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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

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INDIA . USD billion FDI Confidence Index.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 .5% 9.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 15.87 350 CAGR CAGR power parity (PPP) 300 Exports Imports India 1.5 1 1.200 12% 7% 6% 6% 5% March 2012 USD.5 2 economies in the world (GDP growth rate – 8.52 Growth 50 Decline 0 Germany 1.3% 8. 200 400 600 800 1.0% 10% 30% 5.73 250 14% 14% 200 Brazil 1.6 Recorded the highest growth 150 rates in the mid-2000s 100 US 1.0% 11th largest importer in the world Construction 7% 9. billion Agriculture Industry Services 02 .000 1.6% activities Services 10.6% 9.0% Main Export Partners 0.PREFERRED INVESTMENT DESTINATION Trade Scenario.52 No Change One of the fastest growing 1990-91 1994-95 2000-01 2004-05 2010-11 Export Import 0 0.8% 8.0% 6. 2012 9th largest economy in the world by nominal GDP and A.6% in 2011) FDI .T. Kearney Survey 3rd largest by purchasing 400 China 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 . ADVANTAGE INDIA Land of abundant World's largest natural nat resources democracy with dem and a nd diverse 1.

GUJARAT .PREFERRED INVESTMENT DESTINATION IN INDIA 2 04 .

GUJARAT HAS BEEN RANKED 1ST AS PER THE “ECONOMIC FREEDOM RANKINGS FOR THE STATES OF INDIA.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 . 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 .

RENEWABLE ENERGY AND TECHNOLOGIES 3 06 .

RENEWABLE ENERGY AND TECHNOLOGIES GLOBAL SCENARIO India 3 3.1 07 .

GW. 2010 RE capacity..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. 2010-11 amounts to 312 GW 300 1. 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. 12th PwC Annual Global Power & Utilities Survey 08 . (quadrillion Btu) 2011 forecasts energy 500 consumption growth by 53% 400 between 2008 and 2035. United States • Renewable energy share 200 2 China (non-hydro) of global electricity 100 3 Germany production is 3. 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.

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.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. 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. 12th PwC Annual Global Power & Utilities Survey 09 . energy from clean and sustainable Forces driving development of sources. DRIVERS OF GLOBAL RE MARKET DEVELOPMENT • Energy Security..

RENEWABLE ENERGY AND TECHNOLOGIES INDIAN SCENARIO 10 3.2 .

503 14% . 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. MNRE 11 . 66% Solar Power (SPV) • India has an installed renewable capacity of 24.990 Wind Power . • By 2050 69% of energy generation will be from renewable energy (Greenpeace vision) Source: MoP.3% 2% 38. 20% 5% 9% Thermal Small Hydro Power Nuclear Biomass Power Hydro 24.603 70% . MW Renewable capacity.780 .500 MW (excluding large hydro) as on March 2012 • Renewable energy is 12% in total capacity and 4% of energy generation. MW 4. 12% Bagasse Cogeneration RES Waste to Power 131. 2% 0.

000 • Abundance of biomass • Availability of quality feedstock 120.for rain-fed rivers.can be a residues and residues) challenge. MW • Regulatory support renewable options 140.000 • 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 .000 plantation) • Viable option for base load single fuel/ bagasse Bagasse based • Relatively short time to based plants 80.requires Waste generated in India adaptability 20.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.peaks energy source in India in monsoon energy potential • India possesses significant • Higher capital cost per untapped potential unit of generation. INDIA’ S RENEWABLE ENERGY OPTIONS Grid Interactive Strengths Challenges India possesses a large.000 40.000 Bio-Power (Agro (agricultural and forestry round the year.000 Energy from • Large amount of waste • Foreign technology . 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. particularly for 100.000 commissioning generation • Regulatory support 60. untapped renewable • Most established renewable • Seasonality.

RPOs be set at 5% of total grid purchase. • A robust regulatory framework has been put in place to realize India’s wind. hydel. 13 . • 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. and be increased by 1% each year for 10 years. solar and biomass potential. POLICIES AND REGULATIONS • Renewable power is expected to constitute a significant part of India’s incremental capacity addition.

POLICIES AND REGULATIONS – NATIONAL SOLAR MISSION National Solar Mission A.1 to • National Tariff Policy amended (January 2011) for 2 MW. etc. 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. • Other channels to supply & maintain Phase 2: 2013-17 products Market based on FIT and Grid: 4-10.100-150 MW solar hybrid plant solar power Off-grid: 2. 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.50-100 MW CSP with storage . Support projects • Centre of excellence and incubation • Demonstration and pilot projects Phase 3: 2017-22 . mandatory Solar RPOs for all power utilities B.100 MW applications.000 MW . Target (10 MW of up to 100kW .BIPV projects 14 .000 MW .000 MW C. refinance by IREDA. 2000 MW off-Grid project by 2022 Phase 1: 2010-13 • Off grid solar and decentralized solar Policy framework to Grid: 1. and 90 MW of 0.100 MW parabolic trough based Grid competitive Grid: 20. attract and scale-up Off-grid: 200 MW • Capital and interest subsidy.000 MW mandatory solar RPO Off-grid: 1.

Gujarat. to increase their project returns • Helped to push the RE industry by making projects more financially and RoE attractive Tax Incentives . 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. introduced by most states • Financial as well as economic costs and Preferential Tariffs except J&K. Uttarakhand etc renewable projects has come down 15 . Madhya • The number of clearances required for Policies Pradesh. • 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. 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. Jharkhand. 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. Bihar. SUPPORT MECHANISM FOR RENEWABLE POWER IN INDIA Policy Instrument Indian Experience Positives for Developer Feed in Tariffs/ • Being used for all active RE technologies. Punjab. • Most wind installations in India have been developed under AD. Himachal Pradesh.

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 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. • 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 . both mechanisms operate independent of each other. RE power cost) .Sells its power to a local distribution licensee at a cost at or below the Average Power Purchase Cost (excl.

33% of the total Rajasthan 6% power consumption in 2007-08 Himachal Pradesh 11.25% * Excludes large hydro projects and nuclear power 17 .3% States have to source from renewable sources (failing which.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. RENEWABLE PURCHASE OBLIGATIONS RPO Targets* (2012) • The Government has set a target of 10% energy generation from renewable sources* by 2012 • In 2007. the total RPO Odisha 5% commitment by the 12 States that have implemented it constitutes ~5. a penalty may be imposed on Madhya Pradesh 10% them) Maharashtra 7% • On a pan-Indian basis.8% consumer through higher power tariffs Uttarakhand 4.5% • RPOs mandate the minimum quantum of Karnataka 7% &10% electricity which distribution utilities in the Kerala 3. 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 1.525% Chhattisgarh 5.

7 billion 18 .significantly fewer environmental or CERC clearances required compared to conventional power projects • Easier to achieve financial closure vis-à-vis larger projects. regulatory regimes. particularly for small hydro and wind projects • Ability to boost returns through emissions trading options • Regulatory support.exposure to multiple markets. 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.6 billion • For off grid renewable energy programs – USD 2. 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. 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. 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. including preferential tariffs • Fiscal incentives (subsidies.

3 19 .RENEWABLE ENERGY AND TECHNOLOGIES GUJARAT SCENARIO 3.

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

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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

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/ day throughout the year and 310 sunny days.697 Junagadh 2.6-6. It covers a total area of 45.216 2.26 N.4 kWh/sq. kWh/m2/year GHI DNI Jamnagar 2. SOLAR POWER IN GUJARAT Gujarat has one of the highest solar generation potential in India (solar radiation – 5.652 sq km and located on the Tropic of Cancer 23.427 Patan 1.110 2.883 2. GEDA 23 . Districts with the highest GH/DN Irradiance.008 Source: TERI.212 2. m. The sites do not require sun tracing.661 Navsari 2.0 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.

Jamnagar 25 • generating ~1. Patan 20 • reducing carbon emissions of 1. GEDA 24 .81 MW of solar power capacities commissioned Gujarat has taken the lead over other states in renewable energy initiatives.72 million tonnes of coal annually Sun Edison Energy India Pvt. Porbandar 20 Source: TERI. Patan 25 • avoiding 0. SOLAR POWER IN GUJARAT 654. Banaskantha 25 Tata Power Company Ltd. They help Sanland Real Estate Pvt. Patan 25 Kiran Energy Solar Power Pvt. Kachchh 40 • 68% of allocated capacities have been commissioned.) MW Phase I allotment 57 406. district Patan 1st state policy in the country Phase Developers Capacity. 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. Ltd. as on May 2012 • 76% of developers who signed PPAs under the District MW policy have commissioned their projects Adani Enterprises Ltd.5 Gujarat’s largest solar power plants.048 million kWh of electricity annually Alex Astral Power Pvt. Ltd. Ltd. Ltd. particularly in solar power generation.5 Phase II allotment 27 562.0 Total 84 968. Ltd. Patan 25 Roha Dyechem Pvt. Ltd.04 million PLG Photovoltaic Patan 20 tonnes annually Hiraco Renewable Energy Pvt. (Nos.

GPCL 25 . SOLAR POWER IN GUJARAT Geographical locations of solar power projects Source: GETCO.

28 8. 2012 Mar 31.14 10. 2015 Megawatt-scale PV projects availing accelerated depreciation Levelized tariff for 25 years 9.44 11.00 7.03 First 12 years 9. 2015) Period Jan 29. SOLAR POWER IN GUJARAT Summary of solar Tariffs.25 10.36 9.57 10.50 7.97 First 12 years 11.50 Kilowatt-scale PV projects availing accelerated depreciation Levelized tariff for 25 years 11.00 7.55 per kWh for 25 years Without accelerated depreciation benefit 12. 2012 – Apr 1.98 9.63 Kilowatt-scale PV projects availing accelerated depreciation Levelized tariff for 25 years 12./kWh (projects commissioned Jan 29.76 Levelized Tariff for Solar Thermal Projects With accelerated depreciation benefit 11.50 7.42 Subsequent 13 years 7. 2014 Mar 31. Rs. 2012 26 .63 8.13 8.30 9.March 31.64 8. 2012 .91 per kWh for 25 years Source: GERC Order No.37 9.00 Megawatt-scale PV projects not availing accelerated depreciation Levelized tariff for 25 years 10. 2013 – Apr 1. 2014 – Mar 31. 27 Jan.35 Subsequent 13 years 7. 1 of 2012: Determination of tariff for Procurement by the Distribution Licensees and others from Solar Energy Projects.

MW commissioned in Amreli. GEDA 27 .800 MW from crop residue and about 140 MW from forest residue Crop Residue Forest Residue Bioenergy power generation 31. BIOENERGY IN GUJARAT Biomass potential in Gujarat The total biomass potential for Gujarat is about 1.23 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. Junagadh and Vadodara Crop Forest 13.20 MW capacity biomass projects Districts with the highest biomass potential.

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).45 4. 4 of 2010:Determination of tariff for Procurement of Power by Distribution Licensees from Bagasse based co-generation Power Plants and Other Commercial Issues.55 4. 31 May 2010 28 . Rs/kWh Tariff Initial 10 years 11th year onwards With accelerated depreciation 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 4.40 4. 5 of 2010: Determination of tariff for Procurement of Power by Distribution Licensees from Biomass based Power Generator and Other Commercial Issues.96 Source: GERC Order No.61 4.75 Without accelerated depreciation 4. 17 May 2010 GERC Order No.90 Without accelerated depreciation 4.

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.182 Kachchh 16. etc.151 Jamnagar 8. GEDA 29 .000 MW Districts with the highest hybrid potential.625 Amreli 3.585 Bhavnagar 2. WTE. MW Rajkot 23.000 MW with the largest potential The total offshore wind in Rajkot and Kachchh potential is about 4. MW Wind solar hybrid installation.707 Surendranagar 6.600 km coast line hybrid installations is about and good wind velocity offshore.303 Banaskantha 2.514 Sabarkantha 2.038 Source: TERI.044 Junagadh 2. The total potential for wind solar Gujarat has the 1. OTEC. 74. like wind-solar hybrid. tidal energy.

806 Source: TERI. MW Gulf of Kachchh 503 Gulf of Khambhat 6. World Geothermal Congress 2010 30 . GEDA. 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.303 Geothermal power pilot projects are being planned in the state Total 6. NEW ENERGY IN GUJARAT Gujarat geothermal potential is Tidal Potential in Gujarat.

RENEWABLE ENERGY AND TECHNOLOGIES SUCCESS STORIES IN GUJARAT Source: TERI.4 31 . GEDA 3.

GEDA 32 . 1.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. 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. Gandhinagar activities. MODEL SOLAR CITY PROJECT . 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.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. commissioned at government buildings • Awareness generation and capacity building in Sachivalaya.

whose rooftop or terrace will be utilized for the SPV system Source: GPCL 33 . 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.

SOLAR PARK – FLAGSHIP PROJECT OF GUJARAT Solar Park Concept Key Features Area: approx. 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. manufacture. 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. Charanka. 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.000 Ha Concentrated zone of development for Capacity Installed: 231 MW solar power related activities No. GPCL 34 . 2.

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.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. GEDA 35 .

4 kWh/m2 • Minimize evaporation from canal (9 million liters • Installed capacity: 1 MWp water saving per MW per year) • Technology: polycrystalline solar modules. 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. 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 .6 – 6.

Under the MNRE programme of energy recovery from industrial & commercial wastes.The same is working with more than 80% efficiency.95 MW biogas based power project at Sayaji Industries. Dist: Sabarkantha 2009-10 12000nm3 /day capacity biomethanation plant is completed & commissioned in December 2009 under MNRE waste-to-energy (WTE) scheme.833 MWeq.. Ankleshwar. 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.. 2009-10 Sayaji Industries. Industrial Waste based 4800 nm3/day capacity biomethanation project at Anil Starch Products Ltd. 0.. As a result of maize corn milling. at Dalpur . BIOENERGY 0.(10000 nm3/day) capacity maize starch industry liquid waste based biomethanation plant at Sayaji Industries Ltd. Plant has been running successfully since its commissioning date. Kathwada. One 10000 nm3/day capacity biomethanation plant has been installed & commissioned December 2011. grinding and processing. the biogas based power project was taken up. Ahmedabad. Kathwada increased its maize grinding capacity from 325 MT/day to 550 MT/day. The produced biogas is used in its CPP. Source: GEDA 37 . the effluent also increased with higher COD value of about 16000 to 20000 KGs COD. 2010-11 Sayaji Industries. Produced biogas gas is used in 100% biogas engines in CPP.0 MW capacity Bio-gas based Power Generation Project. about 14000 nm3 biogas is generated. Kathwada is dealing with maize starch products.) maize starch industry liquid waste based biomethanation plant by Gujarat Ambuja Exports Ltd. 1997-98 This project was commissioned during FY98 under MNRE capital investment subsidy scheme on WTE projects by Kanoria Chemicals Industries Ltd. under waste-to-energy project related interest subsidy scheme of MNRE for WTE projects during financial year 2000-2001 2. The project commissioned in April 2009 and has been running successfully at about 80% PLF since commissioning 12000 nm3 biogas per day (1 MWeq. Kathwada. Earlier biogas was being used in the coal fired boilers.

5 27.761 12.500 Wind Power Generation 28 5.440 Electromagnetism 1 TOTAL 66 7.000 over the next five years Source: GEDA. • Expected employment generation is 45. iNDEXTb 38 .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 10.142 Tidal Power Generation 1 250 1.7 10.071 6.3 40.321 MWe.1 2. 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.

JJ PV Solar Pvt. 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 . Ltd. GreenBrilliance Energy Pvt. Ltd. LARGE RENEWABLE ENERGY PLAYERS IN GUJARAT Solar power developers TATA BP Solar India Ltd. Limited Euro Solar Power Pvt.

5 .GEDA iNDEXTb 3. RENEWABLE ENERGY AND TECHNOLOGIES SCENARIO IN GUJARAT BY 2020 AND INVESTMENT OPPORTUNITIES Source: TERI. 40 GEDA.

566 572 758 848 1. 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 Source: Energy and Petrochemicals Department * National Action Plan on Climate Change 41 .165 SHP 6 2 3 4 3 3 15 BIO 20 35 45 55 60 44 239 Solar 655 209 331 331 441 560 1.002 1.863 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 2.117 4.885 326 377 456 498 508 2. RENEWABLE ENERGY IN GUJARAT BY 2020 NAPCC* goal: 1% annual increase of RE power to the national grid.297 MW with highest contribution from wind – 50% and solar – 44% Total installed capacity from RE ources by 2017 – 7.872 WTE 0 2 2 0 2 6 Total 3.

Mehsana) Source: Energy and Petrochemicals Department.65 canal-top SHP 0.01 projects manufacturing Total 6. Government of Gujarat 42 .82 Offshore wind Development of solar WTE 0. Rajkot. and then at a installations and commercial scales biomass projects Project Fund required (USD billion) Development of large scale solar parks and Wind 2.02 solar projects Bio Mass 0.24 Solar 3.Conventional power Tidal and geothermal Development of projects under private sector projects first at a pilot wind-solar hybrid scale. INVESTMENT OPPORTUNITIES Development of distributed gas based power combined with non conventional sources Fund requirement Non. Surat.74 development capacities Development of projects under solar rooftop programme (Bhavnagar.

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 .

) and Industrial Areas (50-100 sq. 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.) Level of Integration • Chemical • Textile • Delhi Mumbai Industrial Corridor • Pharma 202 Industrial • IT / ITeS • GIDC Industrial Estates Estates • Electronics • Petroleum. km. 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 – NEW PARADIGM FOR INDUSTRIAL GROWTH The current phase – involving Integrated development of large areas like SIRs.

PROACTIVE GOVERNANCE Source: Socio-Economic Review Gujarat. 2011-12. March 2009 50 . GUJARAT . Department of Economic affairs.

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 .

A. IAS Mr.in director@geda.J.org Dr. Fax: +91 79 23222481 indextb@indextb. guj-epd. Pandian. D.gov. 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.P.imd-gujarat.gov.gujarat. KEY CONTACT PERSONS Mr.org. B. Kamal Dayani.gov.org www.gov. Fax : 91(79)232 52683 vcmd@gidcgujarat.U.gov.in Mr. IAS Mr. Sharma.in www. K. http://geda.B.gpcb. IAS Mr. D.com www. Mukesh Kumar.in Mr.gidb. IAS Vice Chairman & Managing Director Industries Commissioner Gujarat Industrial Development Corporation Industries Commissionerate Phone: +91 79 23250583.gov.ic. Joshi Chairman Director Gujarat Pollution Control Board Gujarat Energy Development Agency Phone: +91 79 23232152.gov. Maheshwar Sahu.org comind@gujarat.in 59 .in secepd@gujarat.in www.com ceo@gidb. Mistry Mr. Fax: +91 79 23250587 Phone: +91 79 23252683.gov.gujarat. Swain.K.in www.in www. Fax: +91 79 232 50490 Phone: +91 79 23232701.gidc.gov.in www. Fax: +91 79 23232156 Phone: +91 79 23257251 chairman-gpcb@gujarat.indextb.gov.in www. IAS Managing Director Chief Executive Officer Industrial Extension Bureau Gujarat Infrastructure Development Board Phone: +91 79 232 50492.

com . GH-4.indextb. www. log on to www. Sector 11.ic.com For more details and online registration. Udyog Bhavan. Baba Kharak Singh Marg.in E-mail: indextb@indextb. 23360049 E-mail: indextbnd@indextb. 18. INDIA Telefax: 011-23747002. INDIA Phone: +91-79-23250492/93 Fax: +91-79-23250490 www.vibrantgujarat. State Emporia Building. National Partner Knowledge Partner Exhibition Partner Relationship Partner Airline Partners Head Office: Block No.gujarat.com Regional Office: A-6. 2nd Floor.gov. New Delhi 110 001.com. Gandhinagar 382 010 Gujarat.