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February 2022
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Table of Contents
Executive Summary 3
Advantage India 4
Strategies Adopted 13
Growth Drivers 16
Opportunities 22
Appendix 28
2
Executive summary
Ambitious targets
• In November 2021, at the COP-26
Summit in Glasgow, Prime Minister,
Immense growth potential Mr. Narendra Modi made a promise
to increase India’s renewable
• India has low conventional energy
energy generation capacity to 500
resources compared to its required
GW, and meet 50% of India’s
energy needs driven by a huge
energy needs through renewable
population and a rapidly increasing
means by the year 2030.
economy. However, India can harness
• The renewable energy capacity
the huge potential of solar energy as it
addition stood at 8.2 GW for the first
receives sunshine for most of the year.
eight months of FY22 against 3.4
It also has vast potential in the hydro
GW for the first eight months of
power sector which is being explored
FY21.
across states, especially in the
northeast.
• As of January 2022, India’s installed
renewable energy capacity stood at
Increasing investment
152.36 GW (including hydro power), • The non-conventional energy space in
representing 38.56% of the overall India has become highly attractive for
installed power capacity and providing a investors and received FDI inflow of
great opportunity for the expansion of US$ 11.21 billion between April 2000-
green data centres. December 2021.
• India is the only country among the G20 • More than Rs. 5.2 lakh crore (US$ 70
countries who is on track to achieve its billion) has been invested in India’s
targets under the Paris Agreement. renewable energy sector since 2014.
• ICRA expects renewable energy • India ranked third on the EY
capacity addition of 12.5 GW in FY22 Renewable Energy Country Attractive
and 16 GW in FY23. Index 2021.
Source: EY Recai (November 2018) , Central Electricity Authority, MNRE, DPIIT, Livemint, IWTMA
3
Advantage India
4
Advantage India
5
Market Overview and Trends
6
Renewable Energy Sources
Renewable Energy
Sources (RES)
Other forms of
Hydro Energy
renewable energy
7
Generation capacity has increased at a healthy pace… (1/2)
Installed Renewable Energy* Capacity (GW) - excluding Hydro Installed Renewable Capacity Breakup (GW) – January 2022
▪ The International Energy Agency’s World Energy Outlook projects a growth of renewable energy supply to 4,550 GW in 2040 on a global basis.
▪ Installed renewable power-generation capacity has increased at a fast pace over the past few years, posting a CAGR of 15.51% between FY16
and FY21. India had 94.43 GW of renewable energy capacity in FY21.
▪ As of January 2022, India’s installed renewable energy capacity stood at 152.36 GW.
▪ As of January 2022, 38.56% of the total power installed capacity is from non-fossil based sources, which is in line with reaching the target of 40%
by the end of 2022.
▪ The country plans to reach 450 GW of installed renewable energy capacity by 2030, with 280 GW (over 60%) expected from solar power.
▪ The ambitious target of 450 GW will provide investment opportunities worth US$ 221 billion by 2030.
Notes: GW- Gigawatt, * - Large Hydro power projects not included as they are not included in renewable energy targets of GOI.
Source: Central Electricity Authority (CEA), International Renewable Energy Agency (IRENA), MNRE
8
Generation capacity has increased at a healthy pace…(2/2)
▪ Power generation from renewable energy sources stood at 13.15 Electricity Generation from RES* (billion units)
billion units (BU) in January 2022, up from 11.51 BU in January 2021.
147.25
140
power capacity.
141.94
138.32
▪ ICRA expects renewable energy capacity addition of 12.5 GW in FY22
126.76
120
and 16 GW in FY23.
101.84
▪ In FY22, till December 2021, India has added 7.4GW of solar power
80
capacity, up 335% from 1.73 GW in the previous year.
81.51
▪ Off-grid renewable power capacity has also increased. 60
65.78
▪ From April 2015 till February 2021, India has added 117.9 GW of
power generation capacity, which includes 64.5 GW from conventional 40
sources and 53.4 GW from renewable sources.
20
▪ In July 2021, the Ministry of New and Renewable Energy (MNRE)
gave the go-ahead to NTPC Renewable Energy Ltd., a 100%
subsidiary of NTPC, to build a 4,750 MW renewable energy park at 0
FY16 FY17 FY18 FY19 FY20 FY21 FY22 (till
the Rann of Kutch in Khavada, Gujarat. This will be India's largest January
solar park to be developed by the country's leading power producer. 2022)
Note: RES - Renewable Energy Source, *Large Hydro power projects not included, SPV - Solar Photovoltaic System, MWeq - Megawatt Equivalent.
Source: CEA, Make in India, MNRE, Mercom India, News Articles
9
Solar power generation growth likely to outweigh other sources by
2022
▪ Due to its favourable location in the solar belt (400 S to 400 N), India Top 10 state-wise solar installations in India (January 2022)
is one of the best recipients of solar energy with abundant availability.
▪ Solar power installed capacity has increased by more than 18 times
Rank State Capacity (MW)
from 2.63 GW in March 2014 to 49.3 GW in at the end of 2021.
▪ India stands 5th among countries with a maximum installed capacity of
1 Rajasthan 10,506.95
solar rooftop installations. Gujarat, Maharashtra, Rajasthan and Tamil
Nadu account for 53.6% of the solar rooftop installations in India, as of
January 2021. 2 Karnataka 7,534.92
10
Growth in hydro power
▪ India has overtaken Japan, becoming the nation with the fifth-largest Installed Hydro Capacity (GW)
hydropower production capacity in the world with a total installed base at
over 51.35 GW, and is only behind Canada, US, Brazil and China
according to the International Hydropower Association (IHA). 50.0
▪ India has the hydro power potential of around 145 GW, of which over 50
45.0 46.21 46.51
GW is already being utilised. 45.29 45.40 45.70
▪ Hydro power projects in India are classified into conventional hydro 40.0
projects and small hydro electric projects. Small hydro projects are
included in the government’s renewable energy sources (RES) targets. 35.0
▪ Installed capacity from large hydro projects in India increased from 35.9
GW in March 2008 to 46.5 GW as of January 2022, while capacity from 30.0
small hydro plants increased four-fold to 4.8 GW in the same period.
25.0
▪ A new hydro power policy for 2018-28 has been drafted for the growth of
hydro projects in the country. 20.0
▪ In February 2022, Creduce Technologies-HCPL JV announced winning
the bid for India’s single largest hydro power carbon credits project with 15.0
Satluj Jal Vidyut Nigam, which will create more than 80 million carbon
credits. 10.0
▪ In February 2022, Nepal and India agreed to form a Joint Hydro 4.49 4.59 4.68 4.79 4.82
5.0
Development Committee to explore the possibility of viable hydropower
projects.
0.0
▪ The Nathpa Jhakri Hydro Electricity Station of Satluj Jal Vidyut Nigam 2017 2018 2019 2020 2021*
(SJVN) set a new monthly power generation record, increasing from
1,213.10 million units to 1,216.56 million units on July 31, 2021. Hydro Small Hydro Projects
11
Strategies Adopted
12
Strategies adopted (1/2)
1 2 3
13
Strategies adopted (2/2)
4 5 7
DRAFT ELECTRICITY RULES, 2021 DECENTRALISED SOLAR POWER SHIFT TOWARDS NON-
CONVENTIONAL ENERGY
▪ In August 2021, the Indian government proposed ▪ Selco Solar Pvt Ltd started installing
new rules for the purchase and consumption of solar panels in slums which were not ▪ India’s leading conventional energy
green energy. connected to the grid as a pilot project producers are shifting towards non-
in 2008 and has since expanded into conventional energy resources to
▪ The rules were part of the government’s measures achieve their sustainability goals
other states as well. They have also
to encourage large-scale energy consumers, and contribute towards generating
used standardized financial packages
including industries, to leverage renewable energy clean energy.
to get the slum people to move away
sources for regular operations.
from kerosene to solar power. ▪ As of January 2022, 38.56% of the
▪ Uniform Renewable Purchase Obligations (RPO) total power installed capacity in
▪ Off-grid solar power is growing at a fast
have been introduced, requiring all electricity India is from non-fossil based
pace in India, with sales of 329,000 off-
distribution licensees to purchase or produce a sources
grid solar products in the first half of
specified minimum quantity of their total ▪ 975.60 MW of renewable energy
2021.
requirements from renewable energy sources. capacity was added in January
▪ The rules mandate that the electricity generated is 2022.
to be used for the plant’s own requirements and not
be diverted to the electricity grid. The new rules
also emphasise on the use of hydrogen energy.
Source: CEA, Company website, Livemint, Mercom, GOGLA, News Articles, KPMG
14
Growth Drivers
15
Renewable energy growth drivers
Government commitments
▪ Prime Minister Mr. Narendra Modi initially set the target of installing 175 GW of renewable energy capacity by 2030, but has now increased
it to 450 GW.
▪ In October 2021, the Ministry of Power announced a new set of rules aimed at reducing financial stress for stakeholders and safeguarding
timely cost recovery in electricity generation.
▪ In November 2021, the government announced future plans to increase the funding under the PLI scheme for domestic solar cells and
module manufacturing to RS. 24,000 crore (US$ 3.17 billion) from the existing Rs. 4,500 crore (US$ 594.68 million) to make India an
exporting nation.
Investments
▪ Investments in the renewable energy sector stood at Rs. 45,000 crore (US$ 5.99 billion) in FY21 and Rs. 46,000 crore (US$ 6.13 billion) in
FY22 (until July 2021).
▪ In 2022, India's renewable energy sector is expected to boom with a likely investment of US$ 15 billion this year, as the government focuses
on electric vehicles, green hydrogen, and manufacturing of solar equipment.
▪ The government has spent US$ 4.63 billion on hydroelectric projects to provide electricity to villages in Jammu and Kashmir from 2018-21.
16
Government policies
17
Union Budget 2022-23
18
Increasing investments, FDI inflows and M&As
▪ India’s liberal foreign investment policy permits 100% FDI in the renewable energy New Investments in Clean Energy in India
sector. (US$ Billion)
▪ In February 2022, Husk Power Systems, a renewable energy company working
towards rural electrification, secured a US$ 4.2 million loan from the Indian
12
Renewable Energy Development Agency (IREDA).
▪ In February 2022, Virescent Renewable Energy Trust (VRET), a renewable energy
infrastructure investment trust, raised US$ 87 billion through a domestic bond 10.8
10
issuance.
▪ In December 2021, India's largest energy provider, Tata Power, was awarded a 9.3
contract by the Maharashtra State Electricity Distribution Company Limited 8
(MSEDCL) to set up a 300 MW wind-solar hybrid power plant.
▪ In October 2021, the UAE announced investment of US$ 75 billion in India and
6
collaborate on clean energy projects. 6.2
▪ In October 2021, Adani Green Energy acquired SB Energy India for Rs. 26,000
crore (US$ 3.5 billion), making it India’s biggest renewable sector M&A deal. 4
▪ In August 2021, Copenhagen Infrastructure Partners (CIP) signed an investment
agreement with Amp Energy India Private Limited, to facilitate joint equity
investments of more than US$ 200 million across Indian renewable energy 2
projects.
▪ In July 2021, Mitsui & Co. announced an investment of Rs. 30 crore (US$ 4.1 0
million) in Punjab Renewable Energy Systems Pvt. Ltd. (PRESPL), India’s biomass 2018 2019 2020
supply chain management company.
▪ In July 2021, GPSC, a unit of Thailand’s state-owned electricity firm PTT, acquired
41.6% in India’s Avaada Energy for TH฿ 14.8 billion (US$ 453.29 million).
19
Increasing FDI inflows
Foreign Collaborator Country Indian Company FDI Equity Inflow (US$ mn)
Asian Development Bank Philippines Renew Power Ventures Pvt. Ltd. 44.69
AIRRO Singapore Pte Ltd. Singapore Diligent Power Pvt. Ltd. 41.07
OSTRO Renewal Power Limited Mauritius OSTRO Energy Pvt Ltd. 32.21
AREVA Solar Inc. U.S.A AREVA Solar India Pvt Ltd. 31.53
20
Opportunities
21
Huge untapped potential
▪ India is estimated to have renewable energy potential of 900 GW from Renewable Energy Potential in India
commercially exploitable sources - Solar energy: 750 GW; Wind
power1: 102 GW; Bio-energy: 25 GW; and Small Hydro: 20 GW.
Notes: GW - Gigawatt, 1Wind Power potential is at 80 metres above ground level, MW-megawatt
Source: Ministry of New and Renewable Energy (MNRE), Central Electricity Authority (CEA), IIT Chennai Study
22
Rising power demand
▪ India’s ambitious renewables energy goals are transforming its power Peak Power Demand in India (GW)
sector. Rising population and widespread electrification in rural homes
is fuelling the demand for energy to power homes, businesses and 800.00
communities.
690.0
to grow to reach 817 GW by 2030.
600.00
▪ The peak power demand of the country reached 183.80 GW in FY20.
▪ Solar power and wind generation recorded an all-time high of 43.1 GW 400.00
on 27 July 2021.
295.0
consumption increased by 12% in July 2021 to 125.51 billion units
(BU) and recovered to pre-pandemic levels, owing to easing of 200.00
COVID-19-induced restrictions and delayed monsoon.
164.1
164.1
159.5
153.4
▪ India has an electricity-GDP elasticity ratio of 0.8. Thus, 7% growth in 100.00
23
Move towards renewable sources
▪ It has been estimated that renewables will comprise 49% of India’s power RES as Percentage of Total Installed Capacity (%)
generation by 2040.
▪ Over the last few years there has been an increase in percentage
contribution of renewable energy to total installed capacity. In 2013-14, 45.00%
the contribution was 12.92%, which increased to 38.56% as of January
2022. 40.00% 38.27%
▪ Replacing coal plants with renewable sources is expected to save India
35.00%
Rs. 54,000 crore (US$ 8.4 billion) annually due to reduced power costs.
▪ About 5,000 compressed bio-gas plants will be set up across India by 30.00%
2023. 24.71%
▪ According to the analytics firm British Business Energy, India ranked 3rd 25.00% 23.51%
21.80%
globally in terms of its renewable energy investments and plans in 2020. 20.06%
20.00% 17.52%
▪ In June 2021, IKEA announced to launch programmes to help suppliers
in India transit to 100% renewable power. The company has ~50 14.18%
15.00%
suppliers in the country.
▪ In July 2021, National Thermal Power Corporation Renewable Energy 10.00%
Ltd. (NTPC REL), NTPC's fully owned subsidiary, sent out a tender to
5.00%
domestic manufacturers to build India's first green hydrogen fueling
station in Leh, Ladakh. 0.00%
▪ In October 2021, Reliance New Energy Solar Ltd. (RNESL), collaborated FY16 FY17 FY18 FY19 FY20 FY21 FY22
(Until
with Stiesdal A/S (Stiesdal)—a Denmark-based firm—to manufacture October
hydrogen electrolysers and contribute to achieve India’s green energy 2021)
transition mission.
Source: Ministry of New and Renewable Energy (MNRE), Central Electricity Authority (CEA), Greenpeace India, Minister of Petroleum and Natural Gas
24
Key Industry Contacts
25
Key industry contacts
India Habitat Centre Complex, Core- 4A, East Court, 1st Floor,
Lodi Road, New Delhi- 110 003
The Indian Renewable Energy Development
Tel: 91 11 24682214/ 21
Agency (IREDA)
E-mail: cmd@ireda.gov.in
Web site: www.ireda.gov.in
26
Appendix
27
Glossary
▪ US$: US Dollar
▪ Wherever applicable, numbers have been rounded off to the nearest whole number
28
Exchange rates
Year Rs. Equivalent of one US$ Year Rs. Equivalent of one US$
2004-05 44.95 2005 44.11
2005-06 44.28 2006 45.33
2006-07 45.29 2007 41.29
2007-08 40.24 2008 43.42
2008-09 45.91 2009 48.35
2009-10 47.42 2010 45.74
2010-11 45.58 2011 46.67
2011-12 47.95 2012 53.49
2012-13 54.45 2013 58.63
2013-14 60.50 2014 61.03
2014-15 61.15 2015 64.15
2015-16 65.46 2016 67.21
2016-17 67.09 2017 65.12
2017-18 64.45 2018 68.36
2018-19 69.89 2019 69.89
2019-20 70.49 2020 74.18
2020-21 73.20 2021 75.37
2021-22# 74.26 2022* 74.57
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