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New & Renewable Energy PRESENTATION By

New & Renewable Energy

PRESENTATION By

New & Renewable Energy PRESENTATION By
Agenda – I Energy Scenario  Power Reforms  RE Imperative 
Agenda – I
Energy Scenario
Power Reforms
RE Imperative
  • RE Scenario

  • RE Policy Enablers

  • RE Targets

  • RE Investments

  • Attractiveness

Energy Scenario  Power Capacity – 156 GW  Thermal - 100 GW  Hydro 

Energy Scenario

  • Power Capacity

156 GW

Energy Scenario  Power Capacity – 156 GW  Thermal - 100 GW  Hydro 
  • Thermal

- 100 GW

  • Hydro

  • Renewable

- 37 GW

- 15 GW

  • Per Capita Consumption

  • RE Share in Generation

  • Energy Served Population

  • Peak Deficit

  • Energy Deficit

  • AT&C Losses

730 units 4% 60% 12% 11% 30%

Power Reforms

  • Unbundling of utilities

  • De-licensing in Generation & Transmission

  • Mega schemes - UMPP & UMTP

  • Creation of National Grid

  • Franchisee in Distribution

  • Promoting merchant Power

  • Focused approach for Rural Areas

  • Promotion of Renewable Energy

    • Fiscal & Financial Incentives

    • RPO Targets

    • National Solar Mission

Power Reforms  Unbundling of utilities  De-licensing in Generation & Transmission  Mega schemes -
RE Imperative Enormous RE potential  Promotes Energy Security 
RE Imperative
Enormous RE potential
Promotes Energy Security
  • Promotes Sustainable Growth

  • Bridges demand-supply gap

  • Reduced Losses as Generation near consumption

  • Provides lifeline energy (Heat, Light & Power) to rural masses

Issues with RE Projects  Remote Locations  Infirm Power, difficult to schedule  Limited Generation

Issues with RE Projects

  • Remote Locations

  • Infirm Power, difficult to schedule

Issues with RE Projects  Remote Locations  Infirm Power, difficult to schedule  Limited Generation
  • Limited Generation period, requires storage

  • High Generation Cost due to

    • High up-front cost

    • Low Capacity Factor

  • Under-utilization of transmission facilities

  • Associated with Reactive Power

  • First Generation Entrepreneurs

  • Limited Public Sector Participation

  • Lack of Trained Work-force

  • RE Policy Enablers  Dedicated Ministry – MNRE  Dedicated Financial Institution - IREDA  Comprehensive

    RE Policy Enablers

    • Dedicated Ministry MNRE

    • Dedicated Financial Institution - IREDA

    • Comprehensive Resource Assessment

      • Wind Atlas

      • Solar Radiation Mapping

      • Identification of Hydro sites

  • Enabling Legislations

    • NAPCC

    • Purchase Obligations

  • RE Policy Enablers  Dedicated Ministry – MNRE  Dedicated Financial Institution - IREDA  Comprehensive
    • Preferential Tariffs/ GBI/ RE Certificate

    • Guaranteed off-take, Must-Run status

    Fiscal & Financial Incentives

    • Excise duty exemptions

    • Income Tax Holiday

    • Accelerated Depreciation

    Fiscal & Financial Incentives  Excise duty exemptions  Income Tax Holiday  Accelerated Depreciation 
    • Electricity Duty exemption

    • Preferential Tariffs/ GBI/ RE Certificate

    • Interest & Capital subsidies

    • 100% FDI permitted

    • Energy buy-back through long-term PPA

    • Captive, 3 rd Party Sale & Trading

    NAPCC Snapshot – 8 Missions

    NAPCC Snapshot 8 Missions

    NAPCC Snapshot – 8 Missions
    Indian RE Scenario
    Indian RE Scenario
     

    Total Potential

    Harnessed

    Sector

    (in GW)

    (in GW)

    Wind

    48

    11

    Small Hydro

    15

    2.6

    Cogeneration

    5

    1.2

    Biomass

    17

    0.8

    Solar

    Unlimited

    6

    Indian RE Scenario Total Potential Harnessed Sector (in GW) (in GW) Wind 48 11 Small Hydro

    Note: Grid connected capacity as on 31-Oct-2009

    Investments in Indian RE

    Parameters

    2007

    2008

    % Change

    Total Investments

    USD 3.3 Bln

    USD 3.7 Bln

    12%

     

    SOURCE-WISE

    VC & PE

    USD 133 Mln

    USD 493 Mln

    280%

    Foreign Exchanges

    USD 756 Mln

    --

    --

    Domestic Bourses

    USD 646 Mln

    USD 74 Mln

    (85%)

    M&A

    USD 585 Mln

    USD 585 Mln

    --

     

    SECTOR-WISE

    Wind

    USD 2.2 Bln

    USD 2.6 Bln

    17%

    Solar

    USD 18 Mln

    USD 347 Mln

    1800%

    SHP

    USD 135 Mln

    USD 543 Mln

    300%

    Bio-Fuel

    USD 251 Mln

    USD 49 Mln

    (80%)

    Asset Finance

    USD 2.5 Bln

    USD 3.2 Bln

    25%

    2012 RE Targets & Investments Sector Capacity* USD Mln Investments (MW) per MW USD Bln Wind

    2012 RE Targets & Investments

    Sector

    Capacity*

    USD Mln

    Investments

    (MW)

    per MW

    USD Bln

    Wind

    6250

    1.1

    7

    Solar**

    1000

    3

    3

    Small Hydro

    860

    1.4

    1.2

    Biomass

    1380

    1.00

    1.3

    TOTAL

    9500

     

    12.5

    By 2012

    25000

       

    (*) After deducting for the commissioned capacity as on 31 Oct’09 from MNRE-RFD for Wind, SHP & Biomass

    (**) Solar JNNSM (Th-600 MW + PV-400 MW) (^) Cost projections Inline with CERC guidelines

    ATTRACTIVE INVESTMENT DESTINATION

    ATTRACTIVE INVESTMENT DESTINATION

    Indian Economy  Fastest growing free market democracy  4 largest economy  GDP growth @

    Indian Economy

    • Fastest growing free market democracy

    • 4 th largest economy

    • GDP growth @ 8%

    • Infrastructure

      • 2 nd largest Rail network

      • 334 airports

    Indian Economy  Fastest growing free market democracy  4 largest economy  GDP growth @
    • 12 major ports & 87 minor ports

    • 400 Million telephone connections

    • 5 th largest power market

    • IT & Engineering Superpower

    FDI in India

    FDI in India  100% FDI allowed in power Generation, Transmission & Distribution  Government haswww.investinginindia.in " id="pdf-obj-14-5" src="pdf-obj-14-5.jpg">
    • 100%

    FDI

    allowed

    in

    power

    Generation,

    Transmission

    &

    Distribution

    • Government has set up Foreign Investment Implementation

    Authority

    • One-stop service to foreign investors

    • Obtaining necessary approvals

    • Sorting operational problems

    INDIA: Ideal Destination Business Financial Motor India USA China USA China USA US$ 35 Billion FDI
    INDIA: Ideal Destination
    Business
    Financial
    Motor
    India
    USA
    China
    USA
    China
    USA
    US$ 35
    Billion FDI in
    UK
    UK
    India
    2008-09
    China
    India
    Poland
    ICT
    Electronics
    Pharma
    India
    China
    USA
    USA
    India
    China
    China
    USA
    India
    UK
    UK
    UK

    Source: IBM-PLI Global Investment Locations Database, GILD

    FDI in Indian Power Sector

    Year

    Power Sector (US $ Mln)

    RE Sector (US $ Mln)

    2008-09

    985

    85

    2007-08

    968

    43

    2006-07

    158

    2

    FDI in Indian Power Sector Year Power Sector (US $ Mln) RE Sector (US $ Mln)
    ABOUT IREDA

    ABOUT IREDA

    Agenda – II Introduction  Operational Areas  Financing Schemes 
    Agenda – II
    Introduction
    Operational Areas
    Financing Schemes
    • Resource Base

    • Performance Highlights

    • International Partnerships

    • Recognition

    Evolution
    Evolution

    INCEPTION

    Incorporated under the Companies Act on 11th March,

    • 1987 to

    promote,

    develop

    and

    extend

    financial

    assistance for Renewable Energy and Energy

    Efficiency/ Conservation Projects.

    OBJECTIVE

    Extend financial support to Renewable Energy, Energy Efficiency & Conservation projects

    MOTTO

    Energy For Ever

    Operational Areas Sectors being financed:  Wind  Small & Medium Hydro  Biomass Power &

    Operational Areas

    Operational Areas Sectors being financed:  Wind  Small & Medium Hydro  Biomass Power &

    Sectors being financed:

    • Wind

    • Small & Medium Hydro

    • Biomass Power & Cogeneration

    • Solar

    • Waste to Energy

    • EE & Conservation

    • Bio Fuels/ Alternate Fuels

    Operational Areas Sectors being financed:  Wind  Small & Medium Hydro  Biomass Power &

    Other Activities

    • Intermediary for providing financing facilities for various MNRE Schemes

    • Implementing Agency for GBI scheme

    Financing Offerings Schemes  Project Financing  Equipment Financing  Financing Through Intermediaries Terms  Loan
    Financing Offerings
    Schemes
    Project Financing
    Equipment Financing
    Financing Through Intermediaries
    Terms
    Loan
    - 70% of Project Cost
    Interest
    -11.25% to 12.15%
    (based on credit rating)
    Repayment
    - Upto 13 Years
    New Initiatives
    Securitization against future receivables
    Structured repayment
    Loan syndication under Consortium
    Non-recourse financing

    Outreach

    Outreach  Registered & Head office – New Delhi  Branch Offices – Chennai & Hyderabad
    • Registered & Head office New Delhi

    • Branch Offices Chennai & Hyderabad

    • Camp Offices Kolkata & Ahmedabad

    • Business Development Associates 50 Nos

    • MoU with PFC, PTC, IIFCL for joint financing

    • Conducts

    workshops

    Business

    Meets,

    Seminars,

    • Publishes IREDA News & Bulletin on EE

    Cumulative Performance

    • No of Projects Sanctioned

    • Total Loan Sanctions

    • Loan Disbursements

    • Sanctioned Power Capacity

    • Commissioned Capacity

    :1892

    Cumulative Performance  No of Projects Sanctioned  Total Loan Sanctions  Loan Disbursements  Sanctioned

    :Rs.10,356 Cr

    :Rs. 5,754 Cr :3616 MW

    :1902 MW

    • Conventional Fuel Replacement :13L MTCR/Yr

    India ’ RE Portfolio IREDA ’ Share Total IREDA Sector MW MW % Share Bio-Power 703.0

    IndiaRE Portfolio IREDAShare

     

    Total

    IREDA

     

    Sector

    MW

    MW

    % Share

    Bio-Power

    703.0

    224.8

    32.0%

    Wind

    10242.0

    907.9

    8.9%

    SHP

     
    • 2428.8 12.4%

    300.0

     

    Co-Gen

     
    • 1049.0 47.1%

    494.6

     

    W2E

    59.0

    24.7

    41.8%

    Solar

    2.9

    NIL

    NIL

    TOTAL

    14484.7

    1951.9

    13.5%

    Highlights Unique FI Dedicated for RE Financing 
    Highlights
    Unique FI Dedicated for RE Financing
    • Specialized knowledge of RE & EE

    • High Brand Equity

    • Catalyzed market development leading to commercialization of RE

    • Assisting in policy formulation

    • Profit earning & dividend paying

    • ISO 9001:2000 Certified Company

    • Highest share in RE Financing - 13.5%

    International Partnerships Lines of Credit Availed  Govt of Netherlands, 1991  World Bank (1 LoC),

    International Partnerships

    Lines of Credit Availed

    • Govt of Netherlands, 1991

    • World Bank (1 st LoC), 1993

    • DANIDA, 1993

    • Asian Development Bank, 1997

    • KfW, Germany (1 st LoC), 1999

    • World Bank (2 nd LoC), 2001

    • KfW, Germany(2 nd LoC), 2008

    • KfW, Germany (3 rd LoC)

    :18 Million Dutch Guilders :$ 145 Million

    :$ 15 Million :$ 100 Million :61 Million :$ 110 Million :50 Million :19.9 Million

    Lines of Credit in Pipeline

    • AFD (France)

    • JICA (Japan)

    :70 Million :$ 100 Million

    Lender ’ s Perceptions  ADB - IREDA has satisfactorily performed the operational and institutional responsibilities

    Lenders Perceptions

    Lender ’ s Perceptions  ADB - IREDA has satisfactorily performed the operational and institutional responsibilities
    • ADB - IREDA has satisfactorily performed the operational and institutional responsibilities in accordance with the diverse objectives for which it was created.

    • World Bank - IREDA is well motivated, active and has strong interest in incorporating environmental costs and benefits into economic analysis.

    • KFW - despite its fairly young age, IREDA is an able and competent financial institution and has retained its financial strength through years of very rapid growth and in sectors with considerable technological and financial risks.

    Recognition  Second Prize in Water Globe Award Category of the Energy Award 2002 presented Austria.

    Recognition

    • Second

    Prize

    in

    Water

    Globe Award Category of

    the Energy Award 2002

    presented

    Austria.

    at

    Linz,

    Recognition  Second Prize in Water Globe Award Category of the Energy Award 2002 presented Austria.
    • World

    Climate

    Technology Award for the year 1999 by Climate

    Technology

    (CTI), France.

    Initiative

    Recognition  Second Prize in Water Globe Award Category of the Energy Award 2002 presented Austria.
    THANK YOU

    THANK YOU