indian solar power development: opportunities by debashish majumdar chairman & managing director...
TRANSCRIPT
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Indian Solar Power Development:Opportunities
ByDebashish Majumdar
Chairman & Managing Director
Indian Renewable Energy Development Agency LimitedNew Delhi ( India )
Washington DC Nov 5, 2009
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Contents
Overview: Power & RE Sector
IREDA
Preview: Solar Mission
Opportunities
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Indian Economy Fastest growing free market democracy 4th largest economy Average GDP growth @ 8% 2nd largest Rail network, 334 airports 12 major ports & 187 minor ports 400 Million telephone connections 5th largest power market Strong IT & Engineering base
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Current Power Scenario
• Installed Capacity :150 GW • Power Growth : 6%• Power Trading : 3%• Per capita consumption:700Kwh• Transmission Capacity: 21 GW
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Power Mix
Hydro 24%
Nuclear 3%
Renewable10%
Gas11%
Thermal 52%
Thermal81,484 MW
Hydro 36,917 MW
Gas 16,386 MW
Renewable15,141 MW
Nuclear4120 MW
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Challenges
Huge Unmet Demand Peak Deficit – 12% Half of population lacks power
Energy Security Dependence upon Imports
Low-carbon/ Sustainable Growth 4th Largest Carbon Emitter
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RE Imperative Enormous potential Equitable distribution Promotes Energy Security Bridges demand-supply gap Low carbon growth trajectory Provides lifeline energy in rural areas DSM measure in Urban areas Contains urban migration
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RE Potential & Achievements
SectorPotential( In MW)
CapacityAs on 30 Sept 2009
Wind 45195 10464
Small Hydro 15000 2461
Cogeneration 5000 1155
Biomass 16881 773
WTE 2700 59
Total: 84,776 14,912
Solar PV 4^
(^) Excluding decentralized systems
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Policies for Renewable Power
• The Electricity Act 2003, mandates to:• Create competition, protect consumers’ interest & power for all.• Facilitate private sector investments• Permit stand-alone systems – rural areas• Provide open access• Determination of preferential tariff• Specify minimum percentages for purchase of renewable power.
17 States have announced RE Policy
Future Policy Direction Introduction of Generation Based Incentives. Introduction of Penal provisions for not meeting RPOs. Introduction of Tradable Renewable Energy Certificates.
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Indian Renewable Energy Development Agency Limited
At a Glance
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Evolution of IREDA
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
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Be a pioneering, participant friendly and competitive institution for financing and promoting self-sustaining investment in energy generation from renewable sources, energy efficiency and environment technologies for sustainable development.
Mission
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Areas of OperationSectors being financed: Wind Small & Medium Hydro Biomass Power &
Cogeneration Solar Waste to Energy Energy Efficiency &
Conservation Bio Fuels/ Alternate Fuels
Project Financing Schemes Equipment Financing Schemes Financing Through Intermediaries
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Highlights
Dedicated FI for RE Financing – Unique in the World
Specialized knowledge of RE / EE sector Recognized internationally – High Brand Equity Multilaterals/ Bilaterals prefer working with
IREDA Perceived as a leader in the sector Profit earning & dividend paying Rated Excellent for FY 2007-08
Expected Rating Excellent for FY 2008-09 NBFC as per RBI Classification ISO 9001:2000 Certified Company
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Successes
Developed RE through innovative financing.
Encouraged entry of private sector in RE.
Catalyzed market development leading to commercialization of RE
Helped in creating capabilities in : manufacturing design & engineering O&M
Assisted in framing of conducive RE policies
Highest share in RE Financing.
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Cumulative Performance
No. of Projects Sanctioned : 1892 Projects Total Loan Sanctions : 2290 Million US$ Loan Disbursements : 1270 Million US$ Sanctioned Power Capacity : 3616 MW Conventional Fuel Replacement :1.3 mln MTCR/Yr
As on 31/03/2009
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Resource Base
Authorized Share Capital : 221 Million US$
Paid-up Capital : 115 Million US$ Net-worth : 193 Million US$ Domestic Borrowings : 172 Million
US$ International Borrowings : 205
Million US$
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International Partners Govt of Netherlands, 1991 : 18 Million
Dutch Guilders World Bank (1st LoC), 1993 :$ 145 Million DANIDA, 1993 :$ 15 Million Asian Development Bank, 1997 :$ 100 Million KfW, Germany (1st LoC), 1999 :€ 61.35 Million World Bank (2nd LoC), 2001 :$ 110 Million KfW, Germany(2nd LoC), 2008 :€ 50 Million NORDIC Investment Bank : $ 50 Million EXIM Bank, USA : $ 50 Million
Lines of Credit in Pipeline KfW, Germany(3rd LoC) :€ 19.9 Million AFD (France) :€ 100 Million JICA (Japan) :$ 100 Million ADB :$ 200 Million
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National Solar Mission
(A quick preview)
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Aims & Objectives
Aim: Setting up an enabling environment for solar technology penetration in the country both at centralized and decentralized levels
Objective: Establish India as a global leader in solar energy, by creating policy conditions for its diffusion across the country as quickly as possible
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Expectation
20,000 MW Solar Power
by
2020
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Expected Policy Enablers (I) Utility scale power generation
(including Roof Top)
-Solar specific RPO (3% by 2022) -Generation Based Incentives (GBI) to
reduce impact on tariff Off-Grid power generation
-Capital subsidy for new applications -Soft re-finance facility via IREDA
Low-cost quality Manufacturing-Capital Subsidy for solar thermal (already
exists for Solar PV)
-Soft loans from IREDA
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Expected Policy Enablers (II)
Promoting Solar Collectors (Water Heaters)
-Provisions under building bylaws-Certification/ rating
Solar Thermal Demonstration Projects-Storage & Hybrid Mode
R&D Funding under PPP mode for:
-Efficiency improvements-Cost reduction-Energy Storage
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Expected Policy Enablers (III)
Fiscal:
- Customs and Excise Duty exemptions on specified materials, equipment and systems
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Opportunities
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Opportunity: Solar Manufacturing Low base – 700 MW Duty exemptions 100% FDI permitted Cheap skilled workforce 20 GW market by 2022 (NSM) Single window clearance SIPS scheme for Fab units Dedicated export zones (SEZ)
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Opportunity: Solar Generation
Mission mode approach Attractive tariff (GBI) Tax breaks Low-cost finance Long term PPA Revenue – CDM & REC 100% FDI permitted Best Practices from Wind
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Investment Opportunity
Sector Capacity Addition* TotalCost/MW Investment
s
Unit MW MW MW US $Mn US $Bn
Wind 10,000 20,000 30,000 1.00 20.00
Solar PV -- 15,000 15,000 3.50 52.50
Solar Th -- 5,000 5,000 2.50 12.50
SHP 2,000 8,000 10,000 1.00 8.00
Biomass 2,000 7,000 9,000 1.00 7.00
TOTAL 70 GW 100.00
US$100 Bn Opportunity
(*) Estimated Figures
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India: Investment Opportunities
Strong and clear policy framework providing enabling environment.
Structures in place to facilitate power trading, open access etc.
Power sector growth (5%) yet to catch up with GDP growth rate (8%) – creating market demand.
Large supply-demand gap in power sector.
Very large potential of RE yet to be tapped.
Mature financial markets
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Advantage IREDA
IREDA has emerged as a dominant player and continues to maintain its position in serving RE & EE sectors.
Self-sustaining institution, earning profits since inception.
Has earned the trust and confidence of prestigious institutions like World Bank, GEF, ADB, KfW etc.
Ability to finance wide range of projects in RE & EE sectors.
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IREDA welcomes you to join hands to create a better tomorrow.
Thank you !
Indian Renewable Energy Development Agency Limited 3rd Floor, August Kranti Bhawan, Bhikaiji cama Place, New Delhi – 110 066, India
Email : [email protected]
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National Solar Mission (NSM)
Applications Units 2013 2017 2022
Grid MW 1000 4000 20000
Off-Grid MW 200 1000 2000
Thermal Mn m2 7 15 20
Manufacturing MW/yr 1500 5000 10000
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RE Investments
Parameters 2007 2008 Growth
Total Investments USD 3.3 Bn USD 3.7 Bn 12%
VC & PE USD 133 Mn USD 493 Mn 280%
Foreign Exchanges USD 756 Mn -- --
Domestic Bourses USD 646 Mn USD 74 Mn (85%)
Merger &Acquisitions
USD 585 Mn USD 585 Mn --
Wind USD 2.2 Bn USD 2.6 Bn 17%
Solar USD 18 Mn USD 347 Mn 1800%
SHP USD 135 Mn USD 543 Mn 300%
Bio-Fuel USD 251 Mn USD 49 Mn (80%)
Asset Finance USD 2.5 Bn USD 3.2 Bn 25%
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Solar Providence
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Sun: Worshipped since Ages
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Solar Advantage for India
300 sunny days in a year 5-7 kWh/m2
Large scale Solar Thermal Plants SPV providing lifeline energy SPV for Railways, Telecom towers DSM in urban areas
SPV Roof-tops/ Battery charging Solar Heating & Cooling systems
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Source: IBM-PLI – Global Investment Locations Database, GILD
India: Ideal Investment Destination
BusinessIndiaUSAUK
China
FinancialUSA
ChinaUK
India
MotorChinaUSA
IndiaPoland
ICTIndiaUSA
ChinaUK
ElectronicsChinaIndiaUSAUK
PharmaUSA
ChinaIndia
UK
FDI of US$ 35Bn
2008-09