ReportonTask4 MP

Scale-up Plan for Grid
Connected Renewable
Energy Technologies
New and Renewable Energy Department,
GoMP
June 10, 2014
Disclaimer
This publication (and any extract from it) may not be copied, paraphrased, reproduced, or distributed in any
manner or form, whether by photocopying, electronically, by internet, within another document or otherwise,
without the prior written permission of PwC. Further, any quotation, citation, or attribution of this publication,
or any extract from it, is strictly prohibited without PwCs prior written permission.
Scale-up Plan for Grid Connected Renewable Energy Technologies - New and Renewable Energy Department, GoMP
PwC
Sustainable development also mandates the efficient use of

available natural resources. We have to be much more
frugal in the way we use natural resources. A key area of
focus is energy. We have to promote, universal access to
energy, while, at the same time, promoting energy
efficiency and a shift to cleaner energy sources by
addressing
various
technological,
financial
and
institutional constraints.
Al Gore
Our Choice
Dr. Manmohan Singh

During the Rio+20
Summit in Brazil,
June, 2012
Once the renewable infrastructure is built, the fuel is

free forever. Unlike carbon-based fuels, the wind and
the sun and the earth itself provide fuel that is free, in
amounts that are effectively limitless
Because the wind blows during stormy conditions when

the sun does not shine and the sun often shines on calm
days with little wind, combining wind and solar can go a
long way toward meeting demand, especially when
geothermal provides a steady base and hydroelectric can
be called on to fill in the gaps.
Mark Z. Jacobson &

Mark A. Delucchi
Scientific American,
Nov. 2009
PwC
Executive Summary
Madhya Pradesh Electricity Regulatory Commission in accordance with the powers conferred under
Electricity Act 2003 has issued regulations on minimum purchase of power from renewable energy
sources. The order issued by MPERC defines the renewable purchase obligation for the state of
Madhya Pradesh form 2010-15. The order defines separate RPO for solar and non-solar projects.
The Government of India has prepared National Action Plan on Climate Change (NAPCC) to chart
the development path that is economically sustainable. NAPCC targets 15% a of the total energy
consumption from Renewable Energy (RE) by 2020. Based on targets of NAPCC, the potential
demand of RE is estimated at 207,275 MUs by 2020.
Extrapolating on MPERC regulations and targets provided in NAPCC, the capacity addition required
in RE will be more than 5,000 MW by 2020. As of September 2013, the installed capacity of RE is
686 MW. Therefore, there is fair distance to cover to achieve the targeted capacity addition by 2020.
Potential of RE
As per preliminary assessment, the RE potential in the state could be close to 39,000 MW in grid
connected renewable energy technologies including solar, wind, biomass and small hydro. The
potential of RE in the state have a considerable buffer not only to fulfil the RPO of the state but also
assist other states in fulfilling their RPO.
Demand of RE
The state has witnessed growth rate of 10.2% in the last five year plan. Due to high correlation
between GDP growth rate and the demand for power, the demand for power is also expected to rise at
a healthy rate. The demand for the renewable energy is directly proportional to total consumption of
electricity in the area of Distribution Licensee. The RE demand due to RPO in the state is estimated to
be 12,218 MUs in 2020. The estimated demand for RE can be met by capacity addition of 1,189 MW
in solar, 4091 in wind, 367 MW in biomass and 312 MW in small hydro.
Huge potential to attract private investment
RE sector has been quite active in the last few years in attracting private investment in the state of
Madhya Pradesh. The large geographical area coupled with the rising demand for RE stemming from
regulatory obligations makes the state of Madhya Pradesh an attractive investment destination for
development of RE projects. With targeted capacity addition of 5,959 MW of RE projects in the state,
the total investment expected in the RE sector for the period from 2014-20 is expected to be more
than INR 35,000 Crores.
Policies revised in 2012 and 2013 for attracting investors
The renewable energy policies formulated by New and Renewable Energy department of Madhya
Pradesh, nodal agency for development of renewable energy in the state, are approved by the
Government of Madhya Pradesh. All the renewable energy policies have been formulated to assist the
developers in executing the projects in the timely manner while laying adequate emphasis on the
other aspects such as environmental considerations.
Strong pipeline of projects
MPNRED floated request for proposal for setting up of grid connected RE projects in the state in the
month of October 2012 and May 2013. More than 7,000 MW of interest was shown by the various
project developers in the stated RFPs including 2,341 in Solar and 4,212 in wind. Out of the total
PwC
interest of 7,000 MW shown by the investors more than 4,500 MW is at various stages of
implementation.
1,461
RFP2 (MW)
More than 6,500

MW of interest
shown by investors
in solar and wind
projects
3,527
880
685
RFP1 (MW)
-
1,000
2,000
Solar
3,000
4,000
Wind
More than 4,500

MW of projects
under
implementation
Biomass
165
Small hydro
275
Solar
1,449
Wind
2,776
-
500
1,000
1,500
2,000
2,500
3,000
Capacity (MW)
Way forward
Bringing investment certainty
Clearly identified thrust areas: The RE policy for Madhya Pradesh should clearly specify the
thrust areas for harnessing RE sources in the most economic way. The thrust areas can be based on
the RE potential available, technology maturity and other factors impacting the investments.
Focus on new formats for up-scaling RE
Forming joint ventures: The RE sector has seen investment from various Public Sector Utilities.
In discussion with MPNRED, it was informed that PSU companies have approached them for
developing RE projects. Structuring the JV partnership will require an understanding on various
aspects of the project development. MPNRED may appoint a consultant to prepare the institutional
structure and the legal agreements that may be required for JV partnership for developing RE
projects.
Developing solar and wind parks: MPNERD may make due efforts to facilitate the development
of the solar and wind parks in the state. Solar and wind parks can be developed in PPP mode. The
parks can accelerate the development of RE in the state. The parks can be sized in a manner that yield
cost economics to the project developers and competitive tariff to the procurer.
Single window clearance system
Institutionalization of Single Window Clearance provision may be taken as priority. Option of
providing approval for projects with capacity of less than 5 MW by lower rank committee can be
explored.
Land allocation for RE projects
PwC
Deputy Commissioners of all the districts can identify the inventory of surplus & unused land
available which can be used for installation of RE projects. The identification exercise can be done
periodically. Identified land for RE projects can be allocated to the MPNRED.
MPNRED may make compensatory afforestation land banks readily available to the project
developers that are developing projects in forest land to shorten the implementation timeframe.
Bringing certainty in resource assessment
Solar resource assessment: The bankers generally rely on the third party assessments of CUF for
financing solar projects. MPNRED may appoint a reputed third party technical consultant to map the
solar resource assessment for the entire state. This will provide the project developers with the
information that is bankable and will reduce the possibility of project failure at the stage of financial
closure.
Wind resource assessment: A reputed technical consultant may be engaged by MPNRED for
mapping wind resource at a broad level to identify the good regions where wind masts could be
installed for micro level assessment. Ground monitoring stations improves the quality of data. A
reputed technical consultant may then be engaged by MPNRED to install masts for wind monitoring
at the selected sites. This data may then be shared with the potential investors for project
development at the RFP stage.
Biomass resource assessment: MPNRED may undertake detailed study by appointing third
party technical consultant on biomass feedstock assessment for each district for both the agricultural
and forest waste to bring certainty on availability, quality and pricing of biomass in the state.
To overcome the problems posed by the existence of multiple middlemen (transporters, traders etc.)
in the biomass feedstock supply chain and to streamline the interaction between feedstock sellers and
buyers, an organized/structured market for biomass may be developed.
In order to ensure long term fuel availability and sustainable price, MPNRED may promote
plantation backed biomass power plants.
Small hydro resource assessment: Potential resource assessment is the most crucial factor
affecting the feasibility of a small hydro project. MPNRED may appoint a reputed technical
consultant to assess region wise potential of small hydro projects. The technical consultant shall
identify potential sites by using discharge data of various catchments and applying latest techniques
of remote sensing and/or computer modelling.
Detailed Projects Reports (DPRs) for these projects takes relatively longer because of the need for
reliable hydrological, geological, seismological and environmental data. These factors add huge
financial risks even for a short delay in the project or a small increase in project costs. Detailed
project report may be prepared for the project sites that are identified by the technical consultant.
These details may then be made available to the prospective developers during the bid process.
Focus on facilitation of infrastructure development
Grid connectivity: A coordination committee comprising representatives of MPNRED, MPPTCL
and distribution utilities can be formed to facilitate grid connectivity arrangement to RE projects. It
will help state electricity utilities in considering the future RE projects while developing their network
strengthening plans.
Based on the interest received from the project developers in the RFP process, certain regions can be
identified with higher potential for project development. MPPTCL should establish pooling points for
evacuation of power in such identified regions.
PwC
Be a part of Green Energy Corridor: Green Energy Corridor will assist RE rich states in
evacuating RE to the other states. Considering that Madhya Pradesh is able to secure more than
7,000 MW in the RFP 1 and 2 and 250 MW in JNNSM phase 2 batch 1, MPNRED shall make efforts
to include Madhya Pradesh in the proposed Green Energy Corridor so that RE power could be
evacuated outside the state.
Managing investment and project execution risk
PPA tenure and payment security: The PPA for the projects shall be signed for the project life
and payment shall be secured by irrevocable letter of credit from the procurer.
Issues in third party sale: The projects envisaged under third party sale or captive consumption
mode are likely to use preferential terms (preferential wheeling and banking, transmission or
electricity duty waiver) or REC mechanism for financial viability. The current methodology adopted
by MPPMCL for computations on load factor, power factor and other parameters disincentivise the
third party consumers and captive consumers. MPNRED may push the Discoms to rationalize the
methodology in order that the consumers procuring RE are not disincentivised on grounds of
adjustment to load factor, power factor and other parameters.
Managing project execution risk: Assessing the capacity to arrange capital (both debt and
equity) by assessing the financial strength of the bidder. Net worth criteria may be benchmarked
against the best practice for example that is followed by MNRE/SECI for JNNSM.
Target Funding
Engaging with bilateral and multilateral agencies: Multilateral and bilateral financing
agencies have shown their interest in developing the transmission infrastructure to up-scale the RE
investment. MPNRED may form the institutional structure and pool other agencies such as MPPTCL
that are able to interact with these funding agencies taking to consideration the capability to manage
funds, technical expertise to develop the transmission system, monitoring and reporting progress.
Harnessing funds from NCEF: According to National Clean Energy Fund (NCEF), the projects
relating to creation of power evacuation infrastructure are eligible for funding under the scheme.
MPNRED has made an application to NCEF for funding the power evacuation infrastructure for RE
projects in accordance with the financing plan submitted by MPPTCL.
Targeting incentives for grid Connected RE form MoF, India: 13th Finance Commission
provided guidelines for implementation of the incentive scheme, with the objective of broad-based
development of RE sources across states. The grant of INR 5,000 Crores was advised for the projects
to be commissioned from April 01, 2010 to March 31, 2014. Such grants may be advised by the
Finance Commission for the coming years. If such support is continued in future, MPNRED may
estimate the grant that could be drawn based on the guidelines provided by the 13 th Finance
Commission.
Creating Green Energy Fund to support infrastructure: MPNRED may envisage creating a
Green Energy Fund to share the evacuation cost with the project developers. The state may collect the
cess and utilizes the same for various activities development of non-conventional energy sources,
infrastructure development, power evacuation and study on mapping of RE resources.
Investment Promotion
Investor conference may be planned twice in a year where all RE power investors may be invited.
Information on RE resource assessment study undertaken by MPNRED, policy initiatives and
PwC
advantages for investment in the state may be disseminated during the investor conference. This data
may be published online for wider access.
Transparency in project monitoring
MPNRED is in process of developing project monitoring tool that will be capable of monitoring the
implementation progress of the projects registered with MPNRED. The tool will provide useful inputs
to MPNRED on the most critical stages where project developers are struck during implementation.
Tool will also provide access to the project developers. Project developers will be able to view the
status of their project in terms of actions that are required by MPNRED. The tool is expected to
increase the transparency on the project approval process which may improve investor confidence.
PwC
Table of contents
1. Introduction
17
1.1. Context
17
1.2. Study approach
17
1.3. Limitations of the Study
19
2. Rationale for RE promotion Madhya Pradesh
21
2.1. Huge potential to attract private investment
21
2.2. Enhanced Energy Security
21
2.3. Environmental Benefits
21
2.4. Leads to sustainable development
21
3. Institutional and policy review
22
3.1. Institutional arrangement for RE
22
3.1.1. National level institutional agencies
22
3.1.2. State level institutional agencies
23
3.2. Provisions in Electricity Act, 2003
24
3.3. Provisions in national electricity policy
24
3.4. Provisions in national tariff policy
25
3.5. National Action Plan for Climate Change
25
3.6. National Solar Mission
26
3.7. Recent initiatives for development of RE
26
3.8. National level policy instruments
27
3.9. State level policy review
28
3.9.1. Short and long term targets for RE technologies
28
3.9.2. Clearly identified thrust areas
28
3.9.3. Single window clearance system
29
3.9.4. Land allocation for RE projects
30
3.9.5. Grid Connectivity
31
3.9.6. Forming joint ventures
33
3.9.7. Green Energy Funds
34
3.9.8. Incentives to be provided to developers
34
4. Assessment of RE potential
35
4.1. Assessing solar energy potential
35
4.1.1. Solar potential assessment methodology
36
4.1.2. Estimating availability of land for installing solar projects
37
4.1.3. Gross solar energy potential in the state of Madhya Pradesh
38
PwC
4.2. Assessing wind energy potential
39
4.2.1. Wind potential assessment methodology
39
4.2.2. Estimating availability of land for installing wind projects
41
4.2.3. Gross wind energy potential in the state of Madhya Pradesh
41
4.3. Assessing biomass energy potential
42
4.3.1. Estimating biomass potential from crop residues
42
4.3.2. Estimating biomass power potential from Lantana Mexicana
43
4.3.3. Gross Biomass potential in the state of Madhya Pradesh
44
4.4. Assessing small hydro energy potential
45
4.4.1. Estimating potential from run of river schemes
45
4.4.2. Estimating potential from canal fall based schemes
45
4.4.3. Estimating potential from dam toe based schemes
45
4.4.4. Self identified small hydro projects
45
4.4.5. Gross small hydro potential in the state
46
4.5. Renewable energy potential in the State of Madhya Pradesh
46
5. Assessment of demand for RE
47
5.1. Methodology adopted for demand forecasting
47
5.1.1. Unrestricted demand projections
47
5.1.2. Forecasting electricity demand
47
5.2. Demand forecasting results for Distribution Licensee
48
5.3. Demand forecast results for Captive Consumers
49
5.4. Aggregate demand forecast for the state
49
5.5. Estimating the demand for RE
50
5.5.1. Solar energy required to meet RPO in the state
50
5.5.2. Non-Solar energy required to meet RPO in the state
52
5.5.3. Gross RE required in the state
52
5.5.4. Capacity additions required
53
6. GHG emission reduction potential in Madhya Pradesh
55
6.1. National context
55
6.2. State context
55
6.3. Estimating emission factor for grid connected RE technologies
56
6.4. Supply sources of energy in India
56
6.5. Ex-ante and Ex-post emission factors
56
6.6. Estimation of emission factor for the electricity system
57
6.6.1. Identifying the relevant electricity system
57
6.6.2. Include off-grid power plants in the project electricity system
57
PwC
10
6.6.3. Select a method to determine the operating margin
58
6.6.4. Calculate the operating margin emission factor according to the selected method
58
6.6.5. Calculate the build margin emission factor
59
6.6.6. Calculate the combined margin emissions factor
59
6.7. Estimated Emission Reduction
59
7. Assessment of RE deployment
62
7.1. Current state of RE deployment
62
7.2. Strong pipeline of RE projects
62
8. Strategic roadmap for up-scaling RE technologies
64
8.1. Roadmap for solar energy
64
8.1.1. Solar energy journey roadmap
64
8.1.2. Current deployment and projected deployment potential by 2020
64
8.1.3. Factors affecting solar energy investment
65
8.1.4. Cross cutting actions
66
8.2. Roadmap for wind energy
70
8.2.1. Wind energy journey roadmap
70
70
8.2.3. Factors affecting wind energy investment
71
72
8.3. Roadmap for biomass energy
76
8.3.1. Biomass energy journey roadmap
76
76
8.3.3. Factors affecting biomass energy investment
76
77
8.4. Roadmap for small hydro projects
80
8.4.1. Small hydro energy journey roadmap
80
80
8.4.3. Factors affecting small hydro energy investment
80
81
9. Financing RE
83
9.1. Financing structures
83
9.2. Types of financing
83
9.2.1. Recourse financing
83
9.2.2. Non-recourse financing
84
9.2.3. Short term financing
84
PwC
11
9.3. Sources of finance
84
9.4. Risks in financing
85
9.4.1. Permits, clearances and consents risk
86
9.4.2. Resource assessment risk
86
9.4.3. Off-taker risk
87
9.4.4. Regulatory risk
88
9.4.5. Project execution risk
89
9.4.6. Technology risk
90
10. Key Recommendations
91
10.1. Bringing investment certainity
91
10.2. Single window clearance system
91
10.3. Land allocation for RE projects
91
10.4. Focus on new formats for up-scaling RE
92
10.5. Provide certainity on resource assessment
93
10.6. Focus on facilitation of infrastructure development
94
10.7. Target funding
95
10.8. Managing investment and project execution risk
95
10.9. Push MPERC, MPPMCL and project developers for action on RE development
96
10.10. Investment promotion
97
11. Monitoring and evaluation framework
98
11.1. Marking primary indicators
98
11.2. Transparency in project monitoring
98
11.3. Actions taken by MPNRED
98
11.4. Feedback from stakeholders
98
11.5. Device future actions
98
Appendix A. - Assessing Wind Energy Potential
99
A.1. Monitoring stations data recorded by CWET in the state of Madhya Pradesh
99
Appendix B. - Assessing Biomass Energy Potential
100
B.1. Potential of biomass from agricultural residues
100
Appendix C. - Assessing Small Hydro Potential
102
C.1. Details of potential canal fall projects in the state of Madhya Pradesh
102
C.2. Details of potential dam toe projects in the state of Madhya Pradesh
104
C.3. Details of potential run of river projects in the state of Madhya Pradesh
106
C.4. Details of self identified sites for SHP Projects in the state of Madhya Pradesh
108
Appendix D. - Demand Analysis
109
PwC
12
D.1. Projecting unrestricted demand
109
D.2. Econometric analysis and projection of independent variables
113
D.3. Demand at MP periphery by Distribution Licensees
119
D.4. Demand at consumer end to be fulfilled by Distribution Licensees
120
D.5. Demand by Captive Consumers
121
D.6. Aggregate demand at the state level at consumer end
122
D.7. Estimated captive consumption
123
D.8. Tariff for different category of consumers in 2013-14
125
D.9. Cumulative capacity for different RETs till 2020
126
D.10. Capacity addition plans for different RE Technologies till 2020.
127
Appendix E. - Projecting Demand of Renewable Energy
128
E.1. Potential incremental demand by HT-industrial and LT-industrial consumers
128
E.2. Solar energy required to meet RPO
129
E.3. Incremental solar energy required to meet RPO
130
E.4. Non-solar energy required to meet RPO
131
E.5. Incremental non-solar energy required to meet RPO
132
E.6. Gross RE required in the state
133
E.7. Incremental demand of RE
134
Appendix F. - Power projects and their specific emissions in NEWNE grid
135
Abbreviations
145
References
148
PwC
13
List of tables
Table 1: Role of Central Agencies .............................................................................................................................. 22
Table 2: Role of State Agencies .................................................................................................................................. 23
Table 3: Extract of relevant sections of EA 2003 ...................................................................................................... 24
Table 4: Extract of national electricity policy ........................................................................................................... 24
Table 5: Extract of national tariff policy .................................................................................................................... 25
Table 6: Extract from NAPCC .................................................................................................................................... 25
Table 7: Key recommendations by FOR .................................................................................................................... 26
Table 8: Review of national policy instruments ....................................................................................................... 27
Table 9: Land allocation committee ........................................................................................................................... 31
Table 10: Incentives under RE policies of Madhya Pradesh .................................................................................... 34
Table 11: Capacity utilization factor in different district of the state ....................................................................... 36
Table 12: Wasteland area suitable for solar power plants (km 2) ............................................................................. 38
Table 13: Solar power potential in the state of Madhya Pradesh (MW) .................................................................. 38
Table 14: Estimated capacity utilisation factor at different locations in the state of Madhya Pradesh ................. 39
Table 15: Comparing location advantage for different states .................................................................................. 40
Table 16: Wasteland area suitable for wind power plants ......................................................................................... 41
Table 17: Wind power potential in the state of Madhya Pradesh (MW) .................................................................. 41
Table 18: Biomass potential from crop residues (MW) ............................................................................................ 43
Table 19: Biomass potential from crop residues across different districts in Madhya Pradesh (MW) ................. 43
Table 20: Area under Lantana Mexicana .................................................................................................................. 43
Table 21: Biomass potential from Lantana Mexicana (MW) ................................................................................... 44
Table 22: Gross biomass potential in the state of Madhya Pradesh ........................................................................ 44
Table 23: Gross small hydro potential in the state of Madhya Pradesh .................................................................. 46
Table 24: Renewable energy potential in the State of Madhya Pradesh ................................................................. 46
Table 25: Solar RPO (in %) ........................................................................................................................................ 50
Table 26: Estimated solar RPO (in %) ....................................................................................................................... 50
Table 27: Non-solar RPO (in %) ................................................................................................................................ 52
Table 28: Estimated non-solar RPO (in %)............................................................................................................... 52
Table 29 Installed capacity by the end of 11th plan ................................................................................................ 56
Table 30: Constituents of NWENE and southern grid ..............................................................................................57
Table 31: Generation by must run sources as percentage of net generation ........................................................... 58
Table 32: CO2 emission factor and Net Electricity Generation (incl. Imports)...................................................... 58
Table 33: Weights of OM and BM used for computing CM ..................................................................................... 59
Table 34: Current deployment of RE projects .......................................................................................................... 62
Table 35: List of active financial institutions ............................................................................................................ 85
Table 36: Historical trend supply hours across categories .................................................................................... 109
Table 37: Proposed future supply hours across categories .................................................................................... 109
Table 38: Assumptions for estimating un-served units in peak and non-peak hours ........................................... 110
Table 39: Assumptions for estimating category wise losses ....................................................................................111
Table 40: EHT losses ..................................................................................................................................................111
Table 41: Assumed HT distribution losses ............................................................................................................... 112
Table 42: Assumed technical losses as a proportion of HT distribution losses ..................................................... 112
Table 43: Result summary for 45 districts ............................................................................................................... 113
Table 44: Population projections (in thousands) .................................................................................................... 115
Table 45: Projected irrigated areas (in km2) ............................................................................................................ 116
Table 46: Tariff projections in pessimistic scenario (in INR/kWh) ....................................................................... 117
Table 47: Tariff projections in realistic scenario (in INR/kWh) ............................................................................. 117
Table 48: Tariff projections in optimistic scenario (in INR/kWh) ......................................................................... 118
Table 49: Rainfall projections (in mm) .................................................................................................................... 118
Table 50: Energy demand at MP periphery by different consumer categories (in MUs) (pessimistic scenario) 119
Table 51: Energy demand at MP periphery by different consumer categories (in MUs) (realistic scenario) ...... 119
PwC
14
Table 52: Energy demand at MP periphery by different consumer categories (in MUs) (optimistic scenario) .. 119
Table 53: Energy demand at consumer end (in MUs) (pessimistic scenario) ...................................................... 120
Table 54: Energy demand at consumer end (in MUs) (realistic scenario) ............................................................ 120
Table 55: Energy demand at consumer end (in MUs) (optimistic scenario) ........................................................ 120
Table 56: Energy demand by captive users (in MUs) .............................................................................................. 121
Table 57: Energy demand at consumer end (in MUs) .............................................................................................122
Table 58: Cumulative capacity under different scenarios .......................................................................................126
Table 59: Capacity addition plan under Scenario 1 ................................................................................................. 127
Table 60: Capacity addition plan under Scenario 2 ................................................................................................ 127
Table 61: Potential incremental demand by HT-industrial and LT-industrial consumers .................................. 128
Table 62: Solar energy required to meet RPO .........................................................................................................129
Table 63: Incremental solar energy required to meet RPO (in MUs) ................................................................... 130
Table 64: Non-solar energy required to meet non-solar RPO ................................................................................ 131
Table 65: Incremental non-solar energy required to meet RPO (in MUs)............................................................. 132
Table 66: Gross RE required in the state (Scenario 1) ......................................................................................... 133
Table 67: Gross RE required in the state (Scenario 2) ......................................................................................... 133
Table 68: Incremental demand of RE year on year (in MUs) (Scenario -1)...........................................................134
Table 69: Incremental demand of RE year on year (in MUs) (Scenario -2) ..........................................................134
PwC
15
List of figures
Figure 1: Annual GHI and DNI map of India............................................................................................................ 35
Figure 2: Monthly GHI variation in Madhya Pradesh ............................................................................................. 35
Figure 3: Monthly DNI variation in Madhya Pradesh .............................................................................................. 36
Figure 4: Hypothetical Equations for each Consumer Category ............................................................................. 48
Figure 5: Energy demand at consumer end fulfilled by Distribution Licensees (in MUs) ..................................... 49
Figure 6: Energy demand by Captive Consumers (in MUs) .................................................................................... 49
Figure 7: Aggregate energy demand at consumer end in the state (in MUs) .......................................................... 50
Figure 8: Solar energy required by Distribution Licensee and Captive Consumers (in MUs)................................ 51
Figure 9: Solar energy required by Distribution Licensee and Captive Consumers (in MUs) ................................ 51
Figure 10: Non-solar energy required by Distribution Licensee and Captive Consumers (in MUs) ..................... 52
Figure 11: Gross RE required in the state by 2020 (in MUs) ................................................................................... 53
Figure 12: Target capacity addition from different technologies by 2020 (in MW) ............................................... 53
Figure 13: Target capacity addition from solar technology (in MW)....................................................................... 54
Figure 14: Target capacity addition from wind technology (in MW) ...................................................................... 54
Figure 15: Target capacity addition from biomass technology (in MW) ................................................................. 54
Figure 16: Target capacity addition from small hydro technology (in MW) ........................................................... 54
Figure 17: Year on Year GHG emission reductions due to solar (000 TCO 2) ........................................................ 60
Figure 18: Year on Year GHG emission reductions due to wind (000 TCO2) ........................................................ 60
Figure 19: Year on Year GHG emission reductions due to biomass (000 TCO2)................................................... 60
Figure 20: Year on Year GHG emission reductions due to small hydro projects (000 TCO 2) ............................... 61
Figure 21: Interest shown by investors in wind and solar projects ......................................................................... 62
Figure 22: Projects under implementation ............................................................................................................... 62
Figure 23: Interest shown by investors in solar projects ......................................................................................... 65
Figure 24: Interest shown by investors in wind projects .......................................................................................... 71
Figure 25: Financers view point ................................................................................................................................ 83
Figure 26: Capital investment by Discoms (INR Crores) ......................................................................................... 88
Figure 27: Estimated captive consumption (in MUs) ............................................................................................. 123
Figure 28: Tariff for different category of consumers in 2013-14 (in INR/kWh) .................................................. 125
PwC
16
Introduction
1. Introduction
1.1. Context
Section 86 (1(e)) of EA 2003 stipulates that the Regulatory Commissions are required to specify
obligations of various entities to procure specific percentage of renewable energy (RE) out of total
consumption of electricity in the area of Distribution Licensee. Madhya Pradesh Electricity
Regulatory Commission (MPERC) in its regulation MPERC- Cogeneration and Generation of
Electricity from Renewable Sources of Energy-2010 has specified the minimum quantum of
purchase of power from solar and non-solar energy sources.
Power sector is the largest contributor to GHG emissions in India. According to GHG emissions
profile of India, power sector contributes 38% of the total GHG emissions of India. According to
Copenhagen Accord, India has committed to reduce its GDP emission intensity by 20-252 percent by
2020. This is possible only if all the sectors in particular the energy intensive sectors reduce their
carbon intensity. The Government of India has prepared National Action Plan on Climate Change to
chart the development path that is economically sustainable. NAPCC targets 15%3 of the total energy
consumption from RE by 2020. Based on targets of NAPCC, the potential demand of RE is estimated
at 207,275 MUs by 2020.
Madhya Pradesh due to its geographical diversity is rich in RE resources Solar, Wind, Biomass and
Small Hydro. The large geographical area coupled with the rising demand for RE stemming from
regulatory obligations makes the state of Madhya Pradesh an attractive investment destination for
development of RE projects. Given the above pretext, the department of New and Renewable Energy
(MPNRED), Government of Madhya Pradesh, has commissioned a study on scale-up plan for grid
connected RE technologies to prepare an action plan for attracting RE investment in the state.
1.2. Study approach

This study primarily relies on the publically available information, national and state planning
documents and research studies supplemented with limited primary data collection and modelling.
Demand for RE
We have adopted the Econometric Model for demand forecasting, as it has been used for long term
electricity demand forecasting across the globe by various regulators and utilities. It takes into
consideration macroeconomic and social factors such as population, GDP, per capita income,
electricity price, employment, and other structural changes in the economy. While projecting the
demand for RE, specific reference were made to the econometric modelling for projecting overall
demand, RPO regulations of the state, targets of RE provided in the NAPCC and target of solar energy
provided in the amended NTP.
Assessment of RE Potential
With an objective to assess the RE potential in the state, the project team deliberated on a
methodology wherein the available datasets in public domain, publications by the state and central
departments and research papers are used along-with analytical tools. In order to estimate the solar
potential in the state, firstly the wasteland area available across the state was aggregated and based
on the reference studies available, only four different categories of land was selected which were
considered to be suitable for solar installation. Thereafter, the RET screen analysis tool was used to
assess potential districts with desirable CUF levels. The sites that were having CUF for more than 18%
were considered for estimating solar energy potential. Thereafter, taking a normative parameter of
48MW/sq.km of area, the solar potential was estimated.
PwC
17
Introduction
In order to estimate the wind power potential in the state, the relevant datasets pertaining to
dynamics of wind power was aggregated from the CWET centres. Also, the wasteland area available
across the state was aggregated and based on the reference studies available, only four different
categories of land was selected which were considered to be suitable for wind installation. Thereafter,
the RET screen analysis tool was used and likely CUF levels thus obtained was mapped against the
districts of the state. Thereafter, taking a normative parameter of 9MW/sq.km of area, the wind
potential was estimated.
For estimating the potential of biomass power potential in the state, agricultural production data
collected from Department of Agriculture, Madhya Pradesh was utilised and a normative crop to
residue ratio was adopted to estimate the residue production in the state. Thereafter, the operational
parameters as prescribed by MPERC with regards to biomass technology were considered and the
biomass power potential in the state was estimated.
With regards to estimation of small hydro power potential in the state, only secondary assessment
was undertaken. The data published by Alternate Hydro Energy Centre (AHEC) was compiled. The
estimation of the power potential by AHEC for small hydro projects was complied for all the schemes
(1) run-of-river, (2) canal based and (3) dam toe projects.
GHG emission reduction potential
There are multiple methodologies available for estimating GHG potential in RE. The relevant tools,
procedures and methodologies that are approved by UNFCCC are used for estimating GHG emission
reduction potential. These methodologies have been thoroughly reviewed and then adopted by
different GHG standards across the world including CDM, voluntary carbon standard, gold standard
and VER+. The Tool to calculate the emission factor for an electricity system was applied for
estimating grid emission factor.
Policy review and strategic roadmap for up-scaling RE technologies
Government has been undertaking the promotion of RE resources through its policies and
legislations. The Electricity Act 2003, National Electricity Policy 2005, National Tariff Policy 2005
and the draft Integrated Energy Policy has laid emphasis on RE. Further, CERC has also notified the
RPO regulations and REC mechanism to create demand from the distribution licenses and the open
access/captive consumers. The Government of Madhya Pradesh through the office of the
commissioner, New and RE department has notified new policies in 2012 for each of the grid
connected RE technology.
The PwC team held specific discussions with the project developers on the fiscal incentives offered by
MPNRED for RE and their future roadmap for various RE resources. Policy framework, fiscal
incentives, excise and custom duty benefits which can provide a fillip to RE investment in India and
are of interest for future investors were studied and analysed.
By making references to the national and state policies, key determinants that impacts the up-scaling
RE projects were identified short and long term targets for RE technologies, clearly identified
thrust areas, single window clearance system, land allocation for RE projects, grid connectivity and
incentives to be provided to developers. PwC undertook gap analysis on each of the identified key
determinants.
Besides undertaking this gap analysis, the PwC team studied the reasons behind the success of
policies, specific business models across RE technologies, their potential for scaling up, current and
new sources of financing which could provide the sector the necessary push and also highlight in
terms of policy, financing and business models the best practices from the specific states. Based on
PwC
18
Introduction
gap analysis, the possible approaches were designed that could be adopted by MPNRED for upscaling the RE technologies.
Financing RE projects
The financing structures that are available in the market to RE project developers have been
analysed. The requirements and risks in recourse financing, non recourse financing and short term
financing have been assessed and presented in this study. The sources of finance that are available to
the RE project developers have been identified. The key risks that are assessed by the financial
institutions while appraising the RE projects have been identified and the possible approaches to
mitigate the same have been presented in this study.
1.3. Limitations of the Study

Demand for RE
Demand for RE is estimated based RPO targets stated by the state regulator and extrapolated
using targets provided under NAPCC. The RE demand can exceed or fall short in case
underlying base demand for power is out of line with estimate. The results presented in the
report are based on the realistic scenario (defined in Chapter 2). In case pessimistic scenario
is followed, the estimated projections will reduce by more than 10%.
The underlying base demand of power is estimated using econometric model. There are
limitations on using the econometric modelling. The energy efficiency measures on supply
and demand side may reduce the requirement of power at the Discom periphery and hence
reduce the overall RPO.
Most of the state regulators have not enforced the RPO. In the absence of strong guiding force
to fulfil the RPO, the overall demand may not peak in line with the requirement.
RE being costly than the conventional energy, the health of the state utility can be a deciding
factor on procurement of RE.
Assessment of RE Potential
The renewable power estimation has been done through building some assumptive premises. While
estimating the power potential of all the available RE technologies namely-wind, solar and biomass
certain variables in the form of assumptions have been considered. This has brought certain
limitations to the study.
The wasteland considered for estimating the solar and wind energy potential are not mutually
exclusive in nature. Hence, land assumed to be suitable for the stated technologies may
overlap with each other.
The wind speed or wind power density data collected from the monitoring stations as well as
the solar insolation data collected for a particular district holds true only for 50km 2 . For the
present study, the wind and solar data thus collected has been assumed to hold constant for
the entire district.
Land required for setting the solar project should have slope less than 3%. However, for the
present analysis regarding estimation of solar potential, 2%of the wasteland is assumed to be
suitable for setting solar power projects. No physical survey has been conducted on the
considered stretch of wasteland to gauge its feature.
PwC
19
Introduction
The data used for assessing solar and wind power is available for western and central regions
of the state. Therefore estimated potential for the state may change on availability of data
from western regions of the state.
The competing use of the agricultural residue as biomass has not been considered while
estimating the biomass power potential and therefore the estimated potential is the maximum
potential that could be achieved if the entire biomass residue from the select crops is directed
toward the power generation.
PwC
20
Rationale for renewable energy promotion
2. Rationale for RE promotion Madhya Pradesh

RE provides opportunity for economic development and employment as well as energy security. In
addition it helps in climate change mitigation. Investments in RE projects provide a set of direct and
indirect economic, social, environmental and technical benefits.
2.1. Huge potential to attract private investment

Renewable energy sector has been quite active in the last few years in attracting private investment in
India. The state of Madhya Pradesh is also endowed with a good RE potential. The state has been
successful in harnessing some potential; however vast RE is still available to get harnessed and has
the potential to attract substantial private investment in the sector.
2.2. Enhanced Energy Security

A review of current energy mix for power projects shows that a majority of the installed capacity in
the state is base on thermal power projects and to some extent on hydro projects. Adopting a wide
array to RE technologies hydro, wind solar and biomass is an effective strategy to hedge against
fluctuating and increasing fossil fuel prices.
2.3. Environmental Benefits

Keeping in mind the fact that most of the installed capacity in Madhya Pradesh is thermal based
power projects, RE can assist in reducing the greenhouse emission to certain extent. Beside carbon
emissions, NOx/ SOx emissions is other downside of conventional energy generation. RE sources
reduce the SOx, NOx emissions (wind, small hydro and solar eliminate these emissions, while
biomass significantly reduces these emissions). This in turn reduces investments for NOx/SOx
mitigation.
2.4. Leads to sustainable development

Promotion of Renewable energy will contribute directly to maintain ecological balance by replacing
conventional energy use and generate additional employment opportunities. The promotion of RE
sources in Madhya Pradesh should be seen from a broader and long term perspective. Today the cost
of generation of RE sources is relatively high. Industry estimates indicate that the commercial
viability of RE generation is expected to improve in the coming days. It is expected that the cost of
generation from RE will be at parity with the conventional generation in future due to technological
advancements.
PwC
21
Institutional and policy review
3. Institutional and policy review

3.1. Institutional arrangement for RE
3.1.1. National level institutional agencies
The role of institutional arrangement is very critical for the promotion of RE in any country. The
Indian RE sector is administered and regulated by the multiple agencies, operating at central and
state level.
Ministry of Power: Ministry of power is responsible for planning, policy formulation, processing of
applications for approval of investments, monitoring, training and administration and enactment of
legislation in regard of hydro and thermal power generation, transmission and distribution. The MoP
is responsible for the formulation of National Electricity Policy and National Electricity Plan, both of
which plays a key role in promoting procurement of RE based power.
Ministry of New and Renewable Energy: MNRE is the nodal ministry for the Government of
India for all matters relating to new and RE. The broad aim of the ministry is to develop and deploy
new and RE for supplementing the energy requirements of the country. The MNRE is responsible for
the policy making for the RE sector at the national level. It is also responsible for facilitating
financing, R&D, coordination, capacity building and overall promotion of the RE sector at the
national level.
The Indian Renewable Energy Development Agency (IREDA): IREDA is a public limited
Government Company established in 1987, under the administrative control of the MNRE to
promote, develop and extend financial assistance for RE and energy efficiency/conservation projects
in India.
The Centre, For Wind Energy Technology (C-WET): Located in Chennai, it has been
established by the MNRE as an autonomous R&D institution. The key activities undertaken by the CWET are testing & certification services, wind resource assessment & capacity building of
stakeholders.
The Solar Energy Centre (SEC): Established in 1982, it is a dedicated unit of the MNRE for
development of solar energy technologies and promoting its applications through product
development.
The CERC: The role of CERC involves developing guidelines on methodologies for the development
of feed in tariffs, developing a mechanism for trading of Renewable Energy Certificates (RECs),
guidelines on open access & inter-state transactions and other guidelines related to promotion of RE
sources in India.
The table below summarizes the existing central level institutional arrangement for undertaking the
functions related to promotion of RE:
Table 1: Role of Central Agencies
Central Government
(MoP/MoF)
MNRE
CERC
Development of National
Electricity Tariff policies which
also focus on RE
Provide fiscal incentives for
promotion of RE
Development of National level

RE Law Technical standards for
RE
Resource Assessment for RE
Support R&D in RE technologies
Effective utilisation of IT for RE,
Guidelines for FIT design for

different RE technologies
Regulation for RE mechanism
Regulations on inter-state Open
Access, Third Party Sale
PwC
22
Central Government
(MoP/MoF)
MNRE
CERC
database management etc.

Review of RE programs to
understand effectiveness and
efficiency
3.1.2. State level institutional agencies

Electricity is a concurrent subject and actual implementation of RE projects depends on state specific
factors such as state RE policies, feed in tariffs, evacuation, facilitation from state nodal agency etc. At
the state level, the state regulator or the State Electricity Regulatory Commissions (SERC), the State
Governments and state nodal agencies (SNAs), also known as the State Renewable Development
Agencies, have been mandated with the promotion and regulation of RE within the state.
State Government: The State Governments can develop the RE policy for the promotion of the RE
in the state. It can provide fiscal incentives, rebates and institutional support for attracting
investment in the RE sector.
State Nodal Agency: The State Nodal Agency is responsible for the development and promotion of
RE technologies at the state level. SNAs need to coordinate with the panchayats, various departments
of the State Government, Research Institutions, Non-Government Organizations and the local people
for implementing schemes and projects of RE in the State.
Madhya Pradesh New and Renewable Energy Department was established by the Government of
Madhya Pradesh as the nodal agency for implementing various programs and policies of the
Government of India as well as the State Government for the RE sector.
The activities extend from implementing various schemes for meeting the energy needs of rural areas
to the promotion and setting up of industrial and commercial projects for the use of non conventional
energy. Besides implementing all Government sponsored programs and projects in this sector,
MPNRED creates awareness about the benefits of RE among users of various forms of energy.
SERCs: The SERCs are responsible for issuing regulatory guidelines including feed in tariff,
renewable purchase obligation, wheeling charges and other guidelines for promotion of RE.
The table below summarizes the existing state level institutional arrangement for undertaking the
functions related to promotion of RE:
Table 2: Role of State Agencies
State Government
State Nodal Agency
SERCs
Development of state level RE

Policy
Provide fiscal incentives for
promotion RE sources
Resource Assessment for various

RE sources
Undertake allocation of RE
projects and project progress
monitoring etc.
Escorting Services
Facilitate clearances, land
acquisition etc.
Create awareness and educate
masses for adoption of RE
FIT Methodology(s) for different

RE technologies
Determination of RPO &
enforcement mechanism
Regulations on intrastate
Wheeling, Open Access, Third

Party Sale
Maintaining database related to

RE sources
PwC
23
3.2. Provisions in Electricity Act, 2003

The Electricity Act 2003 has radically changed legal and regulatory framework for the RE sector. EA
2003 was passed by both houses of Parliament and made effective from June 10, 2003, making it the
single most important piece of legislation for the sector and effectively nullifying all earlier
enactments that governed the electricity businesses. EA 2003 provides for policy formulation by the
Government of India and mandates SERCs to take steps to promote renewable and non-conventional
sources of energy within their area of jurisdiction. Further, EA 2003 has explicitly stated the
formulation of National Electricity Policy (NEP), National Tariff Policy and plan thereof for
development of power systems to ensure optimal utilization of all resources including renewable
sources of energy.
Table 3: Extract of relevant sections of EA 2003
Section 3
The Central Government shall, from time to time, prepare the National
Electricity Policy and tariff policy, in consultation with the State Governments
and the Authority for development of the power system based on optimal
utilization of resources such as coal, natural gas, nuclear substances or
materials, hydro and renewable sources of energy.
Section 4
The Central Government shall, after consultation with the State

Governments,prepare and notify a national policy, permitting stand alone
systems (including those based on renewable sources of energy and nonconventional sources of energy) for rural areas.
Section 61(h)
The Appropriate Commission shall, subject to the provisions of this Act, specify
the terms and conditions for the determination of tariff, and in doing so, shall
be guided by the following, namely:>>>
(h) the promotion of co-generation and generation of electricity from renewable
sources of energy;
>>>
Section 86(1)(e)
The State Commission shall discharge following functions, namely

>>>
(e) promote cogeneration and generation of electricity from renewable sources
of energy by providing suitable measures for connectivity with grid and sale of
electricity to any person, and also specify, for purchase of electricity from such
sources, a percentage of total consumption of electricity in the area of
distribution licensee
>>>
3.3. Provisions in national electricity policy

Significant regulatory developments have taken place since the notification of national electricity
policy by the central Government. Various provisions of these policies reemphasise the need for
harnessing RE generation.
Table 4: Extract of national electricity policy
5.2.20
Feasible potential of non-conventional energy resources, mainly small hydro,

wind and bio-mass would also need to be exploited fully to create additional
power generation capacity. With a view to increase the overall share of
nonconventional energy sources in the electricity mix, efforts will be made to
encourage private sector participation through suitable promotional measures.
5.12.1
Non-conventional sources of energy being the most environment friendly there

is an urgent need to promote generation of electricity based on such sources of
energy. For this purpose, efforts need to be made to reduce the capital cost of
PwC
24
projects based on nonconventional and renewable sources of energy. Cost of

energy can also be reduced by promoting competition within such projects. At
the same time, adequate promotional measures would also have to be taken for
development of technologies and a sustained growth of these sources.
5.12.2
The Electricity Act 2003 provides that co-generation and generation of

electricity from non-conventional sources would be promoted by the SERCs by
providing suitable measures for connectivity with grid and sale of electricity to
any person and also by specifying, for purchase of electricity from such sources,
a percentage of the total consumption of electricity in the area of a distribution
licensee. Such percentage for purchase of power from non-conventional sources
should be made applicable for the tariffs to be determined by the SERCs at the
earliest. Progressively the share of electricity from non-conventional sources
would need to be increased as prescribed by State Electricity Regulatory
Commissions. Such purchase by distribution companies shall be through
competitive bidding process. Considering the fact that it will take some time
before nonconventional technologies compete, in terms of cost, with
conventional sources, the Commission may determine an appropriate
differential in prices to promote these technologies.
3.4. Provisions in national tariff policy

As per national tariff policy, it will take some time before non-conventional technologies can compete
with conventional sources in terms of cost of electricity. Therefore, procurement by distribution
companies may be done at preferential tariffs determined by the appropriate state commission.
Table 5: Extract of national tariff policy
6.4 (1)
the Appropriate Commission shall fix a minimum percentage for purchase of

energy from such sources taking into account availability of such resources in
the region and its impact on retail tariffs....
6.4 (2)
.... Such procurement by Distribution Licensees for future requirement shall be

done as far as possible through competitive bidding process under section 63 of
the Act within the suppliers offering energy from same type of non conventional
sources
3.5. National Action Plan for Climate Change

The National Action Plan for Climate Change (NAPCC), announced by the prime minister of India on
June 30, 2008, envisages several measures to address global warming. One of the important
measures identified involves increasing the share of RE in total electricity consumption. NAPCC has
set the target of 5% RE purchase for FY 2009-10, with increase of 1% in target each year for the next
10 years.
Table 6: Extract from NAPCC
4.2.2
The Electricity Act 2003 and the National Tariff Policy, 2006 provide for both
the Central Electricity Regulatory Commission (CERC) and the State Electricity
Regulatory Commission (SERC) to prescribe a certain percentage of total
power purchase by the grid from renewable based sources. It also prescribes
that a preferential tariff may be followed for renewables based power.
A dynamic minimum renewable purchase standard (DMRPS) may be set, with
escalation each year till a pre-defined level is reached, at which time the
requirements may be revisited. It is suggested that starting 2009-10, the
national renewables standard (excluding hydropower with storage capacity in
excess of daily peaking capacity, or based on agriculture based renewables
sources that are used for human food) may be set at 5% of total grids purchase,
to increase by 1% each year for 10 years. SERCs may set at higher percentages
PwC
25
than this minimum at each point in time.
3.6. National Solar Mission

The Jawaharlal Nehru National Solar Mission is a major initiative of the Government of India with
active participation from states to promote ecologically sustainable growth while addressing energy
security challenge. It will also constitute a major contribution by India to the global effort to meet the
challenges of climate change.
The objective of the Mission is to establish India as a global leader in solar energy, by creating the
policy conditions for its large scale diffusion across the country. The Mission has set a target for
deployment of grid connected solar power capacity of 20,000 MW by 2022 to be achieved in 3
phases1.
The first phase focused on promoting grid-connected solar power capacity addition of 1000 MW
through scheme of bundling with thermal power operated through NVVN for minimizing the
financial burden on Government. In addition to this there was additional 100 MW with GBI support
through IREDA.
In the second phase, further capacity addition of 3,000 MW under central scheme is envisaged. The
projects of 750 MW have already been selected through competitive bidding under the phase 2 batch
1. The PPAs of the selected projects will be signed with the Solar Energy Corporation of India (SECI),
a Government of India enterprise under the administrative control of MNRE. SECI due to backing of
MNRE is ranked high on credit rating and therefore have an edge in comparison to state distribution
utilities.
3.7. Recent initiatives for development of RE

The Forum of Regulators (FOR) constituted under Section 166 of EA 2003, for harmonising the
policies across the regulatory commissions, has published a report Policies on Renewables with the
objective of evolving a common approach to the promotion of renewable sources of energy in the
country as a whole.
Table 7: Key recommendations by FOR
1.
Each State Commission may specify a minimum RPO of 5% in line with the NAPCC. RPO
should be calibrated with regard to the energy input in the system, after adjustment of losses
and not on energy billed.
2. Need for a facilitative framework for grid connectivity and inter-State exchange of power
generated from RE sources.

3. Need to develop Renewable Energy Certificate (REC) mechanism for achieving the RPO targets.
4. Preferential tariff for renewable sources should be specified at least during their loan tenure,
subsequent to which, they should be encouraged to compete amongst themselves.
5.
Generation Based Incentive (GBI) should be declared upfront to enable the Regulatory
Commission to factor it in the tariff determination process.
6. Each State Commission may specify a minimum RPO of 5% in line with the NAPCC. RPO
should be calibrated with regard to the energy input in the system, after adjustment of losses
and not on energy billed.
first phase up to 2012-13, second phase from 2013 to 2017 and the third phase from 2017 to 2022
PwC
26
3.8. National level policy instruments

A review of policies framework across countries indicates that early commercialization of RE
technologies remains dependent on support from the Government. Such facilitating policy
instruments have made RE an economically and commercially viable source of alternative energy.
Over the years, the Government of India has introduced a number of policy initiatives for promoting
RE. Some of these initiatives have been illustrated in the table below. The table captures the key
characteristics of the instruments and the impact of these instruments in the Indian context.
Table 8: Review of national policy instruments
Instrument
Key Characteristics
Indian Experience
Accelarated
depreciation
Aimed at accelerating investment in

emerging RE technologies by tapping
private investors with large disposable
income.
Allows broad basing of investments in
a developing country where fund
mobilization by RE industry alone
might not be adequate.
Preferred instrument to offsets tax
liability against investments that brings
down realised cost of investment.
Acknowledged as the key instrument for

success of wind industry in India - Most
wind installations in India have been
developed under AD.
Focus of investment remains on tax
savings and not on energy generation.
Criticised for facilitating setting up of
wind farms in low wind speed areas
which have failed to deliver targeted
power generation.
Investment in wind sector in India was
dominated by non-IPPs until its
withdrawal.
Production based
incentives
Handholds emerging RE technologies

to establish an early market.
Encourages generation rather than
only capacity installation.
Encourages efficiency in project
selection,
design,
procurement,
implementation and operation. Allows
professional players to emerge and
participate.
Introduced to shift investment focus

from capacity addition to electivity
generation move from capital
subsidies (AD) to generation based
incentive.
Opened up new market prospect for
wind IPPs.
Opened up the market prospect for solar
IPPs but was available only for small
capacity.
Capital subsidy/
Viability gap
funding (VGF)
Meant to encourage development of

capital intensive RE technologies
involving first generation small scale
entrepreneurs.
Gives developers instant cushion to
realise lower capital investment so as
to improveprofitability.
Combined with production incentives,
capital subsidy offers a balanced
approach to enhance financial viability.
Played pivotal role in rolling out and

adoption of expensive RE sources for
rural electrification (solar applications lanterns, home lighting systems, water
heating; all off-grid electrification
projects).
Capital subsides brought in a target
oriented
approach
amongst
the
implementing agencies Absence of
consistent monitoring and O&M
resulted in project failure in terms of
actual generation.
VGF recently adopted by SECI for
selecting solar projects under JNNSM
phase 2 batch 1.
Tax Incentives Exemptions on

Capital
Investments and
The objective of any tax incentive or tax

credit scheme is to allow tax savings on
investments and electricity duties,
which in turn brings down the net costs
Tax exemption instruments such as

exemptions or reductions on excise and
customs duty have been introduced.
The wind energy sector profited from
PwC
27
Instrument
Generation
Key Characteristics
of RE projects.
Indian Experience
this exemption in the 90s as a number
of players imported components for
turbines.
State Government allow exemption of
duties on RE generated power.
Although exemptions bring down the
cost of RE equipment, they do not
usually drive investments on their own.
3.9. State level policy review

State-level RE policies play an important role in attracting investment in the RE sector. A number of
state Governments have developed state level RE policies for the promotion of RE investments (e.g.
Karnataka, Punjab, Rajasthan, Gujarat etc.). These policies prescribe incentives to attract RE
developers to the state through implementation of measures such as single window clearance system,
creation of Green Energy Funds, unambiguous procedures for allocation of RE projects and project
sites, other state level incentives such as relaxation in state taxes, etc. State policies are needed as
they bring clarity on the state policy makers views on the development of the states RE industry to
the investors and financers.
A policy also lists the major incentives, thrust areas and other procedures related to investment in RE
projects in a state. We undertook a review of policies in a few states (Maharashtra, Punjab, Karnataka
and Gujarat etc.) and had consultations with key stakeholders to identify the main issues that the
state of Madhya Pradesh needs to address.
3.9.1. Short and long term targets for RE technologies

There is a need for each state, through its RE policy, to specify the short term and long term target for
all RE technologies (like wind, biomass, solar etc.) in the state. Defining the targets and the measures
to achieve the targets assists in building the confidence of the investors towards the proactive role of
State Government in promotion of RE in the state. A number of states have already identified the
short as well as long term targets for the RE.
Punjabs RE policy has adopted a short and long term target for the RE sector in the state. The
policy clearly defines the objective, targets and measures to achieve the targets. It has set a
target to add 1,000 MW in solar energy, 250 MW in small hydro by 2020, 600 MW in
biomass and 50 MW in municipal solid waste.
Karnataka has targeted to enhance the contribution of RE in the total installed capacity of the
state from 2,400 MW to about 6,600 MW by 2014.
Possible Approaches
The state of Madhya Pradesh does not have clearly identified short term and long term targets in the
policy for RE. RE targets should be specified, which will act as a guiding factor for different
programmes in the state and assist in identification of the specific measures to achieve the targets.
3.9.2. Clearly identified thrust areas

Based on the potential available and the resources available different states have identified the focus
RE technologies. The Punjab RE policy adopted in 2012 clearly specifies the objective, targets, thrust
areas and measures to achieve the targets. The Punjab RE policy has also provided a road map which
clearly specifies the targets and the percentage of total potential for each of the RE technologies needs
to be harnessed. Gujarat has also specified its thrust area i.e. wind and the long term incentives for
PwC
28
wind based power project developers investing in the state. Haryana has put more focus on
harnessing of biomass and bagasse based co-generation.
Possible Approaches
The RE policy for Madhya Pradesh should clearly specify the thrust areas for harnessing RE sources
in the most economic way. The thrust areas can be based on the RE potential available, technology
maturity and other factors impacting the investments.
3.9.3. Single window clearance system

Delay in clearances has been a major hurdle for the development of RE projects. A number of states
have already taken initiatives to overcome these delays.
Punjab: All necessary and applicable approvals/ clearances (viz. Environment, Forest Land,
Pollution Control, Water, Fire & emergency services, use of RE resources and Investment Clearance
etc.) required for a project is considered in a time bound manner within a period of 60 days from the
date of submission of complete application. In case, the concerned department fails to respond within
the stipulated time of 30 days, the cases shall be taken up in the empowered committee. PEDA shall
seek a meeting of the Empowered Committee constituted as under for this purpose within the next 15
days.
Karnataka: The Karnataka Renewable Energy Development Limited (KREDL) will pursue with the
departments and co-ordinate for speedy approvals and clearances within 90 days for all
departments/ agencies and 120 days in case of Forest clearance. The issues pending for longer
periods will be placed before the Quarterly Review Meetings held at the level of the Chief Secretary,
Government of Karnataka. Regarding the lands developed by KREDL, it will obtain all statutory
clearances from different departments before hand and allocate such lands for RE project
development.
Several states have implemented this system but the effectiveness of the system has been questioned.
During our interaction with developers, it was noted that in most states, the developers still need to
follow the file from office to office. The system adopted by Punjab is a robust one as it sets a time
bound target for getting all approvals.
Gap Analysis
Clearance and procedural delays has been pointed as the main factor resulting in the slow investment
in Madhya Pradesh. Some of the key issues related to clearance & procedural delays pointed by
stakeholders are:
The Incentive Policy 2006 for RE has provided for single window clearance facility. However,
not much has been done to institutionalize the same in the revised policies notified in 2012
and 2013.
Capacity building of MPNRED is required to undertake effective implementation of Single

window clearance.
Possible Approaches
Institutionalization of Single Window Clearance provision to be taken as priority. Option of

providing approval for projects with capacity of less than 5 MW by lower rank committee can
be explored.
Need to streamline the process of single window clearance, identify the roles & responsibilities
of all institutions, setting time-bound approval process.
PwC
29
In case, the concerned department fails to respond within the stipulated time (say 45 days),
necessary concurrence/ approval/ clearance to the project should be deemed to have been
granted.
Clearly identifying the requirements/ proofs/ supporting required by different departments

and developing appropriate formats for different technologies. Simplified requirements for
projects of less than 5 MW capacity each can be provided.
Periodical monitoring of the status of clearances for RE projects under review, identifying
issues.
In case, the land is identified by MPNRED for solar and wind parks, it may obtain all statutory
clearances from other relevant departments and allocate such lands for RE Project
development.
3.9.4. Land allocation for RE projects

Availability of land for RE based power projects has been a critical bottleneck for the development of
the projects in a number of states. The responsibility for undertaking land acquisition lies with the
State Government under the Land Acquisition Act and this should ideally be done by the State
Government prior to bidding.
As discussed with stakeholders in the past, RE projects, especially small hydro projects in Himachal
Pradesh and Uttarakhand, take a very long time in acquiring land. Although Himachal Pradesh has
also set up guidelines for land allotment for small hydro projects, land acquisition gets delayed due to
disagreements on price. This has resulted in severe delays and cost overruns across a number of
projects in Himachal Pradesh. The state of Maharashtra has no such policy and developers face a
number of issues with regard to land allotment.
Several states have taken a number of initiatives to overcome the issue of land acquisition/
development for RE projects:
Punjab: Punjab has also laid down clear guidelines for land allotment in the policy. The RE policy
for Punjab states
If Government land is available, then it will be provided on nominal lease rent.
Wherever the land belongs to local bodies/ Gram Panchyats, the State would encourage them
to provide the land for NRSE project on similar terms and conditions.
Agricultural land shall be allowed to be used for setting up of RE power projects in the state
and no conversion charges for the same shall be charged.
Karnataka: Karnataka has recently issued a separate RE policy. Apart from providing facilities for
land acquisition, the state has introduced some new initiatives:
Government to provide land for development of RE Projects under Land Revenue Act to
Karnataka Renewable Energy Development Limited (KREDL).
Amendments to be made in the Karnataka Land Reforms Act to enable the developers to
purchase private land directly from owners of the land.
10% barren Government lands reserved for industrial use at declared RE sites will be given to
KREDL for
developing the land for RE projects
Forest land identified for RE projects would be processed within a period of 4 months.
PwC
30
Identified revenue, private and forest land will be developed by KREDL for setting up of RE
projects.
KREDL will sub-lease the developed land to developer for 30 years. After 30 years the project
stands transferred to Government.
Land-Lease rent will be as per the prime landing rate over current market price on the date of
handing over the projects.
10% of all SEZ lands will be kept at the disposal of KREDL to develop RE projects. Gap
Analysis & Possible Approaches.
Gujarat: Gujarat has set up a special committee to streamline issues related to land allotment.
Table 9: Land allocation committee
1
ACS/ PS/ Secretary (EPD)
Chairman
AS/ JS/ Deputy Secretary (EPD)
Member
Chief Electrical Inspector & Collector of Elect. Duty
Member
General Manager (Comm.), GUVNL
Member
Respective District Collector
Member
Director, GEDA Member
Member Secretary
Madhya Pradesh: The State of Madhya Pradesh through its incentive policy for RE sources has
provided:
Provisions for allocation of Government land to project developers at token value.
50% exemption on stamp duty in case of purchase of private land for RE projects
However, in spite of the guidelines a number of project holders have citied land acquisition as a major
hurdle.
Possible Approaches
Identification of land available for RE projects : Deputy Commissioners of all the districts can
identify the inventory of surplus & unused land available with the State Government, PSUs,
Urban Local Bodies/ Gram Panchayat lands and suitable private waste lands which can be
used for installation of RE projects. The identification exercise can be done periodically.
Identified land for RE projects can be allocated to the MPNRED. The allocated land can be
utilized in the following manner:
o
MPNRED can develop the land, take necessary clearances and allocate the same to the
RE project developers. For this MPNRED can take some service charge.
In case land identified for the project is in forest area, the equivalent area has to be
compensated with compensatory afforestation land. The acquisition of such land takes around
6-8 months. MPNRED may make compensatory afforestation land banks readily available to
the project developers to shorten the implementation timeframe.
3.9.5. Grid Connectivity

One of the major issues faced by RE based developers has been related to the grid connectivity. This
can be mainly attributed to the fact that potential for RE based electricity generation projects,
especially SHP, and wind sources are available in remote locations. Such projects cannot be shifted to
other locations because of their inherent nature of potential availability in a particular location.
PwC
31
These remote locations do not have adequate infrastructure for grid connectivity. As a result the RE
project developers have to incur substantial cost for setting up facilities for evacuation of power
generated from the RE based projects. The suitability of existing local grid infrastructure to accept
additional loads or capacity to provide sufficient reactive power on demand is generally found lacking
in remote areas which further pose a risk to project developers.
Power evacuation will be an integral part of the project. All expenses for power evacuation facility
shall be borne by the unit. Transmission, distribution line and synchronizing equipment required for
installation will be installed by the project developers as per technical details of MPPMCL/ Successor
Company. Maintenance of the above line and equipments shall be done by transmission/distribution
utility at the cost of RE project developer.
Guidelines for grid interfacing specifying responsibility for transmission network development and
sharing of connection costs is very important. This is one of the most important policy directives, as
in a number of states. Evacuation of power is the biggest constraint faced by RE developers. Most
state regulatory commissions have mandated that the responsibility of setting up the adequate
evacuation infrastructure would be of the state transmission utilities. However, it has been observed
that most utilities are severely constrained with paucity of funds to discharge this responsibility
effectively.
States like Maharashtra, Rajasthan provide assistance to RE projects in grid connectivity &
evacuation of power.
Gap Analysis: Our interactions with developers with interest in investment in RE in Madhya
Pradesh suggest that adequate evacuation infrastructure is an important deciding factor for
investment. Following the initiatives in the states of Maharashtra and Rajasthan, Madhya Pradesh
will be able to attract investments by taking suitable steps for creation of appropriate infrastructure
for projects.
There have been cases in the past where RE project developers had to lay transmission line for longer
distance so as to get connected to the grid. This has resulted in increased cost for the developers. The
other major problem has been getting Right of way for laying down the transmission lines. In few
cases, the transmission lines had to pass through forest land and developers had to face problems in
getting clearance from forest department for laying down the transmission lines.
Possible Approaches
MPNRED has prepared a transmission strengthening plan in discussion with MPPTCL at the
locations which are in vicinity of the good solar project sites. MPNRED is making focussed
efforts to push MPPTCL in strengthening the grid infrastructure which is critical to up-scale
the RE investment in the state.
Based on the interest received from the project developers in the RFP process, certain regions
can be identified with higher potential for project development. MPPTCL should establish
pooling points for evacuation of power in such identified regions. It will be cost effective as a
number RE projects can get connected to these pooling points. Such facilities have already
been created in some states (e.g. In Rajasthan, pooling points have been created for WEG
evacuation).
Right of way issues is one of the major concerns of the project developers that may dissuade
the project developers in taking up the projects that are far away from the grid. MPNRED
shall make efforts to push MPPTCL to take responsibility to develop the infrastructure from
the grid sub-station to the pooling sub-station at the cost of the developer.
PwC
32
A coordination committee comprising representatives of MPNRED, MPPTCL and distribution

utilities can be formed to facilitate grid connectivity arrangement to RE projects. It will help
state electricity utilities in considering the future RE projects while developing their network
Report on Green Energy Corridor by PGCIL includes the states of Tamil Nadu, Karnataka,
Andhra Pradesh, Gujarat, Maharashtra, Rajasthan and Himachal Pradesh. Green Energy
Corridor will assist these states in evacuating the power to the other states from the RE sites.
Considering that Madhya Pradesh was able to secure 250 MW in JNNSM phase 2 batch 1,
MPNRED shall make efforts to include Madhya Pradesh to be included in Green Energy
Corridor so that power could be evacuated from the RE sites.
Multilateral and bilateral financing agencies have shown their interest in developing the
transmission infrastructure to up-scale the RE investment. MPNRED may form the
institutional structure and pool other agencies such as MPPTCL that are able to interact with
these funding agencies taking to consideration the capability to manage funds, technical
expertise to develop the transmission system, monitoring and reporting progress.
According to National Clean Energy Fund (NCEF), the projects relating to creation of power
evacuation infrastructure are eligible for funding under the scheme. MPNRED has made an
application to NCEF for funding the power evacuation infrastructure for RE projects in
accordance with the financing plan submitted by MPPTCL.
Green Energy Fund is floated by Maharashtra to support transmission infrastructure. For

Evacuation arrangement of wind energy project, 50% amount is given as a subsidy through
Green Energy Fund. MPNRED may envisage similar mechanism to share the evacuation cost
with the project developer for solar and wind energy projects.
o
Draft modus operandi: Project developers will send the cost details related to
evacuation facility to MPNRED. MNRED will scrutinize the details with the
benchmark/ prudent costs. Based on the validation of the cost estimate, MPNRED will
reimburse (say 50 %) of the expenses incurred by private developers for evacuation
arrangement from Green Energy Fund after the private developer has commissioned
and handed over the evacuation arrangement to concerned distribution
licensee/MPPMCL. The maximum amount that can be reimbursed will depend on the
availability of Green Energy Fund.
3.9.6. Forming joint ventures

The RE sector has seen investment from public oil and gas industry and public power generation
utilities. In discussion with MPNRED, it was informed that Public Sector Utility (PSU) companies
have approached them for developing RE projects. In past PSUs have invested in renewable energy
projects. The investment by the PSUs have been concentrated in wind and solar power projects. Also
the average size of investment by the PSUs is larger than the average size by the private investors.
Possible Approaches
Structuring the JV partnership will require an understanding on various aspects of the project
development. MPNRED may appoint a consultant to prepare the institutional structure and the legal
agreements that are required for JV partnership for developing RE projects.
PwC
33
3.9.7. Green Energy Funds

Green energy funds have used for promotion of RE in different countries. A review of national
experience suggests that Green Energy funds have been quite effective in the development of the RE
projects. The key characteristics of the Green Energy funds are:
Provide low interest loans, fund high risk projects or provide mezzanine financing to new
technologies or projects.
Low cost funds facilitate R&D projects and demonstration projects of high risk/ emerging RE
technologies
Support for development of evacuation infrastructure, access roads etc.
Green Energy Fund is floated by Maharashtra to support transmission infrastructure. For Evacuation
arrangement of solar energy project, 50% amount is given as a subsidy through Green Energy Fund.
There is no such fund operational in the state of Madhya Pradesh.
Possible Approaches
The state may collect the cess and utilizes the same for various activities development of nonconventional energy sources, infrastructure development, power evacuation and study on mapping of
RE resources.
3.9.8. Incentives to be provided to developers

The state of Madhya Pradesh also provided a number of incentives to attract investment in RE sector.
Some of the incentives are detailed below:
Table 10: Incentives under RE policies of Madhya Pradesh
Parameter
Solar
Wind
Biomass
Small hydro
Electricity duty and

cess
Wheeling
Banking
Contract demand
reduction
Third party sale
Industry status
Entry tax / VAT

exemption
Exemption of 50% on
stamp duty on
purchase of private
land
Symbol () means exemption is provided.
PwC
34
Assessment of renewable energy potential
4. Assessment of RE potential
4.1. Assessing solar energy potential
The radiation reaching the earth's surface can be represented in a number of different ways. Global
Horizontal Irradiance3 (GHI) is the total amount of shortwave radiation received from above by a
surface horizontal to the ground. This value is of particular interest to photovoltaic installations and
includes both Direct Normal Irradiance4 (DNI) and Diffuse Horizontal Irradiance5 (DIF), whereas for
solar collectors which are concentrating in nature DNI data is required.
Figure 1: Annual GHI and DNI map of India
GHI and DNI in
KWh/m2/day
>9
8.5-9.0
8.0-8.5
7.5-8.0
7.0-7.5
6.5-7.0
6.0-6.5
5.5-6.0
5.0-5.5
4.5-5.0
4.0-4.5
3.5-3.0
3.0-3.5
2.5-3.0
2.0-2.5
1.5-2.0
Source: MNRE and NREL
For the solar resource assessment, the publicly available solar irradiation data provided by the
National Renewable Energy Laboratory (NREL) and NASA are used. The irradiation information
from the stated sources will be of immense help to solar planners, designers, engineers and RE
analysts in making an initial assessment of a site and estimating returns from a solar project.
As shown from the data and the resource maps, Madhya Pradesh shows peaking seasons with good
solar potential in both summer and winter months. The Monthly GHI and DNI variation, at 10 km
resolution based on hourly estimates of radiation over long term in Madhya Pradesh is used in the
study conducted by MNRE and NREL.
Figure 2: Monthly GHI variation in Madhya Pradesh
Jan
Feb
Mar
Apr
May
Jun
GHI is the total amount of shortwave radiation received from above by a surface horizontal to the ground. This value is of
particular interest to photovoltaic installations and includes both Direct Normal Irradiance (DNI) and Diffuse Horizontal
Irradiance (DIF).
4 DNI is the amount of solar radiation received per unit area by a surface that is always held perpendicular (or normal) to
the rays that come in a straight line from the direction of the sun at its current position in the sky. The amount of irradiance
annually received by a surface can easily be maximized by keeping it normal to incoming radiation. This quantity is of
particular interest to concentrating solar thermal installations and installations that track the position of the sun.
5 DIF is solar radiation that does not arrive on a direct path from the sun, but has been scattered by molecules and particles
in the atmosphere and comes equally from all directions. On a clear day, most of the solar radiation received by a horizontal
surface will be DNI, while on a cloudy day most will be DIF.
3
PwC
35
Jul
Aug
Sep

>9
7.0-7.5
8.5-9.0
6.5-7.0
8.0-8.5
6.0-6.5
7.5-8.0
5.5-6.0
Oct
5.0-5.5
4.5-5.0
4.0-4.5
3.5-3.0
Nov
Dec
3.0-3.5
2.5-3.0
2.0-2.5
1.5-2.0
Figure 3: Monthly DNI variation in Madhya Pradesh

Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec

>9
7.0-7.5
8.5-9.0
6.5-7.0
8.0-8.5
6.0-6.5
7.5-8.0
5.5-6.0
5.0-5.5
4.5-5.0
4.0-4.5
3.5-3.0
3.0-3.5
2.5-3.0
2.0-2.5
1.5-2.0
All units in KWh/m2/day
4.1.1. Solar potential assessment methodology

Solar irradiation data could either be collected through satellite imaging or through ground
measurements. The first source of analysis would be solar irradiation data provided by NASA that has
been measured for more than 20 year period and is based on highly reliable modelling techniques
using information on cloud cover, atmospheric water vapour and gases, and the amount of colloids in
the upper atmosphere. NASA data is represented by a very coarse spatial resolution data and simple
empirical models, thus smoothing-out regional climate patterns. The RET-Screen Photovoltaic
Project Model has been used to evaluate the energy production and estimate the likely capacity
utilisation factor (CUF) that grid connected photovoltaic projects would exhibit when they are
installed in the state.
The algorithms for calculating the energy generated from the solar photovoltaic system based on the
six step methodology. 18
1. Calculate solar radiation in the plane of solar array
2. Calculate energy produced by the solar array
3. Calculate miscellaneous losses such as plant availability, grid availability, cable and wire
losses etc.
4. Estimate inverter efficiency and losses
5. Calculate energy delivered
Table 11: Capacity utilization factor in different district of the state
Districts
Estimated CUF (%)
Bhopal
18.9
Chattarpur
18.8
PwC
36
Districts
Estimated CUF (%)
Chindwara
18.6
Dewas
19.1
Guna
19.0
Gwalior
18.5
Hoshangabad
19.0
Indore
19.2
Jabalpur
18.8
Mandla
18.7
Mandsaur
19.1
Morena
18.6
Neemuch
19.2
Rewa
18.5
Sagar
18.8
Satna
18.6
Seoni
18.6
Shahdol
18.6
Shajapur
19.0
Shivpuri
18.8
Ujjain
19.1
4.1.2. Estimating availability of land for installing solar projects

Solar by virtue of its modular nature possesses the inherent capability to be installed across regions
with diverse and distinct topography. The total geographical area of the state is 308,252 19 km2 while
the waste land area stands at 40,04220 km2.Wasteland area represents 13 % of the total geographical
area of the state. It can be installed on different categories of wasteland. The wasteland categories
used for estimating the potential of solar energy in the state land with dense scrub, land with open
scrub, Under-utilised/degraded forest (scrub domin) and Under-utilised/degraded forest
(Agriculture). By carrying out the analysis to estimate the availability of land for installing solar PV
projects in the state, it is deliberated to source the relevant data from the Wasteland Atlas of India,
200621.
All large PV systems require fairly flat land. There are no official records that are available that
classifies the land based on slope. To account for topology, the assumption of 2% of the total
wasteland area6 is used to estimate the solar potential in the state. The districts which resulted in
CUF of 18% or more are selected for carrying out the analysis for estimating the gross solar potential.
Only 4 classifications of waste land area are used for estimating the potential of solar photovoltaic - land with dense scrub,
land with open scrub, under-utilised/degraded forest (scrub domin) and under-utilised/degraded forest (Agriculture)
6
PwC
37
Table 12: Wasteland area suitable for solar power plants (km2)
District
WL-1
(km2)
WL-2
(km2)
WL-3
(km2)
WL-4
(km2)
Proportion of
WL area used
for estimating
solar power
Total Area used

for estimating
solar power
(km2)
Bhopal
113
144
70
2%
6.54
Chattarpur
148
689
153
155
2%
22.90
Chindwara
127
156
307
2%
11.80
Dewas
66
291
471
2%
16.5
Guna
26
557
198
427
2%
24.16
Gwalior
33
352
459
68
2%
18.24
Hoshangabad
53
113
39
2%
4.10
Indore
103
206
122
2%
8.62
Jabalpur
204
303
39
42
2%
11.75
Mandla
364
404
377
275
2%
28.38
Mandsaur
74
506
124
2%
14.06
Morena
28
306
549
23
2%
18.12
Neemuch
66
376
662
2%
22.07
Rewa
39
286
129
49
2%
10.06
Sagar
323
978
204
42
2%
30.93
Satna
109
406
219
178
2%
18.23
Seoni
62
100
163
2%
6.49
Shahdol
249
533
229
257
2%
25.37
Shajapur
314
477
38
2%
16.59
Shivpuri
63
955
888
186
2%
41.82
373
188
2%
6.54
Ujjain
4.1.3. Gross solar energy potential in the state of Madhya Pradesh

The gross potential of solar energy for given land availability and power density is 17,672 MW.
(
22
Table 13: Solar power potential in the state of Madhya Pradesh (MW)
Potential (MW)
District
> 1,000
Shivpuri, Sagar, Mandla, Shahdol, Guna, Chattarpur, Neemuch
500 to 1,000
Gwalior, Satna, Morena, Shajapur, Dewas, Mandsaur, Chindwara,

Jabalpur, Ujjain
< 500
Rewa, Indore , Bhopal, Seoni, Hoshangabad
PwC
38
4.2. Assessing wind energy potential

The Wind Resource Assessment Programme is being implemented in the country through the Centre
for Wind Energy Technology (C-WET), an autonomous institution of MNRE and associated Nodal
Agencies. The data for Wind Resource Assessment is collected from about 124423 wind monitoring
stations installed in 3124 states and Union Territories. According to CWET, the wind power potential
in India at 50 m hub-height is estimated to be 49,13025 MW and at 80 m hub-height is estimated to
be 1,02,78826 MW. The estimate of wind potential by CWET is based on assumption that 2%27 of the
total land availability for wind power generation in the potential areas. However the state of Madhya
Pradesh has very low population density and large proportion of wastelands that could be utilised by
wind power projects. The land availability for wind power projects in the state of Madhya Pradesh is
substantially higher than estimated by CWET on pan India basis7. Therefore potential of wind power
in the state is reassessed based on actual land availability in the state for wind power projects.
4.2.1. Wind potential assessment methodology

The wind resource is a critical variable in determining the economic potential of the wind project.
Wind speed varies with the season and time of day. The wind data is collected on average annual
wind speed, frequency distribution of the wind at various speeds and wind shear 8. Wind speed and
wind density data could either be collected through satellite imaging or through ground
measurements. For the wind resource assessment in this study, the data recorded by wind monitoring
stations928 installed by CWET have been used. The data from CWET is used in the RETScreen model
to produce the results. RET-Screen calculates the unadjusted energy production from the wind
turbines. It is the energy that one or more wind turbines will produce at standard conditions of
temperature and atmospheric pressure. The calculation of gross energy generated energy is based on
the energy production curve of the selected wind turbine at the average wind speed at a specific hub
height for the proposed site. After calculating gross energy production, the RET-Screen Wind Energy
Project Model calculates the RE delivered to the electricity grid, taking into account array losses,
airfoil losses, downtime losses and the miscellaneous losses. Basis on this approach, the likely CUF at
3529 locations of Madhya Pradesh has been estimated. The locations with CUF of greater than 18% are
provided in Table 14.
Table 14: Estimated capacity utilisation factor at different locations in the state of Madhya
Pradesh
Estimated CUF (%)
Site
District
> 25%
Kukru
Betul
Nagda
Dewas
Vallyarpani
Badwani
Jamgodrani
Dewas
Mahuriya
Shajapur
Mirzapur
Sehore
Kheda
Dhar
Chorasia Badhalia
Ratlam
20-25%
As per discussion with MPNRED, it was informed that land availability can be considered more than estimates of CWET as
state is sparsely populated and has huge proportion of land as waste land.
8 Wind shear is Wind shear is quantified as the exponent in the Power Law equation that relates wind speeds at two
different heights
9 For details refer to Appendix B1.
7
PwC
39
Estimated CUF (%)
18-20 %
Site
District
Bodhina
Ratlam
Baroli
Indore
Tanoriya
Shajapur
Chorasia Badhalia
Ratlam
Sodang Hill
Ujjain
Sendhva
Badwani
Machla
Indore
Belma
Indore
A lot
Ratlam
Mamatkheda
Ratlam
Lahori
Shajapur
For a specific project developer, wind power projects are expected to have minimal variation in
capital cost, debt equity ratio, depreciation, operation and maintenance and tax structure across the
locations. The propensity of the developer to select the site for wind project development will
therefore depend on the tariff and the estimated CUF. In order to maximise the return, the product of
CUF and the tariff (T) is an important Factor (F = CUF*T) in deciding the location for project
implementation. For the higher value of Factor (F), ceteris paribus, the project returns for the wind
project developer will be higher.
In fact, according to the stated analysis, the state of Madhya Pradesh shall provide highest returns to
the wind project developers. The average value of Factor (F) is 1.06 in the states other than Madhya
Pradesh. At a tariff approved by MPERC for wind power projects in its order dated March 26, 2013,
the CUF of 20% returns a value of 1.18 for Factor (F). Considering this, after making an assessment
on CUF for different sites, the wind sites that are having CUF greater than 18% 10 are considered for
assessment of gross potential. The stated restriction is imposed to assess the potential that is
economically and financially feasible.
Table 15: Comparing location advantage for different states
CUF (%)
Tariff
(INR/KWh)
Factor (F)
All regions
20.00%
5.92
1.18
APERC
All regions
24.50%
4.70
1.15
Rajasthan
RERC
Jaisalmer,
Jodhpur and
Barmer
21.00%
5.46
1.15
Rajasthan
RERC
Other regions
20.00%
5.73
1.15
Maharashtra
MERC
Zone - 1
20.00%
5.81
1.16
Maharashtra
MERC
Zone - 2
23.00%
5.05
1.16
Maharashtra
MERC
Zone - 3
27.00%
4.31
1.16
Maharashtra
MERC
Zone - 4
30.00%
3.88
1.16
Regulatory
Commission
Region
Madhya Pradesh
MPERC
Andhra Pradesh
State
10
CUF of 18% at tariff of 5.92 gives a return value of 1.06 for a factor (F)
PwC
40
CUF (%)
Tariff
(INR/KWh)
Factor (F)
All regions
24.00%
4.23
1.02
KERC
All regions
26.50%
3.70
0.98
TNERC
All regions
27.15%
3.51
0.95
Regulatory
Commission
Region
Gujarat
GERC
Karnataka
State
Tamil Nadu
4.2.2. Estimating availability of land for installing wind projects

The total geographical area of the state of Madhya Pradesh is 308,25230 km2 out of which waste land
area is 40,04231 km2. Wasteland area represents 13 % of the total geographical area of the state. Four
wasteland categories are used for estimating the potential of wind energy land with dense scrub,
land with open scrub, under-utilised/degraded forest (scrub domin) and under-utilised/degraded
forest (Agriculture). Out of the total wasteland from the stated categories, only 45% of the land may
be suitable for putting wind turbines. Therefore, only 45% of wasteland area has been used for the
analysis.
Table 16: Wasteland area suitable for wind power plants
District
Total
land
area
(km2)
WL111
(km2)
WL-2
(km2)
WL-3
(km2)
WL-4
(km2)
Total
WL12
area
(km2)
Proportion
WL of
Total land
area (%)
WL used
for
estimating
wind
potential
(%)
Total area
used for
estimating
wind
potential
(%)
Betul
10,043
16
22
20
57
1%
45%
0.45%
Badwani
5,422
14
314
301
630
12%
45%
5.40%
Dewas
7,020
30
131
212
372
7%
45%
3.15%
Dhar
8,153
22
80
42
144
5%
45%
2.25%
Indore
3,898
46
93
55
194
8%
45%
3.60%
Ujjain
6,091
56
28
85
3%
45%
1.35%
Ratlam
4,861
66
101
56
223
3%
45%
1.35%
Sehore
6,578
15
36
42
94
2%
45%
0.90%
Shajapur
6,196
141
215
17
373
2%
45%
0.90%
4.2.3. Gross wind energy potential in the state of Madhya Pradesh

The gross potential of wind energy for given land availability and power density is 19,550 MW.
(
32
Table 17: Wind power potential in the state of Madhya Pradesh (MW)
Gross potential (MW)
District
> 1,500
Sendhva(Badwani), Vallyarpani (Badwani), Jamgodrani (Dewas),

Nagda (Dewas)
1,000-1,500
Kheda (Dhar), Lahori (Shajapur), Mahuriya (Shajapur), Tanoriya
Two filters applied (1) WL reduced prorate on number of wind masts producing CUF of more than 18% and (2) Only
45% of the WL passing filter 1 is used for estimating capacity.
12 Total WL area represents the sum of WL-1, WL-2, WL-3 and WL-4.
11
PwC
41
Gross potential (MW)
District
(Shajapur)
1,500-1,000
Mirzapur (Sehore), Sodang Hill (Ujjain)
1,000 1,500
Dhar, Shajapur
< 500
Baroli (Indore), Belma (Indore), Machla (Indore), Kukru (Betul),

Alot (Ratlam), Bodhina (Ratlam), Chorasia (Ratlam), Badhalia
(Ratlam), Mamatkheda (Ratlam)
4.3. Assessing biomass energy potential

Biomass includes agricultural and forest residues as well as organic household and industrial wastes.
MNRE estimates that the surplus biomass that is potentially available for power generation could
support roughly 3333 GW of installed capacity in India. In addition to this, MNRE estimates that there
is a potential of about 15 34 GW using cogeneration 13 in various industries including sugar mills,
breweries, textile mills, distilleries, fertilizer plants, pulp and paper mill, and rice mills.
Biomass resources are used for power generation through three general applications: grid-connected
biomass power plants, off-grid distributed biomass power and cogeneration via sugar mill and other
industries.
Grid-connected
biomass power plants
Cogeneration
Bagasse and Non-bagasse
Off-grid/distributed
biomass power applications
Power
generation
through
biomass
4.3.1. Estimating biomass potential from crop residues

The state of Madhya Pradesh has witnessed a strong growth in crop productions in the last few years.
Therefore the availability of biomass is increasing year on year. However, as a conservative estimate
the potential for biomass is computed based on the most recent estimate without counting for
increase in production in the coming years. The major crops35 in the state of Madhya Pradesh are
Wheat, Jowar, Bajra, Maize, Gram and Moong. The residue ratio of each of these crops is considered
for estimating the biomass potential from crop residues. The data for crop residues was collected
from the Department of Agriculture (DOA), Madhya Pradesh. One of the limitations of the study is
that the competing use of the biomass is not considered while estimating the biomass potential.
The calorific value for each biomass residue is taken from various public sources to estimate the
energy available from crop residues. Further for assessing the potential, CUF is assumed to be 70%36
Cogeneration plants are mainly found in the sugar industry where the heat and electricity is used for sugar production and
the power surplus is typically sold to the grid.
13
PwC
42
and efficiency of the biomass projects is assumed to be 23%37. Based on this analysis, the potential
from agricultural biomass works out to be 1,255 MW.
Table 18: Biomass potential from crop residues (MW)
Crop
Type of
residue
Total crop
production
38 ('000
tonnes)
Crop to
residue
ratio39
Collection
efficiency
40
Calorific
value
(kcal/kg)
Moisture
content41
(%)
Biomass
potential
14 (MW)
Bajra
Bajra Stalks
384
1:2
60%
3,95042
20%
21
Gram
Gram Straw
3,812
1:1
60%
3,81043
20%
152
Jowar
Jowar Stalk
543
1:4
60%
4,46044
20%
40
Maize
Maize Stalks
2,400
1:2
60%
3,85045
20%
128
Moong
Moong Husk
35
1:2
60%
4,10046
20%
Paddy
Paddy Straw
3,022
1:2
60%
3,00047
10%
143
Wheat
Wheat Husk
16,125
2:3
60%
3,80048
20%
769
Total
1,25515
Table 19: Biomass potential from crop residues across different districts in Madhya Pradesh
(MW)
Potential (MW)
Districts
>50
Chindwara and Hoshangabad
40-50
Raisen and Dhar
30-40
Rewa, Ujjain, Seoni, Dewas, Satna, Rajgarh, Sagar, Sehore and Badwani
20-30
Vidisha, Betul, Indore, Harda, Morena, Gwalior, Shivpuri, Bhind,

Jabalpur, Guna, Balaghat, Ashoknagar, Ratlam, Chattarpur, Khargone,
Shajapur, Mandsaur, Sheopur, Khandwa, Tikamgarh and Datia
10-20
Narsinghpur, Katni, Damoh, Singroli, Shadol, Sidhi, Panna, Neemuch,

Bhopal, Jhabua and Dindori
0-10
Alirajpur, Anuppur, Mandla, Umaria and Burhanpur
4.3.2. Estimating biomass power potential from Lantana Mexicana

The state of Madhya Pradesh houses over 7600049 km2 of forest cover which is 24.66%50 of its total
geographical area. In terms of forestry biomass, the only biomass that is considered for assessing the
biomass potential is Lantana Mexicana. The data on forest covered by LM was collected from
Department of forest (DOF), GOMP.
Table 20: Area under Lantana Mexicana
District
Area under Lantana51

(Hectares)
Alirajpur
1,080
Ashoknagar
7,535
Chindwara
14
15
100,500
Biomass potential is calculated at 70% PLF and efficiency of 23% approved by MPERC.
Refer to Appendix C1
PwC
43
District
Area under Lantana51

(Hectares)
Dewas
180,211
Dhar
1,065
Hoshangabad
13,510
Jhabua
3,650
Khargone
1,495
Mandsaur
15,378
Raisen
2,000
Ratlam
3,939
Sagar
4,352
Sehore
1,434
Shahdol
15,288
Shajapur
1,775
Shivpuri
7,500
Vidisha
2,280
Total
363,473
DOF revealed that there are no technical estimates on annual yield of LM. However, on rough basis,
DOF informed that a yield of 452 tonnes per hectare on dry basis can be used to compute the biomass
potential from LM. Also, the technical estimate of calorific value of LM is not known. Therefore the
estimate of biomass potential from LM is based on requirement of 7,00053 tonnes/annum of biomass
for each MW of biomass potential. Based on this analysis, the potential from Lantana Mexicana
works out to be 207 MW.
Table 21: Biomass potential from Lantana Mexicana (MW)
Biomass Potential
(MW)
District
>100
Dewas
>50
Chindwara
< 10
Alirajpur, Ashoknagar, Dhar, Hoshangabad, Jhabua, Khargone, Mandsaur, Raisen,

Ratlam, Sagar, Sehore, Shahdol, Shajapur, Shivpuri, Vidisha
4.3.3. Gross Biomass potential in the state of Madhya Pradesh

The total biomass potential in the state of Madhya Pradesh has been tabulated below:
Table 22: Gross biomass potential in the state of Madhya Pradesh
Biomass Feedstock
Biomass potential from crop residue
Biomass potential from Lantana Mexicana
Total
Potential
(MW)
1,255
207
1,462
PwC
44
The potential from co-generation, minor crops and forestry residues other than LM has not been
assessed in this report which may increase the total biomass potential in the state.
4.4. Assessing small hydro energy potential

The identified small-hydro potential for the state of Madhya Pradesh as specified by MNRE is 82054
MW. Mode of operation of Small Hydropower plant can be distinguished based on water flow
Run-of the- river schemes

Canal fall based scheme
Dam-toe based scheme
4.4.1. Estimating potential from run of river schemes

These schemes are normally on hilly streams comprising diversion structures (small dam/weir).
These schemes have limitations of flows as small hilly streams are generally not perennial. The non
perennial streams have very wide flow variations throughout the year. Substantial storage cannot be
economically developed in such streams as a result of which availability of power during lean months
may be relatively very small.
As per the estimates of Alternate Hydro Energy Centre (AHEC), the potential of power generation by
Run-of-River sites in Madhya Pradesh is 12255 MW.
4.4.2. Estimating potential from canal fall based schemes

These schemes utilise the water fall on irrigation canal to generate power. The head available for
power generation in such schemes is in range of 3 to 856 meters. The powerhouse in such schemes is
located in the bypass channel, which takes off from the main irrigation canal constructed adjacent to
the fall structure in the upstream. The discharge from the powerhouse is fed back to the irrigation
canal in the downstream. The irrigation canals have a number of fall structures along its lengths. In
order to achieve the desired levels of the command area, its flow is diverted for irrigation. In some
case, these falls could at close intervals, in such cases it might be economical to combine two or three
falls and provide a single powerhouse to utilise the combined head.
As per the estimates of AHEC, the potential for power generation on canal fall sites in Madhya
Pradesh is 3057 MW.
4.4.3. Estimating potential from dam toe based schemes

These schemes utilise the head of an existing dam or barrage located in the dam. The water from the
reservoir behind the dam can be drawn through the existing irrigation vents or by a separate intake.
The choice regarding either a channel or tunnel for the water conductor depends on topographical
and geotechnical considerations.
As per the estimates of AHEC, the potential for power generation on dam toe sites of Madhya Pradesh
is 4158 MW.
4.4.4. Self identified small hydro projects

Self identified sites are unadvertised project sites for which a particular entity comes up with the
proposal and the Nodal Agency proceeds to examine the feasibility of the site for setting up a Hydro
Power Project while determining the optimum power potential that can be harnessed. Till date, there
PwC
45
are 74 sites which have been identified by prospective developers to set up the hydro power project.
The established potential of the above mentioned sites is 218MW16
4.4.5. Gross small hydro potential in the state

The total small hydro potential in the state of Madhya Pradesh under various schemes of small hydro
power has been tabulated below:
Table 23: Gross small hydro potential in the state of Madhya Pradesh17
Type of Small Hydro Scheme
Potential (MW)
SHP potential for run-of-river scheme
122
SHP potential for canal fall based schemes
30
SHP potential for dam toe based schemes
41
SHP potential for self identified sites
218
Total
411
Madhya Pradesh state is rich in water resources. There are number of rivers that flow through the
state of Madhya Pradesh - Narmada, Mahanadi, Godavari, Tapi, Mahi, Chambal, Betwa, Ken and Son.
As part from these are number of tributaries of Ganga and Yamuna that originates or merge in the
state of Madhya Pradesh. Limited number of studies has been undertaken to assess the hydro
potential in the state. Given the number of rivers and the tributaries that flow through the state, there
is a need to commission separate study to understand and unlock the technical potential of small
hydro projects.
4.5. Renewable energy potential in the State of Madhya Pradesh

The gross RE potential in Madhya Pradesh has been tabulated below:
Table 24: Renewable energy potential in the State of Madhya Pradesh
Renewable Energy Technology
Potential (MW)
Solar
17,672
Wind
19,550
Biomass
Small Hydro
Total
16
17
1,462
411
39,095
For details refer appendix D.4

For details refer appendix A.4
PwC
46
Demand for renewable energy
5. Assessment of demand for RE

5.1. Methodology adopted for demand forecasting
We have adopted the econometric model for demand forecasting, as it has been used for long term
electricity demand forecasting across the globe by various regulators and utilities. It takes into
consideration macroeconomic and social factors such as population, GDP, per capita income,
electricity price, employment, and other structural changes in the economy. It is based on the
assumption that there exists a long term equilibrium relationship among these economic variables.
As the effect of these variables are most pronounced in Domestic, Non Domestic, LT Irrigation and
Industrial categories, econometric model is commonly used to estimate electricity demand for these
categories.
The advantages of econometric modelling are that it provides detailed information on future levels of
electricity demand, why future electricity demand increases or decreases by establishing how
electricity demand is affected by various factors and conditions. Meanwhile, the main constraint of
econometric modelling is that the accuracy of electricity demand forecast will depend upon how
accurately the independent variables in the regression equation can be determined and how will the
chosen independent variables actual behave during the forecasting period.
5.1.1. Unrestricted demand projections

The proposed methodology takes into account, category wise hourly average consumption to compute
restricted daily consumption. The restricted daily consumption is extrapolated to calculate
unrestricted daily consumption taking to consideration the variation due to seasons, peak and non
peak hours and un-served units due to load shedding. The unrestricted consumption is then adjusted
for losses to derive category wise unrestricted demand units. The methodology to calculate
unrestricted demand units is detailed in appendix D.1.
5.1.2. Forecasting electricity demand

Step by step procedure is adopted for forecasting electricity demand.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Compile District wise Restricted sales

Convert restricted sales into unrestricted demand through unrestricted sales & losses for each district
Select demand factors
Calculate correlations between demand and the factors affecting demand
Reject the factors which are not highly correlated with demand
Form a linear function with electricity demand (dependent variable) & all other parameters
(independent variable)
Run regression on the linear equation
Test for the significance
Choose significant variables (within 95% confidence interval) & drop insignificant variables
Re-run linear regression with significant variables & derive final coefficients & again test for
significance
Use the equation to forecast the demand
For cases where test is insignificant, determine demand using alternate approach
After due analysis and consideration of various economic variables, the six independent variables
have been considered in the Econometric model for forecasting electricity demand.
1.
2.
3.
4.
5.
6.
Population growth
Income
GDP
Electricity tariff
Gross irrigated area
Rainfall data
PwC
47
We have conducted a similar analysis for all categories with all the aforementioned demand factors to
establish clear linkages between category-wise demand and factors influencing demand.
Figure 4: Hypothetical Equations for each Consumer Category
Domestic
Ed= N + Ep + Y +HH
+PC+
where
Ed=Domestic Electricity
demand
N=Population Growth
Y=Per Capita GDP (at
constant prices)
Ep=Electricity Tariff
HH=Average Household
Size
PC=Paying Capacity of the
Consumer Class
and , , , and are
constants
= error term
Commercial
Ec= N +Ep + Y +PC +
where
Ec=Commercial Electricity
demand
N=Population Growth
Y=GDP (at constant prices)
PC=Paying Capacity of the
Consumer Class
and , , , are constants
=error term
Industry HT
Eiht= N + Ep + Y + IG + CP +
where
Eiht= HT Industry Demand
N=Population Growth
Y=Per Capita GDP (at constant prices)
IG=Industrial Growth Rate
CP=Cropping Patterns
and , , , and are constants
= error term
Agriculture
Industry LT
Ea= N + Ep + Y + AP
+ CP+ M + where
Ea= Agriculture Electricity
demand
N=Population Growth
constant prices)
AP= Agricultural Policy
CP= Cropping Pattern
M=Seasonal Variation due
to Metereological Data
and , , , , and are
constants
= error term
Public WW & Street Lighting

Es= N +
where
Es=Street Lighting demand
N=Population Growth
and is a constant
= error term
Eilt= N + Ep + Y + IG
+
where
Eilt= Industry LT
Electricity demand
N=Population Growth
constant prices)
and , , and are
constants
= error term
Railway Traction
Er= N + Ep + Y + IG + where
Er= Railway demand
N=Population Growth
Y=Per Capita GDP (at constant prices)
and , , and are constants
= error term
As the regression equation is a function of various independent variables, the dependent variable can
be established only if values of all the relevant factors i.e. independent variables are known. Hence to
estimate the future value of the dependent variable, the future values of the independent variables are
required to be determined. Therefore, estimates of the dependent variable for the forecasted period is
obtained by using forecasted series of independent variables with the functional equation derived
earlier. The forecasting results for each independent variable are provided in appendix D.2.
5.2. Demand forecasting results for Distribution Licensee

In order to arrive at the demand of energy at consumer end, it is required to forecast unrestricted
demand for each consumer category at the MP periphery level (refer appendix D.3). Section 86 (1(e))
of EA 2003 stipulates that the Regulatory Commissions are required to specify obligations of various
entities to procure specific percentage of RE out of total consumption of electricity in the area of
Distribution Licensee.
Section 86 (1(e)) of EA 2003
The State Commission shall discharge following functions, namely promote cogeneration and
generation of electricity from renewable sources of energy by providing suitable measures for
connectivity with grid and sale of electricity to any person, and also specify, for purchase of
electricity from such sources, a percentage of total consumption of electricity in the area of
PwC
48
Distribution Licensee.
Figure 5: Energy demand at consumer end fulfilled by Distribution Licensees45 (in MUs)
2019-20
77,063
2018-19
72,168
2017-18
67,545
Optimist scenario
2016-17
63,250
2015-16
Realistic scenario
Pessimist scenario
57,765
2014-15
52,356
2013-14
47,406
10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000
5.3. Demand forecast results for Captive Consumers

There are more than 50 captive power plants1846 installed by the industrial consumers in the state.
The captive generation has increased from 3,70247 MUs in 2008-09 to 3,42048 MUs in 2013-14 at a
CAGR of 3.64%. The demand for captive users is extrapolated using straight line method.
Figure 6: Energy demand by Captive Consumers (in MUs)
2019-20
4,393
2018-19
4,238
2017-18
4,089
2016-17
3,946
2015-16
Consumption by captive consumers
3,807
2014-15
3,673
2013-14
3,544
1,000
2,000
3,000
4,000
5,000
5.4. Aggregate demand forecast for the state

Total demand of energy in the state is summation of energy demand by the Distribution Licensees,
captive users and the open access consumers. The aggregate demand in the state at the consumer end
increases from 50,950 MUs to 81,456 MUs from 2013-14 to 2019-20.
For the purpose of estimating the RE demand on account of RPO, the realistic case has been
assumed.
18
Refer appendix D.7 for details
PwC
49
Figure 7: Aggregate energy demand at consumer end in the state (in MUs)
2019-20
81,456
2018-19
76,406
2017-18
71,634
Optimist scenario
2016-17
67,196
2015-16
Realistic scenario
Pessimist scenario
61,572
2014-15
56,029
2013-14
50,950
20,000
40,000
60,000
80,000
100,000
5.5. Estimating the demand for RE

The RPO regulation of the state mandates that certain percentage of energy that must be procured
from Solar and Non-Solar technologies. Therefore this chapter will assess the demand separately of
Solar and Non-Solar energy.
Apart from RPO, there are few categories of consumers such as open access, captive, HT-industries
and LT-industries that are at high end of the cost curve49 due to high cost of generation/tariff charged
to them. As per RE policies notified by GoMP, the wheeling and banking is allowed from RE
technologies at the preferential rates50 along with the demand reduction. This chapter will explore the
possibilities to target these consumers and the demand that may be generated from these set of
consumers due to the introduction of policies to promote RE.
5.5.1. Solar energy required to meet RPO in the state

The state of Madhya Pradesh is endowed with solar radiation in range of 5.60 to 6.2051 kWh/m2/day.
The demand of solar energy is estimated for Distribution Licensees, Captive Consumers and open
access consumers to meet their RPO.
Madhya Pradesh Electricity Regulatory Commission (MPERC) in its Regulation MPERCCogeneration and Generation of Electricity from Renewable Sources of Energy-2010 has specified
the minimum quantum of purchase (in %) from solar energy during the period of 2010 to 2015.
Amended Tariff Policy, 2011 mandates 3% of the total energy consumption from solar generation
sources by 2022. Based on straight line method, the projection of solar RPO in the state works out to
be 2.43% by 2020.
Table 25: Solar RPO (in %)
Year
Table 26: Estimated solar RPO (in %)

Solar (%)
Year
Solar (%)
2010-11
2015-16
1.29
2011-12
0.40
2016-17
1.57
2012-13
0.60
2017-18
1.86
2013-14
0.80
2018-19
2.14
2014-15
1.00
2019-20
2.43
PwC
50
The RPO target is applicable to all the consumers including Distribution Licensees, open access
consumers and Captive Consumers. The Distribution Licensees are biggest obligated entities as they
supply majority of the power to the consumers. A small proportion of the consumers procure power
using open access in the state from the traders/power exchange/bilateral transactions. From the data
of SLDC, it can be concluded that the open access consumers form less than 2% of the total energy
consumption of the state. The study therefore dropped to access the demand from open access
consumers. The historical data for consumption of electricity by Captive Consumers in the state was
taken from the electrical inspectorate and extrapolated till 2020 using CAGR method to estimate the
captive consumption in the state (refer Appendix E. - Projecting Demand of Renewable Energy).
Based on the energy consumption by the Distribution Licensees and the Captive Consumers, the
energy required to meet the solar RPO is estimated.
Figure 8: Solar energy required by Distribution Licensee and Captive Consumers 19 (in MUs)
Scenario 1
Scenario 2
2019-20
1,873
2018-19
107
1,544
2017-18
2016-17
2015-16
745
2014-15
524
2013-14
379
500
1,000
1,500
2,000 2,500
49
512
2013-14
28
62
720
2014-15
37
76
952
2015-16
49
91
1,196
2016-17
62
107
1,460
2017-18
76
993
1,759
2018-19
91
1,256
2019-20
37
375
28
500
1,000
1,500
Solar energy required by DL
Solar energy required by CC
2,000
Figure 9: Solar energy required by Distribution Licensee and Captive Consumers 20 (in MUs)
Scenario 1
Scenario 2
2019-20
1,873
2018-19
1,544
2017-18
2015-16
2014-15
524
2013-14
379
20
500
1,000
1,500
2,000 2,500
62
720
49
512
2013-14
28
76
952
2014-15
37
91
1,196
2015-16
49
107
1,460
2016-17
62
745
1,759
2017-18
76
993
2019-20
2018-19
91
1,256
2016-17
19
107
375
37
28
500
1,000
1,500
2,000
Refer appendix E.2 for details

PwC
51
5.5.2. Non-Solar energy required to meet RPO in the state

National Action Plan for Climate Change (NAPCC) targets to achieve 15% of energy mix RE by 2020.
MPERC regulation mandates the specific percentage to be purchased from non-solar sources of
energy for the period from 2010-11 to 2014-15. The estimation of the non-solar RPO targets till 201920 has been done based on the targets provided in NAPCC. In the earlier section the solar energy
required is estimated at 2.43% of the total energy consumption by 2020. Therefore expected demand
of non-solar energy based on straight line method is 12.57% of the total energy consumption by 2020.
Table 27: Non-solar RPO (in %)
Table 28: Estimated non-solar RPO (in %)
Year
Year
Non-solar (%)
2010-11
Non-solar (%)
0.8
2015-16
7.31
2011-12
2.10
2016-17
8.63
2012-13
3.40
2017-18
9.94
2013-14
4.70
2018-19
11.26
2014-15
6.00
2019-20
12.57
Madhya Pradesh is 2nd largest state66 in terms of geographical area with good RE potential from wind,
biomass and small hydro. The tariff approved by the state regulatory commission is highest among all
the states having RE potential in wind, biomass and small hydro. Therefore there is a high probability
that the non-solar energy required by the obligated entities to meet its RPO will be fulfilled by
procurement of energy from the projects developed within state.
Figure 10: Non-solar energy required by Distribution Licensee and Captive Consumers 21 (in
MUs)
Scenario 1
Scenario 2
2019-20
9,687
2018-19
8,126
2017-18
2015-16
4,223
2014-15
3,141
2,228 167
2013-14
-
4,080
2014-15
220
3,073
2013-14
5,000
10,000
15,000
406
5,236
2015-16
278
477
6,391
2016-17
341
552
7,682
2017-18
406
5,458
9,098
2018-19
477
6,714
2016-17
2019-20
552
341
278
220
2,202 167
5,000
10,000
Non-Solar energy required by DL
Non-Solar energy required by DL
Non-Solar energy required by CC
Non-Solar energy required by CC
15,000
5.5.3. Gross RE required in the state

Total energy required in the state by the Distribution Licensee and the consumers is 81,456 MUs.
Total demand of RE under scenario 1 is 12,218 MUs and scenario 2 is 16,203 MUs by 2020. Under
scenario 1, solar energy demand is 1,979 MUs and demand of non-solar RE is 12,218 MUs. Under
scenario 2, solar energy demand is 1,865 MUs and demand of non-solar RE is 11,515 MUs. In addition
to this under scenario 2 demand, there may be an additional demand of 4,688 MUs from RE by HTindustrial and LT-industrial consumers based on third party sale mode.
21
PwC
52
Figure 11: Gross RE required in the state by 202022 (in MUs)

Scenario 1
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
-
Scenario 2
81,456
12,218
81,456
12,218
1,979
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
-
81,456
11,515
16,203
1,865
Scenario 1
1. Solar energy required to meet RPO by DL and CC
2. Non-solar energy required to meet RPO by the DL
and CC
3. Renewable energy required to meet RPO
4. Total non conventional energy required by DL and
CC
5. Total energy demand in the state
16,203
81,456
Scenario 2
1. Solar energy required to meet RPO by DL and
CC
2. Non-solar energy required to meet RPO by the
DL and CC
3. Substituting HT-industrial and LT-industrial
consumers by Renewable Energy
4. Total Renewable Energy demand
5. Total non conventional energy required by DL
and CC
6. Total energy demand in the state
5.5.4. Capacity additions required

As of September 2013, the installed capacity of solar, wind, biomass and small hydro is 220, 323, 57
and 86 MW respectively. This translates to 1,506 MUs annually at CUF of 19%67, 20%68, 70%69 and
30%70 for solar, wind, biomass and small hydro respectively.
Under scenario 1, the target capacity addition required for solar, wind, biomass and small hydro by
2020 is 1189, 4091, 367 and 312 MW respectively. Under scenario 2, the target capacity addition
required for solar, wind, hydro and biomass by 2020 is 1966, 5167, 464 and 394 MW respectively.
The total target capacity addition under scenario 1 is 5,959 MW and scenario 2 is 7,990 MW.
Figure 12: Target capacity addition from different technologies by 202023 (in MW)
Scenario 1
Scenario 2
7,000
6,000
5,280
5,648
5,000
4,000
3,000
2,000
1,189
1,000
-
22
23
5,959
5,959
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
-
7,132
7,596
7,990
7,990
1,966

Refer appendix A.9 for details
PwC
53
Figure 13: Target capacity addition from solar technology 24 (in MW)
Scenario 1
1,400
1,200
1,000
800
600
400
200
-
Scenario 2
1,189 1,189
982
801
634
220 245
337
477
2,500
2,000
1,500
1,000
500
-
1,966 1,966
1,349
535
343
220
813
1,642
1,075
Figure 14: Target capacity addition from wind technology (in MW)
Scenario 1
5,000
4,000
3,000
2,000
1,000
-
Scenario 2
4,091
2,845
957
323
1,798
1,343
4,091
3,437
2,317
6,000
5,000
4,000
3,000
2,000
1,000
-
3,624
323
1,102
1,635
2,285
4,363
5,167 5,167
2,950
Figure 15: Target capacity addition from biomass technology (in MW)
Scenario 1
400
350
300
250
200
150
100
50
-
Scenario 2
367
367
309
208
57
86
121
255
161
500
400
300
200
100
-
464 464
392
325
57
99
147
205
265
Figure 16: Target capacity addition from small hydro technology (in MW)
Scenario 1
350
300
250
200
150
100
50
-
24
Scenario 2
312
217
86
86
102
137
177
262
312
500
400
300
200
100
-
394
394
332
86
86
125
174
225
276
Refer appendix A.10 for details
PwC
54
GHG emission reduction potential in Madhya Pradesh
6. GHG emission reduction potential in Madhya Pradesh

6.1. National context
According to Copenhagen Accord, India has committed to reduce its GDP emission intensity by 202571 percent by 2020. This is possible only if all the sectors in particular the energy intensive sectors
reduce their carbon intensity. Power sector is the largest contributor to GHG emissions in India.
According to GHG emissions profile of India, power sector contributes 38% of the total GHG
emissions of India.
GHG Emission Profile (India)
3%
Energy
38%
18%
Transport
Other industries
Cement
9%
Iron and Steel

Manufacturing industries
6%
Agriculture
7%
12%
7%
Waste
Power sector
contributes 38%
of the total GHG
emissions of
India.
The Government of India has prepared National Action Plan on Climate Change to chart the
development path that is economically sustainable. NAPCC targets 15% 72 RE by 2020. Based on
targets of NAPCC, the potential demand of RE is estimated at 207,275 MUs by 2020. Further, as per
the amended NTP73, 2006, the states are mandated to purchase solar power up to 3% by 2022. The
National Solar Mission74, 2010 specifies that the solar power purchase obligation for states may start
with 0.25% in the phase-I (2010-13) and go up to 3% by 2022. Based on targets of amended NTP, the
potential demand of solar energy is estimated at 41,455 MUs by 2020.
6.2. State context

The energy generation from various sources in the state of Madhya Pradesh during FY 2013-14 is
estimated to be 56,421 MU. Out of the entire portfolio, the energy generation from coal based power
plants is the highest followed by power plants based on the hydro resources. Power generation from
RE sources constitutes a small percentage of the total power generation.
Madhya Pradesh Electricity Regulatory Commission (MPERC) in its Regulation MPERCCogeneration and Generation of Electricity from Renewable Sources of Energy-2010 has specified
the minimum quantum of purchase from solar energy during the period of 2010 to 2015. Amended
Tariff Policy, 2011 mandates 3% of the total energy consumption from solar generation sources by
2022. Based on straight line method, the projection of solar RPO in the state works out to be 2.43% of
the total energy consumption by 2020.
The state of Madhya Pradesh has a vision to increase RE generation which will contribute towards
reduction in GHG. Madhya Pradesh is 2nd largest state75 in terms of geographical area with good RE
potential. Madhya Pradesh can therefore target to capture the demand for RE from within the state
and from other states in India. This study will estimate the GHG emission reductions assuming that
15% of energy generation will be contributed by RE technologies in the state of Madhya Pradesh.
PwC
55
6.3. Estimating emission factor for grid connected RE technologies

Grid connected RE technologies are qualified as emission reduction projects in GHG emission
schemes such as CDM, Gold Standard VERs, VER+ and VCS. CDM tools and methodologies are most
widely accepted for calculating the GHG emission reductions for grid connected RE technologies.
CDM tools and methodologies are applied in this report for estimating the emission reduction
potential from the target capacity addition by the state.
Tools and database used for estimating emission factor
Tool to calculate the emission factor for an electricity system76, approved by CDM Executive Board
CO2 Baseline Database published by CEA, version 9
6.4. Supply sources of energy in India

The power generation in India is dominated by thermal power projects including coal and gas based
thermal power projects. The total installed capacity at the end of 11th plan was 231,367 MW including
132,717 MW of thermal power plants (coal, lignite, gas, diesel, oil and naphtha), 39,959 MW hydro
power plants, 4,780 MW nuclear and 22,410 MW of RE plants. In addition to above, captive capacity
of 31,500 MW was operational at the end of 11th plan. The share of coal fired power generation plants
is more than 50% of the total installed capacity while RE technologies have a share of only 11.21%.
Table 29 Installed capacity by the end of 11 th plan25
Technology
Fuel
Subcritical
Coal and Lignite
Supercritical
Coal
6,740
CCGT
Gas
18,493
Subcritical
Diesel and oil
Hydro
NA
39,959
Nuclear
NA
4,780
Wind
NA
16,078
Solar
NA
368
Small hydro
NA
3252
Biomass and biogas
Biomass
2712
Total [1]
Captive [2]
Installed capacity [MW]

105,403
2,080
199,867
Coal and Gas
Gross Total [1+2]
31,500
231,367
6.5. Ex-ante and Ex-post emission factors

Ex-ante emission factor is determined based on the historical emissions of the grid connected power
projects and is fixed for the project life. In case of Ex-post emission factor, emission factor is
determined each year for calculating emission reductions. The Central Electricity Authority (CEA),
Ministry of Power, Government of India has published Carbon Dioxide Emission Factor based on
detailed authenticated information obtained from all operating power stations in the country. This
The capacity addition of renewables is taken from annual report of MNRE which provides data till December 2011. (Data
source CEA and MNRE)
25
PwC
56
database provides information about the Combined Margin (CM) Emission Factors of all the regional
electricity grids in India. The Combined Margin in the CEA database is calculated ex-ante using the
guidelines provided by the UNFCCC in the Tool to calculate the emission factor for an electricity
system. The Combined Margin data published in the CEA database Version 9, is used for calculating
the Baseline Emission Factor. By using above mentioned database and tools, ex-ante emission factor
is estimated and applied for calculating GHG emission reductions from grid connected RE
technologies for the period from 2013-14 to 2019-20.
6.6. Estimation of emission factor for the electricity system

As per tool for calculating the emission factor for an electricity system, the baseline emission factor is
calculated as Combined Margin, consisting of a combination of Operating Margin (OM) and Build
Margin (BM) factors. The step by step approach to calculate the baseline emission factor is provided
below.
6.6.1. Identifying the relevant electricity system

The Indian power system was divided into five independent regional grids, namely Northern,
Eastern, Western, Southern, and North-Eastern. Since August 2006, all regional grids except the
Southern Grid have been integrated and are operating in synchronous mode. Consequently, the
Northern, Eastern, Western and North-Eastern grids are treated as a single electricity system named
NEWNE grid. Madhya Pradesh is located in Western grid and therefore considered as a part of
NEWNE grid.
Table 30: Constituents of NWENE and southern grid
NEWNE Grid
Southern Grid
Northern
Eastern
Western
North-Eastern
Southern
Chandigarh
Bihar
Chhattisgarh
Arunachal
Pradesh
Andhra Pradesh
Delhi
Jharkhand
Gujarat
Assam
Karnataka
Haryana
Orissa
Daman & Diu
Manipur
Kerala
Himachal Pradesh
West Bengal
Dadar and Nagar

Haveli
Meghalaya
Tamil Nadu
Jammu & Kashmir
Sikkim
Madhya Pradesh
Mizoram
Pondicherry
Punjab
AndamanNicobar
Maharashtra
Nagaland
Lakshadweep
Goa
Tripura
Rajasthan
Uttar Pradesh
Uttarakhand
6.6.2. Include off-grid power plants in the project electricity system

As per tool to calculate the emission factor for the electricity system, the following two options could
be used to calculate the OM and BM emission factor. There is limited information on the off grid
power plants, therefore option I is used to calculate the emission factor.
Options to include off-grid power plants
Option 1:
Option 2:
Only grid power plants are included in the calculation

Both grid power plants and off grid power plants are included in the calculation
PwC
57
6.6.3. Select a method to determine the operating margin

According to the tool, the Operating Margin (OM) emission factor can be calculated using four
different approaches - simple OM, simple adjusted OM, dispatch data analysis OM or average OM.
The simple OM method can only be used if low cost must run resources constitute less than 50% of
total grid generation. Since the low cost must run resources constitute less than 50% of total grid
generation (refer Table 31) from the average of five most recent years, the Simple OM method can be
used to calculate the OM emission factor.
Table 31: Generation by must run sources as percentage of net generation
NEWNE Grid
2006-07
2007-08
2008-09
2009-10
2010-11
Must-Run
sources (% of
net generation)
18.5%
19.0%
17.4%
15.9%
17.6%
6.6.4. Calculate the operating margin emission factor according to the selected
method
Options for calculating simple OM
Option A: Based on the net electricity generation and a CO2 emission factor of each power unit
Option B: Based on the total net electricity generation of all power plants serving the system and the fuel
types and total fuel consumption of the project electricity system
The simple OM emission factor is calculated as the generation-weighted average of CO2 emissions
per unit of net electricity generation of all generating power plants serving the system, not including
low cost must run power plants. Option A is used to calculate simple OM emission factor. The simple
OM emission factor is calculated based on data of electricity generation and an emission factor for
each power unit.
EFgrid,OMsimple,y = (EGm,y x EFEL,m,y) / EGm,y, Where
EFgrid,OMsimple,y
EGm,y
EFEL,m,y
m
y
Simple Operating Margin CO2 emission factor in a year (TCO2/MWh)

Net quantity of electricity generated and delivered to the grid by power each unit in a year
(MWh)
CO2 emission factor of power unit m in a year (TCO 2/MWh)
All power units serving the grid in a year except low cost must run power units
the relevant year as per the data vintage chosen
The CO2 emission factor data and net electricity generation data of all generating power plants in
NEWNE grid (not including low cost must run power plants) for the last three year is available under
the CEA database (Version 9) (refer Appendix F. -Power projects and their specific emissions in
NEWNE grid).
Table 32: CO2 emission factor and Net Electricity Generation (incl. Imports)
Parameter
CO2 emission factor
(TCO2/MWh)
Net Electricity Generation
(MWh)
2010-11
2011-12
2012-13
0.9710
0.9691
0.9914
579,181
621,462
653,066
The 3 years generation-weighted OM average for NEWNE grid works out to be 0.9775 TCO2/MWh
(ex-ante).
PwC
58
6.6.5. Calculate the build margin emission factor

The BM emissions factor is the generation-weighted average emission factor of all power units during
the year 2012-13.
EFgrid,BM,y= EGm,y x EFEL,m, / EGm,y
EFgrid,BM,y
Build Margin CO2 emission factor in a year (TCO2/MWh)
EGm,y
Net quantity of electricity generated and delivered to the grid by each power unit in a year (MWh)
EFEL,m,y
CO2 emission factor of each power unit in a year (TCO2/MWh)
m
y
Power units included in the Build Margin

Most recent historical year
The CO2 emission factor of each power unit is determined using the year 2012-13. The BM emission
factor for the year 2012-13 works out to be 0.9673 TCO2/MWh.
6.6.6. Calculate the combined margin emissions factor

The CM emission factor of the grid is represented as a combination of the OM and BM. Considering
the emission factors for these two margins as EFgridOM,y and EFgrid BM,y, then the EFgrid,CM,y is given by:
EFgrid,CM,y = EFgrid,OM,y * WOM + EFgrid,BM,y * WBM
EFgrid, BM, y
Build Margin CO2 emission factor in year y (TCO2/MWh)
EFgrid, OM, y
Operating Margin CO2 emission factor in year y (TCO2/MWh)
wOM
Weighting of Operating Margin emissions factor
wBM
Weighting of Build Margin emissions factor (where wOM + wBM = 1).
The intermittent sources for power generation like wind and solar are provided different weights for
OM and BM in comparison to biomass and small hydro projects. The CM emission factor for wind
and solar works out to be 0.9750 TCO2/MWh and for biomass and Small Hydro works out to be
0.9724 TCO2/MWh.
Table 33: Weights of OM and BM used for computing CM
Particulars
Units
Solar and Wind
Biomass and Small Hydro
WOM
0.75
0.50
WBM
0.25
0.50
EF
TCO2/MWh
0.9750
0.9724
6.7. Estimated Emission Reduction

ERy = BEy PEy LEy
ERy
BEy
PEy
LEy
Emission Reduction from renewable technology (TCO 2 )

Baseline Emission Reduction from renewable technology(TCO 2 )
Project Emission from renewable technology (TCO2)
Leakage Emission for any renewable technology (TCO 2)
Estimation of Project Emissions: For renewable power generation project, project emissions can be
assumed to be zero.
Estimation of Leakage Emissions: The leakage emissions in the context of electric sector projects are
the emissions arising due to activities such as power plant construction and upstream emissions from
fossil fuel use. These emissions sources are neglected.
PwC
59
Estimation of Baseline Emissions: Baseline emissions include CO2 emissions from electricity
generation in fossil fuel fired power plants that are displaced due to the project. The methodology
assumes that all project electricity generation above baseline levels would have been generated by
existing grid-connected power plants and the addition of new grid-connected power plants.
BEy = EGPJ,y * EFgrid,CM,y, Where
BEy = Baseline emissions (TCO2)
EGPJ,y = Quantity of net electricity generation that is produced and fed into the grid as a result of
the implementation of RE project (MWh)
EFgrid,CM,y = Combined margin CO2 emission factor for grid connected power generation
The GHG emission reduction potential is 48 Million TCO2 under scenario 1 and 64 Million TCO2
under scenario 2 for the period from 2013-14 to 2019-20. This is equivalent to saving of 3126 Million
Tons of coal under scenario 1 and 42 Million Tons of coal under scenario 2 in the period from 2013-14
to 2019-20.
64 Million TCO2
Savings in coal
42 Million Tons
Emission Reduction Potential
Figure 17: Year on Year GHG emission reductions due to solar (000 TCO 2)
Scenario 1
2,500
2,000
1,500
1,000
500
-
Scenario 2
397
546
774
1,029
1,299
1,594
1,930
3,500
3,000
2,500
2,000
1,500
1,000
500
-
3,190
556
869
1,319
1,745
2,190
2,665
Figure 18: Year on Year GHG emission reductions due to wind (000 TCO 2)
Scenario 1
Scenario 2
8,000
6,000
4,000
2,000
1,634
2,294
3,072
3,958
4,860
5,872
6,988
10,000
8,000
6,000
4,000
2,000
-
1,883
2,793
3,904
5,040
6,191
7,452
8,826
Figure 19: Year on Year GHG emission reductions due to biomass (000 TCO 2)
26
Assuming 1 Ton of coal produces 1.53 Tons of Co2.
PwC
60
Scenario 1
2,500
2,000
1,500
1,000
500
-
512
Scenario 2
719
963
1,241
1,523
1,841
2,190
3,000
2,000
1,000
590
875
1,224
1,580
1,940
2,336
2,766
Figure 20: Year on Year GHG emission reductions due to small hydro projects (000 TCO2)
Scenario 1
1,000
800
600
400
200
-
186
Scenario 2
262
350
451
554
669
797
1,200
1,000
800
600
400
200
-
215
318
445
574
706
PwC
849
1,006
61
7. Assessment of RE deployment
7.1. Current state of RE deployment
The state has good potential in all the RE technologies including solar, wind, biomass and small
hydro. The guiding factor for RE investment is supported by the policy incentives and regulatory
factors. Wind and solar technologies are commercialised in India and could be up-scaled provided
conducive regulatory, policy and commercial environment in the state. The biomass and small hydro
technologies are mature but still face barriers to up-scaling. The barriers and their possible solutions
have been analysed in detail in the subsequent chapters in this report.
Madhya Pradesh has witness implementation of RE projects in solar, wind, biomass and small hydro.
As of September 2013, the installed capacity of solar, wind, biomass and small hydro is 220, 323, 57
and 86 MW respectively. This translates to 1,506 MUs annually at CUF of 19%77, 20%78, 70%79 and
30%80 for solar, wind, biomass and small hydro respectively.
Table 34: Current deployment of RE projects
Technology
Installed capacity (MW)
CUF (%)
Generation (MUs)
Solar PV
220
19
366
Wind
323
20
566
Biomass
57
70
350
Small Hydro
86
30
226
7.2. Strong pipeline of RE projects

MPNRED came up with the request for proposal for setting up of grid connected RE projects in the
state in the month of October 2012 and May 2013. More than 7,000 MW of interest was shown by the
various project developers in the stated tenders including more than 6,500 in wind and solar.
Figure 21: Interest shown by investors in wind and solar projects
1,461
RFP2 (MW)
More than 6,500

MW of interest
shown by investors
in solar and wind
projects
3,527
880
685
RFP1 (MW)
-
1,000
2,000
Solar
3,000
4,000
Wind
Figure 22: Projects under implementation
More than 4,500

MW of projects
under
implementation
Biomass
165
Small hydro
275
Solar
1,449
Wind
2,776
-
500
1,000
1,500
2,000
2,500
3,000
Capacity (MW)
PwC
62
In addition to this, in case of solar power projects, MPPMCL has till date invited request for proposals
for setting up of solar power projects for 300 MW (200 MW and 100 MW). Almost all the projects
that were awarded in 200 MW proposal have already been completed and the projects that are
awarded under 100 MW proposal are expected to be completed in 2015.
PwC
63
Strategic roadmap for up-scaling renewable energy technologies
8. Strategic roadmap for up-scaling RE technologies

8.1. Roadmap for solar energy
8.1.1. Solar energy journey roadmap
Activity
Technical consultants
Transmission
and
distribution company
Nodal agency
Transmission
and
Nodal agency
Lenders
Suppliers of equipment
Internal roads
EPC contractors
laying foundation
Developer
Investor
Operation and
maintenance party
Operators
Developer
Planning application
load flow study
Solar resource assessment
Design and Engineering
(used
1 year
Developer/investor
interchangeably)
Applicatio
n
Scoping
Scoping
Key Player/Agencies
Application for Grid connection

Application for securing land
End of
Life
Repowering
25 year
Operations
Operate
Substation and metering

arrangements
1 year
Laying transmission lines
Implemen
t
Erection of modules, electrical blocks
0.5
year
Procurement of equipment
Logistic
s
Arranging finance
Consent
Securing
approvals
(grid
connection/evacuation, right of way,
land approvals),

As of September 2013, the installed capacity of solar is 220MW. Madhya Pradesh has led the
investment in solar sector in India for the quarters ending December 2014 and March 2014. Madhya
Pradesh is allocated 250 MW in JNNSM phase 2 batch 1 of the solar bidding which is more than
capacity allocated to the states of Rajasthan and Gujarat. MPNRED invited tenders in October 2012
and May 2013 seeking interest from the developers for implementing solar power projects in the
state. There was unprecedented interest shown by the investors in the state to implement solar
projects. The interest received under RFP 1 and 2 is 880 MW and 1,461 MW respectively. This
represents a very strong pipeline of solar power projects that are at various stages of development.
PwC
64
Figure 23: Interest shown by investors in solar projects
1,461
Solar
880
-
500
1,000
RFP2 (MW)
1,500
2,000
RFP1 (MW)
More than 2,300

MW of interest
shown by investors
in solar power
8.1.3. Factors affecting solar energy investment

Parameter
Capital cost
Interpretation
Feed in tariff
Capacity utilisation Factor
Evacuation
Approvals Technical,
environmental, administrative and
land
Capital cost, CUF and tariff are most critical factors affecting
the financial viability of the solar power projects. Due to large
number of players in solar industry for each of the supply
chain components such as modules, inverters, capital cost in
the solar industry is very competitive.
Solar power, in general, is not procured at the preferential
tariff approved by the commission. Solar power is procured
through the competitive bidding process. Therefore feed in
tariff is not a factor that drives the solar power investment.
The capacity utilization factor can be assessed using satellite
data and ground monitoring stations. In case of solar
projects, the projects developers and the financers are
reasonably comfortable in using the satellite date for
investment decision making. However, ground monitoring
station improves the quality of the data and generates more
interest from the project developers.
The solar parks envisaged by MPNRED must provide solar
resource data to the prospective project developers. This will
increase interest of the project developers in the solar parks
and also increase interest of the financers.
Evacuation infrastructure is critical for project development.
The strength of state transmission system is important factor
that will decide the rate at which the solar energy projects
could be up-scaled.
As per MPERC order and the state policy, the cost up to grid
interconnection has to be borne by the project developer.
Distance of the project site from the grid can impact the
financial viability of the project.
Most of the solar power projects are located in the western
Madhya Pradesh where the grid connection may be 50-70 km
from the project site.
The state transmission system requires strengthening with
respect to new substations and transmission lines close to the
good solar sites (Western Madhya Pradesh).
Multilateral and bilateral financing agencies can play a good
role, if engaged, for strengthening of the state transmission
system with focus on debottlenecking the transmission
network for up-scaling of RE.
Most of the solar power developers are well versed with the
approval
processes
Technical,
environmental,
administrative and land.
The type of the land selected Private, revenue or forest is
PwC
65
Parameter
Interpretation
Choice of technology
also an important factor for the project developer. As per

discussion with various stakeholders, securing rights on
private or revenue land is easier compared to forest land.
Approval for forest land can take 12-18 months which may
dissuade the prospective project developers.
The process of securing forest land is governed by the central
regulations. However state may play their role in assisting the
project developers in providing the land for compensatory
afforestation that is to be provided against the forest land
lease rights.
As long as the investor is able to cross the hurdle rate,
investors are indifferent on the choice of the technology.

Forming joint ventures
1. The solar power sector has seen investment from various Public Sector Utilities. In discussion
with MPNRED, it was informed that PSU companies have approached them for developing
solar projects. Structuring the JV partnership will require an understanding on various
aspects of the project development. MPNRED may appoint a consultant to prepare the
institutional structure and the legal agreements that may be required for JV partnership for
developing solar projects.
Developing solar parks
2. MPNERD may make due efforts to facilitate the development of the solar parks in the state.
As per solar policy, solar parks can be developed in PPP mode. Solar parks can accelerate the
development of RE in the state. Solar park concept can accommodate small and large project
developers. Solar parks can be sized in a manner that yield cost economics to the project
developers and competitive tariff to the procurer.
3. Solar parks that are offered must provide the project investors with the information on
institutional structure on managing and operating the solar park, the entity responsible for
laying transmission infrastructure, the entity responsible for managing common
infrastructure facility, detailed feasibility study report, access to land, financing arrangement
and the cost recoverability aspects related to common infrastructure.
4. Solar parks projects may require ground data monitoring to strongly position the proposed
solar parks. MPNERD may make due efforts to facilitate the development of the solar parks by
providing investors with key clearances, data on solar resource and enabling infrastructure for
project development at the accelerated pace.
5. Solar park policy states that 25% of the power has to be sold to MPPMCL at APPC cost if the
project is developed on revenue or Government land. This is prohibitive. Financers do not
consider REC revenues while appraising projects. This condition may be deferred until the
time REC mechanism is revived to the extent that its revenue stream is considered bankable.
Bringing certainty on resource assessment
6. Solar resource data is required by the project developers to assess the CUF. Solar data
monitored using satellite imaging is reliable and is used by the project developers for making
PwC
66
financial investment decision. Financers are also comfortable in financing the projects based
on satellite data if the estimates are confirmed by the reputed third party technical consultant.
MPNRED may appoint a reputed third party technical consultant to map the solar resource
assessment for the entire state. This will provide the project developers with the bankable
information and will reduce the possibility of project failure at the stage of financial closure.
Securing land
7. Deputy Commissioners of all the districts can identify the inventory of surplus & unused land
available with the State Government, PSUs, Urban Local Bodies/ Gram Panchayat lands and
suitable private waste lands which can be used for installation of RE projects. The
identification exercise can be done periodically.
8. Identified land for RE projects can be allocated to the MPNRED. The allocated land can be
o
9. In case land identified for the project is in forest area, the equivalent area has to be
Single window clearance system (covered in policy review)
Facilitating grid connection
10. MPNRED has prepared a transmission strengthening plan in discussion with MPPTCL at the
locations which are in vicinity of the good RE sites. MPNRED is making focussed efforts to
push MPPTCL in strengthening the grid infrastructure which is critical to up-scale the RE
investment in the state.
11. Based on the interest received from the project developers in the RFP process, certain regions
can be identified with higher solar potential for project development. MPPTCL should
establish pooling points for evacuation of power in such identified regions. It will be cost
effective as a number RE projects can get connected to these pooling points. Such facilities
have already been created in some states.
12. Right of way issues is one of the major concerns of the project developers that may dissuade
13. A coordination committee comprising representatives of MPNRED, MPPTCL and distribution
Be a part of Green Energy Corridor
14. The growth of RE in the state may be limited due to inadequate interstate transmission
infrastructure. The projects that are selected under the JNNSM may require evacuating the
power outside the state. MNRE is also expected to launch the wind mission which will procure
PwC
67
wind energy on competitive bidding process. Historically, RE transactions were limited to

intrastate. However with JNNSM and wind mission design already in discussion, the
interstate RE transactions are expected to increase.
15. Report on Green Energy Corridor by PGCIL includes the states of Tamil Nadu, Karnataka,
Corridor will assist these states in evacuating RE to the other states. Considering that Madhya
Pradesh is able to secure more than 7,000 MW of RE in the RFP 1 and 2 including more than
2,300 MW in solar and 250 MW in JNNSM phase 2 batch 1, MPNRED shall make efforts to
include Madhya Pradesh in the proposed Green Energy Corridor so that power could be
Target Funding
Engaging with bilateral and multilateral agencies
16. Multilateral and bilateral financing agencies have shown their interest in developing the
transmission infrastructure to up-scale solar energy investment. MPNRED may form the
Harnessing funds from NCEF
17. According to National Clean Energy Fund (NCEF), the projects relating to creation of power
Targeting incentives for grid Connected RE from MoF, India
18. 13th Finance Commission provided guidelines for implementation of the incentive scheme,
with the objective of broad-based development of RE sources across states. The grant of INR
5,000 Crores was advised for the projects to be commissioned from April 01, 2010 to March
31, 2014. Such grants may be advised by the Finance Commission for the coming years. If
such grant is continued in future, MPNRED may estimate the grant that could be drawn based
on the guidelines provided by the 13th Finance Commission.
Creating Green Energy Fund to support infrastructure
19. Green Energy Fund is floated by Maharashtra to support transmission infrastructure. For
o
PwC
68
20. The state may collect the cess and utilizes the same for various activities development of
non-conventional energy sources, infrastructure development, power evacuation and study on
mapping of RE resources.
Tenure and payment security
21. Tenure of the commercial agreement with the procurer shall be for the term of project life.
MPPMCL executes PPA with the project developers for the project life.
22. Payment security by the off-taker (covered in paragraph 10.9)
Issues in third party sale
23. The projects envisaged under third party sale or captive consumption mode are likely to use
preferential terms (preferential wheeling and banking, transmission or electricity duty waiver)
or REC mechanism for financial viability. Key actions needed to increase sale of RE
penetration in third party or captive consumption mode:
The current methodology adopted by MPPMCL for computations on load factor,

power factor and other parameters disincentivise the third party consumers and
captive consumers. MPNRED may push the Discoms to rationalize the methodology in
order that the consumers procuring RE are not disincentivised on grounds of
REC mechanism provides additional revenue to the project developers that implement
project on APPC, third party sale or captive mode. REC mechanism is not working well
in the current state. Enforcement by the state regulators may push this market but
efforts are required by all the state regulators to enforce the RPO. Action by few state
regulators in isolation may not be enough to revive the REC market. FOR is also
making an effort to revive REC market. FOR has recently invited tenders to
commission the study to develop an action possible to revive REC market.
Managing project execution risk

24. Setting strong qualification criteria for selecting the project developers.
25. Setting contract performance fee for timely implementation.
26. Assessing the capacity to arrange capital (both debt and equity) by assessing the financial
strength of the bidder. Net worth criteria may be benchmarked against the best practice that is
followed by MNRE/SECI for JNNSM.
Investment Promotion
27. Investor conference may be planned twice in a year where all solar power investors may be
invited. Information on solar resource assessment study undertaken by MPNRED, policy
initiatives and advantages for investment in the state may be disseminated during the investor
conference. This data may be published online for wider access.
PwC
69
8.2. Roadmap for wind energy

8.2.1. Wind energy journey roadmap
Scoping
Key Player/Agencies
Transmission
and
Nodal agency
Transmission
and
Nodal agency
Lenders
Internal roads
EPC contractors
laying foundation
Developer
Investor
Operation and
maintenance party
Operators
Developer
load flow study
Wind resource assessment
(used
1 year
Developer/investor
interchangeably)
Applicatio
n
Scoping
Activity

Application for securing land
End of
Life
Repowering
25 year
Operations
Operate

arrangements
1 year
Implemen
t
Erection of WTGs
0.5
year
Logistic
s
Arranging finance
Consent
Securing approvals (grid

land approvals),

The tariff approved by MPERC for the wind power projects in its order dated March 2013 is INR
5.92/KWh. This is the highest preferential tariff approved for wind energy across all states in India.
As of September 2013, Madhya Pradesh has more than 323 MW of installed wind power projects.
This capacity is likely to see quantum jump in the coming years. MPNRED invited request for
proposal for setting wind power projects in the state of Madhya Pradesh in October 2012 and again in
May 2013. There has been a tremendous response from the project developers. The interest received
under RFP 1 and 2 is 685 MW and 3,527 MW respectively. This represents a very strong pipeline of
wind power projects that are at various stages of development.
PwC
70
Figure 24: Interest shown by investors in wind projects
3,527
Wind
685
-
1,000
2,000
RFP2 (MW)
3,000
4,000
RFP1 (MW)
More than 4,200

MW of interest
shown by investors
in wind power
8.2.3. Factors affecting wind energy investment

Parameter
Capital cost
Interpretation
Feed in tariff
Average wind speed/CUF
Evacuation
Capital cost, CUF and tariff are most critical factors affecting
the financial viability of the wind power project. The capital
cost in the wind industry is moving to cost competitiveness
with crowding of WEG suppliers in the market. Currently,
there is over capacity in the market and therefore the project
developers are in good position to exploit the situation.
The tariff in the state of Madhya is highest among all the
states in India. At the current tariff (including benefits such
as GBI) and capital cost, the sites with potential of more than
18% CUF are financially viable. There are number of potential
wind farm sites that have a CUF of more than 18% in the state
of Madhya Pradesh.
The capacity utilization factor can be assessed using satellite
data and ground monitoring stations. In case of wind
projects, the projects developers and the financers are not
comfortable in using the satellite date for investment decision
making.
The ground monitoring station improves the quality of the
data and can generate more interest from the project
developers. The number of wind monitoring masts is low in
Madhya Pradesh in comparison to states such as Tamilnadu,
Karnataka, Maharashtra and Rajasthan.
CWET has less than 40 masts in the state of Madhya Pradesh
in comparison to more than 200 masts in states of Gujarat
and Maharashtra. Better density of masts may help explore
more potential. The wind monitoring masts may help
improve the quality of the data available to the investors.
The wind parks envisaged by MPNRED must provide wind
resource data to the prospective project developers. This will
increase interest of the project developers in the wind parks
and also increase interest of the financers.
Evacuation infrastructure is critical for project development.
The strength of state transmission system is important factor
that will decide the rate at which the wind energy projects
could be up-scaled.
As per MPERC order and the state policy, the cost up to grid
interconnection has to be borne by the project developer.
Most of the wind power projects are located in the western
Madhya Pradesh where the grid connection may be 50-70 km
from the project site.
The state transmission system requires strengthening with
PwC
71
Parameter
Interpretation
land
respect to new substations and transmission lines close to the

good wind sites (Western Madhya Pradesh).
Multilateral and bilateral financing agencies can play a good
role, if engaged, for strengthening of the state transmission
system with focus on debottlenecking the transmission
network for up-scaling of RE.
Most of the wind power developers are well versed with the
approval
processes
Technical,
environmental,
administrative and land.
The type of the land selected Private, revenue or forest is
also an important factor for the project developer. As per
discussion with various stakeholders, securing rights on
private or revenue land is easier compared to forest land.
Approval for forest land can take 12-18 months which may
dissuade the prospective project developers.
The process of securing forest land is governed by the central
regulations. However state may play their role in assisting the
project developers in providing the land for compensatory
afforestation that is to be provided against the forest land
lease rights.
As long as the investor is able to cross the hurdle rate,
investors are indifferent on the choice of the technology.

1. The wind power sector has seen investment from various Public Sector Utilities. In discussion
with MPNRED, it was informed that PSU companies have approached them for developing
wind projects. Structuring the JV partnership will require an understanding on various
aspects of the project development. MPNRED may appoint a consultant to prepare the
institutional structure and the legal agreements that may be required for JV partnership for
developing wind projects.
Developing wind parks
2. MPNERD may make due efforts to facilitate the development of wind parks in the state. Wind
parks can be developed in PPP mode. Wind parks can accelerate the development of RE in the
state. Wind park concept can accommodate small and large project developers. Wind parks
can be sized in a manner that yield cost economics to the project developers and competitive
tariff to the procurer.
3. Wind parks that are offered must provide the project investors with the information on
institutional structure on managing and operating the wind park, the entity responsible for
4. Wind parks projects will require ground data monitoring to strongly position the proposed
wind parks. MPNERD will make due efforts to facilitate the development of the wind parks by
providing investors with key clearances, data on wind resource and enabling infrastructure for
PwC
72

5. Data availability serves as a starting point for the project developers for making investments.
A reputed technical consultant may be engaged by MPNRED for mapping wind resource at a
broad level to identify the good regions where wind masts could be installed for micro level
assessment.
6. Ground monitoring stations improves the quality of data. The project developers and
financers require mast data for more than 1 year for assessment of CUF. The wind mast data is
reliable only 10 15 km radius. A reputed technical consultant may then be engaged by
MPNRED to install masts for wind monitoring at the selected sites. This data may then be
shared with the potential investors for project development at the RFP stage.
Securing land
7. Deputy Commissioners of all the districts can identify the inventory of surplus & unused land
available with the State Government, PSUs, Urban Local Bodies/ Gram Panchayat lands and
suitable private waste lands which can be used for installation of RE projects. The
identification exercise can be done periodically.
8. Identified land for RE projects can be allocated to the MPNRED. The allocated land can be
o
9. In case land identified for the project is in forest area, the equivalent area has to be
10. MPNRED has prepared a transmission strengthening plan in discussion with MPPTCL at the
11. Based on the interest received from the project developers in the RFP process, certain regions
can be identified with higher wind potential for project development. MPPTCL should
establish pooling points for evacuation of power in such identified regions. It will be cost
effective as a number RE projects can get connected to these pooling points. Such facilities
have already been created in some states.
13. A coordination committee comprising representatives of MPNRED, MPPTCL and distribution
PwC
73
14. The growth of RE in the state may be limited due to inadequate interstate transmission
15. Report on Green Energy Corridor by PGCIL includes the states of Tamil Nadu, Karnataka,
Pradesh is able to secure more than 7,000 MW of RE in the RFP 1 and 2 including more than
4,200 MW in wind and 250 MW in JNNSM phase 2 batch 1, MPNRED shall make efforts to
include Madhya Pradesh in the proposed Green Energy Corridor so that power could be
Target Funding
16. Multilateral and bilateral financing agencies have shown their interest in developing the
transmission infrastructure to up-scale wind energy investment. MPNRED may form the
17. According to National Clean Energy Fund (NCEF), the projects relating to creation of power
18. 13th Finance Commission provided guidelines for implementation of the incentive scheme,
31, 2014. Such grants may be advised by the Finance Commission for the coming years. If
such grant is continued in future, MPNRED may estimate the grant that could be drawn based
on the guidelines provided by the 13th Finance Commission.
19. Green Energy Fund is floated by Maharashtra to support transmission infrastructure. For
o
PwC
74
20. The state may collect the cess and utilizes the same for various activities development of
21. Tenure of the commercial agreement with the procurer shall be for the term of project life.
22. Payment security by the off-taker (covered in paragraph 10.9)
23. The projects envisaged under third party sale or captive consumption mode are likely to use

efforts are required by all the state regulators to enforce the RPO. Action by few state
regulators in isolation may not be enough to revive the REC market. FOR is also
making an effort to revive REC market. FOR has recently invited tenders to
commission the study to develop an action possible to revive REC market.

28. Setting strong qualification criteria for selecting the project developers.
29. Setting contract performance fee for timely implementation.
30. Assessing the capacity to arrange capital (both debt and equity) by assessing the financial
strength of the bidder. Net worth criteria may be benchmarked against the best practice.
Investment promotion
24. Investor conference may be planned twice in a year where all wind power investors may be
invited. Information on wind resource assessment study undertaken by MPNRED, policy
PwC
75
8.3. Roadmap for biomass energy

8.3.1. Biomass energy journey roadmap
Activity

land approvals),
Transmission
and
Nodal agency
Arranging finance
Lenders
laying foundation
EPC contractors
Erection of Boilers, Turbine etc.
Developer
Operations
Investor
Biomass procurement
Local vendors, farmers
Operation and
maintenance party
Operators
Developer
Setting up of warehouses/conveyor
etc.

arrangements
Renovation and modernisation
25 year
Nodal agency
Application for securing land for

project and plantations
1.5 year
0.5 year
State Agriculture Dept. and

State Forest Dept.
1 year
End of
Life
Transmission
and
Operate
Biomass resource assessment
Implement
load flow study
Logistic
s
(used
Consent
Developer/investor
interchangeably)
Application
Scoping
Scoping
Key Player/Agencies

Biomass based power projects with a cumulative capacity of around 57 MW has been commissioned
in the state as on September 2013. MPNRED invited request for proposal for setting wind power
projects in the state of Madhya Pradesh in October 2012 and again in May 2013. The interest received
under RFP 1 and 2 is less than 100 MW.
8.3.3. Factors affecting biomass energy investment

Parameter
Interpretation
PwC
76
Parameter
Capital cost
Interpretation
Feed in tariff
Fuel price and availability
Water linkage
Evacuation
land
Capital cost, tariff and fuel price and availability and are
most critical factors affecting the financial viability of
the biomass power project.
MPERC has considered capital cost of INR 4.63
Crores/MW which is very low as compared to the actual
cost which according to the project developers is
between INR 5.5-6 Crores/MW .
The tariff in the state of Madhya Pradesh (two part
tariff- a mix fixed tariff and variable tariffs) is calculated
considering capital cost which is lower than capital cost
prescribed by CERC and other state regulatory
commissions.
The cost of fuel considered for variable tariff may not be
available in all the regions. Madhya Pradesh is 2 nd
largest state in India. Not all the regions are equally rich
in biomass. Therefore state regulator may consider
having different variable tariff for different regions.
Fuel availability, fuel quality and fuel processing etc.
still pose the major challenges to a biomass project
developer. The biomass fuel prices are very volatile.
Project developers and financers are concerned of the
long term fuel prices.
States such as Rajasthan and Andhra Pradesh have
witness the shutdown of biomass power plants before
their technical life due to fuel price escalations.
Water linkage is an important factor for biomass
projects. Most of the biomass projects in India use wet
cooling systems which require huge volume of water.
Biomass power plants that are not in vicinity of the
water linkage may have to employ dry cooling system.
However dry cooling system will push the capital cost of
the project on the higher side.
At the stated capacity range, it is difficult to have a
substation of 33 KV or above.
As per MPERC order and the state policy, the cost up to
grid interconnection has to be borne by the project
developer.
Most of the biomass power developers are well versed
with
the
approval
processes
Technical,
environmental, administrative and land.

1. Biomass fuel supply sector is highly unorganized and consequently the supply side market is
unpredictable and highly volatile. The biggest problem plaguing the biomass sector is the nonavailability of reliable and affordable feedstock at a competitive price. MPNRED may
undertake detailed study by appointing third party technical consultant on biomass feedstock
assessment for each district for both the agricultural and forest waste to bring certainty on
availability, quality and pricing of biomass in the state.
PwC
77
2. To overcome the problems posed by the existence of multiple middlemen (transporters,

traders etc.) in the biomass feedstock supply chain, and to streamline the interaction between
feedstock sellers and buyers, an organized/structured market for biomass may be developed.
The market would reduce transaction costs and also allow for true and undistorted economic
price discovery of feedstock based on available supply and demand.
3. It is common for biomass power plants to receive more than 60-70% of their annual feedstock
requirements during the harvesting season alone. MPNRED will issue guiding document for
addressing issues in biomass supply chain like transportation, handling, storage and drying.
4. In order to ensure long term fuel availability and sustainable price, MPNRED may promote
plantation backed biomass power plants. Development of energy plantation on Government
waste land and degraded forest land may be allowed for creating supply of supplementary fuel
for biomass power plants.
Land allocation (covered in policy review)
Water linkage
5. Water linkage is an important factor for biomass projects. Most of the biomass projects in
India use wet cooling systems which require huge volume of water. Biomass power plants that
are not in vicinity of the water linkage may have to employ dry cooling system. However dry
cooling system will push the capital cost of the project on the higher side. Dry cooling systems
have high auxiliary consumption. High heat rate will push the variable cost component on the
higher side. MPERC may consider a different tariff for dry cooling systems due to their high
capital cost and low efficiency.
6. Most of the biomass projects are typically in the range of 5-15 MW. This is an optimal capacity
range for biomass projects that make them financially viable. Biomass gasifiers find their
feasibility for the project size of than 2 MW. However, these projects can typically be very
useful in distributed generation. These projects can be connected at the low voltage levels due
to their small size.
7. Infrastructure cost for creating grid interconnection can be prohibitive for implementation of
biomass power projects. The state of Maharashtra provides 50 % financial assistance from
Green Cess (33 kV and above) after commissioning subject to maximum INR 2 crores/project.
MPNRED may create a Green Energy Fund to encourage biomass project developers by
sharing the cost of transmission infrastructure.
Managing investment risk
8. Tenure and payment security (covered in off-taker risk under financing RE)
9. Biomass projects are provided a two part tariff fixed and variable cost. Fixed component of
the cost covers return on equity, interest, depreciation, operation and maintenance expense.
Variable cost covers the fuel cost. Fuel cost has to be reviewed frequently for making operation
of the biomass power plants financially viable. MPNRED may take an independent survey of
the fuel prices, which can be conducted by independent technical consultant. The fuel price
survey may be conducted once in two or three years to assess feedstock prices. The fuel prices
thus obtained have to be shared with the state regulator for approval which could be allowed
to all the power plants irrespective of their commissioning date.
PwC
78
10. It may be noted that the study undertaken by an independent third party consultant have to
be presented to MPERC for approval, therefore special care should be taken to appoint a
technical consultant having capability of measuring reliably the calorific value of the biomass,
structured approach to conduct surveys to achieve reliable results on pricing and biomass
surplus available.
11. The projects that supply power to third party are seldom signed for the project life. Therefore
in case the PPA for such projects falls apart during the project life, these projects may be
allowed to enter into the PPA with MPPMCL at the preferential tariff approved by MPERC. In
such cases, the fixed cost may be allowed as per tariff order that would have been applicable to
the project as per its commissioning date while the variable component may be allowed as per
independent survey conducted from time to time.
12. Investors of biomass projects are different from utility scale wind and solar investors.
Targeting investors in biomass projects will require an outreach effort from MPNRED.
Investor conference may be planned twice in a year where all such investors will be invited.
MPNRED will explain the outputs of the studies that are undertaken by MPNRED on biomass
assessment and steps taken on ensuring price stability. Information on policy initiatives and
advantages for investment in the state may be disseminated during the investor conference.
PwC
79
8.4. Roadmap for small hydro projects

8.4.1. Small hydro energy journey roadmap
Activity
Key Player/Agencies
Transmission
and
Water Resources Dept. and

State Forest Dept.
Nodal agency

water resource),
Transmission
and
Nodal agency
Arranging finance
Lenders
Engineering design
laying foundation, tunnel etc.
EPC contractors
Erection of Turbine etc.
Developer
Investor
Operation and
maintenance party
Operators
Developer
Identifying potential catchment areas

0.5
year
1.5 year
Logistic
s
load flow study
(used
Consent
Developer/investor
interchangeably)
Applicatio
n
Scoping
Scoping, map studies, delineation of

the drainage basins, preliminary
estimates of flow and floods
2 year
Implemen
t
End of
Life
Renovation and modernisation
30 year
Operations
Operate

arrangements

The total small hydro potential in the state of Madhya Pradesh under various schemes of small hydro
power, as estimated by Alternate Hydro Energy Center (AHEC), IIT Roorkee is estimated at 411 MW.
Small hydro based power projects with a cumulative capacity of around 86 MW have been
commissioned in the state as on September 2013. MPNRED invited request for proposal for setting
small hydro power projects in the state of Madhya Pradesh in October 2012 and again in May 2013.
The interest received under RFP 1 and 2 is less than 50 MW.
8.4.3. Factors affecting small hydro energy investment

Parameter
Interpretation
PwC
80
Parameter
Capital cost
Interpretation
Feed in tariff
Resource availability
Evacuation
land
Capital cost, resource availability and tariffs are most

critical factors affecting the financial viability of the
small hydro project.
Madhya Pradesh state is rich in water resources, with a
number of rivers that flow through it - Narmada,
Mahanadi, Godavari, Tapi, Mahi, Chambal, Betwa, Ken
and Son. As part from these are number of tributaries of
Ganga and Yamuna that originates or merge in the state
of Madhya Pradesh.
Pre-identified sites by the Nodal agency or self
identified sites with a clear resource potential (head
available in the catchment, discharge data and high
dependability of discharge, Regional and Sub Regional
Flow duration curves etc.) can provide the developer
with a clear understanding of the power potential.
Evacuation infrastructure is critical for project
development. The strength of state transmission system
is important factor that will decide the rate at which the
small hydro projects could be up-scaled.
As per MPERC order and the state policy, the cost up to
grid interconnection has to be borne by the project
developer.
Most of the preferred locations for small hydro projects
are located in the remote areas where the grid
connection cost may be high.
The state transmission system requires strengthening
with respect to new substations and transmission lines
in remote areas where large number of small hydro
potential exists.
Most of the SHP developers are not well versed with the
approval processes Technical, environmental,
administrative, water resources and land.
The type of the land selected Private, revenue or
forest is also an important factor for the project
developer. Securing rights on private or revenue land is
ranked easier by the project developers compared to
forest land.
Planning small scale hydropower projects requires
many stages of technical study to determine if a site is
technically and economically feasible.
Approval for forest land can take 12-18 months which
may dissuade the project developer.
Every SHP project is unique and require detailed
engineering to finalize the project configuration and
specifications.

Bringing certainty in resource assessment
1. Potential resource assessment is the most crucial factor affecting the feasibility of a small
hydro project. MPNRED may appoint a reputed technical consultant to assess region wise
potential of small hydro projects. The technical consultant shall identify potential sites by
PwC
81
using discharge data of various catchments and applying latest techniques of remote sensing
and/or computer modelling.
2. Detailed Projects Reports (DPRs) for these projects takes relatively longer because of the need
for reliable hydrological, geological, seismological and environmental data. These factors add
huge financial risks even for a short delay in the project or a small increase in project costs.
Detailed project report may be prepared for the project sites that are identified by the
technical consultant. These details may then be made available to the prospective developers
during the bid process.
Single window clearance system and land allocation (covered in policy review)
3. MPNRED may prepare a transmission strengthening plan in discussion with MPPTCL at the
locations which are in vicinity of the large number of small hydro project sites. MPNRED shall
make focussed efforts to push MPPTCL in strengthening the grid infrastructure which is
critical to up-scale the renewable energy investment in the state.
the project developers in taking up the projects are far away from the grid. MPNRED shall
make efforts to push MPPTCL to take responsibility to develop the infrastructure from the
grid sub-station to the pooling sub-station at the cost of the developer.
5. Investors of small hydro projects are different from utility scale wind and solar investors.
Targeting investors in small hydro project will require an outreach effort from MPNRED.
Investor conference may be planned twice in a year where all such investors will be invited.
MPNRED will explain the preparedness of the small hydro projects in terms of feasibility
study and/or DPR. Information on policy initiatives and advantages for investment in the
state may be disseminated during the investor conference.
PwC
82
Financing renewable energy
9. Financing RE
9.1. Financing structures
Financing of power sector projects in India takes a typical 30:70 debt equity structure. The up-scaling
of investment in RE sector depends upon the availability of capital in the form of debt from the
lenders and equity from the project developers. The availability of the capital depends largely on the
risk and return profile that is offered by the projects. The tariff approved by the regulatory
commission for RE projects in the state of Madhya Pradesh is one of the highest in the country and
therefore the returns from the projects is not a major issue that the project developers are concerned
provided that there is information available on the good sites for project development and the risk
related to consents, clearances and permits, regulatory and off-taker are kept under check.
The project developer is expected to manage the project related risks, manage stakeholders and the
agreements to successfully arrange financing for the project. The financial institutions are interested
in doing due diligence on the stakeholders, project agreements, project risk assessment and the
providers of the equity capital.
Figure 25: Financers view point
In most of the power

projects, financers
fund 60-70 of the
total project cost.
Understanding the
financers point of
view and protecting
their interest is
important for upscaling the
investment in
renewable energy
9.2. Types of financing

The type of financing available to RE projects can be broadly classified in to following categories
recourse financing, Non-recourse financing and short term financing.
9.2.1. Recourse financing

Most of the financing in India till date is based on the balance sheet where the loans are provided by
the bank to the project developer on the strength of balance sheet of the parent company. Apart from
the consent, clearance, permits, construction, policy and off-taker risk, RE projects have a limited
PwC
83
history of successful operation over the lifetime of the project. Therefore while providing debt to RE
projects, lenders are more comfortable in providing finance in the form of balance sheet financing
rather than taking direct exposure to the project cash flows.
RE projects are also financed in the form of limited recourse financing where in addition to collateral
of the project assets, banks demands financial assets from the project developer in the form of
guarantee from the parent or its affiliate with the strong balance sheet. The limitation of recourse
financing is that the balance sheet can be leveraged to a limited extent which limits the further growth
by putting downward constraint on the availability of the capital for project development.
9.2.2. Non-recourse financing

RE projects are yet to reach a stage where lenders are comfortable on the non-recourse financing
structure. Non-resource financing is desirable by the project developers but is available only to the
handful developers. Non-recourse financing is based on the strength of the project and its cash flows
rather than the balance sheet of the parent or affiliate of the project developer. The only recourse to
the lenders in such financing structure is the project assets. In case the RE project is not able to
generate sufficient cash flow to cover the debt service, the lenders can take recourse to only the
project assets. Due to this reason, the due diligence requirement on the projects that are financed
through non-recourse route is much stronger in terms of risk assessment and the project cash flows.
9.2.3. Short term financing

Short term financing is relevant where the timeline for implementation of the project is strict.
Arranging long term debt financing is expected to take 6-8 months of time. The projects that have to
adhere to the strict timeline may require part of the project development to be initiated immediately
after the project award. Due to lag of time between the availability of the long term debt to the project
and the project award, short term financing have its niche place in the debt financing. The need for
the short term financing may arise due to strict timeline for implementation, long time taken by the
lenders on project due diligence before loan disbursement, delay in the project due to consents,
clearance and permits, capital requirement for acquiring land and the pre disbursement loan
activities. There are multiple sources for securing the short term financing supplier credit,
financing by the EPC companies and the commercial banks.
9.3. Sources of finance

There are multiple sources of debt financing. Almost all the financial institutions have engaged
themselves in financing RE projects, though the exposure level envisaged by each of them may be
different.
Commercial banks are the major source of financing to the infrastructure projects. The role
of commercial banks is very important in order to up scale the investment in RE sector in the
state.
Non-banking financial companies (NBFC) are focussed on the key sectors and have
specialised teams for project appraisal. NBFCs take shorter time for project appraisal due to
their focus in the key sectors.
International Development Agencies (IDA) are bilateral and multilateral financing

institutions that are mandated to provide loans to the private or public sector. These
institutions can play a key role in development of the infrastructure projects a backbone to
the economy. Many IDAs have shown interest in financing RE projects which are proven to
have deep impact on the economy per unit of capital employed in comparison to the
PwC
84
conventional projects. IDAs provide loans to the project developers either directly or through
the financial intermediary such as commercial banks that have greater outreach to the
projects.
Transmission constraint is seen as a one of the biggest hurdle for development of the RE
projects. IDAs are interested in financing the enabling infrastructure that is required to upscale the investment in RE. ADB has provided loans to Rajasthan and Gujarat for
infrastructure strengthening for up-scaling of RE projects.
EXIM banks are specialised financing agencies backed by the Government to boost the
export from the host country. However this type of financing limits the options for the
developer to procure the equipment from the country providing finance. EXIM banks provide
loans to the project developers either directly or through the financial intermediary such as
commercial banks that have greater outreach to the projects.
Table 35: List of active financial institutions

Financial Institutions
Active Parties in Renewable Energy Financing
Commercial Banks
State Bank of India

Yes Bank
Axis Bank
IDBI Bank
ICICI Bank
Bank of Baroda
International Banks
Standard Chartered Bank

Rabo Bank
HSBC
BNP Paribus
Barclays Capital
Bank of America
Credit Suisse
NBFC
Power Finance Corporation

Rural Electrification Corporation
PFS Financial Corporation
IDFC
IL&FS
IDA
Asian Development Bank

International Finance Corporation
Indian Renewable Energy Development Agency
KfW
DEG
EXIM banks
Export-Import Bank of the United States

Export-Import Bank of the China
Export-Import Bank of India
Export Development Canada
9.4. Risks in financing

Financial institutions perform due diligence on the risk assessment of various tasks related to project
development starting from securing permits, clearances and consents up to operational phase of the
PwC
85
project covering resource assessment, project execution, technology risk and credit status of the offtaker. The financing cycle is typically 10 to 12 years including moratorium period. Therefore the debt
coverage has to be assessed at least for the period up to loan tenure.
9.4.1. Permits, clearances and consents risk

Permits, clearances and consents are starting point for the project development. Securing these is a
time consuming process often involving multiple agencies nodal agency, revenue land department,
forest department, agricultural department, irrigation department, transmission and/or distribution
licensee, department for industrial development, pollution control board, Archaeological department
and local bodies. The types of the permits, clearances and consents required for the RE project
depends upon type of the technology and the place of implementation. Due to involvement of the
multiple agencies and often acting independently is seen as a factor that delays the project
implementation.
The complexity of securing land for the project depends on the type of the land private, revenue or
forest. Securing revenue and the private land is considered relatively easy in comparison to the forest
land. The time frame for securing the forest land is estimated between 12 -18 months by the various
project developers. Therefore the type of the land chosen can be an important factor for time required
for implementation of the project.
Financial institutions are sceptical on lending to the projects that have not secured all permits,
clearances and consents required for execution of the project. Further the risk due to delay in
securing these is on the project developer failing which could result in penalties in the form of
forfeiture of the performance bank guarantee by the off-taker and/or the nodal agency.
Mitigation Actions
Actions by MPNRED
Facilitation by MPNRED with the different departments for securing permits, clearances and
consents.
Solar and wind power parks may be developed on PPP mode. MPNRED shall develop plans
for creating solar and wind parks that secure the basic permissions and clearances
upfront.
Solar park policy states that 25% of the power has to be sold to MPPMCL at APPC cost if the
project is developed on revenue or private land. This is prohibitive. Financers do not consider
REC revenues while appraising projects. This condition may be deferred until the time REC
mechanism is revived to the extent that its revenue stream is considered bankable.
9.4.2. Resource assessment risk

All the RE technologies require an assessment of the underlying resource for determining the
financial viability of the project. The quality of the data, the time period for which it is collected and
uncertainty levels of assessment are vital for accurately assuming the estimated range of CUF.
In case of solar and wind, the resource assessment can be done based on the satellite data or ground
mounted monitoring systems. The data of the ground mounted system is considered to be of high
quality in comparison to the satellite data. The uncertainty of the satellite data is more in case of the
wind power projects in comparison to the solar power projects. Thus the solar power project
developers are more likely to use the satellite data for site selection. Also financers are comfortable in
accepting the satellite data for appraising solar projects.
PwC
86
There is limited data that is available to the project developers on wind resource in the state of
Madhya Pradesh. There is limited number of masts in the state that are installed by CWET. However
monitoring of data is being done by the various prospective project developers in the state but this
data is kept private. The data collected data by the private developers is not made public by the
private developers due its proprietary nature.
Madhya Pradesh state is rich in water resources. There are number of rivers that flow through the
state of Madhya Pradesh - Narmada, Mahanadi, Godavari, Tapi, Mahi, Chambal, Betwa, Ken and Son.
As part from these are number of tributaries of Ganga and Yamuna that originates or merge in the
state of Madhya Pradesh. Limited number of studies has been undertaken to assess the hydro
potential in the state and therefore the potential assessed till date do not commensurate with the
actual potential in the state.
As a financer of a RE project, the quality of the resource data and the agency performing the
assessment on the data are aspects based on which the appraisal process is undertaken.
Mitigation Actions
Actions by MPNRED
MPNRED shall make efforts to install more number of wind masts in the state to collect data
and disseminate the information collected to the project developers. A reputed technical
consultant shall be engaged for installing wind masts and collecting information. This
information may then be disseminated to the prospective project developers.
Wind and solar farms shall be backed by the resource assessment reports by a reputed
technical consultant for better response from the project developers.
The data on small hydro projects is limited and therefore a comprehensive study shall be
undertaken by MPNRED to collect the data by engaging a reputed technical consultant for
resource assessment.
There is limited data on biomass surplus available in the state. Detailed region wise study of
biomass surplus shall be undertaken by MPNRED. The information collected shall be shared
with the prospective project developers.
Actions by project developers
The project developers shall undertake the independent assessment of the renewable resource
by the reputed agencies to mitigate the risk of acceptability of such reports by the financers.
Wind project developers shall collect wind resource data by installing wind monitoring masts
in case data for the particular site is not available from the public sources such as CWET.
Solar data collected from satellite is available with the agencies like Solar GIS which is
considered reasonable and could be used by the project developers.
Biomass resource assessment can be undertaken by the project developers by engaging

reputed independent consultants.
Small hydro project developers shall engage reputed independent consultants to collect water
resource data by installing flow monitoring instruments for at least a year.
9.4.3. Off-taker risk

The providers of the capital, both debt and equity financers are interested in knowing the financial
capability of the off-taker. The RE procurement is primarily driven by the state utilities including
PwC
87
small proportion that is driven by the captive and third party consumers. Most of the utilities in India
are in bad financial health. However, Madhya Pradesh Power Management Company Limited has
been able to turn around its technical capability by entering into long term contracts for power
procurement. The state of Madhya Pradesh is one of the states that are not power deficit. MPPMCL
has been able to increase the supply hours to consumers (24 x 7 supply to domestic and 10 hours of
quality supply to agriculture consumers) resulting in higher coverage, better consumer service and
revenue potential.
The huge investment program is undertaken by the distribution companies to reduce technical losses.
This investment in infrastructure is expected to provide benefits going forward in terms of reduced
losses and improving financial health.
RE is expensive in comparison to the conventional energy. Therefore commercial agreements for
power offtake shall be for the project life or at least equal to the tenure of the financing agreement.
The projects that are executed on preferential tariff by MPPMCL are executed for the project life.
Figure 26: Capital investment by Discoms (INR Crores)
FY14
1,030
FY13
423
FY12
429
FY 11
276
0
947
532
154
339
366
364
348
369
500
480
1000
ADB
1,119
836
994
1500
RAPDRP
2000
RGGVY
2500
3000
3500
4000
Feeder Segregation
Financers insist on the compliance with the policy and regulatory framework and the payment
security mechanisms in the commercial agreements.
Mitigation Actions
Actions by MPPMCL
The PPA may provide payment security thorough revolving letter of credit.
The PPA shall be signed by the off-taker at the tariff determined by the MPERC.
All the power produced by the project shall be procured by the off-taker.
PPA should be at least equal to term of the financing agreement (10-12 years). MPERC advises
the tenure for the project life.
Payment shall not be upheld due to litigation. MPERC also advices the same.
9.4.4. Regulatory risk

The RPO regulation of the state mandates the certain percentage of energy that must be procured
from Solar and Non-Solar technologies. The RPO is not strictly enforced due to which there is
uncertainty on the quantum of RE that will be procured by the state utilities. However, the PPAs that
are signed at preferential tariff are more stable from financing point of view due to long term
commitment by the state utility.
PwC
88
The PPAs that are structured to supply power to the third party are subject to various uncertainties
on charges wheeling and banking charges, transmission tariff and electricity duty. These charges
are not fixed for the tenure of the project and are subject to changes during the project life. These
uncertainties create a doubt while assessing the financial viability of the project.
The projects that supply power at a tariff less than Average Power procurement Cost (APPC) to the
state utility or supply power to the third party or captive consumption without making use of the
preferential wheeling and banking charges, transmission tariff and/or electricity duty are eligible for
registration under REC mechanism. REC prices are subject to change after the end of the control
period which ends in 2017. There is uncertainty on the price of the floor and the forbearance price
after the end of the control period. The project developers with the exposure of 25 years and the
lenders with the exposure of 10-12 years are uncertain on investing into projects that are registered
under REC mechanism.
Mitigation Actions
Action by MPERC
MPERC shall monitor the RPO compliance of the obligated entities year on year.
MPERC shall take action in the form of financial penalty for non-compliance.
Action by the project developer
The project developers shall ensure that the project is sustainable on the tariff without any
fallback on the REC prices.
9.4.5. Project execution risk

In addition to permits, consents and clearances, the financial strength of the project developer, prior
experience of the project developers, their project management skills and their technical ability to
execute the project on time is one of the critical factors that can impact the financial viability of the
project. Financers are sceptical of the project developers that dont have prior experience in
developing solar power projects or where the EPC contractors that are engaged by them are not
experienced.
In past, it has been observed that the both the factors inexperience of the project developers and/or
the EPC contractors have delayed the project execution as a result of which the contract performance
guarantees have been forfeited by the procurer. Such actions may render the project financially
unviable.
In comparison to turnkey, some of the project developers execute the project by dividing the complete
project in different modules that are in turn executed by the different contractors. The split model
works well in case the investor has a good team for project management. Otherwise, turnkey shall be
the preferred route for the investor. The financers insist on contracting the project to the turnkey
solution provider where guarantees may be provided on generation or performance of the project
post implementation.
It has been observed in the past that the over aggressive bidding by the project developers may
backfire. Such projects may face difficulties in achieving financial closure. Therefore qualitative
technical criteria in the bid process must be designed to decrease the probability of project failure due
to financial closure.
PwC
89
Mitigation Actions
Actions by MPNRED
Setting strong qualification criteria for selecting the project developers.
Setting contract performance fee for timely implementation.
Assessing the capacity to arrange capital (both debt and equity) by assessing the financial
Actions by the project developer
Selection of the EPC contractor having strong prior experience in implementing the project.
Having appropriate liquidity damages on delay of project or under performance of the project.
Securing performance guarantees against the letter of credit or by upholding 10% of the
contract payment.
9.4.6. Technology risk

Solar technology is still at the nascent stage with operational history of not more than 5-7 years in
India. Therefore the long term performance of solar projects in Indian conditions is still unknown.
Financers are therefore particular on the technology that is adopted by the solar project developers.
It has been observed that the projects performing in the same region can have a wide range of PLF.
This is due to in appropriate selection or limiting the selection criteria on sub standard modules,
inverters or structures to save upfront capital cost. Special attention is paid by the financers to the
technology selected by the investor.
Additionally, the O&M contract shall also be provided to the reputed entity having prior experience in
operating and maintain RE projects. The higher project availability maintained by experienced O&M
contractor results in increase in project cash flows.
Mitigation Actions
Actions by the project developer
Verifying the design of the project for optimal performance.
Selection of equipment must be done based on standards such as BIS or IEC.
Selecting reputed O&M contractor having prior experience.
PwC
90
Key recommendations
10. Key Recommendations

10.1. Bringing investment certainity
Clearly identified thrust areas
The RE policy for Madhya Pradesh should clearly specify the thrust areas for harnessing RE
sources in the most economic way. The thrust areas can be based on the RE potential
available, technology maturity and other factors impacting the investments.
Short and long term targets for RE technologies
RE targets should be specified, which will act as a guiding factor for different programmes in
the state and assist in identification of the specific measures to achieve the targets.
10.2. Single window clearance system
Institutionalization of Single Window Clearance provision to be taken as priority. Option of

providing approval for projects with capacity of less than 5 MW by lower rank committee can
be explored.
Need to streamline the process of single window clearance, identify the roles & responsibilities
of all institutions, setting time-bound approval process.
In case, the concerned department fails to respond within the stipulated time (say 45 days),
necessary concurrence/ approval/ clearance to the project should be deemed to have been
granted.
Clearly identifying the requirements/ proofs/ supporting required by different departments

and developing appropriate formats for different technologies. Simplified requirements for
projects of less than 5 MW capacity each can be provided.
Periodical monitoring of the status of clearances for RE projects under review, identifying
issues.
In case, the land is identified by MPNRED for solar and wind parks, it may obtain all statutory
clearances from other relevant departments and allocate such lands for RE Project
development.
10.3. Land allocation for RE projects
Identification of land available for RE projects : Deputy Commissioners of all the districts can
identify the inventory of surplus & unused land available with the State Government, PSUs,
Urban Local Bodies/ Gram Panchayat lands and suitable private waste lands which can be
used for installation of RE projects. The identification exercise can be done periodically.
Identified land for RE projects can be allocated to the MPNRED. The allocated land can be
o
In case land identified for the project is in forest area, the equivalent area has to be
PwC
91
Key recommendations
10.4. Focus on new formats for up-scaling RE

The sector has seen investment from public oil and gas industry and public power generation
utilities. In discussion with MPNRED, it was informmed that PSU companies have
approached them for developing RE projects. Structuring the JV partnership will require an
understanding on various aspects of the project development. MPNRED may appoint a
consultant to prepare the institutional structure and the legal agreements that may be
required for JV partnership for developing RE projects.
Developing solar parks
MPNERD may make due efforts to facilitate the development of the solar parks in the state.
As per solar policy, solar parks can be developed in PPP mode. Solar parks can accelerate the
development of RE in the state. Solar park concept can accommodate small and large project
developers. Solar parks can be sized in a manner that yield cost economics to the project
developers and competitive tariff to the procurer.
Solar parks that are offered must provide the project investors with the information on
institutional structure on managing and operating the solar park, the entity responsible for
Solar parks projects may require ground data monitoring to strongly position the proposed
solar parks. MPNERD may make due efforts to facilitate the development of the solar parks by
providing investors with key clearances, data on solar resource and enabling infrastructure for
Solar park policy states that 25% of the power has to be sold to MPPMCL at APPC cost if the
project is developed on revenue or Government land. This is prohibitive. Financers do not
consider REC revenues while appraising projects. This condition may be deferred until the
time REC mechanism is revived to the extent that its revenue stream is considered bankable.
Developing wind parks
MPNERD may make due efforts to facilitate the development of wind parks in the state. Wind
parks can be developed in PPP mode. Wind parks can accelerate the development of RE in the
state. Wind park concept can accommodate small and large project developers. Wind parks
can be sized in a manner that yield cost economics to the project developers and competitive
tariff to the procurer.
Wind parks that are offered must provide the project investors with the information on
institutional structure on managing and operating the wind park, the entity responsible for
Wind parks projects will require ground data monitoring to strongly position the proposed
wind parks. MPNERD will make due efforts to facilitate the development of the wind parks by
providing investors with key clearances, data on wind resource and enabling infrastructure for
PwC
92
Key recommendations
10.5. Provide certainity on resource assessment

Solar resource assessment
Solar resource data is required by the project developers to assess the CUF. Solar data
monitored using satellite imaging is reliable and is used by the project developers for making
financial investment decision. Financers are also comfortable in financing the projects based
on satellite data if the estimates are confirmed by the reputed third party technical consultant.
The bankers generally rely on the third party assessments of CUF for financing solar projects.
MPNRED may appoint a reputed third party technical consultant to map the solar resource
assessment for the entire state. This will provide the project developers with the information
that is bankable and will reduce the possibility of project failure at the stage of financial
closure.
Wind resource assessment
Data availability serves as a starting point for the project developers for making investments.
A reputed technical consultant may be engaged by MPNRED for mapping wind resource at a
broad level to identify the good regions where wind masts could be installed for micro level
assessment.
Ground monitoring stations improves the quality of data. The project developers and
financers require mast data for more than 1 year for assessment of CUF. The wind mast data is
reliable only 10 15 km radius. A reputed technical consultant may then be engaged by
MPNRED to install masts for wind monitoring at the selected sites. This data may then be
shared with the potential investors for project development at the RFP stage.
Biomass resource assessment
Biomass fuel supply sector is highly unorganized and consequently the supply side market is
unpredictable and highly volatile. The biggest problem plaguing the biomass sector is the nonavailability of reliable and affordable feedstock at a competitive price. MPNRED may
undertake detailed study by appointing third party technical consultant on biomass feedstock
assessment for each district for both the agricultural and forest waste to bring certainty on
availability, quality and pricing of biomass in the state.
To overcome the problems posed by the existence of multiple middlemen (transporters,

traders etc.) in the biomass feedstock supply chain, and to streamline the interaction between
feedstock sellers and buyers, an organized/structured market for biomass may be developed.
The market would reduce transaction costs and also allow for true and undistorted economic
price discovery of feedstock based on available supply and demand.
It is common for biomass power plants to receive more than 60-70% of their annual feedstock
requirements during the harvesting season alone. MPNRED will issue guiding document for
addressing issues in biomass supply chain like transportation, handling, storage and drying.
In order to ensure long term fuel availability and sustainable price, MPNRED may promote
plantation backed biomass power plants. Development of energy plantation on Government
waste land and degraded forest land may be allowed for creating supply of supplementary fuel
for biomass power plants.
Small hydro resource assessment
PwC
93
Key recommendations
Potential resource assessment is the most crucial factor affecting the feasibility of a small
hydro project. MPNRED may appoint a reputed technical consultant to assess region wise
potential of small hydro projects. The technical consultant shall identify potential sites by
using discharge data of various catchments and applying latest techniques of remote sensing
and/or computer modelling.
Detailed Projects Reports (DPRs) for these projects takes relatively longer because of the need
for reliable hydrological, geological, seismological and environmental data. These factors add
huge financial risks even for a short delay in the project or a small increase in project costs.
Detailed project report may be prepared for the project sites that are identified by the
technical consultant. These details may then be made available to the prospective developers
during the bid process.
10.6. Focus on facilitation of infrastructure development

Grid connectivity
MPNRED has prepared a transmission strengthening plan in discussion with MPPTCL at the
Based on the interest received from the project developers in the RFP process, certain regions
can be identified with higher potential for project development. MPPTCL should establish
pooling points for evacuation of power in such identified regions. It will be cost effective as a
number RE projects can get connected to these pooling points. Such facilities have already
been created in some states (e.g. In Rajasthan, pooling points have been created for WEG
evacuation).
Right of way issues is one of the major concerns of the project developers that may dissuade
A coordination committee comprising representatives of MPNRED, MPPTCL and distribution

The growth of RE in the state may be limited due to inadequate interstate transmission
Report on Green Energy Corridor by PGCIL includes the states of Tamil Nadu, Karnataka,
Pradesh is able to secure more than 7,000 MW in the RFP 1 and 2 and 250 MW in JNNSM
phase 2 batch 1, MPNRED shall make efforts to include Madhya Pradesh in the proposed
Green Energy Corridor so that power could be evacuated outside the state.
PwC
94
Key recommendations
10.7. Target funding

Multilateral and bilateral financing agencies have shown their interest in developing the
transmission infrastructure to up-scale the RE investment. MPNRED may form the
According to National Clean Energy Fund (NCEF), the projects relating to creation of power
13th Finance Commission provided guidelines for implementation of the incentive scheme,
31, 2014. Such grants may be advised by the Finance Commission for the coming years. Ifsuch
grant is continued in future, MPNRED may estimate the grant that could be drawn based on
the guidelines provided by the 13th Finance Commission.
Green Energy Fund is floated by Maharashtra to support transmission infrastructure. For

o
The state may collect the cess and utilizes the same for various activities development of
10.8. Managing investment and project execution risk

Tenure of the commercial agreement with the procurer shall be for the term of project life.
Payment security by the off-taker (covered in paragraph 10.9)
PwC
95
Key recommendations
The projects envisaged under third party sale or captive consumption mode are likely to use
o

efforts are required by all the state regulators to enforce the RPO.
Setting strong qualification criteria for selecting the project developers.
Setting contract performance fee for timely implementation.
Assessing the capacity to arrange capital (both debt and equity) by assessing the financial
10.9. Push MPERC, MPPMCL and project developers for action on RE

development
Mitigate off-taker risk - Action by MPPMCL
The PPA may provide payment security thorough revolving letter of credit.
The PPA shall be signed by the off-taker at the tariff determined by the MPERC.
All the power produced by the project shall be procured by the off-taker.
PPA should be at least equal to term of the financing agreement (10-12 years). MPERC advises
the tenure for the project life.
Payment shall not be upheld due to litigation. MPERC also advices the same.
Mitigate regulatory risk - Action by MPERC
MPERC shall monitor the RPO compliance of the obligated entities year on year.
MPERC shall take action in the form of financial penalty for non-compliance.
Mitigate regulatory risk - Action by the project developer
The project developers shall ensure that the project is sustainable on the tariff without any
fallback on the REC prices.
Mitigate project execution risk - Actions by the project developer
Selection of the EPC contractor having strong prior experience in implementing the project.
Having appropriate liquidity damages on delay of project or under performance of the project.
Securing performance guarantees against the letter of credit or by upholding 10% of the
contract payment.
PwC
96
Key recommendations
Mitigate technology risk - Actions by the project developer
Verifying the design of the project for optimal performance.
Selection of equipment must be done based on standards such as BIS or IEC.
Selecting reputed O&M contractor having prior experience.
10.10. Investment promotion
Investor conference may be planned twice in a year where all RE power investors may be
invited. Information on RE resource assessment study undertaken by MPNRED, policy
PwC
97
Monitoring and evaluation framework
11. Monitoring and evaluation framework

Monitoring and evaluation framework provides the vision to the policy makers on the progress of the
implementation plan. Actions by the policy makers will influence the engagement of the different
stakeholders in the implementation framework. The targets set under this report shall be monitored
on regular basis.
11.1. Marking primary indicators

MPNRED shall monitor following primary indicators on continuous basis projects implemented,
projects in pipeline, barriers to project development, reasons for project failure and impact of policy
initiatives proposed in this report. At the end of each quarter, MPNRED shall compile the
information on the stated parameters to gauge the progress in delivering the target for 2020.
11.2. Transparency in project monitoring

MPNRED is in process of developing project montoring tool that will be capable of monitoring the
implementaion progress of the projects registered with MPNRED. The tool will provide useful inputs
to MPNRED on the most critical stages where poject developers are struck during implementaion.
Tool will also provide access to the project developers. Project developers will be able to view the
status of their project in terms of actions that are required by MPNRED. The tool is expected to
increase the transparency on the project approval process which may improve investor confidence.
11.3. Actions taken by MPNRED

Best practices discussed in this report on the policies, financing and project implementation will
require the action from each of the stakeholders. The policy makers will have to play a pivotal role in
collecting the borad evidence on information such as resource assessment at the micro level, the
studies on the transmission strengthening based on the location of the projects awarded thorugh RFP
process, creating funds to support enabling infrastructure and facilitating project developers in
obtaining permits, clearances and concents.
The reports and studies that are commissioned by MPNRED will be shared with the propective
project developers and financers to make the market informationally efficiecnt. As far as possible, the
reports and studies that are commissioned by MPNRED shall be made available online so that the
information can be readily accessed.
11.4. Feedback from stakeholders

MPNRED shall continue to engage with the project developers, financers and other stakeholders to
monitor the progress and seek their feedback on the impact of the policy actions implemented.
MPNRED shall also seek feedback on the new constrainsts and opportunities that may emerge in
future and shall develop an action plan to address the same.
11.5. Device future actions

The upscale plan shall be revised each year to provide update on the progress, actions taken by the
policy makers and the impact of the same on the project implementation for each technology. In case
there are any major deviations to the existing upscale plan, the revised plan will validate the current
set of assumptions and reassess the actions that are required to put the delivery progress on the path
to achieve the target capacity addition by 2020.
PwC
98
Appendix
Appendix A. - Assessing Wind Energy Potential

A.1. Monitoring stations data recorded by CWET in the state of Madhya
Pradesh
Site
District
Wind Speed (m/s)
A lot
Ratlam
4.63
Banbir Kheri
Guna
Barkheri
Ujjain
Barodiya
WPD (W/m2)
Wind Shear
148
0.14
5.62
145
0.14
5.11
150
0.14
Mandsaur
4.74
92
0.14
Baroli
Indore
4.47
151
0.14
Belma
Indore
4.18
138
0.14
Bodhina
Ratlam
5.14
189
0.14
Bori
Barhanpur
5.24
151
0.14
Chorasia Badhalia
Ratlam
4.95
174
0.14
Garhidadar
Shadol
5.16
111
0.14
Ghat Pipariya
Betul
4.89
112
0.14
Jaithal Hill
Ujjain
4.53
110
0.14
Jamgodrani
Dewas
5.00
220
0.19
Kalapahad
Sehore
3.94
88
0.14
Kanchroota
Dhar
5.26
119
0.14
Kawasa
Ratlam
4.22
127
0.14
Kheda
Dhar
5.05
192
0.17
Kukru
Betul
5.28
255
0.22
Lahori
Shajapur
4.81
145
0.14
Machla
Indore
4.70
153
0.14
Mahuriya
Shajapur
5.28
255
0.13
Mamatkheda
Ratlam
5.57
255
0.14
Mandwa
Khargaone
5.10
123
0.14
Mirzapur
Sehore
4.27
146
0.24
Nachanbhor
Dhar
5.07
120
0.14
Nagda
Dewas
6.25
371
0.14
Pahari
Satna
4.03
63
0.14
Purtala
Chindwara
5.02
101
0.14
Sanawad
Khargaone
3.86
117
0.14
Searmau
Betul
4.97
115
0.14
Sendhva
Badwani
5.40
215
0.13
Sodang Hill
Ujjain
4.95
162
0.14
Tanoriya
Shajapur
4.38
148
0.14
Ubhariya
Betul
5.11
114
0.14
Vallyarpani
Badwani
5.25
287
0.14
PwC
99
Appendix
Appendix B. - Assessing Biomass Energy Potential

B.1. Potential of biomass from agricultural residues
Districts
Paddy
straw
(MW)
Wheat
husk
(MW)
Jowar
husk
(MW)
Bajra
husk
(MW)
Maize
husk
(MW)
Gram
husk
(MW)
Moong
Alirajpur
0.19
2.92
0.95
1.12
2.94
0.28
0.05
8.44
Anuppur
5.63
1.67
0.02
0.00
0.73
0.10
0.00
8.15
Askhonagar
0.13
16.53
0.01
0.00
0.64
7.86
0.03
25.20
(MW)
Total
Potential
(MW)
Balaghat
22.47
1.70
0.01
0.00
0.53
0.49
0.01
25.21
Barwani
0.07
4.19
13.92
0.76
10.01
1.46
0.29
30.69
Betul
5.74
12.46
2.15
0.00
6.83
1.81
0.02
29.01
Bhind
0.68
20.03
0.51
3.68
0.00
1.55
0.02
26.46
Bhopal
0.04
11.23
0.01
0.00
0.25
1.62
0.01
13.15
Burhanpur
0.05
1.49
1.43
0.00
1.14
0.16
0.02
4.29
Chhatarpur
0.12
17.72
0.97
0.00
0.02
4.75
0.12
23.69
Chhindwara
2.67
24.81
3.33
0.01
54.91
6.19
0.06
91.99
Damoh
2.27
8.32
0.13
0.00
0.16
7.35
0.02
18.26
Datia
0.73
16.62
0.14
0.10
0.04
2.40
0.09
20.12
Dewas
0.01
23.44
0.54
0.00
0.86
8.37
0.01
33.23
Dhar
0.03
27.34
2.13
0.24
5.44
4.77
0.14
40.09
Dindori
6.01
3.00
0.01
0.00
1.78
0.21
0.00
11.00
Guna
0.05
20.08
0.19
0.01
0.95
4.67
0.04
25.98
Gwalior
4.32
19.62
0.54
0.84
0.01
1.43
0.01
26.76
Harda
0.04
26.56
0.04
0.00
0.06
1.58
0.00
28.28
Hoshangabad
9.44
48.20
0.09
0.01
0.18
1.30
0.00
59.22
Indore
0.00
25.14
0.01
0.00
0.23
3.15
0.00
28.53
Jabalpur
8.19
14.69
0.13
0.00
0.34
2.77
0.04
26.16
Jhabua
0.27
5.22
0.18
0.00
4.91
0.58
0.01
11.16
Katni
5.97
11.43
0.09
0.00
0.25
1.16
0.00
18.91
Khandwa
0.41
16.66
1.34
0.00
1.18
1.16
0.04
20.78
Khargone
0.06
13.46
4.00
0.04
3.95
0.62
0.09
22.22
Mandla
3.92
2.89
0.01
0.00
0.85
0.18
0.00
7.85
Mandsaur
0.00
16.81
0.04
0.00
2.71
1.75
0.03
21.32
Morena
0.07
16.21
0.03
11.50
0.01
0.40
0.02
28.23
Narsinghpur
0.79
11.94
0.24
0.00
0.06
6.56
0.07
19.67
Neemuch
0.00
7.67
0.07
0.00
4.22
1.33
0.00
13.29
Panna
2.77
6.10
0.43
0.01
0.21
4.03
0.05
13.59
Raisen
1.38
35.83
0.15
0.00
0.47
10.00
0.03
47.87
Rajgarh
0.02
20.00
1.55
0.00
4.91
5.50
0.05
32.03
Ratlam
0.03
14.04
0.00
0.01
5.97
4.08
0.05
24.17
Rewa
9.20
22.20
0.66
0.01
0.04
3.56
0.03
35.70
Sagar
0.26
20.43
0.15
0.02
0.25
10.54
0.11
31.76
Satna
6.43
23.66
0.25
0.00
0.05
1.75
0.07
32.21
Sehore
2.33
23.56
0.13
0.00
0.79
4.06
0.01
30.89
Seoni
12.38
17.24
0.18
0.00
1.79
1.75
0.01
33.35
PwC
100
Appendix
Districts
Paddy
straw
(MW)
Wheat
husk
(MW)
Jowar
husk
(MW)
Bajra
husk
(MW)
Maize
husk
(MW)
Gram
husk
(MW)
Moong
Shahdol
10.34
5.06
0.11
0.00
0.76
0.21
0.02
Shajapur
0.00
15.78
0.46
0.00
1.64
3.57
0.01
21.47
Sheopur
2.43
16.15
0.30
1.73
0.09
0.55
0.01
21.26
Shivpuri
0.83
19.50
0.01
0.55
1.64
4.12
0.10
26.75
Sidhi
4.41
7.26
1.00
0.00
0.44
0.75
0.02
13.88
Singroli
6.87
4.45
0.61
0.00
2.38
2.47
0.01
16.79
Tikamgarh
0.27
18.26
0.19
0.00
0.06
1.26
0.07
20.12
Ujjain
0.00
26.54
0.02
0.00
0.59
6.54
0.01
33.71
Umaria
2.39
2.74
0.05
0.00
0.59
0.25
0.01
6.030
Vidisha
0.04
20.48
0.02
0.00
0.29
8.91
0.02
29.76
(MW)
Total
PwC
Total
Potential
(MW)
16.49
1,255
101
Appendix
Appendix C. - Assessing Small Hydro Potential

C.1. Details of potential canal fall projects in the state of Madhya Pradesh
District
Site
Scheme
Capacity (MW)
Dewas
Chandrakesher
Canal Fall
0.10
Dewas
Gajakhedi
Canal Fall
0.15
Dewas
Malakhar
Canal Fall
0.07
Dewas
Loharda
Canal Fall
0.07
Dewas
Dani
Canal Fall
0.07
Dhar
Kunda
Canal Fall
0.15
Dhar
Jhedi
Canal Fall
0.15
Dhar
Lakhankot
Canal Fall
0.23
Harda
Ahalwari
Canal Fall
0.13
Harda
Sonkhedi
Canal Fall
0.10
Harda
Manjli
Canal Fall
0.10
Harda
Abgaonkhurd
Canal Fall
0.10
Harda
Roalgaon
Canal Fall
0.05
Harda
Kapasi
Canal Fall
1.73
Hoshangabad
Dharam Kundi
Canal Fall
1.45
Hoshangabad
Dobka
Canal Fall
0.08
Indore
Khodaria-I
Canal Fall
0.15
Indore
Khodaria-II
Canal Fall
0.08
Jhabua
Bhilatpura
Canal Fall
0.10
Jhabua
Amlal
Canal Fall
0.13
Jhabua
Padiyal
Canal Fall
0.20
Katni
Sleemanabad
Canal Fall
4.15
Khandwa
Pokhar
Canal Fall
0.13
Khandwa
Balrampur
Canal Fall
0.10
Khandwa
Rustampur
Canal Fall
0.15
Khargone
Bhagwanpura
Canal Fall
0.28
Khargone
Maddani
Canal Fall
0.20
Khargone
Behrupura
Canal Fall
0.20
Khargone
Kolapur
Canal Fall
0.05
Mandla
Madhopur
Canal Fall
0.10
Mandla
Bhapsa
Canal Fall
0.20
Mandla
Bichhiya
Canal Fall
0.08
Mandla
Chhatarpur
Canal Fall
0.75
Mandla
Gawara
Canal Fall
1.25
Mandla
Silgiti
Canal Fall
0.40
Mandla
Kamara
Canal Fall
0.45
Mandla
Banchhipani
Canal Fall
0.10
Raisen
Bari
Canal Fall
0.10
Raisen
Patni
Canal Fall
0.10
Raisen
Amrawad-I
Canal Fall
0.15
Raisen
Amrawad-II
Canal Fall
0.15
Satna
Patharhata
Canal Fall
7.13
PwC
102
Appendix
District
Site
Scheme
Satna
Gunwara
Canal Fall
5.40
Satna
Birma
Canal Fall
3.25
Total
Capacity (MW)
30.21
PwC
103
Appendix
C.2. Details of potential dam toe projects in the state of Madhya Pradesh
District
Site
Scheme
Capacity (MW)
Barwani
Ralawati
Dam Outlet
0.05
Barwani
Ralawati
Dam Outlet
0.05
Barwani
Lower Goi
Dam Outlet
1.60
Betul
Sampna
Dam Outlet
0.15
Dewas
Chandra-Kesher
Dam Outlet
0.15
Dewas
Chandra-Kesher
Dam Outlet
0.05
Dewas
Paras
Dam Outlet
0.05
Dhar
Man
Dam Outlet
0.40
Dhar
Man
Dam Outlet
0.95
Dhar
Sakelda
Dam Outlet
0.05
Dindori
Upper Narmada
Dam Outlet
0.40
Dindori
Upper Narmada
Dam Outlet
0.30
Harda
Ganjal
Dam Outlet
0.55
Harda
Ganjal
Dam Outlet
0.10
Harda
Imlidhana
Dam Outlet
0.05
Hoshangabad
Tawa
Dam Outlet
2.35
Hoshangabad
Dokarikheda
Dam Outlet
0.10
Hoshangabad
Morand
Dam Outlet
1.55
Indore
Choral
Dam Outlet
0.15
Indore
Nakheri
Dam Outlet
0.10
Jabalpur
Bargi Diversion
Dam Outlet
15.00
Jabalpur
Barnoo
Dam Outlet
0.20
Jabalpur
Madai
Dam Outlet
0.05
Jabalpur
Atariya
Dam Outlet
0.45
Jabalpur
Bahoribund
Dam Outlet
0.05
Jabalpur
Bahoribund
Dam Outlet
0.05
Jabalpur
Pariat
Dam Outlet
0.05
Jhabua
Mod Sagar
Dam Outlet
0.05
Jhabua
Jobat
Dam Outlet
0.40
Jhabua
Dhamoi
Dam Outlet
0.10
Khandwa
Sukta
Dam Outlet
0.35
Khandwa
Chhota Tawa
Dam Outlet
0.05
Khargone
Gadigaltar
Dam Outlet
0.05
Khargone
Navalpura
Dam Outlet
0.05
Khargone
Dejla-Dewada
Dam Outlet
0.35
Khargone
Satak
Dam Outlet
0.05
Khargone
Jhirbhar
Dam Outlet
0.05
Khargone
Upper Beda
Dam Outlet
0.35
Khargone
Segwal
Dam Outlet
0.05
Khargone
Sipton
Dam Outlet
0.05
Khargone
Ambak
Dam Outlet
0.05
Mandla
Matiyari
Dam Outlet
0.35
Mandla
Matiyari
Dam Outlet
0.30
Mandla
Majhgaon
Dam Outlet
0.05
PwC
104
Appendix
District
Site
Scheme
Mandla
Bichhiya
Dam Outlet
0.10
Mandla
Dhuandhar
Dam Outlet
0.05
Mandla
Upper Burhner
Dam Outlet
0.25
Mandla
Upper Burhner
Dam Outlet
0.05
Mandla
Halon
Dam Outlet
0.55
Mandla
Dobatoria
Dam Outlet
0.05
Mandla
Dobatoria
Dam Outlet
0.20
Narsinghpur
Sher
Dam Outlet
0.15
Narsinghpur
Macharewa
Dam Outlet
0.30
Narsinghpur
Shakkar
Dam Outlet
4.60
Narsinghpur
Dudhi
Dam Outlet
1.55
Raisen
Mogha
Dam Outlet
0.10
Raisen
Upper Palakmatti
Dam Outlet
0.35
Raisen
Lower Palkamatti
Dam Outlet
0.15
Sheore
Kolar Barrage
Dam Outlet
0.15
Sheore
Kolar Barrage
Dam Outlet
0.15
Sheore
Seep Kolar Link
Dam Outlet
0.10
Sheore
Lower Kolar
Dam Outlet
4.00
Sheore
Ghoghara
Dam Outlet
Total
Capacity (MW)
0.25
40.80
PwC
105
Appendix
C.3. Details of potential run of river projects in the state of Madhya Pradesh
District
Site
Scheme
Capacity (MW)
Balaghat
Tapla
Run of river
3.00
Barwani
Salikalan
Run of river
0.20
Barwani
Nander
Run of river
0.10
Barwani
Bhilgaon
Run of river
0.20
Barwani
Bhilkhera
Run of river
0.20
Barwani
Bhadal-I
Run of river
0.30
Barwani
Bhadal-II
Run of river
0.20
Betul
Laniya
Run of river
0.70
Betul
Sarni
Run of river
0.70
Betul
Ramakol
Run of river
0.50
Chhindwara
Tendukhera
Run of river
2.00
Chhindwara
Siyajhiri
Run of river
2.50
Chhindwara
Devri
Run of river
0.30
Chhindwara
Salaiya Swami
Run of river
0.10
Dewas
Kadevri
Run of river
0.30
Dewas
Ratgarh
Run of river
0.50
Dhar
Talisaria
Run of river
0.60
Dhar
Kundiya
Run of river
1.00
Dhar
Surajpura
Run of river
0.50
Dhar
Nimkhera
Run of river
0.50
Dhar
Amlatha
Run of river
0.50
Dhar
Tor
Run of river
0.30
Dhar
Kanteri
Run of river
0.30
Dhar
Kapsi
Run of river
0.40
Dhar
Kukshi
Run of river
0.20
Dindori
Nawatola
Run of river
1.00
Dindori
Bhimkundi
Run of river
6.00
Dindori
Kamra Sonrha
Run of river
5.00
Dindori
Kaneri
Run of river
6.00
Harda
Jawardha
Run of river
0.50
Harda
Uskul
Run of river
0.70
Harda
Mahagaon
Run of river
0.40
Harda
Mahukhal
Run of river
1.00
Harda
Manawa
Run of river
1.00
Indore
Gunjara
Run of river
0.20
Indore
Dhaydiya
Run of river
0.20
Indore
Patalpani
Run of river
0.10
Jabalpur
Bhikhampur
Run of river
10.00
Jabalpur
Jhurki
Run of river
0.50
Jabalpur
Temur
Run of river
1.00
Jabalpur
Khinni
Run of river
5.00
Jabalpur
Muraith
Run of river
5.00
Jabalpur
Pararia
Run of river
1.00
Jalbalpur
Piparsara
Run of river
1.00
PwC
106
Appendix
District
Site
Scheme
Jhabua
Baladamung
Run of river
0.30
Jhabua
Dudalwat
Run of river
0.30
Khargone
Banswa
Run of river
0.50
Khargone
Abhapuri
Run of river
1.00
Khargone
Bhagwanpura
Run of river
0.50
Khargone
Hirapur
Run of river
0.20
Khargone
Bhaisawad
Run of river
0.10
Mandla
Malpur
Run of river
5.00
Mandla
Patpara
Run of river
3.00
Mandla
Mangela
Run of river
4.00
Mandla
Lamna
Run of river
8.00
Mandla
Marpha
Run of river
1.00
Narsinghpur
Shyamkhera
Run of river
2.00
Narsinghpur
Belkheri
Run of river
2.00
Narsinghpur
Kundari-I
Run of river
1.20
Narsinghpur
Kundari-II
Run of river
2.00
Narsinghpur
Kundari-III
Run of river
1.00
Narsinghpur
Mankapur
Run of river
0.30
Narsinghpur
Bikor
Run of river
0.20
Narsinghpur
Kumikheri
Run of river
0.40
Narsinghpur
Baregaon
Run of river
0.60
Narsinghpur
Kanhar
Run of river
7.00
Narsinghpur
Kosmi
Run of river
1.00
Raisen
Ghatkheri
Run of river
4.00
Raisen
Bareli
Run of river
1.50
Raisen
Kansiya
Run of river
5.00
Raisen
Bilkhera
Run of river
6.50
Sehore
Koshmi
Run of river
0.30
Sehore
Lodabar
Run of river
0.50
Sehore
Nidan-I
Run of river
0.50
Sehore
Nidan-II
Run of river
0.10
Sehore
Alipur
Run of river
0.40
Total
Capacity (MW)
122.10
PwC
107
Appendix
C.4. Details of self identified sites for SHP Projects in the state of Madhya
Pradesh
Name of Developers
No. of projects
Capacity (MW)
M/s Asha Industries and Pvt. Ltd.
1.00
M/s Aurovera Energy Pvt. Ltd.
6.00
M/s Cleanergen Hydro Power Projects Ltd.
3.00
M/s Devbhumi Energy Green Pvt. Ltd.
5.00
M/s Ecological Energy Pvt. Ltd.
1.00
M/s Govera Power Project Pvt. Ltd.
18.00
M/s Harish Azad Pvt. Ltd.
0.10
M/s Hindustan Renewable Energy Ventures
7.50
M/s Mohal Lal Jangde Pvt. Ltd.
0.10
M/s S.A.S Hydro Project Pvt. Ltd.
12.00
M/s Saliat Power Project Pvt. Ltd.
10.00
M/s Sangmam Power Project Pvt. Ltd.
16.00
M/s Shri Rudra Seeds Pvt. Ltd.
16.50
M/s Shri Sai Prakash Power India Ltd.
2.00
M/s Spart Infraways Pvt. Ltd.
20.00
M/s Spectra Green Prakash Power India Ltd.
4.50
M/s Stride Developers Pvt. Ltd.
7.00
M/s Surge Power Infrastructure Pvt. Ltd.
12
48.50
M/s Veera Power and Infraways Pvt. Ltd.
27.50
M/s Venkatshiva Engg. Works Pvt. Ltd.
13.00
Total
218.70
PwC
108
Appendix
Appendix D. - Demand Analysis

D.1. Projecting unrestricted demand
The proposed methodology takes into account, category wise hourly average consumption a basis for
determining unrestricted consumption. The unrestricted demand is extrapolated from the available
data on category wise average per hour energy consumption.
Supply hours
The table below depicts the historical trend and proposed future supply hours across various
categories in the state of Madhya Pradesh.
Table 36: Historical trend supply hours across categories
Year
Industries
2005-06
2006-07
2007-08
2008-09
2009-10
(Actual)
24:00
24:00
24:00
24:00
Commissionary
HQ
23:39
23:25
23:09
22:36
24:00
23:03
District HQ
Tehsil
Rural
22:28
22:10
21:52
19:44
20:28
19:40
19:20
16:04
15:55
15:17
16:28
12:35
21:16
16:04
12:41
Table 37: Proposed future supply hours across categories

Particulars
2011-12
Comm. H.Q.
Distt. H.Q.
Tehsil H.Q.
Rural (Domestic + Irrigation)
Irrigation
22:00
20:00
16:00
12:00
08:00
Proposed Hours of Supply

2012-13
Q1+Q2
Q3
Q4
24:00
24:00
24:00
22:00
24:00
24:00
16:00
20:00
24:00
12:00
12:00
08:00
08:00
08:00
2013-14
24:00
24:00
24:00
08:00
The supply hours as indicated in the table above along-with annual category wise energy
consumption has been used for calculating the hourly category wise consumption in non-supply
hours using straight line equation method discussed below.
Straight line equation method
The basic premise for this method lies in estimating the energy units to be supplied in non-supply
hours using actual data available for supplied units in supply hours using straight-line method. The
curtailed energy for a certain category of consumer is estimated using
Average per day hours of supply to a category of consumer (as available with SLDC) = [Y 1]
Average per day actual restricted supply units to that category of consumer = [X1]
Average daily un-restricted supply units [X2] = [(24 - Y1) * (X1 / Y1)] + X1
Seasonal variations
Average daily un-restricted supply units [X2] as calculated above will be different for different blocks
of seasons depending upon different demand variations across various seasons. Seasonal variations
have also been introduced in the method above for estimating results. To encounter seasonal
variations, a year has been divided into 5 blocks of months as follows:
April to June
July to September
October to November
December to February
PwC
109
Appendix
March
Average un-restricted supply units [X2] have been computed for all these blocks of months separately
for various categories of consumers in urban and rural areas to account for seasonal variations.
Peak and non-peak variations
The non-supply hours (24 - Y1) in any day consists of both peak and non-peak hours, as load shedding
is done in both conditions across all consumer categories. Thus, average daily un-restricted supply
units [X2] computed needs to account for both peak and non-peak conditions. For this, we have
assumed the following division of hours in a day:
Peak Hours in a day: 6 hrs
Other than Peak Hours in a day :18 hrs
Using the peak and non-peak variations, and taking into account the seasonal variations, unserved
units due to various responsible factors will be estimated to obtain the unrestricted supply units.
Methodology for estimating the unserved units due to various factors has been discussed below.
Estimating un-served units due to load shedding
We have used following assumptions for analyzing the non-supply hours and estimating the unserved units
due to load shedding in peak and non-peak hours.
Table 38: Assumptions for estimating un-served units in peak and non-peak hours
Area
Consumer category
Urban
Urban
Urban
Urban
Urban
Urban
Urban
Domestic
Non-domestic
Non-Industrial
Public WW
Street Lights
HT Public WW
Industry (HT & LT),
Coal Mines and
Railways
Domestic
Non-domestic
Non-Industrial
Public WW
Street Lights
HT Public WW
Industry (HT & LT)
Coal Mines and
Railways
Irrigation Pumps
Rural
Rural
Rural
Rural
Rural
Rural
Rural
Rural
Both
Supply hours
Load shedding %
(Cp/Cnp )*
considered
Peak hrs
Non-Peak hrs.
(SLDC data)
0%
100%
1.5
District
0%
100%
2
District
District
0%
100%
2
District
20%
80%
1
District
0%
100%
1
District
20%
80%
1
No load shedding has been considered across these categories
Rural total (3+1)
33%
67%
Rural total (3+1)
33%
67%
Rural total (3+1)
33%
67%
Rural total (3+1)
33%
67%
Rural total (3+1)
33%
67%
Rural total (3+1)
33%
67%
Rural total (3+1)
20%
80%
No load shedding has been considered across these categories
Rural 3
1.5
2
2
1
1
1
1
For consumers under irrigation category, it has been

assumed that supply is to be made in only non-peak
hours. Unserved units to this category of consumers
are estimated only if supply hours < 8 hours
*Cp: Consumption of restricted units in one peak hr, Cnp: Consumption of restricted units in one non-peak hr
Considering the above assumptions we calculated unrestricted energy supply units due to load
shedding across various consumer categories as follows:
Avg. hours of supply to a category of consumer in peak condition= [y1]
Avg. hours of supply to a category of consumer in non-peak condition= [y2]
Avg. per day supply of restricted units to a category of consumer= [X]
Avg. per day supply of restricted units in peak condition = [x1]
Avg. per day supply of restricted units in non-peak condition = [x2]
PwC
110
Appendix
Unrestricted energy supply units across various consumer categories now may be calculated using
following equations:
Daily unrestricted supply units to domestic urban consumers = [(24-y2) * (x2 /y2 ) + x2] + x1
Daily unrestricted supply units to non-domestic urban consumers = [(24-y1) * (x1 / y1) + x1] +
[(24-y2) * (x2 /y2 ) + x2]
Daily unrestricted supply units to Public water works/ Street Light = [(24-y1) * (x1 / y1) + x1] +
[(24-y2) * (x2 /y2 ) + x2]
Daily unrestricted supply units to rural consumers = [(24-y1) * (x1 / y1) + x1] + [(24-y2) * (x2 /y2
) + x2]
Daily unrestricted supply units to consumers under irrigation category (estimated only if
supply hours are less than 8)= [(8-y2) * (x2 /y2 ) + x2]
Daily unrestricted supply units to industrial consumers (both HT and LT), railways and coal
mines = X
In absence of daily hourly data for supplied energy units, we estimated the values of x 1 and x2 with
some assumptions (discussed and agreed in PBM Workshop):
x1: [(y1 * Cp)/ (y1 * Cp + y2 * Cnp)] * X
x2: [(y2 * Cnp)/ (y1 * Cp + y2 * Cnp)] * X
Estimating Un-served Units due to other factors
While estimating the unserved units, we have taken into account all the factors like Differential load
shedding, distribution transformer failure, Frequency correction and 33 kV Feeder Breakdown.
Unserved units due to factors like Differential load shedding and DTR failure have been determined
using an adjustment factor for VOLL (value of lost load), which has been assumed using the data as
received from Discoms. Unserved units due to factors like Frequency correction and 33 kV feeder
breakdowns have been estimated using suitable adjustment factors on the basis of the data as
received from Discoms and SLDC.
Estimating category wise losses
After estimating the unserved units due to all responsible factors, the unserved units were added up
to the served units to get the unrestricted sales units. Category wise losses were then added up to the
unrestricted supply units as obtained to calculate the unrestricted demand units. Category wise
losses were calculated considering actual supply units and voltage wise loss allocation factors for each
category and for each historical year. Loss allocation factors have been estimated across various
consumer categories using the methodology as per the Cost of Supply (CoS) model of Discoms. For
estimating the category wise losses, we have used certain following assumptions.
Table 39: Assumptions for estimating category wise losses
Losses category
EHT losses
Distribution losses:
HT losses
Distribution Losses:
LT losses
Total Losses
As shown below in
Table-3
As shown below in
Table-4
Total Loss % - EHT
loss% - HT loss%
Technical
99.8%
Losses %
Non-Technical
0.2%
As shown below
in Table-5
40%
Consumer Categories
HT Industry and Railways
(100-Tech. HT
Loss)%
Non-Industrial, HT WW, Coal

Mines, HT Irrigation
60%
Domestic, Non-Domestic,
PWW/ St. Lt., Irrigation
Pumps, LT Industries
Table 40: EHT losses

Losses category
EHT losses
FY 02
FY 03
FY 04
FY 05
FY 06
FY 07
FY 08
FY 09
FY 10
FY 11
8.56%
7.93%
6.12%
5.62%
5.23%
5%
4.09%
4.09%
4.19%
4.19%**
PwC
111
Appendix
Table 41: Assumed HT distribution losses

Losses category
HT losses
FY 02
FY 03
FY 04
FY 05
FY 06
FY 07
FY 08
FY 09
FY 10
FY 11
10%
10%
10%
10%
10%
9%
9%
8%
8%
7.5%
Table 42: Assumed technical losses as a proportion of HT distribution losses

Losses category
Tech. losses as
proportion of HT
losses
FY 02
FY 03
FY 04
FY 05
FY 06
FY 07
FY 08
FY 09
FY 10
FY 11
85%
85%
86%
86%
87%
87%
88%
88%
89%
90%
PwC
112
Appendix
D.2. Econometric analysis and projection of independent variables

The Econometric analysis was done on 45 districts across 9 consumer categories with different
permutation and combination of independent variables via stepwise regression methodology. The
table below represents the result of our analysis. The variable indicated in the table has not
necessarily been taken for forecasting as in some cases random results were obtained due to no trend
in the baseline data. For such cases Time Trend method has been used to do the forecasting.
Table 43: Result summary for 45 districts
District
Domestic
Non
Domestic
P
G
G/ G+T
P
I/ I+A
P
Balaghat
Barwani
Betul
Bhind
Bhopal
Chhatarpur
G
G/ G+T
G
P
I/ I+A
P
Chhindwara
Damoh
Datia
Dewas
Dhar
Dindori
Guna
Gwalior
G/G+A
G
G
G
I/ I+A
G
T/T+I
G/G+A
G
P
G
G/G+R
G
G/G+A
P
Harda
Hoshangabad
Indore
Jabalpur
Jhabua
Katni
Khandwa
Khargone
Mandla
Mandsaur
Morena
Narsimhapur
Neemuch
Panna
Raisen
Rajgarh
Ratlam
Rewa
Sagar
Satna
Sehore
Seoni
Shahdol
Shajapur
Sheopur
Shivpuri
Sidhi
Tikamgarh
Ujjain
Umaria
Vidisha
A
G
G
T
I/ I+A
I
I
I/ I+P
P
I/ I+A
P/P+T
G
G/G+R
P
I
G
G/ G+I
I
G
G/G+A
G
G
P
G
G
I/I+A
A
P
G
P
I/I+R
I
G
P
P
I/I+P
P/P+A
G
I/I+R
G
G
G
P
P/P+A
G
G+A
A
G
P
P
G
I
G
P
P
I/I+A
P/P+A
G
G
G
LT
Industry
T
A
T
G
T
T
LT
PWW
P
P
P
A
I
G/
G+T
P
G
P
A
T
G
G/
G+T
A
LT
STLT
T
G
T
G
G/G+A
P/P+A
G
T
P
G
P
P
G
A
I
P
G
T
G
G
I/ I+P
P
G
G
G
G
G
G
P/P+T
G
I/I+A
A/A+R
P
P
I
T
I+A
A
G/G+A
A
G
I/I+R
P
T
G
I
A
I/I+A
P/P+A
G/G+T
A
G/G+R
P
I
G
P
P
T
P
P
P
G/G+R
Railway
Traction
NA
NA
HT
Industrial
NA
NA
P/P+T
NA
NA
NA
T
P
A
T
NA
NA
I
G
P
NA
NA
P
P
NA
NA
NA
NA
G
NA
G
NA
A
NA
P
P
NA
NA
NA
NA
G
I/I+R
P/P+A
P
G/G+A
P/P+A
P/P+T
P
P
I
G
Irrigation
Pumps
P
T
P/P+T
P
P
I/I+A
P/P+T
I
T
T
A
P
P
T
P
A
A
T
T
T
G
P
I
P
A
P/P+T
P/P+A
T
A
I
P
T
T
T
T
A
T
P
P/P+A
I
G
G
I/ I+P
A
G/G+A
P
A
I
G/G+T
T/T+A
P
G
P
I/ I+A
I
G/G+A
Coal
Mines
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
P
NA
NA
P
NA
NA
NA
P
NA
Where:
PwC
113
Appendix
P is population
G is GDP
I is per capita income
R is rainfall
A is gross irrigated area
T is tariff
It can be seen that for domestic category different districts are dependent on different independent
variables for example Betul is dependent on GDP while Chhatarpur is dependent upon only
population. This variation can be seen across other consumer categories as well. In certain cases like
LT Industry for Betul, there were no significant variables found. So for such cases alternative
approach like time trend analysis has been used to do the forecasting. In some cases like Irrigation
category for Dhar, though it is dependent upon Gross Irrigated Area but when the projections were
made insignificant values were obtained. For such cases as well alternative approach like time trend
analysis has been used to do the forecasting. In cases like Railway category for Chhatarpur, since the
category itself does not exist in the district so econometric analysis cannot be carried
Meanwhile, trend analysis of the historical data of the independent variables has been used to
forecast the future values. For trend analysis, combination of curve fitting, Time Trend and Moving
Average models have been used for each independent variable for each district wherever the
dependency on the independent variable was found to be significant. For example in case of rainfall,
projections have been made only for 6 districts using combination of time trend and moving average
models. In case of population and gross irrigated area, based on historical data for each variable,
different functional forms of models have been tested with LAB Fit Curve Fitting Software and the
one with lower standard deviation in error component and better goodness of fit is chosen for
forecasting the future values of the variables. These variables at the district levels have been dealt in
detail with respective curve fitting equations in tables to follow. Further scenario building has been
done for Tariff, Irrigated Area, GDP and Population.
As mentioned earlier in the section on key assumptions, the historical data for 5 districts was not
available due to new district formations. Therefore, the analysis for these districts was done on the
basis of original districts from where these districts emanated.
Projection of independent variables
The following factors (independent variables) have been considered in the Econometric model for
forecasting electricity demand:
Population Growth
Income
GDP
Electricity Tariff
Gross Irrigated Area
Rainfall Data
Population projections
Population data of various districts from the Census 2001, 1991 and 1981 have been used to estimate
the future population of each district. This data has been used to estimate the time series forecast till
2020. The Curve Fitting analysis provided the following equation for the sample data set:
Estimated Population
A No. of Years from1980
B C No. of Years from1980
D LnNo. of Years from1980^ 2
Where: the constants are A, B, C and D and X in the curve fitting equation represents No. of years
PwC
114
Appendix
from 1980.
Due to a lower standard deviation of error and better goodness of fit of the Curve Fitting approach as
compared to the CAGR model, the output of the Curve Fitting model has been taken for forecasting
the population. The population projection for each district has been provided in the table below for
reference. Population of district Alirajpur, Anuppur, Ashok Nagar, Burhanpur & Singaroli has been
added to Jabua, Shahdol, Guna, Khandwa & Sidhi respectively.
Table 44: Population projections (in thousands)
District
Balaghat
Barwani
Betul
Bhind
Bhopal
Chhatarpur
Chhindwara
Damoh
Datia
Dewas
Dhar
Dindori
Guna
Gwalior
Harda
Hoshangabad
Indore
Jabalpur
Jhabua
Katni
Khandwa
Khargone
Mandla
Mandsaur
Morena
Narsimhapur
Neemuch
Panna
Raisen
Rajgarh
Ratlam
Rewa
Sagar
Satna
Sehore
Seoni
Shahdol
Shajapur
Sheopur
Shivpuri
Sidhi
Tikamgarh
Ujjain
Umaria
Vidisha
2010-11
1701
1386
1575
1704
2368
1763
2090
1264
786
1563
2185
704
2086
2031
570
1241
3272
2461
1753
1292
2066
1872
1054
1340
1965
1092
826
1016
1332
1547
1454
2364
2378
2229
1311
1379
1815
1512
688
1726
2305
1445
1987
644
1458
2011-12
1726
1418
1592
1735
2423
1791
2113
1281
799
1587
2233
717
2132
2074
580
1256
3365
2486
1790
1319
2106
1907
1073
1349
2007
1102
834
1030
1349
1577
1478
2401
2417
2262
1334
1404
1838
1530
701
1759
2352
1469
2013
659
1483
2012-13
1751
1450
1608
1769
2477
1819
2135
1299
811
1611
2283
732
2178
2118
589
1270
3459
2508
1830
1346
2146
1942
1093
1356
2050
1110
843
1045
1367
1608
1501
2438
2453
2295
1357
1430
1862
1546
714
1792
2400
1492
2038
676
1507
2013-14
1777
1483
1624
1804
2532
1847
2156
1317
823
1636
2333
747
2225
2162
598
1284
3554
2529
1871
1374
2188
1977
1113
1362
2093
1118
851
1060
1385
1639
1523
2475
2489
2327
1380
1457
1886
1561
727
1824
2447
1516
2063
693
1532
2014-15
1804
1516
1640
1841
2588
1875
2178
1335
835
1660
2384
762
2273
2207
608
1298
3652
2548
1912
1403
2230
2013
1134
1367
2137
1125
859
1075
1403
1670
1546
2513
2525
2360
1402
1485
1909
1575
739
1857
2495
1539
2087
711
1556
2015-16
1831
1549
1655
1879
2644
1902
2199
1353
848
1684
2436
778
2322
2253
617
1311
3751
2565
1955
1433
2274
2048
1156
1369
2182
1130
867
1089
1420
1701
1568
2550
2561
2391
1425
1514
1933
1587
752
1890
2542
1562
2111
731
1580
2016-17
1860
1582
1671
1918
2700
1929
2220
1371
860
1708
2489
795
2372
2299
626
1325
3852
2579
1998
1463
2318
2083
1179
1370
2228
1135
875
1104
1438
1732
1590
2586
2597
2423
1448
1545
1957
1598
765
1924
2590
1586
2135
751
1605
2017-18
1889
1616
1686
1960
2756
1957
2241
1388
872
1731
2542
812
2422
2346
635
1338
3955
2592
2042
1495
2363
2118
1202
1371
2274
1138
883
1119
1455
1764
1612
2623
2633
2454
1471
1577
1980
1607
778
1957
2637
1609
2158
772
1629
2018-19
1919
1651
1701
2003
2813
1984
2261
1406
884
1755
2597
829
2473
2394
644
1350
4060
2603
2087
1527
2410
2154
1226
1372
2322
1141
891
1133
1471
1795
1634
2660
2669
2484
1494
1610
2004
1615
791
1990
2684
1632
2181
795
1654
2019-20
1949
1685
1715
2048
2870
2011
2282
1424
896
1779
2652
847
2526
2442
653
1363
4167
2611
2132
1560
2457
2189
1251
1373
2370
1142
898
1148
1488
1827
1656
2696
2705
2515
1517
1645
2028
1622
804
2023
2731
1655
2204
819
1678
Gross irrigated area projections

Gross Irrigated Area data of various districts from the Agricultural Statistics obtained from the office
of Commissioner Land Records & Settlement, Madhya Pradesh from FY02 to FY11 have been used to
estimate the future Irrigated area of each district. This data has been used to estimate the time series
PwC
115
Appendix
forecast till 2020. Wherever curve fitting model was not appropriate, time trend model have been
used to forecast the same. The Curve Fitting analysis provided the following equation for the sample
data set:
Estimated GrossIrrigatedArea
A No. of Years from 2002
B C No. of Years from 2002
D LnNo. of Years from 2002^ 2
Where: the constants are A, B, C and D and X in the curve fitting equation represents No. of years from 2002.
Due to a lower standard deviation of error and better goodness of fit of the Curve Fitting approach as
compared to the CAGR model, the output of the Curve Fitting model has been taken for forecasting
the Gross Irrigated Area. The Gross Irrigated Area projection for each district has been provided in
the table below for reference. Gross Irrigated Area of district Alirajpur, Annupur, Ashok Nagar,
Burhanpur & Singaroli has been added to Jhabua, Shahdol, Guna, Khandwa and Sidhi respectively.
Table 45: Projected irrigated areas (in km2)
District
Barwani
Bhind
Bhopal
Chhindwara
Damoh
Dhar
Guna
Gwalior
Harda
Indore
Jabalpur
Jhabua
Mandla
Mandsaur
Morena
Narsimhapur
Raisen
Rajgarh
Ratlam
Rewa
Satna
Sehore
Seoni
Shahdol
Shajapur
Shivpuri
Sidhi
Tikamgarh
Ujjain
Umaria
Vidisha
2010-11
10
90,595
151,445
94,329
160,277
125,262
273,896
300,375
141,755
162,919
167,466
154,846
71,760
20,229
176,034
193,714
188,182
255,621
228,927
145,019
110,626
140,512
262,107
122,668
28,125
225,924
234,166
76,692
227,328
274,632
23,248
252,049
2011-12
11
92,654
151,857
95,043
160,666
127,912
288,958
328,747
145,471
167,381
173,452
161,451
75,426
21,798
183,674
200,808
188,531
268,459
233,636
149,977
110,933
145,114
267,127
124,093
28,333
240,836
248,273
78,228
222,781
284,800
23,348
265,946
2012-13
12
95,354
158,149
95,850
163,426
130,086
290,671
334,896
149,187
172,256
175,690
167,333
78,320
22,281
189,660
207,325
188,820
279,665
239,762
154,936
113,431
149,715
272,703
125,518
28,766
248,219
262,381
79,737
227,588
294,968
23,950
268,618
2013-14
13
98,054
164,442
96,540
165,965
132,156
291,867
340,729
152,903
177,132
177,522
173,215
81,111
22,764
195,646
214,264
188,993
290,871
244,781
159,894
115,930
154,317
277,970
126,943
29,142
255,602
276,488
81,168
232,396
305,136
24,553
271,291
2014-15
14
100,754
170,735
97,137
168,316
134,131
292,703
346,278
156,619
182,007
179,079
179,097
83,847
23,247
201,632
221,633
189,101
302,078
248,964
164,852
118,428
158,918
282,961
128,369
29,471
262,985
290,596
82,528
237,203
315,303
25,156
273,963
2015-16
15
103,455
177,028
97,659
170,505
136,020
293,286
351,569
160,335
186,883
180,432
184,979
86,550
23,730
207,617
229,444
189,170
313,284
252,503
169,810
120,926
163,520
287,703
129,794
29,761
270,368
304,703
83,826
242,010
325,471
25,758
276,635
2016-17
16
106,155
183,320
98,118
172,552
137,830
293,694
356,624
164,050
191,758
181,624
190,861
89,231
24,213
213,603
237,710
189,215
324,491
255,535
174,768
123,424
168,121
292,220
131,219
30,019
277,751
318,811
85,067
246,817
335,639
26,361
279,308
2017-18
17
108,855
189,613
98,526
174,475
139,567
293,978
361,465
167,766
196,633
182,686
196,743
91,897
24,696
219,589
246,447
189,245
335,697
258,162
179,727
125,923
172,723
296,532
132,645
30,250
285,134
332,918
86,256
251,625
345,807
26,964
281,980
2018-19
18
111,556
195,906
98,890
176,289
141,236
294,177
366,107
171,482
201,509
183,641
202,625
94,553
25,179
225,575
255,672
189,266
346,904
260,459
184,685
128,421
177,324
300,657
134,070
30,457
292,517
347,026
87,399
256,432
355,975
27,566
284,652
2019-20
19
114,256
202,198
99,218
178,004
142,844
294,316
370,568
175,198
206,384
184,504
208,507
97,200
25,662
231,560
265,406
189,281
358,110
262,484
189,643
130,919
181,926
304,611
135,495
30,645
299,900
361,133
88,499
261,239
366,143
28,169
287,325
Tariff projections
As mentioned earlier in key assumptions, tariff as an independent variable has been considered for
scenario building. Therefore, we have considered different tariff structure across the three scenarios
of pessimistic, realistic and optimistic, as detailed below.
Pessimistic scenario
PwC
116
Appendix
Under this scenario, the Tariff has been escalated by 10% in case of Pessimistic Scenario. Also Tariff
has been assumed to remain constant during election year i.e. 2014, 15, 19 & 20 for all categories
except Railways, HT Industrial & Coal Mines.
Table 46: Tariff projections in pessimistic scenario (in INR/kWh)
Category
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
LT
Domestic
1.93
2.36
2.97
2.88
3.09
3.01
3.36
3.35
3.50
4.00
4.26
4.69
4.69
4.69
5.15
5.67
6.24
6.24
6.24
LT Nondomestic
5.24
5.62
6.18
5.86
5.64
5.86
5.48
5.40
5.35
5.85
6.28
6.91
6.91
6.91
7.60
8.36
9.19
9.19
9.19
LT
Industrial
4.05
4.49
5.23
5.18
4.86
5.19
4.72
4.46
4.70
5.22
5.50
6.05
6.05
6.05
6.66
7.32
8.05
8.05
8.05
LT
Irrigation
0.90
0.90
0.99
2.09
2.11
2.15
2.39
2.62
2.55
3.11
3.26
3.59
3.59
3.59
3.94
4.34
4.77
4.77
4.77
LT PWW
LT STLT
2.14
2.79
3.25
3.12
3.12
2.95
3.08
3.38
3.41
3.90
4.00
4.40
4.40
4.40
4.84
5.33
5.86
5.86
5.86
2.22
2.83
3.12
3.28
3.48
3.53
3.59
3.69
3.75
3.96
3.99
4.39
4.39
4.39
4.83
5.31
5.84
5.84
5.84
Railways
4.77
4.81
4.73
4.65
4.45
4.64
4.60
4.65
4.70
5.29
5.57
6.13
6.74
7.41
8.16
8.97
9.87
10.85
11.94
HT
Industrial
3.99
3.96
4.46
5.36
4.24
4.72
4.56
4.68
4.74
5.13
5.32
5.85
6.44
7.08
7.79
8.57
9.42
10.37
11.40
Coal
Mines
4.37
4.72
5.09
5.14
4.79
5.50
5.35
5.38
5.30
5.46
5.82
6.40
7.04
7.75
8.52
9.37
10.31
11.34
12.48
Realistic Scenario
Under this Scenario, the Tariff has been escalated by 8% in case of Realistic Scenario. Also Tariff has
been assumed to remain constant during election year i.e. 2014, 15, 19 & 20 for all categories except
Railways, HT Industrial & Coal Mines.
Table 47: Tariff projections in realistic scenario (in INR/kWh)
Category
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
LT
Domestic
LT Nondomestic
1.93
2.36
2.97
2.88
3.09
3.01
3.36
3.35
3.50
4.00
4.26
4.60
4.60
4.60
4.97
5.37
5.91
5.91
5.91
5.24
5.62
6.18
5.86
5.64
5.86
5.48
5.40
5.35
5.85
6.28
6.78
6.78
6.78
7.32
7.91
8.71
8.71
8.71
LT
Industrial
4.05
4.49
5.23
5.18
4.86
5.19
4.72
4.46
4.70
5.22
5.50
5.94
5.94
5.94
6.42
6.93
7.63
7.63
7.63
LT
Irrigation
0.90
0.90
0.99
2.09
2.11
2.15
2.39
2.62
2.55
3.11
3.26
3.52
3.52
3.52
3.80
4.11
4.52
4.52
4.52
LT PWW
LT STLT
2.14
2.79
3.25
3.12
3.12
2.95
3.08
3.38
3.41
3.90
4.00
4.32
4.32
4.32
4.67
5.04
5.55
5.55
5.55
2.22
2.83
3.12
3.28
3.48
3.53
3.59
3.69
3.75
3.96
3.99
4.31
4.31
4.31
4.65
5.03
5.54
5.54
5.54
Railways
4.77
4.81
4.73
4.65
4.45
4.64
4.60
4.65
4.70
5.29
5.57
6.02
6.50
7.02
7.58
8.18
9.02
9.93
10.94
HT
Industrial
Coal
Mines
3.99
3.96
4.46
5.36
4.24
4.72
4.56
4.68
4.74
5.13
5.32
5.75
6.21
6.70
7.24
7.82
8.61
9.49
10.45
4.37
4.72
5.09
5.14
4.79
5.50
5.35
5.38
5.30
5.46
5.82
6.29
6.79
7.33
7.92
8.55
9.42
10.38
11.43
Optimistic Scenario
Under this scenario, the Tariff has been escalated by 5% in case of Optimistic Scenario. Also Tariff has
been assumed to remain constant during election year i.e. 2014, 15, 19 & 20 for all categories except
Railways, HT Industrial & Coal Mines.
PwC
117
Appendix
Table 48: Tariff projections in optimistic scenario (in INR/kWh)

Category
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
LT
Domestic
1.93
2.36
2.97
2.88
3.09
3.01
3.36
3.35
3.50
4.00
4.26
4.47
4.47
4.47
4.70
4.93
5.33
5.33
5.33
LT Nondomestic
5.24
5.62
6.18
5.86
5.64
5.86
5.48
5.40
5.35
5.85
6.28
6.59
6.59
6.59
6.92
7.27
7.86
7.86
7.86
LT
Industrial
4.05
4.49
5.23
5.18
4.86
5.19
4.72
4.46
4.70
5.22
5.50
5.78
5.78
5.78
6.06
6.37
6.89
6.89
6.89
LT
Irrigation
0.90
0.90
0.99
2.09
2.11
2.15
2.39
2.62
2.55
3.11
3.26
3.42
3.42
3.42
3.59
3.77
4.08
4.08
4.08
LT PWW
2.14
2.79
3.25
3.12
3.12
2.95
3.08
3.38
3.41
3.90
4.00
4.20
4.20
4.20
4.41
4.63
5.01
5.01
5.01
LT STLT
2.22
2.83
3.12
3.28
3.48
3.53
3.59
3.69
3.75
3.96
3.99
4.19
4.19
4.19
4.40
4.62
5.00
5.00
5.00
Railways
4.77
4.81
4.73
4.65
4.45
4.64
4.60
4.65
4.70
5.29
5.57
5.85
6.14
6.45
6.77
7.11
7.69
8.31
8.99
HT
Industrial
3.99
3.96
4.46
5.36
4.24
4.72
4.56
4.68
4.74
5.13
5.32
5.59
5.87
6.16
6.47
6.79
7.34
7.94
8.59
Coal
Mines
4.37
4.72
5.09
5.14
4.79
5.50
5.35
5.38
5.30
5.46
5.82
6.11
6.42
6.74
7.07
7.43
8.03
8.69
9.40
Rainfall projections
In case of rainfall, projections have been made only for 6 districts namely Dhar, Indore, Rewa, Seoni,
Umaria and Vidisha using combination of time trend and moving average models as during
econometric analysis few categories of only these districts were found dependant on Rainfall data.
Table 49: Rainfall projections (in mm)
District
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
Method Adopted to
calculate rainfall for
years FY10 & FY11
Method Adopted to
calculate rainfall for
years FY12 & FY20
Dhar
450
548
641
929
751
570
1,161
992
672
829
845
900
847
819
848
852
853
844
843
848
Moving 5
Year
Average
Moving 5
Year
Average
Indore
585
729
658
1,116
904
768
1,166
906
636
876
870
891
836
822
859
856
853
845
847
852
Moving 5
Year
Average
Moving 5
Year
Average
Rewa
864
1,385
925
1,187
853
999
824
678
964
864
866
839
842
875
857
856
854
857
860
857
Moving 5
Year
Average
Moving 5
Year
Average
Seoni
813
903
1,237
1,346
885
1,445
1,214
1,018
579
1,004
995
962
912
890
953
942
932
926
929
936
9 Year
Time
Trend
Moving 5
Year
Average
Umaria
868
1,121
678
1,448
985
1,644
1,027
951
1,030
1,003
995
1,001
996
1,005
1,000
999
1,000
1,000
1,001
1,000
Moving 3
Year
Average
Moving 5
Year
Average
Vidisha
1,163
1,014
870
1,120
993
1,172
1,145
788
1,075
1,002
995
1,001
972
1,009
996
994
994
993
997
995
9 Year Time
Trend
Moving 5
Year
Average
PwC
118
Appendix
D.3. Demand at MP periphery by Distribution Licensees

Table 50: Energy demand at MP periphery by different consumer categories (in MUs)
(pessimistic scenario)
LT Domestic
LT Non-domestic
LT Industrial
LT Irrigation
LT PWW
LT STLT
Railways
HT Industrial
Coal Mines
Total
2013-14
19,942
4,283
2,242
18,925
947
615
2,277
9,012
657
58,900
2014-15
21,596
4,647
2,368
19,735
1,020
659
2,390
9,777
674
62,866
2015-16
23,310
5,042
2,485
20,475
1,102
700
2,498
10,552
692
66,856
2016-17
25,108
5,458
2,606
21,207
1,188
742
2,619
11,347
709
70,984
2017-18
27,010
5,902
2,729
21,938
1,278
785
2,739
12,173
727
75,281
2018-19
29,047
6,361
2,856
22,758
1,366
835
2,866
13,029
745
79,863
2019-20
31,193
6,847
3,004
23,585
1,459
883
2,998
13,920
764
84,653
Table 51: Energy demand at MP periphery by different consumer categories (in MUs) (realistic
scenario)
LT Domestic
LT Non-domestic
LT Industrial
LT Irrigation
LT PWW
LT STLT
Railways
HT Industrial
Coal Mines
Total
2013-14
21,477
4,660
2,324
19,813
1,017
668
2,378
9,809
678
62,824
2014-15
23,479
5,098
2,460
20,659
1,103
718
2,507
10,705
695
67,424
2015-16
25,614
5,581
2,589
21,454
1,200
767
2,632
12,055
713
72,605
2016-17
27,898
6,099
2,725
22,247
1,302
818
2,773
13,059
731
77,652
2017-18
30,323
6,656
2,863
23,027
1,411
870
2,914
14,111
749
82,924
2018-19
32,954
7,246
3,005
23,896
1,521
930
3,065
15,216
767
88,600
2019-20
35,766
7,879
3,170
24,777
1,639
991
3,224
16,378
786
94,610
Table 52: Energy demand at MP periphery by different consumer categories (in MUs)
(optimistic scenario)
LT Domestic
LT Non-domestic
LT Industrial
LT Irrigation
LT PWW
LT STLT
Railways
HT Industrial
Coal Mines
Total
2013-14
22,494
4,929
2,394
20,675
1,068
713
2,459
10,382
698
2014-15
24,704
5,411
2,536
21,549
1,162
768
2,597
11,358
716
2015-16
27,099
5,946
2,676
22,395
1,266
823
2,732
12,828
734
2016-17
29,686
6,526
2,822
23,244
1,377
880
2,886
13,941
752
2017-18
32,444
7,151
2,972
24,079
1,497
939
3,041
15,115
771
2018-19
35,448
7,824
3,125
24,985
1,621
1,005
3,208
16,355
790
2019-20
38,683
8,551
3,301
25,905
1,754
1,075
3,383
17,667
809
65,812
70,801
76,499
82,114
88,009
94,361
101,128
PwC
119
Appendix
D.4. Demand at consumer end to be fulfilled by Distribution Licensees

Table 53: Energy demand at consumer end (in MUs) (pessimistic scenario)
Unrestricted demand at state
periphery (MUs)
Transmission loss (%)
Energy demand at
distribution periphery (MUs)
Distribution loss (%)
Energy demand at the
consumer end (MUs)
2013-14
58,900
2014-15
62,866
2015-16
66,856
2016-17
70,984
2017-18
75,281
2018-19
79,863
2019-20
84,653
3.10
57,072
3.10
60,915
3.10
64,781
3.10
68,781
3.10
72,944
3.10
77,384
3.10
82,025
22.12
44,445
19.86
48,817
17.89
53,191
15.94
57,819
15.94
61,319
15.94
65,051
15.94
68,953
Table 54: Energy demand at consumer end (in MUs) (realistic scenario)
periphery (MUs)
Energy demand at
consumer end (MUs)
2013-14
62,824
2014-15
67,424
2015-16
72,605
2016-17
77,652
2017-18
82,924
2018-19
88,600
2019-20
94,610
3.10
60,874
3.10
65,331
3.10
70,351`
3.10
75,242
3.10
80,350
3.10
85,850
3.10
91,673
22.12
47,406
19.86
52,356
17.89
57,765
15.94
63,250
15.94
67,545
15.94
72,168
15.94
77,063
Table 55: Energy demand at consumer end (in MUs) (optimistic scenario)
periphery (MUs)
Energy demand at
consumer end (MUs)
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
65,812
70,801
76,499
82,114
88,009
94,361
101,128
3.10
63,769
3.10
68,603
3.10
74,124
3.10
79,565
3.10
85,277
3.10
91,432
3.10
97,989
22.12
49,661
19.86
54,979
17.89
60,863
15.94
66,885
15.94
71,687
15.94
76,861
15.94
82,373
PwC
120
Appendix
D.5. Demand by Captive Consumers

Table 56: Energy demand by captive users (in MUs)
Energy demand by Captive users
(MUs)
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
3,544
3,673
3,807
3,946
4,089
4,238
4,393
PwC
121
Appendix
D.6. Aggregate demand at the state level at consumer end

Table 57: Energy demand at consumer end (in MUs)
Pessimist Scenario
Realistic Scenario
Optimistic Scenario
2013-14
47,989
50,950
53,205
2014-15
52,361
55,900
58,523
2015-16
56,735
61,309
64,407
2016-17
61,363
66,794
70,429
2017-18
64,863
71,089
75,231
2018-19
68,595
75,712
80,405
PwC
2019-20
72,497
80,607
85,917
122
Appendix
D.7. Estimated captive consumption

Figure 27: Estimated captive consumption (in MUs)
Name
Khaitan Chemical and Fertiliser, Indore
HEG, Mandideep
Nahar Spinning, Mandideep
Vardhman yarn
Vardhman fabrics
SRF , Bhind
Lenxess India, Nagda
Maihar cement, Satna
Ranbaxy, Dewas
Grasim ind. Nagda
JK ind. Morena
Gail ind. Jhabua
HEG Tawanagar
Bharat Oman refinary, Bina
Uflex Bhind
Dimond cement Damoh
Orient papar mill, Shahdol
Ultratech cement, Neemuch
Raymond , Chhindwara
Hind spinner
Insulators & Electrical company, Mandideep
National steel
Pratibha
Bridgestone
Birla corporation
Anant spinning, mandideep
Force motors
Surya Roshni malanpur Bhind
KS Oil , Morena
Hidalko ind ltd Sinroli
Prism cement Satna
DB city
Navalsingh shakkar karkhana Buhanpur
Gwalior alcobru rayru form Gwalior
Godraj consumer malanpur Bhind
KJS cement, Satna
Century Yarns
BHEL Bhopal
Universal Cables , Satna
Malanpur Captive power plant
BLA power
JP Bela plant
JP Rewa
JP Bina thermal power plant
NFL Guna
JP Shidhi
2009-10
6.50
0.00
0.92
169.87
170.85
0.40
0.00
282.51
0.43
382.26
22.24
7.60
48.30
18.01
1.05
26.94
122.47
31.27
61.98
0.04
0.00
94.08
46.01
0.52
146.01
0.74
0.42
10.52
0.00
0.00
2.28
0.00
27.22
2.28
0.00
0.00
0.30
0.39
2.60
78.24
0.00
180.09
421.16
0.00
204.00
4.41
2010-11
9.46
10.06
5.68
166.45
152.97
0.07
12.05
250.98
0.67
722.02
26.16
9.53
49.56
134.02
11.14
44.57
93.38
269.71
63.11
0.04
2.69
27.71
43.49
2.39
151.69
1.74
0.27
5.89
0.08
0.00
1.77
0.00
3.05
3.25
0.00
0.00
0.10
0.75
0.79
52.53
0.00
189.64
377.54
0.00
254.55
3.19
2011-12
10.31
49.72
0.32
176.93
140.01
0.19
20.71
238.08
1.22
660.20
333.97
9.28
49.37
267.19
12.07
46.38
112.48
258.47
63.33
0.04
1.13
22.32
37.09
0.20
176.41
0.90
0.25
0.53
0.05
0.00
1.81
0.03
5.57
0.55
0.00
0.00
0.03
1.15
0.22
19.86
0.00
142.11
394.48
0.00
227.76
3.88
PwC
2012-13
7.51
50.78
0.15
181.60
156.85
0.14
21.82
239.49
1.06
610.73
30.71
7.67
112.88
263.85
9.33
0.73
64.32
273.94
59.08
0.04
0.62
3.58
36.84
0.45
224.33
0.41
0.15
0.39
0.04
1.55
0.07
0.08
5.20
0.55
0.39
2.02
0.02
0.46
0.06
58.98
140.34
0.00
167.07
0.00
240.63
4.12
123
Appendix
Name
ACC Cement Kymore
Century denim
Gail Guna
Gail Ujjain
Ritspin synthetic
Maral voerseas ltd
Procter & Gamble
Associated alcohal & breweries
Deepak spinners ltd Guna
Total
2009-10
368.29
15.90
18.43
6.25
0.01
57.41
0.00
8.59
22.09
3071.86
2010-11
340.51
0.29
18.11
5.38
0.01
72.51
0.97
8.74
7.94
3609.18
2011-12
313.80
0.14
17.88
6.25
0.02
61.73
0.72
6.70
17.98
3911.82
PwC
2012-13
320.93
0.39
17.83
6.12
0.01
64.38
0.83
8.28
19.95
3419.76
124
Appendix
D.8. Tariff for different category of consumers in 2013-14

Figure 28: Tariff for different category of consumers in 2013-14 (in INR/kWh)
Consumer Category
Fixed charge*
Variable charge
Contract demand
0.92
5.20
upto 100 HP
Contract demand
1.25
5.35
more than 100
HP and upto
150HP
HT Industrial
11kV Supply
1.22
5.2o
33 kV Supply
1.98
5.10
132 kV Supply
2.50
4.75
220/400 kV
2.66
4.55
supply
*fixed charge is calculated at 50% of load usage for two shifts (16 hours) at PF of 0.8.
LT Industrial
Duty (in %)
9.00
Total charge
6.67
9.00
7.19
15.00
15.00
15.00
15.00
7.39
8.14
8.34
8.29
PwC
125
Appendix
D.9. Cumulative capacity for different RETs till 2020

Table 58: Cumulative capacity under different scenarios
Particulars
Scenario 1
Scenario 2
Solar
1,189
1,966
Wind
4,091
5,167
Biomass
367
464
PwC
SHP
312
394
126
Appendix
D.10. Capacity addition plans for different RE Technologies till 2020.

Table 59: Capacity addition plan under Scenario 1
Solar
Wind
Biomass
Small
Hydro
Till
September
2013
220
323
57
86
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
25
634
29
92
386
35
141
455
41
157
519
47
167
528
47
182
592
53
207
654
59
16
35
40
40
45
50
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
123
779
42
193
533
48
277
651
58
262
665
60
274
674
61
293
738
66
324
804
72
39
50
51
51
56
61
Table 60: Capacity addition plan under Scenario 2
Solar
Wind
Biomass
Small
Hydro
Till
September
2013
220
323
57
86
2013-14
PwC
127
Appendix
Appendix E. - Projecting Demand of Renewable Energy

E.1. Potential incremental demand by HT-industrial and LT-industrial
consumers
Table 61: Potential incremental demand by HT-industrial and LT-industrial consumers
HT-Industrial
Energy demand
Target @ 50% of increase in demand
27 (base year considered 2012-13)
Potential incremental RE demand
each year
LT-Industrial28
Energy demand
Target @ 50% of increase in demand
(base year considered 2012-13)
Potential incremental RE demand
each year
Total HT-industrial and LTindustrial
Energy demand
Total RE demand each year
Total incremental RE demand each
year
27
28
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
9,809
10,705
12,055
13,059
14,111
15,216
16,378
431
879
1,554
2,056
2,582
3,135
3,716
431
448
675
502
526
553
581
2,324
2,460
2,589
2,725
2,863
3,005
3,170
126
262
391
527
665
807
972
126
136
129
136
138
142
165
12,133
557
13,165
1,141
14,644
1,945
15,784
2,583
16,974
3,247
18,221
3,942
19,548
4,688
557
584
804
638
664
695
746
Incremental energy demand is demand from new consumers added each year.
Only non seasonal load has been considered
PwC
128
Appendix
E.2. Solar energy required to meet RPO

Table 62: Solar energy required to meet RPO
Estimated Solar RPO Levels (%)
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
0.80
1.00
1.29
1.57
1.86
2.14
2.43
379
419
462
506
540
577
617
28
29
30
32
33
34
35
408
448
493
538
573
611
652
375
410
447
485
514
546
579
28
29
30
32
33
34
35
403
439
477
517
547
580
614
Scenario 1
Solar energy required by Distribution
Licensees (MUs)
Solar energy required by CC (MUs)
Total solar energy required to meet
RPO
Scenario 2
Solar energy required by Distribution
Licensees (MUs)
Solar energy required by CC (MUs)
Total solar energy required to meet
RPO
PwC
129
Appendix
E.3. Incremental solar energy required to meet RPO

Table 63: Incremental solar energy required to meet RPO (in MUs)
Scenario 1
Total solar energy required
Incremental solar energy required
each year
Scenario 2
Total solar energy required
Incremental solar energy required
each year
2013-14*
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
408
560
794
1,055
1,332
1,635
1,979
43
153
234
261
277
303
344
403
549
769
1,014
1,272
1,551
1,865
38
146
220
245
258
279
315
*incremental demand for 2013-14 here represents the additional solar energy required for the period from October 2013 to March 2014.
PwC
130
Appendix
E.4. Non-solar energy required to meet RPO

Table 64: Non-solar energy required to meet non-solar RPO
Estimated non-Solar RPO Levels (%)
Scenario 1
Non-Solar energy required by DL (MUs)
Non-solar energy required by CC (MUs)
Total non-solar energy required to meet
RPO (MU)
Scenario 2
Non-Solar energy required by DL (MUs)
Non-solar energy required by CC (MUs)
Total non-solar energy required to meet
RPO (MUs)
2013-14
4.70
2014-15
6.00
2015-16
7.31
2016-17
8.63
2017-18
9.94
2018-19
11.26
2019-20
12.57
2,228
167
3,141
220
4,223
278
5,458
341
6,714
406
8,126
477
9,687
552
2,395
3,362
4,501
5,799
7,120
8,603
10,239
2,202
167
3,073
220
4,080
278
5,236
341
6,391
406
7,682
477
9,098
552
2,368
3,293
4,359
5,576
6,798
8,159
9,650
PwC
131
Appendix
E.5. Incremental non-solar energy required to meet RPO

Table 65: Incremental non-solar energy required to meet RPO (in MUs)
Scenario 1
Total non-solar energy required
Incremental non-solar energy required
each year
Scenario 2
Total non-solar energy required
Incremental non-solar energy required
each year
2013-14*
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2,395
3,362
4,501
5,799
7,120
8,603
10,239
1,253
967
1,139
1,298
1,321
1,483
1,636
2,368
3,293
4,359
5,576
6,798
8,159
9,650
1,227
925
1,065
1,217
1,222
1,362
1,490
*incremental demand for 2013-14 here represents the additional non-solar energy required for the period from October 2013 to March
2014.
PwC
132
Appendix
E.6. Gross RE required in the state

Table 66: Gross RE required in the state (Scenario 1)
2013-14
50,950
47,406
2014-15
56,029
52,356
2015-16
61,572
57,765
2016-17
67,196
63,250
2017-18
71,634
67,545
2018-19
76,406
72,168
2019-20
81,456
77,063
Energy demand by CC in the state

(MUs)
Solar energy required to meet RPO by
the DL (MUs)
3,544
3,673
3,807
3,946
4,089
4,238
4,393
379
524
745
993
1,256
1,544
1,873

the CC (MUs)
28
37
49
62
76
91
107
Non-solar energy required to meet RPO

by the DL (MUs)
2,228
3,141
4,223
5,458
6,714
8,126
9,687

by the CC (MUs)
167
220
278
341
406
477
552
Total non conventional Energy required

by DL and CC (MUs)
48,148
52,107
56,277
60,342
63,181
66,168
69,238
Total RE required by DL and CC

to meet RPO
2,802
3,922
5,295
6,854
8,453
10,238
12,218
Solar Energy (%) [RPO]
0.80%
1.00%
1.29%
1.57%
1.86%
2.14%
2.43%
Non-solar energy (%) [RPO]

Renewable Energy Percentage [RPO]
4.70%
5.50%
6.00%
7.00%
7.31%
8.60%
8.63%
10.20%
9.94%
11.80%
11.26%
13.40%
12.57%
15.00%
Total Energy demand in the state (MUs)

Energy demand at the consumer end to
be fulfilled by DL in the state (MUs)
Table 67: Gross RE required in the state (Scenario 2)

2013-14
50,950
2014-15
56,029
2015-16
61,572
2016-17
67,196
2017-18
71,634
2018-19
76,406
2019-20
81,456
47,406
52,356
57,765
63,250
67,545
72,168
77,063
557
1,141
1,945
2,583
3,247
3,942
4,688
3,544
46,849
3,673
51,215
3,807
55,820
3,946
60,667
4,089
64,298
4,238
68,226
4,393
72,375
375
512
720
952
1,196
1,460
1,759
28
37
49
62
76
91
107

by the DL (MUs)
2,202
3,073
4,080
5,236
6,391
7,682
9,098

by the CC (MUs)
167
220
278
341
406
477
552
Total non conventional Energy

distributed DL and CC (MUs)
47,621
51,046
54,499
58,022
60,317
62,754
65,253
Total RE required by the DL and

CC to meet RPO
2,772
3,842
5,128
6,591
8,070
9,710
11,515
Solar Energy (%) [RPO]
0.80%
1.00%
1.29%
1.57%
1.86%
2.14%
2.43%
Non-solar energy (%) [RPO]

Renewable Energy Percentage [RPO]
Total RE demand (MUs)
4.70%
5.50%
3,329
6.00%
7.00%
4,983
7.31%
8.60%
7,073
8.63%
10.20%
9,174
9.94%
11.80%
11,317
11.26%
13.40%
13,652
12.57%
15.00%
16,203
Total Energy demand in the state(MUs)

Energy demand at the consumer end to
be fulfilled by DL in the state(MUs)
Renewable energy demand by HTindustrial and LT-industrial @ 50%
incremental capacity target (MUs)
Energy demand by CC in the state (MUs)
Total Energy required by DL (MUs)
the DL (MUs)
the CC (MUs)
PwC
133
Appendix
E.7. Incremental demand of RE

Table 68: Incremental demand of RE year on year (in MUs) (Scenario -1)
Incremental Solar energy required to

meet RPO
Incremental non-solar energy
required to meet RPO
Incremental total RE required
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
41
153
234
261
277
303
344
1,253
967
1,139
1,298
1,321
1,483
1,636
1,295
1,120
1,373
1,559
1,599
1,786
1,980
*incremental demand for 2013-14 here represents the additional RE required for the period from October 2013 to March 2014.
Table 69: Incremental demand of RE year on year (in MUs) (Scenario -2)
Incremental Solar energy required to

meet RPO
Incremental non-solar energy
required to meet RPO
Incremental RE demand by HTindustrial and LT-industrial
Incremental total RE required
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
37
146
220
245
258
279
315
1,227
925
1,065
1,217
1,222
1,362
1,490
557
584
804
638
664
695
746
1,821
1,655
2,090
2,101
2,143
2,336
2,551
*incremental demand for 2013-14 here represents the additional RE required for the period from October 2013 to March 2014.
PwC
134
Appendix
Appendix F. - Power projects and their specific emissions in

NEWNE grid
Name
Capacity
(Mw) as on
31/03/2012
Patratu
770.00
Barauni
Sector
Type
Fuel
Net
Generation
(GWh)
(2012-13)
Specific
Emissions
(TCO2/MWh)
(2012-13)
Jharkhand
State
Thermal
Coal
622.00
2.10
220.00
Bihar
State
Thermal
Coal
0.00
0.00
Kahalgaon
2340.00
Bihar
Center
Thermal
Coal
13560.00
0.98
Tenughat
420.00
Jharkhand
State
Thermal
Coal
2620.00
1.24
Jojbera
360.00
Jharkhand
Private
Thermal
Coal
1589.00
1.09
Chandrapura
890.00
Jharkhand
Center
Thermal
Coal
5019.00
1.01
Durgapur
350.00
West Bengal
Center
Thermal
Coal
1835.00
1.15
Bokaro B
630.00
Jharkhand
Center
Thermal
Coal
2759.00
1.22
0.00
Jharkhand
Center
Thermal
Diesel
0.00
0.00
West Bengal
Center
Thermal
Coal
6498.00
0.99
Maithon Gt
Mejia
1340.00
State
Talcher
460.00
Orissa
Center
Thermal
Coal
3472.00
1.20
I.B.Valley
420.00
Orissa
State
Thermal
Coal
2839.00
1.03
3000.00
Orissa
Center
Thermal
Coal
20042.00
0.97
Talcher Stps
Bandel
450.00
West Bengal
State
Thermal
Coal
1645.00
1.61
Santaldih
980.00
West Bengal
State
Thermal
Coal
2165.00
1.23
Kolaghat
1260.00
West Bengal
State
Thermal
Coal
6570.00
1.18
Bakreswar
1050.00
West Bengal
State
Thermal
Coal
7252.00
1.03
D.P.L.
641.00
West Bengal
State
Thermal
Coal
1631.00
1.59
Newcossipore
160.00
West Bengal
Private
Thermal
Coal
173.00
2.60
Titagarh
240.00
West Bengal
Private
Thermal
Coal
1514.00
1.21
Southern Repl.
135.00
West Bengal
Private
Thermal
Coal
966.00
1.17
Budge Budge
750.00
West Bengal
Private
Thermal
Coal
5321.00
1.09
Farakka Stps
2100.00
West Bengal
Center
Thermal
Coal
10812.00
0.98
Bihar
Center
Thermal
Coal
0.00
0.00
Muzaffarpur
220.00
Bokaro A
0.00
Jharkhand
Center
Thermal
Coal
0.00
0.00
Mulajore
0.00
West Bengal
Private
Thermal
Coal
0.00
0.00
Kosi
20.00
Bihar
State
Hydro
NA
0.00
Sone West Canal
6.60
Bihar
State
Hydro
NA
0.00
Sone East Canal
3.30
Bihar
State
Hydro
NA
0.00
15.00
Bihar
State
Hydro
NA
0.00
Jharkhand
State
Hydro
NA
141.00
0.00
E.G. Canal
Subernrekha I&Ii
130.00
Panchet
80.00
Bihar
Center
Hydro
NA
110.00
0.00
Maithon
63.20
Bihar
Center
Hydro
NA
88.00
0.00
PwC
135
Appendix
Name
Capacity
(Mw) as on
31/03/2012
Tillaya
4.00
State
Sector
Type
Fuel
Net
Generation
(GWh)
(2012-13)
Specific
Emissions
(TCO2/MWh)
(2012-13)
Jharkhand
Center
Hydro
NA
0.00
Balimela
510.00
Orissa
State
Hydro
NA
544.00
0.00
Hirakud I&Ii
331.50
Orissa
State
Hydro
NA
969.00
0.00
Rengali
250.00
Orissa
State
Hydro
NA
710.00
0.00
Upper Kolab
320.00
Orissa
State
Hydro
NA
449.00
0.00
600.00
Orissa
State
Hydro
NA
1680.00
0.00
35.00
West Bengal
State
Hydro
NA
117.00
0.00
Rammam
50.00
West Bengal
State
Hydro
NA
222.00
0.00
Teesta I-Iii
67.50
West Bengal
State
Hydro
NA
109.00
0.00
12.00
Sikkim
State
Hydro
NA
0.00
8.00
Sikkim
State
Hydro
NA
0.00
Moyagchu
4.00
Sikkim
State
Hydro
NA
0.00
Rangit-Iii
60.00
Sikkim
Center
Hydro
NA
326.00
0.00
Teesta -V
510.00
Sikkim
Center
Hydro
NA
2257.00
0.00
Sagardighi Tpp
600.00
West Bengal
State
Thermal
Coal
3445.00
1.08
Purulia Pss
900.00
West Bengal
State
Hydro
794.00
0.00
Namrup Gt
119.50
Assam
State
Thermal
Gas
503.00
0.89
Lakwa Gt
157.20
Assam
State
Thermal
Gas
827.00
0.68
Leimakhong Dg
36.00
Manipur
State
Thermal
Diesel
0.00
0.00
Uppar Indravati
Jaldhaka I&Ii
Lower Lagyap
U.Rognichu
Kathalguri Gt
291.00
Assam
Center
Thermal
Gas
1633.00
0.60
Agartala Gt
84.00
Tripura
Center
Thermal
Gas
622.00
0.80
Baramura
42.00
Tripura
State
Thermal
Gas
344.00
0.78
Rokhia Gt
74.00
Tripura
State
Thermal
Gas
408.00
0.86
Eastern India
Powertech
Chandrapur_Oil
15.50
Assam
Private
Thermal
Gas
0.00
0.00
Assam
State
Thermal
Oil
0.00
0.00
Bongaigaon
0.00
Assam
State
Thermal
Coal
0.00
0.00
Mobile Gas T-G
0.00
Assam
State
Thermal
Gas
0.00
0.00
Nuranang
6.00
Arunachal
State
Hydro
NA
0.00
Tago
4.50
Arunachal
State
Hydro
NA
0.00
Kyredemkulai
60.00
Meghalaya
State
Hydro
NA
129.00
0.00
Umiam I,Ii &Iv
114.00
Meghalaya
State
Hydro
NA
289.00
0.00
11.20
Meghalaya
State
Hydro
NA
0.00
50.00
Meghalaya
Center
Hydro
NA
164.00
0.00
Assam
Center
Hydro
NA
756.00
0.00
Nagaland
Center
Hydro
NA
212.00
0.00
Umtru
Khandong
Kopili
Doyang
225.00
75.00
PwC
136
Appendix
Name
Ranganadi
Capacity
(Mw) as on
31/03/2012
405.00
State
Sector
Type
Fuel
Net
Generation
(GWh)
(2012-13)
Specific
Emissions
(TCO2/MWh)
(2012-13)
Arunachal
Center
Hydro
NA
1234.00
0.00
Gumti
15.00
Tsecl
State
Hydro
NA
0.00
Likim Ro
24.00
Nagaland
State
Hydro
NA
0.00
Loktak
105.00
Manipur
Center
Hydro
NA
578.00
0.00
Karbi Langpi
100.00
Assam
State
Hydro
NA
341.00
0.00
705.00
Delhi
Center
Thermal
Coal
4178.00
1.14
0.00
Delhi
State
Thermal
Coal
0.00
0.00
Rajghat
135.00
Delhi
State
Thermal
Coal
688.00
1.46
I.P.Gt
270.00
Delhi
State
Thermal
Gas
1270.00
0.52
Pragati Ccgt
330.00
Delhi
State
Thermal
Gas
2443.00
0.43
F_Bad Extn.
0.00
Haryana
State
Thermal
Coal
0.00
0.00
1360.00
Haryana
State
Thermal
Coal
7986.00
1.13
F_Bad Ccgt
431.60
Haryana
Center
Thermal
Gas
2344.00
0.44
Gndtp(Bhatinda)
440.00
Punjab
State
Thermal
Coal
1327.00
1.19
Ghtp (Leh.Moh.)
920.00
Punjab
State
Thermal
Coal
6643.00
0.96
Ropar
1260.00
Punjab
State
Thermal
Coal
8399.00
1.05
Kota
1240.00
Rajasthan
State
Thermal
Coal
8816.00
1.07
Uttar Pradesh
Center
Nuclear
Nuclear
2276.00
0.00
Badarpur
I.P.Station
Panipat
N.A.P.S
440.00
R.A.P.S.
1180.00
Rajasthan
Center
Nuclear
Nuclear
7944.00
0.00
Suratgarh
1500.00
Rajasthan
State
Thermal
Coal
9614.00
1.06
Ramgarh Gt
220.50
Rajasthan
State
Thermal
Gas
489.00
0.54
Anta Gt
419.30
Rajasthan
Center
Thermal
Gas
2125.00
0.44
1322.00
Uttar Pradesh
State
Thermal
Coal
3593.00
1.13
210.00
Uttar Pradesh
State
Thermal
Coal
759.00
1.51
665.00
Uttar Pradesh
State
Thermal
Coal
1268.00
1.47
1140.00
Uttar Pradesh
State
Thermal
Coal
3809.00
1.26
Anpara
1630.00
Uttar Pradesh
State
Thermal
Coal
9293.00
0.91
Singrauli Stps
2000.00
Uttar Pradesh
Center
Thermal
Coal
15036.00
0.98
Rihand
2500.00
Uttar Pradesh
Center
Thermal
Coal
15253.00
0.96
Unchahar
1050.00
Uttar Pradesh
Center
Thermal
Coal
7811.00
1.00
Dadri (Nctpp)
1820.00
Uttar Pradesh
Center
Thermal
Coal
12217.00
0.97
Tanda
440.00
Uttar Pradesh
Center
Thermal
Coal
2835.00
1.19
Auraiya Gt
652.00
Uttar Pradesh
Center
Thermal
Gas
2693.00
0.47
Dadri Gt
816.40
Uttar Pradesh
Center
Thermal
Gas
4312.00
0.44
Pampore Gt
175.00
Jammu &
Kashmir
State
Thermal
Diesel
0.00
0.00
Obra-A
Panki
H_Ganj B
Paricha
PwC
137
Appendix
Name
Capacity
(Mw) as on
31/03/2012
Bhakra
1325.00
State
Sector
Type
Fuel
Net
Generation
(GWh)
(2012-13)
Specific
Emissions
(TCO2/MWh)
(2012-13)
Himachal
Center
Hydro
NA
4685.00
0.00
Ganguwal
77.70
Punjab
Center
Hydro
NA
591.00
0.00
Kotla
77.70
Punjab
Center
Hydro
NA
597.00
0.00
Dehar
990.00
Himachal
Center
Hydro
NA
3204.00
0.00
Pong
396.00
Himachal
Center
Hydro
NA
1815.00
0.00
Baira Siul
198.00
Himachal
Center
Hydro
NA
718.00
0.00
Salal I & Ii
690.00
Jammu &
Kashmir
Uttarakhand
Center
Hydro
NA
3260.00
0.00
Center
Hydro
NA
478.00
0.00
Tanakpur
94.20
Chamera-I
540.00
Himachal
Center
Hydro
NA
2430.00
0.00
Chamera Ii
300.00
Himachal
Center
Hydro
NA
1426.00
0.00
480.00
Jammu &
Kashmir
Himachal
Center
Hydro
NA
2952.00
0.00
Center
Hydro
NA
6744.00
0.00
Uri
Nathpa Jhakri
1500.00
Wy.Canal A -D
62.40
Haryana
State
Hydro
NA
102.00
0.00
Sanjay Bhaba
120.00
Himachal
State
Hydro
NA
363.00
0.00
60.00
Himachal
State
Hydro
NA
245.00
0.00
Giri Bata
60.00
Himachal
State
Hydro
NA
196.00
0.00
Ghanvi
22.50
Himachal
State
Hydro
NA
0.00
Andhra
17.00
Himachal
State
Hydro
NA
0.00
Baner
12.00
Himachal
State
Hydro
NA
0.00
10.50
Himachal
State
Hydro
NA
0.00
6.00
Himachal
State
Hydro
NA
0.00
4.50
Himachal
State
Hydro
NA
0.00
Malana
186.00
Himachal
Private
Hydro
NA
642.00
0.00
Baspa
300.00
Himachal
Private
Hydro
NA
1233.00
0.00
Lower Jhelum
105.00
State
Hydro
NA
550.00
0.00
Upper Sindh I& Ii
127.60
Jammu &
Kashmir
Jammu &
Kashmir
Jammu &
Kashmir
Jammu &
Kashmir
Jammu &
Kashmir
Jammu &
Kashmir
Jammu &
Kashmir
Jammu &
Kashmir
Punjab
State
Hydro
NA
307.00
0.00
State
Hydro
NA
0.00
State
Hydro
NA
0.00
State
Hydro
NA
104.00
0.00
State
Hydro
NA
0.00
State
Hydro
NA
0.00
State
Hydro
NA
0.00
State
Hydro
NA
434.00
0.00
Bassi
Gaj
Binwa
Thirot
Gandharbal
Mohara
Chenani I&Iii
15.00
9.00
30.80
Kargil
3.80
Stakna
4.00
Sewa-Iii
9.00
Shanan
110.00
PwC
138
Appendix
Name
State
Sector
Type
Fuel
Net
Generation
(GWh)
(2012-13)
Specific
Emissions
(TCO2/MWh)
(2012-13)
91.40
Punjab
State
Hydro
NA
317.00
0.00
Mukerian I -Iv
207.00
Punjab
State
Hydro
NA
120.00
0.00
Anandpur Sahib
St-I&Ii
Ranjit Sagar
134.00
Punjab
State
Hydro
NA
636.00
0.00
600.00
Punjab
State
Hydro
NA
1423.00
0.00
172.00
Rajasthan
State
Hydro
NA
364.00
0.00
99.00
Rajasthan
State
Hydro
NA
274.00
0.00
140.00
Rajasthan
State
Hydro
NA
203.00
0.00
Anoopgarh St
I&Ii
Rmc Mangrol
9.00
Rajasthan
State
Hydro
NA
0.00
6.00
Rajasthan
State
Hydro
NA
0.00
Surat Garh
4.00
Rajasthan
State
Hydro
NA
0.00
300.00
Uttar Pradesh
State
Hydro
NA
767.00
0.00
Obra
99.00
Uttar Pradesh
State
Hydro
NA
312.00
0.00
Matatilla
30.60
Uttar Pradesh
State
Hydro
NA
118.00
0.00
Khara
72.00
Uttar Pradesh
State
Hydro
NA
373.00
0.00
5.00
Uttar Pradesh
State
Hydro
NA
0.00
U.B.D.C. St.-I& Ii
R.P.Sagar
J.Sagar
Mahi Bajaj I&Ii
Rihand_Hydro
Capacity
(Mw) as on
31/03/2012
Nirgajani(Ganga
Canal)
Chibro (Yamuna)
240.00
Uttarakhand
State
Hydro
NA
869.00
0.00
Khodri
120.00
Uttarakhand
State
Hydro
NA
397.00
0.00
Dhakrani
33.80
Uttarakhand
State
Hydro
NA
148.00
0.00
Dhalipur
51.00
Uttarakhand
State
Hydro
NA
229.00
0.00
Kulhal
30.00
Uttarakhand
State
Hydro
NA
157.00
0.00
Maneri Bhali
394.00
Uttarakhand
State
Hydro
NA
1600.00
0.00
Chilla
144.00
Uttarakhand
State
Hydro
NA
855.00
0.00
20.40
Uttarakhand
State
Hydro
NA
0.00
9.30
Uttarakhand
State
Hydro
NA
0.00
198.00
Uttarakhand
State
Hydro
NA
245.00
0.00
41.40
Uttarakhand
State
Hydro
NA
154.00
0.00
Dhauli Ganga
280.00
Uttarakhand
Center
Hydro
NA
1131.00
0.00
Giral
250.00
Rajasthan
State
Thermal
Lignite
370.00
2.03
Vishnu Prayag
400.00
Uttarakhand
Private
Hydro
NA
1868.00
0.00
Dulhasti
390.00
Center
Hydro
NA
2033.00
0.00
Largi
126.00
Jammu &
Kashmir
Himachal
State
Hydro
NA
649.00
0.00
Uttarakhand
Center
Hydro
NA
3086.00
0.00
Pathri
Mohamad Pur
Ramganga
Khatima
Tehri St -1
Dholpur
Yamunanagar
Tpp
1000.00
330.00
Rajasthan
State
Thermal
Gas
1127.00
0.52
600.00
Haryana
State
Thermal
Coal
863.00
1.02
PwC
139
Appendix
Name
Capacity
(Mw) as on
31/03/2012
State
Sector
Type
Fuel
Net
Generation
(GWh)
(2012-13)
Specific
Emissions
(TCO2/MWh)
(2012-13)
0.00
0.00
Dhuvaran
0.00
Gujarat
State
Thermal
Oil
Ukai_Coal
1350.00
Gujarat
State
Thermal
Coal
4877.00
1.14
Gandhi Nagar
870.00
Gujarat
State
Thermal
Coal
3547.00
1.12
Utran Gt
135.00
Gujarat
State
Thermal
Gas
362.00
0.50
Hazira Cccp
156.10
Gujarat
State
Thermal
Gas
679.00
0.46
219.10
Gujarat
State
Thermal
Gas
803.00
0.43
1470.00
Gujarat
State
Thermal
Coal
8205.00
1.09
Sikka Rep.
240.00
Gujarat
State
Thermal
Coal
683.00
1.30
Kutch Lig.
290.00
Gujarat
State
Thermal
Lignite
1505.00
1.52
Vatwa Torr
100.00
Gujarat
Private
Thermal
Gas
119.00
0.51
Essar Gt Imp.
515.00
Gujarat
Private
Thermal
Gas
1044.00
0.42
Torr Power Sab.
400.00
Gujarat
Private
Thermal
Coal
2580.00
1.12
G.I.P.C.L. Gt
310.00
Gujarat
Private
Thermal
Gas
1095.00
0.49
Surat Lig.
500.00
Gujarat
Private
Thermal
Lignite
3152.00
1.24
Paguthan
655.00
Gujarat
Private
Thermal
Gas
1370.00
0.43
Kawas Gt
645.00
Gujarat
Center
Thermal
Gas
2839.00
0.45
Gandhar Gt
648.00
Gujarat
Center
Thermal
Gas
3414.00
0.44
Kakrapara
440.00
Gujarat
Center
Nuclear
Nuclear
3125.00
0.00
Satpura
1392.50
State
Thermal
Coal
4776.00
1.65
Korba-East
940.00
Madhya
Pradesh
Chattisgarh
State
Thermal
Coal
5026.00
1.20
Korba-West
1340.00
Chattisgarh
State
Thermal
Coal
5751.00
1.08
Amar Kantak
450.00
State
Thermal
Coal
2549.00
1.43
Sanjay Gandhi
1340.00
State
Thermal
Coal
7932.00
1.19
Korba Stps
2600.00
Madhya
Pradesh
Madhya
Pradesh
Chattisgarh
Center
Thermal
Coal
19232.00
0.96
Center
Thermal
Coal
24355.00
0.96
State
Thermal
Coal
3782.00
1.17
Dhuvaran Ccpp
Wanakbori
Vindh_Chal Stps
Nasik
630.00
Madhya
Pradesh
Maharashtra
Koradi
620.00
Maharashtra
State
Thermal
Coal
2155.00
1.24
1340.00
Maharashtra
State
Thermal
Coal
6807.00
1.09
500.00
Maharashtra
State
Thermal
Coal
2670.00
1.05
Bhusawal
1420.00
Maharashtra
State
Thermal
Coal
3295.00
1.25
Parli
1130.00
Maharashtra
State
Thermal
Coal
3741.00
1.17
2340.00
Maharashtra
State
Thermal
Coal
12747.00
1.11
672.00
Maharashtra
State
Thermal
Gas
3657.00
0.47
Trombay_Oil
150.00
Maharashtra
Private
Thermal
Oil
0.00
0.00
Trombay
500.00
Maharashtra
Private
Thermal
Oil
1909.00
0.63
K_Kheda Ii
Paras
Chandrapur_Coal
Uran Gt
4260.00
PwC
140
Appendix
Name
Capacity
(Mw) as on
31/03/2012
State
Sector
Type
Fuel
Net
Generation
(GWh)
(2012-13)
Specific
Emissions
(TCO2/MWh)
(2012-13)
Trombay_Coal
750.00
Maharashtra
Private
Thermal
Coal
5468.00
0.97
Trombay Gt
180.00
Maharashtra
Private
Thermal
Gas
1560.00
0.41
Dhanu
500.00
Maharashtra
Private
Thermal
Coal
3995.00
0.95
Tarapur
1400.00
Maharashtra
Center
Nuclear
Nuclear
8882.00
0.00
Goa
Private
Thermal
Naphtha
238.00
0.69
Center
Thermal
Naphtha
5000.00
0.38
Reliance Energy
48.00
Ratnagiri Gas
1967.10
Maharashtra
Ukai_Hydro
300.00
Gujarat
State
Hydro
NA
625.00
0.00
5.00
Gujarat
State
Hydro
NA
0.00
240.00
Gujarat
State
Hydro
NA
250.00
0.00
S.Sarovar Chph
250.00
Gujarat
State
Hydro
NA
649.00
0.00
S.Sarovar Rbph
1000.00
Gujarat
State
Hydro
NA
3031.00
0.00
1000.00
Center
Hydro
NA
2881.00
0.00
State
Hydro
NA
273.00
0.00
State
Hydro
NA
416.00
0.00
State
Hydro
NA
349.00
0.00
State
Hydro
NA
1493.00
0.00
State
Hydro
NA
174.00
0.00
State
Hydro
NA
121.00
0.00
State
Hydro
NA
0.00
State
Hydro
NA
67.00
0.00
Private
Hydro
NA
0.00
120.00
Madhya
Pradesh
Madhya
Pradesh
Madhya
Pradesh
Madhya
Pradesh
Madhya
Pradesh
Madhya
Pradesh
Madhya
Pradesh
Madhya
Pradesh
Madhya
Pradesh
Madhya
Pradesh
Chattisgarh
State
Hydro
NA
300.00
0.00
1956.00
Maharashtra
State
Hydro
NA
3368.00
0.00
Vaitarna
60.00
Maharashtra
State
Hydro
NA
148.00
0.00
Tillari
60.00
Maharashtra
State
Hydro
NA
77.00
0.00
Bhira Tail Race
80.00
Maharashtra
State
Hydro
NA
95.00
0.00
Khadavasla I&Ii
16.00
Maharashtra
State
Hydro
NA
0.00
22.50
Maharashtra
State
Hydro
NA
0.00
9.00
Maharashtra
State
Hydro
NA
0.00
Bhatgarh
16.00
Maharashtra
State
Hydro
NA
0.00
Paithon
12.00
Maharashtra
State
Hydro
NA
0.00
Bhandardhara
34.00
Maharashtra
State
Hydro
NA
96.00
0.00
Pawana
10.00
Maharashtra
State
Hydro
NA
0.00
Ukai Lbc
Kadana
Indira Sagar
Gandhi Sagar
115.00
Bargi
90.00
Pench
160.00
Bansagar (I)
315.00
Bansagar (Ii)
30.00
Bansagar (Iii)
60.00
Birsinghpur
20.00
Rajghat (Mp)
45.00
Tawa
13.50
Hasdeobango
Koyna Complex
Eldari
Vir
PwC
141
Appendix
Name
Radhanagri
Capacity
(Mw) as on
31/03/2012
State
Sector
Type
Fuel
Net
Generation
(GWh)
(2012-13)
Specific
Emissions
(TCO2/MWh)
(2012-13)
4.80
Maharashtra
State
Hydro
NA
0.00
Bhatsa
15.00
Maharashtra
State
Hydro
NA
0.00
Kanher
4.00
Maharashtra
State
Hydro
NA
0.00
Ujjaini
12.00
Maharashtra
State
Hydro
NA
0.00
Surya
6.00
Maharashtra
State
Hydro
NA
0.00
Manikdoh
6.00
Maharashtra
State
Hydro
NA
0.00
Dimbe
5.00
Maharashtra
State
Hydro
NA
0.00
Warna
16.00
Maharashtra
State
Hydro
NA
0.00
Dudh Ganga
24.00
Maharashtra
State
Hydro
NA
0.00
300.00
Maharashtra
Private
Hydro
NA
851.00
0.00
75.00
Maharashtra
Private
Hydro
NA
300.00
0.00
72.00
Maharashtra
Private
Hydro
NA
291.00
0.00
Gujarat
State
Thermal
Ligniteite
755.00
1.55
Madhya
Pradesh
Madhya
Pradesh
Chattisgarh
State
Hydro
NA
114.00
0.00
State
Hydro
NA
0.00
Center
Thermal
Coal
16445.00
0.95
Bhira
Bhivpuri
Khopoli
Akrimota Lig
250.00
Madhikheda
60.00
Bansagar (Iv)
20.00
Sipat Stps
Omkareshwar
2980.00
State
Hydro
NA
1301.00
0.00
1000.00
Madhya
Pradesh
Chattisgarh
Private
Thermal
Coal
7250.00
0.97
Bhilai Tpp
500.00
Chattisgarh
Center
Thermal
Coal
3681.00
0.98
Baglihar Hep
450.00
Center
Hydro
NA
2825.00
0.00
Ghatghar Pss
250.00
Jammu &
Kashmir
Maharashtra
Center
Hydro
NA
303.00
0.00
Sugen Cccp
1147.50
Gujarat
Private
Thermal
Gas
4018.00
0.34
1200.00
Haryana
State
Thermal
Coal
4697.00
1.03
500.00
Rajasthan
State
Thermal
Coal
2612.00
1.15
Utran Cccp Ext
374.60
Gujarat
State
Thermal
Gas
547.00
0.39
Rosa Tpp Ph - 1
1200.00
Uttar Pradesh
Private
Thermal
Coal
7249.00
0.99
Chattisgarh
Private
Thermal
Coal
2799.00
1.05
20608.00
0.95
Raigarh Tpp
Rajiv Gandhi Tps

Hisar
Chhabra Tps
Pathadi Tps Ph -I
520.00
600.00
Mundra Tpp
4620.00
Gujarat
Private
Thermal
Coal
Jallippa Kapurdi
Tpp
Barsingar Lignite
1080.00
Rajasthan
Private
Thermal
Lignite
3310.00
1.33
250.00
Rajasthan
Center
Thermal
Lignite
1114.00
1.27
Sewa-Ii
120.00
Center
Hydro
NA
482.00
0.00
Wardha Warora
540.00
Jammu &
Kashmir
Maharashtra
Private
Thermal
Coal
3057.00
1.04
Allain Duhangan
192.00
Himachal
Private
Hydro
NA
678.00
0.00
Delhi
Private
Thermal
Gas
134.00
0.60
Rithala Cccp
94.80
PwC
142
Appendix
Name
Capacity
(Mw) as on
31/03/2012
State
Sector
Type
Fuel
Center
Hydro
State
Koteshwar
400.00
Uttarakhand
Pragati Cccp -Iii
685.60
Delhi
Net
Generation
(GWh)
(2012-13)
Specific
Emissions
(TCO2/MWh)
(2012-13)
NA
1158.00
0.00
Thermal
Gas
1398.00
0.44
Mejia Tps Ext
1000.00
West Bengal
Center
Thermal
Coal
4740.00
0.89
Indra Gandhi
Stpp
Jsw Ratnagiri
Tpp
Koderma
1500.00
Haryana
Center
Thermal
Coal
4657.00
0.98
1200.00
Maharashtra
Private
Thermal
Coal
8451.00
1.11
1000.00
Jharkhand
Center
Thermal
Coal
0.00
0.00
126.00
Meghalaya
State
Hydro
NA
189.00
0.00
1000.00
Himachal
Private
Hydro
NA
4036.00
0.00
1000.00
West Bengal
Center
Thermal
Coal
2243.00
1.39
1200.00
Uttar Pradesh
Private
Thermal
Coal
3622.00
1.05
Maithon Rb Tpp
1050.00
Jharkhand
Private
Thermal
Coal
4319.00
0.98
Mundra Umpp
4000.00
Gujarat
Private
Thermal
Coal
11369.00
0.88
1320.00
Haryana
Private
Thermal
Coal
2859.00
0.95
90.00
Uttar Pradesh
Private
Thermal
Coal
510.00
1.29
90.00
Uttar Pradesh
Private
Thermal
Coal
507.00
1.32
Barkhera Tpp
90.00
Uttar Pradesh
Private
Thermal
Coal
522.00
1.33
Kundarki Tpp
90.00
Uttar Pradesh
Private
Thermal
Coal
462.00
1.31
Utraula Tpp
90.00
Uttar Pradesh
Private
Thermal
Coal
343.00
1.37
270.00
Chattisgarh
Private
Thermal
Coal
1241.00
1.11
Svpl
63.00
Chattisgarh
Private
Thermal
Coal
42.00
1.19
Katghora Tpp
35.00
Chattisgarh
Private
Thermal
Coal
49.00
1.19
Maharashtra
Private
Thermal
Coal
657.00
1.19
1200.00
Gujarat
Private
Thermal
Coal
3800.00
1.02
351.00
Gujarat
State
Thermal
Gas
4.00
0.72
Center
Thermal
Coal
0.00
0.00
Myntdu
Karcham
Wangtoo
Durgapur Steel
Tps
Anapara "C"
Mahatma Gandhi
Tpp
Khamberkhera
Ipp
Maqsoodpur Ipp
Kasaipalli
Mihan Tpp
Salaya Tpp
Hazira-Gsecl
246.00
Mouda Stps
1000.00
Maharashtra
Tirora Tpp-I
1320.00
Maharashtra
Private
Thermal
Coal
708.00
0.97
Private
Thermal
Gas
92.00
0.61
Palatana Ccpp
363.60
Tripura
Iepl ,Bela Tpp
270.00
Maharashtra
Private
Thermal
Coal
5.00
1.89
Gepl
120.00
Maharashtra
Private
Thermal
Coal
472.00
1.26
Chamera-Iii
231.00
Himachal
Center
Hydro
NA
713.00
0.00
Budhil
70.00
Himachal
Private
Hydro
NA
156.00
0.00
Chutak
44.00
Center
Hydro
NA
14.00
0.00
Teesta Low DamIii
99.00
Jammu &
Kashmir
West Bengal
Center
Hydro
NA
0.00
0.00
PwC
143
Appendix
Name
Capacity
(Mw) as on
31/03/2012
State
Sector
Type
Fuel
Net
Generation
(GWh)
(2012-13)
Specific
Emissions
(TCO2/MWh)
(2012-13)
Private
Thermal
Coal
441.00
1.35
Private
Thermal
Coal
0.00
0.00
Bina Tpp
500.00
Butibori Tpp -Ii
300.00
Madhya
Pradesh
Maharashtra
Mahadev Prasad
Stpp
Amaravati Tpp
540.00
Jharkhand
Private
Thermal
Coal
306.00
1.07
270.00
Maharashtra
Private
Thermal
Coal
0.00
0.00
Emco Warora
Tpp
Ratija Tpp
300.00
Maharashtra
Private
Thermal
Coal
110.00
0.99
Chattisgarh
Private
Thermal
Coal
21.00
1.19
Pipavav Cccp
351.00
State
Thermal
Gas
0.00
0.00
50.00
Gujarat
PwC
144
Abbreviations
Abbreviations
APPC
Average Power procurement Cost
ADB
Asian Development Bank
AHEC
Alternate Hydro Energy Centre
BM
Build Margin
CAGR
Compound Annual Growth Rate
COS
Cost of Supply
CC
Captive Consumer(s)
CDM
Clean Development Mechanism
CEA
Central Electricity Authority
CERC
Central Electricity Regulatory Commission
CM
Combined Margin
CUF
Capacity Utilisation Factor
CWET
Centre for Wind Energy Technology
DOA
Department of Agriculture
DOF
Department of Forest
DIF
Diffuse Horizontal Irradiance
DMRPS
Dynamic Minimum Renewable Purchase Standard
DNI
Direct Normal Irradiance
DL
Distribution Licensees
EA 2003
Electricity Act, 2003
EPC
Engineering, Procurement and Construction
EPS
Electric Power Survey
EXIM
Export-Import
FOR
Forum of Regulators
FY
Financial Year
GBI
Generation Based Incentive
GDP
Gross Domestic Product
GHG
Green House Gas
GHI
Global Horizontal Irradiance
GoMP
Government of Madhya Pradesh
GW
Giga Watt
HP
Horse Power
HT
High Tension
IDA
International Development Agencies
INR
Indian Rupee
IPCC
InterGovernmental Panel on Climate Change
PwC
145
Abbreviations
IREDA
Indian Renewable Energy Development Agency
kV
Kilo-Volt
kWh
Kilowatt-hour
LM
Lantana Mexicana
LT
Low Tension
MEDA
Maharashtra Energy Development Agency
MM
Millimeter
MNRE
Ministry of New and Renewable Energy
MP
Madhya Pradesh
MPERC
Madhya Pradesh Electricity Regulatory Commission
MPPMCL
Madhya Pradesh Power Management Company Limited
MPPTCL
Madhya Pradesh Power Transmission Company Ltd
MU
Million Units
MW
Mega Watt
MWh
Mega Watt Hours
NAPCC
National Action Plan for Climate Change
NCEF
National Clean Energy Fund
NEWNE
Northern Eastern Western and North Eastern
NREL
National Renewable Energy Laboratory
NTP
National Tariff Policy
NVVN
NTPC Vidyut Vyapar Nigam Limited
OM
Operating Margin
PGCIL
Power Grid Corporation of India Ltd.
PLF
Plant Load Factor
PPA
Power Purchase Agreement
PPP
Public-Private partnership
PSU
Public Sector Utilities
PV
Photo Voltaic
PWW
Public Water Works
R&R
Rehabilitation and Resettlement
RE
Renewable Energy
REC
Renewable Energy Certificate
RPO
Renewable Purchase Obligation
RFP
Request For Proposal
SECI
Solar Energy Corporation of India
SERC
State Electricity Regulatory Commission
SHP
Small Hydro Project
SLDC
State Load Dispatch Center
PwC
146
Abbreviations
STLT
Street Lighting
TNERC
Tamil Nadu Electricity Regulatory Commission
UNFCCC
United Nations Framework Convention on Climate Change's
VCS
Verified Carbon Standards
VER
Voluntary Emission Reduction
VOLL
Value of Lost Load
WL
Waste Lands
PwC
147
References
National Action Plan on Climate Change, last referred on December 3, 2013 at pmindia.nic.in/Pg01-52.pdf.
Information provided by non-Annex I Parties relating to Appendix II of the Copenhagen Accord, last referred
on April 02, 2014 at
https://unfccc.int/files/meetings/cop_15/copenhagen_accord/application/pdf/indiacphaccord_app2.pdf
3 National Action Plan on Climate Change, last referred on December 3, 2013 at pmindia.nic.in/Pg01-52.pdf.
18 Referred from the Photovoltaic Project Analysis by RET Screen
19 Data from Wasteland Atlas of India 2005-06
22 Information collected and last referred on Feb 5, 2014 from http://www.nrel.gov/docs/fy12osti/51946.pdf
23 Wind Resource Assessment referred last on Feb 4, 2014 at http://www.mnre.gov.in/schemes/gridconnected/solar-thermal-2/
24 Wind Resource Assessment referred last on Feb 4, 2014 at http://www.mnre.gov.in/schemes/gridconnected/solar-thermal-2/
25 Data collected from India Wind Atlas at 50m height provided by C-WET
26 Data collected from India Wind Atlas at 80m height provided by C-WET
27 Information collected and last referred on Feb 5, 2014 from
http://www.cwet.tn.nic.in/html/departments_wra.html
28 C-WET data extracted from Directory Indian Wind Power, 2013
29 C-WET data extracted from Directory Indian Wind Power, 2013
32 Information collected and last referred on Feb 5, 2014 from
http://www.cwet.tn.nic.in/html/departments_wra.html
33 Data collected from Biomass Resource Atlas of India, A Project by MNRE, Under taken by CGPL, IISc
Bangalore
34 Data collected from Indian Renewable Energy Status Report 2010- A project by MNRE
35 Information provided by Department of Agriculture, Madhya Pradesh in Agricultural Statistics of Madhya
Pradesh
36 Tariff order for procurement of power from biomass based projects issued by MPERC on March 2012 and last
referred on Feb 5 , 2014 from http://www.mperc.nic.in/020312-SMP-77-2011-BiomassMarch-12.pdf
37 Tariff order for procurement of power from biomass based projects issued by MPERC on March 2012 and last
referred on Feb 5 , 2014 from http://www.mperc.nic.in/020312-SMP-77-2011-BiomassMarch-12.pdf
38 Tariff order for procurement of power from biomass based projects issued by MPERC on May 2013 and last
referred on Feb 5 , 2014 from http://www.mperc.nic.in/030513-SMPNo-08-2013.pdf
39 Information provided by Department of Agriculture, Madhya Pradesh
40 The Technical Feasibility of a Billion Ton Annual Study, US Department of Energy and US Department of
Agriculture, April 2005
41 Information sourced on discussion with experts of this sector
42 Information sourced from IISc and last referred on Feb 5 from
http://www.ces.iisc.ernet.in/energy/paper/alternative/calorific.html
49 Information provided in Forest Survey of India last referred on Feb 5, 2014 and available on
http://www.mpforest.org/pdf/Atlas_FSI.pdf
a
Information provided in Forest Survey of India last referred on Feb 5, 2014 and available on
http://www.mpforest.org/pdf/Atlas_FSI.pdf
51 Information sourced and last referred on Feb 5, 2014 from http://www.mpforest.org/
52 Based on the discussions with officials of Department of Forest, Madhya Pradesh
53 Normative parameters as defined by CERC in its RE Tariff Regulation, 2012
54 Information collected from MNRE Annual Report 2012-13
55 Information sourced and last referred on Feb 5, 2014 from http://www.mprenewable.nic.in/hydro01.pdf
56 Information sourced from Annual Reports of AHEC
45 Madhya Pradesh Power Management Company Limited, data collected for projecting energy demand by
2020.
46 Data collected from Electrical Inspectorate Office of Madhya Pradesh on captive generation from captive
generators.
47 Data collected from Electrical Inspectorate Office of Madhya Pradesh on captive generation from captive
generators.
48 Data collected from Electrical Inspectorate Office of Madhya Pradesh on on captive generation from captive
generators.
49 Aggregate Revenue Requirement and Retail Supply Tariff for 2013-14, last referred on December 18, 2013 at
http://www.mperc.nic.in/23032013-Tariff%20Order-March-2013.pdf.
50 Wind power policy, last referred on December 18, 2013 http://mpnred.com/Images/pdf/WindPolicy_english.pdf and Wind power policy, last referred on December 18, 2013
http://mpnred.com/Images/pdf/solar-power-policy-english.pdf.
51 New and Renewable Energy of Madhya Pradesh, presentation dated September 30,2013 last referred on
December 20, 2013 at http://mpnred.com/Home/Index.aspx.
66 Rank of Madhya Pradesh in terms of Geographical area, last referred on December 15, 2013 at
http://www.undp.org/content/india/en/home/operations/about_undp/undp-in-mp/about-mp/.
67 Tariff Order for Solar Energy Based Power Generation in Madhya Pradesh, last referred on December 3, 2013
at http://mperc.nic.in/010812-Tariff-Order-Solar-Energy.pdf.
68 Tariff Order for procurement of power from Wind Electric Generators, last referred on December 3, 2013
at http://mperc.nic.in/26032013-Wind-tariff-order.pdf.
50
Tariff Order for procurement of power from Biomass based power projects, last referred on December 3,
2013 at http://www.mperc.nic.in/020312-SMP-77-2011-BiomassMarch-12.pdf. The order considers CUF of
69
60% during stabilization, 70% during the remaining first year and 80% from second year onwards. However for
our calculations, we have considered 70% CUF for biomass projects considering the complexity of procurement
of the fuel and operations.
70 Tariff Order for procurement of power from Small Hydro power projects , last referred on December 3,
2013 at http://mperc.nic.in/170513-SMP-19-2013.pdf.
71 Information provided by non-Annex I Parties relating to Appendix II of the Copenhagen Accord, last referred
on April 02, 2014 at
https://unfccc.int/files/meetings/cop_15/copenhagen_accord/application/pdf/indiacphaccord_app2.pdf
72 National Action Plan on Climate Change, last referred on December 3, 2013 at pmindia.nic.in/Pg01-52.pdf.
73 Amended National Tariff Policy, 2006, last referred on December 2, 2013 at pib.nic.in/release/release.asp.
74 Jawaharlal Nehru National Solar Mission, last referred on December 15, 2013 at
http://www.mnre.gov.in/file-manager/UserFiles/mission_document_JNNSM.pdf.
75 Rank of Madhya Pradesh in terms of Geographical area, last referred on December 15, 2013 at
http://www.undp.org/content/india/en/home/operations/about_undp/undp-in-mp/about-mp/.
76 Tool to calculate the grid emission factor for an electricity system, last referred on March 02, 2014 at
http://cdm.unfccc.int/methodologies/PAmethodologies/tools/am-tool-07-v2.pdf/history_view
Tariff Order for Solar Energy Based Power Generation in Madhya Pradesh, last referred on December 3, 2013
at http://mperc.nic.in/010812-Tariff-Order-Solar-Energy.pdf.
78 Tariff Order for procurement of power from Wind Electric Generators, last referred on December 3, 2013
at http://mperc.nic.in/26032013-Wind-tariff-order.pdf.
77
Tariff Order for procurement of power from Biomass based power projects, last referred on December 3,
2013 at http://www.mperc.nic.in/020312-SMP-77-2011-BiomassMarch-12.pdf. The order considers CUF of
79
60% during stabilization, 70% during the remaining first year and 80% from second year onwards. However for
our calculations, we have considered 70% CUF for biomass projects considering the complexity of procurement
of the fuel and operations.
80 Tariff Order for procurement of power from Small Hydro power projects, last referred on December 3,
2013 at http://mperc.nic.in/170513-SMP-19-2013.pdf.
2014
PricewaterhouseCoopers India Private Ltd. All rights reserved. In this document, PwC refers to
PricewaterhouseCoopers India Private Ltd., which is a member firm of PricewaterhouseCoopers International
Limited, each member firm of which is a separate legal entity

ReportonTask4 MP

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

ReportonTask4 MP

Uploaded by

Copyright:

Available Formats

Scale-up Plan for Grid

June 10, 2014

Sustainable development also mandates the efficient use of

Dr. Manmohan Singh

Once the renewable infrastructure is built, the fuel is

Because the wind blows during stormy conditions when

Mark Z. Jacobson &

More than 6,500

More than 4,500

1.2. Study approach

1.3. Limitations of the Study

2. Rationale for RE promotion Madhya Pradesh

2.1. Huge potential to attract private investment

2.2. Enhanced Energy Security

2.3. Environmental Benefits

2.4. Leads to sustainable development

3. Institutional and policy review

3.1. Institutional arrangement for RE

3.1.1. National level institutional agencies

3.1.2. State level institutional agencies

3.2. Provisions in Electricity Act, 2003

3.3. Provisions in national electricity policy

3.4. Provisions in national tariff policy

3.5. National Action Plan for Climate Change

3.6. National Solar Mission

3.7. Recent initiatives for development of RE

3.8. National level policy instruments

3.9. State level policy review

3.9.1. Short and long term targets for RE technologies

3.9.2. Clearly identified thrust areas

3.9.3. Single window clearance system

3.9.4. Land allocation for RE projects

3.9.5. Grid Connectivity

3.9.6. Forming joint ventures

3.9.7. Green Energy Funds

3.9.8. Incentives to be provided to developers

4.1. Assessing solar energy potential

4.1.1. Solar potential assessment methodology

4.1.2. Estimating availability of land for installing solar projects

4.1.3. Gross solar energy potential in the state of Madhya Pradesh

4.2. Assessing wind energy potential

4.2.1. Wind potential assessment methodology

4.2.2. Estimating availability of land for installing wind projects

4.2.3. Gross wind energy potential in the state of Madhya Pradesh

4.3. Assessing biomass energy potential

4.3.1. Estimating biomass potential from crop residues

4.3.2. Estimating biomass power potential from Lantana Mexicana

4.3.3. Gross Biomass potential in the state of Madhya Pradesh

4.4. Assessing small hydro energy potential

4.4.1. Estimating potential from run of river schemes

4.4.2. Estimating potential from canal fall based schemes

4.4.3. Estimating potential from dam toe based schemes

4.4.4. Self identified small hydro projects

4.4.5. Gross small hydro potential in the state

4.5. Renewable energy potential in the State of Madhya Pradesh

5. Assessment of demand for RE

5.1. Methodology adopted for demand forecasting

5.1.1. Unrestricted demand projections

5.1.2. Forecasting electricity demand

5.2. Demand forecasting results for Distribution Licensee

5.3. Demand forecast results for Captive Consumers

5.4. Aggregate demand forecast for the state

5.5. Estimating the demand for RE

5.5.1. Solar energy required to meet RPO in the state