First Renewable Energy Global Investment

Promotion Meet & Expo, New Delhi, India

(RE-INVEST )
Ministry of New and Renewable Energy
Government of India

15th-17th February 2015

Salient features of the Indian Economy - 2013

Largest Democracy
Population of 1.24 bn.*
GDP:
USD 1,876.80 bn.**
Ranked 10th globally
Growth rate of 5%
A per capita GNI of USD 1,571
Ranked 3rd globally in terms of PPP*

17.4%

Agriculture
Industry
Services

25.8%
56.9%

GDP Composition by Industry

A liberal foreign investment regime

FDI of USD 28.15 bn. in 2013
Abundance of natural resources, a rich mineral base & self-sufficiency in
agriculture
Fifth highest investment in infrastructure projects in energy that have
reached financial closure and serve the public
*Source:

http://www.imf.org/external/pubs/ft/weo/2014/01/weodata/index.aspx; **Source: http://data.worldbank.org/indicator/NY.GDP.MKTP.CD;

12.7%

Indian Power Sector

Power Installed Capacity = 253.390 GW
As of 31st August 2014

Thermal
176,118.6
MW

Hydro
40,798.8
MW

Nuclear
4,780
MW

Renewable
32,307.71
MW

Thermal

16.1%

Nuclear
Hydro

1.9%

69.3%

Renewable

Total
254,005.1
MW

Indian energy scenario

Indias energy usage has been rapidly increasing as a result of economic growth in
the last decade and the large population;
Per capita consumption of electricity in India (2.02kWh) is very low compared to
Canada (51.5kWh), USA (39.25kWh) and other developed countries.
India is one of the major coal importing nations in the world
More than 25% of primary energy needs being met by imports mainly in the form of
crude oil and gas
India is endowed with vast renewable energy resources including wind, solar,
biomass and small hydro.
India needs to develop the available renewable energy to meet its growing power
needs and ensure energy security

4
8.49%

Renewable Power Capacity

12.52%
Wind
Small Hydro

Power Installed Capacity = 32.308 GW

As of 31st August, 2014

Wind
21,692.98
MW

Small Hydro
3,826.18
MW

Solar
2,743
MW

Biomass
4,045.55
MW

Bio mass

11.84%

Solar
67.14%

Total
32,307.71
MW

Renewable Power Projects Potential

Resource

Potential (MW)

Cumulative
achievement

Wind

49,500(50m hub height)

102,800(80m hub height)

21,692.98

Small Hydro(up to 25MW)

19,700

3,826.18

Biomass including bagasse

cogeneration

22,500

4,045.55

Solar

50MWp/km2

2,743MW

Indias Energy Challenge

In next 12 years Indias
electricity requirement to
grow 2.5 times

Peak shortage of 2%
and energy shortage
of 5.1% is
expected(2014-15) **

Demand

Climate Change is
also an important
issue

Shortage

Climate
Change

Access

Security
India was dependent on
oil imports for 71% of its
demand in 2012*

*Source:

http://www.eia.gov/countries/cab.cfm?fips=in;

300 Million people

did not have access
to electricity as per
the 2011 census *

**Source:

http://www.cea.nic.in/reports/yearly/lgbr_report.pdf

Renewable Energy: Historic Trends

and Growth Enablers
35000.00

JNNSM Phase II
guidelines

Tariff Policy,2006
Discom shall fix
RPO
Discom to procure
RE power through
competitive bidding

30000.00
Electricity Act 2003

NAPCC
guidelines

25000.00

CERC RE Tariff
Regulation and
JNNSM
guidelines

REC Regulation

20000.00
MW

NEP, 2005
SERC to determine
preferential tariff
Promote private
sector participation
in RE

15000.00

10000.00

Power restructuring and

national guidelines on
tariff, inter-connection
and third party sales

5000.00

0.00
FY 02

FY 03

FY 04
Wind

FY 05

FY 06

FY 07

Biomass

Solar

WtE

FY 08
SHP

FY 09

FY 10

FY 11

FY 12

FY 13

FY 14

Cumulative Installed Capacity

Clean Energy Investment so far

14

12.3

12

Clean energy investment, 2013, $billion

USD Billion

10

7.6

8
6

4.7

5.6

4.7

6.85
5.6

4.2

2.9

0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: Bloomberg Finance Report, 2014

Indian clean energy market is largely driven by asset-based

finance to the extent of 94% of the total investment in the sector.
A variety of investors finance renewable energy projects in India,
including institutions, banks, and registered companies
Development Banks-IREDA, continue to represent a key source
of funds for RE investments, particularly in project finance , over
the medium term.
Institutional investors are either state-owned or bilateral and
multilateral institutions
The estimated investment in Indian market will be about 100
billion USD in coming 4 years as per government estimates.

Asset
finance

Public
Market

VC/PE

Total

Solar

0.9

0.01

1.0

Bio-fuels

0.03

0.03

SHP

0.7

0.01

0.7

Biomass

0.5

0.02

0.6

Wind

3.2

0.1

3.3

Source: Bloomberg Finance Report, 2014

12th Plan Targets (up to March 2017)

Technology

Target*

Investment required

Wind Power Projects

15000 MW

US$15 billion

Small Hydro Projects

2100MW

US$2.1 billion

Biomass based power projects

2700 MW

US$2.7 billion

Grid connected Solar power projects 10000MW

US$12 billion

Off grid solar power projects

US$1.8 billion

Aggregate

1000MW

US$33.6 billion

* These are now being up-scaled to 100GW capacity addition in next five years (about
20000 MW every year ) requiring about US$ 20 billion every year excluding power
evacuation facility.
8

Renewable Energy Policy Initiatives in India

National Solar Mission
Government specified targets for capacity addition in
both grid /off-grid solar
Biggest demand pull program globally
High quantum availability reduces tariff
3 rounds of bidding for solar projects have
happened since its inception
Payment security increases investor confidence
Solar park scheme (draft)
Government support for large scale solar parks
Offer pre-existing infrastructure facilities
Competitive advantage of plugging in projects
SECI is the nodal agency for central support

Biomass & Cogeneration

Specified targets to be achieved within a time frame
Support for fuel security
Robust mechanism to define fuel prices
Command area specifying a minimum radius for
every power plant
Industrial cogeneration has high potential and is
relatively untapped on an organized scale

Scaling up solar energy

Government to scale up solar through 3 key measures
Large scale deployment of rooftop projects
Increased pace of grid connected projects.
Thrust on large scale projects (100 MW min.)
Government ambitions for 100 GW in 6-8 years
National wind mission & offshore policy (draft)
Defined targets with aggressive frameworks for On/off
shore wind; small wind; hybrid and other technologies
Thrust on increased local manufacturing
Resource allocation for faster deployment
Repowering of old wind machines
Single window clearance
Sea Bed Lease Arrangement.
Grid connectivity and evacuation of power
Strengthening of transmission infrastructure
Development of network specifically for wheeling of
RE power.
Integration of existing grid with green corridor.
Strengthening of infrastructure will assist
developers in accurate forecasting of generation 9

Transmission Infrastructure

Existing evacuation infrastructure is not capable

of evacuating proposed capacity additions
A need to integrate of RE based generation to
the existing system
Proposed high capacity transmission systems
(Green energy corridor)

Green Energy Corridor

Will evacuate renewable power from RE rich states
to load centres
Make pockets of RE generation grid interactive
Reduce evacuation losses
Foster reliable forecasting of renewable energy
based generation
Allow Grid scale energy storage & its management
Require a capital outlay of around INR 425
billion(USD 6.964 billion)
10

Tax & Regulatory Incentives

Incentive

Details

Income tax Holiday

100% for 10 consecutive years - MAT @ 20% to apply

Accelerated
depreciation

Accelerated depreciation @ 80% on solar assets

Additional depreciation @ 20% on new plant/machinery in the 1 st year

Deemed export
benefits

Available to specified goods manufactured and not actually exported

Advance authorization from Directorate General of Foreign Trade
Deemed export drawbacks
Exemption/return of Terminal Excise Duty

Service tax based on

negative list

Certain services are exempted from service tax

Services of transmission or distribution of electricity by an electricity utility

Customs and Excise

Laws

Various duty concessions and exemptions to RE Sector

Reduced VAT

Certain States allow reduced VAT rates (5%) on RE projects

Additional one-time
allowance

Available @15% in Budget 2014 on new plant and machinery

Tax-free Grants

Grants received from the holding company engaged in generation, distribution

or transmission of power
11

Non-Tax Incentives
Incentive

Details

Feed-in-tariffs

When renewable generators sell to state utilities under the MoU route
Rates decided by the CERC and the SERC

Rebates

Available on the manufacturing of solar and wind components

Targeted at specific types of renewable energy technology
Include subsidies and rebates on capital expenditures

Favourable land
policies

By various state governments for renewable development

Reduce capital costs and favour ease of land allocation

Government R&D
programmes

Improve renewable energy technologies

Lead to growing performance, importance and reducing costs

12

Foreign Investment
FDI: Foreign Direct Investment

100% FDI under the Automatic Route

Does not require approval from the
Government of India
The Indian Company receiving FDI is
required to:
Report to the Reserve Bank of India
the receipt of FDI within 30 days
File form FC-GPR within 30 days of
issue of shares
Shares are issued to the Investor within 180
days of receipt of FDI
Financial and fiscal advantages, such as
preferential tariff or payment security
mechanism
Government encourages transfer of foreign
technology

JV: Joint Venture

Automatic approval for up to 74% foreign

equity participation in a JV
Liberalized foreign investment approval
regime
100% foreign investment as equity is
permissible with the approval of Foreign
Investment Promotion Board (FIPB)
Various chambers of commerce and industry
associations in India provide guidance to
investors in finding appropriate Partners
Investors can set up a liaison office in India
Foreign Investors are encouraged to set up
RE-based power generation projects on
build-own-operate basis

13

Making India the New Investment Destination for Renewable

Energy
A Government of India Initiative

The Event
Encourage Make in India for manufacturing and generating energy
Central theme - to attract large scale investments for renewable
energy sector in India
First major event for investment promotion in RE sector by
Government of India, with active participation from the States
Provide a platform to global investment community to connect with
stakeholders in RE sector in India: central and state government
officials of India, leading business leaders and top executives from the
industry, academics and experts from around the world

Objectives
To project India as an attractive investment destination
for RE
To bring foreign investment to new areas of RE such as
small hydro, offshore wind, hydrogen, bio-fuels and
geothermal while further strengthening solar and wind
energy sectors
To demonstrate Indias commitment towards
development and up-scaling of RE to meet its energy
requirement while taking care of the environment

Conference
Plenary session:
Inauguration by Honble Prime Minister of India
Addresses by high level national and international
dignitaries

Technical & breakout sessions

Policy sessions by central and state
governments
Pre-arranged one-to-one business meetings
Working panels and networking opportunities

Exhibition
Trade show with 300 350 companies
Showcase of:
Manufacturing capabilities
Latest technologies
Innovative financing options
Investment opportunities

Representation from domestic and

international manufacturers, project
developers, investors, service providers

Agenda
Interactions on key drivers of RE
production and use including:

Grid interactive renewable power

Policy and technical issues
Decentralized and distributed RE generation
Up-scaling global effort for technology development and
transfer
Financing and investment

Sector-specific granulated discussions on

policies, incentives, compliance norms,
timelines and other practical requirements
(contd)

Agenda
Current investment landscape from different
perspectives
Status of the RE development, with focus on
equity and credit financing, established and
emerging commercial technologies, and
renewable power generation
Expo to showcase the industrys
manufacturing capabilities and latest
technologies to investors

Market
Favorable policy frameworks set by central and state
governments to facilitate RE projects, such as:
FDI up to 100% permitted in RE generation and
distribution projects under the automatic route
Transfer of foreign technologies encouraged
Incentives offered:

Capital subsidies, including for biomass and small hydro projects

Viability Gap Funding (VGF) for solar projects
Preferential tariffs, Feed-in-Tariffs (FiTs)
Generation-based incentives and tax benefits
Payment security mechanisms

Participants
Over 200 Indian and international large
investors are expected from:

Renewable power project developers and manufacturers

Bilateral and multilateral financial institutions
Indian Banks and non-banking financial companies (NBFCs)
Institutional investment companies
State government departments and renewable energy nodal agencies
Public Sector Units
Utility representatives and equipment suppliers
Other related stakeholders from the renewable energy sector

Over 1,000 delegates expected from across the

world

Organizers

Ministry of New and Renewable Energy (MNRE), Government of India

The Indian Renewable Energy Development Agency (IREDA)
Confederation of Indian Industry (CII)
Federation of India Chambers of Commerce and Industry (FICCI)
Knowledge Partner: PricewaterhouseCoopers (PwC)
Supported by leading industrial and sector-specific organisations including
ASSOCHAM and PHD Chamber of Commerce and Industry
More information:
http://mnre.gov.in | http://www.ireda.gov.in | www.cii.in | www.ficci.com

Event website: http://www.re-invest.in

Venue & Registration

Venue:- Ashok Hotel, Niti Marg, Chanakyapuri, New Delhi- 110021
(India)
Conference Registration Fee:-

Indian Nationals - Rs. 7000/- per delegate

Foreign delegates- US$ 200/- per delegate
Exhibition Registration Fee:-

Rent for exhibitors Bare space :Indian Exhibitors Rs.13000/- per sq m + 12.36% Service Tax
Foreign Exhibitors US $ 300-per sq m + 12.36% Service Tax

Rent for exhibitors shell space : Indian Exhibitors Rs.15000/- per sq m + 12.36% Service Tax
Foreign Exhibitors US $ 350-per sq m+ 12.36% Service Tax
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THANK YOU
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| Presentation Title | Presenter Name | Date | Subject | Business Use Only