellery • Theme towns

Phase I Phase II Phase III Phase IV

Phase of industrial development

49
GUJARAT - PROACTIVE GOVERNANCE

Source: Socio-Economic Review Gujarat, 2011-12, Department of Economic affairs, March 2009

50
OPPORTUNITIES TO INVEST IN GUJARAT

51
DOING BUSINESS IN GUJARAT

Source: TERI, GEDA

52
5
OVERALL FRAMEWORK FOR DOING BUSINESS

53
TAX FRAMEWORK

54
EXCHANGE CONTROL REGIME

55
FRAMEWORK FOR SETTING UP INDUSTRY IN GUJARAT

56
KEY GOVERNMENT AGENCIES

Source: TERI, GEDA


6 57
INDUSTRIAL PROMOTION FACILITATORS

58
KEY CONTACT PERSONS

Mr. Maheshwar Sahu, IAS Mr. D.J. Pandian, IAS


Principal Secretary (Industries & Mines) Principal Secretary (Energy & Petrochemicals)
Industries & Mines Department Energy & Petrochemicals Department
Phone: +91 79 23250703 Phone: +91 79 23250771
secimd@gujarat.gov.in secepd@gujarat.gov.in
www.imd-gujarat.gov.in www. guj-epd.gov.in

Mr. B.B. Swain, IAS Mr. Kamal Dayani, IAS


Vice Chairman & Managing Director Industries Commissioner
Gujarat Industrial Development Corporation Industries Commissionerate
Phone: +91 79 23250583, Fax: +91 79 23250587 Phone: +91 79 23252683, Fax : 91(79)232 52683
vcmd@gidcgujarat.org comind@gujarat.gov.in
www.gidc.gov.in www.ic.gujarat.gov.in

Mr. Mukesh Kumar, IAS Mr. A.K. Sharma, IAS


Managing Director Chief Executive Officer
Industrial Extension Bureau Gujarat Infrastructure Development Board
Phone: +91 79 232 50492, Fax: +91 79 232 50490 Phone: +91 79 23232701, Fax: +91 79 23222481
indextb@indextb.com ceo@gidb.org
www.indextb.com www.gidb.org

Dr. K.U. Mistry Mr. D.P. Joshi


Chairman Director
Gujarat Pollution Control Board Gujarat Energy Development Agency
Phone: +91 79 23232152, Fax: +91 79 23232156 Phone: +91 79 23257251
chairman-gpcb@gujarat.gov.in director@geda.org.in
www.gpcb.gov.in www. http://geda.gujarat.gov.in

59
National Partner Knowledge Partner Exhibition Partner

Relationship Partner Airline Partners

Head Office: Block No. 18, 2nd Floor, Udyog Bhavan, GH-4, Sector 11, Gandhinagar 382 010 Gujarat, INDIA
Phone: +91-79-23250492/93 Fax: +91-79-23250490
www.indextb.com, www.ic.gujarat.gov.in E-mail: indextb@indextb.com
Regional Office: A-6, State Emporia Building, Baba Kharak Singh Marg, New Delhi 110 001, INDIA
Telefax: 011-23747002, 23360049 E-mail: indextbnd@indextb.com

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